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Exhibit 10.4  

 
 

REGISTRATION RIGHTS AGREEMENT    
  

        THIS REGISTRATION RIGHTS AGREEMENT dated as of January 31, 2002 (this "Agreement"), by and between COMVERSE
INFOSYS, INC., a Delaware corporation (the "Company"), and COMVERSE TECHNOLOGY, INC., a New York corporation
("Comverse"). 

 
 

W I T N E S S E T H:    
  

        WHEREAS, Comverse is the holder of a majority of the outstanding shares of common stock, par value $.001 per share, of the Company
("Common Stock"); and 

        WHEREAS,
the parties hereto desire to enter into this Agreement which sets forth the registration rights, and certain other related covenants, applicable to the shares of Common Stock
that are held from time to time by Comverse and/or any of its subsidiaries. 

        NOW,
THEREFORE, in consideration of the premises and the mutual obligations, covenants and agreements herein contained, the parties hereto agree as follows: 

 
 

ARTICLE I
  DEFINITIONS    
  

        1.1    Definitions.    For purposes of this Agreement, the following terms shall have the meanings set forth below: 

        "Affiliate" shall mean, with respect to any given Person, any other Person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with, such Person, and when used with respect to any individual shall also include the Relatives of such individual. The term
"control" (including, with correlative meaning, the terms "controlled by" and "under common control with"), as used with respect to any Person, means the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise. 

        "Business Day" means any day other than a Saturday, Sunday or other day on which commercial banks in New York City are authorized or
required by law to close. 

        "Commission" means the Securities and Exchange Commission or any other similar or successor agency of the United States government
administering the Securities Act. 

        "Exchange Act" means the Securities Exchange Act of 1934, and any similar or successor federal statute, and the rules and regulations of
the Commission thereunder, as in effect at the time. 

 

        "NASD" shall mean the National Association of Securities Dealers, Inc. or any successor corporation thereto. 

        "Person" means a corporation, an association, a trust, a partnership, a limited liability company, a joint venture, an organization, a
business, an individual, a government or political subdivision thereof, or a governmental body. 

        "Prospectus" means the prospectus included in any Registration Statement, together with and including any amendment or supplement to such
prospectus, covering the public offering of any portion of the
Registrable Securities covered by a Registration Statement, and all material incorporated by reference in such Prospectus. 

        "Registering Shareholder" means any Shareholder whose Registrable Securities are included in a Registration Statement filed pursuant to
this Agreement. 

        "Registrable Securities" means the shares of Common Stock held by Comverse or any subsidiary thereof on the date hereof or that may be
acquired by Comverse or any subsidiary thereof from time to time after the date hereof and any shares or other securities into which or for which such shares of Common Stock may be changed, converted
or exchanged after the date hereof and any other shares or securities issued after the date hereof in respect of such shares (or such shares or other securities into which or for which such shares are
so changed, converted or exchanged), in each case upon any reclassification, stock combination, stock subdivision, stock dividend, share exchange, merger, consolidation or similar transaction;
provided, however, that a security will cease to be a Registrable Security when it (i) has been effectively registered under the Securities Act and disposed of in accordance with the
Registration Statement covering it or (ii) is sold pursuant to Rule 144 (or any similar rule then in force) under the Securities Act. 

        "Registration Statement" means a registration statement filed or to be filed by the Company with the Commission covering Registrable
Securities. 

        "Relatives" means, with respect to any individual, the spouse, parents, siblings and descendants of such individual and their respective
issue (whether by blood or adoption and including stepchildren) and the spouses of such persons. 

        "Securities Act" means the Securities Act of 1933, as amended, or any similar federal statute, together with the rules and regulations of
the Commission promulgated thereunder, as in effect at the time. 

        "Shareholder" means Comverse, any subsidiary thereof or successor thereto that holds Registrable Securities. 

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ARTICLE II
  REGISTRATION RIGHTS    
  

        2.1    Demand Registration.    

        (a)    Request for Registration.    Subject to the provisions hereof, at any time and from time to time Comverse may
make a written request (a "Demand") that the Company prepare and file with the Commission a Registration Statement on Form S-1 or, if the Company is then eligible to do so, that the
Company prepare and file with the Commission a Registration Statement on Form S-3, so as to permit a public offering and sale of Registrable Securities. Any Demand shall specify the
number of Registrable Securities proposed to be registered and the intended method of disposition thereof. A registration effected pursuant to this Section 2.1 is hereinafter referred to as a
"Demand Registration." 

        (b)    Limitation on Demand Rights.    Notwithstanding anything to the contrary set forth in Section 2.1(a)
hereof: (i) no Demand may be made less than (A) one hundred and eighty (180) days following the effective date of the Registration Statement on Form S-1 filed
by the Company in connection with an initial public offering of the Common Stock; or (B) ninety (90) days following the effective date of any Registration Statement filed by the Company
pursuant to Sections 2.1 hereof; and (ii) Comverse shall not be entitled to make more than one Demand that the Company prepare and file with the Commission a Registration Statement on
Form S-1. 

        (c)    Right to Delay Demand Registration.    If, at any time when a Demand is received by the Company, (i) the
Company has undertaken to prepare a registration statement which is intended to be filed within ninety (90) days from the date the Demand was received, or (ii) the Company's Board of
Directors determines, in good faith, that filing a Registration Statement in response to such Demand either (A) would require the Company to make a public disclosure of information which would
have a material adverse effect upon the Company or would be seriously detrimental to the Company or its shareholders or (B) could interfere with, or would require the Company to accelerate
public disclosure of, any material financing, acquisition, disposition, corporate reorganization or other material transaction involving the Company or its subsidiaries, then the Company may, at its
option, cause the registration requested pursuant to the Demand to be delayed for a period not in excess of ninety (90) days from the effective date of the registration statement which the
Company is preparing or from the date such Demand was received (such right to delay a request pursuant to clause (ii) of this Section 2.1(c) may be exercised by the Company not more than
twice in any calendar year). If there is a postponement under this Section 2.1(c), Comverse may withdraw such Demand by giving notice in writing to the Company. In such case, no Demand will
have been delivered for the purposes of this Section 2.1. 

        (d)    Company Participation.    The Company may elect to register in any Registration Statement prepared pursuant to
a Demand made under this Section 2.1 any additional shares of Common Stock (including, without limitation, any shares of Common Stock to be distributed in a primary offering made by the
Company). Such 

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election,
if made, shall be made by the Company giving written notice to Comverse stating (i) that the Company proposes to include additional shares of Common Stock in such Registration
Statement and (ii) the number of shares of Common Stock proposed to be so included. 

        (e)    Withdrawal Right.    Comverse shall have the right to withdraw any Demand by giving written notice to the
Company of its request to withdraw; provided, however, that (i) such withdrawal request must be made in writing prior to the earlier of (A) the execution of the underwriting agreement or
the execution of the custody agreement with respect to such Demand Registration or (B) in the absence of any such agreement, the date on which the Registration Statement filed pursuant to such
Demand is declared effective, and (ii) such withdrawal shall be irrevocable and, after making such withdrawal, Comverse shall not be entitled to make any subsequent Demand for a period of
ninety (90) days after the date of such withdrawal. 

        (f)    Effective Demand.    For purpose of clause (ii) of Section 2.1(b) hereof, a Demand, if made
pursuant to Section 2.1(a) and not withdrawn in accordance with Section 2.1(e), shall be deemed to have been made only if (i) in response thereto, the Company shall have filed a
Registration Statement, (ii) such Registration Statement shall have been declared effective under the Securities Act and (iii) such Registration Statement shall not have become the
subject of any stop order, injunction or other order or requirement of the Commission or any other governmental or administrative agency which prevents the sale of Registrable Securities pursuant to
such Registration Statement, and no court prevents or otherwise limits the sale of such securities pursuant to such Registration Statement; provided, however, that, notwithstanding anything to the
contrary set forth in this Section 2.1(f), a Demand shall be deemed to have been made by Comverse, if Comverse made a Demand and either (x) Comverse withdrew such Demand after the
earlier of (A) the execution of the underwriting agreement or the execution of the custody agreement with respect to such Demand Registration or (B) in the absence of any such agreement,
the date on which the Registration Statement filed pursuant to such Demand is declared effective, or (y) the failure of one or more of the conditions set forth in clauses (i), (ii) or
(iii) of this Section 2.1(f) to be satisfied is attributable to the acts or omissions of Comverse. 

        2.2    Piggyback Registration.    

        (a)    Notice of Registration.    If, at any time, the Company proposes to file a registration statement with
the Commission in connection with any public offering of Common Stock (other than in connection with an initial public offering of Common Stock), whether for the account of the Company or any other
Person (other than a registration statement on Form S-4 or Form S-8 (or any successor forms under the Securities Act) or other registrations relating solely to
employee benefit plans or any transaction governed by Rule 145 under the Securities Act), the Company shall give written notice of such proposed filing and proposed date thereof to each
Shareholder that owns Registrable Securities at least fifteen (15) days before the anticipated filing of such registration statement, offering such Shareholder the
opportunity to offer and sell Registrable Securities, by means of the prospectus contained in such registration 

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statement.
If such Shareholder desires to have its Registrable Securities registered under such registration statement pursuant to this Section 2.2, such Shareholder shall advise the Company
thereof in writing within ten (10) days after the date of its receipt of the Company's notice (which request shall set forth the number of Registrable Securities for which registration is
requested). Subject to Sections 2.3 hereof, the Company shall include in such registration statement, if filed, all Registrable Securities so requested by such Shareholder to be included so as to
permit such securities to be sold or disposed of in the manner and on the terms set forth in such request. Such registration shall hereinafter be called a "Piggyback Registration". The Company shall
have the right at any time to delay or discontinue, without liability to the Shareholders, any Piggyback Registration under this Section 2.2 at any time prior to the effective date of the
Registration Statement if the proposed offering of Common Stock contemplated thereunder is discontinued. 

        (b)    Withdrawal Right.    Any Shareholder shall have the right to withdraw its request for inclusion of its
Registrable Securities in any Registration Statement pursuant to this Section 2.2 by giving written notice to the Company of its request to withdraw; provided, however, that (i) such
withdrawal request must be made in writing prior to the earlier of the execution of the underwriting agreement or the execution of the custody agreement with respect to such Piggyback Registration and
(ii) such withdrawal shall be irrevocable and, after making such withdrawal, such Shareholder shall no longer have any right to include Registrable Securities in the Piggyback Registration from
which such Shareholder withdrew. 

        2.3    Allocation of Securities Included in Registration Statements.    In connection with any Registration Statement
in which the Shareholders have requested to include Registrable Securities which relates to an underwritten public offering, if the managing underwriter(s) of such offering advise(s) that the
inclusion in such Registration Statement of some or all of the shares sought to be registered thereunder exceeds the number of shares (the "Saleable
Number") that can be sold in an orderly fashion without a substantial risk that the price per share to be derived from such registration will be materially and adversely
affected, then the number of shares offered thereunder shall be limited to the Saleable Number and shall be allocated, subject to Section 3.5 below, as follows: 

        (i)    if
such registration is being effected in connection with any Piggyback Registration requested by the Shareholders for inclusion pursuant to Section 2.2 hereof,
(1) first, to all the shares of Common Stock that the Company proposes to register for its own account, (2) second, the difference, if any, between the Saleable Number and the number of
shares to be included pursuant to clause (1) above, to Registrable Securities of Comverse, (3) third, the difference, if any, between the Salable Number and the number of shares to be
included pursuant to clauses (1) and (2) above, to Registrable Securities of the other Shareholders, pro rata on the basis of the number of Registrable Securities requested to be
included in such Piggyback Registration by each such Shareholder, until such Shareholders have sold all such Registrable Securities, and (4) fourth, the difference, if any, between the Saleable
Number and the 

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number
of shares to be included pursuant to clauses (1), (2) and (3) above, to all other selling shareholders, pro rata on the basis of the number of shares offered for sale by each such
shareholder; and 

        (ii)    if
the registration is being effected pursuant to a Demand Registration requested by Comverse pursuant to Section 2.1 hereof, (1) first, to Registrable
Securities of Comverse, (2) second, the difference, if any, between such number and number of shares to be included in such Demand Registration pursuant to clause (1) above, to
Registrable Securities of the other Shareholders participating in the offering, pro rata, on the basis of the number of Registrable Securities requested to be included in such Demand Registration by
each such Shareholder, until such Shareholders have sold all such Registrable Securities, (3) third, the difference, if any, between the Saleable Number and the number of shares to be included
pursuant to clauses (1) and (2) above, to shares that the Company proposes to register for its own account, and (4) fourth, the difference, if any, between the Saleable Number and
the number of shares to be included pursuant to clauses (1), (2) and (3) above, to all other selling shareholders, pro rata on the basis of the number of shares requested to be included
by each such shareholder. 

        2.4    Certain Notices; Suspension of Sales.    The Company may, upon written notice to the Registering Shareholders,
suspend such Registering Shareholder's use of any Prospectus (which is a part of any Registration Statement) for a reasonable period not to exceed ninety (90) days if the Company in its
reasonable judgment believes it may possess material non-public information the disclosure of which in its reasonable judgment would have a material adverse effect on the Company and its
subsidiaries taken as a whole. Each Registering Shareholder of Registrable Securities agrees by its acquisition of such Registrable Securities to hold any communication by the Company pursuant to this
Section 2.4 in confidence. 

 
 

ARTICLE III
  REGISTRATION PROCEDURES    
  

        3.1    Registration Procedures.    Subject to the terms of this Agreement, whenever the Company is required to effect
or cause the registration of Registrable Securities pursuant to Article II hereof, the Company shall use commercially reasonable efforts to effect the registration of such Registrable
Securities in accordance with the intended method of disposition thereof as quickly as practicable. In connection with any Demand Registration, the Company shall, except as set forth in
Section 2.1(c), as expeditiously as possible (and in no event more than sixty (60) days from the date of receipt of a Demand) prepare and file with the Commission a Registration
Statement on such form (including Form S-3) for which the Company then qualifies as the Company shall deem appropriate and which shall be available for the
sale of the Registrable Securities to be registered thereunder in accordance with the provisions of this Agreement and in accordance with the intended method of disposition of such Registrable
Securities. The Company shall use commercially reasonable efforts to cause any Registration Statement filed hereunder to be declared effective as soon as reasonably 

6

 

practicable
after the filing thereof with the Commission, including, without limitation, preparing and/or filing with the Commission such other documents as may be necessary to comply with the
provisions of the Securities Act. Subject to the provisions of Section 2.4 hereof, the Company shall as expeditiously as possible prepare and file with the Commission such amendments and
supplements to any Registration Statement filed hereunder and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement effective (pursuant to Rule 415
under the Securities Act or otherwise) until the earlier of (i) the date on which all of the Registrable Securities registered therein shall have been sold, and (ii) ninety
(90) days after such Registration Statement is declared effective. 

        3.2    Copies; Review.    

        (a)    At
least five (5) Business Days before filing a Registration Statement or Prospectus or any amendment or supplement thereto (whether before or after
effectiveness), the Company will furnish to the Registering Shareholders copies of all such documents proposed to be filed. Such documents will be subject to the review of the Registering
Shareholders. The Company will immediately amend such Registration Statement and Prospectus to include such reasonable changes as the Registering Shareholders and the Company reasonably agree should
be included therein. Any Registering Shareholder requesting a change which in its reasonable judgment is unreasonably refused by the Company may withdraw its Registrable Securities from such
Registration Statement. 

        (b)    The
Company shall make available for inspection by any Registering Shareholder, any underwriter participating in any disposition pursuant to a Registration Statement,
and any attorney, accountant or other agent retained by any such shareholder or underwriter (collectively, the "Inspectors"), all material financial and other records, pertinent documents and
properties of the Company as shall be necessary to enable them to exercise their due diligence responsibility. The Company shall cause its officers, directors and employees to supply all material
information requested by any such Inspector in connection with any such Registration Statement. 

        3.3    Amendments.    Subject to Section 2.4 hereof, the Company shall (a) prepare and file with the
Commission such amendments and post-effective amendments to the Registration Statement as may be necessary to keep the Registration Statement effective for the applicable time period
required herein, (b) cause the Prospectus to be supplemented by any required Prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 under the Securities Act, and
(c) comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such
Registration Statement during the applicable period in accordance with the intended methods of disposition by the Registering Shareholders set forth in such Registration Statement or Prospectus
supplement. 

        3.4    Notification.    The Company shall promptly notify the Registering Shareholders and (if requested by any such
Person) confirm such notification in writing, (a) when the Prospectus has been filed, and, with respect to the Registration Statement, 

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when
it has become effective, (b) of any request by the Commission for amendments or supplements to the Registration Statement or the Prospectus or for additional information, (c) of the
issuance of any stop order suspending the effectiveness of the Registration Statement, or the refusal or suspension of qualification of registration of Registrable Securities, or the initiation of any
proceedings for that purpose, (d) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction, or the initiation or threatening of any proceeding for such purpose, and (e) of any event that makes any material statement made in the Registration
Statement, the Prospectus or any document incorporated therein by reference untrue or that requires the making of any changes in the Registration Statement, the Prospectus or any document incorporated
therein by reference in order to make the statements therein, in light of the circumstances under which they were made, not misleading in any material respect. Subject to Section 2.4 hereof,
the Company will make every reasonable effort to obtain the withdrawal of any order suspending the effectiveness of the Registration Statement at the earliest possible moment. If any event
contemplated by clause (e) occurs, subject to Section 2.4 hereof, the Company shall promptly prepare a supplement or post-effective amendment to the Registration Statement or
the Prospectus or file any other required document so that, as thereafter delivered to the purchasers of the Registrable Securities, the Prospectus will not contain an untrue statement of a material
fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. Upon receipt of any notice from the Company
that any event of the kind described in clause (b), (c), (d) or (e) has happened, each Registering Shareholder shall discontinue offering the Registrable Securities until the
Registering Shareholder receives the copies of the supplemented or amended Prospectus contemplated by the previous sentence, or until it is advised in writing by the Company that the use of the
Prospectus may be resumed, and has received copies of any additional or supplemental filings that are incorporated by reference in the Prospectus. 

        3.5    Information Included.    The Company may require each Registering Shareholder to furnish in writing to the
Company such information regarding the Registering Shareholder and the distribution of the Registrable Securities as the Company may from time to time reasonably require for inclusion in the
Registration Statement, and such other information as may be legally required in connection with such registration including, without limitation, all such information as may be requested by the
Commission or the NASD. Each Registering Shareholder shall provide such information in writing and signed by such Shareholder and stated to be specifically for inclusion in the Registration Statement.
The Company may exclude from such registration the Registrable Securities of any Registering Shareholder that fails to furnish such information within a reasonable time after receiving such request.
Each
Registering Shareholder agrees to furnish to the Company all information required to be disclosed in order to make the information previously furnished to the Company by such Registering Shareholder
not misleading. If requested by the Registering Shareholders, the Company will as soon as practicable incorporate in a Prospectus supplement or post-effective amendment such information as
the Registering Shareholders reasonably request be included therein relating to the sale of the Registrable Securities, including, but not limited to, information with respect to the number of
Registrable Securities being sold 

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and
any other terms of the distribution of the Registrable Securities to be sold in such Offering. Subject to Section 2.4 hereof, the Company will make all required filings of such Prospectus
supplement or post-effective amendment as promptly as practicable after being notified of the matters to be incorporated in such Prospectus supplement or post-effective
amendment. 

        3.6    Underwritten Offerings.    In the event that the distribution of the Registrable Securities covered by a
Registration Statement filed hereunder shall be effected by means of an underwriting, the following provisions shall apply: 

        (a)    if
such distribution of Registrable Securities is being effected pursuant to a Demand Registration, the underwriter(s) shall be designated by Comverse; 

        (b)    the
Company shall (i) cooperate with the underwriter(s), including attending any road shows and providing such assistance as the underwriter(s) may reasonably
request in connection with the preparation of any materials necessary or desirable to effect such underwriting, (ii) enter into any such underwriting agreement as shall be appropriate in the
circumstances, (iii) use commercially reasonable efforts to comply with and satisfy all of the terms and conditions of each such underwriting agreement to which it shall be a party, and
(iv) comply with all applicable rules and regulations of the Commission including, without limitation, applicable reporting requirements under the Exchange Act; and 

        (c)    if
such distribution of Registrable Securities is being effected pursuant to a Demand Registration, including, without limitation, in any primary offering by the
Company, any over-allotment option to be granted to the managing underwriter(s) shall be allocated to and granted by any Person designated by Comverse, and if such distribution is being
effected pursuant to a Piggyback Registration, any over-allotment option to be granted to the managing underwriter(s) shall be allocated to and granted by the Company (in the event of any
primary offering by the Company) and all selling shareholders pro-rata based on the number of shares sold pursuant to such offering. 

        3.7    Copies.    The Company will (i) promptly furnish to the Registering Shareholders without charge, at
least one signed copy of the Registration Statement and any post-effective amendment thereto, including financial statements and schedules, all documents incorporated therein by reference
and all exhibits (including those incorporated by reference), and (ii) promptly deliver to the Registering Shareholders without charge, as many copies of the Prospectus (including each
preliminary Prospectus) and any amendment or supplement thereto as such Persons may reasonably request. The Company consents to the use of the Prospectus or any amendment or supplement thereto by the
Registering Shareholders in connection with the offering and sale of the Registrable Securities covered by the Prospectus or any amendment or supplement thereto. 

        3.8    Blue Sky Registration.    Prior to any offering of Registrable Securities covered by a Registration Statement
under Sections 2.1 or 2.2, the Company will register or qualify or cooperate with the Registering Shareholders and their 

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respective
counsel in connection with the registration or qualification of such Registrable Securities under the securities or blue sky laws of any such jurisdictions in the United States as the
Registering Shareholders reasonably request in writing, and do any and all other acts or things necessary or advisable to enable the disposition in such jurisdictions of such Registrable Securities.
The Company will not be required to take any actions under this Section 3.8 if such actions would require the Company to submit to the general taxation of any jurisdiction where it is not then
so subject or to file in any jurisdiction any general consent to service of process. 

        3.9    Certificates.    The Company will cooperate with the Registering Shareholders to facilitate the timely
preparation and delivery of certificates representing Registrable Securities to be sold that do not bear any restrictive legends. Such certificates will be in such denominations and registered in such
names as the Registering Shareholders request at least two (2) Business Days prior to any sale of Registrable Securities. 

        3.10    Section 11(a) Notice.    The Company will make generally available to its shareholders the information
required pursuant to the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder. 

        3.11    Registration Expenses.    

        (a)    Company Expenses.    Subject to the provisions of Section 3.11(b) below, the Company shall pay all
expenses incident to the Company's performance of or compliance with this Agreement, including, but not limited to, all registration and filing fees, fees and expenses of compliance with securities or
blue sky laws, fees and expenses incurred in connection with the quotation or listing of the Registrable
Securities on Nasdaq (or any other exchange on which such securities are then listed), transfer agent fees, printing expenses, messenger expenses, telephone and delivery expenses, and fees and
disbursements of counsel to the Company and of independent certified public accountants of the Company. The Company shall also pay for (i) the Company's internal expenses, including the expense
of any annual audit, and (ii) the fees and expenses of any Person retained by the Company. 

        (b)    Shareholder Expenses.    The Registering Shareholders shall pay all underwriting fees, commission and discounts
with respect to the sale of any Registrable Securities and any transfer taxes incurred in respect of such sale. Each Registering Shareholder shall also be responsible for the payment of all fees and
expenses of legal counsel retained by it. 

 
 

ARTICLE IV
  INDEMNIFICATION    
  

        4.1    Indemnification by the Company.    The Company will indemnify and hold harmless each of the Registering
Shareholders from and against any and all losses, claims, damages and liabilities ("Losses") reasonably incurred in connection with, and any amount paid in settlement of, any action, suit or
proceeding or any claim asserted 

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to
which the Registering Shareholder may become subject under the Securities Act, the Exchange Act or other federal or state securities law or regulation, at common law or otherwise, insofar as such
Losses arise out of or are based upon (a) any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement, Prospectus or preliminary prospectus or
any amendment or supplement thereto or the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, or (b) any violation by the Company of the Securities Act or the Exchange Act, or other federal or state securities law applicable to
the Company and relating to any action or inaction required of the Company in connection with such registration. In addition, the Company will reimburse the Registering Shareholder for any reasonable
investigation, legal or other expenses incurred by such Registering Shareholder in connection with investigating or defending any such Loss. Notwithstanding anything herein to the contrary, the
Company will not be liable with respect to the portion of any such Loss that (i) arises out of or is based upon any alleged untrue statement or alleged omission made in such Registration
Statement, preliminary Prospectus, Prospectus, or amendment or supplement in reliance upon and in conformity with written information furnished to the Company by the Registering Shareholders
specifically for use therein or (ii) attributable to a Registering Shareholder's (A) use of a Prospectus after being notified by the Company to suspend use thereof pursuant to
Section 3.4 above or (B) failure to deliver a final Prospectus to the Person asserting any losses, claims, damages and liabilities and judgments caused by any untrue statement or alleged
untrue
statement of a material fact contained in any preliminary prospectus, or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, if such material misstatement or omission or alleged material misstatement or omission was cured in an amended or supplemented Prospectus prepared by the Company
and delivered to the Registering Shareholder at or prior to the time written confirmation of sale to such Person was required to be made. The foregoing indemnity will remain in full force and effect
regardless of any investigation made by or on behalf of the Registering Shareholder, and will survive the transfer of such securities by the Registering Shareholder. 

        4.2    Indemnification by Registering Shareholders.    If a Registering Shareholder sells Registrable Securities under
a Prospectus that is part of a Registration Statement, the Registering Shareholder shall indemnify and hold harmless the Company, its directors and each officer who signed such Registration Statement
and each Person who controls the Company (within the meaning of Section 15 of the Securities Act) (each, a "Controlling Person") under the same
circumstances as the foregoing indemnity from the Company to the Registering Shareholders but only to the extent that such Losses arise out of or are based upon any untrue or allegedly untrue
statement of a material fact or omission or alleged omission of a material fact that was made in the Prospectus, the Registration Statement, or any amendment or supplement thereto, in reliance upon
and in conformity with written information relating to a Registering Shareholder furnished to the Company by a Registering Shareholder expressly for use therein. In no event will the aggregate
liability of a Registering Shareholder exceed the amount of the net proceeds received by the Registering Shareholder upon the sale of the Registrable Securities giving rise to such indemnification
obligation. Such indemnity will remain in full force and 

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effect
regardless of any investigation made by or on behalf of the Company or such officer, director, employee or Controlling Person, and will survive the transfer of such securities by the
Registering Shareholder. 

        4.3    Contribution.    If the indemnification provided for in Sections 4.1 or 4.2 is unavailable to an indemnified
party, then each applicable indemnifying party, in lieu of indemnifying such indemnified party, will have a joint and several obligation to contribute to the amount paid or payable by such indemnified
party as a result of such Losses. Such contribution will be in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and such indemnified party,
on the other hand, in connection with the actions, statements or omissions that resulted in such Losses, as well as any other relevant equitable considerations. The relative fault of such indemnifying
party, on the one hand, and indemnified party, on the other hand, will be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a material fact, has been taken or made by, or relates to information supplied by, such indemnifying party or indemnified party,
and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent any such action, statement or omission. The amount paid or payable by a party as a result of
any such Losses will be deemed to include any investigation, legal or other fees or expenses incurred by such party in connection with any investigation or proceeding, to the extent such party would
have been indemnified for such expenses if the indemnification provided for in Sections 4.1 or
4.2 was available to such party. If, however, the allocation provided above is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such
indemnified party in such proportion as is appropriate to reflect not only such relative faults but also the relative benefits of the indemnifying party and the indemnified party as well as any other
relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 4.3 were to be determined by pro rata allocation or
by any other method of allocation which does not take account of the equitable considerations referred to in the preceding sentences of this Section 4.3. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. 

        4.4    Conduct of Indemnification Proceedings.    Any Person entitled to indemnification hereunder will
(a) give prompt notice to the indemnifying party of any claim with respect to which it seeks indemnification, and (b) permit such indemnifying party to assume the defense of such claim
with counsel reasonably satisfactory to the indemnified party; provided that the failure to give such notice shall not relieve an indemnifying party of liability except to the extent it has been
prejudiced as a result. Any Person entitled to indemnification hereunder shall have the right to employ separate counsel and to participate in (but not control) the defense of such claim, but the fees
and expenses of such counsel will be at the expense of such Person and not of the indemnifying party unless (x) the indemnifying party has agreed to pay such fees or expenses, (y) the
indemnifying party has failed to assume the defense of such claim and employ counsel reasonably satisfactory to such Person within a reasonable period of time 

12

 

pursuant
to this Agreement, or (z) a conflict of interest exists between such Person and the indemnifying party with respect to such claims that would make such separate representation required
under applicable ethical rules. In the case of clause (z) above, if the Person notifies the indemnifying party in writing that such Person elects to employ separate counsel at the expense of
the indemnifying party, the indemnifying party shall not have the right to assume the defense of such claim on behalf of such Person. If such defense is not assumed by the indemnifying party, the
indemnifying party shall not be subject to any liability for any settlement made without its consent (but such consent shall not be unreasonably withheld). No indemnified party will be required to
consent to entry of any judgment or enter into any settlement that does not include as an unconditional term the giving of a release, by all claimants or plaintiffs, to such indemnified party from all
liability with respect to such claim or litigation. Any indemnifying party who is not entitled to, or elects not to, assume the defense of a claim will not be obligated to pay the fees and expenses of
more than one counsel (other than required local counsel) for all parties indemnified by such indemnifying party with respect to such claim. 

 
 

ARTICLE V
  OTHER AGREEMENTS    
  

        5.1    Restrictions on Public Sale by the Shareholders.    If requested by the managing underwriter(s) of an
underwritten public offering, the Shareholders will not effect any public sale or distribution of securities of the same class (or securities exchangeable or exercisable for or convertible into
securities of the same class) as the securities included in such offering (including, but not limited to, a sale pursuant to Rule 144 of the Securities Act) during the 10-day period
prior to and the 180-day period (or shorter period requested by the underwriter) beginning on the effective date of, such offering. 

        5.2    Rule 144.    The Company shall file, on a timely basis, all reports required to be filed by it under the
Securities Act and the Exchange Act, and will take such further action and provide such documents as the Shareholders may reasonably request, all to the extent required from time to time to enable the
Shareholders to sell Registrable Securities without registration under the Securities Act within the limitation of the conditions provided by (i) Rule 144 under the Securities Act, as
such rule may be amended from time to time, or (ii) any similar rule or regulation hereafter adopted by the Commission. Upon the request of a Shareholder, the Company will deliver to the
Shareholder a statement verifying that it has complied with such information and requirements. 

 
 

ARTICLE VI
  MISCELLANEOUS    
  

        6.1    Amendments; Waivers.    This Agreement may not be amended, changed, supplemented, waived or otherwise modified
or terminated, except upon the execution and delivery of a written agreement executed by the parties hereto. 

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        6.2    Entire Agreement.    This Agreement constitutes the entire agreement between the parties hereto pertaining to
its subject matter, and supersedes and replaces all prior agreements and understandings of the parties in connection with such subject matter. 

        6.3    Notices.    All notices and other communications hereunder shall be given in writing and delivered personally,
by registered or certified mail (postage prepaid, return receipt requested), by overnight courier (postage prepaid), facsimile transmission or similar means, to the party to receive such notices or
communications at the address set forth below (or such other address as shall from time to time be designated by such party to the other parties in accordance with this Section 6.3): 

	 	 	If to the Company, to:

Comverse Infosys, Inc.

234 Crossways Park Drive

Woodbury, New York 11797

Facsimile: (516) 677-7399

Attention: President and Chief

                  Executive Officer	 	 
	

 	
 	

If to Comverse, to:

Comverse Infosys, Inc.

170 Crossways Park Drive

Woodbury, New York 11797

Facsimile: (516) 677-7355

Attention: Senior Counsel	
 	

 

All
such notices and communications hereunder shall be deemed given when received, as evidenced by the signed acknowledgment of receipt of the person to whom such notice or communication shall have
been personally delivered, the acknowledgment of receipt returned to the sender by the applicable postal authorities, the confirmation of delivery rendered by the applicable overnight courier service,
or the confirmation of a successful facsimile transmission of such notice or communication. A copy of any notice or other communication given by any party to any other party hereto, with reference to
this Agreement, shall be given at the same time to the other parties to this Agreement. 

        6.4    GOVERNING LAW.    THE PARTIES HERETO AGREE THAT THIS AGREEMENT, AND THE RESPECTIVE RIGHTS, DUTIES AND
OBLIGATIONS OF THE PARTIES HEREUNDER, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICTS OF LAW THEREUNDER. 

        6.5    Assignment.    No Shareholder shall be permitted assign any of its rights or obligations hereunder by operation
of law or otherwise without the prior written consent of the Company; provided, that a Shareholder may assign any of its rights or obligations hereunder to any Affiliate of such Shareholder that
acquires Registrable 

14

 

Securities
without obtaining the prior written consent of the Company, provided that such Affiliate agrees in writing to be bound by the provisions of this Agreement that are applicable to such
Shareholder as if such Affiliate was an original party hereto; provided, further, however, that
notwithstanding any such assignment such Shareholder shall continue to be liable for the performance of all obligations of such Shareholder and those of its assignee hereunder. 

        6.6    Severability.    Whenever possible, each provision or portion of any provision of this Agreement will be
interpreted in such manner as to be effective and valid under applicable law. If any provision or portion of any provision of this Agreement is held to be invalid, illegal or unenforceable in any
respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or portion of any provision in such jurisdiction, and
this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any provision had never been contained herein. 

        6.7    No Waiver.    The failure of any party hereto to exercise any right, power or remedy provided under this
Agreement or otherwise available in respect hereof at law or in equity, or to insist upon compliance by any other party hereto with its obligations hereunder, and any custom or practice of the parties
at variance with the terms hereof, shall not constitute a waiver by such party of its right to exercise any such or other right, power or remedy or to demand such compliance. 

        6.8    No Third Party Beneficiaries.    This Agreement is not intended to be for the benefit of, and shall not be
enforceable by, any Person who or which is not a party hereto. 

        6.9    Headings.    The Section headings in this Agreement are for convenience of reference only and are not intended
to be a part of this Agreement or to affect the meaning or interpretation of this Agreement. 

        6.10    Counterparts.    This Agreement may be executed in one or more counterparts, all of which taken together shall
constitute one agreement. 

[SIGNATURE
PAGE FOLLOWS] 

15

 

        IN
WITNESS WHEREOF, the parties hereto have executed this Registration Rights Agreement as of the date first set forth above. 

	 	 	COMVERSE INFOSYS, INC.
	

 	
 	

By:	
 	

/s/  DAN BODNER      
 Name: Dan Bodner

Title:  President and Chief Executive Officer
	

 	
 	
COMVERSE TECHNOLOGY, INC.
	

 	
 	

By:	
 	

/s/  DAVID KREINBERG      
 Name: David Kreinberg

Title:  Chief Financial Officer

16

QuickLinks

REGISTRATION RIGHTS AGREEMENT

W I T N E S S E T H

ARTICLE I DEFINITIONS

ARTICLE II REGISTRATION RIGHTS

ARTICLE III REGISTRATION PROCEDURES

ARTICLE IV INDEMNIFICATION

ARTICLE V OTHER AGREEMENTS

ARTICLE VI MISCELLANEOUSQuickLinks
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Exhibit 10.5  

 
 

CONTRIBUTION AGREEMENT    
  

        THIS CONTRIBUTION AGREEMENT, dated as of February 1, 2001 (the "Agreement"), by and between Comverse
Infosys, Inc., a Delaware corporation ("Infosys") and Comverse Technology, Inc., a New York corporation
("Comverse"). 

W I T N E S S E T H:  

        WHEREAS, Comverse owns the outstanding share of capital stock of Comverse GmbH, a company organized under the laws of the Federal Republic of Germany
("Holdco", and such share is referred to herein as the "Holdco Share"); and 

        WHEREAS,
Holdco (i) has a 99.8% partnership interest in Syborg Informationsysteme beschränkt haftende OHG, a general partnership organized under the laws of the
Federal Republic of Germany ("Syborg", and such partnership interest is referred to herein as the "Syborg
Interest") and (ii) owns the outstanding share of capital stock of Comverse Grundbesitz GmbH, a company organized under the laws of the Federal Republic of Germany
("Grundbesitz", and such share is referred to herein as the "Grundbesitz Share"); and 

        WHEREAS,
Comverse is the holder of all the outstanding shares of capital stock of Loronix Information Systems, Inc., a Nevada corporation
("Loronix", and such shares are referred to herein as the "Loronix Shares"); and 

        WHEREAS,
Comverse desires to contribute the Holdco Share and the Loronix Shares (together, the "Transaction Shares") to Infosys in
exchange for the issuance by Infosys to Comverse of 34,539,905 shares of the common stock, par value $.001 ("Common Stock"), of Infosys; and 

        WHEREAS,
Comverse and Infosys intend that the contribution of the Transaction Shares to Infosys in exchange for the Infosys Shares (as defined below) qualify as a tax-free
exchange pursuant to Section 351(a) of the Code (as defined below); and 

        WHEREAS,
effective from February 1, 2001 Infosys has been treating each of Holdco, Syborg, Grundbesitz and Loronix as a subsidiary of Infosys. 

        NOW,
THEREFORE, in consideration of the foregoing and the representations, warranties, covenants and agreements herein contained, the parties hereto agree as follows: 

 
 

ARTICLE I
  DEFINITIONS    
  

        1.1    Definitions.    For purposes of this Agreement, the following terms shall have the meanings set forth below: 

        "Acquired Companies" shall mean each of Holdco, Syborg, Grundbesitz, Loronix and their respective Subsidiaries. 

        "Affiliate" shall mean, with respect to any Person, any other Person directly or indirectly controlling, controlled by or under common
control with such Person. 

        "Business Day" shall mean a day other than a Saturday, Sunday or other day on which commercial banks in New York City are authorized or
required by law to close. 

        "Code" shall mean the United States Internal Revenue Code of 1986, as amended. 

        "Documentation" shall mean technical documentation (design specifications, functional requirements, operating instructions, logic manuals,
flow charts, etc.), user documentation (installation guides, user manuals, training materials, release notes, working papers, etc.), marketing documentation (sales brochures, flyers, pamphlets, web
pages, etc.), and other written materials. 

 

        "Encumbrances" shall mean any and all mortgages, security interests, liens, claims, pledges, restrictions (including restrictions on
transfer), leases, title exceptions, easements, rights of way, rights of first refusal, charges or other encumbrances. 

        "Environmental Laws" means all applicable laws, regulations and rules of governmental authorities concerning pollution or protection of
the environment. 

        "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as amended, and the applicable regulations promulgated thereunder. 

        "ERISA Affiliate" shall mean any corporation or trade or business (whether or not incorporated) which is or has ever been treated as a
single employer with or which is or has been under common control with any of the Acquired Companies within the meaning of Section 4001(b) of ERISA or Section 414(b), (c), (m) or
(o) of the Code. 

        "GAAP" shall mean generally accepted accounting principles in effect in the United States of America as of the date of the applicable
determination. 

        "Hardware" shall mean any and all computer and computer-related hardware, including computers, file servers, facsimile servers, scanners,
readers, verifiers, color printers, laser printers and networks. 

        "Hazardous Substance" shall mean any substance, material or waste classified as hazardous, toxic, pollutant, contaminant or words of
similar meaning under any provision of Environmental Laws. 

        "Indebtedness" shall mean, with respect to any Person, any indebtedness, whether secured or unsecured, of such Person and shall also
include, to the extent not otherwise included, (i) any capitalized lease obligations of such Person and (ii) the face value of guaranties of obligations of other Persons which
would be included within this definition for such other Persons (whether or not such items would appear upon the balance sheet of the guarantor). 

        "Intellectual Property" means (a) patents, utility models, and patent applications, including reissues, continuations,
continuations-in-part, divisions, revisions, extensions, and reexaminations, (b) trademarks, domain names, service marks, trade dress, logos, trade names, and corporate
names, including all goodwill associated therewith, and all applications, registrations and renewals thereof, (c) copyrights, and all applications, registrations and renewals thereof,
(d) mask works and all applications, registrations and renewals thereof, and (e) trade secrets or similar rights in proprietary confidential information (including ideas, technology,
research and development, know-how, formulas, compositions, manufacturing and production processes and techniques, technical data, designs, drawings and specifications). 

        "IRS" shall mean the United States Internal Revenue Service. 

        "Legal Proceedings" shall mean any judicial, administrative or arbitral actions, suits, proceedings (public or private) or governmental
proceedings. 

        "Liability" means any liability (whether known or unknown, whether asserted or unasserted, whether absolute or contingent, whether accrued
or unaccrued, whether liquidated or unliquidated, and whether due or to become due), including any liability for Taxes. 

        "Modification" shall mean, with respect to any item, any modification, translation, conversion, compilation, upgrade or other derivative
version of, or change or addition to, such item. "Modified" and "Modify" shall have corollary meanings. 

        "Ordinary Course of Business" means the ordinary course of business consistent with past custom and practice. 

        "Person" shall mean an individual, corporation, limited liability company, partnership, trust or unincorporated organization or a
government or any agency or political subdivision thereof. 

2

 

        "Products" shall mean any and all Hardware and/or Software developed, marketed or sold by any of the Acquired Companies, and existing
Modifications associated therewith. 

        "Securities Act" shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. 

        "Software" shall mean any and all computer software, including, where applicable, source code, object code, screens, user interfaces,
report formats, firmware, development tools, templates, menus, buttons and icons, and all materials, manuals, design notes, flow charts, algorithms, data, design specifications and other documentation
related thereto or associated therewith. 

        "Subsidiary" shall mean, with respect to any Person, (i) each corporation, partnership, joint venture or other legal entity of
which such Person owns, either directly or indirectly, more than 50% of the stock or other equity interests the holders of which are generally entitled to vote for the election of the board of
directors or similar governing body of such corporation, partnership, joint venture or other legal entity, (ii) each partnership in which such Person or another Subsidiary of such Person is the
general or managing partner and (iii) each limited liability company in which such Person or another Subsidiary of such Person is the managing member or otherwise controls (by contract, through
ownership of membership interests or otherwise). 

        "Tax" or "Taxes" shall mean all taxes, charges, fees, imposts, levies or other assessments
by any governmental authority, including all net income, gross receipts, capital, sales, use, ad valorem, value added, transfer, franchise, profits, inventory, capital stock, license, withholding,
payroll, employment, social security, unemployment, excise, severance, stamp, occupation, property and estimated taxes, customs duties, fees, assessments and charges of any kind whatsoever, together
with any interest and any penalties, fines, additions to tax or additional amounts imposed by any taxing authority (domestic or foreign) and shall include any liability in respect of Taxes as a
transferee or as an indemnitor, guarantor, surety or in a similar capacity under any contract, arrangement, agreement, understanding or commitment (whether oral or written). 

        "Technology" shall mean, collectively, all designs, formulas, algorithms, procedures, methods, techniques, ideas, know-how,
research and development, technical data, Software, programs, subroutines, tools, materials, specifications, processes, inventions (whether patentable or unpatentable and whether or not reduced to
practice), apparatus, creations, improvements, works of authorship and other similar materials, and all recordings, graphs, drawings, reports, analyses, and other writings, and other tangible
embodiments of the foregoing, in any form whether or not specifically listed herein, and all related technology, that are used in, incorporated in, embodied in, displayed by or relate to, or are used
or useful in the design, development, reproduction, maintenance or modification of, any of the Products. 

        "Third Party" shall mean any Person other than Comverse, Infosys and each of the Acquired Companies. 

        1.2    Other Definition Provisions.    (a) 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 provision of this Agreement. 

        (b)  Terms
defined in the singular shall have a comparable meaning when used in the plural, and vice versa. 

        (c)  The
terms "dollars" and "$" shall mean United States dollars. 

        (d)  The
term "including" shall be deemed to be immediately followed by the term "but not limited to." 

3

 

 
 

ARTICLE II
  CONTRIBUTION TRANSACTION    
  

        2.1    Contribution of Transaction Shares.    Subject to the terms set forth in this Agreement, at the Closing (as
defined in Section 2.2 below) Comverse shall contribute to Infosys the Transaction Shares, free and clear of all Encumbrances; provided, however,  that the actual transfer of the Holdco Share from
Comverse to Infosys shall be effected within twelve (12) months after the Closing in the manner contemplated in
Section 2.2 below. The consideration for the Transaction Shares contributed by Comverse hereunder shall be 34,539,905 shares of Common Stock of Infosys (the "Infosys Shares") which shall be
issued by Infosys to Comverse at the Closing. 

        2.2    Closing, Delivery and Payment.    The closing of the transactions contemplated hereby (the
"Closing") will take place on the date hereof, at the offices of Comverse at 909 Third Avenue, New York, NY 10022 or such other date and place as
mutually agreed upon in writing by the parties hereto. Subject to the terms and conditions hereof, at the Closing Comverse shall deliver to Infosys certificates representing the Loronix Shares
contributed by Comverse pursuant to Section 2.1 hereof, registered in the name of Comverse, together with stock powers executed in blank by Comverse and Infosys shall deliver to Comverse one or
more certificates representing the Infosys Shares. With regard to the Holdco Share, within twelve (12) months after the Closing Comverse shall deliver to Infosys a notarized deed of transfer,
substantially in the form attached hereto as Exhibit 2.2, duly executed by Comverse in the presence of a qualified notary public in the Federal Republic of Germany, transferring the Holdco
Share from Comverse to Infosys. The parties acknowledge and agree that the Transaction Shares and the Infosys Shares will not be registered under the Securities Act and, accordingly, certificates
representing such securities will contain legends to that effect. 

        2.3    Transfer of Ownership; Formal Legal Title.    It is the intention of the parties that (i) all of the
burdens, benefits and incidents of ownership of the Loronix Shares be absolutely and unconditionally transferred from Comverse to Infosys as of the date hereof and (ii) all of the burdens,
benefits and incidents of ownership of the Holdco Share be absolutely and unconditionally transferred from Comverse to Infosys within twelve (12) months after the Closing with economic effect
as if such transfer had occurred on the date hereof and with Infosys having the right to participate in the profits and losses of Holdco as of and from the date hereof. It is the further intention of
the parties that the issuance of the Infosys Shares in consideration for the Transaction Shares be made as of the date hereof. 

 
 

ARTICLE III
  REPRESENTATIONS AND WARRANTIES OF COMVERSE    
  

        Comverse makes the following representations and warranties to Infosys: 

        3.1    Corporate Existence.    Comverse and each of the Acquired Companies is a corporation, or in the case of Syborg
a general partnership, duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation, with all requisite power and authority to enable it to own, lease and
operate its assets and properties and to conduct its business as currently being conducted, and is qualified and in good standing to do business in each jurisdiction in which the nature of the
business conducted by it or the character or location of the properties owned or leased by it requires such qualification, except where the failure to be so qualified and in good standing does not and
would not reasonably be expected to have, individually or in the aggregate, a material adverse effect on Comverse or such Acquired Company, as applicable. 

        3.2    Corporate Power; Authorization; Enforceable Obligations.    Comverse has all requisite corporate power and
authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby have been duly authorized by all requisite 

4

 

corporate action on the part of Comverse. This Agreement has been duly executed and delivered by Comverse, and constitutes the legal, valid and binding obligation of Comverse, and is enforceable
against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors' rights generally and to
general principles of equity. 

        3.3    Capitalization.    

        (a)    Holdco.    As of the date hereof, the authorized capital stock of Holdco amounts to Euro 25,000, represented by
one share with the nominal amount of Euro 25,000, which is validly issued and fully paid and not held in the treasury of Holdco. Other than the Holdco Share being contributed hereunder to Infosys, no
shares of the capital stock of Holdco are issued or outstanding, or reserved for any purpose. There are no options, warrants, convertible or exchangeable securities or other rights (including
pre-emptive, tag-along, right of first refusal, buy-sell, repurchase, redemption, registration or similar rights), agreements, arrangements or commitments of any
character to which Holdco or Comverse is a party relating to the issued or unissued capital stock of Holdco or obligating or which could obligate Holdco to grant, issue or sell, or obligating or which
could obligate Comverse to sell, transfer or otherwise dispose of, any shares of capital stock of Holdco to any Person other than Infosys. Holdco has no outstanding bonds, debentures, notes or other
obligations the holders of which have the right to vote or that are convertible into or exercisable for securities having the right to vote with the stockholders of Holdco on any matter. There are no
voting trusts, stockholders' agreements or other agreements or understandings with respect to the voting of Holdco capital stock. 

        (b)    Syborg.    As of the date hereof, Holdco holds a partnership interest in Syborg with a capital interest
(fester Kapitalanteil) in the amount of Euro 53,900 and Grundbesitz holds a partnership interest in Syborg with a capital interest
(fester Kapitalanteil) in the amount of Euro 100. Other than those two partnership interests, no other partnership interests in Syborg exist. There are
no options, warrants, convertible or exchangeable securities or other rights (including pre-emptive, tag-along, right of first refusal, buy-sell, repurchase,
redemption, registration or similar rights), agreements, arrangements or commitments of any character to which Syborg, Holdco, Grundbesitz or Comverse is a party relating to the capital interest of
Syborg or obligating or which could obligate Syborg to grant, issue or sell, or obligating or which could obligate Holdco, Grundbesitz or Comverse to sell, transfer or otherwise dispose of, any
partnership interest of Syborg to any Person other than Holdco or Grundbesitz. Syborg has no outstanding bonds, debentures, notes or other obligations the holders of which have the right to vote or
that are convertible into or exercisable for securities having the right to vote with the partners of Syborg on any matter. 

        (c)    Grundbesitz.    As of the date hereof, the authorized capital stock of Grundbesitz amounts to Euro 25,000,
represented by one share with the nominal amount of Euro 25,000, which is validly issued and fully paid and not held in the treasury of Grundbesitz. Other than the Grundbesitz Share held of record and
owned beneficially by Holdco, no shares of the capital stock of Grundbesitz are issued or outstanding, or reserved for any purpose. There are no options, warrants, convertible or exchangeable
securities or other rights (including pre-emptive, tag-along, right of first refusal, buy-sell, repurchase, redemption, registration or similar rights), agreements,
arrangements or commitments of any character to which Grundbesitz, Holdco or Comverse is a party relating to the issued or unissued capital stock of Grundbesitz or obligating or which could obligate
Grundbesitz to grant, issue or sell, or obligating or which could obligate Holdco or Comverse to sell, transfer or otherwise dispose of, any shares of capital stock of Grundbesitz to any Person other
than Holdco. Grundbesitz has no outstanding bonds, debentures, notes or other obligations the holders of which have the right to vote or that are convertible into or exercisable for securities having
the right to vote with the stockholders of Grundbesitz on any matter. There are no voting trusts, stockholders' agreements or other agreements or understandings with respect to the voting of
Grundbesitz capital stock. 

5

 

        (d)    Loronix.    As of the date hereof, the authorized capital stock of Loronix consists of (i) 22,000,000
shares of common stock, par value $.01 per share of which 5,181,313 shares are issued and outstanding, all of which are validly issued, fully paid and nonassessable and none of which are held in the
treasury of Loronix, and (ii) 2,000,000 shares of preferred stock, par value $.001 per share, no shares of which are outstanding. Other than the Loronix Shares being contributed hereunder to
Infosys, no shares of the capital stock of Loronix are issued or outstanding, or reserved for any purpose. There are no options, warrants, convertible or exchangeable securities or other rights
(including pre-emptive, tag-along, right of first refusal, buy-sell, repurchase, redemption, registration or similar rights), agreements, arrangements or
commitments of any character to which Loronix or Comverse is a party relating to the issued or unissued capital stock of Loronix or obligating or which could obligate Loronix to grant, issue or sell,
or obligating or which could obligate Comverse to sell, transfer or otherwise dispose of, any shares of capital stock of Loronix to any Person other than Infosys. Loronix has no outstanding bonds,
debentures, notes or other obligations the holders of which have the right to vote or that are convertible into or exercisable for securities having the right to vote with the stockholders of Loronix
on any matter. There are no voting trusts, stockholders' agreements or other agreements or understandings with respect to the voting of Loronix capital stock. 

        3.4    Ownership of Transaction Shares.    (a) Comverse holds of record and owns beneficially all of the
Transaction Shares, free and clear of any Encumbrances (other than any restrictions under the Securities Act and state securities laws). The Transaction Shares have not been issued in violation of any
pre-emptive rights created by statute, the certificate of incorporation, by-laws or other organizational document of Holdco or Loronix, as applicable, or any contract to which
Holdco or Loronix is a party or by which it is bound. 

        (b)  Holdco
holds of record and owns beneficially the Syborg Interest and the Grundbesitz Share, in each case free and clear of any Encumbrances (other than any restrictions
under the Securities Act and state securities laws). The Syborg Interest and the Grundbesitz Share have not been issued in violation of any pre-emptive rights created by statute, the
certificate of incorporation, by-laws or other organizational document of Syborg or Grundbesitz, respectively, or any contract to which Syborg or Grundbesitz is a party or by which it is
bound. 

        3.5    No Conflicts.    The execution and delivery of this Agreement by Comverse does not, and the consummation by
Comverse of the transactions contemplated hereby do not, conflict with, or result in any violation of or default (with or without notice or lapse of time, or both) under, or give rise to a right of
termination, cancellation or acceleration of any obligation or to loss of a material benefit under, or give rise to any obligation of any of the Acquired Companies to make any payment under, or to the
increased, additional, accelerated or guaranteed rights or entitlements of any Person under, or result in the creation of any Encumbrances upon the Transaction Shares, the Syborg Interest or any of
the properties or assets of any of the Acquired Companies under any provision of (i) the certificate of incorporation, bylaws or other organizational document of Comverse or any of the Acquired
Companies, (ii) any contract or permit to which Comverse or any of the Acquired Companies is a party or by which Comverse's or any of the Acquired Companies' properties or assets are bound,
(iii) any order, judgement or award of any court, governmental authority or arbitrator applicable to Comverse or any of the Acquired Companies or their respective properties or assets as of the
date hereof, or (iv) any law or regulation applicable to Comverse or any of the Acquired Companies, except in the case of clauses (ii) and (iii), such conflicts, violations and defaults,
termination, cancellation and acceleration rights and Encumbrances that, individually or in the aggregate, would not hinder or impair the
consummation of the transactions contemplated hereby or have a material adverse effect with respect to Comverse or any of the Acquired Companies. 

        3.6    Consents.    Except as described in Schedule 3.6 and except for any notices and consents of Third
Parties that have been given or obtained, no consents, approvals, licenses, permits, orders or authorizations of, or registrations, declarations, notices or filings with, any governmental authority or 

6

 

any Third Party are required to be obtained or made by or with respect to Comverse or any of the Acquired Companies in connection with the execution, delivery and performance of this Agreement or the
consummation of the transactions contemplated hereby, which, if not obtained or made, would, individually or in the aggregate, hinder or impair the consummation of the transactions contemplated hereby
or have a material adverse effect with respect to Comverse or any of the Acquired Companies. 

        3.7    Compliance; No Defaults.    Each of the Acquired Companies is in compliance in all material respects with all
material laws and regulations applicable to its business or operations, and has not received any notice or been charged with any violation of or, to its knowledge, is under investigation with respect
to compliance with, any material applicable laws and regulations. Each of the Acquired Companies has all permits which are material to the operation of its business as conducted on the date hereof.
Each of the Acquired Companies is not in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a default or violation) of any term,
condition or provision of its certificate of incorporation or bylaws or other comparable organizational document. Each of the Acquired Companies is not in default or violation (and no event has
occurred which, with notice or the lapse of time or both, would constitute a default or violation) in any material respect of any term, condition or provision of any material permit issued to it, or
to which its business is subject or by which its properties or assets are bound. 

        3.8    Financial Statements; Undisclosed Liabilities.    (a) Comverse has delivered to Infosys copies of the
unaudited balance sheets for each of the Acquired Companies as at January 31, 2001, and the related unaudited statements of income and retained earnings and cash flows for each of the Acquired
Companies for the fiscal year then ended (such statements, including the related notes and schedules thereto, are referred to herein as the "Financial
Statements"). The Financial Statements of Loronix are complete and correct in all material respects, have been prepared in accordance with GAAP consistently applied throughout
the periods presented, and present fairly the financial position, results of operations, cash flows and stockholders' equity of Loronix as at the dates and for the periods indicated. The Financial
Statements of each of Holdco, Syborg and Grundbesitz are complete and correct in all material respects, have been prepared in accordance with the German commercial code
(Handelsgesetzbuch) consistently applied through the periods presented, and present fairly the financial position, results of operations, cash flows and
stockholders' equity of each of Holdco, Syborg and Grundbesitz as at the dates and for the periods indicated. 

        (b)  Except
as disclosed in the Financial Statements, or incurred in the Ordinary Course of Business since January 31, 2001 as of the date hereof each of the Acquired
Companies does not have any material Indebtedness, obligation or Liability of any kind. 

        3.9    Litigation.    There are no Legal Proceedings against or affecting any of the Acquired Companies or its
properties or assets pending or, to the knowledge of Comverse, threatened against any of the Acquired Companies. 

        3.10    Taxes.    The Acquired Companies have duly filed (or there have been filed on their behalf) all federal and
material state, local and foreign income, franchise, excise, real and personal property and other Tax returns and reports (including those filed on a consolidated, combined or unitary basis) required
to have been filed by them prior to the date hereof (taking into account extensions). All of the foregoing returns and reports are true and correct in all material respects, and the Acquired Companies
have paid, or adequately reserved for, all Taxes required to be paid in respect of all periods covered by such returns and reports. 

        3.11    Employee Benefits.    

        (a)  Comverse
has delivered to Infosys a complete and correct list of all "employee benefit plans," as defined in Section 3(3) of ERISA, and all other employee benefit
plans or other benefit arrangements, including but not limited to all employment and consulting agreements and all disability, 

7

 

severance, retention, vacation, company awards, salary continuation, sick leave, retirement, deferred compensation, bonus or other incentive compensation, stock and stock-related award, stock
purchase, stock option or other equity-based compensation, hospitalization, medical insurance, life insurance, workers' compensation and educational assistance agreements, plans, policies and
arrangements to which any of the Acquired Companies or any of its ERISA Affiliates has any obligation to or liability for (contingent or otherwise) in respect of current or former employees or
directors ("Benefit Plans"). None of the Benefit Plans is subject to Title IV of ERISA. 

        (b)  Each
of the Benefit Plans and its related trust intended to qualify under Sections 401(a) and 501(a) of the Code, respectively, have been determined by the IRS to be so
"qualified" under such Sections, and nothing has occurred with respect to the operation of any such plan which could reasonably be expected to cause the loss of such qualification or exemption or the
imposition of any material liability, penalty or tax under ERISA or the Code. 

        (c)  All
contributions and premiums required to be made by law or by the terms of any Benefit Plan or any agreement relating thereto have been timely made (without regard to
any waivers granted with respect thereto). 

        (d)  True,
correct and complete copies of the following documents (if applicable), with respect to each of the Benefit Plans, have been delivered to Infosys: (i) the
most recent plan document and related trust
documents, and all amendments thereto, (ii) the Form 5500 and attached schedules filed with the IRS for the past three years, (iii) the financial statements and actuarial
valuations for the past three years, (iv) the most recent IRS determination letter, (v) the most recent summary plan description and all related summaries of material modifications, and
(vi) a description of any non-written Benefit Plan. 

        (e)  There
are no Legal Proceedings pending or, to the knowledge of Comverse, threatened in respect of or relating to any Benefit Plan (other than routine, uncontested
benefit claims). 

        (f)    Each
of the Benefit Plans complies in all material respects, and Comverse has administered and operated each of the Benefit Plans in material compliance with, its terms
and all provisions of applicable laws and regulations. 

        (g)  With
respect to each Benefit Plan that is not subject to United States Law (a "Foreign Benefit Plan"): (i) all
employer and employee contributions to each Foreign Benefit Plan required by law or by the terms of such Foreign Benefit Plan have been made, or, if applicable, accrued in accordance with normal
accounting practices; (ii) the fair market value of the assets of each funded Foreign Benefit Plan funded through insurance or the book reserve established for any Foreign Benefit Plan,
together with any accrued contributions is sufficient to procure or provide for the accrued benefit obligations, as of the Closing, with respect to all current or former participants in such plan in
accordance with the actuarial assumptions and valuations most recently used to determine employer contributions to such plan; (iii) each Foreign Benefit Plan required to be registered has been
registered and has been maintained in good standing with applicable regulatory authorities. 

        3.12    Environmental Matters.    To the knowledge of Comverse, (i) each of the Acquired Companies possess all
permits, authorizations, and approvals required by Environmental Laws for their operations (collectively, "Environmental Permits"), and (ii) each
of the Acquired Companies is in material compliance with all Environmental Laws and Environmental Permits, except for non-compliance that could not reasonably be expected to have,
individually or in the aggregate, a material adverse effect on such Acquired Company. There are no claims or Legal Proceedings pending or, to the knowledge of Comverse, threatened against any of the
Acquired Companies alleging the violation of or non-compliance with Environmental Laws that could reasonably be expected to have, individually or in the aggregate, a material adverse
effect on such Acquired Company. Comverse is not aware of any 

8

 

facts, circumstances or conditions that could result in any of the Acquired Companies incurring material liabilities under Environmental Laws. 

        3.13    Labor; Personnel.    (a) Each of the Acquired Companies is not a party to any labor or collective
bargaining agreement and there are no labor or collective bargaining agreements that pertain to their employees. No labor organization or group of employees of any of the Acquired Companies has made a
pending demand for recognition, and within the preceding three years, there have been no representation or certification proceedings, or petitions seeking a representation proceeding, pending or, to
the knowledge of Comverse, threatened to be brought or filed with the National Labor Relations
Board or any other labor relations tribunal or authority with respect to any of the Acquired Companies. 

        (b)  There
are no (i) strikes, work stoppages, slowdowns, lockouts, arbitrations or material grievances or other labor disputes pending or, to the knowledge of
Comverse, threatened against or involving any of the Acquired Companies or (ii) unfair labor practice charges, grievances or complaints pending or, to the knowledge of Comverse, threatened by
or on behalf of any employee or group of employees of any of the Acquired Companies. 

        (c)  Hours
worked by and payments made to employees of any of the Acquired Companies have not been in material violation of the Federal Fair Labor Standards Act or any other
applicable laws and regulations dealing with such matters. 

        (d)  Each
of the Acquired Companies is in compliance in all material respects with all applicable Laws relating to equal opportunity/non-discrimination in
employment or termination of employment of labor (including leased workers and independent contractors), including all such applicable laws and regulations relating to wages, hours, collective
bargaining, employment discrimination, civil rights, safety and health, workers' compensation, pay equity and the collection and payment of withholding and/or social security taxes and similar Taxes. 

        3.14    Absence of Changes or Events.    Except as disclosed in the Financial Statements, since January 31,
2001 there has not been any event, change, occurrence or circumstance other than in the Ordinary Course of Business or that has had or could reasonably be expected to have, individually or in the
aggregate, a material adverse effect on any of the Acquired Companies. Without limiting the generality of the foregoing, since that date: 

        (a)  no
Person has accelerated, terminated, modified, or canceled any contract to which any of the Acquired Companies is a party or by which it is bound either involving more
than $250,000 or other than in the Ordinary Course of Business; 

        (b)  none
of the Acquired Companies has canceled, compromised, waived or released any right or claim (or series of related rights and claims) other than in the Ordinary
Course of Business; 

        (c)  none
of the Acquired Companies has experienced any material damage, destruction or loss (whether or not covered by insurance) to its property; and 

        (d)  none
of the Acquired Companies has entered into any legal obligation, whether written or oral, to do any of the foregoing. 

        3.15    Contracts.    Comverse has delivered to Infosys a correct and complete copy of each written contract of each
of the Acquired Companies. Each of the Acquired Companies is not, and has not received written (including by electronic mail) notice that any other party is, in default or violation in any material
respect of any term, condition or provision of any material contract to which it is a party, to which its business is subject or by which its properties or assets are bound, and no event has occurred
which, with notice or the lapse of time or both, would constitute such a default or violation by any of the Acquired Companies or would permit the termination, modification or acceleration of such
contract. 

9

 

        3.16    Real Property.    (a) None of the Acquired Companies owns any real property except that
(i) Grundbesitz owns the land and buildings registered in the land register (Grundbuch) of Oberbexbach, volume 88, page 4084 A as parcel of land
(Flur) 03 number 540/32 and no liens or encumbrances exist except as registered in the land register, and (ii) Loronix owns the facility located
at 820 Airport Road in Durango, Colorado (collectively, the "Owned Real Property"). To the knowledge of Comverse, each Acquired Company owning Owned
Real Property has good and marketable title to its Owned Real Property free and clear of any liens and encumbrances, except (i) such as set forth above, (ii) mechanics', carriers',
workmen's, repairmen's or other like liens arising or incurred in the Ordinary Course of Business, (ii) liens for real property taxes, assessments and other governmental charges which are not
due and payable or which may thereafter be paid without penalty, and (iii) other imperfections of title, liens or encumbrances which do not materially detract from the value of the Owned Real
Property subject thereto and do not materially impair the present use of such Owned Real Property. 

        (b)  Comverse
has delivered to Infosys correct and complete copies of the leases and subleases to which any of the Acquired Companies is a party. Each such lease and sublease
is legal, valid, binding, enforceable, and in full force and effect. No consent is required with respect to such lease or sublease as a result of this Agreement, and the actions contemplated by this
Agreement will not result in the change of any terms of any lease or sublease or otherwise affect the ongoing validity of such lease or sublease. 

        3.17    Intellectual Property.    

        (a)  Each
of the Acquired Companies is the sole and exclusive owner of, or has valid and continuing rights to use, sell and license, as the case may be, all Intellectual
Property, Technology and Products (the "Intellectual Property Rights") used, sold or licensed by such company in its business as presently conducted and
as currently proposed to be conducted, free and clear of all Encumbrances or obligations to others (except for the license terms of any commercial off-the-shelf Software and
any licenses of Intellectual Property, Technology and Products). 

        (b)  The
manufacturing, licensing, marketing, importation, offer for sale, sale or use of its Products in connection with its business as presently and as currently proposed
to be conducted, to the knowledge of Comverse, do not infringe, constitute an unauthorized use of, or violate any Intellectual Property right of any Person. The Intellectual Property owned by or
licensed to each of the Acquired Companies includes all of the Intellectual Property necessary to enable such company to conduct its business in the manner in which such business is currently being
conducted. 

        (c)  Except
with respect to licenses of commercial off-the-shelf Software, none of the Acquired Companies is required, obligated, or under any
liability whatsoever, to make any payments by way of royalties, fees or otherwise to any owner or licensor of, or other claimant to, any Intellectual Property, with respect to the use thereof or in
connection with the conduct of its business as currently conducted. 

        (d)  To
the knowledge of Comverse, none of the Acquired Companies has entered into any covenant not to compete or contract limiting its ability to exploit fully any of its
Intellectual Property or to transact business in any market or geographical area or with any Person. 

        (e)  Each
of the Acquired Companies has taken adequate security measures to protect the secrecy and confidentiality of all the confidential Intellectual Property and
Technology, which measures are reasonable in the industry in which such Acquired Company operates. 

        (f)    None
of the Acquired Companies as of the date hereof is the subject of any pending or, to the knowledge of Comverse, threatened Legal Proceedings which involve a claim
of infringement of, unauthorized use of, or violation of any Intellectual Property of any Person or challenging the ownership, use, validity or enforceability of any material Intellectual Property
Rights, and none of the 

10

 

Acquired Companies has received written (including by electronic mail) notice of any such threatened claim. 

        (g)  To
the knowledge of Comverse, no Person is infringing, violating, misusing or misappropriating any material Intellectual Property Rights of any of the Acquired
Companies, and no such claims have been made against any Person by any of the Acquired Companies. 

        (h)  There
are no orders, judgements or awards to which any of the Acquired Companies is a party or by which any of the Acquired Companies are bound which restrict, in any
material respect, such company's right to use any of its Intellectual Property Rights. 

        (i)    To
the knowledge of Comverse, no present or former employee of any of the Acquired Companies has any right, title, or interest, directly or indirectly, in whole or in
part, in any material Intellectual Property Rights owned or used by any of the Acquired Companies. 

        3.18    Tangible Assets.    Each of the Acquired Companies owns or has valid leases for all machinery, equipment, and
other tangible assets used in the conduct of its business as presently conducted. Each such tangible asset is free from all material defects, has been maintained in accordance with normal industry
practice, and is in good operating condition and repair (subject to normal wear and tear). The tangible assets owned or leased by each of the Acquired Companies are sufficient to conduct such
company's business as it is currently being conducted. 

        3.19    Notes and Accounts Receivable.    All notes and accounts receivable of each of the Acquired Companies are
reflected properly on its books and records, are valid receivables that have arisen in the Ordinary Course of Business, and are current and collectible in accordance with their terms at their recorded
amounts, except for any reserves for bad debts set forth on the balance sheets included in the Financial Statements as adjusted for the passage of time through date hereof, provided that no
representation or warranty is made herein that such notes and accounts receivable will be collected. 

        3.20    Powers of Attorney; Bank Accounts.    There are no outstanding powers of attorney executed on behalf of any of
the Acquired Companies. Comverse has delivered to Infosys a list of all existing bank accounts for each of the Acquired Companies. 

        3.21    Investment Representation.    Comverse understands that the Infosys Shares have not been registered under the
Securities Act, and that the Infosys Shares are being offered and sold pursuant to an exemption from registration contained in the Securities Act based in part upon Comverse's representations
contained in this Agreement. Comverse has substantial experience in evaluating and investing in securities of companies similar to Infosys, and it is capable of evaluating the merits and risks
associated with its investment in the Infosys Shares and has the capacity to protect its own interests in connection with the transactions contemplated in this Agreement. Comverse is acquiring the
Infosys Shares for its own account for investment only, and not with a view towards distribution. Comverse is an accredited investor within the meaning of Regulation D under the Securities Act. 

        Except
as expressly set forth in this Article III, Comverse makes no other representations or warranties, express or implied, to Infosys in connection with this Agreement. 

 
 

ARTICLE IV
  REPRESENTATIONS AND WARRANTIES OF INFOSYS    
  

        Infosys makes the following representations and warranties to Comverse: 

        4.1    Corporate Existence.    Infosys is a corporation duly organized, validly existing and in good standing under
the laws of the State of Delaware, with all requisite power to enable it to own, lease and operate its assets and properties and to conduct its business as currently being conducted, and is qualified
and in good standing to do business in each jurisdiction in which the nature of the business conducted by it or the character or location of the properties owned or leased by it requires such 

11

 

qualification, except where the failure to be so qualified and in good standing does not and would not reasonably be expected to have, individually or in the aggregate, a material adverse effect on
Infosys. 

        4.2    Corporate Power; Authorization; Enforceable Obligations.    Infosys has all requisite corporate power and
authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby have been duly authorized by all requisite corporate action on the part of Infosys. This Agreement has been duly executed and delivered by Infosys
and constitutes the legal, valid and binding obligation of Infosys and is enforceable against Infosys, in accordance with its terms, except as such enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditors' rights generally and general principles of equity. 

        4.3    Capitalization.    As of the date hereof, the authorized capital stock of Infosys consists of 300,000,000
shares of common stock, of which, 61,198,095 shares are issued and outstanding, all of which are validly issued, fully paid and nonassessable and none of which are held in the treasury of Infosys.
Other than as described in this Section 4.3 and except for the Infosys Stock Option Plan, no shares of the capital stock of Infosys are, issued or outstanding, or reserved for any purpose.
There are no options, warrants, convertible or exchangeable securities or other rights (including pre-emptive, tag-along, right of first refusal, buy-sell,
repurchase, redemption, registration or similar rights), agreements, arrangements or commitments of any character to which Infosys is a party relating to the issued or unissued capital stock of
Infosys or obligating or which could obligate Infosys to grant, issue or sell any shares of capital stock of Infosys. Infosys has no outstanding bonds, debentures, notes or other obligations the
holders of which have the right to vote or that are convertible into or exercisable for securities having the right to vote with the stockholders of Infosys on any matter. 

        4.4    Infosys Shares.    The Infosys Shares issued to Comverse hereunder are duly authorized, validly issued, fully
paid and nonassessable and not subject to preemptive rights created by statute, Infosys' certificate of incorporation or bylaws or any contract to which Infosys is a party or by which Infosys is
bound. 

        4.5    No Conflicts.    The execution and delivery of this Agreement by Infosys does not, and the consummation by
Infosys of the transactions contemplated hereby do not, conflict with, or result in any violation of or default (with or without notice or lapse of time, or both) under, or give rise to a right of
termination, cancellation or acceleration of any obligation or to loss of a material benefit under, or give rise to any obligation of Infosys to make any payment under, or to the increased,
additional, accelerated or guaranteed rights or entitlements of any Person under, or result in the creation of any Encumbrances upon any of the properties or assets of Infosys under, any provision of
(i) the certificate of incorporation and bylaws of Infosys, (ii) any contract or permit to which Infosys is a party or by which any of its properties or assets are bound,
(iii) any order, judgement or award of any court, governmental authority or arbitrator applicable to Infosys or its properties or assets as of the date hereof, or (iv) any law or
regulation applicable to Infosys, except in the case of clauses (ii) and (iii), such conflicts, violations and defaults, termination, cancellation and acceleration rights and entitlements and
Encumbrances that, individually or in the aggregate, would not hinder or impair the consummation of the transactions contemplated hereby or have a material adverse effect with respect to Infosys. 

        4.6    Consents.    No consents, approvals, licenses, permits, orders or authorizations of, or registrations,
declarations, notices or filings with, any governmental authority or any Third Party are required to be obtained or made by or with respect to Infosys in connection with the execution, delivery and
performance of this Agreement or the consummation of the transactions contemplated hereby which, if not obtained or made, would, individually or in the aggregate, hinder or impair the consummation of
the transactions contemplated hereby or have a material adverse effect with respect to Infosys 

12

 

        4.7    Investment Representations.    Infosys understands that the Transaction Shares have not been registered under
the Securities Act, and that the Transaction Shares are being offered and sold pursuant to an exemption from registration based in part upon Infosys' representations contained in the Agreement.
Infosys has substantial experience in evaluating and investing in securities of companies similar to Holdco and Loronix, and it is capable of evaluating the merits and risks associated with its
acquisition of the Transaction Shares and has the capacity to protect its own interests in connection with the transactions contemplated in this Agreement. Infosys is acquiring the Transaction Shares
for its own account for investment only, and not with a view towards distribution. Infosys is an accredited investor within the meaning of Regulation D under the Securities Act. 

        Except
as expressly set forth in this Article IV, Infosys makes no other representations or warranties, express or implied, to Comverse in connection with this Agreement. 

 
 

ARTICLE V
  INDEMNIFICATION    
  

        5.1    Survival of Representations and Warranties.    The representations and warranties set forth in this Agreement
shall survive the Closing until the close of business on the first anniversary of the date
hereof; provided, however, that the representations and warranties set forth in Sections 3.3, 3.4, 4.3, and 4.4 shall survive the Closing indefinitely;  provided, however,
that if notice of any claim for indemnification is given before expiration of such period, then notwithstanding the expiration of
such time period, the representation and warranty applicable to such claim shall survive until, but only for purposes of, the resolution of such claim. Except with respect to claims based on fraud or
intentional or deliberate misrepresentation, from and after the date hereof the rights of the parties under this Article V shall be the exclusive remedy of the parties with respect to claims
resulting from or relating to any representation, warranty, covenant or agreement contained in this Agreement. The representations and warranties made herein by any party shall not be affected by any
examination made for or on behalf of the other party or the knowledge of any of the other party's officers, directors, employees or agents. 

        5.2    Indemnification.    (a) Subject to the provisions of Section 5.4, Comverse shall indemnify
Infosys and its directors, officers, employees, agents, successors and assigns (each, an "Infosys Indemnitee", and collectively, the
"Infosys Indemnitees") in respect of, and hold the Infosys Indemnitees harmless against, any and all damages, liabilities, judgements, fines, fees,
penalties, interest obligations, deficiencies, losses and expenses, including amounts paid in settlement, interest, court costs, reasonable costs of investigation, reasonable fees and expenses of
attorneys, accountants, financial advisors, engineers and other expenses, and other expenses of litigation (collectively, "Damages") incurred or
suffered by the Infosys Indemnitees arising out of or resulting from (i) the untruth, inaccuracy or breach of any representation or warranty of Comverse contained in this Agreement, or
(ii) any breach, nonfulfillment or failure to perform any agreement or covenant of Comverse contained in this Agreement. 

        (b)  Subject
to the provisions of Section 5.5, Infosys shall indemnify Comverse and its directors, officers, employees, agents, successors and assigns (each a
"Comverse Indemnitee", and collectively the "Comverse Indemnitees") in respect of, and hold the Comverse
Indemnitees harmless against any and all Damages incurred or suffered by the Comverse Indemnitees arising out of or resulting from (i) the untruth, inaccuracy or breach of any representation or
warranty of Infosys contained in this Agreement or (ii) any breach, nonfulfillment or failure to perform any agreement or covenant of Infosys contained in this Agreement. 

        5.3    Indemnification Procedures.    

        (a)    Third Party Claims.    If Infosys, on behalf of any Infosys Indemnitee, or Comverse, on behalf of any Comverse
Indemnitee, seeks to be indemnified pursuant to this Article V (in each case, an 

13

 

"Indemnified Party"), it shall give prompt written notification to the party against whom indemnification is sought (the
"Indemnifying Party") of the assertion of any Third Party claim or commencement of any action, suit or proceeding relating to a Third Party claim for
which indemnification pursuant to this Article V may be sought, but the failure of an Indemnified Party to give prompt notice to the Indemnifying Party shall not affect the rights of the
Indemnified Party to indemnification hereunder, except (i) as provided in Section 5.1 above and (ii) if (and then only to the extent that) the Indemnifying Party incurs additional
expenses or the Indemnifying Party is actually prejudiced by reason of such failure to give timely notice. The Indemnifying Party may, upon written notice thereof to the
Indemnified Party, assume control of the defense of such claim, action, suit or proceeding with counsel reasonably satisfactory to the Indemnified Party, provided  that the Indemnifying Party
acknowledges in writing, and in form and substance acceptable, to the Indemnified Party that any damages, fines, costs, judgements or other
liabilities that may be assessed against the Indemnitee in connection with such action, suit or proceeding constitute Damages for which the Indemnified Party shall be entitled to indemnification
pursuant to this Article V; and provided, further, that (x) Infosys shall have the right to control the defense to the extent of any claim
or demand seeking equitable relief or remedial action on the part of an Infosys Indemnitee and (y) Comverse shall have the right to control the defense to the extent of any claim or demand
seeking equitable relief or remedial action on the part of a Comverse Indemnitee. If the Indemnifying Party does not so assume control of such defense, the Indemnified Party shall control such
defense. The party not controlling such defense may participate therein at its own expense; provided that if the Indemnifying Party assumes control of
such defense and the Indemnified Party reasonably concludes that the Indemnifying Party and the Indemnified Party have a conflict of interest or different defenses available with respect to such
action, suit or proceeding, the reasonable fees and expenses of counsel to the Indemnified Party shall be considered "Damages" for purposes of this Agreement. The party controlling such defense shall
keep the other party advised of the status of such action, suit or proceeding and the defense thereof and shall consider in good faith recommendations made by the other party with respect thereto. The
Indemnified Party shall not agree to any settlement of such claim, action, suit or proceeding without the prior written consent of the Indemnifying Party. The Indemnifying Party shall not agree to any
settlement of such action, suit or proceeding without the prior written consent of the Indemnified Party, which shall not be unreasonably withheld. 

        (b)    Direct Claims.    With respect to claims other than Third Party claims, the Indemnified Party shall use
reasonable efforts promptly to notify in writing the Indemnifying Party of such claims, but the failure of the Indemnified Party so to give notice to the Indemnifying Party shall not affect the rights
of the Indemnified Party to indemnification hereunder, except (i) as provided in Section 5.1 above and (ii) if (and then only to the extent that) the Indemnifying Party incurs
additional expenses or the Indemnifying Party is actually prejudiced by reason of such failure to give timely notice. 

        5.4    Limitation on Comverse's Liability.    (a) Notwithstanding anything to the contrary contained herein,
(i) with respect to claims based on the untruth, inaccuracy or breach of any representation or warranty of Comverse contained in this Agreement, Comverse shall not be liable under
Section 5.2 hereof, until the aggregate amount of all Damages incurred or suffered with respect to all such claims hereunder exceeds $250,000, and then only to the extent that such Damages
exceed that amount, and (ii) the liability of Comverse for all claims made under this Article V shall not exceed $10,000,000 in the aggregate; provided, however,  that the liability of Comverse
with respect to the untruth, inaccuracy or breach of any representation or warranty of Comverse set forth in Sections 3.3 and 3.4 hereof shall be
limited to $58,372,439 in the aggregate. 

        (b)  Any
claim made against Comverse under this Article V may, at Comverse's election, be satisfied either in cash and/or by Comverse surrendering to Infosys such
number of Infosys Shares having a value equal in the aggregate to the final amount of such claim that is not satisfied in cash, in full satisfaction of such claim. The value of such Infosys Shares
shall equal to $1.69 per share (subject 

14

 

to adjustment for any stock split, stock dividend, stock consolidation or other recapitalization occurring after the date hereof). 

        5.5    Limitation on Infosys' Liability.    (a) Notwithstanding anything to the contrary contained herein,
(i) with respect to claims based on the untruth, inaccuracy or breach of any representation and warranty of Infosys contained in this Agreement, Infosys shall not be liable under
Section 5.2 until the aggregate amount of all Damages incurred or suffered with respect to all such claims made by the Comverse Indemnitees hereunder exceeds $250,000, and then only to the
extent that such Damages exceed that amount, and (ii) the liability of Infosys for all claims made under this Article V shall not exceed $10,000,000 in the aggregate;  provided, however, that
the liability of Infosys with respect to the untruth, inaccuracy or breach of any representation or warranty of Infosys set
forth in Sections 4.3 and 4.4 hereof shall be limited to $58,372,439 in the aggregate. 

        (b)  Any
claim made against Infosys under this Article V may, at Infosys' election, be satisfied either in cash and/or by Infosys issuing to Comverse such number of
Infosys Shares having a value equal in the aggregate to the final amount of such claim that is not satisfied in cash, in full satisfaction of such claim. The value of such Infosys Shares shall equal
to $1.69 per share (subject to adjustment for any stock split, stock dividend, stock consolidation or other recapitalization occurring after the date hereof). 

 
 

ARTICLE VI
  GENERAL PROVISIONS    
  

        6.1    Voting of Shares, and Conduct of Business, of Holdco, Syborg and Grundbesitz.    From the date hereof until the
transfer of the Holdco Share from Comverse to Infosys is completed in the manner contemplated in Section 2.2, Comverse shall (i) vote the Holdco Share, and cause Holdco to vote the
Syborg Interest and the Grundbesitz Share, only in accordance with the written instructions of Infosys, (ii) upon the request of Infosys, deliver to Infosys an irrevocable proxy appointing
Infosys as its exclusive proxy to vote the Holdco Share, and cause Holdco to deliver to Infosys irrevocable proxies appointing Infosys as its exclusive proxy to vote the Syborg Interest and the
Grunbesitz Share, in the sole and absolute discretion of Infosys, and (iii) cause each of Holdco, Syborg and Grundbesitz to carry its business only in accordance with the direction and
management of Infosys. 

        6.2    Further Assurances.    Each of the parties hereto shall execute such documents and other instruments and take
such further actions as may be reasonably required or desirable to carry out the provisions hereof and consummate and evidence the transactions contemplated hereby or, at and after the date hereof, to
evidence the consummation of the transactions contemplated by this Agreement. Upon the terms and subject to the conditions hereof, each of the parties hereto shall take or cause to be taken all
actions and to do or cause to be done all other things necessary, proper or advisable to consummate and make effective as promptly as practicable the transactions contemplated by this Agreement and to
obtain in a timely manner all necessary waivers, consents and approvals and to effect all necessary registrations and filings. 

        6.3    Announcements.    Neither Comverse nor Infosys will issue any press release or otherwise make any public
statement with respect to this Agreement and the transactions contemplated hereby without the prior written consent of the other, except as may be required by any law or regulation (including, without
limitation, pursuant to the Federal securities laws) or rules of the NASDAQ National Market, in which event the party required to make the release or announcement shall allow the other party
reasonable time, in light of the circumstances, to comment on such release or announcement in advance of such issuance. 

        6.4    Governing Law.    This Agreement shall be governed by, and construed in accordance with, the laws of the State
of New York without reference to choice of law principles, including all matters of construction, validity and performance. 

15

 

        6.5    Notices.    All notices, requests, permissions, waivers, and other communications hereunder shall be in writing
and shall be deemed to have been duly given, (a) five Business Days following sending by registered or certified mail, postage prepaid, (b) when sent if sent by facsimile during the
normal business hours of the recipient, or one Business Day after the date sent if sent by facsimile after the normal business hours of the recipient; provided  that the sending party receives written
confirmation that the facsimile has been successfully transmitted to the intended recipient, (c) when delivered, if delivered
personally to the intended recipient and (d) one Business Day following sending by overnight delivery via a national courier service, and in each case, addressed to a party at the following
address for such party: 

	 	(i)	 	If to Comverse, to:
	

 	

 	
 	

Comverse Technology, Inc.

909 Third Avenue

New York, New York 10022

Attention: General Counsel

Facsimile No.: (212) 652-6815
	

 	

(ii)	
 	

If to Infosys, to:
	

 	

 	
 	

Comverse Infosys, Inc.

170 Crossways Park Drive

Woodbury, New York 11797

Attention: Secretary

Facsimile No.: (516) 677-7399

Such
names and addresses may be changed by notice given in accordance with this Section 6.5. 

        6.6    Entire Agreement.    This Agreement (including the Schedules attached hereto, all of which are a part hereof)
contain the entire understanding of the parties hereto and thereto with respect to the subject matter contained herein and therein, supersede and cancel all prior agreements, negotiations,
correspondence, undertakings and communications of the parties, oral or written, respecting such subject matter. There are no restrictions, promises, representations, warranties, agreements or
undertakings of any party hereto with respect to the transactions contemplated by this Agreement other than those set forth herein. 

        6.7    Headings; References.    The article, section and paragraph headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. All references herein to "Articles" or "Sections" shall be deemed to be references to Articles
or Sections hereof unless otherwise indicated. 

        6.8    Counterparts.    This Agreement may be executed in multiple counterparts and each counterpart shall be deemed
to be an original, but all of which shall constitute one and the same original. 

        6.9    Parties in Interest; Assignment.    Neither this Agreement nor any of the rights, interest or obligations
hereunder shall be assigned by any of the parties hereto without the prior written consent of the other
party. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns. Except as set forth in Article V, nothing in
this Agreement, express or implied, is intended to confer upon any other Person any rights or remedies under or by reason of this Agreement. 

        6.10    Severability; Enforcement.    The invalidity of any portion hereof shall not affect the validity, force or
effect of the remaining portions hereof. If it is ever held that any restriction hereunder is too broad to permit enforcement of such restriction to its fullest extent, each party agrees that a court
of competent jurisdiction may enforce such restriction to the maximum extent permitted by law, and each 

16

 

party hereby consents and agrees that such scope may be judicially modified accordingly in any proceeding brought to enforce such restriction. 

        6.11    Specific Performance.    The parties hereto agree that the remedy at law for any breach of this Agreement will
be inadequate and that any party by whom this Agreement is enforceable shall be entitled to specific performance in addition to any other appropriate relief or remedy. Such party may, in its sole
discretion, apply to a court of competent jurisdiction for specific performance or injunctive or such other relief as such court may deem just and proper in order to enforce this Agreement or prevent
any violation hereof and, to the extent permitted by applicable law, each party waives any objection to the imposition of such relief. 

        6.12    Jurisdiction.    Each party to this Agreement hereby irrevocably agrees that any legal action, suit or
proceeding arising out of or relating to this Agreement, shall be brought in the United States District Court for the Southern District of New York or the Supreme Court of the State of New York and
each party hereto agrees not to assert, by way of motion, as a defense or otherwise, in any such action, suit or proceeding any claim that it is not subject personally to the jurisdiction of such
court, that the action, suit or proceeding is brought in an inconvenient forum, that the venue of the action, suit or proceeding is improper or that this Agreement, or the subject matter hereof or
thereof may not be enforced in or by such court. Each party hereto further and irrevocably submits to the jurisdiction of such court in any action, suit or proceeding. 

        6.13    Waiver.    Failure at any time to enforce or require performance of any of the provisions hereof shall in no
way be construed to be a waiver of such provision or to affect the validity of this Agreement or any part thereof or the right of either party thereafter to enforce each provision in accordance with
the terms of this Agreement. 

        6.14    Broker Fees.    Each party hereto represents and warrants that no agent, broker, investment banker, person or
firm acting on behalf of or under the authority of such party hereto is or will be entitled to any broker's or finder's fee or any other commission directly or indirectly in connection with the
transactions contemplated herein. Each party hereto further agrees to indemnify each other party for any claims, losses or expenses incurred by such other party as a result of the representation in
this Section 6.14 being untrue. 

        6.15    Expenses.    The parties shall each bear their own expenses incurred in connection with the negotiation and
execution of this Agreement and the consummation of the transactions contemplated hereby, it being understood that in no event shall any of the Acquired Companies bear any of such costs and expenses. 

        6.16    Employee Benefits.    Following the Closing, Infosys shall, to the extent applicable, continue and maintain
the Benefit Plans applicable to the Acquired Companies' employees in effect immediately prior to the Closing. 

        6.17    Taxes.    Comverse and Infosys intend that the contribution of the Transaction Shares to Infosys in exchange
for the Infosys Shares qualify as a tax-free exchange pursuant to Section 351(a) of the Code and neither the Company nor Infosys will take any action or position inconsistent with
such intention. 

The remainder of this page is intentionally left blank  

17

 

        IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date first above written. 

	 	 	COMVERSE TECHNOLOGY, INC.
 
	

 	
 	

By:	

/s/  KOBI ALEXANDER      
 Name:  Kobi Alexander

Title:    Chairman and Chief Executive Officer
	

 	
 	
COMVERSE INFOSYS, INC.
	

 	
 	

By:	

/s/  DAN BODNER      
 Name:  Dan Bodner

Title:    President and Chief Executive Officer

18

 
Exhibit 2.2  

Deed
of Transfer 

	 	 	Convenience Translation
 
	Nr. . . . . . . . . . . . . der Urkundenrolle 2001
 Verhandelt

in Hamburg

am [        ] 2001

Vor mir,

dem unterzeichneten Notar in der Freien

und Hansestadt Hamburg Detlef

Lichtenauer

mit Amtssitz in 21073 Hamburg,

Lüneburger Tor 4,

erschienen heute	 	No. . . . . . . . . . . . . of the Notarial Deed 2001
 Done in Hamburg

this [        ] 2001

Before me,

the Notary Detlef Lichtenauer of Hamburg

with office at 21073 Hamburg, Lüneburger

Tor 4,

appeared today
	

[        ], sich ausweisend durch Vorlage seines gültigen Personalausweises Nr. [    ], handelnd nicht im eigenen Namen, sondern	
 	

[    ], proving his identity by presentation of his valid Identity Card, No. [    ], acting not in his own name and on his own behalf, but

	1.	 	aufgrund Vollmacht vom [    ] für Comverse Technology Inc., einer nach dem Recht des US-Bundesstaates New York gegründeten Gesellschaft mit Sitz in New York (im folgenden als die
"Abtretende" bezeichnet), und	 	1.	 	by virtue of a power of attorney dated [    ] in the name and on behalf of Comverse Technology, Inc., a New York corporation with its seat in the Federal State of New York (hereinafter the
"Transferor"), and
	2.	 	aufgrund Vollmacht vom [    ] für Comverse Infosys, Inc., einer nach dem Recht des US-Bundesstaates Delaware gegründeten Gesellschaft mit Sitz in [    ] (im folgenden als
die "Erwerberin" bezeichnet),	 	2.	 	by virtue of a power of attorney dated [    ] in the name and on behalf of Comverse Infosys, Inc., a Delaware corporation with its seat in [    ] (hereinafter the
"Transferee").
	Der Erschienene erklärt folgendes zu Protokoll:	 	The person appeared declared to my record the following:
	
ANTEILSABTRETUNGS-VEREINBARUNG	
 	

SHARE TRANSFER AGREEMENT
	

Vorbemerkung	
 	

Preamble
 
	

Die Abtretende ist mit einem Geschäftsanteil im Nominalbetrag von Euro 25.000 (in Worten fünfundzwanzig tausend Euro) alleinige Gesellschafterin der Comverse GmbH (im folgenden als "Gesellschaft" bezeichnet), eingetragen im Handelsregister
des Amtsgerichts Homburg/ Saar unter der Registernummer HR B 3829. Das Stammkapital der Gesellschaft war und ist voll eingezahlt.	
 	

The Transferor is the sole shareholder with a share in the nominal amount of Euro 25,000 (in words twenty five thousand Euro) of Comverse GmbH (hereinafter the "Company"), registered in the commercial register of the local court of Homburg/ Saar
under HR B 3829. The share capital of the Company was and is fully paid in.

19

 

	Mit einem nach dem Recht des US-Bundesstaates New York geschlossenen Einbringungsvertrag vom [7. Februar 2001] (im folgenden als der "Einbringungsvertrag" bezeichnet) haben sich die Abtretende und die Erwerberin geeinigt,
dass die Abtretende ihren gesamten Geschäftsanteil im Nominalbetrag von Euro 25.000 auf die Erwerberin übertragen wird. Die Parteien schliessen hierzu den folgenden Vertrag:	 	By a contribution agreement entered into under the law of the state of New York dated [1 February 2001] (hereinafter the "Contribution Agreement"), the Transferee and the Transferor agreed that the Transferee will assign
its total share with the nominal share capital of Euro 25,000 to the Transferee. Therefor, the parties enter into the following agreement:
	I.

Übertragung
 	 	I.

Assignment
	1.	 	Die Abtretende überträgt hiermit ihren gesamten Geschäftsanteil der Gesellschaft auf die Erwerberin. Die Abtretung des Geschäftsanteils soll ab dem 7. Februar 2001 wirtschaftlich wirksam werden und
erfolgt jeweils mit dem Gewinnbezugsrecht ab dem 7. Februar 2001 für alle erwirtschafteten, aber noch nicht ausgeschütteten Gewinne der Gesellschaft. Die Abtretung erfolgt mit sofortiger dinglicher Wirkung.	 	1.	 	The Transferor hereby assigns its total share in the Company to the Transferee. The assignment shall have economic effect as of 1 February 2001 with the right to participate in the profits of the Company as of 1 February
2001 which have been earned, but not yet distributed. The assignment shall have immediate in rem ("dinglich") effect.
	2.	 	Die Erwerberin nimmt die Abtretung hiermit an.	 	2.	 	The Transferee agrees to the assignment.
	
II.

Zustimmung	
 	

II.

Consent
 
	Die gemäß der Satzung der Gesellschaft erforderliche Zustimmung zur Anteilsübertragung der Gesellschafter ist hiermit erteilt.	 	The consent of the shareholders required by the articles of association of the Company to the transfer of shares is herewith given.
	
III.

Schuldrechtlicher Vertrag	
 	

 	
 	

 
	 	 	 	 	III.

Obligatory Agreement
	Die in Ziffer I.1. und I.2. erklärte Anteilsübertragung erfolgt in Erfüllung des Einbringungsvertrages.	 	The assignment of shares described in clause I.1. and I.2. is made in compliance with the Contribution Agreement.
	
IV.

Vollmachten und Salvatorische Klausel	
 	
IV.

Power of Attorney and Severance Clause
	Der Notar wird mit dem Vollzug dieser Vereinbarung beauftragt, insbesondere damit, der Gesellschaft und dem Handelsregister Anzeige von der Abtretung zu machen.	 	The Notary is mandated with the completion of this agreement, he shall particularly notify the assignment to the Company and to the commercial register.

20

 

	Sollten Bestimmungen dieser Urkunde unwirksam sein oder werden, so läßt dies die Wirksamkeit der Urkunde im übrigen unberührt. Im Wege der Auslegung, Umdeutung oder Ergänzung ist eine Regelung zu
finden, die den mit der unwirksamen Bestimmung verfolgten wirtschaftlichen Zweck im Rahmen des gesetzlichen Zulässigen erreicht, oder ihm wenigstens so nah als möglich kommt. Dies gilt sinngemäß für die Schließung
etwaiger Regelungslücken.	 	In case any provisions of this deed shall not be or become valid, the remaining parts of the deed shall remain unaffected. By means of interpretation, reinterpretation or amendment a provision shall be found that follows
the same economic purpose as the invalid provision or that approaches this purpose as far as possible. The same applies analogously in case any loophole in this agreement shall be closed.
	
V.

Kosten
 	
 	
V.

Cost
 
	Die Kosten dieser Urkunde werden von der [    ] getragen.	 	The costs of this deed shall be borne by the [    ].
	

Der Erschienene gab weiter an: Der Notar belehrte den Anwesenden, daß die Übertragung sämtlicher Geschäftsanteile an einer deutschen Gesellschaft, welche direkt oder indirekt Grundbesitz in Deutschland besitzt, Grunderwerbssteuer
auslösen kann. Die deutsche Fassung dieses Vertrages ist maßgebend.	
 	

The person appeared further stated: The notary has advised the parties that the transfer of all of the shares of a German company that directly or indirectly owns real estate in Germany may trigger real estate transfer tax. The German version of this
agreement shall prevail.
	Dieses notarielle Protokoll wurde dem Erschienenen vorgelesen, von ihm genehmigt und eigenhändig von ihm und von mir, dem Notar, wie folgt unterschrieben:	 	This notarial deed was read aloud to the appeared, approved by him and personally signed by him and by me, the Notary, as follows:

Schedule 3.6  

1. Holdco will be required to advise the commercial registrar at the local court in Germany about the change in ownership of the Holdco Share. 

2.
Since a real estate transfer tax will be payable with respect to certain lands owned by Grundbesitz, local real estate tax authorities will need to be informed of the transaction. 

3.
Syborg is a member of the Alliance for Security in Business (Bündnis für Sicherheit der Wirtschaft). Since the members
of the Alliance have agreed to inform the Alliance about changes in ownership, Syborg will need to provide such notification. 

21

  

 
 

TABLE OF CONTENTS    
  

	 
	 	 
	 	Page

	ARTICLE I	 	DEFINITIONS	 	1
	 	1.1	 	Definitions	 	1
	 	1.2	 	Other Definition Provisions	 	3
	

ARTICLE II	
 	

CONTRIBUTION TRANSACTION	
 	

4
	 	2.1	 	Contribution of Transaction Shares	 	4
	 	2.2	 	Closing, Delivery and Payment	 	4
	 	2.3	 	Transfer of Ownership; Formal Legal Title	 	4
	

ARTICLE III	
 	

REPRESENTATIONS AND WARRANTIES OF COMVERSE	
 	

4
	 	3.1	 	Corporate Existence	 	4
	 	3.2	 	Corporate Power; Authorization; Enforceable Obligations	 	4
	 	3.3	 	Capitalization	 	5
	 	3.4	 	Ownership of Transaction Shares	 	6
	 	3.5	 	No Conflicts	 	6
	 	3.6	 	Consents	 	6
	 	3.7	 	Compliance; No Defaults	 	7
	 	3.8	 	Financial Statements; Undisclosed Liabilities	 	7
	 	3.9	 	Litigation	 	7
	 	3.10	 	Taxes	 	7
	 	3.11	 	Employee Benefits	 	7
	 	3.12	 	Environmental Matters	 	8
	 	3.13	 	Labor; Personnel	 	9
	 	3.14	 	Absence of Changes or Events	 	9
	 	3.15	 	Contracts	 	9
	 	3.16	 	Real Property	 	10
	 	3.17	 	Intellectual Property	 	10
	 	3.18	 	Tangible Assets	 	11
	 	3.19	 	Notes and Accounts Receivable	 	11
	 	3.20	 	Powers of Attorney; Bank Accounts	 	11
	 	3.21	 	Investment Representation	 	11
	

ARTICLE IV	
 	

REPRESENTATIONS AND WARRANTIES OF INFOSYS	
 	

11
	 	4.1	 	Corporate Existence	 	11
	 	4.2	 	Corporate Power; Authorization; Enforceable Obligations	 	12
	 	4.3	 	Capitalization	 	12
	 	4.4	 	Infosys Shares	 	12
	 	4.5	 	No Conflicts	 	12
	 	4.6	 	Consents	 	12
	 	4.7	 	Investment Representations	 	13
	

ARTICLE V	
 	

INDEMNIFICATION	
 	

13
	 	5.1	 	Survival of Representations and Warranties	 	13
	 	5.2	 	Indemnification	 	13
	 	5.3	 	Indemnification Procedures	 	13
	 	5.4	 	Limitation on Comverse's Liability	 	14
	 	5.5	 	Limitation on Infosys' Liability	 	15
	

ARTICLE VI	
 	

GENERAL PROVISIONS	
 	

15
	 	6.1	 	Voting of Shares, and Conduct of Business, of Holdco, Syborg and Grundbesitz	 	15
	 	6.2	 	Further Assurances	 	15
	 	6.3	 	Announcements	 	15
	 	6.4	 	Governing Law	 	15
	 	6.5	 	Notices	 	16
	 	6.6	 	Entire Agreement	 	16
	 	6.7	 	Headings; References	 	16
	 	6.8	 	Counterparts	 	16
	 	6.9	 	Parties in Interest; Assignment	 	16

i

 

	 	6.10	 	Severability; Enforcement	 	16
	 	6.11	 	Specific Performance	 	17
	 	6.12	 	Jurisdiction	 	17
	 	6.13	 	Waiver	 	17
	 	6.14	 	Broker Fees	 	17
	 	6.15	 	Expenses	 	17
	 	6.16	 	Employee Benefits	 	17
	 	6.17	 	Taxes	 	17

ii

QuickLinks

CONTRIBUTION AGREEMENT

ARTICLE I DEFINITIONS

ARTICLE II CONTRIBUTION TRANSACTION

ARTICLE III REPRESENTATIONS AND WARRANTIES OF COMVERSE

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF INFOSYS

ARTICLE V INDEMNIFICATION

ARTICLE VI GENERAL PROVISIONS

TABLE OF CONTENTS

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