Document:

EX-10.19

 Exhibit 10.19 

Synageva BioPharma Corp. 

Stock Option Grant Notice 

Stock Option Grant under the Company’s 

2014 Equity Incentive Plan 
  

					
	1.		Name and Address of Participant:		  

 

 

			
	2.		Date of Option Grant:		  

			
	3.		Type of Grant:		  

			
	4.		Maximum Number of Shares for which this Option is exercisable:		  

		
			
	5.		Exercise (purchase) price per share:		  

			
	6.		Option Expiration Date:		  

			
	7.		Vesting Start Date:		  

		
	8.		Vesting Schedule: This Option shall become exercisable (and the Shares issued upon exercise shall be vested) as follows provided the Participant is an Employee, director or Consultant of the Company or of an Affiliate on
the applicable vesting date:

  

			
	 On the first anniversary of the Vesting Start Date
		up to                  Shares (25%)
		
	 Thereafter, on each one month anniversary of the Vesting Start Date
		an additional                  Shares (2.0833%)

 In accordance with the above, all the Shares subject to the Option shall be fully vested 4 years from the
Vesting Commencement Date. 
 The foregoing rights are cumulative and are subject to the other terms and conditions of this Agreement and
the Plan. 
 The Company and the Participant acknowledge receipt of this Stock Option Grant Notice and agree to the terms of the Stock Option Agreement
attached hereto and incorporated by reference herein, the Company’s 2014 Equity Incentive Plan and the terms of this Option Grant as set forth above. 

 
					
	SYNAGEVA BIOPHARMA CORP.
		
	By:		  

			Name:		  

			Title:		  

	
	  

	Participant

  
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 SYNAGEVA BIOPHARMA CORP. 

STOCK OPTION AGREEMENT - INCORPORATED TERMS AND CONDITIONS 

AGREEMENT made as of the date of grant set forth in the Stock Option Grant Notice by and between Synageva BioPharma Corp. (the
“Company”), a Delaware corporation, and the individual whose name appears on the Stock Option Grant Notice (the “Participant”). 

WHEREAS, the Company desires to grant to the Participant an Option to purchase shares of its common stock, $0.001 par value per share (the
“Shares”), under and for the purposes set forth in the Company’s 2014 Equity Incentive Plan (the “Plan”); 

WHEREAS, the Company and the Participant understand and agree that any terms used and not defined herein have the same meanings as in the
Plan; and 
 WHEREAS, the Company and the Participant each intend that the Option granted herein shall be of the type set forth in the Stock
Option Grant Notice. 
 NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other good and valuable
consideration, the parties hereto agree as follows: 
  

	 	1.	GRANT OF OPTION. 

 The Company hereby grants to the Participant the right and option to
purchase all or any part of an aggregate of the number of Shares set forth in the Stock Option Grant Notice, on the terms and conditions and subject to all the limitations set forth herein, under United States securities and tax laws, and in the
Plan, which is incorporated herein by reference. The Participant acknowledges receipt of a copy of the Plan. 
  

	 	2.	EXERCISE PRICE. 

 The exercise price of the Shares covered by the Option shall be the
amount per Share set forth in the Stock Option Grant Notice, subject to adjustment, as provided in the Plan, in the event of a stock split, reverse stock split or other events affecting the holders of Shares after the date hereof (the “Exercise
Price”). Payment shall be made in accordance with Paragraph 10 of the Plan. 
  

	 	3.	EXERCISABILITY OF OPTION. 

 Subject to the terms and conditions set forth in this
Agreement and the Plan, the Option granted hereby shall become vested and exercisable as set forth in the Stock Option Grant Notice and is subject to the other terms and conditions of this Agreement and the Plan. 

Notwithstanding the foregoing, in the event of a Change of Control in which the Option is not being assumed or substituted as provided in
Paragraph 23(b)(i) of the Plan, the vesting and exercisability of the Option shall accelerate such that the Option shall become fully 

 
vested and exercisable, effective as of immediately prior to the consummation of the Corporate Transaction that constitutes a Change of Control. The Company shall notify the Participant prior to
such Change of Control in order to provide the Participant with the ability to exercise the Option as of the Change of Control. To the extent that the Option is not exercised prior to consummation of a Change of Control in which the Option is not
being assumed or substituted, the Option shall terminate upon the consummation of the Change of Control transaction. 
 In the event
(i) of a Change of Control, and (ii) the Option remains outstanding after such event, if the Participant is involuntarily terminated by the Company, an Affiliate or any successor corporation without Cause (not including death or
disability) at the time of, or within one (1) year following the Change of Control, then the Option shall fully accelerate and become exercisable at the effective date of termination of the Participant. 

Change of Control means (1) a sale of all or substantially all of the Company’s assets, or (2) any merger, consolidation
or other business combination transaction of the Company with or into another corporation, entity or person, other than a transaction in which the holders of at least a majority of the shares of voting capital stock of the Company outstanding
immediately prior to such transaction continue to hold (either by such shares remaining outstanding or by their being converted into shares of voting capital stock of the surviving entity) a majority of the total voting power represented by the
shares of voting capital stock of the Company (or the surviving entity) outstanding immediately after such transaction, or (3) the direct or indirect acquisition (including by way of a tender or exchange offer) by any person, or persons acting
as a group, of beneficial ownership or a right to acquire beneficial ownership of shares representing a majority of the voting power of the then outstanding shares of capital stock of the Company. Notwithstanding the foregoing, a Change of Control
shall not be deemed to occur (A) on account of the acquisition of shares of voting capital stock by any institutional investor or any affiliate thereof or any other person, or persons acting as a group, that acquires the Company’s shares
of voting capital stock in a transaction or series of related transactions that are primarily a private financing transaction for the Company or (B) solely because the level of ownership held by any institutional investor or any affiliate
thereof or any other person, or persons acting as a group (the “Subject Person”), exceeds the designated percentage threshold of the outstanding shares of voting capital stock as a result of a repurchase or other acquisition of
shares of voting capital stock by the Company reducing the number of shares outstanding, provided that if a Change of Control would occur (but for the operating of this sentence) as a result of the acquisition of shares of voting capital stock by
the Company, and after such share acquisition, the Subject Person becomes the owner of any additional shares of voting capital stock that, assuming the repurchase or other acquisition had not occurred, increases the percentage of the then
outstanding shares of voting capital stock owned by such Subject Person over the designated percentage threshold, then a Change of Control shall be deemed to occur. 
  

	4.	TERM OF OPTION. 

 This Option shall terminate on the Option Expiration Date as specified
in the Stock Option Grant Notice and, if this Option is designated in the Stock Option Grant Notice as an ISO and the Participant owns as of the date hereof more than 10% of the total combined voting power of all classes of capital stock of the
Company or an Affiliate, such date may not be more than five years from the date of this Agreement, but shall be subject to earlier termination as provided herein or in the Plan. 

  
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 If the Participant ceases to be an Employee, director or Consultant of the Company or of an
Affiliate for any reason other than the death or Disability of the Participant, or termination of the Participant for Cause (the “Termination Date”), the Option to the extent then vested and exercisable pursuant to Section 3 hereof as
of the Termination Date, and not previously terminated in accordance with this Agreement, may be exercised within three months after the Termination Date, or on or prior to the Option Expiration Date as specified in the Stock Option Grant Notice,
whichever is earlier, but may not be exercised thereafter except as set forth below. In such event, the unvested portion of the Option shall not be exercisable and shall expire and be cancelled on the Termination Date. 

If this Option is designated in the Stock Option Grant Notice as an ISO and the Participant ceases to be an Employee of the Company or of an
Affiliate but continues after termination of employment to provide service to the Company or an Affiliate as a director or Consultant, this Option shall continue to vest in accordance with Section 3 above as if this Option had not terminated
until the Participant is no longer providing services to the Company. In such case, this Option shall automatically convert and be deemed a Non-Qualified Option as of the date that is three months from termination of the Participant’s
employment and this Option shall continue on the same terms and conditions set forth herein until such Participant is no longer providing service to the Company or an Affiliate. 

Notwithstanding the foregoing, in the event of the Participant’s Disability or death within three months after the Termination Date, the
Participant or the Participant’s Survivors may exercise the Option within one year after the Termination Date, but in no event after the Option Expiration Date as specified in the Stock Option Grant Notice. 

In the event the Participant’s service is terminated by the Company or an Affiliate for Cause, the Participant’s right to exercise
any unexercised portion of this Option even if vested shall cease immediately as of the time the Participant is notified his or her service is terminated for Cause, and this Option shall thereupon terminate. Notwithstanding anything herein to the
contrary, if subsequent to the Participant’s termination, but prior to the exercise of the Option, the Administrator determines that, either prior or subsequent to the Participant’s termination, the Participant engaged in conduct which
would constitute Cause, then the Participant shall immediately cease to have any right to exercise the Option and this Option shall thereupon terminate. 

In the event of the death or Disability of the Participant, as determined in accordance with the Plan, the Option shall be exercisable within
one year after the Participant’s termination of service due to death or Disability or, if earlier, on or prior to the Option Expiration Date as specified in the Stock Option Grant Notice. 

  
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	 	5.	FORFEITURE. 

 The Option (whether or not vested or exercisable) is subject to forfeiture,
termination and rescission, and the Participant is obligated to return to the Company the value received with respect to the Option (including Shares delivered under the Option, and any gain realized on a subsequent sale or disposition of Shares),
(a) upon or in connection with (i) a breach by the Participant of a non-competition, non-solicitation, confidentiality or similar covenant or agreement with the Company or an Affiliate; or (ii) an overpayment to the Participant of
incentive compensation due to inaccurate financial data; (b) in accordance with Company policy relating to the recovery of erroneously-paid incentive compensation, as such policy may be amended and in effect from time to time; or (c) as
otherwise required by law or applicable stock exchange listing standards, including, without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act. By accepting the Option, the Participant hereby agrees to return the full amount
required under this Section 5 at such time and in such manner as the Administrator shall determine in its sole discretion and consistent with applicable law. Neither the Administrator nor the Company will be responsible for any adverse tax or
other consequences to the Participant that may arise in connection with this Section 5. 
  

	 	6.	METHOD OF EXERCISING OPTION. 

 Subject to the terms and conditions of this Agreement, the
Option may be exercised by written notice to the Company or its designee, in substantially the form of Exhibit A attached hereto (or in such other form acceptable to the Company, which may include electronic notice). Such notice shall
state the number of Shares with respect to which the Option is being exercised and shall be signed by the person exercising the Option (which signature may be provided electronically in a form acceptable to the Company). Payment of the Exercise
Price for such Shares shall be made in accordance with Paragraph 10 of the Plan. The Company shall deliver such Shares as soon as practicable after the notice shall be received, provided, however, that the Company may delay issuance of such Shares
until completion of any action or obtaining of any consent, which the Company deems necessary under any applicable law. The Shares as to which the Option shall have been so exercised shall be registered in the Company’s share register in the
name of the person so exercising the Option (or, if the Option shall be exercised by the Participant and if the Participant shall so request in the notice exercising the Option, shall be registered in the Company’s share register in the name of
the Participant and another person jointly, with right of survivorship) and shall be delivered as provided above to or upon the written order of the person exercising the Option. In the event the Option shall be exercised, pursuant to Section 4
hereof, by any person other than the Participant, such notice shall be accompanied by appropriate proof of the right of such person to exercise the Option. All Shares that shall be purchased upon the exercise of the Option as provided herein shall
be fully paid and nonassessable. 

  
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	 	7.	PARTIAL EXERCISE. 

 Exercise of this Option to the extent above stated may be made in
part at any time and from time to time within the above limits, except that no fractional share shall be issued pursuant to this Option. 
  

	 	8.	NON-ASSIGNABILITY. 

 The Option shall not be
transferable by the Participant otherwise than by will or by the laws of descent and distribution. If this Option is a Non-Qualified Option then it may also be transferred pursuant to a qualified domestic relations order as defined by the Code or
Title I of the Employee Retirement Income Security Act or the rules thereunder. Except as provided above in this paragraph, the Option shall be exercisable, during the Participant’s lifetime, only by the Participant (or, in the event of legal
incapacity or incompetency, by the Participant’s guardian or representative) and shall not be assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to execution, attachment or similar
process. Any attempted transfer, assignment, pledge, hypothecation or other disposition of the Option or of any rights granted hereunder contrary to the provisions of this Section 8, or the levy of any attachment or similar process upon the
Option shall be null and void. 
  

	 	9.	NO RIGHTS AS STOCKHOLDER UNTIL EXERCISE. 

 The Participant shall have no rights as a
stockholder with respect to Shares subject to this Agreement until registration of the Shares in the Company’s share register in the name of the Participant. Except as is expressly provided in the Plan with respect to certain changes in the
capitalization of the Company, no adjustment shall be made for dividends or similar rights for which the record date is prior to the date of such registration. 
  

	 	10.	ADJUSTMENTS. 

 The Plan contains provisions covering the treatment of Options in a number
of contingencies such as stock splits and mergers. Provisions in the Plan for adjustment with respect to stock subject to Options and the related provisions with respect to successors to the business of the Company are hereby made applicable
hereunder and are incorporated herein by reference. 
  

	 	11.	TAXES. 

 The Participant acknowledges that any income or other taxes due from him or her
with respect to this Option or the Shares issuable pursuant to this Option shall be the Participant’s responsibility. The Participant acknowledges and agrees that (i) the Participant was free to use professional advisors of his or her
choice in connection with this Agreement, has received advice from his or her professional advisors in connection with this Agreement, understands its meaning and import, and is entering into this Agreement freely and without coercion or duress;
(ii) the Participant has not received and is not relying upon any advice, representations or assurances made by or on behalf of the Company or any Affiliate or any 

  
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employee of or counsel to the Company or any Affiliate regarding any tax or other effects or implications of the Option, the Shares or other matters contemplated by this Agreement; and
(iii) neither the Administrator, the Company, its Affiliates, nor any of its officers or directors, shall be held liable for any applicable costs, taxes, or penalties associated with the Option if, in fact, the Internal Revenue Service were to
determine that the Option constitutes deferred compensation under Section 409A of the Code. 
 If this Option is designated in the
Stock Option Grant Notice as a Non-Qualified Option or if the Option is an ISO and is converted into a Non-Qualified Option and such Non-Qualified Option is exercised, the Participant agrees that the Company may withhold from the Participant’s
remuneration, if any, the minimum statutory amount of federal, state and local withholding taxes attributable to such amount that is considered compensation includable in such person’s gross income. At the Company’s discretion, the amount
required to be withheld may be withheld in cash from such remuneration, or in kind from the Shares otherwise deliverable to the Participant on exercise of the Option. The Participant further agrees that, if the Company does not withhold an amount
from the Participant’s remuneration sufficient to satisfy the Company’s income tax withholding obligation, the Participant will reimburse the Company on demand, in cash, for the amount under-withheld. 

 

	 	12.	PURCHASE FOR INVESTMENT. 

 Unless the offering and sale of the Shares to be issued upon
the particular exercise of the Option shall have been effectively registered under the Securities Act, the Company shall be under no obligation to issue the Shares covered by such exercise unless the Company has determined that such exercise and
issuance would be exempt from the registration requirements of the Securities Act and until the following conditions have been fulfilled: 
  

	 	(a)	The person(s) who exercise the Option shall warrant to the Company, at the time of such exercise, that such person(s) are acquiring such Shares for their own respective accounts, for investment, and not with a view to,
or for sale in connection with, the distribution of any such Shares, in which event the person(s) acquiring such Shares shall be bound by the provisions of the following legend which shall be endorsed upon any certificate(s) evidencing the Shares
issued pursuant to such exercise: 

 “The shares represented by this certificate have been taken for investment and they
may not be sold or otherwise transferred by any person, including a pledgee, unless (1) either (a) a Registration Statement with respect to such shares shall be effective under the Securities Act of 1933, as amended, or (b) the
Company shall have received an opinion of counsel satisfactory to it that an exemption from registration under such Act is then available, and (2) there shall have been compliance with all applicable state securities laws;” and 

(b) If the Company so requires, the Company shall have received an opinion of its counsel that the Shares may be issued upon such particular

  
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exercise in compliance with the Securities Act without registration thereunder. Without limiting the generality of the foregoing, the Company may delay issuance of the Shares until completion of
any action or obtaining of any consent, which the Company deems necessary under any applicable law (including without limitation state securities or “blue sky” laws). 

 

	 	13.	NO OBLIGATION TO MAINTAIN RELATIONSHIP. 

 The Participant acknowledges that: (i) the
Company is not by the Plan or this Option obligated to continue the Participant as an employee, director or Consultant of the Company or an Affiliate; (ii) the Plan is discretionary in nature and may be suspended or terminated by the Company at
any time; (iii) the grant of the Option is a one-time benefit which does not create any contractual or other right to receive future grants of options, or benefits in lieu of options; (iv) all determinations with respect to any such future
grants, including, but not limited to, the times when options shall be granted, the number of shares subject to each option, the option price, and the time or times when each option shall be exercisable, will be at the sole discretion of the
Company; (v) the Participant’s participation in the Plan is voluntary; (vi) the value of the Option is an extraordinary item of compensation which is outside the scope of the Participant’s employment or consulting contract, if
any; and (vii) the Option is not part of normal or expected compensation for purposes of calculating any severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar
payments. 
  

	 	14.	IF OPTION IS INTENDED TO BE AN ISO. 

 If this Option is designated in the Stock Option
Grant Notice as an ISO so that the Participant (or the Participant’s Survivors) may qualify for the favorable tax treatment provided to holders of Options that meet the standards of Section 422 of the Code then any provision of this
Agreement or the Plan which conflicts with the Code so that this Option would not be deemed an ISO is null and void and any ambiguities shall be resolved so that the Option qualifies as an ISO. The Participant should consult with the
Participant’s own tax advisors regarding the tax effects of the Option and the requirements necessary to obtain favorable tax treatment under Section 422 of the Code, including, but not limited to, holding period requirements. 

Notwithstanding the foregoing, to the extent that the Option is designated in the Stock Option Grant Notice as an ISO and is not deemed to be
an ISO pursuant to Section 422(d) of the Code because the aggregate Fair Market Value (determined as of the Date of Option Grant) of any of the Shares with respect to which this ISO is granted becomes exercisable for the first time during any
calendar year in excess of $100,000, the portion of the Option representing such excess value shall be treated as a Non-Qualified Option and the Participant shall be deemed to have taxable income measured by the difference between the then Fair
Market Value of the Shares received upon exercise and the price paid for such Shares pursuant to this Agreement. 
 Neither the Company nor
any Affiliate shall have any liability to the Participant, or any other party, if the Option (or any part thereof) that is intended to be an ISO is not an ISO or for any action taken by the Administrator, including without limitation the conversion
of an ISO to a Non-Qualified Option. 

  
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	 	15.	NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION OF AN ISO. 

 If this Option is designated
in the Stock Option Grant Notice as an ISO then the Participant agrees to notify the Company in writing immediately after the Participant makes a Disqualifying Disposition of any of the Shares acquired pursuant to the exercise of the ISO. A
Disqualifying Disposition is defined in Section 424(c) of the Code and includes any disposition (including any sale) of such Shares before the later of (a) two years after the date the Participant was granted the ISO or (b) one year
after the date the Participant acquired Shares by exercising the ISO, except as otherwise provided in Section 424(c) of the Code. If the Participant has died before the Shares are sold, these holding period requirements do not apply and no
Disqualifying Disposition can occur thereafter. 
  

	 	16.	NOTICES. 

 Any notices required or permitted by the terms of this Agreement or the Plan
shall be given by recognized courier service, facsimile, registered or certified mail, return receipt requested, addressed as follows: 
 If to the Company:

 Synageva BioPharma Corp. 
 33 Hayden Avenue 

Lexington, MA 02421 
  

			
	Attn:		  

 If to the Participant at the address set forth on the Stock Option Grant Notice 

or to such other address or addresses of which notice in the same manner has previously been given. Any such notice shall be deemed to have been given upon
the earlier of receipt, one business day following delivery to a recognized courier service or three business days following mailing by registered or certified mail. 
  

	 	17.	GOVERNING LAW. 

 This Agreement shall be governed by and construed in accordance with the
laws of the State of Delaware, without giving effect to the conflict of law principles thereof. For the purpose of litigating any dispute that arises under this Agreement, the parties hereby consent to exclusive jurisdiction in the Commonwealth of
Massachusetts and agree that such litigation shall be conducted in the state courts of the Commonwealth of Massachusetts or the federal courts of the United States for the District of Massachusetts. 

  
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	 	18.	BENEFIT OF AGREEMENT. 

 Subject to the provisions of the Plan and the other provisions
hereof, this Agreement shall be for the benefit of and shall be binding upon the heirs, executors, administrators, successors and assigns of the parties hereto. 
  

	 	19.	ENTIRE AGREEMENT. 

 This Agreement, together with the Plan, embodies the entire agreement
and understanding between the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings relating to the subject matter hereof. No statement, representation, warranty, covenant or
agreement not expressly set forth in this Agreement shall affect or be used to interpret, change or restrict, the express terms and provisions of this Agreement, provided, however, in any event, this Agreement shall be subject to and governed by the
Plan. 
  

	 	20.	MODIFICATIONS AND AMENDMENTS. 

 The terms and provisions of this Agreement may be
modified or amended as provided in the Plan. 
  

	 	21.	WAIVERS AND CONSENTS. 

 Except as provided in the Plan, the terms and provisions of this
Agreement may be waived, or consent for the departure therefrom granted, only by written document executed by the party entitled to the benefits of such terms or provisions. No such waiver or consent shall be deemed to be or shall constitute a
waiver or consent with respect to any other terms or provisions of this Agreement, whether or not similar. Each such waiver or consent shall be effective only in the specific instance and for the purpose for which it was given, and shall not
constitute a continuing waiver or consent. 
  

	 	22.	DATA PRIVACY. 

 By entering into this Agreement, the Participant: (i) authorizes the
Company and each Affiliate, and any agent of the Company or any Affiliate administering the Plan or providing Plan recordkeeping services, to disclose to the Company or any of its Affiliates such information and data as the Company or any such
Affiliate shall request in order to facilitate the grant of options and the administration of the Plan; and (ii) authorizes the Company and each Affiliate to store and transmit such information in electronic form for the purposes set forth in
this Agreement. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
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 Exhibit A 

NOTICE OF EXERCISE OF STOCK OPTION 
  

	To:	Synageva BioPharma Corp. 

 Ladies and Gentlemen: 

I hereby exercise my Stock Option to purchase
                shares (the “Shares”) of the common stock, $0.001 par value, of Synageva BioPharma Corp. (the “Company”), at the exercise price of
$        per share, pursuant to and subject to the terms of that Stock Option Grant Notice dated             , 201  . 

I understand the nature of the investment I am making and the financial risks thereof. I am aware that it is my responsibility to have
consulted with competent tax and legal advisors about the relevant national, state and local income tax and securities laws affecting the exercise of the Option and the purchase and subsequent sale of the Shares. 

I am paying the option exercise price for the Shares as follows: 
  

					
			  
		

 Please issue the Shares (check one): 

 ̈ to me; or 

 ̈ to me and
                                        , as
joint tenants with right of survivorship, 
 at the following address: 

 

			
	  
		
	  
		
	  
		

 My mailing address for shareholder communications, if different from the address listed above, is: 

 

			
	  
		
	  
		
	  
		

  
 Exhibit A-1 

 
	
	Very truly yours,
	
	  

Participant (signature)

	
	  
 Print
Name

	
	  

Date

	

  
 Exhibit A-2Exhibit 1010E

		
			Exhibit 10.10E
		

		
			FIRST AMENDMENT TO CREDIT AGREEMENT
		

		
			This First Amendment to Credit Agreement (this “Amendment”), is dated as of July 21, 2014 (the “Effective Date”) by and among WAGEWORKS, INC., a Delaware corporation (the “Borrower”), MHM RESOURCES, LLC, a Delaware limited liability company (“MHM”), Benefit Concepts Inc. of Rhode Island, a Rhode Island corporation (together with MHM, each a “Guarantor” and collectively, the “Guarantors”), the several financial institutions from time to time party to the Credit Agreement (as defined below) as lenders (the “Lenders”), and MUFG UNION BANK, N.A. (formerly Union Bank, N.A.), as a Lender and as administrative agent for the Lenders (in such capacity, the “Agent”) and as L/C Issuer.
		

		
			BACKGROUND
		

		
			A.Borrower, Guarantors, Lenders and Agent are parties to the Credit Agreement, dated as of December 31, 2012, as amended, modified, supplemented, extended or restated from time to time, (collectively, the “Credit Agreement”), pursuant to which the Lenders have agreed, subject to and on the terms and conditions set forth therein, to make certain loans and other credit accommodations to or for the benefit of Borrower.
		

		
			B.Borrower has requested that Agent and Lenders agree to amend the Credit Agreement as set forth herein.  
		

		
			C.MUFG Union Bank, N.A., as Agent and Lender, is willing to amend the Credit Agreement on and subject to the terms set forth herein, and the parties desire to amend the Credit Agreement to effect such amendments in accordance with the terms, and subject to the conditions, set forth herein.
		

		
			AGREEMENT
		

		
			NOW THEREFORE, in consideration of the mutual covenants and agreements herein contained and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows: 
		

			
	
			
				 1.
			Incorporation of Recitals: Definitions.  Each of the above recitals is incorporated herein as true and correct and is relied upon by Agent and each Lender in agreeing to the terms of this Amendment.  Any capitalized term used but not defined herein shall have the meaning ascribed thereto in the Credit Agreement.

			
	
			
				 2.
			Representations and Warranties.  Each Loan Party represents and warrants to, and covenants and agrees for the benefit of, Agent and each Lender that: 

			
	
			
				 a.
			All of the representations and warranties of each Loan Party set forth in the Credit Agreement and each other Loan Document to which such Loan Party is a party were true, correct and complete as of the date originally made, and are true, correct and complete in all material respects as of the date hereof (except to the extent such representations and warranties expressly refer to an earlier date, in which case they are true, correct and complete in all material respects as of such earlier date); provided that the foregoing materiality qualifications shall not apply to any representations or warranties that are qualified by materiality in the text thereof, which representations and warranties shall be true in all respects;

		

		

		 

		

			WEST\248917747.3
319678-000089 

		

 

		 
		

			
	
			
				 b.
			Each Loan Party has the power and authority to execute this Amendment, and the execution, delivery, and performance by such Loan Party of this Amendment and the other documents, instruments and agreements to which such Loan Party is a party delivered or to be delivered in connection herewith (i) are within the corporate or limited liability company powers of such Loan Party and have been duly authorized by all necessary corporate or limited liability company action on the part of such Loan Party, (ii) do not require any approval or consent of any Governmental Authority or any other third party consent, except those which have been duly obtained and are in full force and effect and those the failure of which to obtain could not be reasonably expected to have a Material Adverse Effect, (iii) do not and will not conflict with or violate any applicable Law or such Loan Party’s Organization Documents, (iv) do not result in any breach of or constitute a default under any Contractual Obligation to which such Loan Party is a party, and (v) do not result in or require the creation or imposition of any Lien upon any of the assets or properties of any Loan Party or any of their respective Subsidiaries;

			
	
			
				 c.
			This Amendment and the other certificates, instruments, documents and agreements delivered or to be delivered by each Loan Party in connection herewith have been duly executed and delivered by such Loan Party and constitute the legal, valid, and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with their respective terms, except to the extent that (i) enforcement may be limited by Debtor Relief Law, (ii) enforcement may be subject to general principles of equity, and (iii) the availability of the remedies of specific performance and injunctive relief may be subject to the discretion of the court before which any proceedings for such remedies may be brought;

			
	
			
				 d.
			No event has occurred or failed to occur, and after and as a result of giving effect to this Amendment will occur, that is, or, with notice or lapse of time or both would constitute, a Default, an Event of Default, or a breach or failure of any condition under any Loan Document; 

			
	
			
				 e.
			As of the date hereof, (i) Borrower has no Material Subsidiaries, or Subsidiaries that are required to be designated as Material Subsidiaries under the Loan Documents, other than Guarantors party hereto; and (ii) PBS is not a 5% Subsidiary; and

			
	
			
				 f.
			After and as a result of giving effect to this Amendment, no Loan Party has any offset, defense, claim, counterclaim, dispute or disagreement of any kind or nature whatsoever with respect to Agent or any Lender or with respect to its liabilities, obligations and indebtedness arising under or in connection with the Credit Agreement or any of the other Loan Documents.

			
	
			
				 3.
			Amendments to Credit Agreement.  

			
	
			
				 a.
			Section 1.01 of the Credit Agreement is hereby amended by adding or amending and restating the following defined terms to read as follows:

		
			“Aggregate Commitments” means the Commitments of all Lenders.  As of the First Amendment Closing Date, the Aggregate Commitments shall be One Hundred Twenty-Five Million Dollars ($125,000,000).
		

		
			“Applicable Rate” means, from time to time: (a) from the First Amendment Closing Date to the date on which Administrative Agent receives the financial statements and a Compliance Certificate pursuant to Sections 7.01 and 7.02 for the fiscal quarter ending June 30, 2014, the applicable percentages per annum specified for Pricing Level 3 in the pricing grid below, and (b) as of any date of determination thereafter, the applicable percentages per annum set forth in the pricing grid below determined by reference to the Consolidated Leverage Ratio, as 
		

		 

		

			2

		

		

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		set forth in the most recent financial statements and Compliance Certificate received by Administrative Agent pursuant to Sections 7.01 and 7.02: 
		

			
					
						Pricing Level

					
					
						Consolidated Leverage Ratio

					
					
						Applicable Rate for 
Base Rate Loans:

					
					
						Applicable Rate for Eurodollar Rate Loans:

					
					
						Applicable Rate for L/C Fees:

				
	
					
						1

					
					
						Less than or equal to 0.50:1.00

					
					
						0.00%

					
					
						1.75%

					
					
						1.00%

				
	
					
						2

					
					
						Greater than 0.50 to 1.00 and less than or equal to 1.00 to 1.00

					
					
						0.00%

					
					
						2.00%

					
					
						1.00%

				
	
					
						3

					
					
						Greater than 1.00 to 1.00

					
					
						0.25%

					
					
						2.25%

					
					
						1.00%

				

		
			Adjustments in the Applicable Rate shall be implemented quarterly beginning with the fiscal quarter ending as of June 30, 2014, on a prospective basis, as of the first (1st) day of the first calendar month following the delivery to Administrative Agent of the financial statements and accompanying Compliance Certificate delivered pursuant to Sections 7.01 and 7.02 evidencing the need for an adjustment; provided, that if the annual audited financial statements for any fiscal year and accompanying Compliance Certificate delivered to Administrative Agent result in a change in the Applicable Rate from the quarterly financial statements previously delivered by Borrower to Administrative Agent, then Administrative Agent shall make such change effective upon the first (1st) day of the calendar month following the delivery to Administrative Agent of such annual audited financial statements.  Failure to timely deliver the quarterly or annual financial statements and accompanying Compliance Certificates shall, in addition to any other remedy provided for in this Agreement or the other Loan Documents, result in an increase in the Applicable Rate to the highest level set forth in the foregoing grid, from the date on which such Compliance Certificate was required to be delivered, until the first (1st) day of the calendar month following the delivery of those financial statements and accompanying Compliance Certificate demonstrating that such an increase is not required.  If an Event of Default has occurred and is continuing at the time any reduction in the Applicable Rate is to be implemented, that reduction shall be deferred until the first (1st) day of the calendar month following the date on which such Event of Default is waived or cured.
		

		
			“Consolidated Leverage Ratio” means, for any date of determination, for Borrower and its consolidated Subsidiaries, a ratio of (i) Indebtedness (including without limitation all obligations in respect of letters of credit, all Earn-Out Obligations and all other deferred Acquisition-related obligations and liabilities that constitute consideration for any Acquisition) as of such date, to (ii) EBITDA for the period of twelve consecutive months (or four fiscal quarters) ending on such date.  This ratio will be calculated at the end of each reporting period for which this Agreement requires Borrower to deliver financial statements (but no less frequently that quarterly), using the results of the twelve month (or four fiscal quarter) period ending with that reporting period.
		

		
			“First Amendment Closing Date” means July 21, 2014.
		

		
			“Maturity Date” means July 21, 2017; provided,  however, that if such date is not a Business Day, the Maturity Date shall be the preceding Business Day.
		

			
	
			
				 b.
			Section 1.01 of the Credit Agreement is hereby amended by amending and restating the first paragraph of paragraph (c) the definition of “Permitted Acquisition” to read as follows:

		

		

		 

		

			3

		

		

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		“(c)for any Acquisition where the Aggregate Consideration paid or payable by Borrower and its Subsidiaries in connection with such Acquisition exceeds Fifty Million Dollars ($50,000,000) Borrower shall have delivered to Administrative Agent, at least five (5) days prior to the consummation of such Acquisition:”
		

			
	
			
				 c.
			Section 2.06(b)(i) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

		
			(i)If no Default or Event of Default shall have occurred and be continuing, upon written notice to Administrative Agent (each such notice, a “Commitment Increase Notice”), Borrower may from time to time prior to the Maturity Date, request an increase of the Aggregate Commitments (but not the L/C Sublimit) by an amount (for all such requests) not exceeding Twenty Five Million Dollars ($25,000,000); provided that, (i) any such request for an increase shall be in a minimum amount of Twenty Five Million Dollars ($25,000,000); and (ii) Borrower may make a maximum of one (1) such request.  Any such Commitment Increase Notice delivered with respect to any proposed increase in the Commitment may offer one or more Lenders an opportunity to subscribe for its Applicable Percentage (with respect to the existing Commitment (prior to such increase)) of the increased Aggregate Commitments.  Administrative Agent shall promptly, and in any event within five (5) Business Days after receipt of a Commitment Increase Notice, notify each Lender of such request.  Each Lender desiring to increase its Commitment shall notify Administrative Agent in writing no later than ten (10) Business Days after receipt of notice from Administrative Agent.  Any Lender that does not notify Administrative Agent within the time period specified above that it will, in its sole discretion, increase its Commitment will be deemed to have rejected such offer.  Any agreement by a Lender to increase its Commitment shall be irrevocable.
		

			
	
			
				 d.
			Section 2.08 of the Credit Agreement is hereby amended by adding a new paragraph (d) to read as follows:

		
			(d)If, for any reason (including inaccurate reporting on financial statements or a Compliance Certificate or any restatement of or other adjustment to the financial statements of Borrower), it is determined that a higher Applicable Rate should have applied to a period than was actually applied, then the proper Applicable Rate shall be applied retroactively and Borrower shall immediately pay to Administrative Agent, for the ratable benefit of Lenders, an amount equal to the difference between the amount of interest and fees that would have accrued using the proper margin and the amount actually paid, provided that notwithstanding the foregoing, such amounts shall be due and payable within five (5) Business Days following the written demand of the Administrative Agent and no Default or Event of Default shall be deemed to have occurred as a result of such non-payment until the expiration of such five (5) Business Day period.  All such amounts payable by Borrower shall be due and payable on demand (or, after the occurrence of an actual or deemed entry of an order for relief with respect to Borrower under a Debtor Relief Law, automatically and without further action by Administrative Agent or any Lender).  This paragraph shall not limit the rights of Administrative Agent or any Lender under any other provision of this Agreement or the other Loan Documents.
		

			
	
			
				 e.
			Section 2.15 of the Credit Agreement is hereby amended by amending and restating the last sentence of that section to read as follows:

		

		

		 

		

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		“In addition, Borrower shall provide Cash Collateral in an amount not less than the applicable Minimum Collateral Amount not less than: (a) five (5) Business Days prior to the Maturity Date, and (b) five (5) Business Days prior to any cancellation or termination of the Commitments or this Agreement, and the provision of such Cash Collateral shall be a condition precedent to any such cancellation or termination.”
		

			
	
			
				 f.
			Section 7.01(b) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

		
			(b)as soon as available, but in any event within forty five (45) days after the end of each of the fiscal quarters of each fiscal year of Borrower, a consolidated  balance sheet of Borrower and its Subsidiaries as at the end of such fiscal quarter, and the related consolidated statements of income or operations, for such fiscal quarter and for the portion of Borrower’s fiscal year then ended, and the related consolidated statements of changes in shareholders’ equity, and cash flows for the portion of Borrower’s fiscal year then ended, in each case setting forth in comparative form, as applicable, the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, all in reasonable detail, such consolidated statements to be certified by the chief executive officer, chief financial officer, treasurer or controller of Borrower as fairly presenting in all material respects the financial condition, results of operations, shareholders’ equity and cash flows of Borrower and its Subsidiaries in accordance with GAAP, subject only to normal year end audit adjustments and the absence of footnotes.
		

			
	
			
				 g.
			Section 7.13(b) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

		
			(b)Consolidated Leverage Ratio.  Maintain a Consolidated Leverage Ratio for the four quarter period then ended, that is at all times less than or equal to 3.00 to 1.00.  
		

			
	
			
				 h.
			Section 7.13(d) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

		
			(d)Minimum Consolidated Net Worth.  Maintain at all times a minimum Consolidated Net Worth of not less than the sum of (i) $200,000,000, plus (ii) seventy-five percent (75%) of Consolidated Net Income (Loss) for each fiscal quarter ending on or after the First Amendment Closing Date (provided that the amount of this clause (ii) shall not in any event be less than $0.00), plus (iii) one hundred percent (100%) of the Net Cash Proceeds from any Equity Issuance (excluding any Net Cash Proceeds from the exercise of any employee stock options or the exercise of any warrants) after the First Amendment Closing Date.
		

			
	
			
				 i.
			Effective as of July 1, 2014, Union Bank, N.A. changed its name to MUFG Union Bank, N.A., and as such, all references to “Union Bank, N.A.” in the Credit Agreement or any other Loan Document shall hereafter mean and refer to “MUFG Union Bank, N.A.”

			
	
			
				 j.
			Schedule 2.01 to the Credit Agreement is hereby amended, restated and replaced with Schedule 2.01 attached hereto.

			
	
			
				 k.
			Exhibit C to the Credit Agreement is hereby amended, restated and replaced with Exhibit C attached hereto.

		 

		

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				 4.
			Conditions Precedent.  Each Loan Party understands that this Amendment shall not be effective and shall have no force or effect until each of the following conditions precedent has been satisfied, or waived in writing by Agent (in Agent's sole discretion):

			
	
			
				 a.
			

			
	
			
			Each Loan Party shall have duly executed and delivered to Agent and each Lender this Amendment; 

			
	
			
				 b.
			

			
	
			
			Borrower shall have executed and delivered to MUFG Union Bank, N.A. an amended and restated Note evidencing the amount of its Commitment reflected on Schedule 2.01;

			
	
			
				 c.
			

			
	
			
			Borrower shall have delivered to Agent:

			
	
			
				i.
			

			
	
			
			copies of the Organization Documents of each Loan Party certified to be true and complete as of a recent date by the appropriate Governmental Authority of the state or other jurisdiction of its incorporation or organization, where applicable, and certified by a secretary or assistant secretary of such Loan Party to be true and correct; 

			
	
			
				ii.
			

			
	
			
			such certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Loan Party as Agent may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Amendment and the other Loan Documents to which such Loan Party is a party;

			
	
			
				iii.
			

			
	
			
			such documents and certifications as Agent may reasonably require to evidence that each Loan Party is duly organized or formed, and that each Loan Party is validly existing, in good standing and qualified to engage in business in each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect;

			
	
			
				iv.
			

			
	
			
			a favorable opinion of counsel to the Loan Parties addressed to Agent and each Lender, in form and substance reasonably satisfactory to Agent;

			
	
			
				 d.
			

			
	
			
			Borrower shall have paid to Agent, for the account of MUFG Union Bank, N.A., as Lender, an upfront fee in an amount equal Three Hundred Thirty Six Thousand Dollars ($336,000).  Such upfront fee is for the credit facilities committed by Lender under the Agreement and is fully earned on the date of this Amendment.  The upfront fee paid to Lender is solely for its own account and is nonrefundable for any reason whatsoever. 

			
	
			
				 e.
			

			
	
			
			The representations and warranties of each Loan Party under the Credit Agreement, the other Loan Documents and this Amendment, as applicable, shall be true and correct in all material respects as of the date hereof (except to the extent such representations and warranties expressly refer to an earlier date, in which case they are true, correct and complete in all material respects as of such earlier date); provided that the foregoing materiality qualifications shall not apply to any representations or warranties that are qualified by materiality in the text thereof, which representations and warranties shall be true in all respects; 

		 

		

			6

		

		

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				 f.
			

			
	
			
			Agent shall have received in immediately available funds, all out-of-pocket costs and expenses (including reasonable attorneys’ fees and costs) incurred by Agent in connection with this Amendment and the transactions contemplated hereby and invoiced to Borrower prior to the date on which this Amendment is otherwise to become effective; provided that the failure to invoice any such amounts to Borrower prior to such date shall not preclude Agent from seeking reimbursement of such amounts, or excuse any Loan Party from paying or reimbursing such amounts, following the effective date of this Amendment; and

			
	
			
				 g.
			

			
	
			
			Agent shall have received such other documents, and completion of such other matters, as Agent may reasonably deem necessary or appropriate in connection with this Amendment.

			
	
			
				 5.
			Ratification and Confirmation of Loan Documents.  Except as expressly set forth in Section 3 hereof, the execution, delivery, and performance of this Amendment shall not alter, modify, amend, or in any way affect any of the terms, conditions, obligations, covenants, or agreements contained in the Credit Agreement or any other Loan Document, and shall not operate as a waiver of any right, power, or remedy of Agent or any Lender under the Credit Agreement or any other Loan Document.  The Credit Agreement, all promissory notes, guaranties, security agreements, and all other instruments, documents and agreements entered into in connection with the Credit Agreement and each other Loan Document shall be and remain in full force and effect in accordance with their respective terms and hereby are ratified, reaffirmed and confirmed by Borrower and each other Loan Party in all respects.

			
	
			
				 6.
			No Waivers.  This Amendment: (a) in no way shall be deemed to be a consent or an agreement on the part of Agent or any Lender to waive any covenant, liability or obligation of Borrower, any Guarantor or any third party or to waive any right, power, or remedy of Agent or any Lender; (b) in no way shall be deemed to imply a willingness on the part of Agent or any Lender to grant any similar or other future waivers or to agree to any future consents, amendments or modifications to any of the terms and conditions of the Credit Agreement or the other Loan Documents; (c) shall not in any way, prejudice, limit, impair or otherwise affect any rights or remedies of Agent or any Lender under the Credit Agreement or any of the other Loan Documents, including, without limitation, Agent’s or any Lender’s right to demand strict performance of each Loan Party’s liabilities and obligations to Agent and the Lenders and the Obligations under the Loan Documents at all times; (d) in no way shall obligate Agent or any Lender to make any future amendments, waivers, consents or modifications to the Credit Agreement or any other Loan Document; and (e) is not a continuing waiver with respect to any failure to perform any Obligation.  Each Loan Party acknowledges and agrees that: (i) except as expressly set forth herein, the Credit Agreement has not been amended or modified in any way by this Amendment, except as expressly provided herein, (ii) neither Agent nor any Lender waives any failure by Borrower or any other Loan Party to perform its Obligations under the Credit Agreement or any of the other Loan Documents, and (iii) Agent and each Lender is relying upon Borrower’s and each other Loan Party’s representations, warranties and agreements, as set forth herein and in the Loan Documents in entering into this Amendment.  Nothing in this Amendment shall constitute a satisfaction of Borrower’s or any other Loan Party’s Obligations.  This Amendment shall be deemed to be one of the Loan Documents.

			
	
			
				 7.
			Release.  Borrower and each Guarantor hereby, for itself, its successors, heirs, executors, administrators and assigns (each a “Releasing Party” and collectively, the “Releasing Parties”), releases, acquits and forever discharges Agent and each Lender, and their respective directors, officers, employees, agents, attorneys, affiliates, successors, administrators and assigns ("Released Parties") of and from any and all claims, actions, causes of action, demands, rights, damages, costs, loss of service, expenses and compensation whatsoever which any Releasing Party might have because of anything done, omitted to be done, or allowed to be done by any of the Released Parties and in any way arising out of or 
		

		 

		

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			connected with the Credit Agreement or the other Loan Documents as of the date of execution of this Amendment, WHETHER KNOWN OR UNKNOWN, FORESEEN OR UNFORESEEN, including, without limitation, any specific claim raised by any Releasing Party, (the "Released Matters").  Releasing Parties each further agrees never to commence, aid or participate in (except to the extent required by order or legal process issued by a court or governmental agency of competent jurisdiction) any legal action or other proceeding based in whole or in part upon the Released Matters.  In furtherance of this general release, Releasing Parties each acknowledges and waives the benefits of California Civil Code Section 1542 (and all similar ordinances and statutory, regulatory, or judicially created laws or rules of any other jurisdiction), which provides:

		
			A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.
		

		
			Releasing Parties each agree that this waiver and release is an essential and material term of this Amendment and that the agreements in this paragraph are intended to be in full satisfaction of any alleged injuries or damages in connection with the Released Matters.  Releasing Parties each represent and warrant that it has not purported to convey, transfer or assign any right, title or interest in any Released Matter to any other person or entity and that the foregoing constitutes a full and complete release of the Released Matters.  Releasing Parties each also understands that this release shall apply to all unknown or unanticipated results of the transactions and occurrences described above, as well as those known and anticipated. Releasing Parties each has consulted with legal counsel prior to signing this release, or had an opportunity to obtain such counsel and knowingly chose not to do so, and executes such release voluntarily, with the intention of fully and finally extinguishing all Released Matters.  Notwithstanding anything in this Amendment, Borrower does not waive any of Agent’s or any Lender’s obligations under the terms of the Agreement as amended by this Amendment.
		

			
	
			
				 8.
			Miscellaneous.  Each Loan Party acknowledges and agrees that the representations and warranties set forth herein are material inducements to Agent and the Lenders to deliver this Amendment.  This Amendment shall be binding upon and inure to the benefit of and be enforceable by the parties hereto, and their respective permitted successors and assigns.  This Amendment and the Credit Agreement shall be read together as one document.  No course of dealing on the part of Agent, the Lenders or any of their respective officers, nor any failure or delay in the exercise of any right by Agent or the Lenders, shall operate as a waiver thereof, and any single or partial exercise of any such right shall not preclude any later exercise of any such right.  The failure at any time to require strict performance by Borrower or any other Loan Party of any provision of the Loan Documents shall not affect any right of Agent or the Lenders thereafter to demand strict compliance and performance.  Any suspension or waiver of a right must be in writing signed by an officer of Agent and/or the Lenders, as applicable.  No other Person shall be entitled to claim any right or benefit hereunder, including, without limitation, the status of a third party beneficiary hereunder other than Secured Parties.  This Amendment shall be governed by and construed in accordance with the laws of the State of California without reference to conflicts of law rules.  If any provision of this Amendment or any of the other Loan Documents shall be determined by a court of competent jurisdiction to be invalid, illegal or unenforceable, that portion shall be deemed severed herefrom or therefrom, as applicable, and the remaining parts shall remain in full force as though the invalid, illegal or unenforceable portion had never been a part hereof or thereof, as applicable.  This Amendment shall be construed without regard to any presumption or rule requiring that it be construed against the party causing this Amendment or any part hereof to be drafted.  The headings used in this Amendment are for convenience only and shall be disregarded in interpreting the substantive provisions of this Amendment.  This Amendment may be executed in any number of counterparts, including by 
		

		 

		

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			electronic or facsimile transmission, each of which when so delivered shall be deemed an original, but all such counterparts taken together shall constitute but one and the same instrument.  

		
			[Signature Page Follows]
		

		
			 
		

		

		

		 

		

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		IN WITNESS WHEREOF, Borrower, Guarantors, Agent and the Lenders have caused this Amendment to be executed as of the date first written above.
		

			
					
						BORROWER:

					
					
						 

					
					
						WAGEWORKS, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:

				
	
					
						 

					
					
						 

					
					
						Name:

				
	
					
						 

					
					
						 

					
					
						Its:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						GUARANTORS:

					
					
						 

					
					
						MHM RESOURCES, LLC

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:

				
	
					
						 

					
					
						 

					
					
						Name:

				
	
					
						 

					
					
						 

					
					
						Its:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Benefit Concepts Inc. 
of Rhode Island

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:

				
	
					
						 

					
					
						 

					
					
						Name:

				
	
					
						 

					
					
						 

					
					
						Its:

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			[Signature Page to First Amendment Credit Agreement]
		

		

		

		 

		

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		IN WITNESS WHEREOF, Borrower, Guarantors, Agent and the Lenders have caused this Amendment to be executed as of the date first written above.
		

			
					
						AGENT:

					
					
						MUFG UNION BANK, N.A., as Agent

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

				
	
					
						 

					
					
						James B. Goudy

				
	
					
						 

					
					
						Title:Director

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						LENDER:

					
					
						MUFG UNION BANK, N.A., as Lender

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

				
	
					
						 

					
					
						James B. Goudy

				
	
					
						 

					
					
						Title:Director

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			[Signature Page to First Amendment to Credit Agreement]
		

		

		

		 

		

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		SCHEDULE 2.01

COMMITMENTS AND
APPLICABLE PERCENTAGES
		

			
					
						Lender

					
					
						Commitment

					
					
						Applicable Percentage

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						MUFG UNION BANK, N.A.

					$
125,000,000 
					
					
						100.000000000%

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Total

					$
125,000,000 
					
					
						100.000000000%

				

		
			 
		

		
			 
		

		

		

		 

		

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		EXHIBIT C

FORM OF COMPLIANCE CERTIFICATE
		

		
			Financial Statement Date:  ___________, ____
		

		
			To:MUFG UNION BANK, N.A., as Administrative Agent
		

		
			Ladies and Gentlemen:
		

		
			Reference is made to that certain Credit Agreement, dated as of December 31, 2012 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement”; the terms defined therein being used herein as therein defined), among WAGEWORKS, INC., a Delaware corporation (“Borrower”), the Guarantors from time to time party thereto, the Lenders from time to time party thereto, and MUFG Union Bank, N.A., (formerly Union Bank, N.A.), as Administrative Agent and L/C Issuer.
		

		
			The undersigned Responsible Officer hereby certifies as of the date hereof that he/she is the  of Borrower, and that, as such, he/she is authorized to execute and deliver this Certificate to Administrative Agent on the behalf of Borrower, and that:
		

		
			[Use following paragraph 1 for fiscal year‐end financial statements]
		

		
			1.Borrower has delivered the year end audited financial statements required by Section 7.01(a) of the Agreement for the fiscal year of Borrower ended as of the above date, together with the report and opinion of an independent certified public accountant required by such section.
		

		
			[Use following paragraph 1 for fiscal quarter‐end financial statements]
		

		
			1.Borrower has delivered the unaudited financial statements required by Section 7.01(b) of the Agreement for the fiscal quarter of Borrower ended as of the above date.  Such financial statements fairly present in all material respects the financial condition, results of operations, stockholders’ equity and cash flows of Borrower and its Subsidiaries in accordance with GAAP as at such date and for such period, subject only to normal year end audit adjustments and the absence of footnotes.
		

		
			2.The undersigned has reviewed and is familiar with the terms of the Agreement and has made, or has caused to be made under his/her supervision, a detailed review of the transactions and condition (financial or otherwise) of Borrower during the accounting period covered by such financial statements.
		

		
			3.A review of the activities of Borrower during such fiscal period has been made under the supervision of the undersigned with a view to determining whether during such fiscal period Borrower performed and observed all its Obligations under the Loan Documents, and
		

		
			[select one:]
		

		

		

		 

		

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		[to the best knowledge of the undersigned during such fiscal period, Borrower performed and observed in all material respects each covenant and condition of the Loan Documents applicable to it, and no Default has occurred and is continuing.]
		

		
			--or--
		

		
			[to the best knowledge of the undersigned, during such fiscal period, the following covenants or conditions have not been performed or observed in all material respects and the following is a list of each such Default and its nature and status:]
		

		
			4.The representations and warranties of Borrower contained in Article VI of the Agreement, and/or any representations and warranties of Borrower or any other Loan Party that are contained in any document furnished at any time under or in connection with the Loan Documents, are true and correct in all material respects on and as of the date hereof, except that (i) if a qualifier relating to materiality, Material Adverse Effect or a similar concept applies, such representation and warranty is true and correct in all respects, (ii) to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects as of such earlier date, and (iii) for purposes of this Compliance Certificate, the representations and warranties contained in subsections (a) and (b) of Section 6.05 of the Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 7.01 of the Agreement, including the statements in connection with which this Compliance Certificate is delivered.
		

		
			5.Set forth on Annex I attached hereto is a description of all Permitted Acquisitions undertaken during the period covered by this Certificate.
		

		
			6.The financial covenant analyses and information set forth on Schedule 1 attached hereto are true and accurate in all material respects on and as of the date of this Certificate.
		

		
			[Use the following paragraph 6 in connection with the delivery of fiscal quarter-end financial statements for the second fiscal quarter of any fiscal year.]
		

		
			[6.Attached hereto as Schedule 2 is (i) a list of (A) all applications by any Loan Party, if any, for Copyrights, Patents or Trademarks made since [the Closing Date]* [the date of the prior Compliance Certificate]**, (B) all issuances of registrations or letters on existing applications by any Loan Party for Copyrights, Patents and Trademarks received since [the Closing Date]* [the date of the prior Compliance Certificate]**, (C) all Trademark Licenses, Copyright Licenses and Patent Licenses entered into by any Loan Party since [the Closing Date]* [the date of the prior Compliance Certificate]**, and (ii) the insurance binder or other evidence of insurance for any insurance coverage of any Loan Party or any Subsidiary that was renewed, replaced or modified during the period covered by the financial statements referenced in Paragraph 1 above.]
		

		
			 
		

		
			 
		

		
			IN WITNESS WHEREOF, the undersigned has executed this Certificate as of _________________, ________.
		

			
					
						 

					
					
						 

					
					
						WAGEWORKS, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:

				

		 

		

			2

		

		

			WEST\248917747.3
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						Name:

				
	
					
						 

					
					
						 

					
					
						Title:

				

		
			 
		

		

		

		 

		

			3

		

		

			WEST\248917747.3
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		For the Quarter/Year ended ___________________(“Statement Date”)
		

		
			SCHEDULE 1
to the Compliance Certificate
($ in 000’s)
		

			
					
						I.Section 7.13(a) –Liquidity Ratio

					
					
						 

				
	
					
						A.Liquidity

					
					
						 

				
	
					
						1.unrestricted cash and Cash Equivalents

					
					
						$

				
	
					
						2. plus marketable securities

					
					
						$

				
	
					
						3.Total Liquidity (Line I.A.1. plus I.A.2):

					
					
						$

				
	
					
						B.Certain Liabilities

					
					
						 

				
	
					
						1.customer deposits (consolidated basis):

					
					
						$

				
	
					
						2.plus current portion of contingent, Acquisition-related obligations and liabilities (including Earn Out Obligations)

					
					
						 

					
						$

					
						 

				
	
					
						3.Total Certain Liabilities (Line I.B.1. plus I.B.2):

					
					
						$

				
	
					
						C.Ratio (Line I.A.3 ÷ Line I.B.3):

					
					
						to 1.00

				
	
					
						Minimum permitted:

					
					
						1.00 to 1.00

				
	
					
						 

					
					
						 

				
	
					
						II.Section 7.13(b) – Consolidated Leverage Ratio

					
					
						 

				
	
					
						A.Indebtedness

					
					
						 

				
	
					
						1.Total Indebtedness

					
					
						$

				
	
					
						B.EBITDA (past 12 months)

					
					
						 

				
	
					
						1.Consolidated Net Income (Loss):

					
					
						$

				
	
					
						2.plus Consolidated Interest Expense:

					
					
						$

				
	
					
						3.plus income taxes:

					
					
						$

				
	
					
						4.plus depreciation and amortization:

					
					
						$

				
	
					
						5.plus non-cash expenses:

					
					
						$

				
	
					
						6.Total EBITDA (sum of II.A1 through II.A.5):

					
					
						$

				

		 

		

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						C.Ratio (Line II.A.1 ÷ Line II.B.6):

					
					
						to 1.00

				
	
					
						Maximum permitted:

					
					
						3.00 to 1.00

				
	
					
						III.Section 7.13(c) – Debt Service Coverage Ratio

					
					
						 

				
	
					
						A.EBITDA (past 12 months)

					
					
						 

				
	
					
						1.Consolidated Net Income (Loss):

					
					
						$

				
	
					
						2.plus Consolidated Interest Expense:

					
					
						$

				
	
					
						3.plus income taxes:

					
					
						$

				
	
					
						4.plus depreciation and amortization:

					
					
						$

				
	
					
						5.plus non-cash expenses:

					
					
						$

				
	
					
						6.plus/minus EBITDA from Permitted Acquisitions (if any):

					
					
						$

				
	
					
						7.Total EBITDA (sum of III.A1 through III.A.5 minus III.A.6 plus/minus III.A.7.):

					
					
						$

				
	
					
						8. plus, operating lease payments

					
					
						$

				
	
					
						9. minus, Distributions

					
					
						$

				
	
					
						10. minus, payments made re Acquisition-related liabilities and Earn Out Obligations

					
					
						$

				
	
					
						11. Adjusted EBITDA
(III.A.7 plus III.A.8 minus III.A.9 minus III.A.10)

					
					
						$

				
	
					
						B.Debt Service

					
					
						 

				
	
					
						1.25% of outstanding Loans (please explain on attachment):

					
					
						$

				
	
					
						2.plus, Consolidated Interest Expense (past 12 months):

					
					
						$

				
	
					
						3.plus, projected operating lease payments for next 12 months:

					
					
						$

				
	
					
						4.plus, Consolidated Scheduled Funded Debt Payments for next 12 months:

					
					
						$

				
	
					
						5. Total Debt Service (sum of III.B.1 through III.B.4)

					
					
						$

				
	
					
						 

					
					
						 

				

		 

		

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						C.Ratio (Line III.A.12 ÷ Line III.B.5):

					
					
						to 1.00

				
	
					
						Minimum permitted:

					
					
						1.25 to 1.00

					
						1.50 to 1.00 
(after 9/30/14)

				
	
					
						 

					
					
						 

				
	
					
						IV.Section 7.13(d) – Consolidated Net Worth

					
					
						 

				
	
					
						A.Consolidated Net Worth

					
					
						$

				
	
					
						B. Minimum Required:

					
					
						 

				
	
					
						1.$200,000:

					$
200,000 
				
	
					
						2.plus, 75% of Consolidated Net Income (Loss) (but not less than $0):

					
					
						$

				
	
					
						3.plus,100% of Net Cash Proceeds from Equity Issuances after First Amendment Closing Date:

					
					
						$

				
	
					
						Minimum Required (sum of IV.B.1 + IV.B.2 + IV.B.3)

					
					
						$

				

		

		

		 

		

			6

		

		

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		For the Quarter/Year ended ___________________(“Statement Date”)
		

		
			ANNEX I
To Compliance Certificate
		

		
			Permitted Acquisitions
		

		
			[Please describe, if any]
		

		
			 
		

		
			 
		

		
			 
		

		 

		

			7

		

		

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