Document:

So 8-K x4-2 2015A Sr Note

Exhibit 4.2
    

    

THE SOUTHERN COMPANY

TO

WELLS FARGO BANK, NATIONAL ASSOCIATION,
TRUSTEE

____________________

ELEVENTH SUPPLEMENTAL INDENTURE

DATED AS OF JUNE 12, 2015

____________________

SERIES 2015A 2.750% SENIOR NOTES

DUE JUNE 15, 2020

    

TABLE OF CONTENTS1 

	
						
	ARTICLE 1    
	 
	SERIES 2015A SENIOR NOTES
	 
	Page
	

	 
	 
	 
	 
	1
	

	SECTION 101.
	 
	Establishment    
	 
	1
	

	SECTION 102.
	 
	Definitions
	 
	2
	

	SECTION 103.
	 
	Payment of Principal and Interest
	 
	3
	

	SECTION 104.
	 
	Denominations
	 
	4
	

	SECTION 105.
	 
	Global Securities
	 
	4
	

	SECTION 106.
	 
	Transfer
	 
	4
	

	SECTION 107.
	 
	Redemption at the Company’s Option
	 
	5
	

	 
	 
	 
	 
	 

	ARTICLE 2
	 
	MISCELLANEOUS PROVISIONS
	 
	5
	

	 
	 
	 
	 
	 

	SECTION 201.
	 
	Recitals by Company
	 
	5
	

	SECTION 202.
	 
	Ratification and Incorporation of Original Indenture
	 
	5
	

	SECTION 203.
	 
	Executed in Counterparts
	 
	6
	

	 
	 
	 
	 
	 

	EXHIBIT A
	 
	Form of Series 2015A Note
	 
	A-1
	

	 
	 
	 
	 
	 

	EXHIBIT B
	 
	Certificate of Authentication
	 
	B-1
	

    

______________________
1 This Table of Contents does not constitute part of the Indenture or have any bearing upon the interpretation of any of its terms and provisions. 

i

THIS ELEVENTH SUPPLEMENTAL INDENTURE is made as of the 12th day of June, 2015, by and between THE SOUTHERN COMPANY, a Delaware corporation, 30 Ivan Allen Jr. Blvd., N.W., Atlanta, Georgia 30308 (the “Company”), and Wells Fargo Bank, National Association, a national banking association, 150 East 42nd Street, 40th Floor, New York, New York 10017 (the “Trustee”).
W I T N E S S E T H:
WHEREAS, the Company has heretofore entered into a Senior Note Indenture, dated as of January 1, 2007 (the “Original Indenture”), with Wells Fargo Bank, National Association;
WHEREAS, the Original Indenture is incorporated herein by this reference and the Original Indenture, as heretofore supplemented and as further supplemented by this Eleventh Supplemental Indenture, is herein called the “Indenture”;
WHEREAS, under the Original Indenture, a new series of Senior Notes may at any time be established pursuant to a supplemental indenture executed by the Company and the Trustee;
WHEREAS, the Company proposes to create under the Indenture a new series of Senior Notes;
WHEREAS, additional Senior Notes of other series hereafter established, except as may be limited in the Original Indenture as at the time supplemented and modified, may be issued from time to time pursuant to the Indenture as at the time supplemented and modified; and
WHEREAS, all conditions necessary to authorize the execution and delivery of this Eleventh Supplemental Indenture and to make it a valid and binding obligation of the Company have been done or performed.
NOW, THEREFORE, in consideration of the agreements and obligations set forth herein and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:
ARTICLE 1
SERIES 2015A SENIOR NOTES
SECTION 101.    Establishment.  There is hereby established a new series of Senior Notes to be issued under the Indenture, to be designated as the Company’s Series 2015A 2.750% Senior Notes due June 15, 2020 (the “Series 2015A Notes”).
There are to be authenticated and delivered $600,000,000 principal amount of Series 2015A Notes, and such principal amount of the Series 2015A Notes may be increased from time to time pursuant to Section 301 of the Original Indenture.  All Series 2015A Notes need not be issued at the same time and such series may be reopened at any time, without the consent of any Holder, for issuances of additional Series 2015A Notes.  Any such additional Series 2015A Notes will have the 

same interest rate, maturity and other terms as those initially issued (except for the public offering price and issue date and the initial interest accrual date and initial Interest Payment Date (as defined below), if applicable).  No Series 2015A Notes shall be authenticated and delivered in excess of the principal amount as so increased except as provided by Sections 203, 303, 304, 907 or 1107 of the Original Indenture.  The Series 2015A Notes shall be issued in fully registered form.
The Series 2015A Notes shall be issued in the form of one or more Global Securities in substantially the form set out in Exhibit A hereto.  The Depositary with respect to the Series 2015A Notes shall be The Depository Trust Company.
The form of the Trustee’s Certificate of Authentication for the Series 2015A Notes shall be in substantially the form set forth in Exhibit B hereto.
Each Series 2015A Note shall be dated the date of authentication thereof and shall bear interest from the date of original issuance thereof or from the most recent Interest Payment Date to which interest has been paid or duly provided for.
SECTION 102.    Definitions.  The following defined terms used herein shall, unless the context otherwise requires, have the meanings specified below.  Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the Original Indenture.
“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Series 2015A Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Series 2015A Notes.
“Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations or (ii) if the Company obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations.
“Independent Investment Banker” means an independent investment banking institution of national standing appointed by the Company.
“Interest Payment Dates” means June 15 and December 15 of each year, commencing December 15, 2015.
“Original Issue Date” means June 12, 2015.
 “Reference Treasury Dealer” means a primary U.S. Government securities dealer in the United States appointed by the Company.
“Reference Treasury Dealer Quotation” means, with respect to a Reference Treasury Dealer and any Redemption Date, the average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount 

2

and quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m. Eastern time on the third Business Day in New York City preceding such Redemption Date).
“Regular Record Date” means, with respect to each Interest Payment Date, the 15th calendar day preceding such Interest Payment Date (whether or not a Business Day).
“Stated Maturity” means June 15, 2020.
“Treasury Yield” means, with respect to any Redemption Date, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.
SECTION 103.    Payment of Principal and Interest.  The principal of the Series 2015A Notes shall be due at Stated Maturity (unless earlier redeemed).  The unpaid principal amount of the Series 2015A Notes shall bear interest at the rate of 2.750% per annum until paid or duly provided for.  Interest shall be paid semiannually in arrears on each Interest Payment Date to the Person in whose name the Series 2015A Notes are registered at the close of business on the Regular Record Date for such Interest Payment Date, provided that interest payable at the Stated Maturity or on a Redemption Date as provided herein will be paid to the Person to whom principal is payable.  Any such interest that is not so punctually paid or duly provided for will forthwith cease to be payable to the Holders on such Regular Record Date and may either be paid to the Person or Persons in whose name the Series 2015A Notes are registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to Holders of the Series 2015A Notes not less than ten (10) days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange, if any, on which the Series 2015A Notes shall be listed, and upon such notice as may be required by any such exchange, all as more fully provided in the Original Indenture.
Payments of interest on the Series 2015A Notes will include interest accrued to but excluding the respective Interest Payment Dates.  Interest payments for the Series 2015A Notes shall be computed and paid on the basis of a 360-day year of twelve 30-day months.  In the event that any date on which interest is payable on the Series 2015A Notes is not a Business Day, then payment of the interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in respect of any such delay), with the same force and effect as if made on the date the payment was originally payable.
Payment of the principal and interest due at the Stated Maturity or earlier redemption of the Series 2015A Notes shall be made upon surrender of the Series 2015A Notes at the Corporate Trust Office of the Trustee.  The principal of and interest on the Series 2015A Notes shall be paid in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.  Payments of interest (including interest on any Interest Payment Date) will be made, subject to such surrender where applicable, at the option of the Company, (i) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or (ii) by wire transfer or other electronic transfer at such place and to such account at a banking institution in the United States as may be designated in writing to the Trustee at least sixteen (16) days prior to the date for payment by the Person entitled thereto.

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SECTION 104.    Denominations.  The Series 2015A Notes may be issued in denominations of $1,000 or any integral multiple thereof.
SECTION 105.    Global Securities.  The Series 2015A Notes will be issued in the form of one or more Global Securities registered in the name of the Depositary (which shall be The Depository Trust Company) or its nominee.  Except under the limited circumstances described below, Series 2015A Notes represented by one or more Global Securities will not be exchangeable for, and will not otherwise be issuable as, Series 2015A Notes in definitive form.  The Global Securities described above may not be transferred except by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or to a successor Depositary or its nominee.
Owners of beneficial interests in such a Global Security will not be considered the Holders thereof for any purpose under the Indenture, and no Global Security representing a Series 2015A Note shall be exchangeable, except for another Global Security of like denomination and tenor to be registered in the name of the Depositary or its nominee or to a successor Depositary or its nominee.  The rights of Holders of such Global Security shall be exercised only through the Depositary.
Subject to the procedures of the Depositary, a Global Security shall be exchangeable for Series 2015A Notes registered in the names of persons other than the Depositary or its nominee only if (i) the Depositary notifies the Company that it is unwilling or unable to continue as a Depositary for such Global Security and no successor Depositary shall have been appointed by the Company, or if at any time the Depositary ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended, at a time when the Depositary is required to be so registered to act as such Depositary and no successor Depositary shall have been appointed by the Company, in each case within 90 days after the Company receives such notice or becomes aware of such cessation, (ii) the Company in its sole discretion determines that such Global Security shall be so exchangeable, or (iii) there shall have occurred an Event of Default with respect to the Series 2015A Notes.  Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Series 2015A Notes registered in such names as the Depositary shall direct.
Neither the Company, the Trustee nor any agent of the Company or the Trustee shall have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests in a Global Security or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests.
SECTION 106.    Transfer.  No service charge will be made for any transfer or exchange of Series 2015A Notes, but payment will be required of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith.
The Company shall not be required (a) to issue, register the transfer of or exchange any Series 2015A Notes during a period beginning at the opening of business fifteen (15) days before the date of the mailing of a notice pursuant to Section 1104 of the Original Indenture identifying the serial numbers of the Series 2015A Notes to be called for redemption, and ending at the close of business on the date of the mailing, or (b) to register the transfer of or exchange any Series 2015A Notes theretofore selected for redemption in whole or in part, except the unredeemed portion of any Series 2015A Notes redeemed in part.

4

SECTION 107.    Redemption at the Company’s Option.  At any time and from time to time prior to May 15, 2020, the Series 2015A Notes will be subject to redemption at the option of the Company in whole or in part, upon not less than 30 nor more than 60 days’ notice, at Redemption Prices equal to the greater of (1) 100% of the principal amount of the Series 2015A Notes being redeemed and (2) the sum of the present values of the remaining scheduled payments of principal of and interest on the Series 2015A Notes being redeemed (not including any portion of such payments of interest accrued to the Redemption Date) discounted (for purposes of determining present value) to the Redemption Date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at a discount rate equal to the Treasury Yield plus 20 basis points plus, in each case, accrued and unpaid interest thereon to the Redemption Date.  At any time and from time to time on or after May 15, 2020, the Series 2015A Notes will be subject to redemption at the option of the Company in whole or in part upon not less than 30 nor more than 60 days’ notice, at a Redemption Price equal to 100% of the principal amount of the Series 2015A Notes being redeemed plus accrued and unpaid interest on the Series 2015A Notes being redeemed to the Redemption Date. 
In the event of redemption of the Series 2015A Notes in part only, a new Series 2015A Note or Notes for the unredeemed portion will be issued in the name or names of the Holders thereof upon the surrender thereof.
The Series 2015A Notes will not have a sinking fund.
Notice of redemption shall be given as provided in Section 1104 of the Original Indenture.  The Trustee shall not be responsible for the calculation of the Redemption Price with respect to any redemption occurring prior to May 15, 2020.  The Company shall calculate such Redemption Price and promptly notify the Trustee thereof.
Any redemption of less than all of the Series 2015A Notes shall, with respect to the principal thereof, be divisible by $1,000.
ARTICLE 2
MISCELLANEOUS PROVISIONS
SECTION 201.    Recitals by Company.  The recitals in this Eleventh Supplemental Indenture are made by the Company only and not by the Trustee, and all of the provisions contained in the Original Indenture in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect of Series 2015A Notes and of this Eleventh Supplemental Indenture as fully and with like effect as if set forth herein in full.
SECTION 202.    Ratification and Incorporation of Original Indenture.  As supplemented hereby, the Original Indenture is in all respects ratified and confirmed, and the Original Indenture as supplemented by this Eleventh Supplemental Indenture shall be read, taken and construed as one and the same instrument.

5

SECTION 203.    Executed in Counterparts.  This Eleventh Supplemental Indenture may be simultaneously executed in several counterparts, each of which shall be deemed to be an original, and such counterparts shall together constitute but one and the same instrument.

6

IN WITNESS WHEREOF, each party hereto has caused this instrument to be signed in its name and behalf by its duly authorized officer, all as of the day and year first above written.

	
		
	THE SOUTHERN COMPANY

	 
	 

	 
	 

	 
	 

	By:
	/s/Art P. Beattie

	 
	Art P. Beattie
Executive Vice President, Chief
Financial Officer and Treasurer

	 
	 

	 
	 

	 
	 

	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee

	 
	 

	 
	 

	 
	 

	By:
	/s/Stefan Victory

	 
	Stefan Victory
Vice President

EXHIBIT A

FORM OF SERIES 2015A NOTE

	
			
	NO. __    
	 
	CUSIP NO. 842587 CM7

	 
	 
	 

THE SOUTHERN COMPANY
SERIES 2015A 2.750% SENIOR NOTE
DUE JUNE 15, 2020
	
			
	Principal Amount:
	 
	$______________

	 
	 
	 

	Regular Record Date:
	 
	15th calendar day prior to the applicable Interest Payment Date (whether or not a Business Day)

	 
	 
	 

	Original Issue Date:
	 
	June 12, 2015

	 
	 
	 

	Stated Maturity:
	 
	June 15, 2020

	 
	 
	 

	Interest Payment Dates:
	 
	June 15 and December 15

	 
	 
	 

	Interest Rate:
	 
	2.750% per annum

	 
	 
	 

	Authorized Denominations:
	 
	$1,000 or any integral multiple thereof

The Southern Company, a Delaware corporation (the “Company,” which term includes any successor corporation under the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to _____________________________________, or registered assigns, the principal sum of ________________________________ DOLLARS ($__________) on the Stated Maturity shown above (or upon earlier redemption), and to pay interest thereon from the Original Issue Date shown above, or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semiannually in arrears on each Interest Payment Date as specified above, commencing on December 15, 2015 and on the Stated Maturity (or upon earlier redemption) at the rate per annum shown above until the principal hereof is paid or made available for payment and at such rate on any overdue principal and on any overdue installment of interest.  The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date (other than an Interest Payment Date that is the Stated Maturity or on a Redemption Date) will, as provided in such Indenture, be paid to the Person in whose name this Note (the “Note”) is registered at the close of business on the Regular Record Date as specified above next preceding such Interest Payment Date, provided that any interest payable at the Stated Maturity or on any Redemption Date will be paid to the Person to whom principal is payable.  Except as otherwise provided in the Indenture, any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Note is registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to Holders of Notes of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange, if any, on which the Notes of this series shall be listed, and upon such notice as may be required by any such exchange, all as more fully provided in the Indenture.

A-1

Payments of interest on this Note will include interest accrued to but excluding the respective Interest Payment Dates.  Interest payments for this Note shall be computed and paid on the basis of a 360-day year of twelve 30-day months.  In the event that any date on which interest is payable on this Note is not a Business Day, then payment of the interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in respect of any such delay), with the same force and effect as if made on the date the payment was originally payable.  A “Business Day” shall mean any day other than a Saturday or a Sunday or a day on which banking institutions in New York City are authorized or required by law or executive order to remain closed or a day on which the Corporate Trust Office of the Trustee is closed for business.
Payment of the principal of and interest due at the Stated Maturity or earlier redemption of the Series 2015A Notes shall be made upon surrender of the Series 2015A Notes at the Corporate Trust Office of the Trustee.  The principal of and interest on the Series 2015A Notes shall be paid in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.  Payment of interest (including interest on an Interest Payment Date) will be made, subject to such surrender where applicable, at the option of the Company, (i) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or (ii) by wire transfer or other electronic transfer at such place and to such account at a banking institution in the United States as may be designated in writing to the Trustee at least 16 days prior to the date for payment by the Person entitled thereto.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.
Unless the certificate of authentication hereon has been executed by the Trustee by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

A-2

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal.
Dated:  
	
					
	 
	 
	 
	THE SOUTHERN COMPANY

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	By:
	 

	 
	 
	 
	Title:
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	Attest:
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 

	Title:
	 
	 
	 
	 

{Seal of THE SOUTHERN COMPANY appears here}

A-3

CERTIFICATE OF AUTHENTICATION
This is one of the Senior Notes referred to in the within-mentioned Indenture.

	
			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee

	 
	 
	 

	 
	 
	 

	 
	 
	 

	By:
	 
	 

	 
	 
	Authorized Officer

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

A-4

(Reverse Side of Note)
This Note is one of a duly authorized issue of Senior Notes of the Company (the “Notes”), issued and issuable in one or more series under a Senior Note Indenture, dated as of January 1, 2007, as supplemented (the “Indenture”), between the Company and Wells Fargo Bank, National Association, Trustee (the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures incidental thereto reference is hereby made for a statement of the respective rights, limitation of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Notes issued thereunder and of the terms upon which said Notes are, and are to be, authenticated and delivered.  This Note is one of the series designated on the face hereof as Series 2015A 2.750% Senior Notes due June 15, 2020 (the “Series 2015A Notes”) which is unlimited in aggregate principal amount.  Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the Indenture.
The Series 2015A Notes will not have a sinking fund.
At any time and from time to time prior to May 15, 2020, the Series 2015A Notes will be subject to redemption at the option of the Company in whole or in part upon not less than 30 nor more than 60 days’ notice, at Redemption Prices equal to the greater of (i) 100% of the principal amount of the Series 2015A Notes being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal of and interest on the Series 2015A Notes being redeemed (not including any portion of such payments of interest accrued to the Redemption Date) discounted (for purposes of determining present value) to the Redemption Date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at a discount rate equal to the Treasury Yield plus 20 basis points, plus, in each case, accrued and unpaid interest thereon to the Redemption Date.  At any time and from time to time on or after May 15, 2020, the Series 2015A Notes will be subject to redemption at the option of the Company in whole or in part upon not less than 30 nor more than 60 days’ notice, at a Redemption Price equal to 100% of the principal amount of the Series 2015A Notes being redeemed plus accrued and unpaid interest on the Series 2014 Notes being redeemed to the Redemption Date. 
“Treasury Yield” means, with respect to any Redemption Date, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.
“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Series 2015A Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Series 2015A Notes.
“Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations or (ii) if the Company 

A-5

obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations.
“Independent Investment Banker” means an independent investment banking institution of national standing appointed by the Company.
“Reference Treasury Dealer” means a primary U.S. Government securities dealer in the United States appointed by the Company.
“Reference Treasury Dealer Quotation” means, with respect to a Reference Treasury Dealer and any Redemption Date, the average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount and quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m. Eastern time on the third Business Day in New York City preceding such Redemption Date).
The Trustee shall not be responsible for the calculation of the Redemption Price with respect to any redemption occurring prior to May 15, 2020.  The Company shall calculate such Redemption Price and promptly notify the Trustee thereof.
In the event of redemption of this Note in part only, a new Note or Notes of this series for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the surrender hereof.  The Series 2015A Notes will not have a sinking fund.
If an Event of Default with respect to the Notes of this series shall occur and be continuing, the principal of the Notes of this series may be declared due and payable in the manner, with the effect and subject to the conditions provided in the Indenture.
The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Notes of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of not less than a majority in principal amount of the Notes at the time Outstanding of each series to be affected.  The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Notes of each series at the time Outstanding, on behalf of the Holders of all Notes of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note.
No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the coin or currency, herein prescribed.
As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Security Register, upon surrender of this Note for registration of 

A-6

transfer at the office or agency of the Company for such purpose, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar and duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes of this series, of authorized denominations and of like tenor and for the same aggregate principal amount, will be issued to the designated transferee or transferees.  No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.
The Notes of this series are issuable only in registered form without coupons in denominations of $1,000 and any integral multiple thereof.  As provided in the Indenture and subject to certain limitations therein set forth, Notes of this series are exchangeable for a like aggregate principal amount of Notes of this series of a different authorized denomination, as requested by the Holder surrendering the same upon surrender of the Note or Notes to be exchanged at the office or agency of the Company.
This Note shall be governed by, and construed in accordance with, the internal laws of the State of New York.

A-7

ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:
	
						
	TEN COM-
	as tenants in common
	 
	UNIF GIFT MIN ACT-
	_______ Custodian ________

	TEN ENT-
	as tenants by the
entireties
	 
	 
	(Cust)
	(Minor)

	JT TEN-
	as joint tenants with right of survivorship and not as tenants in common
	 
	 
	under Uniform Gifts to Minors Act

	 
	 
	 
	 
	(State)

Additional abbreviations may also be used
though not on the above list.
    	
					
	 
	FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto

	 
	 
	 
	 
	 

	(please insert Social Security or other identifying number of assignee)

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE 

	 OF ASSIGNEE
	 
	 
	 

	 

	 

	the within Note and all rights thereunder, hereby irrevocably constituting and appointing

	 

	 

	agent to transfer said Note on the books of the Company, with full power of substitution in the

	premises.
	 
	 
	 

	 
	 
	 
	 
	 

    
	
				
	Dated: 
	 
	 
	

	 
	 
	 
	 

NOTICE:  The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular without alteration or enlargement, or any change whatever.

A-8

EXHIBIT B
CERTIFICATE OF AUTHENTICATION
This is one of the Senior Notes referred to in the within-mentioned Indenture.

	
		
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee

	 
	 

	 
	 

	 
	 

	By:
	 

	 
	Authorized Officer

	 
	 

B-1EX-10.1

 Exhibit 10.1 

THIRD AMENDMENT TO CREDIT AGREEMENT 

This Third Amendment to Credit Agreement (“Third Amendment”) is made as of June 11, 2015, by and among QuinStreet, Inc.
(“Borrower”), the financial institutions from time to time signatories thereto (collectively, the “Lenders”), and Comerica Bank, as administrative agent for the Lenders (in such capacity, the “Agent”). 

RECITALS 
 A. Borrower
entered into that certain Second Amended and Restated Revolving Credit and Term Loan Agreement dated as of November 4, 2011 (as amended, restated or otherwise modified from time to time, the “Credit Agreement”) with Agent and the
Lenders, under which Lenders extended (or committed to extend) credit to Borrower, as set forth therein. 
 B. Borrower acknowledges and
agrees that, as of the date hereof, the outstanding principal balance owed to Lenders under the Term Loans is Sixty Million Dollars ($60,000,000), plus interest, loan fees and charges accrued and unpaid thereon (the “Existing Term
Indebtedness”), and agrees further that as a condition to the effectiveness of this Third Amendment, the Existing Term Indebtedness shall be paid off in full to Agent for the benefit of Term Loan Lenders. 

C. Borrower and Agent further acknowledge and agree that as of the date hereof, there are no amounts outstanding under the Revolving Credit,
with the effect that from and after the Third Amendment Effective Date (as hereinafter defined), the Revolving Credit Lenders shall be deemed to have assigned their Revolving Credit Commitments to Comerica Bank, and Comerica Bank shall remain as the
sole Revolving Credit Lender under the Credit Agreement. 
 D. Borrower has requested that Agent and Lenders make certain amendments to the
Credit Agreement and Agent and Lenders are willing to do so, but only on the terms and conditions set forth in this Third Amendment. 

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration the receipt and sufficiency of which
are hereby acknowledged, Borrower, Agent and Lenders agree as follows: 
  

	1.	Definitions. Capitalized terms used in this Third Amendment, unless otherwise defined, have the meanings ascribed thereto in the Credit Agreement. 

 

	2.	Incorporation of Recitals. Borrower acknowledges that each of the foregoing Recitals are true and accurate, and each is incorporated herein by this reference as though fully set forth in the body of this Third
Amendment. 

  

	3.	Termination of Certain Facilities. 

 (a) Termination of Term Loan. As of the Third
Amendment Effective Date, the Term Loan facility granted to Borrower pursuant to the Credit Agreement is hereby terminated and all references in the Credit Agreement to Majority Term Loan Lenders, Term Loan, Term Loan Advance, Term Loan Amount, Term
Loan Lenders, Term Loan Maturity Date, Term Notes, Term Loan Percentage and Term Loan Rate Request, are hereby deleted in their entirety, mutatis mutandis, and are of no further force and effect. 

 (b) Termination of Swing Line. As of the Third Amendment Effective Date, the Swing Line
facility granted to Borrower pursuant to the Credit Agreement is hereby terminated and all references in the Credit Agreement to Swing Line, Swing Line Advance, Swing Line Lender, Swing Line Maximum Amount, Swing Line Note, Swing Line Participation
Certificate, are hereby deleted in their entirety, mutatis mutandis, and are of no further force and effect. 
  

	4.	Amendments to Section 1.1. 

 (a) The following definitions are hereby added to
Section 1.1 of the Agreement in alphabetical order as follows: 
 “Adjusted Quick Ratio” shall mean Cash held in an account
with Agent plus Cash held at other financial institutions with Account Control Agreements in place plus Accounts less than 90 days past invoice date plus unbilled Accounts less than 30 days from the end of the month in which
service was rendered divided by Current Liabilities minus short term Deferred Revenue plus amounts outstanding under the Revolving Credit. 

“Borrowing Base” shall mean, as of any date of determination, an amount equal to the sum of eighty percent (80%) of Eligible
Billed Accounts and eighty percent (80%) of Eligible Non-billed Accounts, as determined by Agent with reference to the most recent Borrowing Base Certificate delivered by Borrower. 

“Borrowing Base Certificate” shall mean a certificate signed by a Responsible Officer in substantially the form of Exhibit O hereto.

 “Credit Card Services Sublimit” shall mean a sublimit for corporate credit cards and e-commerce or merchant account services
under the Revolving Credit not to exceed Two Hundred Fifty Thousand Dollars ($250,000). 
 “Eligible Billed Accounts” shall mean
those Accounts of the Borrower and its Domestic Subsidiaries that arise in the ordinary course of business; provided that subject to the exercise of its Permitted Discretion, Agent may change the standards of eligibility by giving Borrower thirty
(30) days prior written notice. Unless otherwise agreed to by Agent, Eligible Billed Accounts shall not include the following: 
  

	 	(i)	Accounts that the Account Debtor has failed to pay in full within ninety (90) days of invoice date; and 

  

	 	(ii)	Accounts with respect to which the Account Debtor does not have its principal place of business in the United States, except for Eligible Foreign Accounts. 

  
 2 

 “Eligible Non-billed Accounts” shall mean, those Accounts of Borrower and its Domestic
Subsidiaries that arise in the ordinary course of business which are due and payable by Account Debtors whose principal offices are located within the United States with respect to services rendered in the previous month, that are yet to be billed
to the Account Debtors by Borrower or the applicable Domestic Subsidiary. 
 “Eligible Foreign Accounts” shall mean, Accounts of
Borrower and its Domestic Subsidiaries with respect to which the Account Debtor does not have its principal place of business in the United States and is not located in an OFAC sanctioned country and that are (i) supported by one or more
letters of credit in an amount and of a tenor, and issued, advised and/or confirmed by a financial institution, acceptable to Agent, or (ii) insured by the Export Import Bank of the United States. All Eligible Foreign Accounts must be
calculated in U.S. Dollars for purposes of calculating the Borrowing Base. 
 “Permitted Discretion” shall mean, a determination
made by Agent in good faith and in the exercise of reasonable (from the perspective of a secured asset-based lender) business judgment. 

“Purchases” shall have the meaning set forth in Section 8.5. 

“Third Amendment” shall mean, the Third Amendment to Credit Agreement dated as of June 11, 2015. 

“Third Amendment Effective Date” shall mean June 11, 2015. 

(b) The following definitions in Section 1.1 of the Credit Agreement are hereby amended and restated in their entirety as follows: 

“Advance(s)” shall mean, as the context may indicate, a borrowing requested by the Borrower, and made by the Revolving Credit Lenders
under Section 2.1 hereof, including without limitation any continuation or refunding of such borrowing pursuant to Section 2.3 hereof, and any advance deemed to have been made in respect of a Letter of Credit under Section 3.6(c)
hereof, and shall include, as applicable, a Eurodollar-based Advance or a Base Rate Advance. 
 “Applicable Interest Rate” shall
mean, with respect to each Revolving Credit Advance, the Eurodollar-based Rate. 
 “Applicable Margin” shall mean three percent
(3%) with respect to the Eurodollar-based Rate. 
 “Covenant Compliance Report” shall mean the report to be furnished by

  
 3 

 
Borrower to the Agent pursuant to Section 7.2(a) hereof, substantially in the form annexed hereto as Exhibit J and certified by a Responsible Officer of the Borrower, in which report
Borrower shall set forth the information specified therein. 
 “Eurodollar-Interest Period” shall mean, for any Eurodollar-based
Advance, an Interest Period of one, two, three or six months (or any shorter or longer periods agreed to in advance by the Borrower, Agent and the Lenders) as selected by Borrower, for such Eurodollar-based Advance pursuant to Section 2.3. 

“Final Maturity Date” shall mean the Revolving Credit Maturity Date. 

“Interest Period” shall mean with respect to a Eurodollar-based Advance, a Eurodollar-Interest Period, commencing on the day a
Eurodollar-based Advance is made, or on the effective date of an election of the Eurodollar-based Rate made under Section 2.3 hereof; provided, however that (i) any Interest Period which would otherwise end on a day which is not a Business
Day shall end on the next succeeding Business Day, except that as to an Interest Period in respect of a Eurodollar-based Advance, if the next succeeding Business Day falls in another calendar month, such Interest Period shall end on the next
preceding Business Day, (ii) when an Interest Period in respect of a Eurodollar-based Advance begins on a day which has no numerically corresponding day in the calendar month during which such Interest Period is to end, it shall end on the last
Business Day of such calendar month, and (iii) no Interest Period in respect of any Advance shall extend beyond the Revolving Credit Maturity Date. 

“Letter of Credit Maximum Amount” shall mean One Million Dollars ($1,000,000). 

“Majority Lenders” shall mean at any time (a) so long as the Revolving Credit Aggregate Commitment has not been terminated,
Lenders holding more than 50.0% of the Revolving Credit Aggregate Commitment and (b) if the Revolving Credit Aggregate Commitment has been terminated (whether by maturity, acceleration or otherwise), Lenders holding more than 50.0% of the
aggregate principal amount then outstanding under the Revolving Credit; provided that, for purposes of determining Majority Lenders hereunder, the Letter of Credit Obligations shall be allocated among the Revolving Credit Lenders based on their
respective Revolving Credit Percentages; provided further that so long as there are fewer than three Lenders, considering any Lender and its Affiliates as a single Lender, “Majority Lenders” shall mean all Lenders. The Commitments of, and
portion of the Indebtedness attributable to, any Defaulting Lender shall be excluded for purposes of making a determination of “Majority Lenders.” 

  
 4 

 “Permitted Acquisition” shall mean any acquisition by Borrower or any wholly-owned
Subsidiary of Borrower of all or substantially all of the assets or Equity Interests of a Pay for Performance Marketing and Media Business; provided that (x) with respect to any acquisition using Cash Proceeds of less than Fifteen Million
Dollars ($15,000,000) in the combined aggregate with Distributions and Purchases beginning on the Third Amendment Effective Date through the Final Maturity Date, such acquisition shall satisfy and/or be conducted in accordance with the requirements
of clauses (i), (ii), (iv), (v) and (vi) below, and (y) with respect to any acquisition using Cash Proceeds of Fifteen Million Dollars ($15,000,000) or more in the combined aggregate with Distributions and Purchases beginning on the
Third Amendment Effective Date through the Final Maturity Date, such acquisition shall (a) satisfy and/or be conducted in accordance with the requirements of clauses (i) through (vi) below, and (b) be consented to by Agent and
the Majority Lenders: 
  

	 	(i)	If such acquisition is structured as an acquisition of the Equity Interests of any Person, then the Person so acquired shall (x) become a wholly-owned direct Subsidiary of Borrower or of a wholly-owned Subsidiary
of Borrower and the Borrower or the applicable Subsidiary shall cause such acquired Person to comply with Section 7.13 hereof, or (y) provided that the Credit Parties continue to comply with Section 7.4(a) hereof, be merged with and
into Borrower or such Subsidiary (and, in the case of the Borrower, with the Borrower being the surviving entity); 

  

	 	(ii)	If such acquisition is structured as the acquisition of assets, such assets shall be acquired directly by Borrower or a wholly-owned Subsidiary (subject to compliance with Section 7.4(a) hereof); 

 

	 	(iii)	Borrower shall have delivered to Agent not less than ten (10) (or such shorter period of time agreed to by the Agent) nor more than ninety (90) days prior to the date of such acquisition, notice of such
acquisition, copies of all material documents relating to such acquisition (including the acquisition agreement and any related material document), and if requested by Agent, historical financial information (including income statements, balance
sheets and cash flows) of the acquisition target, if available, or the entire credit history of the acquisition target, in each case in form and substance reasonably satisfactory to Agent; 

 

	 	(iv)	Both immediately before and after the consummation of such acquisition, no Default or Event of Default shall have occurred and be continuing; 

 

	 	(v)	The acquisition shall not result in a Change of Control; and 

  
 5 

	 	(vi)	After giving effect to such acquisition, upon making a Request for Advance and when there are amounts outstanding under the Revolving Credit, Borrower shall be in compliance, on a pro forma basis, with the
financial covenants required to be maintained under Section 7.9(a) and (b) as of the last day of the most recent month end for the fiscal month ended at least thirty (30) days prior to the date of the Request for Advance in the case
of Section 7.9(a) and as of the last day of the most recent quarter end for the fiscal quarter ended at least forty-five (45) days prior to the date of the Request for Advance in the case of Section 7.9(b). 

“Request for Advance” shall mean a Request for Revolving Credit Advance. 

“Revolving Credit Advance” shall mean a borrowing requested by Borrower and made by the Revolving Credit Lenders under
Section 2.1 of this Agreement, including without limitation any deemed disbursement of an Advance in respect of the Credit Card Services Sublimit under Section 2.5, or a Letter of Credit under Section 3.6(c) hereof, and may include,
subject to the terms hereof, Eurodollar-based Advances and Base Rate Advances. 
 “Revolving Credit Aggregate Commitment” shall
mean Twenty Five Million Dollars ($25,000,000), subject to reduction or termination under Section 2.11 or 9.2 hereof. 
 “Revolving
Credit Commitment Amount” shall mean with respect to any Revolving Credit Lender, (i) if the Revolving Credit Aggregate Commitment has not been terminated, the amount specified opposite such Revolving Credit Lender’s name in the
column entitled “Revolving Credit Commitment Amount” on Schedule 1.2, as adjusted from time to time in accordance with the terms hereof; and (ii) if the Revolving Credit Aggregate Commitment has been terminated (whether by maturity,
acceleration or otherwise), the amount equal to its Percentage of the aggregate principal amount outstanding under the Revolving Credit (including the outstanding Letter of Credit Obligations and the Credit Card Services Sublimit). 

“Revolving Credit Maturity Date” shall mean the earlier to occur of (i) June 11, 2017, and (ii) the date on which the
Revolving Credit Aggregate Commitment shall terminate in accordance with the provisions of this Agreement. 
  

	 	(c)	The following definitions set forth in Section 1.1 of the Credit Agreement are hereby deleted, and all references to them in the Credit Agreement are deleted in their entirety: 

  
 6 

 “Applicable Fee Percentage” 

“Applicable Measuring Period” 

“Eligible Assets” 

“Fee Letter” 

“Fixed Charge Coverage Ratio” 

“Funded Debt to EBITDA Ratio” 

“Initial Reinvestment Period” 

“Liquidity” 

“Majority Term Loan Lenders” 

“Net Cash Interest Expense” 

“Quoted Rate” 

“Quoted Rate Advance” 

“Reinvestment Certificate” 

“Reinvestment Period” 

“Request for Swing Line Advance” 

“Revolving Credit Optional Increase” 

“Sweep Agreement” 

“Swing Line” 

“Swing Line Advance” 

“Swing Line Lender” 

“Swing Line Maximum Amount” 

“Swing Line Note” 

“Swing Line Participation Certificate” 

“Term Loan” 
 “Term
Loan Advance” 

  
 7 

 “Term Loan Amount” 

“Term Loan Lenders” 

“Term Loan Maturity Date” 

“Term Notes” 

“Term Loan Percentage” 

“Term Loan Rate Request” 
  

	5.	The introductory paragraph of Section 2.3 of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“2.3 Requests for and Advances and Continuations of Advances. Subject to and upon the terms and conditions of this
Agreement Borrower may request (i) an Advance of the Revolving Credit in an aggregate outstanding amount not to exceed the lesser of (x) the Revolving Credit Aggregate Commitment or (y) the Borrowing Base, less the aggregate face
amount of Letters of Credit issued under the Letter of Credit Maximum Amount and the aggregate limits of the corporate credit cards issued to Borrower and merchant credit card processing reserves under the Credit Card Services Sublimit, or
(ii) a continuation of any Revolving Credit Advance in the same type of Advance by delivery to Agent of a Request for Continuation of Revolving Credit Advance executed by an Authorized Signer for the Borrower (provided that if, with respect to
a Revolving Credit Advance, Borrower shall not have given notice in accordance with this Section 2.3 to continue any borrowing into a subsequent Interest Period, such borrowing shall, at the end of the Interest Period applicable thereto (unless
repaid pursuant to the terms hereof), automatically be continued into a new Interest Period of one month’s duration), subject to the following:” 
  

	6.	Section 2.3(a) of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“(a) each such Request for Revolving Credit Advance shall set forth the information required on the Request for Revolving
Credit Advance, including without limitation: 
 (i) the proposed date of such Revolving Credit Advance (or the continuation
of an outstanding Revolving Credit Advance), which must be a Business Day; 
 (ii) whether such Advance is a new Revolving
Credit Advance or a continuation of an outstanding Revolving Credit Advance; and 
 (iii) the first Eurodollar-Interest
Period applicable thereto.” 
  

	7.	Section 2.3(b) of the Credit Agreement is hereby amended and restated in its entirety as follows: 

  
 8 

 “(b) each such Request for Revolving Credit Advance shall be delivered to
Agent by 12:00 p.m. (Pacific time) three (3) Business Days prior to the proposed date of the Revolving Credit Advance;” 
  

	8.	Section 2.3(c) of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“(c) on the proposed date of such Revolving Credit Advance, the sum of (x) the aggregate principal amount of all
Revolving Credit Advances outstanding on such date (including, without duplication) the Advances that are deemed to be disbursed by Agent under Section 3.6(c) hereof in respect of Borrower’s Reimbursement Obligations hereunder), plus
(y) the Letter of Credit Obligations as of such date, plus (z) the Credit Card Services Sublimit outstanding as of such date, in each case after giving effect to all outstanding requests for Revolving Credit Advances and advances under the
Credit Card Services Sublimit and for the issuance of any Letters of Credit, shall not exceed the Revolving Credit Aggregate Commitment;” 
  

	9.	Section 2.3(d) of the Credit Agreement is hereby deleted in its entirety and replaced with the following 

“(d) Reserved”. 
  

	10.	Section 2.3(g) of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“(h) upon making a Request for Advance when there is no amount outstanding under the Revolving Credit, each such Request
Advance shall (i) be delivered to Agent by 12:00 p.m. (Pacific time) ten (10) Business Days prior to the proposed date of the Advance; and (ii) be accompanied by a Covenant Compliance Certificate for the most recent month end; and
Borrower shall be in compliance (both before such Advance and, on a pro forma basis, after giving effect to such Advance) with the covenants required to be maintained under Section 7.9(a) and (b), in each case as of the last day of the most
recent month end which ended at least 30 days prior to the date of such request in the case of Section 7.9(a) and as of the last day of the most recent quarter end ended at least 45 days prior to the date of such request in the case of
Section 7.9(b).” 
  

	11.	Section 2.5 of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“2.5 Credit Card Services Sublimit. 

Subject to the terms and conditions of this Agreement, Borrower may request corporate credit cards and standard and e-commerce
merchant account services from Lenders (collectively, the “Credit Card Services”). The aggregate limit of the corporate credit cards and merchant credit card processing reserves shall not exceed the Credit Card Services Sublimit, provided
that availability under the Revolving Credit shall be reduced by the aggregate limits of the corporate credit cards issued to Borrower and merchant credit card processing reserves. In addition, Agent may, in its sole discretion, charge as

  
 9 

 
Advances any amounts that become due or owing to Lenders in connection with the Credit Card Services. The terms and conditions (including repayment and fees) of such Credit Card Services shall be
subject to the terms and conditions of the Lenders’ standard forms of application and agreement for the Credit Card Services, which Borrower hereby agrees to execute.” 

 

	12.	Section 2.6(c) of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“(c) Reserved.” 
  

	13.	Section 2.7 of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“2.7 Optional Prepayments. 

(a) (i) The Borrower may prepay all or part of the outstanding principal of any Base Rate Advance(s) of the Revolving Credit at
any time, provided that, unless the “Sweep to Loan” system shall be in effect in respect of the Revolving Credit, after giving effect to any partial prepayment, the aggregate balance of Base Rate Advance(s) of the Revolving Credit
remaining outstanding shall be at least One Million Dollars ($1,000,000), and (ii) subject to Section 2.10(c) hereof, the Borrower may prepay all or part of the outstanding principal of any Eurodollar-based Advance of the Revolving Credit
only on the last day of the Eurodollar-Interest Period provided that, after giving effect to any partial prepayment, the unpaid portion of such Advance which is to be refunded or converted under Section 2.3 hereof shall be at least One Million
Dollars ($1,000,000). 
 (b) Reserved. 

(c) Any prepayment of a Base Rate Advance made in accordance with this Section shall be without premium or penalty and any
prepayment of any other type of Advance shall be subject to the provisions of Section 11.1 hereof, but otherwise without premium or penalty. 
  

	14.	Section 2.9 of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“2.9 Fees. Borrower shall pay to Agent the following: 

(i) Revolving Credit Facility Fee. On the Third Amendment Effective Date and on the first anniversary thereof, a fully
earned and non-refundable Revolving Credit Facility Fee equal to 0.25% of the Revolving Credit Commitment (i.e., a fee of $62,500). 

(ii) Unused Fee. An unused commitment fee equal to 0.25% per annum on the daily amount, during the applicable
quarter, of the unused portion of the Revolving Credit Aggregate Commitment. Such fee shall be determined as of the last day of each quarter, payable quarterly in arrears within five (5) days after receipt of an invoice therefor sent after the
last day of such quarter, and nonrefundable. Such invoice shall be 

  
 10 

 
considered correct in all respects, absent manifest error, and accepted by and be conclusively binding upon Borrower unless Borrower makes specific written objections thereto within thirty
(30) days after the date Borrower received such invoice. 
  

	15.	Section 2.10(a) of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“(a) If at any time and for any reason the aggregate outstanding principal amount of Revolving Credit Advances plus
advances under the Credit Card Services Sublimit, plus the outstanding Letter of Credit Obligations, shall exceed the lesser of (i) the Revolving Credit Aggregate Commitment, and (ii) the Borrowing Base then in effect, Borrower shall
immediately reduce any pending request for a Revolving Credit Advance on such day by the amount of such excess and, to the extent any excess remains thereafter, repay any Revolving Credit Advances in an amount equal to the lesser of the outstanding
amount of such Advances and the amount of such remaining excess, with such amounts to be applied to the Revolving Credit Advances and then, to the extent that any excess remains after payment in full of all Revolving Credit Advances, to provide cash
collateral in support of any Letter of Credit Obligations in an amount equal to the lesser of (x) 105% of the amount of such Letter of Credit Obligations and (y) the amount of such remaining excess, with such cash collateral to be provided
on the basis set forth in Section 9.2 hereof. Borrower acknowledges that, in connection with any repayment required hereunder, it shall also be responsible for the reimbursement of any prepayment or other costs required under Section 11.1
hereof. Any payments made pursuant to this Section shall be applied first to outstanding Base Rate Advances under the Revolving Credit, if any, and then to Eurodollar-based Advances of the Revolving Credit. 

 

	16.	Section 2.10(b) of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“(b) Reserved.” 
  

	17.	Section 2.13 of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“2.13 Reserved.” 
  

	18.	Section 3.4(a) of the Credit Agreement is hereby amended by amending and restating paragraph (i) as follows: 

“(i) A letter of credit fee in an amount equal to 2.50% per annum of the undrawn amount of each Letter of Credit
issued pursuant hereto (based on the amount of each Letter of Credit) shall be paid to the Agent for distribution to the Revolving Credit Lenders in accordance with their Percentages.” 

 

	19.	Section 4 of the Credit Agreement is hereby amended by amending and restating in its entirety as follows: 

“4 Reserved.” 

  
 11 

	20.	Section 5.2(c) of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“(c) Reserved.” 
  

	21.	Section 7.2(g) of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“(g) Within thirty (30) days after the last day of each month, including the last month of each Fiscal Year, and,
during the continuance of a Default or Event of Default, more frequently as reasonably requested by Agent or the Majority Lenders, Borrower shall deliver to Agent, a Borrowing Base Certificate.” 

 

	22.	A new subsection (j) is hereby added at the end of Section 7.2 of the Credit Agreement as follows: 

“(j) Notwithstanding anything else in this Agreement, the statements and reports required to be delivered by Borrower
pursuant to Sections 7.1(c), 7.2(a) (with respect only to the Covenant Compliance Report in respect of the financial statements required in 7.1(c) for each month end), 7.2(g), 7.2(h) and 7.2(i) shall only be required to be delivered quarterly within
forty five (45) days after the end of each fiscal quarter, unless there is any amount outstanding under the Revolving Credit in which case they shall be delivered monthly within thirty (30) days after the last day of each month (provided
that, for the last month of any fiscal quarter, they shall be delivered within 45 days after the end of such month). Upon making a Request for Advance, Borrower shall provide all such statements and reports as of the last day of the most recent
month end for the fiscal month ended at least thirty (30) days prior to the date of the Request for Advance.” 
  

	23.	Section 7.6(b) of the Credit Agreement is hereby amended and restated as follows: 

“(b) no more than two times in any twelve (12) month period during such time as there is any amount outstanding under
the Revolving Credit (and no more than once in a twelve (12) month period when there is no amount outstanding under the Revolving Credit), during normal business hours, upon the request of the Agent, to conduct full or partial collateral audits
of the Accounts and Inventory of the Credit Parties and appraisals of all or a portion of the fixed assets (including real property) of the Credit Parties, such audits and appraisals to be completed by an appraiser as may be selected by Agent and
consented to by Borrower (such consent not to be unreasonably withheld), with all reasonable costs and expenses of such audits to be reimbursed by the Credit Parties. Upon making a Request for Advance where there has been no collateral audit within
the previous six months, Agent shall conduct full or partial collateral audits of the Accounts and Inventory of the Credit Parties at any time upon receiving such Request for Advance but no later than forty-five (45) days after making such
Advance, and such audit shall count towards the two collateral audits which Agent may conduct in any twelve (12) month period;” 

  
 12 

	24.	Section 7.9 of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“7.9 Financial Covenants. Only when there are amounts outstanding under the Revolving Credit or pursuant to
Section 2.3(g): 
 (a) Maintain as of the end of each month, an Adjusted Quick Ratio of not less than 1.25 to 1.00. 

(b) Maintain as of the end of each fiscal quarter for the trailing twelve (12) month period, EBITDA of not less than the
following amounts as of the applicable fiscal quarter end: 
  

					
	 June 30, 2015
		$	1	  
	 September 30, 2015
		$	2,000,000	  
	 December 31, 2015
		$	3,000,000	  
	 March 31, 2016
		$	4,000,000	  
	 June 30, 2016
		$	5,000,000	  

 (and increasing every fiscal quarter thereafter in $1,000,000 increments; provided that there
shall be no loss in EBITDA greater than Two Million Dollars ($2,000,000) in any fiscal quarter during such trailing four quarter period). 
  

	25.	Section 7.14 of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“7.14 Accounts. Maintain primary operating accounts (other than (a) payroll accounts, (b) foreign
accounts, and (c) merchant deposit accounts and certificates of deposit to support merchant card products) of any Credit Party with Agent, or any other financial institution reasonably acceptable to Agent and such accounts held with Agent shall
have a minimum balance, in the aggregate, of Ten Million Dollars ($10,000,000) at all times; provided that with respect to any such accounts maintained with any Person (other than Agent), Agent is deemed to have approved such accounts and such
Credit Party (x) shall cause to be executed and delivered an Account Control Agreement in form and substance satisfactory to Agent and (y) has taken all other steps necessary, or in the opinion of the Agent, desirable to ensure that Agent
has a perfected security interest in such account.” 
  

	26.	Section 8.4(h) of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“(h) (i) Asset Sales (exclusive of asset sales permitted pursuant to all other subsections of this Section 8.4) in
which the sales price is at least equal to the fair market value of the assets sold and the consideration received is Cash, Equity Interests or Debt of any Credit Party being assumed by the purchaser; provided that in order make any Asset Sale (the
“Subject Asset Sale”) under this clause (h)(i) (A) the aggregate amount of the Net Cash Proceeds from all prior Asset Sales made under this clause (h)(i) in that Fiscal Year together with the Subject Asset Sale does not exceed five
percent (5%) of 

  
 13 

 
Borrower’s Total Assets in any Fiscal Year and no Default or Event of Default has occurred and is continuing at the time of each such sale (both before and after giving effect to such Asset
Sale), and (B) the aggregate amount of the Net Cash Proceeds from all prior Asset Sales made under this clause (h)(i) in that Fiscal Year together with the Subject Asset Sale shall not exceed $5,000,000 in any Fiscal Year; provided however,
that compliance with the foregoing clause (h)(i) shall only be required when Borrower makes a Request for Advance or where there are any amounts outstanding under the Revolving Credit, and (ii) other Asset Sales approved by the Majority Lenders
in their sole discretion;” 
  

	27.	Section 8.5(d) of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“(d) Borrower may make Distributions to its shareholders and make Purchases from time to time, provided that (i) at
the time paid and after giving effect to such Distribution or Purchase, no Default or Event of Default shall exist, and (ii) the aggregate amount of all Permitted Acquisitions using Cash Proceeds, Distributions and Purchases shall not exceed
$15,000,000 during the term of this Agreement;” 
  

	28.	Section 8.6 of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“8.6 Limitation on Capital Expenditures. Commencing with the Fiscal Year ending June 30, 2015, at any time
when any amounts are outstanding under the Revolving Credit, make or commit to make (by way of the acquisition of securities of a Person or otherwise) any expenditure in respect of the purchase or other acquisition of fixed or capital assets
(exclusive of any expenditures to the extent constituting any portion of a Permitted Acquisition) except for Capital Expenditures, the amount of which when measured with all other Capital Expenditures previously made in such Fiscal Year shall not
exceed $8,000,000 in any Fiscal Year; provided however, that Borrower shall only be required to comply with this Section 8.6 upon making a Request for Advance or when there are any amounts outstanding under the Revolving Credit.” 

 

	29.	Section 11.8 of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“11.8 Reserved.” 
  

	30.	Section 12.13 of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“12.13 Reserved.” 
  

	31.	Existing Schedule 1.1 to the Credit Agreement is hereby deleted and replaced as follows: 

“Schedule 1.1 Reserved.” 

  
 14 

	32.	Existing Schedule 1.2 to the Credit Agreement is hereby deleted and replaced with new Schedule 1.2 attached hereto as Attachment 1. 

  

	33.	Existing Exhibit J to the Credit Agreement is hereby deleted and replaced with new Exhibit J attached hereto as Attachment 2. 

  

	34.	This Third Amendment shall become effective (according to the terms hereof) on the Third Amendment Effective Date, provided, that, the following conditions shall have been satisfied: 

 

	 	(a)	Agent shall have received fully executed versions of this Third Amendment, in each case duly executed and delivered by Borrower, Agent and Comerica Bank, as Lender, in form reasonably satisfactory to Agent;

  

	 	(b)	Agent shall have received fully executed versions of replacement Revolving Credit Notes for each Revolving Credit Lender, in each case duly executed and delivered by Borrower; 

 

	 	(c)	Agent shall have received the Reaffirmation of Guaranty attached hereto, executed by each Guarantor; 

  

	 	(d)	Agent shall have received updated Schedules with respect to Section 6 of the Credit Agreement; 

  

	 	(e)	Borrower shall have prepaid the Existing Term Indebtedness in full; 

  

	 	(f)	Borrower shall be in compliance, on a pro forma basis, with the financial covenant ratios required to be maintained under Section 7.9(a) and (b) of the Credit Agreement if Borrower makes a Request for
Advance on the Third Amendment Effective Date; and 

  

	 	(g)	Borrower shall have paid to Agent (i) the facility fee in an amount equal to Sixty Two Thousand Five Hundred Dollars ($62,500), and (ii) all fees, costs and expenses (including attorneys’ fees and
expenses), if any, owed to Agent and Lenders and accrued to the Third Amendment Effective Date, in each case, as and to the extent required to be paid in accordance with the Loan Documents. 

 

	35.	 Borrower hereby represents and warrants that, after giving effect to the Third Amendment and consents contained herein, (a) the execution and
delivery of this Third Amendment are within its corporate powers, have been duly authorized, are not in contravention of law or the terms of its organizational documents, and except as have been previously obtained do not require the consent or
approval, material to the amendments contemplated in this Third Amendment, of any governmental body, agency or authority, and this Third Amendment and the Credit Agreement (as amended herein) will constitute the valid and binding obligations of such
Borrower enforceable in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, reorganization, insolvency, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by
general 

  
 15 

	 	
principles of equity (whether enforcement is sought in a proceeding in equity or at law), (b) the continuing representations and warranties set forth in Article 6 of the Credit Agreement are
true and correct in all material respects on and as of the date hereof (other than any representation or warranty that expressly speaks only as of a certain date), and (c) as of this Third Amendment Effective Date, no Default or Event of
Default shall have occurred and be continuing. 

  

	36.	Borrower Agent and Lenders each hereby ratify and confirm their respective obligations under the Credit Agreement, as amended by this Third Amendment, and agree that the Credit Agreement hereby remains in full force and
effect after giving effect to this Third Amendment and that, upon such effectiveness, all references in such Loan Documents to the “Credit Agreement” shall be references to the Credit Agreement, as amended by this Third Amendment.

  

	37.	Except as specifically set forth above, this Third Amendment shall not be deemed to amend or alter in any respect the terms and conditions of the Credit Agreement, any of the Notes issued thereunder, or to constitute a
waiver by Lenders or Agent of any right or remedy under or a consent to any transaction not meeting the terms and conditions of the Credit Agreement, any of the Notes issued thereunder or any of the other Loan Documents. 

 

	38.	This Third Amendment embodies the entire agreement and understanding among the parties hereto relating to the subject matter hereof and supersedes all prior agreements and understandings relating to the subject matter
hereof. No course of prior dealings among the parties hereto, no usage of the trade, and no parol or extrinsic evidence of any nature, shall be used or be relevant to supplement, explain or modify any term used herein. In the event of any conflict
between the terms and provisions of this Third Amendment and any Loan Document, the terms and provisions of this Third Amendment shall control. This Third Amendment has been fully reviewed and negotiated between the parties and no uncertainty or
ambiguity in any term or provision of this Agreement shall be construed strictly against Lender or Borrower under any rule of construction or otherwise. 

  

	39.	This Third Amendment may be executed in counterpart in accordance with Section 13.9 of the Credit Agreement. 

  

	40.	This Third Amendment shall be construed in accordance with and governed by the laws of the State of California. 

  
 16 

 IN WITNESS WHEREOF, the Borrower, the Lenders and Agent have each caused this Third Amendment to
be executed by their respective duly authorized officers or agents, as applicable, all as of the date first set forth above. 
  

			
	COMERICA BANK, as Agent
		
	By:		 /s/ Kim Crosslin

	Name: Kim Crosslin
	Title:   Senior Vice President

  
 Signature Page to
Third Amendment 

 
			
	COMERICA BANK, as Issuing Lender and as a Lender
		
	By:		 /s/ Kim Crosslin

	Name: Kim Crosslin
	Title:   Senior Vice President

  
 Signature Page to
Third Amendment 

 
			
	QUINSTREET, INC.
		
	By:		 /s/ Gregory Wong

	Name: Gregory Wong
	Its:       Chief Financial Officer

  
 Signature Page to
Third Amendment 

 REAFFIRMATION OF GUARANTY 

Each of the undersigned guarantors hereby consents to the foregoing Third Amendment and hereby ratifies and reaffirms its obligations under its Guaranty
issued to Agent for and on behalf of the Lenders. 
  

			
	QUINSTREET LLC
		
	By:		 /s/ Douglas Valenti

	Its:		Chief Executive Officer
	
	QUINSTREET MEDIA, INC.
		
	By:		 /s/ Douglas Valenti

	Its:		Chief Executive Officer
	
	HQ PUBLICATIONS LLC
		
	By:		 /s/ Douglas Valenti

	Its:		Chief Executive Officer

 ATTACHMENT 1 

Schedule 1.2 

Percentages and Allocations 

Revolving Credit Facility 
  

									
	 LENDERS
	  	REVOLVING CREDIT
ALLOCATIONS	 	  	REVOLVING
CREDIT
PERCENTAGE	 
	 Comerica Bank
	  	$	25,000,000	  	  	 	100	% 
	 TOTAL
	  	$	25,000,000	  	  	 	100	% 

 ATTACHMENT 2 

EXHIBIT J 
 FORM OF
COVENANT COMPLIANCE REPORT 
 TO:     Comerica Bank, as Agent 

RE:     Second Amended and Restated Revolving Credit and Term Loan Agreement made as of the 4th day of November, 2011 (as amended,
restated or otherwise modified from time to time, the “Credit Agreement”) by and among the financial institutions from time to time signatory thereto (individually a “Lender,” and any and all such financial institutions
collectively the “Lenders”), Comerica Bank, as Administrative Agent for the Lenders (in such capacity, the “Agent”) and QuinStreet, Inc. (“Borrower”). 

This Covenant Compliance Report (“Report”) is furnished pursuant to Section 7.2(a) of the Credit Agreement and sets forth various information
as of                     , 20         (the “Computation Date”). 

 

	1.	Adjusted Quick Ratio (Section 7.9(a))1. On the Computation Date, the Adjusted Quick Ratio, which is required to be not less than 1.25 to 1.0 was
             to 1.0 as computed in the supporting documents attached hereto as Schedule 1. 

  

	2.	EBITDA (Section 7.9(b))2, On the Computation Date, EBITDA, which is required to be not less than
                 was                  as computed in the supporting
documents attached hereto as Schedule 2. 

  

	3.	Asset Sales (Section 8.4(h))3. The aggregate amount of Net Cash Proceeds from Asset Sales in the current Fiscal Year through the Computation Date, which is
required to be no greater than $5,000,000 was                 . 

  

	4.	Capital Expenditures (Section 8.6)4. The aggregate amount of Capital Expenditures in the current Fiscal Year through the Computation Date, which is required to
be no greater than $8,000,000 was                 . 

The Borrower’s Representative hereby certifies that: 

 

	1 	This paragraph 1 shall only be required for the Report delivered within 30 days of the end of each month pursuant to Section 7.2(a) (provided that, for the last month of any fiscal quarter, this paragraph shall only be
required for the Report delivered within 45 days of the end of such month), but shall not be required unless there is any amount outstanding under the Revolving Credit or Borrower makes a Request for Advance. 

	2 	This paragraph 2 shall only be required for the Report delivered within 45 days of the end of each fiscal quarter, but shall not be required unless there is any amount outstanding under the Revolving Credit or Borrower
makes a Request for Advance. 

	3 	This paragraph 3 shall only be required for the Report delivered within 45 days of the end of each fiscal quarter, but compliance shall not be required unless there is any amount outstanding under the Revolving Credit
or Borrower makes a Request for Advance. 

	4 	This paragraph 4 shall only be required for the Report delivered within 45 days of the end of each fiscal quarter, but compliance shall not be required unless there is any amount outstanding under the Revolving Credit
or Borrower makes a Request for Advance. 

 A. To the best of my knowledge, the Borrowing Base Certificate and the monthly aging of the
accounts receivable and accounts payable of the Credit Parties for the most recent month end are attached to this Report and are true and correct in all material respects.1 

B. To the best of my knowledge, all of the information set forth in this Report (and in any Schedule attached hereto) is true and correct in
all material respects. 
 C. To the best of my knowledge, the representation and warranties of the Credit Parties contained in the Credit
Agreement and in the Loan Documents are true and correct in all material respects with the same effect as though such representations and warranties had been made on and at the date hereof, except to the extent that such representations and
warranties expressly relate to an earlier specific date, in which case such representations and warranties were true and correct in all material respects as of the date when made. 

D. I have reviewed the Credit Agreement and this Report is based on an examination sufficient to assure that this Report is accurate. 

E. To the best of my knowledge, except as stated in Schedule 3 hereto (which shall describe any existing Default or Event of Default and the
notice and period of existence thereof and any action taken with respect thereto or contemplated to be taken by Borrower or any other Credit Party), no Default or Event of Default has occurred and is continuing on the date of this Report. 

Capitalized terms used in this Report and in the Schedules hereto, unless specifically defined to the contrary, have the meanings given to
them in the Credit Agreement. 
  
  

	1 	This paragraph A shall be required for the Report delivered as of the end of each month, unless there are no amounts outstanding under the Revolving Credit, in which case paragraph A shall only be required for the
Report delivered as of the end of each quarter pursuant to Section 7.2(j) of the Credit Agreement. 

 IN WITNESS WHEREOF, Borrower has caused this Report to be executed and delivered by a Responsible
Officer of the Borrower this              day of
                            . 

 

			
	QUINSTREET, INC.
		
	By:		  

	Its:

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