Document:

Share Purchase Agreement dated as of February 16, 2007

 Exhibit 4(a).13 
 ROSS SYSTEMS, INC. 
 as Purchaser 
 CDC SOFTWARE CORPORATION 
 as Guarantor 
 3i GROUP PLC 
 THE PARKMEAD GROUP PLC 
 JAMES HEAVEY

 CATHAL NAUGHTON 
 MICHAEL BREARE 
 as Sellers 
  

 SHARE PURCHASE
AGREEMENT 
  

  

 SHARE PURCHASE AGREEMENT 
 This SHARE PURCHASE AGREEMENT (the “Agreement”) dated as of February 16, 2007, is made by and among ROSS SYSTEMS, INC., a company
organized and existing under the laws of the State of Delaware (the “Purchaser”); CDC SOFTWARE CORPORATION a company organised and existing under the laws of the Cayman Islands (the “Guarantor”) and 3I GROUP PLC
registered in England and Wales as a limited partnership with registered number of 01142830 having a registered address of 16 Palace Street, London SW1E 5JD (“3i”), THE PARKMEAD GROUP PLC, registered in England and Wales as a
limited partnership with registered number of 03914068 having a registered address of 22-23 Old Burlington Street, London W1X 1RL (“Parkmead”), MR. JAMES HEAVEY having an address of 21 Brockwell, Oakley, Bedford MK43 7TD, MR. CATHAL
NAUGHTON having an address of 20 Bridge Walk, Beechwood Gardens, Deanshanger, Northants MK19 6LD and MR. MICHAEL BREARE having an address of 10 Bedford Road, Wootton, Bedfordshire MK43 9JT (collectively, the “Sellers”), all of whom
may be collectively referred to herein as the “Parties” or individually as a “Party”. 
 WITNESSETH

 WHEREAS, just prior to the Closing (defined herein), the Sellers are the only legal and beneficial owners of the Shares (defined
herein) which they desire to sell to the Purchaser and Purchaser wishes to purchase the Shares from the Sellers. 
 NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth herein and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Parties agree as follows: 
 Section 1. Definitions and Principles of Construction 
 1.01 Defined Terms. As used in this Agreement, and unless the context requires a different meaning, the following terms have the meanings indicated: 
 “$” shall mean, when used by itself, the United States dollar, the legal currency of the United States. 
 “£” shall mean, when used by itself, the British pound sterling, the legal currency of England. 
 “Accumulated Revenue” shall mean the actual accumulated revenue of Company for each of the First Installment Period, the Second
Installment Period and the Third Installment Period calculated in accordance with US GAAP provided always that any Accumulated Revenue associated with the sale, license or maintenance of hardware shall not account for more than 5% of the
total actual consolidated revenue for the Company for any Installment Period. In the event that more than 5% of the total actual consolidated revenue for the Company for any Installment Period is derived from sale, license or maintenance of
hardware, such excess revenue shall be excluded from the calculation of Accumulated Revenue for that Installment Period. Further, all customer returns and credits issued by the Company shall be deducted from the calculation of Accumulated Revenue in
the same Installment Period as the corresponding revenue was included. Accumulated Revenue for any Installment Period shall include any and all sales of the Respond Product generated worldwide by Affiliates of CDC during such Installment Period.

 “Actual EBITDA” shall mean, for the relevant Installment Period, as the case may be, the actual audited earnings before
interest, taxes, depreciation, amortization of the Company for that year calculated in accordance with US GAAP and the policies contained in Schedule 11 hereto. 
  

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 “Actual Net Asset Value” shall mean the Net Asset Value of the Company and its
Subsidiaries calculated as at Closing as shown by the Purchaser Closing Balance Sheet and as agreed to between the Purchaser and the Management Sellers Representative in accordance with Section 2.02(c). 
 “Agreed Form” means in a form mutually agreed between the Sellers and the Purchaser and, for the purposes of identification only,
initialled by or on behalf of each of them (if appropriate). 
 “Affiliate” shall mean any Person that directly, or
indirectly through one or more intermediaries, controls or is controlled by or is under common control with the Person specified. For purposes of this definition, control of a Person means the power, direct or indirect, to direct or cause the
direction of the management and policies of such Person whether by contract or otherwise. 
 “Agreement” shall mean this
Share Purchase Agreement and the Schedules hereto and the certificates delivered in accordance herewith, as the same may be amended, supplemented or modified from time to time. 
 “Assets” shall mean all of the assets of the Company and all Subsidiaries including but not limited to the Intellectual Property, the IP
Assets, the Material Contracts, the Equipment Leases and the Office Occupancy Agreements. 
 “Audited Accounts” shall mean
the audited consolidated financial statements of the Company comprising a consolidated balance sheet, profit and loss account, notes and reports thereon and a cashflow statement and the audited financial statements of the Company and each of the
Subsidiaries, in each case for the period ended on 31 January 2006; 
 “Base Threshold” shall have the meaning given in
Section 2.02(d). 
 “Benefit Arrangement” shall mean any employment, severance or similar contract or arrangement
(whether or not written) or any plan, policy, fund, program or contract or arrangement (whether or not written) providing for compensation, bonus, or other forms of incentive or deferred compensation, vacation benefits, insurance coverage (including
any self – insured arrangements), health or medical benefits, disability benefits, worker’s compensation, supplemental unemployment benefits, severance benefits and post-employment or retirement benefits (including compensation, pension,
health, medical or life insurance or other benefits) that is not an Employee Plan. 
 “Board” shall mean the board of
directors of the Company. 
 “Business Day” shall mean a day other than Saturday, Sunday or any day on which banks located
in England are authorized or obligated to close. 
 “CDC” shall mean CDC Corporation, a company organized under the laws of
the Cayman Islands, and the ultimate parent company of Purchaser. 
 “Claim” shall have the meaning set forth in Schedule 5
hereof; 
 “Closing” shall have the meaning given to such term in Section 2.03. 
 “Closing Balance Sheet” means the consolidated balance sheet of the Company contained in Schedule 12. 
 “Closing Date” shall mean the date of the Closing. 
 “Closing Net Asset Value” shall mean US$-2,221,577, being the Net Asset Value as shown in the Closing Balance Sheet. 
  

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 “Company” means Respond Group Limited, a company incorporated under the laws of the
England and Wales and having a company number of 05240703 and a registered office of Regus House Fairbourne Drive, Atterbury Milton Keynes, MK10 9RG. 
 “Constitution” shall mean: (i) the Memorandum of Association of the Company and its Subsidiaries; (ii) the Articles of Association of the Company and its Subsidiaries; (iii) all other
organizational documents, if any, of the Company and its Subsidiaries governing the formation, ownership, voting and control of the Company and its Subsidiaries; and (iv) any amendment to any of the foregoing. 
 “Contract” shall mean any contract, agreement, arrangement, commitment, undertaking, instrument, permit, mortgage, license, sublicense,
lease, letter of intent, quotation, purchase order or other arrangement (in each case, whether oral or in writing), together with any related amendments, waivers, supplements, work orders, notices as to termination or changes with respect to the
forgoing. 
 “Disclosure Letter” shall mean letter of the same date as this Agreement from the Management Sellers to the
Purchaser containing certain disclosures against the Warranties and the Tax Warranties. 
 “Employee Litigation” shall have
the meaning given in Section 3.13(i). 
 “Employment Agreement” shall mean the employment agreement in the Agreed Form
dated the Closing Date and duly signed by each of the Key Employees. 
 “Employee Plan” means any “employment benefit
plan” which is maintained, administered or contributed to by any Seller, the Company or any Subsidiary and covers any employee or former employee of the Company or any Subsidiary, except for the Employee Retention Pool. 
 “Employee Retention Pool” has the meaning set forth in Section 2.02(i) hereof. 
 “Encumbrance” means, with respect to any asset, any mortgage, deed of trust, lien, pledge, charge, security interest, title retention
device, conditional sale or other security arrangement, collateral assignment, claim, charge, adverse claim of title, ownership or right to use, restriction or other encumbrance of any kind in respect of such asset (including any restriction on
(a) the voting of any security or the transfer of any security or other asset, (b) the receipt of any income derived from any asset, (c) the use of any asset, or (d) the possession, exercise or transfer of any other attribute of
ownership of any asset). 
 “Environmental Laws” means any federal, state, local or foreign law (including, without
limitation, common law), treaty, judicial decision, regulation, rule, judgement, order, decree, injunction, permit or governmental restrictions or requirement or any agreement with any governmental authority or other third party, whether now or
hereafter in effect, relating to human health and safety, the environment or to pollutants, contaminants, wastes or chemicals or any toxic, radioactive, ignitable, corrosive, reactive or otherwise hazardous substances, wastes or materials.

 “Equipment Leases” shall mean leases of, and agreements to hire, equipment (including motor vehicles) to the Company or
any Subsidiary, including, without limitation, those listed in Section 3.15(c) of the Disclosure Letter. 
 “Expert”
shall mean a partner from one of the top five (5) accounting firms in the United Kingdom, appointed in accordance with Schedule 4. 
  

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 “First Installment” shall mean the amount to be paid at the First Installment Payment
Date as determined by Sections 2.02(d) and 2.02(e). 
 “First Installment Payment Date” shall have the meaning given to such
term in Section 2.02(e). 
 “First Installment Period” shall mean the period from Closing to December 31, 2007.

 “Governmental Licenses” shall have the meaning given to such term in Section 3.18. 
 “Governmental or Regulatory Authority” shall mean any court, tribunal, arbitrator, authority, agency, commission, official or other
instrumentality of England or any applicable foreign country or any domestic or foreign state, county, city or other political subdivision. 
 “Hold Back Period” shall mean the period between Closing and the due date for payment of the Third Installment. 
 “Inception Date” shall mean the date of incorporation of the Company or any Subsidiary, as applicable. 
 “Incremental Revenue” shall equal the Accumulated Revenue for the relevant Installment Period over and above: (a) in the case of the First Installment, $12.0 million; (b) in the case of Second Installment, the
greater of the Accumulated Revenue for the First Installment Period and $12.0 million; and (c) in the case of Third Installment, the greatest of the Accumulated Revenue for the Second Installment Period, the Accumulated Revenue for the First
Installment Period and $12.0 million; provided, however, notwithstanding anything herein to the contrary, that the aggregate Incremental Revenue to be used in calculating any and all Tranche 2 Consideration shall not exceed $33 million.

 “Initial NAV Adjustment” shall mean US-$256,577 being the difference between the Target Net Asset Value and the Closing Net
Asset Value as shown on the Closing Balance Sheet. 
 “Installment” shall mean any of the First, Second or Third
Installments. 
 “Installment Payment Dates” shall mean collectively the First Installment Payment Date, the Second
Installment Payment Date and the Third Installment Payment Date. “Installment Payment Date” shall mean any of the First Installment Payment Date, the Second Installment Payment Date or the Third Installment Payment Date. 

“Installment Period” shall mean any of the First Installment Period, Second Installment Period or the Third Installment Period.

 “Intellectual Property” shall mean: (a) all copyrightable works, copyrights, design rights including all
improvements, revisions, amendments, modifications or alternations and all applications, registrations, and renewals in connection therewith; (b) all trademarks, service marks, trade dress, logos, trade names, and corporate names, together with
all translations, adaptations, derivations, and combinations thereof and including all goodwill associated therewith, and all applications, registrations, and renewals in connection therewith; (c) all inventions discoveries and patents (whether
patentable or unpatentable and whether or not reduced to practice), all improvements, revisions, amendments, modifications or alternations thereto; (d) all trade secrets and confidential information (including ideas, research and development,
know-how, formulas, manufacturing and production processes and techniques, technical data, designs, drawings, specifications, customer and supplier lists, pricing and cost information, and business and marketing plans and proposals); (e) all
computer software (including data and related documentation) or source or object code, including all improvements, revisions, amendments, modifications or alternations; (f) all other proprietary, intellectual and industrial rights in whatever
form or medium, including moral rights; and (g) the IP Assets. 
  

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 “IP Assets” shall mean the computer software in part or whole created, developed,
designed, owned and/or licensed by the Company including, without limitation, the Respond Product. 
 “Key Employees” shall
mean each of Messrs. Michael Breare and James Heavey. 
 “Law” shall mean all laws, statutes, rules, regulations, ordinances
and other pronouncements having the effect of law in any jurisdiction of the United Kingdom or any other applicable foreign country or any domestic or foreign state, county, city or other political subdivision or of any Governmental or Regulatory
Authority. 
 “Level 1 Multiple” shall mean 0.18571. 
 “Level 2 Multiple” shall mean 0.35286. 
 “Level 3 Multiple” shall mean 0.57286. 
 “Licensed Intellectual Property”
shall mean all Intellectual Property owned by a third party and licensed or sublicensed to the Company or any Subsidiary. 
 “Lien” shall mean with respect to any property or asset, any mortgage, lien, pledge, charge, security interest, Encumbrance or other adverse claim of any kind in respect of such share, property or asset. 
 “Management Accounts” shall mean the unaudited management accounts of the Company and its Subsidiaries for the Company’s fiscal
year ended January 31, 2007. 
 “Management Sellers Representative” shall mean Mr. James Heavey. 
 “Material Adverse Effect” shall mean a material adverse effect upon (financial or otherwise) the business, assets or results of
operations or prospects of the Company or any Subsidiary. 
 “Material Contracts” shall have the meaning given in
Section 3.17(e). 
 “Management Seller” shall mean each of Messrs. Breare, Heavey and Naughton, and “Management
Sellers” shall mean collectively, Messrs. Breare, Heavey and Naughton. 
 “Management Sellers’ Solicitors”
shall mean HBJ Gateley Wareing LLP. 
 “Net Asset Value” shall mean the total current balance sheet assets less the total
balance sheet liabilities as determined in accordance with UK GAAP excluding the amount of all deferred tax assets so that the Sellers do not obtain a favourable impact on the NAV Adjustment as a result of any deferred tax assets. For the
avoidance of doubt the Net Asset Value shall exclude the amount of all fees and expenses of the Sellers, the Company and/or its Subsidiaries accrued, payable or due to be payable in connection with the transactions contemplated by this Agreement (if
any) including without limitation, all Transaction Incentives, fees and expenses of any legal advisor, investment banker, broker, finder, accountant, financial adviser, tax advisor or similar party. 
 “Net Receivables” shall mean gross receivables less an allowance for uncollected receivables as determined in accordance with UK GAAP.

 “Non-Management Seller” shall mean each of 3i and Parkmead (formerly, Interregnum), and “Non-Management
Sellers” shall mean collectively, 3i and Parkmead. 
  

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 “Office Occupancy Agreement” means any agreements related to the Company’s
occupancy of its office and other space, and collectively, means all such agreements. 
 “Order” shall mean any writ,
judgement, decree, injunction or similar order of any Governmental or Regulatory Authority (in each such case whether preliminary or final). 
 “Owned Intellectual Property” shall mean all Intellectual Property owned by the Company or any Subsidiary. 
 “Ownership Period” shall mean with respect to the Company and its Subsidiaries, the period of time from the date of such entity’s inception to the Closing Date. 
 “Person” shall mean an individual, partnership, corporation, association, trust, joint venture, unincorporated organization, and any
government, governmental department or agency or political subdivision thereof. 
 “Proceeding” shall have the meaning give
in Section 3.11. 
 “Purchaser Closing Balance Sheet” shall mean the consolidated balance sheet of the Company prepared
in accordance with UK GAAP and subject thereto using the same accounting policies and principles as were adopted in preparing the financial statements of the Company for the year ended 31 January 2006 as of the Closing Date and shall
include, without limitation: (i) all accruals as if such Purchaser Closing Balance Sheet was a year end balance sheet; (ii) all outstanding loans, bank facilities, credit facilities lines of credit and similar liabilities in the nature of
indebtedness (other than trade creditors); and (iii) to the extent not discharged in full by the Sellers, the amount of all fees and expenses of the Sellers, the Company and/or its Subsidiaries accrued, payable or due to be payable in
connection with the transactions contemplated by this Agreement including without limitation, all fees and expenses of any legal advisor, investment banker, broker, finder, accountant, financial adviser, tax advisor or similar party. The Purchaser
Closing Balance Sheet will be prepared using the same format as the Closing Balance Sheet. 
 “Records” means originals and
copies, of all books, files, reports, records, correspondence, documents and other material of or relating to or used in connection with the Company or any Subsidiary and including, without limitation: (a) all relevant by-laws and certificates
of incorporation, minute books, statutory books and registers, books of account and copies of taxation returns; (b) sales literature, market research reports, brochures and other promotional material; (c) all sales and purchasing records;
and (d) lists of all regular suppliers and customers. 
 “Related Person” means, with respect to a particular
individual: (a) each other member of such individual’s Family; (b) any Person that is directly or indirectly controlled by such individual or one or more members of such individual’s Family; (c) any Person in which such
individual or members of such individual’s Family holds (individually or in the aggregate) a Material Interest; and (d) any Person with respect to which such individual or one or more members of such individual’s Family serves as a
director, officer, partner, executor, or trustee (or in a similar capacity). With respect to a specified Person other than an individual: (a) any Person that directly or indirectly controls, is directly or indirectly controlled by, or is
directly or indirectly under common control with, such specified Person; (b) any Person that holds a Material Interest in such specified Person; (c) each Person that serves as a director, officer, partner, executor, or trustee of such
specified Person (or in a similar capacity); (d) any Person in which such specified Person holds a Material Interest; (e) any Person with respect to which such specified Person serves as a general partner or a trustee (or in a similar
capacity); and (f) any Related Person of any individual described herein. For purposes of this 

  

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definition, (a) the “Family” of an individual includes (i) the individual, (ii) the individual’s spouse and former spouses,
(iii) any other natural person who is related to the individual or the individual’s spouse within the second degree, and (iv) any other natural person who resides with such individual, and (b) “Material Interest” means
direct or indirect beneficial ownership of voting securities or other voting interests representing at least 20% of the outstanding voting power of a Person or equity securities or other equity interests representing at least 20% of the outstanding
equity securities or equity interests in a Person. 
 “Representative” means with respect to a party any of its attorneys,
accountants, agents, service-providers or other similar persons. 
 “Respond” shall mean the Company. 
 “Respond Product” means, subject to paragraph (d) below: 
 (a) Subject to paragraph (d) below, until such time as the complaint and feedback management functionality of the Respond product line may be
re-architected to take advantage of Pivotal CRM technology (“Prior to Re-architecture”), the following: Respond Centerpoint, Respond Customer, Respond TouchPoint, Respond Handler, Respond Insight, Respond Intelligence and the
associated products listed in Schedule 13; provided, however, that any product listed in Schedule 13 as used internally by development/support shall be considered a “Respond Product” if and only if such product is sold or licensed
in connection with a sale or license of a Respond Product listed in Schedule 13 as offered for sale to customers (for example, sales of NetPoint Process Builder in connection with a sale of the Ross ERP shall not count toward the calculation of any
Tranche 2 Consideration). No third party product (for example, any product that is not a CDC Software product and any product that is not a Respond product) shall be considered a “Respond Product”; provided, however, that sales of third
party software products as part of a bundle when selling a Respond Product shall be counted for purposes of determining the Tranche 2 Consideration. 
 (b) Subject to paragraph (d) below, from such time as the complaint and feedback management functionality of the Respond product line has been re-architected to take advantage of Pivotal CRM Technology
(“After Re-architecture”), the “Respond Product” shall mean complaint and feedback management products that CDC Software has developed based upon the proprietary capabilities of the Respond Modules, Application Programs
and Databases described in paragraph (a) above existing as at the date of this Agreement. 
 (c) Subject to paragraph (d) below,
both Prior to Re-architecture and After Re-architecture, “Respond Product” shall include additional complaint and feedback management functionality, upgrades and enhancements which Respond develops through its research and development
budget (e.g., additional complaint processes for new vertical markets for the Respond product line, new functionality for the Respond Modules, Application Programs and Databases described in paragraph (a) above. 
 (d) Notwithstanding paragraphs (a), (b) and (c) above, the “Respond Product” does not include the following: 
 (i) CDC Software products that may be cross-sold to Respond customers (or example, MarketFirst); 
 (ii) CDC Software products which include complaint management and feedback functionality as at the date of this Agreement (for example, the IMI
e-commerce module which includes feedback and complaint management capabilities, as well as an existing complaint management system developed and marketed by a Pivotal reseller for local government); 
  

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 (iii) complaint and feedback management products which are developed (other than by Respond) in
enterprise applications whose primary purpose is not CRM or customer service such as enterprise resource planning (for example, manufacturing), supply chain management (for example, distribution); provided, however, that such products have
been developed without the specific use of the proprietary capabilities existing in the Respond Application Modules, Programs and Databases described in paragraph (a) above; and 
 (iv) CDC Software products which are not complaint and feedback management products that are developed using Respond’s Intellectual Property.

 “Second Installment” shall mean the amount to be paid at the Second Installment Payment Date as determined by Sections
2.02(d) and 2.02(e). 
 “Second Installment Payment Date” shall have the meaning given to such term in Section 2.02(e).

 “Second Installment Period” shall mean the period from January 1, 2008 to December 31, 2008. 
 “Sellers” shall have the meaning given in the Recitals hereto and “Seller” shall mean any of the Sellers. 

“Series A Loan Notes” shall mean the loan notes issued pursuant to the terms of this Agreement and the Series A Loan Note Instrument.

 “Series A Loan Note Instrument” shall mean the loan note instrument in the form contained in Schedule 14. 
 “Shares” shall mean the entire issued share capital of the Company at Closing, and all rights of any kind associated therewith.

 “Subsidiaries” when used in plural or “Subsidiary” when used singly shall mean, in relation to the
Company, a corporate entity whose voting shares are owned more than 10% by the Company. Subsidiaries shall include Respond Software Limited (“RSL”), Respond UK Limited (“RUKL”), as wholly-owned subsidiaries of the
Company, Respond Trustee Limited (“RTL”) and the other companies listed in Part 2 of Schedule 2. 
 “Target Net
Asset Value” shall mean US$-1,965,000. 
 “Tax” or “Taxation” has the meaning given to it in
Schedule 3 (Taxation). 
 “Tax Indemnity” means the covenant relating to Tax contained in paragraph 3 of Schedule 3
(Taxation). 
 “Tax Warranties” means the warranties relating to Tax contained in paragraph 2 of Schedule 3 (Taxation).

 “Third Installment” shall mean the amount to be paid at the Third Installment Payment Date as determined by Sections
2.02(d) and 2.02(e). 
 “Third Installment Payment Date” shall have the meaning given to such term in Section 2.02(e).

 “Third Installment Period” shall mean the period from January 1, 2009 to December 31, 2009. 
  

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 “Total Consideration” shall have the meaning given to such term in Section 2.02(a).

 “Tranche 1 Consideration” shall have the meaning given to such term in Section 2.02(a). 
 “Tranche 2 Consideration” shall have the meaning given to such term in Section 2.02(a). 
 “Transaction Incentives” shall mean all amounts (if any) payable to current or former employees of the Company and/or any Subsidiary by
way of bonuses, commissions, and other incentives associated with and payable as a result of transactions contemplated under this Agreement. 
 “True Up Amount” shall have the meaning given to such term in Section 2.02(c)(iii). 
 “Transaction
Documents” shall mean this Agreement (and all relevant share transfers, share certificates, board and shareholder resolutions and any other ancillary documents required for the consummation of this Agreement) and such other documents
referenced herein that are required to be in the Agreed Form. 
 “Transfer” shall mean the making of any sale, exchange,
assignment or gift, the granting of any security interest, pledge or other encumbrance in, or the creation of, any voting trust or other agreement or arrangement with respect to the transfer of voting rights in the Shares, or the creation of any
other claim thereof or any other transfer or disposition whatsoever, whether voluntary or involuntary, affecting the right, title or interest or possession in or of the Shares. 
 “UK GAAP” shall mean generally accepted accounting principles of the United Kingdom. 
 “US GAAP” shall mean, unless otherwise stated, generally accepted accounting principles of the United States. 
 “U.S.” or “US” shall mean the United States of America. 
 “Warranties” means the warranties of the Sellers set out in Section 3 and the Tax Warranties and “Warranty” shall
have a corresponding meaning. 
 1.02 Principles of Construction. 
 (a) All references to Sections, Schedules and paragraphs are to Sections, Schedules and paragraphs of Schedules in or to this Agreement unless otherwise
specified. The words “hereof,” “herein,” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provisions of this Agreement.

 (b) All accounting terms not specifically defined herein shall be construed in accordance with generally accepted accounting principles in
the United Kingdom or United States (as appropriate). 
 (c) The singular terms include the plural and the plural terms include the singular.

 (d) The headings used in this Agreement have been inserted for convenience of reference only and do not define or limit the provisions
hereof. 
 (e) The Schedules form part of this Agreement and are incorporated herein by reference and made a part hereof. In the event of a
conflict between the terms of this Agreement and any term, condition or other provision set forth in any other Transaction Document, the terms of this Agreement shall control. 
  

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 (f) References in this Agreement to statutes shall include any statutory modification, re-enactment or
extension of such statute and any orders, regulations, instruments or other subordinate legislation made pursuant to such statute provided that any modification, re-enactment or extension of such statute made after the date of Closing and any
orders, regulations, instruments or other subordinate legislation made pursuant to such statute after the date of Closing shall not impose additional obligations on any party to this Agreement. 
 (g) Notwithstanding anything contained in this Agreement, all obligations given by 3i and Parkmead in this Agreement are given severally and not, for the
avoidance of doubt, jointly and severally and all obligations given by the Management Sellers and each Management Seller in this Agreement are given jointly and severally, and not, for the avoidance of doubt, severally (except with respect to
Section 5.04 only). 
 Section 2. Sale and Purchase of the Shares and Consideration. 
 2.01 Sale and Purchase of the Shares 
 (a) Subject to the terms and conditions hereof, and in reliance upon the warranties and covenants contained in this Agreement, as of the Closing Date, the Purchaser agrees to purchase the Shares from the Sellers and each Seller agrees to
sell, transfer, convey and assign the Shares held by such Seller which are set out opposite his respective name in Column 2 of Schedule 1 to the Purchaser. 
 (b) Each of the Sellers hereby waives in favor of the Purchaser any pre-emptive or other rights that each Seller has now or might otherwise have in respect of any of the Shares registered in the name of such Seller
held by such Seller prior to Closing. Each Seller agrees that the Shares registered in the name of such Seller will be transferred free from any Lien and with all rights, including dividend rights, attached or accruing to them on and from the
Closing Date. 
 (c) Each Seller hereby releases and forever discharges any and all known or unknown claims, causes of action, promises or
similar rights of any type (however described and however arising) that existed prior to the Closing Date that it or any of its Affiliates or Related Persons may have against or relating to the Company or any Subsidiaries. Without limiting the
preceding sentence, each Seller hereby confirms that he, she or it is not in any way entitled to any payment from the Company or any Subsidiary except as may be expressly set forth in this Agreement or any Transaction Document provided that this
clause shall not in any way operate to waive, release or discharge any claim (whether now or at any time in the future) or rights (whether contractual or otherwise) which the Key Employees may have in their capacity as employees of the Company.

 2.02 Consideration. 
 (a) Total Consideration. Subject to terms and conditions hereof, the consideration to be paid for the Shares by the Purchaser shall be an aggregate of: (i) [$14,743,423] million in cash less any adjustment provided for in
Section 2.02(c) (the “Tranche 1 Consideration”); and (ii) an amount to be determined in accordance with Section 2.02(d), minus any amounts to be withheld in accordance with Sections 2.02(g) and 2.02(j) (the
“Tranche 2 Consideration”). The aggregate of the Tranche 1 Consideration and the Tranche 2 Consideration shall be the “Total Consideration.” The Tranche 1 Consideration shall be paid in a manner set out in
Section 2.02(b) and the Tranche 2 Consideration shall be paid in a manner set out in Section 2.02(e). Notwithstanding anything else contained in this Agreement (other than Section 2.02(j)), in no event shall the Total Consideration
paid to all Sellers in aggregate exceed $28 million. Furthermore, the Purchaser shall be entitled to deduct and withhold from any Tranche 1 Consideration payable to the Management Sellers and/or Tranche 2 Consideration any such amounts for Tax
obligations as may be required by law. 
  

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 (b) Tranche 1 Consideration. The Tranche 1 Consideration without adjustment pursuant to
Section 2.02(c) shall be payable on Closing in cash to the Sellers as set out in Schedule 1. The cash elements of the Tranche 1 Consideration shall be paid by electronic wire transfer to the account of the Management Sellers Solicitor, as set
out in Section 7.16 and shall be deemed to be made when it leaves the bank account of the Purchaser or its Affiliate. The amount of all outstanding debts, loans, bank facilities, credit facilities, lines of credit and similar liabilities of the
Company and each Subsidiary shall be paid in full prior to or at Closing from either the cash held by the Company prior to Closing or by deduction from the Tranche 1 Consideration. 
 (c) Net Asset Value Adjustment. The “NAV Adjustment” (if any) shall be determined as follows: 
 (i) The Purchaser and the Sellers agree that the amount of Tranche 1 Consideration payable at Closing has been calculated by applying to
the sum of $15,000,000 the Initial NAV Adjustment; being the Net Asset Value as shown in the Closing Balance Sheet less the Target Net Asset Value. The Parties agree that if the Initial NAV Adjustment were greater than zero, then the Initial NAV
Adjustment would be deemed to equal zero. 
 (ii) Within seventy-five (75) days of the Closing, the Purchaser shall use
its reasonable commercial endeavors to procure that the Company’s auditors prepare the Purchaser Closing Balance Sheet and the Purchaser shall forward the Purchaser Closing Balance Sheet (including, where possible, actual numbers rather than
accruals) to the Management Sellers Representative for approval for the purposes of a revision of the NAV Adjustment (a “True Up”) to be determined as follows. 
 For the avoidance of doubt, if the Actual Net Asset Value is exactly [-$2,221,577] (being the Closing Net Asset Value), then no further
payment shall be made by either party in relation to the True-Up. 
 (iii) If the Actual Net Asset value is below (worse than)
[-$2,221,577], then the amount by which it is less than [-$2,221,577] (the “True Up Shortfall”) will be paid to the Purchaser in relation to the True-Up as follows: 
 To the extent that such True Up Shortfall is equal to or less than $100,000 it shall be paid by the Sellers to the Purchaser in the
proportions set out in Column 5 of Schedule 1 within five (5) Business Days of the True Up Shortfall being finally determined (whether by approval or deemed approval by the Management Sellers Representative or determination by the Expert) and
to the extent such True Up Shortfall is greater than $100,000 or in the event that any Management Seller fails to so pay any True Up Shortfall payable hereunder within five (5) Business Days, then such excess or unpaid True Up Shortfall (as the
case may be) shall be deducted from any unpaid Installment. 
 (iv) If the Actual Net Asset value is above (better than)
[-$2,221,577], then the amount by which it is greater than [-$2,221,577] (the “True Up Excess”) will be paid to the Sellers in relation to the True-Up as follows: 
 To the extent that such True Up Excess is equal to or less than $100,000 it shall be paid by the Purchaser to the Sellers who shall be
entitled to it in the proportions set out in Column 5 of Schedule 1 within 5 Business Days of the True Up Excess being finally determined (whether by approval or deemed approval by the Management Sellers 

  

 12 

 
Representative or determination by the Expert) and to the extent that such True Up Excess is greater than $100,000 then such excess True Up Excess shall be
added to the First Installment, provided however that the maximum value of any True Up Excess provided for in this section 2.02 will be limited to the Initial NAV Adjustment, and therefore, for the avoidance of doubt the maximum Tranche 1
Consideration shall be $15,000,000. 
 (v) The Management Sellers Representative shall have fifteen (15) Business Days of
receipt of the Purchaser Closing Balance Sheet (“Approval Period”) to approve the Purchaser Closing Balance Sheet. In the event that the Management Sellers Representative approves the Purchaser Closing Balance Sheet or no NAV Notice
of Objection (as defined below) is served by the Management Sellers Representative within the Approval Period, the Purchaser Closing Balance Sheet and the NAV Adjustment shall be deemed to be approved by the Sellers and shall be final, conclusive
and binding. If the Management Sellers Representative disagrees with the calculation of the NAV Adjustment, the Management Sellers Representative may, on or prior to the last day of the Approval Period, deliver a notice to the Purchaser
(“NAV Notice of Objection”), which must set forth the Management Sellers Representative’s objection to the NAV Adjustment, specify those items or amounts with which the Management Seller’ Representative disagrees, and
(insofar as it is reasonably practicable) include a calculation of NAV Adjustment and the Purchaser Closing Balance Sheet based on such objections. In the event of receipt of a NAV Notice of Objection by the Purchaser from the Management Sellers
Representative, the Purchaser and the Management Sellers Representative shall, during the seven (7) days following such delivery or any mutually agreed extension thereof, use their commercially reasonable efforts to reach agreement on the
disputed items and amounts in order to determine the amount of the NAV Adjustment. If, at the end of such period or any mutually agreed extension thereof, the Purchaser and the Management Sellers Representative are unable to resolve their
disagreements, the dispute will be referred to an Expert for determination in accordance with Schedule 4. 
 (d) Tranche 2 Consideration
– Calculation. Subject always to the fact that the aggregate Tranche 2 Consideration paid to all Sellers shall not exceed $13,000,000, the amount of the Tranche 2 Consideration shall be determined in accordance with each of the following
rules, restrictions and limitations: 
 (i) in the event that the Accumulated Revenue for any Installment Period is equal to
or less than $12,000,000 (“Base Threshold”), the Installment Amount for each and any such Installment Period shall be zero; 
 Example: 
 Assuming the Accumulated Revenue for the First Installment Period is $11,990,000, the First Installment
shall be zero. 
 (ii) in the event that the Accumulated Revenue for any Installment Period other than the First Installment
Period is less than the Accumulated Revenue for any previous Installment Period, such Installment shall be zero; 
 Example: 
 Assuming the Accumulated Revenue for the Second Installment Period is $45,000,000 and the Accumulated Revenue for the Third Installment
Period is $40,000,000, the Third Installment shall be zero. 
 (iii) in the event that Actual EBITDA for any Installment
Period is less than or equal to twenty percent (20%) of the Accumulated Revenue for such Installment Period, then such Installment shall be zero; 
  

 13 

 (iv) the Level 1 Multiple shall only be applied to the first $9,000,000 of Incremental
Revenue, the Level 2 Multiple only be applied to the next $11,000,000 of Incremental Revenue and the Level 3 Multiple shall only be applied to the next $13,000,000 of Incremental Revenue. Once part of the Incremental Revenue is used in the
calculation of an Installment, then such part will no longer be available for use against such Level Multiple in the calculation of any subsequent Installment Period; 
 Example: 
 Assuming the Incremental Revenue for First Installment Period is $12,000,000, then
the First Installment shall be [$9,000,000 x 0.18571] + [$3,000,000 x 0.35286] = $2,729,970 and $8,000,000 of future Incremental Revenue will be applied against the Level 2 Multiple. 
 First Installment Period 
 (v) In the event that the Incremental Revenue for the First
Installment Period is an amount less than $9,000,000, the First Installment shall be the amount of Incremental Revenue for the First Installment Period multiplied by the Level 1 Multiple; 
 Example: 
 Assuming the
Incremental Revenue for the First Installment Period is $8,500,000, then the First Installment shall be $8,500,000 x 0.18571 = $1,578,535 and $500,000 of future Incremental Revenue will be applied against the Level 1 Multiple. 
 (vi) In the event that the Incremental Revenue for the First Installment Period is an amount equal to or greater than $9,000,000, the
First Installment shall be determined by the following formula: 
 [Incremental Revenue for the First Installment Period up to $9,000,000 x Level 1 Multiple]
+ 
 [Incremental Revenue for the First Installment Period equal to or greater than $9,000,000 but less than $20,000,000 x Level 2 Multiple] + [Incremental
Revenue for the First Installment Period equal to or greater than $20,000,000 but less than $33,000,000 x Level 3 Multiple]; 
 Examples:

 Assuming the Incremental Revenue for the First Installment Period is $15,000,000, then the First Installment shall be
[$9,000,000 x 0.18571] + [$6,000,000 x 0.35286] = $3,788,550. 
 Assuming the Incremental Revenue for the First Installment
Period is $25,000,000, then the First Installment shall be [$9,000,000 x 0.18571] + [$11,000,000 x 0.35286] + [$5,000,000 x 0.57286]= $8,417,150. 
 Second Installment Period 
 (vii) In the event that the Accumulated Revenue for the Second Installment Period
is greater than the Accumulated Revenue for the First Installment Period and the Base Threshold, the Second Installment shall be the amount of Incremental Revenue for the Second Installment Period multiplied by the relevant Level Multiple as
determined by the following formula; 
  

 14 

 [Incremental Revenue for the Second Installment Period up to or equal to $9,000,000 x Level 1 Multiple] + [Incremental
Revenue for the Second Installment Period equal to or greater than $9,000,000 but less than $20,000,000 x Level 2 Multiple] + [Incremental Revenue for the Second Installment Period equal to or greater than $20,000,000 up to $33,000,000 x Level 3
Multiple]. 
 Example: 
 Assuming the Incremental Revenue for the First Installment Period is $12,000,000 and the Incremental Revenue for the Second Installment Period is $16,000,000, then the Second Installment shall be [$8,000,000 x 0.35286] + [$8,000,000 x
0.57286] = $7,405,760. 
 Example: 
 Assuming the Accumulated Revenue for the First Installment Period is $10,000,000 and the Incremental Revenue for the Second Installment Period is $14,000,000, then the Second Installment shall be [$9,000,000 x
0.18571] + [$5,000,000 x 0.35286] = $3,435,690. 
 Example: 
 Assuming the Incremental Revenue for the First Installment Period is $12,000,000 and the Accumulated Revenue for the Second Installment
Period is $20,000,000, then the Second Installment shall be zero. 
 Example: 
 Assuming the Incremental Revenue for the First Installment Period is $15,000,000 and the Incremental Revenue for the Second Installment
Period is $18,000,000, then the Second Installment shall be [$5,000,000 x 0.35286] + [$13,000,000 x 0.57286] = $9,211,480. 
 Example:

 Assuming the Incremental Revenue for the First Installment Period is $18,000,000 and the Incremental Revenue for the Second
Installment Period is $15,000,000, then the Second Installment shall be [$2,000,000 x 0.35286] + [$13,000,000 x 0.57286] = $8,152,900. 
 Third
Installment Period 
 (viii) In the event that the Accumulated Revenue for the Third Installment Period is greater than
the Accumulated Revenue for each of the First Installment Period, the Second Installment Period and the Base Threshold, the Third Installment shall be the amount of Incremental Revenue for the Third Installment Period multiplied by the relevant
Level Multiple as determined by the following formula; 
 [Incremental Revenue for the Third Installment Period up to or equal to $9,000,000 x Level 1
Multiple] + [Incremental Revenue for the Third Installment Period equal to or greater than $9,000,000 but less than $20,000,000 x Level 2 Multiple] + [Incremental Revenue for the Third Installment Period equal to or greater than $20,000,000 up to
$33,000,000 x Level 3 Multiple]. 
 Example: 
 Assuming the Incremental Revenue for the First Installment Period is $12,000,000, 

  

 15 

 
the Incremental Revenue for the Second Installment Period is $16,000,000, and the Incremental Revenue for the Third Installment Period is $5,000,000 then the
Third Installment shall be [$5,000,000 x 0.57286] = $2,864,300. 
 Example: 
 Assuming the Accumulated Revenue for the First Installment Period is $10,000,000, the Incremental Revenue for the Second Installment
Period is $14,000,000, and the Incremental Revenue for the Third Installment Period is $19,000,000 then the Third Installment shall be [$6,000,000 x 0.35286] + [$13,000,000 x 0.57286] = $9,564,340. 
 Example: 
 Assuming the
Incremental Revenue for the First Installment Period is $12,000,000, the Accumulated Revenue for the Second Installment Period is $20,000,000, and the Incremental Revenue for the Third Installment Period is $16,000,000 then the Third Installment
shall be [$8,000,000 x 0.35286] + [$8,000,000 x 0.57286] = $7,405,760. 
 Example: 
 Assuming the Incremental Revenue for the First Installment Period is $15,000,000, the Incremental Revenue for the Second Installment
Period is $18,000,000, and the Accumulated Revenue for the Third Installment Period is $40,000,000 then the Third Installment shall be zero. 
 Example: 
 Assuming the Incremental Revenue for the First Installment Period is $18,000,000, the Incremental Revenue
for the Second Installment Period is $15,000,000, and the Accumulated Revenue for the Third Installment Period is $34,000,000 then the Third Installment shall be zero. 
 (ix) Within one hundred eighty (180) days of the each Installment Period, the Purchaser shall prepare unaudited consolidated
management accounts of the Company for the relevant Installment Period in accordance with US GAAP and forward them to the Management Sellers Representative for approval in accordance with this Section 2.02(d)(ix) together with: (i) a
report showing the value of sales of the Respond Product; and (ii) a calculation of the relevant Installment . The Management Sellers Representative shall have thirty (30) days of receipt of the management accounts (“Installment
Approval Period”) to approve the relevant calculation. It is expressly agreed and understood that none of the Sellers, other than the Management Sellers Representative, shall have any right to review and approve of the management accounts
subject to this Section 2.02(d)(ix). In the event that the Management Sellers Representative either approves the relevant management accounts or no response is received from the Management Sellers Representative within the Installment Approval
Period, the relevant management accounts and calculation shall be deemed to be approved by the Sellers and shall be final, conclusive and binding. If the Management Sellers Representative disagrees with the relevant management accounts, the amount
of Respond Product sales or the amount of the relevant Installment , the Management Sellers Representative may, on or prior to the last day of the Approval Period, deliver a notice to the Purchaser (“Installment Objection”), which
must set forth in reasonable detail the Management Sellers Representative’s objection, specify those items or amounts with which the Management Sellers Representative disagrees, and (insofar as it is reasonably practicable) include a
calculation of the relevant Installment that the Management Sellers Representative 

  

 16 

 
believes should be payable based on such objections. In the event of an Installment Objection being served on the Purchaser by the Management Sellers
Representative, the Purchaser and the Management Sellers Representative shall, during the thirty (30) days following such delivery or any mutually agreed extension thereof, use their commercially reasonable efforts to reach agreement on the
disputed items and amounts in order to determine the amount of the relevant management accounts. If, at the end of such period or any mutually agreed extension thereof, the Purchaser and the Management Sellers Representative are unable to resolve
their disagreements, the dispute will be referred to an Expert for determination in accordance with Schedule 4. 
 (e) Tranche 2
Consideration – Payment. Notwithstanding the subsequent sentence and for the avoidance of doubt, no Tranche 2 Consideration shall be payable by the Purchaser until a date which is at least eighteen (18) months after Closing. Subject
always to the preceding sentence, the Tranche 2 Consideration shall be payable in three installments due within: (i) ten (10) Business Days after the final determination (whether by approval or deemed approval by the Management Sellers
Representative or determination by the Expert) of the First Installment (“First Installment Payment Date”), (ii) ten (10) Business Days after the final determination (whether by approval or deemed approval by the
Management Sellers Representative or determination by the Expert) of the Second Installment (“Second Installment Payment Date”), and (iii) ten (10) Business Days after the final determination (whether by approval or deemed
approval by the Management Sellers Representative or determination by the Expert) of the Third Installment (“Third Installment Payment Date”). In the case of Mr. Heavey and Mr. Breare only, and notwithstanding anything
herein to the contrary, any amounts that may be payable to Mr. Heavey or Mr. Breare as Tranche 2 Consideration pursuant to the terms hereof shall be satisfied in full by the issuance by the Purchaser of Series A Loan Notes on the relevant
Installment Payment Date having a aggregate face value equal to the cash amounts that would otherwise be paid to Mr. Heavey and Mr. Breare (as the case may be), in favor of Mr. Heavey and Mr. Breare (as the case may be).
Notwithstanding the foregoing, each Series A Loan Note shall be redeemable in cash according to its terms, without set off withholding or deduction other than in accordance with this Agreement, the Series A Loan Note Instrument and/or otherwise as
may be required by law (which may include, for the avoidance of doubt, any Tax withholding). Any entitlement to Tranche 2 Consideration shall not be conditional on any Management Seller being or continuing to be an employee of the Company or any
Affiliate of CDC. 
 (f) Apportionment of Tranche 1 Consideration and Tranche 2 Consideration. All amounts paid to the Sellers under
this Agreement (including both the Tranche 1 Consideration and the Tranche 2 Consideration) shall be apportioned between the Sellers in accordance with the Schedule 1 attached hereto, which each Seller acknowledges and agrees represents the final
pro-rata portion of the Total Consideration payable to each such Seller pursuant to the terms hereof. 
 (g) Holdback. Any unpaid
Tranche 2 Consideration earned by the Management Sellers shall be available to the Purchaser to the extent and satisfaction of any Claim (as defined in Schedule 5) during the Hold Back Period (“Hold Back Amount”). The parties shall
comply with Schedule 5 in relation to any Hold Back Amount(s). 
 (h) Transaction Incentives. The Sellers covenant and agree to pay
from either the proceeds of the Tranche 1 Consideration or from the Company’s cash funds prior to Closing £80,000 payable to T. Pickworth, U$168,762.93 payable to B. Passmore and U$82,831.11 payable to P. Elswood. The Management Sellers
covenant and agree to pay from either the proceeds of the Tranche 1 Consideration or from the Company’s cash funds prior to Closing all other amounts (if any) payable to current or former employees of the Company and/or any Subsidiary or any
third parties by way of bonuses, commissions, and other incentives associated with and payable as a result of transactions contemplated under this Agreement (the “Transaction Incentives”), save to the extent that such payments are
fully provided for in the Purchaser Closing Balance Sheet. 
  

 17 

 (i) Employee Retention Pool. (i) The Purchaser undertakes to establish or procure the
establishment of an employee retention pool pursuant to the terms of this Section 2.02(i), which shall have the purpose of providing incentive retention compensation to employees of the Company from time to time (the “Employee Retention
Pool”). 
 (ii) If and only if Tranche 2 Consideration is due and payable, and then, only to the extent any Tranche 2 Consideration
is due and payable, the Purchaser undertakes at the same time as any such Tranche 2 Consideration may be due and payable, to make or to procure that the Guarantor makes a payment (the “Purchaser Cash Contribution”) to the Employee
Retention Pool of an amount which would be equal to the amount of Tranche 2 Consideration calculated in accordance with Section 2.02(d) if the Level 1 Multiple, Level 2 Multiple and Level 3 Multiple were substituted with the following
multiples: 
  

	 	(A)	Level 1 Multiple: 0.01429 

  

	 	(B)	Level 2 Multiple: 0.02714 

  

	 	(C)	Level 3 Multiple: 0.04407 

 , provided,
always, that in no event shall the maximum aggregate amount of the Purchaser Cash Contribution be more than US$1,000,000. For the avoidance of doubt, in the event that pursuant to Section 2.02(g) hereof, any amounts are held back by
Purchaser, then, notwithstanding anything herein to the contrary, the Purchaser shall be entitled to hold back from the Purchaser Cash Contribution all or such portion of the Purchaser Cash Contribution that equals the proportion to which the amount
held back pursuant to Section 2.02(g) bears to the total Tranche 2 Consideration payable (but for such hold back) at the time of such hold back (the “Held-Back Purchaser Cash Contribution”). The Held-Back Purchaser Cash
Contribution shall be payable only if and to the extent and at the same time that the Purchaser is required to pay to the Management Sellers the amount of Tranche 2 Consideration so held back. 
 (iii) If and only if Tranche 2 Consideration is due and payable, and then, only to the extent any Tranche 2 Consideration is due and payable, in addition
to the obligation contained in Section 2.02(i)(ii), the Purchaser shall make or procure that either the Guarantor or CDC makes a contribution (the “CDC Cash/Stock Contribution”) to the Employee Retention Pool of an amount equal to the
Purchaser Cash Contribution and the CDC Cash/Stock Contribution shall be made at the same time as the Purchaser Cash Contribution is payable provided always that in no event shall the aggregate maximum amount of the Purchaser Cash
Contribution and the CDC Cash/Stock Contribution together exceed $2,000,000 (the “Contribution Limit”). 
 (iv) The CDC
Cash/Stock Contribution shall be comprised of such combination of cash and/or equity incentives as CDC Software and/or CDC may determine in its sole discretion. 
 (v) Subject always to paragraph (ii) of this section, the aggregate value of the CDC Cash/Stock Contribution shall be determined, in the case of options and/or other equity incentives as well using the
Black-Scholes method of valuation, applied using reasonable assumptions determined by CDC Software or CDC in its sole discretion. The aggregate amount of the CDC Cash/Stock Contribution so contributed to the Employee Retention Pool shall be
monitored on a periodic basis by CDC Software and/or CDC and in no event shall CDC Software, CDC or any of their Affiliates be obligated to contribute any amounts in excess of the Contribution Limit. 
  

 18 

 (vi) With respect to any equity incentives comprising the CDC Cash/Stock Contribution, such contribution
shall be governed by, and subject to in all respects to, the terms and conditions of the CDC Software Corporation Stock Incentive Plan and/or the CDC Corporation Stock Incentive Plan, as in effect from time to time (the “Plan”) and
the approval of the relevant CDC or CDC Software board or delegated subcommittee. 
 (vii) The Purchaser or any of its Affiliates shall be
entitled to withhold from the Purchaser Cash Contribution and/or the CDC Cash/Stock Contribution such amounts for applicable Tax withholding and NIC costs as may be required by law. 
 (viii) Insofar as the Employee Retention Pool shall include stock options and/or other equity incentives, it shall be administered in accordance with the
Plan and shall be consistent with CDC and CDC Software’s internal policies and procedures. Each of Mr. Heavey and a representative nominated by the Purchaser or such other persons as may be designated by CDC or CDC Software
(together, the “ERP Executives”) shall, from time to time, confer in good faith to recommend periodic allocations and grants (“ERP Awards”) from the Employee Retention Pool, but only to the extent amounts are
available in the Employee Retention Pool at such time. The ERP Executives shall consider such factors as they may deem advisable and in the best interests of the Company when considering such ERP Awards. The ERP Executives shall recommend ERP Awards
insofar as they comprise of stock options or other equity incentives to the Administrator (as defined in the Plan) of the Plan, who shall, in its sole and reasonable discretion, approve or disapprove of the recommended ERP Awards. 
 (ix) For purposes of clarity and notwithstanding any other provision herein to the contrary, no amounts contributed by CDC and/or CDC Software pursuant
to this Section 2.02(i) shall include any gross-up or similar provision requiring an upward adjustment for Taxation or other purposes. 
 (j) Receivables. In the event that: (i) any Net Receivables contained in the Purchaser Closing Balance Sheet (“Closing Balance Sheet Net Receivables”) are not actually received by the Company within one hundred
eighty (180) days following Closing, the difference between the Closing Balance Sheet Net Receivables and the Closing Balance Sheet Net Receivables actually received by the Company shall be deducted and set off on a one-to-one basis by
Purchaser from any Installment; or (b) any gross receivables of the Company as at Closing for which an allowance or provision has been made in the Purchaser Closing Balance Sheet (the “Allowed For Receivables) are actually received
by the Company within one hundred eighty (180) days following Closing, eighty-five percent (85%) of the difference between the Closing Balance Sheet Net Receivables and the Closing Balance Sheet Net Receivables (together with the Allowed
For Receivables) actually received by the Company shall be added to the Tranche 2 Consideration on a one-to-one basis. 
 2.03
Closing. The closing for the purchase and sale of the Shares (the “Closing”) shall take place on the date of this Agreement (the “Closing Date”) at the offices of the Company at Regus House Fairbourne Drive,
Atterbury Milton Keynes, MK10 9RG. 
 2.04 Operational Control of the Company. From and after the Closing until the end of the Third
Installment Date, the Purchaser shall, and shall procure that the Company and its Subsidiaries shall, comply with the provisions set out in Schedule 7. 
 2.05 Share Options. Effective from the Closing Date, each of the Management Sellers covenant and agree that each and every outstanding share option or similar right to purchase any Shares or any
shares of any Subsidiary (“Share Options”), shall be either cancelled, terminated or 

  

 19 

 
exercised in accordance with its terms so that effective as of the Closing Date there shall be no unexercised outstanding Share Options whatsoever and, prior
to the Closing Date, the board of directors of the Company shall adopt appropriate resolutions and take all other actions necessary to terminate the equity-compensation plans maintained by the Company and its Subsidiaries and all individual option
agreements outside of the Share Plans as of the Closing Date. 
 Section 3. Warranties of the Sellers. 
 3.01 Each Non-Management Seller warrants in the terms of the Warranties contained in Sections 3.03(c), and Section 3.05(vii). 
 3.02 Each of the Management Sellers jointly and severally warrants on behalf of himself or itself (as appropriate), to and for the benefit of, the
Purchaser as of the Closing Date, the Tax Warranties and the following: 
 3.03 Authority. (a) Each Management Seller has all
requisite authority and approval required to enter into, execute and deliver this Agreement and the Transaction Documents and to perform his obligations hereunder and each of the other documents required to be entered into pursuant hereto. The Board
of Directors of the Company and the Sellers have approved the transactions contemplated by this Agreement and each of the Transaction Documents (as appropriate). The affirmative votes of the holders of a majority of all Shares of the Company issued
and outstanding are the only votes of the holders of the Company’s shares necessary to approve this Agreement and the Transaction Documents and the transactions contemplated therein. This Agreement and the Transaction Documents have been duly
and validly executed and delivered by each Management Seller and constitutes a legal, valid and binding obligation of the Management Sellers enforceable against the Management Sellers in accordance with its terms. 
 (b) No meeting has been convened or resolution proposed, or petition presented, and no order has been made, for the winding-up of the Company, any
Subsidiary or any Management Seller. No distress, execution or other similar order or process has been levied on any of the property or Assets of the Company, any Subsidiary or any Management Seller. No voluntary arrangement has been proposed or
reached with any creditors of the Company, any Subsidiary or any Management Seller. No receiver, receiver and manager, provisional liquidator, liquidator or other officer of the court has been appointed in relation to the Company, any Subsidiary or
any Management Seller. The Company, each Subsidiary and each Management Seller is able to pay its debts as and when they fall due and neither the Company, nor any Subsidiary or Management Seller, is insolvent (net liabilities greater than net
assets). 
 (c)(i) Each Non-Management Seller has full legal capacity, power and authority to enter into, execute and deliver this Agreement
and the stock transfer form transferring the Shares registered in its name, and to perform each of their obligations hereunder. 
 (ii) All
requisite corporate authority to execute and deliver this Agreement and the stock transfer form transferring the Shares registered in its name for each Non-Management Seller has been duly and properly obtained. This Agreement and the stock transfer
form transferring the Shares registered in its name have been duly and validly executed and delivered by each Non-Management Seller and when executed will constitute a legal, valid and binding obligation of each Non-Management Seller enforceable
against each Non-Management Seller in accordance with its terms. 
 (iii) No meeting has been convened or resolution proposed, or petition
presented, and no order has been made, for the bankruptcy of any Non-Management Seller. No distress, execution or other similar order or process has been levied on any of the property or assets of each Non-Management Seller. No voluntary arrangement
has been proposed or reached with any creditors of 

  

 20 

 
each Non-Management Seller. No receiver, receiver and manager, provisional liquidator, liquidator or other officer of the court has been appointed in
relation to any Non-Management Seller. Each Non-Management Seller is able to pay its debts as and when they fall due and no Non-Management Seller is insolvent (net liabilities greater than net assets). 
 (iv) The execution, delivery and performance by the Non-Management Sellers of this Agreement do not, and the performance by each Non-Management Seller of
its obligations under this Agreement will not, conflict with or result in a violation or breach of any term or provision of any agreement between any Non-Management Seller and any third party. 
 3.04 Organization and Authorization of the Company. (a) The Company and its Subsidiaries are corporations duly organized, validly existing,
and in good standing under laws of their jurisdictions of incorporation and have all corporate powers and all governmental licenses, authorizations, permits, consents and approvals required to carry on their businesses as now conducted and to own,
use and lease their assets and properties. The Company and its Subsidiaries are duly qualified to do business in each jurisdiction where they carry on business and are in good standing in each jurisdiction where they carry on business. 

(b) During the preceding twelve (12) months from the Closing Date, the Company and its Subsidiaries have only conducted business in the United
Kingdom, Ireland, the U.S. and Africa, and are duly qualified, licensed or admitted to do business in each of such jurisdiction to the extent that such qualification, license or admission is required by that jurisdiction’s laws. The Company and
its Subsidiaries have full corporate power to own their properties, assets and business and to carry on their business operations and have done everything necessary to do business lawfully in the aforementioned jurisdictions. 
 (c) The name of each director and officer of the Company and its Subsidiaries on the Closing Date, and the position with the Company and/or Subsidiaries
held by each, are listed in Schedule 2. 
 (d) Prior to the execution of this Agreement, the Management Sellers, the Company and its
Subsidiaries have made available to the Purchaser true and complete copies of the Memorandum and Articles of Association of the Company and its Subsidiaries as in effect on the date hereof. 
 (e) The Company and its Subsidiaries have filed and/or registered all company filings where required to be filed and/or registered. 
 3.05 Capitalization & Ownership. (a) (i) As at the Closing Date, the issued share capital of the Company consists of 2,305,192
shares, which consists of: (i) 56,542 A ordinary shares, of which 36,187 A ordinary shares are registered in the name of 3i and 20,355 A ordinary shares are registered in the name of Parkmead; (ii) 50,000 ordinary shares, of which 24,277
shares are registered in the name of Mr. James Heavey, 16,569 ordinary shares are registered in the name of Mr. Cathal Naughton, and 9,154 ordinary shares are registered in the name of Mr. Michael Breare; and (iii) 2,198,650
deferred shares, of which 909,127 deferred shares are registered in the name of 3i and 1,289,523 are registered in the name of Parkmead. All of the issued shares have been duly authorized and validly issued to the Sellers and are fully paid and
non-assessable and have been issued in compliance with all applicable Law, including securities Laws, and was not issued in violation of or subject to any preemptive rights, put or call rights or obligations, rights of first refusal, anti-dilution
rights or liquidation rights or other rights to subscribe for or purchase securities of the Company; 
 (ii) As at the Closing Date, the
issued share capital of RSL consists of 2,249,418 shares, which consists of: (i) 1,168,500 A ordinary shares, all of which are registered in the name of the Company; (ii) 580,918 ordinary shares, all of which are registered in the name of
the Company; and 

  

 21 

 
(iii) 500,000 preference shares, all of which are registered in the name of the Company. All of the issued shares of RSL have been duly authorized and
validly issued and/or transferred to the Company and are fully paid and non-assessable and have been issued in compliance with all applicable Law, including securities Laws, and was not issued in violation of or subject to any preemptive rights, put
or call rights or obligations, rights of first refusal, anti-dilution rights or liquidation rights or other rights to subscribe for or purchase securities of RSL; 
 (iii) As at the Closing Date, the issued share capital of RUKL consists of 50,000 shares, which consists of 50,000 ordinary shares, all of which are registered in the name of RSL. All of the issued shares of RUKL have
been duly authorized and validly issued and/or transferred to the Company and are fully paid and non-assessable and have been issued in compliance with all applicable Law, including securities Laws, and was not issued in violation of or subject to
any preemptive rights, put or call rights or obligations, rights of first refusal, anti-dilution rights or liquidation rights or other rights to subscribe for or purchase securities of RUKL; 
 (iv) As at the Closing Date, the issued share capital of Respond RTL consists of 100 shares, which consists of 100 ordinary shares, all of which are
registered in the name of RSL. All of the issued shares of RTL have been duly authorized and validly issued and/or transferred to RSL and are fully paid and non-assessable and have been issued in compliance with all applicable Law, including
securities Laws, and was not issued in violation of or subject to any preemptive rights, put or call rights or obligations, rights of first refusal, anti-dilution rights or liquidation rights or other rights to subscribe for or purchase securities
of RTL; and 
 (v) As at the Closing Date, the Company and/or its Subsidiaries are the registered and beneficial owner of all issued and
outstanding share capital of Respond, Inc., a Delaware corporation (“RINC”). All of the issued and outstanding shares of RINC have been duly authorized and validly issued and/or transferred to the Company and are fully paid and
non-assessable and have been issued in compliance with all applicable Law, including securities Laws, and was not issued in violation of or subject to any preemptive rights, put or call rights or obligations, rights of first refusal, anti-dilution
rights or liquidation rights or other rights to subscribe for or purchase securities of RINC. 
 (vi) Aside from the Shares, there are no
authorized, issued or outstanding shares of the Company. The Shares comprise the whole of the issued share capital of the Company. The Sellers are the only registered holders and beneficial owners of the Shares. 
 (vii) Each Non-Management Seller owns the Shares registered in its name (as set out in Schedule 1) free from Encumbrances and such shares are fully paid
up and non-assessable. 
 (viii) Respond Solutions, Inc., is not a subsidiary or affiliate of the Company or any Subsidiary. 
 (b) The Shares and any ownership interest in any Subsidiary is not, and shall not be, encumbered by any Lien or other interests of any other third party
whatsoever. The Sellers, collectively, are the registered and beneficial owners of all of the Shares, and the Company is the registered and beneficial owner of all of the ownership interests in the Subsidiaries, free and clear of any Lien and any
other limitation or restriction (including without limitation, any restriction on the right to vote, sell or otherwise dispose of such ownership interests). The Sellers will transfer and deliver to the Purchaser at the Closing valid title to the
Shares free and clear of any Lien and any similar limitation or restriction. None of the Shares or any ownership interest in any Subsidiary has been transferred, sold, exchanged, assigned or given as a gift, granted as a security interest, pledged
or encumbered, made part of any voting trust or other agreement or arrangement with respect to the transfer of voting rights therein. 
 (c)
Except for the Shares and any ownership interest of the Company in any Subsidiary there are no outstanding: (i) shares or voting securities of the Company or any Subsidiary; (ii) securities 

  

 22 

 
of the Company or any Subsidiary convertible into or exchangeable for shares or voting securities of the Company or any Subsidiary; or (iii) options or
other rights to acquire from the Company or any Subsidiary, pre-emptive rights, conversion rights, Liens or any other obligation of the Company or any Subsidiary to issue, any Shares, voting securities or securities convertible into or exchangeable
for Shares or voting securities of the Company or any Subsidiary (collectively referred to as “Company Securities”). There is no option, right to acquire, pre-emptive rights, conversion rights, mortgage, charge, pledge, Lien or
other form of security or any other agreement or commitment of any nature whatsoever, over or affecting the Shares or ownership interest in any Subsidiary and there is no agreement or commitment to give or create any of the foregoing. There are no
outstanding obligations of the Company or any Subsidiary to repurchase, redeem or otherwise acquire any Company Securities. Any outstanding options or other rights to acquire shares or other ownership rights from the Company or any Subsidiary,
pre-emptive rights, conversion rights, Liens or any other obligation of the Company or any Subsidiary to issue, any Company Securities as at the Closing Date shall be either duly and properly cancelled and terminated in full by the Company or any
Subsidiary and any other party or recipient or exercised prior to the Closing. 
 (d) Except as set forth in Section 3.05(d) of the
Disclosure Letter, there is no restriction(s) on the sale or transfer of any of the Shares to the Purchaser, or the indirect transfer of any ownership interest in the Subsidiaries to the Purchaser, whatsoever. 
 (e) During the Ownership Period, each of the issued and outstanding ownership interests (including, without limitation, each option or other right to
purchase or acquire any such membership or other ownership interests), in the Company or any Subsidiary, including, without limitation, the Shares, has been issued in full compliance with the Constitutions applicable thereto and in full compliance
with all applicable securities Laws, rules, regulations and requirements. Each subsequent transfer during the Ownership Period, if any, of any such membership interests, was made in full compliance with the Constitutions applicable thereto and, in
full compliance with all applicable securities Laws, rules, regulations and requirements 
 3.06 Subsidiaries. Except as listed in
Schedule 2, as at the Closing Date, the Company has no Subsidiaries. Notwithstanding anything herein to the contrary, any and all liabilities whatsoever with respect to or relating to Respond, Inc. and all other Subsidiaries have been fully and
completely paid by the Company prior to Closing. 
 3.07 Noncontravention. The execution, delivery and performance by the Sellers of
this Agreement and the Transaction Documents do not, and the performance by the Sellers and the Company of their respective obligations under this Agreement and the Transaction Documents and the consummation of the transactions contemplated hereby
will not: 
 (a) conflict with or result in a violation or breach of any of the terms, conditions or provisions of the Constitution or any
resolutions of the shareholders or directors of the Company or any Subsidiary; 
 (b) conflict with or result in a violation or breach of any
term or provision of any Law or Order of any governmental, administrative or regulatory body applicable to any Seller, the Company or any Subsidiary, or any of their respective Assets and properties; nor 
 (c)(i) except as set forth in Section 3.07(c) of the Disclosure Letter, conflict with or result in a violation or breach of, (ii) constitute a
default under, (iii) require the Sellers, the Company or any Subsidiary to obtain any consent, approval or action under, (iv) result in or give to any Person any right of termination, cancellation, acceleration or modification in or with
respect to, (v) result in or give to any Person any additional rights or entitlement to increased, additional, accelerated or guaranteed payments under, or (vi) result in the creation or imposition of any Lien upon the Sellers, the Company
or 

  

 23 

 
any Subsidiary, or any of their respective assets or properties under, any contract or license to which the Sellers, the Company or any Subsidiary is a party
or by which any of their respective assets or properties is bound. 
 3.08 Governmental Approvals and Filings. The execution, delivery
and performance by the Sellers of this Agreement and the Transaction Documents and the consummation of the transactions contemplated hereby require no action by or in respect of, or filing with, any governmental body, agency or official. 

3.09 Books and Records. Except as set forth in Section 3.09 of the Disclosure Letter, the minute books, statutory books and registers and
other similar records of the Company and all Subsidiaries, as made available to the Purchaser prior to the execution of this Agreement, contain a true and accurate record of all material actions taken at all Board, Board committee and shareholder
meetings and by all written consents in lieu of meetings of the equity holders, the boards of directors and committees of the boards of directors of the Company and all Subsidiaries, respectively. The share transfer ledgers and other similar records
of the Company and all Subsidiaries, as made available to the Purchaser prior to the execution of this Agreement, accurately reflect all record transfers prior to the execution of this Agreement in the equity of the Company and all Subsidiaries.

 3.10 No Undisclosed Liabilities or Indebtedness. (a) Except for liabilities reflected in the unaudited balance sheets
of the Company and all Subsidiaries, as of January 31, 2007 and Closing, so far as the Management Sellers are aware the Company and all Subsidiaries do not have any liability (whether absolute, accrued, contingent, or otherwise) which would
ordinarily be provided or reflected in such accounts under UK GAAP or otherwise. Without limiting the preceding paragraph, except as set forth in the unaudited balance sheets of the Company and all Subsidiaries as of January 31, 2007 and
Closing, the Company and any Subsidiaries do not have any liability for: (i) indebtedness for money borrowed; (ii) the deferred purchase price of property or services; (iii) capital lease obligations; (iv) conditional sale or
other title retention agreements; or (v) guarantees or other third party undertakings for any liability or obligation of any other Person for any matter which relates to or affects or will affect such parties or any of the Assets. 

 3.11 Litigation/Products. (a) Except as set forth in Section 3.11 of the Disclosure Letter, there is no action, suit,
arbitration proceeding, inquiry, claim or investigation pending against, or threatened against or affecting either the Company, any Management Seller, any Subsidiary or any of their respective properties or assets before any court or arbitrator or
any governmental body, agency or official (whether or not the defense thereof or liabilities in respect thereof are covered by insurance) by or on behalf of any third party, any Seller, any employee, any contractor or any government body or agency
(any “Proceeding”). So far as each Management Seller is aware after due and proper inquiry, there are no facts existing as at the Closing Date would likely give rise to any Proceeding. 
 (b) Neither the Company, any Subsidiary nor any Management Seller (as it relates to the Company or any Subsidiary) have commenced or settled any legal
proceedings within the last five (5) years. There are no outstanding orders by which the Company, any Subsidiary or any Management Seller (as it relates to the Company any Subsidiary) or any of their securities, assets, properties or businesses
are bound. 
 (c) No claim has been made against the Company or any Subsidiary in connection with any defective product or services supplied
by it in the course of carrying on its business and the Company and each Subsidiary has maintained insurance that is customary to the applicable industry and type of business, for at least the last five (5) years against any such claim.

 (d) Each of the products produced or sold by the Company and each Subsidiary is, and at 

  

 24 

 
all times up to and including the Closing Date, has been: (i) in compliance in all material respects with all applicable federal, state, local and
foreign Laws and regulations; and (ii) fit for the ordinary purposes for which it is intended to be used and conforms to any promises or affirmations of fact made in respect of such product or in connection with such sale. there is no design
defect with respect to any such products and each of such products contains adequate warnings, presented in a reasonably prominent manner, in accordance with all applicable laws, rules and regulations and current industry practice with respect to
its content and use. 
 3.12 Compliance with Laws and Orders. The Company, each Subsidiary and each Management Seller are not in
violation of, and has not violated since the Inception Date in each case which would have a Material Adverse Effect, and is not under investigation with respect to and has not been threatened to be charged with or given notice of any violation of,
any Law or Order. Neither (so far as the Management Sellers are aware) the Management Seller’s nor any of the Company’s or any Subsidiary’s directors, officers, or key employees (including the Key Employees) in relation to the Company
or any Subsidiary, has committed any crime or any material breach of the requirements or conditions of any Law. 
 3.13 Employees.
(a) The Disclosure Letter contains a list of: (i) the names, commencement date, title, annual salaries, other compensation (including any bonus or commission entitlements), any other benefits provided or which the Company or any Subsidiary
is bound to provide (whether now or in the future) of all employees and officers of the Company or any Subsidiary and details of any other material terms and conditions of employment and contractors of such persons, all of which information is true
and complete in all respects. None of the employees of the Company or any Subsidiary have indicated to any Management Seller, the Company or any Subsidiary, that he/she intends to resign or retire as a result of the transaction contemplated by this
Agreement or otherwise within two (2) years after the Closing Date. 
 (b) The Disclosure Letter contains an accurate and complete list
of each Employee Plan and the Company and each Subsidiary has not made any commitments to establish new or to expand existing Employee Plans. The Company and each Subsidiary has performed all obligations required to be performed under the Employee
Plans and each Employee Plan has been established and maintained in accordance with its terms and in compliance with all applicable Laws and Orders. There are no actions, suits or claims which have been filed, or, threatened or anticipated against
any Employee Plan. Each Employee Plan can be amended, terminated or otherwise discontinued after the Closing Date in accordance with its terms, applicable Laws or Orders, without liability to the Company or any Subsidiary (other than ordinary
administration expenses incurred in a termination event). There are no inquiries or proceedings that have been filed, or, threatened by any Governmental or Regulatory Authority with respect to any Employee Plan. The Management Sellers, the Company
and each Subsidiary have furnished to the Purchaser copies of all Employee Plans (and if applicable, related trust agreements) and all amendments thereto and written interpretations thereof together with the three most recent annual reports and most
recent actuarial valuation report prepared in connection with any Employee Plan. 
 (c) The Disclosure Letter contains a list of all
contributions and payments accrued under each Employee Plan and Benefit Arrangement, determined in accordance with prior funding and accrual practices, as adjusted to include proportional accruals for the period ending the Closing Date. 

(d) Except as set forth in the Disclosure Letter, the Company and each Subsidiary have paid to the relevant Governmental and Regulatory Authority, all
Taxes, all contributions and other levies due in respect of all of the Company’s and each Subsidiary’s employees and contractors (past and present) in respect of their employment or services up to the Closing Date. 
 (e) With respect to each agreement with employees and contractors of the Company and each Subsidiary, the Company and each Subsidiary have duly performed
and complied with all of 

  

 25 

 
their obligations (including, but not limited to, the making all payments for services rendered, and other benefits). The Company and each Subsidiary have
duly complied with applicable employment regulations and Laws respecting employment and employment practices, terms and conditions of employment, wages and hours, and are not engaged in any unfair labor practices. Each of the contracts entered into
with employees, consultants or contractors of the Company or any Subsidiary is enforceable against the parties to it in accordance with its terms and there is no party in breach of, or in default under, such contract. 
 (f) Except as set forth in Section 3.13(f) of the Disclosure Letter, each of the employees and contractors of the Company and each Subsidiary have
executed a contractual agreement that contains: (i) a confidentiality clause; and (ii) an assignment of all rights that each employee or contractor might have in any of the Intellectual Property to the Company or a Subsidiary. No employee
or contractor has any rights to the Intellectual Property and IP Assets, including the right to receive royalties or other payments from the Company or any Subsidiary. 
 (g) Neither the Company, any Subsidiary, nor any Management Seller has offered, promised or agreed for the future any variation in any employment or contractor/service agreement. Without limiting the generality of the
preceding sentence, since June 30, 2006 there has been no material change in the remuneration or benefits of any executives, directors, officers or Key Employees of the Company or any Subsidiary. 
 (h) Except as set forth in Section 3.13(h) of the Disclosure Letter, there is not in existence and neither the Company, any Subsidiary, nor any
Management Seller has proposed or are proposing to introduce any bonus, profit sharing scheme, share option scheme, share incentive scheme or any other scheme or arrangement under which the employees, any contractors or any of them are or is or
would be entitled to participate in the profits or shares of the Company or any Subsidiary. 
 (i) There is no industrial action or dispute
threatened or existing or anticipated in respect of or concerning any of the current or former employees of the Company or any Subsidiary relating to or based on any facts or circumstances (or part thereof) arising or existing prior to Closing
(“Employee Litigation”). There are no facts or circumstances which are reasonably likely to result in such a dispute. 
 (j)
Each employee of the Company and any Subsidiary has been devoting 100% of his/her time during the Company’s or such Subsidiary’s business hours to the conduct of the Company’s or such Subsidiary’s business. 
 (k) Except as set forth in Section 3.13(k) of the Disclosure Letter, no loans or other advances have been made to any director, officer, employee or
contractor of the Company or any Subsidiary. All such advances were incurred and made in the ordinary course of business. 
 (l) Except as
set forth in Section 3.13(l) of the Disclosure Letter, since June 30, 2006, the Company and each Subsidiary has not considered dismissing any employee or terminating any contractor of the Company or such Subsidiary. Neither the Company nor
any Subsidiary has any outstanding severance or other obligations or agreements with respect to any former employee, consultant, officer or director. 
 (m) The Company and each Subsidiary have no current or projected liability in respect of post-employment or post retirement health or medical or life insurance benefits for retired, former or current employees or the
Company or any Subsidiary. 
 (n) Except as set forth in Section 3.13(n) of the Disclosure Letter, no employee or former 

  

 26 

 
employee of the Company or any Subsidiary will become entitled to any bonus, retirement, severance, job security or similar benefit or enhanced such benefit
(including acceleration of vesting or exercise of incentive award) as a result of the transaction contemplated hereby. 
 (o) Except as set
forth in Section 3.13(o) of the Disclosure Letter, there are no Transaction Incentives. The Company and its Subsidiaries have no obligations to any of its current employees, officers or directors for any bonus, commission or similar incentive
associated with and payable as a result of the sale of Shares under this Agreement or the consummation of the transactions contemplated by this Agreement, except for the Transaction Incentives. 
 3.14 Real Property and Business Premises. (a) Neither the Company nor any Subsidiary owns any freehold or real property whatsoever.

 (b) All of the commercial leases, subleases and Office Occupancy Agreements executed by the Company or any Subsidiary are in full force
and effect, and the Company and each Subsidiary has not received notice of any claim of any sort that is currently outstanding and that has been asserted by anyone adverse to the rights of the Company or any Subsidiary under any of the leases,
subleases or Office Occupancy Agreements, or affecting or questioning the rights of the Company or any Subsidiary to the continued possession of the commercial leased, subleased or otherwise occupied premises under any such commercial lease or
sublease. 
 (c) The Disclosure Letter accurately describes all the business premises leased or occupied by the Company and each Subsidiary
(the “Business Premises”). The Company and each Subsidiary has exclusive occupation of the Business Premises. The Company or any Subsidiary is not in breach of any term or obligation of any leases or licenses relating to the
Business Premises. The Company and each Subsidiary have made all payments required by and has otherwise complied with the terms of each of the leases and/or licenses relating to the Business Premises. There are no current disputes relating to any of
the Business Premises or their use. 
 3.15 Tangible Personal Property and Plant & Equipment. (a) The Company and each
Subsidiary is in possession of and has good title to, or has valid leasehold interests in or valid rights under contract to use, all tangible personal property including all plant and equipment used in the conduct of its business, including all
tangible personal property reflected on the balance sheets included in the Closing Balance Sheet and tangible personal property acquired since the Inception Date other than property disposed of since such date in the ordinary course of business. All
such tangible personal property including all plant and equipment that is owned by the Company or each Subsidiary is free and clear of all Liens and is in good working order and condition, ordinary wear and tear excepted, and its use complies in all
material respects with all applicable Laws. 
 (b) The Disclosure Letter includes a complete list of all items of plant and equipment owned
by the Company and each Subsidiary with a written down value in excess of £10,000 as at the Closing Date (“Plant and Equipment”). Each item of Plant and Equipment is in good repair taking into account normal wear and tear, is
in satisfactory working condition and capable of doing the work for which it is designed and is physically in the possession of the Company and each Subsidiary. 
 (c) The Disclosure Letter includes a complete list of all Equipment Leases. The Company and each Subsidiary has made all payments required by and has otherwise complied with the terms of each of the Equipment Leases.

 3.16 Intellectual Property. (a) The Company and each Subsidiary owns or has the right to use pursuant to license, sublicense,
agreement or permission all the Intellectual Property set out in the Disclosure Letter. 
  

 27 

 (b) The Company and each Subsidiary have not, on its own behalf or through an agent, infringed upon,
misappropriated, or used without a required license, any Intellectual Property of third parties. The Company and each Subsidiary have not on its own behalf or through an agent, received any written charge, complaint, claim, demand, or notice
alleging any such infringement, misappropriation, or misuse that has not been finally resolved (including any claim that the Company or any Subsidiary must license or refrain from using any Intellectual Property of any third party). No third party
has infringed upon, misappropriated, or otherwise misused any Intellectual Property that would have a Material Adverse Effect on the Company or any Subsidiary. 
 (c) The Disclosure Letter identifies each registered and unregistered (as indicated) copyright, trademark, trade name, service mark, domain name, patent, trade secret or other registration or other Intellectual
Property which is owned by the Company or any Subsidiary and identifies each license, agreement, or other permission currently in effect pursuant to which the Company or any Subsidiary has granted to any third party rights with respect to any of the
Intellectual Property other than in the ordinary course of business. The Company and each Subsidiary has delivered to the Purchaser correct and complete copies of all such registered and unregistered copyrights, trademarks, trade names, mask works,
service marks, domain names, patents, registrations, applications, licenses, agreements, and permissions or other Intellectual Property (as amended to date) and have made available to the Purchaser correct and complete copies of all other written
documentation evidencing ownership and prosecution (if applicable) of rights of each such item. With respect to each item of Intellectual Property identified in the Disclosure Letter: 
 (i) the Company and each Subsidiary possess all right, title, and interest in and each item, or has the valid right to use each item, free
and clear of any Liens and the Company and each Subsidiary has not assigned or in any way disposed of any right, title or interest in any item; 
 (ii) each item is not subject to any outstanding injunction, judgment, order, decree, ruling, or charge; 
 (iii) no action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand has been filed or is threatened which challenges the legality, validity, enforceability, use, or ownership of each item;

 (iv) except for indemnifications provided in the ordinary course of business, the Company and each Subsidiary have not
agreed to indemnify any Person for or against any interference, infringement, misappropriation, or other conflict with respect to each item; 
 (v) each item is valid and enforceable in accordance with its terms in every jurisdiction the Company or any Subsidiary conducts business; and 
 (vi) the Company and each Subsidiary has taken all necessary steps to obtain and maintain appropriate registrations for each item capable
of registration and to protect and defend each item. 
 (d) The Disclosure Letter lists the items of Intellectual Property that any third
party owns and that the Company and each Subsidiary uses pursuant to applicable licenses, sublicenses, agreements, or permission. With respect to each item of such Intellectual Property required to be identified on the Disclosure Letter: 

(i) the license, sublicense, agreement, or permission covering the item is legal, valid, binding, enforceable according to the
applicable terms by the applicable party against the other party thereto, and in full force and effect; 
  

 28 

 (ii) the license, sublicense, agreement, or permission will continue to be legal, valid,
binding, enforceable (in accordance with its terms), and in full force and effect on identical terms immediately following the consummation of the transactions contemplated hereby; 
 (iii) the Company nor any Subsidiary is in breach or default of any such license, sublicense, agreement or permission, and no event has
occurred which with notice or lapse of time would constitute a breach or default or permit termination, modification, or acceleration thereunder; 
 (iv) no current or former customer to such license, sublicense, agreement or permission is in breach or default, and no event has occurred which with notice or lapse of time would constitute a breach or default or
permit termination, modification, or acceleration thereunder; 
 (v) no party to the license, sublicense, agreement, or
permission has overtly repudiated any provision thereof by written notice to the Company, any Subsidiary or any representatives thereof; 
 (vi) no underlying item of Intellectual Property is subject to any outstanding injunction, judgment, order, decree, ruling or charge; 
 (vii) no action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand has been filed or is pending against the
Company or any Subsidiary in relation to any underlying item of Intellectual Property and no owner of such Intellectual Property has threatened any action, suit, proceeding, hearing, investigation, charge, complaint, claim or demand which challenges
the legality, validity, or enforceability of the underlying item of Intellectual Property; 
 (viii) the Company and any
Subsidiary has not granted any sublicense or similar right with respect to the license, sublicense, agreement or permission other than pursuant to in the ordinary course of business; and 
 (ix) the Company or any Subsidiary has not taken any action or inaction or assisted any other person to take any action or inaction with
such Intellectual Property that infringes upon, misappropriate, or otherwise misuses any such Intellectual Property. 
 (e) The Disclosure
Letter lists all software or other material that is distributed as “free software”, “open source software” or under a similar licensing or distribution model (“Open Source Materials”) that is included in any IP
Assets or Company Intellectual Property, or that is otherwise used by Company or any Subsidiary in any way, and describes the manner in which such Open Source Materials were used (such description shall include whether (and, if so, how) the Open
Source Materials were modified and/or distributed by Company or any Subsidiary). Except as explicitly set forth in the Disclosure Letter, the Company or any Subsidiary has not (i) incorporated Open Source Materials into, or combined Open
Source Materials with, any IP Assets or Company or Subsidiary Intellectual Property; (ii) distributed Open Source Materials in conjunction with any IP Assets or Company Intellectual Property; or (iii) used Open Source Materials that
create, or purport to create, obligations for Company or any Subsidiary with respect to any IP Assets or Company Intellectual Property or grant, or purport to grant, to any third party, any rights or immunities under any IP Assets or Company or
Subsidiary Intellectual Property (including using any Open Source Materials that require, as a condition of use, modification and/or distribution of such Open Source Materials that other software incorporated into, derived from or distributed with
such Open Source Materials be (A) disclosed or distributed in source code form, (B) be licensed for the purpose of making derivative works, or (C) be redistributable at no charge). 
  

 29 

 (f) There has not been: 
 (i) any infringement of any of the Company’s or any Subsidiary’s Intellectual Property rights by any third party or any
infringement by the Company or any Subsidiary of any third party’s Intellectual Property rights; 
 (ii) any misuse or
unauthorised disclosure of the Company’s or any Subsidiary’s confidential information; or 
 (iii) any other act
which may affect the validity or enforceability of the Intellectual Property rights of the Company or any Subsidiary. 
 (g) None of the
Company, any Subsidiary or any Seller are aware, having made due and proper inquiries, of any inappropriate, improper, unpermitted or infringing use by any other person of any of the business names or the trade marks owned or used by the Company or
any Subsidiary. 
 3.17 Contracts. 
 (a) There are no Contracts or obligations, agreements or arrangements involving the Company or any Subsidiary and no practices in which the Company or any Subsidiary is engaged, which are void, illegal, unenforceable,
registerable or under which contravene in any material respect, any fair competition legislation or regulations of any applicable Governmental or Regulatory Authority, nor has the Company or any Subsidiary received any threat or complaint or request
for information or investigation in relation to or in connection with any such legislation or regulations. 
 (b) The Company and each
Subsidiary has duly performed and complied at all times with its obligations under all Material Contracts. None of the Material Contracts entered into by the Company or any Subsidiary are known to any Management Seller to be likely to result in a
loss for the Company or any Subsidiary. The Company and each Subsidiary has not made any offers, tenders or quotations which are still outstanding and capable of giving rise to a Contract by the unilateral act of a third party, other than in the
ordinary course of business and on customary terms. 
 (c) Except as set forth in the Disclosure Letter, with respect to the Material
Contracts: 
 (i) the Company or any Subsidiary is not under any obligation which cannot readily be fulfilled, performed or
discharged by it on a timely basis and without undue or unusual expenditure or effort or loss; 
 (ii) there are no grounds
for rescission, avoidance, repudiation or termination (other than those as set out in the respective contracts) and neither the Company, any Subsidiary nor any officer, director or any Key Employees of the Company or any Subsidiary have received
notice of rescission or termination; 
 (iii) each is valid, binding and enforceable (in accordance with its terms) against
the parties to it and there is no party in material breach of, or in default under, any such contract and each will be enforceable (in accordance with its terms) by the Company or any Subsidiary after Closing; 
 (iv) none contain any provision or covenant prohibiting or limiting the ability of the Company or any Subsidiary to engage in any business
activity or compete with any Person or prohibits or limits the ability of any Person to compete with the Company or any Subsidiary; and 
  

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 (v) none contain any onerous, unusual or other provision that could cause a Material
Adverse Effect to the Company or any Subsidiary. 
 (d) The Management Sellers, the Company and each Subsidiary are not aware of any
circumstances, having made due and proper enquiries, whereby, following a change in the: (i) control of the Company or any Subsidiary, (ii) composition of the Board; or (iii) ownership of the Shares, any of the Company’s or any
Subsidiary’s customers, suppliers or licensors which relate to Material Contracts would, cease to remain customers, suppliers or licensors to the same extent and of the same nature as prior to the date hereof or a right to terminate or vary the
Material Contract would be created. 
 (e) Section 3.17(f) of the Disclosure Letter contains a true and correct complete list of
all of the Contracts categorized below to which the Company, any Subsidiary or any Seller (as it relates to the Company or any Subsidiary) are a party (the “Material Contracts”): 
 (i) end user license agreements or other license agreements (or group of related agreements) pursuant to which the Company or any
Subsidiary has, on a consolidated basis, recognized annual revenue in excess of £5,000 in the fiscal years ended 31 January 2006 and 31 January 2007; 
 (ii) indirect resellers, original equipment manufacturer’s, distributorship, franchise, dealer, sales agent, joint venture and
partner agreements pursuant to which the Company or any Subsidiary has on a consolidated basis recognized annual revenue in excess of £5,000 in the fiscal years ended 31 January 2006 and 31 January 2007; 
 (iii) support agreements (or group of related agreements) pursuant to the Company or any Subsidiary has on a consolidated basis recognized
annual revenue in excess of £5,000 in the fiscal years ended 31 January 2006 and 31 January 2007; 
 (iv)
service, consultancy or advisory agreements or agreements to provide work to third parties (or group of related agreements) pursuant to which the Company or any Subsidiary has on a consolidated basis recognized annual revenue in excess of
£5,000 in the fiscal years ended 31 January 2006 and 31 January 2007; 
 (v) agreements for the sale of
supplies or products (or group of related agreements) pursuant to which the Company or any Subsidiary has on a consolidated basis recognized annual revenue in excess of £5,000 in the fiscal years ended 31 January 2006 and 31 January
2007; 
 (vi) any agreement (or group of related agreements) for the purchase of supplies, products, or other personal
property, or for the furnishing or receipt of services, the performance of which will extend over a rolling period of more than one year or involve consideration in excess of £7,500 in the fiscal years ended 31 January 2006 and
31 January 2007; 
 (vii) any agreement (or group of related agreements) under which the Company or any Subsidiary has
created, incurred, assumed, or guaranteed any indebtedness for borrowed money or other obligation, having a value in excess of £7,500 annually; 
 (viii) any currently effective profit sharing, share option, share purchase, share appreciation, deferred compensation, severance, or other plan or arrangement for the benefit of the Company’s or any
Subsidiary’s current or former directors, officers, and employees; 
 (ix) outstanding agreement under which the Company
or any Subsidiary has advanced or loaned any amount in excess of £5,000 (excluding loans associated with travel and meal expenses); 
  

 31 

 (x) any agreement pursuant to which the Company or any Subsidiary has or may have an
obligation to pay past, present or future royalties or make other payments in connection with the sale of products or services; 
 (xi) any other agreement (or group of related agreements), other than employment-related agreements or agreements with contractors, the performance of which involves payment by the Company or any Subsidiary of annual consideration in excess
of £5,000 after the Closing; 
 (xii) any contracts related to the disposition or acquisition of assets in excess of
£5,000 including any contracts related to the merger, consolidation, reorganization or any similar transaction of the Company or any Subsidiary; 
 (xiii) any contracts that limit payment of dividends or require financial ratios or financial covenants to be met or which have the effect of altering any of the rights or obligations of or encumbering any of the
Assets; 
 (xiv) any agreements or related agreements for the lease obligations of real property or plant and equipment of the
Company or any Subsidiary in excess of £7,500 annually; 
 (xv) any escrow agreements (including software escrow
agreements), arrangements or promises of the Company or any Subsidiary; 
 (xvi) any other contract creating or relating to
any sharing of revenues, profits, losses, costs or liabilities pursuant to which the Company or any Subsidiary has on a consolidated basis recognized annual revenue in excess of £5,000 in the fiscal years ended 31 January 2006 and
31 January 2007; 
 (xvii) any contract creating or involving any agency relationship, distribution arrangement or
franchise relationship pursuant to which the Company or any Subsidiary has on a consolidated basis recognized annual revenue in excess of £5,000 in the fiscal years ended 31 January 2006 and 31 January 2007; and 
 (xviii) any contract which provides for indemnification of any officer, director, employee or agent of the Company or any Subsidiary.

 (f) The Company and its Subsidiaries have received the consent of, or notified (as may be required under the terms of each such Contract),
all contractual partners whose respective Contracts with the Company or such Subsidiary require prior consent to or notification of the transactions contemplated by this Agreement. 
 3.18 Licenses. The Company and each Subsidiary possesses such permits, licenses, approvals, consents and other authorizations (collectively,
“Governmental Licenses”) issued by any regulatory agencies or bodies in any jurisdiction that the Company conducts business. The Company and each Subsidiary is in compliance with the terms and conditions of all such Governmental
Licenses. All of the Governmental Licenses are valid and in full force and effect. Neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any such Governmental Licenses. All
consents, approvals and actions of, filings with and notices to any third party, Governmental or Regulatory Authority necessary to permit any Management Seller, the Company or any Subsidiary to perform their respective obligations under this
Agreement and each of the Transaction Documents and to consummate the transactions contemplated hereby and thereby shall have been duly obtained, made or given, and shall be in full force and effect. 
 3.19 Insurance. The Disclosure Letter contains a true and complete list of all material liability, property, workers’ compensation,
directors’ and officers’ liability and other insurance policies currently in effect that insure the business, operations or employees of the Company and each Subsidiary or affect or relate to the ownership, use or operation of any of the
material assets and 

  

 32 

 
properties of the Company and each Subsidiary and that have been issued to the Company or any Subsidiary. The insurance coverage provided by such policies
will not terminate or lapse by reason of the transactions contemplated by this Agreement. Each policy listed in the Disclosure Letter is valid and binding and in full force and effect, no premiums due thereunder have not been paid and neither the
Company, any Subsidiary nor the Person to whom such policy has been issued has received any notice of cancellation or termination in respect of any such policy or is in default thereunder. To the best of the knowledge and belief of the Company, each
Subsidiary and each Management Seller, having made due and proper inquiries, the insurance policies listed in the Disclosure Letter have coverage levels that are reasonable and customary for Persons engaged in such businesses and operations and
having such assets and properties as the Company and each Subsidiary and satisfy, in all respects, any requirements set forth in the Company’s or any Subsidiary’s agreements with any third party. All of the tangible personal property and
Plant and Equipment of the Company and each Subsidiary of an insurable nature are insured against fire and other risks normally insured against and that have coverage levels that are reasonable and customary for Persons engaged in such businesses
and operations. The Company and each Subsidiary have as not received any notice that any insurer under any policy referred to in this Section 3.18 is denying liability with respect to a claim thereunder or defending under a reservation of
rights clause. 
 3.20 Brokers or Finders. Except as set forth in the Disclosure Letter, the Company or any Subsidiary has not
incurred, or will incur, directly or indirectly, any liability for brokerage or finders’ fees or agents’ commissions or any similar charges in connection with this Agreement. Notwithstanding anything herein to the contrary and for the
avoidance of doubt, any brokerage, finders’ fee, agents’ commissions or any similar charge(s) in relation to or associated with this Agreement or the transactions contemplated thereby, will be paid by the Sellers. 
 3.21 Disclosure. Each Management Seller acknowledges and agrees that where any warranty is qualified by the Management Seller’s knowledge or
awareness, he has made reasonable enquiry into the subject matter of that warranty. 
 3.22 Environmental Matters. No notice,
notification, demand, request for information, citation, summons or order has been received, no complaint has been filed, no penalty has been assessed and no investigation, action, claim, suit, proceeding or review is pending, or threatened by any
government entity or other Person with respect to any matters relating to the Company or any Subsidiary and relation to or arising our of any Environmental Law. There are no facts, conditions, situations or set of circumstances which could
reasonably be expected to result in or be the basis for any liability of or relating to the Company or any Subsidiary arising under or relating to any Environmental Law. 
 3.23 Financial Warranties. (a) (i) The audited and consolidated (where applicable) balance sheets for each of the years ended January 31, 2003, 2004 and 2005 and the related audited consolidated
statements of income and cash flows; (ii) the unaudited consolidated balance sheets for the year ended January 31, 2006 and the related unaudited consolidated statements of income and cash flows; and (iii) the unaudited interim
consolidated balance sheets for the period from February 1, 2007 to Closing and the related unaudited interim consolidated statements of income and cash flows (the “Financial Accounts”) fairly present, in conformity with
generally accepted accounting principles applied on a consistent basis, the consolidated financial position of the Company and each Subsidiary as of the dates thereof and have been prepared in accordance with UK GAAP. 
 (b) All accounts receivable reflected on each of the Financial Accounts and all accounts receivable arising subsequent to the Closing Date (collectively
the “Accounts Receivable”): (i) have arisen from bona fide sales transactions in the ordinary course of the business on ordinary trade terms; (ii) represent valid, enforceable (in accordance with its terms) and binding
obligations due to the Company or any Subsidiary; (iii) have been collected or are collectible in the ordinary course of business in the aggregate recorded amounts thereof without valid set-off or counterclaim; and (iv) are not so far as
the Management Sellers are aware subject to any counter claim or set off. 
  

 33 

 (c) The Disclosure Letter describes the names and locations of all banks and financial institutions in
which there are accounts or safe deposit boxes maintained by, or for the benefit of, the Company or any Subsidiary, the designation of each such account and safe deposit box, and the names of all persons authorized to draw on or have access to each
such account and safe deposit box. 
 (d) All forecasts and projections of any future financial results or sales pipeline activities of the
Company or any Subsidiary provided to the Purchaser by or on behalf of the Company or any Subsidiary, any of the Company’s or any Subsidiary’s management or any Management Seller were prepared in good faith and were based upon reasonable
assumptions. There was at the time of the Closing no matters or circumstances that were known by the Company, any Subsidiary, or any Management Seller that would reasonably have had a material impact on the actual and projected financial results of
the Company or any Subsidiary. 
 (e) The Company and each Subsidiary is not directly or indirectly obliged in any way to guarantee, assume
or provide funds to satisfy an obligation of any Person. No letter of comfort has been given by the Company or any Subsidiary. 
 3.24
Absence of Changes. Since February 1, 2006 and until Closing, there has not been any change in the business, condition (financial or otherwise), operations or results of operations of the Company or any Subsidiary that would result in a
Material Adverse Effect. Without limiting the generality of the foregoing, since February 1, 2006 and until Closing: 
 (a) The Company
and each Subsidiary has not sold, leased, transferred, or assigned any of its Assets, tangible or intangible other than in the ordinary course of business; 
 (b) The Company and each Subsidiary has not entered into any agreement, contract, lease, or license (or series of related agreements, contracts, leases, and licenses) relating to the Assets or for any liabilities
other than in the ordinary course of business; 
 (c) No Person (including each Seller, the Company and each Subsidiary) has accelerated,
terminated, modified or cancelled any agreement, contract, lease or license (or series of related agreements, contracts, leases and licenses) involving more than £5,000 to which the Company or any Subsidiary is a party or by which they or any
of them are bound, other than terminations and cancellations of agreements which occur in the ordinary course of business; 
 (d) The Company
or any Subsidiary has not imposed, or agreed to, or suffered the imposition of any lien in excess of £5,000 upon any of the Assets, tangible or intangible; 
 (e) The Company or any Subsidiary has not made any capital expenditure (or series of related capital expenditures) involving more than £5,000; 
 (f) The Company or any Subsidiary has not made any capital investment in, any loan to, or any acquisition of the securities or assets of, any other
Person (or series of related capital investments, loans and acquisitions) involving individually more than £5,000 other than pursuant to agreements with suppliers that were entered into in the ordinary course of business; 
 (g) The Company or any Subsidiary has not issued any note, bond, debenture or other debt security or created, incurred, assumed or guaranteed any
indebtedness for borrowed money or capitalized lease obligation either involving more than £5,000 individually; 
 (h) The Company or
any Subsidiary has not cancelled, compromised, waived or released any right or claim (or series of related rights and claims) involving more than £5,000; 
  

 34 

 (i) There has been no change made or authorized in the Memorandum and Articles of Association of the
Company or any Subsidiary; 
 (j) Neither the Company, any Subsidiary nor any Management Seller has issued, sold or otherwise disposed of or
transferred any of their shares, or granted any options, warrants or other rights to purchase or obtain (including upon conversion, exchange or exercise) any of their shares other than necessary or desirable to effectuate the actions contemplated in
this Agreement; 
 (k) The Company or any Subsidiary has not declared, set aside or paid any dividend or made any distribution with respect
to their shares (whether in cash or in kind) or redeemed, purchased or otherwise acquired any of their shares; 
 (l) The Company or any
Subsidiary has not experienced any damage, destruction, loss (whether or not covered by insurance) or material interruption to the Assets in excess of £5,000; 
 (m) The Company or any Subsidiary has not made any loan to any of its directors, officers or employees, or entered into any other compensation transaction with any of their directors, officers or employees;

 (n) The Company or any Subsidiary has not entered into or modified the terms of any employment or severance agreement or arrangement;

 (o) The Company or any Subsidiary has not granted any increase in the base compensation or any other forms of compensation of any of their
directors, officers or employees; 
 (p) The Company or any Subsidiary has not changed any of its methods of accounting or material
accounting practices in any respect; 
 (q) The Company or any Subsidiary has not entered into any transaction, commitment or obligation or
taken any other action inconsistent with their past practices; 
 (r) The business of the Company and each Subsidiary has been carried on in
the ordinary and usual course and no contracts or commitments differing from those ordinarily necessitated by the nature of that business have been entered into or incurred; 
 (s) There has been no change in the assets, the liabilities or the financial position or profits of the Company or any Subsidiary except changes in the
ordinary course of business, none of which individually or in the aggregate is materially adverse to the Company or any Subsidiary; 
 (t)
There has been no alteration to the rights attached to any of the Shares or to the capital structure of the Company or any Subsidiary; 
 (u)
No additional directors have been appointed to the Company or any Subsidiary; 
 (v) The Company and any Subsidiary has not made or pledged
to make any charitable or other capital contribution outside the ordinary course of business; and 
 (w) There has been no change in the
Company’s or any Subsidiary’s authorized or issued share capital; grant of any options or right to purchase Shares; issuance of any security convertible into such Shares; grant of any registration rights; purchase, redemption, retirement,
or other acquisition by the Company or any Subsidiary of any Shares; or declaration or payment of any dividend or other distribution or payment in respect of the Shares. 
  

 35 

 3.25 Powers of Attorney. There are no outstanding powers of attorney executed on behalf of the
Company or any Subsidiary. 
 3.26 No Illegal Payments, etc. Neither the Company, any Subsidiary, nor any of their officers,
employees, agents or Affiliates has directly or indirectly given or agreed to give any illegal gift, contribution, payment or similar benefit to any supplier, customer, governmental official or employee or other Person who was or is in a position to
help or hinder the business (or assist in connection with any actual transaction) or made or agreed to make any illegal contribution, or reimbursed any illegal political gift or contribution made by any other person, to any candidate for federal,
state, local or foreign public office. 
 3.27 Product, Services and Assets. 
 (a) There are no current or threatened disputes with regards to the Company’s or any Subsidiary’s current version of its IP Assets. The
Company’s or any Subsidiary’s software products (if any) have been successfully installed and utilized by customers of the Company or any Subsidiary or have been delivered successfully and satisfactorily to all such customers of the
Company or any Subsidiary. 
 (b) No IP Assets sold, leased or delivered by the Company or any Subsidiary and no support or service provided
by the Company or any Subsidiary to customers on or prior to the Closing Date is subject to any express guaranty, express warranty or other indemnity (including without limitation as to product or service reliability, security, interoperability,
compatibility (forward and backward), upgrade path or upgrade timing) other than in the ordinary course of business. 
 (c) The Company and
each Subsidiary is the legal and beneficial owner of all its Assets. There are no mortgages, pledges, liens, encumbrances, charges or other security interests over or affecting any Asset. 
 (d) The Assets are sufficient to enable the effective conduct of the business of the Company and each Subsidiary after Closing as it is carried on at the
date of this agreement and at Closing. 
 3.28 Substantial Customers and Suppliers. (a) For purposes of this
Section 3.28(a), a “Material Customer” shall mean any of the twenty (20) customers of the Company and each Subsidiary, taken as a whole, with the highest attributed revenues in the financial years ended 31 January
2006 and 31 January 2007. The Disclosure Letter lists the Material Customers (whether direct or indirect) and applicable Contracts of the Company or any Subsidiary. Each of the Material Customers, related contracts and attributed revenues are
not duplicative or redundant. With respect to the applicable contracts with Material Customers, so far as the Management Sellers are aware, there exists no event of default and no event has occurred which would result in any such event of default or
prevent the Company or any Subsidiary from obtaining the benefit thereunder. The Company’s or any Subsidiary’s relationship with each Material Customer is good and there are no facts or circumstances known to any Management Seller, or
ought reasonably to be known by any Management Seller of: (a) any dispute threatened, actual or pending between the Company, any Subsidiary and any Material Customer; or (b) any desire or plan of any Material Customer to terminate or
modify such relationship. 
 (b) For purposes of this Section 3.28(b), a “Material Supplier” shall mean any of the top
ten (10) third party suppliers of the Company or any Subsidiary, taken as a whole with the highest attributed costs or the basis of costs in the financial years ended 31 January 2006 and 31 January 

  

 36 

 
2007. The Disclosure Letter lists the material suppliers. With respect to the applicable contracts with Material Suppliers, there exists no event of default
and no event has occurred which would result in any such event of default or prevent the Company or any Subsidiary from obtaining the benefit thereunder. The Company’s or any Subsidiary’s relationship with each Material Supplier is good
and there are no facts or circumstances known to any Management Seller, or ought reasonably to be known by any Management Seller after due and proper inquiry of: (a) any dispute threatened, actual or pending between the Company, any Subsidiary
and any Material Supplier; or (b) any desire or plan of any Material Supplier to terminate or modify such relationship. 
 (c) None of
the Management Sellers, the Company or any Subsidiary has notice, or is aware of any facts or circumstances, that any Material Customer or Material Supplier has ceased, materially reduced or threatened to cease or materially reduce its purchases or
supplies (as the case may be). 
 (d) There is no existing Material Customer of the Company or any Subsidiary who is likely to materially
reduce its trading with the Company or any Subsidiary as a result of the acquisition of the Shares by the Purchaser. 
 3.29 No Bankruptcy
or Insolvency (a) No order has been made, or petition presented, or resolution passed for the winding-up or bankruptcy of the Company, any Subsidiary or any Seller. None of the Management Sellers or the Company or any Subsidiary has had:

  

	 	(i)	any petition or order for winding-up or bankruptcy filed against it; 

  

	 	(ii)	any appointment of a receiver over the whole or part of the undertaking of its assets; 

  

	 	(iii)	any petition or order for administration against it; 

  

	 	(iv)	any voluntary arrangement between any creditor and it; 

  

	 	(v)	any distress or execution or other process levied in respect of it which remain ` undischarged; or 

  

	 	(vi)	any unfulfilled or unsatisfied judgment or court order against it over the amount of £10,000. 

 (b) None of the Management Sellers, the Company or any Subsidiary is insolvent (total liabilities greater than total assets) and each can pay its debts
as and when they fall due. 
 (c) There are no circumstances which would entitle any Person to present a petition for the winding-up or
administration (or like action) of the Company, any Subsidiary or any Seller or to appoint a receiver over the whole or any part of the undertaking or assets of the Company, any Subsidiary or any Seller. 
 3.30 Inventory. All inventory of the Company and each Subsidiary, whether or not reflected in any financial statements of the Company or such
Subsidiary, consists of a quality and quantity usable and salable in the ordinary course of business, except for obsolete items and items of below-standard quality, all of which have been written off or written down to net realizable value in the
balance sheets or on the accounting records of the Company or such Subsidiary as of the Closing Date, as the case may be. All inventories not written off have been priced at the lower of cost or market or net realizable value on a first in, first
out basis. The quantities of each item of inventory (whether raw materials, work-in-process, or finished goods) are not excessive, but are reasonable in the present circumstances of the Company and each Subsidiary. The Disclosure Letter contains a
complete and accurate list of all open purchase orders in an amount in excess of £5,000, and the open to buy schedule for the first half of 2007. 
  

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 3.31 Certain Payments. Neither the Company, any Subsidiary nor any Seller or the
Company’s, each Management Seller’s and each Subsidiary’s knowledge any agent, Key Employees, employee or other Person associated with or acting for or on behalf of the Company or any Subsidiary, has directly or indirectly:
(i) made any contribution, gift, bribe, rebate, payoff, influence payment, kickback, or other payment to any Person, private or public, regardless of form, whether in money, property, or services; (ii) to obtain favorable treatment in
securing business; (iii) to pay for favorable treatment for business secured; (iv) to obtain special concessions or for special concessions already obtained, for or in respect of the Company or any Subsidiary or any Affiliate of the
Company or any Subsidiary; (v) in violation of any Law, rule or regulation; or (v) established or maintained any fund or asset that has not been recorded in the books and records of the Company or any Subsidiary. 
 3.32 Relationships with Related Persons. No Management Seller, the Company or any Subsidiary or any Related Person of any Management Seller,
the Company or any Subsidiary has, or since the first day of the next to last completed fiscal year of the Company or such Subsidiary has had, any interest in any property (whether real property leaseholds, personal or mixed and whether tangible or
intangible), used in or pertaining to the Company’s or any Subsidiary’s business. Except as set forth in the Disclosure Letter, no Management Seller or any Related Person of Management Sellers, of the Company or any Subsidiary is, or since
the first day of the next to last completed fiscal year of the Company or such Subsidiary has owned (of record or as a beneficial owner) an equity interest or any other financial or profit interest in, a Person that has (i) had business
dealings or a material financial interest in any transaction with the Company or any Subsidiary other than business dealings or transactions conducted in the ordinary course of business with the Company or any Subsidiary at substantially prevailing
market prices and on substantially prevailing market terms, or (ii) engaged in competition with the Company or any Subsidiary with respect to any line of the products or services of the Company or any Subsidiary (a “Competing
Business”) in any market presently served by the Company except for less than five percent of the outstanding shares of any Competing Business that is publicly traded on any recognized exchange or in the over-the-counter market. Except as
set forth in the Disclosure Letter, no Management Seller or any Related Person of Management Sellers or of the Company or any Subsidiary is a party to any contract with, or has any claim or right against, the Company or any Subsidiary. 

Section 4. Warranties of the Purchaser. 
 4.01 Organization of the Purchaser. The Purchaser warrants that the Purchaser is a corporation duly organized validly existing and in good standing under the laws of the State of Delaware and has all requisite
power and authority to enter into and perform its obligations under this Agreement. Once executed by the Purchaser, this Agreement and the Transaction Documents required to be executed by the Purchaser have been duly and validly executed and
delivered by the Purchaser and when duly executed will constitute a legal, valid and binding obligation of the Purchaser enforceable against such Purchaser subject to bankruptcy, reorganization, insolvency, moratorium, restructuring or similar laws
of general applicability relating to or affecting creditors’ rights generally and to general principles of equity. 
 Section 5.
Post Closing Covenants of the Sellers. 
 5.01 Books and Records. If at any time after the Closing, any Management Seller
discovers in its possession or under its control any other Records, such Management Seller shall forthwith deliver or make available such Records to the Purchaser at the offices of the Company. 
 5.02 Cooperation. Each Management Seller (without being required to incur any personal cost or expense) agrees and undertakes to promptly use its
reasonable efforts to assist the Purchaser 

  

 38 

 
to effect the transfer of the Shares to the Purchaser and to execute all documents, papers, forms, authorizations, declarations or oaths, obtain the
consents, releases and waivers of third parties and Governmental or Regulatory, and take any other steps that may be necessary to do so in order to consummate the transactions contemplated under this Agreement and each Transaction Document.

 5.03 Power of Attorney. Upon Closing, each Seller hereby appoints the Purchaser to be its attorney in relation to the
Purchaser’s relevant Shares from the Closing until the relevant Shares are registered in the name of the Purchaser. The Purchaser may do in the name of each Seller and on its behalf everything necessary or expedient, in the Purchaser’s
sole discretion to: (a) transfer the relevant Shares; (b) exercise any rights, including rights to appoint a proxy or representative and voting rights, attaching to the relevant Shares; (c) receive any dividend or other entitlement
paid or credited to any Seller in respect of the relevant Shares; (d) do any other act or thing in respect of the relevant Shares. Each Seller declares that all acts and things done by the Purchaser in exercising powers under this power of
attorney will be as good and valid as if they had been done by such Seller and agrees to ratify and confirm whatever the Purchaser does in exercising powers under this power of attorney. Each Seller declares that this power of attorney of the
Purchaser is given for valuable consideration and is irrevocable from the Closing until the relevant Shares are registered in the name of the Purchaser. 
 5.04 Noncompetition. (a) Each Management Seller severally covenants and agrees to the Purchaser that for a period three (3) full years (or such lesser period as a court of law having jurisdiction in
accordance with Section 11.19 so determines to be reasonable) after the date of Closing, he/she shall not: 
 (i) engage, either directly
or indirectly, as an officer, director, advisor, consultant or employee in any sole proprietorship, corporation, partnership, limited liability company, joint stock association or similar entity, in the business of providing any products
substantially similar to the Respond Product and services substantially similar to those performed by the Company immediately prior to the Closing (the “Restrained Business”); 
 (ii) procure any of his/her Affiliates to carry on or promote (whether on its own account, in partnership, in joint venture or as employee or agent of or
manager for any other person) any Restrained Business; 
 (iii) seek or secure the customer of any person who is at Closing, a customer of
either the Company and/or any Subsidiary; 
 (iv) seek to engage or engage the services of any person who is or becomes an employee of or
service provider to the Company and/or any Subsidiary; or 
 (v) use a name which is similar to the present name of the Company and/or any
Subsidiary or use any of the Company’s Intellectual Property. 
 (b) If any provision or sub-provision contained in this Section shall
for any reason be held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Section, but this Section shall be construed as if such invalid, illegal or
unenforceable provision had never been contained herein. It is the intention of the parties that if any of the restrictions or covenants contained herein is held to cover a geographic area or to be for a length of time which is not permitted by
applicable law, or in any way construed to be too broad or to any extent invalid, such provision shall not be construed to be null, void and of no effect, but to the extent such provision would be valid or enforceable under applicable law, a court
of competent jurisdiction shall construe and interpret or reform this Section to provide for a covenant having the maximum enforceable geographic area, time period and other provisions and shall be valid and enforceable under such applicable law.
Each Management Seller acknowledges that the Purchaser would be irreparably 

  

 39 

 
harmed by any breach of this Section and that there would be no adequate remedy at law or in damages to compensate the Purchaser for any such breach. Each
Management Seller agrees that the Purchaser shall be entitled to injunctive relief requiring specific performance by the Management Sellers of this Section, and the Management Sellers consents to the entry thereof. 
 (c) Each Management Seller acknowledges that each of the restraints in this Section 5.04 is reasonable in its extent (as to duration and restrained
conduct) having regard to the interests of each party to this Agreement and goes not further than is reasonably necessary to protect the Purchaser in respect of the goodwill of the Company and the Subsidiaries. 
 5.05 Payment of Indebtedness by Related Persons. The Management Sellers will cause all indebtedness owed to the Company or any Subsidiary by any
Management Seller or any Related Person of any Management Seller to be paid in full prior to or at Closing. 
 5.06 Tax Matters. The
Purchaser and the Key Employees (insofar as it is reasonably practicable) and in any event while they remain employed in the Company shall cooperate as and to the extent reasonably requested by the other party, in connection with the filing of any
tax returns of the Company and any audit, litigation or other proceeding with respect to Taxes. Such cooperation shall include the retention and the provision of records and information which are relevant to any such tax return, audit, litigation or
other proceeding and be available to provide additional information and explanation of any material provided hereunder. The Purchaser and the Key Employees (insofar as it is reasonably practicable) and in any event while they remain employed in the
Company agree to retain all books and records with respect to Tax matters pertinent to the Company relating to any taxable period beginning before the Closing Date as are in their possession until the expiration of the statute of limitations (and
any extensions thereof) of the respective taxable periods, and to abide by all record retention agreements entered into with any taxing authority. 
 Section 6. Post Closing Covenants of the Purchaser. 
 6.01 Cooperation. The Purchaser agrees and
undertakes to promptly use its reasonable efforts to assist the Sellers to effect the transfer of the Shares to the Purchaser and to execute all documents, papers, forms, authorizations, declarations or oaths, obtain the consents, releases and
waivers of third parties and Governmental or Regulatory Authorities, and take any other steps that may be reasonably necessary to do so in order to consummate the transactions contemplated under this Agreement and each Transaction Document.

 6.02 Access to Financial Information. Within sixty (60) days following the end of each of the Company’s fiscal quarters
prior to January 1, 2010, the Purchaser if requested by the Management Sellers Representative shall provide each Management Seller with unaudited copies of the Company’s consolidated balance sheet, income statement, statement of cash flows
for such period, and statement of revenue showing all sales of the Respond Product generated by Affiliates of CDC for each such fiscal quarter provided that the Purchaser shall not be required to prepare or distribute any additional financial
statements that are not prepared in the Company’s normal an ordinary course of business, in management’s reasonable determination. Any such information provided pursuant to this Section 6.02 shall (insofar as it is not in the public
domain) be held in strict confidence by each Management Seller, and not disclosed to any third party. 
 6.03 Respond Product. The
Purchaser will procure that: 
 (i) The Respond Product will be maintained as a separate and distinct product within the Pivotal CRM product
line. 
 (ii) The Respond Product will be added to the Pivotal CRM product list, which shall identify the product name, list price, product
family, target vertical, SKU, constituent products, and other attributes. 
  

 40 

 (iii) All software, maintenance and services revenue associated with the sale of the Respond Product
shall be capable of counting towards the calculation of Accumulated Revenue. 
 (iv) In circumstances where the Respond product is sold to a
customer in conjunction with Pivotal CRM products (e.g., bundled with M1) then the relative percentage of the license fees for the constituent products will be used to determine the revenue that is attributable to Respond. For example, if the list
price of M1 is $50,000 and the list price of Respond is $150,000 then 75% of the ‘as sold’ revenue is attributed to Respond regardless of how it is packaged or broken down on a line item basis in the contract. 
 6.04 Loan Notes. If and to the extent that any Series A Loan Notes are to be issued to Mr Heavey and/or Mr Breare pursuant to the terms of this
Agreement, the Purchaser shall at the time such notes are required to be issued, deliver to the Management Sellers Representative, duly executed Series A Loan Note Instruments and duly executed certificates for such Series A Loan Notes, in favor of
each of Mr. Heavey and Mr. Breare, in the appropriate amounts. Mr. Breare hereby authorizes the Management Sellers Representative to accept delivery of the Series A Loan Note Instruments and the Series A Loan Notes on and for his
behalf, without any liability on the part of Purchaser. 
 Section 7. Closing Requirements of the Sellers  
 The obligations of the Purchaser under this Agreement are subject to the fulfilment, at or before the Closing of each of the following conditions the
satisfaction of which will be determined by the Purchaser acting reasonably (all or any of which may be waived in whole or in part by the Purchaser in its sole discretion provided that completion of this Agreement shall constitute the
Purchaser’s waiver of any condition insofar as it has not been satisfied either in whole or in part as at the Closing Date): 
 7.01
Financial Statements. On the Closing Date, the Management Sellers shall deliver to the Purchaser true and complete copies of the Audited Accounts and the Management Accounts. 
 7.02 Certificates. On the Closing Date, the Management Sellers shall deliver to the Purchaser certificates from the company secretaries of the
Company and each Subsidiary in the form and to the effect of Schedule 8. 
 7.03 Key Employees. Each of the Key Employees shall have
executed an Employment Agreement with the Company in the Agreed Form containing the Purchaser’s standard non-compete and non-solicitation agreement, and each Management Seller shall terminate all other previous employment agreements and other
agreements between himself and the Company or any Subsidiary. 
 7.04 Proceedings. All proceedings to be taken on the part of the
Sellers, the Company and each Subsidiary in connection with the transactions contemplated by this Agreement, the Transaction Document and all documents incident thereto shall be reasonably satisfactory in form and substance to the Purchaser, and the
Purchaser shall have received copies of all such documents and other evidences as the Purchaser may reasonably request in order to establish the consummation of such transactions and the taking of all proceedings in connection therewith. 

7.05 Share Transfers/Certificates. The Sellers shall provide to Purchaser duly executed transfers of the Shares in its favor, in a registrable
form (subject to stamping) and in accordance with the Company’s Memorandum and Articles of Association representing the Shares, together with share certificates for such Shares. 
 7.06 Termination of Rights and Certain Securities. Any and all registration rights, rights 

  

 41 

 
of first refusal, rights of first offer, co-sale, tag-along, drag-along, voting rights, rights to any liquidation preference or redemption rights, or any
similar rights relating to the Shares or any of the Company’s or any Subsidiary’s capital, will either be fully terminated, satisfied or irrevocably waived as of the Closing Date. 
 7.07 Board Approval of the Company. The Board meeting of the Company shall have: (a) approved the transactions contemplated herein and
therein; (b) approved the transfer of the Shares; (c) resolve and directed that the transfers of the Shares are registered; and (d) approved the appointment of the representatives of the Board selected by the Purchaser and the
resignation of all directors who were on the Board prior to the Closing, but so that a properly constituted board of directors is in existence at all times. 
 7.08 Board Appointee. Effective as of the Closing Date, the designees of the Purchaser shall have been elected to the Board and the current directors of the Company shall have resigned, but so that a properly
constituted board of directors is in existence at all times. 
 7.09 Shareholder, 3i and Parkmead Approval. On or before the Closing
Date, all of the Sellers including without limitation 3i and Parkmead, shall have approved and consented to the execution of this Agreement and the transactions contemplated herein and therein. 
 7.10 Third Party Consents. The Management Sellers shall deliver copies of the consents to the change of control of the Company from the
following:- (i) Littlewoods; (ii) Norwich Union; (iii) Lloyds TSB; (iv) Computer center; and (v) Egg. 
 7.11
Change of Bank Authorities. At the Closing, the Management Sellers shall deliver to the Purchaser bank mandates approved by each of the Company’s and/or any Subsidiary’s bankers and the Board authorising the operation of each of the
Company’s and any Subsidiary’s bank accounts by nominees of the Purchaser. 
 7.12 Repayment of Loan Facilities. At the
Closing, the Management Sellers shall deliver to the Purchaser evidence that all loan facilities of the Company and each Subsidiary with funds currently outstanding including, without limitation, to the Bank of Ireland, 3i and Parkmead are duly and
completely re-paid. 
 7.13 Options. The Management Sellers shall deliver to the Purchaser evidence: (i) that all outstanding
options issued in relation to the share capital of the Company pursuant to EMI option agreements granted to the Management Sellers have been exercised in accordance with the terms of the Company’s Share Option Plan; and (ii) that the
Company’s EMI Scheme and any other similar option plan, warrant or agreement of the Company or any Subsidiary shall be terminated, cancelled and of no further force and effect in all respects, prior to Closing. 
 7.14 Statutory Books & Registers. The Management Sellers shall deliver to the Purchaser the Company’s and each Subsidiary’s
statutory books and registers, of the Company and each Subsidiary. 
 7.15 Termination Of Encumbrances. At the Closing, the Management
Sellers shall deliver evidence satisfactory to Purchaser and its counsel that all Encumbrances and Liens, if any, on or with respect to (i) any of the Shares and any ownership interests in any Subsidiary, and (ii) any Encumbrances and
Liens on or with respect to the Company, any Subsidiary or any Assets and properties have of the foregoing, in each case, been fully released and terminated (the “Released Encumbrances”), provided, however, notwithstanding anything
herein to the contrary, notwithstanding the closing of the Transactions, failure to secure the release of any Encumbrances and Liens by the Sellers shall not constitute a waiver on the part of Purchaser of the obligations of Seller set forth in this
Section 7.15 

 42 

 7.16 Payment of Tranche 1 Consideration. The Purchaser shall pay the Tranche 1 Consideration by
electronic wire transfer to the client account of the Management Sellers Solicitors the details of which are: 
  

			
	 Account:
	  	XXXXXXX
	 Bank:
	  	XXXXXXX
	 Account No:
	  	XXXXXXX
	 IBAN:
	  	XXXXXXX
	 IBAN BIC:
	  	XXXXXXX

 7.17 Undertaking. The Purchaser shall receive from the Management Sellers Solicitors a
letter of undertaking in relation to the payment of Tranche 1 Consideration in a form reasonably acceptable to the Purchaser. 
 Section 8. Closing Requirements of the Purchaser. 
 The obligations of the Sellers under this Agreement are
subject to the fulfilment, at or before the Closing of each of the following conditions the satisfaction of which will be determined by the Sellers acting reasonably (all or any of which may be waived in whole or in part by the Sellers in their sole
discretion provided that completion of this Agreement shall constitute the Sellers’ waiver of any condition insofar as they have not been satisfied as at the Closing Date): 
 8.01 Approval. The board of directors of the Purchaser or its delegated subcommittee shall have authorized and approved each of the terms and
conditions of this Agreement and each Transaction Document (as appropriate) and the execution and performance of this Agreement and each Transaction Document (as appropriate) by a duly authorized officer or director of the Purchaser and the
transactions contemplated herein and therein. 
 8.02 Good Standing Certificate. At the Closing, a Certificate dated within ten
(10) Business Days of the Closing Date as to the good standing of the Purchaser in its jurisdiction of formation shall be delivered to the Management Seller’s Solicitors. 
 Section 9. Covenants and Agreements. 
 Unless otherwise expressly provided for in this Agreement: 
 (a) The covenants and agreements referred to in
Sections 5 and 6 of the Parties shall survive the Closing. 
 (b) Each of the Warranties are true and correct in all respects on and as of
the Closing Date subject to matters disclosed in the Disclosure Letter. 
 (c) Each of the parties hereto covenant and agree that any matters
relating to Tax, except as otherwise expressly set forth in this Agreement, shall be governed in accordance with the provisions of Schedule 3 and Schedule 10 attached hereto which shall remain in full force and effect and applicable in all
circumstances and shall not be discharged in whole or in part by any actual or alleged breach of any term of this Agreement. 
 Section 10. Limitations and Indemnity 
 10.01 Limitations. The Purchaser agrees with each of the Sellers
that all Claims shall be 

  

 43 

 
limited by the provisions of Schedule 10 which shall remain in full force and effect and applicable in all circumstances and shall not be discharged in whole
or in part by any actual or alleged breach of any term of this Agreement. 
 Section 11. Miscellaneous 
 11.01 Notices. All notices, requests, demands, consents, instructions or other communications required or permitted hereunder shall be in writing
and by fed ex, courier or fax to each party as follows: 
 If to the Management Seller Representative, to: 
 21 Brockwell 
 Oakley 
 Bedford MK43 7TD 
 Fax: 0870 735 1163

 If to the Purchaser, to: 
 Ross Systems, Inc. 
 Two Concourse Parkway, Suite 800 
 Atlanta, Georgia 30328 
 Attn: Eric Musser and Verome Johnston 
 with a copy to: 
 CDC Corporation

 33/F, Citicorp Centre 
 18
Whitfield Road 
 Causeway Bay 
 Hong Kong 
 Attn: Chief Executive Officer 
 Fax: +852 2237 7227 
 All such notices, requests, demands, consents, instructions or other communications
shall be effective: (a) when sent by Federal Express or other overnight service of recognized standing, on the second business day following the deposit with such service; and (b) when faxed, upon confirmation of receipt regardless of
whether such notice, request or other communication is received by any other Person to whom a copy of such notice is to be delivered pursuant to this Section. Any party from time to time may change its address, facsimile number or other information
for the purpose of notices to that party by giving notice specifying such change to the other party hereto. 
 The Management Sellers
Representative is hereby authorised to accept all notices, request, demands, comments, instructions or other communications on behalf of the Management Sellers. 
 11.02 Expenses. Each of the Sellers (and not the Company) shall pay for each of their costs and expenses relating to the negotiation, execution and closing of this Agreement and the transactions contemplated
hereby. 
 11.03 Management Sellers Representative. 
 (a) Each Management Seller shall have hereby irrevocably appointed the Management Sellers Representative as its or his true and lawful attorney-in-fact and agent (the “Management Sellers
Representative”), each with full power of substitution or resubstitution, to act solely and 

  

 44 

 
exclusively on behalf of such Management Seller with respect to the transactions contemplated by this Agreement and to act on behalf of such Management
Seller in any litigation or arbitration involving this Agreement, to do or refrain from doing all such further acts and things, and to execute all such documents as the Management Sellers Representative shall deem necessary or appropriate in
connection with the transactions contemplated hereby. 
 (b) The appointment of the Management Sellers Representative shall be irrevocable,
and Purchaser, Sellers and any other person may conclusively and absolutely rely, without inquiry, upon any action of the Management Sellers Representative in all matters referred to herein. 
 11.04 Guaranty. As an inducement to cause the Sellers to enter into this Agreement, the Guarantor guarantees, as primary obligor, the payment
obligations of Purchaser as and when the same fall due for payment under this Agreement including, without limitation, the payment of the Tranche 1 Consideration and Tranche 2 Consideration (including redemption of the Series A Loan Notes). The
obligations of the Guarantor are independent of, but subject to, the obligations of Purchaser to the Sellers. This guaranty is a guaranty of payment and not of collection. This guarantee shall be a continuing obligation of the Guarantor and shall
not be prejudiced by any incapacity of the Purchaser or any other matter which might operate to prevent the Sellers from enforcing the obligations of the Purchaser under this Agreement and the Series A Loan Notes.  
 11.05 Public Announcements. Subject to the subsequent sentences, no party shall issue or make any reports, statements or releases to the public or
otherwise with regard to the transactions contemplated in this Agreement without the consent of the other parties, which consent shall not be unreasonably withheld or delayed. If any party is unable to obtain the approval of its public report,
statement or release from the other party and such report, statement or release is, in the opinion of legal counsel to such party, required by Law or by any Court of competent jurisdiction or governmental or regulatory body in order to discharge
such party’s disclosure obligations, then such party may make or issue the legally required report, statement or release and promptly furnish the other party with a copy thereof. 
 11.06 Waiver. Any term or condition of this Agreement may be waived at any time by the party that is entitled to the benefit thereof, but no such
waiver shall be effective unless set forth in a written instrument duly executed by or on behalf of the party waiving such term or condition. No waiver by any party of any term or condition of this Agreement, in any one or more instances, shall be
deemed to be or construed as a waiver of the same or any other term or condition of this Agreement on any future occasion. 
 11.07
Amendment. This Agreement may be amended, supplemented or modified only by a written instrument duly executed by or on behalf of each party hereto. 
 11.08 Third Party Rights. Unless otherwise stated in this Agreement, no person, other than the Sellers and the Purchaser (including its Affiliates), may enforce or rely upon this Agreement under the Contracts
(Rights of Third Parties) Act 1999. 
 11.09 Assignment; Binding Effect. Subject always to the subsequent sentence, neither this
Agreement nor any right, interest or obligation hereunder may be assigned by any party hereto without the prior written consent of the other party hereto and any attempt to do so will be void, except for assignments and transfers by operation of
Law. At any time after the execution of this Agreement, the Purchaser may assign any or all of its rights, interests and obligations hereunder (including without limitation its rights hereunder) provided that, each such assignee agrees in writing to
be bound by all of the terms, conditions and provisions contained herein. Subject to the preceding sentence, this Agreement is binding upon, inures to the benefit of and is enforceable by the parties hereto and their respective successors and
assigns. 
  

 45 

 11.10 Invalid Provisions. If any provision of this Agreement is held to be illegal, invalid or
unenforceable under any present or future Law, and if the rights or obligations of any party hereto under this Agreement will not be materially and adversely affected thereby: (a) such provision will be fully severable; (b) the remaining
provisions of this Agreement will remain in full force and effect and will not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom; and (c) in lieu of such illegal, invalid or unenforceable provision,
there will be added automatically as a part of this Agreement a legal, valid and enforceable provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible. 
 11.11 Confidentiality. Each party hereto will hold, and will use its reasonable endeavors to cause its Affiliates to hold, in strict confidence
from any Person (other than any such Affiliate, unless: (i) compelled to disclose by judicial or administrative process (including without limitation in connection with obtaining the necessary approvals of this Agreement and the transactions
contemplated hereby of Governmental or Regulatory Authorities) or by other requirements of Law; or (ii) disclosed in any action, suit, proceeding, inquiry, investigation either before or brought by Governmental or Regulatory Authority or
otherwise, brought by a party hereto in pursuit of its rights or in the exercise of its remedies hereunder), all documents and information concerning the other party or any of its Affiliates furnished to it by the other party in connection with this
Agreement or the transactions contemplated hereby, including, without limitation, the terms and conditions of this Agreement except to the extent that such documents or information can be shown to have been: (a) previously known by the party
receiving such documents or information; (b) in the public domain (either prior to or after the furnishing of such documents or information hereunder) through no fault of such receiving party; or (c) later acquired by the receiving party
from another source if the receiving party is not aware that such source is under an obligation to another party hereto to keep such documents and information confidential. In the event the transactions contemplated hereby are not consummated, upon
the request of the other party, each party hereto shall, and shall cause its Affiliates to, promptly redeliver or cause to be redelivered all copies of documents and information furnished by the other party in connection with this Agreement or the
transactions contemplated hereby and destroy or cause to be destroyed all notes, memoranda, summaries, analyses, compilations and other writings related thereto or based thereon prepared by the party furnished such documents and information.

 11.12 Exercise of Rights. A party may exercise a right, power or remedy at its discretion, and separately or concurrently with
another right, power or remedy. A single or partial exercise of a right, power or remedy by a party does not prevent a further exercise of that or of any other right, power or remedy. Failure by a party to exercise or delay in exercising a right,
power or remedy does not prevent its exercise. The rights, powers and remedies provided in this Agreement are cumulative with and not exclusive of the rights, powers or remedies provided by law independently of this Agreement. 
 11.13 Further Assurances. Each party agrees, at its own expense, on the request of any other party, to do everything reasonably necessary to give
effect to this Agreement and the transactions contemplated by it (including, without limitation, the execution of documents) and to use all reasonable endeavours to cause relevant third parties to do likewise. 
 11.14 Rule of Construction. As each of the parties has reviewed this Agreement and has had the opportunity to make revisions, the parties agree
that any rule of construction to the effect that any ambiguities are to be construed against the drafting party shall not apply in the interpretation of this Agreement or any of the Transaction Documents. 
 11.15 Entire Agreement. (a) The parties acknowledge that this Agreement has been negotiated on the basis that: 
 (i) this Agreement and the Disclosure Letter, and the documents in the Agreed 

  

 46 

 
Form contain the entire agreement and understanding of the parties in connection with the subject matter thereof, and supersede and extinguish all previous
agreements between the parties relating to subject matter thereof; 
 (ii) this Agreement has been freely negotiated between
the parties, each of whom has received, or had the opportunity to receive, independent legal advice; and 
 (iii) it is
reasonable for each party to assume that, unless the other parties have asked for any oral representations to be contained within or incorporated into this Agreement, it is not relying upon the oral representation, 
 and accordingly the parties agree that no party will in any respect be responsible for any oral representations made to any other party or their
respective representatives during the course of negotiations leading to exchange of this Agreement whether under sections 2(1) or 2(2) of the Misrepresentation Act 1967 or otherwise, save to the extent that they are incorporated into this Agreement
or have been made fraudulently. 
 (b) No variations to this Agreement shall be effective unless made in writing and signed by all of the
parties to this Agreement. 
 11.16 Rescission and Repudiation. The Purchaser agrees that a breach by the Sellers (or any of them) of
any of the terms of this Agreement shall not entitle the Purchaser to rescind or repudiate this Agreement. 
 11.17 Counterparts. This
Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. Facsimile signatures shall be treated as originals. 
 11.18 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of England without giving effect to the
conflicts of laws principles thereof. 
 11.19 Jurisdiction. Any suit, action or proceeding seeking to enforce any provision of, or
based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought against any of the parties in the courts of England and each of the parties hereby consents to the exclusive
jurisdiction of such courts (and of the appropriate appellate courts) in any such suit, action or proceeding and waives any objection to venue laid therein. 
 * * * * * * * * * * 
  

 47 

 IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized officer of
each party hereto, and shall be effective as of the date first above written 
  

					
		 	ROSS SYSTEMS, INC.
			
		 	By:	 	 /s/ Verome M. Johnston

		 	Name:	 	Verome M. Johnston
		 	Title:	 	Chief Financial Officer
		
		 	3i GROUP PLC
			
		 	By:	 	 /s/ SJ Lowey

		 	Name:	 	SJ Lowey
		 	Title:	 	Investment Director
		 		 	a duly authorized attorney for and on behalf of 3i Group Plc.
		
		 	THE PARKMEAD GROUP PLC
			
		 	By:	 	 /s/ Gordon Ashworth

		 	Name:	 	Gordon Ashworth
		 	Title:	 	Director
		
		 	JAMES HEAVEY
		
		 	 /s/ James Heavey

		
		 	CATHAL NAUGHTON
		
		 	 /s/ Cathal Naughton

		
		 	MICHAEL BREARE
		
		 	 /s/ Michael Breare

  

											
					
		 		 		 		 	Solely for purposes of Section 11.04 hereof:
					
		 		 		 		 	CDC SOFTWARE CORPORATION
						
		 		 		 		 	By:	 	 /s/ Eric Musser

		 		 		 		 	Name:	 	Eric Musser
		 		 		 		 	Title:	 	President

  

 48Merger Agreement dated as of April 16, 2007

 Exhibit 4(a).14 
 Execution Copy 
  

 MERGER AGREEMENT 
 BY AND AMONG 
 CDC SOFTWARE, INC 
 AND

 CDC MERGER SUB, INC 
 AND 
 SARATOGA SYSTEMS
INC 
 AND 
 MR. ALVIN W. SMITH 
 MR. MARK R. ELCONIN 
 April 16, 2007 
  

  

 CDC/Saratoga – Merger Agreement 

 MERGER AGREEMENT 
 This MERGER AGREEMENT (this “Agreement”) is made and entered into as of April 16, 2007 by and among CDC Software, Inc, a Delaware corporation (“Buyer”), CDC Merger Sub,
Inc, a California corporation (“Merger Subsidiary”), Saratoga Systems Inc, a California corporation (the “Company”) and Mr. Mark R. Elconin, having a residential address at 15315 Bohlman Rd, Saratoga,
CA 95070 and Mr. Alvin W. Smith, having a residential address at 125 Stacia St, Los Gatos, CA 95030 (collectively the “Stockholders”). 
 RECITALS 
 A. The Board of Directors of the Company has determined that the merger of Merger
Subsidiary with and into the Company (the “Merger”) and this Agreement are fair to, and in the best interests of, the Company and the Stockholders and has declared its advisability to recommend that the Stockholders vote
their shares in favor of the Merger; and 
 B. As at the date of the Agreement, the Stockholders are the registered holders and beneficial
owners of 100% of the issued and outstanding shares in the capital of the Company as set out in Schedule 3.4(a) of the Company Disclosure Schedule (as defined herein) and have agreed to enter into this Agreement and the Merger on the terms
and conditions contained in this Agreement; and 
 C. The Stockholders have approved that the Company enter into this Agreement and the
Merger on the terms and conditions contained in this Agreement. 
 NOW, THEREFORE, in consideration of the foregoing and the mutual promises,
covenants and conditions contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, each intending to be bound hereby, agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 1.1 Certain Defined Terms. As used in this Agreement, the following terms shall have the
following meanings: 
 “$” or “Dollar” shall mean the United States dollar, the legal currency
of the United States. 
 “Affiliate” means an “affiliate” within the meaning of Rule 144 promulgated under
the Securities Act. 
 “Business” means any business conducted by the Company and/or any of its Subsidiaries as at
the date of this Agreement and during the preceding calendar year. 
 “Business Day” shall mean a day other than
Saturday, Sunday or any day on which banks located in California are authorized or obligated to close. 
 “Closing”
shall have the meaning given to such term in Section 2.2(f). 
 “Closing Balance Sheet” means the unaudited
consolidated balance sheet of the Company and its Subsidiaries prepared in accordance with GAAP (as applied by the Company consistent with past practices and prior periods in the Closing Balance Sheet provided always that such application was
not contrary to GAAP as at Closing, including, without limitation, all accruals and prepared as if such Closing Balance Sheet was a year end balance sheet. 
  

 2 

 “Closing Consideration” shall have the meaning given to such term in
Section 2.2(a). 
 “Closing Date” shall have the meaning given to such term in Section 2.2(f) 
 “Closing Net Asset Value” means the Net Asset Value as of the Closing Date. 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Company Balance Sheet” shall have the meaning set forth in Section 3.6. 
 “Company Stock” means the common stock of the Company, no par value per share. 
 “Company Stock Plans” shall have the meaning given to such term in Section 2.4(b). 
 “Contract” means any current contract, agreement, arrangement, commitment, undertaking, instrument, mortgage, license,
sublicense, lease, letter of intent, binding quotation or purchase order (in each case, whether oral or in writing). 
 “Damages” shall have the meaning given to such term in Section 9.2(a). 
 “Effective
Time” shall mean the time at which the Surviving Corporation files the Certificate of Merger with the Secretary of State of California. 
 “Encumbrance” means, with respect to any asset, any mortgage, deed of trust, lien, pledge, charge, security interest, title retention device, conditional sale or other security arrangement,
collateral assignment, claim, charge, adverse claim of title, ownership or right to use, restriction or other encumbrance of any kind in respect of such asset (including any restriction on (a) the voting of any security or the transfer of any
security or other asset, (b) the receipt of any income derived from any asset, (c) the use of any asset, or (d) the possession, exercise or transfer of any other attribute of ownership of any asset). 
 “Environmental Laws” means any federal, state, local or foreign law (including, without limitation, common law), treaty, judicial
decision, regulation, rule, judgement, order, decree, injunction, permit or governmental restrictions or requirement or any agreement with any governmental authority or other third party, whether now or hereafter in effect, relating to human health
and safety, the environment or to pollutants, contaminants, wastes or chemicals or any toxic, radioactive, ignitable, corrosive, reactive or otherwise hazardous substances, wastes or materials. 
 “Estimated Closing Net Asset Value” shall have the meaning given to such term in Section 2.7(a). 
 “Estimated Closing Net Asset Value Adjustment” shall have the meaning given to such term in Section 2.7(b). 
 “Escrow Account” shall mean the “Saratoga – CDC Escrow Account” held in an interest bearing account by the Escrow
Agent for the benefit of the Stockholder’s Representative and the Buyer jointly with Mellon Bank, N.A. , a national banking association with its principal place of business at One Mellon Center, Pittsburgh, PA 15258. 
  

 3 

 “Escrow Account Instruction Letter” shall have the meaning given to such term in
Section 2.8(a). 
 “Escrow Agent” shall mean Mellon Bank, N.A., a national banking association with its
principal place of business at One Mellon Center, Pittsburgh, PA 15258. 
 “Escrow Agent Fees” shall mean the fees of
the Escrow Agent associated or in connection with the operation of the Escrow Account for the Holdback Period. 
 “Escrow
Sum” shall mean the balance of the Escrow Account from time to time. 
 “Executives” shall mean each of
the Stockholders and Kenneth Rose, the CFO of the Company. 
 “GAAP” means United States generally accepted
accounting principles. 
 “Governmental Entity” means any supranational, national, state, municipal, local or foreign
government, any court, tribunal, arbitrator, administrative agency, commission or other governmental official, authority or instrumentality, in each case whether domestic or foreign, any stock exchange or similar self-regulatory organization or any
quasi-governmental or private body exercising any regulatory, Tax or other governmental authority. 
 “Holdback
Consideration” shall have the meaning set forth in Section 2.8. 
 “Holdback Period” shall mean the
period starting on the day following the Closing Date and ending eighteen (18) months thereafter. 
 “Intellectual Property
Rights” means worldwide industrial and intellectual property rights and all rights associated therewith, including all patents and applications therefor and all reissues, divisions, renewals, extensions, provisionals, continuations and
continuations-in-part thereof, all inventions (whether patentable or not), invention disclosures, improvements, trade secrets, proprietary information, know how, technology, technical data, proprietary processes and formulae, algorithms,
specifications, customer lists and supplier lists, all industrial designs and any registrations and applications therefor, all trade names, logos, common law trademarks and service marks, trademark and service mark registrations and applications
therefor, Internet domain names, Internet and World Wide Web URLs or addresses, all copyrights, copyright registrations and applications therefor, and all other rights corresponding thereto, all mask works, mask work registrations and applications
therefor, and any equivalent or similar rights in semiconductor masks, layouts, architectures or topology, all computer software, including all source code, object code, firmware, development tools, files, records and data, all schematics, netlists,
test methodologies, test vectors, emulation and simulation tools and reports, hardware development tools, and all rights in prototypes, breadboards and other devices, all databases and data collections and all rights therein, all moral and economic
rights of authors and inventors, however denominated, and any similar or equivalent rights to any of the foregoing, and all tangible embodiments of the foregoing. 
 “IRS” means the Internal Revenue Service. 
 “Independent
Expert” shall have the meaning set forth in Section 2.7(d). 
 “Knowledge” means, with respect to
any fact, circumstance, event or other matter in question, the actual knowledge of such fact, circumstance, event or other matter of (a) an individual, if used in reference to an individual, or (b) with respect to any Person that is not an
individual, the directors and officers of such Person including, without limitation, with respect to the Company the actual knowledge 

  

 4 

 
of the Executives and Stockholders. Any such individual or Person shall be deemed to have actual knowledge of a particular fact, circumstance, event or other
matter if such fact, circumstance, event or other matter is contained and/or stated in one or more documents (whether written or electronic) in, or that have been in, the possession of such individual or Person or if such Person would have had
actual knowledge if he had of made due and proper inquiries that would have been conducted in the ordinary course of business by a prudent Person in the position of such Person. 
 “Liability” shall mean any direct or indirect liability, indebtedness, obligation, expense, debt, claim, loss, damage,
deficiency, guaranty or endorsement of any nature, of or by any Person, whether absolute or contingent, known or unknown, secured or unsecured, recourse or non-recourse, filed or unfiled, accrued or unaccrued, due or to become due, or liquidated or
unliquidated. 
 “Loss” shall mean any and all damages, fines, fees, penalties, deficiencies, losses and expenses
(including without limitation interest, reasonable court costs, reasonable fees of attorneys, reasonable retainers, reasonable fees of accountants and other experts or other reasonable expenses of litigation, reasonable witnesses costs/expenses or
other proceedings or of any claim, default or assessment). 
 “Material Adverse Change” or “Material
Adverse Effect” means when used with reference to (i) any Person, shall mean any event, change, violation, circumstance or effect (regardless of whether such event, change, violation, circumstance or effect is inconsistent with any
representations or warranties made in this Agreement) that is or is reasonably likely to be, individually or in the aggregate, materially adverse to the condition (financial or otherwise), properties, employees, assets (including intangible assets),
business, operations or results of operations of such Person and its Subsidiaries, taken as a whole, and (ii) the Business, shall mean a material diminution in the value or condition (financial or otherwise) of such Business, provided, however,
that Material Adverse Change and Material Adverse Effect shall not include any adverse event, change or effect resulting from (i) general economic or industry-wide conditions (to the extent that such adverse effect is not disproportionate with
respect to the Company or the Business, (ii) acts of terrorism or military action or the threat thereof which do not disproportionately affect the Business or the Company, (iii) this Agreement or the transactions contemplated hereby,
(iv) any change in accounting requirements or principles or any change in applicable law (to the extent that such adverse effect is not disproportionate with respect to the Company or the Business), or (v) compliance with the terms of, or
taking any action required by, this Agreement or with the consent of the Buyer. 
 “Merger” shall have the meaning
set forth in the Recitals. 
 “Net Receivables” shall mean gross receivables less an allowance for uncollected
receivables as determined in accordance with GAAP. 
 “NAV Adjustment” shall have the meaning set forth in
Section 2.7. 
 “NAV Notice of Objection” shall have the meaning set forth in Section 2.7(c). 

“Net Asset Value” shall mean the Company’s and its Subsidiaries’ total consolidated current assets less total
liabilities, as determined in accordance with GAAP, excluding each of the following: any debt, loans, bank overdrafts, credit lines, Transaction Incentives, any payments made under Section 2.4 to Optionholders and/or beneficiaries of
outstanding Compensation Arrangements and all fees and expenses of any legal advisor, investment banker, broker, finder, accountant, financial advisor, tax advisor, or similar advisor associated with and payable as a result of transactions
contemplated under this Agreement. 
  

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 “Option” shall mean each outstanding stock option or similar rights to purchase
shares of Company Stock (or any stock of any of its Subsidiaries) whether vested or unvested and whether promised or actually granted and “Options” shall have a corresponding meaning. 
 “Optionholder” shall mean the holder of an Option, whether vested or unvested and whether promised or actually granted and
“Optionholders” shall have a corresponding meaning. 
 “outstanding Compensation
Arrangements” means any outstanding equity compensation and quasi equity compensation plans and agreements maintained by the Company and/or its Subsidiaries including without limitation any “Company Value Appreciation Bonus
Agreements” granted by the Company to certain of its employees. 
 “Person” means any natural person, company,
corporation, limited liability company, general partnership, limited partnership, trust, proprietorship, joint venture, business organization or Governmental Entity. 
 “Permitted Encumbrances” means (i) statutory liens for Taxes to the extent that the payment thereof is not due, (ii) encumbrances in the nature of zoning restrictions, easements,
rights or restrictions of record on the use of real property if the same do not impair its use in the Company’s business as currently conducted, (iii) statutory or common law liens to secure landlords, lessors or renters under leases or
rental agreements confined to the premises rented to the extent that no payment or performance under any such lease or rental agreement is in arrears or is otherwise due, (iv) deposits or pledges made in connection with, or to secure payment
of, worker’s compensation, unemployment insurance, pension programs mandated under applicable laws or regulations or other social security, and (v) statutory or common law liens in favor of carriers, warehousemen, mechanics and
materialmen, statutory or common law liens to secure claims for labor, materials or supplies and other similar, non-consensual liens arising in the ordinary course of business, which secure obligations to the extent that payment thereof is not in
arrears or otherwise due. 
 “Release Agreement” shall have the meaning set forth in Section 2.4(a). 

“Review Period” shall have the meaning set forth in Section 2.7(c). 
 “SEC” means the U.S. Securities and Exchange Commission. 
 “Securities Act” means the Securities Act of 1933, as amended and the rules and regulations promulgated thereunder or any similar
U.S. federal statute and the rules and regulations of the SEC thereunder. 
 “Software” means, collectively, all of
the software sold by the Company and/or its Subsidiaries in the ordinary course of business up to and including the Closing Date, in any form (including all software programs, objects, modules, routines, algorithms and code, in both source code and
object code form), and includes without limitation (a) all past and current versions and releases of the Company’s software products and all versions or releases under development as of the Closing Date, (b) any other software owned
by the Company and/or any of its Subsidiaries or to which the Company (and/or its Subsidiaries) otherwise has rights that is, has been or is intended to be used by the Company (and/or its Subsidiaries) in connection with the Business and/or the
design, development, testing, maintenance or utilization of the software described in this paragraph, and (c) all derivative works of any of the software described in this paragraph which have been made or developed by the Company. 

 

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 “Stockholders” shall mean Mr. Alvin W. Smith and Mr. Mark R.
Elconin being the registered holders and beneficial owners of 100% of the issued and outstanding shares in the capital of the Company as of the date of this Agreement and “Stockholder” shall have a corresponding meaning.

 “Stockholders’ Representative” shall mean Mr. Mark R. Elconin. 
 “Subsidiary” of a specified entity means any corporation, association, business entity, partnership, limited liability company or
other Person of which the specified entity, either alone or together with one or more Subsidiaries or by one or more other Subsidiaries (a) directly or indirectly owns or controls securities or other interests representing more than 50% of the
voting power of such Person or (b) is entitled, by contract or otherwise, to elect, appoint or designate directors constituting a majority of the members of such Person’s board of directors or other governing body. 
 “Surviving Corporation” means the Company, as the surviving corporation in the Merger. 
 “Tax” (and, with correlative meaning, “Taxes” and “Taxable”) means (a) any
income, alternative or add-on minimum tax, gross income, estimated, gross receipts, sales, use, ad valorem, value added, transfer, franchise, capital stock, profits, license, registration, withholding, payroll, social security (or equivalent),
employment, unemployment, disability, excise, severance, stamp, occupation, premium, property (real, tangible or intangible), environmental or windfall profit tax, custom duty or other Tax, governmental fee or other like assessment or charge of any
kind whatsoever, together with any interest or any penalty, addition to Tax or additional amount (whether disputed or not) imposed by any Governmental Entity responsible for the imposition of any such Tax (domestic or foreign), (b) any
Liability for the payment of any amounts of the type described in clause (a) of this sentence as a result of being a member of an affiliated, consolidated, combined, unitary or aggregate group for any Taxable period, and (c) any Liability
for the payment of any amounts of the type described in clause (a) or (b) of this sentence as a result of being a transferee of or successor to any Person or as a result of any express or implied obligation to assume such Taxes or to
indemnify any other Person. 
 “Total Consideration” means, collectively, the Closing Consideration and the Holdback
Consideration. 
 “Transaction Incentives” shall mean all amounts payable by the Company and/or any Subsidiary by way
of bonuses, commissions, and other incentives associated with and payable as a result of transactions contemplated under this Agreement. 
 “True-Up Net Asset Value” shall have the meaning set forth in Section 2.7(b). 
 “Warrants” shall mean a warrant (if any) or other contractual right to purchase or acquire shares of Company Stock; provided, however, that the Options shall not be considered Warrants. 
 Other capitalized terms defined elsewhere in this Agreement and not defined in this Article I shall have the meanings assigned to such terms in this
Agreement. 
 ARTICLE II  
 THE MERGER 
 2.1 The Merger. Upon and subject to the terms and conditions of this Agreement, Merger Subsidiary shall
merge with and into the Company at the Effective Time. From and after the Effective Time, the separate corporate existence of the Merger Subsidiary shall cease and the Company shall continue as the Surviving Corporation. The effect of the Merger
shall be as provided in the applicable provisions of the General Corporation Law of the State of California (the “CCL”). 
  

 7 

 2.2 Closing Consideration and Conversion of Shares. 
 (a) The aggregate amount to be paid by Buyer on the Closing Date with respect to the outstanding shares of Company Stock (the “Closing
Consideration”), to be allocated as set forth in Sections 2.2(b),(c) and (d), shall equal (i) $35,000,000, minus (ii) the unpaid principal amount of, and accrued interest on, all indebtedness for borrowed money of the Company
and/or its Subsidiaries (excluding any indebtedness between or among the Company and/or its Subsidiaries) not satisfied on or prior to the Closing by the Company or Stockholders on behalf of the Company including, without limitation the unpaid
balance of all debts (other than ordinary accounts payable as shown on the Closing Balance Sheet), loans, bank facilities, credit facilities, lines of credit and similar liabilities of the Company and/or its Subsidiaries outstanding at the Closing
Date, minus (iii) the amount of all fees and expenses of the Company and/or its Subsidiaries paid, payable, and due to be payable, in connection with the transactions contemplated by this Agreement including, without limitation, all fees and
expenses associated with or relating or any legal advisor, investment banker, broker, finder, accounting advisor, financial advisor, tax advisor or similar party, minus (iv) the Estimated Closing Net Asset Value Adjustment, minus (v) the
Holdback Consideration, minus (vi) one half of the Escrow Agent’s Fees, and minus (vii) any other adjustments or deductions provided for in Section 2.4, Section 2.7, Section 2.9, Section 2.10 and Section 2.11.
Schedule 2.2(a) hereto sets forth (i) an estimated amount of the Closing Consideration calculated in accordance with this Section 2.2(a) as at the date of this Agreement, and (ii) an estimated the amount of Closing
Consideration payable to each Stockholder as calculated as at the date of this Agreement (subject to any adjustments required to be made to the Closing Consideration post Closing as provided for in Sections 2.4, 2.7, 2.9, 2.10 and 2.11). 

(b) At the Effective Time, (i) each share of Company Stock issued and outstanding immediately prior to the Effective Time shall be automatically
converted into the right to receive an amount in cash equal to the amount set forth in Schedule 2.2(a) hereto. Upon receipt of each Stockholder’s bank account details and subject to the closing conditions set forth in Article VII, the
Buyer shall immediately pay to each Stockholder (by wire transfer) his pro-rata portion of the Closing Consideration as set forth in Schedule 2.2(a), in cash. 
 (c) Effective at the Effective Time, by virtue of the Merger and without any action on the part of any party or the holder of any of the following securities, (A) each of the Company Stock held in the
Company’s treasury immediately prior to the Effective Time shall be cancelled and retired without payment of any consideration thereto except as may be expressly set forth in this Agreement, (B) all Company Stock shall no longer be
outstanding and shall automatically be cancelled and shall cease to exist, and each holder of a certificate representing any such share of Company Stock shall cease to have any rights with respect thereto, except the right to receive such
holder’s share of the Closing Consideration pursuant to this Section 2.2 upon the surrender of such certificate in accordance with this Agreement, without interest, and (C) each share of common stock, no par value per share, of Merger
Subsidiary issued and outstanding immediately prior to the Effective Time shall be converted into and thereafter evidence one share of common stock, $0.01 par value per share, of the Surviving Corporation. 
 (d) At the Closing, Stockholders shall deliver to the Buyer, in addition to all required closing documentation as set forth in Article VII hereto, the
certificates representing all Company Stock, along with a customary letter of transmittal, from the Stockholders for cancellation. If payment under this Section 2.2 is to be made to a Person other than the Person in whose name the surrendered
certificate formerly evidencing Company Stock is registered in the stock transfer books of the Company, it shall be a condition of payment that the certificate so surrendered shall be endorsed properly or otherwise be in 

  

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proper form for transfer and that the Person requesting such payment shall have paid all transfer and other taxes required by reason of the payment of the
Closing Consideration to a Person other than the registered holder of the certificate surrendered. After the Effective Time, the holders of the certificates representing all of the Company Stock shall cease to have any rights whatsoever with respect
to such certificates. 
 (e) All amounts paid to the Stockholders under this Agreement (including both the Closing Consideration and the
Holdback Consideration (if any)) shall be apportioned between the Stockholders in accordance with their pro-rata shareholding in the Company at the Closing as set forth in Schedule 2.2(a). 
 (f) The closing of the Merger (the “Closing”) shall take place as soon as practicable after the satisfaction or waiver of each of
the conditions set forth in Article VII or at such other time as the parties hereto agree in writing. The Closing shall take place at an office of the Buyer in North America as determined by it, or at such other location as the parties hereto agree.
The date on which the Closing actually occurs is herein referred to as the “Closing Date.” 
 (g) Subject to Closing,
each Stockholder hereby releases and forever discharges any and all known or unknown claims, causes of action, promises or similar rights of any type (however described and however arising) that existed prior to the Effective Time that it or any of
its Affiliates may have against or relating to the Company or any Subsidiaries including without limitation those existing under the Shareholders Agreement dated January 1, 1989 (“Shareholders Agreement”). Without
limiting the preceding sentence, each Stockholder hereby confirms that he is not, and will not following Closing, in any way be entitled to any payment from the Company or any Subsidiary except as may be expressly set forth in this Agreement. The
Stockholders hereby covenant and agree that effective as at the Effective Time, the Shareholders Agreement shall be terminated and have no further force or effect. Each Stockholder and the Company agree that as of the Effective Time the Shareholders
Agreement shall be terminated and of no further force or effect. 
 2.3 No Dissenting Shares – Stockholders Consent. The
Stockholders, being the holders of 100% of the issued and outstanding Company Stock as of the date of this Agreement , hereby consent to the Merger. Accordingly, the Company and each Stockholder hereby covenant and agrees that no Stockholder shall
be exercising its appraisal rights under the CCL and each Stockholder’s Company Stock shall be converted into the right to receive the respective portion of the Closing Consideration determined pursuant to this Agreement and each of such
Stockholder’s Company Stock shall upon Closing be deemed to have been converted into and to have become, as of the Effective Time, the right to receive, without interest or dividends thereon, the respective portion of the Closing Consideration
determined pursuant to this Agreement. 
 2.4 Options, and Company Stock Plans. 
 (a) Release from Optionholders or Termination of Options. In connection with the Merger each Stockholder hereby jointly and severally covenants and
agrees for the benefit of the Buyer and the Surviving Corporation that prior to Closing, either (i) each Optionholder shall (in a form reasonably acceptable to the Buyer) (the “Release Agreement”) release and forever
discharge the Company, its Subsidiaries, the Buyer, the Merger Subsidiary and the Surviving Corporation from any and all known or unknown claims, causes of action, promises or similar rights of any type (however described and however arising) that
such holder of an Option may currently have, or may have in the future, against such entities in relation to, or in connection with, any Option, or (ii) all Options shall be able to be terminated in accordance with the provisions of the Company
Stock Plans (as defined below) or the terms of any individual option agreements existing outside of the Company Stock Plans. . The Stockholders will not be in breach of this Section 2.4(a) to the extent that the Buyer has waived the
closing condition in 

  

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Section 7.3(e)(A) with respect to the Stockholder’s failure or inability to obtain a Release Agreement from any particular employee or employees of
Subsidiaries who were promised a grant of Option or any decision by the Buyer not to close the transaction on the basis of such failure or inability. 
 (b) Amounts due to Optionholders and Cancellation of Options. Each Stockholder jointly and severally covenants and agrees for the benefit of the Buyer and the Surviving Corporation that effective upon the
Closing, (i) each then-outstanding Option, to the extent unexercised, shall thereafter no longer be exercisable, but shall entitle such Optionholder, in cancellation and settlement therefor, in the case of an Optionholder executing a release
(in a form reasonably acceptable to the Buyer), to a payment in cash from the Company within 21-days of Closing, in such amounts as specified in Schedule 2.4(b) and, in the case of the lapse of 15 days following receipt by each such
Optionholder of the letter of notification (as required by Section 11(c) of the Company Stock Plans) and Release Agreement, to no payment and (ii) all outstanding individual option agreements both within and outside of the Company Stock
Plans (defined below), shall thereafter no longer be exercisable. Further, prior to Closing, the Stockholders and the Board of Directors of the Company shall adopt appropriate resolutions and take all other actions necessary to terminate all equity
compensation plans maintained by the Company and/or its Subsidiaries including without limitation the equity compensation plans titled “Stock Option Plan 1999” and “The Stock Option Substitution Plan 1999” (the
“Company Stock Plans”) and will provide notice of such termination of the Company Stock Plans to holders of all outstanding individual option agreements outside of the Company Stock Plans. 
 (c) Amounts Due to Holders of Outstanding Compensation Arrangements. Each Stockholder hereby jointly and severally covenants and agrees for the
benefit of the Buyer and the Surviving Corporation that upon the receipt by the holders of outstanding Compensation Arrangements of the payment in cash from the Company in such amounts as specified in Schedule 2.4(c), all outstanding
Compensation Arrangements shall thereafter no longer be enforceable against the Company. 
 (d) Payment to Optionholders and holders of
outstanding Compensation Arrangements. Each Stockholder hereby jointly and severally covenants and agrees for the benefit of the Buyer and the Surviving Corporation that: 
 (A) each payment to Optionholders in addition to all applicable Taxes as set forth in Schedule 2.4(b) will be deducted from the
Closing Consideration to be paid to the Stockholders; provided, however, that if the Buyer does not cause the Company to make such payment to any Optionholder within 21-days after the Closing for any reason other than such Optionholder
failing to execute a Release Agreement, then such unpaid amounts (if any) shall be refunded to the Stockholders; 
 (B) each
payment as specified under the heading “Gross Bonus” as set forth in Schedule 2.4(d)(B) plus all applicable Taxes will be deducted from the Closing Consideration to be paid to the Stockholders; provided, however, that
if the Buyer does not cause the Company to make such payment to any Optionholder within 21-days after the Closing for any reason other than such Optionholder failing to execute a Release Agreement, then such unpaid amounts (if any) shall be refunded
to the Stockholders; 
 (C) each payments to holders of outstanding Compensation Arrangements as required under those
arrangements and as set out in Schedule 2.4(c) plus all applicable Taxes will be deducted from the Closing Consideration to be paid to the Stockholders; provided, however, that if the Buyer does not cause the Company to make
such payments within 21-days after Closing, then such amounts shall be refunded to the Stockholders; and 
  

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 (D) in the event that the Buyer does not cause the Company to make any payments set forth
in this Section 2.4(d) within 21-days after the Closing for the reason that such Optionholder and/or holder of any outstanding Compensation Arrangements has failed to execute a Release Agreement (if applicable), then such unpaid amounts (if
any) shall be forwarded to the Escrow Agent and form part of the Escrow Sum and released to the Buyer upon receipt by the Company of any such Release Agreement or otherwise released to the Stockholders in accordance with Section 2.8(h) and each
of the Buyer and the Stockholders’ Representative shall instruct the Escrow Agent accordingly. 
 2.5 Certificate of Incorporation
and By-laws. 
 (a) The Certificate of Incorporation (as amended) of the Company (the “Company Certificate”) shall
be amended at the Effective Time to be in the form attached to of Exhibit B and, as so amended, such Company Certificate shall be the Restated Certificate of Incorporation of the Surviving Corporation until thereafter changed or amended as
provided therein or by applicable law. 
 (b) The By-laws of the Company, as in effect immediately prior to the Effective Time, shall be the
By-laws of the Surviving Corporation until thereafter changed or amended as provided therein or by applicable law. 
 2.6 Closing of
Transfer Books. At the Effective Time, the stock transfer books of the Company shall be closed and no transfer of Company Stock shall thereafter be made. If, after the Effective Time, certificates formerly representing Company Stock are
presented to Buyer or the Surviving Corporation, they shall be cancelled. 
 2.7 NAV Adjustment. The “NAV
Adjustment” (if any) shall be determined as follows: 
 (a) At the Closing, the Buyer, the Company and the Stockholders shall
together prepare and agree upon a good faith estimate of the Closing Net Asset Value determined in accordance with GAAP as applied consistently in the Closing Balance Sheet provided always that such application was not contrary to GAAP (the
“Estimated Closing Net Asset Value”), and the Closing Balance Sheet, an estimate of which (as at the date of this Agreement) shall be set forth in Schedule 2.7 hereof. 
 (b) If the Estimated Closing Net Asset Value is less than (worse than) negative Three Million Six Hundred Ninety Five Thousand Dollars (-$3,695,000.00),
then the amount of the difference shall be deducted from the Closing Consideration to be paid by Buyer at Closing (such amount deducted to be the “Estimated Closing Net Asset Value Adjustment”). 
 (c) Within 75 days after the Closing Date, Buyer will prepare, or cause to be prepared, and deliver to the Stockholders’ Representative by written
notice, an unaudited statement which shall set forth Buyer’s good-faith calculation of the Closing Balance Sheet and Closing Net Asset Value (which shall be prepared in accordance with GAAP as applied consistently in the Closing Balance Sheet
provided always that such application was not contrary to GAAP and shall include reasonable detail and, where possible, actual numbers rather than accruals and any relevant underlying documentation which, in the Buyer’s opinion, is
required for the Stockholders’ Representative to understand and review the Buyer’s good faith calculation of the Closing Net Asset Value) (collectively the “True-up Net Asset Value”). Upon receipt from Buyer, the
Stockholders’ Representative shall have 21 days to review the True-Up Net Asset Value (the “Review Period”). If the Stockholders’ Representative disagrees with the True-Up Net Asset Value, the Stockholders’
Representative may, on or prior to the last day of the Review Period, deliver a notice to Buyer (the “NAV Notice of Objection”), which sets forth the Stockholders’ Representative’s objections to the
True-Up Net Asset Value. Any NAV Notice of Objection shall specify those items or amounts with which the Stockholders’ Representative disagrees shall set forth the Stockholders’ Representative’s calculation of the Closing Net Asset
Value based on such objections. 
  

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 (d) If the Stockholders’ Representative fails to deliver the NAV Notice of Objection to Buyer within
the Review Period, the Stockholders’ Representative and the Stockholders shall be deemed to have accepted the True-Up Net Asset Value, and the True-Up Net Asset Value shall be final, conclusive and binding on all parties as the Closing Net
Asset Value. If the Buyer fails to timely furnish the True-Up Net Asset Value, the Estimated Closing Net Asset Value shall be final, conclusive and binding on all parties as the Closing Net Asset Value. If the Stockholders’ Representative fails
to deliver the NAV Notice of Objection to Buyer within the Review Period, and the True-Up Net Asset Value is less than the Estimated Closing Net Asset Value, the Escrow Agent shall be immediately directed by the Stockholders’ Representative and
the Buyer to release the difference to the Buyer. If the Stockholders’ Representative delivers the NAV Notice of Objection to Buyer within the Review Period, Buyer and the Stockholders’ Representative shall, during the 30 days following
such delivery or any mutually agreed extension thereof, use their commercially reasonable efforts to reach agreement on the disputed items and amounts in order to mutually agree upon a Closing Net Asset Value. If, at the end of such period or any
mutually agreed extension thereof, Buyer and the Stockholders’ Representative are unable to so agree, they shall jointly retain and refer their disagreements to an independent certified public accountant mutually acceptable to Buyer and the
Stockholders’ Representative (the “Independent Expert”). The parties shall instruct the Independent Expert promptly to review this Agreement and to determine solely with respect to the disputed items and amounts so
submitted whether and to what extent, if any, the True-Up Net Asset Value requires adjustment to arrive at a correct Closing Net Asset Value. Buyer and the Stockholders’ Representative shall make available to the Independent Expert, and to each
other, all relevant books and records and other items reasonably requested, and shall provide to the Independent Expert such written and oral submissions and arguments as the Independent Expert may reasonably request. As promptly as practicable, but
in no event later than 45 days after its retention, the Independent Expert shall deliver to Buyer and the Stockholders’ Representative a report which sets forth its resolution of the disputed items and amounts and its calculation of the Closing
Net Asset Value provided that in no event shall the Closing Net Asset Value as determined by the Independent Expert be less than Buyer’s calculation of the True-Up Net Asset Value, nor more than the Stockholders’
Representative’s calculation of the Closing Net Asset Value set forth in the NAV Notice of Objection. The decision of the Independent Expert shall be final, conclusive and binding on the parties. The fees, costs and expenses of the Independent
Expert shall be shared equally by Buyer and the Stockholders’ Representative provided, however, that (i) if the Independent Expert determines that the Closing Net Asset Value varies from the True-Up Net Asset Value by greater
than 5% , the Buyer shall pay the fees, costs and expenses of the Independent Expert in full, (ii) if the Independent Expert determines that the Closing Net Asset Value varies from the True-Up Net Asset Value by less than 5%, the
Stockholders’ Representative shall pay the fees, costs and expenses of the Independent Expert in full; and (iii) if the Independent Expert determines that the Closing Net Asset Value varies from the True-Up Net Asset Value by exactly 5%,
the Buyer and the Stockholders’ Representative shall equally share the fees, costs and expenses of the Independent Expert in full. 
 (e) If under this Section 2.7 the Closing Net Asset Value is finally determined to be less than the Estimated Closing Net Asset Value, the Buyer and Stockholders’ Representative shall immediately direct the Escrow Agent to deliver
the difference to Buyer. 
 2.8 Escrow, Holdback and Release of Escrow. 
 (a) The Buyer and the Stockholders agree to execute and deliver to the Escrow Agent the Escrow Agreement as attached hereto as Exhibit A (the
“Escrow Account Instruction Letter”) in relation to the establishment and dealings of the Escrow Account. Simultaneous with Closing, Buyer 

  

 12 

 
agrees to deposit with the Escrow Agent, under and subject to the terms of the Escrow Account Instruction Letter and this Agreement, the Holdback
Consideration which shall be the cash sum of Five Million Dollars ($5,000,000.00) (“Holdback Consideration”), which shall be the initial Escrow Sum. 
 (b) The Holdback Consideration shall be held by the Escrow Agent for the purpose and to the extent and satisfaction of any loss arising during the
Holdback Period in respect of the amount of any claim by the Buyer under this Agreement: (i) for breaches of, or inaccuracies in, the representations and warranties given by the Company and/or the Stockholders herein or the nonfulfillment of,
or failure to perform, any covenant or agreement on the part of the Stockholders and/or the Company contained in this Agreement (including without limitation any breaches of any of the representations and warranties in Article III and/or
Section 2.9 and any covenants or agreements given under Sections 2.3, 2.4, 2.9, 6.2, 6.6 and/or 6.8 hereof); and/ or (ii) pursuant to the indemnifications granted under Article IX; and/or (iii) pursuant to Sections 2.7(d), 2.9, 2.10
and/or 2.11 hereof (a “Claim”). 
 (c) At any time during the Holdback Period, the Buyer may forward to the
Stockholders’ Representative a notice of a Claim (“Claim Notice”) which sets forth in reasonable detail the nature and amount of the Claim (“Amount Claimed”) and includes any relevant underlying
documentation which, in the Buyer’s opinion, is required for the Stockholders’ Representative to understand and review the Buyer’s Claim. Upon receipt from Buyer, the Stockholders’ Representative shall have 21 days to review the
Claim Notice (the “Claim Review Period”). If the Stockholders’ Representative disagrees with the Amount Claimed, the Stockholders’ Representative may, on or prior to the last day of the Review Period, deliver a
notice to Buyer (the “Claim Notice of Objection”), which sets forth the Stockholders’ Representative’s objection to the Amount Claimed. Any Claim Notice of Objection shall specify those items and amounts with which
the Stockholders’ Representative disagrees and detailed reasons for such disagreement. If the Stockholders’ Representative fails to deliver a Claim Notice of Objection within the Review Period, the Stockholders’ Representative and the
Stockholders shall be deemed to have accepted the Claim and the Amount Claimed shall be final, conclusive and binding and the Escrow Agent shall be immediately directed by the Buyer and the Stockholders’ Representative to release to the Buyer
the Amount Claimed. If the Stockholders’ Representative delivers a Claim Notice of Objection to Buyer within the Claim Review Period, and such Claim Notice of Objection shows that only a proportion of the Amount Claimed is disputed, then the
balance of the Amount Claimed shall be deemed to have been accepted by the Stockholders and the Escrow Agent shall be immediately directed by the Buyer and the Stockholders to release to the Buyer such proportion of the Amount Claimed. Buyer and the
Stockholders’ Representative shall, during the 30 days following delivery of a Claim Notice of Objection or any mutually agreed extension thereof, use their commercially reasonable efforts to reach agreement on the disputed items and amounts in
order to agree upon the disputed Amount Claimed. If, at the end of such period or any mutually agreed extension thereof, Buyer and the Stockholders’ Representative are unable to resolve their disagreements, either shall be entitled to refer the
matter to the American Arbitration Association of San Francisco, California for determination (“AAA”), with the commercial arbitration rules of the AAA governing the arbitration, and if following either agreement between the
Buyer and the Stockholders’ Representative or a determination by the AAA, the Buyer and the Stockholders’ Representative shall jointly instruct the Escrow Agent in writing to release the agreed or determined Amount Claimed to the Buyer. In
the event that either the Stockholders’ Representative or the Buyer fails to give direction to the Escrow Agent in accordance with this Section, for whatever reason, the other may seek to obtain an order from a court of competent jurisdiction
that such instructions are given or treated as given. 
 (d) Each of the Buyer and the Stockholders shall ensure, during such period of time
as the Escrow Agent is holding any Escrow Sum, that all of its respective rights to such Escrow Sum remain free from any Encumbrance (other than that such Escrow Sums are held in escrow), set off or counterclaim. 
  

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 (e) Interest accruing from time to time on the Escrow Sum shall be added to the money standing to the
credit of the Escrow Account. Any proportion of interest shall be owned by and attributed to the party or parties who are ultimately adjudged in accordance with this Section to be the rightful owner of the respective amounts so held in escrow.

 (f) The Buyer, on the one hand, and the Stockholders, on the other hand, shall equally pay the Escrow Agent’s Fees. 
 (g) The Escrow Agent may withdraw from the Escrow Account an amount equal to any tax payable in respect of the interest earned in respect of the Escrow
Sum for which it is or may become liable. 
 (h) At the end of the Holdback Period, Buyer and Stockholders’ Representative shall
instruct the Escrow Agent to pay to each Stockholder (by wire transfer) his pro-rata portion of the entire then-remaining Escrow Sum in cash; provided, however, that if at the end of the Holdback Period a Claim is pending, Buyer and
Stockholders’ Representative shall instruct the Escrow Agent to withhold from such payment, and retain in the Escrow Account, the Amount Claimed with respect to such Claim until such Claim is finally resolved, and upon such final resolution
Buyer and Stockholders’ Representative shall instruct the Escrow Agent to pay such withheld amount to Buyer and the Stockholders in accordance with such final resolution. 
 2.9 Transaction Incentives. Each Stockholder covenants and agrees that all amounts (if any) payable, or determined by the Stockholders to be paid,
to current employees of the Company and/or any of its Subsidiaries by way of bonuses, commissions, and/or other incentives associated with the transactions contemplated under this Agreement and/or to be paid in recognition of service to the Company
(“Transaction Incentives”) are to be deducted from the Closing Consideration in accordance with Section 2.2(a)(v). Schedule 2.9 sets forth all Transaction Incentives. Except as set forth in Schedule 2.9,
each Stockholder represents and warrants for the benefit of the Buyer and the Surviving Corporation that neither the Company nor any of its Subsidiaries has any obligations to any of its current employees, contractors, officers or directors for any
bonus, commission, and/or similar incentive associated with or relating to the transactions contemplated under this Agreement or in recognition of their service to the Company. 
 2.10 Receivables. In the event that any Net Receivables contained in the Closing Balance Sheet (“Company Balance Sheet Net
Receivables”) are not actually received by the Company within one hundred and twenty (120) days following Closing despite reasonable collection diligence by Buyer, the difference between the Company Balance Sheet Net Receivables
and the Net Receivables actually received by the Company shall be released to the Buyer on a dollar-for-dollar basis from the Holdback Consideration and the Escrow Agent shall be immediately directed by the Stockholders’ Representative and the
Buyer accordingly. In the event that any such Company Balance Sheet Net Receivables are actually received by the Company after the one hundred and twenty (120) days following Closing but prior to one hundred and eighty (180) days following
Closing (“Receivables Return Period”), such Company Balance Sheet Net Receivables received during the Receivables Return Period, shall be set off by the Buyer and used as a credit in favor of the Buyer against any current or
future Claim it has against the Escrow Amount or in the event of no current or future Claim, returned to the Escrow Agent and added back to the Escrow Sum. 
  

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 2.11 Severances. 
 (a) If the employment of any of the employees of the Company and/or any Subsidiary is terminated on or prior to the expiration of ninety (90) days following Closing, Buyer shall be entitled to immediately receive
from the Holdback Consideration any severance, notice and/or other similar payment required to be paid to such employee under any agreement entered into prior to Closing which is over and above minimum statutory obligations (if any) and the Escrow
Agent shall be immediately directed by the Stockholders’ Representative and the Buyer accordingly. 
 (b) If the employment of the
current chief financial officer, Kenneth Rose, is terminated on or prior to the expiration of twelve (12) months following Closing, Buyer shall be entitled to receive from the Holdback Consideration the entire severance, notice and/or other
similar payment made (under any contract entered into by the Company prior to the Closing Date) to Mr. Rose that is not otherwise fully provided for as an accrual in the Estimated Closing Balance Sheet, and the Escrow Agent shall be immediately
directed by the Stockholders’ Representative and the Buyer accordingly. 
 (c) The Stockholders agree to terminate their employment by
the Company effective upon the Closing. Immediately prior to the Closing, the Company shall pay from its cash reserves to the Stockholders their outstanding employee expenses that are reasonable and substantiated, and accrued but unpaid paid time
off as the Company would ordinarily be legally required to pay to an employee who resigns his employment. Following the Closing, the Stockholders jointly and severally warrant and represent that none of the Company, any Subsidiary, the Buyer, the
Merger Subsidiary or the Surviving Company shall have any obligation whatsoever in relation to any severance, redundancy, notice or other payments to the Stockholders on account of their termination. 
 2.12 No Duplication of Adjustment or Recovery. Wherever in this Agreement a single fact or circumstance shall form two or more grounds for a claim
against or adjustment of any sum otherwise payable to the Stockholders, only one such claim or adjustment may be asserted. 
 ARTICLE
III  
 REPRESENTATIONS AND WARRANTIES OF THE COMPANY 
 Each Stockholder jointly and severally represents and warrants to the Buyer and the Company that each statement contained in this Article III is true and correct immediately prior to the Effective Time, except for the
exceptions set forth in the disclosure letter of the Company (the “Company Disclosure Letter”). Each section of the Company Disclosure Letter shall be deemed to incorporate by reference all information disclosed in any other
section of the Company Disclosure Letter. 
 3.1 Organization and Good Standing. 
 (a) The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of California. The Company has the
corporate power and authority to own, operate and lease its properties and to carry on its business as now conducted. The Company is duly qualified to do business, and is in good standing, in each jurisdiction in which it owns or leases property or
conducts any business so as to require such qualification, except where the failure to be so qualified would not reasonably be expected to have a Material Adverse Effect. 
 (b) Each of the Companies’ Subsidiaries are corporations duly organized, validly existing, and in good standing under laws of their jurisdictions of incorporation and have all corporate powers and all
governmental licenses, authorizations, permits, consents and approvals required to carry on their businesses as now conducted and to own, use and lease their assets and properties. Each of the Companies’ Subsidiaries is duly qualified to do
business in each jurisdiction where they carry on business and are in good standing in each jurisdiction where they carry on business, except where the failure to be so qualified would not reasonably be expected to have a Material Adverse Effect.

  

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 (c) During the preceding twelve (12) months from the Closing Date, the Company and its Subsidiaries
have only conducted business in those countries as set forth in Section 3.1(c) of the Company Disclosure Letter and are duly qualified, licensed or admitted to do business in each of such jurisdiction to the extent that such qualification,
license or admission is required by that jurisdiction’s laws, except where the failure to be so qualified, licensed or admitted would not reasonably be expected to have a Material Adverse Effect. The Company and its Subsidiaries have full
corporate power to own their properties, assets and business and to carry on their business operations and have done everything necessary to do business lawfully in the aforementioned jurisdictions, except where the failure to do such things would
not reasonably be expected to have a Material Adverse Effect. 
 (d) The name of each director and officer of the Company and its
Subsidiaries on the Closing Date, and the position with the Company and/or Subsidiaries held by each, are listed in Schedule 3.1 of the Company Disclosure Letter. 
 (e) The Company and its Subsidiaries have filed and/or registered all company filings that are required to be filed and/or registered with any Government Entity. 
 3.2 No Subsidiaries. The Company does not have any Subsidiaries or any equity or ownership interest, whether direct or indirect, in any Person.
The Company is not obligated to make, and is not bound by any agreement or obligation to make, any investment in or capital contribution in or on behalf of any other Person, and the Company is not a party to any joint venture. 
 3.3 Authorization; Noncontravention; Enforceability. 
 (a) Authorization. The Company has all requisite corporate power and authority to enter into, execute, deliver and perform its obligations under this Agreement and to consummate the transactions contemplated
hereby. The execution, delivery and performance by the Company of this Agreement and all other agreements, transactions and actions contemplated hereby have been duly and validly approved and authorized by the Company’s Board of Directors, and
will be on the Closing Date, duly and validly approved and authorized by the Company’s stockholders. 
 (b) Noncontravention. The
execution and delivery by the Company of this Agreement does not, and the consummation of the transactions contemplated hereby will not, (i) result in the creation of any Encumbrance, other than Permitted Encumbrances, on any of the assets of
the Company, or (ii) conflict with, or result in any violation of or default under (with or without notice or lapse of time, or both), or give rise to a right of termination, cancellation or acceleration of any obligation or loss of any benefit
under, or require any consent, approval or waiver from any Person pursuant to, (A) any provision of the Certificate of Incorporation or Bylaws of the Company, in each case as amended to date, or (B) any material Contract, concession,
franchise, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to the Company. No consent, approval, order or authorization of, or registration, declaration or filing with, any Governmental Entity or any other Person is
required by or with respect to the Company in connection with the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby. 
 (c) Enforceability. This Agreement has been duly executed and delivered by the Company and the Stockholders. This Agreement is a valid and binding obligation of the Company and the Stockholders, enforceable
against the Company and the Stockholders in accordance with its terms, subject only to the effect, if any, of (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to rights
of creditors generally and (ii) rules of law and equity governing specific performance, injunctive relief and other equitable remedies. 
  

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 (d) No Liens. The Company Stock and any ownership interest in any Subsidiary is not, and shall not
be, encumbered by any lien, encumbrance or other interests of any other third party whatsoever. The Stockholders, collectively, are the registered and beneficial owners of all of the Company Stock, and the Company is the registered and beneficial
owner of all of the ownership interests in the Subsidiaries, free and clear of any lien, encumbrance and any other limitation or restriction (including without limitation, any restriction on the right to vote, sell or otherwise dispose of such
ownership interests). None of the Company Stock or any ownership interest in any Subsidiary has been transferred, sold, exchanged, assigned or given as a gift, granted as a security interest, pledged or encumbered, made part of any voting trust or
other agreement or arrangement with respect to the transfer of voting rights therein. 
 3.4 Capitalization. 
 (a) The authorized capital stock of the Company consists solely of forty million (40,000,000) common shares of Company Stock, of which a total of
thirteen million (13,000,000) shares are issued and outstanding. Subject to the preceding sentence, there are no other types of shares in the Company whatsoever including without limitation any preferred stock. The numbers of issued and
outstanding shares of Company Stock held by each Stockholder are set forth on Schedule 3.4(a) of the Company Disclosure Letter, and no shares of Company Stock are issued or outstanding as of the date of this Agreement, or will be at the
Closing Date, that are not set forth on Schedule 3.4(a) of the Company Disclosure Letter and no such shares will be issued or outstanding as of the Closing Date that are not set forth on Schedule 3.4(a) of the Company Disclosure
Letter. Except as set forth on Schedule 3.4(a), there are no outstanding options or Warrants to purchase any shares of the Company, including without limitation, any Company Stock. Except as set forth on Schedule 3.4(a) of the Company
Disclosure Letter, there are no stock appreciation rights, options, warrants, calls, rights, commitments, conversion privileges or preemptive or other rights or agreements outstanding to purchase or otherwise acquire any shares of the Company
capital stock or any securities or debt convertible into or exchangeable for the Company capital stock. Except as contemplated by this Agreement, there are no voting agreements, voting trusts or proxies applicable to any of the Company’s
outstanding capital stock or to the conversion of any shares of the Company’s capital stock to which the Company is a party or pursuant to any other agreement or obligation. 
 (b) The authorized capital stock of each Subsidiary and the number of issued and outstanding shares of each Subsidiary is as set forth on Schedule
3.4(b) of the Company Disclosure Letter. Subject to the preceding sentence, there are no other types of shares each of the Company’s Subsidiaries whatsoever including without limitation any preferred stock. Except as set forth on
Schedule 3.4(b), there are no outstanding options or Warrants to purchase any shares of any of the Company’s Subsidiaries. Except as set forth on Schedule 3.4(b) of the Company Disclosure Letter, there are no stock appreciation
rights, options, warrants, calls, rights, commitments, conversion privileges or preemptive or other rights or agreements outstanding to purchase or otherwise acquire any shares of any of the Company Subsidiaries’ capital stock or any securities
or debt convertible into or exchangeable for Subsidiaries such capital stock. Except as contemplated by this Agreement, there are no voting agreements, voting trusts or proxies applicable to any of the Company’s Subsidiaries’ outstanding
capital stock or to the conversion of any such shares. 
 3.5 Litigation. 
 (a) There is no action, suit, arbitration, proceeding, inquiry, claim or investigation pending against, or to the Company’s Knowledge threatened
against or affecting either the Company, any 

  

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Subsidiary, any Stockholder or any of their respective properties or assets before any court or arbitrator or any governmental body, agency or official
(whether or not the defense thereof or liabilities in respect thereof are covered by insurance) whatsoever and to the Company’s Knowledge there is no reasonable basis for any such action, suit, proceeding, claim, arbitration, mediation or
investigation (any “Proceeding”). To the Company’s Knowledge, there are no facts existing as at the Closing Date would likely give rise to any Proceeding. 
 (b) There is no judgment, decree, injunction, rule or order against the Company. There is no reasonable basis for any Person to assert a claim against
the Company based upon: (A) the Company entering into this Agreement or any of the other transactions or agreements contemplated hereby; (B) any confidentiality or similar agreement entered into by the Company; or (C) any claim that
the Company has agreed to sell or dispose of its assets to any party other than Buyer, whether by way of merger, consolidation, sale of assets or otherwise. Except as set forth on Schedule 3.5 of the Company Disclosure Letter, the Company has
no action, suit, proceeding, claim, arbitration or mediation pending against any other Person, and neither the Company nor any Subsidiary have commenced or settled any legal proceedings within the last five (5) years. 
 (c) No claim has been made against the Company or any Subsidiary in connection with any defective product or services supplied by it in the course of
carrying on its business and the Company and each Subsidiary has maintained product liability insurance (covering bodily injury) for at least the last five (5) years against any such claim. 
 3.6 Financial. 
 (a) The Company has
delivered to Buyer as attachments to Schedule 3.6 of the Company Disclosure Letter (i) an unaudited, estimated consolidated balance sheet for the Business dated as of the Closing Date (the “Balance Sheet Date” and
such unaudited, estimated consolidated balance sheet, the “Company Balance Sheet”), (ii) an unaudited consolidated income statement and statement of cash flows for the three months ended March 31, 2007,
(iii) audited consolidated balance sheets of the Company dated December 31, 2005, and (iv) audited consolidated income statements and statements of cash flows for the years ended December 31, 2005 (all such financial statements
of the Company and any notes thereto are hereinafter collectively referred to as the “Company Financial Statements”). The Company Financial Statements: (i) are correct and complete in all material respects; (ii) are
derived from and are in accordance with the books and records of the Company in all material respects; (iii) fairly and accurately represent in all material respects the financial condition of the Business or the Company, as the case may be, at
the respective dates specified therein and the results of operations for the respective periods specified therein in conformity with GAAP; and (iv) have been prepared in accordance with GAAP (as applied by the Company consistent with past
practices provided always that such application was not contrary to GAAP), except for any absence of notes thereto and normal year-end adjustments. There has been no material change in the Company’s accounting policies other than as
specifically described in the notes to the Company Financial Statements. The Company has no Liabilities other than Liabilities set forth on the Closing Balance Sheet (provided that such Liability was required by GAAP to be set forth thereon).

 (b) The Company and each of its Subsidiaries is not directly or indirectly obliged in any way to guarantee, assume or provide funds to
satisfy an obligation of any Person. No letter of comfort has been given by the Company or any of its Subsidiaries. 
  

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 3.7 Taxes. 
 (a) The Company and each Subsidiary (i) has properly completed and timely filed all Tax and information returns and reports (collectively, “Tax Returns”) required to be filed by it,
(ii) has timely paid all Taxes required to be paid in respect of all periods for which Tax Returns have been filed, (iii) has established an adequate accrual or reserve for the payment of all Taxes payable in respect of the periods
subsequent to the periods covered by the most recent applicable Tax Returns up to the Closing Date, and (iv) has withheld all amounts required by any applicable laws or regulations to be withheld from compensation paid or owed to the
Company’s (or respective Subsidiaries’) employees, consultants, directors or other third parties. 
 (b) Neither the Company nor
any Subsidiary has received any written notice that a Tax Return is under audit by the IRS or other Governmental Entity, and any such past audits (if any) have been completed and fully resolved to the satisfaction of the applicable Governmental
Entity conducting such audit and all Taxes and any penalties or interest determined by such audit to be due from the Company (or such Subsidiary) have been paid in full to the applicable Governmental Entities. 
 (c) No Tax liens are currently in effect against the Company or any Subsidiary, except Permitted Encumbrances and Encumbrances for such Taxes not yet due
and payable. 
 (d) There is not in effect any waiver by the Company or any Subsidiary of any statute of limitations with respect to any
Taxes nor has the Company (or any Subsidiary) agreed to any extension of time for filing any such Tax Return that has not been filed, and neither the Company nor any Subsidiary has consented to extend to a date later than the date hereof the period
in which any such Tax may be assessed or collected by any Governmental Entity; and 
 (e) No benefit payable or which may become payable by
the Company or any Subsidiary pursuant to any employee plan or as a result of or arising under this Agreement will constitute an “excess parachute payment” (as defined in Section 280G(b)(1) of the Code) which is subject to the
imposition of an excise Tax under Section 4999 of the Code or which would not be deductible by reason of Section 280G of the Code. 
 (f) The Company has been a valid S corporation since January 1, 2005, and the Company and Stockholders shall not revoke the Company’s election to be taxed as an S corporation within the meaning of Sections 1361 and 1362 of the
Code. The Company and Stockholders shall not take or allow any action (other than pursuant to this Agreement or the operation of this Agreement) that would result in the termination of the Company’s status as a validly electing S corporation
within the meaning of Sections 1361 and 1362 of the Code. 
 (g) The Company has not recognized any income or gain, and will not recognize
any income or gain prior to the Effective Time that would be subject to built-in gains tax pursuant to Section 1374 of the Code. 
 (h)
The Company will not be required to include any item of income in, or exclude any item of deduction from, taxable income for any taxable period (or portion thereof) ending after the Effective Time as a result of any: (A) change in method of
accounting for a taxable period ending on or prior to the Effective Time; (B) “closing agreement” as described in Section 7121 of the Code (or any corresponding or similar provision of state, local, or foreign income Tax law)
executed on or prior to the Effective Time; and/or (C) installment sale or open transaction disposition made on or prior to the Effective Time; or (D) prepaid amount received on or prior to the Effective Time. 
 (i) The Company and each of its Subsidiaries has properly established an adequate accrual or reserve associated with documentation and analysis required
by each local jurisdiction, in 

  

 19 

 
which the Company (or such Subsidiary) is filing or is deemed to be required to file tax returns, that supports the existing transfer pricing methodology,
(i) for all periods in which Tax Returns have been filed, and (ii) for periods subsequent to the period covered by the most recent applicable Tax Returns up to the Closing Date. 
 3.8 Title to Assets; Sufficiency of Assets; Permits; Compliance. The Company and each of its Subsidiaries has good and marketable title to, or a
valid leasehold interest in, all of the Company’s (and such Subsidiary’s) assets, free and clear of any Encumbrances except Permitted Encumbrances, and as otherwise set forth in the Company Balance Sheet or on Schedule 3.8 of the
Company Disclosure Letter. The tangible personal property of the Company and each of its Subsidiaries is sufficient to enable the effective conduct of the Business after Closing consistent with the way the Business was carried on for the preceding
twelve (12) months prior to the Closing Date. All leases of real or personal property to which the Company or any Subsidiary is a party are fully effective. The Company and its Subsidiaries do not own any real property, and, since its
inception, the Company has not been a “United States real property holding corporation,” as defined in Section 897(c)(2) of the Code. Neither the Company nor any Subsidiary is in violation of any zoning, building, safety or
environmental ordinance, regulation or requirement applicable to the operation of its owned or leased properties or of any other applicable material law, nor has the Company or any Subsidiary received any written notice of any such violation. None
of the Company’s (or any Subsidiaries’) assets is licensed or leased from any third party and no royalties, license fees or similar payments are due or payable (or may become due or payable) to any third party under any contract. The
Company and each of its Subsidiaries is in possession of all registrations, franchises, grants, authorizations, licenses, permits, easements, variances, exceptions, consents, certificates and approvals of any Government Entity necessary for the
Company (and such Subsidiary) to own, lease and operate its properties or to carry on its business as it is now being conducted (“Permits”), except where the failure to do so would not reasonably be expected to have a
Material Adverse Effect. As of the date hereof, no suspension or cancellation of any of the Permits is pending, or to the Company’s Knowledge, threatened. 
 3.9 Absence of Certain Changes. Except with respect to matters and activities expressly contemplated in this Agreement, since January 1, 2006, the Company and each of its Subsidiaries has
conducted the Business in the ordinary course substantially in accordance with the procedures and practices in effect on January 1, 2006, and since January 1, 2006 there has not been with respect to the Company and each Subsidiary any:

 (a) Material Adverse Change; 
 (b) material revaluation by the Company of any of the Company’s or its Subsidiaries’ assets; 
 (c) incurrence, creation
or assumption by the Company or any Subsidiary of (i) any Encumbrance on any of the Company’s (or Subsidiary’s) assets, other than Permitted Encumbrances and as set forth in Schedule 3.9(c), (ii) any Liability or any
indebtedness for borrowed money, or (iii) any contingent liability as a guarantor or surety with respect to the obligations of others; 
 (d) purchase, license, sale, assignment or other disposition or transfer, or any contract or other arrangement for the purchase, license, sale, assignment or other disposition or transfer, of any of the Company’s or any
Subsidiaries’ assets, other than ordinary commercial purchases, and inbound and outbound software license and maintenance agreements entered into, in the ordinary course of business; 
  

 20 

 (e) damage, destruction or loss of any of the Company’s (or any Subsidiaries’) assets, whether
or not covered by insurance which would have a Material Adverse Effect on the Company and/or any of its Subsidiaries; 
 (f) payment or
discharge by the Company (or any Subsidiary) of any Encumbrance on any of the Company’s (or any Subsidiaries’) assets or payment or discharge of any Liability of the Company (or such Subsidiary), in each case that was not shown on the
Company Financial Statements and/or the Closing Balance Sheet; 
 (g) license, transfer or grant of a right under any Company or any of its
Subsidiaries’ IP Rights (as defined in Section 3.12(a)) outside the ordinary course of business; 
 (h) change or amendment to the
Company’s or any Subsidiaries’ Articles of Incorporation, Bylaws or similar charter documents; 
 (i) material change in the manner
in which the Company or any Subsidiary extends discounts, credits or warranties to its customers or otherwise deals with its customers; 
 (j) material change or increase in the compensation payable or to become payable to any of the directors, officers, employees or consultants of the Company or any Subsidiary or in any bonus, pension, severance, retention, insurance or other
benefit payment or arrangement (including stock awards, stock option grants, stock appreciation rights or stock option grants) made to or with any of such directors, officers, employees or consultants; or 
 (k) other event or condition of any character which would have a Material Adverse Effect upon the Company or any Subsidiary. 
 3.10 Material Contracts. 
 (a)
Schedule 3.10(a) sets forth the top thirty (30) maintenance paying customers for the Company in the United States and the top ten (10) maintenance paying customers for each of the Company’s Subsidiaries in their jurisdictions
of incorporation. Each of these customers made payments to either the Company or a Subsidiary in calendar year 2006, or thereafter, for maintenance services provided by the Company or a Subsidiary in excess of the amounts set forth on Schedule
3.10(a) for the Company and each Subsidiary. 
 (b) Neither the Company nor any Subsidiary is a party or subject to any of the following in
connection with the Business which, in calendar 2006 or thereafter, constituted or will constitute: 
 (i) any Contract or any agreement
providing for payments (whether fixed, contingent or otherwise) by or to the Company in an aggregate amount of $50,000; 
 (ii) any dealer,
distributor, OEM (original equipment manufacturer), VAR (value added reseller), marketing, sales representative or similar agreement under which any third party is authorized to sell, sublicense, lease, distribute, market or take orders for, any
product, service or technology of the Company; 
 (iii) any Contract providing for the development of any software, content (including
textual content and visual, photographic or graphics content), technology or Intellectual Property Right for (or for the benefit or use of) the Company or any Subsidiary, or providing for the 

  

 21 

 
purchase by (or for the benefit or use of) or license to the Company or any Subsidiary of any software, content (including textual content and visual,
photographic or graphics content), technology or Intellectual Property Right, which software, content, technology or Intellectual Property Right is in any manner used or incorporated (or is presently contemplated by the Company or any Subsidiary to
be used or incorporated) in connection with any aspect or element of any Software, product, service or technology of the Company or any Subsidiary (other than software generally available to the public at a per copy license fee of less than $500 per
copy); 
 (iv) any Contract which has involved, or is reasonably expected to involve, a sharing of revenues, profits, cash flows, expenses
or losses by the Company or any Subsidiary with any Person other than the Company or any Subsidiary; 
 (v) any Contract for or relating to
the employment of any officer, employee or consultant of the Company or any Subsidiary or any other type of Contract with any officer, employee or consultant of the Company or any Subsidiary, other than non-material Contracts for employment or
consulting services entered into in the ordinary course of business; 
 (vi) any Contract pursuant to which the Company or any Subsidiary
has acquired a business or entity, or material portion of the assets of a business or entity, whether by way of merger, consolidation, purchase of stock, purchase of assets, exclusive license or otherwise; 
 (vii) any lease or other agreement under which the Company or any Subsidiary is lessee of or holds or operates any items of tangible personal property
or real property owned by any other Person; 
 (viii) any Company IP Rights Agreement (as defined in Section 3.12(b)) (other than
software license agreements granting perpetual licenses, entered into before 2006, for which neither the Company nor any Subsidiary is obligated to provide maintenance as of the Closing Date); 
 (ix) any Governmental Permit (as defined in Section 3.13). 
 A true and complete copy of each Contract and document (or, with respect to subsection (b)(ix), Governmental Permit) required by subsections (a) and (b) of this Section 3.10 to be listed on Schedule 3.10 of the Company
Disclosure Letter (the “Material Contracts”) has been made available to Buyer. 
 3.11 No Default; No
Restrictions. 
 (a) Each Material Contract is valid and in full force and effect. Neither the Company nor any Subsidiary, nor to the
Company’s Knowledge, any other party is in material breach or default under any Material Contract. To the Company’s Knowledge, no event has occurred, and no circumstance or condition exists, that (with or without notice or lapse of time,
or both) will (i) result in a material violation or breach by the Company, any of its Subsidiaries or any other party of any of the provisions of any Material Contract or (ii) give any third party (A) the right to declare a default or
exercise any remedy under any Material Contract, (B) the right to a rebate, chargeback or penalty under any Material Contract, (C) the right to accelerate the maturity or performance of any obligation of the Company or any Subsidiary under
any Material Contract, or (D) the right to cancel, terminate or modify (in a manner materially adverse to the Company or any of its Subsidiaries) any Material Contract. Neither the Company nor any Subsidiary has received any written notice
regarding any actual or possible material violation or breach of, or default under, any Material Contract and to the Company’s Knowledge, does not reasonably expect to receive any such notice. 
  

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 (b) Neither the Company nor any Subsidiary is a party to, and none of the Company’s (or any
Subsidiaries’) assets is bound or affected by, any judgment, injunction, order, decree, covenant or Contract (noncompete or otherwise) that materially restricts or prohibits, or purports to restrict or prohibit, the Company or its Subsidiaries
from freely engaging in any business now conducted by the Company or any of its Subsidiaries or from competing anywhere in the world (including any covenants or Contracts restricting the geographic area in which the Company or any of its
Subsidiaries may sell, license, market, distribute or support any products or technology or provide services or restricting the markets, customers or industries that the Company or any of its Subsidiaries may address in operating the Business or
restricting the prices that the Company or any of its Subsidiaries may charge for its products, technology or services) or includes any grants by the Company or any of its Subsidiaries of exclusive rights or licenses. 
 (c) To the extent any Material Contract provides for services to be performed by the Company or any of its Subsidiaries: (i) such services have been
timely and properly performed in all material respects in accordance with the terms of such Material Contracts, and to the Company’s Knowledge, it has no liability arising out of any prior deliverables; (ii) neither the Company nor any of
its Subsidiaries have received any written communication of non-compliance in relation to any Material Contract; and (iii) the Company and its Subsidiaries are in material compliance with all maintenance and enhancement obligations contained in
all Material Contracts. 
 3.12 Intellectual Property Rights. 
 (a) The Company (i) owns, or (ii) has the valid right or license to use, possess, develop, sell, license, copy, distribute, market, advertise
and/or dispose of, all Intellectual Property Rights and Software used in the conduct of the Business in all jurisdictions in which such Business is conducted (such Intellectual Property Rights being hereinafter collectively referred to as the
“Company IP Rights”). Such Company IP Rights are sufficient for the conduct of the Business as conducted prior to the Closing. 
 (b) Neither the execution, delivery and performance of this Agreement nor the consummation of the transactions contemplated by this Agreement will, in accordance with their terms: (i) constitute a material breach
of or default under any Material Contract governing any Company IP Right (collectively, the “Company IP Rights Agreements”); (ii) cause the forfeiture or termination of, or give rise to a right of forfeiture or
termination of, any Company IP Right; or (iii) materially impair the right of the Company or Buyer, to use, possess, sell or license any Company IP Right or portion thereof. There are no royalties, honoraria, fees or other payments payable by
the Company to any third Person (other than salaries payable to employees and independent contractors not contingent on or related to use of their work product) as a result of the ownership, use, possession, license-in, sale, marketing, advertising
or disposition of any Company IP Rights by the Company, and none will become payable as a result of the consummation of the transactions contemplated hereby. 
 (c) To the Company’s Knowledge, neither the use, marketing, license, sale, distribution or intended use of any product or service currently licensed, utilized, sold, provided or distributed by the Company
(i) violates any license or other Contract between the Company and any third party, or (ii) infringes or misappropriates any Intellectual Property Right of any other party. 
 (d) Schedule 3.12(d) of the Company Disclosure Letter contains a true and complete list of all registered and unregistered Intellectual Property
(including patent applications and domain names) owned by the Company. All registered Intellectual Property Rights owned by the Company are valid, enforceable and subsisting. 
  

 23 

 (e) To the Company’s Knowledge, there has not been any infringement of any Company IP Rights.

 (f) To the Company’s Knowledge, there has not been any infringement by the Company of any third party’s Intellectual Property
rights. 
 (g) Schedule 3.12(g) of the Company Disclosure Letter lists all software or other material that is distributed as
“free software”, “open source software” or under a similar licensing or distribution model (“Open Source Materials”) that is included in any Software or other intellectual property assets owned by the
Company or any of its Subsidiaries, or that is otherwise used by Company or any of its Subsidiaries in any way, and describes the manner in which such Open Source Materials were used (such description shall include whether (and, if so, how) the Open
Source Materials were modified and/or distributed by Company or any of its Subsidiaries). Except as explicitly set forth in the Disclosure Letter, the Company or any of its Subsidiaries has not (i) incorporated Open Source Materials into,
or combined Open Source Materials with, any Software or other intellectual property assets owned or licensed by the Company or any of its Subsidiaries; (ii) distributed Open Source Materials in conjunction with any Software or other
intellectual property assets owned or licensed by the Company or any of its Subsidiaries; or (iii) used Open Source Materials that create, or purport to create, obligations for Company or any Subsidiary with respect to any of its/their Software
or Company IP Rights or grant, or purport to grant, to any third party, any rights or immunities under any Software or Company IP Rights (including using any Open Source Materials that require, as a condition of use, modification and/or distribution
of such Open Source Materials that other software incorporated into, derived from or distributed with such Open Source Materials be (A) disclosed or distributed in source code form, (B) be licensed for the purpose of making derivative
works, or (C) be redistributable at no charge). 
 3.13 Compliance with Laws. The Company and its Subsidiaries have complied in
all material respects with, and has not received any written notices of violation with respect to, any federal, state, local or foreign statute, law or regulation, including United States export control laws and regulations. The Company and each of
its Subsidiaries have obtained each federal, state, county, local or foreign governmental consent, license, permit, grant or other authorization of a Governmental Entity (i) pursuant to which the Company and/or such Subsidiary currently
operates or holds any interest in any of its assets or (ii) that is required for the operation of the Business in material compliance with all applicable federal, state, local or foreign statutes, laws or regulations (all of the foregoing
consents, licenses, permits, grants and other authorizations, collectively, the “Governmental Permits”), and all of the Governmental Permits are in full force and effect, except where the failure to have such Governmental
Permits or for such Governmental Permits to be in full force and effect, as applicable, would not have a Material Adverse Effect on the Company or any of its Subsidiaries. Neither the Company nor any Subsidiary has received any written notice or
other communication from any Governmental Entity regarding (i) any actual or possible violation of any Governmental Permit or any failure to comply with any term or requirement of any Governmental Permit or (ii) any actual or possible
revocation, withdrawal, suspension, cancellation, termination or modification of any Governmental Permit. The Company and each of its Subsidiaries are in compliance in all with the terms of all Governmental Permits. Since inception, neither the
Company, any Subsidiary, nor, to the Company’s Knowledge, any director, officer, agent or employee of the Company or any of its Subsidiaries, has given, offered, paid, promised to pay or authorized payment of any money, any gift or anything of
value, with the purpose of influencing any act or decision of the recipient in his or her official capacity or inducing the recipient to use his or her influence to affect an act or decision of a government official or employee, to any
(i) governmental official or employee, (ii) political party or candidate thereof, or (iii) Person while knowing that all or a portion of such money or thing of value would be given or offered to a governmental official or employee or
political party or candidate thereof. 
  

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 3.14 Employee Matters. 
 (a) General. The Company and each of its Subsidiaries is in material compliance with all applicable laws and Contracts relating to employment,
employment practices, immigration, wages, hours and terms and conditions of employment, including employee compensation matters, and has correctly classified employees as exempt employees and non-exempt employees under the Fair Labor Standards Act.
Neither the Company nor any of its Subsidiaries is liable for any arrears of wages or any Taxes or any penalty for failure to comply with any of the foregoing, and neither the Company nor any of its Subsidiaries is liable for any payment to any
trust or other fund or to any Governmental Entity with respect to unemployment compensation benefits, social security or other benefits or obligations for any of its employees (other than routine payments to be made in the ordinary course of
business and consistent with its past practice). Schedule 3.14(a) of the Company Disclosure Letter contains true and correct details of all remuneration payable (including any bonus or commission entitlements) and any other benefits provided
or which the Company or any of its Subsidiaries is bound to provide (whether now or in the future) for all employees and consultants other than those employees and consultants which are to be terminated prior to Closing including without limitation,
annual leave accrued, sick leave accrued and long service leave accrued (if any). There are no controversies or claims pending or, to the Company’s Knowledge, threatened between the Company, any of its Subsidiaries and any of its respective
employees. 
 (b) Employee Plans. Schedule 3.14(b) of the Company Disclosure Letter sets forth a complete list or summary of
each “employee pension benefit plan,” as defined in Section 3(2) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), each material “employee welfare benefit plan,” as defined
in Section 3(1) of ERISA, each material employment, consulting, severance or similar contract, plan, program, arrangement or policy and each other material plan, program, policy or arrangement providing for benefits, compensation, retention
payments, bonuses, fees, profit-sharing, stock option, stock purchase or other stock related rights or other forms of incentive or deferred compensation, change in control benefits, vacation benefits, other “fringe” benefits, insurance
(including any self-insured arrangements), health or medical benefits, employee assistance programs, disability or sick leave benefits, workers’ compensation, supplemental unemployment benefits, severance benefits and post-employment or
retirement benefits that is has been, within the six calendar years preceding the Closing Date, maintained, administered or contributed to by the Company or any of its Subsidiaries (such plans, collectively, the “Company Benefit
Plans”). The Company has made available to Buyer true and complete copies of each Company Benefit Plan or a summary of such plan. 
 (c) To the Company’s Knowledge, all Company Benefit Plans are, by their terms and in operation, in material compliance with ERISA and the Code (as amended through the Closing Date), the regulations and published authorities thereunder,
and all other applicable legal requirements. 
 (d) Neither the Company nor any Subsidiaries maintains or contributes to, and neither have
maintained or contributed to (or been obligated to contribute to) within the six calendar years preceding the Closing Date, any employee pension benefit plan (within the meaning of Section 3(2) of ERISA) that is a defined benefit plan, any
multiemployer plan (within the meaning of Section 3(37) of ERISA), any “multiple employer plan” (within the meaning of Section 4063 or 4064 of ERISA or Section 413(c) of the Code), any employee benefit plan, fund, program,
contract or arrangement that is subject to Section 302 of ERISA or Title IV of ERISA or Section 412 of the Code, or any “multiple employer welfare arrangements” (within the meaning of Section 3(40) of ERISA). Except as
set forth on Schedule 3.14 of the Company Disclosure Letter, none of the Company Benefit Plans provides for post-termination benefits of any kind with respect to any of the Company’s or any of its Subsidiaries’ current or former
officers, employees, agents, directors or independent contractors, except as otherwise required by Sections 601 through 608 of ERISA and Section 4980B(f) of the Code or comparable state laws. 
  

 25 

 3.15 No Brokers. Neither the Company, any of its Subsidiaries nor any Affiliate of the
Company or its Subsidiaries is obligated for the payment of any fees or expenses of any investment banker, broker, finder or similar party in connection with the origin, negotiation or execution of this Agreement or in connection with the
transactions contemplated hereby, and neither Buyer, Merger Subsidiary, Surviving Corporation nor the Company will incur any Liability, either directly or indirectly, to any such investment banker, broker, finder or similar party as a result of this
Agreement, the transactions contemplated hereby or any act or omission of the Company or any of its employees, officers, directors, stockholders, agents or Affiliates. 
 3.16 Books and Records. The minute books of the Company and each of its Subsidiaries reflect in all material respects all meetings of directors and stockholders or actions by written consent since the time of
incorporation of such entity. The minute books, statutory books and registers and other similar records of the Company and its Subsidiaries: (i) are true and complete in all material respects, and (ii) have been maintained in accordance
with reasonable business practices on a basis consistent with prior years. 
 3.17 Insurance. Each insurance policy and bond now held
by the Company and/or its Subsidiaries is set forth on Schedule 3.17 of the Company Disclosure Letter, together with the name of the insurer, the type of policy or bond and the coverage amount. There is no claim pending under any of such
policies or bonds as to which coverage has been questioned, denied or disputed by the underwriters of such policies or bonds, and all such policies and bonds are in full force and effect. All premiums due and payable under all such policies and
bonds have been paid, and the Company and its Subsidiaries are otherwise in material compliance with the terms of such policies and bonds. 
 3.18 Certain Transactions. To the Company’s Knowledge, none of the directors, officers, employees, consultants or contractors of the Company or its Subsidiaries (i) has or ever had any direct or indirect ownership, equity
participation, royalty or other interest in, or is a director, officer, employee, consultant or contractor for, any firm, partnership, entity or corporation that competes with, or does business with, or has any contractual arrangement with, the
Company or any of its Subsidiaries (except with respect to any interest in less than 1% of the stock of any corporation whose stock is publicly traded), (ii) is or ever was a party to, or is or ever was otherwise directly or indirectly
interested in, any Contract or formal or informal arrangement or understanding with the Company or any of its Subsidiaries, except with respect to employment or consulting agreements entered into in the ordinary course of business, (iii) has or
ever had any interest in any of the Company’s (and/or its Subsidiaries’) assets, except for the rights of stockholders under applicable law, or (iv) has or ever had, either directly or indirectly, a material interest in any Contract
to which the Company or any of its Subsidiaries is a party or by which the Company (or any of its Subsidiaries) or any of their assets or properties may be bound or affected. 
 3.19 Real Property and Business Premises. Neither the Company nor any of its Subsidiaries owns any real property whatsoever. All commercial leases
and subleases executed by the Company and/or any of its Subsidiaries are in full force and effect, and neither the Company nor any of its Subsidiaries have received notice of any claim of any sort that is currently outstanding and that has been
asserted by anyone adverse to the rights of the Company (or such Subsidiary) under any of the leases or subleases mentioned above, or affecting or questioning the rights of the Company (or such Subsidiary) to the continued possession of the
commercial leases or subleases premises under any such commercial lease or sublease. 
 3.20 Disclosure. To the Company’s
Knowledge, none of the representations or warranties made herein contains any untrue statement of material fact or omits to state any material fact necessary in order to make the statements contained herein, in the light of the circumstances under
which such 

  

 26 

 
statements were made, not misleading. There have been no events or transactions or information that, to the Company’s Knowledge, could reasonably be
expected to have a Material Adverse Effect on the Company or any of its Subsidiaries. 
 3.21 Powers of Attorney. There are no
outstanding powers of attorney executed on behalf of the Company and/or any of its Subsidiaries. 
 3.22 No Bankruptcy or Insolvency.
No order has been made, or petition presented, for the winding-up or bankruptcy of any of the Stockholders, the Company or any of its Subsidiaries. None of the Company, any of its Subsidiaries or any Stockholder has had: (i) any petition or
order for winding-up or bankruptcy filed against it; (ii) any appointment of a receiver over the whole or part of the undertaking of its assets; (iii) any petition or order for administration against it; (iv) any distress or execution
or other process levied in respect of it which remain undischarged; or (v) any unfulfilled or unsatisfied judgment or court order against it over the amount of $5,000. 
 3.23 Dividends. All dividends payable with respect to the Company Stock have been fully and properly paid to the holders of such Company Stock.

 3.24 Environmental Matters. No notice, notification, demand, request for information, citation, summons or order has been received,
no complaint has been filed, no penalty has been assessed and no investigation, action, claim, suit, proceeding or review is pending, or to the Company’s Knowledge threatened by any government entity or other Person with respect to any matters
relating to the Company or any Subsidiary and relation to or arising our of any Environmental Law. To the Company’s Knowledge, there are no facts, conditions, situations or set of circumstances which could reasonably be expected to result in or
be the basis for any liability of or relating to the Company or any Subsidiary arising under or relating to any Environmental Law. 
 ARTICLE IV  
 REPRESENTATIONS AND WARRANTIES OF BUYER AND MERGER SUBSIDIARY 
 Each of Buyer and Merger Subsidiary represents and warrants to the Stockholder Parties that each statement contained in this Article IV is true and
correct as of the date hereof, except as set forth in the disclosure letter of the Buyer (collectively, the “Buyer Disclosure Letter”). Each section of the Buyer Disclosure Letter shall be deemed to incorporate by reference
all information disclosed in any other section of the Buyer Disclosure Letter. 
 4.1 Organization and Good Standing. Each of Buyer
and Merger Subsidiary is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation. Buyer has the corporate power to own, lease and operate its properties and to carry on its business
as now being conducted, and is duly qualified to do business and is in good standing as a foreign corporation in each jurisdiction in which it owns or leases property or conducts any business so as to require such qualification, except where the
failure to be so qualified would not reasonably be expected to have a Material Adverse Effect with respect to Buyer. 
 4.2 Authority and
Enforceability. Each of Buyer and Merger Subsidiary has the requisite power and authority to enter into this Agreement and to consummate the Merger. The execution and delivery of this Agreement and the consummation of the Merger have been duly
authorized by all necessary corporate action on the part of Buyer and Merger Subsidiary. This Agreement has been duly executed and delivered by each of Buyer and Merger Subsidiary and, assuming due authorization, 

  

 27 

 
execution and delivery by the Company and the Stockholders’ Representative, constitutes the valid and binding obligation of each of Buyer and Merger
Subsidiary, enforceable against each of them in accordance with its terms, except as such enforceability may be limited by (i) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to creditors’
rights generally, and (ii) the availability of injunctive relief and other equitable remedies. 
 4.3 No Conflicts; Consents.

 (a) Except for any notices, filings, consents or approvals set forth in Schedule 4.3, the execution and delivery of this Agreement
by Buyer and Merger Subsidiary do not, and the consummation of the Merger by Buyer and Merger Subsidiary will not, (i) violate the provisions of the Certificate of Incorporation or Bylaws of Buyer or Merger Subsidiary, (ii) violate any
material Contract to which Buyer or Merger Subsidiary is a party, (iii) violate in any material respect any Law of any Governmental Entity applicable to Buyer or Merger Subsidiary on the date hereof, or (iv) result in the creation of any
Encumbrances other than the Permitted Encumbrances, upon any of the assets owned or used by Buyer or Merger Subsidiary, except in each such case where such violation or Lien would not reasonably be expected to have a Material Adverse Effect with
respect to Buyer or the Merger Subsidiary or impair or delay in any material respect the ability of Buyer or Merger Subsidiary to perform its obligations under this Agreement 
 (b) No authorization, order of, registration, declaration or filing with, or notice to any Governmental Entity is required by Buyer or Merger Subsidiary
in connection with the execution and delivery of this Agreement and the consummation of the Merger, except for such authorizations, orders, registrations, declarations, filings and notices the failure to obtain which would not reasonably be expected
to (x) have a Material Adverse Effect with respect to Buyer or (y) materially impair or delay the ability of Buyer or Merger Subsidiary to perform its obligations under this Agreement or consummate the Merger. 
 ARTICLE V  
 CONDUCT PRIOR TO
THE CLOSING 
 5.1 Company Stockholder Approval. Prior to the Effective Time, the Company will take all action necessary in
accordance with its Certificate of Incorporation and Bylaws, each as currently in effect, and all applicable laws to call, notice, convene, hold and conduct a meeting of the Company’s stockholders (the “Company Stockholders
Meeting”) to be held as soon as practicable for the purpose of voting upon the Merger. In lieu of the Company Stockholders Meeting, such approval by the Company’s stockholders may be obtained by the written consent of the
Company’s stockholders (the “Company Stockholders Consent”) where authorized by the Certificate of Incorporation and Bylaws of the Company. The Board of Directors of the Company will recommend that the Company’s
stockholders vote in favor of the Merger at the Company Stockholders Meeting or pursuant to the Company Stockholders Consent and will not change such recommendation. 
 5.2 Conduct of Business. During the time period from the date of this Agreement until the earlier to occur of (i) the Closing and (ii) the termination of this Agreement in accordance with the
provisions of Article VIII, the Company covenants and agrees that, except as expressly contemplated by this Agreement, the Company and each Subsidiary will continue to conduct the Business in the ordinary and usual course, and neither the Company or
any of its Subsidiaries will, without Buyer’s prior written consent: (i) enter into any material transaction or agreement, or take any other action, not in the ordinary course of business, consistent with its past practice; (ii) grant
or permit any Encumbrance on any of its assets; (iii) sell, transfer, assign, convey, lease, license, move, relocate or otherwise dispose of any of its 

  

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assets; (iv) enter into any material Contract for the purchase or sale of any of its assets; (v) amend or terminate any material Contract to which
the Company or any of its Subsidiaries is a party; (vi) waive or release any material right or claim; (viii) license any of its technology or Intellectual Property Rights or acquire any Intellectual Property Rights (or any license thereto)
from any third party; or (viii) agree to do any of the things described in the preceding clauses (i) through (vii). Regardless of the foregoing, the parties agree that agreements providing for the license and maintenance of the
Company’s software products, and providing for the provision of related services, entered into in the ordinary course of business consistent with past practice, shall not be deemed a breach of this Section 5.3. 
 5.3 Advice of Changes. The Company will promptly advise Buyer in writing of any event occurring subsequent to the date of this Agreement and
on or before the Closing Date that (a) would render any representation or warranty of the Company contained in this Agreement, if made on or as of the date of such event or the Closing Date, materially untrue or inaccurate, (b) constitutes
a material breach of any covenant or obligation of the Company pursuant to this Agreement, or (c) constitutes a Material Adverse Change in the Business. 
 5.4 No Other Negotiations. During the period commencing on the date of this Agreement and continuing until the earlier of the termination of this Agreement in accordance with the provisions of Article VIII and
the Closing: 
 (a) The Company will not, and will not authorize, encourage or permit any other Person, including any of its directors,
officers, agents, advisors and other representatives (all of the foregoing Persons collectively being the “Company Representatives”), on its behalf to, directly or indirectly: (i) solicit, initiate, encourage, induce or
facilitate the making, submission or announcement of any inquiry, expression interest, offer or proposal from any Person concerning any Alternative Transaction (as defined below) or take any other action that could reasonably be expected to lead to
an Alternative Transaction or a proposal therefor; (ii) furnish any information regarding the Business to any Person (other than Buyer) in connection with, or enter into, participate in, maintain or continue any discussions or negotiations with
any Person (other than Buyer) regarding, any inquiry, offer or proposal concerning any Alternative Transaction; (iii) cooperate with, facilitate or encourage any effort or attempt by any Person (other than Buyer) to effect any Alternative
Transaction; or (iv) enter into or become bound by any letter of intent, agreement, commitment or understanding between the Company and any Person (other than Buyer) that is related to, provides for or concerns any Alternative Transaction. The
Company will promptly notify Buyer of any inquiries or proposals received by the Company or, to the Company’s Knowledge, by any Company Representative regarding any Alternative Transaction and will identify the party making the inquiry or
proposal and the nature and terms of such inquiry or proposal. As used herein, the term “Alternative Transaction” means any commitment, agreement or transaction with any party other than Buyer or any of its Affiliates
involving or providing for the possible disposition of the Business, whether by way of merger, consolidation, sale of assets, sale of stock, stock exchange, tender offer and/or any other form of business combination or strategic transaction.

 (b) The Company shall immediately notify Buyer after receipt by the Company (or, to the Company’s Knowledge, by any of the Company
Representatives) of any inquiry, expression interest, offer or proposal that constitutes, or could reasonably be expected to lead to, an Alternative Transaction or any other notice that any Person is considering an Alternative Transaction or any
request for information relating to the Company or the Business or for access to any of the properties, books or records of the Company by any Person or Persons other than Buyer (which notice shall identify the Person or Persons making, or
considering making, such inquiry, expression of interest, proposal, offer or request) and shall keep Buyer fully informed of the status and details of any such inquiry, expression of interest, proposal, offer or request and any correspondence or
communications related thereto and shall provide to Buyer a true, correct and complete copy of such inquiry, expression of interest, proposal, offer 

  

 29 

 
or request and any amendments, correspondence and communications related thereto, if it is in writing, or a written summary thereof, if it is not in writing.
The Company shall immediately cease and cause to be terminated any and all existing activities, discussions and negotiations with any Persons conducted heretofore with respect to an Alternative Transaction. 
 ARTICLE VI  
 ADDITIONAL
AGREEMENTS 
 6.1 Access to Information. During the period commencing on the date of this Agreement and continuing until the
earlier of the termination of this Agreement in accordance with the provisions of Article VIII and the Closing, the Company shall afford Buyer and its accountants, counsel and other representatives reasonable access during normal business hours to
all of the Company’s properties, books, Contracts and records and all other information concerning the Business as Buyer may reasonably request. Subject to compliance with applicable law, from the date of this Agreement until the earlier of the
termination of this Agreement in accordance with the provisions of Article VIII and the Closing, the Company shall confer from time to time as reasonably requested by Buyer with one or more representatives of Buyer to discuss any material changes or
developments in the Business. No information or knowledge obtained in any investigation pursuant to this Section 6.1 shall affect or be deemed to modify any representation or warranty contained herein or the conditions to the obligations of the
parties hereto to consummate the Merger. 
 6.2 Confidentiality. Each Stockholder covenants and agrees with Buyer that, from and at
all times after the Closing, all confidential and/or proprietary information relating to the Company and the Business, including any trade secrets, will be held in strict confidence by the Stockholders. 
 6.3 Public Disclosure. Neither the Company nor the Buyer shall directly or indirectly, issue any press release or other public statement relating
to the terms of this Agreement or the transactions contemplated hereby without the other’s prior written approval. Neither the Company nor the Buyer shall directly or indirectly, use the other’s name or refer to the other directly or
indirectly in connection with their respective relationship in any media interview, advertisement, news release, press release or professional or trade publication, or in any print media, whether or not in response to an inquiry, unless otherwise
required by applicable law or with the other’s prior written consent. 
 6.4 Consents. The Company shall use its commercially
reasonable efforts to obtain at or prior to Closing, the consents, waivers and approvals set forth on Schedule 6.4, in each case in a form that is reasonably acceptable to Buyer. 
 6.5 Legal Requirements. Buyer and the Company shall (i) take all reasonable actions necessary to comply promptly with all legal requirements
which may be imposed on it with respect to the consummation of the transactions contemplated by this Agreement (ii) promptly cooperate with and furnish information to the other party hereto necessary in connection with any such requirements
imposed upon such other party in connection with the consummation of the transactions contemplated by this Agreement, and (iii) take all reasonable actions necessary to obtain (and shall cooperate with the other party hereto in obtaining) any
consent, approval, order or authorization of, or any registration, declaration or filing with, any Governmental Entity or other Person required to be obtained or made in connection with the taking of any action contemplated by this Agreement.

 6.6 Expenses. Whether or not the Merger is consummated, all costs and expenses incurred in connection with this Agreement and the
transactions contemplated hereby shall be paid by the party incurring such expense provided however, that if the Merger is consummated, all costs and expenses 

  

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incurred by the Company and/or any of its Subsidiaries in connection with this Agreement and the transactions contemplated hereby shall be paid by the
Stockholders and shall be deducted from the Closing Consideration. If, for whatever reason, the Stockholders fail to comply with this Section 6.6, an amount equal to such unpaid costs and expenses incurred by the Company in connection with this
Agreement and the transactions contemplated hereby will be released to the Buyer from the Escrow Amount and the Stockholders’ Representative and the Buyer shall jointly instruction the Escrow Agent accordingly. 
 6.7 Further Assurances. On the terms and subject to the conditions set forth in this Agreement, each of the parties hereto shall use commercially
reasonable efforts, and shall cooperate with each other party hereto, to take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary, reasonably appropriate or desirable to consummate and make effective, in the most
expeditious manner practicable, the Merger and the other transactions contemplated hereby. Notwithstanding the foregoing, neither Buyer nor the Company shall be obligated to contest or litigate any proposed injunction or other order preventing the
consummation of the Merger. Each party hereto, at the reasonable request of any other party hereto, shall execute and deliver such other instruments and do and perform such other acts and things as may be necessary or reasonably desirable for
effecting completely the consummation of the Merger and the other transactions contemplated hereby. 
 6.8 Cooperation on Tax Matters and
Disclosed Claims. (a) Buyer, the Company and the Stockholders shall cooperate fully, as and to the extent reasonably requested by the other party, in connection with the filing of Tax Returns and any audit, litigation or other proceeding
with respect to Taxes. Such cooperation shall include the retention and (upon another party’s request) the provision of records and information which are reasonably relevant to any such Tax Return, audit, litigation or other proceeding and
making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. The Company and the Stockholders agree (A) to retain all books and records with respect to Tax
matters pertinent to the Company relating to any taxable period beginning before the Closing Date until the expiration of the statute of limitations (and any extensions thereof) of the respective taxable periods, and to abide by all record retention
agreements entered into with any taxing authority, and (B) to give the other party reasonable written notice prior to transferring, destroying or discarding any such books and records and, if the other party so requests, to allow the other
party to take possession of such books and records. 
 (b) Buyer, the Company and the Stockholders further agree, upon request, to use their
best efforts to obtain any certificates or other document from any governmental authority or any other Person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed (including with respect to the transaction contemplated
hereby) upon the Company and/or any of its Subsidiaries. 
 (c) All transfer, documentary, sales, use, stamp, registration and other such
Taxes and fees (including any penalties an interest) incurred in connection with this Agreement and/or the transactions contemplated hereby shall be paid by the Stockholders when due, and the Stockholders shall, at their own expense, file all
necessary Tax Returns and other documentation with respect to all such transfer, documentary, sales, use, stamp, registration and other Taxes and fees, and, if required by applicable law, Buyer shall, and shall cause its affiliates to, join in the
execution of any such Tax Returns and other documentation. 
 (d) The Buyer agrees to use its reasonable endeavors to retain all records with
respect to any actions or matters set forth on Schedule 3.5 of the Company Disclosure Letter (the “Disclosed Claims”) until such Disclosed Claims are resolved and allow the Stockholders’ Representative reasonable access
during normal working offices upon reasonable notice to view (and copy, at the 

  

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Stockholders’ Representative’s cost) such records. Further, each of the parties hereto agree to use their reasonable efforts to take, or cause to
be taken, all actions necessary to assist and cooperate with each other party in connection with the defense of any suits, claims, action, investigation or proceedings relating to the Disclosed Claims or any other matter requiring any party to
indemnify (or otherwise defend) another party (at the sole cost and expense of the Stockholders). 
 6.9 Tax Returns for Periods Ending on
or Before the Closing Date. Buyer shall prepare or cause to be prepared and file or cause to be filed all Tax Returns for the Company for all periods ending on or prior to the Closing Date which are filed after the Closing Date. Buyer shall be
entitled to claim from the Escrow Sum the amount (not to exceed $20,000) of Buyer’s reasonable out-of-pocket costs and expenses associated with the preparation of such Tax Returns for the Company. 
 6.10 Tax Returns for Periods Beginning Before and Ending After the Closing Date. Buyer shall prepare or cause to be prepared and file or cause to
be filed any Tax Returns of the Company for Tax periods that begin before the Closing Date and end after the Closing Date (“Straddle Period”). In the case of any Straddle Period, the amount of any Taxes based on or measured
by income or receipts of the Company for the period prior to the Closing Date shall be determined based on an interim closing of the books as of the close of business on the Closing Date and the amount of other Taxes of the Company for a Straddle
Period that relates to the period prior to the Closing Date shall be deemed to be the amount of such Tax for the entire taxable period multiplied by a fraction of the numerator of which is the number of days in the taxable period ending on the
Closing Date and the denominator of which is the number of days in such Straddle Period. 
 6.11 Noncompetition. 
 (a) Each Stockholder severally covenants and agrees to the Buyer that for a period two (2) full years (or such lesser period as a court of law having
jurisdiction so determines to be reasonable) after the date of Closing, he shall not: 
 (i) engage, either directly or
indirectly, as an officer, director, advisor, consultant or employee in any sole proprietorship, corporation, partnership, limited liability company, joint stock association or similar entity, in the business of providing any products or services
substantially similar to those supplied or performed by the Company and/or any of its Subsidiaries immediately prior to the Closing (the “Restrained Business”); 
 (ii) procure any of his/her Affiliates to carry on or promote (whether on its own account, in partnership, in joint venture or as employee
or agent of or manager for any other person) any Restrained Business; 
 (iii) seek or secure the customer of any person who
is at Closing, a customer of either the Company and/or any Subsidiary; 
 (iv) seek to engage or engage the services of any
person who is or becomes an employee of or service provider to the Company and/or any Subsidiary; and/or 
 (v) use a name
which is similar to the present name of the Company and/or any Subsidiary or use any of the Company’s Intellectual Property. 
 (b) If
any provision or sub-provision contained in this Section shall for any reason be held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Section, but this
Section shall be construed as if such invalid, illegal 

  

 32 

 
or unenforceable provision had never been contained herein. It is the intention of the parties that if any of the restrictions or covenants contained herein
is held to cover a geographic area or to be for a length of time which is not permitted by applicable law, or in any way construed to be too broad or to any extent invalid, such provision shall not be construed to be null, void and of no effect, but
to the extent such provision would be valid or enforceable under applicable law, a court of competent jurisdiction shall construe and interpret or reform this Section to provide for a covenant having the maximum enforceable geographic area, time
period and other provisions and shall be valid and enforceable under such applicable law. Each Stockholder acknowledges that the Buyer would be irreparably harmed by any breach of this Section and that there would be no adequate remedy at law or in
damages to compensate the Buyer for any such breach. Each Stockholder agrees that the Buyer shall be entitled to seek injunctive relief requiring specific performance by the Stockholders of this Section. 
 (c) Each Stockholder acknowledges that each of the restraints in this Section 6.9 is reasonable in its extent (as to duration and restrained
conduct) having regard to the interests of each party to this Agreement and goes not further than is reasonably necessary to protect the Buyer in respect of the goodwill of the Company and the Subsidiaries. 
 ARTICLE VII  
 CONDITIONS TO
THE MERGER 
 7.1 Conditions to Obligations of Each Party. The respective obligations of each party hereto to consummate the
transactions contemplated hereby shall be subject to the fulfillment or satisfaction, at or prior to the Closing, of each of the following conditions, any of which may be waived, in writing, by agreement of the parties hereto (it being understood
that each such condition is solely for the benefit of the parties hereto and may be waived only in writing by their mutual agreement without notice, Liability or obligation to any Person): 
 (a) No Injunctions or Restraints; Illegality. No temporary restraining order, preliminary or permanent injunction or other order issued by any
court of competent jurisdiction or other legal or regulatory restraint or prohibition preventing the consummation of the Merger shall be in effect, nor shall any proceeding seeking any of the foregoing be pending. No action taken by any Governmental
Entity, and no statute, rule, regulation or order shall have been enacted, entered, enforced or deemed applicable to the Merger, which makes the consummation of the Merger illegal. 
 (b) Governmental Approvals. Buyer and the Company shall have timely obtained from each Governmental Entity all approvals, waivers and consents, if
any, necessary for the consummation of, or in connection with, the Merger and the other transactions contemplated hereby. 
 (c) Company
Stockholder Approval. The unanimous written approval of the Stockholders to the Merger and the transactions contemplated by this Agreement shall have been obtained. 
 (d) Certificate of Merger. Prior to the Effective Time, the Certificate of Merger shall be accepted for filing with the Secretary of State of the State of California. 
 (e) Escrow Account. The Escrow Account Instruction Letter has been accepted by the Escrow Agent. 
 (f) NAV Adjustment. The parties have agreed upon the Estimated Closing Net Asset Value and the Closing Balance Sheet as provided in section
2.7(a). 
  

 33 

 7.2 Additional Conditions to Obligations of the Company and Stockholders. The obligations of the
Company and Stockholders to consummate the transactions contemplated hereby shall be subject to the fulfillment or satisfaction, at or prior to the Closing, of the following conditions, each of which may be waived, in writing, by the Stockholders
(it being understood that such conditions are solely for the benefit of the Company and Stockholders and may be waived in writing by the Stockholders in their sole discretion without notice, Liability or obligation to any Person). 
 (a) Representations and Warranties. The representations and warranties of Buyer and Merger Subsidiary in this Agreement shall be true and correct
in all material respects (except for such representations and warranties that are qualified by their terms by a reference to materiality, which representations and warranties as so qualified shall be true and correct in all respects) on and as of
the date of this Agreement and on and as of the Closing Date as though such representations and warranties were made on and as of such date (except for representations and warranties which address matters only as to a specified date, which
representations and warranties shall be true and correct with respect to the specified date). 
 (b) Covenants. Buyer and Merger
Subsidiary shall have performed and complied in all material respects with all covenants, obligations and conditions of this Agreement required to be performed and complied with by it at or prior to the Closing. 
 7.3 Additional Conditions to Obligations of Buyer. The obligations of Buyer to consummate the transactions contemplated hereby shall be subject to
the fulfillment or satisfaction, at or prior to the Closing, of each of the following conditions, any of which may be waived, in writing, by Buyer (it being understood that each such condition is solely for the benefit of Buyer and may be waived by
Buyer in its sole discretion without notice, Liability or obligation to any Person): 
 (a) Representations and Warranties. The
representations and warranties of the Company and the Stockholders in this Agreement shall be true and correct in all material respects (except for such representations and warranties that are qualified by their terms by a reference to materiality,
which representations and warranties as so qualified shall be true and correct in all respects) on and as of the date of this Agreement and on and as of the Closing Date as though such representations and warranties were made on and as of such date
(except for representations and warranties which address matters only as to a specified date, which representations and warranties shall be true and correct with respect to the specified date), and at the Closing Buyer will have received a
certificate to such effect executed by the Company’s Chief Executive Officer in the form of Exhibit C. 
 (b) Covenants. The
Company and each Stockholder shall have performed and complied in all material respects with all covenants, obligations and conditions of this Agreement required to be performed and complied with by it at or prior to the Closing, and at the Closing
Buyer will have received a certificate to such effect executed by the Company’s Chief Executive Officer in the form of Exhibit C. 
 (c)
Release of Encumbrances. Buyer shall have received a release of any and all Encumbrances (other than Permitted Encumbrances) on the Company’s or any of its Subsidiaries’ assets. 
 (d) Change of Directors. The directors of the Company immediately prior to the Effective Date shall have resigned. 
 (e) Cancellation/Termination of Options and Releases. (i) Buyer shall have received evidence that all Company Stock Plans of the Company and
any of its Subsidiaries have been fully cancelled or terminated; and (ii) Buyer shall have received: (A) executed Release Agreements from all 

  

 34 

 
employees of Subsidiaries who were promised a grant of Options; and (B) either executed Release Agreements or 15-days has lapsed since the receipt by
each Optionholder of a letter of notification (as required by Section 11(c) of the Company Stock Plans) for all Optionholders who have been granted Options. 
 (f) Payment of outstanding Compensation Arrangements. Buyer shall have received evidence that all payments to holders of outstanding Compensation Arrangements as required by Section 2.4(c) have been
deducted from the Closing Consideration to be paid to the Stockholders. 
 (g) Delivery of Company Seal and Books & Records.
Buyer shall have received the Company’s (and each of its Subsidiaries’) original corporate books and records and any company seals of the Company (and its Subsidiaries). 
 (h) Material Adverse Effect. No Material Adverse Effect in relation to the Company and/or any of its Subsidiaries shall have occurred since the
date of this Agreement. 
 (i) Dissenting Shares. There shall be no Dissenting Shares. 
 (j) Termination of Stockholders as Employees. The employment by the Company of each of the Stockholders shall have been terminated and relevant
payments made in accordance with Section 2.11(c) hereof. 
 (k) Company Board Approval. The board of directors of the Company
shall have approved the execution of this Agreement and the transactions contemplated herein and therein. 
 (l) Secretary
Certificate. The Company shall have delivered to Buyer a certificate, dated the Closing Date, signed by the secretary of the Company in a form set forth in Exhibit B. 
 (m) Financial Statements. On the Closing Date, the Stockholders shall deliver to the Buyer a true and complete copy of the Closing Balance Sheet. 
 (n) Proceedings. All proceedings to be taken on the part of the Stockholders, the Company and each Subsidiary in connection with the transactions
contemplated by this Agreement, and all documents incident thereto shall be reasonably satisfactory in form and substance to the Buyer, and the Buyer shall have received copies of all such documents and other evidences as the Buyer may reasonably
request in order to establish the consummation of such transactions and the taking of all proceedings in connection therewith. 
 (o)
Termination of Rights and Certain Securities. Any and all registration rights, rights of first refusal, rights of first offer, co-sale, tag-along, drag-along, voting rights, rights to any liquidation preference or redemption rights, or any
similar rights relating to the Company Stock or any of the Company’s or any Subsidiary’s capital, will either be fully terminated, satisfied or irrevocably waived as of the Closing Date. 
 (p) Third Party Consents. The Buyer shall have received copies of the consents to the change of control of the Company from each third party
contract requiring such consent. 
 (q) Change of Bank Authorities. At the Closing, the Buyer shall receive bank mandates approved by
each of the Company’s and/or any Subsidiary’s bankers and the Board authorising the operation of each of the Company’s and any Subsidiary’s bank accounts by nominees of the Buyer. 
  

 35 

 (r) Surrender of Certificates and Customary Letter of Transmittal. At the Closing, the Buyer shall
receive the documents required to be received by it in accordance with Section 2.2(d) hereto. 
 (s) Due Diligence
Investigations. The Buyer completing to its reasonable satisfaction a due diligence investigation of the Company and the Subsidiaries. This condition precedent is to be taken as satisfied unless the Buyer delivers a contrary notice to the
Company on or before the day prior to the Closing Date. On receipt of such a notice, this Agreement terminates without need for further notice. The fact that the Buyer does not deliver a notice does not affect the rights of the Buyer under any
representation or warranties given hereunder. 
 (t) Escrow Agreement. The Buyer having received a copy of the Escrow Agreement (in
the form of Exhibit A) executed by all parties thereto. 
 ARTICLE VIII  
 TERMINATION 
 8.1 Termination by
Mutual Consent. This Agreement may be terminated at any time prior to the Closing by the mutual written consent of Buyer and the Company. 
 8.2 Unilateral Termination. 
 (a) Either Buyer, on the one hand, or the Company, on the other hand, by giving written notice
to the other, may terminate this Agreement if a court of competent jurisdiction or other Governmental Entity shall have issued an injunction, order, decree or ruling or taken any other action to restrain, enjoin, make illegal or otherwise prohibit
the Merger. 
 (b) Either Buyer, on the one hand, or the Company, on the other hand, by giving written notice to the other, may terminate
this Agreement at any time prior to the Closing if the other has committed a material breach of (i) any of such party’s representations and warranties contained in this Agreement or (ii) any of such party’s covenants contained in
this Agreement, and has not cured such material breach within twenty days after the party seeking to terminate this Agreement has given the other party written notice of the material breach and its intention to terminate this Agreement pursuant to
this Section 8.2(b). 
 (c) Either Buyer, on the one hand, or the Company, on the other hand, by giving written notice to the other, may
terminate this Agreement if the Merger shall not have been consummated by midnight Pacific Time on May 30, 2007; provided, however, that the right to terminate this Agreement pursuant to this Section 8.2(b) shall not be
available to any party whose failure to perform in any material respect any of its obligations or covenants under this Agreement results in the failure of any condition set forth in Article VII or if the failure of such condition results from facts
or circumstances that constitute a material breach of a representation or warranty or covenant made under this Agreement by such party. 
 8.3 No Liability for Termination. Termination of this Agreement by a party (the “Terminating Party”) in accordance with the provisions of this Article VIII will not give rise to any Liability on the part of
the Terminating Party on account of such termination; provided, however, that nothing herein shall relieve a party from liability for a willful breach of this Agreement. The provisions of this Article VIII and Article IX shall survive
any termination of this Agreement. 
  

 36 

 ARTICLE IX  
 INDEMNIFICATION 
 9.1 Survival of Representations. Subject always to the subsequent sentence,
the representations and warranties of the Company, the Stockholders and Buyer contained in this Agreement (including the Exhibits and Schedules to this Agreement) shall survive the Closing and shall remain operative and in full force and effect
until (and shall expire upon) the end of the Holdback Period provided, however, that such expiration shall not affect the parties’ rights and obligations under any Claim initiated under the procedures of this Article IX or
Section 2.8 hereof during the Holdback Period until the final determination of such Claim. Notwithstanding the foregoing, the representations and warranties contained in Sections 3.3(a), 3.4, 3.5, 3.7 and 3.12 and the indemnifications provided
in sub-Sections 9.2(a)(iii)(iv) (v) and/or (vi) will remain operative and in full force and effect, regardless of any investigation or disclosure made by or on behalf of the Buyer, until the expiration of the applicable statute of
limitations for the claim which seeks recovery of such Damages and provided, further, that claims of fraud, willful misrepresentation, willful misconduct or any criminal activity shall expire only upon expiration of the applicable
statute of limitations (the “Release Date”). 
 9.2 Indemnification. 
 (a) By the Stockholders. Subject to the limitations set forth in this Article IX, from and after the Closing, by virtue of the Merger, the
Stockholders shall jointly and severally indemnify and hold harmless Buyer, the Merger Subsidiary, the Company and the Surviving Corporation and its directors, officers and agents (each of the foregoing being referred to individually as an
“Indemnified Buyer Party” and collectively as “Indemnified Buyer Parties”) from and against any and all Losses, Liabilities, damages, costs and expenses, including costs of investigation and defense,
reasonable legal fees and expenses and other professionals’ and experts’ reasonable fees and expenses (collectively, “Damages”) arising from assessments, claims, demands, assertions of liability or actual or
threatened actions, suits or proceedings (whether civil, criminal, administrative or investigative) directly or indirectly incurred, paid or accrued in connection with, resulting from or arising out of (i) any breach of any representation or
warranty made by the Company and/or any of the Stockholders in this Agreement (and the Schedules and Exhibits to this Agreement), (ii) any breach of or default in connection with any of the covenants or agreements made by the Company and/or any
Stockholders in this Agreement, (iii) any of the matters set forth on Schedule 3.5 of the Company Disclosure Letter, (iv) any Liability of the Business not set forth on the Company Balance Sheet or the Closing Balance Sheet
(provided that such Liability was required by GAAP to be set forth thereon) or the Company Disclosure Letter, and/or (v) any suit, action or claim by any holder of any Options and/or any beneficiary of any outstanding Compensation Arrangement
granted before the Closing; and/or (vi) any Tax Liabilities of the Company and/or any of its Subsidiaries arising from either the operation of the Company (or any such Subsidiary) or any action or omission of any Stockholder prior to the
Effective Time; and/or (vii) any penalties and/or interest incurred as a result of, arising from, or relating to, the Company’s lack of support and/or documentation associated with the Company’s transfer pricing prior to the Effective
Time. 
 (b) Limitations. No Indemnified Buyer Party may make a claim for indemnification pursuant to Section 9.2(a), or for
breach of any covenant, warranty or representation under this Agreement, unless and until Damages in an aggregate amount greater than One Hundred Thousand Dollars ($100,000.00) (the “Basket”) have been incurred, paid or
accrued, in which case the Indemnified Buyer Party may make claims for indemnification for or recovery of all Damages, including those included in the Basket. The Stockholders’ aggregate liability under this Agreement shall not exceed the
Holdback Consideration (the “Holdback Liability Cap”) provided, however, that the Holdback Liability Cap shall not apply to suits, actions or claims for any breach of any representation or warranty contained 

  

 37 

 
in Sections 3.3(a), 3.4, 3.5, 3.7 or 3.12 and/or arising from the indemnifications provided for in sub-Sections 9.2(a)(iii)(iv) (v)(vi) and/or (vii). The
Stockholders’ obligations pursuant to the proviso set forth in the proceeding sentence shall not exceed the Total Consideration (the “Total Consideration Cap”). Notwithstanding anything contained herein to the contrary,
neither the Basket nor the Total Consideration Cap shall apply to claims of fraud, willful misrepresentation, willful misconduct or any criminal activity. 
 (c) Exclusive Remedy. The indemnification remedies provided in this Article IX (in addition to any rights against the Holdback Consideration set forth in Section 2.8) shall constitute the exclusive remedy
of the Buyer after Closing for any claim in connection with this Agreement or any other transaction documents, including any claim for any Damages resulting from a breach by Company or Stockholders of any representation, warranty, covenant or
agreement. 
 9.3 Claims Period. The period during which claims for indemnification pursuant to this Agreement may be initiated (the
“Claims Period”), shall commence at the Closing and terminate on the Release Date or at such later time as may be otherwise expressly provided in Section 9.1. 
 9.4 Resolution of Objections to Claims. 
 (a) Any Person who desires to seek indemnification under any part of this Article IX (each, an “Indemnified Party”) shall give written notice in reasonable detail (an “Indemnification Claim
Notice”) to the party responsible or alleged to be responsible for indemnification hereunder (an “Indemnitor”) promptly upon the Indemnified Party’s discovery of the matter giving rise to the Indemnified
Party’s claim and prior to the end of any applicable Claims Period. If the matter to which a claim relates shall not have been resolved as of the date of the Indemnification Claim Notice, the Indemnified Party shall estimate the amount of the
claim in the Indemnification Claim Notice. Each Indemnitor to which an Indemnification Claim Notice is given shall respond to any Indemnified Party that has given an Indemnification Claim Notice (a “Claim Response”) within
thirty (30) days (the “Response Period”) after the date that the Indemnification Claim Notice is given. Any Claim Response shall specify whether or not the Indemnitor giving the Claim Response disputes the claim
described in the Indemnification Claim Notice. If any Indemnitor fails to give a Claim Response within the Response Period, such Indemnitor shall be deemed not to dispute the claim described in the related Indemnification Claim Notice. If any
Indemnitor elects not to dispute a claim described in an Indemnification Claim Notice, whether by failing to give a timely Claim Response in accordance with the terms hereof or otherwise, then the amount of such claim shall be conclusively deemed to
be an obligation of such Indemnitor. 
 (b) If, during the Response Period, an Indemnified Party receives a Claim Response from the
Indemnitor, then for a period of thirty (30) days (the “Resolution Period”) after the Indemnified Party’s receipt of such Claim Response, the Indemnified Party and the Indemnitor shall endeavor to resolve any dispute
arising therefrom. If such dispute is resolved by the parties during the Resolution Period, the amount that the parties have specified in writing as the amount to be paid by the Indemnitor, if any, as settlement for such dispute shall be
conclusively deemed to be an obligation of such Indemnitor. If the parties are unable agree upon a resolution to such dispute prior to the expiration of the Resolution Period (or any extension thereto to which the Indemnitor and Indemnified Party
agree in writing), the issue shall be presented to the American Arbitration Association in San Francisco, California (the “AAA”) for determination. The arbitration shall be before a panel of three arbitrators, one selected by
Buyer, one selected by the Stockholders’ Representative and one selected by the two selected arbitrators, and the commercial arbitration rules of the AAA shall govern such arbitration. The written determination of the AAA shall be binding upon
the parties and not subject to any appeal. 
  

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 9.5 Third-Party Claims. An Indemnified Party that desires to seek indemnification under any part
of this Article IX with respect to any actions, suits or other administrative or judicial proceedings (each, an “Action”) that may be instituted by a third party shall give each Indemnitor notice after having Knowledge of
such Action, of a third party’s institution of such Action, and copies of all documents and information relating to such Action after receipt thereof. After such notice, any Indemnitor may, at its sole option and expense, participate in such
Action or assume the defense thereof, with counsel of its own choice. The Indemnified Party shall not consent to the entry of any judgment or enter into any settlement, except with the written consent of the Indemnitor. Any failure to give notice
under this Section 9.5 shall not bar an Indemnified Party’s right to claim indemnification under this Article IX, except to the extent that an Indemnitor shall have been harmed by such failure. If a firm written offer is made to settle any
such Action, the Indemnitor proposes to accept such settlement and the Indemnified Party refuses to consent to such settlement, then: (i) the Indemnitor shall be excused from, and the Indemnified Party shall be solely responsible for, all
further defense of such Action, and (ii) provided that only monetary damages may be recovered in such Action (and the Indemnified Party is not subject to any injunctive relief, equitable or other non-monetary relief in connection with such
Action), the maximum liability of the Indemnitor relating to such Action shall be the amount of the proposed settlement if the actual monetary amount thereafter recovered from the Indemnified Party on such Action is greater. Notwithstanding anything
contained in this Article IX, the Stockholders jointly and severally covenant and agree, at its expense, to assume and control the defense of any action or matter set forth on Schedule 3.5 of the Company Disclosure Letter. 
 9.6 Stockholders’ Representative. 
 (a) Upon approval of the Merger and this Agreement by the Stockholders, each Stockholder will be deemed to have irrevocably appointed the Stockholders’ Representative, as his true and lawful attorney-in-fact and agent (the
“Stockholders’ Representative”), with full power of substitution or resubstitution, to act solely and exclusively on behalf of such Stockholder with respect to the transactions contemplated by this Agreement, including
the Merger, and to act on behalf of such Stockholder in any litigation or arbitration involving this Agreement, to do or refrain from doing all such further acts and things, and to execute all such documents as the Stockholders’ Representative
shall deem necessary or appropriate in connection with the transactions contemplated hereby, including the power: 
 (i) to act for such
Stockholder with regard to matters pertaining to indemnification referred to in this Agreement, including the power to compromise any indemnity claim on behalf of such Stockholder; 
 (ii) to act for such Stockholder with regard to matters pertaining to litigation; 
 (iii) to execute and deliver all documents in connection with the transactions contemplated hereby or amendments thereto that the Stockholders’
Representative deems necessary or appropriate; 
 (iv) to receive funds, make payments of funds, and give receipts for funds; 
 (v) to receive funds for the payment of expenses of such Stockholder and apply such funds in payment for such expenses; 
 (vi) to do or refrain from doing any further act or deed on behalf of such Stockholder that the Stockholders’ Representative deems necessary or
appropriate in his sole discretion relating to the subject matter of this Agreement as fully and completely as such Stockholder could do if personally present; and 
  

 39 

 (vii) to receive service of process in connection with any claims under this Agreement. 
 (b) The appointment of the Stockholders’ Representative shall be deemed coupled with an interest and shall be irrevocable, and Buyer, Merger
Subsidiary and Surviving Corporation and any other person may conclusively and absolutely rely, without inquiry, upon any action of the Stockholders’ Representative in all matters referred to herein. Any notices required to be made or delivered
to the Company or any of the Stockholders shall be made to the Stockholders’ Representative and shall discharge in full all notice requirements, as applicable, to such Stockholder and/or the Company with respect thereto. By their appointment of
the Stockholders’ Representative, the Stockholders thereby confirm all that the Stockholders’ Representative shall do or cause to be done by virtue of his appointment as the representatives of the Stockholders hereunder. The
Stockholders’ Representative shall act for the Stockholders on all of the matters set forth in this Agreement in the manner the Stockholders’ Representative believes to be in the best interest of the Stockholders and consistent with the
obligations of the Stockholders under this Agreement, but the Stockholders’ Representative shall not be responsible to any Stockholder for any damages which the Stockholders may suffer by the performance of the Stockholders’
Representative’s duties under this Agreement, other than damages arising from willful violation of applicable law or gross negligence in the performance of such duties under this Agreement. The Stockholders’ Representative shall not have
any duties or responsibilities except those expressly set forth in this Agreement, and no implied covenants, functions, responsibilities, duties or liabilities shall be read into this Agreement or shall otherwise exist against the Stockholders’
Representative. 
 ARTICLE X  
 GENERAL PROVISIONS 
 10.1 Governing Law; Dispute Resolution; Waiver of Jury Trial. This
Agreement shall be governed by, and construed in accordance with, the laws of the State of California applicable to contracts executed in and to be performed in that state and without regard to any applicable conflicts of law. Except as otherwise
provided in Sections 2.7, 2.8 and 9.4, any dispute directly or indirectly based upon, arising out of, connected to or relating to this Agreement, the transactions contemplated hereby or any right or obligation created hereby, irrespective of the
legal theory or claims underlying any such dispute (including any tort and statutory claims), shall be resolved in any state or federal court of competent jurisdiction located in the County of Santa Clara, California. Each of the parties to this
Agreement hereby irrevocably (a) consents to submit itself to the personal jurisdiction of any such state or federal court in the event any dispute arises out of this Agreement or any of the transactions contemplated hereby, (b) agrees that it will
not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court, including a motion for forum of non conveniens or other actions or other motions asserting the aforementioned forum is inconvenient,
and (c) agrees that it will not bring any action in relation of this Agreement or any of the other transactions contemplated hereby in any court other than such state or federal court. Each party acknowledges and agrees that any controversy which
may arise under this Agreement is likely to involve complicated and difficult issues, and therefore EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ISSUE WITHIN ANY
ACTION AT LAW OR SUIT IN EQUITY DIRECTLY OR INDIRECTLY BASED UPON, ARISING OUT OF, CONNECTED TO OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, OR ANY RIGHT OR OBLIGATION CREATED HEREBY. 
 10.2 Notices. All notices and other communications required or permitted under this Agreement must be in writing and either hand delivered in
person, sent by certified or registered first-class mail, postage pre-paid, or sent by nationally recognized express courier service. Such notices 

  

 40 

 
and other communications will be effective upon receipt if hand delivered, or upon delivery if sent by mail or express courier, to the following addresses,
or such other addresses as any party may notify the other parties in writing in accordance with this Section 10.2. 
  

			
	(i)	  	if to Buyer:
		
		  	 Two Concourse Parkway
 Suite 800
 Atlanta, Georgia 30328
 Attn: Eric Musser
  
 With a copy to:
  
 Two Concourse Parkway
 Suite 800
 Atlanta, Georgia 30328
 Attn: Verome Johnston
  

	(ii)	  	 if to the Stockholders’ Representative:
  
 Mark R. Elconin
 15315 Bohlman Rd
 Saratoga, CA 95070
  
 With copies to:
  
 Alvin W. Smith
 125 Stacia St
 Los Gatos, CA 95030
  
 John Montgomery, Esq.
 Montgomery & Hansen, LLP
 525 Middlefield Road, Suite 250
 Menlo Park, CA 94025

 10.3 Interpretation; Rules of Construction. When a reference is made in this Agreement to
Articles, Sections or Exhibits, such reference shall be to an Article or Section of, or an Exhibit to, this Agreement unless otherwise indicated. The words “include,” “includes” and “including” when used herein shall be
deemed in each case to be followed by the words “without limitation.” Unless the context of this Agreement otherwise requires: (i) words of any gender include each other gender; (ii) words using the singular or plural number also
include the plural or singular number, respectively; and (iii) the terms “hereof,” “herein,” “hereunder” and derivative or similar words refer to this entire Agreement. The headings contained in this Agreement are
for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. The parties hereto have been represented by counsel during the negotiation, preparation and execution of this Agreement and, therefore,
hereby waive, with respect to this Agreement and each Exhibit attached hereto, the application of any law, regulation, holding or rule of construction providing that ambiguities in an agreement or other document shall be construed against the party
drafting such agreement or document. Each reference herein to a law, statute, regulation, document or agreement will be deemed in each case to include all amendments thereto. 
 10.4 Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or
public policy, all other conditions and provisions of this 

  

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Agreement will nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not
affected in any manner materially adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto will negotiate in good faith to modify this Agreement so as to
effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible. 
 10.5 Entire Agreement; Parties in Interest. This Agreement and the documents and instruments and other agreements specifically referred to herein
or delivered pursuant hereto, including all the Exhibits and Schedules attached hereto and the Company Disclosure Letter, (i) constitute the entire agreement among the parties hereto with respect to the subject matter hereof and supersede all
prior agreements and understandings, both written and oral, among the parties hereto with respect to the subject matter hereof and (ii) are not intended to confer, and shall not be construed as conferring, upon any Person other than the parties
hereto any rights or remedies hereunder unless specifically provided otherwise herein. The express terms of this Agreement control and supersede any course of performance or usage of the trade inconsistent with any of the terms hereof. 

10.6 Assignment. Neither this Agreement nor any of the rights, interests or obligations under this Agreement may be assigned or delegated, in
whole or in part, by operation of law or otherwise by any of the parties hereto without the prior written consent of the other parties hereto, and any such assignment without such prior written consent shall be null and void, except that Buyer may
assign this Agreement to any direct or indirect wholly owned subsidiary of Buyer without the Company’s prior consent; provided, however, that Buyer shall remain liable for all of its obligations under this Agreement. Subject to
the preceding sentence, this Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties hereto and their respective successors and assigns. 
 10.7 Amendment; Extension; Waiver. Subject to the provisions of applicable law, the parties hereto may amend this Agreement at any time pursuant
to an instrument in writing signed on behalf of each of the parties hereto. At any time, either Buyer or the Company may, to the extent legally allowed, (i) extend the time for the performance of any of the obligations or other acts of the
other party hereto, (ii) waive any inaccuracies in the representations and warranties made to such party contained herein or in any document delivered pursuant hereto, and (iii) waive compliance with any of the agreements or conditions for
the benefit of such party contained herein. Any agreement on the part of a party hereto to any such extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf of such party. Without limiting the generality or
effect of the preceding sentence, no delay in exercising any right under this Agreement shall constitute a waiver of such right, and no waiver of any breach or default shall be deemed a waiver of any other breach or default of the same or any other
provision in this Agreement. 
 10.8 No Joint Venture. Nothing contained in this Agreement will be deemed or construed as creating a
joint venture or partnership between any of the parties hereto. No party is by virtue of this Agreement authorized as an agent, employee or legal representative of any other party. No party will have the power to control the activities and
operations of any other, and their status is, and at all times will continue to be, that of independent contractors with respect to each other. No party will have any power or authority to bind or commit any other party. No party will hold itself
out as having any authority or relationship in contravention of this Section 10.8. 
 10.9 Counterparts; Facsimile. This
Agreement may be executed in any number of counterparts, each of which when so executed and delivered will be deemed an original, and all of which together shall constitute one and the same agreement. This Agreement may be executed and delivered by
facsimile and upon such delivery the facsimile signature will be deemed to have the same effect as if the original signature had been delivered to the other parties. 
 [Signature Page Follows] 
  

 42 

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

			
	COMPANY:
	
	SARATOGA SYSTEMS INC.
		
	By:	 	 /s/ Mark Elconin

	Name:	 	Mark Elconin
	Title:	 	Chairman / CEO
	
	MERGER SUBSIDIARY:
	
	CDC MERGER SUB, INC
		
	By:	 	 /s/ Verome M. Johnston

	Name:	 	Verome M. Johnston
	Title:	 	VP / CFO
	
	BUYER:
	
	CDC SOFTWARE, INC
		
	By:	 	 /s/ Verome M. Johnston

	Name:	 	Verome M. Johnston
	Title:	 	VP / CFO
	
	STOCKHOLDERS
	
	MR. ALVIN W. SMITH
		
	By:	 	 /s/ Alvin W. Smith

	
	MR. MARK R. ELCONIN
		
	By:	 	 /s/ Mark R. Elconin

  

 CDC/Saratoga – Merger Agreement

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