Document:

Investment Agreement dated June 24, 2008

 Exhibit 10.19 
 INVESTMENT AGREEMENT 
 BY AND AMONG 
  
 CHINA MASS MEDIA INTERNATIONAL ADVERTISING CORP. 
 EVER KINGDOM LIMITED 
 HAPPY INDIAN
OCEAN LIMITED 
 AND 
 ARCTIC SPRING LIMITED 
  
 DATED AS OF JUNE 24, 2008

 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	 Page

	 1
	  	     DEFINITIONS
	  	2
			
	 2
	  	     PURCHASE AND SALE.
	  	8
				
		  	 2.1
	  	 Purchase and Sale
	  	8
		  	 2.2
	  	 Closing
	  	8
		  	 2.3
	  	 Closing Deliveries.
	  	8
			
	 3
	  	     REPRESENTATIONS AND WARRANTIES OF THE INVESTEES.
	  	10
				
		  	 3.1
	  	 Representations and Warranties of the Investees
	  	10
		  	 3.2
	  	 Effect of Closing
	  	10
			
	 4
	  	     REPRESENTATIONS AND WARRANTIES OF THE INVESTOR
	  	10
				
		  	 4.1
	  	 Representations and Warranties of the Investor
	  	10
		  	 4.2
	  	 Independent Investigation
	  	10
		  	 4.3
	  	 Effect of Closing
	  	11
			
	 5
	  	     ADDITIONAL AGREEMENTS
	  	11
				
		  	 5.1
	  	 Filing of Memorandum and Articles.
	  	11
		  	 5.2
	  	 Further Action.
	  	11
			
	 6
	  	     CONFIDENTIALITY.
	  	11
				
		  	 6.1
	  	 Disclosure of Terms
	  	11
		  	 6.2
	  	 Permitted Disclosures by the Company
	  	11
		  	 6.3
	  	 Permitted Disclosures by the Investor
	  	11
		  	 6.4
	  	 Legally Required Disclosure
	  	12
		  	 6.5
	  	 Press Releases, Etc
	  	12
		  	 6.6
	  	 Other Information
	  	12
			
	 7
	  	     INDEMNIFICATION.
	  	12
				
		  	 7.1
	  	 Survival
	  	12
		  	 7.2
	  	 Indemnity
	  	12
		  	 7.3
	  	 Limitations on Indemnification
	  	13
		  	 7.4
	  	 Procedure
	  	15
		  	 7.5
	  	 Remedies
	  	15
			
	 8
	  	     MISCELLANEOUS.
	  	16
				
		  	 8.1
	  	 Availability of Legal Advice
	  	16
		  	 8.2
	  	 Conflict
	  	16
		  	 8.3
	  	 Successors and Assigns
	  	16
		  	 8.4
	  	 Counterparts
	  	16
		  	 8.5
	  	 Titles and Subtitles
	  	16
		  	 8.6
	  	 Notices
	  	16
		  	 8.7
	  	 Finder’s Fee
	  	18
		  	 8.8
	  	 Transaction Costs
	  	18
		  	 8.9
	  	 Amendments and Waivers
	  	18
		  	 8.10
	  	 Severability
	  	18

							
		  	 8.11
	  	 Interpretation
	  	18
		  	 8.12
	  	 Entire Agreement
	  	18
		  	 8.13
	  	 Governing Law
	  	19
		  	 8.14
	  	 Dispute Resolution
	  	19

  

	
	SCHEDULE A – Investee Warranties
	SCHEDULE B – Investor Warranties
	SCHEDULE C – Sellers’ Bank Accounts
	SCHEDULE 2.3(a)(iii) – Investor’s Closing Certificate
	SCHEDULE 2.3(b)(vi) – Investees’ Closing Certificate
	EXHIBIT A – Disclosure Schedule
	EXHIBIT B – Form of Memorandum and Articles of Association
	EXHIBIT C – Form of Investor Rights Agreement

 INVESTMENT AGREEMENT 
 THIS INVESTMENT AGREEMENT (this “Agreement”) is made as of June 24, 2008, by and among: 
  

	 	A	China Mass Media International Advertising Corp., an exempted company established and existing under the laws of the Cayman Islands (the “Company”);

  

	 	B	Happy Indian Ocean Limited, an exempted company established and existing under the laws of the Cayman Islands (“Happy Indian”); 

  

	 	C	Arctic Spring Limited, an exempted company established and existing under the laws of the Cayman Islands (“Arctic Spring”; each of Happy Indian and Arctic Spring, a
“Seller” and collectively, the “Sellers”); and 

  

	 	D	Ever Kingdom Limited, a limited liability company established and existing under the laws of the British Virgin Islands (the “Investor”). 

The foregoing shall be hereinafter referred to collectively as the “Parties” and individually as a “Party”.

 WITNESSETH 
 WHEREAS,
Mass Media & Universal International Advertising Co., Ltd., a foreign-invested enterprise established and existing under the laws of the PRC (the “FIE”), engages in the business of providing integrated television
advertising services, including advertising agency services, special events services to China Central Television, and advertisement production and sponsorship services (such business engaged in by the FIE, the “Business”);

 WHEREAS, Universal International Advertising Limited, a limited liability company incorporated under the laws of the British Virgin
Islands (“UIAL”), owns 100% of the equity interest of the FIE, and the Company owns 100% of the equity interest of UIAL; 
 WHEREAS, Happy Indian is the legal and beneficial owner of (i) 70,080 Series A Preferred Shares, representing 14.016% of the issued capital of the Company and (ii) 329,920 Ordinary Shares, representing 65.984% of the issued
capital of the Company; 
 WHEREAS, Arctic Spring is the legal and beneficial owner of (i) 17,520 Series A Preferred Shares,
representing 3.504% of the issued capital of the Company and (ii) 82,480 Ordinary Shares, representing 16.496% of the issued capital of the Company; 
 WHEREAS, the Investor desires to purchase from Happy Indian, and Happy Indian desires to sell to the Investor, 5,840 Series A Preferred Shares (the “Happy Indian Sale Shares”), ,pursuant to the terms
of this Agreement; and 

 WHEREAS, the Investor desires to purchase from Arctic Spring, and Arctic Spring desires to sell to the
Investor, 1,460 Series A Preferred Shares (the “Arctic Spring Sale Shares”; together with the Happy Indian Sale Shares, the “Sale Shares”), pursuant to the terms of this Agreement. 
 NOW, THEREFORE, in consideration of the mutual covenants and undertakings contained herein, and subject to and on the terms and conditions set forth
herein, the Parties hereto agree as follows: 
  

	1	Definitions. As used in this Agreement, the following terms shall have the meanings set forth or referenced below: 

 “Affiliate” means, with respect to a Person, any other Person that, directly or indirectly, Controls, is Controlled by or
is under common Control with such Person. The term “Affiliated” has the meaning correlative to the foregoing. 
 “Agreement” has the meaning set forth in the Preamble. 
 “Aggregate Purchase
Price” means the Happy Indian Purchase Price together with the Arctic Spring Purchase Price. 
 “Arctic
Spring” has the meaning set forth in the Preamble. 
 “Arctic Spring Purchase Price” has the meaning
set forth in Section 2.1. 
 “Arctic Spring Sale Shares” has the meaning set forth in the Recitals.

 “Board of Directors” means the board of directors of the Company. 
 “Business Day” means a day (other than Saturday or Sunday) when banks are open for business in each of the United States
of America, Hong Kong and the PRC. 
 “Centre” has the meaning set forth in Section 8.14(b). 

“Claim” has the meaning set forth in Section 7.4(b). 
 “Claim Notice” has the meaning set forth in Section 7.4(b). 
 “Closing” has the meaning set forth in Section 2.2. 
 “Closing Date” means the date of the Closing. 
 “Company” has the meaning set forth in the Preamble. 
 “Consent” means any consent, approval, authorization, waiver, permit, grant, franchise, concession, agreement, license,
certificate, exemption, order, registration, declaration, filing, report or notice of, with or to any Person. 
  

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 “Contract” means, with respect to any specified Person, all loan
agreements, indentures, letters of credit (including related letter of credit applications and reimbursement obligations), mortgages, security agreements, pledge agreements, deeds of trust, bonds, notes, guarantees, surety obligations, warranties,
licenses, franchises, permits, powers of attorney, purchase orders, leases, and other agreements, contracts, instruments, obligations, offers, commitments, arrangements and understandings, written or oral, to which the specified Person is a party or
by which it or any of its properties or assets may be bound or affected. 
 “Control”,
“Controlled”, “Controlling” or “under common Control with” with respect to any Person means having the ability to direct the management and affairs of such Person, whether through the ownership of
voting securities, by contract or otherwise, and such ability shall be deemed to exist when any Person holds a majority of the outstanding voting securities of such Person. 
 “Disclosing Party” has the meaning set forth in Section 6.4. 
 “Disclosure Schedule” means the all of the Schedules attached hereto as Exhibit A that qualify the Investee
Warranties. 
 “Draft F-1 Registration Statement” means the Company’s draft F-1 registration statement
under the Securities Act as submitted to the SEC on June 3, 2008. 
 “Equity Security” means, with
respect to any specified Person, any shares of any class of capital stock or any other ownership or equity interest in registered capital of such specified Person, however described and whether voting or non-voting. 
 “Financial Statements” has the meaning set forth in Section 10 of Schedule A. 
 “Financing Terms” has the meaning set forth in Section 6.1. 
 “Founder” means Mr. Shengcheng Wang, a Canadian citizen, whose passport number is BA341072. 
 “Governmental Approval” means any Consent of, with or to any Governmental Authority. 
 “Governmental Authority” means any federal, national, supranational, state, provincial, local, or similar government,
governmental, regulatory or administrative authority, agency or commission, any stock exchange or any court, tribunal, judicial or arbitral body, including any governmental authority in the PRC (or any political subdivision thereof such as the
Ministry of Commerce, the State Administration of Industry and Commerce, the State Administration of Foreign Exchange and tax bureau), in each case, having jurisdiction over a Party hereto or a Person contemplated hereby. 
 “Group Companies” means the Company, UIAL and the FIE. 
 “Happy Indian” has the meaning set forth in the Preamble. 
  

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 “Happy Indian Purchase Price” has the meaning set forth in
Section 2.1. 
 “Happy Indian Sale Shares” has the meaning set forth in the Recitals. 
 “Hong Kong” means the Hong Kong Special Administrative Region of the People’s Republic of China. 
 “Indebtedness” as applied to any Person, means, without duplication: (a) all indebtedness for borrowed money;
(b) all obligations evidenced by a note, bond, debenture, letter of credit, draft or similar instrument; (c) that portion of obligations with respect to capital leases that is properly classified as a liability on a balance sheet in
accordance with US GAAP; (d) notes payable and drafts accepted representing extensions of credit; (e) any obligation owed for all or any part of the deferred purchase price of property or services, which purchase price is due more than six
months from the date of incurrence of the obligation in respect thereof; and (f) all indebtedness and obligations of the types described in the foregoing clauses (a) through (e) to the extent secured by any Lien on any property or
asset owned or held by that Person regardless of whether the indebtedness secured thereby shall have been assumed by that Person or is non-recourse to the credit of that Person. 
 “Indemnifiable Losses” has the meaning set forth in Section 7.2(c). 
 “Indemnifying Party” means an Investor pursuant to Section 7.2(b) or an Investee pursuant to Section 7.2(a), as
the case may be. 
 “Indemnitee” means an Investor Indemnitee or an Investee Indemnitee, as the case may be.

 “Intellectual Property” has the meaning set forth in Section 14(a) of Schedule A. 

“Intellectual Property Licenses” has the meaning set forth in Section 14(b) of Schedule A. 
 “Interim Financial Statements” has the meaning set forth in Section 10 of Schedule A. 
 “Investee Indemnitee” has the meaning set forth in Section 7.2(b). 
 “Investees” means the Company and the Sellers. 
 “Investees’ Knowledge” (or similar phrases or expressions) means the actual (but not constructive or imputed)
knowledge of the Investees as of the date of this Agreement (or, with respect to a certificate delivered pursuant to this Agreement, as of the date of delivery of such certificate) and includes the actual (but not constructive or imputed) knowledge
of the Founder as of the date hereof. 
 “Investee Warranties” has the meaning set forth in Section 3.1.

  

 4 

 “Investment Documents” means (a) this Agreement; (b) the
Investor Rights Agreement; and (c) the Memorandum and Articles. 
 “Investor” has the meaning set forth
in the Preamble. 
 “Investor Indemnitee” has the meaning set forth in Section 7.2(a). 
 “Investor Rights Agreement” means the Investor Rights Agreement, to be entered into by and among the Company, the
Investor, the Sellers and others on the Closing Date in the form attached hereto as Exhibit C. 
 “Investor
Warranties” has the meaning set forth in Section 4.1. 
 “Law” means all applicable provisions
of all (a) constitutions, treaties, statutes, laws (including the common law), codes, rules, regulations, ordinances, mandatory guidelines, circulars, orders or implemented policies of any Governmental Authority; and (b) Governmental
Approvals. 
 “Leases” means the real property leases, subleases, licenses and occupancy agreements listed in
Section 12 of the Disclosure Schedule. 
 “Liability” means any debt, liability, commitment or
obligation of any kind, character or nature whatsoever, whether known or unknown, choate or inchoate, secured or unsecured, accrued, fixed, absolute, contingent or otherwise, and whether due or to become due. 
 “Lien” means any mortgage, pledge, deed of trust, hypothecation, right of others, claim, security interest, encumbrance,
burden, title defect, title retention agreement, lease, sublease, license, occupancy agreement, easement, covenant, condition, encroachment, voting trust agreement, security interest, option, right of first offer, negotiation or refusal, proxy,
lien, charge, adverse claim or other restrictions (including, but not limited to, restrictions on transfer), encumbrances or limitations of any nature whatsoever, including, but not limited to, such Liens as may arise under any Contract. 

“Major Contracts” has the meaning set forth in Section 13(b) of Schedule A. 
 “Material Adverse Effect” means any: (a) event, occurrence, fact, condition, change, development or effect that is
materially adverse to the consolidated results of operations or the consolidated financial condition of the Group Companies, taken as a whole; provided, however, that none of the following, either alone or in combination,
shall be considered in determining whether there has been a breach of a representation, warranty, covenant or agreement that is qualified by the term “Material Adverse Effect”: (i) events, circumstances or changes, including legal and
regulatory changes, that generally affect the industries in which the Group Companies operate; (ii) general economic or political conditions or events, circumstances, changes or effects affecting the securities markets generally;
(iii) changes arising from the consummation of the transactions contemplated by, or the announcement of the execution of, the Investment Documents, including (A) any actions of competitors; (B) any actions taken by or losses of
employees; or (C) any delays or cancellations of orders for products or services; (iv) any 

  

 5 

 
reduction in the price of services or products offered by any Group Company in response to the reduction in price of comparable services or products offered
by a competitor; (v) any circumstance, change or effect that results from any action taken pursuant to or in accordance with the Investment Documents or at the request of the Investor; and (vi) changes caused by a material worsening of
current conditions caused by acts of terrorism or war (whether or not declared) occurring after the date hereof. 
 “Memorandum and Articles” means the Amended and Restated Memorandum and Articles of Association of the Company attached hereto as Exhibit B. 
 “Notice” has the meaning set forth in Section 7.4(a). 
 “Ordinary Course of Business” means, with respect to the Business or operations of any of the Group Companies, the
ordinary and usual course consistent with its past practices. 
 “Ordinary Shares” means the ordinary shares,
par value US$0.001 per share, in the capital of the Company. 
 “Parties” has the meaning set forth in the
Preamble. 
 “Permitted Liens” means (a) statutory liens for current Taxes not yet due or delinquent (or
which may be paid without interest or penalties) or the validity or amount of which is being contested in good faith by appropriate proceedings; (b) mechanics’, carriers’, workers’, repairers’ and other similar liens arising
or incurred in the Ordinary Course of Business relating to obligations as to which there is no default on the part of any Investee or the validity or amount of which is being contested in good faith by appropriate proceedings, or pledges, deposits
or other liens securing the performance of bids, trade contracts, leases or statutory obligations (including workers’ compensation, unemployment insurance or other social security legislation); (c) zoning, entitlement, conservation
restriction and other land use and environmental regulations by Governmental Authorities which do not materially interfere with the present use of the assets of the Group Companies; (d) all covenants, conditions, restrictions, easements,
charges, rights-of-way, other Liens and similar matters of record set forth in any state, local or municipal franchise of the Group Companies which do not materially interfere with the present use of the assets of the Group Companies; and
(e) all other Liens that would not have a Material Adverse Effect. 
 “Person” means any individual,
Governmental Authority, corporation, partnership, joint venture, limited partnership, proprietorship, association, limited liability company, firm, trust, estate, unincorporated organization or other enterprise or entity. 
 “PRC” means the People’s Republic of China, but, solely for purposes of this Agreement, excluding Hong Kong, the
Macau Special Administrative Region of the People’s Republic of China and Taiwan. 
  

 6 

 “Related Party” means, in respect of a Group Company, any of its
Affiliates, Shareholders, directors or officers, or any Person Controlled by the Founder. 
 “Representatives” means, with respect to each Party, such Party’s officers, directors, employees, counsel, investment bankers, consultants, accountants and other authorized representatives. 
 “Sale Shares” has the meaning set forth in the Recitals. 
 “SEC” means the U.S. Securities and Exchange Commission or any successor agency. 
 “Securities Act” means the U.S. Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder,
as in effect from time to time. 
 “Sellers” has the meaning set forth in the Preamble. 
 “Series A Preferred Shares” means the Series A convertible redeemable preferred shares, par value US$0.001 per share, in
the capital of the Company, with the rights and privileges attached to such shares as set forth in the Memorandum and Articles and the Investor Rights Agreement. 
 “Shareholder” means, with respect to any specified Person, a holder of the capital stock or share capital of such
specified Person. 
 “Share Option Scheme” means, with respect to any specified Person, any share option,
share appreciation, share purchase, phantom share or other equity-based plan, arrangement, agreement, policy or understanding, whether written or unwritten, that provides or may provide benefits or compensation in respect of any employee, officer,
director or consultant or former employee, officer, director or consultant of that specified Person or an Affiliate thereof or the beneficiaries or dependents of any such employee or former employee, officer, director or consultant. 
 “Shares” means any Ordinary Shares or Series A Preferred Shares. 
 “Subsidiary” means, with respect to any specified Person, any Person of which the specified Person, directly or
indirectly, owns more than fifty (50%) of the issued and outstanding share capital, voting interests or registered capital. 
 “Tax” means any income, franchise, capital stock, profits, windfall profits, gross receipts, sales, use, value added, transfer, registration, stamp, premium, excise, customs duties, severance, environmental, real property,
personal property, ad valorem, occupancy, license, occupation, employment, payroll, social security, disability, unemployment, workers’ compensation, withholding, estimated or other similar tax, levy, duty, fee, assessment or other governmental
charge or deficiencies thereof (including all interest, surcharges and penalties thereon and additions thereto). 
  

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 “Tax Return” means any return, report declaration, filing form, claim
for refund or information return or statement relating to Tax, including any schedule or attachment thereto and any amendment thereof. 
 “UNCITRAL Arbitration Rules” means the arbitration rules of United Nations Commission on International Trade Law. 
  

	2	Purchase and Sale. 

 2.1 Purchase and Sale.
Upon the terms and subject to the conditions set forth in this Agreement, the Parties agree that at the Closing, (a) Happy Indian shall sell to the Investor, and the Investor shall purchase from Happy Indian, the Happy Indian Sale Shares at
an aggregate price of US$4,000,000 (the “Happy Indian Purchase Price”); and (b) Arctic Spring shall sell to the Investor, and the Investor shall purchase from Arctic Spring, the Arctic Spring Sale Shares at an aggregate price
of US$1,000,000 (the “Arctic Spring Purchase Price”). 
 2.2 Closing. The closing of the transactions set forth in
Section 2.1 (the “Closing”) shall take place at 10:00 a.m., Hong Kong time at the offices of Shearman & Sterling LLP, 12/F Gloucester Tower, The Landmark, 15 Queen’s Road, Central, Hong Kong (or at such other time
or at such other place as may be mutually agreed by the Parties) on the date hereof. The Parties agree that all transactions at the Closing shall be deemed to occur simultaneously and none of them shall be required or deemed to have occurred until
the completion of the Closing. 
 2.3 Closing Deliveries. 
 (a) Subject to Section 2.3(e), at the Closing, the Investor shall deliver, or cause to be delivered, to the Sellers, the following:

 (i) the Aggregate Purchase Price by wire transfer of immediately available funds to the bank account(s) of the Sellers set
forth in Schedule C; 
 (ii) a duly executed counterpart of the Investor Rights Agreement executed by the Investor; and

 (iii) a certificate of the Investor certifying (A) the Investor’s authorization of the execution and delivery of
the Investment Documents and the consummation of the transactions contemplated hereby and thereby, and (B) as to such other matters set forth therein, in the form attached as Schedule 2.3(a)(iii) hereto. 
 (b) Subject to Section 2.3(d), at the Closing, the Sellers shall deliver, or cause to be delivered, to the Investor the following:

 (i) the original share certificates representing all of the Sale Shares, accompanied by instruments of transfer pertaining
to the Sale Shares, duly signed by each of the Sellers; 
  

 8 

 (ii) copies of the written resolutions of the Board of Directors and Shareholders of the
Company (A) approving the entering into of this Agreement and the Investor Rights Agreement and the transactions contemplated hereby and thereby; (B) adopting the Memorandum and Articles; and (C) approving the transfer of the Sale
Shares to the Investor; 
 (iii) copies of the written resolutions of the boards of directors of the Sellers approving the
transfer of the Sale Shares to the Investor; 
 (iv) a certified copy of the Memorandum and Articles; 
 (v) a duly executed counterpart of the Investor Rights Agreement executed by the Company, the Sellers and the Founder; 
 (vi) a certificate of the Sellers certifying (A) their authorization of the execution and delivery of the Investment Documents and
the consummation of the transactions contemplated hereby and thereby, and (B) as to such other matters set forth therein, in the form attached as Schedule 2.3(b)(vi) hereto; 
 (vii) a certified copy of a certificate of good standing of the Company issued by the Registry of Companies of the Cayman Islands;

 (viii) a certified copy of a certificate of incumbency of UIAL issued by its registered agent; 
 (ix) a legal opinion in an agreed form, dated as of the Closing Date, issued by Maples and Calder, the Company’s Cayman Islands
counsel, so far as the laws of the Cayman Islands are concerned, in respect of the following: (A) due incorporation an good standing of the Company; (B) the authority and power of the Company to enter into and perform its obligations under
this Agreement and the Investor Rights Agreement; (C) the validity and enforceability of this Agreement and the Investor Rights Agreement as against the Company; (D) the effectiveness of the Memorandum and Articles; and (E) due and
valid issuance of the Sale Shares; and 
 (x) a legal opinion in an agreed form, dated as of the Closing Date, issued by
Commerce & Finance Law Offices, the Company’s PRC counsel, so far as the laws of the PRC are concerned, in respect of, among other things: (A) due incorporation of the FIE; and (B) compliance with applicable laws. 

(c) As promptly as practicable after the Closing, the Sellers shall deliver, or cause to be delivered, to the Investor a copy of the
register of members of the Company, as certified by the registered agent of the Company and updated to reflect the transfer of the Sale Shares to the Investor. 
 (d) If the Investor fails or is unable to perform any of its obligations required to be performed by it under Section 2.3(a) on the
Closing Date, the Sellers shall not be obliged to complete the sale of any of the Sale Shares and may, in their absolute 

  

 9 

 
discretion, by written notice to the Investor elect to defer the closing of the sale of the Sale Shares by not more than twenty (20) days to such other
date as they may specify in such notice, in which event the provisions of this Section 2.3(d) shall apply, mutatis mutandis, if the Investor fails or is unable to perform any such obligations on such other date. 
 (e) If the Sellers fail or are unable to perform any of their obligations required to be performed by them under Section 2.3(b) on
the Closing Date, the Investor shall not be obligated to complete the purchase of any of the Sale Shares and may, in its absolute discretion, by written notice to the Sellers, elect to defer the closing of the purchase of the Sale Shares by not more
than twenty (20) days to such other date as it may specify in such notice, in which event the provisions of this Section 2.3(e) shall apply, mutatis mutandis, if the Sellers fail or are unable to perform any such obligations on such
other date. 
  

	3	Representations and Warranties of the Investees. 

 3.1 Representations and Warranties of the Investees. The Investees hereby, jointly and severally, represent and warrant to the Investor that, except as disclosed in the Disclosure Schedule, as of the date hereof, each of the
statements set forth in Schedule A attached to this Agreement (a) that are not qualified as to “materiality” is true and correct in all material respects and (b) that are qualified as to “materiality” is true and
correct (the “Investee Warranties”). 
 3.2 Effect of Closing. The Investee Warranties and all other provisions of
this Agreement insofar as the same shall not have been performed at the Closing shall not be limited, waived, extinguished or otherwise affected by the Closing, or by any other event or matter whatsoever, except by a specific written waiver or
release by the Investor. No event or matter arising after the Closing Date shall qualify or operate as disclosure against the Investee Warranties. 
  

	4	Representations and Warranties of the Investor. 

 4.1 Representations and Warranties of the Investor. The Investor hereby represents and warrants to each of the Investees that, as of the date hereof, each of the statements set forth in Schedule B attached to this Agreement
(a) that are not qualified as to “materiality” is true and correct in all material respects and (b) that are qualified as to “materiality” is true and correct (the “Investor Warranties”). 
 4.2 Independent Investigation. The Investor has conducted its own independent investigation, review and analysis of the business, operations,
assets, liabilities, results of operations, financial condition, software, technology and prospects of the Business, which investigation, review and analysis was performed by the Investor and its Affiliates and Representatives. The Investor
acknowledges that it and its Affiliates and Representatives have been provided sufficient access to the personnel, properties, premises and records of the Business for such purpose. In entering into this Agreement, the Investor acknowledges that it
has relied solely upon the aforementioned investigation, review and analysis and not on any factual representations or opinions of any of the Investees or their respective Representatives (except the specific representations and warranties of the
Investees set forth in Section 3 and Schedule A attached thereto). 
  

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 4.3 Effect of Closing. The Investor Warranties and all other provisions of this Agreement insofar
as the same shall not have been performed at the Closing shall not be limited, waived, extinguished or otherwise affected by the Closing, or by any other event or matter whatsoever, except by a specific written waiver or release by the Company or
the Sellers, as the case may be. No event or matter arising after the Closing Date shall qualify or operate as disclosure against the Investor Warranties. 
  

	5	Additional Agreements. 

 5.1 Filing of Memorandum
and Articles. The Company shall file the Memorandum and Articles with the Registrar of the Companies of the Cayman Islands as promptly as practicable following the Closing. 
 5.2 Further Action. The parties hereto shall use all reasonable efforts to take, or cause to be taken, all appropriate action, to do or cause to
be done all things necessary, proper or advisable under applicable Law, and to execute and deliver such documents and other papers, as may be required to carry out the provisions of this Agreement and consummate and make effective the transactions
contemplated by this Agreement. 
  

	6	Confidentiality. 

 6.1 Disclosure of Terms.
The terms and conditions of this Agreement and any term sheet, memorandum of understanding, letter of intent or any other agreement entered into pursuant to the transactions contemplated hereby (including the other Investment Documents), all
exhibits and schedules attached hereto and thereto, and the transactions contemplated hereby and thereby (collectively, the “Financing Terms”), including their existence, shall be considered confidential information and shall not be
disclosed by any Party hereto to any third party except to the extent required by Law to be disclosed in the Company’s prospectus in connection with the Company’s proposed initial public offering or permitted in accordance with the
provisions set forth below in this Section 6. 
 6.2 Permitted Disclosures by the Company. Notwithstanding the foregoing, the
Company may, after the Closing, disclose the existence of the investment and the identity of the Investor to any Person in connection with the Company’s proposed initial public offering or the Company’s financing, in each case only where
such Person is under non-disclosure obligations substantially similar to those set forth in this Section 6. 
 6.3 Permitted
Disclosures by the Investor. Notwithstanding the foregoing and subject to any restriction under Law, the Investor shall be entitled to disclose the Financing Terms to any of its Affiliates, employees, any investor or potential investor in the
Investor or its shareholders, or any professional advisors or financing sources on a reasonable-need-to-know basis and in each case only where such Persons are under non-disclosure obligations substantially similar to those set forth in this
Section 6. 
  

 11 

 6.4 Legally Required Disclosure. In the event that any Party is requested by Governmental
Authorities or becomes legally required by Law to disclose the existence of this Agreement or content of any of the Financing Terms, such Party (the “Disclosing Party”) shall provide the other Parties with prompt written notice of
that fact and shall consult with the other Parties regarding such disclosure. The Disclosing Party shall, to the extent possible and with the cooperation and reasonable efforts of the other Parties, seek a protective order, confidential treatment or
other appropriate remedy. In such event, the Disclosing Party shall furnish only that portion of the information which is legally required to be disclosed and shall exercise reasonable efforts to obtain reliable assurance that confidential treatment
will be accorded such information. 
 6.5 Press Releases, Etc. No press release or public announcements regarding the Investor’s
investment in the Company as contemplated in this Agreement may be made by any Party in any press conference, professional or trade publication, marketing materials or otherwise to the general public (other than by the Company in any draft
prospectus or other offering documents, road show documents or related marketing materials prepared for purposes of and in connection with the Company’s initial public offering) without the prior written consent of the other Parties.

 6.6 Other Information. The provisions of this Section 6 shall be in addition to, and not in substitution for, the provisions
of any separate non-disclosure agreement executed by any of the Parties hereto with respect to the transactions contemplated hereby. 
  

	7	Indemnification. 

 7.1 Survival. The
representations, warranties and covenants of the Investees and the Investor contained in or made pursuant to this Agreement shall survive the execution and delivery of this Agreement until the earlier of (a) the date that is eighteen
(18) months after the Closing Date and (b) the date on which the Investor holds fifty percent (50%) or less of the Sale Shares; provided, however, that any claim made with reasonable specificity by the party seeking to
be indemnified within the aforementioned period shall survive until such claim is finally and fully resolved. 
 7.2 Indemnity.

 (a) Indemnification by the Investees. The Investees shall, jointly and severally, indemnify and hold harmless
the Investor and, if applicable, the Investor’s Affiliates, officers, directors, employees, agents, successors and assigns (each, an “Investor Indemnitee”), against any and all Indemnifiable Losses actually suffered or incurred
by them, arising out of or resulting from: 
 (i) any breach of the Investee Warranties or any other certificate or document
delivered by any of the Investees pursuant to this Agreement, other than those, if any, that have been waived in writing by the Investor; or 
 (ii) any breach or violation of or failure to fully perform any covenant, agreement, undertaking or obligation of any of the Investees set forth in this Agreement, other than those, if any, that have been waived in
writing by the Investor. 
  

 12 

 (b) Indemnification by the Investor. The Investor agrees to indemnify and hold
harmless any of the Investees, and, if applicable, their respective Affiliates, officers, directors, employees, agents, successors and assigns (each, an “Investee Indemnitee”), against any and all Indemnifiable Losses actually
suffered or incurred by them, arising out of or resulting from: 
 (i) any breach of the Investor Warranties or any other
certificate or document delivered by the Investor pursuant to this Agreement, other than those, if any, that have been waived in writing by the Investees; or 
 (ii) any breach or violation of or failure to fully perform any covenant, agreement, undertaking or obligation of the Investor set forth
in this Agreement, other than those, if any, that have been waived in writing by the Investees. 
 (c) For purposes of this
Section, “Indemnifiable Losses” means, with respect to any Indemnitee, all losses, damages, claims, costs and expenses, interest, awards, judgments and penalties (including reasonable attorneys’ and consultants’ fees and
expenses) actually suffered or incurred by an Indemnitee. For all purposes of this Section 7.2, “Indemnifiable Losses” shall be net of (i) any insurance or other recoveries payable to or received by an Indemnitee or its
Affiliates in connection with the facts giving rise to the right of indemnification; and (ii) any Tax benefit available to the Indemnitee or its Affiliates arising in connection with the accrual, incurrence or payment of any such Indemnifiable
Losses. 
 7.3 Limitations on Indemnification. Notwithstanding anything to the contrary in this Agreement: 
 (a) an Indemnifying Party shall not be liable to an Indemnitee for any Indemnifiable Losses and no Party hereto shall be liable to any
other Party hereto for any breach of this Agreement unless and only to the extent that the aggregate of Indemnifiable Losses for such Indemnifying Party incurred under this Agreement exceeds US$1,000,000; provided, however, that no
losses may be claimed under Section 7.2 by any Indemnitee or shall be reimbursable by or shall be included in calculating the aggregate Indemnifiable Losses set forth above other than losses in excess of US$500,000 resulting from any single
claim or aggregated claims arising out of the same facts, events or circumstances; 
 (b) the maximum aggregate amount of
Indemnifiable Losses that may be recovered by the Investor (together with the Investor Indemnitees) from an Indemnifying Party under this Agreement shall be US$1,500,000; 
 (c) an Indemnifying Party shall not have any liability under any provision of this Agreement or any other Investment Document for any
punitive, incidental, consequential, special or indirect damages, including loss of future revenue or income, or loss of business reputation or opportunity relating to the breach or alleged breach of this Agreement or any other Investment Documents;

  

 13 

 (d) no breach by any Investee of any representation, warranty, covenant or agreement in
this Agreement shall be deemed to be a breach of this Agreement for any purpose hereunder, and no Investor Indemnitee shall have any claim or recourse against any of the Investees or their officers, directors, employees, Affiliates, controlling
persons, agents, advisors or representatives with respect to such breach if the Investor Indemnitee had, prior to the execution of this Agreement, actual knowledge of such breach or the facts, matters, events or circumstances giving rise to such
breach; 
 (e) an Indemnifying Party shall not be liable in respect of any claim for Indemnifiable Loss to the extent that
such claim is attributable to, or such claim is increased as a result of, any legislation not in force at the date hereof or to any change of law, regulation, directive, requirement or administrative practice or any change in rates of tax, which in
each case is not in force at the date hereof; 
 (f) no Indemnitee shall be entitled to recover damages or obtain payment,
reimbursement, restitution or indemnity more than once in respect of any one shortfall, damage, deficiency, breach or other set of circumstances which give rise to one or more claims for Indemnifiable Loss, and for this purpose recovery by
(i) an Investor Indemnitee shall be deemed to be a recovery by each of the Investor Indemnitees and (ii) by an Investee Indemnitee shall be deemed to be a recovery by each of the Investee Indemnitees; 
 (g) if an Indemnifying Party pays to an Indemnitee an amount in discharge of a claim for Indemnifiable Loss and the Indemnitee or any
Group Company subsequently recovers (whether by payment, discount, credit, relief or otherwise) from a third party (including any Tax authority) a sum which is referable to the matter giving rise to the claim or obtains a relief which is so
referable, the Indemnitee shall forthwith repay to the Indemnitee: 
 (i) an amount equal to the sum recovered from the third
party (or the value of the relief obtained, calculated by reference to the amount saved); or 
 (ii) if the figure resulting
under paragraph (i) above is greater than the amount paid by the Indemnifying Party to the Indemnitee in respect of the relevant claim or the aggregate payments previously made by the Indemnifying Party in respect of all claims for Indemnifiable
Loss by the Indemnitee, such lesser amount as shall have been so paid by the Indemnifying Party; and 
 (h) if, at any time,
an Investor exercises its rights under Sections 12.1(b) (in connection with a Put Event described in Section 12.1(d)(ii)(1) or (4) of the Investor Rights Agreement) and/or 12.3 of the Investor Rights Agreement, then upon the consummation
of a transfer of the Investor’s Shares under Section 12.1 thereof or a recovery from the Founder under Section 12.3 thereof, the Investor (and the Investor Indemnitees) shall have no right to seek indemnification under
Section 7.2, specific performance under Section 7.5, or any other remedy at law or otherwise with respect to any breach, violation or non-performance of any representation, warranty, covenant or agreement contained in any of the Investment
Documents (other than Sections 12.1 and 12.3 of the Investor Rights Agreement). 
  

 14 

 7.4 Procedure. 
 (a) An Indemnitee shall give the Indemnifying Party written notice (a “Notice”) of any matter which an Indemnitee has
determined has given or could give rise to a right of indemnification under this Agreement, within thirty (30) days of such determination, stating the amount of the Indemnifiable Losses, if known, and method of computation thereof, and
containing a reference to the provisions of this Agreement in respect of which such right of indemnification is claimed or arises. 
 (b) If an Indemnitee shall receive notice of any action, audit, claim, demand or assessment (each, a “Claim”) against it which shall give rise to a claim for Indemnifiable Losses under this Section 7, within thirty
(30) days of the receipt of such notice, the Indemnitee shall give the Indemnifying Party written notice of such Claim (a “Claim Notice”); provided, however, that the failure to provide such Claim Notice shall not
release the Indemnifying Party from any of its obligations under this Section 7 except to the extent that such failure results in a detriment to the Indemnifying Party and shall not relieve the Indemnifying Party from any other liability it may
have to any Indemnitee other than under this Section 7. The Indemnifying Party shall be entitled to assume and control the defense of such Claim at its expense and through counsel of its choice if it gives notice of its intention to do so to
the Indemnitee within fifteen (15) days of the receipt of such Claim Notice from the Indemnitee. If the Indemnifying Party elects to undertake any such defense against a Claim, the Indemnitee may participate in such defense at its own expense.
The Indemnitee shall cooperate with the Indemnifying Party in such defense and make available to the Indemnifying Party, at the Indemnifying Party’s expense, all witnesses, pertinent records, materials and information in the Indemnitee’s
possession or under the Indemnitee’s control relating thereto as is reasonably required by the Indemnifying Party. If the Indemnifying Party elects to direct the defense of any such Claim or proceeding, the Indemnitee shall not pay, or permit
to be paid, any part of such Claim unless the Indemnifying Party consents in writing to such payment or unless the Indemnifying Party withdraws from the defense of such Claim or unless a final judgment from which no appeal may be taken by or on
behalf of the Indemnifying Party is entered against the Indemnitee for such Claim. If the Indemnitee assumes the defense of any such Claim or proceeding pursuant to this Section 7.4 and proposes to settle such Claim or proceeding prior to a
final judgment thereon or to forego any appeal with respect thereto, then the Indemnitee shall give the Indemnifying Party prompt written notice thereof and the Indemnifying Party shall have the right to participate in the settlement or assume or
reassume the defense of such Claim or proceeding. 
 (c) No claim shall be brought by any Indemnitee against the Indemnifying
Party unless the Notice or Claim Notice, as the case may be, is delivered to the Indemnifying Party prior to the earlier of (a) the date that is eighteen (18) months after the Closing Date and (b) the date on which the Investor holds
fifty percent (50%) or less of the Sale Shares. 
 7.5 Remedies. The Parties acknowledge and agree that following the Closing,
the indemnification provisions of Section 7.2 shall be the sole and exclusive remedies of a Party for any breach by another Party of the representations and warranties in 

  

 15 

 
this Agreement and for any failure by such other Party to perform and comply with any covenants and agreements in this Agreement, except that if any of the
provisions of this Agreement are not performed in accordance with their terms or are otherwise breached, the Parties shall be entitled to specific performance of the terms thereof in addition to any other remedy at law or equity. Each Party shall
take all reasonable steps to mitigate its Indemnifiable Losses upon and after becoming aware of any event which could reasonably be expected to give rise to any Indemnifiable Losses. 
  

	8	Miscellaneous. 

 8.1 Availability of Legal
Advice. The Parties acknowledge that each Party has had the opportunity to have the advice of their respective counsel. The Parties have participated jointly in the negotiating and drafting of this Agreement. In the event that an ambiguity or a
question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provisions of
this Agreement. 
 8.2 Conflict. If and to the extent that there are inconsistencies between the provisions of this Agreement and
those of the Memorandum and Articles, the terms of this Agreement shall prevail as among the Investor and the Sellers only, who hereby undertake to take all actions necessary or advisable, as promptly as practicable after the discovery of such
inconsistency, to cause the Company to amend the Memorandum and Articles so as to eliminate such inconsistency to the largest extent as permitted by Law. 
 8.3 Successors and Assigns. Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the Parties
hereto whose rights or obligations hereunder are affected by such terms and conditions. This Agreement and the rights and obligations herein may not be assigned by operation of law or otherwise without the express written consent of the Parties
(which consent may be granted or withheld in the sole discretion of a Party); provided that the Investor may assign its rights and obligations herein to any Affiliate without such consent upon prior written notice to the other Parties. Nothing in
this Agreement, express or implied (including the provisions of Section 7 relating to indemnified persons), is intended to confer upon any Person other than the Parties hereto or their respective permitted successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. 
 8.4
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. Counterparts transmitted by facsimile shall be
deemed to be originals. 
 8.5 Titles and Subtitles. The titles and subtitles used in this Agreement, including those used in any
schedules and exhibits hereto, are used for convenience only and are not to be considered in construing or interpreting this Agreement. 
 8.6 Notices. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party hereto to be notified; (b) when sent by confirmed facsimile if sent
during normal business hours of the 

  

 16 

 
recipient, and if not, then on the next Business Day; (c) five (5) days after having been sent by registered or certified mail, return receipt
requested, postage prepaid; or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the parties hereto at the
following addresses (or at such other address as a party may designate by ten (10) days advance written notice to the other parties hereto): 
 if to the Company, to: 
 6/F Tower B, Corporate Square 
 No. 35 Finance Street, Xicheng District 
 Beijing 100032 
 P. R. China 

			
	Fax          :	 	+86 10 8809 1088
	Attention :	 	Mr. Eric Cheung

 with a copy to: 
 Shearman & Sterling LLP 
 12th Floor, East Tower 
 Twin Towers, B-12
Jianguomenwai Dajie 
 Beijing 100022 

			
	Fax          :	 	+86 10 6563 6000
	Attention :	 	Alan Seem, Esq.

 if to Happy Indian or Arctic Spring, to: 
 c/o The Secretary 
 PO Box 300 
 8034 Zurich 
 Switzerland 

			
	Fax          :	 	+41 44 384 7201
	Attention :	 	Ms. Simone von Graffenried Simperl

 if to the Investor, to: 
 Room 901-903, Harbour Centre 
 25 Harbour
Road 
 Wanchai, Hong Kong 

			
	Fax          :	 	+852 2524 7158
	Attention :	 	Mr. Kenneth Kon / Ms. Bonnie Chan

  

 17 

 8.7 Finder’s Fee. Each Party represents that neither it nor its Affiliates will be obligated
for any finder’s fee or commission in connection with the transactions contemplated hereby. The Investor agrees to indemnify and hold harmless the Investees from any liability for any commission or compensation in the nature of a
finder’s fee (and the costs and expenses of defending against such liability or asserted liability) for which the Investor or any of its officers, partners, employees or representatives are responsible. The Investees agrees to indemnify and
hold harmless the Investor from any liability for any commission or compensation in the nature of a finder’s fee (and the costs and expenses of defending against such liability or asserted liability) for which any Investee or any of its
officers, employees or representatives is responsible. 
 8.8 Transaction Costs. Each Party shall be responsible for all costs and
expenses incurred by such Party and its advisors in connection with the negotiation, preparation, execution and completion of this Agreement and the other Investment Documents and all transactions contemplated hereby and thereby. If any action at
law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing Party shall be entitled to reasonable attorney’s fees, costs and necessary disbursements in addition to any other relief to which such Party may
be entitled. 
 8.9 Amendments and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement
may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Investor and the Investees. Any waiver of any term or condition shall not be construed as a waiver of any
subsequent breach or a subsequent waiver of the same term or condition, or a waiver of any other term or condition of this Agreement. The failure of a Party hereto to assert any of its rights hereunder shall not constitute a waiver of any of such
rights. 
 8.10 Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by
any Law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect for so long as the economic or legal substance of the transactions contemplated by this Agreement is not affected in any
manner materially adverse to any Party hereto. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the
original intent of the Parties as closely as possible in an acceptable manner in order that the transactions contemplated by this Agreement are consummated as originally contemplated to the greatest extent possible. 
 8.11 Interpretation. Unless the context requires otherwise, all words used in this Agreement in the singular number shall extend to and include
the plural; all words in the plural number shall extend to and include the singular; and all words in any gender shall extend to and include all genders. 
 8.12 Entire Agreement. This Agreement and the documents referred to herein, together with all schedules and exhibits hereto and thereto, constitute the entire agreement among the Parties hereto with respect to
the subject matters hereof and no Party shall be liable or bound to any other Party in any manner by any warranties, representations, or covenants except as specifically set forth herein or therein; provided, however, that nothing in
this Agreement shall be deemed to terminate or supersede the provisions of 

  

 18 

 
any confidentiality and non-disclosure agreements executed by the Parties hereto prior to the date of this Agreement, all of which agreements shall continue
in full force and effect until terminated in accordance with their respective terms. 
 8.13 Governing Law. This Agreement shall be
governed by and construed under the laws of The State of New York, the United States of America, without regard to principles of conflicts of law thereunder. 
 8.14 Dispute Resolution. 
 (a) Any dispute, controversy or claim arising out of or
relating to this Agreement, or the interpretation, breach, termination or validity hereof, shall be resolved through consultation. Such consultation shall begin immediately after one party hereto has delivered to the other parties hereto a written
request for such consultation. If within thirty (30) days following the date on which such written request is given the dispute cannot be resolved, the dispute shall be settled by arbitration in Hong Kong under the UNCITRAL Arbitration Rules in
accordance with the HKIAC Procedures for the Administration of International Arbitration in force as at the date of this Agreement to the extent not conflicting with the provisions of this Section 8.14. 
 (b) The arbitration shall be conducted in Hong Kong under the auspices of the Hong Kong International Arbitration Centre (the
“Centre”). There shall be three (3) arbitrators. The claimant and the respondent shall each select one arbitrator within thirty (30) days after giving or receiving the demand for arbitration. Such arbitrators shall be
freely selected, and the parties shall not be limited in their selection to any prescribed list. The Chairman of the Centre shall select the third arbitrator, who shall be qualified to practice law in the State of New York. If any party does
not appoint an arbitrator who has consented to participate within thirty (30) days after selection of the first arbitrator, the relevant appointment shall be made by the Chairman of the Centre. 
 (c) The arbitration proceedings shall be conducted in English. The arbitrators shall decide any dispute submitted by the parties to the
arbitration strictly in accordance with the substantive law of The State of New York and shall not apply any other substantive law. 
 (d) Each party hereto shall cooperate with the other parties in making full disclosure of and providing complete access to all information and documents requested by the other parties in connection with such arbitration proceedings,
subject only to any confidentiality obligations binding on such party. 
 (e) The award of the arbitration tribunal shall be
final and binding upon the disputing parties, and each party may apply to a court of competent jurisdiction for enforcement of such award. 
  

 19 

 (f) Each party shall be entitled to seek preliminary injunctive relief, if possible, from
any court of competent jurisdiction pending the constitution of the arbitration tribunal. 
 [The remainder of this page has been left
intentionally blank; signatures follow] 
  

 20 

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

  

							
		 	COMPANY:	 	CHINA MASS MEDIA INTERNATIONAL ADVERTISING CORP.
				
		 		 	By:	 	 /s/ Shengcheng Wang

		 		 	Name:	 	
		 		 	Title:	 	

 Signature Page to Investment Agreement 

							
		 	SELLERS:	 	HAPPY INDIAN OCEAN LIMITED
				
		 		 	By:	 	/s/ RTC Administrator Limited
		 		 	Name:	 	
		 		 	Title:	 	
			
		 		 	ARCTIC SPRING LIMITED
				
		 		 	By:	 	/s/ RTC Administrator Limited
		 		 	Name:	 	
		 		 	Title:	 	

 Signature Page to Investment Agreement 

							
		 	INVESTOR:	 	EVER KINGDOM LIMITED
				
		 		 	By:	 	 /s/ Kenneth H.K. Kon

		 		 	Name:	 	
		 		 	Title:	 	

 Signature Page to Investment Agreement 

 SCHEDULE A 
 INVESTEE WARRANTIES 
 1. Corporate Status. Each of the Sellers and the Group Companies is duly
organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation. Each of the Group Companies has all necessary corporate power and authority to own, operate or lease the properties and assets now owned,
operated or leased by it and to carry on its business as it has been and is currently conducted. True and complete copies of the current constituent documents of each of the Group Companies have been made available to the Investor. 
 2. Power and Authority; Authorization. 
 (a) Each of the Sellers and the Company has all necessary corporate power and authority to execute and deliver this Agreement and each other Investment Document to which it is a party, and to perform its obligations hereunder and thereunder
and to consummate the transactions contemplated hereby and thereby. 
 (b) The execution and delivery of this Agreement and each other
Investment Document to which the Company is a party, the performance by the Company of its obligations hereunder and thereunder and the consummation by the Company of the transactions contemplated hereby and thereby have been duly authorized by all
requisite corporate action of the Company. 
 (c) The adoption of the Memorandum and Articles has been duly authorized by all requisite
corporate action of the Company and its Shareholders. 
 3. Enforceability. 
 (a) Each of the Investees has duly executed and delivered this Agreement and each other Investment Document to which such Investee is a party. 

(b) Each of the Investment Documents to which an Investee is a party (assuming due authorization, execution and delivery of such Investment Documents
by the Investor) constitutes the legal, valid and binding obligations of such Investee, enforceable against such Investee in accordance with their respective terms, except that enforcement thereof may be limited by (i) bankruptcy laws and
insolvency laws and by other laws affecting the rights of creditors; or (ii) laws relating to the availability of specific performance, injunctive relief or other equitable remedies or general equity principles. 
 4. Non-Contravention. The execution, delivery and performance by each Investee of this Agreement and each other Investment Document to which such
Investee is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not: 
 (a) conflict with,
contravene, result in a violation or breach of or default (with or without the giving of notice or the lapse of time or both); or 
  

 SCH A-1 

 (b) result in the creation of any Lien or any obligation to create any Lien upon any of the properties or
assets of the Investees (other than (i) the Liens as contemplated by this Agreement; or (ii) any Permitted Lien); 
 in each case under
(A) any Law applicable to the Investees or any of their respective properties or assets, (B) the organizational documents of the Investees or (C) any Contract, or any other agreement or instrument to which an Investee is a party or by
which any of its properties or assets may be bound, except in the case of (A) and (C), as would not materially or adversely affect the ability of such Investee to carry out its obligations under, and to consummate the transactions contemplated
by, this Agreement or the other Investment Documents, or otherwise have a Material Adverse Effect. 
 5. Capitalization. 

(a) The authorized capital of the Company consists of (i) 900,000,000 ordinary shares with a par value of US$0.001 each, and (ii) 100,000,000
convertible redeemable Series A preferred shares with a par value US$0.001 each. Immediately prior to the Closing, the issued and outstanding shares in the capital of the Company are held by the Sellers as follows: (i) Happy Indian is the
registered owner of 329,920 Ordinary Shares and 70,080 convertible redeemable Series A preferred shares, and (ii) Arctic Spring is the registered owner of 82,480 Ordinary Shares and 17,520 convertible redeemable Series A preferred shares.

 (b) The authorized share capital of UIAL consists of 50,000 shares with a par value of US$1.00 each. Immediately prior to the Closing, all
of the issued and outstanding shares in the capital of UIAL are owned by the Company. 
 (c) The Sale Shares have been duly authorized,
validly issued, fully paid and non-assessable. The Sellers are or will at the Closing be (i) the sole legal owners of the Sale Shares free and clear of any Lien (except for the Liens contemplated by the Investment Documents), and
(ii) entitled to transfer or procure the transfer of the Sale Shares on the terms of this Agreement. 
 (d) Upon the transfer in
accordance with Section 2 of this Agreement and registration of the Investor in the register of members of the Company, the Investor will acquire good and valid title to the Sale Shares, representing 1.46% of the issued capital of the Company,
free and clear of any Lien (except for the Liens contemplated by the Investment Documents). 
 (e) There are no preemptive rights or similar
rights on the part of any Shareholder of the Company with respect to the share capital of the Company, other than any preemptive rights or similar rights under the Investment Documents. Except for the Liens contemplated by the Investment Documents,
the share capital of the Company is free and clear of any Lien. 
 (f) Except for or as contemplated by the Investment Documents, there is no
agreement, arrangement or obligation of any kind (and no authorization therefore has been given) obligating the Investees or any other Person: 
 (i) to issue or sell, or cause to be issued or sold, any Equity Security of the Company; or 
  

 SCH A-2 

 (ii) to repurchase, redeem or otherwise acquire any outstanding Equity Security of the
Company. 
 (g) The registered capital of the FIE is RMB50 million. All of the registered capital of the FIE has been contributed, such
contribution has been duly verified by a certified accountants registered in the PRC, and the report of the certified accountants evidencing such verification has been registered with the relevant Governmental Authority. UIAL has obtained the
Governmental Approvals from the relevant Government Authorities for acquiring 30% of the equity interests in the FIE originally held by Shenzhen Guang Er Gao Zhi Advertising Co. Ltd. 100% of the equity interest of the FIE is legally owned by UIAL.
There are no resolutions pending to increase the registered capital of the FIE; there are no outstanding options, preemptive rights or other rights relating to the registered capital of the FIE. 
 6. No Share Option Plan. As of the date hereof, none of the Group Companies has adopted or implemented any other Share Option Scheme. 

7. No Registration Rights. As of the date hereof, the Company has not conferred any registration rights with respect to any of its issued and
outstanding securities on any other party. 
 8. Investments and Subsidiaries. 
 (a) Except for UIAL and the FIE, the Company has no other Subsidiaries and the Company does not own or control, directly or indirectly, any equity or
other ownership interest in any corporation, partnership, joint venture or any other Person. 
 (b) Other than the Investment Documents,
there is no agreement, arrangement or obligation of any kind (and no authorization therefore has been given) obligating any Group Company to purchase or acquire the ownership of any Equity Securities of any Person or to make investments in any
Person. 
 9. Undisclosed Liabilities, Etc. 
 (a) None of the Group Companies has any borrowing Liability (or is a guarantor or otherwise contingently liable for any borrowing Indebtedness) for an amount in excess of US$50,000 except as (i) set forth in
Section 9(a) of the Disclosure Schedule; (ii) reflected or reserved in the Financial Statements; (iii) incurred since March 31, 2008 during the Ordinary Course of Business, or (iv) which would not have a Material Adverse
Effect. 
 (b) Except as disclosed in the Financial Statements or in the Draft F-1 Registration Statement, since March 31, 2008, there
has not occurred or come to exist any Material Adverse Effect or any event, occurrence, fact, condition, change, development or effect that, individually or in the aggregate, could become or result in a Material Adverse Effect. 
 10. Financial Information. (a) Section 10(a) of the Disclosure Schedule contains (i) the preamble opinion issued by the
Company’s auditors in respect of the consolidated balance sheet of the Company as of December 31, 2007 and the related statement of income for the twelve-month period ended December 31, 2007 (the “Financial
Statements”), and (ii) the unaudited interim condensed consolidated financial statements of the Company for the three-month period ended March 31, 2008 (the “Interim 

  

 SCH A-3 

 
Financial Statements”). The Financial Statements were prepared in accordance with the US GAAP on a basis consistent with the past practices
of the Group Companies. The Interim Financial Statements were prepared on the same basis as the Financial Statements. 
 (b) The books of
account and other financial records of the Group Companies (i) are complete and correct in all material respects and do not contain any material inaccuracies or discrepancies, and (ii) have been maintained in accordance with all applicable
Laws and on a consistent basis. 
 11. Absence of Changes. Except as disclosed in the Financial Statements and the Interim Financial
Statements, since March 31, 2008, each of the Group Companies has conducted its business in the Ordinary Course of Business in all material respects. 
 12. Assets and Properties. 
 (a) To the Investees’ Knowledge, the Company has good and marketable
title to all the properties and assets, whether real, personal or mixed and whether tangible or intangible, reflected as owned in the Financial Statements of the Company, except as would not have a Material Adverse Effect. With respect to the
property and assets it leases, the Company is in compliance with such leases and holds a valid leasehold interest free of any liens, claims or encumbrances other than (i) those of the lessors of such property or assets; (ii) Permitted
Liens; or (iii) those that would not have any Material Adverse Effect. 
 (b) To the Investees’ Knowledge, the FIE has maintained
its properties and assets in good repair, working order and operating condition in all material respects subject only to ordinary wear and tear, and all such tangible assets are adequate and suitable in all material respects for the purpose for
which they are presently being used. 
 (c) The FIE does not own any real property. The FIE leases all real properties necessary to conduct
its business and operations as presently conducted. The leased properties are adequate for the conduct of the business of the FIE as presently conducted. To the Investees’ Knowledge, except as set forth in Section 12(c) of the Disclosure
Schedule, each of the Leases is legal, valid, binding, in full force and effect and enforceable against each party thereto. To the Investees’ Knowledge, the FIE is not in material default, violation or breach under any Leases. The FIE has good
title to its leasehold interest subject to no Lien other than (i) Permitted Liens; or (ii) those arise in the Ordinary Course of Business and which do not materially impair the FIE’s leasehold interest or use of such leased property
or assets. 
 13. Contracts. 
 (a) Other than (i) the Investment Documents; and (ii) Contracts entered into in the Ordinary Course of Business, neither the Company nor UIAL is a party to any Contracts that involve obligations (contingent or otherwise) of, or
payments to, the Company or UIAL in excess of US$100,000. 
 (b) Except as disclosed in Section 13(b) of the Disclosure Schedule, the
FIE has no Contract that is in force on the date hereof to which the FIE is a party or by which any of its properties or assets may be bound or affected, that require the payment by or to the 

  

 SCH A-4 

 
FIE of aggregate amounts in excess of US$1,000,000 on the date hereof or that have resulted in an obligation for the FIE to pay, or the right for the FIE to
receive, aggregate amounts in excess of US$2,000,000, and that is material to the business, operations, results of operations, condition (financial or otherwise), properties (including intangible properties), assets (including intangible assets) or
liabilities of the FIE (each, a “Major Contract” and, collectively, the “Major Contracts”). 
 (c) None of
the Material Contracts to which the FIE is a party materially restricts the right of the FIE to carry on or continue the Business in the normal course. 
 14. Intellectual Property. 
 (a) Except as set forth in Section 14(a) of the Disclosure Schedule,
the Group Companies own or possess sufficient legal rights to all material service marks, tradenames, copyrights, trade secrets, licenses, information and proprietary rights and other intellectual properties (collectively referred to herein as the
“Intellectual Property”) as are necessary to the conduct of their businesses as now conducted and as presently proposed to be conducted. Except as set forth in Section 14(a) of the Disclosure Schedule, to the Investees’
Knowledge, no such Intellectual Property is being infringed by third parties. 
 (b) To the Investees’ Knowledge, all material licenses
pursuant to which the Group Companies are currently using the Intellectual Property of third parties (the “Intellectual Property Licenses”) are in full force and effect in accordance with their terms, and are free and clear of any
Liens, other than Permitted Liens. The Group Companies are not in default under any Intellectual Property License, and, to the Investees’ Knowledge, no such default is currently threatened, in each case, except such default as would not have a
Material Adverse Effect. 
 (c) To the Investees’ Knowledge, the conduct by the Group Companies of the Business does not infringe the
rights of any third party in respect of any Intellectual Property nor, to the Investees’ Knowledge, have the Group Companies received any written communication that a claim or demand has been made, or threatened to be made to this effect.

 (d) Except as set forth in Section 14(d) of the Disclosure Schedule, the FIE owns no registered trademark. 
 15. Related Party Transactions. Except as disclosed in Section 15 of the Disclosure Schedule and in the Financial Statements, there are no
material Contracts or transactions (other than the Investment Documents and the transactions contemplated hereby and thereby) that are in force on the date hereof, between any of the Group Companies, on the one hand, and any Related Party, on the
other hand. 
 16. Insurance. All insurance policies maintained at present by or on behalf of any of the Group Companies with an
insured amount of more than US$100,000 are in full force and effect, and all premiums due thereon have been paid. To the Investees’ Knowledge, each of the Group Companies has complied in all material respects with the terms and provisions of
such policies. 
  

 SCH A-5 

 17. Litigation. Except as set forth in Section 17 of the Disclosure Schedule, there is no
action, suit or proceeding by any Person pending or, to the Investees’ Knowledge, threatened against (i) the Founder or (ii) any of the Group Companies or any of their respective directors or officers before any Governmental Authority
that would have a Material Adverse Effect. 
 18. Tax and Others. 
 (a) Except (i) as disclosed in Section 18(a) of the Disclosure Schedule or the Financial Statements; or (ii) for matters that would not
have a Material Adverse Effect, to the Investees’ Knowledge, each of the Group Companies has timely filed all Tax Returns and reports as required by Law (taking into account any extension of time to file granted or obtained). Such Tax Returns
are true and correct in all material respects. All Taxes actually assessed against any of the Group Companies (whether or not shown on any Tax Return) have been paid in a manner customary for companies similarly situated save where the latest time
for payment has not arisen. 
 (b) There has been no material deficiency for Taxes assessed in writing against any of the Group Companies by
any taxing authority and no circumstances exist, to the Investees’ Knowledge, to form the basis for such a claim which would have a Material Adverse Effect. 
 (c) Except for matters that would not have a Material Adverse Effect, none of the Group Companies has incurred, assumed or been claimed to be responsible for any social security or environmental liabilities or
obligations, actual or contingent, in connection with or arising from its entry into or consummation of the transactions contemplated hereby. 
 19. Legal Compliance. 
 (a) Section 19 of the Disclosure Schedule attached hereto contains a complete and correct list
of all Governmental Approvals held by the Group Companies material to the conduct of their Business and the termination or expiration date of each such Governmental Approval. No other Governmental Approval is necessary for, or otherwise material to,
the conduct of such business, and all such Governmental Approvals are valid and subsisting and have not been cancelled, terminated or become void or terminable for any reason. 
 (b) Except as would not have a Material Adverse Effect, to the Investees’ Knowledge, no event has occurred or circumstance exists that (with or
without notice or lapse of time): (i) may constitute or result in a violation by any of the Group Companies, or a failure on the part thereof to comply with, any Law in any material respect; or (ii) may give rise to any material obligation
on the part of any of the Group Companies to undertake, or to bear all or any portion of the cost of, any remedial action of any nature. None of the Group Companies has received any written notice or other written communication from any Governmental
Authority regarding: (x) any actual, alleged, possible or potential violation of, or failure to comply with, any Law, which has not been cured and would have a Material Adverse Effect; or (y) any actual, alleged, possible or potential
obligation on the part of any of the Group Companies to undertake, or to bear all or any portion of the cost of, any remedial action of any nature which would have a Material Adverse Effect. 
 (c) Each of the Group Companies has complied with all Laws, except where such failure to comply would not individually or in the aggregate result in a
Material Adverse Effect. None of the Group Companies has received any written notice or had knowledge of any claim alleging such failure to comply. 
  

 SCH A-6 

 20. Employees, Labor Matters, Etc. 
 (a) There are no material labor disputes currently subject to any grievance procedure, arbitration or litigation with respect to any employee of the Group
Companies. 
 (b) There are no written employment or consultancy agreements with respect to any employee of any of the Group Companies that
cannot be terminated by such Group Company by giving notice of three (3) months or less to the other parties to such agreements without giving rise to any claim for damages or compensation beyond such notice period, except as required otherwise
under applicable PRC labor and employment-related Laws. 
 21. Broker. None of the Group Companies has any Contract with any
investment banker, broker, finder, consultant, agent or other intermediary for any potential broker or finder fees with respect to the transactions contemplated by this Agreement. 
 22. Disclaimer. Except as set forth in this Schedule A, none of the Investees, the Group Companies or any of their respective Affiliates,
officers, directors, employees or Representatives make or have made any representation or warranty, express or implied, at law or in equity, with respect to the Investees, the Group Companies or their respective properties and assets, including as
to (i) merchantability or fitness for any particular use or purpose; or (ii) the probable success or profitability of the Business after the Closing; and (b) other than the indemnification obligations of the Investees set forth in
Section 7.2 of the Agreement, none of the Investees, the Group Companies, or any of their respective Affiliates, officers, directors, employees or Representatives will have or be subject to any liability or indemnification obligation to the
Investor or to any other Person resulting from the distribution to the Investor, its Affiliates or Representatives of, or the Investor’s use of, any information relating to the Business, including any information, documents or material made
available to the Investor, whether orally or in writing, in discussions with management, responses to questions submitted by or on behalf of the Investor, or in any other form in expectation of the transactions contemplated by this Agreement and the
other Investment Documents. 
  

 SCH A-7 

 SCHEDULE B 
 INVESTOR WARRANTIES 
 1. Status. The Investor is a limited liability company duly organized,
validly existing and in good standing under the laws of the British Virgin Islands. 
 2. Power and Authority. 
 (a) The Investor has all requisite power and authority to execute and deliver this Agreement and each other Investment Document to which it is a party,
and to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. 
 (b) The
execution and delivery of this Agreement and each other Investment Document to which the Investor is a party, the performance by the Investor of its obligations hereunder and thereunder and the consummation by the Company of the transactions
contemplated hereby and thereby have been duly authorized by all requisite corporate action of the Investor. 
 3. Enforceability.

 (a) The Investor has duly executed and delivered this Agreement and each other Investment Document to which it is a party. 
 (b) Each of the Investment Documents to which the Investor is a party (assuming due authorization, execution and delivery of such Investment Documents by
the applicable Investees) constitutes the legal, valid and binding obligations of the Investor, enforceable against the Investor in accordance with their respective terms, except that enforcement thereof may be limited by: (i) bankruptcy,
insolvency, fraudulent transfer, reorganization and moratorium laws and by other similar laws of general applicability relating to or affecting the rights of creditors; or (ii) laws relating to the availability of specific performance,
injunctive relief or other equitable remedies or general equity principles. 
 4. Non-Contravention. The execution, delivery and
performance by the Investor of this Agreement and each other Investment Document to which the Investor is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not conflict with, contravene, or result in
a violation or breach of or default (with or without the giving of notice or the lapse of time or both) under (i) any Law applicable to the Investor or any of its properties or assets; or (ii) the organizational documents of the Investor.

 5. Litigation. There is no action, suit or proceeding by or against the Investor pending or, to the Investor’s knowledge,
threatened, which could affect the legality, validity or enforceability of this Agreement or any other Investment Document to which the Investor is a party, or the consummation of the transactions contemplated hereby or thereby. 
 6. Broker. The Investor has no Contract with any investment banker, broker, finder, consultant, agent or other intermediary for any potential
broker or finder fees with respect to the transactions contemplated by this Agreement. 
  

 SCH B-1 

 7. Financing. The Investor has sufficient immediately available funds to pay, in cash, its portion
of the Aggregate Purchase Price and all other amounts payable pursuant to this Agreement and the other Investment Documents or otherwise necessary to consummate all the transactions contemplated hereby and thereby. 
 8. Restricted Securities. 
 (a) The
Investor is acquiring the Sale Shares solely for the purpose of investment and not with a view to, or for offer or sale in connection with, any distribution thereof other than compliance with all Laws, including United States federal securities
laws. The Investor agrees that the Sale Shares may not be sold, transferred, offered for sale, pledged, hypothecated or otherwise disposed of without registration under the Securities Act and any applicable state securities laws, except pursuant to
an exemption from such registration under the Securities Act and such laws. The Investor is able to bear the economic risk of holding the Sale Shares for an indefinite period (including total loss of its investment), and (either alone or together
with its Representatives) has sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risk of its investment. 
 (b) The Investor understands that the Sale Shares are characterized as “restricted securities” under the United States federal securities laws
inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such laws and applicable regulations such securities may be resold without registration under the Securities Act only in certain
limited circumstances. In this regard, the Investor represents that it is familiar with Rule 144 promulgated by the SEC under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby and by the Securities
Act. 
 9. Legends. The Investor acknowledges that each certificate evidencing the Sale Shares issued pursuant to this Agreement may
bear the following legends: 
 (a) “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER, AS IN EFFECT FROM TIME TO TIME (THE “SECURITIES ACT”) OR ANY SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. SUCH SECURITIES MAY NOT
BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR TO ANY UNITED STATES PERSON EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT.”; and 
 (b) any legend required by any other applicable securities laws. 
 10. Investees’ Warranties. The Investor hereby acknowledges and agrees that (a) other than the representations and warranties made by
the Investees in Schedule A, none of the Investees, the Group Companies or any of their respective Affiliates, officers, directors, employees or Representatives make or have made any representation or warranty, express or implied, at law or
in equity, 

  

 SCH B-2 

 
with respect to the Investees, the Group Companies or their respective properties and assets, including as to (i) merchantability or fitness for any
particular use or purpose; or (ii) the probable success or profitability of the Business after the Closing; and (b) other than the indemnification obligations of the Investees set forth in Section 7.2 of the Agreement, none of the
Investees, the Group Companies, or any of their respective Affiliates, officers, directors, employees or Representatives will have or be subject to any liability or indemnification obligation to the Investor or to any other Person resulting from the
distribution to the Investor, its Affiliates or Representatives of, or the Investor’s use of, any information relating to the Business, including any information, documents or material made available to the Investor, whether orally or in
writing, in discussions with management, responses to questions submitted by or on behalf of the Investor, or in any other form in expectation of the transactions contemplated by this Agreement and the other Investment Documents. 
  

 SCH B-3 

 SCHEDULE C 
 SELLERS’ BANK ACCOUNTS 
  

 SCH C 

 SCHEDULE 2.3(a)(iii) 
 CLOSING CERTIFICATE 
 This certificate is being delivered to China Mass Media
International Advertising Corp., Happy Indian Ocean Limited and Arctic Spring Limited (the “Investees”) pursuant to Section 2.3(a) of the Investment Agreement dated as of June 24, 2008, by and among the Investees and Ever
Kingdom Limited (the “Investor”) (the “Investment Agreement”). Unless otherwise specifically defined herein, capitalized terms used in this certificate have the same meanings given to them in the Investment
Agreement. 
 The undersigned hereby certifies that: 
 1. attached hereto as Annex 1 is a true and correct copy of the resolutions of the board of directors and the shareholders of the Investor authorizing the execution and delivery of, and performance of the
Investor’s obligations under, the Investment Documents and the consummation of the transactions contemplated thereby; 
 2. the Investor
has performed and complied, in all material respects, with all covenants, undertakings, agreements, obligations and conditions contained in the Investment Agreement that are required to be performed or complied with by it on or prior to the
Closing. 
 This certificate may be executed in multiple counterparts, each of which shall be deemed an original and all of which together
shall constitute one single instrument. 
 [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 
  

 SCH 2.3(A) 

 IN WITNESS WHEREOF, this certificate has been signed this      day of June,
2008. 
  

			
	EVER KINGDOM LIMITED
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 SCH 2.3(A) 

 SCHEDULE 2.3(b)(vi) 
 CLOSING CERTIFICATE 
 This certificate is being delivered to Ever Kingdom
Limited (the “Investor”) pursuant to Section 2.3(b) of the Investment Agreement dated as of June 24, 2008, by and among China Mass Media International Advertising Corp. (the “Company”), Happy Indian Ocean
Limited, Arctic Spring Limited and the Investor (the “Investment Agreement”). Unless otherwise specifically defined herein, capitalized terms used in this certificate have the same meanings given to them in the Investment Agreement.

 Each of the undersigned hereby certifies that: 
 1. attached hereto as Annex 1 are true and correct copies of the resolutions of the board of directors and the shareholders of the Company and each of the Sellers authorizing the execution and delivery of, and
performance of the Company’s and the Sellers’ obligations under, the Investment Documents and the consummation of the transactions contemplated thereby; 
 2. each of the Investees has performed and complied, in all material respects, with all covenants, undertakings, agreements, obligations and conditions contained in the Investment Agreement that are required to
be performed or complied with by it on or prior to the Closing. 
 This certificate may be executed in multiple counterparts, each of which
shall be deemed an original and all of which together shall constitute one single instrument. 
 [THE REMAINDER OF THIS PAGE IS INTENTIONALLY
LEFT BLANK] 
  

 SCH 2.3(B) 

 IN WITNESS WHEREOF, this certificate has been signed this      day of June,
2008. 
  

			
	CHINA MASS MEDIA INTERNATIONAL ADVERTISING CORP.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	HAPPY INDIAN OCEAN LIMITED
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	ARCTIC SPRING LIMITED
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 SCH 2.3(B) 

 EXHIBIT A 
 DISCLOSURE SCHEDULE 
 This Disclosure Schedule has been prepared and delivered in connection with the
Investment Agreement (the “Agreement”), dated as of June 24, 2008, by and among the Investor and the Investees. Unless otherwise defined, capitalized terms used herein shall have the meanings ascribed to such terms in the
Agreement. 
 The information provided in this Disclosure Schedule is being provided solely for the purpose of making disclosures to the
Investor under the Agreement. In disclosing this information, the Investees expressly do not waive any attorney-client privilege associated with such information or any protection afforded by the work-product doctrine with respect to any of the
matters disclosed herein. 
 Information referred to in Part I of this Disclosure Schedule that is reasonably relevant to any sections of
Schedule A to the Agreement shall be deemed to be disclosed with respect to such sections. The exceptions set forth in Part II of this Disclosure Schedule are arranged by section number and shall qualify (a) the corresponding section of
Schedule A to the Agreement and (b) each other section of Schedule A to the Agreement to which such exceptions may reasonably be regarded as being relevant. The inclusion of an item in this Disclosure Schedule as an exception to a
representation or warranty shall not be deemed an admission that such item represents a material exception or material fact, event or circumstance or that such item has had or would have a Material Adverse Effect. Certain matters are set forth in
this Disclosure Schedule for informational purposes only and may not be required to be listed herein by the terms of the Agreement. It is acknowledged that copies of the Material Contracts listed in Section 13(b) in Part II of this Disclosure
Schedule have not been provided to the Investor, and the Investor shall not be deemed to have knowledge of the contents of such Contracts. No representation or warranty is given by the Investor as to the accuracy or completeness of the information
in this Disclosure Schedule. No dollar amount referenced herein is indicative of what is or is not material to the Investees or any of the Group Companies. No disclosure in this Disclosure Schedule relating to any possible breach or violation of any
agreement, law or regulation shall be construed as an admission or indication that any such breach or violation exists or has actually occurred, and nothing in this Disclosure Schedule shall constitute an admission of any liability or obligation of
the Investees to any third party or shall confer or give to any third party any remedy, claim, liability, reimbursement, cause of action or other right. 
 Titles and headings used herein are for reference purposes only and shall not in any manner affect the construction of this Disclosure Schedule or limit or expand the scope of the information required to be disclosed
herein. 
  

	I.	General Disclosures. 

 The Investor shall be deemed
to have full knowledge of: 
  

	 	(a)	all correspondence, documents and other written information delivered, sent, given to (or made available for inspection by) the Investor prior to the date hereof, and any matter
referred to therein; 

  

 Exhibit A-1 

	 	(b)	any information which would be revealed upon an inspection or search (whether or not made) of any document, register or record which may be inspected by the public and maintained
by, or information which is available upon enquiry (whether or not made) of, or otherwise from, any register or records of, or maintained by, any Governmental Authority which might be relevant to the Group Companies and which was, or could have
been, searched or reviewed by or on behalf of the Investor; 

  

	 	(c)	any matter specifically referred to in the Investment Documents or in any document referred to therein; 

  

	 	(d)	any matter which would be revealed by an inspection (whether or not made) of any of (i) the minute books in respect of the Group Companies and (ii) the statutory registers
of the Group Companies; and 

  

	 	(e)	all matter which is in the public domain. 

  

	II.	Specific Disclosures. 

 Without limiting the
generality of the foregoing, the Investor’s attention is drawn to the following matters which have been set out against those numbered paragraphs of Schedule A to the Agreement to which they most obviously relate: 
 Section 6 – Share Option Plan 
 None of the Group Companies
has adopted or implemented any Share Option Scheme as of the date hereof. However, the Company intends to adopt an equity incentive plan prior to the completion of its initial public offering. Please see the discussion of the 2008 Equity Incentive
Plan in the Draft F-1 Registration Statement for further information with respect to this plan. 
 Section 7 – Registration Rights

 None, except as contemplated by the Investor Rights Agreement dated as of the date hereof. 
 Section 9(a) – Indebtedness 
 None. 
 Section 10 – Financial Statements 
 See Annex A. 

 

 Exhibit A-2 

 Section 12 – Real Property 
  

	1.	Lease Agreement, effective as of January 1, 2008, entered into by and between Beijing Guang’er Gaozhi Film and Television Production Company Ltd. (

, “Guang Er Gao Zhi FTP”) and the FIE, pursuant to which the FIE rented Rm. 620, 621, 623 and 624 as its office in Beijing with a term from 1 January 2008 to 1 January 2018. Please
also see the description of this lease in item 4 of Section 15 of this Disclosure Schedule. 

  

	2.	Lease Agreement, effective as of January 1, 2008, entered into by and between Mr.Wang Zhiyi and the FIE, pursuant to which the FIE rented Rm. 627, 628, 629, 630 and 631 as its
office in Beijing with a term from 1 January 2008 to 1 January 2018. Please also see the description of this lease in item 5 of Section 15 of this Disclosure Schedule. 

  

	3.	Lease Agreement, effective as of January 1, 2008, entered into by and between Mr. Ren Zhigang and the FIE, pursuant to which the FIE rented Rm. 1014B as its office in
Shenzhen with a term from January 1, 2008 to December 31, 2008 

 Section 12(a) – Assets and Properties 

Please see the discussion with respect to the “

 MMIA” trademark set forth in items 1 to 3 of Section 14(d) of this Disclosure Schedule, and Sections 12(c) and 19 of this Disclosure Schedule. 
 Section 12(c) – Leases 
 House Tenancy Registration for the
leases described in items 1 and 2 of Section 12 of this Disclosure Schedule has not been completed. The FIE has completed its House Tenancy Registration for the lease described in item 3 of Section 12 of this Disclosure Schedule.

 Section 13(b) – Material Contracts 
  

	1.	Assets Transfer Agreement dated as of December 29, 2007 and the supplementary agreement dated as of February 5, 2008 entered into by and between Mass Media International
Advertising Co., Ltd. (

) and the FIE pursuant to which Mass Media International Advertising Co., Ltd. transferred to the FIE its fixed assets and intangible assets as listed in Appendix I to the Assets Transfer Agreement. Please
also see the description of this contract in item 1 of Section 15 of this Disclosure Schedule. 

  

	2.	The FIE entered into service agreements or arrangements respectively with (i) PriceWaterhouseCoopers; (ii) Commerce and Finance Law Offices; and
(iii) Shearman & Sterling LLP in connection with the Company’s initial public offering. 

  

	3.	Advertising Agreement with Guang Er Gao Zhi FTP dated as of January 22, 2008 (for the term January 1, 2008 through December 31, 2008), pursuant to which the Group
Companies have the exclusive right to promote sales and marketing with respect to advertising spots Guang Er Gao Zhi FTP obtains from China Central Television (“CCTV”). 

  

 Exhibit A-3 

	4.	General framework agreements with Guang Er Gao Zhi FTP dated as of December 20, 2007. Please see item 2 of Section 15 of this Disclosure Schedule for further information
regarding these agreements. 

  

	5.	Share Equity Purchase Agreement between UIAL and Shenzhen Guang Er Gao Zhi Co. Ltd. (

) for the purchase of 30% interest in the FIE dated as of January 9, 2008. 

  

	6.	Advertising Agreement between the FIE and “

” dated as of December 19, 2007 (for the term December 31, 2007 through December 28, 2008). 

  

	7.	Advertising Agreement between the FIE and Shenzhen Hasee Computer Co. Ltd. (BTTB2008-01+) dated as of December 14, 2007 (for the term December 31, 2007 through
December 28, 2008). 

  

	8.	Advertising Agreement between the FIE and “

” dated as of December 22, 2007 (for the term December 31, 2007 through December 28, 2008). 

  

	9.	Advertising Agreement between the FIE and Shenzhen Hasee Computer Co. Ltd. (BTTB2008-02+) dated as of December 14, 2007 (for the term December 31, 2007 through
December 28, 2008). 

  

	10.	Advertising Agreement between the FIE and “

” dated as of December 17, 2007 (for the term December 31, 2007 through December 28, 2008). 

  

	11.	Advertising Agreement between the FIE and “

” dated as of December 14, 2007 (for the term December 31, 2007 through December 28, 2008). 

  

	12.	Advertising Agreement between the FIE and “

” dated as of December 13, 2007 (for the term December 31, 2007 through December 28, 2008). 

  

	13.	Advertising Agreement between the FIE and “

” dated as of December 14, 2007 (for the term December 31, 2007 through December 28, 2008). 

  

	14.	Advertising Agreement between the FIE and “

” dated as of December 29, 2007 (for the term May 19, 2008 through April 5, 2009). 

  

	15.	Advertising Agreement between the FIE and “

” dated as of December 9, 2007 (for the term January 1, 2008 through December 31, 2008). 

  

 Exhibit A-4 

	16.	Advertising Agreement between the FIE and “

 (

)

 ” dated as of February 14, 2008 (for the term January 1, 2008 through December 31, 2008). 

  

	17.	Advertising Agreement between the FIE and Chinaseppe (Beijing) Advertising Co., Ltd. dated as of March 26, 2008 (for the term January 1, 2008 through December 31,
2008). 

  

	18.	Advertising Agreement between the FIE and “

” dated as of December 25, 2007 (for the term January 1, 2008 through December 31, 2008). 

  

	19.	Advertising Agreement between the FIE and “

” dated as of May 6, 2008 (for the term May 19, 2008 through March 15, 2009). 

  

	20.	Advertising Agreement between the FIE and CCTV effective as of January 1, 2007 (for the term January 1, 2007 through December 31, 2009). 

  

	21.	Advertising Agreement between the FIE and CCTV effective as of January 1, 2007 (for the term January 1, 2007 through December 31, 2009). 

  

	22.	See also the agreements referenced in Sections 12 and 15 of this Disclosure Schedule and the contracts described in the Draft F-1 Registration Statement (in particular, those
described in the “Our Business” and “Related Party Transactions” sections, in notes 2(h), 13 and 14 to the combined financial statements and in notes 2(c), 13 and 14 to the unaudited interim condensed combined financial
statements). 

 Section 14(a) – Intellectual Property 
 Please see Section 14(d), below and the discussion of intellectual property in the “Risk Factors” section of the Draft F-1 Registration Statement. 
 Section 14(d) – Owned Registered Trademarks 
  

	1.	Currently Mass Media International Advertising Co., Ltd. is in the process of applying to register the trademark “

 MMIA” under categories 16 and 35 with the Trademark Office of the State Administration for Industry and Commerce and undertakes to transfer such trademark to the FIE immediately after it has been
registered. After the registration of such trademark and before such trademark is transferred to the FIE, the FIE and its holding companies and subsidiaries are entitled to use such trademark for free. The FIE is aware that a number of enterprises
in the PRC use the Chinese characters of “

” in their company names. 

  

	2.	As of the date of the Agreement, the application to register the trademark of Mass Media International Advertising Co., Ltd. under category 41 has been approved by the Trademark
Office of State Administration for Industry and Commerce and such trademark is valid from 2007 to 2017. Mass Media International Advertising Co., Ltd. is the current owner of the trademark and has an undertaking pursuant to the Assets Transfer
Agreement described in item 1 to Section 13(b) of this Disclosure Schedule to transfer ownership to the FIE. 

  

 Exhibit A-5 

	3.	Please also see the discussion in the “Risk Factors” section of the Draft F-1 Registration Statement for further information with respect to the trademark.

 Section 15 – Related Party Transactions 
  

	1.	Guang Er Gao Zhi FTP is an advertising agency 50% owned by CCTV and 50% beneficially owned by the immediate family members the Founder. Guang Er Gao Zhi FTP is not controlled by the
Company, the Founder or his immediate family members. The Group Companies paid RMB 0.4 million and RMB 2.6 million in the years ended December 31, 2005 and 2006, respectively, to Guang Er Gao Zhi FTP in connection with obtaining
certain advertising time slots from Guang Er Gao Zhi FTP on behalf of advertising clients. Such advertising time slots were obtained by Guang Er Gao Zhi FTP from CCTV. 

  

	2.	In December 2007, the Group Companies entered into a framework agreement with Guang Er Gao Zhi FTP under which they obtained a right of first refusal with respect to any advertising
time slots that Guang Er Gao Zhi FTP has obtained, or will obtain, from CCTV or any local television networks for a term of four years. Once Guang Er Gao Zhi FTP notifies the Group Companies that it has obtained the advertising right to a specific
television program, they are required to inform Guang Er Gao Zhi FTP within seven days of receipt of such notice whether to exercise the right of first refusal. If the Group Companies decide to exercise our right of first refusal for specific
programs, they and Guang Er Gao Zhi FTP will enter into a separate agency contract in connection with such programs. Under this arrangement, the Group Companies have contracted with Guang Er Gao Zhi FTP to obtain the advertising rights to a number
of programs on CCTV in 2008, including First News on Channel 2 and China News, Chinese World, World Update, Viewer’s Guide and various periodic sporting and financial news programs on Channel 4. For the First News program on CCTV Channel 2, the
Group Companies have a guaranteed minimum payment of RMB 141,120 per day for each day the First News program is broadcast. For the various programs on Channel 4, the Group Companies will pay a fixed amount of advertising revenues plus a fee to
Guang Er Gao Zhi FTP and retain any remaining amount generated from our sales as our commissions. The Group Companies have paid a deposit of RMB 1.0 million under this contract, and the fee owed to Guang Er Gao Zhi FTP as of March 31, 2008
was RMB 51.4 million (US$7.3 million). 

  

	3.	In addition, in the first quarter of 2008, the Group Companies provided advertising agency services to Guang Er Gao Zhi FTP’s clients under a number of contracts that Guang Er
Gao Zhi FTP had entered into with the clients prior to its execution of the framework agreement discussed in item 2, above, for which the Group Companies charged a fee of RMB 1.3 million (US$0.2 million). 

  

	4.	 From 2005 to 2007, Guang Er Gao Zhi FTP allowed the Group Companies to use part of its office space at no charge. The Group Companies recorded the rent expense for
the space used at market price and treated it as contribution from a related party. 

  

 Exhibit A-6 

	 	 
The Group Companies recorded related contributions of RMB 2.0 million (US$0.3 million) in each of the years ended December 31, 2005, 2006 and 2007.
In January 2008, the FIE entered into a lease agreement with Guang Er Gao Zhi FTP for Rm. 620, 621, 623 and 624 at a rent of approximately RMB 1.9 million (US$0.3 million) per year, for a term of ten years. Please also see the description of
this lease in item 1 of Section 12 of this Disclosure Schedule. 

  

	5.	The FIE paid RMB 2.0 million (US$0.3 million) in each of the years ended December 31, 2005, 2006 and 2007 to Mr. Wang Zhiyi , the Founder’s father, in connection
with the lease of our principal office space in Beijing from Mr. Wang Zhiyi. This lease was terminated in December 2007 and the FIE entered into a lease with Mr. Wang Zhiyi with respect to Rm. 627, 628, 629, 630 and 631 as our principal
office space in Beijing in January 2008 for a term of ten years at a rent of approximately RMB 1.9 million (US$0.3 million) per year. The FIE intends to purchase such properties from Mr. Wang Zhiyi on an arm’s-length basis at their
fair market value. Please also see the description of this lease in item 2 of Section 12 of this Disclosure Schedule. 

  

	6.	Under an asset transfer agreement between Mass Media International Advertising Co., Ltd. (“Mass Media”) and the FIE, dated December 29, 2007, Mass Media
transferred to the FIE certain of its assets relating to the television advertising business for RMB 21.6 million (US$3.1 million), including fixed assets and copyrights to over 100 public service announcements Mass Media has produced. Mass
Media also agreed to transfer the relevant trademarks used in the business to the FIE when the Trademark Bureau approves the trademark applications. The remaining assets and liabilities of Mass Media, including liabilities owed to CCTV in an amount
of RMB 368.2 million (US$52.5 million) relating to advertising revenues generated for CCTV and the cash needed to settle those liabilities in an amount of RMB 370.8 million (US$52.9 million) as of December 31, 2007, were retained by
Mass Media. Effective from December 31, 2007, Mass Media is no longer part of the Group Companies and will not be involved in the Group Companies’ continued business operations. 

  

	7.	In the three months ended March 31, 2008, the Group Companies provided advertising agency services to Mass Media’s clients under the three remaining contracts of Mass
Media that had not been transferred to the Group Companies, for which the Group Companies charged a fee of RMB 2.0 million (US$0.3 million). 

  

	8.	 The Founder, his spouse and his parents entered into a non-competition agreement with the FIE in January 2008. Under such agreement, none of the Founder, his spouse
or his parents may (i) directly or indirectly engage or invest in any business that directly or indirectly competes with the FIE, (ii) directly or indirectly solicit, or assist in soliciting, the FIE’s clients or potential clients
other than on behalf of the FIE or (iii) directly or indirectly solicit, or assist in soliciting, or cause any of the FIE’s employees to terminate their employment with the FIE, until the earliest of such time as the Founder no longer
holds at least 20% of the Company’s outstanding shares or such time as securities representing the Company’s share capital are no longer publicly listed on a stock exchange. In addition, the Founder and his spouse and parents are required
to refer to the FIE any new 

  

 Exhibit A-7 

	 	 
business opportunities relating to advertising of which they become aware, and the FIE has a right of first refusal to such business opportunities.

  

	9.	See also the contracts described in items 1, 3, 4, 5, 20 and 21 of Section 13(b) of this Disclosure Schedule and the “Related Party Transactions” sections of the
Draft F-1 Registration Statement for further information with respect to related party transactions. 

 Section 17 – Litigation

 On April 16, 2008, the FIE received a subpoena from the Shenzhen Municipal Futian District Court (“Court”) as the defendant of a
commercial legal dispute. A customer of the FIE complained to the Court alleging that due to some of the advertisements it has contracted with the FIE to be broadcast in February 2008 were not broadcast. The customer applied to the Court to cancel
the advertising contract (BTTB2008-01+) signed with the FIE and demanded for a compensation of RMB 1,664,327. The Group Companies considered that the FIE did not violate any terms of the corresponding advertising contract and no missing
advertisements were noted according to broadcasting report issued by a research company authorized by CCTV. The Court has extended the first hearing until mid-June of 2008. 
 On April 16, 2008, the FIE received a subpoena from the Shenzhen Municipal Futian District Court (“Court”) as the defendant of a commercial legal dispute. A customer of the FIE complained to the
Court alleging that due to some of the advertisements it has contracted with the FIE to be broadcast in February 2008 were not broadcast. The customer applied to the Court to cancel the advertising contract (No: BTTB2008-02+) signed with the FIE and
demanded for a compensation of RMB 1,664,327. The Group Companies considered that the FIE did not violate any terms of the corresponding advertising contract and no missing advertisements were noted according to broadcasting report issued by a
research company authorized by CCTV. The Court has extended the first hearing until mid-June of 2008. 
 Although the Group Companies cannot predict with
certainty the results of the litigations, the Group Companies believe that the final outcome of the litigations will not have a material adverse effect on their business, financial condition and results of operations. 
 Please also see the “Legal Contingencies” section of the Draft F-1 Registration Statement for further information. 
 Section 18(a) – Tax Returns 
 Please see the discussion with
respect to taxes, including recent changes to the PRC’s tax laws, set forth in the Draft F-1 Registration Statement. 
  

 Exhibit A-8 

 Section 19 – Governmental Approvals 
  

	1.	The FIE has obtained the following Governmental Approvals material to the conduct of its Business: 

  

					
	 No.
	  	 List of Governmental Approvals
	  	 Valid Term

	1.	  	Approval of Equity Transfer regarding Mass Media & Universal International Advertising Co., Ltd. issued by Shenzhen Bureau of Trade and Industry dated on May 28, 2008	  	N/A
	2.	  	Certificate of Approval for Establishment with Foreign-funded Enterprises issued by Shenzhen Government dated on May 29, 2008	  	N/A
	3.	  	Business License issued by Shenzhen Administration for Commerce and Industry dated on June 3, 2008	  	From August 14, 2006 to August 14, 2026
	4.	  	Organization Code Certificate issued by Shenzhen Quality and Technical Supervision	  	From August 31, 2006 to August 30, 2010
	5.	  	Foreign Exchange Registration Certificate issued by State Administration of Foreign Exchange Shenzhen Branch dated on September 5, 2006	  	Foreign Exchange Registration Certificate is subjected to the annual inspection. The valid period is one year.
	6.	  	Financial Registration for Enterprises with Foreign Investment issued by Shenzhen Finance Bureau dated on September 26, 2006	  	From August 14, 2006 to August 14, 2026
	7.	  	Tax Registration Certificate issued by Shenzhen State Taxation Bureau dated on September 4, 2006	  	N/A
	8.	  	Tax Registration Certificate issued by Shenzhen Local Taxation Bureau dated on September 4, 2006	  	N/A

  

	2.	The FIE is in the process of apply for issuing a new Organization Code Certificate, Foreign Exchange Registration Certificate, Financial Registration Certificate and Tax
Registration Certificate, which are required as a result of the FIE obtaining approval from the relevant Governmental Authority to become a wholly owned enterprise of UIAL. 

  

	3.	Please also see Sections 12(c), 14(a), 14(d) and 17 of this Disclosure Schedule and the discussion in the “Risk Factors” section of the Draft F-1 Registration Statement.

  

 Exhibit A-9 

 ANNEX A 
 Preamble Opinion, Financial Statements and Interim Financial Statements 
 As set forth in the Draft F-1
Registration Statement. 
  

 Exhibit A-10 

 EXHIBIT B 
 FORM OF MEMORANDUM AND ARTICLES OF ASSOCIATION 
  

 Exhibit B 

 EXHIBIT C 
 FORM OF INVESTOR RIGHTS AGREEMENT 
  

 Exhibit CLoan and Security Agreement

 Exhibit 10.1 
 LOAN AND SECURITY AGREEMENT 
 THIS LOAN AND SECURITY AGREEMENT (this
“Agreement”) dated as of the Effective Date between SILICON VALLEY BANK, a California corporation (“Bank”), and MOTIVE, INC., a Delaware corporation (“Borrower”), provides the terms on
which Bank shall lend to Borrower and Borrower shall repay Bank. The parties agree as follows: 
  

	 	1	ACCOUNTING AND OTHER TERMS 

 Accounting terms
not defined in this Agreement shall be construed following GAAP. Calculations and determinations must be made following GAAP. Capitalized terms not otherwise defined in this Agreement shall have the meanings set forth in Section 13. All other
terms contained in this Agreement, unless otherwise indicated, shall have the meaning provided by the Code to the extent such terms are defined therein. 
  

	 	2	LOAN AND TERMS OF PAYMENT 

 2.1 Promise to
Pay. Borrower hereby unconditionally promises to pay Bank the outstanding principal amount of all Credit Extensions and accrued and unpaid interest thereon as and when due in accordance with this Agreement. 
 2.1.1 Advances. 
 (a)
Availability. Subject to the terms and conditions of this Agreement, Bank shall make Advances to Borrower not exceeding the Availability Amount; provided, however, and notwithstanding any other term or provision of this
Agreement, the aggregate amount of outstanding Advances hereunder together with the aggregate amount of loan advances outstanding under the EXIM Agreement shall not in any event exceed $8,000,000 jointly. Amounts borrowed hereunder may be repaid
and, prior to the Revolving Line Maturity Date, reborrowed, subject to the applicable terms and conditions precedent herein. 
 (b)
Termination; Repayment. The Revolving Line terminates on the Revolving Line Maturity Date, when the principal amount of all Advances, the unpaid interest thereon, and all other Obligations relating to the Revolving Line shall be immediately
due and payable. 
  

	 	2.1.2	Equipment Advances. 

 (a) Availability.
Subject to the terms and conditions of this Agreement, during the Draw Period, Bank shall make advances (each, an “Equipment Advance” and, collectively, “Equipment Advances”) not exceeding the Equipment Line.
Equipment Advances may only be used to finance Eligible Equipment purchased within ninety (90) days (determined based upon the applicable invoice date of such Eligible Equipment) before the date of each Equipment Advance, provided that the
initial Equipment Advance may be used to finance Eligible Equipment purchased within one hundred-eighty (180) days of the Effective Date. All Eligible Equipment must have been new when purchased by Borrower, except for such Eligible Equipment
that is disclosed in writing to Bank by Borrower, and that Bank in its sole discretion has agreed to finance, prior to being financed by Bank. No Equipment Advance may exceed 100% of the total invoice for Eligible Equipment (excluding taxes,
shipping, warranty charges, freight discounts and installation expenses relating to such Eligible Equipment except to the extent such are allowed to be financed pursuant hereto as Other Equipment). Notwithstanding the foregoing, Borrower shall be
permitted to request Equipment Advances up to Two Million Dollars ($2,000,000) without supplying an invoice. Unless otherwise agreed to by Bank, not more than 30% of the proceeds of the Equipment Line shall be used to finance Other Equipment. Each
Equipment Advance must be in an amount equal to the lesser of Three Hundred Thousand Dollars ($300,000) or the amount that has not yet been drawn under the Equipment Line. Borrower may only request eight (8) Equipment Advances hereunder. After
repayment, no Equipment Advance may be reborrowed. 
  

 1 

 (b) Repayment. Each Equipment Advance shall immediately amortize and be payable in 36 equal
payments of principal and interest beginning 30 days following such Equipment Advance and continuing on the same day of each month thereafter. Notwithstanding the foregoing, all unpaid principal and interest on each Equipment Advance shall be due on
the applicable Equipment Maturity Date. 
 (c) Prepayment. At Borrower’s option, so long as an Event of Default has not occurred
and is not continuing, Borrower shall have the option to prepay all, but not less than all, of the Equipment Advances advanced by Bank under this Agreement, provided Borrower (a) provides written notice to Bank of its election to exercise to
prepay the Equipment Advances at least three (3) days prior to such prepayment, and (b) pays, on the date of the prepayment (i) all accrued and unpaid interest with respect to all outstanding Equipment Advances through the date the
prepayment is made; (ii) all unpaid principal with respect to all outstanding Equipment Advances; (iii) a premium equal to the Make-Whole Premium; and (iv) all other sums, if any, that shall have become due and payable hereunder with
respect to this Agreement. 
 2.1.3 EXIM Agreement. Bank and Borrower are parties to the EXIM Agreement. Both this Agreement
and the EXIM Agreement shall continue in full force and effect until all Obligations (other than inchoate indemnity obligations) have been paid in full, and all rights and remedies under this Agreement and the EXIM Agreement are cumulative. The term
“Obligations” as used in this Agreement and in the EXIM Agreement shall include without limitation the obligation to pay when due all Credit Extensions made pursuant to this Agreement (the “Non-EXIM Loans”) and all interest
thereon and the obligation to pay when due all Credit Extensions made pursuant to the EXIM Agreement (the “EXIM Loans”) and all interest thereon. Without limiting the generality of the foregoing, all “Collateral” as defined in
this Agreement and as defined in the EXIM Agreement shall secure all EXIM Loans and all Non-EXIM Loans and all interest thereon, and all other Obligations. Any Event of Default under this Agreement shall also constitute an Event of Default under the
EXIM Agreement, and any Event of Default under the EXIM Agreement shall also constitute an Event of Default under this Agreement. In the event Bank assigns its rights under the EXIM Agreement and/or under any note evidencing EXIM Loans and/or its
rights under this Agreement and/or under any note evidencing Non-EXIM Loans, to any third party, including without limitation the Export-Import Bank of the United States (“EXIM Bank”), whether before or after the occurrence of any Event of
Default, Bank shall have the right (but not any obligation), in its sole discretion, to allocate and apportion Collateral to this Agreement, the EXIM Agreement and/or note assigned and to specify the priorities of the respective security interests
in such Collateral between itself and the assignee, all without notice to or consent of the Borrower. 
 2.2 Overadvances. If, at any
time, the aggregate outstanding principal amount of Advances made under Section 2.1.1 exceeds the lesser of either (a) the Revolving Line or (b) the Borrowing Base, Borrower shall immediately pay to Bank in cash such excess.

 2.3 Payment of Interest on the Credit Extensions.  
 (a) Interest Rate. 
 (i)
Advances. Subject to Section 2.3(b), the principal amount outstanding under the Revolving Line shall accrue interest at a floating per annum rate equal to the greater of one quarter of one percent (0.25%) above the Prime Rate or 6.25%,
which interest shall be payable monthly in accordance with Section 2.3(f) below. 
 (ii) Equipment Advances. Subject to
Section 2.3(b), the principal amount outstanding for each Equipment Advance shall accrue interest at a floating per annum rate equal to the greater of one half of one percent (0.50%) above the Prime Rate or 6.50%, which interest shall be
payable monthly. 
 (b) Default Rate. Immediately upon the occurrence and during the continuance of an Event of Default, Obligations
shall bear interest at a rate per annum which is two percentage points above the rate that is otherwise applicable thereto (the “Default Rate”). Payment or acceptance of the increased interest rate provided in this
Section 2.3(b) is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of Bank. 
  

 2 

 (c) Adjustment to Interest Rate. Changes to the interest rate of any Credit Extension based on
changes to the Prime Rate shall be effective on the effective date of any change to the Prime Rate and to the extent of any such change. 
 (d) 360-Day Year. Interest shall be computed on the basis of a 360-day year for the actual number of days elapsed. 
 (e)
Debit of Accounts. Bank may debit any of Borrower’s deposit accounts, including the Designated Deposit Account, for principal and interest payments or any other amounts Borrower owes Bank under this Agreement when due. These debits shall
not constitute a set-off. 
 (f) Payments. Unless otherwise provided, interest is payable monthly on the first calendar day of each
month. Payments of principal and/or interest received after 12:00 p.m. 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, as applicable, shall continue to accrue. 
 2.4 Fees. Borrower shall pay to Bank:

 (a) Commitment Fee. A fully earned, non-refundable commitment fee of $20,000 on the Effective Date; 
 (b) Make-Whole Premium. The Make-Whole Premium when due pursuant to the terms of Section 2.1.2(c); and 
 (c) Bank Expenses. All Bank Expenses (including reasonable attorneys’ fees and expenses, plus expenses, for documentation and negotiation of
this Agreement) invoiced to Borrower at least one (1) Business Day after the Effective Date, and, within ten (10) Business Days after demand therefor, all Bank Expenses incurred through and after the Effective Date (including reasonable
attorneys’ fees and expenses). 
  

	 	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 Borrower shall consent to or have delivered, in form and substance satisfactory to Bank, such
documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate, including, without limitation: 
 (a)
duly executed original signatures to the Loan Documents to which it is a party; 
 (b) its Operating Documents and a good standing
certificate of Borrower certified by the Secretary of State of the State of Delaware as of a date no earlier than thirty (30) days prior to the Effective Date; 
 (c) duly executed original signatures to the completed Borrowing Resolutions for Borrower; 
 (d) certified
copies, dated as of a recent date, of financing statement searches, as Bank shall request, accompanied by written evidence (including any UCC termination statements) that the Liens indicated in any such financing statements either constitute
Permitted Liens or have been or, in connection with the initial Credit Extension, will be terminated or released; 
 (e) the Perfection
Certificate(s) executed by Borrower; 
  

 3 

 (f) insurance certificates evidencing the policies and/or endorsements required pursuant to
Section 6.3 hereof; 
 (g) the completion of the Initial Audit with results satisfactory to Bank in its sole and absolute discretion;
provided, however, Borrower may request Equipment Advances prior to such Initial Audit; and 
 (h) payment of the fees and Bank Expenses then
due as specified in Section 2.4 hereof. 
 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) except as otherwise provided in
Section 3.4(a), timely receipt of an executed Payment/Advance Form; 
 (b) the representations and warranties in Section 5 shall be
true in all material respects on the date of the Payment/Advance Form and on the Funding Date of each Credit Extension; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are
qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, and no
Event of Default shall 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 in Section 5 remain true in
all material respects; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those
representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date; and 
 (c) in Bank’s sole discretion, there has not been a Material Adverse Change. 
 3.3 Covenant to
Deliver. 
 Borrower agrees to deliver to Bank each item required to be delivered to Bank under this Agreement as a condition to any
Credit Extension. Borrower expressly agrees that a Credit Extension made prior to the receipt by Bank of any such item shall not constitute a waiver by Bank of Borrower’s obligation to deliver such item, and any such Credit Extension in the
absence of a required item shall be made in Bank’s sole discretion. 
 3.4 Procedures for Borrowing. 
 (a) Advances. Subject to the prior satisfaction of all other applicable conditions to the making of an Advance set forth in this Agreement, to
obtain an Advance (other than Advances under Section 2.1.2), Borrower shall notify Bank (which notice shall be irrevocable) by electronic mail, facsimile, or telephone by 12:00 p.m. Pacific time on the Funding Date of the Advance. Together with
any such electronic or facsimile notification, Borrower shall deliver to Bank by electronic mail or facsimile a completed Payment/Advance Form executed by a Responsible Officer or his or her designee. Bank may rely on any telephone notice given by a
person whom Bank believes is a Responsible Officer or designee. If Borrower satisfies the conditions of each Advance, Bank shall credit Advances to the Designated Deposit Account on the date Bank receives Borrower’s request for such Advance if
such request is received by 12:00 p.m. Pacific time. 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. 
 (b) Equipment Advances. Subject to the prior satisfaction of all other applicable conditions to the making of an
Equipment Advance set forth in this Agreement, to obtain an Equipment Advance, Borrower must notify Bank (which notice shall be irrevocable) by electronic mail or facsimile no later than 12:00 p.m. Pacific time one (1) Business Day before the
proposed Funding Date. The notice shall be a Payment/Advance Form, must be signed by a Responsible Officer or designee, and shall include a copy of the invoice for the Equipment being 

  

 4 

 
financed (except as otherwise set forth in Section 2.1.2). If Borrower satisfies the conditions of each Equipment Advance, Bank shall disburse such
Equipment Advance by transfer to the Designated Deposit Account on Borrower’s proposed Funding Date. 
  

	 	4	CREATION OF SECURITY INTEREST 

 4.1 Grant
of Security Interest. Borrower hereby grants Bank, to secure the payment and performance in full of all of the Obligations, a continuing security interest in, and pledges to Bank, the Collateral, wherever located, whether now owned or hereafter
acquired or arising, and all proceeds and products thereof. Borrower represents, warrants, and covenants that the security interest granted herein is and shall at all times continue to be a first priority perfected security interest in the
Collateral (subject only to Permitted Liens that may have superior priority to Bank’s Lien under this Agreement). If Borrower shall acquire a commercial tort claim, Borrower shall promptly notify Bank in a writing signed by Borrower of the
general details thereof and grant to Bank in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to Bank. 
 If this Agreement is terminated, Bank’s Lien in the Collateral shall continue until the Obligations (other than inchoate indemnity obligations) are
repaid in full in cash. Upon payment in full in cash of the Obligations and at such time as Bank’s obligation to make Credit Extensions has terminated, Bank shall, at Borrower’s sole cost and expense, release its Liens in the Collateral
and all rights therein shall revert to Borrower. 
 4.2 Authorization to File Financing Statements. Borrower hereby authorizes Bank to
file financing statements, without notice to Borrower, with all appropriate jurisdictions to perfect or protect Bank’s interest or rights hereunder, including a notice that any disposition of the Collateral, by either Borrower or any other
Person, shall be deemed to violate the rights of Bank under the Code unless such disposition is permitted by this Agreement. Such financing statements may indicate the Collateral as “all assets of the Debtor” or words of similar effect, or
as being of an equal or lesser scope, or with greater detail, all in Bank’s discretion. 
  

	 	5	REPRESENTATIONS AND WARRANTIES 

 Borrower
represents and warrants as follows: 
 5.1 Due Organization, Authorization; Power and Authority. Borrower is duly existing and in good
standing as a Registered Organization in its jurisdiction of formation and is qualified and licensed to do business and is in good standing in any jurisdiction 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 have a material adverse effect on Borrower’s business. In connection with this Agreement, Borrower has delivered to Bank a completed certificate signed by Borrower,
entitled “Perfection Certificate”. Borrower represents and warrants to Bank that (a) Borrower’s exact legal name is that indicated on the Perfection Certificate and on the signature page hereof; (b) Borrower is an
organization of the type and is organized in the jurisdiction set forth in the Perfection Certificate; (c) the Perfection Certificate accurately sets forth Borrower’s organizational identification number or accurately states that Borrower
has none; (d) the Perfection Certificate accurately sets forth Borrower’s place of business, or, if more than one, its chief executive office as well as Borrower’s mailing address (if different than its chief executive office);
(e) Borrower (and each of its predecessors) has not, in the past five (5) years, changed its jurisdiction of formation, organizational structure or type, or any organizational number assigned by its jurisdiction; and (f) all other
information set forth on the Perfection Certificate pertaining to Borrower and each of its Subsidiaries is accurate and complete in all material respects (it being understood and agreed that Borrower may from time to time update certain information
in the Perfection Certificate after the Effective Date to the extent permitted by one or more specific provisions in this Agreement). If Borrower is not now a Registered Organization but later becomes one, Borrower shall promptly notify Bank of such
occurrence and provide Bank with Borrower’s organizational identification number. 
 The execution, delivery and performance by Borrower
of the Loan Documents to which it is a party have been duly authorized, and do not (i) conflict with any of Borrower’s organizational documents, (ii) contravene, 

  

 5 

 
conflict with, constitute a default under or violate any material Requirement of Law, (iii) contravene, conflict or violate any applicable order, writ,
judgment, injunction, decree, determination or award of any Governmental Authority by which Borrower or any its Subsidiaries or any of their property or assets may be bound or affected, (iv) require any action by, filing, registration, or
qualification with, or Governmental Approval from, any Governmental Authority (except such Governmental Approvals which have already been obtained and are in full force and effect and filings necessary to perfect or maintain the perfection of
Bank’s security interest in the Collateral) or (v) constitute an event of default under any material agreement by which Borrower is bound. Borrower is not in default under any agreement to which it is a party or by which it is bound in
which the default could have a material adverse effect on Borrower’s business. 
 5.2 Collateral. Borrower has good title to, has
rights in, and the power to transfer each item of the Collateral upon which it purports to grant a Lien hereunder, free and clear of any and all Liens except Permitted Liens. Borrower has no deposit accounts other than the deposit accounts with
Bank, the deposit accounts, if any, described in the Perfection Certificate delivered to Bank in connection herewith, or of which Borrower has given Bank notice and taken such actions as are necessary to give Bank a perfected security interest
therein. The Accounts are bona fide, existing obligations of the Account Debtors. 
 The Collateral is not in the possession of any third
party bailee (such as a warehouse) except as otherwise provided in the Perfection Certificate. None of the components of the Collateral shall be maintained at locations other than as provided in the Perfection Certificate or as permitted pursuant to
Section 7.1. In the event that Borrower, after the date hereof, intends to store or otherwise deliver any portion of the Collateral to a bailee, then Borrower will first receive the written consent of Bank and such bailee must execute and
deliver a bailee agreement in form and substance satisfactory to Bank in its sole discretion. 
 All Financed Equipment is new, except for
such Financed Equipment that has been disclosed in writing to Bank by Borrower as “used” and that Bank, in its sole discretion, has agreed to finance. All Inventory is in all material respects of good and marketable quality, free from
material defects. 
 Borrower is the sole owner of or has sufficient rights to use its 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 to the best of Borrower’s
knowledge, 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 have a material adverse effect on Borrower’s business.
Except as noted on the Perfection Certificate, Borrower is not a party to, nor is bound by, any material license or other agreement with respect to which Borrower is the licensee (a) that prohibits or otherwise restricts Borrower from granting
a security interest in Borrower’s interest in such license or agreement or any other property, or (b) for which a default under or termination of could interfere with the Bank’s right to sell any Collateral. Borrower shall provide
written notice to Bank within ten (10) days of entering or becoming bound by any such license or agreement (other than over-the-counter software that is commercially available to the public). Borrower shall take such steps as Bank requests to
obtain the consent of, or waiver by, any person whose consent or waiver is necessary for (x) all such licenses or agreements to be deemed “Collateral” and for Bank to have a security interest in it that might otherwise be restricted
or prohibited by law or by the terms of any such license or agreement, whether now existing or entered into in the future, and (y) Bank to have the ability in the event of a liquidation of any Collateral to dispose of such Collateral in
accordance with Bank’s rights and remedies under this Agreement and the other Loan Documents. 
 5.3 Accounts Receivable;
Inventory. For any Eligible Account in any Borrowing Base Certificate, all statements made and all unpaid balances appearing in all invoices, instruments and other documents evidencing such Eligible Accounts are and shall be true and correct and
all such invoices, instruments and other documents, and all of Borrower’s Books are genuine and in all respects what they purport to be. Whether or not an Event of Default has occurred and is continuing, Bank may notify any Account Debtor owing
Borrower money of Bank’s security interest in such funds and verify the amount of such Eligible Account. All sales and other transactions underlying or giving rise to each Eligible Account shall comply in all material respects with all
applicable laws and governmental rules and regulations. Borrower has no knowledge of any actual or imminent Insolvency Proceeding of any Account 

  

 6 

 
Debtor whose accounts are Eligible Accounts in any Borrowing Base Certificate. To the best of Borrower’s knowledge, all signatures and endorsements on
all documents, instruments, and agreements relating to all Eligible Accounts are genuine, and all such documents, instruments and agreements are legally enforceable in accordance with their terms. 
 5.4 Litigation. As of the Effective Date, except as previously disclosed to Bank, there are no actions or proceedings pending or, to the knowledge
of the Responsible Officers, threatened in writing by or against Borrower or any of its Subsidiaries involving more than Two Hundred Fifty Thousand Dollars ($250,000). There are no actions or proceedings pending or, to the knowledge of the
Responsible Officers, threatened in writing by or against Borrower or any of its Subsidiaries that would reasonably be expected to have a material adverse effect on Borrower’s business. 
 5.5 No Material Deviation in Financial Statements. All consolidated financial statements for Borrower and any of its Subsidiaries delivered to
Bank fairly present in all material respects Borrower’s consolidated financial condition and Borrower’s consolidated results of operations as of the date of such financial statements (subject to the absence of footnotes and year-end audit
adjustments in the case of interim financial statements). 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. 
 5.6 Solvency. The fair salable value of Borrower’s assets (including goodwill minus disposition costs) exceeds the fair value of its
liabilities; 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. 
 5.7 Regulatory Compliance. Borrower is not an “investment company” or a company “controlled” by an “investment
company” under the Investment Company Act of 1940, as amended. Borrower is not engaged as one of its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of Governors). Borrower
has complied in all material respects with the Federal Fair Labor Standards Act. Neither Borrower nor any of its Subsidiaries is a “holding company” or an “affiliate” of a “holding company” or a “subsidiary
company” of a “holding company” as each term is defined and used in the Public Utility Holding Company Act of 2005. Except as previously disclosed to Bank, Borrower has not violated any laws, ordinances or rules, the violation of
which could reasonably be expected to have a material adverse effect on its business. None of Borrower’s or any of its Subsidiaries’ 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 or de minimus uses that could not reasonably be expected to have a material adverse effect on Borrower’s
business. Borrower and each of its Subsidiaries have 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 their respective
businesses as currently conducted except to the extent the failure to do so could not reasonably be expected to have a material adverse effect on Borrower’s business. 
 5.8 Subsidiaries; Investments. Borrower does not own any stock, partnership interest or other equity securities except for Permitted Investments.

 5.9 Tax Returns and Payments; Pension Contributions. Borrower has timely filed all required federal income tax returns and all
other material tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower, except to the extent the failure to so timely pay could not reasonably be
expected to have a material adverse effect on Borrower’s business. Borrower may defer payment of any contested taxes, provided that Borrower (a) in good faith contests its obligation to pay the taxes by appropriate proceedings promptly and
diligently instituted and conducted, (b) notifies Bank in writing of the commencement of, and any material development in, the proceedings, (c) posts bonds or takes any other steps required to prevent the governmental authority levying
such contested taxes from obtaining a Lien upon any of the Collateral that is other than a “Permitted Lien”. As of the Effective Date, Borrower is unaware of any claims or adjustments proposed for any of Borrower’s prior tax years
which could result in additional taxes becoming due and payable by Borrower. Borrower has paid all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, and Borrower has not
withdrawn from 

  

 7 

 
participation in, and has not permitted partial or complete termination of, or permitted the occurrence of any other event with respect to, any such plan
which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 
 5.10 Use of Proceeds. Borrower shall use the proceeds of the Credit Extensions solely as working capital, to purchase Eligible Equipment, and to
fund its general business requirements and not for personal, family, household or agricultural purposes. 
 5.12 Full Disclosure. No
written representation, warranty or other statement of Borrower in any certificate or written statement given to Bank, as of the date such representation, warranty, or other statement was made, taken together with all such written certificates and
written statements given 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
or forecasted results). 
  

	 	6	AFFIRMATIVE COVENANTS 

 Borrower shall do all
of the following: 
 6.1 Government Compliance. Borrower shall, and shall cause each of its Subsidiaries to, maintain its legal
existence and good standing in its jurisdiction of formation and each jurisdiction in which the nature of its business requires them to be so qualified, except where the failure to take such action would not reasonably be expected to have a material
adverse effect on Borrower’s and its Subsidiaries’ business or operations, taken as a whole; provided, that (a) the legal existence of any Subsidiary that is not a Guarantor may be terminated or permitted to lapse, and any
qualification of such Subsidiary to do business may be terminated or permitted to lapse, if, in the good faith judgment of Borrower, such termination or lapse is in the best interests of Borrower and its Subsidiaries, taken as a whole, and
(b) Borrower may not permit its qualification to do business in the jurisdiction of its chief executive office to terminate or lapse; and provided, further, that this Section 6.1 shall not be construed to prohibit any other
transaction that is otherwise expressly permitted in Section 7 of this Agreement. 
 Borrower shall comply, and shall 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. 
 6.2 Financial Statements, Reports, Certificates. 
 (a) Deliver to Bank: (i) as soon as available, but no later than five (5) days after filing with the Securities Exchange Commission, Borrower’s 10K, 10Q, and 8K reports; (ii) a Compliance
Certificate together with delivery of the 10K and 10Q reports; (iii) beginning with fiscal year ending December 31, 2008, as soon as available, but no later than one hundred eighty (180) days after the last day of Borrower’s
fiscal year, audited consolidated financial statements prepared under GAAP, consistently applied, together with an unqualified opinion on the financial statements from an independent certified public accounting firm acceptable to Bank in its
reasonable discretion (iv) within 45 days after the end of each fiscal year, annual financial projections for the following fiscal year (on a quarterly basis) as approved by Borrower’s board of directors, together with any related business
forecasts used in the preparation of such annual financial projections; (v) a prompt report of any legal actions pending or threatened against Borrower or any Subsidiary that could reasonably be expected to result in damages or costs to
Borrower or any Subsidiary of Two Hundred Fifty Thousand Dollars ($250,000) or more; and (vi) budgets, sales projections, operating plans or other financial information Bank reasonably requests. 
 Borrower’s 10K, 10Q, and 8K reports required to be delivered pursuant to Section 6.2(a)(i) shall be deemed to have been delivered on the date
on which Borrower posts such report or provides a link thereto on Borrower’s or another website on the Internet; provided, that Borrower shall provide paper copies to Bank of the Compliance Certificates required by
Section 6.2(a)(ii). 
  

 8 

 (b) Within thirty (30) days after the last day of each month, deliver to Bank a duly completed
Borrowing Base Certificate signed by a Responsible Officer, with aged listings of accounts receivable and accounts payable (by invoice date). 
 (c) Within thirty (30) days after the last day of each month, deliver to Bank its monthly financial statements together with a duly completed Compliance Certificate signed by a Responsible Officer setting forth calculations showing
compliance with the financial covenants set forth in this Agreement. 
 (d) Allow Bank to audit Borrower’s Collateral at Borrower’s
expense. Such audits shall be conducted no more often than once every six (6) months unless an Event of Default has occurred and is continuing. 
 6.3 Taxes; Pensions. Timely file, and require each of its Subsidiaries to timely file, all federal income tax returns and all other required material tax returns and reports and timely pay, and require each of
its Subsidiaries to timely file, all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower and each of its Subsidiaries, except for deferred payment of any taxes contested pursuant to the terms of
Section 5.9 hereof, and shall deliver to Bank, on demand, appropriate certificates attesting to such payments, and pay all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their
terms. 
 6.3 Insurance. Keep its business and the Collateral insured for risks and in amounts standard for companies in
Borrower’s industry and location and as Bank may reasonably request. Insurance policies shall be in a form, with companies, and in amounts that are satisfactory to Bank. All property policies shall have a lender’s loss payable endorsement
showing Bank as an additional loss payee and, to the extent available, waive subrogation against Bank, and all liability policies shall show, or have endorsements showing, Bank as an additional insured. All policies (or the loss payable and
additional insured endorsements) shall provide that the insurer shall endeavor to give Bank at least twenty (20) days notice before canceling, amending, or declining to renew its policy. At Bank’s request, Borrower shall deliver certified
copies of policies and evidence of all premium payments. Proceeds payable under any policy shall, at Bank’s option, be payable to Bank on account of the Obligations, provided that Bank, upon request of Borrower, agrees to promptly turn over
such proceeds to Borrower so that Borrower can repair such damaged assets or purchase additional or replacement assets so long as no Event of Default has occurred that is continuing. If Borrower fails to obtain insurance as required under this
Section 6.5 or to pay any amount or furnish any required proof of payment to third persons and Bank, Bank may make all or part of such payment or obtain such insurance policies required in this Section 6.5, and take any action under the
policies Bank deems prudent. 
 6.4 Operating Accounts. Other than as set forth in the Schedule, maintain
(i) its and its Subsidiaries’ operating and other deposit accounts with Bank and Bank’s Affiliates and (ii) its securities accounts with Bank and Bank’s Affiliates.  
 6.5 Financial Covenants. 
 Borrower
shall maintain at all times, to be tested as of the last day of each month, on a consolidated basis with respect to Borrower and its Subsidiaries: 
 (a) Tangible Net Worth. A Tangible Net Worth of at least ($52,000,000). 
 (b) Liquidity Coverage. A ratio of
unrestricted cash and Cash Equivalents at Bank or Bank’s Affiliates plus Eligible Accounts to all Indebtedness owed to Bank of not less than 1.25:1.00. 
 6.6 Protection and Registration of Intellectual Property Rights. Borrower shall: (a) protect, defend and maintain the validity and enforceability of its material intellectual property; (b) promptly
advise Bank in writing of material infringements of its intellectual property; and (c) not allow any intellectual property material to Borrower’s business to be abandoned, forfeited or dedicated to the public without Bank’s written
consent. If Borrower (i) obtains any patent, registered trademark or servicemark, registered copyright, registered mask work, or any pending application for any of the foregoing, whether as owner, licensee or otherwise, or (ii) applies for
any 

  

 9 

 
patent or the registration of any trademark or servicemark, then Borrower shall immediately provide written notice thereof to Bank and shall execute such
intellectual property security agreements and other documents and take such other actions as Bank shall request in its good faith business judgment to perfect and maintain a first priority perfected security interest in favor of Bank in such
property. If Borrower decides to register any copyrights or mask works in the United States Copyright Office, Borrower shall: (x) provide Bank with at least five (5) days prior written notice of Borrower’s intent to register such
copyrights or mask works together with a copy of the application it intends to file with the United States Copyright Office (excluding exhibits thereto); (y) execute an intellectual property security agreement and such other documents and take
such other actions as Bank may request in its good faith business judgment to perfect and maintain a first priority perfected security interest in favor of Bank in the copyrights or mask works intended to be registered with the United States
Copyright Office; and (z) record such intellectual property security agreement with the United States Copyright Office contemporaneously with filing the copyright or mask work application(s) with the United States Copyright Office. Borrower
shall promptly provide to Bank copies of all applications that it files for patents or for the registration of trademarks, servicemarks, copyrights or mask works, together with evidence of the recording of the intellectual property security
agreement necessary for Bank to perfect and maintain a first priority perfected security interest in such property. 
 6.7 Litigation
Cooperation. From the date hereof and continuing through the termination of this Agreement, make available to Bank, without expense to Bank, Borrower and its officers, employees and agents and Borrower’s books and records, to the extent
that Bank may deem them reasonably necessary to prosecute or defend any third-party suit or proceeding instituted by or against Bank with respect to any Collateral or relating to Borrower. 
 6.8 Further Assurances. Execute any further instruments and take further action as Bank reasonably requests to perfect or continue Bank’s
Lien in the Collateral or to effect the purposes of this Agreement. 
  

	 	7	NEGATIVE COVENANTS 

 Borrower shall not do
any of the following without Bank’s prior written consent: 
 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, except for Transfers (a) of Inventory, Equipment and other assets in the ordinary course of business;
(b) of worn-out or obsolete Equipment that does not constitute Financed Equipment; (c) in connection with Permitted Liens, Permitted Distributions and Permitted Investments; (d) of cash and cash equivalents pursuant to transactions
not prohibited by this Agreement; (e) of any equity interests of Borrower so long as no Change of Control results therefrom; (f) of intellectual property no longer (i) economically practicable to maintain or useful in the conduct of
the business of Borrower or (ii) has value; (g) of real or personal property that is leased in the ordinary course of business; (h) licenses, assignments and sales of intellectual property in the ordinary course of business, and
discounts, adjustments, settlements and compromises of accounts receivable and contract claims in the ordinary course of business. Notwithstanding the foregoing, Borrower shall be permitted Transfers to its international and domestic subsidiaries in
such reasonable amounts as Borrower may deem appropriate or necessary in the exercise of its reasonable business judgment to further the international and domestic expansion of the Borrower. 
 7.2 Changes in Business; Change in Control; Jurisdiction of Formation. 
 Engage in any material line of business other than those lines of business conducted by Borrower and its Subsidiaries on the date hereof and any
businesses reasonably related, complementary or incidental thereto or reasonable extensions thereof; permit or suffer any Change in Control. Borrower will not, without prior written notice, change its jurisdiction of formation. 
 7.3 Mergers or Acquisitions. 
 Merge
or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any Person other than with Borrower or any Subsidiary, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of 

  

 10 

 
the capital stock or property of a Person other than Borrower or any Subsidiary, except where no Event of Default has occurred and is continuing or would
result from such action, and (a) Borrower is the surviving entity if such transaction involves Borrower or (b) such merger or consolidation does not involve a Transfer otherwise prohibited pursuant to Section 7.1 hereof. 

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, allow, or suffer any Lien on any of the Financed Equipment, the Collateral, or 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, permit any Collateral not to be subject to the first priority security interest
granted herein, or enter into any agreement, document, instrument or other arrangement (except with or in favor of Bank) with any Person which directly or indirectly prohibits or has the effect of prohibiting Borrower or any Subsidiary from
assigning, mortgaging, pledging, granting a security interest in or upon, or encumbering any of Borrower’s or any Subsidiary’s intellectual property, except as is otherwise permitted in Section 7.1 hereof and the definition of
“Permitted Lien” herein. 
 7.6 Maintenance of Collateral Accounts. Maintain any Collateral Account except pursuant to the
terms of Section 6.6.(b) hereof. 
 7.7 Distributions; Investments. (a) Pay any dividends or make any distribution or
payment or redeem, retire or purchase any capital stock other than Permitted Distributions; or (b) 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 (other than any such dividends, distributions or payments, directly or indirectly, to Borrower). 
 7.8 Transactions
with Affiliates. Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower except for (a) transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable
terms (when viewed in the context of any series of transactions of which it may be a part, if applicable) that are no less favorable to Borrower than would be obtained in an arm’s length transaction with a non-affiliated Person; or
(b) transactions among Borrower and its Subsidiaries and among Borrower’s Subsidiaries so long as no Event of Default exists or could result therefrom. 
 7.9 Subordinated Debt. Make or permit any payment on any Subordinated Debt, except under (a) the terms of the subordination, intercreditor, or other similar agreement to which such Subordinated Debt is
subject, or (b) amend any provision in any document relating to the Subordinated Debt which would increase the amount thereof or adversely affect the subordination thereof to Obligations owed to Bank. 
 7.10 Compliance. Become an “investment company” or a company controlled by an “investment company”, under the Investment
Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), 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 permit any of its Subsidiaries to do so; withdraw or permit any Subsidiary to withdraw from participation in,
permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation plan which could reasonably be expected to result in any liability of Borrower,
including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 
  

	 	8	EVENTS OF DEFAULT 

 Any one of the following
shall constitute an event of default (an “Event of Default”) under this Agreement: 
 8.1 Payment Default. Borrower
fails to (a) make any payment of principal or interest on any Credit Extension on its due date, or (b) pay any other Obligations within three (3) Business Days after such Obligations are due and payable (which three (3) day grace
period shall not apply to payments due on the Revolving Line Maturity Date or the Equipment Maturity Date). During the cure period, the failure to cure the payment default is not an Event of Default (but no Credit Extension will be made during the
cure period); 
  

 11 

 8.2 Covenant Default. 
 (a) Borrower fails or neglects to perform any obligation in Sections 6.2, 6.3, 6.4, 6.5, 6.7, 6.8 or violates any covenant in Section 7; or

 (b) Borrower fails or neglects to perform, keep, or observe any other term, provision, condition, covenant or agreement contained in this
Agreement or any Loan Documents, and as to any default (other than those specified in this Section 8) under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the default within fifteen
(15) days after Borrower’s receipt of notice thereof; provided, however, that if the default cannot by its nature be cured within the fifteen (15) day period or cannot after diligent attempts by Borrower be cured within such fifteen
(15) day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional period (which shall not in any case exceed forty-five (45) days) to attempt to cure such default, and within such
reasonable time period the failure to cure the default shall not be deemed an Event of Default (but no Credit Extensions shall be made during such cure period). Grace periods provided under this section shall not apply, among other things, to
financial covenants or any other covenants set forth in subsection (a) above; 
 8.3 Material Adverse Change. A Material Adverse
Change occurs; 
 8.4 Attachment; Levy; Restraint on Business. (a) (i) The service of process seeking to attach, by trustee
or similar process, any funds of Borrower or of any entity under control of Borrower (including a Subsidiary) on deposit with Bank or any Bank Affiliate, or (ii) a notice of lien, levy, or assessment is filed against any of Borrower’s
assets by any government agency, and the same under subclauses (i) and (ii) hereof are not, within ten (10) days after the occurrence thereof, discharged or stayed (whether through the posting of a bond or otherwise); provided,
however, no Credit Extensions shall be made during any ten (10) day cure period; and (b) (i) any material portion of Borrower’s assets is attached, seized, levied on, or comes into possession of a trustee or receiver, or
(ii) any court order enjoins, restrains, or prevents Borrower from conducting any material part of its business; 
 8.5
Insolvency. (a) Borrower is unable to pay its debts (including trade debts) as they become due or otherwise becomes insolvent; (b) Borrower begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against Borrower
and not dismissed or stayed within thirty (30) days (but no Credit Extensions shall be made while of any of the conditions described in clause (a) exist and/or until any Insolvency Proceeding is dismissed); 
 8.6 Other Agreements. There is a default in any agreement to which Borrower is a party with a third party or parties resulting in a right by such
third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess of Fifty Thousand Dollars ($50,000) or that could have a material adverse effect on Borrower’s business; 
 8.7 Judgments. One or more judgments, orders, or decrees for the payment of money in an amount, individually or in the aggregate, of at least Two
Hundred Fifty Thousand Dollars ($250,000) (not covered by independent third-party insurance as to which liability has been accepted by such insurance carrier) shall be rendered against Borrower and shall remain unsatisfied, unvacated, or unstayed
for a period of ten (10) days after the entry thereof (provided that no Credit Extensions will be made prior to the satisfaction, vacation, or stay of such judgment, order, or decree); 
 8.8 Misrepresentations. Borrower or any Person acting for Borrower makes any representation, warranty, or other statement now or later in this
Agreement, any Loan Document or in any writing delivered to Bank or to induce Bank to enter this Agreement or any Loan Document, and such representation, warranty, or other statement is incorrect in any material respect when made; 
  

 12 

 8.9 Subordinated Debt. A default or breach occurs under any agreement between Borrower and any
creditor of Borrower that signed a subordination, intercreditor, or other similar agreement with Bank, or any creditor that has signed such an agreement with Bank breaches any terms of such agreement; or 
  

	 	9	BANK’S RIGHTS AND REMEDIES 

 9.1
Rights and Remedies. While 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, notify any Person owing Borrower money of Bank’s security interest in such funds, and verify the amount of such account; 
 (d) make any payments and do any acts it considers necessary or reasonable to protect the Collateral and/or its security interest in the Collateral. Borrower shall assemble the Collateral if Bank requests 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 under this Section 9.1; 
 (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 hereby 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, 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; 
 (g) place a “hold” on any
account maintained with Bank and/or deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any Control Agreement or similar agreements providing control of any Collateral; 
 (h) demand and receive possession of Borrower’s Books; and 
 (i) exercise all rights and remedies available to Bank under the Loan Documents or at law or equity, including all remedies provided under the Code (including disposal of the Collateral pursuant to the terms thereof).

 9.2 Power of Attorney. Borrower hereby irrevocably appoints Bank as its lawful attorney-in-fact, exercisable upon the occurrence
and during the continuance of an Event of Default, to: (a) endorse Borrower’s name on any checks or other forms of payment or security; (b) sign Borrower’s name on any invoice or bill of lading for any Account or drafts against
Account Debtors; (c) settle and adjust disputes and claims about the Accounts 

  

 13 

 
directly with Account Debtors, for amounts and on terms Bank determines reasonable; (d) make, settle, and adjust all claims under Borrower’s
insurance policies; (e) pay, contest or settle any Lien, charge, encumbrance, security interest, and adverse claim in or to the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and
(f) transfer the Collateral into the name of Bank or a third party as the Code permits. Borrower hereby appoints Bank as its lawful attorney-in-fact to sign Borrower’s name on any documents necessary to perfect or continue the perfection
of Bank’s security interest in the Collateral regardless of whether an Event of Default has occurred until all Obligations (other than inchoate indemnity obligations) have been satisfied in full and Bank is under no further obligation to make
Credit Extensions hereunder. Bank’s foregoing appointment as Borrower’s attorney in fact, and all of Bank’s rights and powers, coupled with an interest, are irrevocable until all Obligations (other than inchoate indemnity obligations)
have been fully repaid and performed and Bank’s obligation to provide Credit Extensions terminates. 
 9.3 Protective Payments.
If Borrower fails to obtain the insurance called for by Section 6.5 or fails to pay any premium thereon or fails to pay any other amount which Borrower is obligated to pay under this Agreement or any other Loan Document, Bank may obtain such
insurance or make such payment, and all amounts so paid by Bank are Bank Expenses and immediately due and payable, bearing interest at the then highest applicable rate, and secured by the Collateral. Bank will make reasonable efforts to provide
Borrower with notice of Bank obtaining such insurance at the time it is obtained or within a reasonable time thereafter. No payments by Bank are deemed an agreement to make similar payments in the future or Bank’s waiver of any Event of
Default. 
 9.4 Application of Payments and Proceeds. Borrower shall have no right to specify the order or the accounts to which Bank
shall allocate or apply any payments required to be made by Borrower to Bank or otherwise received by Bank under this Agreement when any such allocation or application is not specified elsewhere in this Agreement. If an Event of Default has occurred
and is continuing, Bank may apply any funds in its possession, whether from Borrower account balances, payments, proceeds realized as the result of any collection of Accounts or other disposition of the Collateral, or otherwise, to the Obligations
in such order as Bank shall determine in its sole discretion. Any surplus shall be paid to Borrower or other Persons legally entitled thereto; Borrower shall remain liable to Bank for any deficiency. If Bank, in its good faith business judgment,
directly or indirectly enters into a deferred payment or other credit transaction with any purchaser at any sale of Collateral, Bank shall have the option, exercisable at any time, of either reducing the Obligations by the principal amount of the
purchase price or deferring the reduction of the Obligations until the actual receipt by Bank of cash therefor. 
 9.5 Bank’s
Liability for Collateral. So long as Bank complies with reasonable banking practices regarding the safekeeping of the Collateral in the possession or under the control of Bank, Bank shall not be liable or responsible 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 No Waiver; Remedies Cumulative. Bank’s failure, at any time or times, to
require strict performance by Borrower of any provision of this Agreement or any other Loan Document shall not waive, affect, or diminish any right of Bank thereafter to demand strict performance and compliance herewith or therewith. No waiver
hereunder shall be effective unless signed by Bank and then is only effective for the specific instance and purpose for which it is given. Bank’s rights and remedies under this Agreement and the other Loan Documents 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 in exercising any remedy
is not a waiver, election, or acquiescence. 
 9.7 Demand Waiver. Borrower waives demand, notice of default or dishonor, notice of
payment and nonpayment, notice of any default (except as otherwise specified herein), 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. 
  

 14 

	 	10	NOTICES 

 All notices, consents, requests,
approvals, demands, or other communication by any party to this Agreement or any other Loan Document must be in writing and shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of actual receipt and three
(3) Business Days after deposit in the U.S. mail, first class, registered or certified mail return receipt requested, with proper postage prepaid; (b) upon transmission, when sent by electronic mail or facsimile transmission; (c) one
(1) Business Day after deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and sent to the address,
facsimile number, or email address indicated below. Bank or Borrower may change its mailing or electronic mail address or facsimile number by giving the other party written notice thereof in accordance with the terms of this Section 10.

  

			
	 If to Borrower:
	 	MOTIVE, INC.
		 	12515 Research Blvd., Bldg. 5
		 	Austin, TX 78759
		 	Attn: Mike Fitzpatrick
		 	Fax: 512.339.9040
		 	Email: mikef@motive.com
		
	 If to Bank:
	 	Silicon Valley Bank
		 	7000 North Mopac, Suite 360
		 	Austin, Texas 78731
		 	Attn: Phillip A. Wright
		 	Fax: 512.794.0853
		 	Email: pwright@svb.com

  

	 	11	CHOICE OF LAW, VENUE, JURY TRIAL WAIVER AND JUDICIAL REFERENCE 

 California 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 Santa Clara County, California
for any action or claim arising out of the Loan Documents; provided, however, that nothing in this Agreement shall be deemed to operate to preclude Bank from bringing suit or taking other legal action in any other jurisdiction to realize on the
Collateral or any other security for the Obligations, or to enforce a judgment or other court order in favor of Bank. Borrower expressly submits and consents in advance to such jurisdiction in any action or suit commenced in any such court, and
Borrower hereby waives any objection that it may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such court.
Borrower hereby waives personal service of the summons, complaints, and other process issued in such action or suit and agrees that service of such summons, complaints, and other process may be made by registered or certified mail addressed to
Borrower at the address set forth in Section 10 of this Agreement and that service so made shall be deemed completed upon the earlier to occur of Borrower’s actual receipt thereof or three (3) days after deposit in the U.S. mails,
proper postage prepaid. 
 TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF
ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, 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. 
 WITHOUT INTENDING IN ANY WAY TO LIMIT THE
PARTIES’ AGREEMENT TO WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY, if the above waiver of the right to a trial by jury is not enforceable, the parties hereto agree that any and all disputes or controversies of any nature between them
arising at any time shall be decided by a reference to a private judge, mutually selected by the parties (or, if they cannot agree, by the Presiding Judge of the Santa Clara County, California Superior Court) appointed in accordance with California
Code of Civil Procedure Section 638 (or pursuant to comparable provisions of federal law if the dispute falls within the exclusive jurisdiction of the federal courts), sitting without a jury, in Santa Clara County, California; and the parties

  

 15 

 
hereby submit to the jurisdiction of such court. The reference proceedings shall be conducted pursuant to and in accordance with the provisions of California
Code of Civil Procedure §§ 638 through 645.1, inclusive. The private judge shall have the power, among others, to grant provisional relief, including without limitation, entering temporary restraining orders, issuing preliminary and
permanent injunctions and appointing receivers. All such proceedings shall be closed to the public and confidential and all records relating thereto shall be permanently sealed. If during the course of any dispute, a party desires to seek
provisional relief, but a judge has not been appointed at that point pursuant to the judicial reference procedures, then such party may apply to the Santa Clara County, California Superior Court for such relief. The proceeding before the private
judge shall be conducted in the same manner as it would be before a court under the rules of evidence applicable to judicial proceedings. The parties shall be entitled to discovery which shall be conducted in the same manner as it would be before a
court under the rules of discovery applicable to judicial proceedings. The private judge shall oversee discovery and may enforce all discovery rules and order applicable to judicial proceedings in the same manner as a trial court judge. The parties
agree that the selected or appointed private judge shall have the power to decide all issues in the action or proceeding, whether of fact or of law, and shall report a statement of decision thereon pursuant to the California Code of Civil Procedure
§ 644(a). Nothing in this paragraph shall limit the right of any party at any time to exercise self-help remedies, foreclose against collateral, or obtain provisional remedies. The private judge shall also determine all issues relating to the
applicability, interpretation, and enforceability of this paragraph. 
  

	 	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 or obligations under it without Bank’s prior written consent (which may be
granted or withheld in Bank’s discretion). Bank has the right, without the 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 and the other Loan Documents. Notwithstanding the foregoing, prior to the occurrence of an Event of Default, Bank shall not assign any interest in the Loan Documents to an operating company which is a direct competitor
of Borrower. 
 12.2 Indemnification. Borrower agrees to indemnify, defend and hold Bank and its directors, officers, employees,
agents, attorneys, or any other Person affiliated with or representing Bank (each, an “Indemnified Person”) harmless against: (a) all obligations, demands, claims, and liabilities (collectively, “Claims”)
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 such Indemnified Person from, following, or arising from transactions between Bank and
Borrower (including reasonable attorneys’ fees and expenses), except for Claims and/or losses directly caused by such Indemnified Person’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 Provisions. Each provision of this Agreement is severable from every other provision in determining the enforceability of any
provision. 
 12.5 Correction of Loan Documents. With the prior consent of Borrower, Bank may correct patent errors and fill in any
blanks in this Agreement and the other Loan Documents consistent with the agreement of the parties. 
 12.6 Amendments in Writing;
Integration. All amendments to this Agreement must be in writing and signed by both Bank and Borrower. This Agreement and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements.
All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Agreement and the Loan Documents merge into this Agreement and the Loan Documents. 
  

 16 

 12.7 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. 
 12.8 Survival. All covenants, representations and warranties made in this Agreement continue in full force until this Agreement has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and
any other obligations which, by their terms, are to survive the termination of this Agreement) have been satisfied. The obligation of Borrower in Section 12.2 to indemnify Bank shall survive until the statute of limitations with respect to such
claim or cause of action shall have run. 
 12.9 Confidentiality. In handling any confidential information, Bank shall exercise the
same degree of care that it exercises for its own proprietary information, but disclosure of information may be made: (a) to Bank’s Subsidiaries or Affiliates that have agreed to keep such information confidential on the same basis as
Bank; (b) to prospective transferees or purchasers of any interest in the Credit that have agreed to keep such information confidential on the same basis as Bank; (b) to prospective transferees or purchasers of any interest in the Credit
that have agreed to keep such information confidential on the same basis as Bank; (c) as required by law, regulation, subpoena, or other order; (d) to Bank’s regulators or as otherwise required in connection with Bank’s
examination or audit; (e) as Bank considers appropriate in exercising remedies under the Loan Documents; and (f) to third-party service providers of Bank so long as such service providers have executed a confidentiality agreement with Bank
with terms no less restrictive than those contained herein. Confidential information does not include information that either: (i) 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 (ii) is disclosed to Bank by a third party, if Bank does not know that the third party is prohibited from disclosing the information. 
 Bank may use confidential information for any purpose, including, without limitation, for the development of client databases, reporting purposes, and market analysis, so long as Bank does not disclose Borrower’s
identity or the identity of any person associated with Borrower unless otherwise expressly permitted by this Agreement. The provisions of the immediately preceding sentence shall survive the termination of this Agreement. 
 12.10 Attorneys’ Fees, Costs and Expenses. In any action or proceeding between Borrower and Bank arising out of or relating to the Loan
Documents, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and other costs and expenses incurred, in addition to any other relief to which it may be entitled. 
  

	 	13	DEFINITIONS 

 13.1 Definitions. As
used in this Agreement, the following terms have the following meanings: 
 “Account” is any “account” as defined
in the Code with such additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other sums owing to Borrower. 
 “Account Debtor” is any “account debtor” as defined in the Code with such additions to such term as may hereafter be made. 
 “Advance” or “Advances” means an advance (or advances) under the Revolving Line. 
 “Affiliate” of any 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. 
 “Agreement” is defined in the preamble hereof. 
 “Availability Amount” is (a) the lesser of (i) the Revolving Line or (ii) the Borrowing Base, and minus (b) the outstanding principal balance of any Advances. 
  

 17 

 “Bank” is defined in the preamble hereof. 
 “Bank Expenses” are all audit fees and expenses, costs, and expenses (including reasonable attorneys’ fees and expenses) for
preparing, amending, negotiating, administering, defending and enforcing the Loan Documents (including, without limitation, those incurred in connection with appeals or Insolvency Proceedings) or otherwise incurred with respect to Borrower and the
Loan Documents. 
 “Bankruptcy-Related Defaults” is defined in Section 9.1. 
 “Borrower” is defined in the preamble hereof 
 “Borrower’s Books” are all Borrower’s books and records including ledgers, federal and state tax returns, records regarding Borrower’s assets or liabilities, the Collateral, business
operations or financial condition, and all computer programs or storage or any equipment containing such information. 
 “Borrowing
Base” is 80% of Eligible Accounts, as determined by Bank from Borrower’s most recent Borrowing Base Certificate; provided, however, that Bank may decrease the foregoing percentage in its good faith business judgment based on events,
conditions, contingencies, or risks which, as determined by Bank in connection with the results of an audit in accordance with this Agreement, may adversely affect Collateral less a reserve of $801,000. 
 “Borrowing Base Certificate” is that certain certificate in the form attached hereto as Exhibit C. 
 “Borrowing Resolutions” are, with respect to any Person, those resolutions substantially in the form attached hereto as Exhibit
E. 
 “Business Day” is any day that is not a Saturday, Sunday or a day on which Bank is closed. 
 “Cash Equivalents” means (a) marketable direct obligations issued or unconditionally guaranteed by the United States or any agency
or any State thereof having maturities of not more than one (1) year from the date of acquisition; (b) commercial paper maturing no more than one (1) year after its creation and having the highest rating from either
Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc.; and (c) Bank’s certificates of deposit issued maturing no more than one (1) year after issue. 
 “Change in Control” means any event, transaction, or occurrence as a result of which (a) any “person” (as such term is
defined in Sections 3(a)(9) and 13(d)(3) of the Securities Exchange Act of 1934, as an amended (the “Exchange Act”)), other than a trustee or other fiduciary holding securities under an employee benefit plan of Borrower, is or
becomes a beneficial owner (within the meaning Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of Borrower, representing fifty percent (50%) or more of the combined voting power of Borrower’s then
outstanding securities; or (b) during any period of twelve consecutive calendar months, individuals who at the beginning of such period constituted the Board of Directors of Borrower (together with any new directors whose election by the Board
of Directors of Borrower was approved by a vote of at least two-thirds of the directors then still in office who either were directions at the beginning of such period or whose election or nomination for election was previously so approved) cease
for any reason other than death or disability to constitute a majority of the directors then in office; provided, however, that the consummation of the transactions contemplated by that certain Agreement and Plan of Merger by and among Lucent
Technologies, Inc., Magic Acquisition Subsidiary Inc. and Motive Inc., dated as of June 16, 2008, shall not constitute a Change of Control. 
 “Code” is the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in the State of California; provided, that, to the extent that the Code is used to define any term herein or in any Loan
Document and such term is defined differently in different Articles or Divisions of the Code, the definition of such term contained in Article or Division 9 shall govern; provided further, that in the event that, by reason of mandatory provisions of
law, any or all of the attachment, perfection, or priority of, or remedies with respect to, Bank’s Lien on any Collateral is governed by the Uniform Commercial Code in effect in a jurisdiction other than the State of 

  

 18 

 
California, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes
on the provisions thereof relating to such attachment, perfection, priority, or remedies and for purposes of definitions relating to such provisions. 
 “Collateral” is any and all properties, rights and assets of Borrower described on Exhibit A. 
 “Collateral Account” is any Deposit Account, Securities Account, or Commodity Account. 
 “Commodity Account” is any “commodity account” as defined in the Code with such additions to such term as may hereafter be made. 
 “Compliance Certificate” is that certain certificate in the form attached hereto as Exhibit D. 
 “Contingent Obligation” is, for any Person, any direct or indirect liability, contingent or not, of that Person for (a) 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; (b) any obligations for undrawn letters of credit
for the account of that Person; and (c) 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 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
any guarantee or other support arrangement. 
 “Control Agreement” is any control agreement entered into among the
depository institution at which Borrower maintains a Deposit Account or the securities intermediary or commodity intermediary at which Borrower maintains a Securities Account or a Commodity Account, Borrower, and Bank pursuant to which Bank obtains
control (within the meaning of the Code) over such Deposit Account, Securities Account, or Commodity Account. 
 “Credit
Extension” is any Advance, Equipment Advance, or any other extension of credit by Bank for Borrower’s benefit made under this Agreement. 
 “Default Rate” is defined in Section 2.3(b). 
 “Deposit Account” is
any “deposit account” as defined in the Code with such additions to such term as may hereafter be made. 
 “Designated
Deposit Account” is Borrower’s deposit account, account number 3300444628, maintained with Bank. 
 “Dollars,”
“dollars” and “$” each mean lawful money of the United States. 
 “Draw Period” is the
period of time from the Effective Date through the earlier to occur of (a) July 7, 2009, or (b) an Event of Default. 
 “Effective Date” is the date Bank executes this Agreement as indicated on the signature page hereof. 
 “Eligible Accounts” means Accounts which arise in the ordinary course of Borrower’s business that meet all Borrower’s representations and warranties in Section 5.3. Bank reserves the right at any time after
the Effective Date to adjust any of the criteria set forth below and to establish new criteria in its good faith business judgment. Eligible Accounts shall not include: 
 (a) Accounts for which the Account Debtor has not been invoiced; 
  

 19 

 (b) Accounts that the Account Debtor has not paid within ninety (90) days of invoice date regardless
of invoice payment period terms; 
 (c) Accounts owing from an Account Debtor, fifty percent (50%) or more of whose Accounts have not
been paid within ninety (90) days of invoice date; 
 (d) Accounts with credit balances over ninety (90) days from invoice date;

 (e) Accounts owing from an Account Debtor, including Affiliates, whose total obligations to Borrower exceed twenty-five (25%) of all
Accounts for the amounts that exceed that percentage, unless Bank approves in writing; 
 (f) Accounts owing from an Account Debtor which
does not have its principal place of business in the United States; 
 (g) Accounts owing from an Account Debtor which is a federal, state or
local government entity or any department, agency, or instrumentality thereof, unless Borrower has complied with the Assignment of Claims Act and delivered to Bank all necessary documentation in connection therewith; 
 (h) Accounts owing from an Account Debtor to the extent that Borrower is indebted or obligated in any manner to the Account Debtor (as creditor, lessor,
supplier or otherwise - sometimes called “contra” accounts, accounts payable, customer deposits or credit accounts), with the exception of customary credits, adjustments and/or discounts given to an Account Debtor by Borrower in the
ordinary course of its business; 
 (i) Accounts for demonstration or promotional equipment, or in which goods are consigned, or sold on a
“sale guaranteed”, “sale or return”, “sale on approval”, “bill and hold”, or other terms if Account Debtor’s payment may be conditional; 
 (j) Accounts for which the Account Debtor is Borrower’s Affiliate, officer, employee, or agent; 
 (k) Accounts in which the Account Debtor disputes liability or makes any claim (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; and 
 (m) Accounts for which Bank in its good faith
business judgment determines collection to be doubtful. 
 “Eligible Equipment” is the following to the extent it complies
with all of Borrower’s representations and warranties to Bank, is located at Borrower’s principal place of business or such other location of which Bank has approved in writing, and is subject to a first priority Lien in favor of Bank:
(a) general purpose equipment computer equipment, office equipment, test and laboratory equipment, furnishings, subject to the limitations set forth herein, and (b) Other Equipment. 
 “Equipment” is all “equipment” as defined in the Code with such additions to such term as may hereafter be made, and includes
without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing. 
 “Equipment Advance” is defined in Section 2.1.2. 
 “Equipment Line” is an Equipment Advance or
Equipment Advances in an aggregate amount of up to Six Million Dollars ($6,000,000). 
 “Equipment Maturity Date” is, for
each Equipment Advance, a date 36 months after such Equipment Advance but no later than July 7, 2012. 
  

 20 

 “ERISA” is the Employee Retirement Income Security Act of 1974, and its regulations.

 “Event of Default” is defined in Section 8. 
 “EXIM Agreement” shall mean that certain Loan and Security Agreement (EX-IM Loan Facility) of even date herewith by and between Bank and
Borrower, as amended or otherwise modified from time to time. 
 “Financed Equipment” is all present and future Eligible
Equipment in which Borrower has any interest which is financed by an Equipment Advance. 
 “Funding Date” is any date on
which a Credit Extension is made to or on account of Borrower which shall be a Business Day. 
 “GAAP” is generally accepted
accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such
other statements by such other Person as may be approved by a significant segment of the accounting profession, which are applicable to the circumstances as of the date of determination. 
 “General Intangibles” is all “general intangibles” as defined in the Code in effect on the date hereof with such additions to
such term as may hereafter be made, and includes without limitation, all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished, any
patents, trademarks, service marks and, to the extent permitted under applicable law, any applications therefor, whether registered or not, any trade secret rights, including any rights to unpatented inventions, payment intangibles, royalties,
contract rights, goodwill, franchise agreements, purchase orders, customer lists, route lists, telephone numbers, domain names, claims, income and other tax refunds, security and other deposits, options to purchase or sell real or personal property,
rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and business interruption insurance), payments of insurance and rights to
payment of any kind. 
 “Governmental Approval” is any consent, authorization, approval, order, license, franchise, permit,
certificate, accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority. 
 “Governmental Authority” is any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any self-regulatory organization. 
 “Indebtedness” is (a) indebtedness for borrowed money or the deferred purchase price of property or services, and all reimbursement
and other similar 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. 
 “Indemnified Person” is defined in Section 12.2. 
 “Initial Audit” is Bank’s inspection of Borrower’s Accounts, the Collateral, and Borrower’s Books. 
 “Insolvency Proceeding” is any proceeding 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. 
 “Inventory” is all “inventory” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts,
supplies, 

  

 21 

 
packing and shipping materials, work in process and finished products, including without limitation such inventory as is temporarily out of Borrower’s
custody or possession or in transit and including any returned goods and any documents of title representing any of the above. 
 “Investment” is any beneficial ownership interest in any Person (including stock, partnership interest or other securities), and any loan, advance or capital contribution to any Person. 
 “IP Agreement” is that certain Intellectual Property Security Agreement executed and delivered by Borrower to Bank dated as of
July 7, 2008. 
 “Lien” is a claim, mortgage, deed of trust, levy, charge, pledge, security interest or other
encumbrance of any kind, whether voluntarily incurred or arising by operation of law or otherwise against any property. 
 “Loan
Amount” in respect of each Equipment Advance is the original principal amount of such Equipment Advance. 
 “Loan
Documents” are, collectively, this Agreement, the Perfection Certificate, the IP Agreement, any note, or notes or guaranties executed by Borrower or any Guarantor in connection with this Agreement, and any other present or future agreement
between Borrower any Guarantor and/or for the benefit of Bank in connection with this Agreement, all as amended, restated, or otherwise modified. 
 “Make-Whole Premium” is an amount equal to 2% of the aggregate outstanding principal amount of the Equipment Advances if the prepayment is made on or before the first anniversary of the date hereof; 1% of the aggregate
outstanding principal amount of the Equipment Advances if the prepayment is made on or after the first anniversary hereof but before the second anniversary hereof. 
 “Material Adverse Change” is (a) a material impairment in the perfection or priority of Bank’s Lien in the Collateral or in the value of such Collateral; (b) a material adverse change
in the business, operations, or condition (financial or otherwise) of Borrower; (c) a material impairment of the prospect of repayment of any portion of the Obligations; or (d) Bank determines, based upon information available to it and in
its reasonable judgment, that there is a reasonable likelihood that Borrower shall fail to comply with one or more of the financial covenants in Section 6 during the next succeeding financial reporting period. 
 “Obligations” are Borrower’s obligation to pay when due any debts, principal, interest, Bank Expenses and other amounts Borrower
owes Bank now or later, that arise under this Agreement or the Loan Documents, including interest accruing after Insolvency Proceedings begin, and the performance of Borrower’s duties under the Loan Documents. 
 “Operating Documents” are, for any Person, such Person’s formation documents, as certified with the Secretary of State of such
Person’s state of formation on a date that is no earlier than 30 days prior to the Effective Date, and, (a) if such Person is a corporation, its bylaws in current form, (b) if such Person is a limited liability company, its limited
liability company agreement (or similar agreement), and (c) if such Person is a partnership, its partnership agreement (or similar agreement), each of the foregoing with all current amendments or modifications thereto. 
 “Other Equipment” is leasehold improvements, intangible property such as computer software and software licenses, equipment specifically
designed or manufactured for Borrower, other intangible property, limited use property and other similar property and soft costs approved by Bank, including taxes, shipping, warranty charges, freight discounts and installation expenses. 

“Payment/Advance Form” is that certain form attached hereto as Exhibit B. 
 “Perfection Certificate” is defined in Section 5.1. 
  

 22 

 “Permitted Indebtedness” is: 
 (a) Borrower’s Indebtedness to Bank under this Agreement, the EXIM Agreement and any other Loan Documents; 
 (b) Indebtedness existing on the Effective Date and shown on the Perfection Certificate, and refinancings and renewals of such Indebtedness so long as
the principal amount or interest rate thereof is not increased; 
 (c) Subordinated Debt; 
 (d) unsecured Indebtedness to trade creditors incurred in the ordinary course of business; 
 (e) Indebtedness incurred as a result of endorsing negotiable instruments received in the ordinary course of business; 
 (f) capitalized leases and purchase money Indebtedness not to exceed $100,000 in the aggregate in any fiscal year secured by Permitted Liens; 

(g) Indebtedness under hedging agreements, in each case not entered into for speculative purposes; 
 (h) Indebtedness in respect of performance or surety bonds, workers’ compensation claims, self-insurance obligations and bankers acceptances issued
in the ordinary course of business, including guarantees or obligations with respect to letters of credit supporting such performance or surety bonds, workers’ compensation claims, self-insurance obligations and bankers acceptances (in each
case other than for an obligation for money borrowed); 
 (i) Indebtedness in respect of insurance premium financing for insurance being
acquired under customary terms and conditions; provided Borrower delivers to Bank a copy of the agreements executed in connection therewith; 
 (j) Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar instrument inadvertently drawn against insufficient funds in the ordinary course of business; provided, however, that such
Indebtedness is extinguished within five Business Days of incurrence; and 
 (k) other Indebtedness in an aggregate amount not to exceed
$150,000 at any time outstanding. 
 “Permitted Investments” are: 
 (a) Investments shown on the Perfection Certificate and existing on the Effective Date; 
 (b) Cash Equivalents; 
 (c) Investments
consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of Borrower; 
 (d) Investments consisting of deposit accounts in which Bank has a perfected security interest; 
 (e) Investments accepted in
connection with Transfers permitted by Section 7.1; 
 (f) Investments of Subsidiaries in or to other Subsidiaries or Borrower and
Investments by Borrower in Subsidiaries subject to the limitations on such Investments/Transfers set forth in Section 7.1; 
  

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 (g) Investments consisting of (i) travel advances and employee relocation loans and other employee
loans and advances in the ordinary course of business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of Borrower or its Subsidiaries pursuant to employee stock purchase plans or agreements
approved by Borrower’s Board of Directors; 
 (h) Investments (including debt obligations) received in connection with the bankruptcy or
reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business; 
 (i) Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who are not Affiliates,
in the ordinary course of business; provided that this paragraph (i) shall not apply to Investments of Borrower in any Subsidiary; 
 (j) Investments in connection with hedging agreements; and 
 (k) other Investments in an aggregate amount not to exceed $150,000 at
any time outstanding. 
 “Permitted Liens” are: 
 (a) Liens existing on the Effective Date and shown on the Perfection Certificate or arising under this Agreement and the 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, provided that no notice of any such Lien has been filed or recorded under the Internal Revenue Code of 1986, as amended, and the Treasury Regulations adopted thereunder; 
 (c) purchase money Liens (i) on Equipment (other than Financed Equipment) acquired or held by Borrower incurred for financing the acquisition of the
Equipment securing no more than $100,000 in the aggregate amount outstanding, or (ii) existing on Equipment (other than Financed Equipment) when acquired, if the Lien is confined to the property and improvements and the proceeds of the
Equipment; 
 (d) statutory Liens of carriers, warehousemen, suppliers, landlords, materialmen, mechanics or other Persons that are
possessory in nature arising in the ordinary course of business, which are not delinquent or remain payable without penalty or which are being contested in good faith and by appropriate proceedings (which proceedings have the effect of preventing
the forfeiture or sale of the property subject thereto) and with respect to which adequate reserves or other provisions are being maintained; 
 (e) Liens to secure payment of workers’ compensation, employment insurance, old-age pensions, social security and other like obligations incurred in the ordinary course of business (other than Liens imposed by ERISA); 
 (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; 
 (g) leases or subleases of real property granted in the ordinary course of business, and leases, subleases, non-exclusive licenses or sublicenses of property (other than real property or intellectual property) granted
in the ordinary course of Borrower’s business, if the leases, subleases, licenses and sublicenses do not prohibit granting Bank a security interest; 
 (h) non-exclusive license of intellectual property granted to third parties in the ordinary course of business; 
  

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 (i) Liens arising from attachments or judgments, orders, or decrees in circumstances not constituting an
Event of Default under Sections 8.4 and 8.7; 
 (j) Liens in favor of Bank securing obligations under the EXIM Agreement; 
 (k) easements, rights-of-way, restrictions (including zoning restrictions), covenants, licenses, encroachments, protrusions and other similar charges or
encumbrances, and minor title deficiencies on or with respect to any real property, in each case whether now or hereafter in existence, (i) not securing Indebtedness and (ii) the existence of which would not reasonably be expected to have
a material adverse effect on Borrower’s business; 
 (l) Liens arising out of judgments, attachments or awards not resulting in an Event
of Default; 
 (m) Liens arising out of conditional sale, title retention, consignment or similar arrangements for the sale of goods entered
into in the ordinary course of business; 
 (n) Liens on property of a person existing at the time such person or such property is acquired
or such person is merged with or into or consolidated with Borrower or its Subsidiaries (and not created in anticipation or contemplation thereof); provided that such Liens do not extend to property not subject to such Liens at the time of
acquisition (other than improvements thereon and proceeds thereof) and are no more favorable to the lienholders than such existing Lien; 
 (o) the filing of UCC financing statements solely as a precautionary measure in connection with operating leases or consignment of goods; 
 (p) Liens securing insurance premium financing under customary terms and conditions; provided that no such Lien may extend to or cover any property other than the insurance being acquired with such financing, the proceeds thereof and any
unearned or refunded insurance premiums relating thereto; provided Borrower delivers to Bank a copy of the agreements executed in connection therewith; and 
 (q) other Liens with respect to obligations that do not in the aggregate exceed $150,000 at any time outstanding. 
 “Person” is any individual, sole proprietorship, partnership, limited liability company, joint venture, company, 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. 
 “Registered Organization” is any “registered
organization” as defined in the Code with such additions to such term as may hereafter be made 
 “Requirement of Law”
is as to any Person, the organizational or governing documents of such Person, and any law (statutory or common), treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or
binding upon such Person or any of its property or to which such Person or any of its property is subject. 
 “Responsible
Officer” is any of the Chief Executive Officer, President, Chief Financial Officer and Controller of Borrower. 
 “Revolving
Line” is an Advance or Advances in an aggregate amount equal to Eight Million Dollars ($8,000,000). 
 “Revolving Line
Maturity Date” is July 6, 2009. 
  

 25 

 “Securities Account” is any “securities account” as defined in the Code with
such additions to such term as may hereafter be made. 
 “Subordinated Debt” is indebtedness incurred by Borrower
subordinated to all of Borrower’s now or hereafter indebtedness to Bank (pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Bank entered into between Bank and the other creditor), on
terms acceptable to Bank. 
 “Subsidiary” means, with respect to any Person, any Person of which more than 50.0% of the
voting stock or other equity interests (in the case of Persons other than corporations) is owned or controlled directly or indirectly by such Person or one or more of Affiliates of such Person. 
 “Tangible Net Worth” is, on any date, the consolidated total assets of Borrower and its Subsidiaries minus (a) any amounts
attributable to (i) goodwill, (ii) intangible items including unamortized debt discount and expense, patents, trade and service marks and names, copyrights and research and development expenses except prepaid expenses, (iii) notes,
accounts receivable and other obligations owing to Borrower from its officers or other Affiliates, and (iv) reserves not already deducted from assets, minus (b) 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, but excluding all other Subordinated Debt. 
 “Transfer” is defined in
Section 7.1. 
 [Signature page follows.] 
  

 26 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
Effective Date. 
  

			
	BORROWER:
	
	MOTIVE, INC.
		
	By	 	 /s/ Mike Fitzpatrick

	Name:	 	 Mike Fitzpatrick

	Title:	 	 Chief Financial Officer

	
	BANK:
	
	SILICON VALLEY BANK
		
	By	 	 /s/ Phillip A. Wright

	Name:	 	 Phillip A. Wright

	Title:	 	 Relationship Manager

	Effective Date: July 7, 2008

  

 27 

 EXHIBIT A 
 COLLATERAL DESCRIPTION 
 The Collateral consists of all of Borrower’s right, title and interest in and to
the following personal property: 
 All goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights
to payment of money, leases, license agreements, franchise agreements, General Intangibles, commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts,
fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever
located; 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, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing. 
 Notwithstanding the foregoing, the Collateral shall not be deemed to include (i) more than 66% of the total combined voting power of all classes of
stock entitled to vote the shares of capital stock of any Subsidiary of Borrower not incorporated or organized under the laws of one of the States or jurisdictions of the United States; (ii) any permit or license issued by a Governmental
Authority to Borrower or any agreement to which Borrower is a party, in each case, only to the extent and for so long as the terms of such permit, license or agreement or any law applicable thereto, validly prohibit the creation by Borrower of a
security interest in such permit, license or agreement in favor of Bank (after giving effect to Sections 9-406(d), 9-407(a), 9-408(a) or 9-409 of the Code (or any successor provision or provisions) or any other applicable law (including the United
States Bankruptcy Code) or principles of equity); and (iii) motor vehicles the perfection of a security interest in which is excluded from the Code in the relevant jurisdiction. 
  

 28

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