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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&amp;#160;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.
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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 May&amp;#160;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&amp;#160;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&amp;#160;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. In August&amp;#160;2010, LivePerson added the Company as a defendant to the suit. 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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