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Exhibit 10.13    
    

 
 

LOAN AGREEMENT    
    

        THIS LOAN AGREEMENT is entered into as of November 1, 2000, by and between Mukesh Bajaj, an individual residing at 6537 Aitken Drive, Oakland, CA 94611
("Borrower"), and LECG Holding Company, LLC, a California limited liability company having its principal office at 2000 Powell Street, Suite 600,
Emeryville, CA 94608 (the "Company"). Certain definitions are set forth in Section 4 below. 

        In
consideration of the mutual covenants and agreements hereinafter set forth, the parties hereby agree as follows: 

1.     LOAN  

        1.1.    Loan    

        On
the date hereof, the Company will make a loan (the "Loan") to Borrower in the principal amount of TWO HUNDRED FIFTY THOUSAND DOLLARS
($250,000), said Loan to be due and payable the earliest of the following events to occur: (i) a Sale of the Company; (ii) one year after the closing of the Company's first Public
Offering; (iii) ten (10) years from the date hereof; or (iv) sixty (60) days after the date Borrower is no longer employed by any LECG Entity. The Loan shall be evidenced
by a promissory note of Borrower (the "Note"), dated the date hereof and in substantially the form of Exhibit A
attached hereto (the terms and provisions of which Note are incorporated herein by reference). 

        1.2.    Use of Loan Proceeds    

        The
proceeds of the Loan shall be used only for the purchase of 249.133 Class A Preferred Units and 86,667 Common Units (the "Purchased
Units") of the Company, pursuant to the terms of the Purchase Agreement. 

        1.3.    Collateral    

        As
security for the full and timely payment and performance of this Agreement and the Secured Obligations, Borrower shall grant to the Company a first priority security interest in and
lien on the Collateral. Concurrently with the execution and delivery of this Agreement, Borrower shall deliver to the Secretary of the Company ("Escrow
Agent"): 

	(a)
	joint
escrow instructions in the form of Exhibit B attached hereto (the "Joint Escrow
Instructions");

	(b)
	certificate(s)
evidencing the Purchased Units, together with an assignment separate from certificate, executed by Borrower (with the date and number of Purchased Units left blank);
and

	(c)
	all
other evidence satisfactory to the Company that all actions that the Company deems necessary or advisable to establish, preserve and protect the first priority lien granted to the
Company have been made and taken. 

        The
Escrow Agent shall hold such Purchased Units pursuant to the Joint Escrow Instructions, by which Escrow Agent shall be authorized to take all such actions and to effectuate all such
transfers and/or releases of the Collateral as are in accordance with the terms of this Agreement. The Collateral shall be released from escrow upon full payment of the Secured Obligations. 

 

2.     REPRESENTATIONS AND WARRANTIES OF BORROWER  

        In order to induce the Company to enter into this Agreement and to make the Loan, Borrower hereby makes the following representations and warranties to the
Company, which representations and warranties shall survive the execution and delivery hereof and of the Note. 

        2.1.    Authority Relative to this Agreement; Non-Contravention    

        Borrower
has the legal capacity to enter into this Agreement. Neither the execution and delivery of this Agreement by Borrower, the consummation by Borrower of the transactions
contemplated hereby nor compliance by Borrower with any of the provisions hereof shall (i) result in a violation or breach of, or constitute (with or without due notice or lapse of time or both
a default (or give rise to any right of termination, cancellation or acceleration) under any note, bond, mortgage, indenture, lease, contract, agreement or other instrument or obligation to which
Borrower is a party or by which he or any of his properties or assets is bound; (ii) violate any order, writ, injunction, decree, statute, rule or regulation applicable to Borrower, or
(iii) require any filing with or notice to any court, government agency or other governmental authority; except in the case of clause (ii) or
(iii), for violations, breaches, or defaults that would not in the aggregate have a material adverse effect on the financial condition of Borrower, and that shall not
impair the effectiveness of the transactions contemplated hereby. 

        2.2.    Binding Obligation    

        This
Agreement has been duly and validly executed and delivered by Borrower and constitutes a valid and binding agreement of Borrower, enforceable against Borrower in accordance with its
terms, except as such enforcement may be limited by bankruptcy, conservatorship, receivership, insolvency, moratorium or similar laws affecting creditors' rights generally or the rights of creditors
of individuals or by general principles of equity. 

        2.3.    Insolvency    

        There
are no attachments, executions or assignments for the benefit of creditors, or voluntary or involuntary proceedings in bankruptcy, or under any other debtor relief laws, pending
or, to the knowledge of Borrower, threatened, against Borrower. 

        2.4.    Litigation    

        There
is no action, order, writ, injunction, judgment or decree pending or outstanding or, to Borrower's knowledge, threatened, against Borrower with respect to or against or potentially
affecting any of the transactions contemplated hereby, or which is reasonably likely to result in a material adverse effect on the financial condition of Borrower. 

        2.5.    Taxes    

        Borrower
has filed all tax returns and reports required by any governmental authority to be filed by Borrower, and such returns and reports are true and correct. Borrower has paid all
taxes, assessments and other government charges imposed upon him or his income or properties, or upon any part thereof, other than those presently payable without penalty or interest. 

3.     EVENTS OF DEFAULT AND REMEDIES  

        3.1.    Events of Default    

        The
occurrence of any one or more of the following events shall constitute an "Event of Default" hereunder: (a) Borrower shall fail
to pay, when due, any sum payable under the Note, and such failure shall continue for five (5) Business Days (as defined in Section 5.10) after written
notice that such payment is past due; (b) any representation or warranty made by or on behalf of Borrower herein shall 

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prove
to have been incorrect or misleading or breached in any respect on or as of any date as of which made; (c) Borrower shall at any time fail to observe, satisfy or perform any of the
covenants or agreements contained in this Agreement or the Note to be observed or performed on his part; or (d) if, pursuant to or within the meaning of the United States Bankruptcy Code or any
other federal or state law relating to insolvency or relief of debtors (a "Bankruptcy Law"), Borrower shall (i) commence a voluntary case or
proceeding; (ii) consent to the entry of an order for relief against it in an involuntary case; (iii) consent to the appointment of a trustee, receiver, assignee, liquidator or similar
official; (iv) make an assignment for the benefit of its creditors; or (v) admit in writing its inability to pay its debts as they become due; or (e) if a court of competent
jurisdiction enters an order or decree under any Bankruptcy Law that (i) is for relief against Borrower in an involuntary case, or (ii) appoints a trustee, receiver, assignee, liquidator
or similar official for Borrower or substantially all of Borrower's properties. 

        3.2.    Rights and Remedies of the Company    

        Upon
the occurrence of any Event of Default, the Company may, at its option, exercise any one or more of the following rights and remedies: (a) declare the entire unpaid principal
amount of the Note, all interest accrued and unpaid thereon, and all other amounts payable under this Agreement to be accelerated, and to be immediately due and payable, whereupon the Note, all such
accrued interest, and all such amounts shall become and be immediately due and payable; and (b) in addition to the foregoing, and not in substitution therefor, exercise any one or more of the
rights and remedies exercisable by the Company under other provisions of this Agreement, under the Note or provided by applicable law (including, without limitation, the Uniform Commercial Code as in
effect in California). 

        3.3.    Sale of Collateral    

        (a)   If
at any time an Event of Default shall have occurred and be continuing, then, in addition to having the rights set forth in
Section 3.2, the Company may, to the extent permitted by law: 

        (i)    apply
any cash held by it hereunder in the manner provided in Section 3.4; and 

        (ii)     if
there shall be no such cash or if the cash so applied shall be insufficient to pay in full the items specified in such
Section 3.4, collect, receive, appropriate and realize upon the Purchased Units or any part thereof, and sell, assign, contract to sell or otherwise dispose of and
deliver the Collateral or any part thereof, in one or more portions, at public or private sale or at any broker's board, on any securities exchange or elsewhere, for cash, upon credit or for future
delivery, and at such price or prices as the Company may deem best, and the Company may (except as otherwise provided by law) be the purchaser of any or all of the Collateral so sold and thereafter
may hold the same, absolutely, free from any right or claim of whatsoever kind. 

        (b)   In
the event of a sale as aforesaid, the Company is authorized, at any such sale, if it deems it advisable so to do, to restrict the number of prospective bidders or
purchasers and/or further restrict such prospective bidders or purchasers 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 resale of the Pledged Stock, and may otherwise require that such sale be conducted subject to restrictions as to such other matters as the Company may deem necessary in order that
such sale may be effected in such manner as to comply with all applicable state and federal securities laws. Upon any such sale the Company shall have the right to deliver, assign and transfer to the
purchaser thereof the Pledged Stock so sold. 

        (c)   Borrower
hereby acknowledges that, notwithstanding that a higher price might be obtained for the Pledged Stock at a public sale than at a private sale or sales, the
making of a public sale of the Pledged Stock is subject to registration requirements under federal and state securities laws and similar other legal restrictions compliance with which would require
such actions on the part of Borrower, would entail such expenses, and would subject the Company, any underwriter through whom the 

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Pledged
Stock may be sold and any controlling person of any thereof to such liabilities, as would make a public sale of the Pledged Stock impractical. Accordingly, Borrower hereby agrees that private
sales made by the Company in accordance with the provisions of this Section 3.3 may be at prices and on other terms less favorable to the seller than if the Pledged
Stock were sold at public sale, and that the Company shall not have any obligation to take any steps in order to permit the Pledged Stock to be at a public sale, at a private sale being considered or
deemed to be a sale in a commercially reasonable manner. 

        (d)   Each
purchaser at any such sale shall hold the property sold, absolutely, free from any claim or right of whatsoever kind, including any equity or right of redemption of
Borrower. Upon any sale of the Collateral by the Company hereunder (whether by virtue of the power of sale herein granted, pursuant to judicial process or otherwise), the receipt of the Company or the
agent thereof making the sale shall be a sufficient discharge to the purchaser or purchasers of the Collateral so sold, and such purchaser or purchasers shall not be obligated to see to the
application of any part of the purchase money paid over to such the Company or agent or be answerable in any way for the misapplication or nonapplication thereof. the Company shall give Borrower not
less than ten (10) days written notice of their intention to make any such public or private sale. Such notice, in case of public sale, shall state the time and place fixed for such sale, and,
in case of sale at broker's board, on a securities exchange, or elsewhere, shall state the board, exchange or other location at which such sale is to be made and the day on which the Collateral, or
that portion thereof so being sold, will first be offered for sale at such location, and such notice shall be deemed to be reasonable notification of such matters. 

        (e)   Any
such public sale shall be held at such time or times within the ordinary business hours and at such place or places as the Company may fix in the notice of such
sale. At any sale the Collateral may be sold in one lot as an entirety or in parts, as the Company may determine, provided, that, subject to considerations of commercial reasonableness, the Company
shall give appropriate consideration to selling only so much of the Pledged Stock as may be necessary to satisfy the Secured Obligations and related costs as described in
Section 3.4. The Company shall not be obligated to make any sale pursuant to any such notice. the Company may, without notice or publication, adjourn any sale or
cause the same to be adjourned 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 adjourned. 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 Company until the selling price is paid by the purchaser thereof, but
the Company 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. 

        (f)    Upon
the occurrence of an Event of Default, the Company or its nominee may exercise any and all rights of conversion, exchange, subscription or any other rights,
privileges or options pertaining to any shares of the Pledged Stock as if it were the absolute owner thereof, including, without limitation, the right to exchange, at its discretion, any or all of the
Pledged Stock upon the merger, consolidation, reorganization, recapitalization or other readjustment of the Issuer, or upon the exercise by the Issuer of any right, privilege or option pertaining to
any such shares of the Pledged Stock, and, in connection therewith, to deposit and deliver any and all of the Pledged Stock with any committee, depository, transfer agent, registrar or other
designated agency upon such terms and conditions as they may determine. The foregoing sentence shall not constitute a waiver of any provision of any of the Loan Documents which would otherwise
restrict the ability of the Issuer to enter into any transaction of merger, consolidation, reorganization, recapitalization or other readjustment. 

        (g)   On
any sale of the Collateral, the Company is hereby authorized to comply with any limitation or restriction in connection with such sale that they may be advised by
counsel is necessary in order to avoid any violation of applicable law or in order to obtain any required approval of the purchaser or purchasers by any governmental regulatory authority or officer or
court. 

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        (h)   Compliance
with the foregoing procedures shall result in such sale or disposition being considered or deemed to have been made in a commercially reasonable manner. 

        3.4.    Application of Proceeds    

        The
proceeds of any collection, recovery, receipt, appropriation, realization or sale of the Collateral as aforesaid shall be applied as follows: 

        (i)    First,
to the payment of all costs and expenses of every kind incurred by the Company in connection therewith or incidental to the care,
safekeeping or otherwise of any of the Collateral, including, without limitation, reasonable attorneys' fees and expenses; 

        (ii)   Second,
to the payment to the Company in satisfaction of the Secured Obligations in such order as the Company shall determine; 

        (iii)  Third,
to the payment of any other amounts required by applicable law; and 

        (iv)  Fourth,
to the payment of any surplus then remaining from such proceeds to Borrower, unless otherwise required by law or directed by a
court of competent jurisdiction. 

4.     DEFINITIONS  

        "Bankruptcy Law" has the meaning specified in Section 3.1. 

        "Buy-Sell Agreement" means the Buy-Sell Agreement among LECG Holding Company, LLC and the unitholders named
therein dated as of the date hereof. 

        "Class A Preferred Units" means any of the Company's Class A Preferred Units, having the rights and preferences set forth in
the LLC Agreement. 

        "Collateral" means (i) the Purchased Units; (ii) all cash, securities, interest, dividends, distributions, rights and other
property at any time and from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Stock; and (iii) to the extent not otherwise
included, all proceeds of any or all of the foregoing. 

        "Common Units" means any of the Company's Class A Preferred Units, having the rights and preferences set forth in the LLC
Agreement. 

        "Escrow Agent" has the meaning specified in Section 1.3. 

        "Event of Default" has the meaning specified in Section 3.1. 

        "LECG Entity" means each of the Company and any of its subsidiaries and their respective subsidiaries. 

        "LLC Agreement" means the Limited Liability Company Agreement among LECG Holding Company, LLC and the unitholders named therein dated as
of the date hereof. 

        "Loan" has the meaning specified in Section 1.1. 

        "Note" has the meaning specified in Section 1.1. 

        "Person" means an individual, a partnership, a corporation, an association, a joint stock company, a trust, a joint venture, an
unincorporated organization or a governmental entity or any department, agency or political subdivision thereof. 

        "Public Offering" means any sale of the common equity securities of the Company (or a successor thereto) pursuant to a firm commitment
underwritten public offering by a reputable underwriter of national stature and an effective registration statement under the Securities Act filed with the Securities and Exchange Commission on
Form S-1 (or a successor form adopted by the Securities and Exchange 

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Commission);
provided that the following shall not be considered a Public Offering: (i) any issuance of common equity securities as consideration for a merger or
acquisition, and (ii) any issuance of common equity securities or rights to acquire common equity securities to employees of the LLC or its Subsidiaries as part of an incentive or compensation
plan. 

        "Purchase Agreement" means the Purchase Agreement among LECG Holding Company, LLC and the purchasers named therein dated as of the date
hereof. 

        "Sale of the Company" means any transaction or series of transactions pursuant to which any Person or group of related Persons, other than
TCEP or an Affiliate of TCEP, in the aggregate acquire(s) (i) equity securities of the Company possessing the voting power (other than voting rights accruing only in the event of a default,
breach or noncompliance) to elect a majority of the Company's Board (whether by merger, consolidation, reorganization, combination, sale or transfer of the Company's equity securities, securitytholder
or voting agreement, proxy, power of attorney or otherwise) or (ii) all or substantially all of the Company's assets determined on a consolidated basis; provided
that a Public Offering shall not constitute a Sale of the Company. 

        "Secured Obligations" means (i) the full and prompt payment when due (whether at the stated maturity, by acceleration, by notice of
prepayment or otherwise) of all obligations and liabilities of Borrower hereunder and under the Note, the Loan Agreement and each of the other Loan Documents and the due performance and compliance by
Borrower with the terms hereof and thereof; and (ii) in the event of any proceeding for the collection or enforcement of any indebtedness, obligations or liabilities referred to in
clause (i) above after an Event of Default shall have occurred and be continuing, the reasonable expenses of retaking, holding, preparing for sale or lease, selling
or
otherwise disposing or realizing on the Collateral (as hereinafter defined), or of any exercise by the Company of its rights hereunder with respect thereto, together with reasonable attorneys' fees
and court costs (all such obligations, liabilities, sums and expenses set forth in this Section 1 being herein collectively referred to as the
"Secured Obligations"). 

        "Unitholder" has the meaning specified in the LLC Agreement. 

5.     MISCELLANEOUS PROVISIONS  

        5.1.    Voting Rights    

        Unless
and until an Event of Default shall have occurred and be continuing, Borrower shall be entitled to exercise any and all voting and other consensual rights and powers pertaining to
the Pledged Stock or any part thereof and the other Collateral; provided, however, that no vote shall be cast or any consent, waiver or
ratification given or any action taken which would violate (or cause or assist Borrower or any other obligor under the Loan Documents to violate) or be inconsistent with any of the terms of this
Agreement or any other Loan Document or which would be reasonably likely to have the effect of impairing the rights, remedies, position or interests of the Company. All such rights of Borrower to vote
and to give consents, waivers and ratifications shall cease in case an Event of Default shall occur and be continuing, and all such rights and powers shall thereupon become vested in the Company, who
shall have the sole and exclusive right and authority to exercise such voting and consensual rights and powers. In such case, Borrower shall execute and deliver all such proxies, powers of attorney
and other instruments as the Company may reasonably request to enable the Company to exercise such rights and powers. 

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        5.2.    Appointment of Agents    

        The
Company shall have the right to appoint one or more agents for the purpose of retaining physical possession of the certificates representing the Pledged Stock, which may be held (in
the discretion of the Company) in the name of Borrower, endorsed or assigned in blank or in favor of the Company or any nominee or nominees of the Company or an agent appointed by the Company. 

        5.3.    Additional Actions and Documents    

        Borrower
shall take or cause to be taken such further actions, shall execute, deliver, and file or cause to be executed, delivered, and filed such further documents and instruments, and
shall obtain such consents as may be necessary or as the Company may reasonably request in order fully to effectuate the purposes, terms, and conditions of this Agreement and the Note, whether before,
at or after the closing of transactions contemplated hereby and thereby or the occurrence of an Event of Default hereunder. 

        5.4.    Notices    

        All
notices, demands, requests, or other communications provided for herein or in the Note shall be in writing and shall be mailed by first-class, registered or certified mail, return
receipt requested, postage prepaid, or transmitted by facsimile or hand delivery, addressed as follows: 

	(a)
	If
to Borrower, at the address set forth above.

	(b)
	If
to the Company: 

LECG
Holding Company, LLC

2000 Powell Street, Suite 600

Emeryville, CA 94608

Attn: Chairman 

with
a copy (which shall not constitute notice) to: 

Folger
Levin & Kahn, LLP

1900 Avenue of the Stars, 28th Floor

Los Angeles, CA 90067

Attention: Carol Kerr 

Each
party may designate by notice in writing a new address to which any notice, demand, request or communication may thereafter be so given, served or sent. Each notice, demand, request or
communication which shall be mailed, delivered or transmitted in the manner described above shall be deemed sufficiently given, served, sent or received for all purposes at such time as it is
delivered to the addressee (with the return receipt, the delivery receipt, or affidavit of messenger being deemed conclusive evidence of such delivery) or at such time as delivery is refused by the
addressee upon presentation. 

        5.5.    Severability    

        If
fulfillment of any provision of this Agreement or the Note or performance of any transaction related thereto, at the time such fulfillment or performance shall be due, shall involve
transcending the limit of validity prescribed by law, then the obligation to be fulfilled or performed shall be reduced to the limit of such validity; and if any clause or provision contained in this
Agreement or the Note operates or would operate prospectively to invalidate this Agreement or the Note, in whole or in part, then such clause or provision only shall be held ineffective, as though not
herein or therein contained, and the remainder of this Agreement or the Note shall remain operative and in full force and effect. 

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        5.6.    Survival    

        It
is the express intention and agreement of the parties hereto that all covenants, agreements, statements, representations, warranties, and indemnities made by Borrower in this
Agreement and the Note shall survive the execution and delivery thereof and the making of all advances and extensions of credit thereunder. 

        5.7.    Waivers    

        No
waiver by the Company of, or consent by the Company to, a variation from the requirements of any provision of this Agreement or the Note shall be effective unless made in a written
instrument duly executed on behalf of the Company by its duly authorized officer, and any such waiver shall be limited solely to those rights or conditions expressly waived. 

        5.8.    Rights Cumulative    

        The
rights and remedies of the Company described in this Agreement and the Note are cumulative and not exclusive of any other rights or remedies which the Company or the then holder of
the Note otherwise would have at law or in equity or otherwise. No notice to or demand on Borrower in any case shall entitle Borrower to any other notice or demand in similar or other circumstances. 

        5.9.    Entire Agreement; Modification; Benefit    

        This
Agreement, the exhibits hereto, and the Note constitute the entire agreement of the parties hereto with respect to the matters contemplated herein, supersede all prior oral and
written agreements with respect to the matters contemplated herein, and may not be modified, deleted or amended except by written instrument executed by the parties. All terms of this Agreement and of
the Note shall be binding upon, and shall inure to the benefit of and be enforceable by, the parties hereto and their respective successors and assigns; provided, however, that Borrower may not assign
or transfer any of its rights or obligations hereunder without the prior written consent of the Company. 

        5.10.    Termination    

        This
Agreement shall terminate upon payment in full of all amounts payable and performance of all other obligations owed by Borrower to the Company under this Agreement and under the
Note. 

        5.11.    Governing Law    

        This
Agreement and the Note, the rights and obligations of the parties hereto, and any claims or disputes relating thereto shall be governed by and construed in accordance with the laws
of the State of California (excluding the choice of law rules thereof). 

        5.12.    Payments    

        If
any payment or performance of the Note or of any of the other obligations under this Agreement becomes due on a day other than a Business Day, the due date shall be extended to the
next succeeding Business Day, and interest thereon (if applicable) shall be payable at the then applicable rate during such extension. For the purposes of this Agreement,
"Business Day" means a day other than a Saturday, Sunday or other day on which commercial banks in the State of California are authorized by law to
close. 

        5.13.    Execution    

        To
facilitate execution, this Agreement may be executed in as many counterparts as may be required; and it shall not be necessary that the signatures of, or on behalf of, each party, or
the signatures of all persons required to bind any party, appear on each counterpart; but it shall be sufficient that the signature of, or on behalf of, each party, or the signatures of the persons
required to bind any party, appear on one or more of the counterparts. All counterparts shall collectively constitute a single agreement. It shall not be necessary in making proof of this Agreement to
produce or account for any particular number of counterparts; but rather any number of counterparts shall be sufficient so long as those counterparts contain the respective signatures of, or on behalf
of, all of the parties hereto. 

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        IN
WITNESS WHEREOF, the undersigned have duly executed this Agreement, or have caused this Agreement to be duly executed on their behalf, as of the day and year first hereinabove set
forth. 

	

 	
LECG HOLDING COMPANY, LLC
	

 	

By:	

/S/ DAVID J. TEECE
 David J. Teece

Chairman of the Board
	

 	
BORROWER
	

 	

/S/ MUKESH BAJAJ
 Mukesh Bajaj

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EXHIBIT A  
    

PROMISSORY NOTE  

SECURED NON-RECOURSE PROMISSORY NOTE  

	$250,000	 	November 1, 2000                

        For
value received, Mukesh Bajaj ("Borrower") promises to pay to the order of LECG Holding Company, LLC, a California limited liability
company (the "Company"), at its offices in Emeryville, California, or such other place as designated in writing by the holder hereof, the aggregate
principal sum of $250,000, or so much thereof as may be outstanding from time to time. 

        This
Note is the Note referred to in that certain Loan Agreement, dated as of the date hereof, between the Company and Borrower (the "Loan
Agreement") and evidences the Loan advanced by the Company to or for the benefit of Borrower under the Loan Agreement. Capitalized terms not defined herein shall have the
meanings given to them in the Loan Agreement. Neither the reference to the Loan Agreement nor any provision thereof shall affect or impair the absolute and unconditional obligation of Borrower to pay
the principal amount outstanding hereunder, together with interest accrued thereon, when due. 

        The
amounts due under this Note are secured solely by a pledge of up to (i) 249.133 Class A Preferred Units and (ii) 86,667 Common Units. This Note is nonrecourse to
Borrower. 

        This
Note shall be paid in full upon the earliest of the following events to occur: (i) a Sale of the Company; (ii) one year after the closing of the Company's first Public
Offering; (iii) sixty (60) days after the date Borrower is no longer employed by any LECG Entity; or (iv) October 31, 2010. 

        Interest
will accrue on the outstanding principal amount of this Note at a rate per annum (computed on the basis of a 360 day year and of the actual number of days elapsed) equal
to 8.00%, compounded annually, (the "Base Rate"), provided that, should an Event of Default exist and be continuing for ten
(10) Business Days, interest shall instead accrue on the outstanding principal balance of this Note from the date of such Event of Default at the rate of the Base Rate plus three percent (3%)
per annum, compounded annually, until such Event of Default is cured or waived or all principal or interest under this Note is paid in full. All payments hereunder shall be made in lawful money of the
United States of America without offset for any amounts owed by the Company to Borrower. 

        The
unpaid principal amount of this Note may be prepaid in whole or in part at any time or times without premium or penalty. Each prepayment shall be applied first to the payment of all
interest and other amounts accrued hereunder on the date of any such prepayment, and the balance of any such prepayment shall be applied to outstanding principal 

        The
Loan Agreement provides for the acceleration of all amounts due hereunder upon the occurrence of an Event of Default and for a discharge of all amounts due hereunder upon the
occurrence of certain events specified therein. 

        The
Company may, upon the occurrence of any Event of Default hereunder, have resort to the Collateral given as security for this Note in any order, and may sell and dispose of such
Collateral in the manner described in the Loan Agreement. 

        The
Maker promises to pay all costs and expenses (including without limitation reasonable attorneys' fees and disbursements) incurred in connection with the collection hereof or the
enforcement by the Company of its rights hereunder or under the Loan Agreement or under any other instrument evidencing or securing the obligation represented by this Note or in the protection or
realization of any collateral now or hereafter given as security for the repayment or performance hereof. 

        No
renewal or extension of this Note, no release or surrender of any collateral given as security for this Note, no release of any Obligor (which term shall include Borrower and all
sureties, guarantors, endorsers, and other persons assuming obligations pursuant to this Note), and no delay in enforcement of this Note or in exercising any right or power hereunder, shall affect the
liability of any Obligor. 

 

        No
single or partial exercise by the Company of any right hereunder, under the Loan Agreement, or under any other agreement given as security for this Note or pertaining hereto, shall
preclude any other or further exercise thereof or the exercise of any other rights. No delay or omission on the part of the Company in exercising any right hereunder shall operate as a waiver of such
right or of any other right under this Note. 

        Whenever
used herein, the words "Borrower" and "Company" and  "Obligor" shall be deemed to include their respective
successors and assigns. 

        Borrower,
or his successor and assigns, expressly agrees that this Note, or any payment hereunder, may be extended from time to time. 

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        This
Note shall be governed by the internal laws, not the laws of conflicts, of the State of California. 

	 	/S/ MUKESH BAJAJ
 Mukesh Bajaj

3

 
 

EXHIBIT B  
    

JOINT ESCROW INSTRUCTIONS  

September 29,
2000                

Secretary

LECG
Holding Company, LLC

2000 Powell Street, Suite 600

Emeryville, CA 94608 

Dear
Sir: 

        As
Escrow Agent for both LECG Holding Company, LLC, a California limited liability company (the "Company"), and the undersigned purchaser
of Units of the Company (the "Borrower"), you are hereby authorized and directed to hold the documents delivered to you pursuant to the terms of that
certain Loan Agreement (the "Loan Agreement") between the Company and the Borrower, to which a copy of these Joint Escrow Instructions is attached as
Exhibit B, in accordance with the instructions set forth in. Capitalized terms used but not otherwise defined shall have the meanings ascribed to such terms in the
Loan Agreement. 

        1.     At
the closing of any sale pursuant to Section 3.3 of the Loan Agreement or pursuant the Repurchase Option set forth in the
Buy-Sell Agreement, you are directed (a) to date the Assignment Separate from Certificate as necessary for the transfer in question, (b) to fill in the number and class of
Units being transferred, and (c) to deliver the same, together with the certificate evidencing the Units to be transferred, to the Company and/or Unitholder(s), as the case may be, in
accordance with the Loan Agreement and the Buy-Sell Agreement, against the simultaneous delivery to you of the purchase price (by check) for the number of Units being purchased pursuant to
the exercise of the Repurchase Option. 

        2.     In
the event the Company or any Unitholder (other than Borrower) exercises the Repurchase Option with respect to the Purchased Units, the Company shall give to Borrower
and you a written notice specifying the number and class of Units to be purchased, the purchase price, and the time for a closing hereunder at the principal office of the Company. Borrower and the
Company hereby irrevocably authorize and direct you to close the transaction contemplated by such notice in accordance with the terms of the notice. 

        3.     Borrower
irrevocably authorizes the Company to deposit with you any certificates evidencing Purchased Units to be held by you hereunder and any additions and
substitutions to the Purchased Units constituting Collateral. Borrower does hereby irrevocably constitute and appoint you as his attorney-in-fact and agent for the term of this
escrow to execute with respect to the Collateral all documents necessary or appropriate to make such Collateral negotiable and to complete any transaction herein contemplated. Subject to the
provisions of this paragraph 3, Borrower shall exercise all rights and privileges of a Unitholder of the Company while the Purchased Units are held by you. 

        4.     Your
duties hereunder may be altered, amended, modified or revoked only by a writing signed by all of the parties hereto. 

        5.     You
are hereby expressly authorized to disregard any and all warnings given by any of the parties hereto or by any other person or corporation and are hereby expressly
authorized to comply with and obey orders, judgments or decrees of any duly approved arbitrator or court of competent jurisdiction. In case you obey or comply with any such order, judgment or decree,
you shall not be liable to any of the parties hereto or to any other person, firm or corporation by reason of such compliance, notwithstanding any such order, judgment or decree being subsequently
reversed, modified, annulled, set aside, vacated or found to have been entered without jurisdiction. 

        6.     You
shall not be liable in any respect on account of the identity, authorities or rights of the parties executing or delivering or purporting to execute or deliver the
Loan Agreement or any documents or papers deposited or called for hereunder. 

        7.     You
shall not be liable for the outlawing of any rights under any applicable statute of limitations with respect to these Joint Escrow Instructions or any documents
deposited with you. 

        8.     You
shall be entitled to employ such legal counsel and other experts as you may deem necessary properly to advise you in connection with your obligations hereunder, may
rely upon the advice of such counsel, and may pay such counsel reasonable compensation therefor. 

        9.     Your
responsibilities as Escrow Agent hereunder shall terminate if you shall cease to be an officer of the Company or if you shall resign by written notice to each party.
In the event of any such termination, the Company shall appoint a successor Escrow Agent. 

        10.   If
you reasonably require other or further instruments in connection with these Joint Escrow Instructions or obligations in respect hereto, the necessary parties hereto
shall join in finishing such instruments. 

        11.   It
is understood and agreed that should any dispute arise with respect to the delivery and/or ownership or right of possession of the Collateral held by you hereunder,
you are authorized and directed to retain in your possession without liability to anyone all or any part of said Collateral until such disputes shall have been settled either by mutual written
agreement of the parties concerned or by a final order, decree or judgment of a duly appointed arbitrator or court of competent jurisdiction after the time for appeal has expired and no appeal has
been perfected, but you shall be under no duty whatsoever to institute or defend any such proceedings. 

        12.   At
the option of either the Company or Borrower, any and all disputes or controversies arising from or respecting this agreement shall be decided by binding arbitration
under the rules of the American Arbitration Association. The arbitration shall require one arbitrator. Arbitration shall take place in California, or any other location mutually agreeable to the
parties. At the request of either party, arbitration proceedings will be conducted in the utmost secrecy. The arbitrator shall be able to decree any and all relief of an equitable nature and to award
damages, with or without an accounting and costs. The decree of judgment of an award rendered by the arbitrator may be entered in any court of competent jurisdiction. 

        13.   Any
notice required or permitted hereunder shall be given in writing and shall be deemed effectively given when delivered, if given by personal delivery: three
(3) business days after the business day of deposit in the United States Post Office, by registered or certified mail with postage and fees prepaid; one (1) business day after the
business day of facsimile transmission, if a confirmation copy is sent via first class mail postage prepaid; or one (1) business day after the business day of deposit with Federal Express or
similar overnight carrier, freight prepaid; in any such case addressed to each of the other parties thereunto entitled at the addresses indicated in the Company's records, or at such other addresses
as a party may designate by ten (10) days' advance written notice to each of the other parties hereto. 

        14.   By
signing these Joint Escrow Instructions, you become a party hereto only for the purpose of said Joint Escrow Instructions; you do not become a party to the Loan
Agreement. 

        15.   This
instrument shall be binding upon and inure to the benefit of the parties hereto, and their respective successors and permitted assigns. 

	

 	

Very truly yours,
	

 	

LECG HOLDING COMPANY, LLC
	

 	

By:	

/S/ DAVID J. TEECE
 David J. Teece

Chairman of the Board
	

 	

BORROWER:
	

 	

/S/ MUKESH BAJAJ
 Mukesh Bajaj
	

ESCROW AGENT:	

 	

 
	

/S/ J. GEOFFREY COLTON
 J. Geoffrey Colton	

 	

 
	

Secretary

LECG Holding Company, Inc.

	

 	

 

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Exhibit 10.13

LOAN AGREEMENT

EXHIBIT A

EXHIBIT BQuickLinks
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EXHIBIT 10.14    
    

 
 

GUARANTY AGREEMENT    
    

        THIS GUARANTY AGREEMENT (as amended, restated, supplemented or otherwise modified, this "Guaranty"), dated as of
June 13, 2002 is made by THOMA CRESSEY FUND VII, L.P., a Delaware limited partnership (the "Guarantor"), in favor of WACHOVIA BANK, NATIONAL
ASSOCIATION (formerly known as First Union National Bank), as Administrative Agent (the "Administrative Agent"), for the ratable benefit of itself and
the financial institutions (the "Lenders") from time to time parties to the Credit Agreement referred to below. 

STATEMENT OF PURPOSE  

        Pursuant to the terms of the Credit Agreement dated as of September 29, 2000 (as amended by the First Amendment and Consent Agreement dated as of
September 20, 2001, the Second Amendment dated as of March 1, 2002, the Third Amendment dated as of the date hereof (the "Third
Amendment") and as may be further amended, restated, supplemented or otherwise modified from time to time, the "Credit
Agreement"), by and among LECG, LLC, a California limited liability company (the "Borrower"), LECG Holding Company, LLC, a
California limited liability company (the "Company"), the Lenders, the Administrative Agent and U.S. Bank National Association, as Documentation Agent,
the Lenders have extended certain credit facilities to the Borrower as more specifically described in the Credit Agreement. 

        The
Borrower is a wholly-owned subsidiary of the Company. The Guarantor, through a wholly-owned affiliate, owns approximately forty-eight percent (48%) of the outstanding preferred
member interests and approximately thirty-nine percent (39%) of the common member interests in the Company, and all Extensions of Credit under the Credit Agreement to the Borrower will inure, directly
or indirectly, to the benefit of the Guarantor. 

        In
connection with the transactions contemplated by the Third Amendment and as a condition precedent thereto, the Lenders have requested that the Guarantor execute and deliver this
Guaranty, and the Guarantor has agreed to do so pursuant to the terms hereof. 

        NOW,
THEREFORE, in consideration of the premises and the mutual agreements set forth herein, and to induce the Administrative Agent and the Lenders to enter into and to make available
Loans pursuant to the Third Amendment, the Guarantor hereby agrees with the Administrative Agent for the ratable benefit of the Administrative Agent and the Lenders as follows: 

        SECTION
1.    Definitions.    Capitalized terms used and not otherwise defined in this Guaranty including the
preambles and recitals hereof, shall have the meanings ascribed to them in the Credit Agreement. 

        SECTION
2.    Terms of the Guaranty.    

        (a)    Guaranty of Obligations of Guarantor.    The Guarantor hereby unconditionally guarantees to the Administrative
Agent for the ratable benefit of itself and the Lenders, and their respective permitted successors, endorsees, transferees and assigns, the prompt payment of the obligations of the Borrower in
connection with and with respect to the total principal amount of the Subsequent Draw, whether now existing or hereafter arising, whether or not from time to time reduced or extinguished (except by
payment thereof) or hereafter increased or incurred, whether enforceable or unenforceable as against the Borrower, whether or not discharged, stayed or otherwise affected by any bankruptcy, insolvency
or other similar law or proceeding, whether created directly with the Administrative Agent or any Lender or acquired by the Administrative Agent or any Lender through assignment or endorsement,
whether matured or unmatured, whether joint or several, as and when the same become due and payable (subject to Section 10(a) hereof), in
accordance with the terms of any such instruments evidencing any such obligations, including all renewals, extensions or modifications thereof, to the maximum aggregate amount of Five Million Dollars
($5,000,000) (the "Guarantor Obligations"). 

 

        (b)    Bankruptcy Limitations on Guarantor.    Notwithstanding anything to the contrary contained to paragraph
(a) above, it is the intention of the Guarantor and the Lenders that, in any proceeding involving the bankruptcy, reorganization, arrangement, adjustment of debts, relief of debtors,
dissolution or insolvency or any similar proceeding with respect to the Guarantor or its assets, the amount of the Guarantor's obligations with respect to the Guarantor Obligations shall be in, but
not in excess of, the maximum amount thereof not subject to avoidance or recovery by operation of applicable
law governing bankruptcy, reorganization, arrangement, adjustment of debts, relief of debtors, dissolution, insolvency, fraudulent transfers or conveyances or other similar laws (including, without
limitation, 11 U.S.C. Section 547, Section 548, Section 550 and other "avoidance" provisions of Title 11 of the United States Code) applicable in any such proceeding to the
Guarantor and this Guaranty (collectively, "Applicable Insolvency Laws"). To that end, but only in the event and to the extent that the Guarantor's
obligations with respect to the Guarantor Obligations or any payment made pursuant to the Guarantor Obligations would, but for the operation of the first sentence of this subsection (b), be subject to
avoidance or recovery in any such proceeding under Applicable Insolvency Laws, the amount of the Guarantor's obligations with respect to the Guarantor's Obligations shall be limited to the largest
amount which, after giving effect thereto, would not, under Applicable Insolvency Laws, render the Guarantor's obligations with respect to the Guarantor Obligations unenforceable or avoidable or
otherwise subject to recovery under Applicable Insolvency Laws. To the extent any payment actually made pursuant to the Guarantor Obligations exceeds the limitation of the first sentence of this
subsection (b) and is otherwise subject to avoidance and recovery in any such proceeding under Applicable Insolvency Laws, the amount subject to avoidance shall in all events be limited to the
amount by which such actual payment exceeds such limitation and the Guarantor Obligations as limited by the first sentence of this subsection (b) shall in all events remain in full force and
effect and be fully enforceable against the Guarantor. The first sentence of this subsection (b) is intended solely to preserve the rights of the Administrative Agent hereunder against the
Guarantor in such proceeding to the maximum extent permitted by Applicable Insolvency Laws and neither the Guarantor, the Borrower, any other Guarantor nor any other Person shall have any right or
claim under such sentence that would not otherwise be available under Applicable Insolvency Laws in such proceeding. 

        SECTION
3.    Nature of Guaranty.    The Guarantor agrees that this Guaranty is a continuing, unconditional guaranty
of payment and performance and not of collection, and that its obligations under this Guaranty shall be primary, absolute and unconditional, irrespective of, and unaffected by: 

        (a)   the
genuineness, validity, regularity, enforceability or any future amendment of, or change in, the Credit Agreement or any other Loan Document or any other agreement,
document or instrument to which the Parent, the Borrower or any Subsidiary thereof is or may become a party; 

        (b)   the
absence of any action to enforce this Guaranty, the Credit Agreement, any Term B Note or any other Loan Document or the waiver or consent by the Administrative Agent
or any Lender with respect to any of the provisions of this Guaranty, the Credit Agreement or any other Loan Document; 

        (c)   the
existence, value or condition of, or failure to perfect its Lien against, any security for or other guaranty of the Guarantor Obligations or any action, or the
absence of any action, by the Administrative Agent or any Lender in respect of such security or guaranty (including, without limitation, the release of any such security or guaranty); 

        (d)   any
structural change in, restructuring of or other similar change of the Parent, the Borrower or any of its Subsidiaries; or 

        (e)   any
other action or circumstances which might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor; 

2

 

it
being agreed by the Guarantor that, subject to the first sentence in Section 2(b) hereof, its obligations under this Guaranty shall not be discharged
until the final indefeasible payment and performance, in full, of the Guarantor Obligations. To the extent permitted by law, the Guarantor expressly waives all rights it may now or in the future have
under any statute (including, without limitation, North Carolina General Statutes Section 26-7, ET SEQ. or similar law), or at law or in equity, or otherwise, to compel the Administrative Agent
or any Lender to proceed in respect of the Guarantor Obligations against the Borrower or any other party or against any security for or other guaranty of the payment and performance of the Guarantor
Obligations before proceeding against, or as a condition to proceeding against, the Guarantor. To the extent permitted by law, the Guarantor further expressly waives and agrees not to assert or take
advantage of any defense based upon the failure of the Administrative Agent or any Lender to commence an action in respect of the Guarantor Obligations against the Borrower, the Guarantor, any other
guarantor or any other party or any security for the payment and performance of the Guarantor Obligations. The Guarantor agrees that any notice or directive given at any time to the Administrative
Agent or any Lender which is inconsistent with the waivers in the preceding two sentences shall be null and void and may be ignored by the Administrative Agent or such Lender, and, in addition, may
not be pleaded or introduced as evidence in any litigation relating to this Guaranty for the reason that such pleading or introduction would be at variance with the written terms of this Guaranty,
unless the Administrative Agent and the Required Lenders have specifically agreed otherwise in writing. The foregoing waivers are of the essence of the transaction contemplated by the Credit Agreement
and the other Loan Documents and, but for this Guaranty and such waivers, the Administrative Agent and Lenders would decline to enter into the Credit Agreement and the other Loan Documents. 

        SECTION
4.    Demand by the Administrative Agent.    In addition to the terms set forth in  Section 3 hereof, and in no
manner imposing any limitation on such terms, subject to Section 10(a)  hereof, if all or any portion of the then outstanding Guarantor Obligations under the Credit Agreement are declared to be
immediately due and payable, then the Guarantor shall,
upon demand in writing therefor by the Administrative Agent to the Guarantor, pay all or such portion of the outstanding Guarantor Obligations then declared due and payable. Payment by the Guarantor
shall be made to the Administrative Agent as soon as reasonably possible, but at least (a) within thirty (30) days of the due date of such payment for any payment due prior to
December 31, 2002, and (b) within five (5) Business Days of the due date of such payment for any payment due on or after December 31, 2002, in immediately available Dollars to an
account designated by the Administrative Agent or at the address referenced herein for the giving of notice to the Administrative Agent or at any other address that may be specified in writing from
time to time by the Administrative Agent. 

        SECTION
5.    Waivers.    In addition to the waivers contained in Section 3  hereof, the Guarantor, to the extent
permitted by law, waives and agrees that it shall not at any time insist upon, plead or in any manner whatever claim or take the benefit or
advantage of, any appraisal, valuation, stay, extension, marshalling of assets or redemption laws, or exemption, whether now or at any time hereafter in force, which may delay, prevent or otherwise
affect the performance by the Guarantor of its obligations under, or the enforcement by the Administrative Agent or the Lenders of, this Guaranty. The Guarantor further hereby waives, to the extent
permitted by Applicable Laws, diligence, presentment, demand, protest and notice (except as specifically required herein) of whatever kind or nature with respect to any of the Guarantor Obligations
and waives, to the extent permitted by Applicable Laws, the benefit of all provisions of law which are or might be in conflict with the terms of this Guaranty. The Guarantor represents, warrants and
agrees that its obligations under this Guaranty are not and shall not be subject to any counterclaims, offsets or defenses of any kind (except the defense of payment in full) against the
Administrative Agent, the Lenders or the Borrower whether now existing or which may arise in the future. 

3

 

        SECTION
6.    Benefits of Guaranty.    The provisions of this Guaranty are for the benefit of the Administrative Agent
and the Lenders and their respective permitted successors, transferees, endorsees and assigns, and nothing herein contained shall impair, as between the Borrower, the Administrative Agent and the
Lenders, the obligations of the Borrower under the Loan Documents. In the event all or any part of the Guarantor Obligations are transferred, endorsed or assigned by the Administrative Agent or any
Lender to any Person or Persons as permitted under the Credit Agreement, any reference to an "Administrative Agent", or "Lender" herein shall be deemed to refer equally to such Person or Persons. 

        SECTION
7.    Modification of Loan Documents etc.    If the Administrative Agent or the Lenders shall at any time or
from time to time, with or without the consent of, or notice to, the Guarantor: 

        (a)   change
or extend the manner, place or terms of payment of, or renew or alter all or any portion of, the Guarantor Obligations; 

        (b)   take
any action under or in respect of the Credit Agreement or the other Loan Documents in the exercise of any remedy, power or privilege contained therein or available
to it at law, in equity or otherwise, or waive or refrain from exercising any such remedies, powers or privileges; 

        (c)   amend
or modify, in any manner whatsoever, the Credit Agreement or the other Loan Documents; 

        (d)   extend
or waive the time for performance by the Guarantor, any other guarantor, the Borrower or any other Person of, or compliance with, any term, covenant or agreement
on its part to be performed or observed under the Credit Agreement or any other Loan Document, or waive such performance or compliance or consent to a failure of, or departure from, such performance
or compliance; 

        (e)   take
and hold security or collateral for the payment of the Guarantor Obligations or sell, exchange, release, dispose of, or otherwise deal with, any property pledged,
mortgaged or conveyed, or in which the Administrative Agent or the Lenders have been granted a Lien, to secure any Debt of the Guarantor, any other guarantor or the Borrower to the Administrative
Agent or the Lenders; 

        (f)    release
anyone who may be liable in any manner for the payment of any amounts owed by the Guarantor, any other guarantor or the Borrower to the Administrative Agent or
any Lender; 

        (g)   modify
or terminate the terms of any intercreditor or subordination agreement pursuant to which claims of other creditors of the Guarantor, any other guarantor or the
Borrower are subordinated to the claims of the Administrative Agent or any Lender; or 

        (h)   apply
any sums by whomever paid or however realized to any Guarantor Obligations owing by the Guarantor, any other guarantor or the Borrower to the Administrative Agent
or any Lender in such manner as the Administrative Agent or any Lender shall determine in its reasonable discretion; 

then
neither the Administrative Agent nor any Lender shall incur any liability to the Guarantor as a result thereof, and no such action shall impair or release the obligations of the Guarantor under
this Guaranty. 

        SECTION
8.    Reinstatement.    The Guarantor agrees that, if any payment made by the Borrower or any other Person
applied to the Guarantor Obligations is at any time annulled, set aside, rescinded, invalidated, declared to be fraudulent or preferential or otherwise required to be refunded or repaid or the
proceeds of any collateral are required to be refunded by the Administrative Agent or any Lender 

4

 

to
the Borrower, its estate, trustee, receiver or any other party, including, without limitation, the Guarantor, under any Applicable Law or equitable cause, then, to the extent of such payment or
repayment, the Guarantor's liability hereunder (and any Lien securing such liability) shall be and remain in full force and effect, as fully as if such payment had never been made, and, if prior
thereto, this Guaranty shall have been canceled or surrendered (and if any Lien or collateral securing the Guarantor's liability hereunder shall have been released or terminated by virtue of such
cancellation or surrender), this Guaranty (and such Lien) shall be reinstated in full force and effect, and such prior cancellation or surrender shall not diminish, release, discharge, impair or
otherwise affect the obligations of the Guarantor in respect of the amount of such payment (or any Lien securing such obligation). 

        SECTION
9.    Representations and Warranties.    To induce the Lenders to make any Loans, the Guarantor hereby
represents and warrants that: 

        (a)   the
Guarantor is a limited partnership organized and validly existing under the laws of the State of Delaware and has the power and authority to own its properties and
conduct the business in which it is currently engaged; 

        (b)   the
Guarantor has the right, power and authority to execute, deliver and perform this Guaranty and has taken all necessary limited partnership action to authorize its
execution, delivery and performance of, this Guaranty; 

        (c)   this
Guaranty constitutes the legal, valid and binding obligation of the Guarantor enforceable in accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally and by the availability of equitable remedies; and 

        (d)   as
of the date of this Guaranty, the Guarantor has available uncommitted capital in an amount not less than the Guarantor Obligations. 

        SECTION
10.    Remedies.    

        (a)   Without
limiting the Guarantor's absolute and unconditional guaranty of the Guarantor Obligations, neither the Administrative Agent nor the Lenders shall enforce against
the Guarantor its obligations and liabilities hereunder until the earlier of (i) the occurrence of any Event of Default under Section 13.1(a), (b), (k) or (l) of the Credit Agreement and
(ii) December 31, 2002. 

        (b)   Nothing
contained in this Guaranty shall limit the ability of the Administrative Agent or the Required Lenders to exercise any rights and remedies against the Borrower,
the Parent or any other guarantor as may be available to the Administrative Agent under the Credit Agreement or the other Loan Documents or otherwise. 

        SECTION
11.    No Subrogation.    Notwithstanding any payment or payments by the Guarantor hereunder, or any set-off
or application of funds of the Guarantor by the Administrative Agent or any Lender, or the receipt of any amounts by the Administrative Agent or any Lender with respect to any of the Guarantor
Obligations, the Guarantor shall not be entitled to be subrogated to any of the rights of the Administrative Agent or any Lender against the Borrower or any other guarantor or against any collateral
security held by the Administrative Agent or any Lender for the payment of the Guarantor Obligations nor shall the Guarantor seek any reimbursement from the Borrower or any other guarantor in respect
of payments made by the Guarantor in connection with the Guarantor Obligations, until all amounts owing to the Administrative Agent and the Lenders on account of the Guarantor Obligations and the
Obligations are paid in full and the Aggregate Commitment is terminated. If any amount shall be paid to the Guarantor on account of such subrogation rights at any time when all of the Guarantor
Obligations shall not have been paid in full, such amount shall be held by the Guarantor in trust for the Administrative Agent, segregated from other funds of the Guarantor, and shall, forthwith upon 

5

 

receipt
by the Guarantor, be turned over to the Administrative Agent in the exact form received by the Guarantor (duly endorsed by the Guarantor to the Administrative Agent, if required) to be applied
against the Guarantor Obligations, whether matured or unmatured, in such order as set forth in the Credit Agreement. 

        SECTION
12.    Expenses.    All costs and expenses (including reasonable attorneys' fees, legal expenses and court
costs) incurred by the Administrative Agent or any Lender in enforcing or protecting their rights or remedies hereunder shall be part of the Guarantor Obligations and shall be payable by the Guarantor
on demand and shall bear interest (after as well as before judgment) until paid at the interest rate then applicable to Base Rate Loans under the Credit Agreement and shall be additional Guarantor
Obligations hereunder; provided, however, in no event will the aggregate Guarantor Obligations exceed $5,000,000. 

        SECTION
13.    Notices.    All notices and communications hereundcr shall be given to the addresses and otherwise made
in accordance with Section 15.1 of the Credit Agreement; provided that notices and communications
to the Guarantors shall be directed to the Guarantors at the address specified on the
signature page hereof, or at such other address as such party shall have specified to the other party hereto in writing. 

        SECTION
14.    Successors and Assigns.    This Guaranty is for the benefit of the Administrative Agent and the Lenders
and their permitted successors and assigns. This Guaranty shall be binding on the Guarantor and its successors and assigns; provided that the Guarantor
may not assign any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and the Lenders. 

        SECTION
15.    Amendments, Waivers and Consents.    No term, covenant, agreement or condition of this Guaranty may be
amended or waived, nor may any consent be given, without the written consent of all of the parties hereto. 

        SECTION
16.    Powers Coupled with an Interest.    All authorizations and agencies herein contained with respect to
the Collateral are irrevocable and powers coupled with an interest. 

        SECTION
17.    Governing Law.    This Guaranty shall be governed by, construed and enforced in accordance with the
laws of the State of North Carolina, without reference to the conflicts or choice of law principles thereof. 

        SECTION
18.    Consent to Jurisdiction.    The Guarantor hereby irrevocably consents to the personal jurisdiction of
the state and federal courts located in Mecklenburg County, Charlotte, North Carolina, in any action, claim or other proceeding arising out of any dispute in connection with this Guaranty, any rights
or obligations hereunder, or the performance of such rights and obligations. The Guarantor hereby irrevocably consents to the service of a summons and complaint and other process in any action, claim
or proceeding brought by the Administrative Agent or any Lender in connection with this Guaranty, any rights or obligations hereunder, or the performance of such rights and obligations, on behalf of
itself or its property, in the manner specified in Section 13 hereof. Nothing in this Section 18 shall
affect the right of the Administrative Agent or any Lender to serve legal process in any other manner permitted by Applicable Law or affect the right of the Administrative Agent or any Lender to bring
any action or proceeding against the Guarantor or their properties in the courts of any other jurisdictions. 

        SECTION
19.    Binding Arbitration; Waiver of Jury Trial; Preservation of Remedies.    

        (a)    Binding Arbitration.    Upon demand of any party, whether made before or after institution of any judicial
proceeding, any dispute, claim or controversy arising out of, connected with or relating to this Guaranty ("Disputes"), between or among parties hereto
shall be resolved by binding arbitration as provided herein. Institution of a judicial proceeding by a party does not waive the right of that party to 

6

 

demand
arbitration hereunder. Disputes may include, without limitation, tort claims, counterclaims, claims brought as class actions, claims arising from this Guaranty, disputes as to whether a matter
is subject to arbitration, or claims concerning any aspect of the past, present or future relationships arising out of or connected with this Guaranty. Arbitration shall be conducted under and
governed by the Commercial Financial Disputes Arbitration Rules (the "Arbitration Rules") of the American Arbitration Association (the
"AAA") and the Federal Arbitration Act. All arbitration hearings shall be conducted in Charlotte, North Carolina. The expedited procedures set forth in
Rule 51, et seq. of the Arbitration Rules shall be applicable to claims of less than $1,000,000. All applicable statutes of limitations
shall apply to any Dispute. A judgment upon the award may be entered in any court having jurisdiction. Notwithstanding anything foregoing to the contrary, any arbitration proceeding demanded hereunder
shall begin within ninety (90) days after such demand thereof and shall be concluded within one hundred twenty (120) days after such demand. These time limitations may not be extended unless a party
hereto shows cause for extension and then such extension shall not exceed a total of sixty (60) days. The panel from which all arbitrators are selected shall be comprised of licensed attorneys
selected from the Commercial Financial Dispute Arbitration Panel of the AAA. The single arbitrator selected for expedited procedure shall be a retired judge from the highest court of general
jurisdiction, state or federal, of the state where the hearing will be conducted. The parties hereto do not waive any applicable Federal or state substantive law except as provided herein. 

        (b)    Jury Trial.    THE ADMINISTRATIVE AGENT AND THE GUARANTOR HEREBY ACKNOWLEDGE THAT BY AGREEING TO BINDING
ARBITRATION THEY HAVE IRREVOCABLY WAIVED THEIR RESPECTIVE RIGHTS TO A JURY TRIAL WITH RESPECT TO ANY ACTION, CLAIM OR OTHER PROCEEDING ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS GUARANTY, ANY
RIGHTS OR OBLIGATIONS HEREUNDER, OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS. 

        (c)    Preservation of Certain Remedies.    Notwithstanding the preceding binding arbitration provisions, the parties
hereto preserve, without diminution, certain remedies that such Persons may employ or exercise freely, either alone, in conjunction with or during a Dispute. Each such Person shall have and hereby
reserves the right to proceed in any court of proper jurisdiction or by self help to exercise or prosecute the following remedies, as applicable: (i) all rights to foreclose against any real or
personal property or other security by exercising a power of sale granted in this Guaranty or under Applicable Law or by judicial foreclosure and sale, including a proceeding to confirm the sale,
(ii) all rights of self help including peaceful occupation of property and collection of rents, set off, and peaceful possession of property, (iii) obtaining provisional or ancillary remedies
including injunctive relief, sequestration, garnishment, attachment, appointment of receiver and in filing an involuntary bankruptcy proceeding, and (iv) when applicable, a judgment by
confession of judgment. Preservation of these remedies does not limit the power of an arbitrator to grant similar remedies that may be requested by a party in a Dispute. 

        (d)    Punitive Damages.    Each party agrees that it shall not have a remedy of punitive exemplary damages against
the other in any Dispute and hereby waives any right or claim to punitive or exemplary damages they have now or which may arise in the future in connection with any Dispute, whether the Dispute is
resolved by arbitration or judicially. 

        SECTION
20.    Severability.    If any provision hereof is invalid and unenforceable in any jurisdiction, then, to the
fullest extent permitted by law, (a) the other provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed in favor of the Administrative Agent
and the Lenders in order to carry out the intentions of the parties hereto as nearly as may be possible; and (b) the invalidity or unenforceability of any provisions hereof in any jurisdiction
shall not affect the validity or enforceability of such provision in any other jurisdiction. 

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        SECTION
21.    Headings.    The various headings of this Guaranty are inserted for convenience only and shall not
affect the meaning or interpretation of this Guaranty or any provisions hereof. 

        SECTION
22.    Counterparts.    This Guaranty may be executed by the parties hereto in several counterparts, each of
which shall be deemed to be an original and all of which shall constitute together but one and the same agreement. 

        SECTION
23.    Capital Requirement.    Without limiting any other provision of this Guaranty (including, without
limitation, the Guarantor's absolute and unconditional guaranty of all of the Guarantor Obligations), the Guarantor shall at all times reserve and maintain available uncommitted capital in an amount
not less than the Guarantor Obligations and shall provide the Administrative Agent evidence of such availability within five (5) days of written request thereof. 

[Signature
Pages Follow] 

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

	 	 	THOMA CRESSEY FUND VII, L.P.
	

 	
 	

By:	

TC Partners VII, L.P.
	 	 	Its:	General Partner
	

 	
 	

 	

By:	

Thoma Cressey Equity Partners Inc.
	 	 	 	Its:	General Partner
	

 	
 	

 	

By:	

/s/ Lee M. Mitchell

	 	 	 	Name:	Lee M. Mitchell
	 	 	 	Title:	VP

	
Address for Guarantor:
	

c/o Thoma Cressey Equity Partners

600 Montgomery Street, 27th Floor

San Francisco, CA 94111	
 	

 
	Attention:	 	Jeanne Plessinger	 	 
	Telephone No.:	 	(415) 263-3667	 	 
	Telecopy No.:	 	(415) 392-6480	 	 

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QuickLinks

EXHIBIT 10.14

GUARANTY AGREEMENT

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