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  SECOND AMENDMENT
TO LOAN AND SECURITY AGREEMENT
       

Date: September 28, 2007
 
This Second Amendment to Loan and Security Agreement (this "Amendment") is made
as of the above date by and between Sonic Solutions ("Borrower") and Union Bank
of California, N.A. ("Bank"), with reference to the following facts:
 
A. Borrower and Bank are parties to that certain Loan and Security Agreement
dated as of December 13, 2004, as amended from time to time, including by the
First Amendment to Loan and Security Agreement dated as of December 20, 2005
(the "Agreement"). Pursuant to the Agreement, Bank has made loans and has
extended other credit accommodations to Borrower for the purposes permitted
under the Agreement.
 
B. Borrower is currently in default of the Agreement for failing to comply with
the Leverage Ratio financial covenant set forth in Section 6.7(b) of the
Agreement for the quarter ending June 30, 2007 and for failing to comply with
the minimum Net Profit financial covenant set forth in Section 6.7(c) of the
Agreement for the quarter ending June 30, 2007 (the "Existing Defaults").
 
C. Borrower has requested that Bank amend the Agreement to (I) waive the
Existing Defaults, (ii) extend the maturity date for the Revolving Line, (ii)
extend the Revolving Maturity Date, and (iii) make certain other revisions to
the Agreement as more fully set forth herein.
 
D. Although Bank is under no obligation to do so, Bank is willing to waive the
Existing Defaults on the terms and conditions set forth in this Amendment, so
long as Borrower complies with the terms, covenants and conditions set forth in
this Amendment in a timely manner.
 
F. Bank has agreed to so amend certain provisions of the Agreement, but only to
the extent, in accordance with the terms, subject to the conditions and in
reliance upon the representations and warranties set forth below and in the
Agreement.
 
Therefore, the parties hereto agree as follows:
 
1. Amendments to the Agreement.
 
1.1 Section 1.1 of the Agreement is hereby amended by adding or revising the
following defined terms in their entirety to read as follows:
 
"Revolving Maturity Date" means March 31, 2008.
 
"Revolving Line" means a credit extension of up to Thirty Million Dollars
($30,000,000).
 
1.2 Section 6.3(b) of the Agreement is hereby amended in its entirety to read as
follows:
 
(b) within ninety (90) days after the end of Borrower's fiscal year, audited
consolidated financial statements of Borrower prepared in accordance with GAAP
(subject to year-end adjustments and the absence of footnotes), consistently
applied, together with an unqualified opinion on such financial statements of an
independent certified public accounting firm (provided that Borrower's annual
financial statements for the fiscal year ending March 31, 2007 shall be
delivered by March 31, 2008), and, copies of all reports on Forms 10-K and 10-Q
filed with the Securities and Exchange Commission within 10 Business Days of
filing;
 
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1.3 Sections 6.7(b) and (c) of the Agreement are hereby amended in their
entirety to read as follows:
 
(b) Minimum Cash. Borrower shall maintain a balance of domestic, unrestricted
cash and cash equivalents of Borrower of not less than the aggregate outstanding
amount of the Obligations.
 
(c) Minimum EBITDA. Borrower shall maintain an EBITDA of not less than: (i)
($3,200,000) for the quarter ending September 30, 2007, and (ii) $5,000,000 for
the quarter ending December 31, 2007 and each quarter thereafter.
 
1.4 Section 7.3 of the Agreement is hereby amended in its entirety to read as
follows:
 
7.3 Mergers or Acquisitions. Merge or consolidate, or permit any of its
Subsidiaries to merge or consolidate, with or into any other business
organization, or acquire, or permit any of its Subsidiaries to acquire, all or
substantially all of the capital stock or property of another Person, other than
transactions between Subsidiaries that are Guarantors.
 
1.5 Section 7.6 of the Agreement is hereby amended in its entirety to read as
follows:
 
7.6 Distributions. Pay any dividends or make any other distribution or payment
on account of or in redemption, retirement or purchase of any capital stock or
permit any of its Subsidiaries to do so except that Borrower or any of its
Subsidiaries may (1) pay dividends in capital stock, (2) repurchase the stock of
former employees pursuant to stock repurchase agreements as long as an Event of
Default does not exist prior to such repurchase or would not exist after giving
effect to such repurchase, or (3) pay any dividends to Borrower or any
Guarantor.

1.6 Exhibit D to the Agreement is hereby amended and replaced in its entirety by
Exhibit Dattached hereto.
 
2. Limited Waivers of Existing Defaults. Subject to terms and conditions set
forth herein, the Bank hereby waive its default rights with respect to the
Existing Defaults, provided, however, that this waiver applies only to the
specific instances described above and for the time periods stated, and is not a
waiver of any subsequent breach of any provision of the Agreement, nor is it a
waiver of any breach of any other provision of the Agreement. Borrower
acknowledges and agrees that the Bank is not obligated to grant this or any
other waiver. Further, the Bank reserves all of the rights, powers and remedies
available to it under the Agreement and any other contracts or instruments
executed by Borrower, including the right to cease making advances to Borrower
and to accelerate any or all of Borrower's indebtedness to the Bank if any
subsequent breach of the same provisions or any other provision of the Agreement
should occur.
 
3. Additional Provisions.
 
3.1 Affirmation of Indebtedness. Borrower affirms and admits the indebtedness
evidenced by the Agreement and the other Loan Documents. Borrower acknowledges
that it has no claims, offsets or defenses with respect to the payments of sums
due under the Agreement or the other Loan Documents. Borrower ratifies and
confirms each and all of the terms, conditions and covenants of the Agreement
and other Loan Documents as amended or modified by this Amendment and those
provisions not so amended or modified and, except as specifically amended or
modified hereby, the Loan Documents remain in full force and effect. The
execution, delivery, and performance of this Amendment shall not operate as a
waiver of, or as an amendment of, any right, power, or remedy of Bank under the
Agreement or any other Loan Document, as in effect prior to the date hereof.
Unless otherwise defined, all initially capitalized terms in this Amendment
shall be as defined in the Agreement.
 
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3.2 Representations and Warranties. Borrower represents and warrants that the
representations and warranties contained in the Agreement are true and correct
in all material respects as of the date of this Amendment, and, with the
exception of the Existing Defaults, that no Event of Default has occurred and is
continuing.
 
3.3 Effectiveness of Agreement. This Amendment shall become effective when the
Bank has received the Agreement and all other required documents, including
updated schedules and exhibits to intellectual property security agreements and
executed guaranties and security agreements from Subsidiaries of Borrower, fully
executed, all required title insurance endorsements, and sufficient funds to pay
all fees and costs associated with this Amendment.
 
3.4 Counterparts. This Amendment may be executed in counterparts, each of which
shall be deemed an original but all of which together, shall constitute one and
the same agreement.
 
3.5 Successors. This Amendment shall inure to the successors and assigns of Bank
and the permitted successors and assigns of Borrower.
 
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IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the
date first written above.
 
BORROWER:
SONIC SOLUTIONS, a California corporation

          By:  sig1 logo [sig1.jpg]      

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Name: A. CLAY LEIGHTON
Title: EVP-CFO
9/28/07
   

 
BANK:
UNION BANK OF CALIFORNIA, N.A.
 

          By:  sig2 logo [sig2.jpg]      

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Name: ALLAN B. MINER
Title: VICE PRESIDENT
9/28/07
   

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EXHIBIT D
 
COMPLIANCE CERTIFICATE
 
TO: UNION BANK OF CALIFORNIA, N.A.
 
FROM: SONIC SOLUTIONS
 
The undersigned authorized officer, on behalf of Sonic Solutions hereby
certifies that in accordance with the terms and conditions of the Loan and
Security Agreement between Borrower and Bank (as amended, the "Agreement"), (i)
Borrower is in complete compliance for the period ending ____________ with all
required covenants except as noted below and (ii) all representations and
warranties of Borrower stated in the Agreement are true and correct in all
material respects as of the date hereof. Attached herewith are the required
documents supporting the above certification. The Officer further certifies that
these are prepared in accordance with Generally Accepted Accounting Principles
(GAAP) and are consistently applied from one period to the next subject to
year-end adjustments and except as explained in an accompanying letter or
footnotes or the absence thereof.
 
Please indicate compliance status by circling Yes/No under "Complies" column.
 
Reporting Covenant
 
Required
     
Complies
                     
Quarterly financial statements
 
Quarterly within 45 days
     
Yes
 
No
                     
Annual financial statements
 
Annually within 90 days of fiscal year end
     
Yes
 
No
                     
Financial Covenant
 
Required
 
Actual
 
Complies
                     
Quick Ratio
 
0.75:1.0 to 3/31/05;
 
_______:1.00
 
Yes
 
No
     
1.0:1.0 to
                 
12/31/05,1.25:1.0
                 
thereafter
                                 
Minimum Cash
 
Greater than amount of
 
$_________
 
Yes
 
No
     
outstanding Obligations
                                 
Minimum EBITDA
 
> ($3,200,000) for FQE
 
$_________
 
Yes
 
No
     
9/30/2007; and
                 
> $5,000,000 for FQE
                 
12/31/2007 and each
                 
FQE thereafter
             

 
Comments Regarding Exceptions: See Attached
 
 

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SIGNATURE
 

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TITLE
 

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DATE
 
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AFFIRMATION OF GUARANTY
 
This AFFIRMATION OF GUARANTY is made as of September 28, 2007, by the
undersigned ("Guarantor") for the benefit of Union Bank of California. N.A.
("Bank").
 
RECITALS

 
Bank and Sonic Solutions (“Borrower”) are parties to that certain Loan and
Security Agreement dated as of December 13, 2004, as amended from time to time
(collectively, the “Loan Agreement”). Guarantor executed for the benefit of Bank
an Unconditional Guaranty dated as of even date with the Loan Agreement (the
“Guaranty”), guarantying all amounts owing by Borrower to Bank. Borrower and
Bank propose to enter into a Second Amendment to Loan and Security Agreement of
even date herewith (the “Amendment”), which amends the Loan Agreement by, among
other things, extending the term of the loan facilities provided by Bank,
waiving certain specific financial covenant violations and modifying certain
financial covenants. Bank has agreed to enter into the Amendment provided, among
other things, that Guarantor consents to the entry by Borrower into the
Amendment and related documents and agrees that the Guaranty will remain
effective.
 
AGREEMENT
 
NOW, THEREFORE, Guarantor agrees as follows:
 
1. Guarantor consents to the execution, delivery and performance by Borrower of
the Amendment and the documents and instruments executed in connection
therewith, as well as all other amendments, modifications and restatements to
the Loan Agreement.
 
2. The Guaranty is and shall remain in full force and effect with respect to all
of Borrower's Obligations (as defined in the Loan Agreement) as modified by the
Amendment and otherwise. Guarantor confirms that Guarantor has no defenses
against its obligations under the Guaranty.
 
3. Guarantor represents and warrants that the Representations and Warranties
contained in the Guaranty are true and correct as of the date of this
Affirmation. Unless otherwise defined, all capitalized terms in this Affirmation
shall be as defined in the Guaranty.
 
IN WITNESS WHEREOF, the undersigned Guarantor has executed this Affirmation of
Guaranty as of the first date above written.

             
INTERACTUAL TECHNOLOGIES, INC.,
a California corporation
            sig1 [sig1.jpg]    

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By: A. CLAY LEIGHTON     Its: CFO

 
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