Document:

EX-10.1

 Exhibit 10.1 
 June 6, 2013 
 Karen Willem 
 Dear Karen: 
 I am pleased to offer you employment in the position of Senior Vice President and
Chief Financial Officer at iPass Inc. (“iPass” or the “Company”), reporting to me, under the terms set forth in this letter. Your first date of employment will be July 1, 2013. Your initial base salary will be $12,500.00,
paid semi-monthly, plus benefits, including the option of participating in our 401(k) Plan. If annualized, this base salary amount equals $300,000.00. As an exempt employee, you will not be eligible for overtime compensation. 

In addition, you will be eligible to earn a target annual bonus of $150,000.00 paid on a quarterly basis consistent with the management bonus plan.
Bonuses are only considered earned if the participant is an employee of iPass in good standing on the last day of the fiscal quarter and has successfully completed the quarterly objectives. If you leave the Company for any reason during the quarter,
no pro-rata bonus shall be earned. The Company shall have the sole discretion to determine if you have met all of the requirements for earning a bonus (including completion of the applicable objectives) and, if so, the amount of the bonus payment.
If earned, the bonus payments generally will be paid within forty-five (45) days following the end of the Company’s fiscal quarter to allow the Company time to determine bonus calculations. Assuming your employment with iPass starts on
July 1, 2013, for the quarters ending September 30, 2013 and December 31, 2013, respectively, you will be paid the greater of: (i) 100% of your quarterly bonus opportunity; or (ii) the actual amount which would be earned
under the 2013 Executive Management Bonus Plan ( the “2013 EMBP”) pursuant to the terms of the 2013 EMBP. Any bonus provided to you will be subject to standard deductions and withholdings. 

Further, subject to the approval of the Board of Directors of iPass (the “Board”), you will be granted an option to purchase 375,000 shares of
iPass’ common stock, subject to a four-year vesting schedule, at a purchase price equal to the fair market value of the stock as of the date of grant (as determined by the Board) under the iPass 2003 Equity Incentive Plan (the
“Plan”). The option will be governed by the terms of the Plan and your stock option agreement. The Company will also issue to you a Restricted Stock Award (“RSA”) consisting of 100,000 shares of restricted stock in the Company
which will vest as set forth in the governing RSA Agreement. 
 In addition, should you remain continuously employed into January 2014, subject
to Board approval, you will be granted an option to purchase 150,000 shares of iPass’ common stock, subject to a four-year vesting schedule, at a purchase price equal to the fair market value of the stock as of the date of grant (as determined
by the Board) under the iPass 2003 Equity Incentive Plan (the “Plan”). The option will be governed by the terms of the Plan and your stock option agreement. 
 iPass offers its employees health, dental, vision, life, AD&D, and short term and long term disability insurance, and you will be eligible to participate in these benefit plans in accordance with the
terms and conditions of the applicable plan documents. The health and dental plans provide you with several options regarding your care. Please read the enclosed information about the health and dental plan options available to you. You may call
Mike Badgis with any questions about health insurance or any other iPass benefits at (650) 232-4130. iPass may modify your position, duties, reporting relationship, office location, and compensation and benefits from time to time in its
discretion. 

 In addition, in the position of Senior Vice President and Chief Financial Officer, you will be eligible to
become a “Tier 1 Participant” under the Company’s Executive Corporate Transaction and Severance Benefit Plan (the “Executive Severance Plan”), which provides specified severance benefits to certain eligible executive
employees of the Company in the event of qualifying employment terminations, pursuant to the terms and conditions of the Executive Severance Plan. The Executive Severance Plan material will be provided to you separately. 

This offer is contingent upon the successful results of background and reference checks, your execution of and compliance with the Company’s
Employee Confidentiality and Inventions Assignment Agreement (attached hereto as Exhibit A) and satisfactory proof of your right to work in the United States. You agree to assist as needed and to complete any documentation at the Company’s
request to meet these conditions. In addition, as a condition of your employment, you will be required to abide by the Company’s policies and procedures, including but not limited to the policies set forth in the Company’s Employee
Handbook, as may be in effect from time to time. Employment with iPass is at the will of each party, is not for a specific term and can be terminated by you or by the Company at any time, with or without cause and with or without advance notice.

 This letter, along with your Employee Confidentiality and Inventions Assignment Agreement, is the entire agreement between you and iPass
concerning your employment terms, and it supersedes any other agreements or promises made to you by anyone, whether written or oral. The terms of this letter cannot be changed (except with respect to those changes expressly reserved to the
Company’s discretion herein) unless such changes are in writing and signed by an authorized representative of iPass. This offer is valid until Friday, June 7, 2013 at 5:00 pm, at which time it will expire if you have not returned this
fully signed letter to the Company. 
 Please signify your acceptance of employment with the Company under the terms provided in this letter
by signing and dating below and returning this offer letter to Mike Badgis at fax number (650) 232-0232 or by email at mbadgis@ipass.com. 
 Karen, your acceptance of our offer represents a unique opportunity for us both to grow and succeed. We all want to thank you in advance for your faith in us, and for the commitment you have made to our
common vision. 
 Finally, we all look forward to working and building iPass with you! 

 

					
	Welcome aboard,	 		 	Understood And Accepted
			
	 /S/ Evan L. Kaplan
	 		 	 /S/ Karen Willem

	Evan L. Kaplan	 		 	Karen Willem
	President & CEO	 		 	
			
		 		 	6/7/2013
		 		 	Date

 Exhibit A - Employee Confidentiality and Inventions Assignment Agreement 

 EMPLOYEE CONFIDENTIALITY AND INVENTIONS ASSIGNMENT AGREEMENT 

In consideration of my employment or continued employment by IPASS, INC.
(“Company”), and the compensation now and hereafter paid to me, I hereby agree as follows: 

 

	1.	CONFIDENTIALITY. 

 1.1 Nondisclosure; Recognition of Company’s Rights. At all times during my employment and thereafter, I will hold in confidence and will not disclose, use, lecture upon, or publish any of
Company’s Confidential Information (defined below), except as such use is required in connection with my work for Company, or unless the Chief Executive Officer (the “CEO”) of Company expressly authorizes in writing such
disclosure or publication. I will obtain the CEO’s written approval before publishing or submitting for publication any material (written, oral, or otherwise) that relates to my work at Company and/or incorporates any Confidential Information.
I hereby assign to Company any rights I have or acquire in any and all Confidential Information and recognize that all Confidential Information shall be the sole and exclusive property of Company and its assigns. 

1.2 Confidential Information. The term “Confidential Information” shall mean any and all confidential
knowledge, data or information related to Company’s business or its actual or demonstrably anticipated research or development, including without limitation: (a) trade secrets, inventions, ideas, processes, computer source and object code,
data, formulae, programs, other works of authorship, know-how, improvements, discoveries, developments, designs, and techniques; (b) information regarding products, plans for research and development, marketing and business plans, budgets,
financial statements, contracts, prices, suppliers, and customers; (c) information regarding the skills and compensation of Company’s employees, contractors, and any other service providers of Company; and (d) the existence of any
business discussions, negotiations, or agreements between Company and any third party. 
 1.3 Third Party Information.
I understand, in addition, that Company has received and in the future will receive from third parties confidential or proprietary information (“Third Party Information”) subject to a duty on Company’s part to maintain the
confidentiality of such information and to use it only for certain limited purposes. During the term of my employment and thereafter, I will hold Third Party Information in strict confidence and will not disclose to anyone (other than Company
personnel who need to know such information in connection with their work for Company) or use, except in connection with my work for Company, Third Party Information, unless expressly authorized by an officer of Company in writing.

 1.4 No Improper Use of Information of Prior Employers and Others. I represent that
my employment by Company does not and will not breach any agreement with any former employer, including any noncompete agreement or any agreement to keep in confidence information acquired by me in confidence or trust prior to my employment by
Company. I further represent that I have not entered into, and will not enter into, any agreement, either written or oral, in conflict herewith. During my employment by Company, I will not improperly use or disclose any confidential information or
trade secrets of any former employer or other third party to whom I have an obligation of confidentiality, and I will not bring onto the premises of Company or use any unpublished documents or any property belonging to any former employer or other
third party to whom I have an obligation of confidentiality, unless consented to in writing by that former employer or person. I will use in the performance of my duties only information that is generally known and used by persons with training and
experience comparable to my own, is common knowledge in the industry or otherwise legally in the public domain, or is otherwise provided or developed by Company. 
  

	2.	INVENTIONS. 

 2.1 Inventions and Intellectual Property Rights. As used in this Agreement, the term “Invention” means any ideas, concepts, information, materials, processes, data, programs,
know-how, improvements, discoveries, developments, designs, artwork, formulae, other copyrightable works, and techniques and all Intellectual Property Rights therein. The term “Intellectual Property Rights” means all trade secrets,
copyrights, trademarks, mask work rights, patents and other intellectual property rights recognized by the laws of any jurisdiction or country. 
 2.2 Prior Inventions. I agree that I will not incorporate, or permit to be incorporated, Prior Inventions (defined below) in any Company Inventions (defined below) without Company’s prior
written consent. In addition, I agree that I will not incorporate into any Company software or otherwise deliver to Company any software code licensed under the GNU GPL or LGPL or any other license that, by its terms, requires or conditions the use
or distribution of such code on the disclosure, licensing, or distribution of any source code owned or licensed by Company. I have disclosed on Exhibit A a complete list of all Inventions that I have, or I have caused to be, alone or jointly with
others, conceived, developed, or reduced to practice prior to the commencement of my employment by Company, in which I have an ownership interest or which I have a license to use, and that I wish to

 

  
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have excluded from the scope of this Agreement (collectively referred to as “Prior Inventions”). If no Prior Inventions are listed in Exhibit A, I warrant that there are no Prior
Inventions. If, in the course of my employment with Company, I incorporate a Prior Invention into a Company process, machine or other work, I hereby grant Company a non-exclusive, perpetual, fully-paid and royalty-free, irrevocable and worldwide
license, with rights to sublicense through multiple levels of sublicensees, to reproduce, make derivative works of, distribute, publicly perform, and publicly display in any form or medium, whether now known or later developed, make, have made, use,
sell, import, offer for sale, and exercise any and all present or future rights in, such Prior Invention. 
 2.3 Assignment
of Company Inventions. Subject to the section titled “Government or Third Party” and except for Inventions that I can prove qualify fully under the provisions of California Labor Code section 2870 and I have set forth in Exhibit A, I
hereby assign and agree to assign in the future (when any such Inventions or Intellectual Property Rights are first reduced to practice or first fixed in a tangible medium, as applicable) to Company all my right, title, and interest in and to any
and all Inventions (and all Intellectual Property Rights with respect thereto) made, conceived, reduced to practice, or learned by me, either alone or with others, during the period of my employment by Company. Inventions assigned to Company or to a
third party as directed by Company pursuant to the section titled “Government or Third Party” are referred to in this Agreement as “Company Inventions.” 
 2.4 Obligation to Keep Company Informed. During the period of my employment and for one (1) year thereafter, I will promptly and fully disclose to Company in writing (a) all Inventions
authored, conceived, or reduced to practice by me, either alone or with others, including any that might be covered under California Labor Code section 2870, and (b) all patent applications filed by me or in which I am named as an inventor or
co-inventor. 
 2.5 Government or Third Party. I also agree to assign all my right, title, and interest in and to any
particular Company Invention to a third party, including without limitation the United States, as directed by Company. 

2.6 Enforcement of Intellectual Property Rights and Assistance. During the period of my employment and thereafter, I will assist
Company in every proper way to obtain and enforce United States and foreign Intellectual Property Rights relating to Company Inventions in all countries. In the event Company is unable to secure my signature on any document needed in connection with
such purposes, I hereby irrevocably designate and appoint Company and its duly authorized officers and agents as my agent and attorney in fact, which

 
appointment is coupled with an interest, to act on my behalf to execute and file any such documents and to do all other lawfully permitted acts to further such purposes with the same legal force
and effect as if executed by me. 
 3. RECORDS. I agree to keep and maintain adequate and current records (in the form of
notes, sketches, drawings and in any other form that is required by Company) of all Inventions made by me during the period of my employment by Company, which records shall be available to, and remain the sole property of, Company at all times.

 4. ADDITIONAL ACTIVITIES. I agree that (a) during the term of my employment by Company, I will not,
without Company’s express written consent, engage in any employment or business activity that is competitive with, or would otherwise conflict with my employment by, Company, and (b) for the period of my employment by Company and for one
(l) year thereafter, I will not, either directly or indirectly, solicit or attempt to solicit any employee, independent contractor, or consultant of Company to terminate his, her or its relationship with Company in order to become an employee,
consultant, or independent contractor to or for any other person or entity. 
 5. RETURN OF
COMPANY PROPERTY. Upon termination of my employment or upon Company’s request at any other time, I will deliver to Company all of Company’s property, equipment, and documents, together with all copies
thereof, and any other material containing or disclosing any Inventions, Third Party Information or Confidential Information of Company and certify in writing that I have fully complied with the foregoing obligation. I agree that I will not copy,
delete, or alter any information contained upon my Company computer before I return it to Company. I further agree that any property situated on Company’s premises and owned by Company is subject to inspection by Company personnel at any time
with or without notice. Prior to leaving, I will cooperate with Company in attending an exit interview and completing and signing Company’s termination statement. 
 6. NOTIFICATION OF NEW EMPLOYER. In the event that I leave the employ of Company, I hereby consent to the notification of my new employer
of my rights and obligations under this Agreement, by Company’s providing a copy of this Agreement or otherwise. 
  

	7.	GENERAL PROVISIONS. 

 7.1 Governing Law and Venue. This Agreement and any action related thereto will be governed, controlled, interpreted, and defined by and under the laws of the State of California, without giving
effect to any conflicts of laws principles that require the application of the law of a different state. I hereby expressly consent to the personal jurisdiction and venue in the state and federal

 

  
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courts for the county in which Company’s principal place of business is located for any lawsuit filed there against me by Company arising from or related to this Agreement. 

7.2 Severability. If any provision of this Agreement is, for any reason, held to be invalid or unenforceable, the other
provisions of this Agreement will be unimpaired and the invalid or unenforceable provision will be deemed modified so that it is valid and enforceable to the maximum extent permitted by law. 

7.3 Survival. This Agreement shall survive the termination of my employment and the assignment of this Agreement by Company to
any successor-in-interest or other assignee and be binding upon my heirs and legal representatives. 
 7.4 At-Will
Employment. I agree and understand that nothing in this Agreement shall confer any right with respect to continuation of employment by Company, nor shall it interfere in any way with my right or Company’s right to terminate my employment at
any time, with or without cause and with or without advance notice. 
 7.5 Notices. Each party must deliver all notices
or other communications required or permitted under this Agreement in writing to the other party at the address listed on the signature page, by courier, by certified or registered mail (postage prepaid and return receipt requested), or by a
nationally-recognized express mail service. Notice will be effective upon receipt or refusal of delivery. If delivered by certified or registered mail, any such notice will be considered to have been given five (5) business days after it was
mailed, as evidenced by the postmark. If delivered by courier or express mail service, any such notice shall be considered to have been given on the delivery date reflected by the courier or express mail service receipt. Each party may change its
address for receipt of notice by giving notice of such change to the other party.

 7.6 Injunctive Relief. I acknowledge that, because my services are personal and
unique and because I will have access to the Confidential Information of Company, any breach of this Agreement by me would cause irreparable injury to Company for which monetary damages would not be an adequate remedy and, therefore, will entitle
Company to injunctive relief (including specific performance). The rights and remedies provided to each party in this Agreement are cumulative and in addition to any other rights and remedies available to such party at law or in equity. 

7.7 Waiver. Any waiver or failure to enforce any provision of this Agreement on one occasion will not be deemed a waiver of any
other provision or of such provision on any other occasion. 
 7.8 Export. I agree not to export, directly or
indirectly, any U.S. technical data acquired from Company or any products utilizing such data, to countries outside the United States, because such export could be in violation of the United States export laws or regulations. 

7.9 Entire Agreement. The obligations pursuant to sections of this Agreement titled “Confidentiality” and
“Inventions” shall apply to any time during which I was previously employed, or am in the future employed, by Company as an independent contractor if no other agreement governs nondisclosure and assignment of inventions during such period.
This Agreement is the final, complete and exclusive agreement of the parties with respect to the subject matters hereof and supersedes and merges all prior communications between us with respect to such matters. No modification of or amendment to
this Agreement, or any waiver of any rights under this Agreement, will be effective unless in writing and signed by me and the CEO of Company. Any subsequent change or changes in my duties, salary or compensation will not affect the validity or
scope of this Agreement. 

 

  
 This Agreement shall
be effective as of the first day of my employment with Company. 
  

			
	EMPLOYEE:	  	COMPANY:
		
	I ACKNOWLEDGE THAT I HAVE READ AND UNDERSTAND THIS
AGREEMENT AND HAVE BEEN GIVEN THE OPPORTUNITY TO DISCUSS IT WITH
INDEPENDENT LEGAL COUNSEL.	  	 ACCEPTED AND AGREED:

		
	 /s/ Karen Willem
 (Signature)
  
 By: Karen Willem
  
 Title:
CFO
  
 Date: July 1, 2013

 
 Address:
	  	 /s/ J. Michael Badgis
 (Signature)
  
 By: J. Michael Badgis
  
 Title:
Vice President, HR
  
 Date: July 1, 2013

 
 Address: 3800 Bridge Parkway Redwood Shores, CA 94065

  
 5 

 EXHIBIT A 
 INVENTIONS 
  

	1.	Prior Inventions Disclosure. The following is a complete list of all Prior Inventions: 

 

	 	x	None 

  

	 	 ̈	See immediately below: 

  

 
  

 
  

	2.	Limited Exclusion Notification. 

 THIS IS TO NOTIFY you in accordance with Section 2872 of the California Labor Code that the foregoing Agreement
between you and Company does not require you to assign or offer to assign to Company any Invention that you develop entirely on your own time without using Company’s equipment, supplies, facilities or trade secret information, except for those
Inventions that either: 
 a. Relate at the time of conception or reduction to practice to Company’s business, or
actual or demonstrably anticipated research or development; or 
 b. Result from any work performed by you for Company.

 To the extent a provision in the foregoing Agreement purports to require you to assign an Invention otherwise excluded from
the preceding paragraph, the provision is against the public policy of this state and is unenforceable. 
 This limited
exclusion does not apply to any patent or Invention covered by a contract between Company and the United States or any of its agencies requiring full title to such patent or Invention to be in the United States. 

  
 A-1EX-10.1

 Exhibit 10.1 
 AMENDMENT NO. 1 
 Dated as of February 7, 2013 

to 
 CREDIT
FACILITY LOAN AGREEMENT 
 Dated as of May 8, 2012 
 THIS AMENDMENT NO. 1 (“Amendment”) is made as of February 7, 2013, by and among PROPEL FINANCIAL SERVICES, LLC, a Texas limited liability company (“Borrower”), the
financial institutions listed on the signature pages hereof (the “Banks”) and TEXAS CAPITAL BANK, NATIONAL ASSOCIATION, a national banking association, as Administrative Agent (in such capacity, “Agent”) under that
certain Credit Facility Loan Agreement dated as of May 8, 2012, by and among the Borrower, the Banks and the Agent (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”). Capitalized terms
used herein and not otherwise defined herein shall have the respective meanings given to them in the Credit Agreement. 

WHEREAS, the Borrower has requested that the Banks and the Agent agree to certain amendments with respect to the Credit Agreement;

 WHEREAS, the Banks and the Agent have agreed to such amendments on the terms and conditions set forth herein; 

NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower, the Banks and the Agent have agreed to enter into this Amendment. 
 1. Amendments to Agreement. Effective as of the date hereof, the Credit Agreement is amended as follows: 
 (a) Section 1.1 of the Credit Agreement is amended to add the following definition in its appropriate alphabetical order therein: 

“ “Eligible Tax Lien” means, a tax lien (a) on real property located in the State of Arizona
and (b) acquired, directly or indirectly, from governmental taxing authorities by a Credit Party.” 
 (b)
Section 1.1 of the Credit Agreement is further amended to amend and restate the definitions of “Approved Purposes”, “Borrowing Base” and “Collateral” set forth therein in their entirety as follows:

 “ “Approved Purposes” means the costs to finance the purchase and/or origination of
Notes Receivable and Eligible Tax Liens and sums used to refinance existing debt made for such purpose.” 

 “ “Borrowing Base” means, at any time, an amount equal
to ninety percent (90%) of the sum of (i) the aggregate outstanding principal balance of the Notes Receivable and (ii) the aggregate purchase price of all Eligible Tax Liens; provided that the aggregate amount included in the
Borrowing Base pursuant to clause (ii) shall at no time exceed 10% of the Committed Sum.” 
 “
“Collateral” means, all property (regardless of owner) which secures, either directly or indirectly, the Indebtedness and the Obligations, including all of those assets and properties of Borrower and the other Credit Parties listed
below, whether now owned or hereafter acquired, wherever located, howsoever arising or created, and whether now existing or hereafter arising, existing or created: 

(i) All Notes Receivable in the actual or constructive possession of Agent or in the actual or constructive possession of
a Credit Party in trust for Agent or in transit to or from Agent as collateral for the Indebtedness or designated by a Credit Party as collateral for the Indebtedness (whether or not delivered to Agent); 

(ii) All Eligible Tax Liens; 
 (iii) All present and future Accounts, Instruments, Documents, Chattel Paper, and General Intangibles, and other personal property now owned or hereafter acquired by a Credit Party arising from or by
virtue of any transaction related to its business; 
 (iv) All books and records, customer lists, credit files,
computer files, programs, printouts and other computer materials and records related thereto; and 
 (v) All
proceeds and products thereof, of whatever kind or nature from any of such collateral described in paragraphs (a)(i), (ii), (iii) and (iv) above. 
 As used herein, Accounts, Chattel Paper, Instruments, Documents, and General Intangibles shall have the respective meanings assigned to them in the Code.” 

(c) Section 6.13 of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“Within sixty (60) days after the Closing Date, within one hundred twenty (120) days after the last day of
each calendar year, and at such other times as Agent may request in writing, Borrower shall, and shall cause each of the Credit Parties to, permit representatives of Agent, at the expense of Borrower, to inspect and conduct an audit of all of the
Credit Parties’ assets, properties, books and records (including the Notes Receivable and Eligible Tax Liens).” 
 (d)
Section 7.4 of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“Borrower will not, and will not permit any other Credit Party to, become a party to a merger or consolidation, or
purchase or otherwise acquire all or any part of the assets of any Person (other than portfolios of Notes Receivable or Eligible Tax Liens) or any shares, or other evidence of beneficial ownership of any Person, or wind-up, dissolve, or liquidate
other than (i) mergers with another Credit Party so long as, if the Borrower is one of the parties to such merger, the Borrower is the surviving party and (ii) as a result of investments permitted under Section 7.6.”

  
 2 

 (e) Section 7.6 of the Credit Agreement is hereby amended to add the following
clause 7.6(e) immediately following clause 7.6(d) thereof: 
 “Eligible Tax Liens and portfolios of Eligible
Tax Liens.” 
 (f) Section 7.9 of the Credit Agreement is hereby amended and restated in its entirety as
follows: 
 “Borrower will not, and will not permit any other Credit Party to, sell, lease, assign,
transfer, or otherwise dispose of any of its assets, except (a) dispositions, for fair value, of worn-out and obsolete equipment not necessary to the conduct of its business, or (b) sale of Notes Receivable and Eligible Tax Liens provided
that (i) (A) the Notes Receivable and Eligible Tax Liens are sold for at least 90% of par value (or at less than 90% of par value with the prior written consent of Agent) or (B) Notes Receivable and Eligible Tax Liens sold at less
than 90% of par value shall not, without the prior written consent of Agent, exceed in the aggregate $5,000,000 (par value) in any year, (ii) the proceeds of the sale of the Notes Receivable and Eligible Tax Liens are applied to the principal
balance of the Loan, and (iii) prior to or concurrently with the sale, Borrower has provided to Agent written notice of the sale and copies of the assignment and transfer documents listing and describing the Notes Receivable and the Eligible
Tax Liens and the sales price of the Notes Receivable and Eligible Tax Liens being sold. No sale of Notes Receivable or Eligible Tax Liens shall, after the proceeds of such sale are applied to the principal balance of the Loan, cause the resulting
principal balance of the Loan to exceed the resulting Borrowing Base.” 
 (g) Exhibit A (Borrowing Base Certificate)
of the Credit Agreement is hereby amended and restated in its entirety as set forth on Exhibit A hereto. 
 2. Effective
Date. This Amendment shall become effective as of the first date upon which the Agent shall have received counterparts of the Amendment duly executed by the Borrower, each Bank and the Agent. 

3. Representations and Warranties. Borrower represents to Agent and the Banks that, as of the date of this Amendment and after
giving effect to the provisions hereof, (a) the representations and warranties set forth in the Credit Agreement and each of the other Loan Documents to which it is a party are true and correct in all material respects as if made on and as of
the date hereof (other than those representations and warranties expressly limited by their terms to a specific date), (b) no Event of Default has occurred and is continuing, and (c) no event has occurred since the date of the most recent
financial statements delivered pursuant to the Credit Agreement that has caused a Material Adverse Effect in the financial condition of Borrower. 
 4. Further Assurances. Borrower agrees that it shall, upon request of Agent, duly execute and deliver, or cause to be duly executed and delivered, to Agent such further instruments and do and cause
to be done such further acts as may be necessary or proper in the reasonable opinion of Agent to carry out the provisions and purposes of this Amendment. 
 5. No Claim, Cause of Action or Defense. Borrower agrees that no facts, events, status or conditions presently exist which, either now or with the passage of time or the giving of notice or both,
presently constitute or will constitute a basis for any claim or cause of action against Agent or the Banks or any defense to the payment of any of the indebtedness evidenced or to be evidenced by any of the Loan Documents. 

  
 3 

 6. Reference to and Effect on the Credit Agreement. 

(a) Upon the effectiveness hereof, each reference to the Credit Agreement in the Credit Agreement or any other Loan Document shall mean
and be a reference to the Credit Agreement as amended hereby. 
 (b) Each of the Loan Documents is hereby amended and modified
to the extent necessary to give full force and effect to the terms of this Amendment, and each of such Loan Documents shall hereafter be construed and interpreted after giving full force and effect to the terms of this Amendment. 

(c) Except as specifically amended above, the Credit Agreement and all other documents, instruments and agreements executed and/or
delivered in connection therewith shall remain in full force and effect and are hereby ratified and confirmed. 
 (d) Other than
as expressly set forth herein, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Agent or the Banks, nor constitute a waiver of any provision of the Credit Agreement or any
other documents, instruments and agreements executed and/or delivered in connection therewith. 
 7. Governing Law. This
Amendment shall be governed by and construed in accordance with the internal laws of the State of Texas. This Amendment has been entered into in Bexar County, Texas and shall be performable for all purposes in Bexar County, Texas 

8. Headings. Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a
part of this Amendment for any other purpose. 
 9. Counterparts. This Amendment may be executed by one or more of the
parties hereto on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Signatures delivered by facsimile or PDF shall have the same force and effect as manual
signatures delivered in person. 
 [Signature Pages Follow] 

  
 4 

 IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first above
written. 
  

			
	PROPEL FINANCIAL SERVICES, LLC,
	as the Borrower
		
	By:	 	 /s/ J. Brandon Black

	Name:	 	J. Brandon Black
	Title:	 	President

  
 Signature
Page to Amendment 
 Propel Financial Services, LLC 
 Credit Facility Loan Agreement dated as of May 8, 2012 

 GUARANTOR JOINDER PAGE 
 Guarantors consent to the modification and amendment of the Credit Agreement evidenced by this Amendment. The Guaranty Agreements executed by Guarantors shall continue in full force and effect, and are
hereby ratified and confirmed by Guarantors in all respects. 
  

			
	ENCORE CAPITAL GROUP, INC.,
	a Delaware corporation
		
	By:	 	 /s/ J. Brandon Black

	Name:	 	J. Brandon Black
	Title:	 	President and Chief Executive Officer
	
	RIOPROP VENTURES, LLC,
	a Texas limited liability company
		
	By:	 	 /s/ J. Brandon Black

	Name:	 	J. Brandon Black
	Title:	 	President
	
	BNC RETAX, LLC,
	a Texas limited liability company
		
	By:	 	 /s/ J. Brandon Black

	Name:	 	J. Brandon Black
	Title:	 	President
	
	RIOPROP HOLDINGS, LLC,
	a Texas limited liability company
		
	By:	 	 /s/ J. Brandon Black

	Name:	 	J. Brandon Black
	Title:	 	President

  
 Signature
Page to Amendment 
 Propel Financial Services, LLC 
 Credit Facility Loan Agreement dated as of May 8, 2012 

 
			
	TEXAS CAPITAL BANK, NATIONAL ASSOCIATION,
	as Administrative Agent and as a Bank
		
	By:	 	 /s/ Craig A. Dixon

	Name:	 	Craig A. Dixon
	Title:	 	Executive Vice President

  
 Signature
Page to Amendment 
 Propel Financial Services, LLC 
 Credit Facility Loan Agreement dated as of May 8, 2012 

 
			
	AMEGY BANK NATIONAL ASSOCIATION,
	as a Bank
		
	By:	 	 /s/ Amanda McChesney

	Name:	 	Amanda McChesney
	Title:	 	Vice President

  
 Signature
Page to Amendment 
 Propel Financial Services, LLC 
 Credit Facility Loan Agreement dated as of May 8, 2012 

 
			
	BOKF, National Association,
	as a Bank
		
	By:	 	 /s/ Michael Rodgers

	Name:	 	Michael Rodgers
	Title:	 	Vice President

  
 Signature
Page to Amendment 
 Propel Financial Services, LLC 
 Credit Facility Loan Agreement dated as of May 8, 2012 

 
			
	CITY BANK,
	as a Bank
		
	By:	 	 /s/ Stan Mayfield

	Name:	 	Stan Mayfield
	Title:	 	Overton Branch Pres.

  
 Signature
Page to Amendment 
 Propel Financial Services, LLC 
 Credit Facility Loan Agreement dated as of May 8, 2012 

 
			
	LONE STAR NATIONAL BANK,
	as a Bank
		
	By:	 	 /s/ Brian Disque

	Name:	 	Brian Disque
	Title:	 	Senior Vice President

  
 Signature
Page to Amendment 
 Propel Financial Services, LLC 
 Credit Facility Loan Agreement dated as of May 8, 2012 

 
			
	GREEN BANK, N.A.,
	as a Bank
		
	By:	 	 /s/ Ryan Craig

	Name:	 	Ryan Craig
	Title:	 	Vice President

  
 Signature
Page to Amendment 
 Propel Financial Services, LLC 
 Credit Facility Loan Agreement dated as of May 8, 2012 

 EXHIBIT A 

BORROWING BASE CERTIFICATE 
  

 
 745 Mulberry 

Suite 350 
 San Antonio, TX 78212 

Fax: 210-733-6600 

									
	 Borrower:
	  	 	 	  	PROPEL
FINANCIAL
SERVICES,
LLC
			
	Tax Lien/Note Portfolio	  	Date	 	  	 
				
	1.)	  	 Par Value of Portfolio to be acquired (or originated) for Propel
	  				  	
		  	 Par Value of Portfolio to be acquired (or originated) for RioProp
	  				  	
		  	 Par Value of Portfolio to be acquired (or originated) for BNC
	  				  	
		  	 Total Value of Portfolio
	  				  	
	2.)	  	 Times Advance rate of 90%
	  	$	 	  	  	
				
	3.)	  	 Par Value of current Portfolio for Propel
	  				  	
		  	 Par Value of current Portfolio for RioProp
	  				  	
		  	 Par Value of current Portfolio for BNC
	  				  	
		  	 Total Value of Portfolio
	  				  	
	4.)	  	 Times Advance rate of 90%
	  	$	 	  	  	
				
	5.)	  	 Par Value of Portfolio to be acquired (or originated) for Arizona
	  				  	
		  	 Par Value of current Portfolio for Arizona
	  				  	
		  	 Total Value of Portfolio (not to exceed $16,000,000)
	  				  	
	6.)	  	 Times Advance rate of 90%
	  				  	
				
	7.)	  	 Total Value of Portfolio (line 2 plus line 4 plus line 6)
	  	$	 	  	  	
				
	8.)	  	 Ending Line of Credit Balance
	  	$	 	  	  	
				
	9.)	  	 Borrowing Availability (Line 7 minus Line 8)
	  	$	 	  	  	
		  	 (Not to Exceed $160,000,000.00)
	  				  	
				
		  	(If result is a negative figure, this amount is due immediately as a principal payment.)	  				  	

  
 Exhibit A

 This certificate is delivered under the Loan Agreement dated February 10, 2012, between Borrower and
Bank. Capitalized terms used in this certificate shall, unless otherwise indicated, have the meanings set forth in the Agreement. On behalf of Borrower, the undersigned advises Bank that a review of the activities of the Borrower during the subject
period has been made under my supervision, and the undersigned certifies to Bank on the date hereof that (a) no Default has occurred and is continuing, (b) the tax lien/note portfolio of Borrower included in the Borrowing Base above meet
all conditions to qualify for inclusion therein as set forth in the Agreement, (‘c) all representations and warranties set forth in the Agreement with respect thereto were true and correct in all material respects at the time the represent
actions and warranties were made, and (d) the information set forth above and hereto was true and correct as of the reporting date. 
  

							
	CERTIFIED BY:	 		 		 	
	
	 PROPEL FINANCIAL SERVICES, LLC

	Company Name	 		 	By:	 	Authorized Signer
				
	Date	 		 	Title	 	

  

	**	Advance rate equal to 100% in year one, 95% in year two and 90% in year three and until the maturity date as defined in the Loan Agreement dated February
    , 2012 

  
 Exhibit A

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