Document:

Credit Agmt by and among Epicor and KeyBank NA Dated 03/30/2006

 Exhibit 10.89 
 EXECUTION COPY 
  

 CREDIT AGREEMENT 
 among 
 EPICOR SOFTWARE CORPORATION

 and 
 KEYBANK NATIONAL ASSOCIATION, 
 As Administrative Agent, 
 Sole Book Manager and 
 Letter Of Credit Issuing
Lender 
 BANK OF AMERICA, N.A., 
 As Documentation Agent 
 and 
 THE OTHER FINANCIAL 
 INSTITUTIONS PARTIES HERETO 
 Dated as of March 30, 2006 
  

 $100,000,000 Revolving Credit
Facility 
 $100,000,000 Term Loan Facility 
  

  

 KEYBANC CAPITAL MARKETS 
 As Lead Arranger 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 SECTION I    DEFINITIONS AND ACCOUNTING TERMS
	  	1
			
	             1.1.
	  	Defined Terms	  	1
			
	             1.2.
	  	Use of Certain Terms	  	25
			
	             1.3.
	  	Accounting Terms	  	25
			
	             1.4.
	  	Rounding	  	26
			
	             1.5.
	  	Exhibits and Schedules	  	26
			
	             1.6.
	  	References to Agreements and Laws	  	26
		
	 SECTION II    THE COMMITMENTS AND EXTENSIONS OF CREDIT
	  	26
			
	             2.1.
	  	Loans; Maximum Amounts	  	26
			
	             2.2.
	  	Borrowings, Conversions and Continuations of Loans	  	27
			
	             2.3.
	  	Letters of Credit	  	28
			
	             2.4.
	  	Prepayments	  	32
			
	             2.5.
	  	Reduction or Termination of Commitments	  	34
			
	             2.6.
	  	Principal and Interest	  	35
			
	             2.7.
	  	Fees	  	36
			
	             2.8.
	  	Computation of Interest and Fees	  	36
			
	             2.9.
	  	Making Payments	  	37
			
	             2.10.
	  	Funding Sources	  	38
			
	             2.11.
	  	Collateral	  	38
			
	             2.12.
	  	Additional Loan Commitments	  	38
			
	             2.13.
	  	Exchange Rates; Currency Equivalents	  	38
			
	             2.14.
	  	Additional Alternative Currencies	  	39
		
	 SECTION III    TAXES, YIELD PROTECTION AND ILLEGALITY
	  	39
			
	             3.1.
	  	Taxes	  	39
			
	             3.2.
	  	Illegality	  	40
			
	             3.3.
	  	Inability to Determine Rates	  	40
			
	             3.4.
	  	Increased Cost and Reduced Return; Capital Adequacy	  	41
			
	             3.5.
	  	Breakfunding Costs	  	42
			
	             3.6.
	  	Matters Applicable to all Requests for Compensation	  	42
			
	             3.7.
	  	Survival	  	43

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
		
	 SECTION IV    CONDITIONS PRECEDENT TO EXTENSIONS OF CREDIT
	  	43
			
	             4.1.
	  	Conditions of Initial Extension of Credit	  	43
			
	             4.2.
	  	Conditions to all Extensions of Credit	  	44
		
	 SECTION V    REPRESENTATIONS AND WARRANTIES
	  	45
			
	             5.1.
	  	Existence and Qualification; Power; Compliance with Laws	  	45
			
	             5.2.
	  	Power; Authorization; Enforceable Obligations	  	45
			
	             5.3.
	  	No Legal Bar	  	46
			
	             5.4.
	  	Financial Statements; No Material Adverse Effect	  	46
			
	             5.5.
	  	Litigation	  	46
			
	             5.6.
	  	No Default	  	47
			
	             5.7.
	  	Ownership of Property; Liens	  	47
			
	             5.8.
	  	Taxes	  	47
			
	             5.9.
	  	Margin Regulations; Investment Company Act; Public Utility Holding Company Act	  	47
			
	             5.10.
	  	ERISA Compliance	  	47
			
	             5.11.
	  	Intangible Assets	  	48
			
	             5.12.
	  	Compliance With Laws	  	48
			
	             5.13.
	  	Environmental Compliance	  	48
			
	             5.14.
	  	Insurance	  	48
			
	             5.15.
	  	Swap Obligations	  	48
			
	             5.16.
	  	Disclosure	  	49
		
	 SECTION VI    AFFIRMATIVE COVENANTS
	  	49
			
	             6.1.
	  	Financial Statements	  	49
			
	             6.2.
	  	Certificates, Notices and Other Information	  	50
			
	             6.3.
	  	Payment of Taxes	  	52
			
	             6.4.
	  	Preservation of Existence	  	52
			
	             6.5.
	  	Maintenance of Properties	  	52
			
	             6.6.
	  	Maintenance of Insurance	  	52
			
	             6.7.
	  	Compliance With Laws	  	52
			
	             6.8.
	  	Inspection Rights	  	52
			
	             6.9.
	  	Keeping of Records and Books of Account	  	53
			
	             6.10.
	  	Compliance with ERISA	  	53

  

 -ii- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
			
	             6.11.
	  	Compliance With Agreements	  	53
			
	             6.12.
	  	Stock Pledge Agreement	  	53
			
	             6.13.
	  	Material Subsidiaries	  	53
			
	             6.14.
	  	Use of Proceeds	  	54
		
	 SECTION VII    NEGATIVE COVENANTS
	  	54
			
	             7.1.
	  	Indebtedness	  	54
			
	             7.2.
	  	Liens	  	55
			
	             7.3.
	  	Fundamental Changes	  	56
			
	             7.4.
	  	Dispositions	  	57
			
	             7.5.
	  	Investments	  	57
			
	             7.6.
	  	Restricted Payments	  	58
			
	             7.7.
	  	ERISA	  	58
			
	             7.8.
	  	Change In Nature of Business	  	58
			
	             7.9.
	  	Transactions with Affiliates	  	59
			
	             7.10.
	  	Use of Proceeds	  	59
			
	             7.11.
	  	Certain Indebtedness Payments, Etc	  	59
			
	             7.12.
	  	Financial Covenants	  	60
			
	             7.13.
	  	Accounting Changes	  	61
		
	 SECTION VIII    EVENTS OF DEFAULT AND REMEDIES
	  	61
			
	             8.1.
	  	Events of Default	  	61
			
	             8.2.
	  	Certain Financial Covenant Defaults	  	63
			
	             8.3.
	  	Remedies Upon Event of Default	  	63
		
	 SECTION IX    ADMINISTRATIVE AGENT
	  	65
			
	             9.1.
	  	Appointment and Authorization of Administrative Agent	  	65
			
	             9.2.
	  	Delegation of Duties	  	65
			
	             9.3.
	  	Liability of Administrative Agent	  	65
			
	             9.4.
	  	Reliance by Administrative Agent	  	66
			
	             9.5.
	  	Notice of Default	  	66
			
	             9.6.
	  	Credit Decision; Disclosure of Information by Administrative Agent	  	67
			
	             9.7.
	  	Indemnification of Administrative Agent	  	67
			
	             9.8.
	  	Administrative Agent in Individual Capacity	  	68

  

 -iii- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
			
	             9.9.
	  	Successor Administrative Agent	  	68
			
	             9.10.
	  	Syndication Agent; Documentation Agent	  	69
		
	 SECTION X    MISCELLANEOUS
	  	69
			
	             10.1.
	  	Amendments; Consents	  	69
			
	             10.2.
	  	Transmission and Effectiveness of Communications and Signatures	  	70
			
	             10.3.
	  	Attorney Costs, Expenses and Taxes	  	71
			
	             10.4.
	  	Successor and Assigns	  	71
			
	             10.5.
	  	Set-off	  	75
			
	             10.6.
	  	Sharing of Payments	  	75
			
	             10.7.
	  	No Set-off	  	76
			
	             10.8.
	  	No Waiver; Cumulative Remedies	  	76
			
	             10.9.
	  	Usury	  	76
			
	             10.10.
	  	Counterparts	  	77
			
	             10.11.
	  	Integration	  	77
			
	             10.12.
	  	Nature of Lenders’ Obligations	  	77
			
	             10.13.
	  	Survival of Representations and Warranties	  	77
			
	             10.14.
	  	Indemnity by Borrower	  	77
			
	             10.15.
	  	Nonliability of Lender	  	78
			
	             10.16.
	  	No Third Parties Benefited	  	79
			
	             10.17.
	  	Severability	  	79
			
	             10.18.
	  	Confidentiality	  	79
			
	             10.19.
	  	Further Assurances	  	80
			
	             10.20.
	  	Headings	  	80
			
	             10.21.
	  	Time of the Essence	  	80
			
	             10.22.
	  	Foreign Lenders	  	80
			
	             10.23.
	  	Removal and Replacement of Lenders	  	81
			
	             10.24.
	  	Governing Law	  	81
			
	             10.25.
	  	Waiver of Right to Trial by Jury	  	82
			
	             10.26.
	  	Entire Agreement	  	82

  

 -iv- 

 TABLE OF CONTENTS 
 (continued) 
 Page 
 EXHIBITS 
  

	
	 EXHIBIT A – Form of Request for Extension of Credit

	 EXHIBIT B – Form of Compliance Certificate

	 EXHIBIT C- 1 – Form of Revolving Note

	 EXHIBIT C- 2 – Form of Term Note

	 EXHIBIT D – Form of Assignment and Assumption

	 EXHIBIT E – Form of Stock Pledge Agreement

	 EXHIBIT F – Form of General Security Agreement

	 EXHIBIT G – Form of Guaranty

	 EXHIBIT H – Form of Acceptance Letter

 SCHEDULES 
 SCHEDULE 2.1 – Commitments and Pro Rata Shares 
 SCHEDULE 10.2 – Offshore and Domestic Lending Offices, Addresses for Notices 
  

 -v- 

 CREDIT AGREEMENT 
 THIS CREDIT AGREEMENT (“Agreement”) is entered into as of March 30, 2006, by and among
EPICOR SOFTWARE CORPORATION, a Delaware corporation (“Borrower”), each lender from time to time party hereto (collectively, “Lenders” and individually, a
“Lender”), KEYBANK NATIONAL ASSOCIATION (as “Administrative Agent” and “Issuing Lender”), and BANK OF
AMERICA, N.A. (as “Documentation Agent”). 
 RECITAL 
 Borrower has requested that the Lenders provide (a) a revolving line of credit, and (b) a term loan facility and Lenders and Administrative
Agent are willing to do so on the terms and conditions set forth herein. 
 In consideration of the mutual covenants and agreements herein
contained, the parties hereto covenant and agree as follows: 
 SECTION I 
 DEFINITIONS AND ACCOUNTING TERMS 
 1.1. Defined Terms. As used in this Agreement, the following terms shall have the meanings set forth below: 
 “Acquisition” means any transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the acquisition of all or substantially all of the assets of
a Person, or of any line of business or any division of a Person, (b) the acquisition of in excess of 50% of the capital stock, partnership interests or equity of any Person, or otherwise causing any Person to become a Subsidiary, or (c) a
merger or consolidation or any other combination with another Person (other than a Person that is a Subsidiary); provided that such Person is in the same or related industry as Borrower. 
 “Adjusted Leverage Ratio” means, as of any date of determination, for Borrower and its Subsidiaries on a consolidated basis, the ratio
of (a) Indebtedness as of such date to (b) Consolidated EBITDA for the period of the four (4) fiscal quarters ending on, or ending most recently prior to, such date. 
 “Administrative Agent” means KeyBank National Association, in its capacity as administrative agent under any of the Loan Documents, or
any successor administrative agent. 
 “Administrative Agent’s Office” means Administrative Agent’s address and,
as appropriate, account as set forth on Schedule 10.2, or such other address or account as Administrative Agent hereafter may designate by written notice to Borrower and Lenders. 
 “Administrative Agent-Related Persons” means Administrative Agent (including any successor agent), together with its Affiliates
(including, in the case of KeyBank in its capacity as Administrative Agent, the Arranger), and the officers, directors, employees, agents and attorneys-in-fact of such Persons and Affiliates. 

			
	Credit Agreement	  	Epicor Software Corporation

  
 “Administrative Questionnaire” means an administrative questionnaire in a form supplied by the Administrative Agent. 
 “Affiliate” means any Person directly or indirectly controlling, controlled by, or under direct or indirect common control with another Person. A Person shall be deemed to be “controlled by” any other
Person if such other Person possesses, directly or indirectly, power (a) to vote 10% or more of the securities (on a fully diluted basis) having ordinary voting power for the election of directors or managing general partners; or (b) to
direct or cause the direction of the management and policies of such Person whether by contract or otherwise. 
 “Agreement”
means this Credit Agreement, as amended, restated, extended, supplemented or otherwise modified in writing from time to time. 
 “Alternative Currency” means Australian Dollars, British Pounds, Canadian Dollars, Danish Kroner, Euros, Hong Kong Dollars, Japanese Yen, New Zealand Dollars, Singapore Dollars, Swedish Kroner, Swiss Francs, Mexican Pesos
and each other lawful currency (other than Dollars) that is freely available and freely transferable and convertible into Dollars and which is approved by the Lenders in accordance with Section 2.14. 
 “Alternative Currency Sublimit” means an amount equal to the lesser of the combined Revolving Commitments and $30,000,000. The
Alternative Currency Sublimit is part of, and not in addition to, the combined Revolving Commitments. 
 “Anti-Terrorism
Order” means Executive Order No. 13224 of September 24, 2001, Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support Terrorism, 66 Fed. Reg. 49,079 (2001), as amended. 
 “Applicable Margin” means the following amounts per annum (expressed in basis points per annum), based upon the Adjusted Leverage Ratio:

  

											
	 Adjusted Leverage
 Ratio (“X”)
	  	 Revolving
 Commitment
Fee
	  	 Revolving
Offshore
Rate
 Margin
	  	 Revolving
 Base Rate
 Margin
	  	 Term Loan
 Offshore
Rate
Margin
	  	 Term Loan
Base Rate
 Margin

	 X is > 2.5
	  	45	  	265	  	80	  	250	  	90.0
	 X is > 2.0 but < 2.5
	  	40	  	240	  	55	  	250	  	90.0
	 X is > 1.5 but < 2.0
	  	35	  	215	  	30	  	250	  	90.0
	 X is > 1.0 but < 1.5
	  	30	  	180	  	0	  	250	  	90.0
	 X is > 0.5 but < 1.0
	  	25	  	155	  	0	  	250	  	90.0
	 X is < 0.5
	  	20	  	135	  	0	  	250	  	90.0

 For purposes of Borrower’s payment of interest in accordance with Section 2.6 and the commitment fee
specified in Section 2.7(a), each Applicable Margin calculated in accordance with the most recent Compliance Certificate received by Administrative Agent shall be in effect from the date such Compliance Certificate is received by Administrative
Agent to but excluding 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 the date the next Compliance
Certificate is received; provided, however, that the Applicable Margin from the Closing Date until Administrative Agent’s receipt of Borrower’s first Compliance Certificate shall be the amounts set forth above as applying when the
Adjusted Leverage Ratio is > 2.0 but < 2.5. 
 “Applicable Payment Date” means, (a) as to any
Offshore Rate Loan, the last day of the relevant Interest Period or every ninety (90) days, whichever is earlier, any date that such Loan is prepaid or converted in whole or in part and the applicable Maturity Date; and (b) as to any other
Obligations, the last Business Day of each calendar quarter and the applicable Maturity Date; provided, however, that interest accruing at the Default Rate shall be payable from time to time upon demand of Administrative Agent. 
 “Applicable Time” means California time. 
 “Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender, or (c) an entity or an Affiliate of an entity that administers or manages a
Lender. 
 “Arranger” means KeyBank, in its capacity as sole arranger and sole book manager. 
 “Asset Sale” means a sale, lease or sub-lease (as lessor or sublessor), sale and leaseback, assignment, conveyance, transfer or other
disposition to, or any exchange of property with, any Person (other than Borrower or any Guarantor), in one transaction or a series of transactions, of all or any part of Borrower or any of its Subsidiaries’ businesses, assets or properties of
any kind, whether real, personal, or mixed and whether tangible or intangible, whether now owned or hereafter acquired, including, without limitation, the Equity Securities of any Subsidiaries, other than (i) inventory or other assets
(including Cash or Cash Equivalents) sold, transferred or otherwise disposed of in the ordinary course of business consistent with past practice, (ii) sales of other assets for aggregate consideration of less than $2,000,000 with respect to any
transaction or series of related transactions and less than $5,000,000 in the aggregate during any fiscal year, and (iii) leases, subleases, licenses and sublicenses, each to the extent entered into in the ordinary course of business, and
(iv) transactions permitted by Section 7.4. 
 “Assignment and Assumption” means an Assignment and Assumption
substantially in the form of Exhibit D. 
 “Attorney Costs” means and includes all reasonable attorney’s and
other fees and disbursements of any law firm or other external counsel and the allocated cost of internal legal services and all disbursements of internal counsel. 
 “Audited Financial Statements” means the audited consolidated balance sheet, income statement and cash flows of Borrower and its Subsidiaries for each fiscal year ending December 31. 

“Base Rate” means a fluctuating rate per annum equal to the higher of (a) the Federal Funds Rate plus 1/2 of 1% and
(b) the rate of interest in effect for such day as publicly announced from time to time by KeyBank as its “prime rate.” Such prime rate is a rate set by KeyBank based upon various factors including KeyBank’s costs and
desired return, general 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 economic conditions and other factors,
and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate. Any change in such prime rate announced by KeyBank shall take effect at the opening of business on the day specified in the public
announcement of such change. If KeyBank ceases to establish or publish a prime rate, the applicable Base Rate thereafter shall be instead the prime rate reported in The Wall Street Journal (or the average prime rate if a high and a low prime
rate are therein reported). 
 “Base Rate Loan” means a Loan made in not less than the Minimum Amount pursuant to Requisite
Notice to Administrative Agent by delivering a Request for Extension of Credit not later than the Requisite Time and specified to be a Base Rate Loan or if not designated otherwise. Interest on each Base Rate Loan shall be calculated using the
Applicable Margin for the Base Rate effective as of the date of the advance of such Base Rate. 
 “Borrower” has the meaning
set forth in the introductory paragraph hereto. 
 “Borrowing” and “Borrow” each mean a borrowing of Loans
hereunder. 
 “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banks in
Cleveland, Ohio; New York, New York; San Francisco, California; or (if interest is being determined by reference to the Offshore Rate) London, England are generally authorized or obligated, by law or executive order, to close and, with respect to
advances or payments of Loans or any other matters relating to Loans denominated in an Alternative Currency, such day also shall be a day on which (i) dealings in deposits in the relevant Alternative Currency are carried on in the applicable
interbank market, and (ii) all applicable banks into which Loan proceeds may be deposited are open for business and foreign exchange markets are open for business in the principal financial center of the country of such currency. 
 “Capital Leases” means any and all leases under which certain obligations are required to be capitalized on the books of a lessee in
accordance with GAAP. 
 “Cash” or “Cash Equivalents” means assets properly classified as
“marketable securities”, “cash”, “cash equivalents” or “short term investments” under GAAP. 
 “Change of Control” means the direct or indirect acquisition by any person (as such term is used in Section 13(d) and Section 14(d)(2) of the Exchange Act, but excluding any employee benefit
plan of Borrower or its Subsidiaries, or any person or entity acting it its capacity as trustee, agent or other fiduciary or administrator of any such plan) or related persons constituting a group (as such term is used in Rule 13d-5 under the
Exchange Act), of (a) beneficial ownership of the issued and outstanding shares of voting stock or similar equity interests of a corporation or other entity, the result of which acquisition is that such person or group possesses in excess of
40% of the combined voting power of all then-issued and outstanding voting stock of such corporation or other entity, or (b) the power to elect, appoint, or cause the election or appointment of at least a majority of the members of the board of
directors of such corporation or other entity. 
 “Closing Date” means the date all the conditions precedent in
Section 4.1 are satisfied or waived in accordance with Section 4.1. 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 “Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto. 
 “Commitment” means, for each Lender, such Lender’s commitment to make Loans (and to issue or participate in Letters of Credit) in the amount set forth opposite such Lender’s name on Schedule 2.1 attached hereto,
as such amount may be reduced or adjusted from time to time in accordance with the terms of this Agreement (collectively, the “combined Commitments”). 
 “Commitment Fee” has the meaning set forth in Section 2.7(a). 
 “Compliance
Certificate” means a certificate substantially in the form of Exhibit B, properly completed and signed by a Responsible Officer of Borrower. 
 “Consolidated Cash Balance” means unrestricted Investments of the type specified in clause (a) of the definition of Ordinary Course Investments. 
 “Consolidated EBITDA” means, for any period, the sum of the following, provided that the items contained in (b)-(e) below
shall be added to (a) only to the extent they have been deducted in the calculation of Consolidated Net Income for such period and, therefore, form no part of Consolidated Net Income: 
 (a) Consolidated Net Income for such period, provided that (i) all gains and losses realized by Borrower and its Subsidiaries
upon the sale or other disposition (including, without limitation, pursuant to sale and leaseback transactions) of property or assets that are not sold or otherwise disposed of in the ordinary course of business, or pursuant to the sale of any
capital stock of Borrower or any Subsidiary, shall be excluded from such Consolidated Net Income, and (ii) all items of gain or income that are properly classified as extraordinary in accordance with GAAP or are unusual or non-recurring shall
be excluded from such Consolidated Net Income; and 
 (b) Consolidated Interest Charges for such period; and 
 (c) The amount of income tax expense to the extent deducted in determining such Consolidated Net Income; and 
 (d) The amount of depreciation and amortization expense deducted in determining such Consolidated Net Income, including any impairment of
goodwill as defined under FAS 142 and GAAP; and 
 (e) Any non-cash stock based compensation charges in such period per GAAP.

 “Consolidated Interest Charges” means, for any period, for Borrower and its Subsidiaries on a consolidated basis, the sum
of (a) all interest, premium payments, fees, charges and related expenses payable by Borrower and it Subsidiaries in connection with borrowed money (including capitalized interest) or in connection with the deferred purchase price of assets, in
each case to the extent treated as interest in accordance with GAAP, (b) the portion of rent payable by Borrower and it Subsidiaries with respect to such period under Capital Leases that is 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 treated as interest in accordance with
GAAP and (c) the portion of rent payable by Borrower and its Subsidiaries with respect to such period under a Synthetic Lease Obligation that would be treated as interest in accordance with GAAP if the Synthetic Lease Obligation were treated as
a Capital Lease under GAAP. 
 “Consolidated Net Income” means, for any period, for Borrower and its Subsidiaries on a
consolidated basis, the net income of Borrower and its Subsidiaries in accordance with GAAP. 
 “Continuation” and
“Continue” mean, with respect to any Offshore Rate Loan, the continuation of such Offshore Rate Loan as an Offshore Rate Loan on the last day of the Interest Period for such Loan. 
 “Contractual Obligation” means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or
undertaking to which such Person is a party or by which it or any of its property is bound. 
 “Conversion” and
“Convert” mean, with respect to any Loan, the conversion of such Loan from or into another type of Loan. 
 “Debtor
Relief Laws” means the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or
similar debtor relief Laws of the United States of America or other applicable jurisdictions from time to time in effect affecting the rights of creditors generally. 
 “Declining Lender” has the meaning specified in Section 2.12. 
 “Default” means any event that, with the giving of any notice, the passage of time, or both, would be an Event of Default. 
 “Default Rate” means an interest rate equal to the Base Rate plus the applicable margin specified in the definition of Applicable Margin, if any, applicable to Base Rate Loans, plus 2%
per annum; provided, however, that with respect to an Offshore Rate Loan, the Default Rate shall be an interest rate equal to the interest rate otherwise applicable to such Loan, plus the Applicable Margin specified for Offshore Rate
Loans, plus 2% per annum, in each case to the fullest extent permitted by applicable Laws. 
 “Deposit Account”
means a demand, time, savings, passbook or like account with a bank, savings and loan association, credit union or like organization, other than an account evidenced by a negotiable certificate of deposit. 
 “Deposit Account Control Agreement” means a Deposit Account Control Agreement in substantially the form of Exhibit B attached to the
General Security Agreement (or such similar agreements that Administrative Agent shall from time to time approve with respect to Deposit Accounts, investment accounts, securities accounts or other such accounts), as the same may from time to time
hereafter be amended, modified or supplemented. 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 “Disclosure
Letter” means the Disclosure Letter dated March 30, 2006 from Borrower to the Administrative Agent. 
 “Disposition” or “Dispose” means the sale, transfer, License Disposition or other disposition (including any sale and leaseback transaction) of any property by any Person, including any sale, assignment,
transfer or other disposal with or without recourse of any notes or accounts receivable or any rights and claims associated therewith. 
 “Dollar,” “USD” and “$” mean lawful money of the United States of America. 
 “Dollar Equivalent” means, with respect to any amount of any currency, the Equivalent Amount of such currency expressed in Dollars. 
 “Eligible Assignee” means (a) a financial institution organized under the laws of the United States, or any state thereof, and having a combined capital and surplus of at least USD$100,000,000;
(b) a commercial bank organized under the laws of any other country which is a member of the Organization for Economic Cooperation and Development, or a political subdivision of any such country, and having a combined capital and surplus of at
least USD$100,000,000, provided that such bank is acting through a branch or agency located in the United States; (c) a Person that is primarily engaged in the business of commercial banking and that is (i) a Subsidiary of a Lender,
(ii) a Subsidiary of a Person of which a Lender is a Subsidiary, or (iii) a Person of which a Lender is a Subsidiary; (d) another Lender; (e) any other entity which is an “accredited investor” (as defined in
Regulation D under the Securities Act of 1933, as amended) which extends credit or buys loans as one of its businesses, including but not limited to, insurance companies, mutual funds and lease financing companies; or (f) other lenders or
institutional investors consented to in writing in advance by Administrative Agent and Borrower. Neither Borrower nor any Affiliate of Borrower shall be an Eligible Assignee. 
 “Environmental Laws” means all Laws relating to environmental, health, safety and land use matters applicable to any property of
Borrower and its Subsidiaries. 
 “Equity Securities” of any Person means (a) all common stock, preferred stock,
participations, shares, partnership interests or other equity interests in such Person (regardless of how designated and whether or not voting or non-voting) and (b) all warrants, options and other rights to acquire any of the foregoing, other
than convertible debt securities which have not been converted into common stock, preferred stock, participations, shares, partnership interests or other equity interests in any such Person. 
 “Equivalent Amount” shall mean, at any time, as determined in good faith by the Administrative Agent in accordance with its customary
practices (which determination shall be conclusive absent manifest error), with respect to an amount of any currency (the “Reference Currency”) which is to be computed as an equivalent amount of another currency (the
“Equivalent Currency”): (i) if the Reference Currency and the Equivalent Currency are the same, the amount of such Reference Currency, or (ii) if the Reference Currency and the Equivalent Currency are not the same, the
amount of such Equivalent Currency converted from such Reference Currency at the Administrative Agent’s spot selling rate (based on the market rates then prevailing and available to the Administrative Agent) for the sale of such Equivalent
Currency for such Reference Currency at a time determined by the Administrative Agent on the second (2nd) Business Day immediately preceding the event for which such calculation is made. 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, or any successor Federal statute. 
 “ERISA Affiliate” means any trade or business (whether or not incorporated) under common control with Borrower within the meaning of Sections 414(b) or (c) of the Code (and Sections 414(m) and
(o) of the Code for purposes of provisions relating to Section 412 of the Code). 
 “ERISA Event” means (a) a
Reportable Event with respect to a Pension Plan; (b) a withdrawal by Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in
Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by Borrower or any ERISA Affiliate from a Multiemployer Plan or
notification that a Multiemployer Plan is in reorganization; (d) the filing with the PBGC of a notice of intent to terminate, the treatment of a Plan amendment as a termination under Sections 4041 or 4041A of ERISA, or the commencement of
proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an event or condition which might reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a
trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the imposition of any liability under Title N of ERISA, other than PBGC premiums due but not delinquent under Section 4007 of ERISA, upon Borrower or any ERISA
Affiliate. 
 “Eurodollar Reserve Percentage” means, for any day during any Interest Period, the reserve percentage
(expressed as a decimal, rounded upward to the next 1/100th of 1%) in effect on such day, whether or not, applicable to any Lender, under regulations issued from time to time by the Board of Governors of the Federal Reserve System for determining
the maximum reserve requirement (including any emergency, supplemental or other marginal reserve requirement) with respect to Eurocurrency funding (currently referred to as “Eurocurrency liabilities”). The Offshore Rate for each
outstanding Offshore Rate Loan shall be adjusted automatically as of the effective date of any change in the Eurodollar Reserve Percentage by dividing (i) the Offshore Rate by (ii) one (1) minus the Eurodollar Reserve
Percentage, The determination of the Eurodollar Reserve Percentage and the Offshore Rate by Administrative Agent shall be conclusive in the absence of manifest error. 
 “Event of Default” means any of the events specified in Section 8. 
 “Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor federal statute. 
 “Extension of Credit” means (a) a Borrowing, Conversion or Continuation of Loans and (b) a Letter of Credit Action wherein a new Letter of Credit is issued or which has the effect of increasing the amount of,
extending the maturity of, or making a material modification to an outstanding Letter of Credit or the reimbursement of drawings thereunder. 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 “Federal Funds
Rate” means, for any day, the rate per annum (rounded upwards to the nearest 1/100 of 1%) equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published by the Federal Reserve Bank on the Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such
transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate
charged to KeyBank on such day on such transactions as determined by Administrative Agent. 
 “Fee Letter” has the meaning
specified in Section 2.7(b). 
 “Finally Paid” or “Final Payment” means, when used in connection with
any Indebtedness, the full payment in cash of all obligations with respect to such Indebtedness (other than contingent indemnity obligations not expected to be incurred) and the irrevocable termination of all commitments related thereto. 

“First Tier Foreign Subsidiary” means, at any date of determination, each foreign Material Subsidiary in which Borrower or any of its
domestic subsidiaries owns directly more than 50%, in the aggregate, of the capital stock of such Subsidiary. 
 “Fixed Charge
Coverage Ratio” means the ratio of (a) Consolidated EBITDA for the preceding four (4) fiscal quarters most recently ended to (b) (i) consolidated capital expenditures of Borrower and its Subsidiaries (as determined in
accordance with GAAP) and Consolidated Interest Charges, for such period, plus (ii) Borrower’s and its Subsidiaries’ consolidated cash income taxes paid less cash income tax refunds actually received for such period,
plus (iii) the amount of scheduled payments of principal of Indebtedness during such period (excluding scheduled payments of Revolving Loans and other Indebtedness subject to reborrowing to the extent not accompanied by a concurrent and
permanent reduction of the Revolving Commitment or the commitment in respect of such Indebtedness). 
 “Foreign Lender” has
the meaning specified in Section 10.22. 
 “Fund” means any Person (other than a natural person) that is (or will be)
engaged in making, purchasing, holding or otherwise investing in commercial loans or similar extensions of credit in the ordinary course of business. 
 “GAAP” means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and
statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by a significant segment of the accounting profession, that are applicable to the circumstances as of the date of determination,
consistently applied. If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either Borrower or Requisite Lenders shall so request, Administrative Agent, Lenders and
Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP (subject to the approval of Requisite Lenders) provided that, until so amended, (a) such
ratio or 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 requirement shall continue to be
computed in accordance with GAAP prior to such change therein and (b) Borrower shall provide to Administrative Agent and Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting
forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP. 
 “General Security Agreement” means each of those certain Security Agreements (Personal Property) dated as of the date hereof, between Borrower (or, as the case may be, each Guarantor), as Debtor, and Administrative Agent
(for the account of each Lender in accordance with its Pro Rata Share), securing the Obligations of Borrower, together with any Security Agreement executed hereafter pursuant to the terms of Section 6.13 hereof, in each case as the same may
from time to time hereafter be amended, modified or supplemented. 
 “Governmental Authority” means (a) any
international, foreign, federal, state, county or municipal government, or political subdivision thereof, (b) any governmental or quasi-governmental agency, authority, board, bureau, commission, department, instrumentality, central bank or
public body, or (c) any court, administrative tribunal or public utility. 
 “Guarantor” means each domestic Material
Subsidiary in existence on the date hereof (as set forth in Schedule 5.1 attached to the Disclosure Letter) and thereafter any Person that may from time to time become a domestic Material Subsidiary and deliver a Guaranty hereafter pursuant to the
terms of Section 6.13 hereof. 
 “Guaranty“ means each of those certain Guaranties dated as of the date hereof, as
supplemented from time to time hereafter, from Guarantors in favor of the Administrative Agent and each Lender, together with any Guaranty executed hereafter pursuant to the terms of Section 6.13 hereof, as the same may from time to time
hereafter be amended, modified or supplemented. 
 “Guaranty Obligation” means, as to any Person, any (a) guaranty by
such Person of Indebtedness of, or other obligation payable or performable by, any other Person or (b) assurance, agreement, letter of responsibility, letter of awareness, undertaking or arrangement given by such Person to an obligee of any
other Person with respect to the payment or performance of an obligation by, or the financial condition of, such other Person, whether direct, indirect or contingent, including any purchase or repurchase agreement covering such obligation or any
collateral security therefor, any agreement to provide funds (by means of loans, capital contributions or otherwise) to such other Person, any agreement to support the solvency or level of any balance sheet item of such other Person or any
“keep-well” or other arrangement of whatever nature, in each such case, given for the purpose of assuring or holding harmless such obligee against loss with respect to any obligation of such other Person; provided, however,
that the term Guaranty Obligation shall not include endorsements of instruments for deposit or collection in the ordinary course of business. The amount of any Guaranty Obligation shall be deemed to be an amount equal to the stated or determinable
amount of the related primary obligation, or portion thereof, covered by such Guaranty Obligation or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the Person in good faith.

  

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	Credit Agreement	  	Epicor Software Corporation

  
 “Hazardous
Substance” means any substance, material or waste, including asbestos and petroleum (including crude oil or any fraction thereof), which is or becomes designated, classified or regulated as “toxic,” “hazardous,” a
“pollutant” or similar designation under any Laws. 
 “Increase Notice” has the meaning specified in
Section 2.12. 
 “Indebtedness” of any Person means: 
 (a) all obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes or other
similar instruments; 
 (b) any direct or contingent obligations of such Person arising under letters of credit (including
standby and commercial), banker’s acceptances, bank guaranties, surety bonds and similar instruments; 
 (c) net
obligations under any Swap Contract in an amount equal to (i) if such Swap Contract has been closed out, the termination value thereof, or (ii) if such Swap Contract has not been closed out, the mark-to-market value thereof determined on
the basis of readily available quotations provided by any recognized dealer in such Swap Contract; 
 (d) with or without
recourse, all obligations of such Person to pay the deferred purchase price of property or services (if such deferral is greater than one hundred eighty (180) days), and indebtedness (excluding prepaid interest thereon) secured by a Lien on
property owned or being purchased by such Person (including indebtedness arising under conditional sales or other title retention agreements); 
 (e) Capital Leases or Synthetic Lease Obligations, provided, however, that Synthetic Lease Obligations shall be excluded from Indebtedness to the extent they are secured by cash collateral or a letter of
credit. The amount of Indebtedness in the case of Capital Leases shall be the amount of the capitalized lease liability appearing on Borrower’s financial statements delivered in accordance with Sections 6.1(a) and (b) of this Agreement.
The amount of Indebtedness in the case of Synthetic Lease Obligations shall be the sum of all outstanding principal advances and any other sums advanced and outstanding pursuant to the Synthetic Lease Obligations; and 
 (f) all Guaranty Obligations of such Person in respect of any of the foregoing obligations of any other Person. 
 For all purposes of this Agreement, the Indebtedness of any Person shall include, at any such time as such partnership or joint venture is not Solvent, the Indebtedness
of any partnership or joint venture (to the extent the joint venture consists of a legal entity where a joint venturer has pass-through liability for all of the debts of the joint venture) in which such Person is a general partner or a joint
venturer, unless such Indebtedness is expressly made non-recourse to such Person (subject to customary recourse exceptions acceptable to Requisite Lenders). 
 “Indemnified Liabilities” has the meaning set forth in Section 10.14. 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 “Indemnitees” has the meaning set forth in Section 10.14. 
 “Intangible Assets” means assets
that are required to be disclosed as intangible assets in accordance with GAAP on Borrower’s balance sheet, including customer lists, goodwill, computer software, copyrights, trade names, trade marks, patents, unamortized deferred charges,
unamortized debt discount and capitalized research and development costs. 
 “Interest Period” means for each Offshore Rate
Loan, (i) initially, the period commencing on the date such Offshore Rate Loan is disbursed or Continued or Converted into such Offshore Rate Loan, and (ii) thereafter, the period commencing on the last day of the preceding Interest
Period, and ending, in each case, on the earlier of (x) the scheduled Maturity Date, or (y) one, two, three, six, nine or twelve months thereafter, as elected by Borrower; provided that: 
 (a) any Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day
unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day; 
 (b) any Interest Period which begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on
the last Business Day of the calendar month at the end of such Interest Period; and 
 (c) unless Administrative Agent
otherwise consents, there may not be more than fifteen (15) Interest Periods for Offshore Rate Loans in effect at any time. 
 “Investment” means, as to any Person, any investment by such Person, whether by means of the purchase or other acquisition of stock or other securities of any other Person or by means of a loan, creating a debt, capital
contribution, guaranty or other debt or equity participation or interest in any other Person. For purposes of covenant compliance, the amount of any Investment shall be the amount actually invested, without adjustment for subsequent increases or
decreases in the value of such Investment. 
 “IRS” means the United States Internal Revenue Service. 
 “Issuing Lender” means KeyBank, or any other Lender, who from time to time effects a Letter of Credit Action in accordance with the
terms of this Agreement. 
 “KeyBank” means KeyBank National Association. 
 “Laws” or “Law” means all international, foreign, federal, state and local statutes, treaties, rules, guidelines,
regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and
all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case whether or not having the force of law. 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 “Lender” means each lender from time to time party hereto and, as the context requires, Issuing Lender. 
 “Lending Office” means, as to any Lender, the office or offices of such Lender described as such on Schedule 10.2, or such other office or offices as a Lender may from time to time notify Administrative Agent. 

“Letter of Credit” means any standby letter of credit issued or outstanding hereunder. A Letter of Credit may be a performance letter
of credit or a financial letter of credit. 
 “Letter of Credit Action” means the issuance, supplement, amendment, renewal,
extension, modification or other action relating to a Letter of Credit hereunder. 
 “Letter of Credit Application” means an
application for a Letter of Credit Action from time to time in use by Issuing Lender. 
 “Letter of Credit Expiration Date”
means the scheduled Maturity Date for Revolving Loans. 
 “Letter of Credit Sublimit” means an amount equal to
USD$20,000,000. The Letter of Credit Sublimit is part of, and not in addition to, the combined Revolving Commitments. 
 “Letter of
Credit Usage” means, as at any date of determination, the aggregate undrawn face amount of outstanding Letters of Credit plus the aggregate amount of all drawings under the Letters of Credit not reimbursed by Borrower or converted
into Revolving Loans. 
 “License Disposition” means, in respect of any patent, trademark, copyright, mask work, trade
secret or other intellectual property right owned or held by Borrower or any of its Subsidiaries (the “IP Holder”) which is material to Borrower or any of its Subsidiaries (together, “Material IP”), (i) the
granting by the IP Holder of an exclusive license across all or substantially all fields, uses or regions to any Person other than Borrower or another Subsidiary, (ii) the granting of any license by the IP Holder that conveys directly or
indirectly to any Person other than Borrower or its Subsidiaries all or substantially all of the economic value of such Material IP, or (iii) the abandonment by the IP Holder of such Material IP. 
 “Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement (including in the nature of, cash collateral accounts
or security interests), encumbrance, lien (statutory or other), fixed or floating charge, or other security interest of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any financing lease having
substantially the same economic effect as any of the foregoing, and the filing of any financing statement under the Uniform Commercial Code or comparable Laws of any jurisdiction), including the interest of a purchaser of accounts receivable.

 “Loan” means any advance made by any Lender to Borrower as provided in Section 2 that is either a Revolving Loan or
a Term Loan (collectively, the “Loans”). 
 “Loan Documents” means this Agreement and each Note, each
General Security Agreement, each Stock Pledge Agreement, each Guaranty, each Letter of Credit Application, 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 each Request for Extension of Credit,
each certificate, each fee letter, and each other instrument or agreement from time to time executed by Borrower or any of its Subsidiaries or any Responsible Officer and delivered in connection with this Agreement. 
 “Master Agreement” has the meaning set forth in the definition of “Swap Contract.” 
 “Material Adverse Effect” means any set of circumstances or events which (a) has any material adverse effect upon the validity or
enforceability of any Loan Document, (b) is material and adverse to the financial condition, business, assets or operations of Borrower and all of its Subsidiaries taken as a whole, (c) has any material adverse effect upon the value or
condition of the Collateral under the General Security Agreement or the Stock Pledge Agreement, or (d) materially impairs the ability of Borrower or any Guarantor to perform the Obligations. 
 “Material Subsidiary” means each Subsidiary of Borrower which has assets with a total book value greater than 10% of the consolidated
total assets of Borrower and its Subsidiaries determined as of the end of the fiscal quarter immediately preceding the date of determination. 
 “Maturity Date” means (a) with respect to Revolving Loans, March 30, 2009, (b) with respect to Term Loans, March 30, 2012, or (c) such earlier date upon which the combined Commitments may be
terminated in accordance with the terms of this Agreement. 
 “Minimum Amount” means, with respect to each of the following
actions, the minimum amount and any multiples in excess thereof set forth opposite such action: 
  

					
	 Type of Action
	  	Minimum Amount	 	 Multiples in
 excess thereof

			
	 Borrowing or prepayment of, or Conversion into, Base Rate Loans
	  	USD$1,000,000	 	USD$1,000,000
			
	 Borrowing, prepayment or Continuation of, or Conversion into, Offshore Rate Loans denominated in Dollars
	  	USD$1,000,000	 	USD$1,000,000
			
	 Borrowing, prepayment or Continuation of, or Conversion into, Offshore Rate Loans denominated in an Alternative Currency
	  	USD$500,000
(Dollar Equivalent)	 	USD$500,000
(Dollar Equivalent)
			
	 Letter of Credit Action
	  	USD$50,000	 	None
			
	 Reduction in Commitment
	  	USD$1,000,000	 	USD$1,000,000

 “Modified Note” has the meaning specified in Section 2.12. 
 “Moody’s” means Moody’s Investors Service, Inc. 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 “Multiemployer
Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA. 
 “Net
Insurance/Condemnation Proceeds” means an amount equal to: (i) any Cash (or Cash Equivalents) payments or proceeds received by Borrower or any of its Subsidiaries (a) under any casualty insurance policy in respect of a covered
loss thereunder or (b) as a result of the taking of any assets of Borrower or any of its Subsidiaries by any Person pursuant to the power of eminent domain, condemnation or otherwise, or pursuant to a sale of any such assets to a purchaser with
such power under threat of such a taking, minus (ii) (a) any costs incurred by Borrower or any of its Subsidiaries in connection with the adjustment or settlement of any claims of Borrower or such Subsidiary in respect thereof, and
(b) any costs incurred in connection with any sale of such assets as referred to in clause (i)(b) of this definition, including income taxes payable as a result of any gain recognized in connection therewith. 
 “Net Asset Sales Proceeds” means, with respect to any Asset Sale, an amount equal to: (i) Cash payments (including any Cash or Cash
Equivalents received by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so received) received by Borrower or any of its Subsidiaries from such Asset Sale, minus (ii) any
direct costs incurred in connection with such Asset Sale, including (a) income or gains taxes payable by the seller as a result of any gain recognized in connection with such Asset Sale, (b) payment of the outstanding principal amount of,
premium or penalty, if any, and interest on any Indebtedness (other than the Loans) that is secured by a Lien on the stock or assets in question and that is required to be repaid under the terms thereof as a result of such Asset Sale and (c) a
reasonable reserve for any indemnification payments (fixed or contingent) attributable to seller’s indemnities and representations and warranties to purchaser in respect of such Asset Sale undertaken by Borrower or any of its Subsidiaries in
connection with such Asset Sale. 
 “New Lenders” has the meaning specified in Section 2.12. 
 “New Note” has the meaning specified in Section 2.12. 
 “Note” means a promissory note made by Borrower in favor of a Lender evidencing the Loans made by such Lender, substantially in the form
of Exhibit C (collectively, the “Notes”). 
 “Obligations” means all advances to, and debts,
liabilities, obligations, covenants and duties of, Borrower arising under any Loan Document, including any Swap Contracts executed by Borrower and any Lender, whether direct or indirect (including those acquired by assumption), absolute or
contingent, due or to become due, now existing or hereafter arising and including interest that accrues after the commencement of any proceeding under any Debtor Relief Laws by or against Borrower or any Subsidiary or Affiliate of Borrower.

 “Offshore Rate” means for any Interest Period with respect to each Offshore Rate Loan comprising part of the same
Borrowing, a rate per annum determined by Administrative Agent as the offered rate for Dollar deposits in the approximate amount of the requested Offshore Rate Loan and having a maturity comparable to such Interest Period, which rate appears
(i) on the British Bankers’ Association internet web page (http://www.bba.org.uk/public/libor/), or via (ii) Reuters (BBALIBORS), Bloomberg, Moneyline Telerate (Page 3750) or any other information 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 provider of the British Bankers’
Association daily Libor rates as of 11:00 A.M., London time, on the date (an “Interest Determination Date”) which is the second day on which banks are open for interbank deposits in London prior to the commencement of such Interest
Period. If, on the Interest Determination Date for such Interest Period, the Administrative Agent is unable to obtain any quotation as provided above, the Offshore Rate for the relevant Interest Period shall be the rate per annum that the
Administrative Agent determines in good faith to be the arithmetic mean (rounded, if necessary, to the nearest sixth decimal place) of all the per annum rates of interest at which deposits in Dollars in an amount comparable to the requested Offshore
Rate Loan in Dollars in respect of which the Offshore Rate is then being determined for a period comparable to such Interest Period are offered by Administrative Agent to prime banks in the London interbank market at approximately 11:00 A.M., London
time on such Interest Determination Date. The Administrative Agent shall provide to Borrower, upon request, details as to the manner in which the Offshore Rate is calculated, but such calculation shall be conclusive and binding absent manifest
error. 
 “Offshore Rate Loan” means a Loan made in not less than the Minimum Amount pursuant to Requisite Notice to
Administrative Agent and by deliverance of a Request for Extension of Credit not later than the Requisite Time and specified to be an Offshore Rate Loan. Interest on each Offshore Rate Loan shall be calculated using the Applicable Margin for the
Offshore Rate effective as of the date of the advance of such Offshore Rate. 
 “Ordinary Course Dispositions” means:

 (a) Dispositions of surplus equipment or damaged, obsolete or worn out property, whether now owned or hereafter acquired,
in the ordinary course of business; 
 (b) Dispositions in the ordinary course of business; 
 (c) Dispositions of property to the extent that such property is exchanged for credit against the purchase price of similar replacement
property, or the proceeds of such sale are reasonably promptly applied to the purchase price of such replacement property or where Borrower or any Subsidiary determines in good faith that the failure to replace such equipment will not be detrimental
to the business of Borrower or such Subsidiary; 
 (d) Dispositions of assets or property by any Subsidiary of Borrower to
Borrower or another Subsidiary of Borrower, or by Borrower to any Subsidiary of Borrower; 
 (e) Dispositions which constitute
the making or liquidating of Permitted Investments; and 
 (f) Dispositions which constitute the incurrence (but not the
enforcement) of Permitted Liens; 
 provided, however, that, other than with respect to Dispositions of the types described in clauses (a) and
(c) of this definition, no such Disposition shall be for less than the fair market value of the property being disposed of. 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 “Ordinary
Course Indebtedness” means: 
 (a) Indebtedness under the Loan Documents; 
 (b) Intercompany Guaranty Obligations of Borrower or any of its Subsidiaries guarantying Indebtedness otherwise permitted hereunder of
Borrower or any Subsidiary of Borrower; 
 (c) Indebtedness arising from the honoring of a check, draft or similar instrument
against insufficient funds or from the endorsement of instruments for collection in the ordinary course of Borrower’s or any Subsidiary’s’ business; 
 (d) Permitted Swap Obligations; 
 (e) Indebtedness of Borrower or any of its Subsidiaries with respect to surety, appeal, indemnity, performance or other similar bonds in the ordinary course of business with respect to agreements providing for
indemnification, adjustment of purchase price, earnest money or similar obligations in connection with Acquisitions or Dispositions otherwise permitted by this Agreement; and 
 (f) Indebtedness with respect to cash deposited by customers to obtain the right to delivery of future goods or services; provided,
however, that all such cash deposits are held in an account subject to a Deposit Account Control Agreement. 
 “Ordinary Course
Investments” means Investments consisting of 
 (a) Investments in assets properly classified as “marketable
securities”, “cash”, “cash equivalents” or “short term investments” under GAAP, and which conform to the investment policies adopted by the Board of Directors of Borrower from time to time;

 (b) Advances to officers, directors and employees of Borrower and its Subsidiaries for travel, entertainment, relocation
and analogous ordinary business purposes; 
 (c) Investments of Borrower in any of its Subsidiaries and Investments of any
Subsidiary of Borrower in Borrower or another Subsidiary of Borrower; 
 (d) Extensions of credit to customers or suppliers of
Borrower and its Subsidiaries in the ordinary course of business and any Investments received in satisfaction or partial satisfaction thereof; 
 (e) Guaranty Obligations permitted by Section 7.1; 
 (f) Investments received by
Borrower or any of its Subsidiaries as distributions on claims in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers and suppliers arising in
the ordinary course of business; 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 (g)
Investments of any Subsidiary existing at the time it becomes a Subsidiary of Borrower, provided that such Investments were not made in anticipation of such Person becoming a Subsidiary of Borrower; and 
 (h) Investments consisting of loans to employees, officers and directors, the proceeds of which shall be used to purchase Equity
Securities of Borrower or its Subsidiaries and other loans to non-executive officers and employees. 
 “Ordinary Course
Liens” means: 
 (a) Liens pursuant to any Loan Document; 
 (b) Liens for taxes not yet due or which are being contested in good faith and by appropriate proceedings, if adequate reserves with
respect thereto are maintained on the books of the applicable Person in accordance with GAAP; 
 (c) carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s, landlord’s or other like Liens arising in the ordinary course of business which are not overdue for a period of more than thirty (30) days or which are being
contested in good faith and by appropriate proceedings, if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP; 
 (d) pledges or deposits in connection with worker’s compensation, unemployment insurance and other social security legislation;

 (e) deposits to secure the performance of bids, trade contracts (other than for borrowed money), leases, statutory
obligations, surety and appeal bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business (including, without limitation, Liens securing all those obligations described in clause (e) of the
definition of Ordinary Course Indebtedness); 
 (f) easements, rights-of-way, restrictions and other similar encumbrances
affecting real property which, in the aggregate, are not substantial in amount, and which do not in any case materially detract from the value of the property subject thereto or materially interfere with the ordinary conduct of the business of any
Person; 
 (g) attachment, judgment or other similar Liens arising in connection with litigation or other legal proceedings
(and not otherwise an Event of Default hereunder) in the ordinary course of business that are currently being contested in good faith by appropriate proceedings, for which adequate reserves have been set aside, and no material property is subject to
a material risk of loss or forfeiture; 
 (h) Liens on the property or assets of any Subsidiary of Borrower in favor of
Borrower or any other Subsidiary of Borrower; 
 (i) Liens in favor of customs and revenue authorities arising as a matter of
law to secure payment of customs duties and in connection with the importation of goods in the ordinary course of Borrower’s and its Subsidiaries’ businesses; 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 (j)
Liens arising solely by virtue of any statutory or common law provision relating to banker’s liens, rights of set-off or similar rights and remedies as to deposit accounts or other funds maintained with a creditor depository institution;
provided that (i) such deposit account is not a dedicated cash collateral account and is not subject to restrictions against access by Borrower in excess of those set forth by regulations promulgated by the Federal Reserve Board, and
(ii) such deposit account is not intended by Borrower or any Subsidiary to provide collateral to the depository institution; 
 (k) Liens on insurance proceeds in favor of insurance companies with respect to the financing of insurance premiums; and 
 (l) Purported Liens evidenced by the filing of UCC precautionary financing statements relating to operating leases entered into in the ordinary course of business. 
 “Organization Documents” means, (a) with respect to any corporation, the certificate or articles of incorporation and the bylaws;
(b) with respect to any limited liability company, the articles of formation and operating agreement; and (c) with respect to any partnership, joint venture, trust or other form of business entity, the partnership or joint venture
agreement and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation with the secretary of state or other department in the state of its formation, in each case as amended from time to time.

 “Outstanding Obligations” means, as of any date, and giving effect to making any Extensions of Credit requested on such
date and all payments, repayments and prepayments made on such date, (a) when reference is made to all Lenders, the sum of (i) the aggregate outstanding principal amount of all Loans, and (ii) all Letter of Credit Usage, and
(b) when reference is made to one Lender, the sum of (i) the aggregate outstanding principal amount of all Loans made by such Lender, and (ii) such Lender’s ratable risk participation in all Letter of Credit Usage. 
 “Participant” has the meaning specified in Section 10.4(d). 
 “PBGC” means the Pension Benefit Guaranty Corporation or any successor thereto established under ERISA. 
 “Pension Plan” means any “employee pension benefit plan” (as such term is defined in Section 3(2) of ERISA), other
than a Multiemployer Plan, that is subject to Title IV of ERISA and is sponsored or maintained by Borrower or any ERISA Affiliate or to which Borrower or any ERISA Affiliate contributes or has an obligation to contribute, or in the case of a
multiple employer plan (as described in Section 4064(a) of ERISA) has made contributions at any time during the immediately preceding five plan years. 
 “Permitted Indebtedness” has the meaning specified in Section 7.1. 
 “Permitted Investments” has the meaning specified in Section 7.5. 
 “Permitted Liens” has
the meaning specified in Section 7.2. 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 “Permitted
Swap Obligations” means all obligations (contingent or otherwise) of Borrower or any of its Subsidiaries existing or arising under Swap Contracts, provided that such obligations are (or were) entered into by such Person for the
purpose of (i) directly mitigating risks associated with liabilities, commitments or assets held or reasonably anticipated by such Person, or changes in the value of securities issued by such Person in conjunction with a securities repurchase
program not otherwise prohibited hereunder; or (ii) directly mitigating the dilution associated with the issuance of convertible securities by Borrower, and not for purposes of speculation or taking a “market view.” 

“Person” means any individual, trustee, corporation, general partnership, limited partnership, limited liability company, joint stock
company, trust, unincorporated organization, bank, business association, firm, joint venture, Governmental Authority, or otherwise. 
 “Plan” means any employee benefit plan maintained or contributed to by Borrower or by any trade or business (whether or not incorporated) under common control with Borrower as defined in Section 4001(b) of ERISA and
insured by the PBGC under Title IV of ERISA. 
 “Pro Rata Share” means: (a) with respect to a Lender’s obligation
to make Revolving Loans, participate in Letters of Credit, reimburse the Issuing Lender, and receive payments of principal, interest, fees, costs, and expenses with respect thereto, (x) prior to the Revolving Commitment being terminated or
reduced to zero, the percentage obtained by dividing (i) such Lender’s Revolving Commitment, by (ii) the aggregate Revolving Commitment of all Lenders and (y) from and after the time the Revolving Commitment has been terminated
or reduced to zero, the percentage obtained by dividing (i) the aggregate unpaid principal amount of such Lender’s Revolving Outstandings by (ii) the aggregate unpaid principal amount of all Revolving Outstandings; 
 (b) with respect to a Lender’s obligation to make a Term Loan and receive payments of interest, fees, and principal with respect thereto,
(x) prior to the making of the Term Loans, the percentage obtained by dividing (i) such Lender’s Term Loan Commitment, by (ii) the aggregate amount of all Lenders’ Term Loan Commitments, and (y) from and after the
making of the Term Loans, the percentage obtained by dividing (i) the principal amount of such Lender’s Term Loan by (ii) the principal amount of all Term Loans of all Lenders; and 
 (c) with respect to all other matters as to a particular Lender, (x) during any period when Revolving Commitments have not been terminated or
Revolving Outstandings or the Term Loan has not been Finally Paid, the percentage obtained by dividing (i) such Lender’s Revolving Commitment plus the aggregate outstanding principal amount of Term Loans held by such Lender, by
(ii) the aggregate amount of Revolving Commitment of all Lenders plus the aggregate outstanding principal amount of Term Loans; provided that in the event the Commitments have been terminated or reduced to zero, Pro Rata Share
shall be the percentage obtained by dividing (A) the principal amount of such Lender’s Revolving Outstandings plus the unpaid principal amount of such Lender’s Term Loan by (B) the principal amount of all outstanding
Revolving Outstandings plus the unpaid outstanding principal amount of all Term Loans of all Lenders. 
 “PT” means
Pacific Time. 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 “Register” has the meaning specified in Section 10.4(d). 
 “Related Parties” means, with
respect to any Person, such Person’s Affiliates and partners, directors, officers, employees, agents, advisors of such Person and of such Person’s Affiliates. 
 “Reportable Event” means any of the events set forth in Section 4043(b) of ERISA or the regulations thereunder, a withdrawal from a Plan described in Section 4063 of ERISA, or a cessation of
operations described in Section 4062(e) of ERISA. 
 “Request for Extension of Credit” means, unless otherwise
specified herein, (a) with respect to a Borrowing, Conversion or Continuation of Loans, a written request substantially in the form of Exhibit A, and (b) with respect to a Letter of Credit Action, a Letter of Credit Application; in
each case duly completed and signed by a Responsible Officer of Borrower and delivered by Requisite Notice. 
 “Requested
Increase” has the meaning specified in Section 2.12. 
 “Requisite Lenders” shall mean (a) with respect
to matters relating to Revolving Lenders, Revolving Lenders holding or being responsible for 51% or more of the sum of all outstanding Revolving Loans and all unutilized Revolving Commitments to make Advances, (b) with respect to matters
relating to Term Lenders, Term Lenders holding or being responsible for 51% or more of the sum of all outstanding Term Loans, and (c) with respect to all other matters, Lenders holding or being responsible for 51% or more of all outstanding
Loans and unutilized Commitments. 
 “Requisite Notice” means, unless otherwise provided herein, (a) irrevocable
written notice to the intended recipient or (b) except with respect to Letter of Credit Actions (which must be in writing), irrevocable telephonic notice to the intended recipient, promptly followed by a written notice to such recipient. Such
notices shall be (i) delivered to such recipient at the address or telephone number specified on Schedule 10.2 or as otherwise designated by such recipient by Requisite Notice to Administrative Agent, and (ii) if made by Borrower, given or
made by a Responsible Officer of Borrower. Any written notice delivered in connection with any Loan Document shall be in the form, if any, prescribed herein or therein. Any notice sent by other than hardcopy shall be promptly confirmed by a
telephone call to the recipient and, if requested by Administrative Agent, by a manually-signed hardcopy thereof. 
 “Requisite
Time” means, with respect to any of the actions listed below, the time and date set forth below opposite such action: 
  

							
	 Type of Action
	  	 Applicable
 Time
	  	 Date of Action

			
	 Delivery of Request for Extension of Credit for, or notice for:
	  		  	
			
	 •      Borrowing or prepayment of, or Conversion into, Base Rate Loans
	  	10:00 a.m. PT	  	Same date as such Borrowing, prepayment or Conversion
			
	 •      Borrowing, prepayment or Continuation of, or Conversion into, Offshore Rate Loans
(whether denominated in Dollars or an Alternative Currency)
	  	10:00 a.m. PT	  	3 Business Days prior to such Borrowing, prepayment, Continuation or Conversion
			
	 •      Letter of Credit Action
	  	10:00 a.m. PT	  	2 Business Days prior to such action (or such lesser time which is acceptable to Issuing Lender)
			
	 •      Payments by Lenders or Borrower to Administrative Agent
	  	10:00 a.m. PT	  	On date payment is due

  

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	Credit Agreement	  	Epicor Software Corporation

  
 “Responsible
Officer” means the chief executive officer, president, the chief financial officer, any vice president of finance, the controller, the treasurer or the assistant treasurer of Borrower. Any document or certificate hereunder that is signed by
a Responsible Officer of Borrower shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of Borrower and such Responsible Officer shall be conclusively presumed to have acted on
behalf of Borrower. 
 “Restricted Payment” means: 
 (a) the declaration or payment of any dividend or distribution by Borrower or any Subsidiary, either in cash or property, on any shares of
Equity Securities of any class of Borrower or any Subsidiary, and 
 (b) any other payment or distribution by Borrower or any
Subsidiary in respect of its Equity Securities, either directly or indirectly. 
 “Revaluation Date” means each of the
following: (a) each date of a Borrowing of an Offshore Rate Loan denominated in an Alternative Currency; (b) each date of a continuation of an Offshore Rate Loan denominated in an Alternative Currency; and (c) such additional dates as
the Administrative Agent or the Requisite Lenders shall specify. 
 “Revolving Commitment” means, in the aggregate
USD$100,000,000, as increased from time to time pursuant to Section 2.12 or reduced from time to time pursuant to Section 2.5, and, with respect to any Revolving Lender, such Revolving Lender’s Pro Rata Share of such amounts as set
forth on Schedule 2.1 attached hereto. 
 “Revolving Lender” means any Lender with a Revolving Commitment. 
 “Revolving Loan” has the meaning specified in Section 2.1(a). 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 “Revolving
Loan Availability” means, at any time, the remainder of (a) the aggregate Revolving Commitments at such time minus (b) the aggregate Revolving Outstandings at such time. 
 “Revolving Outstandings” means, at any time, the sum of (a) the aggregate principal amount of all outstanding Revolving Loans,
plus (b) the aggregate amount of all Letter of Credit Usage. 
 “S&P” means Standard & Poor’s
Ratings Group, a division of The McGraw-Hill Companies, Inc. 
 “Security Documents” means the General Security Agreement
and the Stock Pledge Agreements and any similar documents delivered after the date hereof pursuant to the terms of the Loan Documents (including, without limitation, Section 6.13 hereof). 
 “Shareholders’ Equity” means, as of any date of determination for Borrower and its Subsidiaries on a consolidated basis,
shareholders’ equity as of that date determined in accordance with GAAP. 
 “Shortfall” has the meaning specified in
Section 2.12. 
 “Solvent” means, as to any Person at any time, that (i) the fair value of the property of such
Person is greater than the amount of such Person’s liabilities (including disputed, contingent and unliquidated liabilities) as such value is established and liabilities evaluated for purposes of Section 101(32) of the Bankruptcy Code of
the United States of America; (ii) the present fair saleable value of the property of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured;
(iii) such Person is able to realize upon its property and pay its debts and other liabilities (including disputed, contingent and unliquidated liabilities) as they mature in the normal course of business; (iv) such Person does not intend
to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay as such debts and liabilities mature; and (v) such Person is not engaged in business or a transaction, and is not about to engage in
business or a transaction, for which such Person’s property would constitute unreasonably small capital. 
 “Stock Pledge
Agreements” means collectively (i) that certain Security and Pledge Agreement dated as of even date herewith between Borrower, as Debtor, and Administrative Agent (for the account of each Lender in accordance with its Pro Rata Share),
as Lender, and (ii) the other pledge agreements, securing the Obligations of Borrower, together with any stock pledge agreements executed hereafter pursuant to the terms of Section 6.13 hereof, in each case as the same may from time to
time hereafter be amended, modified or supplemented. 
 “Subordinated Debt” means any subordinated debt permitted by
Section 7.1. 
 “Subsidiary” of a Person means a corporation, partnership, joint venture, limited liability company or
other business entity of which a majority of the shares of securities or other interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the
happening of a contingency) are at the time beneficially owned or controlled, directly, or indirectly through one or more 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 intermediaries, or both, by such
Person. Unless otherwise specified, all references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a Subsidiary or Subsidiaries of Borrower. 
 “Swap Contract” means (a) any and all rate swap transactions, basis swaps, forward rate transactions, commodity swaps, commodity
options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign
exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, or any other similar transactions or any combination of any of the foregoing
(including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to
the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., or any other master agreement (any such master agreement, together with any related schedules, as
amended, restated, extended, supplemented or otherwise modified in writing from time to time, a “Master Agreement”), including any such obligations or liabilities under any Master Agreement. 
 “Swap Termination Value” means, in respect of any one or more Swap Contracts, after taking into account the effect of any legally
enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and
(b) for any date prior to the date referenced in clause (a) the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by
any recognized dealer in such Swap Contracts (which may include any Lender). 
 “Synthetic Lease Obligations” means all
monetary obligations of a Person under (a) a so-called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or possession of property creating obligations which do not appear on the balance sheet of such
Person but which, upon the insolvency or bankruptcy of such Person, would be characterized as secured debt of such Person (without regard for accounting treatment). 
 “Taxes” has the meaning specified in Section 3.1(a). 
 “Term Lender”
means any Lender with a Term Loan Commitment. 
 “Term Loan” has the meaning specified in Section 2.1(b). 

“Term Loan Commitment” means, in the aggregate, USD$100,000,000 and, with respect to any Term Lender, such Term Lender’s Pro
Rata Share of such amounts as set forth on Schedule 2.1 attached hereto. 
 “Threshold Amount” means USD$15,000,000.

 “To the best knowledge of” means, when modifying a representation, warranty or other statement of any Person, that the
fact or situation described therein is known by such Person (or, 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 (i) in the case of Borrower, known by
any Responsible Officer or executive officer of Borrower, or, (ii) in the case of any other Person other than a natural Person, known by any officer of such Person) making the representation, warranty or other statement, or with the exercise of
reasonable due diligence under the circumstances (in accordance with the standard of what a reasonable Person in similar circumstances would have done) would have been known by such Person (or, (i) in the case of Borrower, would have been known
by any Responsible Officer or executive officer of Borrower, or, (ii) in the case of any other Person other than a natural Person, would have been known by any executive officer of such Person). 
 “Total Commitments” means an amount equal to the aggregate amount of all Commitments (i.e., initially USD$200,000,000), as the same may
decrease pursuant to Section 2.5. 
 “Type” of Loan means (a) a Base Rate Loan and (b) an Offshore Rate Loan.

 “Unfunded Pension Liability” means the excess of a Pension Plan’s benefit liabilities under Section 4001(a)(16)
of ERISA, over the current value of that Pension Plan’s assets, determined in accordance with the assumptions used for funding the Pension Plan pursuant to Section 412 of the Code for the applicable plan year. 
 “USA Patriot Act” means United States Public Law 107-56, the Uniting and Strengthening America by Providing Appropriate Tools Required
to Intercept and Obstruct Terrorism (USA Patriot Act of 2001), as amended from time to time and the rules and regulations promulgated thereunder from time to time in effect. 
 1.2. Use of Certain Terms. 
 (a) All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto or thereto, unless otherwise defined therein. 
 (b) As used herein, unless the context requires otherwise, the masculine, feminine and neuter genders and the singular and plural include one another.

 (c) The words “herein” and “hereunder” and words of similar import when used in any Loan Document shall
refer to the Loan Documents as a whole and not to any particular provision thereof. The term “including” is by way of example and not limitation. References herein to a Section, subsection or clause shall, unless the context
otherwise requires, refer to the appropriate Section, subsection or clause in this Agreement. 
 (d) The term “or” is
disjunctive; the term “and” is conjunctive. The term “shall” is mandatory; the term “may” is permissive. 
 1.3. Accounting Terms. All accounting terms not specifically or completely defined in this Agreement shall be construed in conformity with, and all financial data required to be submitted by this
Agreement shall be prepared in conformity with, GAAP applied on a consistent basis, as in effect from time to time, and applied in a manner consistent with that used in preparing the Audited Financial Statements, except as otherwise specifically
prescribed herein. 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 1.4.
Rounding. Any financial ratios required to be maintained by Borrower pursuant to this Agreement shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of
places by which such ratio is expressed in this Agreement and rounding the result up or down to the nearest number (with a round-up if there is no nearest number), to the number of places by which such ratio is expressed in this Agreement.

 1.5. Exhibits and Schedules. All exhibits and schedules to this Agreement, either as originally existing or as the same may
from time to time be supplemented, modified or amended, are incorporated herein by this reference. A matter disclosed on any Schedule shall be deemed disclosed on all Schedules. 
 1.6. References to Agreements and Laws. Unless otherwise expressly provided herein, (a) references to agreements (including the Loan
Documents) and other contractual instruments shall include all amendments, restatements, extensions, supplements and other modifications thereto (unless prohibited by any Loan Document), and (b) references to any Law shall include all statutory
and regulatory provisions consolidating, amending, replacing, supplementing or interpreting such Law. 
 SECTION II 
 THE COMMITMENTS AND EXTENSIONS OF CREDIT 
 2.1. Loans; Maximum Amounts. Subject to the terms and conditions set forth in this Agreement, each Lender severally agrees to make Loans to (and to issue or participate in Letter of Credit for the account of) the Borrower as
follows: 
 (a) Revolving Loans. Each Revolving Lender severally agrees to make, Convert and Continue loans on a revolving basis
(“Revolving Loans”) in Dollars or (in the case of Offshore Rate Loans only) in one or more Alternative Currencies from time to time until the Maturity Date in such Revolving Lender’s Pro Rata Share of such aggregate amounts as
Borrower may from time to time request from all such Revolving Lenders; provided, however, that (i) the Revolving Outstandings of all Revolving Lenders shall not exceed at any time the combined Revolving Commitments, as the same may be
from time to time adjusted in accordance with this Agreement; (ii) the Revolving Outstandings of each Revolving Lender shall not at any time exceed such Revolving Lender’s Revolving Commitment, as the same may be from time to time adjusted
in accordance with this Agreement; (iii) the Dollar Equivalent of the Revolving Outstandings shall not exceed the combined Revolving Commitments, as the same may be from time to time adjusted in accordance with this Agreement; (iv) the
Dollar Equivalent of the aggregate Revolving Outstandings of any Revolving Lender shall not exceed such Revolving Lender’s Revolving Commitment, as the same may be from time to time adjusted in accordance with this Agreement; and (v) the
Dollar Equivalent of the combined Revolving Outstandings of all Revolving Loans denominated in Alternative Currencies shall not exceed the Alternative Currency Sublimit. The amount of the combined Revolving Commitments initially 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 totals USD$100,000,000. This is a
revolving credit and, subject to the terms and conditions hereof, Borrower may borrow, Convert, Continue, prepay and reborrow Revolving Loans as set forth herein without premium or penalty. 
 (b) Term Loan. Subject to the terms and conditions set forth in this Agreement, each Term Lender severally agrees to make a loan to the Borrower
(the “Term Loan”) in Dollars and consisting of one (1) Type of Loan on March 31, 2006 in such Term Lender’s Pro Rata Share of the Term Loan Commitment. The Term Loan Commitment shall expire concurrently with the
making of the Term Loan on March 31, 2006. Once prepaid or repaid, the Term Loan may not be reborrowed. The Term Loan may only be incurred and, for a period of fourteen (14) days after the Closing Date, maintained as a Base Rate Loan.
Thereafter, the Term Loan may, except as set forth herein, at the option of the Borrower, be maintained as, or converted into, a Loan that is a Base Rate Loan or an Offshore Rate Loan, in each case denominated in Dollars. The Term Loan shall be
repaid in accordance with Section 2.4 and Section 2.6. 
 (c) Letters of Credit. Subject to Section 2.3, the Issuing
Lender agrees to issue Letters of Credit, in each case containing such terms and conditions as are permitted by this Agreement and are reasonably satisfactory to the Issuing Lender (each, a “Letter of Credit”), at the request of and
for the account of the Borrower from time to time before the Letter of Credit Expiration Date, and, as more fully set forth in Section 2.3, each Revolving Lender agrees to purchase a participation in each such Letter of Credit. 
 (d) Notes. Loans made by each Lender shall, at the request of any Lender, be evidenced by one or more Notes. The date, amount and maturity of each
Lender’s Loans and payments and other particulars with respect thereto may be endorsed on schedule(s) attached to its Note by each Lender and/or recorded on one or more loan accounts or records maintained by such Lender in the ordinary course
of business. Such Notes, loan accounts and records shall be conclusive absent manifest error of the amount of such Loans and payments thereon. Any failure so to record or any error in doing so shall not, however, limit or otherwise affect the
obligation of Borrower to pay any amount owing with respect to the Loans. 
 2.2. Borrowings, Conversions and Continuations of
Loans. 
 (a) Borrower may irrevocably request a Borrowing, Conversion or Continuation of Loans in a Minimum Amount therefor by
delivering a Request for Extension of Credit therefor by Requisite Notice to Administrative Agent not later than the Requisite Time therefore. No Loan may be converted into or continued as a Loan denominated in a different currency, but instead,
with respect to Revolving Loans only, must be prepaid in the original currency of such Revolving Loan and reborrowed in the other currency. All Borrowings, Conversions and Continuations of Loans shall constitute Base Rate Loans unless properly and
timely otherwise designated as set forth in the prior sentence. 
 (b) Following receipt of a Request for Extension of Credit, Administrative
Agent shall promptly notify each Lender of its Pro Rata Share thereof by Requisite Notice. In the case of a Borrowing of Loans, each Lender shall make the funds for its Loan available to Administrative Agent at Administrative Agent’s office not
later than the Requisite Time 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 therefore on the Business Day
specified in such Request for Extension of Credit. Upon satisfaction of the applicable conditions set forth in Section 4.2 (and, in the case of an initial Extension of Credit hereunder, Section 4.1), all funds so received shall be made
available to Borrower in Dollars or, in the case of Revolving Loans that are also Offshore Rate Loans only, in one or more Alternative Currencies. Administrative Agent shall promptly notify Borrower and Lenders of the interest rate applicable to any
Loan other than a Base Rate Loan upon determination of same. 
 (c) Except as otherwise provided herein, an Offshore Rate Loan may be
Continued or Converted only on the last day of the Interest Period for such Offshore Rate Loan. During the existence of a Default or Event of Default, no Loans may be requested as, Converted into or Continued as Offshore Rate Loans without the
consent of Requisite Lenders, and Requisite Lenders may demand that any or all of the then outstanding Offshore Rate Loans be Converted immediately into Base Rate Loans. Furthermore, during the existence of a Default or Event of Default, no
Revolving Loans may be made in an Alternative Currency and, at the option of Requisite Lenders, each Offshore Rate Loan denominated in an Alternative Currency shall be converted into its Dollar Equivalent. 
 (d) If a Loan is to be made on the same date that another Loan is due and payable, Borrower or Lenders, as the case may be, shall, unless Administrative
Agent otherwise requests, make available to Administrative Agent the net amount of funds giving effect to both such Loans and the effect for purposes of this Agreement shall be the same as if separate transfers of funds had been made with respect to
each such Loan. 
 (e) The failure of any Lender to make any Loan on any date shall not relieve any other Lender of any obligation to make a
Loan on such date, but no Lender shall be responsible for the failure of any other Lender to so make its Loan. 
 2.3. Letters of
Credit. 
 (a) The Letter of Credit Sublimit. Subject to the terms and conditions set forth in this Agreement, until the Letter
of Credit Expiration Date, Issuing Lender shall take such Dollar denominated Letter of Credit Actions as Borrower may from time to time request; provided, however, that (i) the Revolving Outstandings of each Revolving Lender shall not at
any time exceed such Revolving Lender’s Revolving Commitment; (ii) the Revolving Outstandings of all Revolving Lenders shall not at any time exceed the combined Revolving Commitments; and (iii) Letter of Credit Usage shall not at any
time exceed the Letter of Credit Sublimit. No Letter of Credit shall be denominated in any Alternative Currency. 
 (b) Letter of Credit
Actions. Subject to the terms and conditions set forth in this Agreement, until the Letter of Credit Expiration Date, Issuing Lender shall take such Letter of Credit Actions as Borrower may from time to time request. Subject to subsection
(g) below and unless consented to by Issuing Lender and Requisite Lenders, no Letter of Credit may expire more than twelve (12) months after the date of its issuance or last renewal; provided, however, that no Letter of Credit shall
expire after the Letter of Credit Expiration Date unless Borrower shall post cash collateral with respect to such Letter of Credit in such manner as is reasonably satisfactory to Issuing Lender and the amount of the Letter of Credit does not exceed
the Letter of Credit Sublimit. 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 (c) Requesting
Letter of Credit Actions. Borrower may irrevocably request a Letter of Credit Action in a Minimum Amount therefor by delivering a Letter of Credit Application therefor to Issuing Lender, with a copy to Administrative Agent (who shall
notify all Revolving Lenders) by Requisite Notice not later than the Requisite Time therefor. Each Letter of Credit Action shall be in a form acceptable to Issuing Lender in its sole discretion. Unless Administrative Agent notifies’ Issuing
Lender that such Letter of Credit Action is not permitted hereunder, or Issuing Lender notifies Administrative Agent that it has determined that such Letter of Credit Action is contrary to any Laws or policies of Issuing Lender, Issuing Lender
shall, upon satisfaction of the applicable conditions set forth in Section 4.2 with respect to any Letter of Credit Action constituting an Extension of Credit, effect such Letter of Credit Action. This Agreement shall control in the event of
any conflict with any Letter of Credit Application. Upon the issuance of a Letter of Credit, each Revolving Lender shall be deemed to have purchased from Issuing Lender a risk participation therein in an amount equal to such Revolving Lender’s
Pro Rata Share times the amount of such Letter of Credit. 
 (d) Reimbursement of Payments Under Letters of Credit. Borrower shall
reimburse Issuing Lender through Administrative Agent for any payment that Issuing Lender makes under a Letter of Credit on or before the date of such payment; provided, however, that if the conditions precedent set forth in Section 4.2
can be satisfied, Borrower may request a Borrowing of a Revolving Loan to reimburse Issuing Lender for such payment pursuant to Section 2.3, or, failing to make such request, Borrower shall be deemed to have requested a Borrowing of Base Rate
Loans on such payment date pursuant to subsection (e) below. 
 (e) Funding by Lender When Issuing Lender Not Reimbursed. Upon
any drawing under a Letter of Credit, Issuing Lender shall notify Administrative Agent and Borrower. If Borrower fails to timely make the payment required pursuant to subsection (d) above, Issuing Lender shall notify Administrative Agent of
such fact and the amount of such unreimbursed payment. Administrative Agent shall promptly notify each Revolving Lender of its Pro Rata Share of such amount by Requisite Notice. Each Revolving Lender shall make funds in an amount equal its Pro Rata
Share of such amount available to Administrative Agent at Administrative Agent’s Office not later than the Requisite Time therefor on the Business Day specified by Administrative Agent, Administrative Agent shall remit the funds so received to
Issuing Lender. The obligation of each Revolving Lender to so reimburse Issuing Lender shall be absolute and unconditional and shall not be affected by the occurrence of a Default or Event of Default or any other occurrence or event. Any such
reimbursement shall not relieve or otherwise impair the obligation of Borrower to reimburse Issuing Lender for the amount of any payment made by Issuing Lender under any Letter of Credit, together with interest as provided herein. 
 (f) Nature of Revolving Lenders’ Funding. If the conditions precedent set forth in Section 4.2 can be satisfied (except for the giving
of a Request for Extension of Credit) on any date Borrower is obligated to, but fails to, reimburse Issuing Lender for a drawing under a Letter of Credit, the funding by Revolving Lenders pursuant to the previous subsection shall be deemed to be a
Borrowing of Base Rate Loans (without regard to the Minimum Amount 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 therefor) deemed requested by
Borrower. If the conditions precedent set forth in Section 4.2 cannot be satisfied on the date Borrower is obligated to, but fails to, reimburse Issuing Lender for a drawing under a Letter of Credit, the funding by Revolving Lenders pursuant to
the previous subsection shall be deemed to be a funding by each Revolving Lender of its risk participation in such Letter of Credit, and each Revolving Lender making such funding shall thereupon acquire a pro rata participation, to the extent
of its reimbursement, an interest in the claim of Issuing Lender against Borrower in respect of such payment and shall share in accordance with that pro rata participation, in any payment made by Borrower with respect to such claim. Any amounts made
available by a Revolving Lender under its risk participation shall be payable by Borrower upon demand of Administrative Agent, and shall bear interest at a rate per annum equal to the Default Rate. 
 (g) Obligations Absolute. The obligation of Borrower to pay to Issuing Lender the amount of any payment made by Issuing Lender under any Letter of
Credit shall be absolute, unconditional, and irrevocable. Without limiting the foregoing, Borrower’s obligation shall not be affected by any of the following circumstances: 
 (i) any lack of validity or enforceability of such Letter of Credit, this Agreement, or any other agreement or instrument relating
thereto; 
 (ii) any amendment or waiver of or any consent to departure from such Letter of Credit, this Agreement, or any
other agreement or instrument relating hereto or thereto; 
 (iii) the existence of any claim, setoff, defense, or other
rights which Borrower may have at any time against Issuing Lender, Administrative Agent or any Lender, any beneficiary of such Letter of Credit (or any persons or entities for whom any such beneficiary may be acting) or any other Person, whether in
connection with such Letter of Credit, this Agreement, or any other agreement or instrument relating thereto, or any unrelated transactions; 
 (iv) any demand, statement, or any other document presented under such Letter of Credit proving to be forged, fraudulent, invalid, or insufficient in any respect or any statement therein being untrue or inaccurate in
any respect whatsoever so long as any such document appeared to comply with the terms of the Letter of Credit; 
 (v) any
payment made by Issuing Lender under such Letter of Credit to any Person purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit of creditors, liquidator, receiver or other representative of or successor to any
beneficiary or any transferee of such Letter of Credit, including any arising in connection with any proceeding under any Debtor Relief Laws; 
 (vi) the existence, character, quality, quantity, condition, packing, value or delivery of any property purported to be represented by documents presented in connection with such Letter of Credit or for any difference
between any such property and the character, quality, quantity, condition, or value of such property as described in such documents; 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 (vii)
the time, place, manner, order or contents of shipments or deliveries of property as described in documents presented in connection with such Letter of Credit or the existence, nature and extent of any insurance relative thereto; 
 (viii) the solvency or financial responsibility of any party issuing any documents in connection with such Letter of Credit; 

(ix) any failure or delay in notice of shipments or arrival of any property; 
 (x) any error in the transmission of any message relating to such Letter of Credit not caused by Issuing Lender, or any delay or
interruption in any such message; 
 (xi) any error, neglect or default of any correspondent of Issuing Lender in connection
with such Letter of Credit; 
 (xii) any consequence arising from acts of God, wars, insurrections, civil unrest,
disturbances, labor disputes, emergency conditions or other causes beyond the control of Issuing Lender; 
 (xiii) so long as
Issuing Lender in good faith determines that the document appears to comply with the terms of the Letter of Credit, the form, accuracy, genuineness or legal effect of any contract or document referred to in any document submitted to Issuing Lender
in connection with such Letter of Credit; and 
 (xiv) any other circumstances whatsoever where Issuing Lender has acted in
good faith. 
 In addition, Borrower will promptly examine a copy of each Letter of Credit and amendments thereto delivered to it and, in the
event of any claim of noncompliance with Borrower’s instructions or other irregularity, Borrower will immediately notify Issuing Lender in writing. Borrower shall be conclusively deemed to have waived any such claim against Issuing Lender and
its correspondents unless such notice is given as aforesaid. 
 (h) Role of Issuing Lender. Each Revolving Lender and Borrower agree
that, in paying any drawing under a Letter of Credit, Issuing Lender shall not have any responsibility to obtain any document (other than any sight draft, certificates and documents expressly required by the Letter of Credit) or to ascertain or
inquire as to the validity or accuracy of any such document or the authority of the Person executing or delivering any such document. No Administrative Agent-Related Person nor any of the respective correspondents, participants or assignees of
Issuing Lender shall be liable to any Lender for any action taken or omitted in connection herewith at the request or with the approval of Revolving Lenders or Requisite Lenders, as applicable; any action taken or omitted in the absence of gross
negligence or willful misconduct; or the due execution, effectiveness, validity or enforceability of any document or instrument related to any Letter of Credit. Borrower hereby assumes all risks of the acts or omissions of any beneficiary or
transferee with respect to its use of any Letter of Credit; provided, however, that this assumption is not intended to, and shall not, preclude Borrower’s pursuing such rights and remedies as it may have against the beneficiary or
transferee at law or 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 under any other agreement. No
Administrative Agent-Related person, nor any of the respective correspondents, participants or assignees of Issuing Lender, shall be liable or responsible for any of the matters described in subsection (g) above. In furtherance and not in
limitation of the foregoing, Issuing Lender may accept documents that appear on their face to be in order, without responsibility for further investigation, regardless of any notice or information to the contrary, and Issuing Lender shall not be
responsible for the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or, the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be
invalid or ineffective for any reason. 
 (i) Applicability of ISP98 and UCP. Unless otherwise expressly agreed by Issuing Lender and
Borrower when a Letter of Credit is issued and subject to applicable laws, performance under Letters of Credit by Issuing Lender, its correspondents, and beneficiaries will be governed by, with respect to standby Letters of Credit, the rules of the
“International Standby Practices 1998” (ISP98) or such later revision as may be published by the International Chamber of Commerce (the “ICC”). 
 (j) Letter of Credit Fee. On each Applicable Payment Date, Borrower shall pay to Administrative Agent in arrears, for the account of each
Revolving Lender in accordance with its Pro Rata Share, a Letter of Credit fee equal to the Applicable Margin for Offshore Rate Loans on a per annum basis times the actual daily maximum amount available to be drawn under each Letter of Credit for
the period since the later of the Closing Date and the previous Applicable Payment Date. If there is any change in the Applicable Margin during any quarter, the actual daily amount shall be computed and multiplied by the Applicable Margin separately
for each period during such quarter that such Applicable Margin was in effect. 
 (k) Fronting Fee and Documentary and Processing Charges
Payable to Issuing Lender. On each Applicable Payment Date, Borrower shall pay to Administrative Agent for the sole account of Issuing Lender a fronting fee in an amount equal to 0.125% per annum on the daily average face amount of all
outstanding Letters of Credit, payable in arrears. In addition, Borrower shall pay directly to Issuing Lender, upon demand, for its sole account its customary documentary and processing charges in accordance with its standard schedule, as from time
to time in effect, for any Letter of Credit Action or other occurrence relating to a Letter of Credit for which such charges are customarily made. Such fees and charges are nonrefundable. 
 2.4. Prepayments. 
 (a)
Voluntary. Upon Requisite Notice to Administrative Agent not later than the Requisite Time therefor, Borrower may at any time and from time to time voluntarily prepay Loans in part in the Minimum Amount therefor or in full without premium or
penalty (but with the amounts set forth in Section 3.5); provided, however, that with respect to any voluntary prepayment of the Term Loan occurring anytime prior to the one (1) year anniversary of the Closing Date, Borrower shall
pay an additional amount of 1.0% of the principal amount of the Term Loan then being prepaid. Administrative Agent will promptly notify each Lender thereof and of such Lender’s Pro Rata Share of such prepayment. All voluntary prepayments of the
Term Loan shall be applied pro rata to the then remaining amortization payments due under the Term Loan. Borrower shall specify in its notice to the Administrative Agent whether such 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 prepayment is to be applied to
Revolving Loans or the Term Loan or both. If Borrower does not specify the application of such prepayment then the Administrative Agent shall apply the same pro rata in accordance with each Lender’s Pro Rata Share first to the Revolving
Loans and then to the Term Loans. 
 (b) Mandatory. In addition to the payments required by Section 2.6(b) hereof, Borrower shall
make mandatory prepayments of Loans as set forth below. Subject to Section 2.4(c) below, all such prepayments required under Sections 2.4(b)(ii) through (v) shall be applied pro rata to the then remaining amortization payments due
under the Term Loan. 
 (i) Exceeding Commitment. If for any reason the Revolving Outstandings exceed the combined
Revolving Commitments as in effect or as reduced because of any limitation set forth in this Agreement or otherwise, Borrower shall immediately prepay Revolving Loans in an aggregate amount equal to such excess. If the Administrative Agent notifies
the Borrower at any time that the Dollar Equivalent of the Revolving Outstandings denominated in Alternative Currencies at such time exceeds an amount equal to 105% of the Alternative Currency Sublimit then in effect, the Borrower shall, within two
(2) Business Days after receipt of such notice prepay Revolving Loans in an aggregate amount sufficient to reduce the Dollar Equivalent of such Revolving Outstandings as of such date of payment to an amount not to exceed 100% of the Alternative
Currency Sublimit then in effect. The Administrative Agent may, at any time and from time to time after the initial prepayment, request that additional prepayments be provided in order to protect against the results of exchange rate fluctuations.
Any prepayment of an Offshore Rate Loan shall be accompanied by all accrued interest thereon, together with the amounts set forth in Section 3.5. 
 (ii) Asset Sales. No later than the first Business Day following the date of receipt by Borrower or any of its Subsidiaries of any Net Asset Sale Proceeds (on the 271st day if the first proviso hereto applies),
Borrower shall prepay, subject to the provisions of Section 2.4(c) below, the Term Loans in an aggregate amount equal to such Net Asset Sale Proceeds; provided that, so long as no Event of Default shall have occurred and be continuing,
Borrower need not so apply such Net Asset Sale Proceeds so long as Borrower or one or more of its Subsidiaries invests such Net Asset Sale Proceeds within two hundred seventy (270) days of receipt thereof in assets of the general type used in
the business of Borrower and its Subsidiaries (including acquisitions of assets by way of stock purchase, merger or acquisition of assets of a company or business unit in compliance with Section 7.8); provided, further, pending any such
investment all such Net Asset Sale Proceeds shall be (x) applied to prepay Revolving Loans to the extent outstanding (without a reduction in Revolving Commitments) on the last day of the current Interest Period(s) thereof, or (y) invested
in Cash or Cash Equivalents and deposited in a segregated account of Borrower and held therein until such time as such Net Asset Sale Proceeds are applied in payment of such investment. Any prepayment of an Offshore Rate Loan shall be accompanied by
all accrued interest thereon, together with the amounts set forth in Section 3.5. 
 (iii) Insurance/Condemnation
Proceeds. No later than the first Business Day following the date of receipt by Borrower or any of its Subsidiaries (on the 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 271st day if the first
proviso hereto applies), or Administrative Agent as loss payee, of any Net Insurance/Condemnation Proceeds in excess of $3,000,000 from the Closing Date through the applicable date of determination, Borrower shall prepay, subject to the provisions
of Section 2.4(c) below, the Term Loan in an aggregate amount equal to such Net Insurance/Condemnation Proceeds in excess of $3,000,000 from the Closing Date; provided so long as no Event of Default shall have occurred and be continuing,
Borrower need not so apply such Net Insurance/Condemnation Proceeds so long as Borrower or one or more of its Subsidiaries invests such Net Insurance/Condemnation Proceeds within two hundred seventy (270) days of receipt thereof in assets of
the general type used in the business of Borrower and its Subsidiaries, which investment may include the repair, restoration or replacement of the applicable assets thereof; provided, further, pending any such investment all such Net
Insurance/Condemnation Proceeds, as the case may be, shall be (x) applied to prepay Revolving Loans to the extent outstanding (without a reduction in Revolving Commitments) on the last day of the current Interest Period(s) thereof, or
(y) invested in Cash or Cash Equivalents and deposited in a segregated account of Borrower and held therein until such time as such Net Asset Sale Proceeds are applied in payment of such investment. Any prepayment of an Offshore Rate Loan shall
be accompanied by all accrued interest thereon, together with the amounts set forth in Section 3.5. 
 (iv) Issuance
of Debt. On the date of receipt by Borrower or any of its Subsidiaries of any Cash proceeds from incurrence of any Indebtedness of Borrower or any of its Subsidiaries (other than with respect to any Indebtedness permitted to be incurred pursuant
to Section 7.1), Borrower shall prepay, subject to the provisions of Section 2.4(c) below, the Term Loans in an aggregate amount equal to 100% of such proceeds, net of underwriting discounts and commissions and other costs and expenses
associated therewith, including legal fees and expenses. Any prepayment of an Offshore Rate Loan shall be accompanied by all accrued interest thereon, together with the amounts set forth in Section 3.5. 
 (c) Term Lenders’ Right to Decline Certain Mandatory Prepayments. Each Term Lender has the right to decline requiring Borrower to pay to it
the mandatory prepayment(s) described in Sections 2.4(b)(ii), (iii), (iv) and (v) above. In the event some, but not all, of the Term Lenders decline any such prepayment, the amount prepaid shall be applied pro rata to the remaining
amortization payments of the Term Loan allocable to the Term Lenders who do not decline such prepayment. 
 2.5. Reduction or
Termination of Commitments. Upon Requisite Notice to Administrative Agent not later than the Requisite Time therefor, Borrower may at any time and from time to time, without premium or penalty, permanently and irrevocably reduce the
Revolving Commitments in a Minimum Amount therefor to an amount not less than the Revolving Outstandings at such time or terminate the Revolving Commitments. Any such reduction or termination shall be accompanied by payment of all accrued and unpaid
commitment fees with respect to the portion of the Revolving Commitments being reduced or terminated. Administrative Agent shall promptly notify Revolving Lenders of any such request for reduction or termination of the Revolving Commitments. Each
Revolving Lender’s Commitment shall be reduced by an amount equal to such Revolving Lender’s Pro Rata Share times the amount of such reduction. 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 2.6. Principal
and Interest. 
 (a) Except as otherwise provided hereunder, if not sooner paid, Borrower agrees to pay the outstanding principal
amount of each Loan on the Maturity Date. 
 (b) The Term Loan of each Lender shall be paid in installments equal to such Lender’s Pro
Rata Share of the aggregate principal amount of the installments of the Term Loan as follows: 
  

				
	 Payment Date
	  	Amount (in Dollars)
	 June 30, 2006
	  	$	250,000
	 September 30, 2006
	  	$	250,000
	 December 31, 2006
	  	$	250,000
	 March 31, 2007
	  	$	250,000
	 June 30, 2007
	  	$	250,000
	 September 30, 2007
	  	$	250,000
	 December 31, 2007
	  	$	250,000
	 March 31, 2008
	  	$	250,000
	 June 30, 2008
	  	$	250,000
	 September 30, 2008
	  	$	250,000
	 December 31, 2008
	  	$	250,000
	 March 31, 2009
	  	$	250,000
	 June 30, 2009
	  	$	250,000
	 September 30, 2009
	  	$	250,000
	 December 31, 2009
	  	$	250,000
	 March 31, 2010
	  	$	250,000
	 June 30, 2010
	  	$	250,000
	 September 30, 2010
	  	$	250,000
	 December 31, 2010
	  	$	250,000
	 March 31, 2011
	  	$	250,000
	 June 30, 2011
	  	$	250,000
	 September 30, 2011
	  	$	250,000
	 December 31, 2011
	  	$	250,000
	 March 30, 2012
	  	$	94,250,000

  

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	Credit Agreement	  	Epicor Software Corporation

  
 (c) Subject to
subsection (d) below, and unless otherwise specified herein, Borrower shall pay interest on the unpaid principal amount of each Loan (before and after default, before and after maturity, before and after judgment, and before and after the
commencement of any proceeding under any Debtor Relief Laws) from the date borrowed until paid in full (whether by acceleration or otherwise) on each Applicable Payment Date at a rate per annum equal to the interest rate determined in accordance
with the definition of such type of Loan, plus the Applicable Margin specified in the definition in this Agreement of Applicable Margin with respect to such type of Loan. 
 (d) Notwithstanding subsection (c) of this Section, while any Event of Default exists or after acceleration, Borrower shall pay interest (after as
well as before entry of judgment thereon to the extent permitted by law) on the principal amount of all outstanding Obligations, at the Default Rate. 
 2.7. Fees. 
 (a) Commitment Fee. Borrower shall pay to Administrative Agent (for the
account of each Revolving Lender according to its Pro Rata Share) the respective commitment fee (the “Commitment Fee”) set forth in the definition in this Agreement of “Applicable Margin”, calculated on the full
amount of the combined Revolving Commitments. The Commitment Fee shall accrue from the Closing Date until the Maturity Date and shall be calculated and payable quarterly in arrears on each Applicable Payment Date. The Commitment Fee shall accrue at
all times, including at any time during which one or more conditions in Section 4 are not met. 
 (b) Agency and Arrangement
Fees. Borrower shall pay to Administrative Agent and Arranger an administrative agency fee and a structuring and arrangement fee, respectively, in such amounts and on the Closing Date as set forth in a separate letter agreement dated
March 30, 2006 among Borrower, Administrative Agent and Arranger (the “Fee Letter”). Such fees are for the services to be performed by Administrative Agent in acting as Administrative Agent and for the services of Arranger in
structuring and arranging the credit facilities under this Agreement, respectively, and are fully earned on the date paid. Such fees are solely for Administrative Agent’s and Arranger’s own account and are nonrefundable. 
 2.8. Computation of Interest and Fees. Computation of interest on Base Rate Loans when the Base Rate is determined by KeyBank’s
“prime rate” shall be calculated on the basis of a year of 365 or 366 days, as the case may be, and the actual number of days elapsed. Computation of all other types of interest and all fees shall be calculated on the basis of a
year of 360 days and the actual number of days elapsed, which results in a higher yield to Lenders than a method based on a year of 365 or 366 days, or, in the case of interest in respect of Revolving Loans denominated in Alternative Currencies as
to which market practice differs from the foregoing, in accordance with such market practices. Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the
Loan or such portion is paid, provided that any Loan that is repaid on the same day on which it is made shall bear interest for one day. 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 2.9. Making
Payments. 
 (a) Except as otherwise provided herein, all payments by Borrower or any Lender hereunder shall be made to Administrative
Agent at Administrative Agent’s Office not later than the Requisite Time for such type of payment. All payments received after such Requisite Time shall be deemed received on the next succeeding Business Day. All payments shall be made in
immediately available funds in lawful money of the United States of America. All payments by Borrower shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff. 
 (b) Upon satisfaction of any applicable terms and conditions set forth herein, Administrative Agent shall promptly pay amounts received in accordance
with the prior subsection available in like funds as received, as follows: (i) if payable to Borrower, by crediting such account as Borrower may designate in writing to Administrative Agent from time to time, and (ii) if payable to any
Lender, by wire transfer to such Lender at its Lending Office. In the case of amounts held by Administrative Agent that are payable to Borrower, if any applicable terms and conditions are not so satisfied, Administrative Agent shall return any funds
it is holding that would otherwise be payable to Borrower to the Lenders making such funds available, without interest. 
 (c) Subject to the
definition of “Interest Period,” if any payment to be made by Borrower shall come due on a day other than a Business Day, payment shall instead be considered due on the next succeeding Business Day, and such extension of time shall be
reflected in computing interest and fees. 
 (d) Unless Borrower or any Lender has notified Administrative Agent prior to the date any
payment to be made by it is due, that it does not intend to remit such payment, Administrative Agent may, in its sole and absolute discretion, assume that Borrower or Lender, as the case may be, has timely remitted such payment and may, in its sole
and absolute discretion and in reliance thereon, make available such payment to the Person entitled thereto. If such payment was not in fact remitted to Administrative Agent in immediately available funds, then: 
 (i) if Borrower failed to make such payment, each Lender shall forthwith on demand repay to Administrative Agent the amount of such
assumed payment made available to such Lender, together with interest thereon in respect of each day from and including the date such amount was made available by Administrative Agent to such Lender to the date such amount is repaid to
Administrative Agent at the Federal Funds Rate; and 
 (ii) if any Lender failed to make such payment, Administrative Agent
shall be entitled to recover such corresponding amount on demand from such Lender together with interest on such corresponding amount in respect of each day from the date such corresponding amount was made available by Administrative Agent to
Borrower to the date such amount is paid to Administrative Agent, at a rate per annum equal to the 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 daily Federal Funds
Rate. If such Lender does not pay such corresponding amount forthwith upon Administrative Agent’s demand therefor, Administrative Agent promptly shall notify Borrower, and Borrower shall pay such corresponding amount to Administrative Agent
together with interest on such corresponding amount in respect of each day from the date such corresponding amount was made available by Administrative Agent to Borrower to the date such corresponding amount is recovered by Administrative Agent, at
a rate per annum equal to the interest rate applicable to such Borrowing. Nothing herein shall be deemed to relieve any Lender from its obligation to fulfill its Commitment or to prejudice any rights which Administrative Agent or Borrower may have
against any Lender as a result of any default by such Lender hereunder. 
 (e) If Administrative Agent or any Lender is required at any time
to return to Borrower, or to a trustee, receiver, liquidator, custodian, or any official under any proceeding under Debtor Relief Laws, any portion of a payment made by Borrower, each Lender shall, on demand of Administrative Agent, return its share
of the amount to be returned, plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal to the daily Federal Funds Rate. 
 2.10. Funding Sources. Nothing in this Agreement shall be deemed to obligate any Lender to obtain the funds for any Loan in any particular
place or manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for any Loan in any particular place or manner. 
 2.11. Collateral. Borrower’s Obligations are secured by or will be secured by the General Security Agreement and the Stock Pledge Agreements. 
 2.12. [Intentionally Reserved]. 
 2.13. Exchange Rates; Currency Equivalents. (a) The Administrative Agent shall determine the spot rates as of each Revaluation Date to be used for calculating Dollar Equivalent amounts of Revolving Outstandings
denominated in Alternative Currencies. Such spot rates shall become effective as of such Revaluation Date and shall be the spot rates employed in converting any amounts between the applicable currencies until the next Revaluation Date to occur.
Except for purposes of financial statements delivered by parties hereunder or calculating financial covenants hereunder or except as otherwise provided herein, the applicable amount of any currency for purposes of the Loan Documents shall be such
Dollar Equivalent amount as so determined by the Administrative Agent, which determination shall be conclusive in the absence of manifest error. 
 (b) Wherever in this Agreement in connection with a Borrowing, Conversion, Continuation or prepayment of a Revolving Loan, an amount, such as a required minimum or multiple amount, is expressed in Dollars, but such Borrowing or Revolving
Loan is denominated in an Alternative Currency, such amount shall be the relevant Alternative Currency equivalent of such Dollar amount (rounded to the nearest 1,000 units of such Alternative Currency), as determined by the Administrative Agent,
which determination shall be conclusive in the absence of manifest error. 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 2.14. Additional
Alternative Currencies. The Borrower may from time to time request that Offshore Rate Loans be made in a currency other than those specifically listed in the definition of “Alternative Currency” provided that such requested
currency otherwise meets the requirements set forth in such definition. Any such request shall be made to the Administrative Agent (which shall promptly notify each Revolving Lender thereof) not later than 11:00 a.m., Cleveland time, ten (l0)
Business Days prior to the date of the desired Extension of Credit. Each Revolving Lender shall notify the Administrative Agent, not later than 11:00 a.m., Cleveland time, five (5) Business pays after receipt of such request whether it
consents, in its sole discretion, to making such Offshore Rate Loans in such requested currency. Any failure by a Revolving Lender to respond to such request within the time period specified in the preceding sentence shall be deemed to be a refusal
by such Revolving Lender to make Offshore Rate Loans in such requested currency. If all the Revolving Lenders consent to making Offshore Rate Loans in such requested currency, the Administrative Agent shall so notify the Borrower and such currency
shall thereupon be deemed for all purposes to be an Alternative Currency hereunder. 
 SECTION III 
 TAXES, YIELD PROTECTION AND ILLEGALITY 
 3.1. Taxes. 
 (a) Any and all payments by Borrower to or for the account of Administrative Agent or any Lender under
any Loan Document shall be made free and clear of and without deduction for any and all present or future taxes, duties, levies, imposts, deductions, assessments, fees, withholdings or similar charges, and all liabilities with respect thereto,
excluding, in the case of Administrative Agent and each Lender, (i) taxes imposed on or measured by its net income, (ii) franchise taxes imposed on it (in lieu of net income taxes) by the jurisdiction (or any political subdivision thereof)
under the Laws of which Administrative Agent or such Lender, as the case may be, is organized or maintains a lending office; (iii) any branch profits tax imposed by the United States or any similar tax imposed by another jurisdiction in which
the Borrower is located; (iv) applicable withholding tax imposed by Sections 1441 and 1442 of the Code that is withheld by Administrative Agent from a payment to any Foreign Lender (as defined in Section 10.22 of this Agreement) pursuant
to Section 10.22; and (v) any penalties, interest, costs and expenses (including Attorney Costs) imposed on Administrative Agent or any Lender arising from the assertion by any Governmental Authority that Administrative Agent did not
properly withhold any tax or other amount from payments made in respect of any Foreign Lender (all such non-excluded taxes, duties, levies, imposts, deductions, assessments, fees, withholdings or similar charges, and liabilities being hereinafter
referred to as “Taxes”). If Borrower shall be required by any Laws to deduct any Taxes from or in respect of any sum payable under any Loan Document to Administrative Agent or any Lender (other than as a result of a breach by a
Foreign Lender of its obligations under Section 10.22 of this Agreement), (A) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under
this Section), Administrative Agent and such Lender receives an amount equal to the sum it would have received had no such deductions been made, (B) Borrower shall make such deductions, (C) Borrower shall pay the full amount deducted to
the relevant taxation authority or other authority in accordance with applicable Laws, and (D)
  

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	Credit Agreement	  	Epicor Software Corporation

  
 within thirty (30) days after the
date of such payment, Borrower shall furnish to Administrative Agent (who shall forward the same to such Lender) the original or a certified copy of a receipt evidencing payment thereof. 
 (b) In addition, Borrower agrees to pay any and all present or future stamp, court or documentary taxes and any other excise or property taxes or charges
or similar levies which arise from any payment made under any Loan Document or from the execution, delivery, performance, enforcement or registration of, or otherwise with respect to, any Loan Document (hereinafter referred to as “Other
Taxes”). 
 (c) Borrower agrees to indemnify, defend and hold Administrative Agent and each Lender harmless for (i) the full
amount of Taxes and Other Taxes (including any Taxes or Other Taxes imposed or asserted by any jurisdiction on amounts payable under this Section) paid by Administrative Agent and such Lender, and (ii) any liability (including penalties,
interest and expenses) arising therefrom or with respect thereto; provided that (A) Borrower shall not be obligated to indemnify the Administrative Agent or any Lender for any penalties described in clause (ii) above to the extent
the Administrative Agent or such Lender (1) had actual knowledge of the existence of the tax, interest, or expense, the non-payment of which gave rise to such penalties, and (2) failed to give Borrower notice of such tax, interest or
expense within ten (10) Business Days after the Administrative Agent or such Lender received actual knowledge of the existence thereof; and (B) except to the extent contemplated in clause (A) of this Section 3.1(c), nothing
contained in this subsection (c) shall be deemed to imply any obligation on the part of the Administrative Agent or any Lender to provide Borrower with the notice of any such tax, penalty, interest or expense. Payment under this subsection
(c) shall be made within thirty (30) days after the date the Lender or the Administrative Agent makes a demand therefor. 
 3.2.
Illegality. If any Lender determines that any Laws have made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending Office to make, maintain or fund Offshore Rate Loans,
or materially restricts the authority of such Lender to purchase or sell, or to take deposits of Dollars in the applicable offshore Dollar market, or to determine or charge interest rates based upon the Offshore Rate, then, on notice thereof by
Lender to Borrower through Administrative Agent, any obligation of such Lender to make Offshore Rate Loans shall be suspended until such Lender notifies Administrative Agent and Borrower that the circumstances giving rise to such determination no
longer exist. Upon receipt of such notice, Borrower shall, upon demand from such Lender (with a copy to Administrative Agent), prepay or Convert all Offshore Rate Loans of such Lender, either on the last day of the Interest Period thereof, if such
Lender may lawfully continue to maintain such Offshore Rate Loans to such day, or immediately, if Lender may not lawfully continue to maintain such Offshore Rate Loans. Each Lender agrees to designate a different Lending Office if such designation
will avoid the need for such notice and will not, in the good faith judgment of such Lender, otherwise be materially disadvantageous to such Lender. 
 3.3. Inability to Determine Rates. If, in connection with any Request for Extension of Credit involving any Offshore Rate Loan, Administrative Agent determines that (a) Dollar deposits are not being
offered to banks in the applicable offshore dollar market for the applicable amount and Interest Period of the requested Offshore Rate Loan, (b) adequate 
  

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 and reasonable means do not exist for
determining the underlying interest rate for such Offshore Rate Loan, or (c) such underlying interest rate does not adequately and fairly reflect the cost to Lender of funding such Offshore Rate Loan, Administrative Agent will promptly notify
Borrower and all Lenders. Thereafter, the obligation of all Lenders to make or maintain such Offshore Rate Loan shall be suspended until Administrative Agent revokes such notice. Upon receipt of such notice, Borrower may revoke any pending request
for a Borrowing of Offshore Rate Loans or, failing that, be deemed to have converted such request into a request for a Borrowing of Base Rate Loans in the amount specified therein. 
 3.4. Increased Cost and Reduced Return; Capital Adequacy. 
 (a) If any Lender determines that any Laws announced after the date hereof: 
 (i) impose on
such Lender any Tax, duty, or other charge with respect to any Offshore Rate Loans or its obligation to make Offshore Rate Loans (other than as a result of any change in the rate of applicable taxes imposed on or measured by net income); 

(ii) change the basis on which Taxes are imposed on any amounts payable to such Lender under this Agreement in respect of any Offshore
Rate Loans; 
 (iii) impose or modify any reserve, special deposit, or similar requirement (other than the reserve requirement
utilized in the determination of the Offshore Rate) relating to any extensions of credit or other assets of, or any deposits with or other liabilities or commitments of, such Lender (including its Commitment); or 
 (iv) impose on such Lender or on the offshore Dollar interbank market any other condition affecting this Agreement or any of such
extensions of credit or liabilities or commitments; 
 and the result of any of the foregoing is to increase the cost to such Lender of making, Converting
into, Continuing, or maintaining any Offshore Rate Loans or to reduce any sum received or receivable by such Lender under this Agreement with respect to any Offshore Rate Loans, then from time to time upon demand of such Lender (with a copy of such
demand to Administrative Agent), Borrower shall pay to such Lender such additional amounts as will compensate such Lender for such increased cost or reduction (except to the extent that such increased cost or reduction is an amount subject to
Section 3.1, in which case the sum received or receivable by such Lender shall be increased in accordance with the provisions of Section 3.1). 
 (b) If any Lender determines that any change in or the interpretation of any Laws announced after the date hereof have the effect of reducing the rate of return on the capital of such Lender or compliance by such
Lender (or its Lending Office) or any corporation controlling such Lender as a consequence of such Lender’s obligations hereunder (taking into consideration its policies with respect to capital adequacy and such Lender’s desired return on
capital), then from time to time upon demand of such Lender (with a copy of such demand to Administrative Agent), Borrower shall pay to such Lender such additional amounts as will compensate such Lender for such reduction; provided, however,
that Borrower shall not be 
  

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 required to pay additional amounts to
compensate any Lender for (i) any applicable withholding tax imposed by Sections 1441 and 1442 of the Code that is withheld by Administrative Agent from a payment to any Foreign Lender pursuant to Section 10.22, (ii) any reduction in
connection with any penalties, interest, costs and expenses (including Attorney Costs) arising from the assertion by any Governmental Authority that Administrative Agent did not properly withhold any tax or other amount from payments made in respect
of any Foreign Lender; or (iii) any change in the rate of applicable taxes imposed on or measured by net income. 
 3.5.
Breakfunding Costs. Upon demand of any Lender (with a copy to Administrative Agent) from time to time, Borrower shall promptly compensate such Lender for and hold such Lender harmless from any loss, cost or expense incurred by it as a
result of: 
 (a) any Continuation, Conversion, payment or prepayment of any Loan other than a Base Rate Loan on a day other than the last day
of the Interest Period for such Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise); or 
 (b) any
failure by Borrower (for a reason other than the failure of such Lender to make a Loan) to prepay, borrow, Continue or Convert any Loan other than a Base Rate Loan on the date or in the amount notified by Borrower; 
 including any loss of anticipated profits and any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain such Loan or from fees
payable to terminate the deposits from which such funds were obtained. Borrower shall also pay any customary administrative fees charged by such Lender in connection with the foregoing. 
 3.6. Matters Applicable to all Requests for Compensation. 
 (a) The Administrative Agent or any Lender claiming compensation under this Section III, Lender shall deliver to Borrower a certificate setting forth in reasonable detail the additional amount or amounts to be paid to
it hereunder, which shall be conclusive in the absence of clearly demonstrable error. In determining such amount, Lenders may use any reasonable averaging and attribution methods. For purposes of this Section III, a Lender shall be deemed to have
funded each Offshore Rate Loan at the Offshore Rate for such Loan by a matching deposit or other borrowing in the offshore Dollar interbank market, whether or not such Offshore Rate Loan was in fact so funded. 
 (b) Borrower shall not be obligated to pay any amount under this Section III which arose prior to the date which is 180 days preceding the date of such
demand or is attributable to periods prior to the date which is 180 days preceding the date of such demand; provided, however, that in the event any Law is enacted that retroactively imposes any cost or charge upon the Administrative Agent or
any Lender that would otherwise be a basis for compensation under Sections 3.1 through 3.5, the Administrative Agent or such Lender may make a demand for such compensation through and including the date which is 180 days after the date upon which
such Law takes effect. 
 (c) Upon any Lender making a claim for compensation under Section 3.1 or 3.4, Borrower may remove and replace
such Lender in accordance with Section 10.22. 
  

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 3.7.
Survival. All of Borrower’s obligations under this Section III shall survive for a period of one (1) year after the later of termination of the Commitments or payment in full of all Obligations; provided, however, that
the obligation of Borrower to make any payment under this Section III is contingent upon the receipt by Borrower of the certificate described in Section 3.6(a) within the later of (a) 180 days after the later of the repayment of all Loans,
the termination of all Letters of Credit and the termination of the Commitment, or (b) in the case of any Law retroactively imposing any cost or charge upon the Administrative Agent or any Lender, 180 days after the date upon which such Law
takes effect. 
 SECTION IV 
 CONDITIONS PRECEDENT TO EXTENSIONS OF CREDIT 
 4.1. Conditions of Initial Extension of Credit. The obligation
of each Lender to make its initial Extension of Credit hereunder is subject to satisfaction of the following conditions precedent: 
 (a)
Unless waived by Administrative Agent and Lenders, Administrative Agent’s receipt of the following, each of which shall be originals or facsimiles (followed promptly by originals) unless otherwise specified, each properly executed by a
Responsible Officer of Borrower, each dated on, or in the case of third-party certificates, recently before the Closing Date and each in form and substance satisfactory to Administrative Agent, Lenders and their legal counsel: 
 (i) executed counterparts of this Agreement, sufficient in number for distribution to Administrative Agent, Lenders and Borrower;

 (ii) executed originals of the Notes (to the extent so requested by any Lender) executed by Borrower in favor of each
Lender, each in a principal amount equal to such Lender’s Commitment; 
 (iii) executed counterparts of the General
Security Agreement in the form attached as Exhibit F hereto from each of Borrower and each Guarantor; 
 (iv) executed
counterparts of the Stock Pledge Agreement in the form attached as Exhibit E hereto; 
 (v) executed counterparts of
the Guaranty in the form attached as Exhibit G hereto from each Guarantor; 
 (vi) the original Fee Letter and the
original Disclosure Letter; 
 (vii) such certificates of resolutions or other action, incumbency certificates and/or other
certificates of Responsible Officers of Borrower (and each Guarantor) as Administrative Agent may require to establish the identities of and verify the authority and capacity of each such Responsible Officer thereof authorized to act as a
Responsible Officer thereof; 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 (viii)
such evidence as Administrative Agent and any Lender may reasonably require to verify that Borrower (and each Guarantor) is duly organized or formed, validly existing, in good standing and qualified to engage in business in Delaware and California,
including certified copies of Borrower’s (and each Guarantor’s) certificates of good standing and/or qualification to engage in business, tax clearance certificates, and the like; 
 (ix) a certificate signed by a Responsible Officer of Borrower certifying (A) that the representations and warranties made by
Borrower herein are true and correct on and as of the Closing Date (except to the extent such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date), (B) that
Borrower is in compliance with all the terms and provisions of the Loan Documents to which it is a party, and no Default or Event of Default shall have occurred and be continuing or result from such proposed Extension of Credit, and (C) that
there has been no event or circumstance since the date of the Audited Financial Statements which has a Material Adverse Effect; 
 (x) opinions of counsel to Borrower and any Subsidiary in form and substance satisfactory to Administrative Agent; 
 (xi) the Term Loans shall have received a rating of at least “B1” from Moody’s and “B+” from S&P at least five (5) days prior to the Closing Date; and 
 (xii) such other assurances, certificates, documents, consents or opinions as Administrative Agent, Issuing Lender or Requisite Lenders
reasonably may require. 
 (b) Any fees (including, without limitation, those set forth in the Fee Letter) required to be paid on or before
the Closing Date shall have been paid. 
 (c) Unless waived by Administrative Agent, Borrower shall have paid all Attorney Costs of
Administrative Agent to the extent invoiced prior to or on the Closing Date, plus such additional amounts of Attorney Costs as shall constitute its reasonable estimate of Attorney Costs incurred or to be incurred by it through the closing
proceedings (provided that such estimate shall not thereafter preclude final settling of accounts between Borrower and Administrative Agent). 
 4.2. Conditions to all Extensions of Credit. In addition to any applicable conditions precedent set forth elsewhere in this Section 4 or in Section 2, the obligation of each Lender to honor any
Request for Extension of Credit other than a Conversion or Continuation is subject to the following conditions precedent: 
 (a) the
representations and warranties of Borrower contained in Section 5 shall be correct on and as of the date of such Extension of Credit, except to the extent that such representations and warranties specifically refer to an earlier date;

  

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 (b) no Default or
Event of Default exists, or would result from such proposed Extension of Credit; 
 (c) Administrative Agent shall have timely received a
Request for Extension of Credit by Requisite Notice by the Requisite Time therefor; 
 (d) Administrative Agent shall have received the
certificate required by Section 6.2(b) of this Agreement for the calendar quarter immediately preceding the date of the Request for Extension of Credit (or, in the case of a Request for Extension of Credit made during the first ten
(10) Business Days of a quarter, Administrative Agent shall have received such certificate for the second calendar month preceding the date of the Request for Extension of Credit), and such certificate shall have certified that the Consolidated
Cash Balance of Borrower and its Subsidiaries equaled $20,000,000 or more; 
 (e) The sum of the Outstanding Obligations plus the
advances requested pursuant to the Request for Extension of Credit shall not exceed the Total Commitments; and 
 (f) Administrative Agent
shall have received, in form and substance satisfactory to it, such other assurances, certificates, documents or consents related to the foregoing as Administrative Agent and Requisite Lenders reasonably may require. 
 Each Request for Extension of Credit by Borrower shall be deemed to be a representation and warranty that the conditions specified in Sections 4.2(a) and
(b) have been satisfied on and as of the date of such Extension of Credit. 
 SECTION V 
 REPRESENTATIONS AND WARRANTIES 
 Borrower represents and warrants to Administrative Agent and Lenders that: 
 5.1. Existence and Qualification; Power;
Compliance with Laws. Borrower and each Guarantor is a corporation duly incorporated, validly existing and in good standing under the Laws of the state of its incorporation, has the corporate power and authority and the legal right to own,
lease and operate its properties and to conduct its business as currently conducted, and, in the case of the Borrower, is duly qualified and in good standing under the Laws of Delaware, California and, in the case of the Borrower and each Guarantor,
in all other jurisdictions in which it conducts business, except where the failure to be so qualified could not be reasonably expected to have a Material Adverse Effect, and is in compliance with all Laws except to the extent that noncompliance
could not be reasonably expected to have a Material Adverse Effect. Schedule 5.1 attached to the Disclosure Letter lists, as of the Closing Date, each Material Subsidiary and each First Tier Foreign Subsidiary of the Borrower. 
 5.2. Power; Authorization; Enforceable Obligations. Borrower and each Guarantor has the corporate power and authority and the legal right
to make, deliver and perform each Loan Document to which it is a party and Borrower and each Guarantor has the 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 corporate power and authority to
borrow hereunder and has taken all necessary action to authorize the borrowings on the terms and conditions of this Agreement and to authorize the execution, delivery and performance of this Agreement and the other Loan Documents to which it is a
party. No consent or authorization of, filing with, or other act by or in respect of any Governmental Authority, is required in connection with the borrowings hereunder or with the execution, delivery, performance, validity or enforceability of this
Agreement or any of the other Loan Documents. The Loan Documents have been duly executed and delivered by Borrower, and constitute a legal, valid and binding obligations of Borrower, enforceable against Borrower in accordance with their respective
terms. The Loan Documents to which any Guarantor is a party have been duly executed and delivered by each such Guarantor, and constitute a legal, valid and binding obligations of such Guarantor, enforceable against such Guarantor in accordance with
their respective terms. 
 5.3. No Legal Bar. The execution, delivery, and performance by Borrower and each Guarantor of the
Loan Documents to which it is a party and compliance with the provisions thereof have been duly authorized by all requisite action on the part of Borrower and each such Guarantor and do not and will not (a) violate or conflict with, or result
in a breach of, or require any consent under (i) any Organization Documents of Borrower or any of its Subsidiaries, (ii) any material applicable Laws, rules, or regulations or any order, writ, injunction, or decree of any Governmental
Authority or arbitrator, or (iii) any material Contractual Obligation of Borrower or any of its Subsidiaries or by which any of them or any of their property is bound or subject, (b) constitute a default under any such material agreement
or instrument, or (c) result in, or require, the creation or imposition of any Lien on any of the properties of Borrower or any of its Subsidiaries (other than the Liens granted in connection herewith). 
 5.4. Financial Statements; No Material Adverse Effect. 
 (a) The Audited Financial Statements (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein; (ii) fairly present in
all material respects the financial condition of Borrower and its Subsidiaries as of the date thereof and their results of operations for the period covered thereby in accordance with GAAP consistently applied throughout the period covered thereby,
except as otherwise expressly noted therein; and (iii) to the extent required by GAAP, show all material indebtedness and other liabilities, direct or contingent, of Borrower and its Subsidiaries as of the date thereof. 
 (b) Since the date of the Audited Financial Statements for the period ended December 31, 2004, there has been no event or circumstance which has a
Material Adverse Effect. 
 5.5. Litigation. Except as disclosed in the Disclosure Letter, no litigation, investigation or
proceeding of or before an arbitrator or Governmental Authority is pending or, to the best of knowledge of Borrower, threatened by or against Borrower or any of its Subsidiaries or against any of their properties or revenues which could reasonably
be expected to have a Material Adverse Effect. 
  

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 5.6. No
Default. Neither Borrower nor any of its Subsidiaries are in default under or with respect to any Contractual Obligation which could reasonably be expected to have a Material Adverse Effect, and no Default or Event of Default has occurred
and is continuing or will result from the consummation of this Agreement or any of the other Loan Documents, or the making of the Extensions of Credit hereunder. 
 5.7. Ownership of Property; Liens. Borrower and its Subsidiaries have valid fee or leasehold interests in all real property which they use in their respective businesses, and Borrower and its
Subsidiaries have good and marketable title to all their other property, and none of such property is subject to any Lien, except as permitted in Section 7.2. 
 5.8. Taxes. Borrower and its Subsidiaries have filed all material tax returns which are required to be filed, and have paid, or made provision for the payment of, all taxes with respect to the periods,
property or transactions covered by said returns, or pursuant to any assessment received by Borrower or its respective Subsidiaries, except (a) such taxes, if any, as are being contested in good faith by appropriate proceedings and as to which
adequate reserves have been established and maintained, and (b) immaterial taxes; provided, however, that in each case no material item or portion of property of Borrower or any of its Subsidiaries is in jeopardy of being seized, levied
upon or forfeited. 
 5.9. Margin Regulations; Investment Company Act; Public Utility Holding Company Act. 
 (a) Borrower is not engaged nor will it engage, principally or as one of its important activities, in the business of extending credit for the purpose of
“purchasing” or “carrying” “margin stock” within the respective meanings of each of the quoted terms under Regulation U of the Board of Governors of the Federal Reserve System as now and from time to time
hereafter in effect. No part of the proceeds of any Extensions of Credit hereunder will be used for “purchasing” or “carrying” “margin stock” as so defined or for any purpose which violates, or which would
be inconsistent with, the provisions of Regulations U or X of such Board of Governors. 
 (b) Neither Borrower nor any of its Subsidiaries
(i) is a holding company, or a subsidiary company of a holding company, or an “affiliate” of a “holding company” or of a “subsidiary company” of a “holding company,” within the
meaning of the Public Utility Holding Company Act of 1935, or (ii) is or is required to be registered as an “investment company” under the Investment Company Act of 1940. 
 5.10. ERISA Compliance. 
 (a)
Each Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and other applicable Laws. Each Plan or other employee benefit plan that is intended to qualify under Section 401(a) of the Code has received
a favorable determination or opinion letter from the IRS or an application for such a letter is currently being processed by the IRS with respect thereto and, to the best knowledge of Borrower, nothing has occurred which would prevent, or cause the
loss of, such qualification. Borrower and each ERISA Affiliate have made all required contributions to each Plan subject to Section 412 of the 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 Code, and no application for a funding
waiver or an extension of any amortization period pursuant to Section 412 of the Code has been made with respect to any Plan. There has been no prohibited transaction (which is not otherwise exempt under Section 4975 of the Code) or
violation of the fiduciary responsibility rules under ERISA with respect to any Plan that has or could reasonably be expected to have a Material Adverse Effect. 
 (b) (i) No ERISA Event has occurred or, to the best of knowledge of Borrower or any ERISA Affiliate, is reasonably expected to occur; (ii) no Pension Plan has any Unfunded Pension Liability;
(iii) neither Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Title IV of ERISA with respect to any Pension Plan (other than premiums due and not delinquent under Section 4007 of ERISA);
(iv) neither Borrower nor any ERISA Affiliate has incurred, or, to the best of knowledge of Borrower or any ERISA Affiliate, reasonably expects to incur, any liability (and, to the best of knowledge of Borrower or any ERISA Affiliate, no event
has occurred which, with the giving of notice under Section 4219 of ERISA, would result in such liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (v) neither Borrower nor any ERISA Affiliate has
engaged in a transaction that could be subject to Sections 4069 or 4212(c) of ERISA. 
 5.11. Intangible Assets. Borrower and
its Subsidiaries own, or possess the right to use, all trademarks, trade names, copyrights, patents, patent rights, franchises, licenses and other intangible assets that are used in the conduct of their respective businesses as now operated or could
obtain such right without causing a Material Adverse Effect, and none of such items, to the best knowledge of Borrower, conflicts with the valid trademark, trade name, copyright, patent, patent right or intangible asset of any other Person to the
extent that such conflict has or could reasonably be expected to have a Material Adverse Effect. 
 5.12. Compliance With Laws.
Borrower and its Subsidiaries are in compliance in all material respects with all material Laws that are applicable such Person. 
 5.13. Environmental Compliance. Borrower and its Subsidiaries conduct in the ordinary course of business a review of the effect of existing Environmental Laws and claims alleging potential liability or responsibility for
violation of any Environmental Law on their respective businesses, operations and properties, and as a result thereof Borrower has reasonably concluded that such Environmental Laws and claims do not, individually or in the aggregate, have a Material
Adverse Effect. 
 5.14. Insurance. The properties of Borrower and its Subsidiaries are insured with financially sound and
reputable insurance companies not Affiliates of Borrower, in such amounts, with such deductibles and covering such risks as are customarily carried by companies engaged in similar businesses and owning similar properties in localities where Borrower
or such Subsidiary operates. 
 5.15. Swap Obligations. Neither Borrower nor any of its Subsidiaries has incurred any
outstanding obligations under any Swap Contracts, other than Permitted Swap Obligations. Borrower has undertaken its own independent assessment of its consolidated assets, liabilities and commitments and has considered appropriate means of
mitigating and managing risks associated with such matters and has not relied on any swap counterparty or any Affiliate of any swap counterparty in determining whether to enter into any Swap Contract. 
  

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 5.16.
Disclosure. No statement, information, report, representation, or warranty made by Borrower in any Loan Document or furnished to Lender in connection with any Loan Document contains any untrue statement of a material fact or, when viewed
together with Borrower’s periodic reports filed under the Exchange Act and the rules and regulations promulgated thereunder, omits to state any material fact necessary to make the statements herein or therein not misleading. 
 5.17. Patriot Act. (a) Neither the Loans contemplated hereunder nor the use of the proceeds thereof will violate the USA
Anti-Terrorism Order, the Patriot Act, the Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or
executive order relating thereto. 
 (b) Neither the Borrower nor any Subsidiary (1) is a Person described or designated in the Specially
Designated Nationals and Blocked Persons List of the Office of Foreign Assets Control or in Section 1 of the Anti-Terrorism Order, or (2) to the best of the Borrower’s knowledge after reasonable investigation, engages in any dealings
or transactions with any such Person. The Borrower and its Subsidiaries are in compliance, in all material respects, with the USA Patriot Act. 
 (c) No part of the proceeds from the Loans hereunder will be used, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone
else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended. 
 SECTION VI 
 AFFIRMATIVE COVENANTS

 So long as any Obligation (excluding inchoate indemnity obligations) remains unpaid or unperformed, or any portion of the Commitments
remain outstanding, Borrower shall, and shall (except in the case of Borrower’s reporting covenants set forth in Sections 6.1 and 6.2(a)-(c)), cause each Subsidiary, to: 
 6.1. Financial Statements. Deliver to Administrative Agent and each Lender, in form and detail satisfactory to Administrative Agent and
Requisite Lenders: 
 (a) as soon as available, but in any event within ninety (90) days after the end of each fiscal year of Borrower, a
consolidated balance sheet, a consolidated statement of income and a consolidated cash flow statement of Borrower and its Subsidiaries as at the end of such fiscal year, setting forth in each case in comparative form the figures for the previous
fiscal year, all in reasonable detail, audited and accompanied by a report and 
  

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 opinion of an independent certified
public accountant of nationally recognized standing, which report and opinion shall be prepared in accordance with GAAP and shall not be subject to any qualifications or exceptions as to the scope of the audit nor to any qualifications and
exceptions not reasonably acceptable to Requisite Lenders; 
 (b) as soon as available, but in any event within forty-five (45) days
after the end of each of the first three (3) fiscal quarters of each fiscal year of Borrower, a consolidated balance sheet, a consolidated statement of income and a consolidated cash flow statement of Borrower and its Subsidiaries as at the end
of such fiscal quarter, and for such fiscal quarter and for the portion of Borrower’s fiscal year then ended, setting forth in each case in comparative form the figures for the corresponding fiscal quarter of the previous fiscal year and the
corresponding portion of the previous fiscal year, all in reasonable detail and certified by a Responsible Officer of Borrower as fairly presenting in all material respects the financial condition, results of operations and cash flows of Borrower
and its Subsidiaries in accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes; and 
 (c)
Reports required to be delivered pursuant to clauses (a) and (b) of this Section 6.1 shall be deemed to have been delivered on the date on which Borrower posts such reports on Borrower’s internet website at the website address
listed on Schedule 10.2 hereof or when such report is posted on the Securities and Exchange Commission’s website at www.sec.gov; provided that (x) Borrower shall notify Administrative Agent of the posting of any such new
material, and (y) in every instance Borrower shall provide paper copies of the Compliance Certificates required by clause (a) of Section 6.2 to Administrative Agent and each Lender. Except for the Compliance Certificates referred to
in such clause (a) of Section 6.2, Administrative Agent shall have no obligation to request the delivery or to maintain copies of the reports referred to in clauses (a) and (b) of this Section 6.1, and in any event shall
have no responsibility to monitor compliance by Borrower with any such request for delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such reports. 
 6.2. Certificates, Notices and Other Information. Deliver to Administrative Agent and each Lender, in form and detail satisfactory to
Administrative Agent and Requisite Lenders: 
 (a) within five (5) days after the delivery of the financial statements referred to in
Sections 6.1(a) and (b), a duly completed Compliance Certificate signed by a Responsible Officer of Borrower; 
 (b) quarterly on or before
the tenth Business Day of each calendar quarter, certified copies of reports or account statements signed by a Responsible Officer of Borrower detailing the total Consolidated Cash Balance held by Borrower and its Subsidiaries as of the last day of
the immediately preceding calendar quarter; 
 (c) promptly after the same are available, copies of each annual report, proxy or financial
statement or other report or communication sent to the stockholders of Borrower, and copies of all annual, regular, periodic and special reports and registration 
  

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 statements which Borrower may file or
be required to file with the Securities and Exchange Commission under Sections 13 or 15(d) of the Exchange Act, and not otherwise required to be delivered to Administrative Agent pursuant hereto; 
 (d) promptly after the occurrence thereof, notice of any Default or Event of Default; 
 (e) notice of any change in accounting policies or financial reporting practices by Borrower or any Subsidiary that is material to Borrower or to
Borrower and its Subsidiaries on a consolidated basis; 
 (f) promptly after the commencement thereof, notice of any litigation,
investigation or proceeding affecting Borrower where the reasonably expected damages to Borrower exceed the Threshold Amount, or in which injunctive relief or similar relief is sought, which relief, if granted, could reasonably be expected to have a
Material Adverse Effect; 
 (g) promptly after the occurrence thereof, notice of any Reportable Event with respect to any Plan or the intent
to terminate any Plan, or the institution of proceedings or the taking or expected taking of any other action to terminate any Plan or withdraw from any Plan; 
 (h) promptly after the occurrence thereof, notice of any Material Adverse Effect; 
 (i) not later than March 31 of each calendar year (commencing with March 31, 2007, a projected budget of the Borrower and its consolidated
Subsidiaries for such calendar year; and 
 (j) promptly, such other data and information as from time to time may be
reasonably requested by any Lender. 
 Each notice pursuant to this Section shall be accompanied by a statement of a Responsible Officer of
Borrower setting forth details of the occurrence referred to therein and stating what action Borrower has taken and proposes to take with respect thereto. The annual reports, proxies, financial statements or other communications required by
Section 6.2(c) above shall be deemed to have been delivered on the date on which Borrower posts such reports on Borrower’s website on the Internet at the website address listed on Schedule 10.2 hereof or when such report is posted on the
Securities and Exchange Commission’s website at www.sec.gov; provided that Borrower shall notify Administrative Agent of the posting of any such new material. No Lender shall have any obligation to request the delivery or to
maintain copies of the reports and communications referred to in Section 6.2(c), and in any event shall have no responsibility to monitor compliance by Borrower with any such request for delivery, and each Lender shall be solely responsible for
requesting delivery to it or maintaining its copies of such reports and communications. 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 6.3. Payment of
Taxes. Pay and discharge when due all material taxes, assessments, and governmental charges, except for any such tax, assessment, charge, or levy which is an Ordinary Course Lien under subsection (b) of the definition of such term.

 6.4. Preservation of Existence. Preserve and maintain its existence, licenses, permits, rights, franchises and privileges
necessary or desirable in the normal conduct of its business, except (i) as permitted by Section 7.3, or (ii) where failure to do so would not reasonably be expected to have a Material Adverse Effect. 
 6.5. Maintenance of Properties. Maintain, preserve and protect all of its material properties and equipment necessary in the operation of
its business in good order and condition, subject to wear and tear in the ordinary course of business, and not permit any waste of its properties, except where failure to do so would not reasonably be expected to have a Material Adverse Effect.

 6.6. Maintenance of Insurance. Maintain liability and casualty insurance with responsible insurance companies satisfactory
to the Requisite Lenders in such amounts and against such risks as is customary for similarly situated businesses. 
 6.7. Compliance
With Laws. 
 (a) Comply with the requirements of all applicable Laws and orders of any Governmental Authority, noncompliance with
which would reasonably be expected to have a Material Adverse Effect. 
 (b) Conduct its operations and keep and maintain its property in
material compliance with all Environmental Laws. 
 6.8. Inspection Rights. At any time during regular business hours and as
often as reasonably requested upon reasonable notice, permit Administrative Agent or any Lender, or any employee, agent or representative thereof, to examine, audit and make copies and abstracts from Borrower’s records and books of account and
to visit and inspect its properties and to discuss its affairs, finances and accounts with any of its officers and key employees, and, upon request, furnish promptly to Administrative Agent or any Lender true copies of all financial information and
internal management reports made available to their senior management. Notwithstanding any provision of this Agreement to the contrary, so long as no Default or Event of Default shall have occurred and be continuing, neither Borrower nor any of its
Subsidiaries shall be required to disclose, permit the inspection, examination, photocopying or making extracts of, or discuss, any document, information or other matter that (i) constitutes non-financial trade secrets or non-financial
proprietary information, or (ii) the disclosure of which to any Lender, or their designated representative, is then prohibited by law or any agreement binding on Borrower or any of its Subsidiaries that was not entered into by Borrower or any
such Subsidiary for the purpose of concealing information from the Lenders. Borrower shall, however, furnish to Administrative Agent such information concerning Borrower’s intellectual property (including, without limitation, application and
registration numbers for any filings in connection with such intellectual property) as is reasonably necessary to permit Administrative Agent (on behalf of itself and the other Lenders) to perfect a security interest in such intellectual property.

  

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	Credit Agreement	  	Epicor Software Corporation

  
 6.9. Keeping of
Records and Books of Account. Keep records and books of account adequate to prepare financial statements in conformity with GAAP, consistently applied, and in material conformity with all applicable requirements of any Governmental Authority
having regulatory jurisdiction over Borrower or any applicable Subsidiary. 
 6.10. Compliance with ERISA. Cause, and cause
each of its ERISA Affiliates to: (a) maintain each Plan in compliance in all material respects with the applicable provisions of ERISA, the Code and other applicable Laws; (b) to take all actions to cause each Plan which is qualified under
Section 401(a) of the Code to maintain such qualification; and (c) make all required contributions to any Plan subject to Section 412 of the Code. 
 6.11. Compliance With Agreements. Promptly and fully comply with all Contractual Obligations to which any one or more of them is a party, except for any such Contractual Obligations (a) the
nonperformance of which would not cause a Default or Event of Default, (b) then being contested by any of them in good faith by appropriate proceedings, or (c) if the failure to comply therewith could not reasonably be expected to have a
Material Adverse Effect. 
 6.12. Stock Pledge Agreement. Within forty-five (45) days of the Closing Date (or such later
deadline as may hereinafter be agreed to between Administrative Agent and Borrower, but in no event to exceed ninety (90) days from the Closing Date), Borrower shall provide to Administrative Agent a Stock Pledge Agreement or other applicable
document in the form and substance reasonably satisfactory to Administrative Agent, fully executed on behalf of Borrower, and take such other actions as are necessary to pledge sixty-six and 66/100ths percent (66.66%) of its holdings of Scala
Business Solutions N.V. (“Scala”) stock, or of the stock of the Subsidiary that acquired Scala stock, if that is the case, and deliver legal opinions of counsel to Borrower and its Subsidiary in form and substance satisfactory to
Administrative Agent. 
 6.13. Material Subsidiaries. 
 (a) In the event that Borrower creates or acquires a domestic Material Subsidiary, Borrower shall within forty-five (45) days (unless a longer period
is agreed to by Administrative Agent) (i) cause such Material Subsidiary (A) to execute and deliver a Guaranty, in form and substance satisfactory to Administrative Agent, in favor of Administrative Agent (for the benefit of each Lender in
accordance with its Pro Rata Share), and (B) to execute and deliver a security agreement, substantially in the form of the General Security Agreement, granting a security interest in its assets to secure the Guaranty; (ii) pledge to
Administrative Agent (for the benefit of each Lender in accordance with its Pro Rata Share) the ownership interests in such Material Subsidiary pursuant to a pledge agreement substantially in the form of the Stock Pledge Agreement; and
(iii) deliver to Administrative Agent (for the benefit of each Lender in accordance with its Pro Rata Share) the outstanding shares certificates (or other evidence of its equity) evidencing such pledged ownership interests. 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 (b) In the event that
Borrower creates or acquires a First Tier Foreign Subsidiary, Borrower shall within ninety (90) days (unless a longer period is agreed to by Agent) (i) pledge to Administrative Agent (for the benefit of each Lender in accordance with its
Pro Rata Share) sixty-six and 66/100ths percent (66.66%) of the ownership interests in such foreign Material Subsidiary owned by Borrower pursuant to a pledge agreement substantially in the form of the Stock Pledge Agreement; (ii) deliver
to Administrative Agent (for the benefit of each Lender in accordance with its Pro Rata Share) the outstanding shares certificates (or other evidence of its equity) evidencing such pledged ownership interests; and (iii) take such further
actions as Administrative Agent requests to perfect the security interest in such pledged ownership interests. 
 6.14. Use of
Proceeds. Use the proceeds of Extensions of Credit for lawful general corporate purposes including working capital, share repurchase and general corporate purposes, including Acquisitions, not otherwise in contravention of this Agreement.

 6.15. Rating. Maintain ratings in respect of the credit facilities hereunder with each of S&P and Moody’s and shall
pay all fees and costs in respect thereof. For avoidance of doubt, the Borrower shall not have any obligation to maintain any particular minimum rating in respect of such credit facilities. 
 SECTION VII 
 NEGATIVE COVENANTS 
 So long as any Obligations remain unpaid or unperformed, or any portion of the Commitments remain outstanding, Borrower shall not, nor shall it permit
any Subsidiary to, directly or indirectly: 
 7.1. Indebtedness. Create, incur, assume or suffer to exist any indebtedness
except for the following (“Permitted Indebtedness”): 
 (a) Indebtedness under this Agreement; 
 (b) Indebtedness outstanding on the date hereof and listed on the Disclosure Letter and any refinancings, refundings, renewals or extensions thereof,
provided that (i) the amount of such Indebtedness is not increased at the time of such refinancing, refunding, renewal or extension except by an amount equal to the premium or other amount paid, and fees and expenses incurred, in
connection with such refinancing and by an amount equal to any utilized commitments thereunder, and (ii) the weighted average life of the principal payments pursuant to such refinanced, refunded, renewed or extended Indebtedness shall be no
shorter than the weighted average life of such payments pursuant to such Indebtedness immediately prior to such refinancing, refunding, renewal or extension; 
 (c) Ordinary Course Indebtedness; 
 (d) Indebtedness of Borrower and its Subsidiaries under loans and Capital Leases incurred by Borrower or any of its Subsidiaries, or in existence at the time any 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 Person becomes a Subsidiary of
Borrower, to finance the acquisition by such Person of real property, improvements, fixtures, equipment or other fixed assets (together with attachments, ascensions, additions, “soft costs” and proceeds thereof), provided
that in each case, (i) such Indebtedness is incurred by such Person at the time of, or not later than six (6) months after, the acquisition by such Person of the property so financed, (ii) such Indebtedness does not exceed the
purchase price of the property so financed, and (iii) such Indebtedness shall not exceed $10,000,000 in the aggregate at any time; 
 (e) Indebtedness of Borrower and any of its Subsidiaries under Synthetic Lease Obligations; 
 (f) Indebtedness of Borrower and its
Subsidiaries under initial or successive refinancings, refundings, renewals or extensions of any Indebtedness permitted by subsections (d) and (e) above, provided that (i) the amount of such Indebtedness is not increased at the
time of such refinancing, refunding, renewal or extension except by an amount equal to the premium or other amount paid, and fees and expenses incurred, in connection with such refinancing, and (ii) the weighted average life of the principal
payments pursuant to such refinanced, refunded, renewed or extended Indebtedness shall be no shorter than the weighted average life of such payments pursuant to such Indebtedness immediately prior touch refinancing, refunding, renewal or extension;

 (g) Indebtedness of Borrower to any of Borrower’s Subsidiaries, Indebtedness of any of Borrower’s Subsidiaries to Borrower or
Indebtedness of any of Borrower’s Subsidiaries to any of Borrower’s other Subsidiaries; 
 (h) Subordinated Debt of Borrower to any
Person, provided that (A) such Indebtedness contains subordination provisions as reasonably approved by Administrative Agent; and (B) the maturity date of the Subordinated Debt shall not be earlier than the Business Day next
following the Term Loan Maturity Date; and 
 (i) other Indebtedness not included in (a) through (h) above and not exceeding, in
the aggregate at any time, 10% of the total consolidated assets of Borrower and its Subsidiaries determined as of the end of the most recent fiscal quarter. 
 7.2. Liens. Incur, assume or suffer to exist, any Lien upon any of its property, assets or revenues, whether now owned or hereafter acquired, except for the following (“Permitted
Liens”): 
 (a) Liens existing on the date hereof and listed on the Disclosure Letter and any renewals or extensions thereof,
provided that the property covered thereby is not increased and any renewal or extension of the obligations secured or benefited thereby is permitted by Section 7.1(a); 
 (b) Ordinary Course Liens; 
 (c) Liens
securing Investments which constitute Permitted Investments under Section 7.5(d); 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 (d) Liens on the
property or assets of any Person which becomes a Subsidiary of Borrower after the date of this Agreement or acquired after the date of this Agreement, provided that (i) such Liens exist at the time such Person became a Subsidiary or the
assets were acquired for the Permitted Indebtedness, and (ii) such Liens were not created in contemplation of the acquisition of such Person or such acquisition of assets; 
 (e) Rights of vendors or lessors under conditional sale agreements, Capital Leases or other agreements relating to indebtedness described in
Section 7.1(d) or other title retention agreements, provided that in each case, (i) such rights secure or otherwise relate to Permitted Indebtedness, (ii) such rights do not extend to any property other than property acquired
with the proceeds of such Permitted Indebtedness (together with accessions, additions, replacements and proceeds thereof), and (iii) such rights do not secure any Indebtedness other than Permitted Indebtedness; 
 (f) Liens securing Indebtedness and any related obligations of Borrower or any of its Subsidiaries which constitutes Permitted Indebtedness under
Section 7.1(f) (or refinancings of such Indebtedness under Section 7.1(g)), provided that such Liens cover only those assets subject to Synthetic Lease Obligations (together with accessions, additions, replacements and proceeds
thereof); 
 (g) Liens incurred in connection with leases, subleases, licenses and sublicenses granted to Persons not interfering in any
material respect with the business of Borrower and its Subsidiaries and any interest or title of a lessee or licensee under any such leases, subleases, licenses or sublicenses; 
 (h) Liens arising in connection with judgments not constituting an Event of Default pursuant to Section 8.1(h); and 
 (i) Liens not otherwise permitted hereunder on the property or assets of Borrower and any of its Subsidiaries securing (i) borrowed money
Indebtedness, or (ii) all obligations of Borrower arising other than in connection with any securitization which are evidenced by bonds, debentures, notes or other similar instruments, but only in the event that there is no Default or Event of
Default existing at the time of incurrence of such lien or immediately thereafter. 
 7.3. Fundamental Changes. Merge or
consolidate with or into any Person or liquidate, wind-up or dissolve itself, or permit or suffer any liquidation or dissolution or sell all or substantially all of its assets, except that: 
 (a) any Subsidiary may merge with (i) Borrower, provided that Borrower shall be the continuing or surviving corporation, (ii) any one or
more Subsidiaries, and (iii) any joint venture, partnership or other Person, so long as such joint venture, partnership and other Person will, as a result of making such merger and all other contemporaneous related transactions, become a
Subsidiary; 
 (b) any Subsidiary may sell or transfer all or substantially all of its assets (through voluntary liquidation, dissolution or
winding up or otherwise), to Borrower or to another Subsidiary; 
  

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 (c) Borrower may merge
into or consolidate with any other Person, provided that (i) Borrower is the surviving corporation, and (ii) immediately after giving effect to such merger or consolidation, no Default or Event of Default shall have occurred and be
continuing; and 
 (d) any Subsidiary may merge or consolidate with or into any other Person or sell all or substantially all of its assets
to the extent such transaction is a Disposition otherwise permitted under Section 7.4 or an Investment otherwise permitted under Section 7.5 and immediately after giving effect to such merger or consolidation; no Default or Event of
Default shall have occurred and be continuing. 
 7.4. Dispositions. Make any Dispositions, except: 
 (a) Ordinary Course Dispositions; and 
 (b)
Dispositions permitted by Section 7.3. 
 7.5. Investments. Make any Investments, except for the following
(“Permitted Investments”): 
 (a) Investments existing on the Closing Date; 
 (b) Ordinary Course Investments; 
 (c)
Investments permitted by Section 7.1 or Section 7.3; 
 (d) Investments arising from rights received by Borrower and its
Subsidiaries upon the required payment of any permitted contingent obligations of Borrower and its Subsidiaries; 
 (e) Investments in the
nature of Acquisitions, provided that (i) immediately after the Acquisition Borrower and its Subsidiaries will meet the financial covenants set forth in Section 7.12 on a pro forma basis, (ii) the Acquisition is not in the
nature of a hostile takeover, (iii) after giving effect to the Acquisition, there would be no breach under Section 7.8, and (iv) the purchase price for all Acquisitions made prior to the Term Loan Maturity Date shall not constitute,
in the aggregate, Cash payments of more than USD$100,000,000; 
 (f) Investments of Borrower and its Subsidiaries in Swap Contracts,
provided that all such arrangements are entered into in connection with bona fide hedging operations and not for speculation; and 
 (g) other Investments not exceeding, in the aggregate at any time, five percent (5%) of the total consolidated assets of Borrower and its Subsidiaries determined as of the end of the most recent fiscal quarter. 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 7.6. Restricted
Payments. Make any Restricted Payments, except as follows: 
 (a) Borrower or any Subsidiary, as applicable, may pay dividends or
other distributions (i) payable solely in shares of capital stock of Borrower, or (ii) payable by a Subsidiary to Borrower or to another Subsidiary; 
 (b) Borrower may distribute rights pursuant to a shareholder rights plan or redeem such rights, provided that such redemption is in accordance with the terms of such shareholder rights plan; 
 (c) Borrower may make Restricted Payments in connection with or pursuant to any of its employee benefits plans or in connection with the employment,
termination or compensation of its employees, officers or directors; 
 (d) Borrower may declare or pay any dividends in respect of its
Equity Securities or purchase or redeem shares of its Equity Securities, including pursuant to one or more stock repurchase programs or make distributions to shareholders of otherwise permitted hereunder; provided that (i) no Default or
Event of Default shall have occurred and be continuing, (ii) after giving effect to any such repurchases Borrower shall be in compliance with Section 7.12; and (iii) when combined with the amount of all dividends, purchases or
redemptions made under Section 7.6(e), the total of all such purchases of Equity Securities shall not exceed the sum of USD$10,000,000 in the aggregate over the life of this Agreement; 
 (e) Any Subsidiary of Borrower may declare or pay any dividends in respect of its Equity Securities or purchase or redeem shares of its Equity
Securities, including pursuant to one or more stock repurchase programs or make distributions to shareholders not otherwise permitted hereunder, provided that (i) the aggregate amount paid or distributed in any period of four consecutive
quarters (excluding any amounts covered by subsection (b) above) does not exceed 5% of consolidated assets as determined as of the fiscal quarter immediately preceding the date of determination; and (ii) when combined with the amount of
all purchases of Equity Securities made under Section 7.6(d), the total of all such dividends, purchases or redemptions shall not exceed the sum of USD$10,000,000 in the aggregate in the aggregate over the life of this Agreement; and

 (f) Borrower may repurchase fractional shares of capital stock arising out of stock dividends, splits or combinations, business
combinations or conversion of convertible securities. 
 7.7. ERISA. At any time engage in a transaction which could be subject
to Sections 4069 or 4212(c) of ERISA, or permit any Pension Plan to (a) engage in any non-exempt “prohibited transaction” (as defined in Section 4975 of the Code); (b) fail to comply with ERISA or any other applicable
Laws; or (c) incur any material “accumulated funding deficiency” (as defined in Section 302 of ERISA), which, with respect to each event listed above, has a Material Adverse Effect. 
 7.8. Change In Nature of Business. Engage, either directly or indirectly through Affiliates or Acquisitions in any line of business other
than the enterprise software business, any other business incidental or reasonably related thereto, or any businesses that are, as determined by the Board of Directors of Borrower, appropriate extensions thereof. 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 7.9.
Transactions with Affiliates. Enter into any transaction of any kind with any Affiliate (other than transactions among Borrower or any of its Subsidiaries and any Subsidiary) of Borrower other than arm’s-length transactions with
Affiliates that are otherwise permitted hereunder and except as follows: 
 (a) reasonable and customary fees in the industry paid to members
of the board of directors (or similar governing body) of Borrower or its Subsidiaries; and 
 (b) reasonable compensation arrangements and
benefit plans for officers and other employees of Borrower and its Subsidiaries entered into or maintained in the ordinary course of business; provided that such transactions do not have a Material Adverse Effect on Borrower or any
Subsidiary. 
 7.10. Use of Proceeds. Borrower shall not, and shall not suffer or permit any Subsidiary to, use any portion of
the Loan proceeds or any Letter of Credit, directly or indirectly, (i) for any Acquisition unless such Acquisition has been approved in writing by the board of directors or equivalent governing body of the acquiree, or (ii) to acquire any
security in any transaction that is subject to Section 13 (other than an Investment Transaction) or Section 14 of the Exchange Act unless, prior to the time such transaction becomes subject to such Section 13 or 14, the board of
directors or other applicable governing body of the Person that is the issuer of such securities has adopted a resolution approving such transaction and approving any “change in control” with respect to such Person whereby Borrower
or such Subsidiary may acquire control of such Person. For purposes of this Section 7.10, (x) an “Investment Transaction” means a transaction subject to Section 13(d), but not Section 16, of the Exchange Act,
provided that in connection with such transaction Borrower or its Subsidiary (as the case may be) has reported and at all times continues to report to the Securities Exchange Commission that such transaction is undertaken for investment
purposes only and not for any of the purposes specified in clauses 4(a) through (j), inclusive, of the special instructions for complying with Schedule 13D under the Exchange Act, and (y) “change in control” means, for any
Person, an Acquisition with respect to such Person. 
 7.11. Certain Indebtedness Payments, Etc. Neither Borrower nor any of
its Subsidiaries shall (i) pay, prepay, redeem, purchase, defease or otherwise satisfy in any manner prior to the scheduled payment thereof any Subordinated Debt except as otherwise permitted under this Section 7.11; or (ii) or amend,
modify or otherwise change the terms of any document, instrument or agreement evidencing Subordinated Debt such that such amendment, modification or change would (a) cause the outstanding aggregate principal amount of all such Subordinated Debt
so amended, modified or changed to be increased (except as a consequence of the deferral of cash interest payments by adding such payments to the principal amount thereof) as a consequence of such amendment, modification or change, (b) increase
the interest rate applicable thereto, or (c) accelerate the scheduled payment thereof. 
  

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	Credit Agreement	  	Epicor Software Corporation

  
 7.12. Financial
Covenants. 
 (a) Minimum Latest Twelve Months Consolidated EBITDA. Borrower shall not permit Consolidated EBITDA, determined
as of the last day of any fiscal quarter of Borrower commencing with the fiscal quarter ending December 31, 2005 (measured on a rolling four quarter basis for the four fiscal quarters ending on such dates), to be less than the following:

  

				
	 For the twelve (12) month period ending:
	  	 Consolidated EBITDA
 (Dollars)

	 December 31, 2005
	  	$	30,000,000
	 March 31, 2006
	  	$	32,500,000
	 June 30, 2006
	  	$	35,000,000
	 September 30, 2006
	  	$	37,500,000
	 December 31, 2006
	  	$	40,000,000
	 March 31, 2007
	  	$	42,500,000
	 June 30, 2007
	  	$	45,000,000
	 September 30, 2007
	  	$	47,500,000
	 December 31, 2007
	  	$	50,000,000
	 March 31, 2008
	  	$	52,500,000
	 June 30, 2008
	  	$	55,000,000
	 September 30, 2008
	  	$	57,500,000
	 December 31, 2008
	  	$	60,000,000
	 March 31, 2009
	  	$	62,500,000
	 June 30, 2009
	  	$	65,000,000
	 September 30, 2009
	  	$	67,500,000
	 December 31, 2009
	  	$	70,000,000
	 March 31, 2010
	  	$	72,500,000
	 June 30, 2010 and Thereafter
	  	$	75,000,000

 (b) Maximum Adjusted Leverage Ratio. Borrower shall not permit the Adjusted Leverage Ratio,
determined as of the last day of any fiscal quarter of Borrower (measured on a rolling four quarter basis), to be greater than 3.00 to 1.00. 
 (c) Minimum Fixed Charge Coverage Ratio. Borrower shall not permit the Fixed Charge Coverage Ratio, determined as of the last day of any fiscal quarter of Borrower (i) ending on or before December 31, 2009, to be less than
3.00 to 1.00, and (ii) thereafter, to be less than 2.50 to 1.00. 
  

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 (d) Minimum
Unrestricted Cash. Borrower shall not permit Borrower’s Consolidated Cash Balance at any time through the Term Loan Maturity Date to fall below USD$20,000,000. The Consolidated Cash Balance covenants set forth in this Section 7.12(d)
shall be tested quarterly in accordance with the reports to be delivered to Administrative Agent pursuant to Section 6.2(b) of this Agreement. 
 7.13. Accounting Changes. Change (i) its fiscal year (currently January 1 to December 31), or (ii) its accounting practices except as permitted by GAAP. 
 SECTION VIII 
 EVENTS OF DEFAULT AND
REMEDIES 
 8.1. Events of Default. Any one or more of the following events shall constitute an Event of Default:

 (a) Borrower fails to pay any principal on any Outstanding Obligation (other than fees) as and on the date when due; or 
 (b) Borrower fails to pay any interest on any Outstanding Obligation or any fees specified in Sections 2.3 and 2.7 due hereunder within five
(5) Business Days after the date when due; or fails to pay any other fees or amount payable to Administrative Agent or any Lender under any Loan Document within ten (10) Business Days after the date due; or 
 (c) Any default occurs in the observance or performance of any agreement contained in Section 7; or 
 (d) Any default occurs in the observance or performance of any agreement contained in Section 6.1 and such default continues for five (5) days;
or 
 (e) The occurrence of an Event of Default (as such term is or may hereafter be specifically defined in any other Loan Document) under
any other Loan Document; or Borrower fails to perform or observe any other covenant or agreement (not specified in subsections (a), (b) (c) or (d) above) contained in any Loan Document on its part to be performed or observed and such
failure continues for thirty (30) days; or 
 (f) Any representation or warranty in any Loan Document proves to have been incorrect in
any material respect when made or deemed made; or 
 (g) Borrower or any Subsidiary (x) defaults on any payment when due, which remains
uncured beyond any applicable cure period, of principal or interest on any Indebtedness (other than Indebtedness hereunder) having an aggregate principal amount in excess of the Threshold Amount, or (y) defaults in the observance or performance
of any other agreement or covenant relating to any Indebtedness (other than Indebtedness hereunder) or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event shall occur, the effect of which default or
other event is to cause, or to permit the holder or holders of such Indebtedness (or a trustee or agent on 
  

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 behalf of such holder or holders or
beneficiary or beneficiaries) to cause, with the giving of notice if required, any Indebtedness in excess of the Threshold Amount to become payable or cash collateral in respect thereof to be demanded on account of such default or other event; or
(ii) the occurrence under any Swap Contract of an Early Termination Date (as defined in such Swap Contract) resulting from (x) any event of default under such Swap Contract as to which Borrower or any Subsidiary is the Defaulting Party (as
defined in such Swap Contract) or (y) any termination event under any Swap Contract (as defined therein) as to which Borrower or any Subsidiary is an affected party (as so defined) (other than termination events resulting solely from changes in
the value of Borrower’s stock price or other rates, prices or indices underlying any such Swap Contract), and as to which, in either event, the Swap Termination Value owed by Borrower or such Subsidiary as a result thereof is greater than the
Threshold Amount; or 
 (h) Except as otherwise permitted in Section 10.1(c), any Loan Document, at any time after its execution and
delivery and for any reason other than the agreement of all Lenders or satisfaction in full of all the Obligations, ceases to be in full force and effect or is declared by a court of competent jurisdiction to be null and void, invalid or
unenforceable in any respect; or Borrower or any Guarantor denies that it has any or further liability or obligation under any Loan Document, or purports to revoke, terminate or rescind any Loan Document except as otherwise permitted
Section 10.1(c); or 
 (i) A final judgment against Borrower or any Subsidiary is entered for the payment of money in excess of the
Threshold Amount, or any non-monetary final judgment is entered against Borrower or any Subsidiary which has a Material Adverse Effect and such judgment is not stayed within thirty (30) days. 
 (j) Borrower or any of its Material Subsidiaries institutes or consents to the institution of any proceeding under Debtor Relief Laws, or makes an
assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or for all or any material part of its property; or any
receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed without the application or consent of that Person and the appointment continues undischarged or unstayed for sixty (60) days; or any proceeding
under Debtor Relief Laws relating to any such Person or to all or any part of its property is instituted without the consent of that Person and continues undismissed or unstayed for sixty (60) days, or an order for relief is entered in any such
proceeding; or 
 (k) An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan which has resulted or could reasonably be
expected to result in liability of Borrower under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of the Threshold Amount; (ii) the aggregate amount of Unfunded Pension Liability among all
Pension Plans at any time exceeds the Threshold Amount; or (iii) Borrower or any ERISA Affiliate fails to pay when due, after the expiration of any applicable grace period, any installment payment with respect to its withdrawal liability under
Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount in excess of the Threshold Amount; or 
  

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 (l) There occurs
(i) any Change of Control, or (ii) any event relating to a change in the corporate ownership, control or governance of Borrower or any Subsidiary as issuer (“Issuer”) of any notes, bonds, debentures, Subordinated Debt or
other debt securities, the result of which is to cause Indebtedness evidenced by any such notes, bonds, debentures, Subordinated Debt or other debt securities to be subject to mandatory redemption or repurchase by Issuer, provided the
outstanding amount of such outstanding Indebtedness exceeds the Threshold Amount. 
 8.2. Certain Financial Covenant Defaults.
In the event that, after taking into account any extraordinary charge to earnings taken or to be taken as of the end of any fiscal period of Borrower (a “Charge”), and if solely by virtue of such Charge, there would exist an
Event of Default due to breach of Section 7.12 as of such fiscal period end date, such Event of Default shall be deemed to arise upon the earlier of (i) the date after such fiscal period end date on which Borrower announces publicly it
will take, is taking or has taken such Charge (including an announcement in the form of a statement in a report fled with the Securities Exchange Commission) or, if such announcement is made prior to such fiscal period end date, the date that is
such fiscal period end date, and (ii) the date Borrower delivers to Administrative Agent its audited annual or unaudited quarterly financial statements in respect of such fiscal period reflecting such Charge as taken. 
 8.3. Remedies Upon Event of Default. Without limiting any other rights or remedies of Administrative Agent or Lenders provided for
elsewhere in this Agreement, or the other Loan Documents, or by applicable Law, or in equity, or otherwise: 
 (a) Upon the occurrence, and
during the continuance, of any Event of Default other than an Event of Default described in Section 8.1(j): 
 (i)
Requisite Lenders may request Administrative Agent to, and Administrative Agent thereupon shall, terminate the Commitments and/or declare all or any part of the unpaid principal of all Loans, all interest accrued and unpaid thereon and all other
amounts payable under the Loan Documents to be immediately due and payable, whereupon the same shall become and be immediately due and payable, without protest, presentment, notice of dishonor, demand or further notice of any kind, all of which are
expressly waived by Borrower; and/or 
 (ii) Issuing Lender, with the approval of Administrative Agent on behalf of Requisite
Lenders, may demand immediate payment by Borrower of an amount equal to the aggregate amount of all outstanding Letter of Credit Usage to be held in a blocked Letter of Credit cash collateral account held with Issuing Lender. 
 (b) Upon the occurrence of any Event of Default described in Section 8.1(j): 
 (i) the Commitments and all other obligations of Administrative Agent or Lenders shall automatically terminate without notice to or demand
upon Borrower, which are expressly waived by Borrower; 
  

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 (ii)
the unpaid principal of all Loans, all interest accrued and unpaid thereon and all other amounts payable under the Loan Documents shall be immediately due and payable, without protest, presentment, notice of dishonor, demand or further notice of any
kind, all of which are expressly waived by Borrower; and 
 (iii) an amount equal to the aggregate amount of all outstanding
Letter of Credit Usage shall be immediately due and payable to Issuing Lender without notice to or demand upon Borrower, which are expressly waived by Borrower, to be held in a blocked Letter of Credit cash collateral account held with
Administrative Agent. 
 (c) Upon the occurrence of any Event of Default, Lenders and Administrative Agent, or any of them, without notice to
(except as expressly provided for in any Loan Document) or, demand upon Borrower, which are expressly waived by Borrower (except as to notices expressly provided for in any Loan Document), may proceed to (but only with the consent of Requisite
Lenders) protect, exercise and enforce their rights and remedies under the Loan Documents against Borrower and such other rights and remedies as are provided by Law or equity (including, without limitation, the provisions of the applicable Uniform
Commercial Code). 
 (d) Except as permitted by Section 10.5, no Lender may exercise any rights or remedies with respect to the
Obligations without the consent of Requisite Lenders in their sole and absolute discretion. The order and manner in which Administrative Agent’s and Lenders’ rights and remedies are to be exercised shall be determined by Requisite Lenders
in their sole and absolute discretion. Regardless of how a Lender may treat payments for the purpose of its own accounting, for the purpose of computing the Obligations hereunder, payments shall be applied first, to costs and expenses
(including Attorney Costs) incurred by Administrative Agent and each Lender, second, to the payment of accrued and unpaid interest on the Loans to and including the date of such application, third to the payment of the unpaid principal
of the Loans, and fourth, to the payment of all other amounts (including fees) then owing to Administrative Agent and Lenders under the Loan Documents, in each case paid pro rata to each Lender in the same proportions that the
aggregate Obligations owed to each Lender under the Loan Documents bear to the aggregate Obligations owed under the Loan Documents to all Lenders, without priority or preference among Lenders. No application of payments will cure any Event of
Default, or prevent acceleration, or continued acceleration, of amounts payable under the Loan Documents, or prevent the exercise, or continued exercise, of rights or remedies of Administrative Agent and Lenders hereunder or thereunder or at Law or
in equity. 
  

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 SECTION IX

 ADMINISTRATIVE AGENT 
 9.1. Appointment and Authorization of Administrative Agent. 
 (a) Each Lender hereby irrevocably (subject to
Section 9.9) appoints, designates and authorizes Administrative Agent to take such action on its behalf under the provisions of this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly
delegated to it by the terms of this Agreement or any other Loan Document, together with such powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary contained elsewhere in this Agreement or in any other Loan
Document, Administrative Agent shall not have any duties or responsibilities, except those expressly set forth herein, nor shall Administrative Agent have or be deemed to have any fiduciary relationship with any Lender, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against Administrative Agent. Without limiting the generality of the foregoing sentence, the use of the
term “agent” in this Agreement with reference to Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law. Instead, such term is used
merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties. 
 (b) Issuing Lender shall act on behalf of Lenders with respect to any Letters of Credit issued by it and the documents associated therewith until such time and except for so long as Administrative Agent may agree at
the request of Requisite Lenders to act for such Issuing Lender with respect thereto; provided, however, that Issuing Lender shall have all of the benefits and immunities (i) provided to Administrative Agent in this Section 9 with
respect to any acts taken or omissions suffered by Issuing Lender in connection with Letters of Credit issued by it or proposed to be issued by it and the application and agreements for letters of credit pertaining to the Letters of Credit as fully
as if the term “Administrative Agent” as used in this Section 9 included Issuing Lender with respect to such acts or omissions, and (ii) as additionally provided in this Agreement with respect to Issuing Lender.

 9.2. Delegation of Duties. Administrative Agent may execute any of its duties under this Agreement or any other Loan
Document by or through agents, employees or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. Administrative Agent shall not be responsible for the negligence or misconduct of any agent or
attorney-in-fact that it selects with reasonable care. 
 9.3. Liability of Administrative Agent. No Administrative
Agent-Related Person shall (i) be liable for any action taken or omitted to be taken by any of them under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except for its own gross
negligence or willful misconduct), or (ii) be responsible in any manner to any Lender for any recital, statement, representation or warranty made by Borrower or any Subsidiary or Affiliate of Borrower, or any officer thereof, contained in this
Agreement or in any other Loan Document, or in any certificate, report, statement or other 
  

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 document referred to or provided for
in, or received by Administrative Agent under or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document, or for any
failure of Borrower or any other party to any Loan Document to perform its obligations hereunder or thereunder. No Administrative Agent-Related Person shall be under any obligation to any Lender to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or records of Borrower or any of Borrower’s Subsidiaries or Affiliates. 
 9.4. Reliance by Administrative Agent. 
 (a) Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, representation, notice, consent, certificate, affidavit, letter, telegram, facsimile, telex or telephone message,
statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons, and upon advice and statements of legal counsel (including counsel to Borrower), independent
accountants and other experts selected by Administrative Agent. Administrative Agent shall be fully justified in failing or refusing to take any action under any other Loan Document unless it shall first receive such advice or concurrence of
Requisite Lenders as it deems appropriate and, if it so requests, it shall first be indemnified to its satisfaction by Lenders against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such
action. Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request or consent of Requisite Lenders or all Lenders, if required
hereunder, and such request and any action taken or failure to act pursuant thereto shall be binding upon all of Lenders. Where this Agreement expressly permits or prohibits an action unless Requisite Lenders otherwise determine, and in all other
instances, Administrative Agent may, but shall not be required to, initiate any solicitation for the consent or a vote of Lenders. 
 (b) For
purposes of determining compliance with the conditions specified in Section 4.1, each Lender that has executed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter
either sent by Administrative Agent to such Lender for consent, approval, acceptance or satisfaction, or required thereunder to be consented to or approved by or acceptable or satisfactory to such Lender. 
 (c) Each Lender hereby authorizes Administrative Agent, upon payment of the amount certified by Borrower as the full and final payment of all principal,
interest, fees and other charges outstanding under this Agreement, and following termination of the Commitments, to execute with and in favor of Borrower a termination letter that, inter alia, terminates Borrower’s obligation to observe
any or all of the covenants in Sections III, VI and VII hereof. 
 9.5. Notice of Default. Administrative Agent shall not be
deemed to have knowledge or notice of the occurrence of any Default or Event of Default, except with respect to defaults in the payment of principal, interest and fees required to be paid to Administrative Agent for the account of Lenders, unless
Administrative Agent shall have received written 
  

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 notice from a Lender or Borrower
referring to this Agreement, describing such Default or Event of Default and stating that such notice is a “notice of default”. Administrative Agent will notify Lenders of its receipt of any such notice. Administrative Agent shall
take such action with respect to such Default or Event of Default as may be directed by Requisite Lenders in accordance with Section VIII; provided, however, that unless and until Administrative Agent has received any such direction,
Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable or in the best interest of Lenders. 
 9.6. Credit Decision; Disclosure of Information by Administrative Agent. Each Lender acknowledges that no Administrative Agent-Related
Person has made any representation or warranty to it, and that no act by Administrative Agent hereinafter taken, including any consent to and acceptance of any assignment or review of the affairs of Borrower and its Subsidiaries, shall be deemed to
constitute any representation or warranty by any Administrative Agent-Related Person to any Lender as to any matter, including whether Administrative Agent-Related Persons have disclosed material information in their possession. Each Lender,
including any Lender by assignment, represents to Administrative Agent that it has, independently and without reliance upon any Administrative Agent-Related Person and based on such documents and information as it has deemed appropriate, made its
own appraisal of and investigation into the business, prospects, operations, property, financial and other condition and creditworthiness of Borrower and its Subsidiaries, and all applicable bank regulatory laws relating to the transactions
contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to Borrower hereunder. Each Lender also represents that it will, independently and without reliance upon any Administrative Agent-Related Person and
based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such
investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of Borrower. Except for notices, reports and other documents expressly required to be
furnished to Lenders by Administrative Agent herein, Administrative Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations, property, financial and
other condition or creditworthiness of Borrower or any of its Subsidiaries which may come into the possession of any Administrative Agent-Related Person. 
 9.7. Indemnification of Administrative Agent. Whether or not the transactions contemplated hereby are consummated, Lenders shall indemnify upon demand each Administrative Agent-Related Person (to the
extent not reimbursed by or on behalf of Borrower and without limiting the obligation of Borrower to do so), pro rata, and hold harmless each Administrative Agent-Related Person from and against any and all Indemnified Liabilities incurred by
it; provided, however, that no Lender shall be liable for the payment to any Administrative Agent-Related Person of any portion of such Indemnified Liabilities resulting from such Person’s gross negligence or willful misconduct;
provided, however, that no action taken in accordance with the directions of Requisite Lenders shall be deemed to constitute gross negligence or willful misconduct for purposes of this Section. Without limitation of the foregoing, each Lender
shall reimburse Administrative Agent upon demand 
  

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 for its ratable share of any costs or
out-of-pocket expenses (including Attorney Costs) incurred by Administrative Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or
otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any other Loan Document, or any document contemplated by or referred to herein, to the extent that Administrative Agent is not reimbursed for such
expenses by or on behalf of Borrower. The undertaking in this Section shall survive the payment of all Obligations hereunder and the resignation or replacement of Administrative Agent. 
 9.8. Administrative Agent in Individual Capacity. KeyBank and its Affiliates may make loans to, issue letters of credit for the account of,
accept deposits from, acquire equity interests in and generally engage in any kind of banking, trust, financial advisory, underwriting or other business with Borrower and its Subsidiaries and Affiliates as though KeyBank were not Administrative
Agent or Issuing Lender hereunder and without notice to or consent of Lenders. Lenders acknowledge that, pursuant to such activities, KeyBank or its Affiliates may receive information regarding Borrower or its Affiliates (including information that
may be subject to confidentiality obligations in favor of Borrower or such Affiliate) and acknowledge that Administrative Agent shall be under no obligation to provide such information to them. With respect to its Loans, KeyBank shall have the same
rights and powers under this Agreement as any other Lender and may exercise the same as though it were not Administrative Agent or Issuing Lender. 
 9.9. Successor Administrative Agent. Administrative Agent may, and at the request of Requisite Lenders shall, resign as Administrative Agent upon thirty (30) days’ notice to Lenders. If Administrative Agent resigns
under this Agreement, Requisite Lenders shall appoint from among Lenders a successor administrative agent for Lenders which successor administrative agent shall be approved by Borrower. If no successor administrative agent is appointed prior to the
effective date of the resignation of Administrative Agent, Administrative Agent may appoint, after consulting with Lenders and Borrower and upon approval of Borrower (other than at any time as there exists an Event of Default) which will not be
unreasonably withheld, a successor administrative agent from among Lenders. Upon the acceptance of its appointment as successor administrative agent hereunder, such successor administrative agent shall succeed to all the rights, powers and duties of
the retiring Administrative Agent and the term “Administrative Agent” shall mean such successor administrative agent and the retiring Administrative Agent’s appointment, powers and duties as Administrative Agent shall be
terminated. After any retiring Administrative Agent’s resignation hereunder as Administrative Agent, the provisions of this Section 9 and Sections 10.3 and 10.11 shall inure to its benefit as to any actions taken or omitted to be taken by
it while it was Administrative Agent under this Agreement. If no successor administrative agent has accepted appointment as Administrative Agent (whether due to absence of Borrower approval or otherwise) by the date which is thirty (30) days
following a retiring Administrative Agent’s notice of resignation, the retiring Administrative Agent’s resignation shall nevertheless thereupon become effective and Lenders shall perform all of the duties of Administrative Agent hereunder
until such time, if any, as Requisite Lenders appoint a successor agent as provided for above. Notwithstanding the foregoing, however, KeyBank may not be removed as Administrative Agent at the request of Requisite Lenders unless KeyBank shall also
simultaneously be replaced as “Issuing Lender” hereunder pursuant to documentation inform and substance reasonably satisfactory to KeyBank. 
  

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 9.10.
Syndication Agent; Documentation Agent. None of Lenders (or Affiliates of Lenders) identified on the facing page or signature pages of this Agreement as a “Syndication Agent” or “Documentation Agent”
shall have any right, power, obligation, liability, responsibility or duty under this Agreement in such capacity. Without limiting the foregoing, none of Lenders (or Affiliates of Lenders) so identified shall have or be deemed to have any fiduciary
relationship with any Lender. Each Lender acknowledges that it has not relied, and will not rely, on any of Lenders (or Affiliates of Lenders) so identified in deciding to enter into this Agreement or in taking or not taking action hereunder.

 SECTION X 
 MISCELLANEOUS 
 10.1. Amendments; Consents. No amendment, modification, supplement, extension, termination or
waiver of any provision of this Agreement or any other Loan Document, no approval or consent thereunder, and no consent to any departure by Borrower therefrom shall be effective unless in writing signed by Requisite Lenders and acknowledged by
Administrative Agent, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. Except as otherwise expressly provided herein, without the approval in writing of Administrative
Agent and all Lenders, no amendment, modification, supplement, termination, waiver or consent may be effective: 
 (a) To reduce the amount of
principal, principal prepayments or the rate of interest payable on, any Loan, or the amount of any fee or other amount payable to any Lender under the Loan Documents (unless such modification is consented to by each Lender entitled to receive such
fee) or to waive an Event of Default consisting of the failure of Borrower to pay when due principal, interest or any commitment fee; 
 (b)
To postpone any date fixed for any payment of principal of, prepayment of principal of, or any installment of interest on, any Loan or any installment of any commitment fee, to extend the term of, or increase the amount of, any Lender’s
Commitment (it being understood that a waiver of an Event of Default shall not constitute an extension or increase in the Commitment of any Lender) or modify the Pro Rata Share of any Lender; 
 (c) To release Borrower or any Guarantor from its obligations under any Loan Document; 
 (d) Except to the extent any release of collateral is contemplated under this Agreement or the other Loan Documents, to release collateral in which
Lenders have a security interest to secure the performance of Borrower’s obligations under the Loan Documents constituting more than 20% of the value of Borrower’s consolidated assets; 
 (e) To amend the definition of “Requisite Lenders” or the provisions of Section 4, Section 9, this Section 10.1 or
Section 10.6; or 
  

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 (f) To amend any
provision of this Agreement that expressly requires the consent or approval of all Lenders; provided, however, that (i) no amendment, waiver or consent shall, unless in writing and signed by Issuing Lender in addition to Requisite
Lenders or all Lenders, as the case may be, affect the rights or duties of Issuing Lender or affect any Letter of Credit related matter, (ii) no amendment, waiver or consent shall, unless in writing and signed by Administrative Agent in
addition to Requisite Lenders or all Lenders, as the case may be, affect the rights or duties of Administrative Agent; and (iii) the fee letters may be amended, or rights or privileges thereunder waived, in a writing executed by the parties
thereto. Any amendment, modification, supplement, termination, waiver or consent pursuant to this Section shall apply equally to, and shall be binding upon, all Lenders and Administrative Agent. 
 Notwithstanding anything in this Agreement to the contrary, no waiver or modification of any provision of this Agreement that has the effect (either
immediately or at some later time) of enabling the Borrower to satisfy a condition precedent to the making of any Revolving Loan shall be effective against the Revolving Lenders unless the Requisite Lenders described in clause (a) of the
definition thereof shall have concurred with such waiver or modification. 
 10.2. Transmission and Effectiveness of Communications and
Signatures. 
 (a) Modes of Delivery. Except as otherwise provided in any Loan Document, notices, requests, demands,
directions, agreements and documents delivered in connection with the Loan Documents (collectively, “communications”) shall be transmitted by Requisite Notice to the number and address set forth on Schedule 10.2, may be delivered by
the following modes of delivery, and shall be effective as follows: 
  

			
	 Mode of Delivery
	  	 Effective on earlier of actual receipt and:

	 Courier
	  	 Scheduled delivery date

		
	 Facsimile
	  	 When transmission in legible form complete

		
	 Mail
	  	 Fourth Business Day after deposit in U.S. mail first class postage pre-paid

		
	 Personal delivery
	  	 When received

		
	 Telephone
	  	 When conversation completed

 provided, however, that communications delivered to Administrative Agent pursuant to Section 2 must be
in writing and shall not be effective until actually received by Administrative Agent. 
 (b) Reliance by Administrative Agent and
Lenders. Administrative Agent and Lenders shall be entitled to rely and act on any communications purportedly given by or on behalf of Borrower even if (i) such communications (A) were not made in a manner specified herein,
(B) were incomplete or (C) were not preceded or followed by any other notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any subsequent related communications provided for herein. Borrower
shall indemnify Administrative Agent and Lenders from any loss, cost, expense or liability as a result of relying on any communications permitted herein. 
  

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 (c) Effectiveness
of Facsimile Documents and Signatures. Documents and agreements delivered from time to time in connection with the Loan Documents may be transmitted and/or signed by facsimile. The effectiveness of any such documents and signatures shall,
subject to applicable Law, have the same force and effect as hardcopies with manual signatures and shall be binding on all Borrower and its Subsidiaries and Administrative Agent and Lenders. Administrative Agent may also request that any such
documents and signature be confirmed by a manually-signed hardcopy thereof; provided, however, that the failure to request or deliver any such manually-signed hardcopy shall not affect the effectiveness of any facsimile documents or
signatures. 
 10.3. Attorney Costs, Expenses and Taxes. Borrower agrees (a) to pay or reimburse Administrative Agent for
all reasonable costs and expenses incurred in connection with the development, preparation, negotiation and execution of the Loan Documents, and the development, preparation, negotiation and execution of any amendment, waiver, consent, supplement or
modification to, any Loan Documents, and any other documents prepared in connection herewith or therewith, including all reasonable Attorney Costs, and (b) to pay or reimburse Administrative Agent and each Lender for all costs and expenses
incurred in connection with any refinancing, restructuring, reorganization (including a bankruptcy reorganization), collection and enforcement or attempted enforcement, or preservation of any rights under any Loan Documents, and any other documents
prepared in connection herewith or therewith, or in connection with any refinancing, or restructuring of any such documents in the nature of a “workout” or of any insolvency or bankruptcy proceeding, including Attorney Costs. The
foregoing costs and expenses shall include all reasonable search, filing, and appraisal charges and fees and documentary, stamp or similar taxes related thereto, and other out-of-pocket expenses incurred by Administrative Agent or any Lender and the
cost of independent public accountants and other outside experts retained by Administrative Agent or any Lender. Any amount payable by Borrower under this Section shall bear interest from the tenth (10th) Business Day following the date of
demand for payment at the Default Rate, unless waived by Administrative Agent. The agreements in this Section shall survive repayment of all Obligations. 
 10.4. Successors and Assigns. 
 (a) Successors and Assigns Generally. The provisions of
this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of
paragraph (b) of this Section 10.4, (ii) by way of participation in accordance with the provisions of paragraph (d) of this Section 10.4 or (iii) by way of pledge or assignment of a security interest subject to the
restrictions of paragraph (f) of this Section 10.4 (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person
(other than the parties hereto, 
  

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 their respective successors and
assigns permitted hereby, Participants to the extent provided in paragraph (d) of this Section 10.4 and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or
equitable right, remedy or claim under or by reason of this Agreement. 
 (b) Assignments by Lenders. Any Lender may at any time
assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it); provided that any such assignment shall be subject to
the following conditions: 
 (i) Minimum Amounts. 
 (A) in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and the Loans at the time owing
to it or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and 
 (B) in any case not described in paragraph (b)(i)(A) of this Section 10.4, the aggregate amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the applicable Commitment is
not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative
Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date) shall not be less than USD$5,000,000, in the case of any assignment in respect of a Revolving Loan/Revolving Commitment, or
USD$1,000,000, in the case of any assignment in respect of a Term Loan, unless each of the Administrative Agent and, so long as no Default or Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to
be unreasonably withheld or delayed); provided that simultaneous assignment by or to two (2) or more entities that are Affiliates or related funds shall be aggregated to determine compliance with the minimum assignment amounts.

 (ii) Proportionate Amounts. Each partial assignment shall be made as an assignment of a proportionate part of all
the assigning Lender’s rights and obligations under this Agreement with respect to the Loan or the Commitment assigned, except that this clause (ii) shall not prohibit any Lender from assigning all or a portion of its rights and
obligations among separate Loan tranches (i.e., either Revolving Loans/Revolving Commitments or Term Loans) on a non-pro rata basis. 
 (iii) Required Consents. No consent shall be required for any assignment except to the extent required by paragraph (b)(i)(B) of this Section 10.4 and, in addition: 
 (A) the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (x) a Default or
Event of Default has occurred and is continuing at the time of such assignment or (y) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; 
  

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 (B)
the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments in respect of (i) a Revolving Loan/Revolving Commitment if such assignment is to a Person that is not a
Revolving Lender with a Revolving Commitment, an Affiliate of such Revolving Lender or an Approved Fund with respect to such Revolving Lender or (ii) a Term Loan to a Person who is not a Lender, an Affiliate of a Lender or an Approved Fund; and

 (C) the consent of the Issuing Lender (such consent not to be unreasonably withheld or delayed) shall be required for any
assignment that increases the obligation of the assignee to participate in exposure under one or more Letters of Credit (whether or not then outstanding). 
 (iv) Assignment and Assumption. The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of USD$3,500
(provided that only one such fee shall be due with respect to simultaneous assignment by or to two (2) or more entities that are Affiliates or related funds), and the assignee, if it is not a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire. 
 (v) No Assignment to Borrower. No such assignment shall be made to the
Borrower or any of the Borrower’s Affiliates or Subsidiaries. 
 (vi) No Assignment to Natural Persons. No such
assignment shall be made to a natural person. 
 Subject to acceptance and recording thereof by the Administrative Agent pursuant to paragraph
(c) of this Section 10.4, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and
Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement
(and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of
Sections III, 10.3, 10.14 and 10.15 of this Agreement with respect to facts and circumstances occurring prior to the effective date of such assignment. Any assignment or transfer by a Lender of rights or obligations under this Agreement that
does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (d) of this Section 10.4 
 (c) Register. The Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at one of its offices in
Cleveland, Ohio a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts of the Loans owing to, each Lender pursuant to the
terms hereof from time to time (the “Register”). The entries in the 
  

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 Register shall be conclusive, and the
Borrower, the Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice. 
 (d) Participations. Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to any Person (other than a natural person or the Borrower or
any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans
owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and
(iii) the Borrower, the Administrative Agent and the Lenders and the Issuing Lender shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. 
 Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce
this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any
amendment, modification or waiver which (A) extends the Maturity Date as to such Participant or any other date upon which any payment of money is due to such Participant, (B) reduces the rate of interest owing to such Participant, any fee
or any other monetary amount owing to such Participant, or (C) reduces the amount of any installment of principal owing to such Participant all as described in Sections 10.1(a) and 10.1(b). Subject to paragraph (e) of this Section, the
Borrower agrees that each Participant shall be entitled to the benefits of Section III to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section 10.4. To the extent
permitted by law, each Participant also shall be entitled to the benefits of Section 10.5 as though it were a Lender, provided such Participant agrees to be subject to Section 10.6 as though it were a Lender. 
 (e) Limitations upon Participant Rights. A Participant shall not be entitled to receive any greater payment under Section III than the applicable
Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written consent. A Participant that would be a
Foreign Lender if it were a Lender shall not be entitled to the benefits of Section III unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with
Section 10.22 as though it were a Lender. 
 (f) Certain Pledges. Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such
Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. 
  

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 10.5.
Set-off. In addition to any rights and remedies of Administrative Agent and Lenders or any assignee or participant of any Lender or any Affiliate thereof (each, a “Proceeding Party”) provided by law, upon the occurrence
and during the continuance of any Event of Default, each Proceeding Party is authorized at any time and from time to time, without prior notice to Borrower, any such notice being waived by Borrower to the fullest extent permitted by law, to proceed
directly, by right of set-off, banker’s lien, or otherwise, against any assets of Borrower and its Subsidiaries which may be in the hands of such Proceeding Party (including all general or special, time or demand, provisional or other deposits
and other indebtedness owing by such Proceeding Party to or for the credit or the account of Borrower) and apply such assets against the Obligations, irrespective of whether such Proceeding Party shall have made any demand therefor and although such
Obligations may be unmatured. Each Lender agrees promptly to notify Borrower and Administrative Agent after any such set-off and application made by such Lender; provided, however, that the failure to give such notice shall not affect the
validity of such set-off and application. 
 10.6. Sharing of Payments. Each Lender severally agrees that if it, through the
exercise of any right of setoff, banker’s lien or counterclaim against Borrower or otherwise, receives payment on account of the Outstanding Obligations held by it that is ratably more than any other Lender receives in payment on account of the
Outstanding Obligations held by such other Lender, then, subject to applicable Laws: (a) the Lender exercising the right of setoff, banker’s lien or counterclaim or otherwise receiving such payment shall purchase, and shall be deemed to
have simultaneously purchased, from the other Lender a participation in the Outstanding Obligations held by the other Lender and shall pay to the other Lender a purchase price in an amount so that the share of the Outstanding Obligations held by
each Lender after the exercise of the right of setoff, banker’s lien or counterclaim or receipt of payment shall be in the same proportion that existed prior to the exercise of the right of setoff, banker’s lien or counterclaim or receipt
of payment; and (b) such other adjustments and purchases of participations shall be made from time to time as shall be equitable to ensure that all Lenders share any payment obtained in respect of the Outstanding Obligations ratably in
accordance with each Lender’s share of the Outstanding Obligations immediately prior to, and without taking into account, the payment; provided that, if all or any portion of a disproportionate payment obtained as a result of the
exercise of the right of setoff, banker’s lien, counterclaim or otherwise is thereafter recovered from the purchasing Lender by Borrower or any Person claiming through or succeeding to the rights of Borrower, the purchase of a participation
shall be rescinded and the purchase price thereof shall be restored to the extent of the recovery, but without interest. Each Lender that purchases a participation in the Outstanding Obligations pursuant to this Section shall from and after the
purchase have the right to give all notices, requests, demands, directions and other communications under this Agreement with respect to the portion of the Outstanding Obligations purchased to the same extent as though the purchasing Lender were the
original owner of the Outstanding Obligations purchased. Borrower expressly consents to the foregoing arrangements and agrees that any Lender holding a participation in an Obligation so purchased may exercise any and all rights of setoff,
banker’s lien or counterclaim with respect to the participation as fully as if Lender were the original owner of the Obligation purchased. 
  

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 10.7. No
Set-off. As to any and all funds, securities or other assets of Borrower which are now or hereafter held by Administrative Agent or any Lender as collateral pursuant to the Credit Agreement or any other Loan Document for any of the
obligations thereunder (collectively the “Collateral Assets”), Administrative Agent and the Lenders agree that they shall not exercise any right of setoff or recoupment against nor shall they assert any security interest in the
Collateral Assets in connection with any other obligation owed to Administrative Agent or any Lender which is unrelated to the Credit Agreement or the Loan Documents, except for: (i) recovery for any items deposited with Administrative Agent or
any Lender and returned unpaid or as to which claims have been asserted as to breach of transfer or presentment warranties, (n) overdrafts on any account which generated the funds which constitute part of the Collateral Assets,
(iii) automated clearing house entries, and (iv) Administrative Agent or any Lender’s usual and customary fees for services rendered in connection with the assets or bank accounts which constitute the Collateral Assets. 
 10.8. No Waiver; Cumulative Remedies. 
 (a) No failure by any Lender or Administrative Agent to exercise, and no delay by any Lender or Administrative Agent in exercising, any right, remedy, power or privilege hereunder, shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, remedy, power or privilege under any Loan Document preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. Without limiting the generality of the foregoing, the
terms and conditions of Section 4 may be waived in whole or in part, with or without terms or conditions, in respect of any Extension of Credit without prejudicing Administrative Agent’s or Lender’s rights to assert them in whole or
in part in respect of any other Extension of Credit. 
 (b) The rights, remedies, powers and privileges herein or therein provided are
cumulative and not exclusive of any rights, remedies, powers and privileges provided by Law. Any decision by Administrative Agent or any Lender not to require payment of any interest (including Default Interest), fee, cost or other amount payable
under any Loan Document or to calculate any amount payable by a particular method on any occasion shall in no way limit or be deemed a waiver of Administrative Agent’s or Lender’s right to require full payment thereof, or to calculate an
amount payable by another method that is not inconsistent with this Agreement, on any other or subsequent occasion. 
 (c) The terms and
conditions of Section 9 are for the sole benefit of Administrative Agent and Lenders. 
 10.9. Usury. Notwithstanding
anything to the contrary contained in any Loan Document, the interest and fees paid or agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable Law (the “Maximum
Rate”). If Administrative Agent or any Lender shall receive interest or a fee in an amount that exceeds the Maximum Rate, the excessive interest or fee shall be applied to the principal of the Outstanding Obligations or, if it exceeds the
unpaid principal, refunded to Borrower. In determining whether the interest or a fee contracted for, charged, or received by Administrative Agent or any Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable Law,
(a) characterize any payment that is not principal as an 
  

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 expense, fee, or premium rather than
interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations. 
 10.10. Counterparts. This Agreement maybe executed in one or more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. 
 10.11. Integration. This Agreement, together with the other Loan
Documents and any letter agreements referred to herein, comprises the complete and integrated agreement of the parties on the subject matter hereof and supersedes all prior agreements, written or oral, on the subject matter hereof. In the event of
any conflict between the provisions of this Agreement and those of any other Loan Document, the provisions of this Agreement shall control and govern; provided that the inclusion of supplemental rights or remedies in favor of Administrative
Agent or Lenders in any other Loan Document shall not be deemed a conflict with this Agreement. Each Loan Document was drafted with the joint participation of the respective parties thereto and shall be construed neither against nor in favor of any
party, but rather in accordance with the fair meaning thereof. 
 10.12. Nature of Lenders’ Obligations. Nothing contained
in this Agreement or any other Loan Document and no action taken by Administrative Agent or Lenders or any of them pursuant hereto or thereto may, or may be deemed to, make Lenders a partnership, an association, a joint venture or other entity,
either among themselves or with Borrower or any Affiliate of Borrower. Each Lender’s obligation to make any Extension of Credit pursuant hereto is several and not joint or joint and several, provided that, in the case of the initial
Extension of Credit only, each lender’s obligation is conditioned upon the performance by all other Lenders of their obligations to make the initial Extension of Credit. A default by any Lender will not increase the Pro Rata Share attributable
to any other Lender. 
 10.13. Survival of Representations and Warranties. All representations and warranties made hereunder
and in any Loan Document, certificate or statement delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery thereof but shall terminate the later of (a) when the Commitments are
terminated and (b) when no Obligations remain outstanding under any Loan Document. Such representations and warranties have been or will be relied upon by Administrative Agent and each Lender, notwithstanding any investigation made by
Administrative Agent or any Lender or on their behalf. 
 10.14. Indemnity by Borrower. Borrower agrees to indemnify, defend,
save and hold harmless each Administrative Agent-Related Person and each Lender and their respective Affiliates, directors, officers, agents, attorneys and employees (collectively, the “Indemnities”) from and against: (a) any
and all claims, demands, actions or causes of action that are asserted against any Indemnitee by any Person (other than Administrative Agent or any Lender) relating directly or indirectly to a claim, demand, action or cause of action that such
Person asserts or may assert against Borrower, any of its Affiliates or any its officers or directors; (b) any and all claims, demands, actions or causes of action arising out of or relating to, the Loan Documents, any predecessor loan
documents, the Commitments, the use or contemplated use 
  

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 of the proceeds of any Loan, property
that is the subject of any Material Lease or any other collateral given to secure the obligations of Borrower under this Agreement, or the relationship of Borrower, Administrative Agent and Lenders under this Agreement; (c) any administrative
or investigative proceeding by any Governmental Authority arising out of or related to a claim; demand, action or cause of action described in subsection (a) or (b) above; and (d) all liabilities, claims, actions, loss, damages,
including, without limitation, foreseeable and unforeseeable consequential damages, costs and expenses (including sums paid in settlement of claims and all consultant, expert and legal fees and expenses of Indemnitees’ counsel) directly or
indirectly arising out of or resulting from any Hazardous Substance being present at any time in or around any part of Borrower’s properties (leasehold or fee), or in the soil, groundwater or soil vapor on or under Borrower’s properties
(leasehold or fee), including those incurred in connection with any investigation of site conditions or any clean-up, remedial, removal or restoration work, or any resulting damages or injuries to the person or property of any third parties or to
any natural resources; (e) any and all liabilities, losses, costs or expenses (including Attorney Costs) that any Indemnitee suffers or incurs as a result of the assertion of any foregoing claim, demand, action, cause of action or proceeding,
or as a result of the preparation of any defense in connection with any foregoing claim, demand, action, cause of action or proceeding, in all cases, whether or not an Indemnitee is a party to such claim, demand, action, cause of action or
proceeding, including those liabilities caused by an Indemnitee’s own negligence (all the foregoing, collectively, the “Indemnified Liabilities”); provided that no Indemnitee shall be entitled to indemnification for any
loss caused by its own gross negligence or willful misconduct or for any loss asserted against it by another Indemnitee. 
 10.15.
Nonliability of Lender. 
 Borrower acknowledges and agrees that: 
 (a) Any inspections of any property of Borrower made by or through Administrative Agent or Lenders are for purposes of administration of the Loan
Documents only, and Borrower is not entitled to rely upon the same (whether or not such inspections are at the expense of Borrower); 
 (b)
By accepting or approving anything required to be observed, performed, fulfilled or given to Administrative Agent or Lenders pursuant to the Loan Documents, neither Administrative Agent nor Lenders shall be deemed to have warranted or represented
the sufficiency, legality, effectiveness or legal effect of the same, or of any term, provision or condition thereof, and such acceptance or approval thereof shall not constitute a warranty or representation to anyone with respect thereto by
Administrative Agent or Lenders; 
 (c) The relationship between Borrower and Administrative Agent and Lenders is, and shall at all times
remain, solely that of borrower and lenders; neither Administrative Agent nor Lenders shall under any circumstance be deemed to be in a relationship of confidence or trust or a fiduciary relationship with Borrower or its Affiliates, or to owe any
fiduciary duty to Borrower or its Affiliates; neither Administrative Agent nor any Lender undertakes or assumes any responsibility or duty to 
  

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 Borrower or its Affiliates to select,
review, inspect, supervise, pass judgment upon or inform Borrower or its Affiliates of any matter in connection with their property or the operations of Borrower or its Affiliates; Borrower and its Affiliates shall rely entirely upon their own
judgment with respect to such matters; and any review, inspection, supervision, exercise of judgment or supply of information undertaken or assumed by Lender in connection with such matters is solely for the protection of Lenders and neither
Borrower nor any other person is entitled to rely thereon; and 
 (d) Neither Administrative Agent nor Lenders shall be responsible or liable
to any Person for any loss, damage, liability or claim of any kind relating to injury or death to Persons or damage to property caused by the actions, inaction or negligence of Borrower and/or its Affiliates and Borrower hereby indemnifies and holds
Administrative Agent and Lenders harmless from any such loss, damage, liability or claim. 
 10.16. No Third Parties Benefited.
This Agreement is made for the purpose of defining and setting forth certain obligations, rights and duties of Borrower, Administrative Agent and Lenders in connection with the Extensions of Credit, and is made for the sole benefit of Borrower,
Administrative Agent and Lenders, and Administrative Agent and Lenders’ successors and assigns. Except as provided in Sections 10.13 and 10.21, no other Person shall have any rights of any nature hereunder or by reason hereof. 
 10.17. Severability. Any provision of the Loan Documents that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction. 
 10.18. Confidentiality. Administrative Agent and each Lender shall use any
confidential non-public information concerning Borrower and its Subsidiaries that is furnished t Administrative Agent or such Lender by or on behalf of Borrower and its Subsidiaries in connection with the Loan Documents (collectively,
“Confidential Information”) solely for the purpose of evaluating and providing products and services to them and administering and enforcing the Loan Documents, and it will hold the Confidential Information in confidence.
Notwithstanding the foregoing, Administrative Agent and each Lender may disclose Confidential Information to: (a) their Affiliates, or any of their or their Affiliates’ directors, officers, employees, advisors, or representatives
(collectively, the “Representatives”) whom it determines need to know such information for the purposes set forth in this Section; (b) any bank or financial institution or other entity to which such Lender has assigned or
desires to assign an interest or participation in the Loan Documents or the Obligations, provided that any such foregoing recipient of such Confidential Information agrees to keep such Confidential Information confidential as specified
herein; (c) any governmental agency or regulatory body having or claiming to have authority to regulate or oversee any aspect of Administrative Agent’s or such Lender’s business or that of their Representatives in connection with the
exercise of such authority or claimed authority; (d) the extent necessary or appropriate to effect or preserve Administrative Agent or such Lender’s or any of their Affiliates’ security (if any) for any Obligation or to enforce any
right or remedy or in connection with any claims asserted by or against Administrative Agent or such Lender or any of its Representatives; and 
  

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 (e) pursuant to any subpoena or any
similar legal process so long as Borrower is, or has been, given notice of such legal process and the opportunity to seek a protective order. For purposes hereof, the term “Confidential Information” shall not include information
that (x) is in Administrative Agent’s or such Lender’s possession prior to its being provided by or on behalf of Borrower and its Subsidiaries, provided that such information is not known by Administrative Agent or such Lender
to be subject to another confidentiality agreement with, or other legal or contractual obligation of confidentiality to, Borrower, (y) is or becomes publicly available (other than through a breach hereof by Lender), or (z) becomes
available to Administrative Agent or such Lender on a nonconfidential basis, provided that the source of such information was not known by Administrative Agent or such Lender to be bound by a confidentiality agreement or other legal or
contractual obligation of confidentiality with respect to such information. 
 10.19. Further Assurances. Borrower and its
Subsidiaries shall, at their expense and without expense to Administrative Agent or Lenders, do, execute and deliver such further acts and documents as any Lender or Administrative Agent from time to time reasonably requires for the assuring and
confirming unto Lender of the rights hereby created or intended now or hereafter so to be, or for carrying out the intention or facilitating the performance of the terms of any Loan Document. 
 10.20. Headings. Section headings in this Agreement and the other Loan Documents are included for convenience of reference only and are not
part of this Agreement or the other Loan Documents for any other purpose. 
 10.21. Time of the Essence. Time is of the essence
of the Loan Documents. 
 10.22. Foreign Lenders. Each Lender that is a “foreign corporation, partnership or
trust” within the meaning of the Code (a “Foreign Lender”) shall deliver to Administrative Agent, prior to receipt of any payment subject to withholding under the Code (or after accepting an assignment of an interest
herein), two (2) duly signed completed copies of either Form W-8BEN or any successor thereto (relating to such Person and entitling it to a complete exemption from withholding on all payments to be made to such Person by Borrower pursuant to
this Agreement) or Form W-8ECI or any successor thereto (relating to all payments to be made to such Person by Borrower pursuant to this Agreement) of the United States Internal Revenue Service or such other evidence satisfactory to Borrower and
Administrative Agent that no withholding under the federal income tax laws is required with respect to such Person. Thereafter and from time to time, each such Person shall (a) promptly submit to Administrative Agent such additional duly
completed and signed copies of one of such forms (or such successor forms as shall be adopted from time to time by the relevant United States taxing authorities) as may then be available under then current United States laws and regulations to
avoid, or such evidence as is satisfactory to Borrower and Administrative Agent of any available exemption from, United States withholding taxes in respect of all payments to be made to such Person by Borrower pursuant to this Agreement, and
(b) take such steps as shall not be materially disadvantageous to it, in the reasonable judgment of such Lender, and as may be reasonably necessary (including the re-designation of its Lending Office) to avoid any requirement of applicable Laws
that Borrower make any deduction or withholding for taxes from amounts payable to such Person. If such Persons fail to deliver the above forms or 
  

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 other documentation, then
Administrative Agent may withhold from any interest payment to such Person an amount equivalent to the applicable withholding tax imposed by Sections 1441 and 1442 of the Code. If any Governmental Authority asserts that Administrative Agent did not
properly withhold any tax or other amount from payments made in respect of such Person, such Person shall indemnify Administrative Agent therefor, including all penalties and interest and costs and expenses (including Attorney Costs) of
Administrative Agent. The obligation of Lenders under this Section shall survive the payment of all Obligations and the resignation or replacement of Administrative Agent. 
 10.23. Removal and Replacement of Lenders. 
 (a) Under any circumstances set forth in this Agreement providing that Borrower shall have the right to remove and replace a Lender as a party to this Agreement, Borrower may, upon notice to such Lender and
Administrative Agent, remove such Lender by (i) non-ratably terminating such Lender’s Commitment, and (ii) if being replaced, causing such Lender to assign its Commitment to one or more other Lenders or Eligible Assignees acceptable
to Borrower, Administrative Agent and Issuing Lender; provided, however, that during the existence of any Event of Default, Borrower may not remove or replace a Lender pursuant to this Section 10.23. Any removed or replaced Lender shall
be entitled to (x) payment in full of all principal, interest, fees and other amounts owing to such Lender or such Lender’s affiliated Indemnitees under any Loan Document through the date of termination or assignment (including any amounts
payable pursuant to Section 3.5), (y) appropriate assurances and indemnities (which may include letters of credit) as such Lender may reasonably require with respect to its participation interest in any Letters of Credit and (z) a
release of such Lender from its obligations under the Loan Documents. Any Lender being replaced shall execute and deliver an Assignment and Acceptance covering such Lender’s Commitment, and shall otherwise comply with Section 10.4.
Administrative Agent shall distribute an amended Schedule 2.1, which shall thereafter be incorporated into this Agreement, to reflect adjustments to Lenders and their Commitments. 
 (b) In order to make all Lender’s interests in any outstanding Extensions of Credit ratable in accordance with any revised Pro Rata Shares after
giving effect to the removal or replacement of a Lender, Borrower shall pay or prepay, if necessary, on the effective date thereof, all outstanding Extensions of Credit of all Lenders, together with any amounts due under Section 3.5. Borrower
may then request Extensions of Credit from Lenders in accordance with their revised Pro Rata Shares. 
 10.24. Governing Law.

 (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF CALIFORNIA APPLICABLE TO AGREEMENTS MADE
AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED THAT ADMINISTRATIVE AGENT AND EACH LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW. 
 (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF CALIFORNIA OR OF THE UNITED STATES FOR THE 
  

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 CENTRAL DISTRICT OF SUCH STATE, AND BY
EXECUTION AND DELIVERY OF THIS AGREEMENT, BORROWER, ADMINISTRATIVE AGENT AND EACH LENDER CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. BORROWER, ADMINISTRATIVE AGENT AND EACH LENDER
IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY
LOAN DOCUMENT OR OTHER DOCUMENT RELATED HERETO. BORROWER, ADMINISTRATIVE AGENT AND EACH LENDER WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMTTTED BY THE LAW OF SUCH STATE. 

10.25. Waiver of Right to Trial by Jury. EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN
EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A
JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 
 10.26. Patriot Act Notification. Each Lender subject to the Act and the Administrative Agent (for itself and not on behalf of any Lender)
hereby notifies Borrower (and each Subsidiary) that, pursuant to the requirements of the USA Patriot Act, it is required to obtain, verify and record information that identifies Borrower (and, to the extent requested, each Subsidiary), which
information includes the name and address of Borrower (and, to the extent requested, each Subsidiary) and other information that will allow such Lender or Administrative Agent to identify Borrower (and, to the extent requested, each Subsidiary) in
accordance with the USA Patriot Act. 
 10.27. Entire Agreement. This Agreement and the other Loan Documents represent the
final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties. There are no unwritten oral agreements between the parties. 
 [Signatures on following page.] 
  

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

			
	 EPICOR SOFTWARE CORPORATION,
 a Delaware corporation,
 as Borrower

		
	By:	 	 /s/ Michael A. Piraino

	Name:	 	Michael A. Piraino
	Title:	 	Chief Financial Office and Executive Vice     President

			
	Credit Agreement	  	Epicor Software Corporation

  

			
	 KEYBANK NATIONAL ASSOCIATION,
 as Administrative Agent, Letter of Credit
 Issuing Lender, Sole Book Manager
and
 Lender

		
	By:	 	 /s/ Thomas A. Crandell

	Name:	 	Thomas A. Crandell
	Title:	 	Senior Vice President

			
	Credit Agreement	  	Epicor Software Corporation

  

			
	 BANK OF AMERICA, N.A., as Documentation
 Agent and Lender

		
	By:	 	 /s/ Fred L. Thorne

	Name:	 	Fred L. Thorne
	Title:	 	Managing Director

			
	Credit Agreement	  	Epicor Software Corporation

  

			
	 HSBC BANK USA, NATIONAL
 ASSOCIATION, as Lender

		
	By:	 	 /s/ Andrew Hietala

	Name:	 	Andrew Hietala
	Title:	 	Vice President

			
	Credit Agreement	  	Epicor Software Corporation

  

			
	COMERICA BANK, as Lender
		
	By:	 	 /s/ Gary Reagan

	Name:	 	Gary Reagan
	Title:	 	Senior Vice President & Manager

			
	Credit Agreement	  	Epicor Software Corporation

  

			
	 U.S. BANK NATIONAL ASSOCIATION, as
 Lender

		
	By:	 	 /s/ Timothy D. Myers

	Name:	 	Timothy D. Myers
	Title:	 	Vice President

			
	Credit Agreement	  	Epicor Software Corporation

  

			
	 GENERAL ELECTRIC CAPITAL
 CORPORATION, as Lender

		
	By:	 	 /s/ Robert M. Kadlick

	Name:	 	Robert M. Kadlick
	Title:	 	Duly Authorized Signatory

 SECURITY AGREEMENT 
 (Personal Property) 
 THIS GENERAL SECURITY AGREEMENT (“Security Agreement”) is made as of March 30, 2006, by and between EPICOR SOFTWARE
CORPORATION, a Delaware corporation (“Debtor”), and KEYBANK NATIONAL ASSOCIATION, as Administrative Agent (“KeyBank” or
“Administrative Agent”) for the parties identified as Lenders (together with KeyBank in its capacity as a Lender, the “Lenders”) under that certain Credit Agreement dated as of the date hereof (as amended from time
to time, the “Credit Agreement”) among Debtor, Administrative Agent and the Lenders. 
 RECITALS

 A. Concurrently herewith, Debtor is entering into the Credit Agreement, pursuant to which the Lenders shall provide Debtor with a
senior term loan facility and a senior revolving credit facility (including certain letters of credit, collectively, the “Facility”). 
 B. It is a prerequisite to the Lenders’ entering into the Credit Agreement that Debtor enter into this Security Agreement and grant to the Administrative Agent for itself and the ratable benefit of the Lenders,
the security interest hereafter provided to secure the Obligations. 
 C. Debtor as owner of the assets encumbered hereby, desires to enter
into this Security Agreement to secure payment and performance of the Obligations. 
 AGREEMENT 
 NOW, THEREFORE, for good and valuable consideration, receipt and adequacy of which is hereby acknowledged, the parties
agree as follows: 
 1. GENERAL. 
 1.1 Definitions. For purposes of this Security Agreement, the following terms shall have the meanings specified below. In addition, terms not defined below which are defined in Article 8 or Article 9 of the UCC or in the Credit
Agreement shall have the meaning specified therein. 
 (a) Account Debtors. The term “Account Debtors” means all
persons who now are or hereafter become in any way obligated, liable, or responsible for any payment of any kind in connection with any or all of the Accounts. 
 (b) Accounts. The term “Accounts” shall have the meaning provided in the UCC and shall include, without limitation, all presently existing and hereafter arising accounts (as defined in the
UCC), contract rights, royalties, and other forms of obligations owing to Debtor arising out of (i) the sale or lease of goods, (ii) the sale or licensing of software, patents, trademarks, copyrights and other intellectual property or
technology, (iii) the rendering of services (whether or not earned by performance), or (iv) any credit insurance, guaranties, and other security therefor, as well as all merchandise returned to or reclaimed by Debtor. 

			
	 Security Agreement
	  	Epicor Software Corporation

  
 (c) Administrative
Agent. The term “Administrative Agent” shall have the meaning given to such term in the preamble to this Security Agreement. 
 (d) Bankruptcy Code. The term “Bankruptcy Code” shall mean the Bankruptcy Reform Act of 1978 (11 U.S.C. § 101-1330) as now enacted or hereafter modified. 
 (e) Certificates of Ownership. The term “Certificates of Ownership” shall mean all of Debtor’s certificates of title.

 (f) Collateral. The term “Collateral” shall mean the personal property assets identified as
“Collateral” in Exhibit A to this Security Agreement. 
 (g) Copyrights. The term “Copyrights”
shall have the meaning provided in the UCC and shall include, without limitation, all copyright rights, copyright applications, copyright registrations and like protections in each work or authorship and derivative work thereof, whether published or
unpublished and whether or not the same also constitutes a trade secret, now or hereafter existing, created, acquired or held. 
 (h)
Debtor’s Books. The term “Debtor’s Books” shall mean all of Debtor’s books and records including, but not limited to, minute books, ledgers, records indicating, summarizing or evidencing Debtor’s assets,
liabilities, the Collateral, the Obligations, and all information relating thereto; records indicating, summarizing or evidencing Debtor’s business operations or financial condition; and all computer programs, disc or tape files, printouts,
runs, and other computer prepared information and the equipment containing such information. 
 (i) Deposit Account. The term
“Deposit Accounts” shall have the meaning provided in the UCC. 
 (j) Dispose or Disposition. The term
“Dispose” or “Disposition” shall mean any sale, lease, transfer or other disposition of the Inventory (including any sale leaseback transaction). 
 (k) Equipment. The term “Equipment” shall have the meaning provided in the UCC, wherever located, and shall include, without
limitation, machinery, machine tools, motors, controls, attachments, parts, tools, and accessories incidental thereto, computer and office equipment, furniture, furnishings, fixtures, motor vehicles, trailers and rolling stock; and all
substitutions, replacements, accessories, additions, attachments, improvements, accessions, Proceeds and products of the foregoing. 
 (1)
Event of Default. The term “Event of Default” shall have the meaning given to such term in Section 5 of this Security Agreement. 
 (m) General Intangibles. The term “General Intangibles” shall have the meaning provided in the UCC, and shall include without limitation, all interests or claims on insurance policies; all
interests in any partnership; all Intellectual Property Collateral; trade 

  

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names, trade name rights; trademarks, trademark rights; copyrights, patents, and all applications therefor; licenses, permits, franchises, and like
privileges or rights issued by any governmental or regulatory authority; income tax refunds; customer lists; route lists, purchase orders, computer programs, computer disks, computer tapes; design rights, payments of insurance, claims and causes of
action; and all guaranty claims which are not classified as supporting obligations, co-op memberships, leasehold interests in personal property, security interests or other security held by or granted to the Debtor to secure payment by an account
debtor of any of the Accounts. 
 (n) Governmental Authority. The term “Governmental Authority” shall mean
(i) any international, foreign, federal, state, county or municipal government, or political subdivision thereof, (ii) any governmental or quasi-governmental agency, authority, board, bureau, commission, department, instrumentality,
central bank or public body, or (iii) any court, administrative tribunal or public utility. 
 (o) Intellectual Property
Collateral. The term “Intellectual Property Collateral” shall mean all of the following assets now owned or hereafter acquired: 
 (i) Copyrights, Trademarks, Patents, and Mask Works; 
 (ii) Licenses or other rights to use
any of the Copyrights, Patents, Trademarks, or Mask Works, and all license fees and royalties arising from such use to the extent permitted by such license or rights; 
 (iii) Any and all trade secrets, and any and all intellectual property rights in computer software and computer software products now or
hereafter existing, created, acquired or held; 
 (iv) Any and all design rights which may be available to Debtor now or
hereafter existing, created, acquired or held; 
 (v) Any and all claims for damages by way of past, present and future
infringement of any of the rights included above, with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the intellectual property rights identified above; 
 (vi) All “domain names” of Debtor; 
 (vii) All amendments, renewals and extensions of any of the Copyrights, Trademarks, Patents, or Mask Works; 
 (viii) All contracts and contract rights relating to any of the foregoing; and 
 (ix) All Proceeds of the foregoing. 
  

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 (p) Inventory.
The term “Inventory” shall have the meaning provided in the UCC, and shall include, without limitation, merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products intended for
sale or lease or to be furnished under a contract of service, of every kind and description now or at any time hereafter owned by or in the custody or possession, actual or constructive, of Debtor, including such inventory as is temporarily out of
its custody or possession or in transit and including any returns upon any accounts or other proceeds, including insurance proceeds, resulting from the sale or disposition of any of the foregoing and any documents of title representing any of the
above. 
 (q) Lenders. The term “Lenders” shall have the meaning given to such term in the preamble to this Security
Agreement. 
 (r) Lender Expenses. The term “Lender Expenses” means all costs and expenses incurred by
Administrative Agent and/or the Lenders in connection with this Security Agreement or the transactions contemplated hereby, including, without limitation, (i) all costs or expenses required to be paid by Debtor under this Security Agreement
which are paid or advanced by Administrative Agent and/or the Lenders; (ii) all costs or expenses required to be paid by Debtor under the Credit Agreement which are paid or advanced by Administrative Agent and/or the Lenders; (iii) taxes
and insurance premiums of every nature and kind of Debtor paid by Administrative Agent and/or the Lenders; (iv) filing, recording, publication, search fees, appraiser fees, auditor fees paid or incurred by Lenders in connection with
Administrative Agent’s and/or Lenders’ transactions with Debtor; (v) costs and expenses incurred by Administrative Agent and/or the Lenders in collecting or realizing upon the Collateral (with or without suit), to correct any default
or enforce any provision of this Security Agreement, and costs and expenses of suit incurred by Administrative Agent and/or the Lenders in enforcing or defending this Security Agreement or any portion hereof; and (vi) reasonable attorneys’
fees and expenses incurred by Administrative Agent and/or the Lenders in advising, structuring, drafting, reviewing, amending, terminating, enforcing, defending or concerning this Security Agreement, any portion hereof, any agreement related hereto,
or any of the transactions contemplated hereby, whether or not suit is brought, and including, but not limited to, any expenses incurred in any proceedings or case in the United States Bankruptcy Courts in enforcing or defending its rights in its
collateral, under this Security Agreement or under any note or other document executed in connection with this Security Agreement. 
 (s)
Licenses. The term “Licenses” shall mean all licenses or other rights to use any of the Copyrights, Patents, Trademarks, or Mask Works and all license fees and royalties arising from such use to the extent permitted by such
license or right. 
 (t) Lien. The term “Lien” shall mean any mortgage, pledge, hypothecation, assignment, deposit
arrangement (including in the nature of, cash collateral accounts or security interests), encumbrance, lien (statutory or other), fixed or floating charge, or other security interest of any kind or nature whatsoever (including any conditional sale
or other title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing, and the filing of any financing statement under the UCC or comparable laws of any jurisdiction), including the interest of
a purchaser of accounts receivable. 
  

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 (u) Loan
Documents. The term “Loan Documents” shall have the meaning given to such term in the Credit Agreement, including all extensions, modifications, renewals or amendments to such Loan Documents, and shall include all other
documents executed in connection therewith. 
 (v) Mask Works. The term “Mask Works” shall have the meaning provided
in the UCC and shall include without limitation all mask work or similar rights available for the protection of semiconductor chips, now owned or hereafter acquired. 
 (w) Material Adverse Effect. The term “Material Adverse Effect” shall mean any set of circumstances or events which (i) has any material adverse effect upon the validity or enforceability
of any Loan Document, (ii) is material and adverse to the financial condition, business, assets or operations of Debtor, or (iii) materially impairs the ability of Debtor to perform the Obligations. 
 (x) Negotiable Collateral. The term “Negotiable Collateral” shall mean all of Debtor’s present and future letters of credit
(of which it is a beneficiary), notes, drafts, instruments, securities, documents of title, and chattel paper. 
 (y) Obligations.
The term “Obligations” shall have the meaning given to such term in the Credit Agreement, including whether Debtor may be liable individually or jointly, or whether recovery upon such debt may be or become barred by any statute of
limitations or otherwise unenforceable, including all attorneys’ fees and costs now or hereafter payable by Debtor to the Administrative Agent and/or the Lenders under the Loan Documents or in connection with the collection and enforcement of
such debts, obligations and liabilities. Notwithstanding anything to the contrary contained in this Security Agreement, this Security Agreement shall not secure and the term “Obligations” shall not include any debts that are or may
hereafter constitute “consumer credit” which is subject to the disclosure requirements of the federal Truth-In Lending Act (15 U.S.C. Section 1601, et seq.) or any similar state law in effect from time to time, unless
Administrative Agent and Debtor shall otherwise agree in a separate written agreement. 
 (z) Patents. The term
“Patents” shall have the meaning provided in the UCC and shall include without limitation all patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals, reissues,
extensions and continuations-in-part of the same. 
 (aa) Priority Liens. The term “Priority Liens” shall mean and
refer to (i) Liens on any of Debtor’s personal property the purchase price and related acquisition costs of which are financed by third-party lender as permitted by the Credit Agreement; (ii) Liens in existence on the date any asset
becomes Collateral, to the extent such asset is taken, with the express written consent of Administrative Agent, subject to such Lien; (iii) Liens that are 

  

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	  	Epicor Software Corporation

  
 
Permitted Liens that must be perfected by possession and the third-party to whom such Lien is granted has possession of the Collateral relating thereto and
such third-party has not entered into any agreement altering such priority; (iv) Liens (including tax liens) in favor of any Governmental Authority which pursuant to statute or law creating such Lien and other applicable law, have priority over
the Liens granted under this Security Agreement and (v) Liens set forth on Exhibit C hereto. 
 (bb) Proceeds. The term
“Proceeds” shall have the meaning provided in the UCC and shall include without limitation whatever is received upon the sale, lease, exchange, collection or other disposition of Collateral or proceeds, including, without
limitation, proceeds of insurance covering Collateral, tax refunds, and any and all accounts, notes, instruments, chattel paper, equipment, money, deposit accounts, securities accounts, goods, or other tangible and intangible property of Debtor
resulting from the sale or other disposition of the Collateral, and the proceeds thereof. 
 (cc) Security Agreement. The term
“Security Agreement” shall mean this Security Agreement, any concurrent or subsequent rider to this Security Agreement and any extensions, supplements, amendments or modifications to this Security Agreement and/or to any such rider.

 (dd) Trademarks. The term “Trademarks” shall have the meaning provided in the UCC and shall include without
limitation any trademarks and service marks, whether registered or not, application to register and registrations of the same and like protections, and the entire goodwill of the business of Debtor connected with and symbolized by such trademarks.

 (ee) UCC. The term “UCC” shall mean the Uniform Commercial Code of the State of California, as presently in force
and effect and any replacements therefore as and when such replacements become effective. 
 1.2 Accounting Terms. All accounting
terms and computations shall be based upon generally accepted accounting principles consistently applied. 
 2. SECURITY INTEREST.

 2.1 Security Interest. 
 (a) As security for the prompt and complete payment and performance of all the Obligations, Debtor hereby grants to Administrative Agent (as Administrative Agent for itself and for the ratable benefit of the Lenders) a first priority
security interest (subject to Priority Liens) in all of Debtor’s right, title interest in, to and under the Collateral described in Exhibit A. Notwithstanding the foregoing, the security interest granted herein shall not extend to and
the term “Collateral” shall not include (i) any General Intangibles of the Debtor (whether owned or held as licensee or lessee or otherwise) to the extent that the granting of a security interest therein would be contrary to
applicable law or create a default under any agreement governing such property, right or license (but only if such restrictions are enforceable as a matter 

  

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	  	Epicor Software Corporation

  
 
of law); or (ii) any equipment financed by another lender or lessor under documentation that prohibits the granting of a second lien thereon executed
prior to the date of this Agreement or which is a Permitted Lien. 
 (b) Administrative Agent’s security interest in the Collateral
shall attach to the Collateral without further act on the part of the Administrative Agent, Lenders or Debtor. 
 (c) Except for Priority
Liens, in which case Administrative Agent’s security interest shall be junior to third parties holding such Priority Liens, such security interest constitutes a valid, first priority security interest in the presently existing Collateral, and
will constitute a valid, security interest in Collateral acquired after the date hereof. 
 2.2 Security Documents; Attorney-In-Fact.

 (a) Administrative Agent may file all financing statements and continuation statements as it may deem necessary to perfect and maintain
perfected Administrative Agent’s security interest. Debtor shall execute and deliver, or cause to be executed and delivered, to Administrative Agent, concurrently with Debtor’s execution of this Security Agreement, and at any time or times
hereafter at the request of Administrative Agent, all documents which Administrative Agent may reasonably request, in form satisfactory to Administrative Agent, to perfect and maintain perfected Administrative Agent’s security interests in the
Collateral and in order to fully consummate all of the transactions contemplated under this Security Agreement. 
 (b) Debtor hereby
irrevocably makes, constitutes and appoints Administrative Agent to act on Debtor’s behalf as Debtor’s true and lawful attorney with power to sign the name of Debtor on any of the above-described documents or on any other similar documents
which need to be executed, recorded, and/or filed in order to perfect or continue perfected Administrative Agent’s security interest in the Collateral. 
 (c) The appointment of Administrative Agent as Debtor’s attorney, and each and every one of Administrative Agent’s rights and powers, being coupled with an interest, are irrevocable so long as any
Obligations remain unpaid or unperformed. 
 3. REPRESENTATIONS AND WARRANTIES. In addition to the representations and warranties of
Debtor set forth in the Credit Agreement, which are incorporated herein by reference, Debtor represents and warrants that as of the date hereof and as of the date of each Request for Extension of Credit under the Credit Agreement: 
 3.1 State of Incorporation: Place of Business. Debtor is a corporation validly existing and in good standing under the laws of the State of
Delaware; as of the date hereof, Debtor’s chief executive office and principal place of business is located at 18200 Von Karman Avenue, Suite 1000, Irvine, California 92612. 
  

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	  	Epicor Software Corporation

  
 3.2 Tangible
Collateral. Tangible Collateral is in good operating condition and repair, normal wear and tear excepted. 
 3.3 No Offsets. To
the best of Debtor’s knowledge, each account, account receivable and right to payment and each instrument, document, chattel paper and other agreement constituting or evidencing Collateral is (or will be when arising or issued) a valid, genuine
and legally enforceable obligation, subject to no defense, set off or counterclaim (other than those arising in the ordinary course of business) of the account debtor or other obligor named therein or in Debtor’s records pertaining thereto as
being obligated to pay such obligation. 
 3.4 Warranties and Representations Cumulative. The warranties, representations and
agreements set forth herein shall be cumulative and in addition to any and all other warranties, representations and agreements which Debtor shall give, or cause to be given, to Administrative Agent, either now or hereafter. 
 4. COVENANTS. Debtor hereby covenants and agrees that during the term hereof and until all Obligations (other than inchoate indemnity obligations)
are fully paid and performed: 
 4.1 Accounts. 
 (a) Debtor will not discount any accounts owed by customers (including, without limitation, rights to payment evidenced by chattel paper or an instrument, commercial tort claims, investment property, and letter of
credit rights) or evidence of indebtedness except (i) to Administrative Agent or (ii) for such discounts as are customarily provided for prompt payment or settlement of delinquent accounts. 
 (b) Debtor will not sell any account (including, without limitation, Accounts, rights to payment evidenced by chattel paper or an instrument, commercial
tort claims, investment property, and letter of credit rights) or evidence of indebtedness except in the ordinary course of business. 
 4.2
Notifications. Debtor shall promptly notify Administrative Agent of any material loss or material damage to any material item of Collateral. 
 4.3 Good Repair. Debtor shall (i) maintain, preserve and protect the Collateral necessary in the operation of its business in good order and condition, subject to ordinary wear and tear in the ordinary course of business,
(ii) not permit any waste of the Collateral, except where failure to do so would not reasonably be expected to have a Material Adverse Effect and (iii) keep and maintain the Collateral in material compliance with all environmental laws.

 4.4 Inspection. At any time during regular business hours and as often as reasonably requested upon reasonable notice, permit
Administrative Agent or any Lender, or any employee, agent or representative thereof, to examine, audit and make copies and abstracts from Debtor’s records and books of account related to the Collateral and to visit and inspect its 

  

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	  	Epicor Software Corporation

  
 
properties and to discuss its affairs, finances and accounts with any of its officers and key employees, and, upon request, furnish promptly to
Administrative Agent or any Lender true copies of all financial information and internal management reports made available to their senior management. Notwithstanding any provision of this Security Agreement to the contrary, so long as no Event of
Default shall have occurred and be continuing, Debtor shall not be required to disclose, permit the inspection, examination, photocopying or making extracts of, or discuss, any document, information or other matter that (i) constitutes
non-financial trade secrets or non-financial proprietary information, or (ii) the disclosure of which to Administrative Agent or any Lender, or their designated representative, is then prohibited by law or any agreement binding on Debtor that
was not entered into by Debtor for the purpose of concealing information from Administrative Agent or Lenders. Debtor shall, however, furnish to Administrative Agent such information concerning Debtor’s intellectual property (including, without
limitation, application and registration numbers for any filings in connection with such intellectual property) as is reasonably necessary to permit Administrative Agent (on behalf of itself and the other Lenders) to perfect a security interest in
such intellectual property. 
 4.5 Reports. Upon the Administrative Agent’s request but in no event more than once in any twelve
(12) consecutive months unless an Event of Default exists, Debtor shall deliver to Administrative Agent such reports and information available to Debtor’s management concerning the Collateral as Administrative Agent may reasonably request.
All reports and information provided to Administrative Agent by Debtor shall be complete and accurate in all material respects at the time provided. 
 4.6 Delivery. Debtor shall, if Administrative Agent at any time so request (whether the request is made before or after the occurrence of an Event of Default), promptly deliver to Administrative Agent any
instrument, document, chattel paper or Certificate of Ownership constituting Collateral, duly endorsed or assigned by Debtor. 
 4.7
Use. Debtor shall not use or keep any Collateral, or permit it to be used or kept, negligently or for any unlawful purpose or in violation of any Laws or orders of any Governmental Authority applicable to Debtor, its assets, its business and
the Collateral, the noncompliance with which would reasonably be expected to have a Material Adverse Effect. 
 4.8 Fixtures. Debtor
shall not permit any material item of tangible Collateral to become part of or to be affixed to any real property without first assuring to the reasonable satisfaction of Administrative Agent that: (i) Administrative Agent’s Lien will be
prior and senior to any interest or lien then held or thereafter acquired by any mortgagee or encumbrancer of such real property or the owner or purchaser of any interest therein; and (ii) Administrative Agent shall have the right to remove any
Collateral from such real property at any time and without any unreasonable restraint or impediment. 
 4.9 Statutes. To the extent
that the UCC is superceded by another statute, Debtor shall take such action as is reasonably requested by Administrative Agent to enforce, perfect, protect, implement, continue, maintain and preserve Administrative Agent’s right hereunder and
under the other Loan Documents and the priority of the Administrative Agent’s lien. 
  

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 4.10 Deposit
Accounts. For all Deposit Accounts that Debtor now or hereafter maintains with any financial institutions other than Administrative Agent (“Third Party Bank”), Debtor shall promptly execute a Deposit Account Control Agreement in
substantially the form set forth in Exhibit B or other form reasonably acceptable to Administrative Agent and shall promptly execute, and obtain the execution of, such Deposit Account Control Agreement by the respective Third Party Bank.

 4.11 Securities Accounts. For all Securities Accounts that Debtor now or hereafter maintains with any institutions other than
Administrative Agent (“Third Party Institution”), Debtor shall promptly execute a Securities Account Control Agreement in a form reasonably acceptable to Administrative Agent and shall promptly obtain the execution of such
Securities Account Control Agreement by the respective Third Party Institution. Debtor shall not hold any assets in any Securities Account maintained by Debtor that would not be subject to Administrative Agent’s perfected security interest,
unless (i) Debtor executes and causes the execution of an account control agreement such that Administrative Agent’s security interest in such assets are perfected by such agreement, or (ii) Debtor has executed such other agreements
or documents as are necessary to provide and perfect a lien on such assets. 
 4.12 Equipment. Without limiting the generality of this
Section 4, upon Administrative Agent’s request, Debtor shall provide the Administrative Agent with complete and accurate schedules containing (i) a description of each material item of Equipment; and (ii) such other information
regarding the Equipment as the Administrative Agent may reasonably require. 
 4.13 Letters of Credit. To the extent that Debtor holds
as beneficiary any Letters of Credit, at the request of Administrative Agent, whether or not an Event of Default has occurred, Debtor will use its reasonable efforts to obtain the issuing bank’s consent to the Administrative Agent’s lien
on such Letter of Credit and recognition of Administrative Agent’s right to draw on such Letter of Credit, in the place of Debtor and in accordance with the terms of such Letter of Credit, during the continuance of the Event of Default, in
connection with Administrative Agent’s exercise of available remedies. 
 4.14 Lawsuits. To the extent the Debtor hereafter holds
or acquires a cause of action for any claim in any material amount, at the request of Administrative Agent, whether or not an Event of Default has occurred, Debtor will execute such documents as Administrative Agent may request to grant and reflect
Administrative Agent’s lien on such cause of action. 
 4.15 Inventory. 
 (a) Debtor shall not make any Disposition except in the ordinary course of business or as set forth in the Credit Agreement. 
  

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 (b) Without limiting
the generality of Section 4.4 above, Debtor shall maintain records containing entries of all material reportable transactions relating to the Inventory, including accurate records showing (i) the current Inventory stock held by Debtor;
(ii) the cost and sales records of the Inventory; and (iii) the kinds, types, qualities and quantities of the Inventory. 
 (c)
Neither Administrative Agent nor any Lender shall be directly or indirectly liable or responsible in any way or under any circumstances to Debtor or any other party (i) for the safe keeping of the Inventory; (ii) any loss of, damage to or
destruction of the Inventory occurring or arising in any manner from any cause (other than loss or damage arising from Administrative Agent’s or any Lender’s gross negligence or willful misconduct); (iii) any decrease in the value of
the Inventory; or (iv) any act or omission by any carrier, warehouse operator, bailee, forwarding agent, or other party dealing with all or part of the Inventory. 
 4.16 Accounts. 
 (a) Upon Administrative Agent’s request exercised no more often than three
(3) times during any period of twelve (12) consecutive months, Debtor shall furnish Administrative Agent access to copies of all contracts, orders, invoices, shipping instructions, delivery receipts, bills of lading, and other similar
documents for any goods, the sale or disposition of which gives rise to an Account (collectively the “Accounts Receivable Documentation”). Upon Administrative Agent’s request, Debtor shall also furnish Administrative Agent with
an aged accounts receivable report. Administrative Agent shall have the right from time to time to verify the validity, amount and any other matters relating to any or all of the Accounts directly with the respective Account Debtors in any manner,
in Debtor’s name. 
 (b) Prior to the occurrence of an Event of Default, Debtor shall collect the Accounts, at Debtor’s sole cost
and expense. Upon the occurrence and during the continuation of an Event of Default, upon the request of Administrative Agent (i) Administrative Agent shall have the exclusive right to make all collections on the Accounts and (ii) Debtor
shall deliver any amounts collected on such Accounts to Administrative Agent, as directed by Administrative Agent. 
 (c) All checks,
drafts, money orders, notes, instruments, documents, and other non-cash proceeds of the Accounts delivered to Administrative Agent in payment or on account of the Obligations shall not constitute payment except as provided in the UCC. 
 (d) Debtor shall at all times in all material respects perform and discharge all obligations of Debtor to each Account Debtor in accordance with the
terms of all documents, contracts, invoices, and other agreements between Debtor and such Account Debtor. 
 (e) Without Administrative
Agent’s prior written consent, Debtor shall not compromise, adjust, or grant any discount, credit, allowance, or extension of time for payment to any Account Debtors except in the ordinary course of Debtor’s business. 
  

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 4.17 Further
Assurances. At any time and from time to time Debtor shall execute and deliver such further instruments and take such further action as may reasonably be requested by Administrative Agent to effect the purposes of this Security Agreement and to
maintain, preserve and protect the Collateral and Administrative Agent’s and Lenders’ security interest therein. 
 5. EVENTS OF
DEFAULT. The occurrence of any one or more of the following events shall constitute an Event of Default under this Security Agreement at the option of Administrative Agent: 
 5.1 Breach of Security Agreement. (i) Any representation or warranty hereunder or in any Loan Document proves to have been incorrect in any
material respect when made or deemed made, (ii) Debtor breaches any provision of this Security Agreement which cannot be cured or (iii) the breach by Debtor of any other provision of this Security Agreement that remains uncured for a
period of thirty (30) days. 
 5.2 Breach of Other Agreements. The occurrence and continuance of an Event of Default under the
Credit Agreement. 
 5.3 Lien Priority. Administrative Agent shall cease to have a valid and perfected first priority security
interest upon any material item of the Collateral subject only to Priority Liens. 
 5.4 Seizure of Assets. If all or any material
item of the Collateral is attached, seized, subjected to a writ or distress warrant, or are levied upon and such occurrence could reasonably be expected to have a Material Adverse Effect. 
 6. ADMINISTRATIVE AGENT’S RIGHTS AND REMEDIES. The exercise of remedies hereunder shall be made by Administrative Agent on behalf of itself
and for the ratable benefit of the Lenders upon the terms and conditions contained herein or as set forth in Section 8.3 of the Credit Agreement. If an Event of Default shall have occurred and is continuing and has not been cured or waived in
accordance with the terms hereof or the terms of the Credit Agreement, Administrative Agent shall have the following rights and powers and may, at Administrative Agent’s option, without notice of its election and without demand to the extent
permitted by Section 8.3 of the Credit Agreement, do any one or more of the following, all of which are hereby authorized by Debtor: 
 6.1 UCC Rights. Administrative Agent shall have all of the rights and remedies of a secured party under the UCC and under all other applicable laws. 
 6.2 Protection of Collateral. Administrative Agent may, without notice to or demand upon Debtor or any guarantor, make such payments and do such acts as Administrative Agent considers necessary or reasonable to
protect its security interest in the Collateral, to pay, purchase, contest or compromise any encumbrance, charge or lien which in the opinion of Administrative Agent appears to be prior or superior to Administrative Agent’s security interest
and to pay all expenses incurred in connection therewith. 
  

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 6.3 Possession of
Collateral. Administrative Agent, without a breach of the peace, may enter any of the premises of Debtor and search for, take possession of, remove, keep or store any or all of the Collateral. If Administrative Agent seeks to take possession of
any or all of the Collateral by court process, Debtor irrevocably and unconditionally agrees that a receiver may be appointed by a court for such purpose without regard to the adequacy of the security for the Obligations. Administrative Agent shall
have the right to remain on Debtor’s premises or cause a custodian to remain thereon in exclusive control of such premises without charge for as long as Administrative Agent deems necessary in order to complete the enforcement of its rights
under this Security Agreement. If Administrative Agent seeks possession of any or all of the Collateral by court process, Debtor irrevocably waives (a) any bond and any surety or security relating thereto required by any statute, court rule or
otherwise as an incident or condition to such possession; (b) any demand for possession prior to the commencement of any suit or action to recover possession; and (c) any requirement that Administrative Agent retain possession of and not
dispose of such Collateral until after trial or final judgment. 
 6.4 Preparation of Collateral. Administrative Agent may complete
processing, manufacturing or repair all or any part of the Collateral prior to a disposition and, for such purpose and for the purpose of removal, Administrative Agent shall have the right to use Debtor’s premises, vehicles, hoists, lifts,
cranes, equipment and all other property without charge. Administrative Agent may sell, ship, reclaim, lease or otherwise dispose of all or any part of the Collateral in its condition at the time Administrative Agent obtains possession of such
Collateral or after further manufacturing, processing, or repair. 
 6.5 Foreclose on Collateral. Administrative Agent may sell, lease
or otherwise dispose of the Collateral at either public or private sales, or both, by way of one or more contracts or transactions, for cash or on terms, in such manner and at such places (including Debtor’s premises) as is commercially
reasonable in the opinion of Administrative Agent. It is not necessary that the Collateral be present at any such sale or that Administrative Agent have obtained possession of the Collateral. 
 (a) Administrative Agent shall give the Debtor and each holder of a security interest in the Collateral who has filed with Administrative Agent a
written request for notice, a notice in writing of the time and place of public sale, or, if the sale is a private sale or some other disposition other than a public sale is to be made of the Collateral, the time on or after which the private sale
or other disposition is to be made. The notice shall be personally delivered or mailed, postage prepaid, to Debtor as provided in Section 12.2 of this Security Agreement, at least ten (10) calendar days before the date fixed for the sale,
or at least ten (10) calendar days before the date on or after which the private sale or other disposition is to be made, unless the Collateral is perishable or threatens to decline speedily in value or is to be sold on a recognized market.
Notice to parties other than Debtor claiming an interest in the Collateral shall be sent to such addresses as they have furnished to Administrative Agent. If the sale is to be a public sale, Administrative Agent shall also give notice of the time
and place by publishing a notice one time at least ten (10) calendar days before the date of the sale in a newspaper of general circulation in the county in which the sale is to be held. 
  

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 (b) In taking such
action Administrative Agent shall have a license to use any trademarks, trade names or all Intellectual Property in disposing of the assets. 
 6.6 Accounts. With respect to the Accounts, and without limiting Administrative Agent’s rights above: 
 (a)
Administrative Agent may direct any or all Account Debtors to make payment directly to Administrative Agent or to a specified agent of Administrative Agent. 
 (b) Administrative Agent may demand, collect, receive and give receipts for any and all money and other property due or to become due in connection with the Accounts, in Administrative Agent’s or Debtor’s
name. 
 (c) Administrative Agent may file any claim and take any other action in any court of law or equity which Administrative Agent
determines to be appropriate for the purpose of collecting any or all of the Accounts; provided, however, that Administrative Agent shall not be obligated in any manner to make any demand or to make any inquiry as to the nature or sufficiency
of any payment received by it, or to present or file any claim or take any action to collect or enforce the payment of any or all of the Accounts. 
 (d) Debtor, at Administrative Agent’s request, shall, and Administrative Agent, at Administrative Agent’s option may, give notice in form acceptable to Administrative Agent, to the Account Debtors: (i) of Debtor’s grant
of a security interest in the Accounts to Administrative Agent; and (ii) of such additional information and instructions concerning Administrative Agent’s rights under this Security Agreement as Administrative Agent in Administrative
Agent’s good faith business judgment determines to be necessary or appropriate. 
 (e) Debtor shall, promptly following Administrative
Agent’s request, deliver to Administrative Agent the originals of all Accounts Receivable Documentation together with the originals of all instruments, chattel paper, security agreements, guaranties, and other documents and property evidencing
or securing the Accounts in the same form as received by Debtor, each of which shall be properly endorsed by Debtor to Administrative Agent, with recourse. 
 (f) Administrative Agent shall have the right to settle, accept reduced amounts, adjust disputes and claims directly with, and give releases on behalf of Debtor to Account Debtors, upon such terms as Administrative
Agent, in Administrative Agent’s good faith business judgment, determines to be appropriate. 
 (g) Except as otherwise provided by the
UCC and except for any of the following arising from Administrative Agent’s or any Lender’s gross negligence or willful misconduct, Administrative Agent and each Lender shall not be directly or indirectly liable or responsible in any way
or under any circumstances to Debtor or any other party for: (i) any shortage or discrepancy in, damage to, or loss or destruction of, any goods, the sale or other disposition of which gives rise to an Account; (ii) any act, omission,
error or delay of any kind 

  

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by Administrative Agent in settling, failing to settle, collecting, or failing to collect any Account, including any act or omission which results in the
loss or impairment of the Debtor’s Account, including any act or omission which results in the loss or impairment of the Debtor’s rights against any third person; (iii) settling any Account for less than the full amount hereof;
(iv) any failure or delay by Administrative Agent in enforcing or collecting any payment under any Account; or (v) the performance or observance of any or all of Debtor’s duties, obligations, representations, or the warranties under
any other agreement or document relating to any or all of the Collateral, including the Accounts. 
 (h) If for any reason Debtor receives
any payment in connection with any of the Accounts following the occurrence and during the continuance of an Event of Default, Debtor: (i) shall immediately pay or deliver such payment to Administrative Agent in the original form in which
received by Debtor; (ii) shall endorse to Administrative Agent, with recourse, all checks, drafts, money orders, notes, and other instruments or documents representing such payment; (iii) shall not commingle such payment with any of
Debtor’s other funds or property; and (iv) shall hold such payment separate and apart from Debtor’s other funds and property in an express trust for Lenders until paid or delivered to Administrative Agent. 
 6.7 Deposit and Investment Accounts. Administrative Agent may deliver a notice of exclusive control, any entitlement order, or other directions or
instructions pursuant to any Deposit Account Control Agreement, Securities Account Control Agreement or similar agreement providing control of any Collateral. 
 6.8 Collection. Administrative Agent may take possession of and endorse and collect any or all notes, checks, drafts, money orders, or other instruments of payment relating to the Collateral (including payments
made under or with respect to any policy of insurance). 
 6.9 Postponement. Any public sale of any or all of the Collateral may be
postponed from time to time by public announcement at the time and place last scheduled for the sale. 
 6.10 Discharge of Other
Claims. Administrative Agent’s sale or disposition of any or all of the Collateral shall transfer to the purchaser all of the Debtor’s rights in such Collateral and discharge all security interests and liens subordinate to
Administrative Agent’s security interest in the Collateral, and the purchaser shall acquire such Collateral free of all such subordinate interests and liens. 
 6.11 Information. Without limiting the generality of this Section 6, it shall conclusively be deemed to be commercially reasonable for Administrative Agent to direct any prospective purchaser of any or all
of the Collateral to Debtor to ascertain all information concerning the status of the Collateral. 
 6.12 Other Disposition. The
Administrative Agent’s disposition of any or all of the Collateral in any manner which differs from the procedures specified above shall not be deemed to be commercially unreasonable to the extent such disposition complies with the applicable
provisions of the UCC. 
  

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 6.13 Judicial
Action. Administrative Agent may reduce Administrative Agent’s claims for breach of any of the Obligations to judgment and foreclose or otherwise enforce its security interest in any or all of the Collateral by any available judicial
procedure. If Administrative Agent has reduced its claims for breach of any of the obligations to judgment, the lien of any levy which may be made on any or all of the Collateral by virtue of any execution based upon such judgment shall relate back
to the date of Administrative Agent’s perfection of its security interest in such Collateral. A judicial sale pursuant to such execution shall constitute a foreclosure of Administrative Agent’s security interest by judicial procedure, and
Administrative Agent may purchase at such sale and thereafter hold the Collateral free of all rights of Debtor therein. 
 6.14
Receiver. Administrative Agent may obtain the appointment of a receiver to take possession of and, at the option of Administrative Agent, to collect, sell or dispose of all or part of the Collateral. 
 6.15 Discharge Claims. Administrative Agent may discharge claims, demands, liens, security interests, encumbrances and taxes affecting any or all
of the Collateral and take such other actions as Administrative Agent determines to be necessary or appropriate to protect the Collateral and Administrative Agent’s security interest therein. Administrative Agent, without releasing Debtor or
any other party from any of the Obligations, may perform any of the Obligations in such manner and to such extent as Administrative Agent determine to be necessary or appropriate to protect the Collateral and Administrative Agent’s security
interest therein. 
 6.16 Proceeds of Sale. The proceeds of any sale or disposition of the Collateral by Administrative Agent shall be
applied in the following order of priority: 
 (a) First, to all liabilities, obligations, costs, and expenses, including reasonable
attorneys’ fees and costs, incurred by Administrative Agent in exercising any of its rights or remedies under this Security Agreement, including the costs and expenses of retaking, holding, and selling any or all of the Collateral and the costs
and expenses of enforcing and collecting upon any or all of the Accounts; 
 (b) Second, to the payment of the Obligations in such
order and amounts as Administrative Agent may determine in Administrative Agent’s discretion as more fully set forth in the Credit Agreement; 
 (c) Third, to (i) the satisfaction of indebtedness secured by any subordinate security interest in the Collateral if written demand therefor is received by Administrative Agent before distribution of any such proceeds; and
(ii) to the satisfaction of any subordinate attachment lien or execution lien if notice of the levy of attachment or execution is received by Administrative Agent before distribution of any such proceeds. If requested by 

  

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Administrative Agent the holder of a subordinate security interest in the Collateral shall furnish Administrative Agent with proof of its interest in the
Collateral acceptable to Administrative Agent, and unless such holder does so, Administrative Agent shall have no obligation to comply with such holder’s demand; and 
 (d) Fourth, the surplus, if any, shall be paid to Debtor. 
 6.17 Remedies Cumulative. The remedies of Administrative Agent, as provided herein, shall be cumulative and concurrent, and may be pursued singularly, successively or together, at the sole discretion of
Administrative Agent, and may be exercised as often as occasion therefor shall arise. No act of omission or commission by Administrative Agent, including specifically any failure to exercise any right, remedy or recourse, shall be deemed to be a
waiver or release of the same, such waiver or release to be effected only through a written document executed by Administrative Agent and then only to the extent specifically recited therein. A waiver or release with reference to any one event shall
not be construed as continuing, as a bar to, or as a waiver or release of, any subsequent right, remedy or recourse as to a subsequent event. 
 7. LIABILITY FOR DEFICIENCY. Debtor shall at all times remain liable for any deficiency remaining on the Obligations for which Debtor is liable after any disposition of any or all of the Collateral and after Administrative
Agent’s application of any proceeds to the Obligations. 
 8. POWER OF ATTORNEY. Debtor hereby irrevocably appoints
Administrative Agent, with full power of substitution, as Debtor’s attorney-in-fact, coupled with an interest, with full power, in Administrative Agent’s own name or in the name of Debtor to do any or all of the following at any time after
the occurrence and during continuation of an Event of Default: 
 (a) Endorse any checks, drafts, money orders, notes, and other instruments
or documents representing or evidencing the Collateral, or proceeds of the Collateral; 
 (b) Pay or discharge claims, demands, liens,
security interests, encumbrances, or taxes affecting or threatened against any or all of the Collateral; 
 (c) Collect or receive payment of
all Accounts, General Intangibles, instruments or other Collateral; 
 (d) Execute any invoices relating to any Account, any draft against
any Account Debtor, any notice to any Account Debtor, any proof of claim in bankruptcy, any notice of lien, claim of mechanic’s, materialman’s or other lien, or assignment or satisfaction of mechanic’s, materialman’s or other
lien relating to any item of Collateral; 
 (e) Grant any extension of time to pay any Account, compromise claims and settle Accounts for
less than face value thereof, and execute all releases and other documents in connection therewith; 
  

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 (f) Commence,
prosecute or defend any action or proceeding relating to any of the Collateral; 
 (g) Receive and open all mail addressed to Debtor and, in
the exercise of such right, Administrative Agent shall have the right, in Debtor’s name, to notify the Post Office authorities to change the address for the delivery of mail addressed to Debtor to such other address as Administrative Agent may
designate, including Administrative Agent’s address. Administrative Agent shall promptly turn over to Debtor all of such mail not relating to the Collateral; 
 (h) Direct any financial institution which is a participant with Administrative Agent in extensions of credit to or for the benefit of Debtor, or which is an institution with which any deposit account or securities
account is maintained, to pay to, Administrative Agent all monies on deposit by Debtor with said financial institution which are payable by said financial institution to Debtor, regardless of any loss of interest, charge or penalty as a result of
payment before maturity; 
 (i) Settle and adjust, and give releases of, any insurance claim that relates to any of the Collateral, obtain
payment of claim, and make all determinations and decisions with respect to any such policy of insurance, and endorse Debtor’s name on any check, draft, instrument or other item of payment or the proceeds of such policies of insurance;

 (j) Instruct any accountant or other third person having custody or control of any books or records belonging or relating to the
Collateral to give Administrative Agent full rights of access with respect thereto; 
 (k) Execute on behalf of Debtor any document
exercising, transferring or assigning any option to purchase, sell or otherwise dispose of or to lease, as lessor or lessee, any real or personal property; 
 (l) Sell, transfer, pledge, make any agreement with respect to or otherwise deal with any of the Collateral as though Administrative Agent were the owner thereof for all purposes; and 
 (m) Execute on behalf of Debtor any and all documents and instruments (including notices of assignment) required under the Federal Assignment of Claims
Act for the direct payment of Accounts to Administrative Agent. 
 9. WAIVERS. 
 9.1 Application of Payments. Debtor waives the right to direct the application of any and all payments or collections at any time or times
hereafter received by Administrative Agent on account of any Obligations, and Debtor agrees that Administrative Agent shall have the continuing exclusive right to apply and reapply such payments or collections to the Obligations in any manner as
Administrative Agent may deem advisable. 
  

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 9.2 Notices of
Demand, Etc. Debtor waives demand, protest, notice of protest, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension or renewal of any or all
commercial paper, accounts, documents, instruments, chattel paper, and guaranties at any time held by Administrative Agent on which Debtor may in anyway be liable. 
 9.3 Confidentiality of Accounting. Debtor waives the right to assert a confidential relationship, if any, Debtor may have with any accounting firm and/or service bureau in connection with any information
requested by Administrative Agent pursuant to or in accordance with this Security Agreement, and agrees that Administrative Agent may contact directly any such accounting firm and/or service bureau in order to obtain such information. 
 10. ACTIONS. Administrative Agent shall have the right, but not the obligation, to commence, appear in, or defend any action or proceeding which
affects or which Administrative Agent determines may affect: (a) the Collateral; (b) Debtor’s or Administrative Agent’s rights or obligations under the Loan Documents; (c) Debtor’s or Administrative Agent’s rights
under this Security Agreement; or (d) the Loans. Whether or not Debtor is in default under the Loan Documents, Administrative Agent shall at all times have the right to take any and all actions which Administrative Agent in Administrative
Agent’s good faith business judgment determines to be necessary or appropriate to protect Administrative Agent’s interest in connection with the Loans. 
 11. INDEMNITY. Debtor agrees to defend, indemnify and hold harmless Administrative Agent and each Lender and their respective officers, employees, and agents against: (a) all obligations, demands, claims,
and liabilities claimed or asserted by any other party related to or in connection with the transactions contemplated by this Security Agreement, or the Collateral and (b) all losses or expenses in any way suffered, incurred or paid by
Administrative Agent or any Lender as a result of or in any way arising out of, following or consequential to the transactions between Lenders and Administrative Agent and Debtor, under this Security Agreement or the Collateral (including without
limitation, reasonable attorneys fees and reasonable expenses), except for losses arising from or out of Administrative Agent’s or such Lender’s gross negligence or willful misconduct. 
 12. MISCELLANEOUS. 
 12.1 Taxes and
Other Expenses Regarding the Collateral. If Debtor fails to pay promptly when due to any person or entity, monies which Debtor is required to pay by reason of any provision in this Security Agreement, Administrative Agent may, but need not, pay
the same and charge Debtor’s account therefor, and Debtor shall promptly reimburse Administrative Agent therefor. All such sums shall be Administrative Agent Expenses hereunder. Any payments made by Administrative Agent shall not constitute:
(a) an agreement by Administrative Agent to make similar payments in the future, or (b) a waiver by Administrative Agent of any default under this Security Agreement. Administrative Agent need not inquire as to, or contest the validity of,
any such expense, tax, security interest, encumbrance or lien and the receipt of the usual official notice for the payment thereof shall he conclusive evidence that the same was validly due and owing. 
  

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 12.2 Notices.
Any notice, demand or request required hereunder shall be made in the, manner set forth in the Credit Agreement. 
 12.3 Release of
Collateral. Administrative Agent shall promptly file UCC termination statements and any other instruments as necessary upon any Disposition by Debtor of any items or item of Collateral, to the extent such Disposition is permitted under the
Credit Agreement. 
 12.4 Termination. At such time as Debtor shall completely satisfy all of the obligations secured hereunder,
Administrative Agent shall execute and deliver to Debtor all instruments as may be necessary or proper to reinvest in Debtor full title to the property assigned hereunder, subject to any disposition thereof which may have been made by Administrative
Agent pursuant hereto. 
 12.5 Course of Dealing. No course of dealing, nor any failure to exercise, nor any delay in exercising any
right, power or privilege hereunder shall operate as a waiver thereof. 
 12.6 Amendment. This Security Agreement may be modified only
by a written agreement signed by Debtor and the Administrative Agent. 
 12.7 Agreement Binding, Assignment. This Security Agreement
shall be binding and deemed effective when executed by Debtor and Administrative Agent. This Security Agreement shall bind and inure to the benefit of the respective successors and assigns of each of the parties; provided, however, that
Debtor may not assign this Security Agreement or any rights hereunder without Administrative Agent’s prior written consent and any prohibited assignment shall be absolutely void. No consent to an assignment by Administrative Agent shall release
Debtor or any guarantor from their obligations to Administrative Agent or Lenders. Administrative Agent reserves the right to sell, assign, transfer, negotiate or grant participations in all or any part of, or any interest in, any Administrative
Agent’s rights and benefits hereunder to the extent and in the manner provided for in Section 10.4 of the Credit Agreement. In connection therewith, Administrative Agent or Lenders may disclose all documents and information which
Administrative Agent or any Lender now have or hereafter may have relating to Debtor or Debtor’s business, subject to Debtor’s reasonable confidentiality requirements and the provisions of Section 9.3 hereof. 
 12.8 Article and Section Headings. Article and section headings and article and section numbers have been set forth herein for convenience only.
Unless the contrary is compelled by the context, everything contained in each article and section applies equally to this entire Security Agreement. 
 12.9 Conflict or Credit Agreement Modifications. To the extent that there is an explicit conflict between the terms of the Credit Agreement and this Security Agreement, the terms of the Credit Agreement shall
control. Any future changes or modifications to the Credit Agreement shall apply to and modify this Security Agreement, to the extent that such change or modification would reasonably be construed to apply to this Security Agreement. 
  

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	  	Epicor Software Corporation

  
 12.10
Construction. Neither this Security Agreement nor any uncertainty or ambiguity herein shall be construed or resolved against Administrative Agent, Lenders or Debtor, whether under any rule of construction or otherwise. On the contrary, this
Security Agreement has been reviewed by all parties and shall be construed and interpreted according to the ordinary meaning of the words used so as to fairly accomplish the purposes and intentions of all parties hereto. 
 12.11 Time of Essence. Time is of the essence of each provision of this Security Agreement. 
 12.12 No Third Party Beneficiaries. This Security Agreement and the Loan Documents are entered into for the sole protection and benefit of
Administrative Agent, any Lenders, Debtor and guarantors (if any), as applicable, and their respective permitted successors and assigns. No other Person shall have any rights or causes of action under this Security Agreement or the Loan Documents.

 12.13 Performance of Covenants. Debtor shall perform all of its covenants under this Security Agreement at its sole cost and
expense. 
 12.14 No Waiver by Administrative Agent or Lenders. No waiver by the Administrative Agent or any Lender of any of their
rights or remedies in connection with the Loan Documents shall be effective unless such waiver is in writing and signed by the Administrative Agent or Lenders as required by the Credit Agreement. 
 12.15 Term. This Security Agreement shall continue in full force and effect as long as any of the Obligations are outstanding. 
 12.16 Severability. Each provision of this Security Agreement shall be severable from every other provision of this Security Agreement for the
purpose of determining the legal enforceability of any specific provision. 
 12.17 Integration. Except as to currently existing
obligations of Debtor to Lenders, all prior agreements, understandings, representations, warranties, and negotiations between the parties whether written or oral, if any, relating to the subject matter hereof are merged into this Security Agreement.

 12.18 Successors. This Security Agreement shall be binding upon and inure to the benefit of Debtor, the Administrative Agent and
the Lenders and their respective permitted successors and assigns. 
  

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 12.19
Counterparts. This Security Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute the same instrument. 
 [Signature page follows] 
  

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	  	Epicor Software Corporation

  
 IN WITNESS WHEREOF,
Debtor has executed and delivered this Security Agreement, and Administrative Agent has accepted this Security Agreement, on the date first hereinabove written. 
  

			
	EPICOR SOFTWARE CORPORATION, a Delaware corporation
		
	By:	 	 /s/ Michael A. Piraino

		
	Title:	 	 Chief Financial Officer and Executive Vice President

	
	 KEYBANK NATIONAL ASSOCIATION, as
 Administrative Agent

		
	By:	 	 /s/ Thomas A. Crandell

		
	Title:	 	 Senior Vice President

  

 23 

 SECURITY AGREEMENT 
 (Personal Property) 
 THIS SECURITY AGREEMENT (“Security Agreement”) is made as of March 30, 2006, by and between CRS RETAIL SYSTEMS INC., a New York
corporation (“Debtor”), and KEYBANK NATIONAL ASSOCIATION, as Administrative Agent (“KeyBank” or “Administrative Agent”) for the parties
identified as Lenders (together with KeyBank in its capacity as a Lender, the “Lenders”) under that certain Credit Agreement dated as of March 30, 2006 (as amended from time to time, the “Credit Agreement”)
among Epicor Software Corporation (the “Borrower”), Administrative Agent and the Lenders. 
 RECITALS

 A. Pursuant to the Credit Agreement, the Lenders shall make various advances and will provide Borrower with certain letters of credit
(the “Letters of Credit”). 
 B. Section 4.1(a) of the Credit Agreement requires that each Guarantor execute and
deliver a security agreement substantially in the form of the Security Agreement and grant to Administrative Agent, for itself and the ratable benefit of the Lenders, a security interest in its assets to secure its Obligations. 
 C. Debtor is a Guarantor. 
 D. Debtor as
owner of the assets encumbered hereby, desires to enter into this Security Agreement to secure payment and performance of the Obligations under the Guaranty. 
 AGREEMENT 
 NOW, THEREFORE, for good and valuable
consideration, receipt and adequacy of which is hereby acknowledged, the parties agree as follows: 
 1. GENERAL. 
 1.1 Definitions. For purposes of this Security Agreement, the following terms shall have the meanings specified below. In addition terms not
defined below which are defined in Article 8 or Article 9 of the UCC or in the Credit Agreement shall have the meaning specified therein. 
 (a) Account Debtors. The term “Account Debtors” means all persons who now are or hereafter become in any way obligated, liable, or responsible for any payment of any kind in connection with any or all of the Accounts.

 (b) Accounts. The term “Accounts” shall have the meaning provided in the UCC and shall include, without limitation, all
presently existing and hereafter arising accounts (as defined in the UCC), contract rights, royalties, and other forms of obligations owing to Debtor arising out of (i) the sale or lease of goods, (ii) the sale or licensing of software,

			
	 Security Agreement
	  	CRS Retail Systems Inc.

  
 
patents, trademarks, copyrights and other intellectual property or technology, (iii) the rendering of services (whether or not earned by performance),
or (iv) any credit insurance, guaranties, and other security therefor, as well as all merchandise returned to or reclaimed by Debtor. 
 (c) Administrative Agent. The term “Administrative Agent” shall have the meaning given to such term in the preamble to this Security Agreement. 
 (d) Bankruptcy Code. The term “Bankruptcy Code” shall mean the Bankruptcy Reform Act of 1978 (11 U.S.C. § 101-1330) as now enacted or hereafter modified. 
 (e) Certificates of Ownership. The term “Certificates of Ownership” shall mean all of Debtor’s certificates of title. 

(f) Collateral. The term “Collateral” shall mean the personal property assets identified as “Collateral” in Exhibit
A to this Security Agreement. 
 (g) Copyrights. The term “Copyrights” shall have the meaning provided in the UCC and
shall include, without limitation, all copyright rights, copyright applications, copyright registrations and like protections in each work or authorship and derivative work thereof, whether published or unpublished and whether or not the same also
constitutes a trade secret, now or hereafter existing, created, acquired or held. 
 (h) Debtor’s Books. The term
“Debtor’s Books” shall mean all of Debtor’s books and records including, but not limited to, minute books, ledgers, records indicating, summarizing or evidencing Debtor’s assets, liabilities, the Collateral, the Obligations,
and all information relating thereto; records indicating, summarizing or evidencing Debtor’s business operations or financial condition; and all computer programs, disc or tape files, printouts, runs, and other computer prepared information and
the equipment containing such information. 
 (i) Deposit Account. The term “Deposit Accounts” shall have the meaning
provided in the UCC. 
 (j) Dispose or Disposition. The term “Dispose” or “Disposition” shall mean any sale,
lease, transfer or other disposition of the Inventory (including any sale leaseback transaction). 
 (k) Equipment. The term
“Equipment” shall have the meaning provided in the UCC, wherever located, and shall include, without limitation, machinery, machine tools, motors, controls, attachments, parts, tools, and accessories incidental thereto, computer and office
equipment, furniture, furnishings, fixtures, motor vehicles, trailers and rolling stock; and all substitutions, replacements, accessories, additions, attachments, improvements, accessions, Proceeds and products of the foregoing. 
  

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	  	CRS Retail Systems Inc.

  
 (1) Event of
Default. The term “Event of Default” shall have the meaning given to such term in Section 5 of this Security Agreement. 
 (m) General Intangibles. The term “General Intangibles” shall have the meaning provided in the UCC, and shall include without limitation, all interests or claims on insurance policies; all interests in any partnership; all
Intellectual Property Collateral; trade names, trade name rights; trademarks, trademark rights; copyrights, patents, and all applications therefor; licenses, permits, franchises, and like privileges or rights issued by any governmental or regulatory
authority; income tax refunds; customer lists; route lists, purchase orders, computer programs, computer disks, computer tapes; design rights, payments of insurance, claims and causes of action; and all guaranty claims which are not classified as
supporting obligations, co-op memberships, leasehold interests in personal property, security interests or other security held by or granted to the Debtor to secure payment by an account debtor of any of the Accounts. 
 (n) Governmental Authority. The term “Governmental Authority” shall mean (i) any international, foreign, federal, state, county or
municipal government, or political subdivision thereof, (ii) any governmental or quasi-governmental agency, authority, board, bureau, commission, department, instrumentality, central bank or public body, or (iii) any court, administrative
tribunal or public utility. 
 (o) Intellectual Property Collateral. The term “Intellectual Property Collateral” shall mean
all of the following assets now owned or hereafter acquired: 
 (i) Copyrights, Trademarks, Patents, and Mask Works;

 (ii) Licenses or other rights to use any of the Copyrights, Patents, Trademarks, or Mask Works, and all license fees and
royalties arising from such use to the extent permitted by such license or rights; 
 (iii) Any and all trade secrets, and
any and all intellectual property rights in computer software and computer software products now or hereafter existing, created, acquired or held; 
 (iv) Any and all design rights which may be available to Debtor now or hereafter existing, created, acquired or held; 
 (v) Any and all claims for damages by way of past, present and future infringement of any of the rights included above, with the right, but not the obligation, to sue for and collect such damages for said use or
infringement of the intellectual property rights identified above; 
 (vi) All “domain names” of Debtor;

  

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	  	CRS Retail Systems Inc.

  
 (vii)
All amendments, renewals and extensions of any of the Copyrights, Trademarks, Patents, or Mask Works; 
 (viii) All contracts
and contract rights relating to any of the foregoing; and 
 (ix) All Proceeds of the foregoing. 
 (p) Inventory. The term “Inventory” shall have the meaning provided in the UCC, and shall include, without limitation, merchandise, raw
materials, parts, supplies, packing and shipping materials, work in process and finished products intended for sale or lease or to be furnished under a contract of service, of every kind and description now or at any time hereafter owned by or in
the custody or possession, actual or constructive, of Debtor, including such inventory as is temporarily out of its custody or possession or in transit and including any returns upon any accounts or other proceeds, including insurance proceeds,
resulting from the sale or disposition of any of the foregoing and any documents of title representing any of the above. 
 (q)
Lenders. The term “Lenders” shall have the meaning given to such term in the preamble to this Security Agreement. 
 (r)
Lender Expenses. The term “Lender Expenses” means all costs and expenses incurred by Administrative Agent and/or the Lenders in connection with this Security Agreement or the transactions contemplated hereby, including, without
limitation, (i) all costs or expenses required to be paid by Debtor under this Security Agreement which are paid or advanced by Administrative Agent and/or the Lenders; (ii) all costs or expenses required to be paid by Debtor under the
Credit Agreement which are paid or advanced by Administrative Agent and/or the Lenders; (iii) taxes and insurance premiums of every nature and kind of Debtor paid by Administrative Agent and/or the Lenders; (iv) filing, recording,
publication, search fees, appraiser fees, auditor fees paid or incurred by Lenders in connection with Administrative Agent’s and/or Lenders’ transactions with Debtor; (v) costs and expenses incurred by Administrative Agent and/or the
Lenders in collecting or realizing upon the Collateral (with or without suit), to correct any default or enforce any provision of this Security Agreement, and costs and expenses of suit incurred by Administrative Agent and/or the Lenders in
enforcing or defending this Security Agreement or any portion hereof; and (vi) reasonable attorneys’ fees and expenses incurred by Administrative Agent and/or the Lenders in advising, structuring, drafting, reviewing, amending,
terminating, enforcing, defending or concerning this Security Agreement, any portion hereof, any agreement related hereto, or any of the transactions contemplated hereby, whether or not suit is brought, and including, but not limited to, any
expenses incurred in any proceedings or case in the United States Bankruptcy Courts in enforcing or defending its rights in its collateral, under this Security Agreement or under any note or other document executed in connection with this Security
Agreement. 
  

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 (s) Licenses.
The term “Licenses” shall mean all licenses or other rights to use any of the Copyrights, Patents, Trademarks, or Mask Works and all license fees and royalties arising from such use to the extent permitted by such license or right.

 (t) Lien. The term “Lien” shall mean any mortgage, pledge, hypothecation, assignment, deposit arrangement (including in
the nature of, cash collateral accounts or security interests), encumbrance, lien (statutory or other), fixed or floating charge, or other security interest of any kind or nature whatsoever (including any conditional sale or other title retention
agreement, any financing lease having substantially the same economic effect as any of the foregoing, and the filing of any financing statement under the UCC or comparable laws of any jurisdiction), including the interest of a purchaser of accounts
receivable. 
 (u) Loan Documents. The term “Loan Documents” shall have the meaning given to such term in the Credit
Agreement, including all extensions, modifications, renewals or amendments to such Loan Documents, and shall include all other documents executed in connection therewith. 
 (v) Mask Works. The term “Mask Works” shall have the meaning provided in the UCC and shall include without limitation all mask work or
similar rights available for the protection of semiconductor chips, now owned or hereafter acquired. 
 (w) Material Adverse Effect.
The term “Material Adverse Effect” shall mean any set of circumstances or events which (i) has any material adverse effect upon the validity or enforceability of any Loan Document, (ii) is material and adverse to the financial
condition, business, assets or operations of Debtor, or (iii) materially impairs the ability of Debtor or Borrower to perform the Obligations. 
 (x) Negotiable Collateral. The term “Negotiable Collateral” shall mean all of Debtor’s present and future letters of credit (of which it is a beneficiary), notes, drafts, instruments, securities,
documents of title, and chattel paper. 
 (y) Obligations. The term “Obligations” shall have the meaning given to such term
in the Credit Agreement and the Guaranty, including whether Debtor may be liable individually or jointly, or whether recovery upon such debt may be or become barred by any statute of limitations or otherwise unenforceable, including all
attorneys’ fees and costs now or hereafter payable by Debtor or the Borrower to the Administrative Agent and/or the Lenders under the Loan Documents or in connection with the collection and enforcement of such debts, obligations and
liabilities. Notwithstanding anything to the contrary contained in this Security Agreement, this Security Agreement shall not secure and the term “Obligations” shall not include any debts that are or may hereafter constitute “consumer
credit” which is subject to the disclosure requirements of the federal Truth-In Lending Act (15 U.S.C. Section 1601, et seq.) or any similar state law in effect from time to time, unless Administrative Agent and Debtor shall
otherwise agree in a separate written agreement. 
  

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 (z) Patents.
The term “Patents” shall have the meaning provided in the UCC and shall include without limitation all patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals,
reissues, extensions and continuations-in-part of the same. 
 (aa) Priority Liens. The term “Priority Liens” shall mean
and refer to (i) Liens on any of Debtor’s personal property the purchase price and related acquisition costs of which are financed by third-party lender as permitted by the Credit Agreement; (ii) Liens in existence on the date any
asset becomes Collateral, to the extent such asset is taken, with the express written consent of Administrative Agent, subject to such Lien; (iii) Liens that are Permitted Liens that must be perfected by possession and the third-party to whom
such Lien is granted has possession of the Collateral relating thereto and such third-party has not entered into any agreement altering such priority; (iv) Liens (including tax liens) in favor of any Governmental Authority which pursuant to
statute or law creating such Lien and other applicable law, have priority over the Liens granted under this Security Agreement and (v) Liens set forth on Exhibit C hereto. 
 (bb) Proceeds. The term “Proceeds” shall have the meaning provided in the UCC and shall include without limitation whatever is received
upon the sale, lease, exchange, collection or other disposition of Collateral or proceeds, including, without limitation, proceeds of insurance covering Collateral, tax refunds, and any and all accounts, notes, instruments, chattel paper, equipment,
money, deposit accounts, securities accounts, goods, or other tangible and intangible property of Debtor resulting from the sale or other disposition of the Collateral, and the proceeds thereof. 
 (cc) Security Agreement. The term “Security Agreement” shall mean this Security Agreement, any concurrent or subsequent rider to this
Security Agreement and any extensions, supplements, amendments or modifications to this Security Agreement and/or to any such rider. 
 (dd)
Trademarks. The term “Trademarks” shall have the meaning provided in the UCC and shall include without limitation any trademarks and service marks, whether registered or not, application to register and registrations of the same and
like protections, and the entire goodwill of the business of Debtor connected with and symbolized by such trademarks. 
 (ee) UCC.
The term “UCC” shall mean the Uniform Commercial Code of the State of California, as presently in force and effect and any replacements therefore as and when such replacements become effective. 
 1.2 Accounting Terms. All accounting terms and computations shall be based upon generally accepted accounting principles consistently applied.

  

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 2. SECURITY
INTEREST. 
 2.1 Security Interest. 
 (a) As security for the prompt and complete payment and performance of all the Obligations, Debtor hereby grants to Administrative Agent (as Administrative Agent for itself and for the ratable benefit of the Lenders)
a first priority security interest (subject to Priority Liens) in all of Debtor’s right, title interest in, to and under the Collateral described in Exhibit A. Notwithstanding the foregoing, the security interest granted herein shall not
extend to and the term “Collateral” shall not include (i) any General Intangibles of the Debtor (whether owned or held as licensee or lessee or otherwise) to the extent that the granting of a security interest therein would be
contrary to applicable law or create a default under any agreement governing such property, right or license (but only if such restrictions are enforceable as a matter of law); or (ii) any equipment financed by another lender or lessor under
documentation that prohibits the granting of a second lien thereon executed prior to the date of this Agreement or which is a Permitted Lien. 
 (b) Administrative Agent’s security interest in the Collateral shall attach to the Collateral without further act on the part of the Administrative Agent, Lenders or Debtor. 
 (c) Except for Priority Liens, in which case Administrative Agent’s security interest shall be junior to third parties holding such Priority Liens,
such security interest constitutes a valid, first priority security interest in the presently existing Collateral, and will constitute a valid, security interest in Collateral acquired after the date hereof. 
 2.2 Security Documents; Attorney-In-Fact. 
 (a) Administrative Agent may file all financing statements and continuation statements as it may deem necessary to perfect and maintain perfected Administrative Agent’s security interest. Debtor shall execute and deliver, or cause to
be executed and delivered, to Administrative Agent, concurrently with Debtor’s execution of this Security Agreement, and at any time or times hereafter at the request of Administrative Agent, all documents which Administrative Agent may
reasonably request, in form satisfactory to Administrative Agent, to perfect and maintain perfected Administrative Agent’s security interests in the Collateral and in order to fully consummate all of the transactions contemplated under this
Security Agreement. 
 (b) Debtor hereby irrevocably makes, constitutes and appoints Administrative Agent to act on Debtor’s behalf as
Debtor’s true and lawful attorney with power to sign the name of Debtor on any of the above-described documents or on any other similar documents which need to be executed, recorded, and/or filed in order to perfect or continue perfected
Administrative Agent’s security interest in the Collateral. 
  

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 (c) The appointment
of Administrative Agent as Debtor’s attorney, and each and every one of Administrative Agent’s rights and powers, being coupled with an interest, are irrevocable so long as any Obligations remain unpaid or unperformed. 
 3. REPRESENTATIONS AND WARRANTIES. In addition to the representations and warranties of Debtor set forth in the Credit Agreement, which are
incorporated herein by reference, Debtor represents and warrants that as of the date hereof and as of the date of each Request for Extension of Credit under the Credit Agreement: 
 3.1 State of Incorporation: Place of Business. Debtor is a corporation validly existing and in good standing under the laws of the State of New
York; as of the date hereof, Debtor’s chief executive office and principal place of business is located at 18200 Von Karman Avenue, Suite 1000, Irvine, California 92612. 
 3.2 Tangible Collateral. Tangible Collateral is in good operating condition and repair, normal wear and tear excepted. 
 3.3 No Offsets. To the best of Debtor’s knowledge, each account, account receivable and right to payment and each instrument, document,
chattel paper and other agreement constituting or evidencing Collateral is (or will be when arising or issued) a valid, genuine and legally enforceable obligation, subject to no defense, set off or counterclaim (other than those arising in the
ordinary course of business) of the account debtor or other obligor named therein or in Debtor’s records pertaining thereto as being obligated to pay such obligation. 
 3.4 Warranties and Representations Cumulative. The warranties, representations and agreements set forth herein shall be cumulative and in addition
to any and all other warranties, representations and agreements which Debtor shall give, or cause to be given, to Administrative Agent, either now or hereafter. 
 4. COVENANTS. Debtor hereby covenants and agrees that during the term hereof and until all Obligations (other than inchoate indemnity obligations) are fully paid and performed: 
 4.1 Accounts. 
 (a) Debtor will not
discount any accounts owed by customers (including, without limitation, rights to payment evidenced by chattel paper or an instrument, commercial tort claims, investment property, and letter of credit rights) or evidence of indebtedness except
(i) to Administrative Agent or (ii) for such discounts as are customarily provided for prompt payment or settlement of delinquent accounts. 
 (b) Debtor will not sell any account (including, without limitation, Accounts, rights to payment evidenced by chattel paper or an instrument, commercial tort claims, investment property, and letter of credit rights)
or evidence of indebtedness except in the ordinary course of business. 
  

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 4.2
Notifications. Debtor shall promptly notify Administrative Agent of any material loss or material damage to any material item of Collateral. 
 4.3 Good Repair. Debtor shall (i) maintain, preserve and protect the Collateral necessary in the operation of its business in good order and condition, subject to ordinary wear and tear in the ordinary course of business,
(ii) not permit any waste of the Collateral, except where failure to do so would not reasonably be expected to have a Material Adverse Effect and (iii) keep and maintain the Collateral in material compliance with all environmental laws.

 4.4 Inspection. At any time during regular business hours and as often as reasonably requested upon reasonable notice, permit
Administrative Agent or any Lender, or any employee, agent or representative thereof, to examine, audit and make copies and abstracts from Debtor’s records and books of account related to the Collateral and to visit and inspect its properties
and to discuss its affairs, finances and accounts with any of its officers and key employees, and, upon request, furnish promptly to Administrative Agent or any Lender true copies of all financial information and internal management reports made
available to their senior management. Notwithstanding any provision of this Security Agreement to the contrary, so long as no Event of Default shall have occurred and be continuing, Debtor shall not be required to disclose, permit the inspection,
examination, photocopying or making extracts of, or discuss, any document, information or other matter that (i) constitutes non-financial trade secrets or non-financial proprietary information, or (ii) the disclosure of which to
Administrative Agent or any Lender, or their designated representative, is then prohibited by law or any agreement binding on Debtor that was not entered into by Debtor for the purpose of concealing information from Administrative Agent or Lenders.
Debtor shall, however, furnish to Administrative Agent such information concerning Debtor’s intellectual property (including, without limitation, application and registration numbers for any filings in connection with such intellectual
property) as is reasonably necessary to permit Administrative Agent (on behalf of itself and the other Lenders) to perfect a security interest in such intellectual property. 
 4.5 Reports. Upon the Administrative Agent’s request but in no event more than once in any twelve (12) consecutive months unless an
Event of Default exists, Debtor shall deliver to Administrative Agent such reports and information available to Debtor’s management concerning the Collateral as Administrative Agent may reasonably request. All reports and information provided
to Administrative Agent by Debtor shall be complete and accurate in all material respects at the time provided. 
 4.6 Delivery.
Debtor shall, if Administrative Agent at any time so request (whether the request is made before or after the occurrence of an Event of Default), promptly deliver to Administrative Agent any instrument, document, chattel paper or Certificate of
Ownership constituting Collateral, duly endorsed or assigned by Debtor. 
  

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 4.7 Use. Debtor
shall not use or keep any Collateral, or permit it to be used or kept, negligently or for any unlawful purpose or in violation of any Laws or orders of any Governmental Authority applicable to Debtor, its assets, its business and the Collateral, the
noncompliance with which would reasonably be expected to have a Material Adverse Effect. 
 4.8 Fixtures. Debtor shall not permit any
material item of tangible Collateral to become part of or to be affixed to any real property without first assuring to the reasonable satisfaction of Administrative Agent that: (i) Administrative Agent’s Lien will be prior and senior to
any interest or lien then held or thereafter acquired by any mortgagee or encumbrancer of such real property or the owner or purchaser of any interest therein; and (ii) Administrative Agent shall have the right to remove any Collateral from
such real property at any time and without any unreasonable restraint or impediment. 
 4.9 Statutes. To the extent that the UCC is
superceded by another statute, Debtor shall take such action as is reasonably requested by Administrative Agent to enforce, perfect, protect, implement, continue, maintain and preserve Administrative Agent’s right hereunder and under the other
Loan Documents and the priority of the Administrative Agent’s lien. 
 4.10 Deposit Accounts. For all Deposit Accounts that
Debtor now or hereafter maintains with any financial institutions other than Administrative Agent (“Third Party Bank”), Debtor shall promptly execute a Deposit Account Control Agreement in substantially the form set forth in
Exhibit B or other form reasonably acceptable to Administrative Agent and shall promptly execute, and obtain the execution of, such Deposit Account Control Agreement by the respective Third Party Bank. 
 4.11 Securities Accounts. For all Securities Accounts that Debtor now or hereafter maintains with any institutions other than Administrative Agent
(“Third Party Institution”), Debtor shall promptly execute a Securities Account Control Agreement in a form reasonably acceptable to Administrative Agent and shall promptly obtain the execution of such Securities Account Control
Agreement by the respective Third Party Institution. Debtor shall not hold any assets in any Securities Account maintained by Debtor that would not be subject to Administrative Agent’s perfected security interest, unless (i) Debtor
executes and causes the execution of an account control agreement such that Administrative Agent’s security interest in such assets are perfected by such agreement, or (ii) Debtor has executed such other agreements or documents as are
necessary to provide and perfect a lien on such assets. 
 4.12 Equipment. Without limiting the generality of this Section 4,
upon Administrative Agent’s request, Debtor shall provide the Administrative Agent with complete and accurate schedules containing (i) a description of each material item of Equipment; and (ii) such other information regarding the
Equipment as the Administrative Agent may reasonably require. 
  

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 4.13 Letters of
Credit. To the extent that Debtor holds as beneficiary any Letters of Credit, at the request of Administrative Agent, whether or not an Event of Default has occurred, Debtor will use its reasonable efforts to obtain the issuing bank’s
consent to the Administrative Agent’s lien on such Letter of Credit and recognition of Administrative Agent’s right to draw on such Letter of Credit, in the place of Debtor and in accordance with the terms of such Letter of Credit, during
the continuance of the Event of Default, in connection with Administrative Agent’s exercise of available remedies. 
 4.14
Lawsuits. To the extent the Debtor hereafter holds or acquires a cause of action for any claim in any material amount, at the request of Administrative Agent, whether or not an Event of Default has occurred, Debtor will execute such documents
as Administrative Agent may request to grant and reflect Administrative Agent’s lien on such cause of action. 
 4.15 Inventory.

 (a) Debtor shall not make any Disposition except in the ordinary course of business or as set forth in the Credit Agreement. 

(b) Without limiting the generality of Section 4.4 above, Debtor shall maintain records containing entries of all material reportable
transactions relating to the Inventory, including accurate records showing (i) the current Inventory stock held by Debtor; (ii) the cost and sales records of the Inventory; and (iii) the kinds, types, qualities and quantities of the
Inventory. 
 (c) Neither Administrative Agent nor any Lender shall be directly or indirectly liable or responsible in any way or under any
circumstances to Debtor or any other party (i) for the safe keeping of the Inventory; (ii) any loss of, damage to or destruction of the Inventory occurring or arising in any manner from any cause (other than loss or damage arising from
Administrative Agent’s or any Lender’s gross negligence or willful misconduct); (iii) any decrease in the value of the Inventory; or (iv) any act or omission by any carrier, warehouse operator, bailee, forwarding agent, or other
party dealing with all or part of the Inventory. 
 4.16 Accounts. 
 (a) Upon Administrative Agent’s request exercised no more often than three (3) times during any period of twelve (12) consecutive months,
Debtor shall furnish Administrative Agent access to copies of all contracts, orders, invoices, shipping instructions, delivery receipts, bills of lading, and other similar documents for any goods, the sale or disposition of which gives rise to an
Account (collectively the “Accounts Receivable Documentation”). Upon Administrative Agent’s request, Debtor shall also furnish Administrative Agent with an aged accounts receivable report. Administrative Agent shall have the
right from time to time to verify the validity, amount and any other matters relating to any or all of the Accounts directly with the respective Account Debtors in any manner, in Debtor’s name. 
  

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 (b) Prior to the
occurrence of an Event of Default, Debtor shall collect the Accounts, at Debtor’s sole cost and expense. Upon the occurrence and during the continuation of an Event of Default, upon the request of Administrative Agent (i) Administrative
Agent shall have the exclusive right to make all collections on the Accounts and (ii) Debtor shall deliver any amounts collected on such Accounts to Administrative Agent, as directed by Administrative Agent. 
 (c) All checks, drafts, money orders, notes, instruments, documents, and other non-cash proceeds of the Accounts delivered to Administrative Agent in
payment or on account of the Obligations shall not constitute payment except as provided in the UCC. 
 (d) Debtor shall at all times in all
material respects perform and discharge all obligations of Debtor to each Account Debtor in accordance with the terms of all documents, contracts, invoices, and other agreements between Debtor and such Account Debtor. 
 (e) Without Administrative Agent’s prior written consent, Debtor shall not compromise, adjust, or grant any discount, credit, allowance, or
extension of time for payment to any Account Debtors except in the ordinary course of Debtor’s business. 
 4.17 Further
Assurances. At any time and from time to time Debtor shall execute and deliver such further instruments and take such further action as may reasonably be requested by Administrative Agent to effect the purposes of this Security Agreement and to
maintain, preserve and protect the Collateral and Administrative Agent’s and Lenders’ security interest therein. 
 5. EVENTS OF
DEFAULT. The occurrence of any one or more of the following events shall constitute an Event of Default under this Security Agreement at the option of Administrative Agent: 
 5.1 Breach of Security Agreement. (i) Any representation or warranty hereunder or in any Loan Document proves to have been incorrect in any
material respect when made or deemed made, (ii) Debtor breaches any provision of this Security Agreement which cannot be cured or (iii) the breach by Debtor of any other provision of this Security Agreement that remains uncured for a
period of thirty (30) days. 
 5.2 Breach of Other Agreements. The occurrence and continuance of an Event of Default under the
Credit Agreement. 
 5.3 Lien Priority. Administrative Agent shall cease to have a valid and perfected first priority security
interest upon any material item of the Collateral subject only to Priority Liens. 
  

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 5.4 Seizure of
Assets. If all or any material item of the Collateral is attached, seized, subjected to a writ or distress warrant, or are levied upon and such occurrence could reasonably be expected to have a Material Adverse Effect. 
 6. ADMINISTRATIVE AGENT’S RIGHTS AND REMEDIES. The exercise of remedies hereunder shall be made by Administrative Agent on behalf of itself
and for the ratable benefit of the Lenders upon the terms and conditions contained herein or as set forth in Section 8.3 of the Credit Agreement. If an Event of Default shall have occurred and is continuing and has not been cured or waived in
accordance with the terms hereof or the terms of the Credit Agreement, Administrative Agent shall have the following rights and powers and may, at Administrative Agent’s option, without notice of its election and without demand to the extent
permitted by Section 8.3 of the Credit Agreement, do any one or more of the following, all of which are hereby authorized by Debtor: 
 6.1 UCC Rights. Administrative Agent shall have all of the rights and remedies of a secured party under the UCC and under all other applicable laws. 
 6.2 Protection of Collateral. Administrative Agent may, without notice to or demand upon Debtor or any guarantor, make such payments and do such acts as Administrative Agent considers necessary or reasonable to
protect its security interest in the Collateral, to pay, purchase, contest or compromise any encumbrance, charge or lien which in the opinion of Administrative Agent appears to be prior or superior to Administrative Agent’s security interest
and to pay all expenses incurred in connection therewith. 
 6.3 Possession of Collateral. Administrative Agent, without a breach of
the peace, may enter any of the premises of Debtor and search for, take possession of, remove, keep or store any or all of the Collateral. If Administrative Agent seeks to take possession of any or all of the Collateral by court process, Debtor
irrevocably and unconditionally agrees that a receiver may be appointed by a court for such purpose without regard to the adequacy of the security for the Obligations. Administrative Agent shall have the right to remain on Debtor’s premises or
cause a custodian to remain thereon in exclusive control of such premises without charge for as long as Administrative Agent deems necessary in order to complete the enforcement of its rights under this Security Agreement. If Administrative Agent
seeks possession of any or all of the Collateral by court process, Debtor irrevocably waives (a) any bond and any surety or security relating thereto required by any statute, court rule or otherwise as an incident or condition to such
possession; (b) any demand for possession prior to the commencement of any suit or action to recover possession; and (c) any requirement that Administrative Agent retain possession of and not dispose of such Collateral until after trial or
final judgment. 
 6.4 Preparation of Collateral. Administrative Agent may complete processing, manufacturing or repair all or any
part of the Collateral prior to a disposition and, for such purpose and for the purpose of removal, Administrative Agent shall have the right to use Debtor’s premises, vehicles, hoists, lifts, cranes, equipment and all other property without
charge. Administrative Agent may sell, ship, reclaim, lease or otherwise dispose of all or any part of the Collateral in its condition at the time Administrative Agent obtains possession of such Collateral or after further manufacturing, processing,
or repair. 
  

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 6.5 Foreclose on
Collateral. Administrative Agent may sell, lease or otherwise dispose of the Collateral at either public or private sales, or both, by way of one or more contracts or transactions, for cash or on terms, in such manner and at such places
(including Debtor’s premises) as is commercially reasonable in the opinion of Administrative Agent. It is not necessary that the Collateral be present at any such sale or that Administrative Agent have obtained possession of the Collateral.

 (a) Administrative Agent shall give the Debtor and each holder of a security interest in the Collateral who has filed with Administrative
Agent a written request for notice, a notice in writing of the time and place of public sale, or, if the sale is a private sale or some other disposition other than a public sale is to be made of the Collateral, the time on or after which the
private sale or other disposition is to be made. The notice shall be personally delivered or mailed, postage prepaid, to Debtor as provided in Section 12.2 of this Security Agreement, at least ten (10) calendar days before the date fixed
for the sale, or at least ten (10) calendar days before the date on or after which the private sale or other disposition is to be made, unless the Collateral is perishable or threatens to decline speedily in value or is to be sold on a
recognized market. Notice to parties other than Debtor claiming an interest in the Collateral shall be sent to such addresses as they have furnished to Administrative Agent. If the sale is to be a public sale, Administrative Agent shall also give
notice of the time and place by publishing a notice one time at least ten (10) calendar days before the date of the sale in a newspaper of general circulation in the county in which the sale is to be held. 
 (b) In taking such action Administrative Agent shall have a license to use any trademarks, trade names or all Intellectual Property in disposing of the
assets. 
 6.6 Accounts. With respect to the Accounts, and without limiting Administrative Agent’s rights above: 
 (a) Administrative Agent may direct any or all Account Debtors to make payment directly to Administrative Agent or to a specified agent of Administrative
Agent. 
 (b) Administrative Agent may demand, collect, receive and give receipts for any and all money and other property due or to become
due in connection with the Accounts, in Administrative Agent’s or Debtor’s name. 
 (c) Administrative Agent may file any claim
and take any other action in any court of law or equity which Administrative Agent determines to be appropriate for the purpose of collecting any or all of the Accounts; provided, however, that Administrative Agent shall not be obligated in
any manner to make any demand or to make any inquiry as to the nature or sufficiency of any payment received by it, or to present or file any claim or take any action to collect or enforce the payment of any or all of the Accounts. 
  

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 (d) Debtor, at
Administrative Agent’s request, shall, and Administrative Agent, at Administrative Agent’s option may, give notice in form acceptable to Administrative Agent, to the Account Debtors: (i) of Debtor’s grant of a security interest
in the Accounts to Administrative Agent; and (ii) of such additional information and instructions concerning Administrative Agent’s rights under this Security Agreement as Administrative Agent in Administrative Agent’s good faith
business judgment determines to be necessary or appropriate. 
 (e) Debtor shall, promptly following Administrative Agent’s request,
deliver to Administrative Agent the originals of all Accounts Receivable Documentation together with the originals of all instruments, chattel paper, security agreements, guaranties, and other documents and property evidencing or securing the
Accounts in the same form as received by Debtor, each of which shall be properly endorsed by Debtor to Administrative Agent, with recourse. 
 (f) Administrative Agent shall have the right to settle, accept reduced amounts, adjust disputes and claims directly with, and give releases on behalf of Debtor to Account Debtors, upon such terms as Administrative Agent, in Administrative
Agent’s good faith business judgment, determines to be appropriate. 
 (g) Except as otherwise provided by the UCC and except for any
of the following arising from Administrative Agent’s or any Lender’s gross negligence or willful misconduct, Administrative Agent and each Lender shall not be directly or indirectly liable or responsible in any way or under any
circumstances to Debtor or any other party for: (i) any shortage or discrepancy in, damage to, or loss or destruction of, any goods, the sale or other disposition of which gives rise to an Account; (ii) any act, omission, error or delay of
any kind by Administrative Agent in settling, failing to settle, collecting, or failing to collect any Account, including any act or omission which results in the loss or impairment of the Debtor’s Account, including any act or omission which
results in the loss or impairment of the Debtor’s rights against any third person; (iii) settling any Account for less than the full amount hereof; (iv) any failure or delay by Administrative Agent in enforcing or collecting any
payment under any Account; or (v) the performance or observance of any or all of Debtor’s duties, obligations, representations, or the warranties under any other agreement or document relating to any or all of the Collateral, including the
Accounts. 
 (h) If for any reason Debtor receives any payment in connection with any of the Accounts following the occurrence and during
the continuance of an Event of Default, Debtor: (i) shall immediately pay or deliver such payment to Administrative Agent in the original form in which received by Debtor; (ii) shall endorse to Administrative Agent, with recourse, all
checks, drafts, money orders, notes, and other instruments or documents representing such payment; (iii) shall not commingle such payment with any of Debtor’s other funds or property; and (iv) shall hold such payment separate and
apart from Debtor’s other funds and property in an express trust for Lenders until paid or delivered to Administrative Agent. 
  

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 6.7 Deposit and
Investment Accounts. Administrative Agent may deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any Deposit Account Control Agreement, Securities Account Control Agreement or similar
agreement providing control of any Collateral. 
 6.8 Collection. Administrative Agent may take possession of and endorse and collect
any or all notes, checks, drafts, money orders, or other instruments of payment relating to the Collateral (including payments made under or with respect to any policy of insurance). 
 6.9 Postponement. Any public sale of any or all of the Collateral may be postponed from time to time by public announcement at the time and place
last scheduled for the sale. 
 6.10 Discharge of Other Claims. Administrative Agent’s sale or disposition of any or all of the
Collateral shall transfer to the purchaser all of the Debtor’s rights in such Collateral and discharge all security interests and liens subordinate to Administrative Agent’s security interest in the Collateral, and the purchaser shall
acquire such Collateral free of all such subordinate interests and liens. 
 6.11 Information. Without limiting the generality of this
Section 6, it shall conclusively be deemed to be commercially reasonable for Administrative Agent to direct any prospective purchaser of any or all of the Collateral to Debtor to ascertain all information concerning the status of the
Collateral. 
 6.12 Other Disposition. The Administrative Agent’s disposition of any or all of the Collateral in any manner which
differs from the procedures specified above shall not be deemed to be commercially unreasonable to the extent such disposition complies with the applicable provisions of the UCC. 
 6.13 Judicial Action. Administrative Agent may reduce Administrative Agent’s claims for breach of any of the Obligations to judgment and
foreclose or otherwise enforce its security interest in any or all of the Collateral by any available judicial procedure. If Administrative Agent has reduced its claims for breach of any of the obligations to judgment, the lien of any levy which may
be made on any or all of the Collateral by virtue of any execution based upon such judgment shall relate back to the date of Administrative Agent’s perfection of its security interest in such Collateral. A judicial sale pursuant to such
execution shall constitute a foreclosure of Administrative Agent’s security interest by judicial procedure, and Administrative Agent may purchase at such sale and thereafter hold the Collateral free of all rights of Debtor therein. 

 

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 6.14 Receiver.
Administrative Agent may obtain the appointment of a receiver to take possession of and, at the option of Administrative Agent, to collect, sell or dispose of all or part of the Collateral. 
 6.15 Discharge Claims. Administrative Agent may discharge claims demands, liens, security interests, encumbrances and taxes affecting any or all
of the Collateral and take such other actions as Administrative Agent determines to be necessary or appropriate to protect the Collateral and Administrative Agent’s security interest therein. Administrative Agent, without releasing Debtor or
any other party from any of the Obligations, may perform any of the Obligations in such manner and to such extent as Administrative Agent determine to be necessary or appropriate to protect the Collateral and Administrative Agent’s security
interest therein. 
 6.16 Proceeds of Sale. The proceeds of any sale or disposition of the Collateral by Administrative Agent shall be
applied in the following order of priority: 
 (a) First, to all liabilities, obligations, costs, and expenses, including reasonable
attorneys’ fees and costs, incurred by Administrative Agent in exercising any of its rights or remedies under this Security Agreement, including the costs and expenses of retaking, holding, and selling any or all of the Collateral and the costs
and expenses of enforcing and collecting upon any or all of the Accounts; 
 (b) Second, to the payment of the Obligations in such
order and amounts as Administrative Agent may determine in Administrative Agent’s discretion; 
 (c) Third, to (i) the
satisfaction of indebtedness secured by any subordinate security interest in the Collateral if written demand therefor is received by Administrative Agent before distribution of any such proceeds; and (ii) to the satisfaction of any subordinate
attachment lien or execution lien if notice of the levy of attachment or execution is received by Administrative Agent before distribution of any such proceeds. If requested by Administrative Agent the holder of a subordinate security interest in
the Collateral shall furnish Administrative Agent with proof of its interest in the Collateral acceptable to Administrative Agent, and unless such holder does so, Administrative Agent shall have no obligation to comply with such holder’s
demand; and 
 (d) Fourth, the surplus, if any, shall be paid to Debtor. 
 6.17 Remedies Cumulative. The remedies of Administrative Agent, as provided herein, shall be cumulative and concurrent, and may be pursued
singularly, successively or together, at the sole discretion of Administrative Agent, and may be exercised as often as occasion therefor shall arise. No act of omission or commission by Administrative Agent, including specifically any failure to
exercise any right, remedy or recourse, shall be deemed to be a waiver or release of the same, such waiver or release to be effected only through a written document executed by Administrative Agent and then only to the extent specifically recited
therein. A waiver or release with reference to any one event shall not be construed as continuing, as a bar to, or as a waiver or release of, any subsequent right, remedy or recourse as to a subsequent event. 
  

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 7. LIABILITY FOR
DEFICIENCY. Debtor shall at all times remain liable for any deficiency remaining on the Obligations for which Debtor is liable after any disposition of any or all of the Collateral and after Administrative Agent’s application of any
proceeds to the Obligations. 
 8. POWER OF ATTORNEY. Debtor hereby irrevocably appoints Administrative Agent, with full power of
substitution, as Debtor’s attorney-in-fact, coupled with an interest, with full power, in Administrative Agent’s own name or in the name of Debtor to do any or all of the following at any time after the occurrence and during continuation
of an Event of Default: 
 (a) Endorse any checks, drafts, money orders, notes, and other instruments or documents representing or evidencing
the Collateral, or proceeds of the Collateral; 
 (b) Pay or discharge claims, demands, liens, security interests, encumbrances, or taxes
affecting or threatened against any or all of the Collateral; 
 (c) Collect or receive payment of all Accounts, General Intangibles,
instruments or other Collateral; 
 (d) Execute any invoices relating to any Account, any draft against any Account Debtor, any notice to any
Account Debtor, any proof of claim in bankruptcy, any notice of lien, claim of mechanic’s, materialman’s or other lien, or assignment or satisfaction of mechanic’s, materialman’s or other lien relating to any item of Collateral;

 (e) Grant any extension of time to pay any Account, compromise claims and settle Accounts for less than face value thereof, and execute
all releases and other documents in connection therewith; 
 (f) Commence, prosecute or defend any action or proceeding relating to any of
the Collateral; 
 (g) Receive and open all mail addressed to Debtor and, in the exercise of such right, Administrative Agent shall have the
right, in Debtor’s name, to notify the Post Office authorities to change the address for the delivery of mail addressed to Debtor to such other address as Administrative Agent may designate, including Administrative Agent’s address.
Administrative Agent shall promptly turn over to Debtor all of such mail not relating to the Collateral; 
  

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 (h) Direct any
financial institution which is a participant with Administrative Agent in extensions of credit to or for the benefit of Debtor, or which is an institution with which any deposit account or securities account is maintained, to pay to, Administrative
Agent all monies on deposit by Debtor with said financial institution which are payable by said financial institution to Debtor, regardless of any loss of interest, charge or penalty as a result of payment before maturity; 
 (i) Settle and adjust, and give releases of, any insurance claim that relates to any of the Collateral, obtain payment of claim, and make all
determinations and decisions with respect to any such policy of insurance, and endorse Debtor’s name on any check, draft, instrument or other item of payment or the proceeds of such policies of insurance; 
 (j) Instruct any accountant or other third person having custody or control of any books or records belonging or relating to the Collateral to give
Administrative Agent full rights of access with respect thereto; 
 (k) Execute on behalf of Debtor any document exercising, transferring or
assigning any option to purchase, sell or otherwise dispose of or to lease, as lessor or lessee, any real or personal property; 
 (l) Sell,
transfer, pledge, make any agreement with respect to or otherwise deal with any of the Collateral as though Administrative Agent were the owner thereof for all purposes; and 
 (m) Execute on behalf of Debtor any and all documents and instruments (including notices of assignment) required under the Federal Assignment of Claims
Act for the direct payment of Accounts to Administrative Agent. 
 9. WAIVERS. 
 9.1 Application of Payments. Debtor waives the right to direct the application of any and all payments or collections at any time or times
hereafter received by Administrative Agent on account of any Obligations, and Debtor agrees that Administrative Agent shall have the continuing exclusive right to apply and reapply such payments or collections to the Obligations in any manner as
Administrative Agent may deem advisable. 
 9.2 Notices of Demand, Etc. Debtor waives demand, protest, notice of protest, notice of
default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension or renewal of any or all commercial paper, accounts, documents, instruments, chattel paper, and
guaranties at any time held by Administrative Agent on which Debtor may in anyway be liable. 
 9.3 Confidentiality of Accounting.
Debtor waives the right to assert a confidential relationship, if any, Debtor may have with any accounting firm and/or service bureau in connection with any information requested by Administrative Agent pursuant to or in accordance with this
Security Agreement, and agrees that Administrative Agent may contact directly any such accounting firm and/or service bureau in order to obtain such information. 
  

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 10. ACTIONS.
Administrative Agent shall have the right, but not the obligation, to commence, appear in, or defend any action or proceeding which affects or which Administrative Agent determines may affect: (a) the Collateral; (b) Debtor’s or
Administrative Agent’s rights or obligations under the Loan Documents; (c) Debtor’s or Administrative Agent’s rights under this Security Agreement; or (d) the Loans. Whether or not Debtor or Borrower is in default under the
Loan Documents, Administrative Agent shall at all times have the right to take any and all actions which Administrative Agent in Administrative Agent’s good faith business judgment determines to be necessary or appropriate to protect
Administrative Agent’s interest in connection with the Loans. 
 11. INDEMNITY. Debtor agrees to defend, indemnify and hold
harmless Administrative Agent and each Lender and their respective officers, employees, and agents against: (a) all obligations, demands, claims, and liabilities claimed or asserted by any other party related to or in connection with the
transactions contemplated by this Security Agreement, or the Collateral and (b) all losses or expenses in any way suffered, incurred or paid by Administrative Agent or any Lender as a result of or in any way arising out of, following or
consequential to the transactions between Lenders and Administrative Agent and Debtor, under this Security Agreement or the Collateral (including without limitation, reasonable attorneys fees and reasonable expenses), except for losses arising from
or out of Administrative Agent’s or such Lender’s gross negligence or willful misconduct. 
 12. MISCELLANEOUS. 

12.1 Taxes and Other Expenses Regarding the Collateral. If Debtor fails to pay promptly when due to any person or entity, monies which Debtor is
required to pay by reason of any provision in this Security Agreement, Administrative Agent may, but need not, pay the same and charge Debtor’s account therefor, and Debtor shall promptly reimburse Administrative Agent therefor. All such sums
shall be Administrative Agent Expenses hereunder. Any payments made by Administrative Agent shall not constitute: (a) an agreement by Administrative Agent to make similar payments in the future, or (b) a waiver by Administrative Agent of
any default under this Security Agreement. Administrative Agent need not inquire as to, or contest the validity of, any such expense, tax, security interest, encumbrance or lien and the receipt of the usual official notice for the payment thereof
shall he conclusive evidence that the same was validly due and owing. 
 12.2 Notices. Any notice, demand or request required
hereunder shall be made in the, manner set forth in the Credit Agreement. 
 12.3 Release of Collateral. Administrative Agent shall
promptly file UCC termination statements and any other instruments as necessary upon any Disposition by Debtor of any items or item of Collateral, to the extent such Disposition is permitted under the Credit Agreement. 
  

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 12.4
Termination. At such time as Debtor shall completely satisfy all of the obligations secured hereunder, Administrative Agent shall execute and deliver to Debtor all instruments as may be necessary or proper to reinvest in Debtor full title to
the property assigned hereunder, subject to any disposition thereof which may have been made by Administrative Agent pursuant hereto. 
 12.5
Course of Dealing. No course of dealing, nor any failure to exercise, nor any delay in exercising any right, power or privilege hereunder shall operate as a waiver thereof. 
 12.6 Amendment. This Security Agreement may be modified only by a written agreement signed by Debtor and the Administrative Agent. 
 12.7 Agreement Binding, Assignment. This Security Agreement shall be binding and deemed effective when executed by Debtor and Administrative
Agent. This Security Agreement shall bind and inure to the benefit of the respective successors and assigns of each of the parties; provided, however, that Debtor may not assign this Security Agreement or any rights hereunder without
Administrative Agent’s prior written consent and any prohibited assignment shall be absolutely void. No consent to an assignment by Administrative Agent shall release Debtor or any guarantor from their obligations to Administrative Agent or
Lenders. Administrative Agent reserves the right to sell, assign, transfer, negotiate or grant participations in all or any part of, or any interest in, any Administrative Agent’s rights and benefits hereunder to the extent and in the manner
provided for in Section 10.4 of the Credit Agreement. In connection therewith, Administrative Agent or Lenders may disclose all documents and information which Administrative Agent or any Lender now have or hereafter may have relating to Debtor
or Debtor’s business, subject to Debtor’s reasonable confidentiality requirements and the provisions of Section 9.3 hereof. 
 12.8 Article and Section Headings. Article and section headings and article and section numbers have been set forth herein for convenience only. Unless the contrary is compelled by the context, everything contained in each article
and section applies equally to this entire Security Agreement. 
 12.9 Conflict or Credit Agreement Modifications. To the extent that
there is an explicit conflict between the terms of the Credit Agreement and this Security Agreement, the terms of the Credit Agreement shall control. Any future changes or modifications to the Credit Agreement shall apply to and modify this Security
Agreement, to the extent that such change or modification would reasonably be construed to apply to this Security Agreement. 
 12.10
Construction. Neither this Security Agreement nor any uncertainty or ambiguity herein shall be construed or resolved against Administrative Agent, Lenders or Debtor, whether under any rule of construction or otherwise. On the contrary, this
Security Agreement has been reviewed by all parties and shall be construed and interpreted according to the ordinary meaning of the words used so as to fairly accomplish the purposes and intentions of all parties hereto. 
  

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 12.11 Time of
Essence. Time is of the essence of each provision of this Security Agreement. 
 12.12 No Third Party Beneficiaries. This Security
Agreement and the Loan Documents are entered into for the sole protection and benefit of Administrative Agent, any Lenders, Debtor and guarantors (if any), as applicable, and their respective permitted successors and assigns. No other Person shall
have any rights or causes of action under this Security Agreement or the Loan Documents. 
 12.13 Performance of Covenants. Debtor
shall perform all of its covenants under this Security Agreement at its sole cost and expense. 
 12.14 No Waiver by Administrative Agent
or Lenders. No waiver by the Administrative Agent or any Lender of any of their rights or remedies in connection with the Loan Documents shall be effective unless such waiver is in writing and signed by the Administrative Agent or Lenders as
required by the Credit Agreement. 
 12.15 Term. This Security Agreement shall continue in full force and effect as long as any of the
Obligations are outstanding. 
 12.16 Severability. Each provision of this Security Agreement shall be severable from every other
provision of this Security Agreement for the purpose of determining the legal enforceability of any specific provision. 
 12.17
Integration. Except as to currently existing obligations of Debtor to Lenders, all prior agreements, understandings, representations, warranties, and negotiations between the parties whether written or oral, if any, relating to the subject
matter hereof are merged into this Security Agreement. 
 12.18 Successors. This Security Agreement shall be binding upon and inure to
the benefit of Debtor, the Administrative Agent and the Lenders and their respective permitted successors and assigns. 
 12.19
Counterparts. This Security Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute the same instrument. 
 [Signature page follows] 
  

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 IN WITNESS WHEREOF,
Debtor has executed and delivered this Security Agreement, and Administrative Agent has accepted this Security Agreement, on the date first hereinabove written. 
  

			
	 CRS RETAIL SYSTEMS INC.,
 a New York corporation

		
	By:	 	 /s/ John D. Ireland

		
	Title:	 	 Vice President and General Counsel

	
	 KEYBANK NATIONAL ASSOCIATION,
 as Administrative Agent

		
	By:	 	 /s/ Thomas A. Crandell

		
	Title:	 	 Senior Vice President

  

 23 

 SECURITY AGREEMENT 
 (Personal Property) 
 THIS SECURITY AGREEMENT (“Security Agreement”) is made as of March 30, 2006, by and between CRS RETAIL TECHNOLOGY GROUP,
INC., a Utah corporation (“Debtor”), and KEYBANK NATIONAL ASSOCIATION, as Administrative Agent (“KeyBank” or “Administrative
Agent”) for the parties identified as Lenders (together with KeyBank in its capacity as a Lender, the “Lenders”) under that certain Credit Agreement dated as of March 30, 2006 (as amended from time to time, the
“Credit Agreement”) among Epicor Software Corporation (the “Borrower”), Administrative Agent and the Lenders. 
 RECITALS 
 A. Pursuant to the Credit Agreement, the Lenders shall make various advances and will provide
Borrower with certain letters of credit (the “Letters of Credit”). 
 B. Section 4.1(a) of the Credit Agreement
requires that each Guarantor execute and deliver a security agreement substantially in the form of the Security Agreement and grant to Administrative Agent, for itself and the ratable benefit of the Lenders, a security interest in its assets to
secure its Obligations. 
 C. Debtor is a Guarantor. 
 D. Debtor as owner of the assets encumbered hereby, desires to enter into this Security Agreement to secure payment and performance of the Obligations under the Guaranty. 
 AGREEMENT 
 NOW, THEREFORE, for good and valuable consideration, receipt and adequacy of which is hereby acknowledged, the parties agree as follows: 
 1. GENERAL. 
 1.1 Definitions.
For purposes of this Security Agreement, the following terms shall have the meanings specified below. In addition terms not defined below which are defined in Article 8 or Article 9 of the UCC or in the Credit Agreement shall have the meaning
specified therein. 
 (a) Account Debtors. The term “Account Debtors” means all persons who now are or hereafter become in
any way obligated, liable, or responsible for any payment of any kind in connection with any or all of the Accounts. 
 (b) Accounts.
The term “Accounts” shall have the meaning provided in the UCC and shall include, without limitation, all presently existing and hereafter arising accounts (as defined in the UCC), contract rights, royalties, and other forms of obligations
owing to Debtor arising out of (i) the sale or lease of goods, (ii) the sale or licensing of software, 

			
	 Security Agreement
	  	CRS Retail Technology Group, Inc.

  
 patents, trademarks, copyrights and
other intellectual property or technology, (iii) the rendering of services (whether or not earned by performance), or (iv) any credit insurance, guaranties, and other security therefor, as well as all merchandise returned to or reclaimed
by Debtor. 
 (c) Administrative Agent. The term “Administrative Agent” shall have the meaning given to such term in the
preamble to this Security Agreement. 
 (d) Bankruptcy Code. The term “Bankruptcy Code” shall mean the Bankruptcy Reform
Act of 1978 (11 U.S.C. § 101-1330) as now enacted or hereafter modified. 
 (e) Certificates of Ownership. The term
“Certificates of Ownership” shall mean all of Debtor’s certificates of title. 
 (f) Collateral. The term
“Collateral” shall mean the personal property assets identified as “Collateral” in Exhibit A to this Security Agreement. 
 (g) Copyrights. The term “Copyrights” shall have the meaning provided in the UCC and shall include, without limitation, all copyright rights, copyright applications, copyright registrations and like
protections in each work or authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret, now or hereafter existing, created, acquired or held. 
 (h) Debtor’s Books. The term “Debtor’s Books” shall mean all of Debtor’s books and records including, but not limited
to, minute books, ledgers, records indicating, summarizing or evidencing Debtor’s assets, liabilities, the Collateral, the Obligations, and all information relating thereto; records indicating, summarizing or evidencing Debtor’s business
operations or financial condition; and all computer programs, disc or tape files, printouts, runs, and other computer prepared information and the equipment containing such information. 
 (i) Deposit Account. The term “Deposit Accounts” shall have the meaning provided in the UCC. 
 (j) Dispose or Disposition. The term “Dispose” or “Disposition” shall mean any sale, lease, transfer or other disposition of
the Inventory (including any sale leaseback transaction). 
 (k) Equipment. The term “Equipment” shall have the meaning
provided in the UCC, wherever located, and shall include, without limitation, machinery, machine tools, motors, controls, attachments, parts, tools, and accessories incidental thereto, computer and office equipment, furniture, furnishings, fixtures,
motor vehicles, trailers and rolling stock; and all substitutions, replacements, accessories, additions, attachments, improvements, accessions, Proceeds and products of the foregoing. 
  

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	  	CRS Retail Technology Group, Inc.

  
 (1) Event of
Default. The term “Event of Default” shall have the meaning given to such term in Section 5 of this Security Agreement. 
 (m) General Intangibles. The term “General Intangibles” shall have the meaning provided in the UCC, and shall include without limitation, all interests or claims on insurance policies; all interests in any partnership; all
Intellectual Property Collateral; trade names, trade name rights; trademarks, trademark rights; copyrights, patents, and all applications therefor; licenses, permits, franchises, and like privileges or rights issued by any governmental or regulatory
authority; income tax refunds; customer lists; route lists, purchase orders, computer programs, computer disks, computer tapes; design rights, payments of insurance, claims and causes of action; and all guaranty claims which are not classified as
supporting obligations, co-op memberships, leasehold interests in personal property, security interests or other security held by or granted to the Debtor to secure payment by an account debtor of any of the Accounts. 
 (n) Governmental Authority. The term “Governmental Authority” shall mean (i) any international, foreign, federal, state, county or
municipal government, or political subdivision thereof, (ii) any governmental or quasi-governmental agency, authority, board, bureau, commission, department, instrumentality, central bank or public body, or (iii) any court, administrative
tribunal or public utility. 
 (o) Intellectual Property Collateral. The term “Intellectual Property Collateral” shall mean
all of the following assets now owned or hereafter acquired: 
 (i) Copyrights, Trademarks, Patents, and Mask Works;

 (ii) Licenses or other rights to use any of the Copyrights, Patents, Trademarks, or Mask Works, and all license fees and
royalties arising from such use to the extent permitted by such license or rights; 
 (iii) Any and all trade secrets, and
any and all intellectual property rights in computer software and computer software products now or hereafter existing, created, acquired or held; 
 (iv) Any and all design rights which may be available to Debtor now or hereafter existing, created, acquired or held; 
 (v) Any and all claims for damages by way of past, present and future infringement of any of the rights included above, with the right, but not the obligation, to sue for and collect such damages for said use or
infringement of the intellectual property rights identified above; 
 (vi) All “domain names” of Debtor;

  

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 (vii)
All amendments, renewals and extensions of any of the Copyrights, Trademarks, Patents, or Mask Works; 
 (viii) All contracts
and contract rights relating to any of the foregoing; and 
 (ix) All Proceeds of the foregoing. 
 (p) Inventory. The term “Inventory” shall have the meaning provided in the UCC, and shall include, without limitation, merchandise, raw
materials, parts, supplies, packing and shipping materials, work in process and finished products intended for sale or lease or to be furnished under a contract of service, of every kind and description now or at any time hereafter owned by or in
the custody or possession, actual or constructive, of Debtor, including such inventory as is temporarily out of its custody or possession or in transit and including any returns upon any accounts or other proceeds, including insurance proceeds,
resulting from the sale or disposition of any of the foregoing and any documents of title representing any of the above. 
 (q)
Lenders. The term “Lenders” shall have the meaning given to such term in the preamble to this Security Agreement. 
 (r)
Lender Expenses. The term “Lender Expenses” means all costs and expenses incurred by Administrative Agent and/or the Lenders in connection with this Security Agreement or the transactions contemplated hereby, including, without
limitation, (i) all costs or expenses required to be paid by Debtor under this Security Agreement which are paid or advanced by Administrative Agent and/or the Lenders; (ii) all costs or expenses required to be paid by Debtor under the
Credit Agreement which are paid or advanced by Administrative Agent and/or the Lenders; (iii) taxes and insurance premiums of every nature and kind of Debtor paid by Administrative Agent and/or the Lenders; (iv) filing, recording,
publication, search fees, appraiser fees, auditor fees paid or incurred by Lenders in connection with Administrative Agent’s and/or Lenders’ transactions with Debtor; (v) costs and expenses incurred by Administrative Agent and/or the
Lenders in collecting or realizing upon the Collateral (with or without suit), to correct any default or enforce any provision of this Security Agreement, and costs and expenses of suit incurred by Administrative Agent and/or the Lenders in
enforcing or defending this Security Agreement or any portion hereof; and (vi) reasonable attorneys’ fees and expenses incurred by Administrative Agent and/or the Lenders in advising, structuring, drafting, reviewing, amending,
terminating, enforcing, defending or concerning this Security Agreement, any portion hereof, any agreement related hereto, or any of the transactions contemplated hereby, whether or not suit is brought, and including, but not limited to, any
expenses incurred in any proceedings or case in the United States Bankruptcy Courts in enforcing or defending its rights in its collateral, under this Security Agreement or under any note or other document executed in connection with this Security
Agreement. 
  

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 (s) Licenses.
The term “Licenses” shall mean all licenses or other rights to use any of the Copyrights, Patents, Trademarks, or Mask Works and all license fees and royalties arising from such use to the extent permitted by such license or right.

 (t) Lien. The term “Lien” shall mean any mortgage, pledge, hypothecation, assignment, deposit arrangement (including in
the nature of, cash collateral accounts or security interests), encumbrance, lien (statutory or other), fixed or floating charge, or other security interest of any kind or nature whatsoever (including any conditional sale or other title retention
agreement, any financing lease having substantially the same economic effect as any of the foregoing, and the filing of any financing statement under the UCC or comparable laws of any jurisdiction), including the interest of a purchaser of accounts
receivable. 
 (u) Loan Documents. The term “Loan Documents” shall have the meaning given to such term in the Credit
Agreement, including all extensions, modifications, renewals or amendments to such Loan Documents, and shall include all other documents executed in connection therewith. 
 (v) Mask Works. The term “Mask Works” shall have the meaning provided in the UCC and shall include without limitation all mask work or
similar rights available for the protection of semiconductor chips, now owned or hereafter acquired. 
 (w) Material Adverse Effect.
The term “Material Adverse Effect” shall mean any set of circumstances or events which (i) has any material adverse effect upon the validity or enforceability of any Loan Document, (ii) is material and adverse to the financial
condition, business, assets or operations of Debtor, or (iii) materially impairs the ability of Debtor or Borrower to perform the Obligations. 
 (x) Negotiable Collateral. The term “Negotiable Collateral” shall mean all of Debtor’s present and future letters of credit (of which it is a beneficiary), notes, drafts, instruments, securities,
documents of title, and chattel paper. 
 (y) Obligations. The term “Obligations” shall have the meaning given to such term
in the Credit Agreement and the Guaranty, including whether Debtor may be liable individually or jointly, or whether recovery upon such debt may be or become barred by any statute of limitations or otherwise unenforceable, including all
attorneys’ fees and costs now or hereafter payable by Debtor or the Borrower to the Administrative Agent and/or the Lenders under the Loan Documents or in connection with the collection and enforcement of such debts, obligations and
liabilities. Notwithstanding anything to the contrary contained in this Security Agreement, this Security Agreement shall not secure and the term “Obligations” shall not include any debts that are or may hereafter constitute “consumer
credit” which is subject to the disclosure requirements of the federal Truth-In Lending Act (15 U.S.C. Section 1601, et seq.) or any similar state law in effect from time to time, unless Administrative Agent and Debtor shall
otherwise agree in a separate written agreement. 
  

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 (z) Patents.
The term “Patents” shall have the meaning provided in the UCC and shall include without limitation all patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals,
reissues, extensions and continuations-in-part of the same. 
 (aa) Priority Liens. The term “Priority Liens” shall mean
and refer to (i) Liens on any of Debtor’s personal property the purchase price and related acquisition costs of which are financed by third-party lender as permitted by the Credit Agreement; (ii) Liens in existence on the date any
asset becomes Collateral, to the extent such asset is taken, with the express written consent of Administrative Agent, subject to such Lien; (iii) Liens that are Permitted Liens that must be perfected by possession and the third-party to whom
such Lien is granted has possession of the Collateral relating thereto and such third-party has not entered into any agreement altering such priority; (iv) Liens (including tax liens) in favor of any Governmental Authority which pursuant to
statute or law creating such Lien and other applicable law, have priority over the Liens granted under this Security Agreement and (v) Liens set forth on Exhibit C hereto. 
 (bb) Proceeds. The term “Proceeds” shall have the meaning provided in the UCC and shall include without limitation whatever is received
upon the sale, lease, exchange, collection or other disposition of Collateral or proceeds, including, without limitation, proceeds of insurance covering Collateral, tax refunds, and any and all accounts, notes, instruments, chattel paper, equipment,
money, deposit accounts, securities accounts, goods, or other tangible and intangible property of Debtor resulting from the sale or other disposition of the Collateral, and the proceeds thereof. 
 (cc) Security Agreement. The term “Security Agreement” shall mean this Security Agreement, any concurrent or subsequent rider to this
Security Agreement and any extensions, supplements, amendments or modifications to this Security Agreement and/or to any such rider. 
 (dd)
Trademarks. The term “Trademarks” shall have the meaning provided in the UCC and shall include without limitation any trademarks and service marks, whether registered or not, application to register and registrations of the same and
like protections, and the entire goodwill of the business of Debtor connected with and symbolized by such trademarks. 
 (ee) UCC.
The term “UCC” shall mean the Uniform Commercial Code of the State of California, as presently in force and effect and any replacements therefore as and when such replacements become effective. 
 1.2 Accounting Terms. All accounting terms and computations shall be based upon generally accepted accounting principles consistently applied.

  

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 2. SECURITY
INTEREST. 
 2.1 Security Interest. 
 (a) As security for the prompt and complete payment and performance of all the Obligations, Debtor hereby grants to Administrative Agent (as Administrative Agent for itself and for the ratable benefit of the Lenders)
a first priority security interest (subject to Priority Liens) in all of Debtor’s right, title interest in, to and under the Collateral described in Exhibit A. Notwithstanding the foregoing, the security interest granted herein shall not
extend to and the term “Collateral” shall not include (i) any General Intangibles of the Debtor (whether owned or held as licensee or lessee or otherwise) to the extent that the granting of a security interest therein would be
contrary to applicable law or create a default under any agreement governing such property, right or license (but only if such restrictions are enforceable as a matter of law); or (ii) any equipment financed by another lender or lessor under
documentation that prohibits the granting of a second lien thereon executed prior to the date of this Agreement or which is a Permitted Lien. 
 (b) Administrative Agent’s security interest in the Collateral shall attach to the Collateral without further act on the part of the Administrative Agent, Lenders or Debtor. 
 (c) Except for Priority Liens, in which case Administrative Agent’s security interest shall be junior to third parties holding such Priority Liens,
such security interest constitutes a valid, first priority security interest in the presently existing Collateral, and will constitute a valid, security interest in Collateral acquired after the date hereof. 
 2.2 Security Documents; Attorney-In-Fact. 
 (a) Administrative Agent may file all financing statements and continuation statements as it may deem necessary to perfect and maintain perfected Administrative Agent’s security interest. Debtor shall execute and deliver, or cause to
be executed and delivered, to Administrative Agent, concurrently with Debtor’s execution of this Security Agreement, and at any time or times hereafter at the request of Administrative Agent, all documents which Administrative Agent may
reasonably request, in form satisfactory to Administrative Agent, to perfect and maintain perfected Administrative Agent’s security interests in the Collateral and in order to fully consummate all of the transactions contemplated under this
Security Agreement. 
 (b) Debtor hereby irrevocably makes, constitutes and appoints Administrative Agent to act on Debtor’s behalf as
Debtor’s true and lawful attorney with power to sign the name of Debtor on any of the above-described documents or on any other similar documents which need to be executed, recorded, and/or filed in order to perfect or continue perfected
Administrative Agent’s security interest in the Collateral. 
  

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 (c) The appointment
of Administrative Agent as Debtor’s attorney, and each and every one of Administrative Agent’s rights and powers, being coupled with an interest, are irrevocable so long as any Obligations remain unpaid or unperformed. 
 3. REPRESENTATIONS AND WARRANTIES. In addition to the representations and warranties of Debtor set forth in the Credit Agreement, which are
incorporated herein by reference, Debtor represents and warrants that as of the date hereof and as of the date of each Request for Extension of Credit under the Credit Agreement: 
 3.1 State of Incorporation: Place of Business. Debtor is a corporation validly existing and in good standing under the laws of the State of Utah;
as of the date hereof, Debtor’s chief executive office and principal place of business is located at 18200 Von Karman Avenue, Suite 1000, Irvine, California 92612. 
 3.2 Tangible Collateral. Tangible Collateral is in good operating condition and repair, normal wear and tear excepted. 
 3.3 No Offsets. To the best of Debtor’s knowledge, each account, account receivable and right to payment and each instrument, document, chattel paper and other agreement constituting or evidencing
Collateral is (or will be when arising or issued) a valid, genuine and legally enforceable obligation, subject to no defense, set off or counterclaim (other than those arising in the ordinary course of business) of the account debtor or other
obligor named therein or in Debtor’s records pertaining thereto as being obligated to pay such obligation. 
 3.4 Warranties and
Representations Cumulative. The warranties, representations and agreements set forth herein shall be cumulative and in addition to any and all other warranties, representations and agreements which Debtor shall give, or cause to be given, to
Administrative Agent, either now or hereafter. 
 4. COVENANTS. Debtor hereby covenants and agrees that during the term hereof and
until all Obligations (other than inchoate indemnity obligations) are fully paid and performed: 
 4.1 Accounts. 
 (a) Debtor will not discount any accounts owed by customers (including, without limitation, rights to payment evidenced by chattel paper or an
instrument, commercial tort claims, investment property, and letter of credit rights) or evidence of indebtedness except (i) to Administrative Agent or (ii) for such discounts as are customarily provided for prompt payment or settlement of
delinquent accounts. 
 (b) Debtor will not sell any account (including, without limitation, Accounts, rights to payment evidenced by
chattel paper or an instrument, commercial tort claims, investment property, and letter of credit rights) or evidence of indebtedness except in the ordinary course of business. 
  

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 4.2
Notifications. Debtor shall promptly notify Administrative Agent of any material loss or material damage to any material item of Collateral. 
 4.3 Good Repair. Debtor shall (i) maintain, preserve and protect the Collateral necessary in the operation of its business in good order and condition, subject to ordinary wear and tear in the ordinary course of business,
(ii) not permit any waste of the Collateral, except where failure to do so would not reasonably be expected to have a Material Adverse Effect and (iii) keep and maintain the Collateral in material compliance with all environmental laws.

 4.4 Inspection. At any time during regular business hours and as often as reasonably requested upon reasonable notice, permit
Administrative Agent or any Lender, or any employee, agent or representative thereof, to examine, audit and make copies and abstracts from Debtor’s records and books of account related to the Collateral and to visit and inspect its properties
and to discuss its affairs, finances and accounts with any of its officers and key employees, and, upon request, furnish promptly to Administrative Agent or any Lender true copies of all financial information and internal management reports made
available to their senior management. Notwithstanding any provision of this Security Agreement to the contrary, so long as no Event of Default shall have occurred and be continuing, Debtor shall not be required to disclose, permit the inspection,
examination, photocopying or making extracts of, or discuss, any document, information or other matter that (i) constitutes non-financial trade secrets or non-financial proprietary information, or (ii) the disclosure of which to
Administrative Agent or any Lender, or their designated representative, is then prohibited by law or any agreement binding on Debtor that was not entered into by Debtor for the purpose of concealing information from Administrative Agent or Lenders.
Debtor shall, however, furnish to Administrative Agent such information concerning Debtor’s intellectual property (including, without limitation, application and registration numbers for any filings in connection with such intellectual
property) as is reasonably necessary to permit Administrative Agent (on behalf of itself and the other Lenders) to perfect a security interest in such intellectual property. 
 4.5 Reports. Upon the Administrative Agent’s request but in no event more than once in any twelve (12) consecutive months unless an
Event of Default exists, Debtor shall deliver to Administrative Agent such reports and information available to Debtor’s management concerning the Collateral as Administrative Agent may reasonably request. All reports and information provided
to Administrative Agent by Debtor shall be complete and accurate in all material respects at the time provided. 
 4.6 Delivery.
Debtor shall, if Administrative Agent at any time so request (whether the request is made before or after the occurrence of an Event of Default), promptly deliver to Administrative Agent any instrument, document, chattel paper or Certificate of
Ownership constituting Collateral, duly endorsed or assigned by Debtor. 
  

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 4.7 Use. Debtor
shall not use or keep any Collateral, or permit it to be used or kept, negligently or for any unlawful purpose or in violation of any Laws or orders of any Governmental Authority applicable to Debtor, its assets, its business and the Collateral, the
noncompliance with which would reasonably be expected to have a Material Adverse Effect. 
 4.8 Fixtures. Debtor shall not permit any
material item of tangible Collateral to become part of or to be affixed to any real property without first assuring to the reasonable satisfaction of Administrative Agent that: (i) Administrative Agent’s Lien will be prior and senior to
any interest or lien then held or thereafter acquired by any mortgagee or encumbrancer of such real property or the owner or purchaser of any interest therein; and (ii) Administrative Agent shall have the right to remove any Collateral from
such real property at any time and without any unreasonable restraint or impediment. 
 4.9 Statutes. To the extent that the UCC is
superceded by another statute, Debtor shall take such action as is reasonably requested by Administrative Agent to enforce, perfect, protect, implement, continue, maintain and preserve Administrative Agent’s right hereunder and under the other
Loan Documents and the priority of the Administrative Agent’s lien. 
 4.10 Deposit Accounts. For all Deposit Accounts that
Debtor now or hereafter maintains with any financial institutions other than Administrative Agent (“Third Party Bank”), Debtor shall promptly execute a Deposit Account Control Agreement in substantially the form set forth in
Exhibit B or other form reasonably acceptable to Administrative Agent and shall promptly execute, and obtain the execution of, such Deposit Account Control Agreement by the respective Third Party Bank. 
 4.11 Securities Accounts. For all Securities Accounts that Debtor now or hereafter maintains with any institutions other than Administrative Agent
(“Third Party Institution”), Debtor shall promptly execute a Securities Account Control Agreement in a form reasonably acceptable to Administrative Agent and shall promptly obtain the execution of such Securities Account Control
Agreement by the respective Third Party Institution. Debtor shall not hold any assets in any Securities Account maintained by Debtor that would not be subject to Administrative Agent’s perfected security interest, unless (i) Debtor
executes and causes the execution of an account control agreement such that Administrative Agent’s security interest in such assets are perfected by such agreement, or (ii) Debtor has executed such other agreements or documents as are
necessary to provide and perfect a lien on such assets. 
 4.12 Equipment. Without limiting the generality of this Section 4,
upon Administrative Agent’s request, Debtor shall provide the Administrative Agent with complete and accurate schedules containing (i) a description of each material item of Equipment; and (ii) such other information regarding the
Equipment as the Administrative Agent may reasonably require. 
  

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 4.13 Letters of
Credit. To the extent that Debtor holds as beneficiary any Letters of Credit, at the request of Administrative Agent, whether or not an Event of Default has occurred, Debtor will use its reasonable efforts to obtain the issuing bank’s
consent to the Administrative Agent’s lien on such Letter of Credit and recognition of Administrative Agent’s right to draw on such Letter of Credit, in the place of Debtor and in accordance with the terms of such Letter of Credit, during
the continuance of the Event of Default, in connection with Administrative Agent’s exercise of available remedies. 
 4.14
Lawsuits. To the extent the Debtor hereafter holds or acquires a cause of action for any claim in any material amount, at the request of Administrative Agent, whether or not an Event of Default has occurred, Debtor will execute such documents
as Administrative Agent may request to grant and reflect Administrative Agent’s lien on such cause of action. 
 4.15 Inventory.

 (a) Debtor shall not make any Disposition except in the ordinary course of business or as set forth in the Credit Agreement. 

(b) Without limiting the generality of Section 4.4 above, Debtor shall maintain records containing entries of all material reportable
transactions relating to the Inventory, including accurate records showing (i) the current Inventory stock held by Debtor; (ii) the cost and sales records of the Inventory; and (iii) the kinds, types, qualities and quantities of the
Inventory. 
 (c) Neither Administrative Agent nor any Lender shall be directly or indirectly liable or responsible in any way or under any
circumstances to Debtor or any other party (i) for the safe keeping of the Inventory; (ii) any loss of, damage to or destruction of the Inventory occurring or arising in any manner from any cause (other than loss or damage arising from
Administrative Agent’s or any Lender’s gross negligence or willful misconduct); (iii) any decrease in the value of the Inventory; or (iv) any act or omission by any carrier, warehouse operator, bailee, forwarding agent, or other
party dealing with all or part of the Inventory. 
 4.16 Accounts. 
 (a) Upon Administrative Agent’s request exercised no more often than three (3) times during any period of twelve (12) consecutive months,
Debtor shall furnish Administrative Agent access to copies of all contracts, orders, invoices, shipping instructions, delivery receipts, bills of lading, and other similar documents for any goods, the sale or disposition of which gives rise to an
Account (collectively the “Accounts Receivable Documentation”). Upon Administrative Agent’s request, Debtor shall also furnish Administrative Agent with an aged accounts receivable report. Administrative Agent shall have the
right from time to time to verify the validity, amount and any other matters relating to any or all of the Accounts directly with the respective Account Debtors in any manner, in Debtor’s name. 
  

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 (b) Prior to the
occurrence of an Event of Default, Debtor shall collect the Accounts, at Debtor’s sole cost and expense. Upon the occurrence and during the continuation of an Event of Default, upon the request of Administrative Agent (i) Administrative
Agent shall have the exclusive right to make all collections on the Accounts and (ii) Debtor shall deliver any amounts collected on such Accounts to Administrative Agent, as directed by Administrative Agent. 
 (c) All checks, drafts, money orders, notes, instruments, documents, and other non-cash proceeds of the Accounts delivered to Administrative Agent in
payment or on account of the Obligations shall not constitute payment except as provided in the UCC. 
 (d) Debtor shall at all times in all
material respects perform and discharge all obligations of Debtor to each Account Debtor in accordance with the terms of all documents, contracts, invoices, and other agreements between Debtor and such Account Debtor. 
 (e) Without Administrative Agent’s prior written consent, Debtor shall not compromise, adjust, or grant any discount, credit, allowance, or
extension of time for payment to any Account Debtors except in the ordinary course of Debtor’s business. 
 4.17 Further
Assurances. At any time and from time to time Debtor shall execute and deliver such further instruments and take such further action as may reasonably be requested by Administrative Agent to effect the purposes of this Security Agreement and to
maintain, preserve and protect the Collateral and Administrative Agent’s and Lenders’ security interest therein. 
 5. EVENTS OF
DEFAULT. The occurrence of any one or more of the following events shall constitute an Event of Default under this Security Agreement at the option of Administrative Agent: 
 5.1 Breach of Security Agreement. (i) Any representation or warranty hereunder or in any Loan Document proves to have been incorrect in any
material respect when made or deemed made, (ii) Debtor breaches any provision of this Security Agreement which cannot be cured or (iii) the breach by Debtor of any other provision of this Security Agreement that remains uncured for a
period of thirty (30) days. 
 5.2 Breach of Other Agreements. The occurrence and continuance of an Event of Default under the
Credit Agreement. 
 5.3 Lien Priority. Administrative Agent shall cease to have a valid and perfected first priority security
interest upon any material item of the Collateral subject only to Priority Liens. 
  

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 5.4 Seizure of
Assets. If all or any material item of the Collateral is attached, seized, subjected to a writ or distress warrant, or are levied upon and such occurrence could reasonably be expected to have a Material Adverse Effect. 
 6. ADMINISTRATIVE AGENT’S RIGHTS AND REMEDIES. The exercise of remedies hereunder shall be made by Administrative Agent on behalf of itself
and for the ratable benefit of the Lenders upon the terms and conditions contained herein or as set forth in Section 8.3 of the Credit Agreement. If an Event of Default shall have occurred and is continuing and has not been cured or waived in
accordance with the terms hereof or the terms of the Credit Agreement, Administrative Agent shall have the following rights and powers and may, at Administrative Agent’s option, without notice of its election and without demand to the extent
permitted by Section 8.3 of the Credit Agreement, do any one or more of the following, all of which are hereby authorized by Debtor: 
 6.1 UCC Rights. Administrative Agent shall have all of the rights and remedies of a secured party under the UCC and under all other applicable laws. 
 6.2 Protection of Collateral. Administrative Agent may, without notice to or demand upon Debtor or any guarantor, make such payments and do such acts as Administrative Agent considers necessary or reasonable to
protect its security interest in the Collateral, to pay, purchase, contest or compromise any encumbrance, charge or lien which in the opinion of Administrative Agent appears to be prior or superior to Administrative Agent’s security interest
and to pay all expenses incurred in connection therewith. 
 6.3 Possession of Collateral. Administrative Agent, without a breach of
the peace, may enter any of the premises of Debtor and search for, take possession of, remove, keep or store any or all of the Collateral. If Administrative Agent seeks to take possession of any or all of the Collateral by court process, Debtor
irrevocably and unconditionally agrees that a receiver may be appointed by a court for such purpose without regard to the adequacy of the security for the Obligations. Administrative Agent shall have the right to remain on Debtor’s premises or
cause a custodian to remain thereon in exclusive control of such premises without charge for as long as Administrative Agent deems necessary in order to complete the enforcement of its rights under this Security Agreement. If Administrative Agent
seeks possession of any or all of the Collateral by court process, Debtor irrevocably waives (a) any bond and any surety or security relating thereto required by any statute, court rule or otherwise as an incident or condition to such
possession; (b) any demand for possession prior to the commencement of any suit or action to recover possession; and (c) any requirement that Administrative Agent retain possession of and not dispose of such Collateral until after trial or
final judgment. 
 6.4 Preparation of Collateral. Administrative Agent may complete processing, manufacturing or repair all or any
part of the Collateral prior to a disposition and, for such purpose and for the purpose of removal, Administrative Agent shall have the right to use Debtor’s premises, vehicles, hoists, lifts, cranes, equipment and all other property without
charge. Administrative Agent may sell, ship, reclaim, lease or otherwise dispose of all or any part of the Collateral in its condition at the time Administrative Agent obtains possession of such Collateral or after further manufacturing, processing,
or repair. 
  

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 6.5 Foreclose on
Collateral. Administrative Agent may sell, lease or otherwise dispose of the Collateral at either public or private sales, or both, by way of one or more contracts or transactions, for cash or on terms, in such manner and at such places
(including Debtor’s premises) as is commercially reasonable in the opinion of Administrative Agent. It is not necessary that the Collateral be present at any such sale or that Administrative Agent have obtained possession of the Collateral.

 (a) Administrative Agent shall give the Debtor and each holder of a security interest in the Collateral who has filed with Administrative
Agent a written request for notice, a notice in writing of the time and place of public sale, or, if the sale is a private sale or some other disposition other than a public sale is to be made of the Collateral, the time on or after which the
private sale or other disposition is to be made. The notice shall be personally delivered or mailed, postage prepaid, to Debtor as provided in Section 12.2 of this Security Agreement, at least ten (10) calendar days before the date fixed
for the sale, or at least ten (10) calendar days before the date on or after which the private sale or other disposition is to be made, unless the Collateral is perishable or threatens to decline speedily in value or is to be sold on a
recognized market. Notice to parties other than Debtor claiming an interest in the Collateral shall be sent to such addresses as they have furnished to Administrative Agent. If the sale is to be a public sale, Administrative Agent shall also give
notice of the time and place by publishing a notice one time at least ten (10) calendar days before the date of the sale in a newspaper of general circulation in the county in which the sale is to be held. 
 (b) In taking such action Administrative Agent shall have a license to use any trademarks, trade names or all Intellectual Property in disposing of the
assets. 
 6.6 Accounts. With respect to the Accounts, and without limiting Administrative Agent’s rights above: 
 (a) Administrative Agent may direct any or all Account Debtors to make payment directly to Administrative Agent or to a specified agent of Administrative
Agent. 
 (b) Administrative Agent may demand, collect, receive and give receipts for any and all money and other property due or to become
due in connection with the Accounts, in Administrative Agent’s or Debtor’s name. 
 (c) Administrative Agent may file any claim
and take any other action in any court of law or equity which Administrative Agent determines to be appropriate for the purpose of collecting any or all of the Accounts; provided, however, that Administrative Agent shall not be obligated in
any manner to make any demand or to make any inquiry as to the nature or sufficiency of any payment received by it, or to present or file any claim or take any action to collect or enforce the payment of any or all of the Accounts. 
  

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 (d) Debtor, at
Administrative Agent’s request, shall, and Administrative Agent, at Administrative Agent’s option may, give notice in form acceptable to Administrative Agent, to the Account Debtors: (i) of Debtor’s grant of a security interest
in the Accounts to Administrative Agent; and (ii) of such additional information and instructions concerning Administrative Agent’s rights under this Security Agreement as Administrative Agent in Administrative Agent’s good faith
business judgment determines to be necessary or appropriate. 
 (e) Debtor shall, promptly following Administrative Agent’s request,
deliver to Administrative Agent the originals of all Accounts Receivable Documentation together with the originals of all instruments, chattel paper, security agreements, guaranties, and other documents and property evidencing or securing the
Accounts in the same form as received by Debtor, each of which shall be properly endorsed by Debtor to Administrative Agent, with recourse. 
 (f) Administrative Agent shall have the right to settle, accept reduced amounts, adjust disputes and claims directly with, and give releases on behalf of Debtor to Account Debtors, upon such terms as Administrative Agent, in Administrative
Agent’s good faith business judgment, determines to be appropriate. 
 (g) Except as otherwise provided by the UCC and except for any
of the following arising from Administrative Agent’s or any Lender’s gross negligence or willful misconduct, Administrative Agent and each Lender shall not be directly or indirectly liable or responsible in any way or under any
circumstances to Debtor or any other party for: (i) any shortage or discrepancy in, damage to, or loss or destruction of, any goods, the sale or other disposition of which gives rise to an Account; (ii) any act, omission, error or delay of
any kind by Administrative Agent in settling, failing to settle, collecting, or failing to collect any Account, including any act or omission which results in the loss or impairment of the Debtor’s Account, including any act or omission which
results in the loss or impairment of the Debtor’s rights against any third person; (iii) settling any Account for less than the full amount hereof; (iv) any failure or delay by Administrative Agent in enforcing or collecting any
payment under any Account; or (v) the performance or observance of any or all of Debtor’s duties, obligations, representations, or the warranties under any other agreement or document relating to any or all of the Collateral, including the
Accounts. 
 (h) If for any reason Debtor receives any payment in connection with any of the Accounts following the occurrence and during
the continuance of an Event of Default, Debtor: (i) shall immediately pay or deliver such payment to Administrative Agent in the original form in which received by Debtor; (ii) shall endorse to Administrative Agent, with recourse, all
checks, drafts, money orders, notes, and other instruments or documents representing such payment; (iii) shall not commingle such payment with any of Debtor’s other funds or property; and (iv) shall hold such payment separate and
apart from Debtor’s other funds and property in an express trust for Lenders until paid or delivered to Administrative Agent. 
  

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 6.7 Deposit and
Investment Accounts. Administrative Agent may deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any Deposit Account Control Agreement, Securities Account Control Agreement or similar
agreement providing control of any Collateral. 
 6.8 Collection. Administrative Agent may take possession of and endorse and collect
any or all notes, checks, drafts, money orders, or other instruments of payment relating to the Collateral (including payments made under or with respect to any policy of insurance). 
 6.9 Postponement. Any public sale of any or all of the Collateral may be postponed from time to time by public announcement at the time and place
last scheduled for the sale. 
 6.10 Discharge of Other Claims. Administrative Agent’s sale or disposition of any or all of the
Collateral shall transfer to the purchaser all of the Debtor’s rights in such Collateral and discharge all security interests and liens subordinate to Administrative Agent’s security interest in the Collateral, and the purchaser shall
acquire such Collateral free of all such subordinate interests and liens. 
 6.11 Information. Without limiting the generality of this
Section 6, it shall conclusively be deemed to be commercially reasonable for Administrative Agent to direct any prospective purchaser of any or all of the Collateral to Debtor to ascertain all information concerning the status of the
Collateral. 
 6.12 Other Disposition. The Administrative Agent’s disposition of any or all of the Collateral in any manner which
differs from the procedures specified above shall not be deemed to be commercially unreasonable to the extent such disposition complies with the applicable provisions of the UCC. 
 6.13 Judicial Action. Administrative Agent may reduce Administrative Agent’s claims for breach of any of the Obligations to judgment and
foreclose or otherwise enforce its security interest in any or all of the Collateral by any available judicial procedure. If Administrative Agent has reduced its claims for breach of any of the obligations to judgment, the lien of any levy which may
be made on any or all of the Collateral by virtue of any execution based upon such judgment shall relate back to the date of Administrative Agent’s perfection of its security interest in such Collateral. A judicial sale pursuant to such
execution shall constitute a foreclosure of Administrative Agent’s security interest by judicial procedure, and Administrative Agent may purchase at such sale and thereafter hold the Collateral free of all rights of Debtor therein. 

 

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 6.14 Receiver.
Administrative Agent may obtain the appointment of a receiver to take possession of and, at the option of Administrative Agent, to collect, sell or dispose of all or part of the Collateral. 
 6.15 Discharge Claims. Administrative Agent may discharge claims demands, liens, security interests, encumbrances and taxes affecting any or all
of the Collateral and take such other actions as Administrative Agent determines to be necessary or appropriate to protect the Collateral and Administrative Agent’s security interest therein. Administrative Agent, without releasing Debtor or
any other party from any of the Obligations, may perform any of the Obligations in such manner and to such extent as Administrative Agent determine to be necessary or appropriate to protect the Collateral and Administrative Agent’s security
interest therein. 
 6.16 Proceeds of Sale. The proceeds of any sale or disposition of the Collateral by Administrative Agent shall be
applied in the following order of priority: 
 (a) First, to all liabilities, obligations, costs, and expenses, including reasonable
attorneys’ fees and costs, incurred by Administrative Agent in exercising any of its rights or remedies under this Security Agreement, including the costs and expenses of retaking, holding, and selling any or all of the Collateral and the costs
and expenses of enforcing and collecting upon any or all of the Accounts; 
 (b) Second, to the payment of the Obligations in such
order and amounts as Administrative Agent may determine in Administrative Agent’s discretion; 
 (c) Third, to (i) the
satisfaction of indebtedness secured by any subordinate security interest in the Collateral if written demand therefor is received by Administrative Agent before distribution of any such proceeds; and (ii) to the satisfaction of any subordinate
attachment lien or execution lien if notice of the levy of attachment or execution is received by Administrative Agent before distribution of any such proceeds. If requested by Administrative Agent the holder of a subordinate security interest in
the Collateral shall furnish Administrative Agent with proof of its interest in the Collateral acceptable to Administrative Agent, and unless such holder does so, Administrative Agent shall have no obligation to comply with such holder’s
demand; and 
 (d) Fourth, the surplus, if any, shall be paid to Debtor. 
 6.17 Remedies Cumulative. The remedies of Administrative Agent, as provided herein, shall be cumulative and concurrent, and may be pursued
singularly, successively or together, at the sole discretion of Administrative Agent, and may be exercised as often as occasion therefor shall arise. No act of omission or commission by Administrative Agent, including specifically any failure to
exercise any right, remedy or recourse, shall be deemed to be a waiver or release of the same, such waiver or release to be effected only through a written document executed by Administrative Agent and then only to the extent specifically recited
therein. A waiver or release with reference to any one event shall not be construed as continuing, as a bar to, or as a waiver or release of, any subsequent right, remedy or recourse as to a subsequent event. 
  

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 7. LIABILITY FOR
DEFICIENCY. Debtor shall at all times remain liable for any deficiency remaining on the Obligations for which Debtor is liable after any disposition of any or all of the Collateral and after Administrative Agent’s application of any
proceeds to the Obligations. 
 8. POWER OF ATTORNEY. Debtor hereby irrevocably appoints Administrative Agent, with full power of
substitution, as Debtor’s attorney-in-fact, coupled with an interest, with full power, in Administrative Agent’s own name or in the name of Debtor to do any or all of the following at any time after the occurrence and during continuation
of an Event of Default: 
 (a) Endorse any checks, drafts, money orders, notes, and other instruments or documents representing or evidencing
the Collateral, or proceeds of the Collateral; 
 (b) Pay or discharge claims, demands, liens, security interests, encumbrances, or taxes
affecting or threatened against any or all of the Collateral; 
 (c) Collect or receive payment of all Accounts, General Intangibles,
instruments or other Collateral; 
 (d) Execute any invoices relating to any Account, any draft against any Account Debtor, any notice to any
Account Debtor, any proof of claim in bankruptcy, any notice of lien, claim of mechanic’s, materialman’s or other lien, or assignment or satisfaction of mechanic’s, materialman’s or other lien relating to any item of Collateral;

 (e) Grant any extension of time to pay any Account, compromise claims and settle Accounts for less than face value thereof, and execute
all releases and other documents in connection therewith; 
 (f) Commence, prosecute or defend any action or proceeding relating to any of
the Collateral; 
 (g) Receive and open all mail addressed to Debtor and, in the exercise of such right, Administrative Agent shall have the
right, in Debtor’s name, to notify the Post Office authorities to change the address for the delivery of mail addressed to Debtor to such other address as Administrative Agent may designate, including Administrative Agent’s address.
Administrative Agent shall promptly turn over to Debtor all of such mail not relating to the Collateral; 
  

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 (h) Direct any
financial institution which is a participant with Administrative Agent in extensions of credit to or for the benefit of Debtor, or which is an institution with which any deposit account or securities account is maintained, to pay to, Administrative
Agent all monies on deposit by Debtor with said financial institution which are payable by said financial institution to Debtor, regardless of any loss of interest, charge or penalty as a result of payment before maturity; 
 (i) Settle and adjust, and give releases of, any insurance claim that relates to any of the Collateral, obtain payment of claim, and make all
determinations and decisions with respect to any such policy of insurance, and endorse Debtor’s name on any check, draft, instrument or other item of payment or the proceeds of such policies of insurance; 
 (j) Instruct any accountant or other third person having custody or control of any books or records belonging or relating to the Collateral to give
Administrative Agent full rights of access with respect thereto; 
 (k) Execute on behalf of Debtor any document exercising, transferring or
assigning any option to purchase, sell or otherwise dispose of or to lease, as lessor or lessee, any real or personal property; 
 (l) Sell,
transfer, pledge, make any agreement with respect to or otherwise deal with any of the Collateral as though Administrative Agent were the owner thereof for all purposes; and 
 (m) Execute on behalf of Debtor any and all documents and instruments (including notices of assignment) required under the Federal Assignment of Claims
Act for the direct payment of Accounts to Administrative Agent. 
 9. WAIVERS. 
 9.1 Application of Payments. Debtor waives the right to direct the application of any and all payments or collections at any time or times
hereafter received by Administrative Agent on account of any Obligations, and Debtor agrees that Administrative Agent shall have the continuing exclusive right to apply and reapply such payments or collections to the Obligations in any manner as
Administrative Agent may deem advisable. 
 9.2 Notices of Demand, Etc. Debtor waives demand, protest, notice of protest, notice of
default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension or renewal of any or all commercial paper, accounts, documents, instruments, chattel paper, and
guaranties at any time held by Administrative Agent on which Debtor may in anyway be liable. 
 9.3 Confidentiality of Accounting.
Debtor waives the right to assert a confidential relationship, if any, Debtor may have with any accounting firm and/or service 
  

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 bureau in connection with any
information requested by Administrative Agent pursuant to or in accordance with this Security Agreement, and agrees that Administrative Agent may contact directly any such accounting firm and/or service bureau in order to obtain such information.

 10. ACTIONS. Administrative Agent shall have the right, but not the obligation, to commence, appear in, or defend any action or
proceeding which affects or which Administrative Agent determines may affect: (a) the Collateral; (b) Debtor’s or Administrative Agent’s rights or obligations under the Loan Documents; (c) Debtor’s or Administrative
Agent’s rights under this Security Agreement; or (d) the Loans. Whether or not Debtor or Borrower is in default under the Loan Documents, Administrative Agent shall at all times have the right to take any and all actions which
Administrative Agent in Administrative Agent’s good faith business judgment determines to be necessary or appropriate to protect Administrative Agent’s interest in connection with the Loans. 
 11. INDEMNITY. Debtor agrees to defend, indemnify and hold harmless Administrative Agent and each Lender and their respective officers, employees,
and agents against: (a) all obligations, demands, claims, and liabilities claimed or asserted by any other party related to or in connection with the transactions contemplated by this Security Agreement, or the Collateral and (b) all
losses or expenses in any way suffered, incurred or paid by Administrative Agent or any Lender as a result of or in any way arising out of, following or consequential to the transactions between Lenders and Administrative Agent and Debtor, under
this Security Agreement or the Collateral (including without limitation, reasonable attorneys fees and reasonable expenses), except for losses arising from or out of Administrative Agent’s or such Lender’s gross negligence or willful
misconduct. 
 12. MISCELLANEOUS. 
 12.1 Taxes and Other Expenses Regarding the Collateral. If Debtor fails to pay promptly when due to any person or entity, monies which Debtor is required to pay by reason of any provision in this Security Agreement, Administrative
Agent may, but need not, pay the same and charge Debtor’s account therefor, and Debtor shall promptly reimburse Administrative Agent therefor. All such sums shall be Administrative Agent Expenses hereunder. Any payments made by Administrative
Agent shall not constitute: (a) an agreement by Administrative Agent to make similar payments in the future, or (b) a waiver by Administrative Agent of any default under this Security Agreement. Administrative Agent need not inquire as to,
or contest the validity of, any such expense, tax, security interest, encumbrance or lien and the receipt of the usual official notice for the payment thereof shall he conclusive evidence that the same was validly due and owing. 
 12.2 Notices. Any notice, demand or request required hereunder shall be made in the, manner set forth in the Credit Agreement. 
 12.3 Release of Collateral. Administrative Agent shall promptly file UCC termination statements and any other instruments as necessary upon any
Disposition by Debtor of any items or item of Collateral, to the extent such Disposition is permitted under the Credit Agreement. 
  

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	 Security Agreement
	  	CRS Retail Technology Group, Inc.

  
 12.4
Termination. At such time as Debtor shall completely satisfy all of the obligations secured hereunder, Administrative Agent shall execute and deliver to Debtor all instruments as may be necessary or proper to reinvest in Debtor full title to
the property assigned hereunder, subject to any disposition thereof which may have been made by Administrative Agent pursuant hereto. 
 12.5
Course of Dealing. No course of dealing, nor any failure to exercise, nor any delay in exercising any right, power or privilege hereunder shall operate as a waiver thereof. 
 12.6 Amendment. This Security Agreement may be modified only by a written agreement signed by Debtor and the Administrative Agent. 
 12.7 Agreement Binding, Assignment. This Security Agreement shall be binding and deemed effective when executed by Debtor and Administrative
Agent. This Security Agreement shall bind and inure to the benefit of the respective successors and assigns of each of the parties; provided, however, that Debtor may not assign this Security Agreement or any rights hereunder without
Administrative Agent’s prior written consent and any prohibited assignment shall be absolutely void. No consent to an assignment by Administrative Agent shall release Debtor or any guarantor from their obligations to Administrative Agent or
Lenders. Administrative Agent reserves the right to sell, assign, transfer, negotiate or grant participations in all or any part of, or any interest in, any Administrative Agent’s rights and benefits hereunder to the extent and in the manner
provided for in Section 10.4 of the Credit Agreement. In connection therewith, Administrative Agent or Lenders may disclose all documents and information which Administrative Agent or any Lender now have or hereafter may have relating to Debtor
or Debtor’s business, subject to Debtor’s reasonable confidentiality requirements and the provisions of Section 9.3 hereof. 
 12.8 Article and Section Headings. Article and section headings and article and section numbers have been set forth herein for convenience only. Unless the contrary is compelled by the context, everything contained in each article
and section applies equally to this entire Security Agreement. 
 12.9 Conflict or Credit Agreement Modifications. To the extent that
there is an explicit conflict between the terms of the Credit Agreement and this Security Agreement, the terms of the Credit Agreement shall control. Any future changes or modifications to the Credit Agreement shall apply to and modify this Security
Agreement, to the extent that such change or modification would reasonably be construed to apply to this Security Agreement. 
 12.10
Construction. Neither this Security Agreement nor any uncertainty or ambiguity herein shall be construed or resolved against Administrative Agent, Lenders or Debtor, whether under any rule of construction or otherwise. On the contrary, this
Security Agreement has been reviewed by all parties and shall be construed and interpreted according to the ordinary meaning of the words used so as to fairly accomplish the purposes and intentions of all parties hereto. 
  

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 12.11 Time of
Essence. Time is of the essence of each provision of this Security Agreement. 
 12.12 No Third Party Beneficiaries. This Security
Agreement and the Loan Documents are entered into for the sole protection and benefit of Administrative Agent, any Lenders, Debtor and guarantors (if any), as applicable, and their respective permitted successors and assigns. No other Person shall
have any rights or causes of action under this Security Agreement or the Loan Documents. 
 12.13 Performance of Covenants. Debtor
shall perform all of its covenants under this Security Agreement at its sole cost and expense. 
 12.14 No Waiver by Administrative Agent
or Lenders. No waiver by the Administrative Agent or any Lender of any of their rights or remedies in connection with the Loan Documents shall be effective unless such waiver is in writing and signed by the Administrative Agent or Lenders as
required by the Credit Agreement. 
 12.15 Term. This Security Agreement shall continue in full force and effect as long as any of the
Obligations are outstanding. 
 12.16 Severability. Each provision of this Security Agreement shall be severable from every other
provision of this Security Agreement for the purpose of determining the legal enforceability of any specific provision. 
 12.17
Integration. Except as to currently existing obligations of Debtor to Lenders, all prior agreements, understandings, representations, warranties, and negotiations between the parties whether written or oral, if any, relating to the subject
matter hereof are merged into this Security Agreement. 
 12.18 Successors. This Security Agreement shall be binding upon and inure to
the benefit of Debtor, the Administrative Agent and the Lenders and their respective permitted successors and assigns. 
 12.19
Counterparts. This Security Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute the same instrument. 
 [Signature page follows] 
  

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	 Security Agreement
	  	CRS Retail Technology Group, Inc.

  
 IN WITNESS WHEREOF,
Debtor has executed and delivered this Security Agreement, and Administrative Agent has accepted this Security Agreement, on the date first hereinabove written. 
  

			
	 CRS RETAIL TECHNOLOGY GROUP,
INC.,
 a Utah corporation

		
	 By:
	 	 /s/ John D. Ireland

		
	 Title:
	 	 Vice President and General Counsel

	
	 KEYBANK NATIONAL
ASSOCIATION,
 as Administrative Agent

		
	 By:
	 	 /s/ Thomas A. Crandell

		
	 Title:
	 	 Senior Vice President

  

 23 

 SECURITY AND PLEDGE AGREEMENT

 (Stock) 
 THIS SECURITY AND PLEDGE AGREEMENT (Stock) (this “Pledge Agreement”), is made as of March 30, 2006, by and between CRS RETAIL
TECHNOLOGY GROUP, INC., a Utah corporation (“Debtor”), and KEYBANK NATIONAL ASSOCIATION, as Administrative Agent (the
“Administrative Agent”) for all the parties identified as “Lenders” (the “Lenders”) under that certain Credit Agreement dated as of the date hereof (as amended from time to time, the “Credit
Agreement”) among the Epicor Software Corporation, a Delaware corporation, as Borrower (the “Borrower”), the Administrative Agent and the Lenders party thereto. 
 RECITALS 
 A. Concurrently herewith, Debtor is entering into that
certain Guaranty dated as of the date hereof hereof (as amended from time to time, the “Guaranty”) pertaining to the Obligations defined therein. 
 B. It is a prerequisite to the Lenders entering into the Credit Agreement that Debtor enter into this Pledge Agreement and grant to Administrative Agent, for itself and the ratable benefit of the Lenders, the security
interest hereafter provided to secure the Obligations. 
 C. Debtor, as owner of the assets encumbered hereby, desires to enter into this
Pledge Agreement to secure payment and performance of the Obligations. 
 AGREEMENT 
 NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties
hereto agree as follows: 
 1. DEFINITIONS. For purposes of this Pledge Agreement, the following terms shall have the meanings
specified below. 
 1.1 Administrative Agent. The term “Administrative Agent” shall have the meaning given to such
term in the preamble to this Pledge Agreement. 
 1.2 Bankruptcy Code. The term “Bankruptcy Code” shall mean the
Bankruptcy Reform Act of 1978 (11 U.S.C. §101-1130) as amended and as hereafter modified. 
 1.3 Collateral.
“Collateral” shall mean, collectively: 
 (a) All securities, warrants, assets, security entitlements, investment property
and other property described in Exhibit A whether now owned or hereafter acquired; provided, that in all instances the pledge of equity interests of any Subsidiary formed in a jurisdiction other than the United States (a
“Foreign Subsidiary”) shall be limited to 66.66% of such equity interests) subject to the terms and conditions as are provided in Sections 3, 4 and 8 below; 

			
	 Stock Pledge Agreement
	  	CRS Retail Technology Group, Inc.

  
 (b) All proceeds, and
revenues of or from the personal property described in Exhibit A attached hereto, all substitutions for such personal property, and all additions thereto (collectively, the “Collateral Revenues”), including (i) stock
rights, rights to subscribe, liquidating dividends, stock dividends, cash dividends, interest, stock splits, warrants, options, conversion rights, puts, calls, new securities and other property to which Debtor is or may hereafter become entitled to
receive on account of such personal property; and (ii) all Proceeds of such personal property which consist of accounts, contract rights, instruments, documents, chattel paper, inventory, goods, merchandise, equipment, and general intangibles
as these terms are defined in the UCC; and 
 (c) All Collateral Records. 
 1.4 Collateral Records. The term “Collateral Records” shall mean all of Debtor’s existing and hereafter acquired books,
records, data and other documents relating to the assets referred to in Section 1.3(a) and (b). 
 1.5 Event of Default.
“Event of Default” shall have the meaning given to such term in Section 7 of this Pledge Agreement. 
 1.6
Governmental Authority. The term “Governmental Authority” shall mean (a) any international, foreign, federal, state, county or municipal government, or political subdivision thereof, (b) any governmental or
quasi-governmental agency, authority, board, bureau, commission, department, instrumentality, central bank or public body, or (c) any court, administrative tribunal or public utility. 
 1.7 Lenders. The term “Lenders” shall have the meaning given to such term in the preamble to this Pledge Agreement. 

1.8 Lender Expenses. The term “Lender Expenses” means all costs and expenses incurred by Administrative Agent or Lenders in
connection with this Pledge Agreement or the Credit Agreement or the Loan Documents or the transactions contemplated thereby, including, without limitation, (i) all costs or expenses required to be paid by Debtor under this Pledge Agreement
which are paid or advanced by Administrative Agent or Lenders; (ii) all costs or expenses required to be paid by Debtor under the Credit Agreement which are paid or advanced by Administrative Agent or Lenders; (iii) taxes and insurance
premiums of every nature and kind of Debtor paid by Administrative Agent or Lenders; (iv) filing, recording, publication, search fees, appraiser fees, auditor fees paid or incurred by Administrative Agent or Lenders in connection with
Administrative Agent’s transactions with Debtor; (v) costs and expenses incurred by Administrative Agent or Lenders in collecting or realizing upon the Collateral (with or without suit), to correct any default or enforce any provision of
this Pledge Agreement, costs and expenses of suit incurred by Administrative Agent in enforcing or defending this Pledge Agreement or any portion hereof; and (vi) reasonable attorneys’ fees and expenses incurred by Administrative Agent or
Lenders in advising, structuring, drafting, reviewing, amending, terminating, enforcing, defending or concerning this Pledge Agreement, 
  

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	 Stock Pledge Agreement
	  	CRS Retail Technology Group, Inc.

  
 any portion hereof, any agreement
related hereto, or any of the transactions contemplated hereby, whether or not suit is brought, and including, but not limited to, any expenses incurred in any proceedings or case in the U.S, bankruptcy courts in enforcing or defending its rights in
its collateral, under this Pledge Agreement or under any note or other document executed in connection with this Pledge Agreement. 
 1.9
Lien. The term “Lien” shall mean any mortgage, pledge, hypothecation, assignment, deposit arrangement (including in the nature of cash collateral accounts or security interests), encumbrance, lien (statutory or other), fixed
or floating charge, or other security interest of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing, and the
filing of any financing statement under the UCC or comparable laws of any jurisdiction), including the interest of a purchaser of accounts receivable. 
 1.10 Obligations. The term “Obligations” shall have the meaning given to such term in the Credit Agreement and the Guaranty, and shall include all debts, obligations, and liabilities whether
Debtor may be liable individually or jointly, or whether recovery upon such debt may be or become barred by any statute of limitations or otherwise unenforceable, including all attorneys’ fees and costs now or hereafter payable by Debtor to the
Lenders under the Loan Documents or in connection with the collection and enforcement of such debts, obligations and liabilities. Notwithstanding anything to the contrary contained in this Pledge Agreement, this Pledge Agreement shall not secure and
the term “Obligations” shall not include any debts that are or may hereafter constitute “consumer credit” which is subject to the disclosure requirements of the federal Truth-In Lending Act (15 U.S.C. Section 1601,
et seq.) or any similar state law in effect from time to time, unless Administrative Agent and Debtor shall otherwise agree in a separate written agreement. 
 1.11 Pledge Agreement. The term “Pledge Agreement” shall mean this Pledge Agreement, any concurrent or subsequent rider to this Pledge Agreement and any extensions, supplements, amendments or
modifications to this Pledge Agreement and/or to any such rider. 
 1.12 Proceeds. The term “Proceeds” shall have the
meaning provided in the UCC and shall include without limitation whatever is received upon the sale, lease, exchange, collection or other disposition of Collateral or proceeds, including, without limitation, proceeds of insurance covering
Collateral, tax refunds, and any and all accounts, notes, instruments, chattel paper, equipment, money, deposit accounts, goods, or other tangible and intangible property of Debtor resulting from the sale or other disposition of the Collateral, and
the proceeds thereof. 
 1.13 UCC. The term “UCC” shall mean the California Uniform Commercial Code, as amended from
time to time. 
  

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	 Stock Pledge Agreement
	  	CRS Retail Technology Group, Inc.

  
 1.14 Other
Terms. All terms with an initial capital letter that are used but not defined in this Pledge Agreement shall have the respective meanings given to such terms in the Credit Agreement and in Articles 8 and 9 of the UCC, respectively, as
applicable. 
 2. GRANT OF SECURITY INTEREST IN COLLATERAL. As security for the prompt and complete payment and performance of all the
Obligations, Debtor hereby grants to Administrative Agent for itself and on behalf of and for the ratable benefit of the Lenders, a first priority security interest (subject to Permitted Liens in favor of any Governmental Authority, which pursuant
to the statute or law and other applicable law creating such Lien, have priority over any Lien granted in this Pledge Agreement) in all of Debtor’s right, title and interest in, to and under the Collateral. 
 3. DELIVERY OF COLLATERAL AND VOTING. 
 3.1 Collateral Delivery. 
 (a) Initial Delivery of Collateral. Concurrently with Debtor’s execution of this
Pledge Agreement and delivery of this Pledge Agreement to the Administrative Agent, Debtor shall deliver physical possession to the Administrative Agent of every stock certificate, document, instrument and chattel paper which constitutes Collateral
and obtain the fully executed Consent in the form attached hereto as Exhibit B. Any such items of Collateral that are certificated securities shall be duly endorsed in blank without restriction or with a duly executed assignment separate from
certificate (stock power) duly endorsed in blank without restriction and with all necessary transfer tax stamps affixed. To the extent that Debtor delivers to Administrative Agent one or more stock certificates each of which (“Foreign
Subsidiary Certificate”) reflects an equity interest in any Foreign Subsidiary in excess (“Excess Equity Interest”) of the percentage set forth in Section 1.2(c) above (“Designated Percentage
Interest”), Administrative Agent will be entitled to hold such Foreign Subsidiary Certificate to reflect and perfect its security interest in 66.66% of the Equity Interest in the Foreign Subsidiary, unless and until Debtor delivers to
Administrative Agent a (i) replacement certificate reflecting the Designated Percentage Interest; and (ii) an acceptable legal opinion from a law firm reasonably acceptable to Agent that the replacement certificate was properly issued and
is fully paid for and properly reflects the Designated Percentage interest in the subject entity and may be delivered to Administrative Agent as collateral. (Such replacement certificates when delivered or provided herein as referred to as the
“Replacement Foreign Subsidiary Certificate”). 
 (b) Future Delivery of Collateral. If at any time after the date
of this Pledge Agreement, Debtor obtains possession of any certificate or instrument constituting or representing any item of Collateral, (i) Debtor shall immediately deliver or arrange for the immediate delivery of such certificate or
instrument to Administrative Agent; (ii) to the extent such item represents a certificated security, Debtor shall duly endorse such certificate in blank without restriction or deliver a duly executed assignment separate from certificate (stock
power) duly endorsed in blank without restriction and with all necessary transfer tax stamps affixed; and (iii) Debtor shall hold such Collateral separate and apart from Debtor’s other funds and property in an express trust for the benefit
of the Administrative Agent until paid or delivered to the Administrative Agent. 
  

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	 Stock Pledge Agreement
	  	CRS Retail Technology Group, Inc.

  
 (c) Uncertificated
Securities. If any item of Collateral is an uncertificated security, Debtor shall either (i) procure the issuance of a security certificate to represent such Collateral and endorse and deliver such certificate as required by
Section 3.1(a) above; or (ii) cause the issuer thereof to register the Administrative Agent as the registered owner of such uncertificated security; or (iii) cause the issuer thereof to enter into an agreement, in form and substance
reasonably satisfactory to the Administrative Agent, among the Administrative Agent, the registered owner of such security, and the issuer to the effect that the issuer will comply with instructions originated by the Administrative Agent without
further consent by the registered owner; or (iv) cause the security to be credited to a securities account and execute an agreement in form reasonably acceptable to Administrative Agent to permit Administrative Agent to gain control of such
asset. 
 3.2 Control. If any Collateral is not capable of being delivered, Debtor shall deliver to Administrative Agent such
financing statements or other instruments as are deemed necessary by Administrative Agent to enable it to perfect its security interest in such Collateral and obtain “control” or “possession” of such Collateral under applicable
law. 
 3.3 Pledge under Foreign Law. To the extent that the pledge of the item of Collateral is governed by the laws of a
jurisdiction other than a state of the United States, Debtor shall, in lieu of compliance with the other provisions of this Section 3, enter into such agreements and documents as are reasonably necessary to accomplish the pledge of such
Collateral to Administrative Agent. 
 3.4 Voting. Provided that no Event of Default has occurred and is continuing, Debtor shall have
the right to exercise all voting rights and other consensual rights and powers with respect to the Collateral for any purpose not inconsistent with the terms of this Pledge Agreement and the other Loan Documents; provided, however, that
(a) Debtor shall not exercise any such right or power if, in Administrative Agent’s discretion, such action would have an adverse effect on the value of the Collateral or impair or otherwise adversely affect the security interest or other
rights of the Administrative Agent under this Pledge Agreement; and (b) Debtor shall not be permitted to trade, invest, or sell the Financial Assets (as such term is defined in Article 8 of the UCC) without the prior written consent of the
Administrative Agent. 
 4. DISPOSITION OF COLLATERAL REVENUES. 
 4.1 Delivery to Debtor; No Event of Default. Provided that no Event of Default has occurred and is continuing, the Collateral Revenues shall be
retained by Debtor to the extent provided in Section 4.3 below. 
 4.2 Occurrence of Event of Default. If an Event of Default has
occurred and is continuing, the Administrative Agent shall have the right to hold and apply the Collateral Revenues as provided below. 
  

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	 Stock Pledge Agreement
	  	CRS Retail Technology Group, Inc.

  
 4.3 Payment of Cash
Dividends and Interest. Provided that no Default or Event of Default shall have occurred and be continuing, Debtor shall be entitled to receive all cash dividends and interest payable in connection with the Collateral, except for the following,
which are referred to as “Liquidation Dividends,” for (a) cash dividends paid or payable in respect of any Collateral in connection with a partial or total liquidation or dissolution or in connection with a reduction of
capital, capital surplus, or paid-in capital of the issuer of such Collateral; and (b) cash paid, payable, or otherwise distributed in respect of principal of, or in redemption of, or in exchange for, any Collateral. If at any time and for any
reason Debtor receives any Collateral Revenues other than those that Debtor is entitled to receive under this Section 4.3, Debtor (i) shall immediately deliver such Collateral Revenues to the Administrative Agent in the original form
received by Debtor; (ii) shall execute and deliver to the Administrative Agent such documents of transfer respecting such Collateral Revenues as the Administrative Agent may require, including an endorsement in blank of any certificate
evidencing such Collateral Revenues; (iii) shall not commingle such Collateral Revenues with any of Debtor’s other funds or property; and (iv) shall hold such Collateral Revenues separate and apart from Debtor’s other funds and
property in an express trust for Administrative Agent until paid or delivered to the Administrative Agent. Notwithstanding the foregoing, to the extent that the Administrative Agent holds a Foreign Subsidiary Certificate which reflects an Excess
Equity Interest, Administrative Agent may receive and collect all Liquidation Dividends payable in connection with the entire Foreign Subsidiary Certificate. Administrative Agent shall refund to Debtor any Liquidation Dividends allocable to the
Excess Equity Interest. 
 5. COVENANTS REPRESENTATIONS AND WARRANTIES. 
 5.1 Debtor’s Covenants. Notwithstanding anything to the contrary contained in the other Loan Documents (and subject to Section 15.11
below), Debtor hereby covenants and agrees that during the term hereof and until all Obligations are fully paid and performed: 
 (a)
Liens. Except for the Lien provided to Administrative Agent, Debtor shall at all times keep the Collateral free of all Liens other than the security interest of the Administrative Agent or Permitted Liens in favor of any Governmental
Authority which pursuant to statute or law creating such Lien and other applicable law, have priority over any Lien granted under this Pledge Agreement. 
 (b) Further Assurances. Debtor shall deliver to Administrative Agent promptly or ensure that Administrative Agent promptly receives (i) all Collateral that Debtor is obligated to deliver to the
Administrative Agent under Section 3.1 above; (ii) all financing statements and all other documents that Administrative Agent deems necessary or desirable to evidence the transfer and pledge of the Collateral to Administrative Agent as
provided in this Pledge Agreement; (iii) except as otherwise expressly provided in this Pledge Agreement, all Collateral Revenues; (iv) such specific acknowledgments, assignments, stock or bond powers, Regulation U Statement of Purpose
forms, and other documents as the Administrative Agent may request relating to the Collateral; and (v) copies of records and other reports relating to the Collateral in such form and detail and at such times as the Administrative Agent may from
time to time require. 
  

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	 Stock Pledge Agreement
	  	CRS Retail Technology Group, Inc.

  
 (c) Changes in
Collateral. Debtor shall give prompt notice to Administrative Agent of any threatened or asserted dispute or claim with respect to the Collateral, which could reasonably be expected to materially and adversely affect the Collateral. 

(d) Subsidiaries. If there is a material recapitalization or restructure or acquisition of the equity interest in any Subsidiaries of Debtor,
Debtor shall take such action as is necessary so that Administrative Agent shall have and retain (i) 100% of the equity interest in all domestic Material Subsidiaries wholly-owned by Debtor and organized under the laws of the United States or
any state or jurisdiction thereof, and (ii) 66.66% of the equity interests of any First Tier Foreign Subsidiary. 
 (e)
Perfection. From time to time upon Administrative Agent’s request, Debtor (i) shall execute and deliver to Administrative Agent, and give, file or record, at Debtor’s expense, all notices and other documents that Administrative
Agent deems necessary or appropriate in order for the Administrative Agent to maintain a first priority (subject to Liens (including tax liens) in favor of any Governmental Authority which pursuant to statute or law creating such Lien and other
applicable law, have priority over any Lien granted under this Pledge Agreement) perfected security interest in the Collateral; and (ii) shall perform such other acts, and execute and deliver to Administrative Agent such additional assignments,
agreements, instruments and other documents, as Administrative Agent may request in connection with the administration and enforcement of this Pledge Agreement or the Administrative Agent’s exercise of any or all of its rights, powers and
remedies under this Pledge Agreement. 
 (f) Litigation Cooperation. Debtor, at its expense, shall appear in and defend any action or
proceeding which may materially and adversely affect Debtor’s title to all or part of the Collateral or Administrative Agent’s security interest in the Collateral. 
 (g) Changes. Without prior written notice to Administrative Agent, Debtor will not change its name, mailing address, or its state of
incorporation. 
 5.2 Debtor’s Representations. Debtor represents and warrants to Administrative Agent and Lenders as follows:

 (a) Ownership of Collateral. Debtor is the sole legal and beneficial owner of the Collateral, free and clear of all Liens, except
for the security interest in favor of Administrative Agent under this Pledge Agreement and Permitted Liens currently existing in favor of any foreign governmental authority, which to the best of Debtor’s knowledge do not currently exist.

 (b) Status of Collateral. All of the Collateral consisting of securities has been duly and validly issued and is fully paid for
and non-assessable. Except for Collateral that Debtor has previously disclosed to Agent as “restricted securities” or securities held by an 
  

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	  	CRS Retail Technology Group, Inc.

  
 “affiliate” (as such terms
are defined in Rule 144 under the Securities Act of 1933, as amended), including Collateral consisting of the stock of any subsidiary of Debtor, or as may be specifically stated to the Agent in writing prior to the date of this Pledge Agreement, all
of the Collateral is transferable without prior notice to, or approval or consent from, any person or governmental or regulatory authority, and there exists no condition or restriction or restrictive legend to or affecting the transfer of the
Collateral. 
 (c) Authority to Pledge. Debtor has full rights and authority to pledge the Collateral in the manner hereby specified;
and (except for approvals which have already been obtained) no consent of any governmental body or regulatory authority is necessary for the rights created hereunder to be valid. 
 (d) Continuing Warranties. Debtor’s warranties and representations set forth in this Section 5 and in any exhibit hereto shall be true
and correct at the time of execution of this Pledge Agreement by Debtor and at the time Debtor requests or receives any advance under the Credit Agreement. 
 (e) Subsidiaries. The assets described in Exhibit A as of the time of this Pledge Agreement are all of the issued and outstanding equity interests of CRS Retail Systems, Inc. 
 (f) Warranties and Representations Cumulative. The warranties, representations and agreements set forth herein shall be cumulative and in
addition to any and all other warranties, representations and agreements which Debtor shall give, or cause to be given, to Administrative Agent or Lenders, either now or hereafter. 
 6. DUTY OF ADMINISTRATIVE AGENT TO COOPERATE WITH READJUSTMENTS. Administrative Agent agrees to cooperate with Debtor to maintain the percentage
interests set forth in 5.1(a) by adjusting the outstanding equity interests pledged hereunder in the event there is a recapitalization, restructure or acquisition of equity interests by Debtor relating to any of its Subsidiaries. 
 7. EVENTS OF DEFAULT. The occurrence of any of the following shall constitute an Event of Default under this Pledge Agreement, at the option of
the Administrative Agent. 
 7.1 Breach of Pledge Agreement. (i) Any representation or warranty hereunder proves to have been
incorrect in any material respect when made or deemed made, (ii) Debtor breaches any provision of this Pledge Agreement which cannot be cured or (iii) the breach by Debtor of any other provision of this Pledge Agreement that remains
uncured for a period of thirty (30) days. 
 7.2 Breach of Other Agreements. The occurrence and continuance of an Event of
Default under the Credit Agreement. 
  

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	 Stock Pledge Agreement
	  	CRS Retail Technology Group, Inc.

  
 7.3 Lien
Priority. Administrative Agent shall cease to have a valid and perfected first priority (subject to Permitted Liens in favor of any Governmental Authority which pursuant to statute or law creating such Lien and other applicable law, have
priority over the Lien granted in this Pledge Agreement) lien upon any material item of the Collateral purported to be covered by such security interest. 
 7.4 Seizure of Assets. If all or any material item(s) of the Collateral is attached, seized, subjected to a writ or distress warrant, or is levied upon and such action can reasonably be expected to cause a
Material Adverse Effect. 
 8. ADMINISTRATIVE AGENT’S RIGHTS AND REMEDIES ON DEFAULT. The exercise of remedies hereunder shall be
made by Administrative Agent on behalf of itself and for the ratable benefit of the Lenders upon the terms and conditions contained herein. If an Event of Default shall have occurred and be continuing and not been cured or waived in accordance with
the terms hereof or the Credit Agreement, Administrative Agent shall have the following rights and powers and may, at Administrative Agent’s option, without notice of its election and without demand to the extent permitted by Section 8.3
of the Credit Agreement, do any one or more of the following, all of which are hereby authorized by Debtor: 
 8.1 UCC Rights. The
Administrative Agent shall have all of the rights and remedies of a secured party under the UCC and under all other applicable laws. 
 8.2
Acceleration. Administrative Agent may declare any or all of the Obligations to be immediately due and payable. 
 8.3 Extensions
of Credit. Lenders may discontinue advancing money or extending credit to or for the benefit of Debtor in connection with the Credit Agreement or under any other document agreement between Administrative Agent, Lenders and Debtor. 
 8.4 Assembly of Collateral. The Administrative Agent may require Debtor to assemble the Collateral and make it available to the Administrative
Agent at a place designated by the Administrative Agent. 
 8.5 Possession of Collateral. The Administrative Agent, without a breach
of the peace, may enter any of the premises of Debtor and search for, take possession of, remove, keep or store any or all of the Collateral. If the Administrative Agent seeks to take possession of any or all of the Collateral by court process,
Debtor irrevocably and unconditionally agrees that a receiver may be appointed by a court for such purpose without regard to the adequacy of the security for the Obligations. 
 8.6 Foreclose on Collateral. The Administrative Agent shall have the right to sell and dispose of the Collateral, or any part thereof, at public
or private sale or at any broker’s board or on any securities exchange, for cash, upon credit or for future delivery, and at such price or prices as the Administrative Agent may deem satisfactory. The Administrative Agent may be the purchaser
of any or all of the Collateral so sold at any public sale (or, if the Collateral is of a 
  

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	 Stock Pledge Agreement
	  	CRS Retail Technology Group, Inc.

  
 type customarily sold in a recognized
market or is of a type which is the subject of widely distributed standard price quotations, at any private sale) and thereafter hold the same, absolutely free from any right or claim of whatsoever kind. The Administrative Agent is authorized, at
any such sale, if it deems it advisable so to do, to restrict the prospective bidders or purchasers of any of the Collateral to persons who will represent and agree that they are purchasing for their own account for investment, and not with a view
to the distribution or sale of any of the Collateral. Upon any such sale the Administrative Agent shall have the right to deliver, assign, and transfer to the purchaser thereof the Collateral so sold. Each purchaser at any such sale shall hold the
Collateral so sold free from any claim or right of whatsoever kind of Debtor or any other Person, including any equity or right of redemption of Debtor, who, to the extent permitted by law, specifically waives any now existing or hereafter acquired
rights of redemption, stay or appraisal. The Administrative Agent shall give Debtor: (i) ten (10) days written notice of its intention to make any such public or private sale; or (ii) two (2) days notice of any sale at a
broker’s board or on a securities exchange. Such notice, in case of a public sale, shall state the time and place fixed for such sale, and, in case of sale at a broker’s board or on a securities exchange, shall state the board or exchange
at which such sale is to be made and the day on which the Collateral, or the portion thereof being so sold, will first be offered for sale at such board or exchange. Any such public sale shall be held at such time or times within ordinary business
hours and at such place or places as the Administrative Agent may fix in the notice of such sale. At any such sale the Collateral may be sold in one lot as an entirety or in separate parcels, as the Administrative Agent may determine. The
Administrative Agent shall not be obligated to make any such sale pursuant to any such notice. The Administrative Agent may, without notice or publication, postpone any public or private sale or cause the same to be postponed from time to time by
announcement at the time and place fixed for the sale, and such sale may be made at any time or place to which the same may be so postponed. In case of any sale of all or any part of the Collateral on credit or for future delivery, the Collateral so
sold may be retained by the Administrative Agent until the selling price is paid by the purchaser thereof, but the Administrative Agent shall not incur any liability in case of the failure of such purchaser to take up and pay for the Collateral so
sold and, in case of any such failure, such Collateral may again be sold upon like notice. To the extent that Administrative Agent holds any Foreign Subsidiary Certificate which reflects an Excess Equity Interest, Administrative Agent may foreclose
on such certificate in any manner permitted by applicable law or as specified in this Section 8 as regards any item of Collateral. Upon any sale of such Certificate, Administrative Agent will release to Debtor any consideration received in
return for the sale of the Excess Equity Interest. 
 8.7 Judicial Action. The Administrative Agent, in its discretion, may proceed by
a suit or suits at law or in equity to foreclose its security interests in the Collateral under a judgment or decree of a court or courts of competent jurisdiction. Debtor agrees that any disposition of Collateral by way of a private placement or
other method which, in the opinion of the Administrative Agent, is required or advisable under federal and state securities laws is commercially reasonable. 
  

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 8.8 Collateral
Revenues. Debtor’s rights, if any, to receive any Collateral Revenues shall automatically cease, and all Collateral Revenues shall be paid to the Administrative Agent. Any and all Collateral Revenues received by the Administrative Agent may
be retained by the Administrative Agent as additional Collateral or, in the Administrative Agent’s discretion, maybe applied toward the satisfaction of the Obligations. In such event the Administrative Agent shall have the right and power to
receive, endorse and collect all checks and other orders for payment of money made payable to Debtor representing any dividend or other distribution payable or distributable in respect of any Collateral. 
 8.9 Information. Without limiting the generality of this Section 8, it shall conclusively be deemed to be commercially reasonable for the
Administrative Agent to direct any prospective purchaser of any or all of the Collateral to Debtor to ascertain all information concerning the status of the Collateral. 
 8.10 Commercially Reasonable Actions by Administrative Agent. Debtor acknowledges that it may be impracticable or extremely difficult to effect a public sale of all or part of the Collateral by reason of
certain restrictions contained in state and federal securities laws, as now or hereafter in effect. Because of such restrictions, and without limiting the generality of this Section 8, it shall conclusively be deemed to be commercially
reasonable for the Administrative Agent to do any or all of the following: 
 (a) To resort to one or more private sales to a single
purchaser or a restricted group of purchasers who may be obligated to agree, among other things, to acquire the Collateral for their own account, for investment and not with a view to the distribution or resale thereof; and 
 (b) To impose restrictions and conditions with respect to (i) the ability of a purchaser or bidder to bear the economic risk of an investment in
the Collateral; (ii) the knowledge and experience of business and financial matters of a purchaser or bidder; (iii) the access of a purchaser or bidder to information regarding the Collateral; and (iv) such other matters as the
Administrative Agent determines to be necessary or advisable to comply with any state or federal securities laws. 
 8.11 No Registration
Required. Debtor acknowledges that some or all of the conditions and restrictions which may be imposed by the Administrative Agent pursuant to Section 8.10 above may result in reduced proceeds being received upon the sale of the Collateral
than would otherwise have been obtained. The Administrative Agent shall have no obligation to delay the sale of any or all of the Collateral for the period of time necessary to permit registration by the issuer of any securities comprising the
Collateral, even if such registration would be possible under applicable state and federal securities law. 
 8.12 Other Procedures.
The Administrative Agent’s disposition of any or all of the Collateral in any manner which differs from the procedures specified in this Section 8 shall not be deemed to be commercially unreasonable. 
  

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 8.13
Foreclosure. If the Administrative Agent has reduced its claims for breach of any of the obligations to judgment, the lien of any levy which may be made on any or all of the Collateral by virtue of any execution based upon such judgment shall
relate back to the date of the Administrative Agent’s perfection of its security interest in such Collateral. A judicial sale pursuant to such execution shall constitute a foreclosure of the Administrative Agent’s security interest by
judicial procedure, and the Administrative Agent may purchase at such sale and thereafter hold the Collateral free of all rights of Debtor therein. 
 8.14 Discharge Claims. The Administrative Agent may discharge claims, demands, liens, security interests, encumbrances and taxes affecting any or all of the Collateral and take such other actions as the Administrative Agent
determines to be necessary or appropriate to protect the Collateral and the Administrative Agent’s security interest therein. The Administrative Agent, without releasing Debtor or any other Person from any of the Obligations, may perform any of
the Obligations in such manner and to such extent as the Administrative Agent determines to be necessary or appropriate to protect the Collateral and the Administrative Agent’s security interest therein, 
 8.15 Proceeds of Sale. The proceeds of any sale or disposition of the Collateral by the Administrative Agent shall be applied in the following
order of priority: 
 (a) First, to all liabilities, obligations, costs, and expenses, including reasonable attorneys’ fees and
costs, incurred by the Administrative Agent in exercising any of its rights or remedies under this Pledge Agreement, including the costs and expenses of retaking, holding, and selling any or all of the Collateral; 
 (b) Second, to the payment of the Obligations in such order and amounts as the Administrative Agent may determine in its discretion as more fully
set forth in the Credit Agreement; 
 (c) Third, to (i) the satisfaction of indebtedness secured by any subordinate security
interest in the Collateral if written demand therefor is received by the Administrative Agent before distribution of any such proceeds; and (ii) to the satisfaction of any subordinate attachment lien or execution lien pursuant to subdivision
(b) of Section 701.040 of the Code of Civil Procedure if notice of the levy of attachment or execution is received by the Administrative Agent before distribution of any such proceeds. If requested by the Administrative Agent, the holder
of a subordinate security interest in the Collateral shall furnish the Administrative Agent with proof of its interest in the Collateral acceptable to the Administrative Agent, and unless such holder does so, the Administrative Agent shall have no
obligation to comply with such holder’s demand; and 
 (d) Fourth, the surplus, if any, shall be paid to Debtor. 
 8.16 Voting Rights. The Administrative Agent may exercise any or all warrants, options, conversion rights, puts, calls, voting rights, and other
rights with respect to any or all of the Collateral (collectively the “Voting and Stock Rights”) in such manner and to such 
  

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 extent as the Administrative Agent in
its discretion determines to be necessary or appropriate, and Debtor’s rights and authority to exercise the Voting and Stock Rights shall automatically terminate upon the occurrence and during the continuance of an Event of Default.
Notwithstanding anything to the contrary contained in this Pledge Agreement, the Administrative Agent shall have no obligation to exercise any or all Voting and Stock Rights, and the Administrative Agent shall have no liability or responsibility of
any kind to Debtor or any other party for the Administrative Agent’s exercise or delay or failure to exercise any or all of the Voting and Stock Rights. In connection with the Administrative Agent’s exercise of any or all of the Voting and
Stock Rights, the Administrative Agent shall have the right (a) to deposit or surrender control of any or all of the Collateral to any third Person; (b) to accept other property in exchange for the Collateral; and (c) to take such
other actions as the Administrative Agent in its discretion determines to be necessary or appropriate. 
 9. LIABILITY FOR DEFICIENCY.
Debtor shall at all times remain liable for any deficiency remaining on the Obligations, and is liable after any disposition of any or all of the Collateral and after the Administrative Agent’s application of any proceeds to the Obligations.

 10. POWER OF ATTORNEY. Debtor irrevocably appoints the Administrative Agent, with full power of substitution, as Debtor’s
attorney-in-fact, coupled with an interest, with full power, in the Administrative Agent’s own name or in the name of Debtor: 
 10.1 At
any time after the occurrence and during the continuation of an Event of Default, to do any or all of the following: 
 (a) Endorse any
checks, drafts, money orders, notes, and other instruments or documents representing or evidencing the Collateral; 
 (b) Pay or discharge
claims, demands, liens, security interests, encumbrances, or taxes affecting or threatening the Collateral; 
 (c) Receive payment of all
Collateral Revenues; 
 (d) Commence, prosecute or defend any suit, action or proceeding relating to any or all of the Collateral;

 (e) Instruct any accountant or other third Person having custody or control of any Collateral Records to deliver such records to the
Administrative Agent; and 
 (f) Sell, transfer, pledge, make any agreement with respect to, or otherwise deal with the Collateral as though
the Administrative Agent were the owner thereof for all purposes. 
 10.2 To execute any security agreement, assignment, notice, and all
other documents which the Administrative Agent, in its discretion, determines to be necessary or appropriate in order to (a) perfect or maintain the Administrative Agent’s security interest in the Collateral; (b) exercise any or all
of the Administrative Agent’s rights under this Pledge Agreement; or (c) to consummate or effectuate any of the transactions contemplated by this Pledge Agreement. 
  

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 11. WAIVERS.
Debtor hereby waives presentment, demand for payment, protest, notice of demand, dishonor, protest and nonpayment, and all other notices and demands in connection with the delivery, acceptance, performance, default under, and enforcement of the
Obligations. Debtor waives the right to assert any statute of limitations as a defense to the enforcement of any of the Obligations to the fullest extent permitted by law. 
 12. CUMULATIVE REMEDIES. The Administrative Agent’s rights and remedies under this Pledge Agreement are cumulative with and in addition to
all other rights and remedies which the Administrative Agent may have in connection with the Loans. The Administrative Agent may exercise any one or more of its rights and remedies under this Pledge Agreement at the Administrative Agent’s
option and in such order as the Administrative Agent may determine in its discretion. The Administrative Agent may exercise its rights under this Pledge Agreement from time to time and at such times as the Administrative Agent may determine.

 13. ACTIONS. The Administrative Agent shall have the right, but not the obligation, to commence, appear in, or defend any action or
proceeding which affects or which the Administrative Agent determines may affect (a) the Collateral; (b) Debtor’s or the Administrative Agent’s rights or obligations under the Loan Documents; (c) Debtor’s or the
Administrative Agent’s rights under this Pledge Agreement; or (d) the Loans. Whether or not an Event of Default has occurred under any of the Loan Documents, the Administrative Agent shall at all times have the right to take any and all
actions which the Administrative Agent in its discretion determines to be necessary or appropriate to protect the Administrative Agent’s interest in connection with the Loan. 
 14. INDEMNITY. Debtor agrees to defend, indemnify and hold harmless Administrative Agent, each Lender and their respective officers, employees,
and agents against: (a) all obligations, demands, claims, and liabilities claimed or asserted by any other party related to or in connection with the transactions contemplated by this Pledge Agreement or the Collateral, and (b) all losses
or expenses in any way suffered, incurred, or paid by Administrative Agent and any Lender as a result of or in any way arising out of, following or consequential to the transactions between Administrative Agent and Lenders and Debtor under this
Pledge Agreement or the Collateral (including without limitation, reasonable attorneys fees and reasonable expenses), except for losses arising from or out of Administrative Agent’s or such Lender’s gross negligence or willful misconduct.

 15. GENERAL. 
 15.1
Taxes and Other Expenses Regarding the Collateral. If Debtor fails to pay promptly when due to any person or entity monies which Debtor is required to pay by reason of any provision in this Pledge Agreement, Administrative Agent may, but need
not, pay the same 
  

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 and charge Debtor’s account
therefor, and Debtor shall promptly reimburse Administrative Agent therefor. Any payments made by Administrative Agent shall not constitute: (a) an agreement by Administrative Agent to make similar payments in the future, or (b) a waiver
by Administrative Agent of any default under this Pledge Agreement. Administrative Agent need not inquire as to, or contest the validity of, any such expense, tax, security interest, encumbrance or lien and the receipt of the usual official notice
for the payment thereof shall be conclusive evidence that the same was validly due and owing. 
 15.2 Notices. Any notice, demand or
request required hereunder shall be made in the manner set forth in the Credit Agreement. 
 15.3 Release of Collateral.
Administrative Agent shall promptly file UCC termination statements and any other instruments as necessary upon any Disposition by Debtor of any items or item of Collateral, to the extent such Disposition is permitted under the Credit Agreement.

 15.4 Termination. At such time as Debtor shall completely satisfy all of the Obligations secured hereunder, Administrative Agent
shall execute and deliver to Debtor all instruments as may be necessary or proper to reinvest in Debtor full title to the property assigned hereunder, subject to any disposition thereof which may have been made by Administrative Agent pursuant
hereto. 
 15.5 Course of Dealing. No course of dealing, nor any failure to exercise, nor any delay in exercising any right, power or
privilege hereunder shall operate as a waiver thereof. 
 15.6 Amendment. This Pledge Agreement may be modified only by a written
agreement signed by Debtor and the Administrative Agent. 
 15.7 Agreement Binding; Assignment. This Pledge Agreement shall be binding
and deemed effective when executed by Debtor and Administrative Agent. This Pledge Agreement shall bind and inure to the benefit of the respective successors and assigns of each of the parties; provided, however, that Debtor may not assign
this Pledge Agreement, or any rights hereunder without Administrative Agent’s prior written consent and any prohibited assignment shall be absolutely void. No consent to an assignment by Administrative Agent shall release Debtor from its
obligations to Administrative Agent. Administrative Agent and each Lender reserves the right to sell, assign, transfer, negotiate or grant participations in all or any part of, or any interest in, Administrative Agent’s or such Lender’s
rights and benefits hereunder to the extent and in the manner provided for in Section 10.4 of the Credit Agreement. In connection therewith, Administrative Agent may disclose all documents and information that Administrative Agent now has or
hereafter may have relating to Debtor or Debtor’s business subject to Debtor’s reasonable confidentiality requirements. 
 15.8
Time of Essence. Time is of the essence of each provision of the Loan Documents. 
  

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 15.9 Article and
Section Headings. Article and section headings and article and section numbers have been set forth herein for convenience only. Unless the contrary is compelled by the context, everything contained in each article and section applies equally to
this entire Pledge Agreement. 
 15.10 Construction. Neither this Pledge Agreement nor any uncertainty or ambiguity herein shall be
construed or resolved against Administrative Agent or Debtor, whether under any rule of construction or otherwise. On the contrary, this Pledge Agreement has been reviewed by all parties and shall be construed and interpreted according to the
ordinary meaning of the words used so as to fairly accomplish the purposes and intentions of all parties hereto. 
 15.11 Conflict or
Credit Agreement Modifications. To the extent that there is an explicit conflict between the terms of the Credit Agreement and this Pledge Agreement, the terms of the Credit Agreement shall control. Any future changes or modifications to the
Credit Agreement, shall apply to and modify this Pledge Agreement, to the extent that such change or modification would reasonably be construed to apply, to this Pledge Agreement. 
 15.12 Performance of Covenants. Debtor shall perform all of its covenants under this Pledge Agreement at its sole cost and expense. 
 15.13 Term. This Pledge Agreement shall continue in full force and effect as long as any of the Obligations are outstanding and until terminated
by written agreement of the Administrative Agent. 
 15.14 Severability. Each provision of this Pledge Agreement shall be severable
from every other provision of this Pledge Agreement for the purpose of determining the legal enforceability of specific provision. Without limiting the generality of the preceding sentence, if the Administrative Agent’s security interest in any
part of the Collateral is held to be unlawful, void, voidable or unenforceable for any reason, such defect shall in no way affect the validity or enforceability of the remaining terms and conditions of this Pledge Agreement. 
 15.15 No Third Party Beneficiaries. The Loan Documents are entered into for the sole protection and benefit of Lenders, Debtor and Administrative
Agent, as applicable, and their respective permitted successors and assigns. No other Person shall have any rights or causes of action under the Loan Documents. 
 15.16 Counterparts. This Pledge Agreement may be executed in two or more counterparts, each of which is deemed an original but all of which together shall constitute the same instrument. 
 15.17 No Waiver By Administrative Agent. No waiver by the Administrative Agent or any of its rights or remedies in connection with the Obligations
or any of the terms and conditions of the Loan Documents shall be effective unless such waiver is in writing and signed by the Administrative Agent. 
  

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 16. AMENDMENT.
This Pledge Agreement may be modified only by a written agreement signed by Debtor and Administrative Agent. 
 17. ADDITIONAL WAIVERS OF
DEBTOR. Notwithstanding the rights given to Debtor pursuant to California Civil Code Sections 1479 and 2822 (and any amendments or successors thereto), to designate how payments will be applied, Debtor irrevocably waives such rights, and the
Administrative Agent shall have the right in its discretion to determine the order and method of the application of payments received from Debtor or from the sale or disposition of the Collateral and to revise such application prospectively or
retroactively at its discretion (notwithstanding any entry by the Administrative Agent on its books). Debtor waives any right to require the Administrative Agent (a) to proceed against any Person; (b) to exhaust any Collateral; or
(c) to pursue any remedy in the Administrative Agent’s power in any order or whatsoever. 
 18. ENTIRE AGREEMENT. The Loan
Documents contain the entire agreement between the Administrative Agent and Debtor concerning the subject matter of the Loan Documents and supersede all prior and contemporaneous agreements, statements, understandings, terms, conditions,
representations and warranties, whether oral or written, made by the Administrative Agent or Debtor concerning the Loans. 
 [Signature
page follows] 
  

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 All terms and
conditions set forth in the Exhibits and any Addendum(s) attached to this Pledge Agreement are incorporated by this reference. 
  

			
	 DEBTOR:

	
	 CRS RETAIL TECHNOLOGY GROUP,
INC.,
 a Utah corporation

		
	 By.
	 	 /s/ John D. Ireland

		
	 Title:
	 	 Vice President and General Counsel

	
	 ADMINISTRATIVE AGENT:

	
	 KEYBANK NATIONAL ASSOCIATION, as
Administrative
Agent

		
	 By.
	 	 /s/ Thomas A. Crandell

		
	 Title:
	 	 Senior Vice President

  

 18 

 SECURITY AND PLEDGE AGREEMENT

 (Stock) 
 THIS SECURITY AND PLEDGE AGREEMENT (Stock) (this “Pledge Agreement”), is made as of March 30, 2006, by and between EPICOR
SOFTWARE CORPORATION, a Delaware corporation (“Debtor”), and KEYBANK NATIONAL ASSOCIATION, as Administrative Agent (the
“Administrative Agent”) for all the parties identified as “Lenders” (the “Lenders”) under that certain Credit Agreement dated as of the date hereof (as amended from time to time, the “Credit
Agreement”) among the Debtor, as Borrower, the Administrative Agent and the Lenders party thereto. 
 RECITALS

 A. Concurrently herewith, Debtor is entering into the Credit Agreement pursuant to which Lenders provide Debtor with a senior term
loan facility and a senior revolving credit facility (including certain letters of credit, collectively, the “Facility”). 
 B. It is a prerequisite to the Lenders entering into the Credit Agreement that Debtor enter into this Pledge Agreement and grant to Administrative Agent, for itself and the ratable benefit of the Lenders, the security interest hereafter
provided to secure the Obligations. 
 C. Debtor, as owner of the assets encumbered hereby, desires to enter into this Pledge Agreement to
secure payment and performance of the Obligations. 
 AGREEMENT 
 NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties
hereto agree as follows: 
 1. DEFINITIONS. For purposes of this Pledge Agreement, the following terms shall have the meanings
specified below. 
 1.1 Administrative Agent. The term “Administrative Agent” shall have the meaning given to such
term in the preamble to this Pledge Agreement. 
 1.2 Bankruptcy Code. The term “Bankruptcy Code” shall mean the
Bankruptcy Reform Act of 1978 (11 U.S.C. §101-1130) as amended and as hereafter modified. 
 1.3 Collateral.
“Collateral” shall mean, collectively: 
 (a) All securities, warrants, assets, security entitlements, investment property
and other property described in Exhibit A whether now owned or hereafter acquired; provided, that in all instances the pledge of equity interests of any Subsidiary formed in a jurisdiction other than the United States (a
“Foreign Subsidiary”) shall be limited to 66.66% of such equity interests) subject to the terms and conditions as are provided in Sections 3, 4 and 8 below; 

			
	 Stock Pledge Agreement
	  	Epicor Software Corporation

  
 (b) All proceeds, and
revenues of or from the personal property described in Exhibit A attached hereto, all substitutions for such personal property, and all additions thereto (collectively, the “Collateral Revenues”), including (i) stock
rights, rights to subscribe, liquidating dividends, stock dividends, cash dividends, interest, stock splits, warrants, options, conversion rights, puts, calls, new securities and other property to which Debtor is or may hereafter become entitled to
receive on account of such personal property; and (ii) all Proceeds of such personal property which consist of accounts, contract rights, instruments, documents, chattel paper, inventory, goods, merchandise, equipment, and general intangibles
as these terms are defined in the UCC; and 
 (c) All Collateral Records. 
 1.4 Collateral Records. The term “Collateral Records” shall mean all of Debtor’s existing and hereafter acquired books,
records, data and other documents relating to the assets referred to in Section 1.3(a) and (b). 
 1.5 Event of Default.
“Event of Default” shall have the meaning given to such term in Section 7 of this Pledge Agreement. 
 1.6
Governmental Authority. The term “Governmental Authority” shall mean (a) any international, foreign, federal, state, county or municipal government, or political subdivision thereof, (b) any governmental or
quasi-governmental agency, authority, board, bureau, commission, department, instrumentality, central bank or public body, or (c) any court, administrative tribunal or public utility. 
 1.7 Lenders. The term “Lenders” shall have the meaning given to such term in the preamble to this Pledge Agreement. 

1.8 Lender Expenses. The term “Lender Expenses” means all costs and expenses incurred by Administrative Agent or Lenders in
connection with this Pledge Agreement or the Credit Agreement or the Loan Documents or the transactions contemplated thereby, including, without limitation, (i) all costs or expenses required to be paid by Debtor under this Pledge Agreement
which are paid or advanced by Administrative Agent or Lenders; (ii) all costs or expenses required to be paid by Debtor under the Credit Agreement which are paid or advanced by Administrative Agent or Lenders; (iii) taxes and insurance
premiums of every nature and kind of Debtor paid by Administrative Agent or Lenders; (iv) filing, recording, publication, search fees, appraiser fees, auditor fees paid or incurred by Administrative Agent or Lenders in connection with
Administrative Agent’s transactions with Debtor; (v) costs and expenses incurred by Administrative Agent or Lenders in collecting or realizing upon the Collateral (with or without suit), to correct any default or enforce any provision of
this Pledge Agreement, costs and expenses of suit incurred by Administrative Agent in enforcing or defending this Pledge Agreement or any portion hereof; and (vi) reasonable attorneys’ fees and expenses incurred by Administrative Agent or
Lenders in advising, structuring, drafting, reviewing, amending, terminating, enforcing, defending or concerning this Pledge Agreement, 
  

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 any portion hereof, any agreement
related hereto, or any of the transactions contemplated hereby, whether or not suit is brought, and including, but not limited to, any expenses incurred in any proceedings or case in the U.S, bankruptcy courts in enforcing or defending its rights in
its collateral, under this Pledge Agreement or under any note or other document executed in connection with this Pledge Agreement. 
 1.9
Lien. The term “Lien” shall mean any mortgage, pledge, hypothecation, assignment, deposit arrangement (including in the nature of cash collateral accounts or security interests), encumbrance, lien (statutory or other), fixed
or floating charge, or other security interest of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing, and the
filing of any financing statement under the UCC or comparable laws of any jurisdiction), including the interest of a purchaser of accounts receivable. 
 1.10 Obligations. The term “Obligations” shall have the meaning given to such term in the Credit Agreement, and shall include all debts, obligations, and liabilities whether Debtor may be
liable individually or jointly, or whether recovery upon such debt may be or become barred by any statute of limitations or otherwise unenforceable, including all attorneys’ fees and costs now or hereafter payable by Debtor to the Lenders under
the Loan Documents or in connection with the collection and enforcement of such debts, obligations and liabilities. Notwithstanding anything to the contrary contained in this Pledge Agreement, this Pledge Agreement shall not secure and the term
“Obligations” shall not include any debts that are or may hereafter constitute “consumer credit” which is subject to the disclosure requirements of the federal Truth-In Lending Act (15 U.S.C. Section 1601, et
seq.) or any similar state law in effect from time to time, unless Administrative Agent and Debtor shall otherwise agree in a separate written agreement. 
 1.11 Pledge Agreement. The term “Pledge Agreement” shall mean this Pledge Agreement, any concurrent or subsequent rider to this Pledge Agreement and any extensions, supplements, amendments or
modifications to this Pledge Agreement and/or to any such rider. 
 1.12 Proceeds. The term “Proceeds” shall have the
meaning provided in the UCC and shall include without limitation whatever is received upon the sale, lease, exchange, collection or other disposition of Collateral or proceeds, including, without limitation, proceeds of insurance covering
Collateral, tax refunds, and any and all accounts, notes, instruments, chattel paper, equipment, money, deposit accounts, goods, or other tangible and intangible property of Debtor resulting from the sale or other disposition of the Collateral, and
the proceeds thereof. 
 1.13 UCC. The term “UCC” shall mean the California Uniform Commercial Code, as amended from
time to time. 
  

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 1.14 Other
Terms. All terms with an initial capital letter that are used but not defined in this Pledge Agreement shall have the respective meanings given to such terms in the Credit Agreement and in Articles 8 and 9 of the UCC, respectively, as
applicable. 
 2. GRANT OF SECURITY INTEREST IN COLLATERAL. As security for the prompt and complete payment and performance of all the
Obligations, Debtor hereby grants to Administrative Agent for itself and on behalf of and for the ratable benefit of the Lenders, a first priority security interest (subject to Permitted Liens in favor of any Governmental Authority, which pursuant
to the statute or law and other applicable law creating such Lien, have priority over any Lien granted in this Pledge Agreement) in all of Debtor’s right, title and interest in, to and under the Collateral. 
 3. DELIVERY OF COLLATERAL AND VOTING. 
 3.1 Collateral Delivery. 
 (a) Initial Delivery of Collateral. Concurrently with Debtor’s execution of this
Pledge Agreement and delivery of this Pledge Agreement to the Administrative Agent, Debtor shall deliver physical possession to the Administrative Agent of every stock certificate, document, instrument and chattel paper which constitutes Collateral
and obtain the fully executed Consent in the form attached hereto as Exhibit B. Any such items of Collateral that are certificated securities shall be duly endorsed in blank without restriction or with a duly executed assignment separate from
certificate (stock power) duly endorsed in blank without restriction and with all necessary transfer tax stamps affixed. To the extent that Debtor delivers to Administrative Agent one or more stock certificates each of which (“Foreign
Subsidiary Certificate”) reflects an equity interest in any Foreign Subsidiary in excess (“Excess Equity Interest”) of the percentage set forth in Section 1.2(c) above (“Designated Percentage
Interest”), Administrative Agent will be entitled to hold such Foreign Subsidiary Certificate to reflect and perfect its security interest in 66.66% of the Equity Interest in the Foreign Subsidiary, unless and until Debtor delivers to
Administrative Agent a (i) replacement certificate reflecting the Designated Percentage Interest; and (ii) an acceptable legal opinion from a law firm reasonably acceptable to Agent that the replacement certificate was properly issued and
is fully paid for and properly reflects the Designated Percentage interest in the subject entity and may be delivered to Administrative Agent as collateral. (Such replacement certificates when delivered or provided herein as referred to as the
“Replacement Foreign Subsidiary Certificate”). 
 (b) Future Delivery of Collateral. If at any time after the date
of this Pledge Agreement, Debtor obtains possession of any certificate or instrument constituting or representing any item of Collateral, (i) Debtor shall immediately deliver or arrange for the immediate delivery of such certificate or
instrument to Administrative Agent; (ii) to the extent such item represents a certificated security, Debtor shall duly endorse such certificate in blank without restriction or deliver a duly executed assignment separate from certificate (stock
power) duly endorsed in blank without restriction and with all necessary transfer tax stamps affixed; and (iii) Debtor shall hold such Collateral separate and apart from Debtor’s other funds and property in an express trust for the benefit
of the Administrative Agent until paid or delivered to the Administrative Agent. 
  

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 (c) Uncertificated
Securities. If any item of Collateral is an uncertificated security, Debtor shall either (i) procure the issuance of a security certificate to represent such Collateral and endorse and deliver such certificate as required by
Section 3.1(a) above; or (ii) cause the issuer thereof to register the Administrative Agent as the registered owner of such uncertificated security; or (iii) cause the issuer thereof to enter into an agreement, in form and substance
reasonably satisfactory to the Administrative Agent, among the Administrative Agent, the registered owner of such security, and the issuer to the effect that the issuer will comply with instructions originated by the Administrative Agent without
further consent by the registered owner; or (iv) cause the security to be credited to a securities account and execute an agreement in form reasonably acceptable to Administrative Agent to permit Administrative Agent to gain control of such
asset. 
 3.2 Control. If any Collateral is not capable of being delivered, Debtor shall deliver to Administrative Agent such
financing statements or other instruments as are deemed necessary by Administrative Agent to enable it to perfect its security interest in such Collateral and obtain “control” or “possession” of such Collateral under applicable
law. 
 3.3 Pledge under Foreign Law. To the extent that the pledge of the item of Collateral is governed by the laws of a
jurisdiction other than a state of the United States, Debtor shall, in lieu of compliance with the other provisions of this Section 3, enter into such agreements and documents as are reasonably necessary to accomplish the pledge of such
Collateral to Administrative Agent. 
 3.4 Voting. Provided that no Event of Default has occurred and is continuing, Debtor shall have
the right to exercise all voting rights and other consensual rights and powers with respect to the Collateral for any purpose not inconsistent with the terms of this Pledge Agreement and the other Loan Documents; provided, however, that
(a) Debtor shall not exercise any such right or power if, in Administrative Agent’s discretion, such action would have an adverse effect on the value of the Collateral or impair or otherwise adversely affect the security interest or other
rights of the Administrative Agent under this Pledge Agreement; and (b) Debtor shall not be permitted to trade, invest, or sell the Financial Assets (as such term is defined in Article 8 of the UCC) without the prior written consent of the
Administrative Agent. 
 4. DISPOSITION OF COLLATERAL REVENUES. 
 4.1 Delivery to Debtor; No Event of Default. Provided that no Event of Default has occurred and is continuing, the Collateral Revenues shall be
retained by Debtor to the extent provided in Section 4.3 below. 
 4.2 Occurrence of Event of Default. If an Event of Default has
occurred and is continuing, the Administrative Agent shall have the right to hold and apply the Collateral Revenues as provided below. 
  

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	 Stock Pledge Agreement
	  	Epicor Software Corporation

  
 4.3 Payment of Cash
Dividends and Interest. Provided that no Default or Event of Default shall have occurred and be continuing, Debtor shall be entitled to receive all cash dividends and interest payable in connection with the Collateral, except for the following,
which are referred to as “Liquidation Dividends,” for (a) cash dividends paid or payable in respect of any Collateral in connection with a partial or total liquidation or dissolution or in connection with a reduction of
capital, capital surplus, or paid-in capital of the issuer of such Collateral; and (b) cash paid, payable, or otherwise distributed in respect of principal of, or in redemption of, or in exchange for, any Collateral. If at any time and for any
reason Debtor receives any Collateral Revenues other than those that Debtor is entitled to receive under this Section 4.3, Debtor (i) shall immediately deliver such Collateral Revenues to the Administrative Agent in the original form
received by Debtor; (ii) shall execute and deliver to the Administrative Agent such documents of transfer respecting such Collateral Revenues as the Administrative Agent may require, including an endorsement in blank of any certificate
evidencing such Collateral Revenues; (iii) shall not commingle such Collateral Revenues with any of Debtor’s other funds or property; and (iv) shall hold such Collateral Revenues separate and apart from Debtor’s other funds and
property in an express trust for Administrative Agent until paid or delivered to the Administrative Agent. Notwithstanding the foregoing, to the extent that the Administrative Agent holds a Foreign Subsidiary Certificate which reflects an Excess
Equity Interest, Administrative Agent may receive and collect all Liquidation Dividends payable in connection with the entire Foreign Subsidiary Certificate. Administrative Agent shall refund to Debtor any Liquidation Dividends allocable to the
Excess Equity Interest. 
 5. COVENANTS REPRESENTATIONS AND WARRANTIES. 
 5.1 Debtor’s Covenants. Notwithstanding anything to the contrary contained in the other Loan Documents (and subject to Section 15.11
below), Debtor hereby covenants and agrees that during the term hereof and until all Obligations are fully paid and performed: 
 (a)
Liens. Except for the Lien provided to Administrative Agent, Debtor shall at all times keep the Collateral free of all Liens other than the security interest of the Administrative Agent or Permitted Liens in favor of any Governmental
Authority which pursuant to statute or law creating such Lien and other applicable law, have priority over any Lien granted under this Pledge Agreement. 
 (b) Further Assurances. Debtor shall deliver to Administrative Agent promptly or ensure that Administrative Agent promptly receives (i) all Collateral that Debtor is obligated to deliver to the
Administrative Agent under Section 3.1 above; (ii) all financing statements and all other documents that Administrative Agent deems necessary or desirable to evidence the transfer and pledge of the Collateral to Administrative Agent as
provided in this Pledge Agreement; (iii) except as otherwise expressly provided in this Pledge Agreement, all Collateral Revenues; (iv) such specific acknowledgments, assignments, stock or bond powers, Regulation U Statement of Purpose
forms, and other documents as the Administrative Agent may request relating to the Collateral; and (v) copies of records and other reports relating to the Collateral in such form and detail and at such times as the Administrative Agent may from
time to time require. 
  

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	 Stock Pledge Agreement
	  	Epicor Software Corporation

  
 (c) Changes in
Collateral. Debtor shall give prompt notice to Administrative Agent of any threatened or asserted dispute or claim with respect to the Collateral, which could reasonably be expected to materially and adversely affect the Collateral. 

(d) Subsidiaries. If there is a material recapitalization or restructure or acquisition of the equity interest in any Subsidiaries of Debtor,
Debtor shall take such action as is necessary so that Administrative Agent shall have and retain (i) 100% of the equity interest in all domestic Material Subsidiaries wholly-owned by Debtor and organized under the laws of the United States or
any state or jurisdiction thereof, and (ii) 66.66% of the equity interests of any First Tier Foreign Subsidiary. 
 (e)
Perfection. From time to time upon Administrative Agent’s request, Debtor (i) shall execute and deliver to Administrative Agent, and give, file or record, at Debtor’s expense, all notices and other documents that Administrative
Agent deems necessary or appropriate in order for the Administrative Agent to maintain a first priority (subject to Liens (including tax liens) in favor of any Governmental Authority which pursuant to statute or law creating such Lien and other
applicable law, have priority over any Lien granted under this Pledge Agreement) perfected security interest in the Collateral; and (ii) shall perform such other acts, and execute and deliver to Administrative Agent such additional assignments,
agreements, instruments and other documents, as Administrative Agent may request in connection with the administration and enforcement of this Pledge Agreement or the Administrative Agent’s exercise of any or all of its rights, powers and
remedies under this Pledge Agreement. 
 (f) Litigation Cooperation. Debtor, at its expense, shall appear in and defend any action or
proceeding which may materially and adversely affect Debtor’s title to all or part of the Collateral or Administrative Agent’s security interest in the Collateral. 
 (g) Changes. Without prior written notice to Administrative Agent, Debtor will not change its name, mailing address, or its state of
incorporation. 
 5.2 Debtor’s Representations. Debtor represents and warrants to Administrative Agent and Lenders as follows:

 (a) Ownership of Collateral. Debtor is the sole legal and beneficial owner of the Collateral, free and clear of all Liens, except
for the security interest in favor of Administrative Agent under this Pledge Agreement and Permitted Liens currently existing in favor of any foreign governmental authority, which to the best of Debtor’s knowledge do not currently exist.

 (b) Status of Collateral. All of the Collateral consisting of securities has been duly and validly issued and is fully paid for
and non-assessable. Except for Collateral that Debtor has previously disclosed to Agent as “restricted securities” or securities held by an 
  

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	 Stock Pledge Agreement
	  	Epicor Software Corporation

  
 “affiliate” (as such terms
are defined in Rule 144 under the Securities Act of 1933, as amended), including Collateral consisting of the stock of any subsidiary of Debtor, or as may be specifically stated to the Agent in writing prior to the date of this Pledge Agreement, all
of the Collateral is transferable without prior notice to, or approval or consent from, any person or governmental or regulatory authority, and there exists no condition or restriction or restrictive legend to or affecting the transfer of the
Collateral. 
 (c) Authority to Pledge. Debtor has full rights and authority to pledge the Collateral in the manner hereby specified;
and (except for approvals which have already been obtained) no consent of any governmental body or regulatory authority is necessary for the rights created hereunder to be valid. 
 (d) Continuing Warranties. Debtor’s warranties and representations set forth in this Section 5 and in any exhibit hereto shall be true
and correct at the time of execution of this Pledge Agreement by Debtor and at the time Debtor requests or receives any advance under the Credit Agreement. 
 (e) Subsidiaries. The assets described in Exhibit A as of the time of this Pledge Agreement are all of the issued and outstanding equity interests of CRS Retail Technology Group, Inc. and Epicor Software
(UK) Limited. 
 (f) Warranties and Representations Cumulative. The warranties, representations and agreements set forth herein shall
be cumulative and in addition to any and all other warranties, representations and agreements which Debtor shall give, or cause to be given, to Administrative Agent or Lenders, either now or hereafter. 
 6. DUTY OF ADMINISTRATIVE AGENT TO COOPERATE WITH READJUSTMENTS. Administrative Agent agrees to cooperate with Debtor to maintain the percentage
interests set forth in 3.1(a) by adjusting the outstanding equity interests pledged hereunder in the event there is a recapitalization, restructure or acquisition of equity interests by Debtor relating to any of its Subsidiaries. 
 7. EVENTS OF DEFAULT. The occurrence of any of the following shall constitute an Event of Default under this Pledge Agreement, at the option of
the Administrative Agent. 
 7.1 Breach of Pledge Agreement. (i) Any representation or warranty hereunder proves to have been
incorrect in any material respect when made or deemed made, (ii) Debtor breaches any provision of this Pledge Agreement which cannot be cured or (iii) the breach by Debtor of any other provision of this Pledge Agreement that remains
uncured for a period of thirty (30) days. 
 7.2 Breach of Other Agreements. The occurrence and continuance of an Event of
Default under the Credit Agreement. 
  

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	 Stock Pledge Agreement
	  	Epicor Software Corporation

  
 7.3 Lien
Priority. Administrative Agent shall cease to have a valid and perfected first priority (subject to Permitted Liens in favor of any Governmental Authority which pursuant to statute or law creating such Lien and other applicable law, have
priority over the Lien granted in this Pledge Agreement) lien upon any material item of the Collateral purported to be covered by such security interest. 
 7.4 Seizure of Assets. If all or any material item(s) of the Collateral is attached, seized, subjected to a writ or distress warrant, or is levied upon and such action can reasonably be expected to cause a
Material Adverse Effect. 
 8. ADMINISTRATIVE AGENT’S RIGHTS AND REMEDIES ON DEFAULT. The exercise of remedies hereunder shall be
made by Administrative Agent on behalf of itself and for the ratable benefit of the Lenders upon the terms and conditions contained herein. If an Event of Default shall have occurred and be continuing and not been cured or waived in accordance with
the terms hereof or the Credit Agreement, Administrative Agent shall have the following rights and powers and may, at Administrative Agent’s option, without notice of its election and without demand to the extent permitted by Section 8.3
of the Credit Agreement, do any one or more of the following, all of which are hereby authorized by Debtor: 
 8.1 UCC Rights. The
Administrative Agent shall have all of the rights and remedies of a secured party under the UCC and under all other applicable laws. 
 8.2
Acceleration. Administrative Agent may declare any or all of the Obligations to be immediately due and payable. 
 8.3 Extensions
of Credit. Lenders may discontinue advancing money or extending credit to or for the benefit of Debtor in connection with the Credit Agreement or under any other document agreement between Administrative Agent, Lenders and Debtor. 
 8.4 Assembly of Collateral. The Administrative Agent may require Debtor to assemble the Collateral and make it available to the Administrative
Agent at a place designated by the Administrative Agent. 
 8.5 Possession of Collateral. The Administrative Agent, without a breach
of the peace, may enter any of the premises of Debtor and search for, take possession of, remove, keep or store any or all of the Collateral. If the Administrative Agent seeks to take possession of any or all of the Collateral by court process,
Debtor irrevocably and unconditionally agrees that a receiver may be appointed by a court for such purpose without regard to the adequacy of the security for the Obligations. 
 8.6 Foreclose on Collateral. The Administrative Agent shall have the right to sell and dispose of the Collateral, or any part thereof, at public
or private sale or at any broker’s board or on any securities exchange, for cash, upon credit or for future delivery, and at such price or prices as the Administrative Agent may deem satisfactory. The Administrative Agent may be the purchaser
of any or all of the Collateral so sold at any public sale (or, if the Collateral is of a 
  

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	 Stock Pledge Agreement
	  	Epicor Software Corporation

  
 type customarily sold in a recognized
market or is of a type which is the subject of widely distributed standard price quotations, at any private sale) and thereafter hold the same, absolutely free from any right or claim of whatsoever kind. The Administrative Agent is authorized, at
any such sale, if it deems it advisable so to do, to restrict the prospective bidders or purchasers of any of the Collateral to persons who will represent and agree that they are purchasing for their own account for investment, and not with a view
to the distribution or sale of any of the Collateral. Upon any such sale the Administrative Agent shall have the right to deliver, assign, and transfer to the purchaser thereof the Collateral so sold. Each purchaser at any such sale shall hold the
Collateral so sold free from any claim or right of whatsoever kind of Debtor or any other Person, including any equity or right of redemption of Debtor, who, to the extent permitted by law, specifically waives any now existing or hereafter acquired
rights of redemption, stay or appraisal. The Administrative Agent shall give Debtor: (i) ten (10) days written notice of its intention to make any such public or private sale; or (ii) two (2) days notice of any sale at a
broker’s board or on a securities exchange. Such notice, in case of a public sale, shall state the time and place fixed for such sale, and, in case of sale at a broker’s board or on a securities exchange, shall state the board or exchange
at which such sale is to be made and the day on which the Collateral, or the portion thereof being so sold, will first be offered for sale at such board or exchange. Any such public sale shall be held at such time or times within ordinary business
hours and at such place or places as the Administrative Agent may fix in the notice of such sale. At any such sale the Collateral may be sold in one lot as an entirety or in separate parcels, as the Administrative Agent may determine. The
Administrative Agent shall not be obligated to make any such sale pursuant to any such notice. The Administrative Agent may, without notice or publication, postpone any public or private sale or cause the same to be postponed from time to time by
announcement at the time and place fixed for the sale, and such sale may be made at any time or place to which the same may be so postponed. In case of any sale of all or any part of the Collateral on credit or for future delivery, the Collateral so
sold may be retained by the Administrative Agent until the selling price is paid by the purchaser thereof, but the Administrative Agent shall not incur any liability in case of the failure of such purchaser to take up and pay for the Collateral so
sold and, in case of any such failure, such Collateral may again be sold upon like notice. To the extent that Administrative Agent holds any Foreign Subsidiary Certificate which reflects an Excess Equity Interest, Administrative Agent may foreclose
on such certificate in any manner permitted by applicable law or as specified in this Section 8 as regards any item of Collateral. Upon any sale of such Certificate, Administrative Agent will release to Debtor any consideration received in
return for the sale of the Excess Equity Interest. 
 8.7 Judicial Action. The Administrative Agent, in its discretion, may proceed by
a suit or suits at law or in equity to foreclose its security interests in the Collateral under a judgment or decree of a court or courts of competent jurisdiction. Debtor agrees that any disposition of Collateral by way of a private placement or
other method which, in the opinion of the Administrative Agent, is required or advisable under federal and state securities laws is commercially reasonable. 
  

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	 Stock Pledge Agreement
	  	Epicor Software Corporation

  
 8.8 Collateral
Revenues. Debtor’s rights, if any, to receive any Collateral Revenues shall automatically cease, and all Collateral Revenues shall be paid to the Administrative Agent. Any and all Collateral Revenues received by the Administrative Agent may
be retained by the Administrative Agent as additional Collateral or, in the Administrative Agent’s discretion, maybe applied toward the satisfaction of the Obligations. In such event the Administrative Agent shall have the right and power to
receive, endorse and collect all checks and other orders for payment of money made payable to Debtor representing any dividend or other distribution payable or distributable in respect of any Collateral. 
 8.9 Information. Without limiting the generality of this Section 8, it shall conclusively be deemed to be commercially reasonable for the
Administrative Agent to direct any prospective purchaser of any or all of the Collateral to Debtor to ascertain all information concerning the status of the Collateral. 
 8.10 Commercially Reasonable Actions by Administrative Agent. Debtor acknowledges that it may be impracticable or extremely difficult to effect a public sale of all or part of the Collateral by reason of
certain restrictions contained in state and federal securities laws, as now or hereafter in effect. Because of such restrictions, and without limiting the generality of this Section 8, it shall conclusively be deemed to be commercially
reasonable for the Administrative Agent to do any or all of the following: 
 (a) To resort to one or more private sales to a single
purchaser or a restricted group of purchasers who may be obligated to agree, among other things, to acquire the Collateral for their own account, for investment and not with a view to the distribution or resale thereof; and 
 (b) To impose restrictions and conditions with respect to (i) the ability of a purchaser or bidder to bear the economic risk of an investment in
the Collateral; (ii) the knowledge and experience of business and financial matters of a purchaser or bidder; (iii) the access of a purchaser or bidder to information regarding the Collateral; and (iv) such other matters as the
Administrative Agent determines to be necessary or advisable to comply with any state or federal securities laws. 
 8.11 No Registration
Required. Debtor acknowledges that some or all of the conditions and restrictions which may be imposed by the Administrative Agent pursuant to Section 8.10 above may result in reduced proceeds being received upon the sale of the Collateral
than would otherwise have been obtained. The Administrative Agent shall have no obligation to delay the sale of any or all of the Collateral for the period of time necessary to permit registration by the issuer of any securities comprising the
Collateral, even if such registration would be possible under applicable state and federal securities law. 
 8.12 Other Procedures.
The Administrative Agent’s disposition of any or all of the Collateral in any manner which differs from the procedures specified in this Section 8 shall not be deemed to be commercially unreasonable. 
  

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	 Stock Pledge Agreement
	  	Epicor Software Corporation

  
 8.13
Foreclosure. If the Administrative Agent has reduced its claims for breach of any of the obligations to judgment, the lien of any levy which may be made on any or all of the Collateral by virtue of any execution based upon such judgment shall
relate back to the date of the Administrative Agent’s perfection of its security interest in such Collateral. A judicial sale pursuant to such execution shall constitute a foreclosure of the Administrative Agent’s security interest by
judicial procedure, and the Administrative Agent may purchase at such sale and thereafter hold the Collateral free of all rights of Debtor therein. 
 8.14 Discharge Claims. The Administrative Agent may discharge claims, demands, liens, security interests, encumbrances and taxes affecting any or all of the Collateral and take such other actions as the Administrative Agent
determines to be necessary or appropriate to protect the Collateral and the Administrative Agent’s security interest therein. The Administrative Agent, without releasing Debtor or any other Person from any of the Obligations, may perform any of
the Obligations in such manner and to such extent as the Administrative Agent determines to be necessary or appropriate to protect the Collateral and the Administrative Agent’s security interest therein, 
 8.15 Proceeds of Sale. The proceeds of any sale or disposition of the Collateral by the Administrative Agent shall be applied in the following
order of priority: 
 (a) First, to all liabilities, obligations, costs, and expenses, including reasonable attorneys’ fees and
costs, incurred by the Administrative Agent in exercising any of its rights or remedies under this Pledge Agreement, including the costs and expenses of retaking, holding, and selling any or all of the Collateral; 
 (b) Second, to the payment of the Obligations in such order and amounts as the Administrative Agent may determine in its discretion as more fully
set forth in the Credit Agreement; 
 (c) Third, to (i) the satisfaction of indebtedness secured by any subordinate security
interest in the Collateral if written demand therefor is received by the Administrative Agent before distribution of any such proceeds; and (ii) to the satisfaction of any subordinate attachment lien or execution lien pursuant to subdivision
(b) of Section 701.040 of the Code of Civil Procedure if notice of the levy of attachment or execution is received by the Administrative Agent before distribution of any such proceeds. If requested by the Administrative Agent, the holder
of a subordinate security interest in the Collateral shall furnish the Administrative Agent with proof of its interest in the Collateral acceptable to the Administrative Agent, and unless such holder does so, the Administrative Agent shall have no
obligation to comply with such holder’s demand; and 
 (d) Fourth, the surplus, if any, shall be paid to Debtor. 
 8.16 Voting Rights. The Administrative Agent may exercise any or all warrants, options, conversion rights, puts, calls, voting rights, and other
rights with respect to any or all of the Collateral (collectively the “Voting and Stock Rights”) in such manner and to such 
  

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	 Stock Pledge Agreement
	  	Epicor Software Corporation

  
 extent as the Administrative Agent in
its discretion determines to be necessary or appropriate, and Debtor’s rights and authority to exercise the Voting and Stock Rights shall automatically terminate upon the occurrence and during the continuance of an Event of Default.
Notwithstanding anything to the contrary contained in this Pledge Agreement, the Administrative Agent shall have no obligation to exercise any or all Voting and Stock Rights, and the Administrative Agent shall have no liability or responsibility of
any kind to Debtor or any other party for the Administrative Agent’s exercise or delay or failure to exercise any or all of the Voting and Stock Rights. In connection with the Administrative Agent’s exercise of any or all of the Voting and
Stock Rights, the Administrative Agent shall have the right (a) to deposit or surrender control of any or all of the Collateral to any third Person; (b) to accept other property in exchange for the Collateral; and (c) to take such
other actions as the Administrative Agent in its discretion determines to be necessary or appropriate. 
 9. LIABILITY FOR DEFICIENCY.
Debtor shall at all times remain liable for any deficiency remaining on the Obligations, and is liable after any disposition of any or all of the Collateral and after the Administrative Agent’s application of any proceeds to the Obligations.

 10. POWER OF ATTORNEY. Debtor irrevocably appoints the Administrative Agent, with full power of substitution, as Debtor’s
attorney-in-fact, coupled with an interest, with full power, in the Administrative Agent’s own name or in the name of Debtor: 
 10.1 At
any time after the occurrence and during the continuation of an Event of Default, to do any or all of the following: 
 (a) Endorse any
checks, drafts, money orders, notes, and other instruments or documents representing or evidencing the Collateral; 
 (b) Pay or discharge
claims, demands, liens, security interests, encumbrances, or taxes affecting or threatening the Collateral; 
 (c) Receive payment of all
Collateral Revenues; 
 (d) Commence, prosecute or defend any suit, action or proceeding relating to any or all of the Collateral;

 (e) Instruct any accountant or other third Person having custody or control of any Collateral Records to deliver such records to the
Administrative Agent; and 
 (f) Sell, transfer, pledge, make any agreement with respect to, or otherwise deal with the Collateral as though
the Administrative Agent were the owner thereof for all purposes. 
 10.2 To execute any security agreement, assignment, notice, and all
other documents which the Administrative Agent, in its discretion, determines to be necessary or appropriate in order to (a) perfect or maintain the Administrative Agent’s security interest in the Collateral; (b) exercise any or all
of the Administrative Agent’s rights under this Pledge Agreement; or (c) to consummate or effectuate any of the transactions contemplated by this Pledge Agreement. 
  

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	 Stock Pledge Agreement
	  	Epicor Software Corporation

  
 11. WAIVERS.
Debtor hereby waives presentment, demand for payment, protest, notice of demand, dishonor, protest and nonpayment, and all other notices and demands in connection with the delivery, acceptance, performance, default under, and enforcement of the
Obligations. Debtor waives the right to assert any statute of limitations as a defense to the enforcement of any of the Obligations to the fullest extent permitted by law. 
 12. CUMULATIVE REMEDIES. The Administrative Agent’s rights and remedies under this Pledge Agreement are cumulative with and in addition to
all other rights and remedies which the Administrative Agent may have in connection with the Loans. The Administrative Agent may exercise any one or more of its rights and remedies under this Pledge Agreement at the Administrative Agent’s
option and in such order as the Administrative Agent may determine in its discretion. The Administrative Agent may exercise its rights under this Pledge Agreement from time to time and at such times as the Administrative Agent may determine.

 13. ACTIONS. The Administrative Agent shall have the right, but not the obligation, to commence, appear in, or defend any action or
proceeding which affects or which the Administrative Agent determines may affect (a) the Collateral; (b) Debtor’s or the Administrative Agent’s rights or obligations under the Loan Documents; (c) Debtor’s or the
Administrative Agent’s rights under this Pledge Agreement; or (d) the Loans. Whether or not an Event of Default has occurred under any of the Loan Documents, the Administrative Agent shall at all times have the right to take any and all
actions which the Administrative Agent in its discretion determines to be necessary or appropriate to protect the Administrative Agent’s interest in connection with the Loan. 
 14. INDEMNITY. Debtor agrees to defend, indemnify and hold harmless Administrative Agent, each Lender and their respective officers, employees,
and agents against: (a) all obligations, demands, claims, and liabilities claimed or asserted by any other party related to or in connection with the transactions contemplated by this Pledge Agreement or the Collateral, and (b) all losses
or expenses in any way suffered, incurred, or paid by Administrative Agent and any Lender as a result of or in any way arising out of, following or consequential to the transactions between Administrative Agent and Lenders and Debtor under this
Pledge Agreement or the Collateral (including without limitation, reasonable attorneys fees and reasonable expenses), except for losses arising from or out of Administrative Agent’s or such Lender’s gross negligence or willful misconduct.

 15. GENERAL. 
 15.1
Taxes and Other Expenses Regarding the Collateral. If Debtor fails to pay promptly when due to any person or entity monies which Debtor is required to pay by reason of any provision in this Pledge Agreement, Administrative Agent may, but need
not, pay the same 
  

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	 Stock Pledge Agreement
	  	Epicor Software Corporation

  
 and charge Debtor’s account
therefor, and Debtor shall promptly reimburse Administrative Agent therefor. Any payments made by Administrative Agent shall not constitute: (a) an agreement by Administrative Agent to make similar payments in the future, or (b) a waiver
by Administrative Agent of any default under this Pledge Agreement. Administrative Agent need not inquire as to, or contest the validity of, any such expense, tax, security interest, encumbrance or lien and the receipt of the usual official notice
for the payment thereof shall be conclusive evidence that the same was validly due and owing. 
 15.2 Notices. Any notice, demand or
request required hereunder shall be made in the manner set forth in the Credit Agreement. 
 15.3 Release of Collateral.
Administrative Agent shall promptly file UCC termination statements and any other instruments as necessary upon any Disposition by Debtor of any items or item of Collateral, to the extent such Disposition is permitted under the Credit Agreement.

 15.4 Termination. At such time as Debtor shall completely satisfy all of the Obligations secured hereunder, Administrative Agent
shall execute and deliver to Debtor all instruments as may be necessary or proper to reinvest in Debtor full title to the property assigned hereunder, subject to any disposition thereof which may have been made by Administrative Agent pursuant
hereto. 
 15.5 Course of Dealing. No course of dealing, nor any failure to exercise, nor any delay in exercising any right, power or
privilege hereunder shall operate as a waiver thereof. 
 15.6 Amendment. This Pledge Agreement may be modified only by a written
agreement signed by Debtor and the Administrative Agent. 
 15.7 Agreement Binding; Assignment. This Pledge Agreement shall be binding
and deemed effective when executed by Debtor and Administrative Agent. This Pledge Agreement shall bind and inure to the benefit of the respective successors and assigns of each of the parties; provided, however, that Debtor may not assign
this Pledge Agreement, or any rights hereunder without Administrative Agent’s prior written consent and any prohibited assignment shall be absolutely void. No consent to an assignment by Administrative Agent shall release Debtor from its
obligations to Administrative Agent. Administrative Agent and each Lender reserves the right to sell, assign, transfer, negotiate or grant participations in all or any part of, or any interest in, Administrative Agent’s or such Lender’s
rights and benefits hereunder to the extent and in the manner provided for in Section 10.4 of the Credit Agreement. In connection therewith, Administrative Agent may disclose all documents and information that Administrative Agent now has or
hereafter may have relating to Debtor or Debtor’s business subject to Debtor’s reasonable confidentiality requirements. 
 15.8
Time of Essence. Time is of the essence of each provision of the Loan Documents. 
  

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	  	Epicor Software Corporation

  
 15.9 Article and
Section Headings. Article and section headings and article and section numbers have been set forth herein for convenience only. Unless the contrary is compelled by the context, everything contained in each article and section applies equally to
this entire Pledge Agreement. 
 15.10 Construction. Neither this Pledge Agreement nor any uncertainty or ambiguity herein shall be
construed or resolved against Administrative Agent or Debtor, whether under any rule of construction or otherwise. On the contrary, this Pledge Agreement has been reviewed by all parties and shall be construed and interpreted according to the
ordinary meaning of the words used so as to fairly accomplish the purposes and intentions of all parties hereto. 
 15.11 Conflict or
Credit Agreement Modifications. To the extent that there is an explicit conflict between the terms of the Credit Agreement and this Pledge Agreement, the terms of the Credit Agreement shall control. Any future changes or modifications to the
Credit Agreement, shall apply to and modify this Pledge Agreement, to the extent that such change or modification would reasonably be construed to apply, to this Pledge Agreement. 
 15.12 Performance of Covenants. Debtor shall perform all of its covenants under this Pledge Agreement at its sole cost and expense. 
 15.13 Term. This Pledge Agreement shall continue in full force and effect as long as any of the Obligations are outstanding and until terminated
by written agreement of the Administrative Agent. 
 15.14 Severability. Each provision of this Pledge Agreement shall be severable
from every other provision of this Pledge Agreement for the purpose of determining the legal enforceability of specific provision. Without limiting the generality of the preceding sentence, if the Administrative Agent’s security interest in any
part of the Collateral is held to be unlawful, void, voidable or unenforceable for any reason, such defect shall in no way affect the validity or enforceability of the remaining terms and conditions of this Pledge Agreement. 
 15.15 No Third Party Beneficiaries. The Loan Documents are entered into for the sole protection and benefit of Lenders, Debtor and Administrative
Agent, as applicable, and their respective permitted successors and assigns. No other Person shall have any rights or causes of action under the Loan Documents. 
 15.16 Counterparts. This Pledge Agreement may be executed in two or more counterparts, each of which is deemed an original but all of which together shall constitute the same instrument. 
 15.17 No Waiver By Administrative Agent. No waiver by the Administrative Agent or any of its rights or remedies in connection with the Obligations
or any of the terms and conditions of the Loan Documents shall be effective unless such waiver is in writing and signed by the Administrative Agent. 
  

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	  	Epicor Software Corporation

  
 16. AMENDMENT.
This Pledge Agreement may be modified only by a written agreement signed by Debtor and Administrative Agent. 
 17. ADDITIONAL WAIVERS OF
DEBTOR. Notwithstanding the rights given to Debtor pursuant to California Civil Code Sections 1479 and 2822 (and any amendments or successors thereto), to designate how payments will be applied, Debtor irrevocably waives such rights, and the
Administrative Agent shall have the right in its discretion to determine the order and method of the application of payments received from Debtor or from the sale or disposition of the Collateral and to revise such application prospectively or
retroactively at its discretion (notwithstanding any entry by the Administrative Agent on its books). Debtor waives any right to require the Administrative Agent (a) to proceed against any Person; (b) to exhaust any Collateral; or
(c) to pursue any remedy in the Administrative Agent’s power in any order or whatsoever. 
 18. ENTIRE AGREEMENT. The Loan
Documents contain the entire agreement between the Administrative Agent and Debtor concerning the subject matter of the Loan Documents and supersede all prior and contemporaneous agreements, statements, understandings, terms, conditions,
representations and warranties, whether oral or written, made by the Administrative Agent or Debtor concerning the Loans. 
 [Signature
page follows] 
  

 17 

			
	 Stock Pledge Agreement
	  	Epicor Software Corporation

  
 All terms and
conditions set forth in the Exhibits and any Addendum(s) attached to this Pledge Agreement are incorporated by this reference. 
  

			
	DEBTOR:
	
	EPICOR SOFTWARE CORPORATION, a Delaware corporation
		
	By.	 	 /s/ Michael A. Piraino

		
	Title:	 	 Chief Financial Officer and Executive Vice President

	
	ADMINISTRATIVE AGENT:
	
	 KEYBANK NATIONAL ASSOCIATION, as
Administrative
Agent

		
	By.	 	 /s/ Thomas A. Crandell

		
	Title:	 	 Senior Vice President

  

 18 

 GUARANTY 
 Dated as of March 30, 2006 
 From

 CRS RETAIL SYSTEMS INC., 
 as Guarantor, 
 to 
 KEYBANK NATIONAL ASSOCIATION, 
 as Administrative Agent, Sole Book Manager, 
 Lender and Issuing Lender 
 and 
 THE VARIOUS FINANCIAL
INSTITUTIONS PARTY HERETO, 
 as Lenders, 
  

 GUARANTY 
 This GUARANTY (this “Guaranty”), dated as of March 30, 2006 by CRS RETAIL SYSTEMS
INC., a New York corporation (the “Guarantor”), in favor of each of the Lenders (as defined herein) and KEYBANK NATIONAL ASSOCIATION, as administrative agent
(in such capacity, the “Administrative Agent”) for itself and for the other financial institutions (collectively, the “Lenders”) which are or may become parties to the Credit Agreement dated as of the date hereof
(as may be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among EPICOR SOFTWARE CORPORATION, a Delaware corporation (the
“Borrower”), the Administrative Agent and the Lenders. Capitalized terms used herein without definition shall have the meanings ascribed to them in the Credit Agreement. 
 WITNESSETH: 
 WHEREAS, the Borrower, the Administrative
Agent, the Lenders and the other parties thereto have entered into the Credit Agreement; 
 WHEREAS, the Borrower and the
Guarantor are members of a group of related entities, the success of each of which is dependent in part on the success of the other members of such group; 
 WHEREAS, the Guarantor expects to receive substantial direct and indirect benefits from the Loans made by each Lender to the Borrower pursuant to the Credit Agreement (which benefits are hereby
acknowledged); 
 WHEREAS, a condition precedent to the obligation of the Lenders to make their respective extensions of
credit to the Borrower under the Credit Agreement is that the Guarantor shall execute and deliver a Guaranty for the benefit of the Administrative Agent and the Lenders; and 
 WHEREAS, Guarantor wishes to guaranty the Borrower’s obligations to the Lenders and the Administrative Agent under and in respect of
the Credit Agreement as herein provided. 
 NOW, THEREFORE, in consideration of the foregoing, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 Section 1. Guaranty of Payment and Performance of Obligations. In consideration of the Lenders’ extending credit or otherwise in their discretion giving time, financial or banking facilities or accommodations to the
Borrower, the Guarantor absolutely, irrevocably and unconditionally guarantees to the Administrative Agent and each Lender that the Borrower will duly and punctually pay or perform, at the place specified therefor, or if no place is specified, at
the Administrative Agent’s head office, (i) all indebtedness, obligations and liabilities of the Borrower to any of the Lenders and 

			
	 Guaranty
	  	CRS Retail Systems, Inc.

  
 the Administrative Agent, individually
or collectively, under the Credit Agreement or any of the other Loan Documents or in respect of any of the Loans or the Notes or other instruments at any time evidencing any thereof, whether existing on the date of the Credit Agreement or this
Guaranty or arising or incurred thereafter, direct or indirect, secured or unsecured, joint or several, absolute or contingent, matured or unmatured, liquidated or unliquidated, arising by contract, operation of law or otherwise, including all such
which would become due but for the operation of the automatic stay pursuant to §362(a) of the Federal Bankruptcy Code and the operation of §§502(b) and 506(b) of the Federal Bankruptcy Code; and (ii) without limitation of the
foregoing, all reasonable fees, costs and expenses incurred by the Administrative Agent and the Lenders in attempting to collect or enforce any of the foregoing (collectively the “Obligations” and individually an
“Obligation”). This Guaranty is an absolute, unconditional and continuing guaranty of the full and punctual payment and performance by the Borrower of the Obligations and not of their collectibility only and is in no way conditioned
upon any requirement that any Lender or the Administrative Agent first attempt to collect any of the Obligations from the Borrower or resort to any security or other means of obtaining payment of any of the Obligations which any Lender or the
Administrative Agent now has or may acquire after the date hereof or upon any other contingency whatsoever. Upon any Event of Default which is continuing by the Borrower in the full and punctual payment and performance of the Obligations, the
liabilities and obligations of the Guarantor hereunder shall, at the option of the Administrative Agent, become forthwith due and payable to the Administrative Agent and to the Lender or Lenders owed the same without demand or notice of any nature,
all of which are expressly waived by the Guarantor, except for notices required to be given to the Borrower under the Loan Documents. Payments by the Guarantor hereunder may be required by any Lender or the Administrative Agent on any number of
occasions. 
 Section 2. Guarantor’s Further Agreements to Pay. The Guarantor further agrees, as the principal obligor and
not as a guarantor only, to pay to each Lender and the Administrative Agent forthwith upon demand, in funds immediately available to such Lender or the Administrative Agent, all costs and expenses (including court costs and legal fees and expenses)
incurred or expended by the Administrative Agent or such Lender in connection with this Guaranty and the enforcement hereof, together with interest on amounts recoverable under this Guaranty from the time after such amounts become due at the default
rate of interest set forth in the Credit Agreement; provided that if such interest exceeds the maximum amount permitted to be paid under applicable law, then such interest shall be reduced to such maximum permitted amount. 
 Section 3. Payments. The Guarantor covenants and agrees that the Obligations will be paid in Dollars and otherwise strictly in accordance
with their respective terms regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Administrative Agent or any Lender with respect thereto. 
  

 -2- 

			
	 Guaranty
	  	CRS Retail Systems, Inc.

  
 Section 4.
Taxes. All payments hereunder shall be made without any counterclaim or set-off, free and clear of, and without reduction for, any Taxes or Other Taxes, which are now or may hereafter be imposed, levied or assessed by any Governmental Authority
on payments hereunder, all of which will be for the account of and paid by the Guarantor. If for any reason, any such reduction is made or any Taxes or Other Taxes are paid by the Administrative Agent or any Lender (except for taxes on income or
profits of such Administrative Agent or Lender), the Guarantor agrees to pay to the Administrative Agent or such Lender such additional amounts as may be necessary to ensure that the Administrative Agent or such Lender receives the same net amount
which it would have received had no reduction been made or Taxes or Other Taxes paid. 
 Section 5. [Intentionally
Reserved]. 
 Section 6. Liability of the Guarantor. The Administrative Agent and each Lender have and shall have the
absolute right to enforce the liability of the Guarantor hereunder without resort to any other right or remedy including any right or remedy under any other guaranty, and the release or discharge of any such other guarantor of any Obligations shall
not affect the continuing liability of the Guarantor hereunder that has not been released or discharged. 
 It is the intention and agreement
of the Guarantor, the Administrative Agent and the Lenders that the obligations of the Guarantor under this Guaranty shall be valid and enforceable against the Guarantor to the maximum extent permitted by applicable law. Accordingly, if any
provision of this Guaranty creating any obligation of the Guarantor in favor of the Administrative Agent and the Lenders shall be declared to be invalid or unenforceable in any respect or to any extent, it is the stated intention and agreement of
the Guarantor, the Administrative Agent and the Lenders that any balance of the obligation created by such provision and all other obligations of the Guarantor to the Administrative Agent and the Lenders created by other provisions of this Guaranty
shall remain valid and enforceable. Likewise, if by final order a court of competent jurisdiction shall declare any sums which the Administrative Agent or the Lenders may be otherwise entitled to collect from Guarantor under any other guaranty to be
in excess of those permitted under any law (including any federal or state fraudulent conveyance or like statute or rule of law), it is the stated intention and agreement of the Guarantor, the Administrative Agent and the Lenders that all sums not
in excess of those permitted under such applicable law shall remain fully collectible by the Administrative Agent and the Lenders from the Guarantor. 
 Section 7. Representations and Warranties; Covenants. The Guarantor hereby makes and confirms the representations and warranties made on its behalf by the Borrower pursuant to Section V of the Credit
Agreement, as if such representations and warranties were set forth herein. The Guarantor hereby agrees to perform the covenants set forth in Section VI and Section VII of the Credit Agreement (to the extent such covenants expressly apply to
Guarantor) as if such covenants were set forth herein. The Guarantor acknowledges that it is, on a collective basis with the Borrower, bound by the financial covenants and other covenants set forth in the Credit Agreement. The Guarantor hereby
confirms that it shall be bound by all acts or omissions of the Borrower pursuant to the Credit Agreement. 
  

 -3- 

			
	 Guaranty
	  	CRS Retail Systems, Inc.

  
 Section 8.
Effectiveness. The obligations of the Guarantor under this Guaranty shall continue in full force and effect and shall remain in operation until all of the Obligations shall have been paid in full or otherwise fully satisfied, and continue to be
effective or be reinstated, as the case may be, if at any time payment or other satisfaction of any of the Obligations is rescinded or must otherwise be restored or returned upon the bankruptcy, insolvency, or reorganization of the Borrower, or
otherwise, as though such payment had not been made or other satisfaction occurred. No invalidity, irregularity or unenforceability of the Obligations by reason of applicable bankruptcy laws or any other similar law, or by reason of any law or order
of any government or agency thereof purporting to reduce, amend or otherwise affect the Obligations, shall impair, affect, be a defense to or claim against the obligations of Guarantor under this Guaranty. 
 Section 9. Freedom of Lender to Deal with Borrower and Other Parties. The Administrative Agent and each Lender shall be at liberty, without
giving notice to or obtaining the assent of Guarantor and without relieving Guarantor of any liability hereunder, to deal with the Borrower and with each other party who now is or after the date hereof becomes liable in any manner for any of the
Obligations, in such manner as the Administrative Agent or such Lender in its sole discretion deems fit, and to this end the Guarantor gives to the Administrative Agent and each Lender full authority in its sole discretion to do any or all of the
following things: (a) extend credit, make loans and afford other financial accommodations to the Borrower at such times, in such amounts and on such terms as the Administrative Agent or such Lender may approve, (b) vary the terms and grant
extensions of any present or future indebtedness or obligation of the Borrower or of any other party to the Administrative Agent or such Lender, (c) grant time, waivers and other indulgences in respect thereto, (d) vary, exchange, release
or discharge, wholly or partially, or delay in or abstain from perfecting and enforcing any security or guaranty or other means of obtaining payment of any of the Obligations which the Administrative Agent or any Lender now has or may acquire after
the date hereof, (e) accept partial payments from the Borrower or any such other party, (f) release or discharge, wholly or partially, any endorser or guarantor, and (g) compromise or make any settlement or other arrangement with the
Borrower or any such other party. 
 Section 10. Unenforceability of Obligations Against Borrower; Invalidity of Security or Other
Guaranties. If for any reason the Borrower has no legal existence or is under no legal obligation to discharge any of the Obligations undertaken or purported to be undertaken by it or on its behalf, or if any of the moneys included in the
Obligations have become irrecoverable from the Borrower by operation of law or for any other reason, this Guaranty shall nevertheless be binding on the Guarantor to the same extent as if Guarantor at all times had been the principal debtor on all
such Obligations. This Guaranty shall be in addition to any other guaranty or other security for the Obligations, and it shall not be prejudiced or rendered unenforceable by the invalidity of any such other guaranty or security. 
  

 -4- 

			
	 Guaranty
	  	CRS Retail Systems, Inc.

  
 Section 11.
Waivers by Guarantor. (a) The Guarantor waives notice of acceptance hereof, notice of any action taken or omitted by the Administrative Agent or any Lender in reliance hereon, and any requirement that the Administrative Agent or any Lender
be diligent or prompt in making demands hereunder, giving notice of any default by the Borrower or asserting any other rights of the Administrative Agent or any Lender hereunder. The Guarantor also irrevocably waives, to the fullest extent permitted
by law, all defenses in the nature of suretyship that at any time may be available in respect of Guarantor’s obligations hereunder by virtue of any statute of limitations, valuation, stay, moratorium law or other similar law now or hereafter in
effect. 
 (b) Guarantor understands and acknowledges that if Administrative Agent forecloses, either by judicial foreclosure or by exercise
of power of sale, any deed of trust or mortgage securing the Obligations, that foreclosure could impair or destroy any ability Guarantor may have to seek reimbursement, contribution, or indemnification from Borrower or others based on any right
Guarantor may have of subrogation, reimbursement, contribution, or indemnification for any amounts paid by Guarantor under this Guaranty. Guarantor further understands and acknowledges that in the absence of this paragraph, such potential impairment
or destruction of Guarantor’s rights, if any, may entitle Guarantor to assert a defense to this Guaranty based on Section 580d of the California Code of Civil Procedure (“CCP”) as interpreted in Union Bank v.
Gradsky, 265 Cal. App. 2d. 40 (1968). By executing this Guaranty, Guarantor freely, irrevocably, and unconditionally: (i) waives and relinquishes that defense and agrees that Guarantor will be fully liable under this Guaranty even though
Administrative Agent may foreclose, either by judicial foreclosure or by exercise of power of sale, any deed of trust or mortgage securing the Obligations; (ii) agrees that Guarantor will not assert that defense in any action or proceeding
Administrative Agent may commence to enforce this Guaranty; (iii) acknowledges and agrees that the rights and defenses waived by Guarantor in this Guaranty include any right or defense Guarantor may have or be entitled to assert based upon or
arising out of any one or more of CCP §§ 580a, 580b, 580d, or 726 or Section 2848 of the California Civil Code (“CC”); and (iv) acknowledges and agrees that Administrative Agent is relying on this waiver in
creating the Obligations, and that this waiver is a material part of the consideration therefor. 
 (c) Guarantor waives any rights and
defenses that are or may become available to Guarantor under CC §§2787 to 2855, inclusive. Guarantor waives the benefit of any statute of limitations affecting its liability hereunder. 
 Section 12. Restriction on Subrogation and Contribution Rights. Notwithstanding any other provision to the contrary contained herein or
provided by applicable Law, unless and until all of the Obligations have been indefeasibly paid in full in cash and satisfied in full, the Guarantor hereby irrevocably defers and agrees not to enforce any and all rights it may have at any time
(whether arising directly or indirectly, 
  

 -5- 

			
	 Guaranty
	  	CRS Retail Systems, Inc.

  
 by operation of law or by contract) to
assert any claim against the Borrower on account of payments made under this Guaranty, including, without limitation, any and all rights of or claim for subrogation, contribution, reimbursement, exoneration and indemnity, and further waives any
benefit of and any right to participate in any collateral which may be held by the Administrative Agent or any Lender or any affiliate of the Administrative Agent or any Lender. In addition, the Guarantor will not claim any set-off or counterclaim
against the Borrower in respect of any liability it may have to the Borrower unless and until all of the Obligations have been indefeasibly paid in full in cash and satisfied in full. 
 Section 13. Notices; Demands. Any demand on or notice made or required to be given pursuant to this Guaranty shall be in writing and shall be
delivered in hand, mailed by United States registered or certified first class mail, postage prepaid, return receipt requested, sent by overnight courier, or sent by telegraph, telecopy, telefax or telex and confirmed by delivery via courier or
postal service, addressed as follows: 
 (a) if to the Guarantor, at 
 c/o Epicor Software Corporation 
 18200 Von
Karmann Avenue 
 Suite 1000 
 Irvine, California 92612 
 Attention: Michael Piraino, Executive Vice President 
 or at such other address for notice as the Guarantor shall last have furnished in writing to the Administrative Agent; 
 (b) if to the Administrative Agent, at 
 KeyBank National Association 
 601 108th Avenue NE 
 Bellevue, Washington 98004 
 Attention: Thomas A. Crandell, Senior Vice President, 
 with a copy to, 
 KeyBank National
Association 
 127 Public Square 
 MC OH-01-27-0847 
 Cleveland, Ohio 44114 
 Attention: Paula M. Brewer, Deal Administrator 
 or at such other address for notice as the Administrative
Agent shall last have furnished in writing to the Guarantor; and 
  

 -6- 

			
	 Guaranty
	  	CRS Retail Systems, Inc.

  
 (c) if to any Lender,
at such Lender’s address as set forth in Schedule 10.2 to the Credit Agreement or at such other address as such Lender shall direct. 
 Any such notice or demand shall be deemed to have been duly given or made and to have become effective on the terms set forth in Section 10.2 to the Credit Agreement. 
 Section 14. Amendments, Waivers, Etc. No provision of this Guaranty can be changed, waived, discharged or terminated except by an instrument
in writing signed by the Administrative Agent and the Guarantor expressly referring to the provision of this Guaranty to which such instrument relates; and no such waiver shall extend to, affect or impair any right with respect to any Obligation
which is not expressly dealt with therein. No course of dealing or delay or omission on the part of the Administrative Agent or the Lenders or any of them in exercising any right shall operate as a waiver thereof or otherwise be prejudicial thereto.

 Section 15. Further Assurances. The Guarantor shall, at its sole cost and expense, execute and deliver such further acts and
documents as the Administrative Agent from time to time may reasonably request in order to give full effect to this Guaranty and to perfect and preserve the rights and powers of the Administrative Agent and the Lenders hereunder. 
 Section 16. Governing Law. (a) THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF CALIFORNIA
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED THAT ADMINISTRATIVE AGENT AND EACH LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW. 
 (b) THE GUARANTOR AGREES THAT ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE
STATE OF CALIFORNIA OR OF THE UNITED STATES FOR THE CENTRAL DISTRICT OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS GUARANTY, GUARANTOR CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS.
GUARANTOR, ADMINISTRATIVE AGENT AND EACH LENDER IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR
PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS GUARANTY, ANY OTHER LOAN DOCUMENT OR OTHER DOCUMENT RELATED HERETO. GUARANTOR WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY
THE LAW OF SUCH STATE. 
  

 -7- 

			
	 Guaranty
	  	CRS Retail Systems, Inc.

  
 Section 17.
Miscellaneous Provisions. 
 (a) This Guaranty shall inure to the benefit of the Administrative Agent, each Lender and their respective
successors in title and assigns permitted under the Credit Agreement, and shall be binding on the Guarantor and the Guarantor’s successors in title, assigns and legal representatives. 
 (b) The rights and remedies herein provided are cumulative and not exclusive of any remedies provided by law or any other agreement. The invalidity or
unenforceability of any one or more sections of this Guaranty shall not affect the validity or enforceability of its remaining provisions. 
 (c) Captions are for ease of reference only and shall not affect the meaning of the relevant provisions. The meanings of all defined terms used in this Guaranty shall be equally applicable to the singular and plural forms of the terms
defined. 
 Section 17. WAIVER OF JURY TRIAL. GUARANTOR HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND,
ACTION OR CAUSE OF ACTION ARISING UNDER THIS GUARANTY AND ANY OTHER LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS
RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND GUARANTOR HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT
TRIAL WITHOUT A JURY, AND THAT ADMINISTRATIVE AGENT OR ANY LENDER MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE GUARNTOR TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY. 

[Remainder of Page Intentionally Left Blank] 
  

 -8- 

			
	 Guaranty
	  	CRS Retail Systems, Inc.

  
 IN
WITNESS WHEREOF, the Guarantor has executed and delivered this Guaranty as of the date first above written. 
  

			
	CRS RETAIL SYSTEMS INC.
		
	By:	 	 /s/ John D. Ireland

		
	Name:	 	 John D. Ireland

		
	Title:	 	 Vice President and General Counsel

 GUARANTY 
 Dated as of March 30, 2006 
 From

 CRS RETAIL TECHNOLOGY GROUP, INC., 
 as Guarantor, 
 to 
 KEYBANK NATIONAL ASSOCIATION, 
 as Administrative Agent, Sole Book Manager, 
 Lender and Issuing Lender 
 and 
 THE
VARIOUS FINANCIAL INSTITUTIONS PARTY HERETO, 
 as Lenders,

  

 GUARANTY 
 This GUARANTY (this “Guaranty”), dated as of March 30, 2006 by CRS RETAIL TECHNOLOGY
GROUP, INC., a Utah corporation (the “Guarantor”), in favor of each of the Lenders (as defined herein) and KEYBANK NATIONAL ASSOCIATION, as
administrative agent (in such capacity, the “Administrative Agent”) for itself and for the other financial institutions (collectively, the “Lenders”) which are or may become parties to the Credit Agreement dated as
of the date hereof (as may be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among EPICOR SOFTWARE CORPORATION, a Delaware corporation
(the “Borrower”), the Administrative Agent and the Lenders. Capitalized terms used herein without definition shall have the meanings ascribed to them in the Credit Agreement. 
 WITNESSETH: 
 WHEREAS, the Borrower, the Administrative
Agent, the Lenders and the other parties thereto have entered into the Credit Agreement; 
 WHEREAS, the Borrower and the
Guarantor are members of a group of related entities, the success of each of which is dependent in part on the success of the other members of such group; 
 WHEREAS, the Guarantor expects to receive substantial direct and indirect benefits from the Loans made by each Lender to the Borrower pursuant to the Credit Agreement (which benefits are hereby
acknowledged); 
 WHEREAS, a condition precedent to the obligation of the Lenders to make their respective extensions of
credit to the Borrower under the Credit Agreement is that the Guarantor shall execute and deliver a Guaranty for the benefit of the Administrative Agent and the Lenders; and 
 WHEREAS, Guarantor wishes to guaranty the Borrower’s obligations to the Lenders and the Administrative Agent under and in respect of
the Credit Agreement as herein provided. 
 NOW, THEREFORE, in consideration of the foregoing, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 Section 1. Guaranty of Payment and Performance of Obligations. In consideration of the Lenders’ extending credit or otherwise in their discretion giving time, financial or banking facilities or accommodations to the
Borrower, the Guarantor absolutely, irrevocably and unconditionally guarantees to the Administrative Agent and each Lender that the Borrower will duly and punctually pay or perform, at the place specified therefor, or if no place is specified, at
the Administrative Agent’s head office, (i) all indebtedness, obligations and liabilities of the Borrower to any of the Lenders and 

			
	 Guaranty
	  	CRS Retail Technology Group, Inc.

  
 the Administrative Agent, individually
or collectively, under the Credit Agreement or any of the other Loan Documents or in respect of any of the Loans or the Notes or other instruments at any time evidencing any thereof, whether existing on the date of the Credit Agreement or this
Guaranty or arising or incurred thereafter, direct or indirect, secured or unsecured, joint or several, absolute or contingent, matured or unmatured, liquidated or unliquidated, arising by contract, operation of law or otherwise, including all such
which would become due but for the operation of the automatic stay pursuant to §362(a) of the Federal Bankruptcy Code and the operation of §§502(b) and 506(b) of the Federal Bankruptcy Code; and (ii) without limitation of the
foregoing, all reasonable fees, costs and expenses incurred by the Administrative Agent and the Lenders in attempting to collect or enforce any of the foregoing (collectively the “Obligations” and individually an
“Obligation”). This Guaranty is an absolute, unconditional and continuing guaranty of the full and punctual payment and performance by the Borrower of the Obligations and not of their collectibility only and is in no way conditioned
upon any requirement that any Lender or the Administrative Agent first attempt to collect any of the Obligations from the Borrower or resort to any security or other means of obtaining payment of any of the Obligations which any Lender or the
Administrative Agent now has or may acquire after the date hereof or upon any other contingency whatsoever. Upon any Event of Default which is continuing by the Borrower in the full and punctual payment and performance of the Obligations, the
liabilities and obligations of the Guarantor hereunder shall, at the option of the Administrative Agent, become forthwith due and payable to the Administrative Agent and to the Lender or Lenders owed the same without demand or notice of any nature,
all of which are expressly waived by the Guarantor, except for notices required to be given to the Borrower under the Loan Documents. Payments by the Guarantor hereunder may be required by any Lender or the Administrative Agent on any number of
occasions. 
 Section 2. Guarantor’s Further Agreements to Pay. The Guarantor further agrees, as the principal obligor and
not as a guarantor only, to pay to each Lender and the Administrative Agent forthwith upon demand, in funds immediately available to such Lender or the Administrative Agent, all costs and expenses (including court costs and legal fees and expenses)
incurred or expended by the Administrative Agent or such Lender in connection with this Guaranty and the enforcement hereof, together with interest on amounts recoverable under this Guaranty from the time after such amounts become due at the default
rate of interest set forth in the Credit Agreement; provided that if such interest exceeds the maximum amount permitted to be paid under applicable law, then such interest shall be reduced to such maximum permitted amount. 
 Section 3. Payments. The Guarantor covenants and agrees that the Obligations will be paid in Dollars and otherwise strictly in accordance
with their respective terms regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Administrative Agent or any Lender with respect thereto. 
  

 -2- 

			
	 Guaranty
	  	CRS Retail Technology Group, Inc.

  
 Section 4.
Taxes. All payments hereunder shall be made without any counterclaim or set-off, free and clear of, and without reduction for, any Taxes or Other Taxes, which are now or may hereafter be imposed, levied or assessed by any Governmental Authority
on payments hereunder, all of which will be for the account of and paid by the Guarantor. If for any reason, any such reduction is made or any Taxes or Other Taxes are paid by the Administrative Agent or any Lender (except for taxes on income or
profits of such Administrative Agent or Lender), the Guarantor agrees to pay to the Administrative Agent or such Lender such additional amounts as may be necessary to ensure that the Administrative Agent or such Lender receives the same net amount
which it would have received had no reduction been made or Taxes or Other Taxes paid. 
 Section 5. [Intentionally
Reserved]. 
 Section 6. Liability of the Guarantor. The Administrative Agent and each Lender have and shall have the
absolute right to enforce the liability of the Guarantor hereunder without resort to any other right or remedy including any right or remedy under any other guaranty, and the release or discharge of any such other guarantor of any Obligations shall
not affect the continuing liability of the Guarantor hereunder that has not been released or discharged. 
 It is the intention and agreement
of the Guarantor, the Administrative Agent and the Lenders that the obligations of the Guarantor under this Guaranty shall be valid and enforceable against the Guarantor to the maximum extent permitted by applicable law. Accordingly, if any
provision of this Guaranty creating any obligation of the Guarantor in favor of the Administrative Agent and the Lenders shall be declared to be invalid or unenforceable in any respect or to any extent, it is the stated intention and agreement of
the Guarantor, the Administrative Agent and the Lenders that any balance of the obligation created by such provision and all other obligations of the Guarantor to the Administrative Agent and the Lenders created by other provisions of this Guaranty
shall remain valid and enforceable. Likewise, if by final order a court of competent jurisdiction shall declare any sums which the Administrative Agent or the Lenders may be otherwise entitled to collect from Guarantor under any other guaranty to be
in excess of those permitted under any law (including any federal or state fraudulent conveyance or like statute or rule of law), it is the stated intention and agreement of the Guarantor, the Administrative Agent and the Lenders that all sums not
in excess of those permitted under such applicable law shall remain fully collectible by the Administrative Agent and the Lenders from the Guarantor. 
 Section 7. Representations and Warranties; Covenants. The Guarantor hereby makes and confirms the representations and warranties made on its behalf by the Borrower pursuant to Section V of the Credit
Agreement, as if such representations and warranties were set forth herein. The Guarantor hereby agrees to perform the covenants set forth in Section VI and Section VII of the Credit Agreement (to the extent such covenants expressly apply to
Guarantor) as if such covenants were set forth herein. The Guarantor acknowledges that it is, on a collective basis with the Borrower, bound by the financial covenants and other covenants set forth in the Credit Agreement. The Guarantor hereby
confirms that it shall be bound by all acts or omissions of the Borrower pursuant to the Credit Agreement. 
  

 -3- 

			
	 Guaranty
	  	CRS Retail Technology Group, Inc.

  
 Section 8.
Effectiveness. The obligations of the Guarantor under this Guaranty shall continue in full force and effect and shall remain in operation until all of the Obligations shall have been paid in full or otherwise fully satisfied, and continue to be
effective or be reinstated, as the case may be, if at any time payment or other satisfaction of any of the Obligations is rescinded or must otherwise be restored or returned upon the bankruptcy, insolvency, or reorganization of the Borrower, or
otherwise, as though such payment had not been made or other satisfaction occurred. No invalidity, irregularity or unenforceability of the Obligations by reason of applicable bankruptcy laws or any other similar law, or by reason of any law or order
of any government or agency thereof purporting to reduce, amend or otherwise affect the Obligations, shall impair, affect, be a defense to or claim against the obligations of Guarantor under this Guaranty. 
 Section 9. Freedom of Lender to Deal with Borrower and Other Parties. The Administrative Agent and each Lender shall be at liberty, without
giving notice to or obtaining the assent of Guarantor and without relieving Guarantor of any liability hereunder, to deal with the Borrower and with each other party who now is or after the date hereof becomes liable in any manner for any of the
Obligations, in such manner as the Administrative Agent or such Lender in its sole discretion deems fit, and to this end the Guarantor gives to the Administrative Agent and each Lender full authority in its sole discretion to do any or all of the
following things: (a) extend credit, make loans and afford other financial accommodations to the Borrower at such times, in such amounts and on such terms as the Administrative Agent or such Lender may approve, (b) vary the terms and grant
extensions of any present or future indebtedness or obligation of the Borrower or of any other party to the Administrative Agent or such Lender, (c) grant time, waivers and other indulgences in respect thereto, (d) vary, exchange, release
or discharge, wholly or partially, or delay in or abstain from perfecting and enforcing any security or guaranty or other means of obtaining payment of any of the Obligations which the Administrative Agent or any Lender now has or may acquire after
the date hereof, (e) accept partial payments from the Borrower or any such other party, (f) release or discharge, wholly or partially, any endorser or guarantor, and (g) compromise or make any settlement or other arrangement with the
Borrower or any such other party. 
 Section 10. Unenforceability of Obligations Against Borrower; Invalidity of Security or Other
Guaranties. If for any reason the Borrower has no legal existence or is under no legal obligation to discharge any of the Obligations undertaken or purported to be undertaken by it or on its behalf, or if any of the moneys included in the
Obligations have become irrecoverable from the Borrower by operation of law or for any other reason, this Guaranty shall nevertheless be binding on the Guarantor to the same extent as if Guarantor at all times had been the principal debtor on all
such Obligations. This Guaranty shall be in addition to any other guaranty or other security for the Obligations, and it shall not be prejudiced or rendered unenforceable by the invalidity of any such other guaranty or security. 
  

 -4- 

			
	 Guaranty
	  	CRS Retail Technology Group, Inc.

  
 Section 11.
Waivers by Guarantor. (a) The Guarantor waives notice of acceptance hereof, notice of any action taken or omitted by the Administrative Agent or any Lender in reliance hereon, and any requirement that the Administrative Agent or any Lender
be diligent or prompt in making demands hereunder, giving notice of any default by the Borrower or asserting any other rights of the Administrative Agent or any Lender hereunder. The Guarantor also irrevocably waives, to the fullest extent permitted
by law, all defenses in the nature of suretyship that at any time may be available in respect of Guarantor’s obligations hereunder by virtue of any statute of limitations, valuation, stay, moratorium law or other similar law now or hereafter in
effect. 
 (b) Guarantor understands and acknowledges that if Administrative Agent forecloses, either by judicial foreclosure or by exercise
of power of sale, any deed of trust or mortgage securing the Obligations, that foreclosure could impair or destroy any ability Guarantor may have to seek reimbursement, contribution, or indemnification from Borrower or others based on any right
Guarantor may have of subrogation, reimbursement, contribution, or indemnification for any amounts paid by Guarantor under this Guaranty. Guarantor further understands and acknowledges that in the absence of this paragraph, such potential impairment
or destruction of Guarantor’s rights, if any, may entitle Guarantor to assert a defense to this Guaranty based on Section 580d of the California Code of Civil Procedure (“CCP”) as interpreted in Union Bank v.
Gradsky, 265 Cal. App. 2d. 40 (1968). By executing this Guaranty, Guarantor freely, irrevocably, and unconditionally: (i) waives and relinquishes that defense and agrees that Guarantor will be fully liable under this Guaranty even though
Administrative Agent may foreclose, either by judicial foreclosure or by exercise of power of sale, any deed of trust or mortgage securing the Obligations; (ii) agrees that Guarantor will not assert that defense in any action or proceeding
Administrative Agent may commence to enforce this Guaranty; (iii) acknowledges and agrees that the rights and defenses waived by Guarantor in this Guaranty include any right or defense Guarantor may have or be entitled to assert based upon or
arising out of any one or more of CCP §§ 580a, 580b, 580d, or 726 or Section 2848 of the California Civil Code (“CC”); and (iv) acknowledges and agrees that Administrative Agent is relying on this waiver in
creating the Obligations, and that this waiver is a material part of the consideration therefor. 
 (c) Guarantor waives any rights and
defenses that are or may become available to Guarantor under CC §§2787 to 2855, inclusive. Guarantor waives the benefit of any statute of limitations affecting its liability hereunder. 
 Section 12. Restriction on Subrogation and Contribution Rights. Notwithstanding any other provision to the contrary contained herein or
provided by applicable Law, unless and until all of the Obligations have been indefeasibly paid in full in cash and satisfied in full, the Guarantor hereby irrevocably defers and agrees not to enforce any and all rights it may have at any time
(whether arising directly or indirectly, 
  

 -5- 

			
	 Guaranty
	  	CRS Retail Technology Group, Inc.

  
 by operation of law or by contract) to
assert any claim against the Borrower on account of payments made under this Guaranty, including, without limitation, any and all rights of or claim for subrogation, contribution, reimbursement, exoneration and indemnity, and further waives any
benefit of and any right to participate in any collateral which may be held by the Administrative Agent or any Lender or any affiliate of the Administrative Agent or any Lender. In addition, the Guarantor will not claim any set-off or counterclaim
against the Borrower in respect of any liability it may have to the Borrower unless and until all of the Obligations have been indefeasibly paid in full in cash and satisfied in full. 
 Section 13. Notices; Demands. Any demand on or notice made or required to be given pursuant to this Guaranty shall be in writing and shall be
delivered in hand, mailed by United States registered or certified first class mail, postage prepaid, return receipt requested, sent by overnight courier, or sent by telegraph, telecopy, telefax or telex and confirmed by delivery via courier or
postal service, addressed as follows: 
 (a) if to the Guarantor, at 
 c/o Epicor Software Corporation 
 18200 Von
Karmann Avenue 
 Suite 1000 
 Irvine, California 92612 
 Attention: Michael Piraino, Executive Vice President 
 or at such other address for notice as the Guarantor shall last have furnished in writing to the Administrative Agent; 
 (b) if to the Administrative Agent, at 
 KeyBank National Association 
 601 108th Avenue NE 
 Bellevue, Washington 98004 
 Attention: Thomas A. Crandell, Senior Vice President, 
 with a copy to, 
 KeyBank National
Association 
 127 Public Square 
 MC OH-01-27-0847 
 Cleveland, Ohio 44114 
 Attention: Paula M. Brewer, Deal Administrator 
 or at such other address for notice as the Administrative
Agent shall last have furnished in writing to the Guarantor; and 
  

 -6- 

			
	 Guaranty
	  	CRS Retail Technology Group, Inc.

  
 (c) if to any Lender,
at such Lender’s address as set forth in Schedule 10.2 to the Credit Agreement or at such other address as such Lender shall direct. 
 Any such notice or demand shall be deemed to have been duly given or made and to have become effective on the terms set forth in Section 10.2 to the Credit Agreement. 
 Section 14. Amendments, Waivers, Etc. No provision of this Guaranty can be changed, waived, discharged or terminated except by an instrument
in writing signed by the Administrative Agent and the Guarantor expressly referring to the provision of this Guaranty to which such instrument relates; and no such waiver shall extend to, affect or impair any right with respect to any Obligation
which is not expressly dealt with therein. No course of dealing or delay or omission on the part of the Administrative Agent or the Lenders or any of them in exercising any right shall operate as a waiver thereof or otherwise be prejudicial thereto.

 Section 15. Further Assurances. The Guarantor shall, at its sole cost and expense, execute and deliver such further acts and
documents as the Administrative Agent from time to time may reasonably request in order to give full effect to this Guaranty and to perfect and preserve the rights and powers of the Administrative Agent and the Lenders hereunder. 
 Section 16. Governing Law. (a) THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF CALIFORNIA
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED THAT ADMINISTRATIVE AGENT AND EACH LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW. 
 (b) THE GUARANTOR AGREES THAT ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE
STATE OF CALIFORNIA OR OF THE UNITED STATES FOR THE CENTRAL DISTRICT OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS GUARANTY, GUARANTOR CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS.
GUARANTOR, ADMINISTRATIVE AGENT AND EACH LENDER IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR
PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS GUARANTY, ANY OTHER LOAN DOCUMENT OR OTHER DOCUMENT RELATED HERETO. GUARANTOR WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY
THE LAW OF SUCH STATE. 
  

 -7- 

			
	 Guaranty
	  	CRS Retail Technology Group, Inc.

  
 Section 17.
Miscellaneous Provisions. 
 (a) This Guaranty shall inure to the benefit of the Administrative Agent, each Lender and their respective
successors in title and assigns permitted under the Credit Agreement, and shall be binding on the Guarantor and the Guarantor’s successors in title, assigns and legal representatives. 
 (b) The rights and remedies herein provided are cumulative and not exclusive of any remedies provided by law or any other agreement. The invalidity or
unenforceability of any one or more sections of this Guaranty shall not affect the validity or enforceability of its remaining provisions. 
 (c) Captions are for ease of reference only and shall not affect the meaning of the relevant provisions. The meanings of all defined terms used in this Guaranty shall be equally applicable to the singular and plural forms of the terms
defined. 
 Section 17. WAIVER OF JURY TRIAL. GUARANTOR HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND,
ACTION OR CAUSE OF ACTION ARISING UNDER THIS GUARANTY AND ANY OTHER LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS
RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND GUARANTOR HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT
TRIAL WITHOUT A JURY, AND THAT ADMINISTRATIVE AGENT OR ANY LENDER MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE GUARNTOR TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY. 

[Remainder of Page Intentionally Left Blank] 
  

 -8- 

			
	 Guaranty
	  	CRS Retail Technology Group, Inc.

  
 IN
WITNESS WHEREOF, the Guarantor has executed and delivered this Guaranty as of the date first above written. 
  

			
	CRS RETAIL TECHNOLOGY GROUP, INC.
		
	By:	 	 /s/ John D. Ireland

		
	Name:	 	 John D. Ireland

		
	Title:	 	 Vice President and General CounselCommon Stock Purchase Agreement

 Exhibit 10.1 
 COMMON STOCK PURCHASE AGREEMENT 
 Dated May 10, 2006 
 by and between 
 NANOGEN, INC.

 and 
 AZIMUTH
OPPORTUNITY LTD. 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 Article I PURCHASE AND SALE OF COMMON STOCK
	  	1
	 Section 1.1
	  	 Purchase and Sale of Stock
	  	1
	 Section 1.2
	  	 Effective Date; Settlement Dates
	  	1
	 Section 1.3
	  	 The Shares
	  	2
	 Section 1.4
	  	 Current Report; Prospectus Supplement
	  	2
		
	 Article II FIXED REQUEST TERMS; OPTIONAL AMOUNT
	  	2
	 Section 2.1
	  	 Fixed Request Notice
	  	2
	 Section 2.2
	  	 Fixed Requests
	  	3
	 Section 2.3
	  	 Share Calculation
	  	3
	 Section 2.4
	  	 Limitation of Fixed Requests
	  	4
	 Section 2.5
	  	 Reduction of Commitment
	  	4
	 Section 2.6
	  	 Below Threshold Price
	  	4
	 Section 2.7
	  	 Settlement
	  	5
	 Section 2.8
	  	 Reduction of Pricing Period
	  	5
	 Section 2.9
	  	 Optional Amount
	  	6
	 Section 2.10
	  	 Calculation of Optional Amount Shares
	  	6
	 Section 2.11
	  	 Exercise of Optional Amount
	  	6
	 Section 2.12
	  	 Aggregate Limit
	  	7
		
	 Article III REPRESENTATIONS AND WARRANTIES OF THE INVESTOR
	  	7
	 Section 3.1
	  	 Organization and Standing of the Investor
	  	7
	 Section 3.2
	  	 Authorization and Power
	  	7
	 Section 3.3
	  	 No Conflicts
	  	8
	 Section 3.4
	  	 Information
	  	8
	 Section 3.5
	  	 Investor Information
	  	8
	 Section 3.6
	  	 Free Writing Prospectus
	  	8
		
	 Article IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	  	9
	 Section 4.1
	  	 Organization, Good Standing and Power
	  	9
	 Section 4.2
	  	 Authorization, Enforcement
	  	9
	 Section 4.3
	  	 Capitalization
	  	9
	 Section 4.4
	  	 Issuance of Shares
	  	10
	 Section 4.5
	  	 No Conflicts
	  	10
	 Section 4.6
	  	 Commission Documents, Financial Statements
	  	10
	 Section 4.7
	  	 Subsidiaries
	  	12
	 Section 4.8
	  	 No Material Adverse Effect
	  	12
	 Section 4.9
	  	 Indebtedness
	  	12
	 Section 4.10
	  	 Title To Assets
	  	12
	 Section 4.11
	  	 Actions Pending
	  	12
	 Section 4.12
	  	 Compliance With Law
	  	13

  

 i 

					
	 Section 4.13
	  	 Certain Fees
	  	13
	 Section 4.14
	  	 Operation of Business
	  	13
	 Section 4.15
	  	 Environmental Compliance
	  	15
	 Section 4.16
	  	 Material Agreements
	  	15
	 Section 4.17
	  	 Transactions With Affiliates
	  	16
	 Section 4.18
	  	 Securities Act
	  	16
	 Section 4.19
	  	 Employees
	  	17
	 Section 4.20
	  	 Use of Proceeds
	  	17
	 Section 4.21
	  	 Public Utility Holding Company Act and Investment Company Act Status
	  	17
	 Section 4.22
	  	 ERISA
	  	17
	 Section 4.23
	  	 Taxes
	  	18
	 Section 4.24
	  	 Insurance
	  	18
	 Section 4.25
	  	 Acknowledgement Regarding Investor’s Purchase of Shares
	  	18
		
	 Article V COVENANTS
	  	18
	 Section 5.1
	  	 Securities Compliance
	  	18
	 Section 5.2
	  	 Registration and Listing
	  	19
	 Section 5.3
	  	 Compliance with Laws.
	  	19
	 Section 5.4
	  	 Keeping of Records and Books of Account; Foreign Corrupt Practices Act
	  	19
	 Section 5.5
	  	 Limitations on Holdings and Issuances
	  	20
	 Section 5.6
	  	 Other Agreements and Other Financings.
	  	20
	 Section 5.7
	  	 Stop Orders
	  	21
	 Section 5.8
	  	 Amendments to the Registration Statement; Prospectus Supplements
	  	22
	 Section 5.9
	  	 Prospectus Delivery
	  	22
	 Section 5.10
	  	 Selling Restrictions.
	  	22
	 Section 5.11
	  	 Effective Registration Statement
	  	23
	 Section 5.12
	  	 Non-Public Information
	  	23
	 Section 5.13
	  	 Broker/Dealer
	  	23
	 Section 5.14
	  	 Update of Disclosure Schedule
	  	24
		
	 Article VI OPINION OF COUNSEL AND CERTIFICATE; CONDITIONS TO THE SALE AND PURCHASE OF THE SHARES
	  	24
	 Section 6.1
	  	 Opinion of Counsel and Certificate
	  	24
	 Section 6.2
	  	 Conditions Precedent to the Obligation of the Company
	  	24
	 Section 6.3
	  	 Conditions Precedent to the Obligation of the Investor
	  	25
		
	 Article VII TERMINATION
	  	27
	 Section 7.1
	  	 Term, Termination by Mutual Consent
	  	27
	 Section 7.2
	  	 Other Termination
	  	28
	 Section 7.3
	  	 Effect of Termination
	  	28
		
	 Article VIII INDEMNIFICATION
	  	28
	 Section 8.1
	  	 General Indemnity.
	  	28
	 Section 8.2
	  	 Indemnification Procedures
	  	30
		
	 Article IX MISCELLANEOUS
	  	31
	 Section 9.1
	  	 Fees and Expenses.
	  	31

  

 ii 

					
	 Section 9.2
	  	 Specific Enforcement, Consent to Jurisdiction, Waiver of Jury Trial
	  	32
	 Section 9.3
	  	 Entire Agreement; Amendment
	  	32
	 Section 9.4
	  	 Notices
	  	32
	 Section 9.5
	  	 Waivers
	  	33
	 Section 9.6
	  	 Headings
	  	34
	 Section 9.7
	  	 Successors and Assigns
	  	34
	 Section 9.8
	  	 Governing Law
	  	34
	 Section 9.9
	  	 Survival
	  	34
	 Section 9.10
	  	 Counterparts
	  	34
	 Section 9.11
	  	 Publicity
	  	34
	 Section 9.12
	  	 Severability
	  	34
	 Section 9.13
	  	 Further Assurances
	  	34

  

	Annex	A. Definitions 

  

 iii 

 COMMON STOCK PURCHASE AGREEMENT 
 This COMMON STOCK PURCHASE AGREEMENT, made and entered into on this 10th day of May 2006 (this “Agreement”), by and between
Azimuth Opportunity Ltd., an international business company incorporated under the laws of the British Virgin Islands (the “Investor”), and Nanogen, Inc., a corporation organized and existing under the laws of the State of Delaware
(the “Company”). 
 RECITALS 
 WHEREAS, the parties desire that, upon the terms and subject to the conditions contained herein, the Company may issue and sell to the Investor and the Investor shall thereupon purchase from the Company up to
$25,000,000 worth of newly issued shares of the Company’s common stock, $.001 par value (“Common Stock”), subject, in all cases, to the Trading Market Limit; 
 WHEREAS, the offer and sale of the shares of Common Stock hereunder have been registered by the Company in the Registration Statement, which has
been declared effective by order of the Commission under the Securities Act; 
 NOW, THEREFORE, the parties hereto, intending to be
legally bound, hereby agree as follows: 
 ARTICLE I 
 PURCHASE AND SALE OF COMMON STOCK 
 Section 1.1 Purchase and Sale of Stock. Upon
the terms and subject to the conditions of this Agreement, during the Investment Period the Company in its discretion may issue and sell to the Investor up to the lesser of (i) $25,000,000 (the “Total Commitment”) worth of duly
authorized, validly issued, fully paid and non-assessable shares of Common Stock and (ii) such number of shares of Common Stock not to exceed the Trading Market Limit (the “Aggregate Limit”), by (a) the delivery to the
Investor of not more than 24 separate Fixed Request Notices (unless the Investor and the Company mutually agree that a different number of Fixed Request Notices may be delivered) as provided in Article II hereof and (b) the exercise by the
Investor of Optional Amounts, which the Company may in its discretion grant to the Investor and which may be exercised by the Investor, in whole or in part, as provided in Article II hereof. The aggregate of all Fixed Request Amounts and Optional
Amount Dollar Amounts shall not exceed the Aggregate Limit. 
 Section 1.2 Effective Date; Settlement Dates. This
Agreement shall become effective and binding upon delivery (by facsimile transmission) of counterpart signature pages of this Agreement executed by each of the parties hereto, and by delivery of an opinion of counsel and a certificate of the Company
as provided in Section 6.1 hereof, to the offices of Greenberg Traurig, LLP, 200 Park Avenue, New York, New York 10166, at l0:00 a.m., New York time, on the Effective Date. In consideration of and in express reliance upon the representations,
warranties and covenants, and otherwise upon the terms and subject to the conditions, of this Agreement, from and after the Effective Date and during the Investment Period (i) the Company shall issue and sell to the Investor, and the Investor
agrees to purchase from the Company, the 

 Shares in respect of each Fixed Request and (ii) the Investor may in its discretion elect to purchase Shares in
respect of each Optional Amount. The issuance and sale of Shares to the Investor pursuant to any Fixed Request or Optional Amount shall occur on the applicable Settlement Date in accordance with Sections 2.7 and 2.9 (or on such Trading Day in
accordance with Section 2.8, as applicable), provided in each case that all of the conditions precedent thereto set forth in Article VI theretofore shall have been fulfilled or (to the extent permitted by applicable law) waived. 
 Section 1.3 The Shares. The Company has duly authorized and reserved for issuance, and covenants to continue to reserve for issuance,
free of all preemptive and other similar rights, at all times during the Investment Period, the requisite aggregate number of authorized but unissued shares of its Common Stock to timely effect the issuance, sale and delivery in full to the Investor
of all Shares to be issued in respect of all Fixed Requests and Optional Amounts under this Agreement. 
 Section 1.4 Current
Report; Prospectus Supplement. Within four business days after the Effective Date, the Company shall file with the Commission a report on Form 8-K relating to the transactions contemplated by, and describing the material terms and conditions
of, this Agreement and, to the extent not included in a Prospectus Supplement, disclosing all information relating to the transactions contemplated hereby required to be disclosed in the Registration Statement and the Base Prospectus (but which
permissibly has been omitted therefrom in accordance with the Securities Act), including, without limitation, information required to be disclosed in the section captioned “Plan of Distribution” in the Base Prospectus (the “Current
Report”). The Current Report may include a copy of this Agreement as an exhibit. To the extent applicable, the Current Report shall be incorporated by reference in the Registration Statement in accordance with the provisions of Rule 430B
under the Securities Act. Prior to filing the Current Report with the Commission, the Company shall provide the Investor a reasonable opportunity to comment on a draft of such Current Report and shall give due consideration to such comments.

 Pursuant to Section 5.9 and subject to the provisions of Section 5.8, on the first Trading Day immediately following the end of
each Pricing Period, the Company shall file with the Commission a Prospectus Supplement disclosing the number of Shares to be issued and sold to the Investor thereunder, the total purchase price therefor and the net proceeds to be received by the
Company therefrom and, to the extent required by the Securities Act, identifying the Current Report. 
 ARTICLE II 
 FIXED REQUEST TERMS; OPTIONAL AMOUNT 
 Subject to the satisfaction of the conditions set forth in this Agreement, the parties agree (unless otherwise mutually agreed upon by the parties in writing) as follows: 
 Section 2.1 Fixed Request Notice. Upon three Trading Days’ prior notice to the Investor, the Company shall, from time to time in
its sole discretion, provide a notice to the Investor of a Fixed Request before 9:30 a.m. (New York time) on the first Trading Day of the Pricing Period (the “Fixed Request Notice”), substantially in the form attached hereto as
Exhibit  
  

 2 

 A. The Fixed Request Notice shall specify the Fixed Amount Requested, establish the Threshold Price for such Fixed
Request, designate the first Trading Day of the Pricing Period and specify the Optional Amount, if any, that the Company elects to grant to the Investor during the Pricing Period and the applicable Threshold Price for such Optional Amount (the
“Optional Amount Threshold Price”). Upon the terms and subject to the conditions of this Agreement, the Investor is obligated to accept each Fixed Request Notice prepared and delivered in accordance with the provisions of this
Agreement. 
 Section 2.2 Fixed Requests. From time to time during the Investment Period, the Company may in its sole
discretion deliver to the Investor a Fixed Request Notice for a specified Fixed Amount Requested, and the applicable discount price (the “Discount Price”) shall be determined, in accordance with the price and share amount parameters
as set forth below or such other parameters mutually agreed upon by the Investor and the Company, and upon the terms and subject to the conditions of this Agreement, the Investor shall purchase from the Company the Shares subject to such Fixed
Request Notice; provided, however, that the Company may not deliver any single Fixed Request Notice for a Fixed Amount Requested in excess of 2.5% of the Market Capitalization: 
  

					
	 Threshold Price
	    	 Fixed Amount Requested
	    	 Discount Price

			
	 Equal to or greater than $10.00
	    	 Not to exceed $9,000,000
	    	 96.125% of the VWAP

			
	 Equal to or greater than $9.00 and less than $10.00
	    	
 Not to exceed $8,000,000
	    	
 95.875% of the VWAP

			
	 Equal to or greater than $8.00 and less than $9.00
	    	
 Not to exceed $7,000,000
	    	
 95.625% of the VWAP

			
	 Equal to or greater than $7.00 and less than $8.00
	    	
 Not to exceed $6,000,000
	    	
 95.375% of the VWAP

			
	 Equal to or greater than $6.00 and less than $7.00
	    	
 Not to exceed $5,000,000
	    	
 95.125% of the VWAP

			
	 Equal to or greater than $5.00 and less than $6.00
	    	
 Not to exceed $4,000,000
	    	
 94.875% of the VWAP

			
	 Equal to or greater than $4.00 and less than $5.00
	    	
 Not to exceed $3,250,000
	    	
 94.625% of the VWAP

			
	 Equal to or greater than $3.00 and less than $4.00
	    	
 Not to exceed $2,500,000
	    	
 94.375% of the VWAP

			
	 Equal to or greater than $2.50 and less than $3.00
	    	
 Not to exceed $1,750,000
	    	
 94.125% of the VWAP

			
	 Equal to or greater than $2.00 and less than $2.50
	    	
 Not to exceed $1,250,000
	    	
 94.125% of the VWAP

			
	 Equal to or greater than $1.50 and less than $2.00
	    	
 Not to exceed $500,000
	    	
 94.125% of the VWAP

 Anything to the contrary in this Agreement notwithstanding, at no time shall the Investor be
required to purchase more than $9,000,000 worth of Common Stock in respect of any Pricing Period (not including Common Stock subject to any Optional Amount). The date on which the Company delivers any Fixed Request Notice in accordance with this
Section 2.2 hereinafter shall be referred to as a “Fixed Request Exercise Date”. 
 Section 2.3 Share
Calculation. Subject to Section 2.6, the number of Shares to be issued by the Company to the Investor pursuant to a Fixed Request shall equal the aggregate sum of each quotient (calculated for each Trading Day during the applicable
Pricing Period for which 
  

 3 

 the VWAP equals or exceeds the Threshold Price) determined pursuant to the following equation (rounded to the nearest
whole Share): 
 N = (A x B)/C, where: 
 N = the number of Shares
to be issued by the Company to the Investor in respect of a Trading Day during the applicable Pricing Period for which the VWAP equals or exceeds the Threshold Price, 
 A = 0.10 (the “Multiplier”); provided, however, that if the number of Trading Days constituting a Pricing Period is decreased as set forth in Section 2.8 hereof, then the Multiplier
correspondingly shall be increased to equal the decimal equivalent (in 10-millionths) of a fraction, the numerator of which is one and the denominator of which equals the number of Trading Days in the Pricing Period as so decreased, 
 B = the Fixed Amount Requested, and 
 C = the applicable Discount Price.

 Section 2.4 Limitation of Fixed Requests. The Company shall not make more than one Fixed Request in each Pricing
Period. Not less than five Trading Days shall elapse between the end of one Pricing Period and the commencement of any other Pricing Period during the Investment Period unless otherwise mutually agreed upon between the Investor and the Company.
There shall be permitted a maximum of 24 Fixed Requests during the Investment Period. Each Fixed Request automatically shall expire immediately following the last Trading Day of each Pricing Period. 
 Section 2.5 Reduction of Commitment. On the last Trading Day of each Pricing Period, the Investor’s Total Commitment under this
Agreement automatically (and without the need for any amendment to this Agreement) shall be reduced, on a dollar-for-dollar basis, by the total amount of the Fixed Request Amount and the Optional Amount Dollar Amount, if any, for such Pricing
Period. 
 Section 2.6 Below Threshold Price. If the VWAP on any Trading Day in a Pricing Period is lower than the
Threshold Price, then for each such Trading Day the total amount of the Fixed Amount Requested for such Pricing Period shall be reduced, on a dollar-for-dollar basis, by an amount equal to the product of (x) the Multiplier and (y) the
original Fixed Amount Requested, and no Shares shall be purchased or sold with respect to such Trading Day, except as provided below. If trading in the Common Stock on NASDAQ (or any national securities exchange on which the Common Stock is then
listed) is suspended for any reason for more than three hours on any Trading Day, the Investor may at its option deem the price of the Common Stock to be lower than the Threshold Price for such Trading Day and, for each such Trading Day, the total
amount of the Fixed Amount Requested shall be reduced as provided in the immediately preceding sentence, and no Shares shall be purchased or sold with respect to such Trading Day, except as provided below. For each Trading Day during a Pricing
Period on which the VWAP is (or is deemed to be) lower than the Threshold Price, the Investor may in its sole discretion elect to purchase such U.S. dollar amount of Shares equal to the amount by which the Fixed Amount Requested has been reduced in
accordance with this Section 2.6, at the Threshold 
  

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 Price multiplied by the applicable percentage determined in accordance with the price and share amount parameters set
forth in Section 2.2. The Investor shall inform the Company via facsimile transmission not later than 8:00 p.m. (New York time) on the last Trading Day of such Pricing Period as to the number of Shares, if any, the Investor elects to purchase
as provided in this Section 2.6. 
 Section 2.7 Settlement. The payment for, against simultaneous delivery of, Shares
in respect of each Fixed Request shall be settled on the second Trading Day next following the last Trading Day of each Pricing Period (the “Settlement Date”). On each Settlement Date, the Company shall deliver the Shares purchased
by the Investor to the Investor or its designees via DTC’s Deposit Withdrawal Agent Commission (DWAC) system, against simultaneous payment therefor to the Company’s designated account by wire transfer of immediately available funds,
provided that if the Shares are received by the Investor later than 1:00 p.m. (New York time), payment therefor shall be made with next day funds. A failure by the Company to deliver such Shares shall result in the payment of liquidated damages by
the Company to the Investor pursuant to Section 9.1(ii) of this Agreement. 
 Section 2.8 Reduction of Pricing
Period. If during a Pricing Period the Company elects to reduce the number of Trading Days in such Pricing Period (and thereby amend its previously delivered Fixed Request Notice), the Company shall so notify the Investor before 9:00 a.m.
(New York time) on any Trading Day during a Pricing Period (a “Reduction Notice”) and the last Trading Day of such Pricing Period shall be the Trading Day immediately preceding the Trading Day on which the Investor received such
Reduction Notice; provided, however, that if the Company delivers the Reduction Notice later than 9:00 a.m. (New York time) on a Trading Day during a Pricing Period, then the last Trading Day of such Pricing Period instead shall be the
Trading Day on which the Investor received such Reduction Notice. 
 Upon receipt of a Reduction Notice, the Investor (i) shall purchase
the Shares in respect of each Trading Day in such reduced Pricing Period for which the VWAP equals or exceeds the Threshold Price in accordance with Section 2.3 hereof; (ii) may elect to purchase the Shares in respect of any Trading Day in
such reduced Pricing Period for which the VWAP is (or is deemed to be) lower than the Threshold Price in accordance with Section 2.6 hereof; and (iii) may elect to exercise all or any portion of an Optional Amount on any Trading Day during
such reduced Pricing Period in accordance with Sections 2.10 and 2.11 hereof. 
 In addition, upon receipt of a Reduction Notice, the
Investor may elect to purchase such U.S. dollar amount of additional Shares equal to the quotient determined pursuant to the following equation: 
 D = A x
1/B x (B – C), where: 
 D = the U.S. dollar amount of additional Shares to be purchased, 
 A = the Fixed Amount Requested, 
 B = 10 or, for purposes of this Section 2.8, such lesser number of Trading Days as
the parties may mutually agree to, and 
  

 5 

 C = the number of Trading Days in the reduced Pricing Period, 
 at a per Share price equal to (x) the Fixed Amount Requested in the reduced Pricing Period divided by (y) the number of Shares to be purchased during such
reduced Pricing Period pursuant to clause (i) of the immediately preceding paragraph. 
 The Investor may also elect to exercise any
portion of the applicable Optional Amount which was unexercised during the reduced Pricing Period by issuing an Optional Amount Notice to the Company not later than 10:00 a.m. (New York time) on the first Trading Day next following the last Trading
Day of the reduced Pricing Period. The number of Shares to be issued upon exercise of such Optional Amount shall be calculated pursuant to the equation set forth in Section 2.10 hereof, except that “C” shall equal the greater of
(i) the VWAP for the Common Stock on the last Trading Day of the reduced Pricing Period or (ii) the Optional Amount Threshold Price. 
 The payment for, against simultaneous delivery of, Shares to be purchased and sold in accordance with this Section 2.8 shall be settled on the second Trading Day next following the Trading Day on which the Investor receives a Reduction
Notice. 
 Section 2.9 Optional Amount. With respect to any Pricing Period, the Company may in its sole discretion grant
to the Investor the right to exercise, from time to time during the Pricing Period (but not more than once on any Trading Day), all or any portion of an Optional Amount. The maximum Optional Amount Dollar Amount and the Optional Amount Threshold
Price shall be set forth in the Fixed Request Notice. Each daily Optional Amount exercise shall be aggregated during the Pricing Period and settled on the next Settlement Date. The Optional Amount Threshold Price designated by the Company in its
Fixed Request Notice shall apply to each Optional Amount during the applicable Pricing Period. 
 Section 2.10 Calculation of
Optional Amount Shares. The number of shares of Common Stock to be issued in connection with the exercise of an Optional Amount shall be the quotient determined pursuant to the following equation (rounded to the nearest whole Share):

 O = A/(B x C), where: 
 O = the number of shares of Common
Stock to be issued in connection with such Optional Amount exercise, 
 A = the Optional Amount Dollar Amount with respect to which the Investor has
delivered an Optional Amount Notice, 
 B = the applicable percentage determined in accordance with the price and shares amount parameters set forth in
Section 2.2, and 
 C = the greater of (i) the VWAP for the Common Stock on the day the Investor delivers the Optional Amount Notice or
(ii) the Optional Amount Threshold Price. 
 Section 2.11 Exercise of Optional Amount. If granted by the Company to
the Investor with respect to a Pricing Period, all or any portion of the Optional Amount may be 
  

 6 

 exercised by the Investor on any Trading Day during the Pricing Period, subject to the limitations set forth in
Section 2.9. As a condition to each exercise of an Optional Amount pursuant to this Section 2.11, the Investor shall issue an Optional Amount Notice to the Company no later than 8:00 p.m. (New York time) on the day of such Optional Amount
exercise. If the Investor does not exercise an Optional Amount in full by 8:00 p.m. (New York time) on the last Trading Day of the applicable Pricing Period, such unexercised portion of the Investor’s Optional Amount with respect to that
Pricing Period automatically shall lapse and terminate. 
 Section 2.12 Aggregate Limit. Notwithstanding anything to the
contrary contained in this Agreement, in no event may the Company issue a Fixed Request Notice or grant an Optional Amount to the extent that the sale of Shares pursuant thereto and pursuant to all prior Fixed Request Notices or Optional Amounts
issued hereunder would cause the Company to sell or the Investor to purchase Shares which in the aggregate are in excess of the Aggregate Limit. If the Company issues a Fixed Request Notice or Optional Amount that otherwise would permit the Investor
to purchase shares of Common Stock which would cause the aggregate purchases by Investor hereunder to exceed the Aggregate Limit, such Fixed Request Notice or Optional Amount shall be void ab initio to the extent of the amount by which the
dollar value of shares or number of shares, as the case may be, of Common Stock otherwise issuable pursuant to such Fixed Request Notice or Optional Amount together with the dollar value of shares or number of shares, as the case may be, of all
other Common Stock purchased by the Investor pursuant hereto would exceed the Aggregate Limit. The Company hereby represents, warrants and covenants that, except for the transactions contemplated by the Italian Asset Purchase Agreement, neither it
nor any of its Subsidiaries (i) has effected any transaction or series of transactions or (ii) is a party to any pending transaction or series of transactions which, in either of such cases, may be integrated with the transactions
contemplated by this Agreement for purposes of determining whether approval of the Company’s stockholders is required under any bylaw, listed securities maintenance standards or other rules of the Trading Market. 
 ARTICLE III 
 REPRESENTATIONS AND
WARRANTIES OF THE INVESTOR 
 The Investor hereby makes the following representations and warranties to the Company: 
 Section 3.1 Organization and Standing of the Investor. The Investor is an international business company duly organized, validly
existing and in good standing under the laws of the British Virgin Islands. 
 Section 3.2 Authorization and Power. The
Investor has the requisite corporate power and authority to enter into and perform its obligations under this Agreement and to purchase the Shares in accordance with the terms hereof. The execution, delivery and performance of this Agreement by the
Investor and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary corporate action, and no further consent or authorization of the Investor, its Board of Directors or stockholders is required.
This Agreement has been duly executed and delivered by the Investor. This Agreement constitutes a valid and binding obligation of the Investor enforceable against it in accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship, receivership, or similar laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable principles
of general application. 
  

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 Section 3.3 No Conflicts. The execution, delivery and performance by the Investor of
this Agreement and the consummation by the Investor of the transactions contemplated herein do not and shall not (i) result in a violation of such Investor’s charter documents, bylaws or other applicable organizational instruments,
(ii) conflict with, constitute a default (or an event which, with notice or lapse of time or both, would become a default) under, or give rise to any rights of termination, amendment, acceleration or cancellation of, any material agreement,
mortgage, deed of trust, indenture, note, bond, license, lease agreement, instrument or obligation to which the Investor is a party or is bound, (iii) create or impose any lien, charge or encumbrance on any property of the Investor under any
agreement or any commitment to which the Investor is party or under which the Investor is bound or under which any of its properties or assets are bound, or (iv) result in a violation of any federal, state, local or foreign statute, rule, or
regulation, or any order, judgment or decree of any court or governmental agency applicable to the Investor or by which any of its properties or assets are bound or affected, except, in the case of clauses (ii), (iii) and (iv), for such
conflicts, defaults, terminations, amendments, acceleration, cancellations and violations as would not, individually or in the aggregate, prohibit or otherwise interfere with the ability of the Investor to enter into and perform its obligations
under this Agreement in any material respect. The Investor is not required under federal, state, local or foreign law, rule or regulation to obtain any consent, authorization or order of, or make any filing or registration with, any court or
governmental agency in order for it to execute, deliver or perform any of its obligations under this Agreement or to purchase the Shares in accordance with the terms hereof. 
 Section 3.4 Information. The Investor and its advisors have been furnished with all materials relating to the business, financial
condition, management and operations of the Company and materials relating to the offer and sale of the Shares which have been requested by the Investor. The Investor and its advisors have been afforded the opportunity to ask questions of
representatives of the Company. The Investor has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of the Shares. The Investor understands that it (and
not the Company) shall be responsible for its own tax liabilities that may arise as a result of this investment or the transactions contemplated by this Agreement. 
 Section 3.5 Investor Information. All information contained in the written materials furnished by the Investor to the Company specifically for use or incorporated by reference in the Current Report
or the Prospectus Supplement is true and correct in all material respects. 
 Section 3.6 Free Writing Prospectus. The
Investor represents and agrees with the Company that it has not made and will not make any offer or sales of any Shares it purchased pursuant to this Agreement that constitutes or would constitute a Free Writing Prospectus. 
  

 8 

 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES OF THE COMPANY 
 Except as set forth in the disclosure schedule
delivered by the Company to the Investor (which is hereby incorporated by reference in, and constitutes an integral part of, this Agreement) (the “Disclosure Schedule”), the Company hereby makes the following representations and
warranties to the Investor: 
 Section 4.1 Organization, Good Standing and Power. The Company is a corporation duly
organized, validly existing and in good standing under the laws of the State of Delaware and has the requisite corporate power and authority to own, lease and operate its properties and assets and to conduct its business as it is now being
conducted. As of the Effective Date, the Company does not have any Subsidiaries except as set forth in the 2005 Form 10-K or on Schedule 4.7 attached hereto. The Company and each such Subsidiary is duly qualified as a foreign corporation to do
business and is in good standing in every jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except for any jurisdiction in which the failure to be so qualified would not have a
Material Adverse Effect. 
 Section 4.2 Authorization, Enforcement. The Company has the requisite corporate power and
authority to enter into and perform this Agreement and to issue and sell the Shares in accordance with the terms hereof. Except for approvals of the Company’s Board of Directors or a committee thereof as may be required in connection with any
issuance and sale of Shares to the Investor hereunder (which approvals shall be obtained prior to the delivery of any Fixed Request Notice), the execution, delivery and performance by the Company of this Agreement and the consummation by it of the
transactions contemplated hereby have been duly and validly authorized by all necessary corporate action and no further consent or authorization of the Company or its Board of Directors or stockholders is required This Agreement has been duly
executed and delivered by the Company and constitutes a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable principles of general application. 

Section 4.3 Capitalization. The authorized capital stock of the Company and the shares thereof issued and outstanding as of the
Effective Date are as set forth in the 2005 Form 10-K or on Schedule 4.3 attached hereto. All of the outstanding shares of Common Stock have been duly authorized and validly issued, and are fully paid and nonassessable. Except as set forth in the
Commission Documents or on Schedule 4.3 attached hereto, as of the Effective Date, no shares of Common Stock were entitled to preemptive rights or registration rights and there were no outstanding options, warrants, scrip, rights to subscribe to,
call or commitments of any character whatsoever relating to, or securities or rights convertible into or exchangeable for, any shares of capital stock of the Company. Except as set forth in the Commission Documents or on Schedule 4.3 attached
hereto, there were no contracts, commitments, understandings, or arrangements by which the Company is or may become bound to issue additional shares of the capital stock of the Company or options, securities or rights convertible into or
exchangeable for any shares of capital stock of the Company. Except for customary transfer restrictions contained in agreements entered into by the Company to sell restricted securities or as set forth in the Commission Documents or on Schedule 4.3
attached hereto, as of the Effective Date, the Company was not a party to, and it had no knowledge of, any agreement restricting the voting or transfer of any shares of the capital stock of the Company. Except as set forth in the 
  

 9 

 Commission Documents or on Schedule 4.3 attached hereto, the offer and sale of all capital stock, convertible or
exchangeable securities, rights, warrants or options of the Company issued prior to the Effective Date complied with all applicable federal and state securities laws, and no stockholder has any right of rescission or damages or any “put”
or similar right with respect thereto which would have a Material Adverse Effect. The Company has furnished or made available to the Investor true and correct copies of the Company’s Certificate of Incorporation as in effect on the Effective
Date (the “Charter”), and the Company’s Bylaws as in effect on the Effective Date (the “Bylaws”), and true and correct copies (redacted as appropriate) of all executed resolutions of the Company’s Board of
Directors (and committees thereof) relating to the capital stock of the Company (and transactions in respect thereof) since December 31, 2004. 
 Section 4.4 Issuance of Shares. The Shares to be issued under this Agreement have been or will be duly authorized by all necessary corporate action and, when paid for or issued in accordance with the terms hereof, the
Shares shall be validly issued and outstanding, fully paid and nonassessable, and the Investor shall be entitled to all rights accorded to a holder and beneficial owner of Common Stock. 
 Section 4.5 No Conflicts. The execution, delivery and performance by the Company of this Agreement and the consummation by the Company
of the transactions contemplated herein do not and shall not (i) result in a violation of any provision of the Company’s Charter or Bylaws, (ii) conflict with, constitute a default (or an event which, with notice or lapse of time or
both, would become a default) under, or give rise to any rights of termination, amendment, acceleration or cancellation of, any material agreement, mortgage, deed of trust, indenture, note, bond, license, lease agreement, instrument or obligation to
which the Company or any of its Significant Subsidiaries is a party or is bound, (iii) create or impose a lien, charge or encumbrance on any property of the Company or any of its Significant Subsidiaries under any agreement or any commitment to
which the Company or any of its Significant Subsidiaries is a party or under which the Company or any of its Significant Subsidiaries is bound or under which any of their respective properties or assets are bound, or (iv) result in a violation
of any federal, state, local or foreign statute, rule, regulation, order, judgment or decree applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries are bound or affected,
except, in the case of clauses (ii), (iii) and (iv), for such conflicts, defaults, terminations, amendments, acceleration, cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect. The Company
is not required under federal, state, local or foreign law, rule or regulation to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency in order for it to execute, deliver or perform
any of its obligations under this Agreement, or to issue and sell the Shares to the Investor in accordance with the terms hereof (other than any filings which may be required to be made by the Company with the Commission or the Trading Market
subsequent to the Effective Date, including but not limited to a Prospectus Supplement under Sections 1.4 and 5.9 hereof, and any registration statement, prospectus or prospectus supplement which has been or may be filed pursuant hereto and any blue
sky filings which may be required to be made). 
 Section 4.6 Commission Documents, Financial Statements. (a) The
Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act and, except as disclosed in the Commission Documents or on Schedule 4.6 attached hereto, as of the Effective 
  

 10 

 Date the Company had timely filed (giving effect to permissible extensions in accordance with Rule 12b-25 under the
Exchange Act) all Commission Documents. The Company has not provided to the Investor any information which, according to applicable law, rule or regulation, should have been disclosed publicly by the Company but which has not been so disclosed,
other than with respect to the transactions contemplated by this Agreement. As of its date, each Commission Document filed with the Commission and incorporated by reference in the Registration Statement and the Prospectus (including, without
limitation, the 2005 Form 10-K) complied in all material respects with the requirements of the Securities Act or the Exchange Act, as applicable, and other federal, state and local laws, rules and regulations applicable to it, and, as of its date,
such Commission Document did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were
made, not misleading. Each Commission Document to be filed with the Commission after the Effective Date and incorporated by reference in the Registration Statement, the Prospectus and any Prospectus Supplement required to be filed pursuant to
Sections 1.4 and 5.9 hereof during the Investment Period (including, without limitation, the Current Report), when such document becomes effective or is filed with the Commission, as the case may be, shall comply in all material respects with the
requirements of the Securities Act or the Exchange Act, as applicable, and other federal, state and local laws, rules and regulations applicable to it, and shall not contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 
 (b) The financial statements, together with the related notes and schedules, of the Company included in the Commission Documents comply as to form in all material respects with all applicable accounting requirements
and the published rules and regulations of the Commission and all other applicable rules and regulations with respect thereto. Such financial statements, together with the related notes and schedules, have been prepared in accordance with GAAP
applied on a consistent basis during the periods involved (except (i) as may be otherwise indicated in such financial statements or the notes thereto or (ii) in the case of unaudited interim statements, to the extent they may not include
footnotes or may be condensed or summary statements), and fairly present in all material respects the financial condition of the Company and its consolidated Subsidiaries as of the dates thereof and the results of operations and cash flows for the
periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). 
 (c) The Company has timely filed
with the Commission and made available to the Investor all certifications and statements required by (x) Rule 13a-14 or Rule 15d-14 under the Exchange Act or (y) 18 U.S.C. Section 1350 (Section 906 of the Sarbanes-Oxley Act of 2002
(“SOXA”)) with respect to all relevant Commission Documents. The Company is in compliance in all material respects with the provisions of SOXA applicable to it as of the date hereof. The Company maintains disclosure controls and
procedures required by Rule 13a-15 or Rule 15d-15 under the Exchange Act; such controls and procedures are effective to ensure that all material information concerning the Company and its Subsidiaries is made known on a timely basis to the
individuals responsible for the timely and accurate preparation of the Company’s Commission filings and other public disclosure documents. As used in this Section 4.6(c), the term “file” shall be broadly construed to include any
manner in which a document or information is furnished, supplied or otherwise made available to the Commission. 
  

 11 

 (d) Ernst & Young LLP and KPMG LLP, who have expressed their opinions on the audited financial
statements and related schedules included or incorporated by reference in the Registration Statement and the Base Prospectus are, with respect to the Company, independent registered public accounting firms as required by the rules of the Public
Company Accounting Oversight Board. 
 Section 4.7 Subsidiaries. The 2005 Form 10-K or on Schedule 4.7 attached hereto
sets forth each Subsidiary of the Company as of the Effective Date, showing its jurisdiction of incorporation or organization and the percentage of the Company’s ownership of the outstanding capital stock or other ownership interests of such
Subsidiary. 
 Section 4.8 No Material Adverse Effect. Since December 31, 2005, the Company has not experienced or
suffered any Material Adverse Effect, and there exists no current state of facts, condition or event which would have a Material Adverse Effect, except (i) as disclosed in any Commission Documents filed since December 31, 2005 or
(ii) continued losses from operations. 
 Section 4.9 Indebtedness. The 2005 Form 10-K sets forth, as of
December 31, 2005, all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments through such date. For the purposes of this Agreement,
“Indebtedness” shall mean (a) any liabilities for borrowed money or amounts owed in excess of $10,000,000 (other than trade accounts payable incurred in the ordinary course of business), (b) all guaranties, endorsements,
indemnities and other contingent obligations in respect of Indebtedness of others in excess of $10,000,000, whether or not the same are or should be reflected in the Company’s balance sheet (or the notes thereto), except guaranties by
endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (c) the present value of any lease payments in excess of $10,000,000 due under leases required to be capitalized in
accordance with GAAP. There is no existing or continuing default or event of default in respect of any Indebtedness of the Company or any of its Subsidiaries. 
 Section 4.10 Title To Assets. Each of the Company and its Subsidiaries has good and marketable title to all of their respective real and personal property reflected in the Commission Documents or on
Schedule 4.10 attached hereto, free of mortgages, pledges, charges, liens, security interests or other encumbrances, except for those indicated in the Commission Documents or on Schedule 4.10 attached hereto or those that would not have a Material
Adverse Effect. All real property leases of the Company are valid and subsisting and in full force and effect in all material respects. 
 Section 4.11 Actions Pending. There is no action, suit, claim, investigation or proceeding pending, or to the knowledge of the Company threatened, against the Company or any Subsidiary which questions the validity of this
Agreement or the transactions contemplated hereby or any action taken or to be taken pursuant hereto or thereto. Except as set forth in the Commission Documents or on Schedule 4.11 or Schedule 4.15 attached hereto, there is no 
  

 12 

 action, suit, claim, investigation or proceeding pending, or to the knowledge of the Company threatened, against or
involving the Company, any Subsidiary or any of their respective properties or assets, or involving any officers or directors of the Company or any of its Subsidiaries, including, without limitation, any securities class action lawsuit or
stockholder derivative lawsuit, in each case which, if determined adversely to the Company, its Subsidiary or any officer or director of the Company or its Subsidiaries, would have a Material Adverse Effect. Each of (i) the Settlement
Agreement, dated July 20, 2001, by and among Motorola, Inc., Genometrix, Inc., the Massachusetts Institute of Technology and the Company, (ii) the Settlement Agreement, dated September 30, 2002, by and among CombiMatrix Corp.,
Dr. Donald Montgomery, Acacia Research Corp. and the Company, and (iii) that certain Tolling Agreement entered into in October 2003 between the Company and Oxford Gene Technology, is valid, binding and enforceable against the Company and
its Subsidiaries and each other party thereto and is in full force and effect, and the Company has no further obligation or liability of any kind or nature whatsoever (fixed, contingent or otherwise) with respect to the litigations, actions, suits,
cases or proceedings that are the subject of the agreements described in clauses (i), (ii) and (iii) above. 
 Section 4.12
Compliance With Law. The business of the Company and the Subsidiaries has been and is presently being conducted in compliance with all applicable federal, state, local and foreign governmental laws, rules, regulations and ordinances,
except as set forth in the Commission Documents or on Schedule 4.12 attached hereto, and except for such non-compliance which, individually or in the aggregate, would not have a Material Adverse Effect. 
 Section 4.13 Certain Fees. Except for the placement fee payable by the Company to Reedland Capital Partners and Institutional Division
of the Financial West Group, Member NASD/SIPC, no brokers, finders or financial advisory fees or commissions shall be payable by the Company or any Subsidiary with respect to the transactions contemplated by this Agreement. 
 Section 4.14 Operation of Business. (a) The Company or one or more of its Subsidiaries possesses such permits, licenses,
approvals, consents and other authorizations (including licenses, accreditation and other similar documentation or approvals of any local health departments) (collectively, “Governmental Licenses”) issued by the appropriate federal,
state, local or foreign regulatory agencies or bodies, including, without limitation, the United States Food and Drug Administration (“FDA”), necessary to conduct the business now operated by it, except where the failure to possess
such Governmental Licenses, individually or in the aggregate, would not have a Material Adverse Effect. The Company and its Subsidiaries are in compliance with the terms and conditions of all such Governmental Licenses and all applicable FDA rules
and regulations, guidelines and policies, and all applicable rules and regulations, guidelines and policies of any governmental authority exercising authority comparable to that of the FDA (including any non-governmental authority whose approval or
authorization is required under foreign law comparable to that administered by the FDA), except where the failure to so comply, individually or in the aggregate, would not have a Material Adverse Effect. All of the Governmental Licenses are valid
and in full force and effect, except where the invalidity of such Governmental Licenses or the failure of such Governmental Licenses to be in full force and effect, individually or in the aggregate, would not have a Material Adverse Effect. As to
each product that is subject to FDA regulation or similar legal provisions in any foreign jurisdiction that is developed, manufactured, tested, packaged, labeled, marketed, sold, distributed and/or 
  

 13 

 commercialized by the Company or any of its Subsidiaries, each such product is being developed, manufactured, tested,
packaged, labeled, marketed, sold, distributed and/or commercialized in compliance with all applicable requirements of the FDA (and any non-governmental authority whose approval or authorization is required under foreign law comparable to that
administered by the FDA), including, but not limited to, those relating to investigational use, investigational device exemption, premarket notification, premarket approval, good clinical practices, good manufacturing practices, record keeping,
filing of reports, and patient privacy and medical record security, except where such non-compliance, individually or in the aggregate, would not have a Material Adverse Effect. As to each product subject to FDA regulation or similar legal provision
in any foreign jurisdiction, all manufacturing facilities of the Company and its Subsidiaries are operated in compliance with the FDA’s Quality System Regulation requirements at 21 C.F.R. Part 820, as applicable, except where such
non-compliance, individually or in the aggregate, would not have a Material Adverse Effect. Except as set forth in the 2005 Form 10-K or on Schedule 4.14 attached hereto, neither the Company nor any of its Subsidiaries has received any notice of
proceedings relating to the revocation or modification of any such Governmental Licenses or relating to a potential violation of, or failure to comply with, any FDA rules and regulations, guidelines or policies which, if the subject of any
unfavorable decision, ruling or finding, individually or in the aggregate, would have a Material Adverse Effect. Except as set forth in the 2005 Form 10-K or on Schedule 4.14 attached hereto, the Company has not received any correspondence or notice
from the FDA and neither the Company nor any of its Subsidiaries knows of any basis therefor. This Section 4.14 does not relate to environmental matters, such items being the subject of Section 4.15. 
 (b) Except as described in the Commission Documents, the Company or one or more of its Subsidiaries owns or possesses adequate patents, patent rights,
licenses, inventions, copyrights, know-how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information, systems or procedures), trademarks, service marks, trade names, trade dress, logos, copyrights and
other intellectual property, including, without limitation, all of the intellectual property described in the Commission Documents or on Schedule 4.14 attached hereto as being owned or licensed by the Company (collectively, “Intellectual
Property”), that are necessary or material to carry on the business now operated by it. Except as set forth in the 2005 Form 10-K or on Schedule 4.14 attached hereto, (i) there are no actions, suits or judicial proceedings pending, or
to the Company’s knowledge threatened, relating to patents or proprietary information to which the Company or any of its Subsidiaries is a party or of which any property of the Company or any of its Subsidiaries is subject, and
(ii) neither the Company nor any of its Subsidiaries has received any notice or is otherwise aware of any infringement of or conflict with asserted rights of others with respect to any Intellectual Property or of any facts or circumstances
which could render any Intellectual Property invalid or inadequate to protect the interest of the Company and its Subsidiaries therein, and which infringement or conflict (if the subject of any unfavorable decision, ruling or finding) or invalidity
or inadequacy, individually or in the aggregate, would have a Material Adverse Effect. 
 (c) All pre-clinical and clinical trials conducted
by the Company or any of its Subsidiaries or in which the Company or any of its Subsidiaries has participated that are described in the Commission Documents, or the results of which are referred to in the Commission Documents, if any, are the only
pre-clinical and clinical trials currently being conducted by or on behalf of the Company and its Subsidiaries. All such pre-clinical and clinical 
  

 14 

 trials conducted, supervised or monitored by the Company or any of its Subsidiaries have been conducted in compliance
with all applicable federal, state, local and foreign laws, and the regulations and requirements of any applicable governmental entity, including, but not limited to, FDA good clinical practice and good laboratory practice requirements. Neither the
Company nor any of its Subsidiaries has received any notices or correspondence from the FDA or any other governmental agency requiring the termination, suspension or modification of any pre-clinical or clinical trials conducted by, or on behalf of,
the Company or any of its Subsidiaries or in which the Company or any of its Subsidiaries has participated that are described in the Commission Documents, if any, or the results of which are referred to in the Commission Documents. All pre-clinical
and clinical trials previously conducted by or on behalf of the Company or any of its Subsidiaries while conducted by or on behalf of the Company or any of its Subsidiaries, were conducted in compliance with all applicable federal, state, local and
foreign laws, and the regulations and requirements of any applicable governmental entity, including, but not limited to, FDA good clinical practice and good laboratory practice requirements. 
 Section 4.15 Environmental Compliance. Except as disclosed in the Commission Documents or on Schedule 4.15 attached hereto, the
Company and each of its Subsidiaries have obtained all material approvals, authorization, certificates, consents, licenses, orders and permits or other similar authorizations of all governmental authorities, or from any other person, that are
required under any Environmental Laws, except for any approvals, authorization, certificates, consents, licenses, orders and permits or other similar authorizations the failure of which to obtain does not or would not have a Material Adverse Effect.
“Environmental Laws” shall mean all applicable laws relating to the protection of the environment including, without limitation, all requirements pertaining to reporting, licensing, permitting, controlling, investigating or
remediating emissions, discharges, releases or threatened releases of hazardous substances, chemical substances, pollutants, contaminants or toxic substances, materials or wastes, whether solid, liquid or gaseous in nature, into the air, surface
water, groundwater or land, or relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of hazardous substances, chemical substances, pollutants, contaminants or toxic substances, material or
wastes, whether solid, liquid or gaseous in nature. Except for such instances as would not, individually or in the aggregate, have a Material Adverse Effect, to the best of the Company’s knowledge, there are no past or present events,
conditions, circumstances, incidents, actions or omissions relating to or in any way affecting the Company or its Subsidiaries that violate or could reasonably be expected to violate any Environmental Law after the Effective Date or that could
reasonably be expected to give rise to any environmental liability, or otherwise form the basis of any claim, action, demand, suit, proceeding, hearing, study or investigation (i) under any Environmental Law, or (ii) based on or related to
the manufacture, processing, distribution, use, treatment, storage (including without limitation underground storage tanks), disposal, transport or handling, or the emission, discharge, release or threatened release of any hazardous substance.

 Section 4.16 Material Agreements. Except as set forth in the Commission Documents or on Schedule 4.16 attached hereto,
neither the Company nor any Subsidiary of the Company is a party to any written or oral contract, instrument, agreement commitment, obligation, plan or arrangement, a copy of which would be required to be filed with the Commission as an exhibit to
an annual report on Form 10-K (collectively, “Material Agreements”). The Company and each of its Subsidiaries have performed in all material respects all the obligations required to be 
  

 15 

 performed by them under the Material Agreements, have received no notice of default or an event of default by the Company
or any of its Subsidiaries thereunder and are not aware of any basis for the assertion thereof, and neither the Company or any of its Subsidiaries nor, to the best knowledge of the Company, any other contracting party thereto are in default under
any Material Agreement now in effect, the result of which would have a Material Adverse Effect. Each of the Material Contracts is in full force and effect, and constitutes a legal, valid and binding obligation enforceable in accordance with its
terms against the Company and/or any of its Subsidiaries and, to the best knowledge of the Company, each other contracting party thereto, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable principles of general application. 
 Section 4.17 Transactions With Affiliates. Except as set forth in the Commission Documents or on Schedule 4.17 attached hereto, there
are no loans, leases, agreements, contracts, royalty agreements, management contracts, service arrangements or other continuing transactions exceeding $120,000 between (a) the Company or any Subsidiary, on the one hand, and (b) any person
or entity who would be covered by Item 404(a) of Regulation S-K, on the other hand. Except as disclosed in the Commission Documents, there are no outstanding amounts payable to or receivable from, or advances by the Company or any of its
Subsidiaries to, and neither the Company nor any of its Subsidiaries is otherwise a creditor of or debtor to, any beneficial owner of more than 5% of the outstanding shares of Common Stock, or any director, employee or affiliate of the Company or
any of its Subsidiaries, other than (i) reimbursement for reasonable expenses incurred on behalf of the Company or any of its Subsidiaries or (ii) as part of the normal and customary terms of such persons’ employment or service as a
director with the Company or any of its Subsidiaries. 
 Section 4.18 Securities Act. The Company has complied with all
applicable federal and state securities laws in connection with the offer, issuance and sale of the Shares hereunder. 
 (i) The Company has
prepared and filed with the Commission in accordance with the provisions of the Securities Act the Registration Statement, including the Base Prospectus, relating to the Shares. The Registration Statement was declared effective by order of the
Commission on June 28, 2005. On May 9, 2006, the Company prepared and filed with the Commission in accordance with the provisions of the Securities Act a registration statement on Form S-3 pursuant to Rule 462(b) under the Securities Act
relating to the Registration Statement. As of the date hereof, no stop order suspending the effectiveness of the Registration Statement has been issued by the Commission or is continuing in effect under the Securities Act and no proceedings therefor
are pending before or, to the Company’s knowledge, threatened by the Commission. No order preventing or suspending the use of the Prospectus has been issued by the Commission. 
 (ii) The Company meets the requirements for the use of Form S-3 under the Securities Act. The Registration Statement in the form in which it became
effective and the Base Prospectus complied in all material respects with the provisions of the Securities Act and did not at any such time contain an untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein (in the case of the 
  

 16 

 Prospectus, in the light of the circumstances under which they were made) not misleading; provided that this
representation and warranty does not apply to statements in or omissions from the Registration Statement or the Base Prospectus made in reliance upon and in conformity with information relating to the Investor furnished to the Company in writing by
or on behalf of the Investor expressly for use therein. 
 (iii) Each Prospectus Supplement required to be filed pursuant to Sections 1.4 and
5.9 hereof, when filed with the Commission under Rule 424(b) under the Securities Act, shall comply in all material respects with the provisions of the Securities Act and shall not at such time contain an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they are made, not misleading, except that this representation and warranty does not apply to
statements in or omissions from any Prospectus Supplement made in reliance upon and in conformity with information relating to the Investor furnished to the Company in writing by or on behalf of the Investor expressly for use therein. 
 (iv) The Company has not distributed and, prior to the completion of the distribution of the Shares, shall not distribute any offering material in
connection with the offering and sale of the Shares other than the Registration Statement, the Base Prospectus as supplemented by any Prospectus Supplement or such other materials, if any, permitted by the Securities Act. 
 Section 4.19 Employees. As of the Effective Date, neither the Company nor any Subsidiary of the Company has any collective bargaining
arrangements or agreements covering any of its employees, except as set forth in the Commission Documents or on Schedule 4.19 attached hereto. As of the Effective Date, except as disclosed in the Registration Statement, the Commission Documents or
on Schedule 4.19 attached hereto, no officer, consultant or key employee of the Company or any Subsidiary whose termination, either individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect, has terminated or,
to the knowledge of the Company, has any present intention of terminating his or her employment or engagement with the Company or any Subsidiary. 
 Section 4.20 Use of Proceeds. The proceeds from the sale of the Shares shall be used by the Company and its Subsidiaries as set forth in the Prospectus Supplement filed pursuant to Sections 1.4 and 5.9. 
 Section 4.21 Public Utility Holding Company Act and Investment Company Act Status. The Company is not a “holding company” or
a “public utility company” as such terms are defined in the Public Utility Holding Company Act of 1935, as amended. The Company is not, and as a result of the consummation of the transactions contemplated by this Agreement and the
application of the proceeds from the sale of the Shares as set forth in the Base Prospectus and any Prospectus Supplement shall not be, an “investment company” or a company “controlled” by an “investment company,”
within the meaning of the Investment Company Act of 1940, as amended. 
 Section 4.22 ERISA. Each material employee
benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), 
  

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 that is maintained, administered or contributed to by the Company or any of its affiliates for employees or former
employees of the Company and its Subsidiaries has been maintained in material compliance with its terms and the requirements of any applicable statutes, orders, rules and regulations, including but not limited to ERISA and the Internal Revenue Code
of 1986, as amended (the “Code”); no prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred which would result in a material liability to the Company with respect to any such
plan excluding transactions effected pursuant to a statutory or administrative exemption; and for each such plan that is subject to the funding rules of Section 412 of the Code or Section 302 of ERISA, no “accumulated funding
deficiency” as defined in Section 412 of the Code has been incurred, whether or not waived, and the fair market value of the assets of each such plan (excluding for these purposes accrued but unpaid contributions) exceeds the present value
of all benefits accrued under such plan determined using reasonable actuarial assumptions. 
 Section 4.23 Taxes. The
Company (i) has filed all necessary federal, state and foreign income and franchise tax returns or has duly requested extensions thereof, (ii) has paid all federal, state, local and foreign taxes due and payable for which it is liable,
except to the extent that any such taxes are being contested in good faith and by appropriate proceedings, and (iii) does not have any tax deficiency or claims outstanding or assessed or, to the best of the Company’s knowledge, proposed
against it. 
 Section 4.24 Insurance. The Company carries, or is covered by, insurance in such amounts and covering such
risks as is adequate for the conduct of its and its Subsidiaries’ businesses and the value of their respective properties and as is customary for companies engaged in similar businesses in similar industries. 
 Section 4.25 Acknowledgement Regarding Investor’s Purchase of Shares. The Company acknowledges and agrees that the Investor is
acting solely in the capacity of an arm’s length purchaser with respect to this Agreement and the transactions contemplated hereunder. The Company further acknowledges that the Investor is not acting as a financial advisor or fiduciary of the
Company (or in any similar capacity) with respect to this Agreement and the transactions contemplated hereunder, and any advice given by the Investor or any of its representatives or agents in connection with this Agreement and the transactions
contemplated hereunder is merely incidental to the Investor’s purchase of the Shares. 
 ARTICLE V 
 COVENANTS 
 The Company covenants with
the Investor, and the Investor covenants with the Company, as follows, which covenants of one party are for the benefit of the other party, during the Investment Period: 
 Section 5.1 Securities Compliance. The Company shall notify the Commission and the Trading Market, as applicable, in accordance with their respective rules and regulations, of the transactions
contemplated by this Agreement, and shall take all necessary action, undertake all proceedings and obtain all registrations, permits, consents and approvals for the legal and valid issuance of the Shares to the Investor in accordance with the terms
of this Agreement. 
  

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 Section 5.2 Registration and Listing. The Company shall take all action necessary to
cause the Common Stock to continue to be registered as a class of securities under Sections 12(b) or 12(g) of the Exchange Act, shall comply with its reporting and filing obligations under the Exchange Act, and shall not take any action or file any
document (whether or not permitted by the Securities Act) to terminate or suspend such registration or to terminate or suspend its reporting and filing obligations under the Exchange Act or Securities Act, except as permitted herein or required by
law. The Company shall take all action necessary to continue the listing and trading of its Common Stock and the listing of the Shares purchased by Investor hereunder on the Trading Market, and shall comply with the Company’s reporting, filing
and other obligations under the bylaws, listed securities maintenance standards and other rules of the Trading Market. 
 Section 5.3
Compliance with Laws. 
 (i) The Company shall comply, and cause each Subsidiary to comply, (a) with all laws, rules,
regulations and orders applicable to the business and operations of the Company and its Subsidiaries except as would not have a Material Adverse Effect and (b) with all applicable provisions of the Securities Act and the Exchange Act except for
such non-compliance as would not have a Material Adverse Effect. Without limiting the generality of the foregoing, neither the Company nor any of its officers, directors or affiliates has taken or will take, directly or indirectly, any action
designed or intended to stabilize or manipulate the price of any security of the Company, or which caused or resulted in, or which would in the future reasonably be expected to cause or result in, stabilization or manipulation of the price of any
security of the Company. 
 (ii) The Investor shall comply with all laws, rules, regulations and orders applicable to the performance by it
of its obligations under this Agreement and its investment in the Shares, except as would not, individually or in the aggregate, prohibit or otherwise interfere with the ability of the Investor to enter into and perform its obligations under this
Agreement in any material respect. Without limiting the foregoing, the Investor shall comply with all applicable provisions of the Securities Act and the Exchange Act, except for such non-compliance as would not, individually or in the aggregate,
prohibit or otherwise interfere with the ability of the Investor to enter into and perform its obligations under this Agreement in any material respect. Without limiting the generality of the foregoing, neither the Investor nor any of its officers,
directors or affiliates has taken or will take, directly or indirectly, any action designed or intended to stabilize or manipulate the price of any security of the Company, or which caused or resulted in, or which might in the future reasonably be
expected to cause or result in, stabilization or manipulation of the price of any security of the Company. 
 Section 5.4 Keeping
of Records and Books of Account; Foreign Corrupt Practices Act. 
 (i) The Company shall keep and cause each Subsidiary to keep
adequate records and books of account, in which complete entries shall be made in accordance with GAAP consistently applied, reflecting all financial transactions of the Company and its Subsidiaries, and in which, for each fiscal year, all proper
reserves for depreciation, depletion, obsolescence, amortization, taxes, bad debts and other purposes in connection with its business 
  

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 shall be made. The Company shall maintain a system of internal accounting controls which are sufficient to provide
reasonable assurance that (a) transactions are executed with management’s authorization; (b) transactions are recorded as necessary to permit preparation of the consolidated financial statements of the Company and to maintain
accountability for the Company’s consolidated assets; (c) access to the Company’s assets is permitted only in accordance with management’s authorization; and (d) the reporting of the Company’s assets is compared with
existing assets at regular intervals. 
 (ii) Neither the Company, nor any of its Subsidiaries, nor to the knowledge of the Company, any of
their respective directors, officers, agents, employees or any other persons acting on their behalf shall, in connection with the operation of their respective businesses, (a) use any corporate funds for unlawful contributions, payments, gifts
or entertainment or to make any unlawful expenditures relating to political activity to government officials, candidates or members of political parties or organizations, (b) pay, accept or receive any unlawful contributions, payments,
expenditures or gifts, or (c) violate or operate in noncompliance with any export restrictions, anti-boycott regulations, embargo regulations or other applicable domestic or foreign laws and regulations, the violation or non-compliance of which
would result in a Material Adverse Effect. 
 (iii) Prior to each Settlement Date and from time to time, the Company shall make available for
inspection and review by the Investor customary documentation allowing the Investor or its appointed counsel or advisors to conduct due diligence. 
 Section 5.5 Limitations on Holdings and Issuances. At no time during the term of this Agreement shall the Investor directly or indirectly own more than 9.9% of the then issued and outstanding shares of Common Stock. The
Company shall not be obligated to issue and the Investor shall not be obligated to purchase any shares of Common Stock which would result in the issuance under this Agreement to the Investor at any time of Shares which, when aggregated with all
other shares of Common Stock then owned beneficially by the Investor, would result in the beneficial ownership by the Investor of more than 9.9% of the then issued and outstanding shares of the Common Stock. 
 Section 5.6 Other Agreements and Other Financings. 
 (i) The Company shall not enter into, announce or recommend to its stockholders any agreement, plan, arrangement or transaction in or of which the terms thereof would restrict, materially delay, conflict with or
impair the right of the Company or any Subsidiary to perform their obligations under this Agreement. 
 (ii) The Company shall notify the
Investor, within 48 hours, if it enters into any agreement, plan, arrangement or transaction with a third party, the principal purpose of which is to obtain during a Pricing Period an Other Financing not constituting an Acceptable Financing (an
“Other Financing Notice”); provided, however, that the Company shall provide the Investor with five Trading Days’ prior written notice (an “Integration Notice”) if it intends to enter into any
agreement, plan, arrangement or transaction with a third party, the principal purpose of which is to obtain an Other Financing which may be integrated with the transactions contemplated by this Agreement for purposes of determining whether approval
of the 
  

 20 

 Company’s stockholders is required under any bylaw, listed securities maintenance standards or other rules of the
Trading Market, and the Company hereby represents, warrants and covenants that neither it nor any of its Subsidiaries shall enter into any such agreement, plan, arrangement or transaction unless it has timely given the Investor the Integration
Notice in accordance with this Section 5.6(ii). For purposes of this Section 5.6(ii), any press release issued by, or Commission Document filed by, the Company shall constitute sufficient notice, provided that it is issued or filed, as the
case may be, within the time requirements set forth in the first sentence of this Section 5.6(ii) for an Other Financing Notice or an Integration Notice, as applicable. During any Pricing Period in which the Company is required to provide
notice pursuant to the first sentence of this Section 5.6(ii), the Investor shall (i) have the option to purchase the Shares subject to the Fixed Request at (x) the price therefor in accordance with the terms of this Agreement or
(y) the third party’s price in connection with the Other Financing, net of such third party’s discount and fees, or (ii) the Investor may elect to not purchase any Shares subject to the Fixed Request for that Pricing Period. An
“Other Financing” shall mean (x) the issuance of Common Stock or securities convertible into or exchangeable for Common Stock in exchange for cash at a net discount (after all fees, discounts and commissions associated with the
transaction) to the then Current Market Price of the Common Stock; (y) the implementation by the Company of any mechanism in respect of any securities convertible into or exchangeable for Common Stock for the reset of the purchase price of the
Common Stock to below the then Current Market Price of the Common Stock (including, without limitation, any antidilution or similar adjustment provisions in respect of any Company securities); or (z) the issuance of options, warrants or similar
rights of subscription not constituting an Acceptable Financing. “Acceptable Financing” shall mean the issuance by the Company of shares of Common Stock or securities convertible into or exchangeable for Common Stock (1) to an
employee, director, officer or consultant of the Company in a board-approved compensatory arrangement, whether or not pursuant to a current or future employee, director, officer or consultant equity incentive plans or stock purchase plans;
(2) in connection with any shareholder rights plan; (3) upon the conversion or exchange of options or convertible or exchangeable securities outstanding as of the Effective Date; (4) in connection with technology sharing, licensing,
research and joint development agreements with third parties; (5) in connection with the formation or maintenance of strategic partnerships, alliances or joint ventures, commercial credit arrangements, equipment financings or real property
leases (or amendments thereto); or (6) in connection with acquisition of products, licenses, technology or business. 
 Section 5.7 Stop Orders. The Company shall advise the Investor immediately and shall confirm such advice in writing: (i) of the Company’s receipt of notice of any request by the Commission for amendment of or a
supplement to the Registration Statement, the Prospectus or for any additional information; (ii) of the Company’s receipt of notice of the issuance by the Commission of any stop order suspending the effectiveness of the Registration
Statement or of the suspension of qualification of the Shares for offering or sale in any jurisdiction or the initiation of any proceeding for such purpose; and (iii) of the Company becoming aware of the happening of any event, which makes any
statement of a material fact made in the Prospectus untrue or which requires the making of any additions to or changes to the statements then made in the Prospectus in order to state a material fact required by the Securities Act to be stated
therein or necessary in order to make the statements then made therein, in light of the circumstances under which they were made, not misleading, or of the necessity to amend the Registration Statement or supplement the Prospectus to comply with the
Securities Act or any 
  

 21 

 other law. If at any time the Commission shall issue any stop order suspending the effectiveness of the Registration
Statement, the Company shall use commercially reasonable efforts to obtain the withdrawal of such order at the earliest possible time. 
 Section 5.8 Amendments to the Registration Statement; Prospectus Supplements. Except as provided in this Agreement and other than periodic reports required to be filed pursuant to the Exchange Act, the Company shall not
file with the Commission any amendment to the Registration Statement that relates to the Investor, the Agreement or the transactions contemplated hereby or file with the Commission any Prospectus Supplement that relates to the Investor, this
Agreement or the transactions contemplated hereby with respect to which (i) the Investor shall not previously have been advised, (ii) the Company shall not have given due consideration to any comments thereon received from the Investor or
its counsel, or (iii) the Investor shall reasonably object after being so advised, unless it is necessary to amend the Registration Statement or make any supplement to the Prospectus to comply with the Securities Act or any other applicable law
or regulation, in which case the Company shall immediately so inform the Investor, the Investor shall be provided with a reasonable opportunity to review any disclosure relating to the Investor and the Company shall expeditiously furnish to the
Investor an electronic copy thereof. In addition, for so long as, in the reasonable opinion of counsel for the Investor, the Prospectus is required to be delivered in connection with any purchase of Shares by the Investor, the Company shall not file
any Prospectus Supplement with respect to the Shares without delivering or making available a copy of such Prospectus Supplement, together with the Base Prospectus, to the Investor promptly. 
 Section 5.9 Prospectus Delivery. The Company shall file with the Commission a Prospectus Supplement on the first Trading Day
immediately following the end of each Pricing Period. The Company shall provide the Investor a reasonable opportunity to comment on a draft of each such Prospectus Supplement (and shall give due consideration to all such comments) and, subject to
the provisions of Section 5.8 hereof, shall deliver or make available to the Investor, without charge, an electronic copy of each form of Prospectus Supplement, together with the Base Prospectus, on each Settlement Date. The Company consents to
the use of the Prospectus (and of any Prospectus Supplement thereto) in accordance with the provisions of the Securities Act and with the securities or “blue sky” laws of the jurisdictions in which the Shares may be sold by the Investor,
in connection with the offering and sale of the Shares and for such period of time thereafter as the Prospectus is required by the Securities Act to be delivered in connection with sales of the Shares. If during such period of time any event shall
occur that in the judgment of the Company and its counsel is required to be set forth in the Prospectus or should be set forth therein in order to make the statements made therein, in the light of the circumstances under which they were made, not
misleading, or if it is necessary to supplement or amend the Prospectus to comply with the Securities Act or any other applicable law or regulation, the Company shall forthwith prepare and, subject to Section 5.8 above, file with the Commission
an appropriate Prospectus Supplement to the Prospectus and shall expeditiously furnish or make available to the Investor an electronic copy thereof. 
 Section 5.10 Selling Restrictions. 
 (i) The Investor covenants that from and after the
date hereof through and including the 90th day next following the termination of this Agreement (the
“Restricted  
  

 22 

 Period”), neither the Investor nor any of its affiliates (within the meaning of the Exchange Act) nor any
entity managed by the Investor shall, directly or indirectly, sell any securities of the Company, except the Shares that it owns or has the right to purchase as provided in a Fixed Request Notice. During the Restricted Period, neither the Investor
or any of its affiliates nor any entity managed by the Investor shall sell any shares of Common Stock of the Company it does not “own” or have the unconditional right to receive (within the meaning of Rule 200 of Regulation SHO promulgated
by the Commission under the Exchange Act), including Shares in any account of the Investor or in any account directly or indirectly managed by the Investor or any of its affiliates or any entity managed by the Investor. Without limiting the
generality of the foregoing, prior to and during the Restricted Period, neither the Investor nor any of its affiliates nor any entity managed by the Investor or any of its affiliates shall enter into a short position with respect to shares of Common
Stock of the Company, including in any account of the Investor’s or in any account directly or indirectly managed by the Investor or any of its Affiliates or any entity managed by the Investor, except that the Investor may sell Shares that it
is obligated to purchase under a pending Fixed Request Notice but has not yet taken possession of so long as the Investor (or the Broker-Dealer, as applicable) covers any such sales with the Shares purchased pursuant to such Fixed Request Notice;
provided, however, that the Investor (or the Broker-Dealer, as applicable) shall not be required to cover any such sales with the Shares purchased pursuant to such Fixed Request Notice if the Company fails to deliver such Shares to the
Investor on the applicable Settlement Date upon the terms and subject to the provisions of this Agreement. Prior to and during the Restricted Period, the Investor shall not grant any option to purchase or acquire any right to dispose or otherwise
dispose for value of any shares of Common Stock or any securities convertible into or exercisable or exchangeable for, or warrants to purchase, any shares of Common Stock, or enter into any swap, hedge or other agreement that transfers, in whole or
in part, the economic risk of ownership of the Common Stock, except for such sales expressly permitted by this Section 5.10(i). 
 (ii)
In addition to the foregoing, in connection with any sale of the Company’s securities (including any sale permitted by paragraph (i) above), the Investor shall comply in all respects with all applicable laws, rules, regulations and orders,
including, without limitation, the requirements of the Securities Act and the Exchange Act. 
 Section 5.11 Effective Registration
Statement. During the Investment Period, the Company shall use its best efforts to maintain the continuous effectiveness of the Registration Statement under the Securities Act. 
 Section 5.12 Non-Public Information. Neither the Company nor any of its directors, officers or agents shall disclose any material
non-public information about the Company to the Investor, unless a simultaneous public announcement thereof is made by the Company in the manner contemplated by Regulation FD. 
 Section 5.13 Broker/Dealer. The Investor shall use one or more broker-dealers to effectuate all sales, if any, of the Shares that it
may purchase from the Company pursuant to this Agreement which (or whom) shall be unaffiliated with the Investor and not then currently engaged or used by the Company (collectively, the “Broker-Dealer”). The Investor will provide
the Company with all information regarding the Broker-Dealer reasonably requested by the Company. The Investor shall be solely responsible for all fees and commissions of the Broker-Dealer. 
  

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 Section 5.14 Update of Disclosure Schedule. During the Investment Period, the Company
shall from time to time update the Disclosure Schedule as may be required to satisfy the condition set forth in Section 6.3(i). For purposes of this Section 5.14, any disclosure made in a schedule to the Compliance Certificate shall be
deemed to be an update of the Disclosure Schedule. Notwithstanding anything in this Agreement to the contrary, no update to the Disclosure Schedule pursuant to this Section 5.14 shall cure any breach of a representation or warranty of the
Company contained in this Agreement and shall not affect any of the Investor’s remedies with respect thereto. 
 ARTICLE VI

 OPINION OF COUNSEL AND CERTIFICATE; CONDITIONS TO THE SALE AND 
 PURCHASE OF THE SHARES 
 Section 6.1 Opinion of Counsel and
Certificate. Simultaneously with the execution and delivery of this Agreement, the Investor has received and relied upon (i) an opinion of outside counsel to the Company, dated the Effective Date, in the form of Exhibit C hereto,
and (ii) a certificate from the Company, dated the Effective Date, in the form of Exhibit D hereto. 
 Section 6.2
Conditions Precedent to the Obligation of the Company. The obligation hereunder of the Company to issue and sell the Shares to the Investor under any Fixed Request Notice or Optional Amount is subject to the satisfaction or (to the extent
permitted by applicable law) waiver of each of the conditions set forth below. These conditions are for the Company’s sole benefit and (to the extent permitted by applicable law) may be waived by the Company at any time in its sole discretion.

 (i) Accuracy of the Investor’s Representations and Warranties. The representations and warranties of the Investor
contained in this Agreement (i) that are not qualified by “materiality” shall have been true and correct in all material respects when made and shall be true and correct in all material respects as of the applicable Fixed Request
Exercise Date and the applicable Settlement Date with the same force and effect as if made on such dates, except to the extent such representations and warranties are as of another date, in which case, such representations and warranties shall be
true and correct in all material respects as of such other date and (ii) that are qualified by “materiality” shall have been true and correct when made and shall be true and correct as of the applicable Fixed Request Exercise Date and
the applicable Settlement Date with the same force and effect as if made on such dates, except to the extent such representations and warranties are as of another date, in which case, such representations and warranties shall be true and correct as
of such other date. 
 (ii) Registration Statement. The Registration Statement is effective and neither the Company nor the
Investor shall have received notice that the Commission has issued or intends to issue a stop order with respect to the Registration Statement. The Company shall have a maximum dollar amount certain of Shares registered under the Registration
Statement which are in an amount not less than the maximum dollar amount worth of Shares issuable pursuant to all Fixed Request Notices and Optional Amounts during the Investment Period. The 
  

 24 

 Current Report shall have been filed with the Commission, as required pursuant to Section 1.4, and a Prospectus
Supplement shall have been filed with the Commission, as required pursuant to Sections 1.4 and 5.9 hereof, to disclose the sale of the Shares prior to each Settlement Date, as applicable. 
 (iii) Performance by the Investor. The Investor shall have performed, satisfied and complied in all material respects with all covenants,
agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Investor at or prior to the applicable Fixed Request Exercise Date and the applicable Settlement Date. 
 (iv) No Injunction. No statute, regulation, order, decree, writ, ruling or injunction shall have been enacted, entered, promulgated,
threatened or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of or which would materially modify or delay any of the transactions contemplated by this Agreement. 
 (v) No Suspension, Etc. Trading in the Common Stock shall not have been suspended by the Commission or the Trading Market (except for any
suspension of trading of limited duration agreed to by the Company, which suspension shall be terminated prior to the applicable Fixed Request Exercise Date and applicable Settlement Date), and, at any time prior to the applicable Fixed Request
Exercise Date and applicable Settlement Date, none of the events described in clauses (i), (ii) and (iii) of Section 5.7 hereof shall have occurred, trading in securities generally as reported on the Trading Market shall not have been
suspended or limited, nor shall a banking moratorium have been declared either by the United States or New York State authorities, nor shall there have occurred any material outbreak or escalation of hostilities or other national or international
calamity or crisis of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment of the Company, makes it impracticable or inadvisable to issue the Shares. 
 (vi) No Proceedings or Litigation. No action, suit or proceeding before any arbitrator or any court or governmental authority shall have
been commenced or threatened, and no inquiry or investigation by any governmental authority shall have been commenced or threatened, against the Company or any Subsidiary, or any of the officers, directors or affiliates of the Company or any
Subsidiary, seeking to restrain, prevent or change the transactions contemplated by this Agreement, or seeking damages in connection with such transactions. 
 (vii) Aggregate Limit. The issuance and sale of the Shares issuable pursuant to such Fixed Request Notice or Optional Amount shall not violate Sections 2.2, 2.12 and 5.5 hereof. 
 Section 6.3 Conditions Precedent to the Obligation of the Investor. The obligation hereunder of the Investor to accept a Fixed Request
or Optional Amount grant and to acquire and pay for the Shares is subject to the satisfaction or (to the extent permitted by applicable law) waiver, at or before each Fixed Request Exercise Date and each Settlement Date, of each of the conditions
set forth below. These conditions are for the Investor’s sole benefit and (to the extent permitted by applicable law) may be waived by the Investor at any time in its sole discretion. 
  

 25 

 (i) Accuracy of the Company’s Representations and Warranties. The representations and
warranties of the Company contained in this Agreement (i) that are not qualified by “materiality” or “Material Adverse Effect” shall have been true and correct in all material respects when made and shall be true and correct
in all material respects as of the applicable Fixed Request Exercise Date and the applicable Settlement Date with the same force and effect as if made on such dates, except to the extent such representations and warranties are as of another date, in
which case, such representations and warranties shall be true and correct in all material respects as of such other date and (ii) that are qualified by “materiality” or “Material Adverse Effect” shall have been true and
correct when made and shall be true and correct as of the applicable Fixed Request Exercise Date and the applicable Settlement Date with the same force and effect as if made on such dates, except to the extent such representations and warranties are
as of another date, in which case, such representations and warranties shall be true and correct as of such other date. 
 (ii)
Registration Statement. The Registration Statement is effective and neither the Company nor the Investor shall have received notice that the Commission has issued or intends to issue a stop order with respect to the Registration
Statement. The Company shall have a maximum dollar amount certain of Shares registered under the Registration Statement which are in an amount not less than the maximum dollar amount worth of Shares issuable pursuant to all Fixed Request Notices and
Optional Amounts during the Investment Period. The Current Report shall have been filed with the Commission, as required pursuant to Section 1.4, and a Prospectus Supplement shall have been filed with the Commission, as required pursuant to
Sections 1.4 and 5.9 hereof, to disclose the sale of the Shares prior to each Settlement Date, as applicable, and an electronic copy of such Prospectus Supplement together with the Base Prospectus shall have been delivered or made available to the
Investor in accordance with Section 5.9 hereof. 
 (iii) No Suspension. Trading in the Common Stock shall not have been
suspended by the Commission or the Trading Market (except for any suspension of trading of limited duration agreed to by the Company, which suspension shall be terminated prior to the applicable Fixed Request Exercise Date and applicable Settlement
Date), and, at any time prior to the applicable Fixed Request Exercise Date and applicable Settlement Date, none of the events described in clauses (i), (ii) and (iii) of Section 5.7 hereof shall have occurred, trading in securities
generally as reported on the Trading Market shall not have been suspended or limited, nor shall a banking moratorium have been declared either by the United States or New York State authorities, nor shall there have occurred any material outbreak or
escalation of hostilities or other national or international calamity or crisis of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment of the Investor, makes it
impracticable or inadvisable to purchase the Shares. 
 (iv) Performance of the Company. The Company shall have performed,
satisfied and complied in all material respects with all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the applicable Fixed Request Exercise Date and the
applicable Settlement Date and shall have delivered to the Investor the Compliance Certificate substantially in the form attached hereto as Exhibit E. 
  

 26 

 (v) No Injunction. No statute, rule, regulation, order, decree, writ, ruling or injunction
shall have been enacted, entered, promulgated, threatened or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of or which would materially modify or delay any of the transactions contemplated
by this Agreement. 
 (vi) No Proceedings or Litigation. No action, suit or proceeding before any arbitrator or any court or
governmental authority shall have been commenced or threatened, and no inquiry or investigation by any governmental authority shall have been commenced or threatened, against the Company or any Subsidiary, or any of the officers, directors or
affiliates of the Company or any Subsidiary, seeking to restrain, prevent or change the transactions contemplated by this Agreement, or seeking damages in connection with such transactions. 
 (vii) Aggregate Limit. The issuance and sale of the Shares issuable pursuant to such Fixed Request Notice or Optional Amount shall not
violate Sections 2.2, 2.12 and 5.5 hereof. 
 (viii) Shares Authorized. The Shares issuable pursuant to such Fixed Request
Notice or Optional Amount shall have been duly authorized by all necessary corporate action of the Company. 
 (ix) Notification of
Listing of Shares. The Company shall have submitted to the Trading Market a notification form of listing of additional shares related to the Shares issuable pursuant to such Fixed Request or Optional Amount in accordance with the bylaws,
listed securities maintenance standards and other rules of the Trading Market. 
 (x) Opinions of Counsel; Bring-Down.
Subsequent to the filing of the Current Report pursuant to Section 1.4 and prior to the first Fixed Request Exercise Date, the Investor shall have received an opinion from outside counsel to the Company in the form of Exhibit F hereto
and an opinion from in-house counsel to the Company in the form of Exhibit G hereto. On each Settlement Date, the Investor shall have received an opinion “bring down” from outside counsel to the Company in the form of Exhibit
H hereto and an opinion “bring down” from in-house counsel to the Company in the form of Exhibit I hereto. 
 ARTICLE
VII 
 TERMINATION 
 Section 7.1 Term, Termination by Mutual Consent. Unless earlier terminated as provided hereunder, this Agreement shall terminate automatically on the earliest of (i) the first day of the month next following the
18-month anniversary of the Effective Date (the “Investment Period”), (ii) the date that the entire dollar amount of Shares registered under the Registration Statement have been issued and sold and (iii) the date the
Investor shall have purchased the Total Commitment of shares of Common Stock (subject in all cases to the Trading Market Limit). The Company may terminate this Agreement effective upon three days’ prior written notice to the Investor under
Section 9.4; provided, however, that such termination shall not occur during a Pricing Period or prior to a Settlement Date. This Agreement may be terminated at any time by the mutual written consent of the parties, effective as
of the date of such mutual written consent unless otherwise provided in such written consent; it being hereby acknowledged and agreed that 
  

 27 

 the Investor may not consent to such termination during a Pricing Period or prior to a Settlement Date in the event the
Investor has instructed the Broker-Dealer to effect an open-market sale of Shares which are subject to a pending Fixed Request Notice but which have not yet been physically delivered by the Company (and/or credited by book-entry) to the Investor in
accordance with the terms and subject to the conditions of this Agreement. 
 Section 7.2 Other Termination. If the
Company provides the Investor with an Other Financing Notice (other than in respect of an underwritten public offering or an Acceptable Financing) or an Integration Notice, the Investor shall have the right to terminate this Agreement within the
subsequent 30-day period (the “Event Period”), effective upon one business day’s prior written notice delivered to the Company in accordance with Section 9.4 at any time during the Event Period. The Company shall notify
the Investor and the Investor shall have the right to terminate this Agreement at any time if: (i) an event constituting a Material Adverse Effect has occurred or an event has occurred which would result in the occurrence of a Material Adverse
Effect; (ii) a Material Change in Ownership has occurred; or (iii) a default or event of default has occurred and is continuing under the terms of any agreement, contract, note or other instrument to which the Company or any of its
Subsidiaries is a party with respect to any indebtedness representing more than 10% of the Company’s consolidated assets, in any such case, upon one business day’s prior written notice delivered to the Company in accordance with
Section 9.4 hereof. 
 Section 7.3 Effect of Termination. In the event of termination by the Company or the Investor,
written notice thereof shall forthwith be given to the other party as provided in Section 9.4 and the transactions contemplated by this Agreement shall be terminated without further action by either party. If this Agreement is terminated as
provided in Section 7.1 or 7.2 herein, this Agreement shall become void and of no further force and effect, except as provided in Section 9.9 hereof. Nothing in this Section 7.3 shall be deemed to release the Company or the Investor
from any liability for any breach under this Agreement, or to impair the rights of the Company and the Investor to compel specific performance by the other party of its obligations under this Agreement. 
 ARTICLE VIII 
 INDEMNIFICATION

 Section 8.1 General Indemnity. 
 (i) Indemnification by the Company. The Company shall indemnify and hold harmless the Investor, the Broker-Dealer, each affiliate, employee, representative and advisor of and to the Investor and the
Broker-Dealer, and each person, if any, who controls the Investor or the Broker-Dealer within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act from and against all losses, claims, damages,
liabilities and expenses (including reasonable costs of defense and investigation and all attorneys’ fees) to which the Investor, the Broker-Dealer and each such other person may become subject, under the Securities Act or otherwise, insofar as
such losses, claims, damages, liabilities and expenses (or actions in respect thereof) arise out of or are based upon (i) any violation of law (including United States federal securities laws) in connection with the transactions contemplated by
this Agreement by the Company or any of its Subsidiaries, affiliates, officers, directors or employees, (ii) any untrue 
  

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 statement or alleged untrue statement of a material fact contained, or incorporated by reference, in the Registration
Statement or any amendment thereto or any omission or alleged omission to state therein, or in any document incorporated by reference therein, a material fact required to be stated therein or necessary to make the statements therein not misleading,
or (iii) any untrue statement or alleged untrue statement of a material fact contained, or incorporated by reference, in the Prospectus or any omission or alleged omission to state therein, or in any document incorporated by reference 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; provided, however, that (A) the Company shall not be liable under
this Section 8.1(i) to the extent that a court of competent jurisdiction shall have determined by a final judgment (from which no further appeals are available) that such loss, claim, damage, liability or expense resulting directly and solely
from any such acts or failures to act, undertaken or omitted to be taken by the Investor or such person through its bad faith or willful misconduct, (B) the foregoing indemnity shall not apply to any loss, claim, damage, liability or expense to
the extent, but only to the extent, arising out of or based upon any untrue statement or alleged untrue statement or omission or alleged omission made in reliance upon and on conformity with written information furnished to the Company by the
Investor expressly for use in the Current Report or any Prospectus Supplement and (C) with respect to the Prospectus, the foregoing indemnity shall not inure to the benefit of the Investor or any such person from whom the person asserting any
loss, claim, damage, liability or expense purchased Common Stock, if copies of all Prospectus Supplements required to be filed pursuant to Section 1.4 and 5.9, together with the Base Prospectus, were timely delivered or made available to the
Investor pursuant hereto and a copy of the Base Prospectus, together with a Prospectus Supplement (as applicable), was not sent or given by or on behalf of the Investor or any such person to such person, if required by law to have been delivered, at
or prior to the written confirmation of the sale of the Common Stock to such person, and if delivery of the Base Prospectus, together with a Prospectus Supplement (as applicable), would have cured the defect giving rise to such loss, claim, damage,
liability or expense. 
 The Company shall reimburse the Investor, the Broker-Dealer and each such controlling person promptly upon demand
(with accompanying presentation of documentary evidence) for all legal and other costs and expenses reasonably incurred by the Investor, the Broker-Dealer or such indemnified persons in investigating, defending against, or preparing to defend
against any such claim, action, suit or proceeding with respect to which it is entitled to indemnification. 
 (ii) Indemnification by
the Investor. The Investor shall indemnify and hold harmless the Company, each of its directors and officers, and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20(a)
of the Exchange Act from and against all losses, claims, damages, liabilities and expenses (including reasonable costs of defense and investigation and all attorneys fees) to which the Company and each such other person may become subject, under the
Securities Act or otherwise, insofar as such losses, claims, damages, liabilities and expenses (or actions in respect thereof) arise out of or are based upon (i) any violation of law (including United States federal securities laws) in
connection with the transactions contemplated by this Agreement by the Investor or any of its affiliates, officers, directors or employees, or (ii) any untrue statement or alleged untrue statement of a material fact contained in the Current
Report or any Prospectus Supplement or any omission or alleged omission to state therein a material fact required to be stated therein or 
  

 29 

 necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, in
each case, to the extent, but only to the extent, the untrue statement, alleged untrue statement, omission or alleged omission was made in reliance upon, and in conformity with, written information furnished by the Investor to the Company expressly
for inclusion in the Current Report or such Prospectus Supplement. 
 The Investor shall reimburse the Company and each such director,
officer or controlling person promptly upon demand for all legal and other costs and expenses reasonably incurred by the Company or such indemnified persons in investigating, defending against, or preparing to defend against any such claim, action,
suit or proceeding with respect to which it is entitled to indemnification. 
 Section 8.2 Indemnification Procedures.
Promptly after a person receives notice of a claim or the commencement of an action for which the person intends to seek indemnification under Section 8.1, the person will notify the indemnifying party in writing of the claim or commencement of
the action, suit or proceeding; provided, however, that failure to notify the indemnifying party will not relieve the indemnifying party from liability under Section 8.1, except to the extent it has been materially prejudiced by
the failure to give notice. The indemnifying party will be entitled to participate in the defense of any claim, action, suit or proceeding as to which indemnification is being sought, and if the indemnifying party acknowledges in writing the
obligation to indemnify the party against whom the claim or action is brought, the indemnifying party may (but will not be required to) assume the defense against the claim, action, suit or proceeding with counsel satisfactory to it. After an
indemnifying party notifies an indemnified party that the indemnifying party wishes to assume the defense of a claim, action, suit or proceeding, the indemnifying party will not be liable for any legal or other expenses incurred by the indemnified
party in connection with the defense against the claim, action, suit or proceeding except that if, in the opinion of counsel to the indemnifying party, one or more of the indemnified parties should be separately represented in connection with a
claim, action, suit or proceeding, the indemnifying party will pay the reasonable fees and expenses of one separate counsel for the indemnified parties. Each indemnified party, as a condition to receiving indemnification as provided in
Section 8.1, will cooperate in all reasonable respects with the indemnifying party in the defense of any action or claim as to which indemnification is sought. No indemnifying party will be liable for any settlement of any action effected
without its prior written consent. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested (by written notice provided in accordance with Section 9.4) an indemnifying party to reimburse the indemnified
party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated hereby effected without its written consent if (i) such settlement is entered into more than 45 days
after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received written notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such
indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. No indemnifying party will, without the prior written consent of the indemnified party, effect any settlement
of a pending or threatened action with respect to which an indemnified party is, or is informed that it may be, made a party and for which it would be entitled to indemnification, unless the settlement includes an unconditional release of the
indemnified party from all liability and claims which are the subject matter of the pending or threatened action. 
  

 30 

 If for any reason the indemnification provided for in this Agreement is not available to, or is not
sufficient to hold harmless, an indemnified party in respect of any loss or liability referred to in Section 8.1 as to which such indemnified party is entitled to indemnification thereunder, each indemnifying party shall, in lieu of
indemnifying the indemnified party, contribute to the amount paid or payable by the indemnified party as a result of such loss or liability, (i) in the proportion which is appropriate to reflect the relative benefits received by the
indemnifying party, on the one hand, and by the indemnified party, on the other hand, from the sale of Shares which is the subject of the claim, action, suit or proceeding which resulted in the loss or liability or (ii) if the allocation
provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above, but also the relative fault of the indemnifying party, on the one
hand, and the indemnified party, on the other hand, with respect to the statements or omissions which are the subject of the claim, action, suit or proceeding that resulted in the loss or liability, as well as any other relevant equitable
considerations. 
 The remedies provided for in Section 8.1 and this Section 8.2 are not exclusive and shall not limit any rights
or remedies which may otherwise be available to any Indemnified Person at law or in equity. 
 ARTICLE IX 
 MISCELLANEOUS 
 Section 9.1
Fees and Expenses. 
 (i) Each party shall bear its own fees and expenses related to the transactions contemplated by this
Agreement; provided, however, that the Company shall pay, at the Effective Date, all reasonable attorneys’ fees and expenses (exclusive of disbursements and out-of-pocket expenses) incurred by the Investor up to $35,000 in
connection with the preparation, negotiation, execution and delivery of this Agreement, and review of the Registration Statement, the Base Prospectus and the Current Report. In addition, the Company shall pay (x) on the 30th day of the third month in each calendar quarter during the Investment Period, due diligence expenses incurred by the Investor
during the Investment Period equal to $12,500, and (y) all reasonable attorneys’ fees and expenses incurred by the Investor in connection with any amendments, modifications or waivers of this Agreement and the review of all related
documents in connection therewith. The Company shall pay all U.S. federal, state and local stamp and other similar transfer and other taxes and duties levied in connection with issuance of the Shares pursuant hereto. 
 (ii) If the Company issues a Fixed Request Notice and fails to deliver the Shares to the Investor on the applicable Settlement Date and such failure
continues for 10 Trading Days, the Company shall pay the Investor, in cash (or, at the option of the Investor, in shares of Common Stock which have not been registered under the Securities Act), as liquidated damages for such failure and not as a
penalty, an amount equal to 2.75% of the payment required to be paid by the Investor on such Settlement Date (i.e., the sum of the Fixed Amount Requested and the Optional Amount Dollar Amount) for the initial 30 days following such Settlement Date
until the Shares have been delivered, and an additional 1.375% for each additional 30-day period thereafter until the Shares have been delivered, which amount shall be prorated for such periods less than thirty 30 days. 
  

 31 

 Section 9.2 Specific Enforcement, Consent to Jurisdiction, Waiver of Jury Trial.
(i) The Company and the Investor acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is
accordingly agreed that either party shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement by the other party and to enforce specifically the terms and provisions hereof this being in
addition to any other remedy to which either party may be entitled by law or equity. 
 (i) Each of the Company and the Investor
(a) hereby irrevocably submits to the jurisdiction of the United States District Court and other courts of the United States sitting in the State of New York for the purposes of any suit, action or proceeding arising out of or relating to this
Agreement, and (b) hereby waives, and agrees not to assert in any such suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such court, that the suit, action or proceeding is brought in an inconvenient
forum or that the venue of the suit, action or proceeding is improper. Each of the Company and the Investor consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address in effect for
notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing in this Section 9.2 shall affect or limit any right to serve process in any other manner
permitted by law. 
 (iii) Each of the Company and the Investor hereby waives to the fullest extent permitted by applicable law, any right it
may have to a trial by jury in respect to any litigation directly or indirectly arising out of, under or in connection with this Agreement or the transactions contemplated hereby or disputes relating hereto. Each of the Company and the Investor
(a) certifies that no representative, agent or attorney of any other party has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing waiver and (b) acknowledges that
it and the other parties hereto have been induced to enter into this Agreement by, among other things, the mutual waivers and certifications in this Section 9.2. 
 Section 9.3 Entire Agreement; Amendment. This Agreement, together with the exhibits referred to herein and the Disclosure Schedule, represents the entire agreement of the parties with respect to the
subject matter hereof, and there are no promises, undertakings, representations or warranties by either party relative to subject matter hereof not expressly set forth herein. No provision of this Agreement may be amended other than by a written
instrument signed by both parties hereto. The Disclosure Schedule and all exhibits to this Agreement are hereby incorporated by reference in, and made a part of, this Agreement as if set forth in full herein. 
 Section 9.4 Notices. Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be
in writing and shall be effective (a) upon hand delivery or facsimile (with facsimile machine confirmation of delivery received) at the address or number designated below (if delivered on a business day during normal business hours where such
notice is to be received), or the first business day following such delivery (if 
  

 32 

 delivered other than on a business day during normal business hours where such notice is to be received) or (b) on
the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The address for such communications shall be:

  

			
	If to the Company:	  	Nanogen, Inc.
		  	10398 Pacific Center Court
		  	San Diego, California 92121
		  	Telephone Number: (858) 410-4600
		  	Fax: (858) 410-4949
		  	Attention: Robert Saltmarsh
		
	With copies to:	  	Morgan, Lewis & Bockius LLP
		  	One Market, Spear Street Tower
		  	San Francisco, California 94105
		  	Telephone Number: (415) 442-1000
		  	Fax: (415) 442-1001
		  	Attention: Scott D. Karchmer, Esq.
		
	If to the Investor:	  	Azimuth Opportunity Ltd.
		  	c/o Hedge Fund Services (BVI) Ltd.
		  	P.O. Box 761, James Frett Building
		  	Wickham’s Cay 1, Road Town
		  	Tortola, British Virgin Islands
		  	Telephone Number: (284) 494-6046 x232
		  	Fax: (284) 494-6898
		  	Attention: Michael Kane
		
	With copies to:	  	Greenberg Traurig, LLP
		  	The MetLife Building
		  	200 Park Avenue
		  	New York, NY 10166
		  	Telephone Number: (212) 801-9200
		  	Fax: (212) 801-6400
		  	Attention: Clifford E. Neimeth, Esq.
		  	                Anthony J. Marsico, Esq.

 Either party hereto may from time to time change its address for notices by giving at least 10 days advance
written notice of such changed address to the other party hereto. 
 Section 9.5 Waivers. No waiver by either party of any
default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any other provisions, condition or requirement hereof nor shall any delay or omission of any
party to exercise any right hereunder in any manner impair the exercise of any such right accruing to it thereafter. No provision of this Agreement may be waived other than in a written instrument signed by the party against whom enforcement of such
waiver is sought. 
  

 33 

 Section 9.6 Headings. The article, section and subsection headings in this Agreement
are for convenience only and shall not constitute a part of this Agreement for any other purpose and shall not be deemed to limit or affect any of the provisions hereof. 
 Section 9.7 Successors and Assigns. The Investor may not assign this Agreement to any person without the prior consent of the Company, in the Company’s sole discretion. This Agreement shall be
binding upon and inure to the benefit of the parties and their successors and assigns. The assignment by a party to this Agreement of any rights hereunder shall not affect the obligations of such party under this Agreement. 
 Section 9.8 Governing Law. This Agreement shall be governed by and construed in accordance with the internal procedural and
substantive laws of the State of New York, without giving effect to the choice of law provisions of such state. 
 Section 9.9
Survival. The representations and warranties of the Company and the Investor contained in Articles III and IV and the covenants contained in Article V shall survive the execution and delivery hereof until the termination of this
Agreement, and the agreements and covenants set forth in Article VIII of this Agreement shall survive the execution and delivery hereof. 
 Section 9.10 Counterparts. This Agreement may be executed in counterparts, all of which taken together shall constitute one and the same original and binding instrument and shall become effective when all counterparts
have been signed by each party and delivered to the other parties hereto, it being understood that all parties hereto need not sign the same counterpart. In the event any signature is delivered by facsimile transmission, the party using such means
of delivery shall cause four additional executed signature pages to be physically delivered to the other parties within five days of the execution and delivery hereof. 
 Section 9.11 Publicity. On or after the Effective Date, the Company may issue a press release or otherwise make a public statement or announcement with respect to this Agreement or the transactions
contemplated hereby or the existence of this Agreement (including, without limitation, by filing a copy of this Agreement with the Commission); provided, however, that prior to issuing any such press release, or making any such public
statement or announcement, the Company shall consult with the Investor on the form and substance of such press release or other disclosure. 
 Section 9.12 Severability. The provisions of this Agreement are severable and, in the event that any court of competent jurisdiction shall determine that any one or more of the provisions or part of the provisions
contained in this Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of this Agreement, and
this Agreement shall be reformed and construed as if such invalid or illegal or unenforceable provision, or part of such provision, had never been contained herein, so that such provisions would be valid, legal and enforceable to the maximum extent
possible. 
 Section 9.13 Further Assurances. From and after the date of this Agreement, upon the request of the Investor
or the Company, each of the Company and the Investor shall execute and 
  

 34 

 deliver such instrument, documents and other writings as may be reasonably necessary or desirable to confirm and carry
out and to effectuate fully the intent and purposes of this Agreement. 
 [Signature Page Follows] 
  

 35 

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

			
	NANOGEN, INC.:
		
	By:	 	 /s/ ROBERT W.
SALTMARSH

	Name:	 	Robert W. Saltmarsh
	Title:	 	Chief Financial Officer
	
	AZIMUTH OPPORTUNITY LTD.:
		
	By:	 	 /s/ DEIRDRE M.
MCCOY

	Name:	 	Deirdre M. McCoy
	Title:	 	Corporate Secretary

  

 36 

 ANNEX A TO THE 
 COMMON STOCK PURCHASE AGREEMENT 
 DEFINITIONS 
 (a) “Acceptable Financing” shall have the meaning assigned to such term in Section 5.6(ii) hereof. 
 (b) “Aggregate Limit” shall have the meaning assigned to such term in Section 1.1 hereof. 
 (c) “Base Prospectus” shall mean the Company’s prospectus, dated June 28, 2005, included in the Registration Statement.

 (d) “Broker-Dealer” shall have the meaning assigned to such term in Section 5.13 hereof. 
 (e) “Bylaws” shall have the meaning assigned to such term in Section 4.3 hereof. 
 (f) “Charter” shall have the meaning assigned to such term in Section 4.3 hereof. 
 (g) “Code” shall mean the Internal Revenue Code of 1986, as amended. 
 (h) “Commission” shall mean the Securities and Exchange Commission or any successor entity. 
 (i) “Commission Documents” shall mean (1) all reports, schedules, registrations, forms, statements, information and other documents
filed by the Company with the Commission pursuant to the reporting requirements of the Exchange Act, including all material filed pursuant to Section 13(a) or 15(d) of the Exchange Act, which have been filed by the Company since January 1,
2006 and which hereafter shall be filed by the Company during the Investment Period, including, without limitation, the Current Report and the Form 10-K filed by the Company for its fiscal year ended December 31, 2005 (the “2005 Form
10-K”), (2) the Registration Statement, as the same may be amended from time to time, the Prospectus and each Prospectus Supplement, and (3) all information contained in such filings and all documents and disclosures that have
been and heretofore shall be incorporated by reference therein. 
 (j) “Common Stock” shall have the meaning assigned to
such term in the Recitals. 
 (k) “Current Market Price” means, with respect to any particular measurement date, the closing
price of a share of Common Stock as reported on the Trading Market for the Trading Day immediately preceding such measurement date. 
 (l)
“Current Report” shall have the meaning assigned to such term in Section 1.4 hereof. 
 (m) “Discount
Price” shall have the meaning assigned to such term in Section 2.2 hereof. 

 (n) “Effective Date” shall mean May 10, 2006. 
 (o) “Environmental Laws” shall have the meaning assigned to such term in Section 4.15 hereof. 
 (p) “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. 
 (q) “Event Period” shall have the meaning assigned to such term in Section 7.2 hereof. 
 (r) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission
thereunder. 
 (s) “FDA” shall have the meaning assigned to such term in Section 4.14(a) hereof. 
 (t) “Fixed Amount Requested” shall mean the amount of a Fixed Request requested by the Company in a Fixed Request Notice delivered
pursuant to Section 2.1 hereof. 
 (u) “Fixed Request” means the transactions contemplated under Sections 2.1 through
2.8 of this Agreement. 
 (v) “Fixed Request Amount” means the actual amount of proceeds received by the Company pursuant to
a Fixed Request under this Agreement. 
 (w) “Fixed Request Exercise Date” shall have the meaning assigned to such term in
Section 2.2 hereof. 
 (x) “Fixed Request Notice” shall have the meaning assigned to such term in Section 2.1
hereof. 
 (y) “Free Writing Prospectus” shall mean “Free Writing Prospectus” as defined in Rule 405 of the
Securities Act. 
 (z) “GAAP” shall mean generally accepted accounting principles in the United States of America as applied
by the Company. 
 (aa) “Governmental Licenses” shall have the meaning assigned to such term in Section 4.14(a) hereof.

 (bb) “Indebtedness” shall have the meaning assigned to such term in Section 4.9 hereof. 
 (cc) “Integration Notice” shall have the meaning assigned to such term in Section 5.6(ii) hereof. 
 (dd) “Intellectual Property” shall have the meaning assigned to such term in Section 4.14(b) hereof. 

 (ee) “Investment Period” shall have the meaning assigned to such term in
Section 7.1 hereof. 
 (ff) “Italian Asset Purchase Agreement” shall mean the Asset Purchase Agreement, dated
April 19, 2006, between the Company, Nanogen Advanced Diagnostics, S.r.L., a company organized in accordance with the laws of Italy, and Amplimedical S.p.A., a company organized in accordance with the laws of Italy, as amended from time to
time. 
 (gg) “Market Capitalization” shall be calculated on the Trading Day preceding the applicable Pricing Period and
shall be the product of (x) the number of shares of Common Stock outstanding and (y) the closing bid price of the Common Stock, both as determined by Bloomberg Financial LP using the DES and HP functions. 
 (hh) “Material Adverse Effect” shall mean any condition, occurrence, state of facts or event having, or insofar as reasonably can be
foreseen would likely have, any effect on the business, operations, properties or condition (financial or otherwise) of the Company that is material and adverse to the Company and its Subsidiaries, taken as a whole, and/or any condition, occurrence,
state of facts or event that would prohibit or otherwise materially interfere with or delay the ability of the Company to perform any of its obligations under this Agreement. 
 (ii) “Material Change in Ownership” shall mean the occurrence of any one or more of the following: (i) the acquisition by any
person, including any syndicate or group deemed to be a “person” under Section 13(d)(3) of the Exchange Act, of beneficial ownership, directly or indirectly, through a purchase, merger or other acquisition transaction or series of
transactions, of shares of capital stock or other securities of the Company entitling such person to exercise, upon an event of default or default or otherwise, 50% or more of the total voting power of all series and classes of capital stock and
other securities of the Company entitled to vote generally in the election of directors, other than any such acquisition by the Company, any Subsidiary of the Company or any employee benefit plan of the Company; (ii) any consolidation or merger
of the Company with or into any other person, any merger of another person into the Company, or any conveyance, transfer, sale, lease or other disposition of all or substantially all of the properties and assets of the Company to another person,
other than (a) any such transaction (x) that does not result in any reclassification, conversion, exchange or cancellation of outstanding shares of capital stock of the Company and (y) pursuant to which holders of capital stock of the
Company immediately prior to such transaction have the entitlement to exercise, directly or indirectly, 50% or more of the total voting power of all shares of capital stock of the Company entitled to vote generally in the election of directors of
the continuing or surviving person immediately after such transaction or (b) any merger which is effected solely to change the jurisdiction of incorporation of the Company and results in a reclassification, conversion or exchange of outstanding
shares of Common Stock solely into shares of common stock of the surviving entity; (iii) during any consecutive two-year period, individuals who at the beginning of that two-year period constituted the Board of Directors (together with any new
directors whose election to the Board of Directors, or whose nomination for election by the stockholders of the Company, was approved by a vote of a majority of the directors then still in office who were either directors at the beginning of such
period or whose elections or nominations for election were previously so approved) cease for any reason to constitute a majority of the Board of Directors then in office; or (iv) the Company is liquidated or dissolved or a resolution is passed
by the Company’s 

 stockholders approving a plan of liquidation or dissolution of the Company. Beneficial ownership shall be determined in
accordance with Rule 13d-3 promulgated by the SEC under the Exchange Act. The term “person” shall include any syndicate or group which would be deemed to be a “person” under Section 13(d)(3) of the Exchange Act. 

(jj) “Material Agreements” shall have the meaning assigned to such term in Section 4.16 hereof. 
 (kk) “Multiplier” shall have the meaning assigned to such term in Section 2.3 hereof. 
 (ll) “NASDAQ” means the NASDAQ National Market or any successor thereto. 
 (mm) “Optional Amount” means the transactions contemplated under Sections 2.9 through 2.11 of this Agreement. 
 (nn) “Optional Amount Dollar Amount” shall mean the actual amount of proceeds received by the Company pursuant to the exercise of an
Optional Amount under this Agreement. 
 (oo) “Optional Amount Notice” shall mean a notice sent to the Company with regard
to the Investor’s election to exercise all or any portion of an Optional Amount, as provided in Section 2.11 hereof and substantially in the form attached hereto as Exhibit B. 
 (pp) “Other Financing” shall have the meaning assigned to such term in Section 5.6(ii) hereof. 
 (qq) “Other Financing Notice” shall have the meaning assigned to such term in Section 5.6(ii) hereof. 
 (rr) “Plan” shall have the meaning assigned to such term in Section 4.22 hereof. 
 (ss) “Pricing Period” shall mean a period of 10 consecutive Trading Days commencing on the day of delivery of a Fixed Request Notice
(or, if the Fixed Request Notice is delivered after 9:30 a.m. (New York time), on the next Trading Day), or such other period mutually agreed upon by the Investor and the Company. 
 (tt) “Promissory Note” means the convertible promissory note issued by the Company pursuant to the Italian Asset Purchase Agreement, a
form of which is attached as Schedule 3.3(a) to the Italian Asset Purchase Agreement. 
 (uu) “Prospectus” shall mean the
Base Prospectus, as supplemented by any Prospectus Supplement. 
 (vv) “Prospectus Supplement” shall mean any prospectus
supplement to the Base Prospectus filed with the Commission pursuant to Rule 424(b) under the Securities Act. 
 (ww) “Reduction
Notice” shall have the meaning assigned to such term in Section 2.8 hereof. 

 (xx) “Registration Statement” shall mean collectively the registration statement on Form
S-3, Commission File Number 333-125975, filed by the Company with the Commission under the Securities Act, and any new registration statement on Form S-3 relating to such registration statement (No. 333-125975) filed by the Company with the
Commission pursuant to Rule 462(b) under the Securities Act, for the registration of the Shares, as such Registration Statement may be amended and supplemented from time to time. 
 (yy) “Restricted Period” shall have the meaning assigned to such term in Section 5.10 hereof. 
 (zz) “Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations of the Commission thereunder.

 (aaa) “Settlement Date” shall have the meaning assigned to such term in Section 2.7. hereof. 
 (bbb) “Shares” shall mean shares of Common Stock issuable to the Investor upon exercise of a Fixed Request and shares of Common Stock
issuable to the Investor upon exercise of an Optional Amount. 
 (ccc) “Significant Subsidiary” means any Subsidiary of the
Company that would constitute a Significant Subsidiary of the Company within the meaning of Rule 1-02 of Regulation S-X of the Commission. 
 (ddd) “SOXA” shall have the meaning assigned to such term in Section 4.6(c) hereof. 
 (eee)
“Subsidiary” shall mean any corporation or other entity of which at least a majority of the securities or other ownership interest having ordinary voting power (absolutely or contingently) for the election of directors or other
persons performing similar functions are at the time owned directly or indirectly by the Company and/or any of its other Subsidiaries. 
 (fff) “Total Commitment” shall have the meaning assigned to such term in Section 1.1 hereof. 
 (ggg)
“Threshold Price” is the lowest price at which the Company may sell Shares during the applicable Pricing Period as set forth in a Fixed Request Notice (not taking into account the applicable percentage discount during such Pricing
Period determined in accordance with Section 2.2); provided, however, that at no time shall the Threshold Price be lower than $1.50 per share unless the Company and the Investor mutually shall agree. 
 (hhh) “Trading Day” shall mean a trading day on the NASDAQ. 
 (iii) “Trading Market” means the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in
question: the American Stock Exchange, the New York Stock Exchange or the NASDAQ National Market. 
 (jjj) “Trading Market
Limit” means that number of shares which, together with the number of shares that are issued or are potentially issuable upon conversion of the Promissory 

 Note in accordance with its terms (as such number of shares potentially issuable thereunder may be reduced upon
prepayment by the Company of all or any portion of the outstanding principal amount thereunder from time-to-time), is one less than 20.0% of the issued and outstanding shares of the Company’s Common Stock as of the date of the Italian Asset
Purchase Agreement, subject to proportional adjustment for stock splits, stock dividends, recapitalizations, reverse stock splits, combinations and the like. 
 (kkk) “VWAP” shall mean the daily volume weighted average price (based on a Trading Day from 9:30 p.m. to 4:00 p.m. (New York time)) of the Company on the NASDAQ as reported by Bloomberg Financial
L.P. using the AQR function. 

 EXHIBIT A TO THE 
 COMMON STOCK PURCHASE AGREEMENT 
 FORM OF FIXED REQUEST NOTICE 
 Reference is made to the Common Stock Purchase Agreement dated as of May 10, 2006, (the “Purchase Agreement”) between Nanogen,
Inc., a corporation organized and existing under the laws of the State of Delaware (the “Company”), and Azimuth Opportunity Ltd., an international business company incorporated under the laws of the British Virgin Islands.
Capitalized terms used and not otherwise defined herein shall have the meanings given such terms in the Purchase Agreement. 
 In accordance
with and pursuant to Section 2.1 of the Purchase Agreement, the Company hereby issues this Fixed Request Notice to exercise a Fixed Request for the Fixed Request Amount indicated below. 
  

					
	Fixed Amount Requested:	    	  

		
	Optional Amount Dollar Amount:	    	  

		
	Pricing Period start date:	    	  

		
	Pricing Period end date:	    	  

		
	Settlement Date:	    	  

		
	Fixed Request Threshold Price:	    	  

		
	Optional Amount Threshold Price:	    	  

		
	Dollar Amount and Number of Shares of Common Stock Currently Unissued under the Registration Statement;	    	  

		
	Dollar Amount and Number of Shares of Common Stock Currently Available under the Aggregate Limit:	    	  

			
	Dated:                     	    	By:	 	  

		    	Name	 	
		    	Title:	 	
			
		    	Address: Facsimile No.	 	

 AGREED AND ACCEPTED 
  

			
	By:	 	  

	Name	 	
	Title:	 	

 EXHIBIT B TO TILE 
 COMMON STOCK PURCHASE AGREEMENT 
 FORM OF OPTIONAL AMOUNT NOTICE 
 To:                                 
  

	Fax#:                            	

 Reference is made to the Common Stock Purchase Agreement
dated as of May 10, 2006 (the “Purchase Agreement”) between Nanogen, Inc., a corporation organized and existing under the laws of the State of Delaware (the “Company”), and Azimuth Opportunity Ltd., an
international business company incorporated under the laws of the British Virgin Islands (the “Investor”). Capitalized terms used and not otherwise defined herein shall have the meanings given such terms in the Purchase Agreement.

 In accordance with and pursuant to Section 2.1 of the Purchase Agreement, the Investor hereby issues this Optional Amount Notice to
exercise a Optional Amount for the Optional Amount Dollar Amount indicated below. 
  

					
	Optional Amount Dollar Amount Exercised	  	  

		
	Number of Shares to be purchased	  	  

		
	VWAP on the date hereof:	  	  

		
	Discount Price:	  	  

		
	Settlement Date:	  	  

		
	Threshold Price:	  	  

		
		  	  

			
	        Dated:                    	  	By:	 	  

		  	Name	 	
		  	Title:	 	
			
		  	Address: Facsimile No.	 	

 EXHIBIT C TO THE 
 COMMON STOCK PURCHASE AGREEMENT 
 OPINION OF OUTSIDE COUNSEL 
 [Company Counsel’s Letterhead] 
 1. The
execution, delivery and performance of the Purchase Agreement have been duly authorized by all necessary corporate action of the Company, and the Purchase Agreement has been duly executed and delivered by the Company. 

 EXHIBIT D TO THE 
 COMMON STOCK PURCHASE AGREEMENT 
 CERTIFICATE OF THE COMPANY 
 CLOSING CERTIFICATE 
 May
    , 2006 
 The undersigned, of Nanogen, Inc., a corporation organized and existing under the laws of the State
of Delaware (the “Company”), delivers this certificate in connection with the Common Stock Purchase Agreement, dated as of May 10, 2006 (the “Agreement”), by and between the Company and Azimuth Opportunity
Ltd., an international business company incorporated under the laws of the British Virgin Islands (the “Investor”), and hereby certifies on the date hereof that (capitalized terms used herein without definition have the meanings
assigned to them in the Agreement): 
 1. Attached hereto as Exhibit A is a true, complete and correct copy of the Certificate of
Incorporation of the Company as filed with the Secretary of State of the State of Delaware. The Certificate of Incorporation of the Company has not been further amended or restated, and no document with respect to any amendment to the Certificate of
Incorporation of the Company has been filed in the office of the Secretary of State of the State of Delaware since the date shown on the face of the state certification relating to the Company’s Certificate of Incorporation, which is in full
force and effect on the date hereof, and no action has been taken by the Company in contemplation of any such amendment or the dissolution, merger or consolidation of the Company. 
 2. Attached hereto as Exhibit B is a true and complete copy of the Bylaws of the Company, as amended and restated through, and as in full force
and effect on, the date hereof, and no proposal for any amendment, repeal or other modification to the Bylaws of the Company has been taken or is currently pending before the Board of Directors or stockholders of the Company. 
 3. The Board of Directors of the Company has approved the transactions contemplated by the Agreement; said approval has not been amended, rescinded or
modified and remains in full force and effect as of the date hereof. 
 4. Each person who, as an officer of the Company, or as
attorney-in-fact of an officer of the Company, signed (i) the Agreement and (ii) any other document delivered prior hereto or on the date hereof in connection with the transactions contemplated by the Agreement, was duly elected, qualified
and acting as such officer or duly appointed and acting as such attorney-in-fact, and the signature of each such person appearing on any such document is his genuine signature. 
 IN WITNESS WHEREOF, I have signed my name as of the date first above written. 
  

			
	  

	By:	 	
	Title:	 	

 EXHIBIT E TO THE 
 COMMON STOCK PURCHASE AGREEMENT 
 COMPLIANCE CERTIFICATE 
 In connection with the issuance of shares of common stock of Nanogen, Inc. (the “Company”) pursuant to the Fixed Request Notice, dated
                    , delivered by the Company to Azimuth Opportunity Ltd. (the “Investor”) pursuant to Article II of the
Common Stock Purchase Agreement, dated May 10, 2006, by and between the Company and the Investor (the “Agreement”), the undersigned hereby certifies as follows: 
 1. The undersigned is the duly elected
                     of the Company. 
 2. Except as set forth in the attached Schedule, the representations and warranties of the Company set forth in Article IV of the Agreement (i) that are not qualified by “materiality” or “Material Adverse Effect”
are true and correct in all material respects as of [insert Fixed Request Exercise Date] and as of the date hereof with the same force and effect as if made on such dates, except to the extent such representations and warranties are as of another
date, in which case, such representations and warranties are true and correct in all material respects as of such other date and (ii) that are qualified by “materiality” or “Material Adverse Effect” are true and correct as
of [insert Fixed Request Exercise Date] and as of the date hereof with the same force and effect as if made on such dates, except to the extent such representations and warranties are as of another date, in which case, such representations and
warranties are true and correct as of such other date. 
 3. The Company has performed, satisfied and complied in all material respects with
all covenants, agreements and conditions required by the Agreement to be performed, satisfied or complied with by the Company at or prior to [insert Fixed Request Exercise Date] and the date hereof. 
 Capitalized terms used but not otherwise defined herein shall have the meanings assigned to them in the Agreement. 
 The undersigned has executed this Certificate this [        ] day of
[                    ], 200[    ]. 
  

			
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

 EXHIBIT F TO THE 
 COMMON STOCK PURCHASE AGREEMENT 
 OPINION FROM OUTSIDE COUNSEL 
 [Company Counsel’s Letterhead] 
  

	 	1.	The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware, with the requisite corporate power and authority to
conduct its business as it is described in the Registration Statement and the Prospectus, to execute and deliver the Purchase Agreement, and to issue, sell and deliver the Shares as contemplated by the Purchase Agreement. The Company is duly
qualified to do business in the State of California. 

  

	 	2.	Each of the Company’s United States subsidiaries listed in Schedule I hereto is duly qualified to do business as a foreign corporation and is in good standing in every
jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary except for any jurisdiction in which the failure to be so qualified would not have a Material Adverse Effect.

  

	 	3.	The issuance and sale of the Shares by the Company to you pursuant to the Purchase Agreement, assuming such issuance and sale occurred on the date hereof, do not (a) violate
the provisions of any U.S. federal, New York or California state law, rule or regulation applicable to the Company or the Delaware General Corporation Law; (b) violate the provisions of the Company’s Certificate of Incorporation or the
Bylaws; (c) result in any breach or default under (nor constitute any event that, with notice, lapse of time, or both, would result in any breach or default under), or conflict with any provision of any agreement or instrument filed as an
exhibit to the Registration Statement; or (d) violate any judgment, decree, order or award of any court, governmental body or arbitrator specifically naming the Company or any of its Subsidiaries of which we have knowledge, except in all such
cases for such violations, defaults, breaches as would not, individually or in the aggregate, have a Material Adverse Effect. 

  

	 	4.	No consent, approval, authorization, order, registration or qualification of or with any U.S. federal, or New York or California state court or government agency or under the
Delaware General Corporation Law statute is required for the issuance and sale of the Shares by the Company, or for the consummation of the Company of the transactions contemplated by the Purchase Agreement, except for such consents, approvals,
authorization, orders, registrations or qualifications as may be required under (x) state securities or “blue sky” laws or (y) the rules and regulations of the National Association of Securities Dealers, Inc., as to which we
express no opinion. 

	 	5.	The Registration Statement has become effective under the Securities Act and, to our knowledge, no stop order suspending its effectiveness has been issued by the Commission, nor, to
our knowledge, is a proceeding for that purpose pending before or contemplated by the Commission. 

  

	 	6.	Based upon the information disclosed to us, the Registration Statement, as of the date it was declared effective, and the Prospectus as of the date it was filed with the Commission
(except as to the financial statements, schedules and notes thereto, other financial and accounting data and statistical data derived therefrom, information about internal controls over financial reporting, and information about the Investor,
disclosed therein, as to which we express no opinion) complied as to form in all material respects with the requirements of the Act and the Rules and Regulations thereunder. 

  

	 	7.	When the terms (including the sales price and number of Shares) of the issuance of the Shares are determined by resolution of the Company’s Board of Directors, or a duly
authorized committee thereof, in accordance with the Purchase Agreement, the Company’s Certificate of Incorporation, the Company’s Bylaws and the laws of the State of Delaware, and upon receipt of payment for the Shares in the manner
contemplated by the Purchase Agreement in legal consideration of not less than the aggregate par value for such Shares, and upon execution, issuance and delivery of certificates representing the Shares (and notation of such issuance in the stock
transfer records of the Company) and assuming the Company completes all other actions and proceedings required on its part to be taken prior to the issuance and delivery of the Shares pursuant to the Purchase Agreement, the Shares will be duly
authorized, validly issued, fully paid and nonassessable and free of preemptive rights arising under the Company’s Certificate of Incorporation or Bylaws or the laws of the State of Delaware. 

  

	 	8.	The Company is not an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 

 In addition to the foregoing opinions, we advise you supplementally that we have participated in conferences with officers and other representatives of
the Company, at which conferences the contents of the Registration Statement and the Prospectus were discussed and, although we are not passing upon and do not assume responsibility for the accuracy, completeness or fairness of the statements
contained in the Registration Statement and the Prospectus, on the basis of the foregoing and the information disclosed to us, but without independent check and verification, and relying as to materiality on representations and statements of
officers and other representatives of the Company, we confirm to you that no fact has come to the attention of those lawyers in our firm that participated in the preparation of the Registration Statement and the Prospectus that has led them to
believe that (i) the Registration Statement, at the time it became effective, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein not
misleading, (ii) the Prospectus, at the date hereof, contained (or contains) any untrue statement of a material fact or omitted to state 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 (it being understood that we do not express any belief with respect to the financial statements,
schedules, and notes, other financial and accounting data, statistical data derived therefrom, information about internal controls over financial reporting, information about the Investor or the method of distribution of the Shares included in the
Registration Statement or the Prospectus or with respect to the validity, enforceability or non-infringement of any patent, copyright or trade mark or name). 

 EXHIBIT G TO THE 
 COMMON STOCK PURCHASE AGREEMENT 
 OPINION FROM IN-HOUSE COUNSEL 
 [Company Letterhead] 
  

	1.	The issuance and sale of the Shares by the Company pursuant to the Purchase Agreement will not, as of the date hereof: (i) conflict with, or constitute a default (or an event
which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any material agreement, mortgage, deed of trust, indenture, note, bond, license, lease
agreement, instrument or obligation that was filed with the Commission as an exhibit and to which the Company or any of its Significant Subsidiaries is a party, (ii) create or impose a lien, charge or encumbrance on any property of the Company
under any material agreement that was filed with the Commission as an exhibit and to which the Company or any Significant Subsidiary is a party or by which the Company or any Significant Subsidiary is bound or by which any of its respective
properties or assets are bound, or (iii) to my knowledge, result in a violation of any federal or state order, judgment or decree applicable to the Company or any of its subsidiaries or by which any property or asset of the Company or any of
its subsidiaries are bound or affected, except, in all cases, for such conflicts, defaults, terminations, amendments, acceleration, cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect.

  

	2.	There is no action, suit, claim, investigation or proceeding pending or, to my knowledge, threatened against the Company or any subsidiary which questions the validity of the
Purchase Agreement or the transactions contemplated hereby or any action taken or to be taken pursuant hereto or thereto. Except as set forth in the Commission Documents, there is no action, suit, claim, investigation or proceeding pending or, to my
knowledge, threatened, against or involving the Company, any subsidiary or any of their respective properties or assets and which, if determined adversely to the Company or its subsidiary, would have a Material Adverse Effect.

 EXHIBIT H TO THE 
 COMMON STOCK PURCHASE AGREEMENT 
 BRING-DOWN LETTER FROM OUTSIDE COUNSEL 
 [Company Counsel’s Letterhead] 
  

	1.	The Registration Statement has become effective under the Securities Act and, to our knowledge, no stop order suspending its effectiveness has been issued by the Commission, nor, to
our knowledge, is a proceeding for that purpose pending before or contemplated by the Commission. Any required filing of the prospectus supplement pursuant to Rule 424 under the Securities Act (the “Prospectus Supplement”) has been made in
the manner and within the time period required by such Rule 424. 

  

	2.	Based on our inquiry of the Company’s [                    ], no
facts have come to our attention that cause us to believe that any of the opinions expressed in paragraphs 3, 4, 6 and 7 of our opinion letter to you dated [    ], 2006, or any of the statements made in the penultimate paragraph
- i.e. 10b-5 negative assurances paragraph of such opinion letter, are not true and correct as of the date hereof. For the purpose of “bring-down” opinions for paragraph 6 and the 10b-5 negative assurances paragraph in the
[    ], 2006 opinion letter, the definition of “Prospectus” shall mean the Base Prospectus and the Prospectus Supplement 

 EXHIBIT I TO THE 
 COMMON STOCK PURCHASE AGREEMENT 
 BRING-DOWN LETTER FROM IN-HOUSE COUNSEL 
 [Company Letterhead] 
  

	1.	No facts have come to my attention that cause me to believe that any of the opinions expressed in paragraphs 1 and 2 of my opinion letter to you dated
[                    ], 2006 are not true and correct as of the date hereof.

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