Document:

Asset Purchase Agreement, dated December 7, 2009

 Exhibit 10.1 
 ASSET PURCHASE AGREEMENT 
 BY AND AMONG

 SDC SOFTWARE, INC. 
 XERITON CORPORATION 
 AND DAVID W. PLUMMER AND NICOLE PLUMMER

 AS THE PRINCIPAL STOCKHOLDERS 
 DATED AS OF DECEMBER 7, 2009 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ARTICLE 1 DEFINITIONS	  	2
			
	 1.1
	  	Capitalized Terms	  	2
	 1.2
	  	Construction	  	8
		
	ARTICLE 2 TRANSFER OF ASSETS	  	9
			
	 2.1
	  	Transfer of Assets	  	9
	 2.2
	  	Delivery of Transferred Assets	  	10
	 2.3
	  	Technology Retention	  	11
	 2.4
	  	Collateral Agreements	  	11
	 2.5
	  	Agreement to Perform Necessary Acts	  	11
	 2.6
	  	Assumed Liabilities	  	11
	 2.7
	  	Excluded Liabilities	  	12
	 2.8
	  	Covenant Not to Sue	  	13
	 2.9
	  	Purchaser License	  	13
	 2.10
	  	Assignment of Contracts	  	14
		
	ARTICLE 3 CLOSING, PURCHASE PRICE AND PAYMENTS	  	14
			
	 3.1
	  	Closing	  	14
	 3.2
	  	Deliveries at Closing	  	15
	 3.3
	  	Purchase Price	  	16
	 3.4
	  	Payment of Purchase Price	  	16
	 3.5
	  	Escrow Fund and Escrow Agreement	  	16
	 3.6
	  	Allocation of Purchase Price	  	17
	 3.7
	  	Transfer Taxes	  	17
	 3.8
	  	Expenses	  	17
	 3.9
	  	Withholding Taxes	  	17
		
	ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF SELLER AND THE PRINCIPAL STOCKHOLDERS	  	17
			
	 4.1
	  	Organization and Standing	  	17
	 4.2
	  	Authorization of Transactions	  	18
	 4.3
	  	Noncontravention	  	18
	 4.4
	  	Consents	  	19
	 4.5
	  	Capitalization	  	19
	 4.6
	  	Financial Statements	  	19
	 4.7
	  	Restrictions on Transactions or Business Activities	  	20
	 4.8
	  	Title of Properties; Absence of Liens and Encumbrances; Condition	  	20
	 4.9
	  	Intellectual Property	  	20
	 4.10
	  	Brokers’ and Finders’ Fees	  	25
	 4.11
	  	Transferred Contracts	  	25
	 4.12
	  	Complete Copies of Materials	  	25
	 4.13
	  	Transferred Assets	  	25

  

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 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
	 4.14
	  	Operational Licenses	  	25
	 4.15
	  	Litigation	  	25
	 4.16
	  	Employee Benefits	  	26
	 4.17
	  	Bulk Transfer Laws	  	26
	 4.18
	  	Compliance with Applicable Laws	  	26
	 4.19
	  	Business Practices	  	27
	 4.20
	  	Tax Matters	  	27
	 4.21
	  	Certain Relationships with Seller	  	28
	 4.22
	  	Product and Service Warranties	  	28
	 4.23
	  	Accounts Receivable	  	28
	 4.24
	  	No Liquidation, Insolvency or Winding-Up	  	28
	 4.25
	  	Absence of Changes	  	29
	 4.26
	  	Disclosure	  	30
		
	ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF PURCHASER	  	30
			
	 5.1
	  	Organization	  	30
	 5.2
	  	Authorization of Transaction	  	30
	 5.3
	  	Sufficient Cash Funds	  	30
	 5.4
	  	Noncontravention	  	30
	 5.5
	  	Consents	  	30
		
	ARTICLE 6 CONFIDENTIAL INFORMATION	  	31
			
	 6.1
	  	Confidentiality of Agreement and Public Announcements	  	31
	 6.2
	  	Remedies	  	31
		
	ARTICLE 7 COVENANTS	  	32
			
	 7.1
	  	Additional Documents and Further Assurances	  	32
	 7.2
	  	Agreement Not to Compete	  	32
	 7.3
	  	Change of Corporate Name	  	33
	 7.4
	  	Final Balance Sheet	  	33
		
	ARTICLE 8 SURVIVAL OF REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION	  	33
			
	 8.1
	  	Survival of Representations and Warranties	  	33
	 8.2
	  	Indemnification	  	34
	 8.3
	  	Source of Indemnification	  	34
	 8.4
	  	Indemnification Procedure	  	35
	 8.5
	  	Resolution of Conflicts; Arbitration	  	35
	 8.6
	  	Third-Party Claims	  	36
	 8.7
	  	Limitations on Indemnity	  	36
	 8.8
	  	Stockholder Agent; Power of Attorney	  	37
	 8.9
	  	Exclusive Remedy	  	37
		
	ARTICLE 9 AMENDMENT AND WAIVER	  	37
			
	 9.1
	  	Amendment	  	37
	 9.2
	  	Extension; Waiver	  	37

  

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 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
	ARTICLE 10 GENERAL	  	38
			
	 10.1
	  	Notices	  	38
	 10.2
	  	Governing Law	  	38
	 10.3
	  	Forum and Venue	  	39
	 10.4
	  	Resolution of Conflicts; Arbitration	  	39
	 10.5
	  	Assignment	  	40
	 10.6
	  	No Third-Party Beneficiaries	  	40
	 10.7
	  	WAIVER OF JURY TRIAL	  	40
	 10.8
	  	Severability	  	40
	 10.9
	  	Entire Agreement	  	40
	 10.10
	  	Counterparts	  	40

  

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	SCHEDULES	  	
		
	Schedule 1.1(aa)	  	Closing Working Capital Amount based on Estimated Closing Date Balance Sheet
	Schedule 1.1(xx)	  	Permitted Liens
	Schedule 1.1(ccc)	  	Product Software
	Schedule 1.1(mmm)	  	Sites
	Schedule 1.1(qqq)	  	Tangible Assets
	Schedule 1.1(xxx)	  	Transferred Contracts
	Schedule 1.1(yyy)	  	Transferred IP
	Schedule 1.1(zzz)	  	Transferred Products
	Schedule 1.1(aaaa)	  	Transferred Technology
	Schedule 2.1(a)(xiii)	  	Other Transferred Assets
	Schedule 2.1(b)	  	Excluded Assets
	Schedule 2.6(b)	  	Assumed Liabilities
	Schedule 3.2(p)	  	Changes and Modifications to be Implemented by Seller
	Schedule 3.4	  	Wire Transfer Instructions
	Schedule 3.6	  	Allocation of Consideration
		
	EXHIBITS	  	
		
	Exhibit A-1	  	Form of Employee Non-Competition and Non-Solicitation Agreement
	Exhibit A-2	  	Non-Competition and Non-Solicitation Agreement with David W. Plummer
	Exhibit A-3	  	Non-Competition and Non-Solicitation Agreement with Nicole Plummer
	Exhibit B	  	Disclosure Schedule
	Exhibit C	  	Escrow Agreement
	Exhibit D	  	General Assignment and Bill of Sale
	Exhibit E	  	Form of Assignment of Copyright
	Exhibit F	  	Form of Legal Opinion
	Exhibit G	  	Systweak Source Code Escrow Agreement
	Exhibit H	  	Form of Intellectual Property Assignment

 ASSET PURCHASE AGREEMENT 
 THIS ASSET PURCHASE AGREEMENT (this “Agreement”), is made and entered into as of December 7, 2009
by and among SDC Software, Inc., a Delaware corporation, with a place of business at 1900 Seaport Boulevard, 3rd
 Floor, Redwood City, CA 94063 (“Purchaser”), Xeriton Corporation, a Washington corporation, with a place of business at 336 228th Ave., NE, Sammamish, WA 98074 (“Seller”), and David
W. Plummer and Nicole Plummer (individually, a “Principal Stockholder” and together, the “Principal Stockholders”). Each of Purchaser, Seller and each of the Principal Stockholders is referred to herein individually
as a “Party,” and collectively as the “Parties”. 
 RECITALS 
 A. Seller owns and operates the Business (as defined below). 
 B. Seller desires to sell, and Purchaser desires to purchase, all right, title and interest of Seller in and to all of the assets of Seller other than the Excluded Assets (as defined below), and Purchaser
will assume only the Assumed Liabilities (as defined below), all upon the terms and subject to the conditions set forth herein. 
 C. A portion of the consideration payable by Purchaser to Seller hereunder shall be placed in escrow as security for the indemnification obligations of Seller and the Principal Stockholders set forth in this Agreement. 
 D. Concurrently with the execution and delivery of this Agreement, and as a material inducement to Purchaser to enter into this Agreement,
(i) each of the persons referenced in Section 3.2(f) actually offered employment by Purchaser shall execute and deliver to Purchaser an offer letter (the “Offer Letters”) for employment with Purchaser to be
effective immediately following the Closing (as defined below); (ii) David W. Plummer shall execute and deliver to Purchaser a consulting agreement (the “Consulting Agreement”) to be effective immediately following the Closing;
(iii) each of the Designated Employees shall execute and deliver to Purchaser a non-competition and non-solicitation agreement in the form attached hereto as Exhibit A-1 (the “Employee Non-Competition and Non-Solicitation
Agreement”); and (iv) each of Dave Plummer and Nicole Plummer shall execute and deliver to Purchaser non-competition and non-solicitation agreements in the forms attached hereto as Exhibit A-2 (the “Non-Competition
and Non-Solicitation Agreement with Dave Plummer”) and Exhibit A-3 (the “Non-Competition and Non-Solicitation Agreement with Nicole Plummer”), respectively. 
  

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 AGREEMENT 
 NOW, THEREFORE, in consideration of the covenants, promises, representations and warranties set forth herein, and for other good and valuable consideration (the receipt and sufficiency of which are hereby
acknowledged by the Parties hereto), intending to be legally bound hereby, the Parties hereto hereby agree as follows: 
 ARTICLE 1 
 DEFINITIONS 
 1.1 Capitalized Terms. The following capitalized terms shall have the meanings set forth below: 
 (a) “Actual Net Working Capital Adjustment” means (i) if the Closing Working Capital Amount is greater than or equal to $8,126.66, then $0; and (ii) if the Closing Working
Capital Amount is less than $8,126.66, then the amount equal to (A) $8,126.66, minus (B) the Closing Working Capital Amount, as determined based upon the Final Closing Date Balance Sheet. 
 (b) “Allocation” has the meaning set forth in Section 3.6. 
 (c) “Assumed Liabilities” has the meaning set forth in Section 2.6. 
 (d) “Books and Records” means the books and records (in paper or electronic format) of Seller related to or used in the
operation of the Business, including the sales records, reports on sales and business performance, customer and end user lists and information, including customer email addresses, supplier lists and information, Transferred Product records,
distributor and other sales information, copies of Transferred Contracts, and copies of policies and procedures regarding marketing and customer and end user support; provided that Books and Records shall not include the minute books and
similar corporate records of Seller. 
 (e) “Business” shall mean all of the operations, activities, services
and products of Seller, including those relating to (i) the development, marketing and sale of computer health, optimization and security software, including products designed to improve performance of a computer, and (ii) the development,
marketing, sale, and provision of remote or online technical support services, as such operations and activities have been conducted, are currently conducted and proposed to be conducted and as such services and products have been offered, are
currently offered and proposed to be offered; provided that the Business shall not include those services and products solely relating to Seller’s WikiTalk website and software as available on the Closing Date. 
 (f) “Closing” has the meaning set forth in Section 3.1. 
 (g) “Closing Date” means the date on which the Closing occurs. 
 (h) “Closing Working Capital Amount” means an amount equal to (A) the aggregate of all cash, cash equivalents,
accounts receivable, prepaid expenses and other current assets that constitute Transferred Assets, less (B) all accounts payable and accrued Liabilities that constitute Assumed Liabilities, in each case as reflected on the Estimated Closing
Date Balance Sheet or Final Closing Date Balance Sheet, as applicable. 
 (i) “Code” means the U.S. Internal
Revenue Code of 1986, as amended. 
 (j) “Collateral Agreements” has the meaning set forth in
Section 2.4. 
  

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 (k) “Competitive Business Activity” has the meaning set forth in
Section 7.2. 
 (l) “Consent” means any consent, waiver, approval, permit, order or authorization
of, or registration, declaration or filing with, any Person not a party to this Agreement. 
 (m) “Consulting
Agreement” has the meaning set forth in the recitals hereto. 
 (n) “Contract” shall mean any note,
bond, mortgage, indenture, lease, contract, purchase order, insertion order, terms of service or sale, binding quote, covenant or other agreement, instrument or commitment, permit, concession, franchise or license, including any amendment or
modifications made thereto, whether oral or written. 
 (o) “Designated Employees” means Allen Nieman, Matt
Boisen, Sean Norman and Peifeng Ni. 
 (p) “Disclosure Schedule” means the Disclosure Schedule dated as of the
date hereof and attached hereto as Exhibit B. 
 (q) “Employee” means any current or former employee,
contractor, consultant or advisor of Seller. 
 (r) “Employee Non-Competition and Non-Solicitation Agreement”
has the meaning set forth in the recitals hereto. 
 (s) “ERISA” means the Employee Retirement Income Security
Act of 1974, as amended. 
 (t) “ERISA Affiliate” means such subsidiary of Seller and any other person or
entity under common control with Seller or any of its subsidiaries within the meaning of Section 414(b), (c), (m) or (o) of the Code and the regulations issued thereunder. 
 (u) “Escrow Agent” means U.S. Bank, National Association. 
 (v) “Escrow Agreement” means the Escrow Agreement to be executed and delivered prior to Closing between the Purchaser and
Seller, attached hereto as Exhibit C. 
 (w) “Escrow Fund” has the meaning set forth in
Section 3.5. 
 (x) “Escrow Payment” has the meaning set forth in Section 3.4.

 (y) “Escrow Period” means the period commencing immediately after the Closing and ending at 5:00 p.m.
(California Time) on the date which is fourteen (14) months after the Closing. 
 (z) “Estimated Closing Date
Balance Sheet” means Seller’s estimated consolidated unaudited balance sheet as of the Closing Date, prepared in accordance with GAAP (with the exception of revenue recognition for credit card sales, which have been recorded on a cash
basis and recognized upon payment) applied on a consistent basis with the Financials, based upon the most recent ascertainable financial information of Seller, which balance sheet shall be provided to Purchaser not less then five (5) days prior
to the Closing. 
  

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 (aa) “Estimated Net Working Capital Adjustment” means (i) if the
Closing Working Capital Amount is greater than or equal to $8,126.66, then $0; and (ii) if the Closing Working Capital Amount is less than $8,126.66, then the amount equal to (A) $8,126.66, minus (B) the Closing Working Capital
Amount, as determined based upon the Estimated Closing Date Balance Sheet prior to Closing. The calculation of the Closing Working Capital Amount for purposes of determining the Estimated Net Working Capital Adjustment is set forth on Schedule
1.1(aa). 
 (bb) “Excluded Assets” has the meaning set forth in Section 2.1(b). 
 (cc) “Excluded Liabilities” has the meaning set forth in Section 2.7. 
 (dd) “Excluded Employee Liabilities” means: (i) payments or entitlements that Seller or its ERISA Affiliates may owe
or have promised to pay to Employees, including wages, other remuneration, holiday or vacation pay, bonus, commission, pension contributions (including without limitation those related to 401(k) plans), taxes, and any other Liability; (ii) all
payments with respect to the Employees that are due to be paid on or prior to the Closing Date (including pension and 401(k)-related contributions, insurance premiums and taxation) to any third party in connection with the employment of any of the
Employees; (iii) any claims or expectancies of any Employees following from their employment or consultancy with Seller or its ERISA Affiliates which have been incurred or accrued on or prior to the Closing Date; and (iv) any other
Liability related to the Employees or agents of Seller or its ERISA Affiliates which were incurred or accrued on or prior to the Closing Date, whenever arising, in each case including WARN Act or any similar law or statute, change of control,
workers’ compensation, severance, salary, bonuses, COBRA benefits or other benefits or payments due under any Seller Employee Plan, whether or not any such Employees shall accept employment with Purchaser in connection with the Transactions.

 (ee) “Final Closing Date Balance Sheet” has the meaning set forth in Section 7.4. 
 (ff) “GAAP” has the meaning set forth in Section 4.6. 
 (gg) “Governmental Entity” means any court, administrative agency or commission or other federal, state, county, local or
other foreign governmental authority, instrumentality, agency or commission. 
 (hh) “Holdback Amount” has the
meaning set forth in Section 3.4. 
 (ii) “Indemnified Party” has the meaning set forth in
Section 8.2. 
 (jj) “Indemnifying Party” has the meaning set forth in Section 8.2.

  

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 (kk) “Intellectual Property Rights” shall mean any or all of the following
and all statutory and/or common law rights throughout the world in, arising out of, or associated therewith: (i) all patents and applications therefor and all reissues, divisions, renewals, extensions, provisionals, substitutions, continuations
and continuations-in-part thereof (collectively, “Patents”); (ii) all inventions (whether patentable or not), invention disclosures and improvements, all trade secrets, proprietary information, know how and technology;
(iii) all works of authorship, copyrights, mask works, copyright and mask work registrations and applications; (iv) all industrial designs and any registrations and applications therefor; (v) all trade names, logos, trademarks and
service marks, trademark and service mark registrations and applications (collectively, “Trademarks”); (vi) all databases and data collections (including knowledge databases, customer lists and customer databases);
(vii) all rights in Software; (viii) rights to uniform resource locators, Web site addresses and domain names; (ix) any similar, corresponding or equivalent rights to any of the foregoing; and (x) all goodwill associated with any
of the foregoing. 
 (ll) “Knowledge” or “Known” shall mean, with respect to Seller, the
knowledge of Dave Plummer, Nicole Plummer, Allen Nieman, Matt Boisen, and Peifeng Ni, assuming that such persons shall have made due and diligent inquiry with respect to the relevant subject matter. 
 (mm) “Legal Requirement” means any constitution, act, statute, law, ordinance, treaty, rule, regulation or official
interpretation of, or judgment, injunction, order, decision, decree, license, permit or authorization issued by, any Governmental Entity. 
 (nn) “Liability” shall mean any debt, liability, indebtedness, duty, expense, claim, deficiency, guaranty, endorsement or other obligation of any type (whether known or unknown, whether
asserted or unasserted, whether matured or unmatured, whether absolute or contingent, whether accrued or unaccrued, whether liquidated or unliquidated, whether incurred or consequential and whether due or to become due), including any liability for
Taxes. 
 (oo) “Lien” shall mean any mortgage, pledge, lien, security interest, charge, claim, equity,
encumbrance, restriction on transfer, conditional sale or other title retention device or arrangement (including a capital lease), transfer for the purpose of subjection to the payment of any indebtedness, or restriction on the creation of any of
the foregoing, whether relating to any property or right or the income or profits therefrom. 
 (pp) “Loss” and
“Losses” has the meaning set forth in Section 8.2. 
 (qq) “Non-Competition and
Non-Solicitation Agreement with Dave Plummer” has the meaning set forth in the recitals hereto. 
 (rr)
“Non-Competition and Non-Solicitation Agreement with Nicole Plummer” has the meaning set forth in the recitals hereto. 
 (ss) “Non-Competition Period” has the meaning set forth in Section 7.2. 
 (tt) “Offer Letter” has the meaning set forth in the recitals hereto. 
 (uu) “Officer’s Certificate” has the meaning set forth in Section 8.4. 
 (vv)
“Open Source Materials” has the meaning set forth in Section 4.9(h). 
  

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 (ww) “Party” and “Parties” have the meaning set forth in
the introductory paragraph hereto. 
 (xx) “Permitted Liens” means those Liens set on Schedule 1.1(xx)
(i) for Taxes or governmental assessments, charges or claims the payment of which is not yet due; and (ii) of landlords and carriers, warehousemen, mechanics, materialmen and other similar Persons and imposed by applicable law, in each
case incurred in the ordinary course of business for sums not yet delinquent or being contested in good faith. 
 (yy)
“Person” means an individual, partnership, corporation, limited liability company, association, joint venture, trust, unincorporated organization or Governmental Entity. 
 (zz) “Personally Identifiable Information” or “PII” has the meaning set forth in
Section 4.9(t). 
 (aaa) “Principal Stockholder” and “Principal Stockholders” has
the meaning set forth in the introductory paragraph hereto. 
 (bbb) “Processing” has the meaning set forth in
Section 4.9(u). 
 (ccc) “Product Software” means all Software that is included in or part of any
version of the Transferred Products, including the Software listed on Schedule 1.1(ccc) and all versions thereof, and including any Software from which such Software was derived. 
 (ddd) “Purchase Price” has the meaning set forth in Section 3.3. 
 (eee) “Purchaser” has the meaning set forth in the introductory paragraph hereto. 
 (fff) “Registered IP” means all United States, international and foreign: (i) patents and patent applications
(including provisional applications) or service marks; (ii) registered trademarks, applications to register trademarks, intent-to-use applications, or other registrations or applications related to trademarks or service marks;
(iii) registered copyrights and applications for copyright registration; (iv) domain name registrations; and (v) any other Intellectual Property Rights that are the subject of an application, certificate, filing, registration or other
document issued, filed with, or recorded by any state, government or other public legal authority. 
 (ggg) “Restricted
Territory” has the meaning set forth in Section 7.2. 
 (hhh) “Seller” has the meaning set
forth in the introductory paragraph hereto. 
 (iii) “Seller Charter Documents” has the meaning set forth in
Section 4.1. 
 (jjj) “Seller Employee Plan” shall mean any plan, program, policy, practice,
contract, agreement or other arrangement providing for compensation, severance, termination pay, deferred compensation, performance awards, stock or stock-related awards, welfare benefits, retirement benefits, fringe benefits or other Employee
benefits or remuneration of any kind, whether written or unwritten, funded or unfunded, formal or informal, including each “employee benefit plan” within the meaning of Section 3(3) of ERISA, which is or has been maintained,
contributed to, or required to be contributed to, by Seller or any of its ERISA Affiliates for the benefit of any of Seller’s Employees or with respect to which Seller or any of its ERISA Affiliates has or may have any liability or obligation.

  

 -6- 

 (kkk) “Seller Lease” means the Lease Agreement dated as of October 16,
2003 between Seller and Lynn Limited Liability Company (now Washington Federal Savings and Loan), as amended. 
 (lll)
“Seller’s Privacy Policies” has the meaning set forth in Section 4.9(t). 
 (mmm)
“Sites” shall mean all of the world wide web sites used in the Business, including those located at the uniform resource locators set forth on Schedule 1.1(mmm). 
 (nnn) “Software” means any and all computer software and code, including assemblers, applets, compilers, source code,
object code, data (including image and sound data), design tools and user interfaces, in any form or format, however fixed. Software includes source code listings and documentation. 
 (ooo) “Special Representations” has the meaning set forth in Section 8.1. 
 (ppp) “Stockholders” shall mean all of the holders of capital stock of Seller. 
 (qqq) “Tangible Assets” means all tangible assets, including Technology, used in, related to or reasonably necessary for
the operation of the Business, the material items of which are described on Schedule 1.1(qqq). 
 (rrr) “Tax” and “Taxes” means (i) any and all federal, state, local and foreign taxes, assessments, and other governmental charges, duties, impositions and liabilities, including taxes based upon or
measured by gross receipts, income, profits, sales, use and occupation, and value-added, ad valorem, transfer, franchise, withholding, payroll, recapture, employment, excise and property taxes, together with all interest, penalties and additions
imposed with respect to such amounts; (ii) any liability for the payment of any amounts of the type described in clause (i) above as a result of being a member of an affiliated, consolidated, combined or unitary group for any period; and
(iii) any liability for the payment of any amounts of the type described in clause (i) or (ii) above as a result of any express or implied obligation to indemnify any other Person or as a result of any obligations under any agreements
or arrangements with any other Person or entity with respect to such amounts and including any liability for taxes of a predecessor entity. 
 (sss) “Tax Returns” means all forms required to be filed with a taxing authority, including for the payment or reporting of sales taxes. 
 (ttt) “Technology” means all technology, including all know-how, show-how, techniques, design rules, trade secrets,
inventions (whether or not patented or patentable), algorithms, routines, Software, files, databases, works of authorship, processes, devices, prototypes, schematics, netlist, mask works, test methodologies, documentation, hardware development
tools, any media on which any of the foregoing is recorded, and any other tangible embodiments of any of the foregoing. 
  

 -7- 

 (uuu) “Transactions” means the transactions contemplated by this Agreement
and any agreements related to this Agreement. 
 (vvv) “Transfer Taxes” has the meaning set forth in
Section 3.7. 
 (www) “Transferred Assets” has the meaning set forth in Section 2.1.

 (xxx) “Transferred Contracts” means those Contracts listed on Schedule 1.1(xxx),
with any Transferred Contracts requiring a Consent, and whether such Consent has been obtained prior to the Closing, indicated thereon. 
 (yyy) “Transferred IP” means all Intellectual Property Rights owned by Seller that are embodied by or would be infringed by the making, using, offering for sale, selling, importing or
other exploitation of the Transferred Products, the Product Software or the Web Content, or by the operation of the Business, the material items of which are listed or described in Schedule 1.1(yyy). 
 (zzz) “Transferred Products” means Seller’s entire line of products and services relating to the Business, including
all versions of such products and services, and products and services under development, and including the products listed on Schedule 1.1(zzz) hereto. 
 (aaaa) “Transferred Technology” shall mean all Technology owned by Seller or that Seller has the right or authority to
transfer (other than Technology used exclusively in an Excluded Asset), including the Technology constituting the Transferred Products and the Web Content, and including all Technology listed on Schedule 1.1(aaaa). To the
extent that any Software constitutes Transferred Technology, all versions and releases of such Software, and Software from which such Software was derived shall be included as Transferred Technology. 
 (bbbb) “Web Content” shall mean all content of Seller that is or has been displayed or available, or that Seller has
otherwise prepared or developed to sell or market the Transferred Products, on the Sites or on any third party’s web site. 
 1.2
Construction. For purposes of this Agreement, the Parties hereto agree that: 
 (a) whenever the context requires,
the singular number will include the plural, and vice versa, the masculine gender will include the feminine and neuter genders, the feminine gender will include the masculine and neuter genders, and the neuter gender will include the masculine and
feminine genders; 
 (b) the words “include” and “including,” and variations thereof, will not be deemed to
be terms of limitation, but rather will be deemed to be followed by the words “without limitation”; 
 (c) all
references in this Agreement to “Schedules,” “Sections” and “Exhibits” are intended to refer to Schedules, Sections and Exhibits to this Agreement, except as otherwise indicated; 
  

 -8- 

 (d) the headings in this Agreement are for convenience of reference only, will not be deemed
to be a part of this Agreement, and will not be referred to in connection with the construction or interpretation of this Agreement; 
 (e) each Party has been represented by counsel during the negotiation and execution of this Agreement and, therefore, each waives the application of any law, regulation, holding or rule of construction providing that ambiguities in an
agreement or other document will be construed against the Party drafting such agreement or document; 
 (f) nothing in the
Disclosure Schedule shall be deemed an adequate disclosure to a representation or warranty made herein unless the statements in the Disclosure Schedule identifies the disclosure with reasonable particularity and indicates the Section and, if
applicable, the Subsection of this Agreement to which such disclosure relates, or a specific cross-reference to such statements are made indicating those other Sections or Subsections of the Agreement to which such disclosure relates; and

 (g) each representation, warranty and covenant herein shall have independent significance so that if any Party has breached
any representation, warranty or covenant in any respect, the fact that there exists another representation, warranty or covenant relating to the same subject matter (regardless of the relative levels of specificity) that the Party has not breached
shall not detract from or mitigate the fact that the Party is in breach of the first representation, warranty or covenant. 
 ARTICLE 2 
 TRANSFER OF ASSETS 
 2.1 Transfer of Assets. 
 (a) Transferred Assets. At the Closing and
subject to the terms and conditions set forth in this Agreement, Seller shall cause to be sold, assigned, transferred, conveyed and delivered to Purchaser good and valid title to the Transferred Assets free and clear of any and all Liens other than
Permitted Liens. For purposes of this Agreement and subject to Section 2.1(b), “Transferred Assets” means and includes all of the properties, rights, interests and other tangible and intangible assets (wherever located
and whether or not required to be reflected on a balance sheet prepared in accordance with GAAP), of Seller, other than the Excluded Assets. Without limiting the generality of the foregoing, the Transferred Assets shall include the following (to the
extent not included in the Excluded Assets): 
  

	 	(i)	all cash and cash equivalents of Seller; 

  

	 	(ii)	all accounts receivable of Seller; 

  

	 	(iii)	the Books and Records; 

  

	 	(iv)	the Transferred IP; 

  

	 	(v)	the Transferred Products, including all Product Software; 

  

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	 	(vi)	the Tangible Assets; 

  

	 	(vii)	all rights of Seller under the Transferred Contracts, including the benefit of any prepaid expenses; 

  

	 	(viii)	the Transferred Technology; 

  

	 	(ix)	all direct marketing, promotional, marketing and advertising techniques, methodology, approaches, preferred placements, in each case, whether or not reduced to writing,
materials, brochures and presentations of Seller, including all advertising and website copy; 

  

	 	(x)	all Trademarks associated with the Business, and all goodwill associated therewith; 

  

	 	(xi)	the Sites and all rights thereto; 

  

	 	(xii)	all goodwill associated with the Transferred Products and the Business; 

  

	 	(xiii)	any other assets, tangible or intangible, or rights of Seller related to, useful in or necessary to the Business or the Transferred Products, including those assets
listed on Schedule 2.1(a)(xiii); and 

  

	 	(xiv)	all rights to recover past, present and future damages for the breach, infringement or misappropriation, as the case may be, of any of the foregoing, and all claims and
causes of action against third parties related to the Business, including those related to the Transferred Assets. 

 (b) Excluded Assets. Notwithstanding anything to the contrary, the Transferred Assets shall not include those assets set forth on Schedule 2.1(b) (the “Excluded Assets”), except to the extent any Technology or
Intellectual Property Rights or other such assets may be useful in or necessary to the Business or the Transferred Products, in which case they shall be and remain Transferred Assets. 
 2.2 Delivery of Transferred Assets.
 (a) On the Closing, Seller shall, at
Seller’s sole cost, in the manner and form, and to the locations, reasonably specified by Purchaser, (i) deliver to, or put in possession of, Purchaser or other entity designated by Purchaser, all of the Transferred Assets, (ii) in
the case of the Transferred IP or other intangible assets, deliver such instruments as are necessary or desirable to document and to transfer title to such assets from Seller to Purchaser in accordance with Section 2.4 below, and
(iii) deliver to Purchaser fully-executed, complete and accurate originals of all of the Transferred Contracts, or, to the extent originals are not available, fully-executed, complete and accurate copies of all of the Transferred Contracts;
provided that, with respect to Software that constitutes Transferred Technology, Seller shall be required to deliver to Purchaser at the Closing only (A) the current versions and releases of such Software, and (B) those prior
versions and releases of such Software in Seller’s possession as of the Closing. Without limiting the foregoing, Seller shall deliver to Purchaser at the Closing, by electronic transmission in a manner specified by Purchaser, all Transferred
Assets contained in electronic form, including source code, object code, source documentation and all other related materials for Transferred Assets. 
  

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 (b) To the extent that Purchaser cannot be granted possession by Seller of certain Tangible
Assets as of the Closing Date, the transfer of possession will be substituted by an agreement that those assets shall be held by Seller for and on behalf of Purchaser until such time as Purchaser is granted possession thereof. During that period,
Seller shall bear all risk of loss with respect to those Tangible Assets. 
 2.3 Technology Retention. Following the Closing, Seller
shall not retain copies of any of the Product Software or other Technology included in the Transferred Assets, even if such Transferred Assets are such that more than one copy may exist, and Seller waives, solely for the benefit of Purchaser and its
subsidiaries and affiliates, any rights to which it is entitled under any employee confidential information and invention assignment agreement or similar Contract or arising under applicable law with respect to the subject matter thereof.

 2.4 Collateral Agreements. Without limiting the foregoing, at the Closing, Seller shall deliver to Purchaser, duly executed by
Seller: (a) a General Assignment and Bill of Sale substantially in the form attached hereto as Exhibit D hereto; (b) assignments of the Transferred IP in forms acceptable to Purchaser and otherwise suitable for filing in all
relevant jurisdictions and governmental offices, including an assignment of copyright substantially in the form attached hereto as Exhibit E; and (c) such other good and sufficient instruments of conveyance, assignment and transfer, in
form and substance acceptable to Purchaser, as shall be effective to vest in Purchaser good and valid title in and to the Transferred Assets (the instruments referred to in clauses (a), (b) and (c) being collectively referred to
herein as the “Collateral Agreements”). 
 2.5 Agreement to Perform Necessary Acts. To the extent reasonably
necessary, following the Closing and without demanding further consideration therefor, Seller and the Principal Stockholders shall, and shall cause the Employees and agents (including any named inventors on any Patents included in the Transferred
Assets), to provide Purchaser with reasonable access to relevant information, to provide Purchaser with reasonable cooperation and assistance in the enforcement or prosecution of any Transferred IP (which such cooperation and assistance shall not
exceed a time commitment from the Principal Stockholders exceeding 5 hours; provided that if additional time is necessary, Dave Plummer shall provide such cooperation and assistance pursuant to the Consulting Agreement) and otherwise to
execute and deliver such other instruments and do and perform such other acts and things as may be reasonably necessary or desirable for effecting completely the consummation of the Transactions. Assistance under this Section 2.5 may
include execution, acknowledgment and recordation of specific assignments, oaths, declarations and other documents on a jurisdiction-by-jurisdiction and/or a country-by-country basis and such other instruments of sale, transfer, conveyance, and
assignment as Purchaser or its counsel may reasonably request. 
 2.6 Assumed Liabilities. Upon the terms and subject to the
conditions set forth herein, at the Closing, Purchaser shall assume from Seller (and thereafter pay, perform, discharge or otherwise satisfy), the following Liabilities of Seller which accrue and are to be performed from and after the Closing Date,
and no others (collectively, the “Assumed Liabilities”): 
 (a) those executory obligations of Seller under the
Transferred Contracts, in each case solely on a going-forward basis from and after the Closing Date; 
  

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 (b) royalties or fees due for use or distribution of any products or services sold by Seller
prior to Closing in the ordinary course of business and to the extent related to Transferred Products and accrued or reserved for on the Final Closing Date Balance Sheet; 
 (c) returns or refunds for any products or services sold by Seller prior to Closing in the ordinary course of business and to the extent related to the Transferred Products and reserved for on the Final
Closing Date Balance Sheet; 
 (d) the current accounts payable and accrued expenses of Seller to the extent incurred or accrued
in the ordinary course of business prior to Closing and accrued or reserved for on the Final Closing Date Balance Sheet; and 
 (e) those Liabilities specifically identified on Schedule 2.6(e). 
 The assumption of the Assumed Liabilities by
Purchaser hereunder shall not enlarge any rights of third parties under any contracts or agreements with Purchaser or Seller or any of their respective affiliates. 
 2.7 Excluded Liabilities. Except for the Assumed Liabilities, Purchaser shall not assume or be obligated to pay, perform, discharge or in any way be responsible for any Liability of Seller any
Stockholder or any of their affiliates (the “Excluded Liabilities”). Without limiting the foregoing, and notwithstanding anything in Section 2.6 to the contrary, the Assumed Liabilities will not include and Purchaser
will not assume any liability of Seller, the Stockholders or any of their affiliates with respect to: 
 (a) any Liabilities and
obligations of Seller or the Principal Stockholders under this Agreement and any agreement executed pursuant hereto or contemplated hereby; 
 (b) other than the Assumed Liabilities, any Liabilities in connection with, resulting from or arising out of, directly or indirectly, the ownership of the Transferred Assets or the operation of the
Business on or prior to the Closing Date, including (i) warranty and support obligations to third parties for any products or services sold by Seller prior to Closing, whether or not related to the Transferred Products; (ii) any failure to
comply with data collection, e-commerce and privacy laws and regulations; (iii) any liability to the Washington State Attorney General, including for deferred penalties, related to the conduct of Seller prior to Closing; (iv) any Liability
of Seller arising out of violations of law, infringement of third party Intellectual Property Rights, actions or omissions of Seller, or breaches of any agreement, contract, indenture, instrument, guarantee or other similar agreement occurring on or
prior to the Closing (including, without limitation, any amounts paid in settlement of claims alleged by the Business Software Alliance); and (v) any liability arising under the Seller Lease, including as a result of the cancellation or
amendment thereof; 
 (c) any legal, accounting, brokerage, finder’s fees, if any, Taxes or other expenses incurred by
Seller or the Stockholders in connection with this Agreement or the consummation of the Transactions; 
  

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 (d) any debts, Liabilities or obligations of Seller for borrowed money; 
 (e) any Liabilities with respect to Taxes of any nature for all periods (or portions thereof) beginning prior to the Closing Date and any
Taxes recognized or owed as a result of this Agreement or the consummation of the Transactions; 
 (f) any Excluded Employee
Liabilities; 
 (g) claims for injury to person or property regardless of when made or asserted, which relate to the products
and services sold or delivered by Seller prior to Closing; specifically, and without limiting the generality of the foregoing, Purchaser expressly does not assume or agree to pay or be responsible for claims, whether foreseeable or unforeseeable,
based on successor liability doctrines conceptualized under such rubrics as the “product line”, “continuity of enterprise” or “de facto merger” doctrines; 
 (h) any Liability of Seller with respect to the Excluded Assets; and 
 (i) any Liability related to a Permitted Lien to the extent such Liability is not deemed an Assumed Liability. 
 Seller agrees to satisfy all debts, Liabilities and obligations with respect to the Excluded Liabilities whether known at Closing or thereafter determined,
as and when due, and Seller shall indemnify and hold Purchaser harmless therefrom in accordance with Section 8.2, as set forth herein. 
 2.8 Covenant Not to Sue. Following the Closing, Seller and the Principal Stockholders agree that they and their affiliates and successors and assigns will not bring any cause of action based upon the purported or actual
infringement by any of the Transferred Assets, or any improvement, modification, derivative or update of any of the Transferred Assets, of any Patent or other Intellectual Property Rights included in the Excluded Assets against Purchaser, any
affiliate or successor or assign of Purchaser or any direct or indirect customer of Purchaser or any of its affiliates, successors or assigns. 
 2.9 Purchaser License.
 (a) In the event that any Technology or Intellectual Property Rights included in the
Excluded Assets are necessary to or used in the Business or in the Transferred Products, Seller hereby grants to Purchaser a royalty-free, fully-paid, perpetual, irrevocable, non-exclusive, world-wide, transferable license, with rights to
sublicense, to make, have made, use, copy, perform, display, sell, offer for sale and distribute such Technology and/or Intellectual Property Rights. 
 (b) All licenses granted to Purchaser under this Section 2.9 are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses to rights of
“Intellectual Property Rights” as defined thereunder. Notwithstanding any provision contained herein to the contrary, if Seller is under any proceeding under the Bankruptcy Code and the trustee in bankruptcy of Seller, or Seller, as a
debtor in possession, rightfully elects to reject the licenses granted to Purchaser hereunder, Purchaser may, pursuant to Section 365(n)(1) and (2) of the U.S. Bankruptcy Code, retain any and all of Purchaser’s rights under such
licenses, to the maximum extent permitted by law. 
  

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 2.10 Assignment of Contracts.
 (a) In the event that, prior to the Closing, Seller has not obtained Consent to assign to Purchaser any Transferred Contract for which
Consent to assignment is required then: 
 (i) Seller shall obtain Consent to assign each such Transferred Contract to Purchaser
as soon as practicable and in any event within 60 days of Closing; and 
 (ii) Until such time as Seller obtains such Consent,
Seller hereby appoints and authorizes Purchaser to fulfill Seller’s obligations arising under each such Transferred Contract and to collect any consideration, property or services to which Seller is entitled under such Transferred Contract. If
and to the extent Seller receives any such consideration, property or services under such Transferred Contract, Seller shall receive for the benefit of, and promptly pay or deliver to, Purchaser such consideration, property or services. The
relationship under this Section 2.10(a)(ii) is that of independent contractors, and nothing in this Section 2.10(a)(ii) will be construed to create a relationship of agency or partnership between Seller and Purchaser or to
create any obligation to, or provide any benefit for, any other person. 
 (b) For a period of not more than 60 days following
the Closing, Seller hereby appoints and authorizes Purchaser to utilize Seller’s merchant account with Wells Fargo Merchant Services LLC for purposes of collecting payment from customers of the Business post-Closing, to fulfill Seller’s
obligations arising under such merchant account solely with respect to the performance of the matters contemplated by this Section 2.10(b), and to collect any consideration, property or services to which Seller is entitled under such
merchant account. If and to the extent Seller receives any such consideration, property or services under such merchant account, Seller shall receive for the benefit of, and promptly pay or deliver to, Purchaser such consideration, property or
services (net of any refunds, returns and chargebacks, as applicable). The relationship under this Section 2.10(b) is that of independent contractors, and nothing in this Section 2.10(b) will be construed to create a
relationship of agency or partnership between Seller and Purchaser or to create any obligation to, or provide any benefit for, any other person. 
 ARTICLE 3 
 CLOSING, PURCHASE PRICE AND PAYMENTS 
 3.1 Closing. The closing (the “Closing”) of the sale and purchase of the Transferred Assets and all other Transactions
contemplated to occur at the Closing shall take place at the offices of Hayden Bergman Rooney, Professional Corporation, counsel to Purchaser, located at 150 Post Street, Suite 650, San Francisco, CA 94108, commencing at 2:00 p.m., local time, on
the date of this Agreement, or such other date, time or location that Purchaser and Seller may mutually determine. 
  

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 3.2 Deliveries at Closing. In addition to and in accordance with the obligations of Seller set
forth under ARTICLE 2, at the Closing, Seller shall deliver, or cause to be delivered, to Purchaser: 
 (a) the
Transferred Assets (including the Transferred Contracts, if any); 
 (b) fully-executed counterparts to the Collateral
Agreements; 
 (c) copies of the Books and Records, and any filings and other documentation (other than the Collateral
Agreements) relevant to the Transferred Assets and not yet delivered; 
 (d) fully-executed counterparts to the Escrow Agreement
and such other documentation as the Escrow Agent may reasonably request; 
 (e) written Consents for each Transferred Contract
indicated on Schedule 1.1(xxx) hereto as requiring Consent and for which Consent has been obtained prior to Closing; 
 (f) fully-executed counterparts to the Offer Letters and Purchaser’s standard Employment, Confidential Information and Invention Assignment Agreement (in form and substance satisfactory to Purchaser), for each of Allen Nieman, Matt
Boisen, Sean Norman, Peifeng Ni, Irina Tarnavski and Elaine Magyar; 
 (g) fully-executed counterparts to the Consulting
Agreement; 
 (h) fully-executed counterparts to each of Non-Competition and Non-Solicitation Agreement with David W. Plummer
and Non-Competition and Non-Solicitation Agreement with Nicole Plummer; 
 (i) fully-executed counterparts to the Employee
Non-Competition and Non-Solicitation Agreement from each of the Designated Employees; 
 (j) certificate of good standing for
Seller from the Secretary of State of the State of Washington, and in each state in which Seller is qualified to do business, each dated within five (5) business days prior to the Closing certifying as to the good standing of Seller in such
states; 
 (k) legal opinion from K&L Gates, legal counsel to Seller, substantially in the form attached hereto as
Exhibit F; 
 (l) certificate, validly executed by the Secretary of Seller, certifying as to (i) the terms and
effectiveness of the Seller Charter Documents and the good standing of Seller, (ii) the valid adoption of resolutions of the Board of Directors of Seller (whereby the Agreement and Transactions were unanimously approved by the Board of
Directors of Seller), and (iii) the valid adoption of resolutions of the Stockholders of Seller approving the Agreement and Transactions; 
 (m) an amendment to the Development Agreement dated September 28, 2005, and to the Second Amended and Restated Reseller Agreement as amended on August 28, 2008, each with Systweak, Inc.,
including a fully-executed source code escrow agreement, substantially in the form attached hereto as Exhibit G; 
  

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 (n) evidence reasonably satisfactory to Purchaser (as determined in its
sole and absolute discretion) that Seller has amended or terminated the Seller Lease enabling Purchaser to directly enter into a lease with the landlord for the office space on the 3rd floor of the premises located at 336 228th Avenue NE, Sammamish, Washington; 
 (o) fully-executed assignments in the form attached hereto as Exhibit H from each of Dave Plummer and Nicole Plummer; 
 (p) evidence reasonably satisfactory to Purchaser (as determined in its sole and absolute discretion) that Seller has implemented such changes and modifications as set forth on Schedule 3.2(p); and

 (q) such other instruments and documents as shall be reasonably requested by Purchaser in connection with this Agreement and
the consummation of the Transactions. 
 3.3 Purchase Price. In consideration of the sale, assignment and transfer of the
Transferred Assets, and subject to the terms and conditions set forth in this Agreement, including Section 3.5 below, Purchaser will pay an amount (the “Purchase Price”) equal to (x) Eight Million Five Hundred
Thousand Dollars ($8,500,000), less (y) the Actual Net Working Capital Adjustment. In addition, Purchaser shall assume the Assumed Liabilities. Purchaser shall have no obligation to pay the Purchase Price or any other amount to Seller in the
event the Closing does not occur. 
 3.4 Payment of Purchase Price. 
 (a) At the Closing, Purchaser shall (i) on behalf of Seller, deposit with the Escrow Agent a portion of the Purchase Price equal to One
Million Dollars ($1,000,000) (the “Escrow Payment”); and (ii) pay to Seller by wire transfer, in cash, a portion of the estimated Purchase Price equal to Seven Million Five Hundred Thousand Dollars ($7,500,000), less
(x) the Estimated Net Working Capital Adjustment, less (y) $100,000 (the “Holdback Amount”), in accordance with the wire transfer instructions set forth on Schedule 3.4. 
 (b) Within the later of ten (10) days following the Closing Date, and five (5) business days following the receipt by Purchaser of
the Final Closing Date Balance Sheet, Purchaser shall pay to Seller by wire transfer, in cash: (i) if the Actual Net Working Capital Adjustment is less than or equal to the Estimated Net Working Capital Adjustment, an amount equal to the
Holdback Amount; and (ii) if the Actual Net Working Capital Adjustment is greater than the Estimated Net Working Capital Adjustment, an amount (not less than zero) equal to the Holdback Amount, less the difference between Actual Net Working
Capital Adjustment and the Estimated Net Working Capital Adjustment; provided in the event that, by such date, Seller has not provided to Purchaser evidence of satisfaction of any Transfer Taxes due with respect to the sale of the Transferred
Assets, Purchaser may withhold from the Holdback Amount released to Seller, if any, an amount equal to the Transfer Taxes due, and either pay over such withheld amount to the applicable taxing authorities or release such amounts to Seller upon
receipt of evidence of satisfaction by Seller of such Transfer Taxes. 
 3.5 Escrow Fund and Escrow Agreement. The Escrow
Payment, together with any accrued interest, will constitute an escrow fund (the “Escrow Fund”) and will be governed by the terms set forth in ARTICLE 8 hereof and the Escrow Agreement. The Escrow Fund shall be available to
compensate Purchaser for Losses incurred by the Indemnified Parties pursuant to the indemnification provisions set forth in ARTICLE 8 hereof. 
  

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 3.6 Allocation of Purchase Price. Attached hereto as Schedule 3.6 is an estimated allocation
(the “Allocation”) of the Purchase Price and other consideration paid or deemed paid for tax purposes, prepared in accordance with Section 1060 of the Code, or any successor thereto, and the regulations promulgated thereunder.
The Allocation shall be updated by Purchaser to reflect any changes in the Final Closing Date Balance Sheet from the Estimated Closing Date Balance Sheet. Such Allocation, as updated, shall be conclusive and binding upon the Parties for all tax
purposes, and the Parties agree that all returns and reports (including IRS Form 8594) shall be prepared in a manner consistent with (and the Parties shall not otherwise file a tax return position inconsistent with) the Allocation unless
required by the IRS or any other applicable taxing authority. 
 3.7 Transfer Taxes. All sales, use, value-added, gross receipts,
excise, registration, stamp duty, transfer, documentary or other similar taxes or governmental fees (“Transfer Taxes”) imposed or levied by reason of, in connection with or attributable to this Agreement and the Transactions shall
be borne solely by Seller. Seller shall promptly, and in any event within 10 days of Closing, pay all such Transfer Taxes and deliver to Purchaser evidence of satisfaction of the same. 
 3.8 Expenses. Except as otherwise provided herein, each Party shall be solely responsible for its own costs and expenses (including those of its employees and attorneys’ and other
advisors’ fees) incurred in negotiating and consummating the Transactions. 
 3.9 Withholding Taxes. Notwithstanding any other
provision in this Agreement, Purchaser shall have the right to deduct and withhold Taxes from any payments to be made hereunder if such withholding is required by law and to request any necessary Tax forms, including Form W-9 or the appropriate
series of Form W-8, as applicable, or any similar information, from the direct or indirect recipients of payments hereunder. To the extent that amounts are so withheld, such withheld amounts shall be treated for all purposes of this Agreement as
having been delivered and paid to the recipient of the payment in respect of which such deduction and withholding was made. 
 ARTICLE 4 
 REPRESENTATIONS AND WARRANTIES OF SELLER AND THE PRINCIPAL STOCKHOLDERS 
 Seller and the Principal Stockholders jointly and severally represent and warrant to Purchaser, as qualified by such exceptions as are specifically set
forth in the Disclosure Schedule (referencing the appropriate Section and paragraph numbers), as follows: 
 4.1 Organization and
Standing.
 (a) Seller is a corporation duly organized, validly existing and in good standing under the laws of the
State of Washington. Seller has the power and authority to own, lease and operate its assets and property and to carry on its business as currently conducted and as currently contemplated to be conducted. Seller is duly qualified or licensed to do
business, to perform its obligations under all

  

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Contracts by which it is bound and is in good standing in each jurisdiction where the character of the properties owned, leased or operated by it or the nature of its activities makes such
qualification or licensing necessary. Section 4.1(a) of the Disclosure Schedule lists the directors and officers of Seller, and each jurisdiction in which Seller is qualified to do business. 
 (b) Seller has delivered to Purchaser true and correct copies of Seller’s Amended and Restated Articles of Incorporation and bylaws,
each as amended through the date hereof (together, the “Seller Charter Documents”), and each such instrument is in full force and effect. Seller is not in violation of any of the provisions of the Seller Charter Documents. There are
no proposed amendments to the Seller Charter Documents. The operations now being conducted by Seller relating to the Business or the Transferred Assets have not now and have never been conducted under any other name. 
 (c) Seller does not own or control, directly or indirectly, any interest in any other corporation, association or other business entity.
Seller is not a participant in any joint venture, partnership or other arrangement involving joint ownership of assets and sharing of profits. Prior to the Closing, RocketRain, LLC, a Delaware limited liability company wholly-owned by Seller, was
dissolved and all of its assets transferred to Seller. All representations and warranties of Seller herein are deemed to include reference to Seller as successor in interest to RocketRain, LLC. 
 4.2 Authorization of Transactions. Seller and each of the Principal Stockholders have all requisite power and authority to enter into this
Agreement, the Escrow Agreement and the Collateral Agreements and any related agreements to which they are a party and to consummate the Transactions. The execution and delivery of this Agreement, the Escrow Agreement and the Collateral Agreements
and the consummation of the Transactions have been duly authorized by all necessary company action on the part of Seller and, to the extent necessary, each Principal Stockholder. No further actions are required on the part of Seller or any Principal
Stockholder to authorize this Agreement, the Escrow Agreement or the Collateral Agreements or any related agreements to which they are a party or to consummate the Transactions. The vote required to approve this Agreement under the Seller Charter
Documents and applicable law by the Stockholders is set forth in Section 4.2 of the Disclosure Schedule, and such vote has been obtained in compliance with applicable law. This Agreement, the Escrow Agreement and the Collateral
Agreements have been duly executed and delivered by Seller and the Principal Stockholders and constitute the valid and binding obligation of them (assuming the due authorization, execution and delivery by Purchaser, as applicable), enforceable in
accordance with their terms, except as such enforceability may be subject to the laws of general application relating to bankruptcy, insolvency and the relief of debtors and rules of law governing specific performance, injunctive relief or other
equitable remedies. 
 4.3 Noncontravention. The execution and delivery of this Agreement and any related agreements by Seller and
the Principal Stockholders does not, and the performance of this Agreement and any related agreements by any of them will not, (a) conflict with or violate the Seller Charter Documents, (b) conflict with or violate any law, rule,
regulation, order, judgment or decree applicable to Seller or by which any of its properties is bound or affected, or (c) result in any breach of or constitute a default (or an event that with notice or lapse of time or both would become a
default) under, or impair the rights of Seller or alter the rights or obligations of any

  

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third party under, or give to others any rights of termination, amendment, acceleration or cancellation of, or result in the creation of a Lien, other than a Permitted Lien, on any of the
Transferred Assets pursuant to, any Contract or other obligation to which Seller is a party or by which the Business or the Transferred Assets are bound or affected. 
 4.4 Consents. No Consent of any Governmental Entity or any third party is required by Seller in connection with the execution and delivery of this Agreement or any related agreements or
the consummation of the Transactions, except for those Transferred Contracts specifically noted as requiring consent on Schedule 1.1(xxx) hereto. 
 4.5 Capitalization.
 (a) As of the date hereof, the only authorized
capital stock of Seller is 12,000,000 shares of Common Stock, no par value, of which 10,410,000 shares are issued and outstanding. The outstanding Common Stock and all options, warrants and other rights to acquire capital stock of Seller is held by
the Persons and in the amounts set forth in Section 4.5(a) of the Disclosure Schedule which further sets forth for each such Person the type and number of shares of capital stock held by such Person or which such Person may have the
right to acquire. Except as set forth in this Section 4.5(a) and Section 4.5(a) of the Disclosure Schedule, Seller has no other capital stock outstanding or that is entitled to vote to approve this Agreement and the Transactions,
and there are no outstanding warrants, options, rights, other securities, agreements, subscriptions or other commitments, arrangements or undertakings pursuant to which Seller may become obligated to issue, deliver or sell, or cause to be issued,
delivered or sold, any additional shares of capital stock of Seller or other securities of Seller or to issue, grant, extend or enter into any such warrant, option, right, security, agreement, subscription or other commitment, arrangement or
undertaking. 
 (b) All options to purchase Seller Common Stock will terminate on or prior to the Closing, and the holders of
such options will have received sufficient notice of termination prior to Closing. 
 (c) Seller does not directly or indirectly
own, and it has not directly or indirectly owned, any equity or similar interest in, or any interest convertible or exchangeable or exercisable for, any equity or similar interest in, any Person. The Transferred Assets are the sole property of
Seller and no other Person has an interest in the Transferred Assets. 
 4.6 Financial Statements. Section 4.6 of
the Disclosure Schedule includes complete and correct copies of: (i) Seller’s consolidated unaudited balance sheet as of December 31, 2008 and unaudited statements of income, cash flow and stockholders’ equity for the year then
ended (the “Year-End Financials”), and (ii) the Estimated Closing Date Balance Sheet, and unaudited statement of income, cash flow and stockholders’ equity for the period beginning January 1, 2009 and ending on the
Closing Date (the “Interim Financials”) (and, together with the Year-End Financial, the “Financials”). The Financials, and the Final Closing Date Balance Sheet when delivered, (i) are true and correct in all
material respects and have been prepared in accordance with generally accepted accounting principles (“GAAP”) applied on a consistent basis throughout the periods indicated and consistent with each other, except that (A) the
Interim Financials do not contain notes that may be required by GAAP and (B) revenue recognition for credit card sales does not

  

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comply with GAAP in that such revenue is recorded on a cash basis and recognized upon payment, and (ii) present fairly Seller’s financial condition, operating results and cash flows as
of the dates and during the periods indicated therein. Seller has no Liability of any type, whether accrued, absolute, contingent, matured, unmatured or other (whether or not required to be reflected in financial statements in accordance with GAAP),
except Liabilities which individually or in the aggregate (i) have been reflected in the Estimated Closing Date Balance Sheet (to the extent of such reflection or disclosure), or (ii) are executory obligations arising in the ordinary
course of business (and not as a result of the breach of any Contract identified in the Disclosure Schedule). 
 4.7 Restrictions on
Transactions or Business Activities. There is no agreement (noncompetition, field of use, most favored nation or otherwise), commitment, judgment, injunction, order or decree to which Seller is a party or which is otherwise binding upon
Seller or relates to the Business or the Transferred Assets which has or reasonably could be expected to have the effect of prohibiting or impairing (a) any practice of the Business, (b) any acquisition of property (tangible or intangible)
by Purchaser in connection with the operation of the Business or the Transferred Assets, (c) the conduct of the Business or (d) the Transactions. Without limiting the foregoing, Seller has not entered into any agreement under which the
operations of the Business are restricted or which places any restrictions upon Seller with respect to selling, licensing or otherwise using or distributing any of the Transferred Products or the Transferred Technology to or providing services to,
customers or potential customers or any class of customers, in any geographic area, during any period of time or in any segment of the market. 
 4.8 Title of Properties; Absence of Liens and Encumbrances; Condition. Seller has good and valid title to all of the Transferred Assets, and the power to sell, assign and transfer the Transferred Assets free and clear of any
Liens other than Permitted Liens. At the Closing, Purchaser will obtain good and valid title to the Transferred Assets, free and clear of all Liens other than Permitted Liens. The Tangible Assets are in good condition and repair, subject to normal
wear and tear. After the Closing, Purchaser shall be able to use the Transferred Assets and exercise, and enjoy the benefits of, the Transferred Assets in substantially the same manner as Seller prior to the Closing without infringing the rights of
any third party. The Transferred Assets are usable for their intended purposes, are free from defects and conform in all material respects to all applicable statutes, ordinances and regulations relating to their development, use and operation.

 4.9 Intellectual Property.
 (a) Section 4.9(a) of the Disclosure Schedule lists all Transferred IP that is Registered IP. All such Registered IP is currently in compliance with formal Legal Requirements (including
payment of filing, examination and maintenance fees and proofs of use), and is not subject to any unpaid maintenance fees or taxes or actions falling due within ninety (90) days after the Closing Date. To Seller’s Knowledge, all such
Registered IP, other than patent applications, is valid and enforceable. There are no proceedings or actions Known to Seller before any court, tribunal (including the United States Patent and Trademark Office or equivalent authority anywhere in the
world) related to any such Registered IP. Seller has not claimed any status in the application for or registration of any Registered IP, including “small business status,” that would not be applicable to Purchaser. 
  

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 (b) All schedules attached to this Agreement and listing or describing the Transferred
Products, the Transferred IP and the Transferred Technology are complete and accurate. 
 (c) The Transferred IP constitutes all
of the Intellectual Property Rights that are used in or necessary for the current or reasonably anticipated future operation of the Business or use of the Transferred Assets and for Purchaser to market, modify, develop, license, support, and
maintain the Transferred Products after Closing, including all licenses required by the Business Software Alliance. The Transferred Technology constitutes all of the Technology related to, used in or necessary for the current or reasonably
anticipated future operation of the Business or use of the Transferred Assets, and for Purchaser to market, modify, develop, license, support and maintain the Transferred Product after Closing. 
 (d) Seller does not own or have any interest in any Patents or other Registered IP other than the Patents and other Registered IP included
in the Transferred Assets and the Patent and other Registered IP listed on Schedule 2.1(b), which constitutes an Excluded Asset. None of the Patents included in the Transferred Assets, or any Patents related thereto, are subject to a terminal
disclaimer. 
 (e) Each item of the Transferred Products, Product Software, Transferred IP and Transferred Technology is free
and clear of any Liens and any other encumbrances. Seller owns exclusively, and has good and marketable title to all works of authorship and all associated copyrights that are used or embodied in, and all other Intellectual Property Rights in and
to, the Transferred Technology, and no other Person has any other rights thereto. All Transferred Assets shall be fully transferable and alienable by Purchaser. 
 (f) To the extent that any Transferred IP, Transferred Products or item of Transferred Technology was originally owned or created by or for any third party, including any Employee of Seller and any
predecessor of Seller: (i) Seller has a written agreement with such third party or parties with respect thereto, pursuant to which Seller has obtained complete, unencumbered and unrestricted ownership and is the exclusive owner of, all such
Products, Technology and Intellectual Property Rights by valid assignment or otherwise and has requested the waiver of all non-assignable rights, including all moral rights; (ii) the transfers from Seller to Purchaser hereunder do not violate
such third-party agreements; (iii) such third parties have not retained and do not have any rights or licenses with respect to the Transferred IP, Transferred Products or Transferred Technology; and (iv) no basis exists for any third party
to challenge or object to the Transactions. No third party who has licensed any Intellectual Property Rights to Seller has ownership rights or license rights to modifications or improvements made by Seller in the technology embodying such
Intellectual Property Rights. 
 (g) No Transferred Asset is subject to any proceeding or outstanding decree, order, judgment,
agreement or stipulation that restricts in any manner the use, transfer or licensing thereof or that may affect the validity, use or enforceability of the Transferred Assets. 
  

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 (h) Section 4.9(h) of the Disclosure Schedule lists all software or other
material owned by Seller and, to Seller’s Knowledge, all software or other material not owned by Seller, that is distributed as “free software”, “open source software” or under a similar licensing or distribution model
(including the GNU General Public License (GPL), GNU Lesser General Public License (LGPL), Mozilla Public License (MPL), BSD licenses, the Artistic License, the Netscape Public License, the Sun Community Source License (SCSL) the Sun Industry
Standards License (SISL) and the Apache License) (collectively, “Open Source Materials”) and that has been used by or incorporated into any Transferred Product, Product Software or Transferred Technology in any way and describes the
manner in which such Open Source Materials were used or incorporated (such description shall include whether (and, if so, how) the Open Source Materials were modified and/or distributed by Seller). Seller has not used Open Source Materials in any
manner that would or could (i) require the disclosure or distribution in source code form of any Transferred Product or Transferred Technology, (ii) require the licensing of any Transferred Product or Transferred Technology for the purpose
of making derivative works, (iii) impose any restriction on the consideration to be charged for the distribution of any Transferred Product or Transferred Technology, (iv) create, or purport to create, obligations for Seller (or any
successor) with respect to Intellectual Property Rights owned by or purported to be owned by Seller or grant, or purport to grant, to any third party, any rights or immunities under Intellectual Property Rights owned by or purported to be owned by
Seller, or (v) impose any other limitation, restriction, or condition on the right of Seller to use or distribute any Transferred Product, Product Software or Transferred Technology. With respect to any Open Source Materials that have been used
by or incorporated into any Transferred Product, Product Software or Transferred Technology in any way, Seller has been and is in compliance with all applicable licenses with respect thereto. 
 (i) Neither this Agreement nor the Transactions, including the assignment to Purchaser, by operation of law or otherwise, of any Contracts
to which Seller is a party, will result in (i) Purchaser granting to any third party any right to or with respect to any Technology or Intellectual Property Rights owned by Purchaser, (ii) Purchaser being bound by, or subject to, any
non-compete or other restriction on the operation or scope of its businesses, or (iii) Purchaser being obligated to pay any royalties or other amounts to any third party in excess of those payable by Purchaser upon Closing. 
 (j) Section 4.9(j) of the Disclosure Schedule lists all Contracts to which Seller is a party (i) related to the licensing
to, or acquisition of, any third party Intellectual Property Rights or Technology related to or used in the Business or incorporated into the Transferred Products, Product Software or Transferred Technology, other than “shrink-wrap” or
similar object code-only licenses for commercially available Software the license fee for which is less than $500, or (ii) related to the licensing or sale of any Transferred IP other than non-exclusive object code-only licenses granted by
Seller in the ordinary course pursuant to Seller’s standard form of license agreement attached to Section 4.9(j) of the Disclosure Schedule. Seller is not required to make or accrue any royalty or other payment to any third party in
connection with the Business or any of the Transferred Assets. 
 (k) No third party possesses any copy of any source code for
any Product Software or other Software included in the Transferred Assets. As of the Closing, Seller will have delivered to Purchaser, and Seller will not have retained any copy of any source code for any Product Software or other Software included
in the Transferred Assets. 
  

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 (l) Seller has taken all reasonable steps to protect its rights in their confidential
information and trade secrets associated with or related to the Transferred Assets. To the Knowledge of Seller, no Person is infringing or misappropriating the Transferred IP or Transferred Technology. 
 (m) Seller has and enforces a policy requiring each Employee of Seller to execute a proprietary rights and confidentiality agreement
substantially in the form set forth in Section 4.9(m) of the Disclosure Schedule. All Employees of Seller have executed such an agreement assigning all of such Employees’ rights in and to the Transferred Technology and the
Transferred IP to Seller. The Transferred Assets do not include any inventions of any of Seller’s employees made prior to their employment by Seller. 
 (n) The Transferred Products, the Product Software, and any other Technology or Software included in the Transferred Assets, did not, do not, and will not when used by Purchaser for their intended
purposes in relation to the Business or in the manner used by Seller (i) infringe or misappropriate the Intellectual Property Rights of any other Person, (ii) violate the rights of any other Person (including rights to privacy or
publicity), or (iii) constitute unfair competition or trade practices under the laws of any jurisdiction. 
 (o) Seller has
not received notice from any Person claiming that the Transferred Assets infringe, misappropriate or violate the Intellectual Property Rights or other rights of any Person or constitute unfair competition or trade practices under the laws of any
jurisdiction (nor does Seller have Knowledge of any basis therefor). 
 (p) There are no contracts, licenses or agreements
between Seller and any other Person with respect to Transferred IP or the Transferred Assets under which there is any dispute or, to the Knowledge of Seller, any threatened dispute regarding the scope of such agreement or performance under such
agreement. 
 (q) To the extent that Seller has distributed or licensed any Transferred Product to an end user pursuant to any
form of encryption key: (i) Seller has a written agreement with each such end user requiring such end user to protect the confidentiality of such key; (ii) Seller has delivered to Purchaser a true and complete list of all third parties who
have had access to any such keys; (iii) no third party has had access to any such keys, except pursuant to clause (i) above; and (iv) Seller has delivered to Purchaser any such keys and the Technology to generate such keys and has not
retained any such keys or such Technology. 
 (r) Seller has disclosed in writing to Purchaser all information relating to any
bugs, material non-conformities or other problem or issue with respect to any of the Product Software, Transferred Products or Transferred Technology that does, or may reasonably be expected to, adversely affect the value, functionality or fitness
for the intended purpose of that Product Software, Transferred Product or Transferred Technology. Without limiting the foregoing, there have been, and are, no claims asserted against Seller related to the Transferred Products (or any other product,
Technology or service of Seller). 
  

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 (s) Seller has taken reasonable steps and implemented reasonable procedures (based on
standard industry practices) to ensure that the Transferred Products and the Product Software are free from viruses and other disabling codes. 
 (t) Section 4.9(t) of the Disclosure Schedule contains a true and complete description of Seller’s current privacy policy(ies) and those privacy policy(ies) readily available and
used in the prior three years, related to “Personally Identifiable Information” or “PII” (collectively, “Seller’s Privacy Policies”) concerning any individual, including but not limited to
current, former or potential customers, employees, or agents. “Personally Identifiable Information” or “PII” means any information that alone or in combination with other information held by Seller, whether obtained
online or offline, can be used to specifically identify a person. 
 (u) Seller’s Privacy Policies and all other
representations, marketing materials, and advertisements that are related to the Business and address privacy issues and the treatment of PII, accurately and completely describe Seller’s information practices in regard to PII that it collects,
maintains, controls, stores, accesses, transfers, processes, uses or discloses (collectively, “Processing”). Seller has complied with Seller’s Privacy Policies, all applicable laws, regulations, Contracts and other obligations
related to Seller’s processing of PII. Seller has given all notices, made all disclosures, and obtained all necessary consents related to Seller’s Processing of PII required by Seller’s Privacy Policies, applicable laws, regulations
and Contracts and no such notices, disclosures or consent requests have been inaccurate, misleading or deceptive. Seller has not collected any information online from children who it knows or has reason to know are under the age of 13 without
verifiable parental consent or directed any of its websites’ content to children under the age of 13 through which such information could be obtained. 
 (v) Seller has stored and maintained PII in a secure manner, using commercially reasonable physical, administrative and technical measures to assure the integrity and security of the data and to prevent
loss, alteration, corruption, misuse and unauthorized access to PII. Seller has destroyed or otherwise rendered unretrievable or unusable any records, whether electronic or paper-based, containing PII that Seller has sought to dispose of in the
ordinary course of business. All third party access to PII has been subject to confidentiality requirements. There has been no unauthorized access to, acquisition of, or disclosure of PII. 
 (w) The transfer of PII under this Agreement complies with all applicable laws and regulations relating to such transfer and with
Seller’s Privacy Policies, Contracts and other obligations in regard to PII. 
 (x) Seller has not received any claims,
notices or complaints regarding Seller’s information practices and Processing of PII. Section 4.9(x) of the Disclosure Schedule sets forth the privacy seal program (e.g., TRUSTe, BBBOnline) in which Seller or the Sites
is a member; if any of them are a member of any such seal program, Seller and/or the Sites, as applicable, are in compliance with the requirements of such program. 
 (y) Seller has completely and accurately described in Seller’s Privacy Policies, Contracts or similar materials, Seller’s use of cookies, web beacons and other online tracking resources. Seller
does not use such resources to collect PII without obtaining the consent of all individuals to whom such PII relates. 
  

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 (z) Seller’s Processing complies with the then-current version of the Payment Card
Industry Data Security Standard. 
 4.10 Brokers’ and Finders’ Fees. Seller has not incurred, nor will it incur, directly
or indirectly, any liability for brokerage or finders’ fees or agents’ commissions or investment bankers’ fees or any similar charges in connection with this Agreement or any Transaction. 
 4.11 Transferred Contracts. The Transferred Contracts are all of the Contracts between Seller and any third party related to, or necessary for,
the operation of the Business and the Transferred Assets, and true and complete copies of all such Contracts have been delivered to Purchaser. Each Transferred Contract is in full force and effect and Seller is not subject to any default thereunder,
nor is any party obligated to Seller pursuant to any such Transferred Contract subject to any default thereunder. Seller has not breached, violated or defaulted under, nor received notice that it has breached, violated or defaulted under, any of the
terms or conditions of any Transferred Contract. Seller has obtained all necessary consents, waivers and approvals of parties to any Transferred Contract as are required thereunder in connection with the Closing, or for any such Transferred Contract
to remain in full force and effect without limitation, modification or alteration after the Closing. Following the Closing, Purchaser will be permitted to exercise all of the rights Seller had under the Transferred Contracts without the payment of
any additional amounts or consideration other than ongoing fees, royalties or payments that Seller would otherwise be required to pay pursuant to the terms of such Transferred Contracts had the transactions contemplated by this Agreement not
occurred. 
 4.12 Complete Copies of Materials. Seller has delivered true and complete copies of each existing document that has
been requested by Purchaser or its counsel. 
 4.13 Transferred Assets. The Transferred Assets comprise all of the tangible and
intangible assets, properties and rights of every type and description (other than real property) used in or necessary to the operation of the Business by Purchaser following the Closing. 
 4.14 Operational Licenses. Section 4.14 of the Disclosure Schedule lists all permits, government approvals, licenses, clearances and
Consents necessary for the conduct of the Business currently held by Seller, and Seller has provided to Purchaser true and complete copies of all such permits, government approvals, licenses, clearances and Consents. 
 4.15 Litigation. There is no action, suit, proceeding, claim, arbitration or any investigation pending or, to the Knowledge of Seller and the
Principal Stockholders, threatened before any court or administrative agency against Seller that relates directly or indirectly to the Business, any Transferred Asset or any Employee, or that questions the validity of this Agreement, the Collateral
Agreements or the Escrow Agreement or of any action taken or to be taken pursuant to or in connection with such agreements. There is no judgment, decree or order against Seller or any of its assets or properties or any of its directors or officers
in their capacity as such. 
  

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 4.16 Employee Benefits.
 (a) Section 4.16(a) of the Disclosure Schedule contains a complete and accurate list of the Employees of Seller as of the date hereof and shows with respect to each such Employee (i) the
Employee’s name, position held, all salary, wages, bonus or commissions payable and other benefits provided by Seller or which it is bound to provide (whether at present or in the future) to each such Employee, or any person connected with
any such person, and includes, if any, particulars of all profit sharing, incentive and bonus arrangements to which Seller is a party, whether legally binding or not, (ii) the date of hire, (iii) vacation eligibility for the current
calendar year, (iv) leave status (including type of leave, expected return date for non-disability related leaves and expiration dates for disability leaves), and (v) visa status. 
 (b) Section 4.16(b) of the Disclosure Schedule contains a complete and accurate list of the Seller Employee Plans. The Seller
Employee Plans have been operated and administered in accordance with their terms and the applicable requirements of ERISA, the Code and any other applicable governing law, in each case, in all material respects. All contributions and all payments
and premiums required to have been made to or under any Seller Employee Plan have been timely and properly made (or otherwise properly accrued if not yet due). No Seller Employee Plan is subject to Title IV of ERISA, or is a multiemployer plan
within the meaning of Section 3(37) of ERISA. There are no pending or, to the Knowledge of Seller, threatened, suits, audits, administrative investigations or proceedings, examinations, actions, litigation or claims (excluding claims for
benefits incurred in the ordinary course) and to the Knowledge of Seller no facts or circumstances exist that could give rise to any such suits, audits, administrative investigations or proceedings, examinations, actions, litigation or claims with
respect to any of the Seller Employee Plans. Each of the Seller Employee Plans that is intended to be “qualified” within the meaning of Section 401 of the Code is covered by an opinion letter from the IRS and no event has occurred and
no condition exists which would result in the revocation of any such opinion letter or otherwise result in the loss of its qualified status. 
 4.17 Bulk Transfer Laws. There are no current or past creditors of Seller to whom any law, rule or regulation requires the delivery of notice or from whom any form of consent is required in conjunction with undertaking the
Transactions, and the “bulk transfer laws” of any state in which the Transferred Assets are located do not apply to the transfer of those Transferred Assets under this Agreement. 
 4.18 Compliance with Applicable Laws.
 (a) Seller, the Transferred Assets and the Business are in compliance with all applicable Legal Requirements, including laws, statutes, codes, regulations, standards, guidelines, guidance documents, and
directives or consents (including consent decrees and administrative orders) at any time in effect, including all applicable regulations promulgated by the Federal Trade Commission and U.S. Bureau of Industry and Standards. No investigation or
review by any Governmental Entity or self-regulatory entity with respect to Seller is pending or, to the Knowledge of Seller, threatened. 
 (b) Seller has obtained and has in effect all permits, licenses and other authorizations which are required with respect to the operation of the Business and the ownership of the Transferred Assets.
Seller is in full compliance with all terms and conditions of such permits, licenses and authorizations, no proceeding is pending or, to the Knowledge of Seller, threatened, to revoke or limit any thereof, and to the Knowledge of Seller there is no
basis for any such proceeding and the consummation of the Transactions will not result in the non-renewal, revocation or termination of any such license or permit. 
  

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 (c) Seller is conducting and has conducted its export transactions in accordance with all
applicable export and re-export control laws of the United States and all applicable import/export control laws in other countries in which Seller conducts the Business. Without limiting the foregoing: 
 (i) Seller has obtained, and is in compliance with, all export licenses, license exceptions and other consents, notices, permits, waivers,
approvals, orders, authorizations, registrations, declarations, classifications and filings with any Governmental Entity required for (A) the export and re-export of products, services, software and technologies and (B) releases of
technologies and software to foreign nationals located in the United States and abroad (“Export Approvals”), and has performed classification reviews of all of the Transferred Products. 
 (ii) There are no pending or, to the Knowledge of Seller, threatened claims or legal actions against Seller alleging a violation of such
Export Approvals or the export control laws of any Governmental Entity. 
 (iii) No Export Approvals for the transfer of export
licenses to Purchaser are required by the consummation of the Transactions. 
 4.19 Business Practices. Seller and, to the Knowledge
of Seller, the Employees are in compliance with the U.S. Foreign Corrupt Practices Act, as amended, including the books and records provisions thereof. Neither Seller nor any Person acting on its behalf has ever paid or delivered, or promised to pay
or deliver, directly or indirectly through any other Person, any monies or anything else of value to any government official or employee of any political party, for the purpose of illegally or improperly inducing or rewarding any action by the
official favorable to Seller. 
 4.20 Tax Matters.
 (a) Seller has prepared and timely filed all required Tax Returns for all periods ending on or prior to the Closing Date relating to any and all Taxes concerning or attributable to Seller, the Transferred
Assets or the Business, and such Tax Returns are true and correct in all material respects and have been completed in accordance with applicable law. 
 (b) Seller has timely paid all Taxes required to be paid that are attributable to the Transferred Assets or the Business and timely paid or withheld and paid over to the appropriate governmental
authorities with respect to its Employees and other third parties all income taxes, social security and national insurance contributions and other Taxes required to be withheld. 
 (c) Purchaser shall not have any liability or obligation, and shall not incur any loss, expense or cost, and none of the Transferred Assets
are or shall be subject to any Liens, by reason of any Taxes arising out of (i) the Business as conducted by Seller prior to the consummation of the sale hereunder of the Transferred Assets or (ii) any other operations or activities of
Seller whether conducted prior to the date hereof or hereafter. 
  

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 (d) Seller has not executed any waiver of any statute of limitations on or extending the
period for assessment or collection of any Tax attributable to the Transferred Assets or the Business. 
 (e) Seller has elected
to be treated for tax purposes as an ‘S’ corporation since inception and such election remains in effect. 
 4.21 Certain
Relationships with Seller. No officer, director, employee or stockholder of Seller (nor any immediate family member or affiliate of such persons) has or has had, directly or indirectly, any financial interest in any Person with any
contractual or business relationship with Seller, including any party to any of the Transferred Contracts. 
 4.22 Product and Service
Warranties. Each product and service manufactured, sold, leased, licensed or delivered by Seller has been done so in material conformity with all applicable contractual commitments and all express and implied warranties, and Seller has no
liability (and there is no reasonable basis for any present or future action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand against Seller giving rise to any liability) for replacement or repair thereof or other
damages in connection therewith. No product or service manufactured, sold, leased, distributed, licensed or delivered by Seller is subject to any guaranty, warranty, or other indemnity beyond Seller’s applicable standard terms and conditions of
sale, license or lease or beyond that implied or imposed by applicable law. Section 4.22 of the Disclosure Schedule includes copies of the standard terms and conditions of sale, service, license and lease for Seller. 
 4.23 Accounts Receivable. All receivables reflected on the Estimated Closing Date Balance Sheet arose from goods shipped or products sold or
services rendered by Seller in the ordinary course of business, are current and collectible in accordance with their terms at their recorded amounts, subject only to the reserve for bad debts set forth on the face of the Estimated Closing Date
Balance Sheet, and no such receivable is subject to any counterclaim or setoff. 
 4.24 No Liquidation, Insolvency or
Winding-Up.
 (a) No order has been made, petition presented or resolution passed for the winding-up or liquidation of Seller
and there is not outstanding any: 
 (i) Order for the winding-up of Seller; 
 (ii) Appointment of a receiver over the whole or part of the assets of Seller; 
 (iii) Petition or order for administration of Seller under any federal or state bankruptcy, insolvency or similar law; 
 (iv) Voluntary arrangement between Seller and any of its creditors under any federal or state bankruptcy, insolvency or similar law; or

 (v) Distress or execution or other process levied in respect of Seller that remains undischarged. 
  

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 (b) To Seller’s Knowledge, there are no circumstances that would entitle any Person to
present a petition for the winding-up or administration of Seller or to appoint a receiver over the whole or any part of the undertaking or assets of Seller. 
 (c) Seller is not deemed unable to pay its debts within the meaning of applicable law. Seller is not now insolvent and it will not be rendered insolvent by the Transactions contemplated in this Agreement.
As used in this section, “insolvent” means that the sum of debts and other probable liabilities of a party exceeds the present fair saleable value of such party’s assets. 
 (d) The operations of Seller have not been terminated. 
 4.25 Absence of Changes. Since September 29, 2009, Seller has not taken any of the following actions with regard to the Business or the Transferred Assets: 
 (a) sold, leased or disposed of any assets; 
 (b) declared or paid any dividend or made any distribution to the Stockholders; 
 (c) acquired any material asset; 
 (d) licensed any of the Transferred IP or Transferred Products to any third party
other than the license of products in the ordinary course of business pursuant to Seller’s standard form of end user license as set forth in Section 4.22 of the Disclosure Schedule; 
 (e) incurred or assumed any material liabilities or obligations; 
 (f) mortgaged or pledged or subjected any Transferred Asset to a Lien; 
 (g) changed any accounting methods, principles or practices; 
 (h) terminated (except pursuant to its terms), or materially modified or amended any Contract, including any Transferred Contract; 
 (i) canceled or compromised any debt or claim or waived or released any rights; 
 (j) failed to pay or perform the Liabilities and Taxes of Seller or attributable to the Business or the Transferred Assets when due;

 (k) entered into any transaction not in the ordinary course of business; 
 (l) increase the base compensation of any employees; or increase or change any other compensation or benefits for employees other than
transaction bonuses that are entirely Excluded Employee Liabilities funded by Seller from the proceeds to Seller after the Closing Date; or 
 (m) agreed to take any of the foregoing actions. 
  

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 4.26 Disclosure. No statement made by Seller or the Principal Stockholders in this Agreement or
any of the agreements contemplated hereby, or the exhibits and schedules attached hereto or thereto or in any certificate or schedule furnished or to be furnished by or on behalf of Seller or the Principal Stockholders to Purchaser in connection
with the Transactions, when read together in their entirety, contains upon the date hereof any untrue statement of a material fact or omits to state a material fact necessary, in light of the circumstances under which it was or will be made, in
order to make the statements contained herein or therein not misleading. 
 ARTICLE 5 
 REPRESENTATIONS AND WARRANTIES OF PURCHASER 
 Purchaser represents and warrants to Seller as follows: 
 5.1 Organization. Purchaser
is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. 
 5.2 Authorization of
Transaction. Purchaser has all requisite power and authority to execute and deliver this Agreement, the Escrow Agreement and the Collateral Agreements to which it is a party and to perform its obligations hereunder and thereunder. The
execution and delivery by Purchaser of this Agreement, the Escrow Agreement and the Collateral Agreements to which it is a party and the consummation by Purchaser of the Transactions have been duly and validly authorized by all necessary corporate
action on the part of Purchaser. This Agreement, the Escrow Agreement and the Collateral Agreements to which it is a party have been duly and validly executed and delivered by Purchaser and (assuming due authorization, execution and delivery by
Seller and the Principal Stockholders) constitute valid and binding obligations of Purchaser, enforceable in accordance with their terms, except as such enforceability may be subject to the laws of general application relating to bankruptcy,
insolvency and the relief of debtors and rules of law governing specific performance, injunctive relief or other equitable remedies. 
 5.3
Sufficient Cash Funds. Purchaser has available sufficient funds to enable it to pay the Purchase Price. 
 5.4
Noncontravention. The execution and delivery of this Agreement and any related agreements by Purchaser does not, and the performance of this Agreement and any related agreements by Purchaser will not, (a) conflict with or violate
the Purchaser’s Articles of Incorporation and bylaws, or (b) conflict with or violate any law, rule, regulation, order, judgment or decree applicable to Purchaser or by which any of its properties is bound or affected. 
 5.5 Consents. No Consent of any Governmental Entity or any third party is required by Purchaser in connection with the execution and
delivery of this Agreement or any related agreements or the consummation of the Transactions. 
  

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 ARTICLE 6 
 CONFIDENTIAL INFORMATION 
 6.1 Confidentiality of Agreement and Public
Announcements.
 (a) Seller and the Principal Stockholders acknowledge that included in the Transferred Assets are certain
Technology, Intellectual Proprietary Rights and other confidential and/or proprietary information that Seller has used in the Business and that have commercial value in the Business and accordingly have been treated by Seller as confidential. All
such information, and all information regarding this Agreement and the Transactions (collectively, the “Confidential Information”), shall be kept confidential by Seller and the Principal Stockholders. Seller and the Principal
Stockholders agree that on and after the Closing Date they will keep in strictest confidence and trust all Confidential Information and none of them nor any of their employees or affiliates will, without Purchaser’s prior written consent, use
or disclose any Confidential Information, except to the extent (i) necessary to comply with any Legal Requirements in connection with Seller’s ownership or operation of the Transferred Assets on or prior to the Closing Date, such as the
filing of income tax returns or reports or (ii) any of them become legally compelled (e.g., by oral questions, interrogatories, request for information or documents, subpoena, civil investigative demand or similar process) to disclose any of
the Confidential Information, in which case, Seller will provide Purchaser with prompt written notice so that Purchaser may seek a protective order or other appropriate remedy and/or waive compliance with the provisions of this
Section 6.1(a). If such protective order or other remedy is not obtained or Purchaser waives compliance with the provisions of this Section 6.1(a), Seller will furnish only that portion of the Confidential Information that is
legally required. 
 (b) Except as provided in Section 6.1(c), each Party hereto agrees that this Agreement and
every provision hereof shall be strictly confidential and shall not be disclosed to any other person other than: (i) with the written consent of Purchaser; (ii) if it is required by Law; (iii) if it is made pursuant to existing
contractual obligations; or (iv) if it is required by any rule or regulation of any securities exchange or regulatory or governmental body whether or not this has the force of law. 
 (c) Notwithstanding the foregoing, the confidentiality obligations set forth in Section 6.1(b) shall not prevent or restrict
Purchaser in any way from (i) announcing to or otherwise notifying third parties at any time that it has purchased the Purchased Assets (including notifying them of the amount of the Purchase Price) and introducing itself as successor or
(ii) disclosing this Agreement and the exhibits and schedules hereto and the terms hereof and thereof for purposes of complying with applicable securities laws or the rules of the Nasdaq National Market. Purchaser will use its commercially
reasonable efforts to provide to Seller a draft of any press release or public statement announcing the Agreement or the transactions contemplated hereby a reasonable period of time prior to the public distribution of such press release or public
statement. 
 6.2 Remedies. If Seller or the Principal Stockholders breach any of their obligations with respect to confidentiality
or use of Purchaser’s confidential information hereunder, Purchaser shall be entitled to seek equitable relief to protect its interest therein, including injunctive relief, as well as money damages. 
  

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 ARTICLE 7 
 COVENANTS 
 7.1 Additional Documents and Further Assurances. At any time
or from time to time after the Closing, at Purchaser’s request and without any further consideration, Seller and the Principal Stockholders shall: (a) execute and deliver to Purchaser such other instruments of sale, transfer, conveyance,
assignment and confirmation; (b) provide such materials and information; and (c) take such other actions, as Purchaser may reasonably deem necessary or desirable in order more effectively to transfer, convey and assign to Purchaser, to
confirm Purchaser’s title to, all of the Transferred Assets, and, to the full extent permitted by law, to put Purchaser in actual possession and operating control of the Transferred Assets and to assist Purchaser in exercising all rights with
respect thereto, and otherwise to cause Seller and the Principal Stockholders to fulfill their obligations under this Agreement, the Escrow Agreement and the Collateral Agreements. 
 7.2 Agreement Not to Compete.
 (a) Beginning on the
Closing Date and ending on the fifth (5th) anniversary of the Closing Date (the “Non-Competition Period”), Seller shall not directly or indirectly (other than on behalf of Purchaser), without the prior written consent of Purchaser, engage in a Competitive
Business Activity (as defined below) anywhere in the Restricted Territory (as defined below). For all purposes hereof, the term “Competitive Business Activity” shall mean: (i) engaging in, managing or directing persons engaged
in any business relating to or substantially similar to the Business; (ii) acquiring or having an ownership interest in any entity which derives revenues from any business related to or substantially similar to the Business (except for
ownership of one percent (1%) or less of any entity whose securities are publicly traded on a national securities exchange); or (iii) participating in the financing, operation, management or control of any firm, partnership, corporation,
entity or business described in clause (ii) of this sentence. For all purposes hereof, the term “Restricted Territory” shall mean each and every country, province, state, city or other political subdivision of the world in
which Purchaser or Seller is currently engaged in business or otherwise distributes, licenses or sells products. 
 (b) Beginning on the Closing Date and ending on the fifth (5th) anniversary of the Closing Date, Seller shall not directly or indirectly solicit, encourage or take any other action which is intended to induce or encourage, or has the effect of inducing or
encouraging, any employee of Purchaser or any subsidiary of Purchaser to terminate his or her employment with Purchaser or its subsidiaries. 
 (c) The covenants contained in Section 7.2(a) shall be construed as a series of separate covenants, one for each country, province, state, city or other political subdivision of the Restricted
Territory. Except for geographic coverage, each such separate covenant shall be deemed identical in terms to the covenant contained in Section 7.2(a). If, in any judicial proceeding, a court refuses to enforce any of such separate
covenants (or any part thereof), then such unenforceable covenant (or such part) shall be eliminated from this Agreement to the extent necessary to permit the remaining separate covenants (or portions thereof) to be enforced. In the event that the
provisions of this Section 7.2(a) are deemed to exceed the time, geographic or scope limitations permitted by applicable law, then such provisions shall be reformed to the maximum time, geographic or scope limitations, as the case may
be, permitted by applicable laws. 
  

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 (d) Seller acknowledges that (i) the goodwill associated with the existing business,
customers and assets of the Business prior to the Closing are an integral component of the value of the Business to Purchaser and is reflected in the Purchase Price to be received by Seller, and (ii) Seller’s agreement as set forth in
Sections 7.2(a) and 7.2(b) is necessary to preserve the value of the Business for Purchaser following the Closing. Seller also acknowledges that the limitations of time, geography and scope of activity agreed to in
Section 7.2(a) are reasonable because, among other things, (A) Purchaser and Seller are engaged in a highly competitive industry, (B) Seller has had unique access to the trade secrets and know-how of the Business including,
without limitation, the plans and strategy (and, in particular, the competitive strategy) of the Business, and (C) Seller is receiving significant consideration in connection with the consummation of the Transactions. 
 (e) The Parties agree that in the event of a breach or threatened breach by Seller of any of the covenants set forth in Sections
7.2(a) and 7.2(b), monetary damages alone would be inadequate to fully protect Purchaser from, and compensate Purchaser for, the harm caused by such breach or threatened breach. Accordingly, Seller agrees that if it breaches or threatens
breach of any provision of Sections 7.2(a) and 7.2(b), Purchaser shall be entitled to, in addition to any other right or remedy otherwise available, the right to injunctive relief restraining such breach or threatened breach and to
specific performance of any such provision of Sections 7.2(a) and 7.2(b), and Purchaser shall not be required to post a bond in connection with, or as a condition to, obtaining such relief before a court of competent jurisdiction.

 7.3 Change of Corporate Name. Within ten (10) business days of Closing, Seller shall amend its articles of incorporation to
change its name to XRT Holdings, Inc. 
 7.4 Final Balance Sheet. As promptly as practical following the Closing, Seller shall
deliver to Purchaser a final consolidated unaudited balance sheet as of the Closing Date, prepared in accordance with GAAP (with the exception of revenue recognition for credit card sales, which have been recorded on a cash basis and recognized upon
payment) applied on a consistent basis with the Financials (the “Final Closing Date Balance Sheet”), together with all documents, records and work papers and access to all personnel as Purchaser may reasonably request. 

ARTICLE 8 
 SURVIVAL OF REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION 
 8.1 Survival of Representations and
Warranties. The representations and warranties of Seller and the Principal Stockholders contained in this Agreement, or in any certificate or other instrument delivered pursuant to this Agreement, shall survive the Closing and continue in
full force and effect until and terminate upon the end of the day on the date fourteen (14) months following the Closing Date; provided, however, that the following representations and warranties (the “Special
Representations”) shall survive for longer periods as follows: (a) the representations and warranties contained in Section 4.8 (Title of Properties; Absence of Liens and

  

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Encumbrances; Condition), Section 4.9 (Intellectual Property), Section 4.16 (Employee Benefits) and Section 4.20 (Tax Matters), shall survive until sixty
(60) days after the expiration of the applicable statutes of limitations; (b) the representations and warranties contained in this Agreement (including but not limited to Section 4.2 (Authorization of Transactions)), or in any
certificate or other instrument delivered pursuant to this Agreement, with respect to due authorization to enter into this Agreement and complete the Transactions shall survive indefinitely and not terminate; and (c) in the event of fraud or
the willful breach of a representation or warranty contained in this Agreement, or in any certificate or other instrument delivered pursuant to this Agreement, as applicable, such representation or warranty shall survive indefinitely and not
terminate. The representations and warranties of Purchaser contained in this Agreement, or in any certificate or other instrument delivered pursuant to this Agreement, shall survive the Closing and continue in full force and effect until and
terminate upon the end of the day on the date fourteen (14) months following the Closing Date. 
 8.2 Indemnification. Subject
to the terms, conditions and limitations in this Article 8, Seller and the Principal Stockholders (the “Indemnifying Parties”) will jointly and severally indemnify and hold Purchaser and each of Purchaser’s subsidiaries
and other affiliates, and their respective officers, directors, employees, agents and representatives (the “Indemnified Parties”), harmless against all claims, losses, liabilities, diminution in value, damages, deficiencies,
interest, penalties, taxes, costs and expenses, including reasonable attorneys’ fees and expenses of investigation and defense (hereinafter individually a “Loss” and collectively “Losses”) in good faith paid,
incurred, accrued or sustained by the Indemnified Parties, directly or indirectly, as a result of (a) any breach or inaccuracy of a representation or warranty of Seller or the Principal Stockholders contained in this Agreement (as modified by
the Disclosure Schedule) or in any certificate, instrument, or other document delivered by Seller or the Principal Stockholders pursuant to this Agreement (without, for purposes of determining the amount of any such Loss, giving effect to any
limitation as to “materiality,” “material adverse effect,” or similar qualifications set forth therein); (b) any failure by Seller or the Principal Stockholders to perform or comply with any covenant applicable to them
contained in this Agreement or any agreement delivered by Seller or the Principal Stockholders pursuant to this Agreement; (c) any Excluded Liabilities; (d) any failure of Seller to comply with any applicable bulk transfer or similar laws
with respect to the Transactions; and (e) any amount by which the Actual Net Working Capital Adjustment is greater than the Estimated Net Working Capital Adjustment (if and to extent the Holdback Amount is not reduced by such amount pursuant to
Section 3.4(b)), or any inaccuracy in the Final Closing Date Balance Sheet or the calculation of the Actual Net Working Capital Adjustment based upon Purchaser’s review of the Final Closing Date Balance Sheet at any time following
receipt. 
 8.3 Source of Indemnification. Except as otherwise set forth in this Section 8.3 and
Section 8.7(b), Losses to be paid pursuant to the provisions of this Article 8 will be satisfied solely from the Escrow Fund. If and to the extent the Indemnifying Parties are liable for Losses in excess of the Escrow Fund, the
Indemnified Parties may proceed against the Indemnifying Parties directly. Notwithstanding the foregoing, in the case of fraud or intentional or willful breach of a representation, warranty or covenant of Seller or the Principal Stockholders
contained in this Agreement or in any certificate, instrument, or other document delivered by Seller or the Principal Stockholders pursuant to this Agreement, Purchaser may seek any remedy to which it is entitled under law or equity. 
  

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 8.4 Indemnification Procedure.
 (a) If an Indemnified Party seeks indemnification under this ARTICLE 8, Purchaser shall deliver an Officer’s Certificate to
Seller on behalf of the Indemnifying Parties (and the Escrow Agent, if the Escrow Period has not expired). Seller may object to such claim by delivering written notice to Purchaser (and the Escrow Agent, if the Escrow Period has not expired)
specifying the basis for such objection within thirty (30) days following receipt by Seller of notice from Purchaser regarding such claim. If no such objection is made within the 30-day period, the Indemnified Party may recover Losses without
further consent or approval required of any of the Indemnifying Parties. For the purposes hereof, “Officer’s Certificate” shall mean a certificate signed by any officer of Purchaser (i) stating that an Indemnified Party
has paid, sustained, incurred, or properly accrued, or in good faith reasonably anticipates that it will pay, sustain, incur, or accrue Losses, and (ii) specifying in reasonable detail the individual items of Losses included in the amount so
stated, the date each such item was paid, sustained, incurred or properly accrued, or the basis for such anticipated liability. 
 (b) Seller and the Principal Stockholders shall not be responsible for any Losses unless and until Purchaser has submitted one or more Officer’s Certificates in accordance with Section 8.4(a) for Losses that exceed
$50,000.00 in the aggregate (the “Loss Threshold Amount”). After the claims exceed the Loss Threshold Amount, then all Losses, including the Losses below the Loss Threshold Amount and any additional Losses incurred by Purchaser
shall be satisfied in accordance with the procedures set forth herein. Notwithstanding the foregoing, the Loss Threshold Amount shall not apply (i) in the event of fraud or the intentional or willful breach of a representation, warranty or
covenant, (ii) with respect to any claim arising under Section 8.2(e), or (iii) with respect to any Loss arising from or related to any claim or inquiry of the Business Software Alliance. 
 8.5 Resolution of Conflicts; Arbitration 
 (a) If Seller shall object in writing to any claim or claims made in any Officer’s Certificate to recover Losses within thirty (30) days after delivery of such Officer’s Certificate, Seller
and Purchaser shall attempt in good faith to agree upon the rights of the respective parties with respect to each of such claims. If Seller and Purchaser should so agree, a memorandum setting forth such agreement shall be prepared and signed by both
Parties, at which time the claim shall be promptly paid, expensed or settled, as the case may be. 
 (b) If no such agreement
can be reached after good faith negotiation and prior to sixty (60) days after delivery of an Officer’s Certificate, Seller or Purchaser may demand arbitration of the matter unless the amount of the Loss is at issue in pending litigation
with a third party, in which event arbitration shall not be commenced until such amount is ascertained or both Parties agree to arbitration, and in either such event the matter shall be settled by arbitration conducted pursuant to
Section 10.4. 
 (c) Arbitration under Section 10.4 shall apply to any dispute among the Indemnifying
Parties, on the one hand, and the Indemnified Parties, on the other hand, under this ARTICLE 8 hereof, whether relating to claims upon the Escrow Fund or to the other indemnification obligations set forth in this ARTICLE 8. 

 

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 (d) The decision of the arbitrator or a majority of the three arbitrators, as the case may
be, as to the validity and amount of any claim in such Officer’s Certificate shall be final, binding, and conclusive upon the Parties to this Agreement, including any Indemnifying Party and any Indemnified Party. Such decision shall be written
and shall be supported by written findings of fact and conclusions which shall set forth the award, judgment, decree or order awarded by the arbitrator(s), and the Escrow Agent shall be entitled to rely on, and make distributions from the Escrow
Fund in accordance with, the terms of such award, judgment, decree or order, as applicable. Within 30 days of a decision of the arbitrator(s) requiring payment by one Party to another, such Party shall make the payment to such other Party, including
any distributions out of the Escrow Fund, as applicable. 
 8.6 Third-Party Claims. In the event Purchaser becomes aware of a
third-party claim that Purchaser reasonably believes may result in a demand for indemnification pursuant to this ARTICLE 8, Purchaser shall notify Seller of such claim, and Seller shall be entitled, at its expense, to participate in, but not
to determine or conduct, the defense of such claim. Purchaser shall have the right, in its sole discretion, to conduct the defense of and settle any such claim; provided, however, that except with the consent of Seller, which consent
may not be unreasonably withheld, no settlement of any such claim with third-party claimants shall be determinative of the amount of Losses relating to such matter. In the event that Seller has consented to any such settlement, no Indemnifying Party
shall have power or authority to object under any provision of this ARTICLE 8 to the amount of any claim by the Indemnified Parties against the Escrow Fund or the Indemnifying Parties directly, as the case may be, with respect to such
settlement. 
 8.7 Limitations on Indemnity.
 (a) Cap. Subject to Section 8.7(b), the liability of Seller and the Principal Stockholders for indemnification to the Indemnified Parties will be limited to their direct and indirect
interests in the Escrow Fund. 
 (b) Exceptions. Notwithstanding anything herein to the contrary, the limitations set
forth in Section 8.7(a) will not apply to Losses which result from or are related to (i) fraud, (ii) willful breach of a representation, warranty or covenant contained in this Agreement, or in any certificate or other
instrument delivered pursuant to this Agreement, (iii) any breach of Section 4.2 (Authorization of Transactions), Section 4.5 (Capitalization), Section 4.6 (Financial Statements), Section 4.8
(Title of Properties; Absence of Liens and Encumbrances; Condition); Section 4.9 (Intellectual Property), and Section 4.20 (Tax Matters), or (iv) any Excluded Liabilities, the indemnification of Losses with respect to
which shall not be limited in any manner under this Agreement. Purchaser will use commercially reasonable efforts to mitigate any Losses for which it reasonably believes indemnification will be available under this Agreement; provided,
however, that the foregoing shall not be construed to require Purchaser to discontinue the licensing and distribution of any Transferred Products unless and until required to do so by agreement of the Parties or the order of a court of competent
jurisdiction. 
  

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 8.8 Stockholder Agent; Power of Attorney. 
 (a) Each of the Parties hereto agrees that, effective upon the execution of this Agreement and without further act of any Principal
Stockholder, Seller shall be appointed as agent and attorney-in-fact for each Principal Stockholder, for and on behalf of all of them, to give and receive notices and communications, to authorize payments to any Indemnified Parties from the Escrow
Fund in satisfaction of claims by any Indemnified Parties, to object to such payments, to agree to, negotiate, enter into settlements and compromises of, and demand arbitration and comply with orders of courts with respect to such claims, to agree
to modifications, amendments and waivers to this Agreement on behalf of the Principal Stockholders and to take all actions necessary or appropriate in the judgment of any duly authorized officer of Seller for the accomplishment of the foregoing.
Such agency may be changed by the Principal Stockholders from time to time upon prior written notice to Purchaser, subject to the approval of holders of a two-thirds interest in the Purchase Price. Notices or communications to or from the Seller
shall constitute notice to or from each of the Principal Stockholders. 
 (b) A decision, act, consent or instruction of Seller
(including an amendment, extension or waiver of this agreement) shall constitute a decision of all the Principal Stockholders, and shall be final, binding and conclusive upon each such Principal Stockholder, and Purchaser may rely upon any such
decision, act, consent or instruction of Seller as being the decision, act, consent or instruction of each such Principal Stockholder. Purchaser is hereby relieved from any liability to any person for any acts done by it in accordance with such
decision, act, consent or instruction of Seller on behalf of itself or the Principal Stockholders. 
 8.9 Exclusive Remedy. From and
after the Closing Date, the remedies under this ARTICLE 8 shall be the exclusive remedies of the Parties under this Agreement, other than in the event of fraud or willful breach. Any liability for indemnification under this
 ARTICLE
8 will be determined without duplication of recovery by reason of the state of facts giving rise to such liability constituting a breach of more than one representation, warranty or covenant. 
 ARTICLE 9 
 AMENDMENT AND WAIVER 
 9.1 Amendment. This Agreement may not be amended, modified, altered or supplemented
other than by means of a written instrument duly executed and delivered on behalf of Seller and the Principal Stockholders, on the one hand, and Purchaser, on the other hand. 
 9.2 Extension; Waiver. At any time prior to the Closing, Purchaser, with respect to Seller and the Principal Stockholders, and Seller, with respect to Purchaser, may, to the extent legally
allowed, extend the time for the performance of any of the obligations of the other applicable Party(ies) hereto, or waive compliance with any of the agreements or conditions for the benefit of such Party(ies) contained herein. Any agreement on the
part of a Party hereto to any such extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf of such Party. 
  

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 ARTICLE 10 
 GENERAL 
 10.1 Notices. Any notice or other
communication required or permitted to be delivered to any Party under this Agreement must be in writing and shall be deemed properly delivered, given and received when delivered (by hand, by registered mail, by courier or express delivery service
or by facsimile) to the address or facsimile telephone number set forth beneath the name of such Party below (or to such other address or facsimile telephone number as such Party may have specified in a written notice given to the other
Parties): 
  

			
	if to Purchaser:	  	SDC Software, Inc.
		  	1900 Seaport Boulevard, 3rd Floor
		  	Redwood City, CA 94063
		  	Attn: Chief Financial Officer
		  	Attn: General Counsel
		  	Facsimile: (650) 482-3763
		
	with a copy to:	  	Hayden Bergman Rooney, Professional Corporation
		  	150 Post Street, Suite 650
		  	San Francisco, CA 94108
		  	Attn: Peter Bergman
		  	Telephone: (415) 692-3310
		  	Facsimile: (415) 399-9320
		
	if to Seller or the	  	
	Principal Stockholders:	  	Xeriton Corporation
		  	336 228th Ave., NE, Suite 301
		  	Sammamish, WA 98074
		  	Attn: President
		  	Telephone: (425) 369-2279
		  	Facsimile: (425) 369-2510
		
	with a copy to:	  	K&L Gates LLP
		  	925 Fourth Avenue
		  	Suite 2900
		  	Seattle, WA 98104
		  	Attn: Chris Visser
		  	Telephone: (206) 370-8343
		  	Facsimile: (206) 370-6199

 10.2 Governing Law. This Agreement shall be governed in all respects by the laws of the
United States of America and the State of Delaware as such laws apply to agreements entered into and to be performed entirely within Delaware by Delaware residents. 
  

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 10.3 Forum and Venue. Each of the Parties hereto irrevocably consents to the exclusive
jurisdiction and venue of any court within San Mateo County, State of California, in connection with any matter based upon or arising out of this Agreement or the matters contemplated herein, agrees that process may be served upon them in any manner
authorized by the laws of the State of California for such persons and waives and covenants not to assert or plead any objection which they might otherwise have to such jurisdiction, venue and such process. Each Party agrees not to commence any
legal proceedings related hereto except in such courts. 
 10.4 Resolution of Conflicts; Arbitration. Any claim or dispute arising
out of or related to this Agreement, or the interpretation, making, performance, breach or termination thereof, shall (except as specifically set forth in this Agreement) be finally settled by binding arbitration in the County of San Mateo,
California in accordance with the then current Commercial Arbitration Rules of the American Arbitration Association and judgment upon the award rendered may be entered in any court having jurisdiction thereof. The arbitrator(s) shall have the
authority to grant any equitable and legal remedies that would be available in any judicial proceeding instituted to resolve a dispute. 
 (a) Selection of Arbitrators. Such arbitration shall be conducted by a single arbitrator chosen by mutual agreement of Purchaser and Seller. Alternatively, at the request of either Party before the
commencement of arbitration, the arbitration shall be conducted by three independent arbitrators, none of whom shall have any competitive interests with Purchaser or Seller. Purchaser and Seller shall each select one arbitrator. The two arbitrators
so selected shall select a third arbitrator. 
 (b) Discovery. In any arbitration under this Section 10.4,
each Party shall be limited to calling a total of three witnesses both for purposes of deposition and the arbitration hearing. Subject to the foregoing limitation on the number of witnesses, the arbitrator or arbitrators, as the case may be, shall
set a limited time period and establish procedures designed to reduce the cost and time for discovery while allowing the parties an opportunity, adequate in the sole judgment of the arbitrator or majority of the three arbitrators, as the case may
be, to discover relevant information from the opposing parties about the subject matter of the dispute. The arbitrator, or a majority of the three arbitrators, as the case may be, shall rule upon motions to compel or limit discovery and shall have
the authority to impose sanctions for discovery abuses, including attorneys’ fees and costs, to the same extent as a competent court of law or equity, should the arbitrators or a majority of the three arbitrators, as the case may be, determine
that discovery was sought without substantial justification or that discovery was refused or objected to without substantial justification. 
 (c) Decision. The decision of the arbitrator or a majority of the three arbitrators, as the case may be, as to the validity and amount of any claim in such Officer’s Certificate shall be
final, binding, and conclusive upon the parties to this Agreement. Such decision shall be written and shall be supported by written findings of fact and conclusions which shall set forth the award, judgment, decree or order awarded by the
arbitrator(s). Within 30 days of a decision of the arbitrator(s) requiring payment by one party to another, such party shall make the payment to such other party, including any distributions out of the Escrow Fund, as applicable. 
 (d) Other Relief. The parties to the arbitration may apply to a court of competent jurisdiction for a temporary restraining order,
preliminary injunction or other interim or conservatory relief, as necessary, without breach of this arbitration provision and without abridgement of the powers of the arbitrator(s). 
  

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 (e) Costs and Expenses. The Parties agree that each Party shall pay its own costs and
expenses (including counsel fees) of any such arbitration, and each Party waives its right to seek an order compelling the other Party to pay its portion of its costs and expenses (including counsel fees) for any arbitration. 
 10.5 Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties named herein and their respective successors and
permitted assigns. Purchaser may assign all of its assets, licenses and other rights acquired hereunder in their entirety or in part after the Closing. This Agreement may not be assigned by Seller or the Principal Stockholders. 
 10.6 No Third-Party Beneficiaries. This Agreement shall not confer any rights or remedies upon any Person other than the Parties hereto, and
their respective successors and permitted assigns. 
 10.7 WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES ALL RIGHT TO TRIAL BY JURY AND ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE ACTIONS OF ANY PARTY HERETO IN NEGOTIATION, ADMINISTRATION, PERFORMANCE
OR ENFORCEMENT HEREOF. 
 10.8 Severability. If, for any reason, a court of competent jurisdiction finds any provision of this
Agreement, or portion thereof, to be invalid or unenforceable, such provision of this Agreement will be enforced to the maximum extent permissible so as to effect the intent of the Parties, and the remainder of this Agreement will continue in full
force and effect. The Parties agree to negotiate in good faith an enforceable substitute provision for any unenforceable provision that most nearly achieves the intent and economic effect of the unenforceable provision. Notwithstanding the
foregoing, if a court of competent jurisdiction determines that any restriction on any license granted herein is invalid or unenforceable, then the license grants to which such restriction relates shall terminate automatically. 
 10.9 Entire Agreement. This Agreement (including the Schedules and Exhibits hereto) sets forth the entire understanding of the Parties
hereto relating to the subject matter hereof and supersedes all prior agreements and understandings between the Parties hereto relating to the subject matter hereof, and is not intended to confer upon any other Person any rights or remedies
hereunder. 
 10.10 Counterparts. This Agreement may be executed in counterparts and may be delivered by facsimile transmission or
electronically with a scanned copy, which, when taken together, shall constitute one agreement. 
 [SIGNATURE PAGES FOLLOW]

  

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 IN WITNESS WHEREOF, the individuals and entities listed below, in their own capacity or by
their duly authorized representatives, have executed this Agreement as of the date first written above. 
  

			
	SDC SOFTWARE, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	XERITON CORPORATION
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	PRINCIPAL STOCKHOLDERS:
	
	  

	David W. Plummer
	
	  

	Nicole Plummer

 [SIGNATURE PAGE TO ASSET PURCHASE AGREEMENT]Form of Warrant issuable to investors

 Exhibit 4.1 
 EXHIBIT A 
 COMMON STOCK PURCHASE WARRANT

 AUTHENTIDATE HOLDING CORP. 
  

			
	Warrant Shares:                 	 	Initial Exercise Date:                      , 2009

 THIS COMMON STOCK PURCHASE WARRANT (the
“Warrant”) certifies that, for value received,                         (the “Holder”) is
entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after December     , 2009 (the “Initial Exercise Date”) and on or prior to the close
of business on the 90 day anniversary of the Initial Exercise Date (the “Termination Date”) but not thereafter, to subscribe for and purchase from Authentidate Holding Corp., a Delaware corporation (the “Company”),
up to              shares (the “Warrant Shares”) of Common Stock. 
 Section 1. Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase Agreement (the “Purchase
Agreement”), dated December 7, 2009, among the Company and the purchasers signatory thereto. 
 Section 2. Exercise. 
 a) Exercise of Warrant. Exercise of the purchase
rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as it may
designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company) of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto along with payment of the aggregate Exercise
Price of the shares thereby purchased by wire transfer or cashier’s check drawn on a United States bank or, if available, pursuant to the cashless exercise procedure specified in Section 2(c) below. Notwithstanding anything herein to the
contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall
surrender this Warrant to the Company for cancellation within three (3) Trading Days of the when the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number
of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain
records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise Form within 1 Business Day of receipt of such notice. In the event of any dispute or

  

 1 

 
discrepancy, the records of the Holder shall be controlling and determinative in the absence of manifest error. The Holder and any assignee, by acceptance of this Warrant, acknowledge and
agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the
face hereof. 
 b) Exercise Price. The exercise price per share of the Common Stock under this Warrant
shall be $1.00, subject to adjustment hereunder (the “Exercise Price”). 
 c) Cashless
Exercise. If at the time of exercise hereof there is no effective registration statement registering, or the prospectus contained therein is not available for the issuance of the Warrant Shares to the Holder and all of the Warrant Shares are not
then registered for resale by Holder into the market at market prices from time to time on an effective registration statement for use on a continuous basis (or the prospectus contained therein is not available for use), then this Warrant may also
be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a certificate for the number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by
(A), where: 
  

			
	(A) =	 	the VWAP on the Trading Day immediately preceding the date on which Holder elects to exercise this Warrant by means of a “cashless exercise,” as set forth in the
applicable Notice of Exercise;
		
	(B) =	 	the Exercise Price of this Warrant, as adjusted hereunder; and
		
	(X) =	 	the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise
rather than a cashless exercise.

 “VWAP” means, for any date, the price determined by
the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading
Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time), (b) if the OTC Bulletin Board is not a Trading Market, the
volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board, (c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices for the Common
Stock are then reported in the “Pink Sheets” published by Pink OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or
(d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holders of a majority in interest of the Securities then outstanding and reasonably acceptable to
the Company, the fees and expenses of which shall be paid by the Company. 
  

 2 

 d) Mechanics of Exercise. 
 i. Delivery of Certificates Upon Exercise. Certificates for shares purchased hereunder shall be transmitted by the
Transfer Agent to the Holder by crediting the account of the Holder’s prime broker with the Depository Trust Company through its Deposit Withdrawal Agent Commission (“DWAC”) system if the Company is then a participant in such
system and either (A) there is an effective Registration Statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by Holder or (B) this Warrant is being exercised via cashless exercise, and otherwise by
physical delivery to the address specified by the Holder in the Notice of Exercise by the date that is three (3) Trading Days after the latest of (A) the delivery to the Company of the Notice of Exercise Form, (B) surrender of this
Warrant (if required) and (C) payment of the aggregate Exercise Price as set forth above (including by cashless exercise, if permitted) (such date, the “Warrant Share Delivery Date”). This Warrant shall be deemed to have been
exercised on the first date on which all of the foregoing have been delivered to the Company. The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a
holder of record of such shares for all purposes, as of the date the Warrant has been exercised, with payment to the Company of the Exercise Price (or by cashless exercise, if permitted) and all taxes required to be paid by the Holder, if any,
pursuant to Section 2(d)(vi) prior to the issuance of such shares, having been paid. 
 ii. Delivery of
New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the certificate or certificates representing
Warrant Shares, deliver to Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant. 
 iii. Rescission Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder a certificate or
the certificates representing the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then, the Holder will have the right to rescind such exercise. 
 iv. Compensation for Buy-In on Failure to Timely Deliver Certificates Upon Exercise. In addition to any other rights
available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder a certificate or the certificates representing the Warrant Shares pursuant to an exercise on or before the Warrant Share Delivery Date, and

  

 3 

 
if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to
deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (A) pay in cash to the Holder the amount, if any, by which
(x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was
required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion
of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the
Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common
Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written
notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it
hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock upon exercise of
the Warrant as required pursuant to the terms hereof. 
 v. No Fractional Shares or Scrip. No fractional
shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either
pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share. 
 vi. Charges, Taxes and Expenses. Issuance of certificates for Warrant Shares shall be made without charge to the
Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the name of the Holder or in such
name or names as may be directed by the Holder; provided, however, that in the event certificates for Warrant Shares are to be issued

  

 4 

 
in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may
require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. 
 vii. Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof. 
 e) Holder’s Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall
not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with
the Holder’s Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of
the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is
being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates and (ii) exercise
or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation
contained herein beneficially owned by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of
the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the
Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to
other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s
determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation,
and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act
and the rules and regulations promulgated thereunder. For purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in
(A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more

  

 5 

 
recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall
within two Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion
or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall
be 4.9% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Holder, upon not less than 61 days’ prior notice to the
Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding
immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any such increase or decrease will not be effective
until the 61st day after such notice is delivered to the
Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or
inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a
successor holder of this Warrant. 
 Section 3. Certain Adjustments. 
 a) Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock
dividend or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common
Stock issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into
a smaller number of shares, or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the
number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of
shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately
after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification. 

b) [RESERVED] 
  

 6 

 c) Subsequent Rights Offerings. If the Company, at any time while the
Warrant is outstanding, shall issue rights, options or warrants to all holders of Common Stock (and not to the Holders) entitling them to subscribe for or purchase shares of Common Stock at a price per share less than the VWAP on the record date
mentioned below, then, the Exercise Price shall be multiplied by a fraction, of which the denominator shall be the number of shares of the Common Stock outstanding on the date of issuance of such rights, options or warrants plus the number of
additional shares of Common Stock offered for subscription or purchase, and of which the numerator shall be the number of shares of the Common Stock outstanding on the date of issuance of such rights, options or warrants plus the number of shares
which the aggregate offering price of the total number of shares so offered (assuming receipt by the Company in full of all consideration payable upon exercise of such rights, options or warrants) would purchase at such VWAP. Such adjustment shall
be made whenever such rights, options or warrants are issued, and shall become effective immediately after the record date for the determination of stockholders entitled to receive such rights, options or warrants. 
 d) Pro Rata Distributions. If the Company, at any time while this Warrant is outstanding, shall distribute to all
holders of Common Stock (and not to the Holders) evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe for or purchase any security other than the Common Stock (which shall be subject to
Section 3(b)), then in each such case the Exercise Price shall be adjusted by multiplying the Exercise Price in effect immediately prior to the record date fixed for determination of stockholders entitled to receive such distribution by a
fraction of which the denominator shall be the VWAP determined as of the record date mentioned above, and of which the numerator shall be such VWAP on such record date less the then per share fair market value at such record date of the portion of
such assets or evidence of indebtedness so distributed applicable to one outstanding share of the Common Stock as determined by the Board of Directors in good faith. In either case the adjustments shall be described in a statement provided to the
Holder of the portion of assets or evidences of indebtedness so distributed or such subscription rights applicable to one share of Common Stock. Such adjustment shall be made whenever any such distribution is made and shall become effective
immediately after the record date mentioned above. 
 e) Fundamental Transaction. If, at any time while
this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly, effects any
sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer
(whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of
the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which
the Common Stock is effectively converted into or exchanged for other securities, cash or property, (v) the Company, directly or indirectly, in one or more related transactions consummates a stock

  

 7 

 
or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such
other Person acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party
to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share
that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of
shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental
Transaction by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise of this Warrant). For
purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such
Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock
are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such
Fundamental Transaction. The Company shall use commercially reasonable efforts to cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of
the obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved
by the Holder (without unreasonable delay) prior to such Fundamental Transaction. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such
Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all
of the obligations of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein. 
 f) Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th
of a share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if
any) issued and outstanding. 
  

 8 

 g) Notice to Holder. 
 i. Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this
Section 3, the Company shall promptly mail to the Holder a notice setting forth the Exercise Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment. 
 ii. Notice to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution
in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or
warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any
consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property,
or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be mailed to the Holder at its last address as it shall appear
upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend,
distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or
(y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled
to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice or any defect therein
or in the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the
effective date of the event triggering such notice except as may otherwise be expressly set forth herein. 
 Section 4. Transfer of Warrant. 
 a) Transferability. This Warrant and all
rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of
this Warrant substantially in the form attached hereto duly

  

 9 

 
executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the
Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant
evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new
Warrant issued. 
 b) New Warrants. This Warrant may be divided or combined with other Warrants upon
presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with
Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such
notice. All Warrants issued on transfers or exchanges shall be dated the initial issuance date set forth on the first page of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 c) Warrant Register. The Company shall register this Warrant, upon records to be maintained by the
Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any
exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary. 
 d) Understandings or Arrangements. Such Holder is acquiring this Warrant as principal for its own account and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution
of such Warrant (this representation and warranty not limiting such Holder’s right to sell the Warrant pursuant to the Registration Statement or otherwise in compliance with applicable federal and state securities laws.) Such Holder is
acquiring this Warrant hereunder in the ordinary course of its business. 
 Section 5. Miscellaneous.

 a) No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting
rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i). 
 b) Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation
of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the

  

 10 

 
posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor
and dated as of such cancellation, in lieu of such Warrant or stock certificate. 
 c) Saturdays, Sundays,
Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding
Business Day. 
 d) Authorized Shares. 
 The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued
Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant. The Company further covenants that its issuance of this Warrant shall constitute full authority
to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such
reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Stock may be listed.
The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in
accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring
contemporaneously with such issue). 
 Except and to the extent as waived or consented to by the Holder, the
Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or
appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable
therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon
the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to
perform its obligations under this Warrant. 
  

 11 

 Before taking any action which would result in an adjustment in the number
of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having
jurisdiction thereof. 
 e) Jurisdiction. All questions concerning the construction, validity, enforcement
and interpretation of this Warrant shall be determined in accordance with the provisions of the Purchase Agreement. 
 f) Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state
and federal securities laws. 
 g) Nonwaiver and Expenses. No course of dealing or any delay or failure to
exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice Holder’s rights, powers or remedies. Without limiting any other provision of this Warrant or the Purchase Agreement, if the
Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to Holder such amounts as shall be sufficient to cover any costs and expenses including,
but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder. 
 h) Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder by the
Company shall be delivered in accordance with the notice provisions of the Purchase Agreement. 
 i)
Limitation of Liability. No provision hereof, in the absence of any affirmative action by Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of Holder, shall give rise to any
liability of Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company. 
 j) Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of
damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and
hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate. 
 k) Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and

  

 12 

 
be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any
Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares. 
 l) Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder. 
 m) Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the
remainder of such provisions or the remaining provisions of this Warrant. 
 n) Headings. The headings
used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant. 
 ******************** 
 (Signature Pages Follow) 
  

 13 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer
thereunto duly authorized as of the date first above indicated. 
  

			
	AUTHENTIDATE HOLDING CORP.
		
	By:	 	  

		 	Name:
		 	Title:

  

 14 

 NOTICE OF EXERCISE 
  

	TO:	AUTHENTIDATE HOLDING CORP. 

 (1)
The undersigned hereby elects to purchase                      Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if
exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any. 
 (2) Payment shall take the form of (check applicable box): 
  ̈ in
lawful money of the United States; or 
  ̈ [if permitted] the cancellation of
such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set
forth in subsection 2(c). 
 (3) Please issue a certificate or certificates representing said Warrant Shares in the name of the
undersigned or in such other name as is specified below: 
  

					
	  
	  		  	

 The Warrant Shares shall be delivered to the following DWAC Account Number or by physical delivery of
a certificate to: 
  

					
	  
	  		  	
			
	  
	  		  	
			
	  
	  		  	

 [SIGNATURE OF HOLDER] 
  

			
	Name of Investing Entity:	 	  

			
	Signature of Authorized Signatory of Investing Entity:	 	  

			
	Name of Authorized Signatory:	 	  

			
	Title of Authorized Signatory:	 	  

			
	Date:	 	  

 ASSIGNMENT FORM 
 (To assign the foregoing warrant, execute 
 this form and
supply required information. 
 Do not use this form to exercise the warrant.) 
 FOR VALUE RECEIVED, [            ] all of or
[            ] shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to 
                                        
                                  whose address is 
                                        
                                         
                . 
  

					
	  
	 		 	

 Dated:
                    ,              
  

							
		 	Holder’s Signature:	 	  
	 	
				
		 	Holder’s Address:	 	  
	 	
				
		 		 	  
	 	

 Signature Guaranteed:
                                         
                                        

NOTE: The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or
any change whatsoever, and must be guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}]]