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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In December&amp;#160;2001, a purported class action complaint was filed against the Company&amp;#8217;s wholly
   owned subsidiary Primus Knowledge Solutions, Inc., two former officers of Primus and the
   underwriters of Primus&amp;#8217; 1999 initial public offering. The complaints are similar and allege
   violations of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934,
   primarily based on the allegation that the underwriters received undisclosed compensation in
   connection with Primus&amp;#8217; initial public offering. The litigation has been coordinated in the United
   States District Court for the Southern District of New York with claims against approximately 300
   other companies that had initial public offerings during the same general time period. The parties
   have reached a global settlement of the litigation under which insurance will pay the full amount
   of the settlement share allocated to Primus, and Primus bears no financial liability. In October
   2009, the Court issued an order granting final approval of the settlement. Certain objectors are
   appealing the final order. While the Company cannot predict the outcome of the litigation, it does
   not expect any material adverse impact to its business, or the results of its operations, from this
   matter.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In May 2009, LivePerson, Inc. (&amp;#8220;LivePerson&amp;#8221;) commenced an action in the United
   States District Court for the Southern District of New York against InstantService. In the action,
   LivePerson alleges that InstantService infringes two United States patents held by LivePerson and
   seeks injunctive relief, damages and attorneys&amp;#8217; fees. In April 2010, InstantService asserted counter-claims against LivePerson, alleging that LivePerson
   infringes one of InstantService&amp;#8217;s patents and is seeking injunctive relief, damages and attorneys
   fees. In May 2010, the Company joined the action and asserted counter claims against
   LivePerson, alleging that LivePerson infringes two of its patents and is seeking injunctive relief,
   damages and attorneys fees against LivePerson. Discovery in the LivePerson action has not yet commenced. The Company
   is investigating the claims made by LivePerson and has reached no conclusion as to the likelihood
   of an adverse outcome in the litigation, which the Company intends to contest vigorously.
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The Company&amp;#8217;s industry is characterized by the existence of a large number of patents,
   trademarks and copyrights, and by increasingly frequent litigation based on allegations of
   infringement or other violations of intellectual property rights. Some of the Company&amp;#8217;s competitors
   in the e-commerce software and services market have filed or may file patent applications covering
   aspects of their technology that they may claim the Company&amp;#8217;s technology infringes. Such
   competitors could make claims of infringement against the Company with respect to the Company&amp;#8217;s
   products and technology. Additionally, third parties who are not actively engaged in providing
   e-commerce products or services but who hold or acquire patents upon which they may allege the
   Company&amp;#8217;s current or future products or services infringe may make claims of infringement against
   the Company or the Company&amp;#8217;s customers. The Company&amp;#8217;s agreements with its customers typically
   require it to indemnify them against claims of intellectual property infringement resulting from
   their use of the Company&amp;#8217;s products and services with certain industry-standard exceptions. The Company periodically receives notices from
   customers regarding patent license inquiries they have received which may or may not implicate the
   Company&amp;#8217;s indemnity obligations, and certain of its customers are currently parties to litigation
   in which it is alleged that the patent rights of others are infringed by the Company&amp;#8217;s products or
   services. Any litigation over intellectual property rights, whether brought by the Company or by
   others, could result in the expenditure of significant financial resources and the diversion of
   management&amp;#8217;s time and efforts. In addition,
   litigation in which the Company or its customers are accused of infringement might cause
   product shipment or service delivery delays, require the Company to develop alternative technology
   or require the Company to enter into royalty or license agreements, which might not be available on
   acceptable terms, or at all. ATG could incur substantial costs in prosecuting or defending any
   intellectual property litigation. These claims, whether meritorious or not, could be time
   consuming, result in costly litigation, require expensive changes in the Company&amp;#8217;s methods of doing
   business or could require the Company to enter into costly royalty or licensing agreements, if
   available. As a result, these claims could harm the Company&amp;#8217;s business.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The ultimate outcome of any litigation is uncertain, and either unfavorable or favorable
   outcomes could have a material negative impact on the Company&amp;#8217;s financial position, results of
   operations, consolidated balance sheets and cash flows, due to defense costs, diversion of
   management resources and other factors.
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