Document:

exv10w2

EXHIBIT 10.2

FIRST LOAN MODIFICATION AGREEMENT

     This First Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as
of October 19, 2009, and is effective as of September 30, 2009 by and among SILICON VALLEY BANK, a
California corporation, with its principal place of business at 3003 Tasman Drive, Santa Clara,
California 95054 and with a loan production office located at 380 Interlocken Crescent, Suite 600,
Broomfield, Colorado 80021 (“Bank”), TRUSTWAVE HOLDINGS, INC., a Delaware corporation (“Holdings”),
TW MIRAGE NETWORKS, INC., a Texas corporation (“TW”), TRUSTWAVE INTERMEDIATE, INC., a Delaware
corporation (“Intermediate”), and TW VERICEPT CORPORATION, a Delaware corporation (formerly known
as “TrustWave Acquisition, Inc.) (“Vericept” and individually and collectively, jointly and
severally, with Holdings, TW and Intermediate, “Borrower”).

1. DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and
obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to a loan
arrangement dated as of August 19, 2009, evidenced by, among other documents, a certain Amended and
Restated Loan and Security Agreement dated as of August 19, 2009, between Borrower and Bank (as
amended, the “Loan Agreement”). Capitalized terms used but not otherwise defined herein shall have
the same meaning as in the Loan Agreement.

2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as
described in the Loan Agreement and the Intellectual Property Collateral as described in a certain
Intellectual Property Security Agreement dated August 19, 2009, by Vericept in favor of Bank (the
“IP Security Agreement and together with any other collateral security granted to Bank, the
“Security Documents”). Hereinafter, the Security Documents, together with all other documents
evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”.

Hereinafter, the Security Documents, together with all other documents evidencing or securing the
Obligations shall be referred to as the “Existing Loan Documents”.

3. DESCRIPTION OF CHANGE IN TERMS.

	 	A.	 	Modifications to Loan Agreement.

	 	1	 	The Loan Agreement shall be amended by deleting the following,
appearing as Section 6.2(a)(ii) thereof, in its entirety:

     “(ii) as soon as available, but no later than one hundred fifty
(150) days after the last day of Borrower’s fiscal year (on or before
August 15, 2009 with respect Borrower’s fiscal year ending December
31, 2007 and on or before September 30, 2009 with respect Borrower’s
fiscal year ending December 31, 2008), audited consolidated financial
statements prepared under GAAP, consistently applied, together with
an unqualified opinion on the financial statements from an
independent certified public accounting firm acceptable to Bank in
its reasonable discretion;”

and inserting in lieu thereof the following:

     “(ii) as soon as available, but no later than one hundred fifty
(150) days after the last day of Borrower’s fiscal year (on or before
August 15, 2009 with respect Borrower’s fiscal year ending December
31, 2007 and on or before October 31, 2009 with respect Borrower’s
fiscal year ending December 31, 2008), audited consolidated financial
statements prepared under GAAP,

 

 

consistently applied, together with an unqualified opinion on
the financial statements from an independent certified public
accounting firm acceptable to Bank in its reasonable discretion;”

	 	2	 	The Compliance Certificate appearing as Exhibit C to
the Loan Agreement is hereby replaced with the Compliance Certificate attached
as Exhibit A hereto.

4. FEES. Borrower shall reimburse Bank for all legal fees and expenses incurred in
connection with this amendment to the Existing Loan Documents.

5. RATIFICATION OF INTELLECTUAL PROPERTY SECURITY AGREEMENT. Vericept hereby ratifies,
confirms and reaffirms, all and singular, the terms and conditions of the IP Security Agreement,
and acknowledges, confirms and agrees that the IP Security Agreement contains an accurate and
complete listing of all Intellectual Property Collateral as defined in the IP Security Agreement,
and shall remain in full force and effect.

6. RATIFICATION OF PERFECTION CERTIFICATES. Holdings hereby ratifies, confirms and
reaffirms, all and singular, the terms and disclosures contained in a certain Perfection
Certificate dated as of August 19, 2009, by Holdings and delivered to Bank (the “Holdings
Perfection Certificate”), and acknowledges, confirms and agrees the disclosures and information
Holdings provided to Bank in the Holdings Perfection Certificate have not changed, as of the date
hereof. TW hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures
contained in a certain Perfection Certificate dated as of August 19, 2009, by TW and delivered to
Bank (the “TW Perfection Certificate”), and acknowledges, confirms and agrees the disclosures and
information TW provided to Bank in the TW Perfection Certificate have not changed, as of the date
hereof. Intermediate hereby ratifies, confirms and reaffirms, all and singular, the terms and
disclosures contained in a certain Perfection Certificate dated as of August 19, 2009, by
Intermediate and delivered to Bank (the “Intermediate Perfection Certificate”), and acknowledges,
confirms and agrees the disclosures and information Intermediate provided to Bank in the
Intermediate Perfection Certificate have not changed, as of the date hereof. Vericept hereby
ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a
certain Perfection Certificate dated as of August 19, 2009, by Vericept and delivered to Bank (the
“Intermediate Perfection Certificate”), and acknowledges, confirms and agrees the disclosures and
information Intermediate provided to Bank in the Intermediate Perfection Certificate have not
changed, as of the date hereof.

7. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary
to reflect the changes described above.

8. RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all
terms and conditions of all security or other collateral granted to the Bank, and confirms that the
indebtedness secured thereby includes, without limitation, the Obligations.

9. NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no
offsets, defenses, claims, or counterclaims against Bank with respect to the Obligations, or
otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or
counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby
expressly WAIVED and Borrower hereby RELEASES Bank from any liability thereunder.

10. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing
Obligations, Bank is relying upon Borrower’s representations, warranties, and agreements, as set
forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan
Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force
and effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Loan
Modification Agreement in no way shall obligate Bank to make any future modifications to the
Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the
Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of
Existing Loan Documents, unless the party is expressly released by Bank in writing. No maker will
be released by virtue of this Loan Modification Agreement.

 

 

11. CONFIDENTIALITY. Bank may use confidential information for the development of
databases, reporting purposes, and market analysis, so long as such confidential information is
aggregated and anonymized prior to distribution unless otherwise expressly permitted by Borrower.
The provisions of the immediately preceding sentence shall survive the termination of the Loan
Agreement.

12. COUNTERSIGNATURE. This Loan Modification Agreement shall become effective only when it shall have been executed by Borrower and Bank.

[The remainder of this page is intentionally left blank —

signature page(s) to follow]

 

 

     This Loan Modification Agreement is executed as a sealed instrument as of the date first written above.

	 	 	 	 	 	 	 

	BORROWER:	 	BANK:
	 
	 	 	 	 	 	 
	TRUSTWAVE HOLDINGS, INC.	 	SILICON VALLEY BANK
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Name:

	 	 	 	Name:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Title:

	 	 	 	Title:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	TW MIRAGE NETWORKS, INC.	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	TRUSTWAVE INTERMEDIATE, INC.	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	TW VERICEPT CORPORATION	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

     The undersigned, TRUSTWAVE LIMITED, a company registered in England & Wales, ratifies,
confirms and reaffirms, all and singular, the terms and conditions of a certain Deed of Guarantee
in favor of Bank dated September 25, 2008 (the “Guarantee”) and acknowledges, confirms and agrees
that the Guarantee shall remain in full force and effect and shall in no way be limited by the
execution of this Loan Modification Agreement, or any other documents, instruments and/or
agreements executed and/or delivered in connection therewith.

	 	 	 	 	 

	TRUSTWAVE LIMITED	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 

 

 

     The undersigned, TRUSTWAVE HOLDINGS LIMITED, a company registered in England & Wales,
ratifies, confirms and reaffirms, all and singular, the terms and conditions of a certain Deed of
Guarantee in favor of Bank dated November 27, 2007 (the “Guarantee”) and acknowledges, confirms and
agrees that the Guarantee shall remain in full force and effect and shall in no way be limited by
the execution of this Loan Modification Agreement, or any other documents, instruments and/or
agreements executed and/or delivered in connection therewith.

	 	 	 	 	 

	TRUSTWAVE HOLDINGS LIMITED	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 

 

 

EXHIBIT A

EXHIBIT C — COMPLIANCE CERTIFICATE

	 	 	 	 	 

	TO:

	 	SILICON VALLEY BANK
	 	Date:                     
	FROM:

	 	TRUSTWAVE HOLDINGS, INC.	 	 
	 

	 	TW MIRAGE NETWORKS, INC.	 	 
	 

	 	TRUSTWAVE INTERMEDIATE, INC.	 	 
	 

	 	TW VERICEPT CORPORATION	 	 

The undersigned authorized officers of TRUSTWAVE HOLDINGS, INC., TW MIRAGE NETWORKS, INC.,
TRUSTWAVE INTERMEDIATE, INC. and TW VERICEPT CORPORATION (individually and collectively, jointly
and severally, the “Borrower”) certify that under the terms and conditions of the Loan and Security
Agreement between Borrower and Bank (the “Agreement”), (1) Borrower is in complete compliance for
the period ending _______________ with all required covenants except as noted below, (2) there are
no Events of Default, (3) all representations and warranties in the Agreement are true and correct
in all material respects on this date except as noted below; provided, however, that such
materiality qualifier shall not be applicable to any representations and warranties that already
are qualified or modified by materiality in the text thereof; and provided, further that those
representations and warranties expressly referring to a specific date shall be true, accurate and
complete in all material respects as of such date, (4) Borrower, and each of its Subsidiaries, has
timely filed all required tax returns and reports, and Borrower has timely paid all foreign,
federal, state and local taxes, assessments, deposits and contributions owed by Borrower except as
otherwise permitted pursuant to the terms of Section 5.8 of the Agreement, and (5) no Liens have
been levied or claims made against Borrower relating to unpaid employee payroll or benefits of
which Borrower has not previously provided written notification to Bank. Attached are the required
documents supporting the certification. The undersigned certify that these are prepared in
accordance with generally GAAP consistently applied from one period to the next except as explained
in an accompanying letter or footnotes. The undersigned acknowledge that no borrowings may be
requested at any time or date of determination that Borrower is not in compliance with any of the
terms of the Agreement, and that compliance is determined not just at the date this certificate is
delivered. Capitalized terms used but not otherwise defined herein shall have the meanings given
them in the Agreement.

Please indicate compliance status by circling Yes/No under “Complies” column.

	 	 	 	 	 
	Reporting Covenant	 	Required	 	Complies
	Monthly consolidated and consolidating financial statements with Compliance Certificate

	 	Monthly within 30 days
	 	Yes   No
	Annual financial statement (CPA Audited)

	 	FYE within 150 days**
	 	Yes   No
	Board Approved Projections

	 	Annually, within 30 days after year end
	 	Yes   No
	Borrowing Base Certificate (together with A/R & A/P Agings, and deferred revenue report)

	 	Monthly within 30 days
	 	Yes   No
	Audit

	 	Annually
	 	Yes   No

	 	 	 	 	 	 	 
	Financial Covenant	 	Required	 	Actual	 	Complies
	Maintain on a Monthly Basis:
	 	 	 	 	 	 
	(a) Liquidity
	 	1.75:1.0	 	_____:1.0	 	Yes   No
	(b) EBITDA*
	 	$_________	 	$________	 	Yes   No
	(c) Capital Expenditures
	 	$3,200,000	 	$_________	 	Yes   No

 

			
	*	 	As set forth in section 6.7(b) of the Loan Agreement.
	 
	**	 	8/15/2009 for FY 2007; 10/31/09 for FY 2008exv10w3

Exhibit 10.3

CONSENT AND SECOND LOAN MODIFICATION AGREEMENT

     This Consent and Second Loan Modification Agreement (this “Loan Modification Agreement”) is
entered into as of January 6, 2010, by and among SILICON VALLEY BANK, a California corporation,
with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a
loan production office located at 380 Interlocken Crescent, Suite 600, Broomfield, Colorado 80021
(“Bank”), TRUSTWAVE HOLDINGS, INC., a Delaware corporation (“Holdings”), TRUSTWAVE INTERMEDIATE,
INC., a Delaware corporation (“Intermediate”), and TW VERICEPT CORPORATION, a Delaware corporation
(formerly known as “TrustWave Acquisition, Inc.,” “Vericept” and individually and collectively,
jointly and severally, with Holdings, and Intermediate, “Borrower”).

     Borrower provided evidence of the merger of a co-borrower TW MIRAGE NETWORKS, INC., a Texas
corporation and wholly owned subsidiary of Holdings, into Holdings as of December 28, 2009.

1. DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and
obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to a loan
arrangement dated as of August 19, 2009, evidenced by, among other documents, a certain Amended and
Restated Loan and Security Agreement dated as of August 19, 2009, between Borrower and Bank, and as
amended by that certain First Loan Modification Agreement dated October 19, 2009 between Borrower
and Bank (as amended, the “Loan Agreement”). Capitalized terms used but not otherwise defined
herein shall have the same meaning as in the Loan Agreement.

2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as
described in the Loan Agreement and the Intellectual Property Collateral as described in a certain
Intellectual Property Security Agreement dated August 19, 2009, by Vericept in favor of Bank (the
“IP Security Agreement and together with any other collateral security granted to Bank, the
“Security Documents”). Hereinafter, the Security Documents, together with all other documents
evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”.

Hereinafter, the Security Documents, together with all other documents evidencing or securing the
Obligations shall be referred to as the “Existing Loan Documents”.

3. CONSENT TO ACQUISITION. Borrower has notified Bank that Holdings intends to acquire
certain of the assets, and assume certain of the liabilities, of BitArmor Systems, Inc., a Delaware
corporation (“BitArmor”), as more particularly set forth in that certain Plan of Reorganization and
Asset Purchase Agreement (the “Acquisition Agreement”) dated as of ___________, 2010, between
Holdings and BitArmor, a copy of which is attached hereto as Exhibit A and specifically
incorporated by reference herein (the “Acquisition”). In reliance upon the representations of
Borrower herein and therein, Bank hereby consents to the consummation of the Acquisition and waives
compliance by Borrower with the terms of Sections 7.3(a), and 7.4 of the Loan Agreement which would
otherwise prohibit the Acquisition, in each case, however, subject to each of the following terms
and conditions:

	 	A.	 	The Acquisition shall be consummated upon terms substantially similar to those
contained in the Acquisition Agreement and without any material amendment or
modification thereto (it being agreed that any amendment or modification to the
Acquisition which may be adverse to the interests of Bank shall be deemed to be
material).
	 
	 	B.	 	No Event of Default shall have occurred prior to the Closing of the Acquisition
and no Event of Default shall exist immediately prior to, and after giving effect to,
the Closing of the Acquisition.

 

 

	 	C.	 	The aggregate consideration paid by Holdings in the Acquisition shall not
exceed the Purchase Price, as currently defined in the Acquisition Agreement.

	 	D.	 	The liabilities assumed by Holdings pursuant to the Acquisition shall not
exceed the Assumed Liabilities, as currently defined in the Acquisition Agreement.
	 
	 	E.	 	Borrower shall deliver to Bank true and complete copies of all documents,
instruments and agreements executed and/or delivered in connection with the Acquisition
promptly after the Closing of the Acquisition.

4. DESCRIPTION OF CHANGE IN TERMS.

	 	A.	 	Modifications to Loan Agreement.

	 	1	 	The Loan Agreement shall be amended by deleting the following,
appearing as Sections 6.7(a), (b) and (c) thereof, in its entirety:

     “(a) Liquidity. As of the last day of each month, a
ratio of (i) Quick Assets to (ii) the sum of all Obligations and
liabilities of Borrower to Bank, plus the aggregate amount of any
issued Letters of Credit by Bank, of at least 1.75 to 1.0.

     (b) EBITDA. Borrower shall achieve EBITDA of: (i) a
loss no greater than Five Hundred Thousand Dollars (($500,000)) for
(A) the month ending June 30, 2009, (B) the two (2) months ending
July 31, 2009, (C) the three (3) months ending August 31, 2009, (D)
the four (4) months ending September 30, 2009 and (E) the five (5)
months ending October 31, 2009, (ii) a loss no greater than Two
Hundred Fifty Thousand Dollars (($250,000)) for the six (6) months
ending November 30, 2009, (iii) at least zero ($0.00) (no loss) for
(A) the seven (7) months ending December 31, 2009, (B) the eight (8)
months ending January 31, 2010, (C) the nine (9) months ending
February 28, 2010, (D) the ten (10) months ending March 31, 2010, and
(E) the eleven (11) months ending April 30, 2010, (iv) at least Seven
Hundred Fifty Thousand Dollars ($750,000) for the twelve (12) months
ending May 31, 2010, (v) at least One Million Two Hundred Fifty
Thousand Dollars ($1,250,000) for the twelve (12) months ending June
30, 2010, (vi) at least One Million Seven Hundred Fifty Thousand
Dollars ($1,750,000) for the twelve (12) months ending July 31, 2010
and (vii) at least Two Million Seven Hundred Fifty Thousand Dollars
($2,750,000) for the twelve (12) months ending August 31, 2010.

     (c) Capital Expenditures. Borrower shall not permit its
capital expenditures (as determined in accordance with GAAP, but
excluding expenses incurred in connection with the acquisition of
Vericept by Holdings) to exceed $3,200,000 in any fiscal year.”

	 	 	 	and inserting in lieu thereof the following:

     “(a) Liquidity. Commencing with December 31, 2009 and
as of the last day of each month thereafter, Borrower’s unrestricted
and unencumbered cash and Cash Equivalents maintained with Bank and
Bank’s Affiliates, of at least Ten Million Dollars ($10,000,000).

2

 

     (b) Intentionally Omitted.

     (c) Intentionally Omitted.”

	 	2	 	The Compliance Certificate appearing as Exhibit C to
the Loan Agreement is hereby replaced with the Compliance Certificate attached
as Exhibit B hereto.

	 	B.	 	Within ninety (90) days after this Loan Modification Agreement, Borrower shall
move all funds contained in those certain accounts maintained at PNC Bank, N.A.
(Account Numbers, 1017027626 and 1021809946) to accounts maintained at Bank and/or
Bank’s Affiliates. Borrower hereby acknowledges and agrees that failure to move such
accounts within the specific time period shall constitute an Event of Default under the
Loan Agreement as to which no grace period shall apply.

5. FEES. Borrower shall reimburse Bank for all legal fees and expenses incurred in
connection with this amendment to the Existing Loan Documents.

6. RATIFICATION OF INTELLECTUAL PROPERTY SECURITY AGREEMENT. Vericept hereby ratifies,
confirms and reaffirms, all and singular, the terms and conditions of the IP Security Agreement,
and acknowledges, confirms and agrees that the IP Security Agreement contains an accurate and
complete listing of all Intellectual Property Collateral as defined in the IP Security Agreement,
and shall remain in full force and effect.

7. RATIFICATION OF PERFECTION CERTIFICATES. Holdings hereby ratifies, confirms and
reaffirms, all and singular, the terms and disclosures contained in a certain Perfection
Certificate dated as of August 19, 2009, by Holdings and delivered to Bank (the “Holdings
Perfection Certificate”), and acknowledges, confirms and agrees the disclosures and information
Holdings provided to Bank in the Holdings Perfection Certificate have not changed, as of the date
hereof. Intermediate hereby ratifies, confirms and reaffirms, all and singular, the terms and
disclosures contained in a certain Perfection Certificate dated as of August 19, 2009, by
Intermediate and delivered to Bank (the “Intermediate Perfection Certificate”), and acknowledges,
confirms and agrees the disclosures and information Intermediate provided to Bank in the
Intermediate Perfection Certificate have not changed, as of the date hereof. Vericept hereby
ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a
certain Perfection Certificate dated as of August 19, 2009, by Vericept and delivered to Bank (the
“Intermediate Perfection Certificate”), and acknowledges, confirms and agrees the disclosures and
information Intermediate provided to Bank in the Intermediate Perfection Certificate have not
changed, as of the date hereof.

8. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary
to reflect the changes described above.

9. RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all
terms and conditions of all security or other collateral granted to the Bank, and confirms that the
indebtedness secured thereby includes, without limitation, the Obligations.

10. NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no
offsets, defenses, claims, or counterclaims against Bank with respect to the Obligations, or
otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or
counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby
expressly WAIVED and Borrower hereby RELEASES Bank from any liability thereunder.

11. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing
Obligations, Bank is relying upon Borrower’s representations, warranties, and agreements, as set
forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan
Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force
and effect. Bank’s agreement to modifications to the existing

3

 

Obligations pursuant to this Loan
Modification Agreement in no way shall obligate Bank to make any future modifications to the
Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the
Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of
Existing Loan Documents, unless the party is expressly released by Bank in writing. No maker will
be released by virtue of this Loan Modification Agreement.

12. CONFIDENTIALITY. Bank may use confidential information for the development of
databases, reporting purposes, and market analysis, so long as such confidential information is
aggregated and anonymized prior to distribution unless otherwise expressly permitted by Borrower.
The provisions of the immediately preceding sentence shall survive the termination of the Loan
Agreement.

13. COUNTERSIGNATURE. This Loan Modification Agreement shall become effective only when it
shall have been executed by Borrower and Bank.

[The remainder of this page is intentionally left blank — signature page(s) to follow]

4

 

     This Loan Modification Agreement is executed as a sealed instrument as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 

	BORROWER:	 	 	 	BANK:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	TRUSTWAVE HOLDINGS, INC.	 	 	 	SILICON VALLEY BANK	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Robert J. McCullen
	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Robert J. McCullen
	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	Chief Executive Officer
	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	TRUSTWAVE INTERMEDIATE, INC.	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Robert J. McCullen
 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Robert J. McCullen	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	Chief Executive Officer	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	TW VERICEPT CORPORATION	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Robert J. McCullen
 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Robert J. McCullen	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	Chief Executive Officer	 	 	 	 	 	 	 	 

 

 

     The undersigned, TRUSTWAVE LIMITED, a company registered in England & Wales, ratifies,
confirms and reaffirms, all and singular, the terms and conditions of a certain Deed of Guarantee
in favor of Bank dated September 25, 2008 (the “Guarantee”) and acknowledges, confirms and agrees
that the Guarantee shall remain in full force and effect and shall in no way be limited by the
execution of this Loan Modification Agreement, or any other documents, instruments and/or
agreements executed and/or delivered in connection therewith.

TRUSTWAVE LIMITED

	 	 	 	 	 

	By:

	 	/s/ Robert J. McCullen
 

	 	 
	 
	 	 	 	 
	Name:

	 	Robert J. McCullen	 	 
	 
	 	 	 	 
	Title:

	 	Chief Executive Officer and President	 	 

     The undersigned, TRUSTWAVE HOLDINGS LIMITED, a company registered in England & Wales,
ratifies, confirms and reaffirms, all and singular, the terms and conditions of a certain Deed of
Guarantee in favor of Bank dated November 27, 2007 (the “Guarantee”) and acknowledges, confirms and
agrees that the Guarantee shall remain in full force and effect and shall in no way be limited by
the execution of this Loan Modification Agreement, or any other documents, instruments and/or
agreements executed and/or delivered in connection therewith.

TRUSTWAVE HOLDINGS LIMITED

	 	 	 	 	 

	By:

	 	/s/ Robert J. McCullen
 

	 	 
	 
	 	 	 	 
	Name:

	 	Robert J. McCullen	 	 
	 
	 	 	 	 
	Title:

	 	Chief Executive Officer and President	 	 

 

 

EXHIBIT A

See attached copy of the Plan of Reorganization and Asset Purchase Agreement

 

 

EXHIBIT B

EXHIBIT C — COMPLIANCE CERTIFICATE

	 	 	 	 	 

	TO:

	 	SILICON VALLEY BANK
	 	Date:                     
	FROM:

	 	TRUSTWAVE HOLDINGS, INC.	 	 
	 

	 	TRUSTWAVE INTERMEDIATE, INC.	 	 
	 

	 	TW VERICEPT CORPORATION	 	 

The undersigned authorized officers of TRUSTWAVE HOLDINGS, INC., TRUSTWAVE INTERMEDIATE, INC. and
TW VERICEPT CORPORATION (individually and collectively, jointly and severally, the “Borrower”)
certify that under the terms and conditions of the Loan and Security Agreement between Borrower and
Bank (the “Agreement”), (1) Borrower is in complete compliance for the period ending
_______________ with all required covenants except as noted below, (2) there are no Events of
Default, (3) all representations and warranties in the Agreement are true and correct in all
material respects on this date except as noted below; provided, however, that such materiality
qualifier shall not be applicable to any representations and warranties that already are qualified
or modified by materiality in the text thereof; and provided, further that those representations
and warranties expressly referring to a specific date shall be true, accurate and complete in all
material respects as of such date, (4) Borrower, and each of its Subsidiaries, has timely filed all
required tax returns and reports, and Borrower has timely paid all foreign, federal, state and
local taxes, assessments, deposits and contributions owed by Borrower except as otherwise permitted
pursuant to the terms of Section 5.8 of the Agreement, and (5) no Liens have been levied or claims
made against Borrower relating to unpaid employee payroll or benefits of which Borrower has not
previously provided written notification to Bank. Attached are the required documents supporting
the certification. The undersigned certify that these are prepared in accordance with generally
GAAP consistently applied from one period to the next except as explained in an accompanying letter
or footnotes. The undersigned acknowledge that no borrowings may be requested at any time or date
of determination that Borrower is not in compliance with any of the terms of the Agreement, and
that compliance is determined not just at the date this certificate is delivered. Capitalized
terms used but not otherwise defined herein shall have the meanings given them in the Agreement.

Please indicate compliance status by circling Yes/No under “Complies” column.

	 	 	 	 	 
	Reporting Covenant	 	Required	 	Complies
	Monthly consolidated and consolidating financial statements
with Compliance Certificate

	 	Monthly within 30 days
	 	Yes       No
	 
	 	 	 	 
	Annual financial statement (CPA Audited)

	 	FYE within 150 days*
	 	Yes       No
	 
	 	 	 	 
	Board Approved Projections

	 	Annually, within 30 days after year end
	 	Yes       No
	 
	 	 	 	 
	Borrowing Base Certificate (together with A/R & A/P Agings,
and deferred revenue report)

	 	Monthly within 30 days
	 	Yes       No
	 
	 	 	 	 
	Audit

	 	Annually
	 	Yes       No

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Financial Covenant	 	Required	 	Actual	 	Complies
	Maintain on a Monthly Basis:
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 
	Liquidity
	 	$	10,000,000	 	 	$	                    	 	 	Yes     No

 

			
	*	 	8/15/2009 for FY 2007; 10/31/09 for FY 2008

 

 

Schedule 1 to Compliance Certificate

Financial Covenants of Borrower

Dated: ____________________

In the event of a conflict between this Schedule and the Loan Agreement, the terms of the Loan
Agreement shall control.

I. LIQUIDITY (Section 6.7(a))

	 	 	 	 	 	 	 	 	 

	A.
	 	Borrower's unrestricted and unencumbered cash and Cash Equivalents maintained at Bank and Bank’s  Affiliates	 	$	                    	 

Is line A equal to or greater than $10,000,000?

Compliance:

	 	 	 

	_______ No, not in compliance

	 	_______ Yes, in compliance

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