Document:

Second Amendment to the Credit Agreement

 Exhibit 10.1 
 SECOND AMENDMENT 
 TO CREDIT AGREEMENT 
 This SECOND AMENDMENT TO CREDIT AGREEMENT, dated as of September 29, 2008 (this “Amendment”), is made and entered into by
and among SUNGARD DATA SYSTEMS INC., a Delaware Corporation (“SunGard” or the “Company”), SUNGARD HOLDCO LLC, a Delaware limited liability company (“Holdings”), the Lenders signatories
hereto, (each an “Initial Incremental Term Lender” and collectively the “Initial Incremental Term Lenders”), and JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders under the Credit Agreement
(as defined below) (in such capacity, the “Administrative Agent”). 
 Reference is made to the Credit Agreement, dated as of
August 11, 2005 (as it may be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among SOLAR CAPITAL CORP, a Delaware corporation (which was merged with and into
SunGard), the Overseas Borrowers from time to time party thereto, Holdings, SunGard, the Lenders signatories thereto, (each a “Lender” and collectively the “Lenders”), and JPMORGAN CHASE BANK, N.A., as
Administrative Agent, Swing Line Lender, and an L/C Issuer. 
 Capitalized terms defined in the Credit Agreement and not otherwise defined in
this Amendment have the meanings assigned to such terms in the Credit Agreement as amended pursuant to Section I hereof and Annex I hereof. 
 RECITALS: 
 WHEREAS, subject to the terms and conditions of the Credit Agreement, and pursuant to Section 2.15
of the Credit Agreement, the Company may request an additional tranche of term loans (the “Incremental Term Loans”) by entering into an “Incremental Amendment” (as defined in the Credit Agreement) executed by Holdings, the
Company, each lender agreeing to provide such Commitment and the Administrative Agent, and such other documents as are necessary to effect such Incremental Term Loans; and 
 WHEREAS, this Amendment is an “Incremental Amendment” as defined in the Credit Agreement; 
 NOW, THEREFORE, in consideration of the premises and agreements, provisions and covenants herein contained, the parties hereto agree as follows:

  

	I.	AMENDMENTS TO CREDIT AGREEMENT 

 Effective upon the
Second Amendment Effective Date, the parties hereto agree that the Credit Agreement is hereby amended pursuant to the provisions contained in Annex I hereof. 

	II.	INCREMENTAL COMMITMENTS AND JOINDER 

  

	 	A.	Each Initial Incremental Term Lender party hereto hereby commits to provide an Incremental Term Loan in the full amount of its respective Incremental Term Commitment as set
forth on Schedule A annexed hereto, on the terms set forth herein and in the Credit Agreement as amended hereby, and subject to the conditions set forth below. Such Commitment is an “Incremental Term Commitment” as defined in the Credit
Agreement as amended hereby, for all purposes of the Credit Agreement and the other Loan Documents, and shall be subject to the terms thereof. 

  

	 	B.	Each Initial Incremental Term Lender (i) confirms that it has received a copy of the Credit Agreement and the other Loan Documents, together with copies of the financial
statements referred to therein and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Amendment and make its Incremental Term Commitment and Incremental Term Loan;
(ii) agrees that it will, independently and without reliance upon the Administrative Agent, the Incremental Arrangers, or any other Lender or Agent and based on such documents and information as it shall deem appropriate at the time, continue
to make its own credit decisions in taking or not taking action under the Credit Agreement or the other Loan Documents, including this Amendment; (iii) appoints and authorizes the Administrative Agent and the Collateral Agent to take such
action as agent on its behalf and to exercise such powers under the Credit Agreement and the other Loan Documents as are delegated to the Administrative Agent and Collateral Agent, as the case may be, by the terms thereof, together with such powers
as are reasonably incidental thereto; and (iv) agrees that it will perform in accordance with their terms all of the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender and as an Initial
Incremental Term Lender. 

  

	 	C.	Each Initial Incremental Term Lender that is a party to the Credit Agreement prior to the Second Amendment Effective Date acknowledges and agrees that upon the Second
Amendment Effective Date such Initial Incremental Term Lender shall be an “Incremental Term Lender” and an “Initial Incremental Term Lender” under, and for all purposes of, the Credit Agreement and the other Loan Documents, and
shall be subject to and bound by the terms thereof, and shall perform all the obligations of and shall have all rights of an Incremental Term Lender and an Initial Incremental Term lender thereunder. Each Initial Incremental Term Lender that is not
a party to the Credit Agreement prior to the Second Amendment Effective Date acknowledges and agrees that upon the Second Amendment Effective Date such Incremental Term Lender shall become a “Lender” and “Incremental Term Lender”
and “Initial Incremental Term Lender” under, and for all purposes of, the Credit Agreement and the other Loan Documents, and shall be subject to and bound by the terms thereof, and shall perform all the obligations of and shall have all
rights of a Lender and Incremental Term Lender and Initial Incremental Term Lender thereunder. 

  

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	III.	CERTIFICATIONS AND COVENANTS: 

  

	 	A.	Company’s Certifications. By its execution of this Amendment, the Company hereby certifies that: 

 i. the representations and warranties of the Company and each other Loan Party contained in Article 5 of the Credit Agreement or any other
Loan Document are true and correct in all material respects on and as of the date hereof and as of the Second Amendment Effective Date; provided, that any representation and warranty that is qualified as to “materiality,”
“Material Adverse Effect” or similar language shall be true and correct in all respects on such date; 
 ii. no
Default or Event of Default shall exist, or would result from the execution hereof, the borrowing of the Incremental Term Loans (the “Proposed Borrowing”) or the application of the proceeds therefrom; and 
 iii. the Company and each Loan Party has performed in all material respects all agreements and satisfied all conditions which the Credit
Agreement provides shall be performed or satisfied by it on or before the date hereof or the Second Amendment Effective Date. 
  

	 	B.	Company’s Covenants. By its execution of this Amendment, the Company hereby covenants that: 

 i. it shall deliver or cause to be delivered the legal opinion of Simpson Thacher & Bartlett LLP, New York counsel to the Loan
Parties, addressed to the Initial Incremental Term Lenders and the Administrative Agent and covering such matters as are reasonably requested by the Administrative Agent in connection with this Amendment; and 
 ii. set forth on the Officers’ Certificate attached hereto as Exhibit A are the calculations (in reasonable detail) demonstrating
compliance with the covenants set forth in Section 7.11 of the Credit Agreement determined on a Pro Forma Basis as of the Second Amendment Effective Date and the last day of the most recent Test Period, in each case, as if the Proposed
Borrowing had been outstanding on the last day of such Test Period for testing compliance therewith. 
  

	 	C.	Certifications of Company and Holdings. By its execution of this Amendment, each of the Company and Holdings certifies that this Amendment has been duly authorized, executed
and delivered by it and this Amendment and the Credit Agreement as amended hereby constitute its valid and binding obligation, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. 

  

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	IV.	FEES 

 The Company agrees to pay to each Initial
Incremental Term Lender, simultaneously with the funding of the Incremental Term Loans on the Second Amendment Effective Date, a fee equal to 1.00% of the principal amount of the Incremental Term Loan funded by such Initial Incremental Term Lender
on the Second Amendment Effective Date. 
  

	V.	CONDITIONS TO EFFECTIVENESS 

 This Amendment, and
each Initial Incremental Term Lender’s obligation to fund its Incremental Term Commitment, shall become effective only upon the satisfaction of all of the following conditions precedent: 
  

	 	A.	Execution. Administrative Agent shall have received a counterpart signature page of this Amendment duly executed by itself, Holdings, the Company, and each Initial
Incremental Term Lender. 

  

	 	B.	Fees. The Company shall have paid (or shall have made arrangements reasonably satisfactory to the Administrative Agent for simultaneous payment of) all fees and other amounts
due and payable on or prior to the Second Amendment Effective Date, including, to the extent invoiced at least three Business Days prior to the proposed Second Amendment Effective Date, all out-of-pocket expenses required to be reimbursed or paid by
the Company hereunder or any other Loan Document, and including payment of fees and reimbursement or other payment of all out-of-pocket expenses required to be reimbursed or paid by the Company to or on behalf of the Incremental Arrangers, Initial
Incremental Term Lenders, or Administrative Agent pursuant to agreements with the Incremental Arrangers and Initial Incremental Term Lenders or pursuant to the Credit Agreement. 

  

	 	C.	Representations and Warranties. The representations and warranties of the Company and each other Loan Party contained in Article 5 of the Credit Agreement or in any other
Loan Document shall be true and correct in all material respects on and as of the date of the funding of the Incremental Term Loans; provided that, to the extent that such representations and warranties specifically refer to an earlier date, they
shall be true and correct in all material respects as of such earlier date; provided, further that, any representation and warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language shall be
true and correct in all respects on such respective dates. 

  

	 	D.	No Default. No Default or Event of Default shall exist, or would result from the execution hereof, the borrowing of the Incremental Term Loans, or from the application of the
proceeds therefrom. 

  

	 	E.	Committed Loan Notice. The Administrative Agent shall have received a Committed Loan Notice in accordance with the requirements hereof. 

  

	 	F.	 Certificate and Legal Opinion. The Administrative Agent and the Incremental Arrangers shall have received an Officer’s Certificate in the form attached
hereto 

  

 4 

	 	 
as Exhibit A, executed and certified by a Responsible Officer on behalf of the Company, and the executed legal opinion of Simpson Thacher & Bartlett
LLP referred to in Section III.B. hereof. 

  

	VI.	MISCELLANEOUS 

  

	 	A.	Foreign Lenders. For each Incremental Term Lender that is a Foreign Lender, delivered herewith to the Administrative Agent are such forms, certificates or other evidence with
respect to United States federal income tax withholding matters as such Incremental Term Lender may be required to deliver to the Administrative Agent pursuant to subsection 10.15(a)(i) of the Credit Agreement. 

  

	 	B.	Recordation of the New Loans. Upon execution and delivery hereof, and funding of the Incremental Term Loans, Administrative Agent will record the Incremental Term Loans made
by the Initial Incremental Term Lenders in the Register. 

  

	 	C.	Amendment, Modification and Waiver. This Amendment may not be amended, modified or waived except by an instrument or instruments in writing signed and delivered on behalf of
each of the parties hereto. 

  

	 	D.	Notice. For purposes of the Credit Agreement, the initial notice address of each Initial Incremental Term Lender shall be as set forth below its signature below.

  

	 	E.	Entire Agreement. This Amendment, the Credit Agreement and the other Loan Documents constitute the entire agreement among the parties with respect to the subject matter
hereof and thereof and supersede all other prior agreements and understandings, both written and verbal, among the parties or any of them with respect to the subject matter hereof. 

  

	 	F.	GOVERNING LAW. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK. 

  

	 	G.	Severability. Any term or provision of this Amendment which is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of
such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Amendment or affecting the validity or enforceability of any of the terms or provisions of this Amendment in any other
jurisdiction. If any provision of this Amendment is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as would be enforceable. 

  

	 	H.	Counterparts. This Amendment may be executed in counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement.

 [Remainder of page intentionally left blank] 
  

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 IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to execute and
deliver this Second Amendment to Credit Agreement as of September 29, 2008. 
  

			
	GOLDMAN SACHS CREDIT PARTNERS L.P.
	as Incremental Arranger and Initial Incremental Term Lender
		
	By:	 	 /s/ Bruce H. Mendelsohn

	Name:	 	Bruce H. Mendelsohn
	Title:	 	Authorized Signatory

			
	
	Notice Address:
		
	Attention:	 	Sharon Babick
	Telephone:	 	212 357 7882
	Facsimile:	 	212 256 2220

  

 [signature page to Second Amendment to Credit Agreement] 

			
	CITIGROUP GLOBAL MARKETS INC.
	as Incremental Arranger
		
	By:	 	 /s/ Julie Persily

	Name:	 	Julie Persily
	Title:	 	Managing Director

			
	
	Notice Address:
		
	Attention:	 	Christopher Wood
	Telephone:	 	212 723 6585
	Facsimile:	 	646 291 5515

			
	
	 CITICORP NORTH AMERICA, INC.
 as Initial
Incremental Term Lender

		
	By:	 	 /s/ Julie Persily

	Name:	 	Julie Persily
	Title:	 	Managing Director and Vice President

			
	
	Notice Address:
		
	Attention:	 	Christopher Wood
	Telephone:	 	212 723 6585
	Facsimile:	 	646 291 5515

 [signature page to Second Amendment to Credit Agreement] 
  

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	BARCLAYS BANK PLC
	as Initial Incremental Term Lender
		
	By:	 	 /s/ Ann E. Sutton

	Name:	 	Ann E. Sutton
	Title:	 	Associate Director

			
	
	Notice Address:
	
	200 Park Avenue
	New York, NY 10166
		
	Attention:	 	Ann E. Sutton
	Telephone:	 	(212) 412-3752
	Facsimile:	 	(212) 412-7600

 [signature page to Second Amendment to Credit Agreement] 
  

 3 

			
	KKR CORPORATE LENDING LLC
	as Initial Incremental Term Lender
		
	By:	 	 /s/ Irene Mavroyannis

	Name:	 	Irene Mavroyannis
	Title:	 	Chief Operating Office

			
		
	Notice Address:	 	9 West 57th Street
		 	New York, NY 10019

			
		
	Attention:	 	Irene Mavroyannis
	Telephone:	 	212.230.9447
	Facsimile:	 	212.271.9943

 [signature page to Second Amendment to Credit Agreement] 
  

 4 

			
	SUNGARD HOLDCO LLC
		
	By:	 	 *

	Name:	 	Michael J. Ruane
	Title:	 	Executive Vice President – Finance and Chief Financial Officer
	
	SUNGARD DATA SYSTEMS INC.
		
	By:	 	 *

	Name:	 	Michael J. Ruane
	Title:	 	Executive Vice President – Finance and Chief Financial Officer

  

	*	The signature appearing immediately below shall serve as a signature at each place indicated with an “*” on this page: 

  

			
	By:	 	 /s/ Michael J. Ruane

		 	Michael J. Ruane

 [signature page to Second Amendment to Credit Agreement] 
  

 5 

			
	JPMORGAN CHASE BANK, N.A.
	as Administrative Agent
		
	By:	 	 /s/ Ann B. Kerns

	Name:	 	Ann B. Kerns
	Title:	 	Vice President

 [signature page to Second Amendment to Credit Agreement] 
  

 6 

 ANNEX I 
 TO SECOND AMENDMENT TO CREDIT AGREEMENT 
 TERMS OF AMENDMENT 
  

	A.	The definition of “Applicable Rate” is amended by the addition of the following clause (c) at the end thereof: 

 (c) Notwithstanding clause (a) of this definition, the Applicable Rate for each Incremental Term Loan shall be, as of any date of determination,
(i) for Eurocurrency Rate Loans, 4.00% per annum, and (ii) for Base Rate Loans, 3.00% 
  

	B.	The definition of “Base Rate” is amended by the addition of the following sentence at the end thereof: 

 Notwithstanding the foregoing, for any period or periods during which the Base Rate as determined pursuant to the above provisions of this definition is
less than 4.00%, “Base Rate” as applied to Incremental Term Loans that are Base Rate Loans shall mean 4.00%. 
  

	C.	The definition of “Class” is amended and restated in its entirety as follows: 

 “Class” (a) when used with respect to Lenders, refers to whether such Lenders are Dollar Revolving Credit Lenders, Multicurrency
Revolving Credit Lenders, U.S. Term Lenders, U.K. Term Lenders, Euro Term Lenders or Incremental Term Lenders, (b) when used with respect to Commitments, refers to whether such Commitments are Dollar Revolving Credit Commitments, Multicurrency
Revolving Credit Commitments, U.S. Term Commitments, U.K. Term Commitments, Euro Term Commitments, or Incremental Term Commitments and (c) when used with respect to Loans or a Borrowing, refers to whether such Loans, or the Loans comprising
such Borrowing, are Dollar Revolving Credit Loans, Alternative Currency Revolving Credit Loans, U.S. Term Loans, U.K. Term Loans, Euro Term Loans, or Incremental Term Loans. 
  

	D.	The definition of “Commitment” is amended and restated in its entirety as follows: 

 “Commitment” means a U.S. Term Commitment, a U.K. Term Commitment, an Incremental Term Commitment or a Revolving Credit Commitment, as
the context may require. 
  

	E.	The definition of “Eurocurrency Rate” is amended by the addition of the following clause (d): 

 (d) Notwithstanding the foregoing clauses (a), (b), and (c), for any Interest Period or Interest Periods during which the Eurocurrency Rate as determined
pursuant to clauses (a), (b), and (c) of this definition is less than 3.00%, “Eurocurrency Rate” as such term is applied to Incremental Term Loans that are Eurocurrency Rate Loans shall mean 3.00%. 

	F.	The definition of “Facility” is amended and restated in its entirety as follows: 

 “Facility” means the U.S. Term Loans, the U.K. Term Loans, the Euro Term Loans, the Incremental Term Loans, the Revolving Credit
Facility, the Alternative Currency Revolving Credit Facility, the Swing Line Sublimit or the Letter of Credit Sublimit, as the context may require. 
  

	G.	The definition of “Lender” is amended by the addition of the following sentence at the end thereof: 

 “Lender” includes each Incremental Term Lender. 
  

	H.	The definition of “Loan” is amended by the addition of the following text immediately before the period at the end thereof: “or an Incremental Term Loan”

  

	I.	The definition of “Note” is amended and restated in its entirety as follows: 

 “Note” means a U.S. Term Note, U.K. Term Note, Euro Term Note, an Incremental Term Note, or a Revolving Credit Note, as the context may
require. 
  

	J.	The definition of “Outstanding Amount” is amended by deleting clause (a) thereof and inserting the following it its place as clause (a):

 (a) with respect to the U.S. Term Loans, U.K. Term Loans, Euro Term Loans, Incremental Term Loans, Revolving Credit Loans and
Swing Line Loans on any date, the Dollar Amount thereof after giving effect to any borrowings and prepayments or repayments of U.S. Term Loans, U.K. Term Loans, Euro Term Loans, Incremental Term Loans, Revolving Credit Loans (including any
refinancing of outstanding unpaid drawings under Letters of Credit or L/C Credit Extensions as a Revolving Credit Borrowing) and Swing Line Loans, as the case may be, occurring on such date; and 
  

	K.	The definition of “Request for Credit Extension” is amended by the insertion of the following text after the words “Euro Term Loans” in clause
(a) thereof: 

 “, or Incremental Term Loans” 
  

	L.	The definition of “Required Lenders” is amended by the insertion of the following clause (f) immediately following clause (e) thereof:

 “, and (g) aggregate unused Incremental Term Commitments” 
  

	M.	The definition of “Term Commitment” is amended and restated in its entirety as follows: 

 “Term Commitment” means a U.S. Term Commitment, a U.K. Term Commitment, a Euro Term Commitment, or an Incremental Term Commitment, as the
context may require. 
  

	N.	The definition of “Term Loan” is amended and restated in its entirety as follows: 

 “Term Loan” means a U.S. Term Loan, a U.K. Term Loan, a Euro Term Loan, or an Incremental Term Loan, as the context may require.

  

 I-2 

	O.	The definition of “Term Note” is amended and restated in its entirety as follows: 

 “Term Note” means a U.S. Term Note, U.K. Term Note, a Euro Term Note, or an Incremental Term Note, as the context may require.

  

	P.	The definition of “Tranche” is amended by the addition of the following text immediately before the period at the end of clause (f) thereof:

 “ and (g) the outstanding Incremental Term Loans” 
  

	Q.	Section 1.01 of the Credit Agreement (Definitions) is amended by the insertion of the following new definitions, in appropriate alphabetical order:

 “Incremental Arrangers” means Goldman Sachs Credit Partners L.P. and Citigroup Global Markets Inc., in their
capacity as joint lead arrangers with respect to the Incremental Term Loan and the Second Amendment. 
 “Incremental Term
Commitment” means, as to each Incremental Term Lender, its obligation to make a Incremental Term Loan to the Company pursuant to Section 2.01(e) in an aggregate Dollar Amount not to exceed the amount set forth opposite such
Lender’s name on Schedule A to the Second Amendment under the caption “Incremental Term Commitment” or in the Assignment and Assumption pursuant to which such Incremental Term Lender becomes a party hereto, as applicable, as such
amount may be adjusted from time to time in accordance with this Agreement. The initial aggregate amount of the Incremental Term Commitments is $500,000,000. 
 “Incremental Term Lender” means, at any time, any Lender that has an Incremental Term Commitment or an Incremental Term Loan at such time. 
 “Incremental Term Loan” means a Loan in accordance with Section 2.15 made pursuant to Section 2.01(e). 
 “Incremental Term Note” means a promissory note of the Company payable to any Incremental Term Lender or its registered assigns, in
substantially the form of Exhibit B to the Second Amendment, evidencing the aggregate Indebtedness of the Company to such Incremental Term Lender resulting from the Incremental Term Loans made by such Incremental Term Lender. 
 “Initial Incremental Term Lender” means the “Initial Incremental Term Lenders” as defined in the Second Amendment. 

“Second Amendment” means the Incremental Amendment, executed as the Second Amendment to this Agreement, by Holdings, the Company, each
Initial Incremental Term Lender, the Incremental Arrangers and the Administrative Agent, as of September 29, 2008. 
  

 I-3 

 “Second Amendment Effective Date” means the Incremental Facility Closing Date with
respect to the Incremental Term Loans effected pursuant to the Second Amendment, which shall be the date on which the conditions to the effectiveness of the Second Amendment are satisfied and the Incremental Term Loans are made. 
  

	R.	Section 2.01 of the Credit Agreement (The Loans) is amended by the addition of the following clause (e) at the end thereof: 

 (e) The Incremental Term Borrowings. Subject to the terms and conditions set forth herein, each Incremental Term Lender severally agrees to make to
the Company a single loan denominated in Dollars in a Dollar Amount equal to such Incremental Term Lender’s Incremental Term Commitment on the Second Amendment Effective Date. Amounts borrowed under this Section 2.01(e) and repaid or
prepaid may not be reborrowed. Incremental Term Loans may be Base Rate Loans or Eurocurrency Rate Loans, as further provided herein. 
  

	S.	Section 2.02(a) of the Credit Agreement (Borrowings, Conversions and Continuations of Loans) is amended by the insertion of the following text in clause
(i) of the sixth sentence thereof, immediately after the words “a conversion of U.S. Term Loans”: 

 “or
Incremental Term Loans” 
  

	T.	Section 2.06(b) of the Credit Agreement (Termination or Reduction of Commitments – Mandatory) is amended by the addition of the following sentence at
the end thereof: 

 The Incremental Term Commitment of each Incremental Term Lender shall be automatically and permanently
reduced to $0 upon the making of such Incremental Term Lender’s Incremental Term Loans pursuant to Section 2.01(e) 
  

	U.	Section 2.07 of the Credit Agreement (Repayment of Loans) is amended by the addition of the following clause (f): 

 (f) Incremental Term Loans. The Company shall repay to the Administrative Agent for the ratable account of the Incremental Term Lenders (i) on
the last Business Day of each March, June, September and December, commencing with the first such date to occur after the Second Amendment Effective Date, an aggregate Dollar Amount equal to 0.25% of the aggregate Dollar Amount of all Incremental
Term Loans outstanding on the Second Amendment Effective Date (which payments shall be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Section 2.05) and (ii) on the Maturity Date
for the Incremental Term Loans, the aggregate principal amount of all Incremental Term Loans outstanding on such date. 
  

	V.	Section 10.07(b) of the Credit Agreement (Successors and Assigns) is amended by the addition of the following after the end thereof, as clause (iii):

 (iii) Notwithstanding the foregoing, clauses (b)(i)(A), (b)(i)(B), and (b)(ii)(B) of this Section 10.07 shall not apply
to the primary assignments of Incremental Term Loans or Incremental Term Commitments by any Initial Incremental Term Lender (or its Affiliates and Approved Funds) with respect to which an Incremental Arranger has given written notice to the
Administrative Agent on or before the Second Amendment Effective Date. 
 * * * * * 
  

 I-4 

 SCHEDULE A 
 TO SECOND AMENDMENT TO CREDIT AGREEMENT 
 INCREMENTAL TERM COMMITMENTS 
  

			
	 Incremental Term Lender
	 	 Incremental Term Commitment

	Goldman Sachs Credit Partners L.P.	 	$300,000,000
	Citicorp North America, Inc.	 	$100,000,000
	Barclays Bank PLC	 	$50,000,000
	KKR Corporate Lending LLC	 	$50,000,000

 EXHIBIT A 
 TO SECOND AMENDMENT TO CREDIT AGREEMENT 
 OFFICER’S CERTIFICATE 
 See attached. 

 EXHIBIT B 
 TO SECOND AMENDMENT TO CREDIT AGREEMENT 
 FORM OF PROMISSORY NOTE 
 See attached.Severance Agreement

 Exhibit 10.124 
 SEVERANCE AGREEMENT 
 This Severance Agreement (the “Agreement”) is entered into between
James R. Braun, a resident of North Carolina (“Braun”), and Charles & Colvard, Ltd., a North Carolina corporation (“Company”), effective as of the 30th day of September, 2008 (the “Effective Date”). 

WHEREAS, Braun has served in the position of Vice President of Finance and Chief Financial Officer of the Company pursuant to the Employment Agreement
made and entered into effective as of June 4, 2001 by and between the Company and Braun, as amended (the “Employment Agreement”); and 
 WHEREAS, Braun and the Company desire to terminate his employment with the Company, including any subsidiaries and affiliates, as of the Effective Date; and 
 WHEREAS, the parties wish for Braun’s termination from his employment and positions with the Company to be achieved in an amicable fashion, with
Braun available to continue to perform services for the Company as set out herein, and to provide a clear understanding of the parties rights and liabilities; 
 THEREFORE, the parties agree as follows: 
 1. Termination Date. Braun and the Company agree that as
of the Effective Date, his service as an employee and as Vice President of Finance and Chief Financial Officer of the Company, including any subsidiaries and affiliates is terminated. 
 2. Continuing Services. Commencing on the Effective Date, and continuing for a period of twelve (12) months thereafter, Braun will make
himself reasonably available to perform services, at such hours and such places as may be reasonably requested by the Company, of an advisory or consulting nature on behalf of Company on the terms set out herein. Specifically, Braun shall:
(i) assist the Company in finalizing the closure of the Company’s Hong Kong operations; (ii) assist the Company in determining the tax treatment of closing the Company’s Hong Kong operations; (iii) assist the Company with
filing its 2008 tax returns; (iv) assist the Company in connection with the South Korean patent litigation; (v) assist the Company in connection with the litigation entitled Charles & Colvard, Ltd. v. Jewelnet Corporation d/b/a
K&G Creations and Jewelnet Acquisition Corporation d/b/a K&G Creations; and (vi) assist with general business issues that may arise, including but not limited to any investigation, inquiry, litigation or other proceeding in which
the Company is or may become involved, and which arises out of facts and circumstances known to Braun (and without regard to whether Braun is a party thereto). The Company shall provide to Braun from time to time, in writing, a single
point-of-contact for Braun at the Company and with counsel to coordinate the services to be provided hereunder. Braun acknowledges and agrees that in 

 providing these services, he shall have no authority to bind the Company to any contract, agreement or obligation
whatsoever. The acts of Braun shall in no way constitute the acts of the Company and Braun shall not represent to any third party that he has any express or implied authority to bind the Company to any contract, agreement or obligation. 

3. Compensation and Benefits. 
 (a) Compensation. Notwithstanding any provision to the contrary in the Employment Agreement for severance or other payments, the sole compensation payable to Braun subsequent to the Effective Date shall be as
provided in this Agreement. In consideration of Braun agreeing to make himself available to provide services as set out in Section 2 of this Agreement during the twelve (12) month period commencing on the Effective Date, Braun will be paid
at the rate of $19,500 per month in arrears for eleven (11) months commencing on the Effective Date. Any accrued but unused vacation shall be paid to Braun per Company practice. Additionally, the Company will reimburse expenses reasonably
incurred in performing such services pursuant to the Company’s standard policy. The Company will continue to withhold from such payments customary amounts for federal or state income taxes, social security (FICA) and unemployment tax with
respect to Braun. 
 (b) Payments for COBRA Continuation Coverage. Upon termination from employment, Braun will be
provided with the option to continue his current individual dependent medical and dental insurance coverage (the “Continuation Coverage”) under Company’s medical and dental plans pursuant to the requirements of the Consolidated
Omnibus Budget Reconciliation Act (“COBRA”). If Braun elects the Continuation Coverage, the Company will pay Braun’s COBRA premium for eleven months from the Effective Date or until such time that Braun is no longer eligible for the
Continuation Coverage. With respect to the period during which the Continuation Coverage is provided to Braun pursuant to this subsection (b), to the extent that the Continuation Coverage benefits constitute taxable income to Braun, Company
shall report as income to Braun for federal and state income tax purposes the value of the Continuation Coverage. 
 (c)
Equity Awards. For the duration of this Agreement, any stock options or restricted stock granted to Braun shall continue to vest and be exercisable in accordance with the terms of any applicable agreements. The Company agrees that the Company
shall not exercise negative discretion to alter any post-termination exercise and vesting terms of such agreements.  
 4. Death
After Effective Date. Should Braun die after the Effective Date, Company will pay to Braun’s estate any payments provided for in Sections 3(a)-(b) above which remain unpaid through his date of death, and notwithstanding
Section 3(c), all rights with respect to any outstanding stock options at the time of Braun’s death shall be governed by the terms of the applicable stock option agreements. 
  

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 5. Return and Use of Company Property; Preservation of Records. Unless otherwise mutually agreed
by the parties as necessary or appropriate for the performance of the services provided for herein, following the Effective Date, Braun will promptly return to Company all Company property, including, but not limited to, credit cards, and Company
Confidential Information (both written and electronic copies) as required under Section 6(a). Braun may retain his blackberry/cell phone and pertinent numbers and his computer with such access as is needed for performing services pursuant to
this Agreement. Braun shall remove all of his personal belongings from his current office, but shall be provided office space by the Company as needed to perform the services pursuant to this Agreement. During the term of this Agreement, the Company
shall preserve and maintain records pertaining to Braun’s employment and shall make such records reasonably available to Braun during normal working hours. 
 6. Restrictive Covenants. Braun acknowledges that Company is engaged in a highly competitive business and that Company has made substantial investments of time and capital in the development of its business and
the goodwill associated with its business and will continue to make such substantial investments. In order to protect Company against possible injury or damage, Braun agrees as follows: 
 (a) Nondisclosure. Braun acknowledges that as a result of his employment by Company, he has used, acquired and added to
Confidential Information relating to Company which is proprietary to Company. Braun agrees that he shall not at any time, directly or indirectly, divulge or disclose to any person, for any purpose, any Confidential Information unless legally
required to do so. “Confidential Information,” as that term is used in this Agreement, shall mean all information concerning Company, including, but not limited to, business plans and models, specifications, technical data, designs,
formulas, computer software programs, manuals, methods of operation, accounting and financial information, customer lists, pricing structure and other product information, which has ever been or will be revealed to or discovered by Braun, unless
such information was generally available to the public prior to disclosure by Braun or subsequently became publicly available through no act of Braun that was not authorized by Company. Such information shall be considered “Confidential
Information” whether it was disclosed to Braun by plans, drawings, reports or other written materials, by conversation with employees or agents of Company, by observation or inspection of physical objects or by any other method. Promptly
following the Effective Date, Braun shall, on a best efforts basis immediately deliver, or cause to be delivered, to Company any and all documents, statements or other information (both written and electronic copies) in his possession or control
obtained from Company containing Confidential Information (including, but not limited to, photocopies as taken by Braun or any other person in or outside Company, and Braun’s handwritten or typed notes containing such Confidential Information),
other than such Confidential Information as is mutually agreed to by the Company and Braun as necessary for Braun to retain to perform his consulting duties hereunder. The return of documents provided for herein shall in no way obviate the
obligation of Braun to maintain the confidentiality of the Confidential Information as provided for herein. Notwithstanding the provisions of this Section, Braun may disclose 

  

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Confidential Information to his attorneys and accountants provided they are made aware of and agree to maintain such Confidential Information in accordance
with the terms of this Agreement. 
 (b) Non-Competition. Braun acknowledges that the Covenant Not to Compete in his
Employment Agreement effective as of June 4, 2001, as amended, is a valid and binding agreement and in consideration of the compensation paid to him under this Agreement, Braun will abide by the restrictive covenants contained therein for a
period of one (1) year following the termination of this Agreement. 
 (c) Nondisparagement. Braun agrees that he
will not make disparaging comments regarding Company or any of its officers or directors to any third party. Company agrees that neither it nor any of its officers or directors in their capacities as officers or directors will make disparaging
comments regarding Braun to any third party. 
 (d) Breach. In addition to any other remedies (including injunctive
relief), Braun agrees that if he breaches the restrictive covenants or any other material provision of this Agreement, Company’s obligation to make any remaining payments pursuant to Section 3 of this Agreement is terminated and Braun will
be liable to Company for, and will immediately repay to Company, the gross amount paid pursuant to Section 3(a) and (b) of this Agreement. 
 7. Mutual Release. 
 (a) Release by Braun. Braun (and any of his respective
heirs, agents or assigns) does hereby remise, release and forever discharge the Company and its officers, directors, shareholders, predecessors, successors, agents, counsel, trusts and assigns from any and all rights, actions, suits, debts, sums of
money, accounts, causes of action, claims (however and whenever arising and whether in law or equity, and whether arising under statutory or common law of the United States or any state thereof), demands or damages of any kind (whether actual,
punitive, compensatory, double, treble or nominal and whether known or unknown) arising prior to the date of this Agreement and related in any way to Braun’s previous relationship with the Company, which include claims under the Age
Discrimination in Employment Act, 29 U.S.C. 621 et. seq all to the end that any and all matters and things which are or might have been claimed now or in the future by Braun against the Company pursuant to any previous events that may have
occurred or may occur in connection with the subject matter of their previous relationship or any prior contracts or agreements of any kind whatsoever between Braun and the Company are forever barred and put to rest. In addition and not in
limitation of the foregoing, Braun does hereby release and extinguish any and all claims he may have against the Company of any kind whatsoever prior to the execution of this Agreement. 
 (b) Release by Company. The Company does hereby remise, release and forever discharge Braun from any and all rights,
actions, suits, debts, sums of money, accounts, causes of action, claims (however and whenever arising and 

  

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whether in law or in equity, and whether arising under statutory or common law of the United States or any state thereof), demands or damages or any kind
(whether actual, punitive, compensatory, double, treble or nominal, and whether known or unknown) arising prior to the date of this Agreement and related in any way to Braun’s previous relationship with the Company, all to the end that any and
all matters and things which are or might have been claimed now or in the future by the Company against Braun pursuant to any previous events that may have occurred or may occur in connection with the subject matter of their previous relationship or
any prior contracts or agreements of any kind whatsoever between Braun and the Company are forever barred and put to rest. In addition and not in limitation of the foregoing, the Company does hereby release and extinguish any and all claims it may
have against Braun of any kind whatsoever prior to the execution of this Agreement. 
 8. Consideration and Revocation Period.
Employee acknowledges that he has hereby been advised in writing to consult with an attorney of his choice prior to signing this Agreement, and that he had at least 21 days to consider this Agreement before signing it. Employee acknowledges that if
this agreement is signed before 21 days have elapsed from the date of delivery, which he has expressly waived the 21-day consideration period. Employee acknowledges that he may revoke this Agreement within seven (7) days following its
execution, and the Agreement shall not become effective until the revocation period has expired. 
 9. Opportunity to Seek Counsel.
Braun acknowledges by signing this Agreement that he has read and understands this document, that he has conferred with or had the opportunity to confer with an attorney of his choice regarding the terms and meaning of this Agreement, that he has
had sufficient time to consider the terms provided for in this Agreement, that no representations or inducements have been made to him as set forth herein, and that he has signed the same KNOWINGLY AND VOLUNTARILY. 
 10. Arbitration. Except as provided below, any dispute or controversy arising between the parties to this Agreement involving the
interpretation or application of any provision of this Agreement, or arising out of this Agreement, shall be submitted to arbitration at Raleigh, North Carolina, pursuant to the Commercial Rules (the “Rules”) of the American Arbitration
Association (“AAA”) by an arbitrator mutually agreed upon by the parties. Such arbitrator shall be selected by the parties hereto in accordance with and within the period specified by the Rules (“Arbitrator Designation Period”).
In the event Company and Braun are unable to agree on an arbitrator within the Arbitrator Designation Period, AAA shall appoint a neutral arbitrator in accordance with the Rules no later than ten (10) days following the expiration of the
Arbitrator Designation Period. The designated arbitrator shall not be an agent, Braun, shareholder, relative or affiliate of Company or Braun. The arbitrator may, in his or her discretion, award to the prevailing party its costs of the proceeding,
including attorneys’ fees and expenses. The decision of the arbitrator shall be final and binding on the parties, and judgment upon the decision may be entered in the state courts or federal courts having jurisdiction over Wake County, North
Carolina. Notwithstanding the foregoing, either party shall have the right to institute an action against the other party in the federal or state courts of Wake County, 

  

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North Carolina seeking injunctive relief to enjoin any continuing or threatened breach by the other party of any term of this Agreement. 
 11. Governing Law. The provisions of this Agreement shall be construed in accordance with the internal laws of the state of North Carolina. In the
event that any paragraph, subparagraph or provision of this Agreement shall be determined to be partially contrary to governing law or otherwise partially unenforceable, the paragraph, subparagraph, or provision and this Agreement shall be enforced
to the maximum extent permitted by law, and if any paragraph, subparagraph, or provision of Agreement shall be determined to be totally contrary to governing law or otherwise totally unenforceable, the paragraph, subparagraph, or provision shall be
severed and disregarded and the remainder of this Agreement shall be enforced to the maximum extent permitted by law. 
 12. Entire
Agreement. This Agreement expresses the entire agreement between the parties with reference to the terms of the termination of Braun and supersedes and replaces any prior understanding or arrangement as to such termination, (other than any
benefit plans governing such terms), whether written or oral, between Braun and the Company. 
 13. Modification of Agreement. No
waiver or modification of this Agreement shall be valid unless in writing and signed by the party to be charged therewith. 
  

									
	 Charles & Colvard, Ltd.
  
	 		 	
				
	By:	 	/s/ Dennis M. Reed	 		 	 /s/ James. R. Braun

		 	Dennis M. Reed, President 	 		 	James R. Braun
				
	Date:	 	9/30/08	 		 	Date: 9/30/08

  
  

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