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 LOAN AND SECURITY AGREEMENT

CORILLIAN CORPORATION  

 
  
 

    TABLE OF CONTENTS    
  

	 
	 	 
	 	 
	 	Page

	1	 	ACCOUNTING AND OTHER TERMS	 	1
	2	 	LOAN AND TERMS OF PAYMENT	 	1
	 	 	2.1	 	Credit Extensions	 	1
	 	 	2.2	 	Overadvance	 	2
	 	 	2.3	 	Interest Rate, Payments	 	2
	 	 	2.4	 	Fees	 	3
	3	 	CONDITIONS OF LOANS	 	3
	 	 	3.1	 	Conditions Precedent to Initial Credit Extension	 	3
	 	 	3.2	 	Conditions Precedent to all Credit Extensions	 	3
	4	 	CREATION OF SECURITY INTEREST	 	3
	 	 	4.1	 	Grant of Security Interest	 	3
	5	 	REPRESENTATIONS AND WARRANTIES	 	4
	 	 	5.1	 	Due Organization and Authorization	 	4
	 	 	5.2	 	Collateral and Other Assets	 	4
	 	 	5.3	 	Litigation	 	4
	 	 	5.4	 	No Material Adverse Change in Financial Statements	 	4
	 	 	5.5	 	Solvency	 	4
	 	 	5.6	 	Regulatory Compliance	 	5
	 	 	5.7	 	Subsidiaries	 	5
	 	 	5.8	 	Full Disclosure	 	5
	6	 	AFFIRMATIVE COVENANTS	 	5
	 	 	6.1	 	Government Compliance	 	5
	 	 	6.2	 	Financial Statements, Reports, Certificates	 	5
	 	 	6.3	 	Inventory; Returns	 	6
	 	 	6.4	 	Taxes	 	6
	 	 	6.5	 	Insurance	 	6
	 	 	6.6	 	Deposit/Investment Account	 	6
	 	 	6.7	 	Financial Covenants	 	6
	 	 	6.8	 	Further Assurances	 	7
	7	 	NEGATIVE COVENANTS	 	7
	 	 	7.1	 	Dispositions	 	7
	 	 	7.2	 	Changes in Business, Ownership, Management or Business Locations	 	7
	 	 	7.3	 	Mergers or Acquisitions	 	7
	 	 	7.4	 	Indebtedness	 	7
	 	 	7.5	 	Encumbrance	 	7
	 	 	7.6	 	Distributions; Investments	 	8
	 	 	7.7	 	Transactions with Affiliates	 	8
	 	 	7.8	 	Compliance	 	8
	8	 	EVENTS OF DEFAULT	 	8
	 	 	8.1	 	Payment Default	 	8
	 	 	8.2	 	Covenant Default	 	8
	 	 	8.3	 	Material Adverse Change	 	8
	 	 	8.4	 	Attachment	 	8
	 	 	8.5	 	Insolvency	 	9
	 	 	8.6	 	Other Agreements	 	9
	 	 	8.7	 	Judgments	 	9
	 	 	8.8	 	Misrepresentations	 	9

i

 

	9	 	BANK'S RIGHTS AND REMEDIES	 	9
	 	 	9.1	 	Rights and Remedies	 	9
	 	 	9.2	 	Power of Attorney	 	10
	 	 	9.3	 	Accounts Collection	 	10
	 	 	9.4	 	Bank Expenses	 	10
	 	 	9.5	 	Bank's Liability for Collateral	 	11
	 	 	9.6	 	Remedies Cumulative	 	11
	 	 	9.7	 	Demand Waiver	 	11
	10	 	NOTICES	 	11
	11	 	CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER	 	11
	12	 	GENERAL PROVISIONS	 	11
	 	 	12.1	 	Successors and Assigns	 	11
	 	 	12.2	 	Indemnification	 	12
	 	 	12.3	 	Time of Essence	 	12
	 	 	12.4	 	Severability of Provision	 	12
	 	 	12.5	 	Amendments in Writing, Integration	 	12
	 	 	12.6	 	Counterparts	 	12
	 	 	12.7	 	Survival	 	12
	 	 	12.8	 	Confidentiality	 	12
	 	 	12.9	 	Attorneys' Fees, Costs and Expenses	 	13
	13	 	DEFINITIONS	 	13
	 	 	13.1	 	Definitions	 	13

ii

  

    This LOAN AND SECURITY AGREEMENT dated November 9, 2000, between SILICON VALLEY BANK ("Bank"), whose address is 3003 Tasman
Drive, Santa Clara, California 95054 with a loan production office located at 11000 S. W. Stratus, Suite 170, Beaverton, OR 97008-7113 and CORILLIAN CORPORATION ("Borrower"), whose address
is 3855 S.W. 153rd Drive, Beaverton, OR 97006, provides the terms on which Bank will lend to Borrower and Borrower will repay Bank. The parties agree as follows: 

 
 

1  ACCOUNTING AND OTHER TERMS    
  

    Accounting terms not defined in this Agreement will be construed following GAAP. Calculations and determinations must be made following GAAP. The term
"financial statements" includes the notes and schedules. The terms "including" and "includes" always mean "including (or includes) without limitation," in this or any Loan Document. This Agreement
shall be construed to impart upon Bank a duty to act reasonably at all times. 

 
 

2  LOAN AND TERMS OF PAYMENT    
  

2.1 Credit Extensions.  

    Borrower will pay Bank the unpaid principal amount of all Credit Extensions and interest on the unpaid principal amount of the Credit Extensions. 

2.1.1 Revolving Advances.  

    (a) Bank
will make Advances not exceeding (i) the Committed Revolving Line, minus (ii) the principal balance outstanding under the Committed Equipment
Line. However, if Borrower's Adjusted Quick Ratio falls below 3.0:1.0, Advances under the Committed Revolving Line shall not exceed (i) the lesser of the Committed Revolving Line or the
Borrowing Base, minus (ii) the principal balance outstanding under the Committed Equipment Line. Amounts borrowed under this Section may be repaid and reborrowed during the term of this
Agreement. 

    (b) To
obtain an Advance, Borrower must notify Bank by facsimile or telephone by 3:00 p.m. Pacific time on the Business Day the Advance is to be made. Borrower
must promptly confirm the notification by delivering to Bank the Payment/Advance Form attached as Exhibit B. Bank will credit Advances to Borrower's deposit account. Bank may make Advances
under this Agreement based on instructions from a Responsible Officer or his or her designee or without instructions if the Advances are necessary to meet Obligations which have become due. Bank may
rely on any telephone notice given by a person whom Bank believes is a Responsible Officer or designee. Borrower will indemnify Bank for any loss Bank suffers due to such reliance. 

    (c) The
Committed Revolving Line terminates on the Revolving Maturity Date, when all Advances are immediately payable. 

2.1.2 Equipment Advances.  

    (a) Through
November 9, 2001 (the "Equipment Availability End Date"), Bank will make advances ("Equipment Advance" and, collectively, "Equipment Advances") not
exceeding (i) the Committed Equipment Line, minus (ii) the principal balance outstanding under the Committed Revolving Line. The Equipment Advances may be used to finance Eligible
Equipment purchased within 120 days of the Equipment Advance and may not exceed 100% of the equipment invoice excluding taxes, shipping, warranty charges, freight discounts and installation
expense. The Equipment Advances may also be used to finance Eligible Equipment purchased more than 120 days prior to the date of the Equipment Advance; however, such Equipment Advances may not
exceed 75% of the net book value of the applicable equipment. Other Equipment may constitute up to 25% of each Equipment Advance for equipment purchased within 120 days of the date of the
Equipment Advance. Equipment Advances shall be in the minimum amount of $250,000. 

PAGE 1 - LOAN AND SECURITY AGREEMENT

 

    (b) Interest accrues from the date of each Equipment Advance at the rate in Section 2.3 (a) and is payable monthly until the Equipment Availability End
Date occurs. Equipment Advances shall be repaid as follows: 

    (i)  Prime
Rate Option: If Borrower selects the Prime Rate pricing option, Borrower shall repay the amount of principal drawn in forty-seven (47) equal monthly
payments of principal plus accrued interest and one final payment of all outstanding principal and accrued interest. 

    (ii) Fixed
Rate Option: If Borrower selects the fixed rate pricing option, Borrower shall repay the amount of principal drawn in forty-seven (47) equal monthly
payments including both principal and interest, and one final payment of all outstanding principal and accrued interest. 

    (c) To
obtain an Equipment Advance, Borrower must notify Bank (the notice is irrevocable) by facsimile no later than 3:00 p.m. Pacific time 1 Business Day before
the day on which the Equipment Advance is to be made. The notice in the form of Exhibit B (Payment/Advance Form) must be signed by a Responsible Officer or designee and include a copy of the
invoice for the Equipment being financed. 

    (d) Bank's
obligation to lend the undisbursed portion of the Committed Equipment Line will terminate if, in Bank's sole discretion, there has been a material adverse
change in the general affairs, management, results of operation, condition (financial or otherwise) or the prospects of Borrower, whether or not arising from transactions in the ordinary course of
business, or there has been any material adverse deviation by Borrower from the most recent business plan of Borrower presented to and accepted by Bank prior to the execution of this Agreement. 

2.2 Overadvance.  

    If Borrower's Obligations under Sections 2.1.1 and 2.1.2 together exceed $5,000,000, or the amount available pursuant to Sections 2.1.1 and 2.1.2, Borrower
must immediately pay in cash to Bank the excess. 

2.3 Interest Rate, Payments.  

    (a) Interest
Rate. Advances under the Committed Revolving Line accrue interest on the outstanding principal balance at a per annum rate of 0.50% above the Prime Rate.
Equipment Advances under the Committed Equipment Line accrue interest at a per annum rate of (i) 1.00% above the Prime Rate, or (ii) 3.50% above the applicable rate for U.S. Treasury
securities of equal maturity. The Borrower shall select the Prime Rate option or fixed rate option at the same time notice is provided pursuant to Section 2.1.4(c). After an Event of Default,
Obligations accrue interest at 5.00% above the rate effective immediately before the Event of Default. The interest rate increases or decreases when the Prime Rate changes. Interest is computed on a
360 day year for the actual number of days elapsed. 

    (b) Payments.
Interest due on the Committed Revolving Line is payable on the first of each month. Principal and interest due on the Equipment Advances are payable on
the first of each month. Payments received after 12:00 noon Pacific time are considered received at the opening of business on the next Business Day. When a payment is due on a day that is not a
Business Day, the payment is due the next Business Day and additional fees or interest accrue. 

    (c) Permitted
Prepayment of Loans. Borrower shall have the option to prepay the Equipment Advances advanced by Bank under this Agreement,  provided Borrower (i) provides written notice to Bank of its election to
prepay the Equipment Advances at least fifteen (15) days prior to
such prepayment, and (ii) pays, on the date of the prepayment (A) all accrued unpaid interest with respect to the Equipment Advances; (B) a prepayment fee equivalent to 3.0% of
the amount prepaid in the first twelve (12) months; 2.0% of the amount prepaid in the second twelve (12) months; and 1.0% of the amount prepaid in the third twelve (12) months;
and (C) all other sums, if any, that shall have become due and payable hereunder with respect to this Agreement. 

PAGE 2 - LOAN AND SECURITY AGREEMENT

 

2.4 Fees.  

    Borrower will pay: 

    (a) Loan
Fee. A fully earned, non-refundable loan fee of 0.50% of the Committed Revolving Line ($25,000). 

    (b) Bank
Expenses. All Bank Expenses (including reasonable attorneys' fees and reasonable expenses) incurred through and after the date of this Agreement, are payable
when due. Attorneys' fees associated with the preparation of this Agreement shall be limited to $3,000; however, Borrower acknowledges that any future attorneys' fees incurred by Bank in connection
with the
administration or modification of this Agreement shall not be included in this amount. In the event of any action or proceeding arising out of the Loan Documents, attorneys' fees shall be allocated in
accordance with Section 12.9 below. 

 
 

3  CONDITIONS OF LOANS    
  

3.1 Conditions Precedent to Initial Credit Extension.  

    Bank's obligation to make the initial Credit Extension is subject to the condition precedent that it receive the agreements, documents and fees it requires. 

3.2 Conditions Precedent to all Credit Extensions.  

    Bank's obligations to make each Credit Extension, including the initial Credit Extension, is subject to the following: 

    (a) timely
receipt of any Payment/Advance Form; and 

    (b) the
representations and warranties in Section 5 must be materially true on the date of the Payment/Advance Form and on the effective date of each Credit
Extension and no Event of Default may have occurred and be continuing, or result from the Credit Extension. Each Credit Extension is Borrower's representation and warranty on that date that the
representations and warranties of Section 5 remain true. 

 
 

4  CREATION OF SECURITY INTEREST    
  

4.1 Grant of Security Interest.  

    Borrower grants Bank a continuing security interest in all presently existing and later acquired Collateral to secure all Obligations and performance of each
of Borrower's duties under the Loan Documents. Except for Permitted Liens, any security interest will be a first priority security interest in the Collateral. Bank may place a "hold" on any deposit
account pledged as Collateral. If this Agreement is terminated, Bank's lien and security interest in the Collateral will continue until Borrower fully satisfies its Obligations. Borrower does not
grant Bank a security interest in, or lien on, its Intellectual Property. Borrower agrees not to grant a security interest in its Intellectual Property to any Person, or to sell, transfer, assign,
mortgage, pledge, lease or encumber such Intellectual Property, without the prior written consent of Bank so long as this Agreement, as amended or modified, remains in effect. 

PAGE 3 - LOAN AND SECURITY AGREEMENT

 

 
 

5  REPRESENTATIONS AND WARRANTIES    
  

    Borrower represents and warrants as follows: 

5.1 Due Organization and Authorization.  

    Borrower and each Subsidiary is duly existing and in good standing in its state of formation and qualified and licensed to do business in, and in good standing
in, any state in which the conduct of its business or its ownership of property requires that it be qualified, except where the failure to do so could not reasonably be expected to cause a Material
Adverse Change. 

    The
execution, delivery and performance of the Loan Documents have been duly authorized, and do not conflict with Borrower's formation documents, nor constitute an event of default
under any material agreement by which Borrower is bound. Borrower is not in default under any agreement to which or by which it is bound in which the default could reasonably be expected to cause a
Material Adverse Change. 

5.2 Collateral and Other Assets.  

    Borrower has good title to the Collateral, free of Liens except Permitted Liens. The Accounts are bona fide, existing obligations, and the service or property
has been performed or delivered to the account debtor or its agent for immediate shipment to and unconditional acceptance by the account debtor. Borrower has no notice of any actual or imminent
Insolvency Proceeding of any account debtor whose accounts are an Eligible Account in any Borrowing Base Certificate. All Inventory is in all material respects of good and marketable quality, free
from material defects. Borrower is the sole owner of the Intellectual Property, except for non-exclusive licenses granted to its customers in the ordinary course of business. Each Patent
is valid and enforceable and no part of the Intellectual Property has been judged invalid or unenforceable, in whole or in part, and no claim has been made that any part of the Intellectual Property
violates the rights of any third party, except to the extent such claim could not reasonably be expected to cause a Material Adverse Change. 

5.3 Litigation.  

    Except as shown in the Schedule, there are no actions or proceedings pending or, to the knowledge of Borrower's Responsible Officers and legal counsel,
threatened by or against Borrower or any Subsidiary in which a likely adverse decision could reasonably be expected to cause a Material Adverse Change. 

5.4 No Material Adverse Change in Financial Statements.  

    All consolidated financial statements for Borrower, and any Subsidiary, delivered to Bank fairly present in all material respects Borrower's consolidated
financial condition and Borrower's consolidated results of operations. There has not been any material deterioration in Borrower's consolidated financial condition since the date of the most recent
financial statements submitted to Bank. 

5.5 Solvency.  

    The fair salable value of Borrower's assets (including goodwill minus disposition costs) exceeds the fair value of its liabilities; the Borrower is not left
with unreasonably small capital after the transactions in this Agreement; and Borrower is able to pay its debts (including trade debts) as they mature. 

PAGE 4 - LOAN AND SECURITY AGREEMENT

 

5.6 Regulatory Compliance.  

    Borrower is not an "investment company" or a company "controlled" by an "investment company" under the Investment Company Act. Borrower is not engaged as one
of its important activities in extending credit for margin stock (under Regulations T and U of the Federal Reserve Board of Governors). Borrower has complied in all material respects with the Federal
Fair Labor Standards Act. Borrower has not violated any laws, ordinances or rules, the violation of which could reasonably be expected to cause a Material Adverse Change. None of Borrower's or any
Subsidiary's properties or assets has been used by Borrower or any Subsidiary or, to the best of Borrower's knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting
any hazardous substance other than legally. Borrower and each Subsidiary has timely filed all required tax returns and paid, or made adequate provision to pay, all material taxes, except those being
contested in good faith with adequate reserves under GAAP. Borrower and each Subsidiary has obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all
notices to, all government authorities that are necessary to continue its business as currently conducted, except where the failure to do so could not reasonably be expected to cause a Material
Adverse Change. 

5.7 Subsidiaries.  

    Except as shown in the Schedule, Borrower does not own any stock, partnership interest or other equity securities except for Permitted Investments. 

5.8 Full Disclosure.  

    No written representation, warranty or other statement of Borrower in any certificate or written statement given to Bank (taken together with all such written
certificates and written statements to Bank) contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained in the certificates or
statements not misleading. It being recognized by Bank that the projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are not viewed as facts and that
actual results during the period or periods covered by such projections and forecasts may differ from the projected and forecasted results. 

 
 

6  AFFIRMATIVE COVENANTS    
  

    Borrower will do all of the following: 

6.1 Government Compliance.  

    Borrower will maintain its and all Subsidiaries' legal existence and good standing in its jurisdiction of formation and maintain qualification in each
jurisdiction in which the failure to so qualify would reasonably be expected to cause a material adverse effect on Borrower's business or operations. Borrower will comply, and have each Subsidiary
comply, with all laws, ordinances and regulations to which it is subject, noncompliance with which could have a material adverse effect on Borrower's business or operations or would reasonably be
expected to cause a Material Adverse Change. 

6.2 Financial Statements, Reports, Certificates.  

    (a) Borrower
will deliver to Bank: (i) as soon as available, but no later than five (5) days after filing with the Securities and Exchange Commission,
Borrower's 10-Q quarterly report and a Compliance Certificate in the form of the attached Exhibit C; (ii) as soon as available, but no later than five (5) days after
filing with the Securities and Exchange Commission Borrower's annual 10-K report and a Compliance Certificate in the form of the attached Exhibit C for the quarterly period then
ending; (iii) as soon as available, but no later than 120 days after the last day of Borrower's fiscal year, audited consolidated financial statements prepared under GAAP, consistently
applied, 

PAGE 5 - LOAN AND SECURITY AGREEMENT

 

together with an unqualified opinion on the financial statements from an independent certified public accounting firm reasonably acceptable to Bank; (iv) a prompt report of any legal actions
pending or threatened against Borrower or any Subsidiary that could result in damages or costs to Borrower or any Subsidiary of $100,000 or more; and (v) budgets, sales projections, operating
plans or other financial information Bank reasonably requests. 

    (b) If
the Borrowing Base applies pursuant to Section 2.1.1, Borrower will deliver to Bank within 20 days of the end of each month (i) a Borrowing
Base Certificate in the form of Exhibit D attached, (ii) an accounts receivable aging, (iii) an accounts payable aging, and (iv) within 20 days after the end of each
month, Borrower shall deliver to Bank a deferred revenue listing. 

    (c) If
more than $500,000 is outstanding under the Committed Revolving Line at any one time, Bank shall have the right to audit Borrower's Collateral annually at
Borrower's expense. 

    (d) Within
five (5) days of filing with the Securities and Exchange Commission, Borrower shall deliver copies of any filings with the Securities and Exchange
Commission not listed in 6.2(a) above. 

6.3 Inventory; Returns.  

    Borrower will keep all Inventory in good and marketable condition, free from material defects. Returns and allowances between Borrower and its account debtors
will follow Borrower's customary practices as they exist at execution of this Agreement. Borrower must promptly notify Bank of all returns, recoveries, disputes and claims, that involve more than
$100,000. 

6.4 Taxes.  

    Borrower will make, and cause each Subsidiary to make, timely payment of all material federal, state, and local taxes or assessments and will deliver to Bank,
on demand, appropriate certificates attesting to the payment. 

6.5 Insurance.  

    Borrower will keep its business and the Collateral insured for risks and in amounts, as Bank may reasonably request. Insurance policies will be in a form, with
companies, and in amounts that are satisfactory to Bank in Bank's reasonable discretion. All property policies will have a lender's loss payable endorsement showing Bank as an additional loss payee
and all liability policies will show the Bank as an additional insured and provide that the insurer must give Bank at least 20 days notice before canceling its policy. At Bank's request,
Borrower will deliver certified copies of policies and evidence of all premium payments. Proceeds payable under any policy will, at Bank's option, be payable to Bank on account of the Obligations. 

6.6 Deposit/Investment Account.  

    Borrower will exercise their best efforts to maintain a deposit or investment account with Bank in a minimum amount of $1,000,000. Failure to maintain such an
account shall not constitute an Event of Default. 

6.7 Financial Covenants.  

    Borrower will maintain as of the last day of each quarter: 

    (i)  Adjusted
Quick Ratio. A ratio of (i) Quick Assets to (ii) Current Liabilities, less deferred revenue plus the long-term portion of all
outstanding Equipment Advances, of at least 2.0:1.0. Once Borrower has maintained a Debt Service Coverage Ratio of 2.0:1.0 for two consecutive quarters, the Adjusted Quick Ratio will be amended to
eliminate the long-term portion of all 

PAGE 6 - LOAN AND SECURITY AGREEMENT

 

Equipment Advances. Concurrently, a Debt Service Coverage Ratio covenant of 2.0:1.0 will be implemented. 

    (ii) Tangible
Net Worth. A minimum Tangible Net Worth of not less than $30,000,000. 

6.8 Further Assurances.  

    Borrower will execute any further instruments and take further action as Bank reasonably requests to perfect or continue Bank's security interest in the
Collateral or to effect the purposes of this Agreement. 

 
 

7  NEGATIVE COVENANTS    
  

    Borrower will not do any of the following without Bank's prior written consent, which will not be unreasonably withheld: 

7.1 Dispositions.  

    Convey, sell, lease, transfer or otherwise dispose of (collectively "Transfer"), or permit any of its Subsidiaries to Transfer, all or any part of its business
or property, other than Transfers (i) of Inventory in the ordinary course of business; (ii) of non-exclusive licenses and similar arrangements for the use of the property of
Borrower or its Subsidiaries in the ordinary course of business; or (iii) of worn-out or obsolete Equipment. 

7.2 Changes in Business, Ownership, Management or Business Locations.  

    Engage in or permit any of its Subsidiaries to engage in any business other than the businesses currently engaged in by Borrower or reasonably related thereto
or have a material change in its ownership or management (other than the sale of Borrower's equity securities in a public offering or to venture capital investors approved by Bank) of greater than
25%. Borrower will not, without at least 30 days prior written notice, relocate its chief executive office or add any new offices or business locations. 

7.3 Mergers or Acquisitions.  

    Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to
acquire, all or substantially all of the capital stock or property of another Person, except where (i) no Event of Default has occurred and is continuing or would result from such action during
the term of this Agreement and (ii) such transaction would not result in a decrease of more than 25% of Tangible Net Worth. A Subsidiary may merge or consolidate into another Subsidiary or into
Borrower. 

7.4 Indebtedness.  

    Create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness. 

7.5 Encumbrance.  

    Create, incur, or allow any Lien on any of its property, or assign or convey any right to receive income, including the sale of any Accounts, or permit any of
its Subsidiaries to do so, except for Permitted Liens, or permit any Collateral not to be subject to the first priority security interest granted here, subject to Permitted Liens. 

PAGE 7 - LOAN AND SECURITY AGREEMENT

 

7.6 Distributions; Investments.  

    Directly or indirectly acquire or own any Person, or make any Investment in any Person, other than Permitted Investments, or permit any of its Subsidiaries to
do so. Pay any dividends or make any distribution or payment or redeem, retire or purchase any capital stock. 

7.7 Transactions with Affiliates.  

    Directly or indirectly enter into or permit any material transaction with any Affiliate except transactions that are in the ordinary course of Borrower's
business, on terms less favorable to Borrower than would be obtained in an arm's length transaction with a non-affiliated Person. 

7.8 Compliance.  

    Become an "investment company" or a company controlled by an "investment company," under the Investment Company Act of 1940 or undertake as one of its
important activities extending credit to purchase or carry margin stock, or use the proceeds of any Credit Extension for that purpose; fail to meet the minimum funding requirements of ERISA, permit a
Reportable Event or Prohibited Transaction, as defined in ERISA, to occur; fail to comply with the Federal Fair Labor Standards Act or violate any other law or regulation, if the violation could
reasonably be expected to have a material adverse effect on Borrower's business or operations or would reasonably be expected to cause a Material Adverse Change, or permit any of its Subsidiaries to
do so. 

 
 

8  EVENTS OF DEFAULT    
  

    Any one of the following is an Event of Default: 

8.1 Payment Default.  

    If Borrower fails to pay any of the Obligations within 3 days after their due date. During the additional period the failure to cure the default is not
an Event of Default (but no Credit Extension will be made during the cure period); 

8.2 Covenant Default.  

    If Borrower violates any covenant in Section 7 or does not perform or observe any other material term, condition or covenant in this Agreement, any Loan
Documents, or in any agreement between Borrower and Bank and as to any default under a term, condition or covenant that can be cured, has not cured the default within 10 days after it occurs,
or if the default cannot be cured within 10 days or cannot be cured after Borrower's attempts within 10 day period, and the default may be cured within a reasonable time, then Borrower
has an additional period (of not more than 30 days) to attempt to cure the default. During the additional time, the failure to cure the default is not an Event of Default (but no Credit
Extensions will be made during the cure period); 

8.3 Material Adverse Change.  

    If there (i) occurs a material impairment in the perfection or priority of the Bank's security interest in the Collateral or in the value of such
Collateral which is not covered by adequate insurance or (ii) is a material impairment of the prospect of repayment of any portion of the Obligations. 

8.4 Attachment.  

    If any material portion of Borrower's assets is attached, seized, levied on, or comes into possession of a trustee or receiver and the attachment, seizure or
levy is not removed in 10 days, or if Borrower is enjoined, restrained, or prevented by court order from conducting a material part of its business or if a judgment or other claim becomes a
Lien on a material portion of Borrower's 

PAGE 8 - LOAN AND SECURITY AGREEMENT

 

assets, or if a notice of lien, levy, or assessment is filed against any of Borrower's assets by any government agency and not paid within 10 days after Borrower receives notice. These are not
Events of Default if stayed or if a bond is posted pending contest by Borrower (but no Credit Extensions will be made during the cure period); 

8.5 Insolvency.  

    If Borrower becomes insolvent or if Borrower begins an Insolvency Proceeding or an Insolvency Proceeding is begun against Borrower and not dismissed or stayed
within 30 days (but no Credit Extensions will be made before any Insolvency Proceeding is dismissed); 

8.6 Other Agreements.  

    If there is a default in any agreement between Borrower and a third party that gives the third party the right to accelerate any Indebtedness exceeding
$100,000 or that could cause a Material Adverse Change; 

8.7 Judgments.  

    If a money judgment(s) in the aggregate of at least $50,000 is rendered against Borrower and is unsatisfied and unstayed for 10 days (but no Credit
Extensions will be made before the judgment is stayed or satisfied); or 

8.8 Misrepresentations.  

    If Borrower or any Person acting for Borrower makes any material misrepresentation or material misstatement now or later in any warranty or representation in
this Agreement or in any writing delivered to Bank or to induce Bank to enter this Agreement or any Loan Document. 

 
 

9  BANK'S RIGHTS AND REMEDIES    
  

9.1 Rights and Remedies.  

    When an Event of Default occurs and continues Bank may, without notice or demand, do any or all of the following: 

    (a) Declare
all Obligations immediately due and payable (but if an Event of Default described in Section 8.5 occurs all Obligations are immediately due and
payable without any action by Bank); 

    (b) Stop
advancing money or extending credit for Borrower's benefit under this Agreement or under any other agreement between Borrower and Bank; 

    (c) Settle
or adjust disputes and claims directly with account debtors for amounts, on terms and in any order that Bank considers advisable; 

    (d) Make
any payments and do any acts it considers necessary or reasonable to protect its security interest in the Collateral. Borrower will assemble the Collateral if
Bank requires and make it available as Bank designates. Bank may enter premises where the Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase, contest,
or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Borrower grants Bank a license to enter and occupy any of its premises, without
charge, to exercise any of Bank's rights or remedies; 

    (e) Apply
to the Obligations any (i) balances and deposits of Borrower it holds, or (ii) any amount held by Bank owing to or for the credit or the account
of Borrower; 

    (f)  Ship,
reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell the Collateral. Bank is granted a
non-exclusive, royalty-free license or other right to use, without charge, Borrower's labels, Patents, Copyrights, Mask Works, rights of use of any name, 

PAGE 9 - LOAN AND SECURITY AGREEMENT

 

trade secrets, trade names, Trademarks, service marks, and advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling
any Collateral and, in connection with Bank's exercise of its rights under this Section, Borrower's rights under all licenses and all franchise agreements inure to Bank's benefit; and 

    (g) Dispose
of the Collateral according to the Code. 

9.2 Power of Attorney.  

    Effective only when an Event of Default occurs and continues, Borrower irrevocably appoints Bank as its lawful attorney to: (i) endorse Borrower's name
on any checks or other forms of payment or security; (ii) sign Borrower's name on any invoice or bill of lading for any Account or drafts against account debtors, (iii) make, settle, and
adjust all claims under Borrower's insurance policies; (iv) settle and adjust disputes and claims about the Accounts directly with account debtors, for amounts and on terms Bank determines
reasonable; and (v) transfer the Collateral into the name of Bank or a third party as the Code permits. Bank may exercise the power of attorney to sign Borrower's name on any documents
necessary to perfect or continue the perfection of any security interest regardless of whether an Event of Default has occurred. Bank's appointment as Borrower's attorney in fact, and all of Bank's
rights and powers, coupled with an interest, are irrevocable until all Obligations have been fully repaid and performed and Bank's obligation to provide Credit Extensions terminates. 

9.3 Accounts Collection.  

    When an Event of Default occurs and continues, Bank may notify any Person owing Borrower money of Bank's security interest in the funds and verify the amount
of the Account. Borrower must collect all payments in trust for Bank and, if requested by Bank, immediately deliver the payments to Bank in the form received from the account debtor, with proper
endorsements for deposit. 

9.4 Bank Expenses.  

    If Borrower fails to pay any amount or furnish any required proof of payment to third persons, Bank may make all or part of the payment or obtain insurance
policies required in Section 6.5, and take any action under the policies Bank deems prudent. Any amounts paid by Bank are Bank Expenses and immediately due and payable, bearing interest at the
then applicable rate and secured by the Collateral. No payments by Bank are deemed an agreement to make similar payments in the future
or Bank's waiver of any Event of Default. Pursuant to ORS 746.201, following is a statutory notice regarding insurance coverage: 

WARNING

Unless
you provide us with evidence of the insurance coverage as required by our contract or loan agreement, we may purchase insurance at your expense to protect our interest. This insurance may, but
need not, also protect your interest. If the collateral becomes damaged, the coverage we purchase may not pay any claim you make or any claim made against you. You may later cancel this coverage by
providing evidence that you have obtained property coverage elsewhere. 

    
You are responsible for the cost of any insurance purchased by us. The cost of this insurance may be added to your contract or loan balance. If the cost is added to your contract or loan balance, the
interest rate on the underlying contract or loan will apply to this added amount. The effective date of coverage may be the date your prior coverage lapsed or the date you failed to provide proof of
coverage. 

    
The coverage we purchase may be considerably more expensive than insurance you can obtain on your own and may not satisfy any need for property damage coverage or any mandatory liability insurance
requirements imposed by applicable law. 

PAGE 10 - LOAN AND SECURITY AGREEMENT

  

9.5 Bank's Liability for Collateral.  

    If Bank complies with reasonable banking practices and Section 9-207 of the Code, it is not liable for: (a) the safekeeping of the
Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other
person. Borrower bears all risk of loss, damage or destruction of the Collateral. 

9.6 Remedies Cumulative.  

    Bank's rights and remedies under this Agreement, the Loan Documents, and all other agreements are cumulative. Bank has all rights and remedies provided under
the Code, by law, or in equity. Bank's exercise of one right or remedy is not an election, and Bank's waiver of any Event of Default is not a continuing waiver. Bank's delay is not a waiver, election,
or acquiescence. No waiver is effective unless signed by Bank and then is only effective for the specific instance and purpose for which it was given. 

9.7 Demand Waiver.  

    Borrower waives demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise,
settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees held by Bank on which Borrower is liable. 

 
 

10  NOTICES    
  

    All notices or demands by any party about this Agreement or any other related agreement must be in writing and be personally delivered or sent by an overnight
delivery service, by certified mail, postage prepaid, return receipt requested, or by telefacsimile to the addresses set forth at the
beginning of this Agreement. A party may change its notice address by giving the other party written notice. 

 
 

11  CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER    
  

    Oregon law governs the Loan Documents without regard to principles of conflicts of law. Borrower and Bank each submit to the exclusive jurisdiction of the
State and Federal courts in Multnomah County, Oregon. 

    BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY CONTEMPLATED
TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH
ITS COUNSEL. 

    UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND COMMITMENTS MADE BY THE BANK AFTER OCTOBER 3, 1989 CONCERNING LOANS AND OTHER CREDIT EXTENSIONS WHICH ARE NOT
FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES OR SECURED SOLELY BY THE BORROWER'S RESIDENCE MUST BE IN WRITING, EXPRESS CONSIDERATION AND BE SIGNED BY US TO BE ENFORCEABLE. 

 
 

12  GENERAL PROVISIONS    
  

12.1 Successors and Assigns.  

    This Agreement binds and is for the benefit of the successors and permitted assigns of each party. Borrower may not assign this Agreement or any rights under
it without Bank's prior written consent which may be granted or withheld in Bank's discretion. Bank has the right, without the 

PAGE 11 - LOAN AND SECURITY AGREEMENT

 

consent of or notice to Borrower, to sell, transfer, negotiate, or grant participation in all or any part of, or any interest in, Bank's obligations, rights and benefits under this Agreement. 

12.2 Indemnification.  

    Borrower will indemnify, defend and hold harmless Bank and its officers, employees, and agents against: (a) all obligations, demands, claims, and
liabilities asserted by any other party in connection with the transactions contemplated by the Loan Documents; and (b) all losses or Bank Expenses incurred, or paid by Bank from, following, or
consequential to transactions between Bank and Borrower (including reasonable attorneys fees and expenses), except for losses caused by Bank's gross negligence or willful misconduct. 

12.3 Time of Essence.  

    Time is of the essence for the performance of all obligations in this Agreement. 

12.4 Severability of Provision.  

    Each provision of this Agreement is severable from every other provision in determining the enforceability of any provision. 

12.5 Amendments in Writing, Integration.  

    All amendments to this Agreement must be in writing and signed by Borrower and Bank. This Agreement represents the entire agreement about this subject matter,
and supersedes prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Agreement
merge into this Agreement and the Loan Documents. 

12.6 Counterparts.  

    This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, are
an original, and all taken together, constitute one Agreement. 

12.7 Survival.  

    All covenants, representations and warranties made in this Agreement continue in full force while any Obligations remain outstanding. The obligations of
Borrower in Section 12.2 to indemnify Bank will survive until all statutes of limitations for actions that may be brought against Bank have run. 

12.8 Confidentiality.  

    In handling any confidential information, Bank will exercise the same degree of care that it exercises for its own proprietary information, but disclosure of
information may be made (i) to Bank's subsidiaries or affiliates in connection with their business with Borrower, (ii) to prospective transferees or purchasers of any interest in the
loans, (iii) as required by law, regulation, subpoena, or other order, (iv) as required in connection with Bank's examination or audit and (v) as Bank considers appropriate
exercising remedies under this Agreement. Confidential information does not include information that either: (a) is in the public domain or in Bank's possession when disclosed to Bank, or
becomes part of the public domain after disclosure to Bank; or (b) is disclosed to Bank by a third party, if Bank does not know that the third party is prohibited from disclosing the
information. 

PAGE 12 - LOAN AND SECURITY AGREEMENT

 

12.9 Attorneys' Fees, Costs and Expenses.  

    In any action or proceeding between Borrower and Bank arising out of the Loan Documents, the prevailing party will be entitled to recover its reasonable
attorneys' fees and other reasonable costs and expenses incurred, in addition to any other relief to which it may be entitled. 

 
 

13  DEFINITIONS    
  

13.1 Definitions.  

    In this Agreement: 

    "Accounts" are all existing and later arising accounts, contract rights, and other obligations owed Borrower in connection with its
sale or lease of goods (including licensing software and other technology) or provision of services, all credit insurance, guaranties, other security and all merchandise returned or reclaimed by
Borrower and Borrower's Books relating to any of the foregoing. 

    "Advance" or "Advances" is a loan advance (or advances) under the Committed Revolving
Line. 

    "Affiliate" of a Person is a Person that owns or controls directly or indirectly the Person, any Person that controls or is controlled
by or is under common control with the Person, and each of that Person's senior executive officers, directors, partners and, for any Person that is a limited liability company, that Person's managers
and members. 

    "Bank Expenses" are all audit fees and expenses and reasonable costs and expenses (including reasonable attorneys' fees and expenses)
for preparing, negotiating, administering, defending and enforcing the Loan Documents (including appeals or Insolvency Proceedings). 

    "Borrowing Base" is 80% of Eligible Accounts as determined by Bank from Borrower's most recent Borrowing Base Certificate. 

    "Borrower's Books" are all Borrower's books and records including ledgers, records regarding Borrower's assets or liabilities, the
Collateral, business operations or financial condition and all computer programs or discs or any equipment containing the information. 

    "Business Day" is any day that is not a Saturday, Sunday or a day on which the Bank is closed. 

    "Closing Date" is the date of this Agreement. 

    "Code" is the Oregon Uniform Commercial Code. 

    "Collateral" is the property described on Exhibit A.

    "Committed Equipment Line" is an Equipment Advance of up to $5,000,000 (Equipment Advances reduce availability under the Committed
Revolving Line by the principal amount). 

    "Committed Revolving Line" is an Advance for working capital purposes of up to $5,000,000 (Advances reduce availability under the
Committed Equipment Line by the principal amount). 

    "Contingent Obligation" is, for any Person, any direct or indirect liability, contingent or not, of that Person for (i) any
indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed, endorsed, co-made, discounted or sold with recourse
by that Person, or for which that Person is directly or indirectly liable; (ii) any obligations for undrawn letters of credit for the account of that Person; and (iii) all obligations
from any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest
rates, currency exchange rates or commodity prices; but "Contingent Obligation" does not include endorsements in the ordinary course of business. The amount of a Contingent Obligation is the 

PAGE 13 - LOAN AND SECURITY AGREEMENT

 

stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably anticipated liability for it determined by the Person
in good faith; but the amount may not exceed the maximum of the obligations under the guarantee or other support arrangement. 

    "Copyrights" are all copyright rights, applications or registrations and like protections in each work or authorship or derivative
work, whether published or not (whether or not it is a trade secret) now or later existing, created, acquired or held. 

    "Credit Extension" is each Advance, Equipment Advance, or any other extension of credit by Bank for Borrower's benefit. 

    "Debt Service Coverage Ratio" means (i) quarterly earnings before interest, depreciation and amortization, divided by
(ii) 25% of the current maturities of long-term debt, plus interest for the quarter. 

    "Eligible Accounts" are Accounts in the ordinary course of Borrower's business that meet all Borrower's representations and warranties
in Section 5.2; but Bank may change eligibility standards by giving Borrower notice. Unless Bank agrees otherwise in writing, Eligible Accounts will not include: 

    (a) Accounts
that the account debtor has not paid within 90 days of invoice date; 

    (b) Accounts
for an account debtor, 50% or more of whose Accounts have not been paid within 90 days of invoice date; 

    (c) Credit
balances over 90 days from invoice date; 

    (d) Accounts
for an account debtor, including Affiliates, whose total obligations to Borrower exceed 25% of all Accounts, for the amounts that exceed that percentage,
unless the Bank approves in writing; 

    (e) Accounts
for which the account debtor does not have its principal place of business in the United States; 

    (f)  Accounts
for which the account debtor is a federal, state or local government entity or any department, agency, or instrumentality; 

    (g) Accounts
for which Borrower owes the account debtor, but only up to the amount owed (sometimes called "contra" accounts, accounts payable, customer deposits or
credit accounts); 

    (h) Accounts
for demonstration or promotional equipment, or in which goods are consigned, sales guaranteed, sale or return, sale on approval, bill and hold, or other
terms if account debtor's payment may be conditional; 

    (i)  Accounts
for which the account debtor is Borrower's Affiliate, officer, employee, or agent; 

    (j)  Accounts
in which the account debtor disputes liability or makes any claim and Bank believes there may be a basis for dispute (but only up to the disputed or
claimed amount), or if the Account Debtor is subject to an Insolvency Proceeding, or becomes insolvent, or goes out of business; 

    (k) Accounts
for which Bank reasonably determines collection to be doubtful. 

    "Eligible Equipment" is general purpose computer equipment, office equipment, test and laboratory equipment, furnishings, and, subject
to the limitations set forth below, Other Equipment that complies with all of Borrower's representations and warranties to Bank and which is acceptable to Bank in all respects. All Equipment financed
with the proceeds of Equipment Advances may be new or used equipment. 

PAGE 14 - LOAN AND SECURITY AGREEMENT

 

    "Equipment" is all present and future machinery, equipment, tenant improvements, furniture, fixtures, vehicles, tools, parts and
attachments in which Borrower has any interest. 

    "Equipment Advance" is defined in Section 2.1.2. 

    "Equipment Availability End Date" is defined in Section 2.1.2. 

    "ERISA" is the Employment Retirement Income Security Act of 1974, and its regulations. 

    "Funding Date" is any date on which an Equipment Advance is made to or on account of Borrower. 

    "GAAP" is generally accepted accounting principles. 

    "Indebtedness" is (a) indebtedness for borrowed money or the deferred price of property or services, such as reimbursement and
other obligations for surety bonds and letters of credit,
(b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations and (d) Contingent Obligations. 

    "Insolvency Proceeding" are proceedings by or against any Person under the United States Bankruptcy Code, or any other bankruptcy or
insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief. 

    "Intellectual Property" is defined in the attached Exhibit A. 

    "Inventory" is present and future inventory in which Borrower has any interest, including merchandise, raw materials, parts, supplies,
packing and shipping materials, work in process and finished products intended for sale or lease or to be furnished under a contract of service, of every kind and description now or later owned by or
in the custody or possession, actual or constructive, of Borrower, including inventory temporarily out of its custody or possession or in transit and including returns on any accounts or other
proceeds (including insurance proceeds) from the sale or disposition of any of the foregoing and any documents of title. 

    "Investment" is any beneficial ownership of (including stock, partnership interest or other securities) any Person, or any loan,
advance or capital contribution to any Person. 

    "Lien" is a mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance. 

    "Loan Documents" are, collectively, this Agreement, any note, or notes or guaranties executed by Borrower or Guarantor, and any other
present or future agreement between Borrower and/or for the benefit of Bank in connection with this Agreement, all as amended, extended or restated. 

    "Material Adverse Change" is defined in Section 8.3. 

    "Obligations" are debts, principal, interest, Bank Expenses and other amounts Borrower owes Bank now or later, including cash
management services, letters of credit and foreign exchange contracts, if any and including interest accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of Borrower
assigned to Bank. 

    "Other Equipment" is leasehold improvements, intangible property such as computer software and transferable software licenses, other
soft costs, including sales tax, freight, and installation expense, equipment specifically designed or manufactured for Borrower, other intangible property, limited use property and other similar
property. Unless otherwise agreed to by Bank: not more than 25% of the Equipment financed with the proceeds of each Equipment Advance shall consist of Other Equipment. 

    "Patents" are patents, patent applications and like protections, including improvements, divisions, continuations, renewals, reissues,
extensions and continuations-in-part of the same. 

PAGE 15 - LOAN AND SECURITY AGREEMENT

 

    "Permitted Indebtedness" is: 

    (a) Borrower's
indebtedness to Bank under this Agreement or any other Loan Document; 

    (b) Indebtedness
existing on the Closing Date and shown on the Schedule; 

    (c) Indebtedness
to trade creditors incurred in the ordinary course of business; and 

    (d) Indebtedness
secured by Permitted Liens. 

    "Permitted Investments" are: 

    (a) Investments
shown on the Schedule and existing on the Closing Date; and 

    (b) (i) marketable
direct obligations issued or unconditionally guaranteed by the United States or its agency or any State maturing within 1 year from
its acquisition, (ii) commercial paper maturing no more than 1 year after its creation and having the highest rating from either Standard & Poor's Corporation or Moody's Investors
Service, Inc., and (iii) Bank's certificates of deposit issued maturing no more than 1 year after issue. 

    "Permitted Liens" are: 

    (a) Liens
existing on the Closing Date and shown on the Schedule or arising under this Agreement or other Loan Documents; 

    (b) Liens
for taxes, fees, assessments or other government charges or levies, either not delinquent or being contested in good faith and for which Borrower maintains
adequate reserves on its Books, if they have no priority over any of Bank's security interests; 

    (c) Purchase
money Liens (i) on Equipment acquired or held by Borrower or its Subsidiaries incurred for financing the acquisition of the Equipment, or
(ii) existing on equipment when acquired, if the Lien is confined to the property and improvements and the proceeds of the equipment; 

    (d) Licenses
or sublicenses granted in the ordinary course of Borrower's business and any interest or title of a licensor or under any license or sublicense,  if the licenses and sublicenses permit granting Bank a
security interest; 

    (e) Leases
or subleases granted in the ordinary course of Borrower's business, including in connection with Borrower's leased premises or leased property; 

    (f)  Liens
incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (c),  but any extension, renewal or replacement Lien must be limited to the property
encumbered by the existing Lien and the principal amount of the
indebtedness may not increase. 

    "Person" is any individual, sole proprietorship, partnership, limited liability company, joint venture, company association, trust,
unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency. 

    "Prime Rate" is Bank's most recently announced "prime rate," even if it is not Bank's lowest rate. 

    "Quick Assets" is on any date, the Borrower's consolidated, unrestricted cash, cash equivalents, net billed accounts receivable and
investments with maturities of fewer than 12 months determined according to GAAP. 

    "Responsible Officer" is each of the Chief Executive Officer, the President, the Chief Financial Officer and the Controller of
Borrower. 

    "Revolving Maturity Date" is November 9, 2001. 

    "Schedule" is any attached schedule of exceptions. 

PAGE 16 - LOAN AND SECURITY AGREEMENT

 

    "Subsidiary" is for any Person, or any other business entity of which more than 50% of the voting stock or other equity interests is
owned or controlled, directly or indirectly, by the Person or one or more Affiliates of the Person. 

    "Tangible Net Worth" is, on any date, the consolidated total assets of Borrower and its Subsidiaries  minus, (i) any amounts attributable to (a) goodwill, (b)
 intangible items such as unamortized debt discount and expense, Patents,
trade and service marks and names, Copyrights and research and development expenses except prepaid expenses, and (c) reserves not already deducted from assets,  and (ii) Total Liabilities.

    "Total Liabilities" is on any day, obligations that should, under GAAP, be classified as liabilities on Borrower's consolidated balance
sheet, including all Indebtedness, and current portion Subordinated Debt allowed to be paid, but excluding all other Subordinated Debt. 

    "Trademarks" are trademark and servicemark rights, registered or not, applications to register and registrations and like protections,
and the entire goodwill of the business of Assignor connected with the trademarks. 

	

BORROWER:
	

CORILLIAN CORPORATION
	

By:	
 	

	
 	

 
	Name:	 	
	 	 
	Title:	 	
	 	 
	

BANK:
	

SILICON VALLEY BANK
	

By:	
 	

	
 	

 
	Name:	 	
	 	 
	Title:	 	
	 	 

PAGE 17 - LOAN AND SECURITY AGREEMENT

  

 
 

EXHIBIT A    
  

    The
Collateral consists of all of Borrower's right, title and interest in and to the following: 

    All
goods and equipment now owned or hereafter acquired, including, without limitation, all machinery, fixtures, vehicles (including motor vehicles and trailers), and any interest in
any of the foregoing, and all attachments, accessories, accessions, replacements, substitutions, additions, and improvements to any of the foregoing, wherever located; 

    All
inventory, now owned or hereafter acquired, including, without limitation, all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and
finished products including such inventory as is temporarily out of Borrower's custody or possession or in transit and including any returns upon any accounts or other proceeds, including insurance
proceeds, resulting from the sale or disposition of any of the foregoing and any documents of title representing any of the above; 

    All
contract rights and general intangibles now owned or hereafter acquired, including, without limitation, goodwill, trademarks, servicemarks, trade styles, trade names, patents,
patent applications, leases, license agreements, franchise agreements, blueprints, drawings, purchase orders, customer lists, route lists, infringements, claims, computer programs, computer discs,
computer tapes, literature, reports, catalogs, design rights, income tax refunds, payments of insurance and rights to payment of any kind; 

    All
now existing and hereafter arising accounts, contract rights, royalties, license rights and all other forms of obligations owing to Borrower arising out of the sale or lease of
goods, the licensing of technology or the rendering of services by Borrower, whether or not earned by performance, and any and all credit insurance, guaranties, and other security therefor, as well as
all merchandise returned to or reclaimed by Borrower; 

    All
documents, cash, deposit accounts, securities, securities entitlements, securities accounts, investment property, financial assets, letters of credit, certificates of deposit,
instruments and chattel paper now owned or hereafter acquired and Borrower's Books relating to the foregoing; 

    All
copyright rights, copyright applications, copyright registration and like protections in each work of authorship and derivative work thereof, whether published or unpublished, now
owned or hereafter acquired; all trade secret rights, including all rights to unpatented inventions, know-how, operating manuals, license rights and agreements and confidential
information, now owned or hereafter acquired; all mask work or similar rights available for the protection of semiconductor chips, now owned or hereafter acquired; all claims for damages by way of any
past, present and future infringement of any of the foregoing; and 

    All
Borrower's Books relating to the foregoing and any and all claims, rights and interests in any of the above and all substitutions for, additions and accessions to and proceeds
thereof. 

    Borrower
has agreed not to sell, transfer, assign, mortgage, pledge, lease, grant a security interest in, or encumber any of its Intellectual Property, as defined below, without
Bank's prior written consent. 

    Notwithstanding
the foregoing, the Collateral shall not be deemed to include any (i) software, documentation, manuals or other works of authorship, ideas, inventions,
processes, designs, trademarks, technology, information, and materials created, written or developed by Borrower, either before or after the date of this Agreement; or (ii) any intellectual
property rights associated with such works, including without limitation patents, patent rights, copyrights, trademark rights, trade secret rights, trade dress rights, and all rights to use, execute,
reproduce, display, perform, distribute copies of, modify and prepare derivative works based on such works (collectively, the "Intellectual Property"), except that the Collateral shall include the
proceeds of all the Intellectual Property that are accounts (i.e. accounts receivable) of Borrower, or general intangibles consisting 

PAGE 1 - EXHIBIT A

 

of rights to payment, if a judicial authority (including a U.S. Bankruptcy Court) holds that a security interest in the underlying Intellectual Property is necessary to have a security interest in
such accounts and general intangibles of Borrower that are proceeds of the Intellectual Property, then the Collateral shall automatically, and effective as of the Closing Date, include the
Intellectual Property to the extent necessary to permit perfection of Bank's security interest in such accounts and general intangibles of Borrower that are proceeds of the Intellectual Property. 

PAGE 2 - EXHIBIT A

  

 
 

EXHIBIT B    
  

    LOAN PAYMENT/ADVANCE TELEPHONE REQUEST FORM 

DEADLINE
FOR SAME DAY PROCESSING IS 3:00 P.M., P.S.T. 

	TO: CENTRAL CLIENT SERVICE DIVISION	 	DATE:	 	 
	 	 	 	 	

	FAX#: (408) 496-2426	 	TIME:	 	 
	 	 	 	 	

	FROM:	 	CORILLIAN CORPORATION
	 	 	

	 	 	CLIENT NAME (BORROWER)

	REQUESTED BY:	 	 
	 	 	

	 	 	AUTHORIZED SIGNER'S NAME

	AUTHORIZED SIGNATURE:	 	 
	 	 	

	PHONE NUMBER:	 	 
	 	 	

	FROM ACCOUNT #	 	 	 	TO ACCOUNT #	 	 
	 	 	
	 	 	 	

	REQUESTED TRANSACTION TYPE	 	REQUESTED DOLLAR AMOUNT
	PRINCIPAL INCREASE (ADVANCE)	 	$
	 	 	

	PRINCIPAL PAYMENT (ONLY)	 	$
	 	 	

	INTEREST PAYMENT (ONLY)	 	$
	 	 	

	PRINCIPAL AND INTEREST (PAYMENT)	 	$
	 	 	

	OTHER INSTRUCTIONS:	 	 
	 	 	

	

	All Borrower's representations and warranties in the Loan and Security Agreement are true, correct and complete in all material respects on the date of the telephone request for and Advance confirmed by this
Borrowing Certificate; but those representations and warranties expressly referring to another date shall be true, correct and complete in all material respects as of that date.
	

	

BANK
USE ONLY 

TELEPHONE REQUEST:  

    The following person is authorized to request the loan payment transfer/loan advance on the advance designated account and is known to me. 

	
	 	

	Authorized Requester	 	Phone #
	

	
 	

	Received By (Bank)	 	Phone #

	

	Authorized Signature (Bank)

PAGE 1 - EXHIBIT B

  

 
 

EXHIBIT C
  
    COMPLIANCE CERTIFICATE    
  

	TO:	 	SILICON VALLEY BANK
	 	 	3003 Tasman Drive
	 	 	Santa Clara, CA 95054
	

FROM:	
 	

CORILLIAN CORPORATION

    The undersigned authorized officer of CORILLIAN CORPORATION ("Borrower") certifies that under the terms and conditions of the Loan and Security Agreement
between Borrower and Bank (the "Agreement"), (i) Borrower is in complete compliance for the period ending             with all required covenants except as noted below and
(ii) all representations and warranties in the Agreement are true and correct in all material respects on this date. Attached are the required documents supporting the certification. The
Officer certifies that these are prepared in accordance with Generally Accepted Accounting Principles (GAAP) consistently applied from one period to the next except as explained in an accompanying
letter or footnotes. The Officer acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and
that compliance is determined not just at the date this certificate is delivered. 

Please indicate compliance status by circling Yes/No under "Complies" column.  

	Reporting Covenant
 
	 	Required
	 	Complies

	Quarterly 10-Q Report	 	Quarterly within 5 days of filing & Comp.Cert.	 	Yes	 	No
	Annual (Audited) Financial Statement	 	FYE within 120 days	 	Yes	 	No
	Annual 10-K Report & Comp. Cert.	 	Annually within 5 days of filing	 	Yes	 	No
	Deferred Revenue Listing	 	Monthly within 20 days of month-end	 	Yes	 	No
	All SEC filings other than 10-Q and 10-K	 	Within 5 days of filing	 	Yes	 	No
	A/R & A/P Agings1	 	Monthly within 20 days	 	Yes	 	No
	A/R Audit2	 	Annual	 	Yes	 	No
	Borrowing Base Certificate1	 	Monthly within 20 days	 	Yes	 	No

	Financial Covenants
 
	 	Required
	 	Actual
	 	Complies

	Maintain on a Quarterly Basis:	 	 	 	 	 	 	 	 	 
	Tangible Net Worth:	 	$	30,000,000	 	 	 	Yes	 	No
	Minimum Adjusted Quick Ratio3	 	 	2.00:1.00	 	:1.00	 	Yes	 	No
	Minimum Debt Service Coverage Ratio3	 	 	2.00:1.00	 	:1.00	 	Yes	 	No

	1
	Required
when Borrowing Base is applicable. 
	2
	Required
if more than $500,000 is outstanding under the Committed Revolving Line at any one time. 
	3
	Once
Borrower has maintained a Debt Service Coverage Ratio of 2.0:1.0 for two consecutive quarters, the Adjusted Quick Ratio will be amended to eliminate the principal
outstanding under all Equipment Advances. Concurrently, a Debt Service Coverage Ratio covenant of 2.0:1.0 will be implemented. PAGE
1 — EXHIBIT C 

PAGE 1 - EXHIBIT C

 

	Comments Regarding Exceptions: See Attached.	 	 
	

Sincerely,	
 	

 
	

CORILLIAN CORPORATION	
 	

 
	

	
 	

 
	SIGNATURE	 	 
	

	
 	

 
	TITLE	 	 
	

	
 	

 
	DATE	 	 
	
BANK USE ONLY	
 	

 
	Received by:	 	 
	
	 	 
	AUTHORIZED SIGNER	 	 
	Date:	 	 
	
	 	 
	Verified:	 	 
	
	 	 
	AUTHORIZED SIGNER	 	 
	Date:	 	 
	
	 	 
	Compliance Status: Yes No	 	 

PAGE 2 - EXHIBIT C

  

 
 

EXHIBIT D    
    
    BORROWING BASE CERTIFICATE    
  

	Borrower:	 	Corillian Corporation	 	Lender:	 	Silicon Valley Bank

3003 Tasman Drive

Santa Clara, CA 95054

Commitment Amount: $5,000,000 

	ACCOUNTS RECEIVABLE	 	 	 
	1.	 	Accounts Receivable Book Value as of _____	 	$	

	2.	 	Additions (please explain on reverse)	 	$	

	3.	 	TOTAL ACCOUNTS RECEIVABLE	 	$	

	

ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)	
 	
 	

 
	4.	 	Amounts over 90 days due	 	$	

	5.	 	Balance of 50% over 90 day accounts	 	$	

	6.	 	Credit balances	 	$	

	7.	 	Concentration Limits	 	$	

	8.	 	Foreign Accounts	 	$	

	9.	 	Governmental Accounts	 	$	

	10.	 	Contra Accounts	 	$	

	11.	 	Promotion or Demo Accounts	 	$	

	12.	 	Intercompany/Employee Accounts	 	$	

	13.	 	Other (please explain on reverse)	 	$	

	14.	 	TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS	 	$	

	15.	 	Eligible Accounts (#3 minus #14)	 	$	

	16.	 	LOAN VALUE OF ACCOUNTS (80% of #15)	 	$	

	

BALANCES	
 	
 	

 
	17.	 	Maximum Loan Amount	 	$	

	18.	 	Total Funds Available [Lesser of #17 or #16, less	 	 	 
	 	 	Equipment Advances outstanding]	 	$	

	19.	 	Present balance owing on Line of Credit	 	$	

	20.	 	RESERVE POSITION (#18 minus #19)	 	$	

    The undersigned represents and warrants that this is true, complete and correct, and that the information in this Borrowing Base Certificate complies with the
representations and warranties in the Loan and Security Agreement between the undersigned and Silicon Valley Bank.

	COMMENTS:
	

Corillian Corporation
	

By:	

 Authorized Signer

	

BANK USE ONLY
	

Rec'd By:	

 Auth. Signer
	

Date:	

	

Verified:	

 Auth. Signer

PAGE 1 - EXHIBIT D

 

	

Date:	

PAGE 2 - EXHIBIT D

  

 
 

SCHEDULE    
  

Schedule for Section 5.3  

	1.
	S1
Corporation vs. Corillian Corporation: Legal proceedings are disclosed in the Borrower's Form 10-Q, filed on August 14, 2000. 

Schedule for Section 5.7  

	1.
	Investment
in e-Banc LLC: The Borrower's investment in e-Banc LLC is disclosed in the Borrower's Form 10-Q, filed on August 14,
2000.

	2.
	Warrant
to purchase 160,000 shares of Yodlee.com, a privately held entity in the business of data aggregation services. 

PAGE 1 - SCHEDULE

 
 

LOAN MODIFICATION AGREEMENT    
  

    This Loan Modification Agreement is entered into as of December 26, 2000, by and between Corillian Corporation ("Borrower") and Silicon Valley Bank
("Bank"). 

    1.  DESCRIPTION
OF EXISTING INDEBTEDNESS:  Among other indebtedness which may be owing by Borrower to Bank, Borrower is
indebted to Bank pursuant to, among other documents, a Loan and Security Agreement, dated November 9, 2000, as may be amended from time to time, (the "Loan Agreement"). The Loan Agreement
provided for, among other things, a Committed Revolving Line in the original principal amount of Five Million Dollars ($5,000,000). Defined terms used but not otherwise defined herein shall have the
same meanings as in the Loan Agreement. 

Hereinafter,
all indebtedness owing by Borrower to Bank shall be referred to as the "Indebtedness." 

    2.  DESCRIPTION
OF COLLATERAL.  Repayment of the Indebtedness is secured by the Collateral as described in the Loan
Agreement. In addition, Borrower has agreed not to encumber any of its Intellectual Property pursuant to that certain Negative Pledge Agreement, dated November 9, 2000. 

Hereinafter,
the above-described security documents and guaranties, together with all other documents securing repayment of the Indebtedness shall be referred to as the "Security Documents".
Hereinafter, the Security Documents, together with all other documents evidencing or securing the Indebtedness shall be referred to as the "Existing Loan Documents". 

	3.
	DESCRIPTION
OF CHANGE IN TERMS.

	A.
	Modification(s)
to Loan Agreement.

	1.
	Subsection
6.2 entitled "Financial Statement, Reports, Certificates" is hereby amended in part to provide that Borrower will provide to Bank, as soon as available, but no later than
forty-five (45) days after the last day of each quarter, company prepared consolidated and consolidating balance sheet and income statement covering Borrower's consolidated and
consolidating operations during the period, in a form acceptable to Bank and certified by a Responsible Officer.

	2.
	Notwithstanding
anything to the contrary contained in Section 7 entitled "Negative Covenants", Bank hereby acknowledges and consents to Borrower's all stock acquisition of
Hatcher Association, Inc., which will become a wholly owned subsidiary of Borrower.

	3.
	The
following term defined in Section 13.1 entitled "Definitions" is hereby amended as follows: 

"Tangible
Net Worth" is, on any date, the total assets of Borrower minus, (i) any amounts attributable to (a) goodwill, (b) intangible items such as amortized debt discount and
expense, Patents, trade and service marks and names, Copyrights and research and development expenses except prepaid expenses, (c) all investments and all loans in Subsidiaries, and
(d) reserves not already deducted from assets, and (ii) Total Liabilities. 

    4.  CONSISTENT
CHANGES.  The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described
above. 

    5.  NO
DEFENSES OF BORROWER.  Borrower (and each guarantor and pledgor signing below) agrees that, as of the date hereof, it
has no defenses against the obligations to pay any amounts under the Indebtedness. 

    6.  CONTINUING
VALIDITY.  Borrower (and each guarantor and pledgor signing below) understands and agrees that in modifying
the existing Indebtedness, Bank is relying upon Borrower's representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan
Modification Agreement, the terms 

of the Existing Loan Documents remain unchanged and in full force and effect. Bank's agreement to modifications to the existing Indebtedness pursuant to this Loan Modification Agreement in no way
shall obligate Bank to make any future modifications to the Indebtedness. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Indebtedness. It is the intention of Bank
and Borrower to retain as liable parties all makers and endorsers of Existing Loan Documents, unless the party is expressly released by Bank in writing. Unless expressly released herein, no maker,
endorser, or guarantor will be released by virtue of this Loan Modification Agreement. The terms of this paragraph apply not only to this Loan Modification Agreement, but also to all subsequent loan
modification agreements. 

    This
Loan Modification Agreement is executed as of the date first written above. 

	 BORROWER:	 	BANK
	

CORILLIAN CORPORATION	
 	

SILICON VALLEY BANK
	
By:	
 	

	
 	

By:	
 	

	

Name:	
 	

	
 	

Name:	
 	

	

Title:	
 	

	
 	

Title:	
 	

 
 

[LOGO]
  
  SILICON VALLEY BANK    
  

      PRO FORMA INVOICE FOR LOAN CHARGES  

	BORROWER:	 	CORILLIAN CORPORATION	 	 
	

LOAN OFFICER:	
 	

Ron Sherman	
 	

 
	

DATE:	
 	

December 26, 2000	
 	

 
	

 	
 	

Documentation Fee	
 	

250.00
	

 	
 	

TOTAL FEE DUE	
 	

$250.00
	 	 	
	 	

Please indicate the method of payment:  

	

{  }	
 	

A check for the total amount is attached.
	

{  }	
 	

Debit DDA #        for the total amount.
	

{  }	
 	

Loan proceeds

	

	
 	

 
	Borrower	 	(Date)	 	 
	

	
 	

 
	Silicon Valley Bank	 	(Date)	 	 
	Account Officer's Signature	 	 	 	 

QuickLinks

TABLE OF CONTENTS

1 ACCOUNTING AND OTHER TERMS

2 LOAN AND TERMS OF PAYMENT

3 CONDITIONS OF LOANS

4 CREATION OF SECURITY INTEREST

5 REPRESENTATIONS AND WARRANTIES

6 AFFIRMATIVE COVENANTS

7 NEGATIVE COVENANTS

8 EVENTS OF DEFAULT

9 BANK'S RIGHTS AND REMEDIES

10 NOTICES

11 CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER

12 GENERAL PROVISIONS

13 DEFINITIONS

EXHIBIT A

EXHIBIT B

EXHIBIT C COMPLIANCE CERTIFICATE

EXHIBIT D BORROWING BASE CERTIFICATE

SCHEDULE

LOAN MODIFICATION AGREEMENT

[LOGO]  SILICON VALLEY BANKPrepared by MERRILL CORPORATION www.edgaradvantage.com

	
 	
 	
 	

 	
 	

 
	

DATED 8th February, 2001	
 	

 
	

	
 	

 
	

 	

 	

 	

 	

 	

 
	

SYSTEMS UNION LIMITED	
 	

(1)
	

And	
 	

 
	

CORILLIAN INTERNATIONAL LIMITED	
 	

(2)
	

CORILLIAN CORPORATION	
 	

(3)
	

 	

 	

 	

 	

 	

 
	

 
	

 	

 
	

SUB-UNDERLEASE

relating to

Part Ground Floor North Wing

Systems Union House (Building S2)

Farnborough Aerospace Centre

Farnborough Hampshire	

 	

 
	

	
 	

 
	

 	

 	

 	

 	

 	

 
	

COMMENCING:	
 	
 	

 	
 	

2000
	

EXPIRING:	
 	

2005
	

INITIAL RENT:	
 	
£	

327,015.00	
pa	

 
	

RENT REVIEW DATES:	
 	
 	

18 July 2001	
 	

 

 
    THIS SUB-UNDERLEASE is made the 8th day of February 2001 

BETWEEN  

	(1)
	SYSTEMS UNION LIMITED (Company Registration Number 2766416) whose registered office is at Systems Union House 1 Lakeside Road
Farnborough Hampshire GU14 6XP ("the Landlord")

	(2)
	CORILLIAN INTERNATIONAL LIMITED (Company Registration Number 04007036 whose registered office is at 75 Cannon Street London EC4N 5BN
("the Tenant")

	(3)
	CORILLIAN CORPORATION of 3400 NW John Olsen Place, Hillsboro, OR97124 ("the Guarantor") 

    WITNESSES as follows: 

1  Definitions  

	1.1
	In
this Lease unless the context otherwise requires the following expressions shall have the following meanings: 

"Building" means the building and external areas including the Car Park known as Systems Union House (Building S2), Farnborough Aerospace Centre of
which the Premises forms part 

"Car Park" means the car park at the Building 

"Car Park Plan" means the attached plan marked as such 

"Common Parts" means all parts of the Building from time to time provided for the common use of more than one of the tenants or occupiers of the
Building and their visitors including any vehicular and pedestrian accesses passages circulation areas landscaped areas fire escapes toilet facilities refuse collection and disposal areas and the
café on the ground floor of the Building but excluding the meeting rooms on the ground floor any part of the Building above the ground floor 

"Conduits" means sewers drains pipes wires cables ducts gutters fibres and any other medium for the passage or transmission of soil water gas
electricity air smoke light information or other matters and includes where relevant ancillary equipment and structures 

"Commencement Date" means the date 12th January 2001 

"Head Landlord" means any party having an interest in the Premises in reversion to the Head Lease 

"Head Lease" means the Lease dated 18 July 1996 and made between British Aerospace (Farnborough 2) Limited (1) the Superior
Landlord (2) International Cabletel Incorporated (3) and Farnborough Aerospace Centre Management Limited (4) 

"Latent Defect" means any defect in the Building or anything installed in or on the Property attributable to:- 

	(a)
	defective
design

	(b)
	defective
workmanship or materials

	(c)
	defective
supervision of the construction of or the installation of anything in or on the property or

	(d)
	defective
preparation of the site on which the property is constructed 

"Lettable Area" means a part of the Building designed or intended for letting or exclusive occupation (except in connection with the management of the
Building) the boundaries of any 

1

 

Lettable Area being determined in the same manner as the boundaries of the Premises under Schedule 1 

"Managing Agent" means any party from time to time appointed by the Landlord to manage the Building (who may be an employee of the Landlord) 

"Outgoings" means all rates taxes charges duties assessments impositions and outgoings of any sort relating to the Building which are at any time during
the Term payable whether by the owner or occupier of the Building but excluding charges for electricity gas water sewerage telecommunications and other services rendered to or consumed by the Premises
or a Lettable Area and tax payable by the Landlord on the receipt of the Basic Rent or on any dealings with its reversion to this Lease and input Value Added Tax suffered by the Landlord in respect of
the Building 

"Plant" means the plant equipment and machinery from time to time in or on the Building including without limitation lifts hoists generators and
equipment for air-conditioning ventilation heating cooling fire alarm fire prevention or fire control communication and security 

"Premises" means that part of the Building described in Schedule 1 and all additions and improvements made to it and references to the Premises
shall include reference to any part of them 

"Premises Plan" means the plan attached to this Lease marked as such 

"Rent Commencement Date" means the date one month after the Commencement Date 

"Retained Property" means all parts of the Building except for the Premises and the other Lettable Areas and includes without limitation the Common
Parts the Conduits the foundations roof exterior and structure of the Building the Plant (except where part of the Premises or any Lettable Area) any external areas of the Building and any parts of
the Building used for the management of the Building or the provision of services to it 

"Superior Landlord" means any party having an interest in the Premises in reversion to the Superior Lease 

"Superior Lease" means the Lease dated 17 March 2000 and made between Cabletel (UK) Limited (1) the Landlord (2) and Systems Union
Group Limited (3) 

2  Demise and Rents  

IN
consideration of the rents and covenants hereinafter reserved and contained the Landlord HEREBY DEMISES to the Tenant the Premises TOGETHER WITH (in common with the Landlord and all others from
time to time entitled thereto) for the benefit of the Tenant its successors in title servants agents and visitors and all others from time to time entitled to like or similar rights the rights and
easements set out in Part 2 of the First Schedule to the Head Lease insofar as they relate to the Premises and the rights set out in Schedule 2 of this Lease EXCEPTING AND RESERVING unto
the Landlord the persons for the time being entitled to any interest or interests reversionary (whether immediate or mediate) upon the Landlord's interest and all other persons entitled to the same
the rights and easements excepted and reserved by the Headlease and Superior Lease insofar as they relate to the Premises and the rights set out in Schedule 3 of this Lease TO HOLD the same
unto the Tenant for the term of five years from and including the Commencement Date ("the Term") YIELDING AND PAYING therefor to the Landlord throughout the term by way of rent:- 

FIRSTLY
the annual rent of THREE HUNDRED AND TWENTY SEVEN THOUSAND AND FIFTEEN POUNDS (£327,015) plus VAT (subject to review on 18 July 2001 in accordance with clause 8 of
the Head Lease as incorporated by clause 5.2 of this Lease) such rent to be paid by equal quarterly payments in advance on the usual quarter days in every year without 

2

 

deduction or set off except for that required by statute the first of such payments or a proportionate part thereof to be made on the Rent Commencement Date for the period from the Rent Commencement
Date to the next succeeding quarter day 

SECONDLY
any other sums which may become due from the Tenant to the Landlord under the provisions of this Lease 

THIRDLY
by way of further rent the Value Added Tax (or any tax of a similar nature that may be substituted for it or levied in addition to it) (by reason of an election of a Landlord or otherwise) in
respect of the rents first and secondly and thirdly reserved (except in so far as the Landlord is able to recover the same as input tax) to be paid by equal quarterly payments in advance on the usual
quarter days. 

3  Tenant's Covenants  

    THE Tenant HEREBY COVENANTS with the Landlord as follows:- 

	3.1
	To
pay the rents reserved in clause 2 on the dates and in the manner stated

	3.2
	To
pay and discharge all charges for electricity gas sewerage telecommunications and other services rendered to or consumed by the Premises at the times when they become due

	3.3
	To
reimburse the Landlord with 7 days of demand its costs incurred in installing and maintaining telephone connection and equipment for the benefit of the Tenant

	3.4
	If
due to any act or omission by the Tenant the sums payable by the Landlord to the Superior Landlord pursuant to the Superior Lease in respect of insurance premiums shall
substantially increase then the Tenant shall pay on demand a due proportion determined by the Landlord (acting reasonably) of such increase for so long as those circumstances subsist

	3.5
	To
observe and perform in so far as they relate to the Premises the covenants and conditions on the part of the lessee in clause 3 (other than sub-clauses 3.1,
3,3, 3.4, 3.5, 3.6, 3.7, 3.9, 3.18, 3.22, 3.23 and 3.24) of the Head Lease as if the same were set out at length herein and with such
modifications only as are necessary to make them applicable to this demise and such modifications as are specified in this Lease and to indemnify the Landlord from and against any actions proceedings
claims damages costs expenses or losses arising from any breach non-observance or non-performance of such covenants and conditions

	3.6
	Not
to do omit suffer or permit in relation to the Premises any act or thing which would or might cause the Landlord to be in breach of the Headlease or Superior Lease

	3.7
	During
the last three months of the Term to redecorate the internal walls of the Premises with one good coat of emulsion paint and to clean (or replace if necessary) the carpet at
the Premises

	3.8
	Alienation

	(a)
	Not
to assign mortgage charge underlet or part with the possession or occupation of whole or any part of the Premises save for assignment of the whole of the Premises as permitted
below

	(b)
	Not
to assign the whole of the Premises without the prior written consent of the Landlord which shall not be unreasonably withheld provided that for the purposes of
sub-section 1(A) of section 19 of the Landlord and Tenant Act 1927 (and without prejudice to any other right of the Landlord to withhold consent on any other reasonable
ground) it is hereby agreed that the Landlord (i) may withhold consent to any assignment of the whole of the Premises if any one or more of the circumstances set out in clause 3.8
(c) applies and (ii) may impose all or any of the requirements set out in clause 3.8 (d) as a condition of its consent 

3

 

	(c)
	The
circumstances referred to in clause 3.8 (b) are that:

	(i)
	in
the Landlord's reasonable opinion the proposed assignee is not of sufficient financial standing to enable it to comply with the Tenant's
covenants in this Lease

	(ii)
	if
there has not been delivered to the Landlord such information as the Landlord may reasonably request to enable it to form a judgment on
the matters mentioned in sub-clause 3.8 (c) (i)

	(iii)
	if
any rent firstly reserved payable to the Landlord under this Lease are unpaid 14 days after the due date for payment or if there is any
subsisting material breach of any of the Tenant's covenants in this Lease 

	(d)
	Any
consent given by to any assignment to a proposed assignee:-

	(i)
	shall
be subject to a condition that the Tenant not later than the date of assignment enters into an authorised guarantee agreement in such form as
the Landlord may reasonably require and that any guarantor or surety for the Tenant enters into a guarantee of such authorised guarantee agreement in such form as the Landlord may reasonably require

	(ii)
	may
if the Landlord reasonably so requires be subject to a condition that a guarantor reasonably acceptable to the Landlord executes and delivers
to the Landlord a deed in such form as the Landlord may jointly reasonably require wherein it covenants (jointly and severally if more than one) as a primary obligation that:-

	(A)
	that
the assignee will during the residue of the Term then subsisting pay the rents for the time being hereby reserved and perform and observe the covenants on the part of the
Tenant herein contained and

	(B)
	that
if the assignee enters into an authorised guarantee agreement the assignee will pay all sums payable under and observe and perform its covenants contained in the authorised
guarantee agreement and

	(C)
	that
the guarantor will keep the Landlord indemnified from and against all actions proceedings costs claims expenses damages losses and demands arising by reason of any default by
the assignee and

	(D)
	that
any neglect or forbearance of the Landlord or the Superior Landlord or any disability or immunity or lack of power of the assignee or the assignee ceasing to exist shall not
release or exonerate the guarantor and

	(E)
	that
if the assignee shall be wound up or cease to exist or if any liquidator of the assignee shall disclaim this Lease or if the Landlord would under any authorised guarantee
agreement be entitled to require the assignee to take a new lease of the demised premises then the guarantor will should the Landlord so require accept a new lease of the demised premises such new
lease to commence from the date of such event as aforesaid and be for the residue then unexpired of the Term and to be at the rents then payable (such rents to commence from such date as aforesaid)
and to be subject to the same tenant's covenants and to the same provisos and conditions as those in force immediately before such event as aforesaid and to be granted at the cost in all respects of
the guarantor in exchange for a counterpart duly executed by the guarantor or

	(F)
	the
payment to the Landlord of all rents and other sums under this Lease which have fallen due prior to the date of assignment and the remedying of all or any subsisting material
breaches of Tenant's covenant in this Lease which are capable of remedy 

4

  

	(e)
	Not
to share the possession or occupation of the whole or any part of the Premises except with a company which is a member of the same group of companies as the Tenant within the
meaning of Section 42 of the Landlord and Tenant Act 1954 provided that no relationship of landlord and tenant is thereby created and provided that such arrangement shall be determined upon
such company ceasing to be within the same group of companies as aforesaid 

	3.9
	Repair

To
keep the Premises in good and substantial repair and condition and repair or replace forthwith by new articles of similar kind and quality all Landlord's fixtures fittings and carpets belonging to
the Premises which shall be damaged worn out or removed (excepting damage caused by a risk against which the Head Landlord Superior Landlord or Landlord insures and excepting Latent Defects and any
want of repair attributable to such a Latent Defect) provided that the Tenant shall not be obliged to put the Premises into a better state of repair than at the date of this Lease as evidenced by the
schedule of condition annexed hereto 

	3.10
	Signs

That
no mast dish aerial pole sign fascia placard bill notice or other notification whatsoever shall be placed or affixed on or to the outside of the Premises or on the inside so as to be visible from
the outside or otherwise in or on the Premises save for a sign at the entrance to the Premises on the ground floor and a sign at the front entrance of the Building in such position as the Landlord
shall from time to time reasonably specify stating the Tenant's name and business such sign to be of a size design and lettering previously approved in writing by the Landlord such approval not to be
unreasonably withheld 

	3.11
	Yielding up on Determination

	(a)
	On
Determination the Tenant shall yield up the Premises to the Landlord with vacant possession in a state of repair condition and decoration which is consistent with the proper
performance of the Tenant's covenants in this Lease

	(b)
	If
on Determination the Tenant leaves any fixtures fittings or other items in the Premises the Landlord may 15 working days after notifying the Tenant in writing in writing of the
items so left behind treat them as having been abandoned and may remove destroy or dispose of them as the Landlord wishes and the Tenant shall pay to the Landlord on demand the proper cost of this
properly incurred with interest at the Interest Rate from the date of demand to the date of payment and indemnify the Landlord against any and all resulting liability

	(c)
	Immediately
before Determination if and to the extent required by the Landlord in writing at least two months before the determination the Tenant shall reinstate all alterations
(including partitioning) additions or improvements made to the Premises at any time during the Term (or pursuant to any agreement for lease made before the start of the Term) and where this involves
the disconnection of Plant or Conduits the Tenant shall ensure that the disconnection is carried out properly and safely and that the Plant and Conduits are suitably sealed off or capped and left in a
safe condition so as not to interfere with the continued functioning of the Plant or use of the Conduits elsewhere in the Building

	(d)
	The
Tenant shall make good any damage caused to the Premises Plant and Conduits in complying with paragraph 3.11(c) and shall carry out all relevant works (including the
making good of damage) to the reasonable satisfaction of the Landlord 

5

 

4  Landlord's Covenants  

    THE Landlord HEREBY COVENANTS with the Tenant as follows:- 

	4.1
	that
the Tenant paying the rent hereinbefore reserved and performing and observing the several covenants conditions and agreements on the part of the Tenant herein contained shall
and may peaceably hold and enjoy the Premises during the term hereby granted without any interruption by the Landlord or by any person lawfully claiming through under or in trust for the Landlord or
by title paramount

	4.2
	to
pay the rent reserved by the Superior Lease and observe and perform the lessees covenants therein contained in relation to the demise hereby made in so far as the same are not to
be observed and performed by the Tenant in terms of this Lease

	4.3
	The
Landlord shall:

	(a)
	pay
promptly to the Superior Landlord all sums relating to insurance and service charge required under the Superior Lease

	(b)
	request
from the Superior Landlord whenever reasonably requested by the Tenant and to the extent permitted under the Superior Lease evidence of the terms of the Insurance Policies
effected by the Superior Landlord or the Head Landlord and of payment of the last premium and shall pass on to the Tenant the evidence obtained from the Superior Landlord;

	(c)
	pass
on to the Tenant copies of all communications about insurance of the Building received from the Insurers or the Superior Landlord or from any person on their behalf and to
provide a copy upon request by the Tenant of the plate glass insurance effected by the Landlord under the Superior Lease together with last premium receipt 

	4.4
	on
the request of the Tenant to take such steps as the Tenant may reasonably require to enforce (through the Superior Landlord) the covenants on the part of the Head Landlord and
Management Company contained in clauses 4 5 and clauses 6.2 of the Head Lease so far as they remain outstanding and relate to the Premises and on the part of the Management Company contained in
clause 6 of the Head Lease

	4.5
	To
use it's reasonable endeavours at the Tenant's expense to obtain the consent of the Superior Landlord's whenever the Tenant makes application for any consent required under this
Lease whether the consent of both the Landlord and the Superior Landlord is needed by virtue of this Lease and the Headlease

	4.6
	To
provide to the Tenant a copy of any notice served on the Landlord and relating to the Premises and provide a copy of the estimated service charges as soon as the same are
received together with a copy of any revisions to the estimated service charges and a copy of the Service Charge Statement together with any other information given to the Landlord by the Superior
Landlord under the Superior Lease

	4.7
	The
Landlord shall at its own expense remedy any Latent Defects and any want of repair which is attributable to any such Latent Defects and the Landlord shall not recover or seek to
recover from the Tenant any Contribution or other payment pursuant to this Lease in respect of any cost
incurred by the Landlord in or incidental to the remedying of any Latent Defect or of any want of repair attributable to such Latent Defect

	4.8
	To
provide the following services (unless unable to do so because of circumstances outside of its control):

	(a)
	maintaining
repairing renewing reinstating and where appropriate treating washing down painting and decorating the Common Parts; 

6

 

	(b)
	inspecting
servicing maintaining repairing amending overhauling or replacing and insuring all apparatus plant machinery and equipment within the common Parts from time to time
including without prejudice to the generality above stand by generators boilers and items relating to mechanical ventilation heating cooling and security;

	(c)
	maintaining
repairing cleansing emptying draining amending and renewing all Conduits within the Building and all other conduits on any other adjoining property which serve the
Building;

	(d)
	maintaining
and renewing the fire alarms and ancillary apparatus and fire prevention and fire fighting equipment and apparatus in the Common Parts;

	(e)
	cleaning
treating polishing heating and lighting the Common Parts to such standard as may be reasonably adequate;

	(f)
	providing
such mechanical ventilation heating and cooling to the Common Parts for such hours and times of year as the Landlord shall in its reasonable discretion determine;

	(g)
	cleaning
at least once a month the exterior and interior of all windows and window frames in the Building;

	(h)
	collecting
and disposing of refuse from the Building;

	(i)
	providing
and maintaining a reception facility to include without limitation an area on the ground floor of the building for receiving visitors and guests properly furnished for
such purposes and a reception desk which is manned between the hours of 0830 and 1800 inclusive during the days Monday to Friday inclusive;

	(j)
	providing
hot and cold water to the toilet facilities and providing all other toilet requisites commonly found in toilet facilities 

5  General Provisions  

    PROVIDED ALWAYS AND IT IS HEREBY AGREED AND DECLARED as follows:- 

	5.1
	the
definitions referred to the Head Lease shall be incorporated in this Lease (mutatis mutandis) as if the same had been set out herein in extenso except that where the same terms
are defined in their Lease, the definitions in this Lease shall subsist

	5.2
	the
provisions of clauses 5.5 to 5.15 (inclusive) except 5.6, 7 and 8 of the Head Lease shall apply to this demise (including without prejudice to the generality of the foregoing
the proviso for re-entry therein contained) as if the same were set out at length herein and demised premises refers to the Premises demised by this Lease save that for the purposes of
this Lease the definition of the "Review Date" in Clause 8 of the Head Lease shall be 18 July 2001 and the words "15 years" in clause 8.1.2 shall be replaced with
"5 years"

	5.3
	Except
to the extent that the Landlord may be liable by law notwithstanding any agreement to the contrary the Landlord shall not be liable in any way to the Tenant or any
undertenant or any servant agent licensee or invitee of the Tenant or any undertenant by reason of:

	(a)
	any
act neglect default or omission of any of the tenants or owners or occupiers of any adjoining or neighbouring premises (whether within the Building or not)

	(b)
	the
defective working stoppage or breakage of or leakage or overflow from any Conduit or any of the Plant or

	(c)
	the
obstruction by others of the Common Parts or the areas over which rights are granted by this Lease 

7

  

	5.4
	The
Landlord shall be entitled to make alterations to the Common Parts or to alter renew or replace any Plant and to obstruct the Common Parts while doing so but shall in so doing
ensure that reasonable access to the Premises or reasonable alternative and no less commodious access to the Premises is always available

	5.5
	In
the interests of security the Landlord:

	(a)
	may
require anyone entering or leaving the Building to identify themselves and the party in the Building whom they are visiting and to record this information and their arrival and
departure times in a book or other form of record kept for the purpose

	(b)
	may
prevent anyone entering the Building for the purpose of visiting the Premises unless that person has a key to the Premises or is authorised by the Tenant or any other permitted
occupier of the Premises

	(c)
	may
require the Tenant or permitted occupier of the Premises to escort any person visiting them from the security or reception desk to the Premises (and back again when that person
leaves)

	(d)
	may
prevent anyone removing any items from the Building unless that person is authorised to do so by the Landlord or any tenant or permitted occupier of the Building 

and
in this regard: 

	(A)
	the
rights of access and egress granted in Schedule 2 are subject to this clause and

	(B)
	any
authorisation required by this clause must be produced to the person requiring it or confirmed by a written or oral (or telephoned) statement from the person giving it 

	5.6
	The
Landlord may add to vary or discontinue any of the Services where the Landlord acting reasonably considers it appropriate to do so having regard to the principles of good estate
management and where it is in the interest of all Tenants and occupiers of the Building

	5.7
	that
nothing herein contained or implied or in any licence or consent hereafter granted shall be taken to be a covenant warranty or representation by the Landlord that the Premises
can be lawfully used for the purpose referred to in the Head Lease or for any other particular purpose whatsoever

	5.8
	notwithstanding
anything contained herein or in the Head Lease the rent hereby reserved shall not be suspended for a period longer than the period for the suspension of the rent
reserved by the Head Lease

	5.9
	where
any issue question or matter arising out of or under or relating to the Head Lease or the Superior Lease which also affects or relates to the provisions of this Lease is to be
determined as provided in the Head Lease or the Superior Lease the determination of such issue question or matter pursuant to the provisions of the Head Lease or the Superior Lease shall be binding on
the Tenant as well as the Landlord for the purposes of the Head Lease, Superior Lease and this Lease

	5.10
	where
under the terms of this Lease the consent of the Landlord is required for any act or matter the consent of the Head Landlord under the terms
of the Head Lease and the Superior Landlord under the terms of the Superior Lease shall also be required wherever requisite PROVIDED THAT nothing in this Lease shall be construed as imposing on the
Head Landlord or the Superior Landlord any obligation (or indicating that such obligation is imposed on the Head Landlord or the Superior Landlord by virtue of the terms of the Head Lease or the
Superior Lease respectively) not unreasonably to refuse any such consent

	5.11
	for
the avoidance of doubt any rights reserved by or exercisable under the Superior Lease Head Lease or this Lease shall be exercisable by the
Landlord the Head Landlord and the 

8

 

Superior
Landlord together with all agents workman servants and contractors employed by the Landlord the Head Landlord or the Superior Landlord 

	5.12
	If
the Tenant shall in compliance with its obligations under Clause 3.9 of this Lease carry out any works to remedy any Latent Defect or to
remedy any want of repair which is attributable to any such Latent Defect provided that the Tenant prior to carrying out such works shall obtain the approval of the Landlord to the nature and extent
of the works such approval not to be unreasonably withheld or delayed and complete such works to the reasonable satisfaction of the Landlord the Landlord shall pay or repay to the Tenant the costs and
expenses of and incidental to such works following production to the Landlord of all relevant receipts and invoices or other reasonable evidence of such costs and expenses 

6  Confidentiality  

    Neither party shall publish issue or make any announcement press release or circular in relation to the transaction hereby agreed and save to the extent
required by law the regulations of the Stock Exchange or other regulatory requirements or for the purposes of accounting and auditing or for the purposes of making returns to or responding to
enquiries made by the Inland Revenue neither party (so far as it is within the power of each party) shall make public or issue such matters publicly without the consent of the other and each party
shall take every reasonable account of the representations in respect of thereof made by the other party hereto and neither party shall in any event disclose the financial terms of the transaction
publicly 

7  Guarantee  

	7.1
	THE
Guarantor HEREBY COVENANTS with and GUARANTEES to the Landlord that the Tenant
will at all times during the term and any statutory or other continuation or extension thereof pay the rents and all other sums and payments agreed to be paid by the Tenant at the respective times and
in manner herein appointed for payment thereof and will also duly perform and observe the several covenants and obligations on the part of the Tenant contained and that the Guarantor will pay and make
good to the Landlord on demand all losses sustained and reasonable costs and reasonable expenses incurred by the Landlord through the default of the Tenant in respect of the before-mentioned matters.

	7.2
	The
Guarantor HEREBY FURTHER COVENANTS with the Landlord that if this Lease shall be disclaimed or forfeited or shall for any other
reason determine or cease to exist except determination by either the Landlord or the Tenant under clauses 9 or 11 then the Guarantor shall if required by notice in writing from the Landlord within
three months thereafter take up a lease of the Demised Premises forthwith for a term equivalent to the residue of the term granted by this Lease (had it not been disclaimed or forfeited or determined
or ceased to exist) and at the rents which would have been payable hereunder (with provisions for the review of rent at the times and in manner contained in this Lease) and subject to the like
covenants and to the like provisos and
conditions as are contained in this Lease with the exception of this Clause AND in such case the Guarantor shall pay the Landlord's reasonable and
proper and reasonable costs of and accept such new lease accordingly and will execute and deliver to the Landlord a counterpart thereof

	7.3
	The
Guarantor HEREBY FURTHER COVENANTS with the Landlord that if this Lease shall be disclaimed or shall be forfeited under the
provisions in that behalf herein contained or shall for any other reason determine or cease to exist except determination by either the Landlord or the Tenant under Clauses 9 or 11 then the Guarantor
shall for a period of four months thereafter or (if earlier) until the date upon which a new lease of the Demised Premises is granted pay to the Landlord amounts equal to the rents and other payments
which would have been payable by the Tenant under this Lease (had it not been disclaimed or forfeited or determined or ceased to exist) upon the dates when the same would have been payable under this
Lease it being 

9

 

agreed
however that credit shall be given to the Guarantor if (notwithstanding such disclaimer) such sums have in any event been paid to the Landlord 

	7.4
	The
Guarantor shall not be released from its obligations under this clause nor shall the liability of the Guarantor be in any way lessened or affected by any neglect or forbearance
of the Landlord in endeavouring to obtain payment of the rents and other payments due under this Lease or any delay by the Landlord in enforcing the performance or observance of the covenants and
obligations herein on the part of the Tenant or any time which may be given by the Landlord to the Tenant

	7.5
	The
guarantee hereby given shall also operate for the benefit of the successors or assigns of the Landlord 

8  Exclusion of Security  

	8.1
	IT
IS HEREBY AGREED AND DECLARED that the provisions of Sections 24 to 28 of Part 2 of the Landlord and Tenant Act 1954 shall not apply in relation to the Lease hereby
granted

	8.2
	THE
agreement contained in the preceding subclause has been authorised by an Order dated the 20th day of December 2000 and made under Section 38(4) of
the said Act of 1954 (as amended by Section 5 of the Law of Property Act 1969) by the Bristol County Court on the joint application of the parties hereto 

9  Termination  

	9.1
	This
Lease and any interests derived out of this Lease shall automatically cease and determine upon the expiration or sooner determination for any reason of the term granted by the
Head Lease or the Superior Lease but without prejudice to any claim either party may have in respect of any antecedent breach by the other 

10  Contracts (Rights of Third Parties) Act 1994  

	10.1
	The
parties do not intend that any term of this Lease shall be enforceable by any party as provided by the Contracts (Rights of Third Parties) Act
1999 but any third party right which exists or is available independently of that Act is preserved 

11  Determination  

	11.1.1	The Landlord may determine this Lease on the second, third or fourth anniversary of the Commencement Date by serving on the Tenant not less than six months prior written notice specifying the proposed date of
Determination
	

11.1.2	

The Tenant may determine this Lease on the first day of any month after the first anniversary of the Commencement Date by serving on the Landlord not less than six months' prior written notice specifying the proposed date of Determination

	11.2
	This
Lease shall only determine as a result of notice served by the Tenant under clause 11.1.2 if:

	(a)
	that
notice has been served strictly in accordance with that clause and

	(b)
	on
the intended date of Determination the Tenant gives vacant possession of the Premises to the Landlord and

	(c)
	the
Tenant has paid all firstly reserved rent by the Tenant under this Lease to the date of Determination 

	11.3
	If
the Landlord serves notice of Determination under clause 11 then on the expiry of that notice the Tenant shall give vacant possession of
the Premises 

10

 
	11.4
	If
the provisions of this clause 11 are complied with then upon the expiry of the relevant notice of Determination this Lease shall determine
but without prejudice to any right of action of either party in respect of any previous breach by the other of this Lease and without prejudice also to the continuing operation of this
clause 11 and the Tenant shall deliver to the Landlord the original of the Lease and any other title documents to the Premises

	11.5
	Time
is of the essence in respect of this clause 11

	11.6
	Any
notice of Determination served under this clause 11 shall be irrevocable 

12  Agreement for Lease  

	12.1
	This
Lease is not entered into pursuant to any agreement for Lease 

IN WITNESS whereof the parties hereto have caused this Lease to be duly executed as a Deed the day and year first before written 

11

Systems
Union Limited

Dogmersfield Park

Hartley, Wintney

Basingstoke

Hants

RG27 8TD 

Corillian
International Limited

75 Cannon Street

London

EC4N 5BN 

and

Corillian
Corporation

3400 NW John Olsen Place

Hillsboro

OR97124 

Date:
8th February 2001 

Dear
Sirs 

Ground Floor, North Wing, Systems Union House, Farnborough  

    This letter relates to a Sub-Underlease of the above premises granted by us to you on the date hereof ("the Lease") or any Lease we require
Corillian Corporation to take up under clause 7 of the Lease and in consideration of our entering into the Lease notwithstanding the express provision contained in the Lease, it is hereby
agreed that the annual rent firstly reserved by the Lease will not be reviewed on 18 July 2001. 

    In
place of the rent review on 18 July 2001, it is hereby agreed that the annual rent firstly reserved by the Lease will be increased in accordance with the provisions of
paragraph 1 below. 

	1.	 	(a)	 	In respect of each of the following periods respectively of the said term (hereinafter individually called "a rental period") that is to say
	

 	
 	

 	
 	

(i)	
 	

the period commencing on the 12th day of January Two thousand and Three and ending on the 11th day of January Two thousand and Four and
	

 	
 	

 	
 	

(ii)	
 	

the period of commencing on the 12th day of January Two thousand and Four and ending on the 11th day of January Two thousand and Five
	

 	
 	

 	
 	

(iii)	
 	

the period commencing on the 12th day of January Two Thousand and Five and ending on the 11th day of January Two Thousand and Six
	

 	
 	

 	
 	

 	
 	

such a sum as shall be equal to £327,015 (the "Basic Rent") by the variable factor (as hereinafter defined) applicable to the rental period in relation to which the calculation is being made
	

 	
 	

(b)	
 	

The Basic Rent multiplied by the variable factor less the Basic Rent shall be paid without any deduction by equal quarterly instalments in advance on the usual quarter days in every year the first proportionate payment of such quarterly payments of
the first of the said rents to be made on the commencement of the first of the said rental periods
	
	
 	

 	
 	

 	
 	

 

	

 	
 	

(c)	
 	

The variable factor in relation to a rental period shall be the numerical fraction which shall have as its denominator the figure of 172.2 and as its numerator the average monthly figure to be derived from the monthly Indices of Retail Prices
published by the Department of Employment or any other Ministry or Government Department upon which the duties in connection with the Index of Retail Prices shall have devolved) for the last twelve months for which the Indices have been published
immediately preceding the year of commencement of that rental period
	

 	
 	

(d)	
 	

If and as often as during the said term the monthly Index of Retail Prices shall be related to some commencing date other than the Thirteenth day of January One thousand nine hundred and eighty seven (which is the date at which for the purposes of
the present Index of Retail Prices the Index figure was taken at 100) then any new Index shall for the purposes of this Clause be substituted for the figure of 172.2 hereinbefore mentioned and in any such case the Index figure related to a more
recent date shall be substituted in preference to one related to a more remote date and in any such case the expression "Basic Rent" shall be construed as meaning the yearly rent payable hereunder immediately before the commencing date to which the
said new Index figure shall be related
	

 	
 	

(e)	
 	

Notwithstanding anything hereinbefore otherwise contained where the rent in relation to a rental period would (apart from this provision) not be greater then the yearly rent payable hereunder immediately before the commencement of such rental period
then and in such case the rent payable for such rental period shall be deemed to be the same as the amount of the yearly rent payable for the period immediately preceding such rental period
	

 	
 	

(f)	
 	

If there shall be any bona fide dispute differences or question between the Landlord and the Tenant as to the amount of rent payable hereunder or with respect to the construction or effect of the provisions of this Clause or if Her Majesty's
Government shall cease to publish any Index of Retail Prices as aforesaid or if any event shall happen whereby it becomes impossible or impracticable to implement the provisions for calculating rent hereinbefore contained then and in any such case
such dispute difference or question or (as the case may be) the question as to the amount of the rent payable for any rental period shall be referred by either party for determination by a single arbitrator in accordance with the provisions of the
Arbitration Act 1950 or any statutory enactment in that behalf for the time being in force
	

 	
 	

Provided always that if the Superior Landlord or Head Landlord as defined in the Lease require the Landlord to review the rent under the Lease and enforce the Landlord to review the same, we shall indemnify you for any increase in rent paid by you
under the Lease as a result of the rent review on 18 July 2001
	

2.	
 	

(a)	
 	

In this paragraph 5 the "Relevant Room Rate" means in the case of the Presentation Room £30 per hour, in the case of the Board Room £25 per hour; and in the case of Meeting Rooms 1, 2, 3, 4 and 5 it means £15 per hour. All of
these rooms (the "Meeting Rooms") are on the ground floor of the building and are identified on the attached plan.
	

 	
 	

(b)	
 	

We agree to let you use the Meeting Rooms from time to time if they happen to be available and always by prior appointment for the purpose for which they are designed provided that you pay us on written demand an amount calculated by multiplying the
number of hours that you have used the room by the Relevant Room Rate. If any such payments are outstanding for more than 14 days then interest shall be payable thereon at the rate provided by the Lease.
	

 	
 	

(c)	
 	

At any time after the date one month after the date of this letter, we reserve the right on notice with immediate effect to restrict your use to a maximum of ten room hours per week.
	

 	
 	

(d)	
 	

We will also permit you use of our video conferencing facility whilst you are using any of the Meeting Rooms if it happens to be available as is not being used or required by us.
	

3	
 	

For the avoidance of doubt, all of the agreements, concessions and permissions in your favour contained in all of the above paragraphs are personal to you and cannot be transferred in any way.
	
	
 	

 	
 	

 	
 	

 

	

4	
 	

Neither party shall publish issue or make any announcement press release or circular in relation to the transaction hereby agreed and save to the extent required by law the regulations of the Stock Exchange or other regulatory requirements neither
party (so far as it is within the power of each party) shall make public or issue such matters publicly without the consent of the other and each party shall take every reasonable account of the representations in respect thereof made by the other
party hereto and neither party shall in any event disclose the financial terms of the transaction publicly.
	

5	
 	

This letter shall bind our successors in title.
	

Please countersign this letter to confirm that you agree to all of the above.
	

Yours faithfully
	

	Signed on behalf of Systems Union Limited
	

 	
 	

 	
 	

 	
 	

 
	

	Countersigned on behalf of Corillian International Limited
	

 	
 	

 	
 	

 	
 	

 
	

	Countersigned on behalf of Corillian Corporation

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