Document:

FIRST OMNIBUS AMENDMENT dated as of March 9, 2005

 Exhibit 10-AAad 
  
 FIRST OMNIBUS AMENDMENT 
  
 This FIRST OMNIBUS AMENDMENT (this “Amendment”), dated as of March 9, 2005 is by and among TECH DATA CORPORATION (“Tech
Data”), TECH DATA PRODUCT MANAGEMENT, INC., and TD FACILITIES, LTD. (individually, together with Tech Data Product Management, each, an “Alternate Lessee” and collectively the “Alternate Lessees”), TECH
DATA PRODUCT MANAGEMENT, INC., as a Guarantor, TECH DATA FINANCE PARTNER, INC., as a Guarantor, SUNTRUST EQUITY FUNDING, LLC, a Delaware limited liability company (the “Lessor”), certain financial institutions parties thereto as
lenders (collectively referred to as “Lenders” and individually as a “Lender”), and SUNTRUST BANK, a Georgia state banking corporation, as Administrative Agent for the Lenders (in such capacity, the
“Administrative Agent” and as a lease participant (in such capacity, the “Lease Participant”)). 
  
 WHEREAS, the Lessee, the Alternate Lessees, the Lessor, the Lenders and the Administrative Agent are parties to that certain Second Amended and
Restated Participation Agreement dated as of July 31, 2003 (as heretofore amended and as further amended from time to time, the “Participation Agreement”); 
  
 WHEREAS, the Lessee, the Lessor and the Alternate Lessees are parties to that certain Second Amended and Restated
Lease Agreement, dated as of July 31, 2003 (as heretofore amended and as further amended from time to time, the “Lease”); 
  
 WHEREAS, the Lessor and the Lease Participant are parties to that certain Lease Participation Agreement, dated as of July 31, 2003 (as heretofore
amended and as further amended from time to time, the “Lease Participation Agreement”); 
  
 WHEREAS, the Lenders, the Lessor and the Administrative Agent are parties to that certain Second Amended and Restated Credit Agreement dated as of
July 31, 2003 (as heretofore amended and as further amended from time to time, the “Credit Agreement”); 
  
 WHEREAS, the Guarantors issued the Second Amended and Restated Guaranty Agreement, dated as of July 31, 2003 (as heretofore amended and as further
amended from time to time, the “Guaranty”); 
  
 WHEREAS, at the Lessee’s request, the parties hereto, subject to the terms and conditions hereof, have agreed to amend the Participation Agreement, the Lease, the Lease Participation Agreement and the Credit Agreement as set
forth herein; 
  
 NOW, THEREFORE, the parties hereby agree
as follows: 
  
 SECTION 1. Defined Terms.
Capitalized terms used herein without definition that are defined in the Participation Agreement shall have the same meanings herein as in the Participation Agreement. 
  

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 SECTION 2. Amendments to the Definitions. Appendix A to the Participation Agreement
is hereby amended as follows: 
  
 (a) The definition of
“Affiliate” is hereby amended by deleting the last sentence thereof. 
  
 (b) The definition of “Amended Tech Data Credit Agreement” is hereby deleted and the following definition is substituted therefor: 
  
 “Amended Tech Data Credit Agreement” shall mean the Second Amended and Restated Credit
Agreement, dated as of March 7, 2005, among Tech Data, Bank of America, N.A. as Administrative Agent, swing line lender and l/c issuer, and the lender parties thereto, as such agreement may be amended, modified or restated from time to time.

  
 (c) The definition of “Applicable Margin” is hereby
deleted and the following definition is substituted therefor: 
  
 “Applicable Margin” means, from time to time, the following percentages per annum, based upon the Debt Ratings of both S&P and Moody’s as set forth below: 
  

							
	 Pricing
Level

	  	 Debt Ratings
S&P/Moody’s

	  	Eurodollar
Rate

	 	Base Rate

	 1
	  	BBB+/Baa1 or higher	  	0.750%	 	0.150%
	 2
	  	BBB/Baa2	  	0.875%	 	0.175%
	 3
	  	BBB-/Baa3	  	1.000%	 	0.200%
	 4
	  	BB+/Ba1	  	1.250%	 	0.500%
	 5
	  	Lower than BB+/Ba1	  	1.500%	 	0.800%

  
 “Debt Rating” means, as of any date of determination, the rating as determined by either S&P or Moody’s (collectively, the “Debt Ratings”) of Tech Data’s non-credit-enhanced, senior unsecured
long-term debt; provided that if a Debt Rating is issued by each of the foregoing rating agencies, then the higher of such Debt Ratings shall apply (with the Debt Rating for Pricing Level 1 being the highest and the Debt Rating for Pricing
Level 5 being the lowest). 
  
 Initially, the Applicable Margin
shall be determined based upon the Debt Rating specified in the certificate delivered pursuant to Section 5.01(a)(vii) of the Amended Tech Data Credit Agreement. Thereafter, each change in the Applicable Margin resulting from a publicly
announced change in the Debt Rating shall be effective, in the case of an upgrade, during the period commencing on the date of delivery by Tech Data to the 

  

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Administrative Agent of notice thereof pursuant to Section 7.03(e) of the Amended Tech Data Credit Agreement and ending on the date immediately
preceding the effective date of the next such change and, in the case of a downgrade, during the period commencing on the date of the public announcement thereof and ending on the date immediately preceding the effective date of the next such
change. 
  
 (d) The definition of “Direct Foreign
Subsidiary” is hereby deleted and the following definition is substituted therefor: 
  
 “Direct Foreign Subsidiary” has the meaning set forth in the Amended Tech Data Credit Agreement, without giving effect to
any waiver, amendment or modification of the Amended Tech Data Credit Agreement unless the Consent Requirement has been satisfied. 
  
 (e) The definition of “Guarantors” is hereby deleted and the following definition is substituted therefor: 
  
 “Guarantors” shall mean collectively, Tech
Data and all Significant Subsidiaries that are Domestic Subsidiaries of Tech Data (excluding Tech Data Finance SPV, Inc. or any Domestic Subsidiary that is a Special Purpose Finance Subsidiary). 
  
 (f) The definition of “Lessor Commitment” is hereby amended by
deleting the amount “$41,295,077.15” where it appears therein and substituting therefor the amount “$39,403,687.25”. 
  
 (g) The definition of “Lien” is hereby deleted and the following definition is substituted therefor: 
  
 “Lien” means any mortgage, pledge,
hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement in the nature of a security interest of any kind or nature whatsoever
(including any conditional sale or other title retention agreement, any easement, right of way or other encumbrance on title to real property, and any financing lease having substantially the same economic effect as any of the foregoing).

  
 (h) The definition of “Pledge Agreement” is hereby
deleted and the following definition is substituted therefor: 
  
 “Pledge Agreement” means, individually or collectively as the context may require: (a) that certain Securities Pledge Agreement dated as of April 23, 2003 among Tech Data, Tech Data Finance Partner,
Inc. and the Collateral Agent and (b) any other pledge agreement executed and delivered by Tech Data, any Subsidiary or any other Person to the Collateral Agent pursuant to Section 10.3A(f), in each case as supplemented from time to time by
the execution and delivery of Pledge Agreement Supplements or Pledge Joinder Agreements pursuant to the terms of the Pledge Agreement. 
  

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 (i) The definition of “Significant Subsidiary” is hereby deleted and the following definition
is substituted therefor: 
  
 “Significant
Subsidiary” has the meaning set forth in the Amended Tech Data Credit Agreement, without giving effect to any waiver, amendment or modification of the Amended Tech Data Credit Agreement unless the Consent Requirement has been
satisfied. 
  
 (j) The definition of “Threshold
Amount” is hereby deleted and the following definition is substituted therefor: 
  
 “Threshold Amount” means $30,000,000. 
  
 (k) The following definitions are hereby inserted in Appendix A to the Participation Agreement in the appropriate
alphabetical order: 
  
 “Amendment to
Intercreditor Agreement” means Amendment No. 3 to Intercreditor Agreement dated as of March 7, 2005, among the Administrative Agent, Bank of America, N.A., as Administrative Agent for the lenders under the Amended Tech Data Credit
Agreement, the Lessor and the Collateral Agent, and consented to by Tech Data and certain Subsidiaries. 
  
 “Consent Requirement” means that no amendment, restatement, waiver or modification of the Amended Tech Data Credit
Agreement that affects any term defined herein by reference to the Amended Tech Data Credit Agreement is effective for purposes of the Operative Agreements unless the Majority Financing Parties and the Administrative Agent shall have consented
thereto in writing. 
  
 “First Omnibus
Amendment Closing Date” means March 9, 2005. 
  
 “Foreign Subsidiary” has the meaning set forth in the Amended Tech Data Credit Agreement, without giving effect to any waiver, amendment or modification of the Amended Tech Data Credit Agreement
unless the Consent Requirement has been satisfied. 
  
 “Foreign Trade Receivables Purchase Documents” has the meaning set forth in the Amended Tech Data Credit Agreement, without giving effect to any waiver, amendment or modification of the Amended Tech Data Credit Agreement
unless the Consent Requirement has been satisfied. 
  
 “Global Finance” means Tech Data Global Finance, L.P., a Cayman Islands exempted limited partnership. 
  
 “Grantor” has the meaning set forth in Section 5.9. 
  
 “Obligations” means all advances to, and debts, liabilities, obligations, covenants and
duties of, any Financing Party arising under any Operative Agreement, absolute or contingent, due or to become due, now existing or hereafter arising and including interest 

  

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and fees that accrue after the commencement by or against any Financing Party or any Affiliate thereof of any proceeding under any Debtor Relief Law naming
such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding. 
  
 “Permitted Receivables Purchase Facility” has the meaning set forth in the Amended Tech Data Credit Agreement, without
giving effect to any waiver, amendment or modification of the Amended Tech Data Credit Agreement unless the Consent Requirement has been satisfied. 
  
 “Pledge Joinder Agreement” means each Pledge Joinder Agreement, substantially in the form thereof attached to the Pledge
Agreement, executed and delivered by Tech Data, a Subsidiary or any other Person to the Administrative Agent pursuant to the Pledge Agreement. 
  
 “Special Purpose Finance Subsidiary” has the meaning set forth in the Amended Tech Data Credit Agreement, without giving
effect to any waiver, amendment or modification of the Amended Tech Data Credit Agreement unless the Consent Requirement has been satisfied. 
  
 “Trade Receivables Purchase Facility” has the meaning set forth in the Amended Tech Data Credit Agreement, without giving
effect to any waiver, amendment or modification of the Amended Tech Data Credit Agreement unless the Consent Requirement has been satisfied. 
  
 “U.S. Customer Trade Receivables Purchase Facility” has the meaning set forth in the Amended Tech Data Credit Agreement,
without giving effect to any waiver, amendment or modification of the Amended Tech Data Credit Agreement unless the Consent Requirement has been satisfied. 
  
 SECTION 3. Amendments to the Participation Agreement. The Participation Agreement is hereby amended as follows: 
  
 (a) The Participation Agreement is hereby amended by inserting the following
Sections 5.7, 5.8 and 5.9 after Section 5.6 thereof: 
  
 5.7 Guaranty; Pledge Agreement. 
  
 (a) As security for the full and timely payment and performance of all Obligations, Tech Data shall do or cause to be done all things
necessary to cause each Domestic Subsidiary that is a Significant Subsidiary (other than Tech Data Finance SPV or a Special Purpose Finance Subsidiary) to execute and deliver to Administrative Agent for the benefit of the Lenders a Guaranty and
shall further cause each Person who thereafter becomes a Domestic Subsidiary that is a Significant Subsidiary to do all those things required by Section 10.3A(f) hereof. 
  
 (b) As security for the full and timely payment and performance of (i) all Obligations now existing or
hereafter arising and (ii) if applicable, all obligations of 

  

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Guarantors under the Guaranty, Tech Data shall, and shall cause each Domestic Subsidiary to deliver to Collateral Agent the Pledge Agreements as required
pursuant to Section 10.3A(f). 
  
 5.8
Further Assurances. At the request of the Collateral Agent or the Administrative Agent from time to time, Tech Data will or will cause all other Lessee/Borrower Parties, as the case may be, to execute, by their respective Responsible
Officers, alone or with the Collateral Agent, any certificate, instrument, financing statement, control agreement, statement or document, or to procure any such certificate, instrument, statement or document, or to take such other action (and pay
all connected costs) which the Collateral Agent or the Administrative Agent reasonably deems necessary from time to time to create, continue or preserve the Liens in Collateral (and the perfection and priority thereof) of the Collateral Agent
contemplated hereby and by the other Operative Agreements and specifically including all Collateral acquired by Tech Data or any other Lessee/Borrower Party and all Collateral moved to or from time to time located at locations owned by third
parties, including without limitation all leased locations, bailees, warehousemen and third party processors. 
  
 5.9 Information Regarding Collateral. Tech Data represents and warrants as of the First Omnibus Amendment Closing Date and
covenants that: (i) each exact legal name, type of organization, jurisdiction of formation and chief executive office of Tech Data and each other Person providing Collateral pursuant to the Pledge Agreement (each, a “Grantor”) at
the First Omnibus Amendment Closing Date, (ii) the exact organizational identification number of each Grantor at the First Omnibus Amendment Closing Date, (iii) each exact legal name, type of organization, jurisdiction of formation, and chief
executive office of each Direct Foreign Subsidiary that is a Significant Subsidiary at the First Omnibus Amendment Closing Date, and (iv) each exact legal name of each Person owning Subsidiary Securities of any such Direct Foreign Subsidiaries and
the number and class of any such Subsidiary Securities owned by such Person, are specified on Schedule 5.9. 
  
 Tech Data further covenants that it shall not change, and shall not permit any other Grantor or any Direct Foreign Subsidiary that is a
Significant Subsidiary to change, its name, jurisdiction of formation (whether by reincorporation, merger or otherwise), the location of its chief executive office, except upon giving written notice (prior to or immediately following such change) to
the Administrative Agent and the Collateral Agent and (prior to such change or, if permitted by applicable Law, simultaneously with such change) taking or causing to be taken all such action at Tech Data’s or such other Grantor’s expense
as may be required by applicable Law to maintain the perfection of the Lien of the Collateral Agent in all Collateral. Without limiting the generality of the foregoing, Tech Data covenants that it shall, and shall cause each Grantor to, (prior to
such change or, if later, immediately upon request) take all such action at Tech Data’s or such other Grantor’s expense as may be reasonably requested by the Collateral Agent or the Administrative Agent to perfect or maintain the
perfection of the Lien of the Collateral Agent in Collateral pledged under the Pledge Agreement. 
  

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 (b) Section 10.3A(a) is hereby amended by inserting the following proviso at the end of the second
sentence thereof: 
  
 ; provided,
however, that references to “Obligations” in Article VII and VIII (other than Section 8.02(l) and 8.14(a)(iv))of the Amended Tech Data Credit Agreement shall be deemed to be references to the Obligations (as defined herein) for
purposes of the Incorporated Covenants; provided, further that the references to Facility Guaranty in Section 8.04 of the Amended Tech Data Credit Agreement shall be deemed to be references to the Guaranty for purposes of the
Incorporated Covenants. 
  
 (c) Section 10.3A(f) of the
Participation Agreement is hereby deleted and the following Section 10.3A(f) is substituted therefor: 
  
 (f) New Subsidiaries. Notify the Administrative Agent at the time that any Person becomes a Significant Subsidiary that is a
Domestic Subsidiary or a Direct Foreign Subsidiary, and 
  
 (i) Within 30 days (in the case of clause (A)) and 60 days (in the case of clause (B)) of the formation or acquisition of any Significant Subsidiary or the time at which a Domestic Subsidiary or Direct Foreign
Subsidiary becomes a Significant Subsidiary, including without limitation any time that any Subsidiary Securities of a Direct Foreign Subsidiary that is a Significant Subsidiary are acquired by a Domestic Subsidiary that has not previously executed
and delivered a Pledge Agreement, cause to be delivered to Administrative Agent for the benefit of Administrative Agent and the Financing Parties: 
  
 (A) In the case of a Significant Subsidiary that is a Domestic Subsidiary, (I) a Guaranty substantially in the form of Exhibit F
executed by such Significant Subsidiary, (II) an opinion of counsel to the Significant Subsidiary dated as of the date of delivery of the Guaranty provided for in this Section 10.3A(f) and addressed to Administrative Agent and the Lenders, in
form and substance reasonably acceptable to Administrative Agent, and (III) the Organization Documents of such Significant Subsidiary; 
  
 (B) In the case of a Significant Subsidiary that is a Direct Foreign Subsidiary, (I) a Pledge Agreement in such form as may be acceptable
to the Administrative Agent or a Pledge Joinder Agreement, in each case executed by the Lessee or any Domestic Subsidiary directly owning the stock of such Significant Subsidiary which shall pledge the Pledged Interests in such Subsidiary to the
Collateral Agent, (II) opinions of counsel to each pledgor and to the Significant Subsidiary that under the laws of the applicable foreign jurisdiction, all agreements, notices and other documents required to be executed, delivered, filed or
recorded and all other action required to be taken, within or pursuant to the laws of such jurisdiction to perfect the Lien conferred in favor of Collateral Agent have 

  

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been duly executed, delivered, filed, recorded or taken, as the case may be, and (III) take such further action and deliver or cause to be delivered such
further documents as reasonably requested by the Collateral Agent or the Administrative Agent to effect the transactions contemplated herein; 
  
 provided, however, that such Guaranty and opinion shall not be required with respect to a Domestic Subsidiary that (1) is intended to be a
Significant Subsidiary only temporarily as part of a restructuring plan or acquisition plan otherwise permitted by this Agreement through the Incorporated Covenants, and (2) in fact ceases to be a Significant Subsidiary in accordance with such plan
prior to the end of the 30-day period described above; 
  
 provided further that such Pledge Agreement, opinion and other perfection actions shall not be required with respect to a Direct Foreign Subsidiary that (1) is intended to be a Significant Subsidiary only temporarily as part of a
restructuring plan or acquisition plan otherwise permitted by this Agreement through the Incorporated Covenants and (2) in fact ceases to be a Significant Subsidiary in accordance with such plan prior to the end of the 60-day period described above;
and 
  
 provided further that neither Tech Data Finance
SPV nor any Special Purpose Finance Subsidiary shall be required to deliver a Guaranty. 
  
 (ii) If at any time the sum of the total assets (on a consolidated basis with their respective Subsidiaries) of Domestic Subsidiaries
(other than Tech Data Finance SPV or any Special Purpose Finance Subsidiary) that have not executed and delivered to Administrative Agent a Guaranty (or whose Guaranty has been released) exceeds in the aggregate 10% of the total assets of the Lessee
(on a consolidated basis with its Subsidiaries), the Lessee shall promptly cause there to be delivered to Administrative Agent one or more additional Guaranties of Domestic Subsidiaries that do not constitute Significant Subsidiaries in order that
after giving effect to such additional Guaranties, the sum of the total assets (on a consolidated basis with their respective Subsidiaries) of Domestic Subsidiaries (other than Tech Data Finance SPV or any Special Purpose Finance Subsidiary) not
having delivered a Guaranty does not exceed in the aggregate 10% of the total assets of the Lessee (on a consolidated basis with its Subsidiaries). 
  
 (iii) The parties acknowledge and agree that so long as Section 7.12 of the Amended Tech Data Credit Agreement requires the pledge
of the Pledged Interests of any Person, the actual Pledged Interests of such Person pledged to the Administrative Agent pursuant to this Section 10.3A(f) shall be the same as those pledged pursuant to Section 7.12 of the Amended Tech
Data Credit Agreement, so that compliance with such agreement and this Lease does not result in the pledge of more than the Pledged Interests of such Person. 
  

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 (d) Schedule 2 to the Participation Agreement is hereby amended by deleting it in its entirety and
substituting therefor Schedule 2 to this Amendment. 
  
 (e)
The Participation Agreement is hereby amended by inserting Schedule 5.9 hereto as Schedule 5.9 to the Participation Agreement. 
  
 (f) Each of the Financing Parties and the Administrative Agent hereby consent to the effectiveness of the Amended Tech Data Credit Agreement (as such
definition is amended hereby) with respect to the Incorporated Covenants (including the defined terms used therein) as incorporated by reference pursuant to Section 10.3A(a) of the Participation Agreement. 
  
 SECTION 4. Amendment to Lease. Section 17.1(h) of the
Lease is hereby deleted in its entirety and the following Section 17.1(h) is substituted therefor: 
  
 (h) Cross-Default. (i) The Lessee, any Guarantor or any Subsidiary (A) fails to make any payment when due (whether by scheduled
maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness or Guarantee (other than Indebtedness hereunder and Indebtedness under Swap Contracts) having an aggregate principal amount of more than the Threshold
Amount, or (B) fails to observe or perform any other agreement or condition relating to any such Indebtedness or Guarantee or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event occurs, the effect of
which default or other event is to cause, or to permit the holder or holders of such Indebtedness or the beneficiary or beneficiaries of such Guarantee (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to
cause, with the giving of notice if required, such Indebtedness to be demanded or to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness
to be made, prior to its stated maturity, or such Guarantee to become payable or cash collateral in respect thereof to be demanded; (ii) there occurs under any Swap Contract an Early Termination Date (as defined in such Swap Contract) resulting from
(A) any event of default under such Swap Contract as to which the Lessee or any Subsidiary is the Defaulting Party (as defined in such Swap Contract) or (B) any Termination Event (as so defined) under such Swap Contract as to which the Lessee or any
Subsidiary is an Affected Party (as so defined) and, in either event, the Swap Termination Value owed by the Lessee or such Subsidiary as a result thereof is greater than the Threshold Amount; (iii) there occurs a Termination Event (as defined in
the Transfer and Administration Agreement) under the Transfer and Administration Agreement which Termination Event is not cured or waived; (iv) there occurs a termination event or event of default under any other Trade Receivables Purchase Facility
which termination event or event of default is not cured or waived within any applicable grace period; (v) there occurs any event of default under the Amended Tech Data Credit Agreement which is not cured or waived within any applicable grace
period; or (vi) there occurs any termination event or event of default under any Foreign Trade Receivables Purchase Documents, the U.S. Customer Trade Receivables Purchase Facility, any Permitted Receivables Purchase Facility or any Senior Parity
Debt which is not cured or waived within any applicable grace period. 
  

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 SECTION 5. Amendment to Credit Agreement. 
  
 Schedule 1.2 to the Credit Agreement is hereby amended by deleting it in its entirety
and substituting therefor Schedule 1.2 to this Amendment. 
  
 SECTION 6. Reallocation and Payoff. (a) The Lessee shall make a request for Fundings from the Financing Parties (other than the Departing Lenders) in accordance with Section 5 of the Participation Agreement in the amounts set
forth on Schedule 1.2 to the Credit Agreement (as amended hereby) and in the amount of the Lessor Commitment (as amended hereby). On the date hereof, the Financing Parties (other than the Departing Lenders) shall make such Fundings to the
Administrative Agent, who shall distribute such payments to the Financing Parties (including the Departing Lenders), such that, after giving effect to such payment and distributions, each Financing Party’s outstanding Loans or Lessor Fundings
shall be equal to the amounts set forth on such amended Schedule 1.2 or the Lessor’s Commitment (as amended hereby), as applicable. 
  
 (b) Each Departing Lender hereby acknowledges receipt as of the date hereof of the amounts distributable to it pursuant to paragraph (a) above, and
in connection therewith, each such Departing Lender’s Loans shall be deemed cancelled and such Departing Lender shall have no further rights or obligations hereunder or under any of the Operative Agreements, except that all claims of the
Departing Lenders pertaining to the representations, warranties, covenants and indemnities of the Lessee shall survive in accordance with the Operative Agreements. 
  
 (c) For purposes of this Amendment, “Departing Lender” means each Lender designated as such on the signature pages
hereto. 
  
 SECTION 7. Notes. The Notes issued by
the Lessor on the Initial Closing Date shall be replaced with an A Note and a B Note issued by the Lessor to the Administrative Agent, for the ratable benefit of the Lenders, in substantially the form of Exhibits A and B hereto, respectively (the
“Replacement Notes”); upon such replacement, such original Notes shall be deemed to be cancelled. Any reference to the Notes in the Operative Documents shall be deemed to refer to such Replacement Notes. 
  
 SECTION 8. Amendments to Lease Participation Agreement. The
Lease Participation Agreement is hereby amended as follows: 
  
 (a) Section 2.1 of the Lease Participation Agreement is hereby amended by deleting the percentage “77.79649%” where it appears therein and substituting therefor the percentage “80.90757”. 
  
 (b) Section 2.1 of the Lease Participation Agreement is hereby amended by
deleting the amount “$27,228,770.76” and substituting therefor the amount “$31,880,564.26”. 
  
 SECTION 9. Release. Upon the effectiveness of this Amendment, the Financing Parties consent to the release of the Lien of the Pledged
Interests of those Foreign Subsidiaries who shall no longer be considered Significant Subsidiaries by the Collateral Agent in accordance 

  

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with Section 7.16(b) of the Amended Tech Data Credit Agreement. Upon the effectiveness of this Amendment, the Administrative Agent hereby releases the
Guaranty of those Domestic Subsidiaries who shall no longer be considered Significant Subsidiaries. 
  
 SECTION 10. Affirmation of the Guarantors. Each of the Guarantors hereby affirms its absolute and unconditional promise to pay its
obligations under the Guaranty at the times and in the amounts provided for therein. 
  
 SECTION 11. Representations and Warranties. The Lessee, the Alternate Lessees and the Guarantors hereby represent and warrant to the other parties hereto as follows: 
  
 (a) Representations and Warranties in Participation
Agreement. The representations and warranties of the Lessee, the Alternate Lessees and the Guarantors contained in the Participation Agreement and the other Operative Agreements are true and correct on the date hereof (except to the extent
that the representations and warranties set forth in Sections 7.1(e) and (m) of the Participation Agreement relate solely to an earlier date, in which case such representations and warranties shall have been true and correct on and as
of such earlier date), and no Default or Event of Default has occurred and is continuing. 
  
 (b) Authority, No Conflicts, Etc. The execution, delivery and performance of this Amendment and all related documents and
the consummation of the transactions contemplated hereby and thereby (a) are within the corporate (or the equivalent company) authority of such Person, (b) have been duly authorized by all necessary corporate (or the equivalent company) proceedings,
(c) do not and will not conflict with or result in any breach or contravention of any provision of law, statute, rule or regulation to which any of the Lessee, the Alternate Lessees and the Guarantors or any of their Subsidiaries is subject or any
judgment, order, writ, injunction, license or permit applicable to any of the Lessee, the Alternate Lessees and the Guarantors or any of their Subsidiaries and (d) do not conflict with any provision of the Organization Documents of, or any agreement
or other instrument binding upon, any of the Lessee, the Alternate Lessees or the Guarantors. 
  
 (c) Enforceability of Obligations. This Amendment and the Participation Agreement, the Lease, the Credit Agreement and the
Lease Participation Agreement as amended hereby constitute the legal, valid and binding obligations of each of the Lessee, the Alternate Lessees and the Guarantors and each of their respective Subsidiaries party thereto, enforceable against each of
the Lessee, the Alternate Lessees and the Guarantors and each of their respective Subsidiaries, in accordance with their respective terms, except as limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium, or other laws
relating to or affecting creditors’ rights generally, general equitable principles (whether considered in equity or at law) and an implied covenant of good faith and fair dealing, and except to the extent that availability of the remedy of
specific performance or injunctive relief is subject to the discretion of the court before which any proceeding therefor may be brought. 
  

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 SECTION 12. No Other Amendments. Except as expressly provided in this Amendment, all of the
terms, conditions and provisions of shall remain the same. It is declared and agreed by each of the parties hereto that the Participation Agreement, the Lease, the Credit Agreement and the Lease Participation Agreement, as amended hereby, shall
continue in full force and effect, and that this Amendment and the Participation Agreement, the Lease, the Credit Agreement and the Lease Participation Agreement shall be read and construed as one instrument. 
  
 SECTION 13. Conditions to Effectiveness. The effectiveness of
this Amendment is subject to the conditions precedent that: 
  
 (a) The Administrative Agent’s receipt of the following, each of which shall be originals or facsimiles (followed promptly by originals) unless otherwise specified, each properly executed by a Responsible Officer of the signing Lessee,
Alternate Lessees and Guarantors, each dated the date hereof (or, in the case of certificates of governmental officials and insurance certificate, a recent date before the date hereof), unless otherwise indicated below, and each in form and
substance satisfactory to the Administrative Agent and its legal counsel: 
  
 (i) executed counterparts of this Amendment, the Amended Tech Data Credit Agreement dated March 7, 2005, and the Amendment to Intercreditor Agreement dated March 7, 2005, sufficient in number for distribution to the
Administrative Agent, each Financing Party and Tech Data; 
  
 (ii) the Replacement Notes executed by the Lessor in favor of the Administrative Agent; 
  
 (iii) such certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each
of the Lessee, the Alternate Lessees and the Guarantors as the Administrative Agent may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this
Agreement and the other Operative Agreements to which such Lessee, Alternate Lessee or Guarantor is a party; 
  
 (iv) such documents and certifications or copies thereof as the Administrative Agent may reasonably require to evidence that each of the
Lessee, the Alternate Lessees and the Guarantors is duly organized or formed, validly existing, in good standing and qualified to engage in business in each jurisdiction where its ownership, lease or operation of properties or the conduct of its
business requires such qualification, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect, including certified copies of such Lessee’s, Alternate Lessee’s or Guarantor’s
Organization Documents, certificates of good standing and/or qualification to engage in business; 
  
 (v) a favorable opinion of each of David Vetter, General Counsel of Tech Data (the “General Counsel”), as to matters of Florida
and United States Law, and Cayman counsel, as to the Laws of their respective jurisdictions, in each case as counsel to the Lessee, the Alternate Lessees and the Guarantors, addressed to the Administrative Agent and each Lender, as to the matters
set forth in Exhibit A hereto; 
  

 12 

 (vi) a certificate of a Responsible Officer of each of the Lessee, the Alternate Lessees
and the Guarantors either (A) attaching copies of all consents, licenses and approvals required in connection with the execution, delivery and performance by such Lessee, Alternate Lessee or Guarantor and the validity against such Lessee, Alternate
Lessee or Guarantor of the Operative Agreements to which it is a party, and such consents, licenses and approvals shall be in full force and effect, or (B) stating that no such consents, licenses or approvals are so required; 
  
 (vii) a certificate signed by a Responsible Officer of Tech
Data certifying (A) that the conditions specified in this Section 13 have been satisfied, (B) that there has been no event or circumstance since the date of the Audited Financial Statements that has had or could be reasonably expected to have,
either individually or in the aggregate, a Material Adverse Effect; and (C) the current Debt Ratings; 
  
 (viii) one or more insurance certificates addressed to the Administrative Agent, demonstrating that all insurance required to be
maintained pursuant to the Operative Agreements has been obtained and is in effect; 
  
 (ix) a copy of a Compliance Certificate signed by a Responsible Officer of Tech Data dated March 7, 2005, demonstrating that Tech Data is
in compliance with the covenants set forth in Section 8.13 of the Amended Tech Data Credit Agreement; and 
  
 (x) such other assurances, certificates, documents, consents or opinions as the Administrative Agent or the Required Financing Parties
reasonably may require; 
  
 provided that
the documents described in clauses (iii) – (vi) shall not be required with respect to Tech Data Latin America, Inc. 
  
 (b) Unless waived by the Administrative Agent, Tech Data shall have paid all Attorney Costs of the Administrative Agent to the extent invoiced prior to or
on the closing date of this Amendment (provided that such payment shall not thereafter preclude a final settling of accounts between Tech Data and the Administrative Agent and shall not relieve Tech Data of its obligation to pay or reimburse the
Administrative Agent for any additional Attorney Costs in accordance with Section 9.2 of the Participation Agreement. 
  
 (c) Without limiting the generality of the provisions of Section 7.4 of the Credit Agreement, for purposes of determining compliance with the
conditions specified in this Section 13, each Financing Party that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented
to or approved by or acceptable or satisfactory to a Financing Party unless the Administrative Agent shall have received notice from such Lender prior to the proposed closing date hereof specifying its objection thereto. 
  
 (d) The representations and warranties contained in Section 11 of this
Amendment shall be true and correct in all material respects. 
  
 (e) The Departing Lenders shall have received all amounts owed them in accordance with Section 6 hereof. 
  

 13 

 (f) The Administrative Agent shall have received, for the account of each Financing Party signing this
Amendment (other than the Departing Lenders), the amendment fee as set forth in the fee letter dated as of February 11, 2005 (the “Amendment Fee Letter”), between SunTrust Capital Markets, Inc. and Tech Data. 
  
 (g) The Administrative Agent shall have received, for its own account, the
Agent’s Fee (as defined in the Amendment Fee Letter). 
  
 SECTION 14. Execution in Counterparts. This Amendment may be executed in any number of counterparts and by each party on a separate counterpart, each of which when so executed and delivered shall be an original, but all of
which together shall constitute one instrument. In proving this Amendment, it shall not be necessary to produce or account for more than one such counterpart signed by the party against whom enforcement is sought. 
  
 SECTION 15. Governing Law. THIS AMENDMENT IS INTENDED TO
TAKE EFFECT AS AN AGREEMENT UNDER SEAL UNDER THE LAWS OF THE STATE OF FLORIDA AND SHALL FOR ALL PURPOSES BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF SAID STATE WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OR CHOICE OF LAW.

  
 SECTION 16. Headings. Headings or captions used
in this Amendment are for convenience of reference only and shall not define or limit the provisions hereof. 
  
 SECTION 17. Expenses. The Lessee hereby agrees to pay to the Administrative Agent, on demand by the Administrative Agent, all reasonable
out-of-pocket costs and expenses incurred or sustained by the Administrative Agent in connection with the preparation of this Amendment (including reasonable legal fees). 
  
 [Reminder of page intentionally left blank] 
  

 14 

 IN WITNESS WHEREOF, the parties have executed this Amendment under seal as of the date first above
written. 
  

			
	TECH DATA CORPORATION,
	as Lessee and as a Guarantor
		
	By:	 	 /s/ Charles V. Dannewitz

	Name:	 	Charles V. Dannewitz
	Title:	 	Senior Vice President, Tax and Treasurer
	
	 TECH DATA PRODUCT MANAGEMENT, INC.,
 and TECH
DATA FINANCE PARTNER, INC., as
 Guarantors

		
	By:	 	 /s/ Charles V. Dannewitz

	Name:	 	Charles V. Dannewitz
	Title:	 	Senior Vice President, Tax and Treasurer

  

					
	 	 	S-1	 	First Omnibus Amendment

			
	SUNTRUST EQUITY FUNDING, LLC,
	as Lessor
		
	By:	 	 /s/ R. Todd Shutley

	Name:	 	R. Todd Shutley
	Title:	 	Senior Vice President and Manager

  
  

					
	 	 	S-2	 	First Omnibus Amendment

			
	SUNTRUST BANK,
	as Administrative Agent and as Lease Participant
		
	By:	 	 /s/ Nora G. Brown

	Name:	 	Nora G. Brown
	Title:	 	Vice President
	
	 SCOTIABANC, INC.,
 as a
Lender

		
	By:	 	 /s/ William E. Zarrett

	Name:	 	William E. Zarrett
	Title:	 	Managing Director
	
	 BRANCH BANKING AND TRUST COMPANY,
 f/k/a Republic Bank, as a Departing Lender, solely for
 purposes of Section 6

		
	By:	 	 /s/ Brigitta Lawton

	Name:	 	Brigitta Lawton
	Title:	 	Senior Vice President
	
	 BNP PARIBAS LEASING CORPORATION, as a
 Lender

		
	By:	 	 /s/ Lloyd G. Cox

	Name:	 	Lloyd G. Cox
	Title:	 	Managing Director

  

					
	 	 	S-3	 	First Omnibus Amendment

			
	CITICORP USA, INC., as a Lender
		
	By:	 	 /s/ Matias Cruces

	Name:	 	Matias Cruces
	Title:	 	Relationship Manager
	
	 KEY CORPORATE CAPITAL, INC., as a Departing
 Lender, solely for purposes of Section 6

		
	By:	 	 /s/ Jeff Kalinowski

	Name:	 	Jeff Kalinowski
	Title:	 	Senior Vice President
	
	 U.S. BANK NATIONAL ASSOCIATION, as a
 Lender

		
	By:	 	 /s/ Richard Popp

	Name:	 	Richard Popp
	Title:	 	Vice President

  

					
	 	 	S-4	 	First Omnibus Amendment

			
	ACKNOWLEDGED AND AGREED TO:
	
	TECH DATA PRODUCT MANAGEMENT, INC.,
	as Alternative Lessee
	
	and
	
	TD FACILITIES, LTD.,
	as Alternative Lessee
	By its partners:
	Tech Data Corporation and
	Tech Data Product Management, Inc.
		
	By:	 	 /s/ Charles V. Dannewitz

	Name:	 	Charles V. Dannewitz
	Title:	 	Senior Vice President, Tax and Treasurer

  

					
	 	 	S-5	 	First Omnibus Amendment

 Schedule 2 
  

Property Cost/Maximum Residual Guarantee Amount 
  

							
	 Property

	  	Property Cost

	  	Maximum Residual Guarantee
Amount

	 Fontana, California
	  	$	19,486,968.38	  	$	17,370,575.50
	 Swedesboro, New Jersey
	  	$	22,583,237.49	  	$	20,059,409.53
	 Miami, Florida
	  	$	26,038,532.64	  	$	22,822,173.77
	 Dallas, Texas
	  	$	21,804,079.48	  	$	19,260,947.19
	 Atlanta, Georgia
	  	$	11,128,894.77	  	$	9,854,544.83
	 South Bend, Indiana
	  	$	10,359,791.28	  	$	9,193,832.00
	 Clearwater, Florida
	  	$	25,382,550.43	  	$	22,393,761.47

  

 Schedule 2 - 1 

  
 Schedule 5.9

  
 Information Regarding Collateral 

 

									
	 Name of Entity

	  	 Type of Company

	  	 Jurisdiction of Formation

	  	 Main Office / Address

	  	 Shares/Interest

	 Tech Data Corporation
	  	 Corporation
	  	 Florida, USA
 ID
# 465173
	  	 5350 Tech Data Drive
 Clearwater, FL 33760
	  	 N/A

					
	 Tech Data
 Global Finance LP
 (Direct Foreign Subsidiary)
	  	 Limited Partnership
	  	 Cayman Islands
	  	 Campbell Corporate Services Limited
 4th Floor, Scotiabank Building
 George Town, Grand Cayman,
 Cayman Islands
	  	 Tech Data Corporation (General Partner)
 Tech Data Finance Partner, Inc.
 (Limited Partner)

					
	 Tech Data Finance Partner, Inc.
	  	 Corporation
	  	 Florida, USA
 ID # P02000103496
	  	 5350 Tech Data Drive
 Clearwater, FL 33760
	  	 N/A

  

 Schedule 5.9 - 1 

  
 Schedule 1.2

  

							
	 Name of Lender

	  	 Series A
 Commitment

	  	 Series B
 Commitment

	 Scotiabanc, Inc.
	  	$	27,176,099.14	  	$	1,866,113.20
	 BNP Paribas Leasing Corporation
	  	$	36,770,973.84	  	$	2,524,968.70
	 Citicorp USA, Inc.
	  	$	13,588,049.57	  	$	933,056.60
	 U.S. Bank National Association
	  	$	13,588,049.57	  	$	933,056.60

  

 Schedule 5.9 - 2Option Agreement

 Exhibit 10.20 
  

  
 OPTION AGREEMENT 
  
 among 
  
 Deephaven Holdings, LLC 
  
 Deephaven Capital Management, LLC 
  
 Knight Trading Group, Inc. 
  
 KFP Holdings I LLC 
  
 and 
  
 the individuals set forth on the signature page hereto 
  
 Dated as of: October 21, 2003 
  

  

 THIS OPTION AGREEMENT (“Option Agreement”) is hereby made as of the 21st day of October 2003,
by and among KFP Holdings I LLC, a Delaware limited liability company (“KFP”), Knight Trading Group, Inc., a Delaware corporation and the indirect parent of KFP (“Knight Trading” and, together with KFP, “Knight”),
Deephaven Capital Management, LLC, a Delaware limited liability company (“Deephaven Management”), Deephaven Holdings, LLC, a Minnesota limited liability company (the “Management Group”), and the individuals set forth in signature
page hereto (each a “Management Group Member”). 
  
 WHEREAS, KFP holds 100% of the equity interests of Deephaven Management, which in turn holds 100% of the equity interests of Deephaven Capital Management International Ltd., a FSA Category C Company in the United Kingdom (“Deephaven
International” and, together with Deephaven Management, “Deephaven”). Deephaven Management and/or Deephaven International are the sole general partners in, and have advisory agreements with, the various Deephaven Funds listed on
Schedule 1. 
  
 WHEREAS, Knight and the Management Group desire to
engage in the following Option Agreement to allow the Management Group under certain circumstances to cause the formation of a limited liability company (the “New LLC”) to which the equity interests of Deephaven Management would be
contributed in accordance with the terms of the limited liability company agreement attached hereto as Schedule A and which limited liability company would be governed by the terms of such limited liability company agreement. 
  
 WHEREAS, upon the exercise of the Option (as defined below), the parties
intend and agree that Knight will receive a 49% economic interest in the new LLC and the Management Group will receive a 51% economic interest in the new LLC. Accordingly, in consideration of the mutual covenants contained herein, Knight and the
Management Group agree as follows: 
  
 ARTICLE I 

REPRESENTATIONS AND WARRANTIES 
  
 SECTION 1.01. Knight Representations. Knight represents and warrants to the Management Group, each of the following: 
  
 (a) Organization and Authority. Knight Trading is a corporation duly
incorporated, validly existing and in good standing under the laws of the State of Delaware. Each of KFP and Deephaven Management is a limited liability company duly organized, validly existing and in good standing under the laws of the State of
Delaware. Deephaven International is an FSA Category C Company duly organized, validly existing and in good standing under the laws of the United Kingdom. Knight Trading has all corporate power and authority, and KFP has all necessary limited
liability company power and authority, to enter into, and to perform their respective obligations under this Option Agreement. The execution and delivery of this Option Agreement by Knight, the performance by Knight of its obligations hereunder, and
the consummation by Knight of the transactions contemplated hereby have been duly and validly authorized and 

  

 
approved by all necessary corporate, or with respect to KFP, limited liability company, action on behalf of Knight. This Option Agreement has been duly
executed and delivered by Knight, and, assuming this Option Agreement constitutes a valid and binding obligation of the Management Group and each of the Management Group Members, this Option Agreement constitutes a legal, valid, and binding
obligation of Knight enforceable against Knight in accordance with its terms. 
  
 (b) No Conflict. The execution, delivery and performance of this Option Agreement by Knight does not and will not (i) violate, conflict with or result in the breach of any provision of the respective
organizational documents of Knight, Deephaven Management or Deephaven International, (ii) conflict with or violate any law or order of any court or other governmental authority applicable to Knight, Deephaven Management, Deephaven International or
any of their respective assets, properties or businesses, or (iii) conflict with, result in any breach of, constitute a default (or event which with the giving of notice or lapse of time, or both, would become a default) under, require any consent
under, or give to others any rights of termination, amendment, acceleration, suspension, revocation or cancellation of, or result in the creation of any encumbrance on any of the respective assets or properties of Knight, Deephaven Management, or
Deephaven International, pursuant to any note, bond, mortgage or indenture, contract, agreement, lease, sublease, license, permit, franchise or other instrument or arrangement to which Knight, Deephaven Management or Deephaven International,
respectively, is a party or by which any of such assets or properties is bound or affected, except, in the case of clauses (ii) and (iii) above, where such conflict, violation, breach, default, failure to obtain any such consent, rights or
creation will not have a material adverse effect on the business of Deephaven Management or Deephaven International or on Knight’s ability to enter into this Option Agreement and perform its obligations hereunder. 
  
 (c) Corporate Structure. KFP currently owns all of the membership or
other equity interests in Deephaven Management. Deephaven Management currently owns all of the equity interests in Deephaven International. Deephaven Management and/or its 100% owned subsidiaries are the sole general partner and sole manager of the
investments of the Deephaven Funds listed on Schedule 1. Attached at Schedule 2 are copies of the complete Certificate of Formation and the Limited Liability Company Operating Agreement, or equivalent organizational documents, of Deephaven
Management and Deephaven International. 
  
 (d) Ownership of
Interests. Deephaven Management is owned by KFP, free and clear of all material liens, charges, pledges, security interests, claims and encumbrances (“Liens”). Deephaven International is owned by Deephaven Management, free and clear of
all Liens. Knight has not received any notice of any adverse claim to the ownership of any of the membership or other equity interests in Deephaven Management or Deephaven International, nor does it have any reason to know of any such adverse claim
that may be justified and are not aware of existing facts that would give rise to any adverse claim to the ownership of such membership or other equity interests. 
  

 (e) Attached as Schedule 3 are the balance sheets of Deephaven Management and Deephaven International as
of August 31, 2003 (the “Most Recent Balance Sheets”). The Most Recent Balance Sheets have been prepared in accordance with GAAP and accurately represent in all material respects the current financial condition of Deephaven Management and
Deephaven International. To the best of Knight’s knowledge, neither Deephaven Management nor Deephaven International has any liabilities, other than liabilities which will not have a material adverse effect on the business of Deephaven
Management or Deephaven International and liabilities set forth on the face of the Most Recent Balance Sheets. Notwithstanding anything to the contrary contained herein, any matter of which any of the Management Group Members has knowledge, or any
breach of a representation or warranty or a threat of such breach of which any of the Management Group Members has knowledge, as of the date hereof shall not constitute a breach of any representation or warranty contained in this Section 1.01(e).

  
 SECTION 1.02. The Management Group Representations. The
Management Group and each of the Management Group Members jointly and severally, represents and warrants to Knight each of the following (except that the representations and warranties made by individual Management Group Members shall be made by the
Management Group Members severally, but not jointly): 
  
 (a)
Organization and Authority. The Management Group is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Minnesota, and has all necessary limited liability company power and
authority to enter into, and to perform its obligations under, this Option Agreement. Such Management Group Member has the capacity to enter into, and to perform his obligations under, this Option Agreement. The execution and delivery of this Option
Agreement by the Management Group and such Management Group Member, the performance by the Management Group and such Management Group Member of their respective obligations hereunder, and the consummation by the Management Group and such Management
Group Member of the transactions contemplated hereby have been duly and validly authorized and approved by all necessary limited liability company action on behalf of the Management Group and such Management Group Member. This Option Agreement has
been duly executed and delivered by the Management Group and such Management Group Member, and, assuming this Option Agreement constitutes a valid and binding obligation of Knight, this Option Agreement constitutes a legal, valid and binding
obligation of the Management Group and such Management Group Member enforceable against the Management Group and such Management Group Member in accordance with its terms. 
  
 (b) No Conflict. The execution, delivery and performance of this Option Agreement by the Management Group and such
Management Group Member does not and will not (i) violate, conflict with or result in the breach of any provision of the articles of organization or limited liability company agreement of the Management Group, (ii) conflict with or violate any law
or order of any court or other governmental authority applicable to the Management Group, such Management Group Member or any of their respective assets, properties or businesses, or (iii) conflict with, result in any 

  

 
breach of, constitute a default (or event which with the giving of notice or lapse of time, or both, would become a default) under, require any consent
under, or give to others any rights of termination, amendment, acceleration, suspension, revocation or cancellation of, or result in the creation of any encumbrance on any of the assets or properties of the Management Group or such Management Group
Member, pursuant to any note, bond, mortgage or indenture, contract agreement, lease, sublease, license, permit, franchise or other instrument or arrangement to which the Management Group or such Management Group Member is a party or by which any of
such assets or properties is bound or affected, except, in the case of clauses (ii) and (iii) above, where such conflict, violation, breach, default, failure to obtain any such consent, rights or creation will not have a material adverse
effect on the business of Deephaven or on the ability of the Management Group or such Management Group Member to enter into this Option Agreement and perform its obligations hereunder. 
  
 (c) Ownership of Interests. All of the membership interests of the Management Group (the “Management
Interests”) are owned directly by the Management Group Members, the Management Interests owned by such Management Group Member are owned free and clear of all Liens, and the Membership Interests represent all of the issued and outstanding
ownership or other equity interests of the Management Group. Schedule 4 sets forth a complete and accurate list of the percentage of Management Interests owned by each of the respective Management Group Members. Attached as Schedule 5 are copies of
the Certificate of Formation and the Limited Liability Company Agreement of the Management Group. Neither the Management Group nor such Management Group Member is a party to any agreement creating rights with respect to the Membership Interests in
any person other than the Management Group Members. There are no existing warrants, options, membership interest purchase agreements, restrictions of any nature, voting trust agreement, proxies, calls or rights to subscribe of any character relating
to the Membership Interests owned by such Management Group Member. Neither the Management Group nor such Management Group Member has received any notice of any adverse claim to the ownership of any of the Membership Interests, nor do they have any
reason to know of any such adverse claim that may be justified and are not aware of existing facts that would give rise to any adverse claim to the ownership of the Membership Interests. 
  
 SECTION 1.03. Purchase for Investment. 
  
 (a) The Management Group is acquiring the Option to obtain equity interests in the New LLC (the
“Shares”), and on the Exercise Date (as defined below) will acquire the Shares, solely for its own account and not as nominee or agent for any other person and not with a view to, or for offer or sale in connection with, any distribution
thereof (within the meaning of the Securities Act) that would be in violation of the securities laws of the United States of America or any state thereof. The Management Group understands that the Option has not been registered under the Securities
Act and the Option is being issued in transactions exempt from the registration requirements of the Securities Act. 
  

 (b) KFP on the Exercise Date will acquire the Shares, solely for its own account and not
as nominee or agent for any other person and not with a view to, or for offer or sale in connection with, any distribution thereof (within the meaning of the Securities Act) that would be in violation of the securities laws of the United States of
America or any state thereof. 
  
 (c) As of the
date hereof and as of the Exercise Date, each of KFP and the Management Group further represents and warrants that it: 
  
 (1) is an “accredited investor” as defined in Regulation D promulgated under the Securities Act; 
  
 (2) has been and will be afforded access to information
about the New LLC and the business, property, management and prospects of the New LLC sufficient to enable it to evaluate its investment in the Shares; 
  
 (3) did not employ any broker or finder in connection with the transactions contemplated in this Option Agreement; and 
  
 (4) understands that on the Exercise Date the Shares will
not have been, registered under the Securities Act and the Shares will be, issued in transactions exempt from the registration requirements of the Securities Act. 
  
 SECTION 1.04. Survival. All representations and warranties contained in this Article shall survive the execution and
delivery of this Option Agreement and the expiration or exercise of the Option. 
  
 ARTICLE II 
 OPTION TO FORM LLC 
  
 SECTION 2.01. Option to Form LLC Upon a Change of Control. The Management Group shall have the option (the
“Option”) to cause the formation of the New LLC to which the equity interests of Deephaven Management would be contributed in accordance with the terms of the limited liability company agreement attached hereto as Schedule A (the
“Operating Agreement”) and which limited liability company would be governed by the terms of such Operating Agreement. The Management Group may exercise the Option at any time after a Change of Control until the later of (i) January 16,
2007 and (ii) one year following a Change of Control (the “Termination Date”), but in no event later than December 31, 2007. The Management Group shall give 15 calendar days notice prior to the exercise of the Option. On the 15th day following said notice of exercise (the “Exercise Date”), each of the Management Group and KFP shall enter into
the Operating Agreement. Upon the execution of, and as a condition to the effectiveness of and concurrent with the contribution of the equity interests in Deephaven Management under, the Operating Agreement, the employment agreements between Knight
Trading and each of the Management Group Members shall terminate and be of no further force and effect. Upon Knight Trading’s request, each of the Management Group Members 

  

 
shall enter into a full and unconditional release of Knight Trading, in a form to be agreed upon by the parties, from any and all liabilities and obligations
of any kind relating to the employment of each Management Member, including, without limitation, those arising under his former employment agreement but not including (x) claims arising under or ancillary to his former employment agreement for
compensation owed and required to be paid, (y) liabilities or obligations arising under this Option Agreement, and (z) liabilities or obligations arising under the Operating Agreement. This Option Agreement shall terminate upon the death, Permanent
Disability, voluntary resignation or termination for Cause of Colin Smith (“Smith”), in each case, prior to a Change of Control. Other than for reason of death, Permanent Disability, voluntary resignation, or termination for Cause of
Smith, in each case, prior to a Change of Control, this Option Agreement shall continue in full force and effect notwithstanding any termination of the employment of any of the Management Group Members. For purposes of this Option Agreement, (i)
“Permanent Disability” shall mean any disability caused by injury or illness as a result of which Smith is unable to effectively perform all of his material duties under his employment agreement with Knight Trading (as in effect from time
to time, his “Employment Agreement”) for a period of at least 60 consecutive days or 100 total days out of any 365-day period; and (ii) “Cause” shall have the meaning of the term “Cause” as set forth in Smith’s
employment agreement with Knight Trading. 
  
 SECTION 2.02.
Change-In-Control. 
  
 (a) Subject to Section 2.02(b), a
“Change of Control” shall mean the first to occur of: 
  
 (i) the acquisition by any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) of “beneficial ownership” (within the meaning of Rule 13d-3 of the Exchange Act), directly
or indirectly, of securities of Knight Trading representing twenty percent (20%) or more of either the then outstanding shares of Knight Trading common stock or the combined voting power of Knight Trading’s then outstanding voting securities
entitled to vote generally in the election of directors; provided, however, that for purposes of this subsection (a), the following transactions shall not constitute a Change of Control: (A) an acquisition by Knight Trading, (B) an acquisition by
any employee benefit plan (or related trust) sponsored or maintained by Knight Trading, (C) an acquisition by an entity owned, directly or indirectly, by the stockholders of Knight Trading in substantially the same proportions as their ownership of
Knight Trading common stock, or (D) an acquisition by an entity pursuant to a Business Combination (as defined in subsection (iii) of this Section) that satisfies clauses (A), (B) and (C) of such subsection; 
  
 (ii) the following individuals cease for any reason to
constitute a majority of Knight Trading’s directors then serving: individuals who as of the date hereof constitute the board (the “Initial Directors”) and any new director (a “New Director”) whose appointment or election by
the Board or nomination for election by Knight Trading’s stockholders was approved or recommended by a vote of at least two-thirds of the directors then in office who either are Initial 

  

 
Directors or New Directors; provided, however, that a director whose initial assumption of office is in connection with an actual or threatened election
contest (including but not limited to a consent solicitation) relating to the election of directors of Knight Trading shall not be considered a New Director; 
  

(iii) a reorganization, merger or consolidation or a sale or disposition of all or substantially all of Knight Trading’s assets (a
“Business Combination”), other than a Business Combination in which (A) the voting securities of Knight Trading outstanding immediately prior thereto and entitled to vote generally in the election of directors continue to represent (either
by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) more than fifty percent (50%) of the combined voting power of the voting securities of Knight Trading or such surviving entity or
parent outstanding immediately after such Business Combination and entitled to vote generally in the election of directors; (B) no “person” (as hereinabove defined), other than Knight Trading, an employee benefit plan (or related trust)
sponsored or maintained by Knight Trading, or an entity resulting from such Business Combination, acquires more than twenty percent (20%) of the combined voting power of Knight Trading’s then outstanding securities entitled to vote generally in
the election of directors, and (C) at least a majority of the members of the board of directors of the entity resulting from such Business Combination were Initial Directors or New Directors at the time of the execution of the initial agreement, or
action of the Board, providing for such Business Combination; or 
  
 (iv) the stockholders of Knight Trading approve a plan of complete liquidation or dissolution of Knight Trading. 
  
 (b) Notwithstanding anything in Section 2.02(a) to the contrary (including 2.02(a)(i) and 2.02(a)(iii)(B)), a Change of Control shall not be deemed to
have occurred as a result of a “person” acquiring beneficial ownership of securities of Knight Trading representing less than fifty percent (50%) of either the then outstanding shares of Knight Trading common stock or the combined voting
power of Knight Trading’s then outstanding voting securities entitled to vote generally in the election of directors, unless there has also been a material diminution in the duties and responsibilities of Knight Trading’s CEO as compared
to his/her duties and responsibilities with Knight Trading immediately prior to such a transaction. 
  
 ARTICLE III 
  
 COVENANTS 
  
 SECTION 3.01. Knight’s
Covenants. Prior to the earlier of the Exercise Date and the Termination Date, neither Knight or Deephaven shall, without the prior written consent of the Management Group: 
  
 (a) transfer any equity or other ownership interest in either Deephaven Management or Deephaven International if the effect
of such transfer is such that Knight Trading no longer owns, directly or indirectly, 100% of such equity and other ownership interests; 
  

 (b) distribute the proceeds of any indebtedness for borrowed money incurred by Deephaven to
Deephaven’s equity holders; 
  
 (c) create any Lien (i) on
any equity or other ownership interest in either Deephaven Management or Deephaven International or (ii) for borrowed money on any property or assets of Deephaven except, in the case of clause (ii), Liens for current taxes or assessments not
delinquent; builder, mechanic, landlord, warehousemen, materialmen, contractor, workmen, repairmen, carrier Liens, or other similar Liens arising and continuing in the ordinary course of business; Liens that are purchase money Liens arising in the
ordinary course of business; or 
  
 (d) allow Deephaven Management
or Deephaven International to enter into any agreement with an affiliate of Knight that is not terminable upon the exercise of the Option with no further obligation or liability. 
  
 SECTION 3.02. The Management Group’s Covenants. Until the earlier of the Exercise Date and the Termination Date,
without the prior written consent of Knight, neither the Management Group nor any Management Group Member may sell, assign, transfer, give, hypothecate or otherwise encumber, directly or indirectly, by operation of law or otherwise (including by
merger, consolidation, dividend or distribution) (any such sale, assignment, transfer, gift, hypothecation or encumbrance being hereinafter referred to as a “Transfer”), the Management Interests, the Option or any Shares or any direct or
indirect interest of any kind therein or derived therefrom; provided, that each of the Management Group Members may transfer such shares or interests to each other or their respective immediate family members or fully controlled estate-planning
entities (which transferees shall acknowledge and agree to be bound by the provisions of this Option Agreement and the Operating Agreement as if a party thereto). The Management Group’s organizational documents will contain transfer
restrictions to give full effect to the preceding sentence. Any transfer of the Management Interests, the Option or any Shares or any direct or indirect interest of any kind therein or derived therefrom in contravention of this Section 3.02 shall be
null and void. 
  
 SECTION 3.03. Certain Distributions. The
parties agree that prior to the Exercise Date, except as set forth in Section 3.01(b), Deephaven shall distribute all of the Excess Current Assets (as defined in the Operating Agreement) to Knight, other than those described in clause (ii) of the
first sentence of Section 2.02 of the Operating Agreement. To the extent that there are Excess Current Assets of a type capable of distribution that have not been distributed as of the Exercise Date (other than those described in clause (ii) of the
first sentence of Section 2.02 of the Operating Agreement), such Excess Current Assets shall be distributed to Knight at such time as they become distributable. 
  

  
 ARTICLE IV 

MISCELLANEOUS 
  
 SECTION 4.01. Further Assurances. Each of Knight and the Management Group agrees to execute, acknowledge, deliver, file, record and publish such
further certificates, amendments to certificates, instruments and documents, and do all such other acts and things as may be required by law, or as may be required to carry out the intent and purposes of this Option Agreement. 
  
 Governing Law. This Option Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware applicable to contracts executed and performed entirely in that state. In addition, each of the parties hereto (a) consents to submit itself to the personal jurisdiction of any state
court located in the State of Delaware in the event any dispute arises out of this Option Agreement, (b) agrees that it shall not bring any action relating to this Option Agreement in any court other than any state court located in the State of
Delaware and (c) agrees that it shall not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court or to assert any rights it may have to transfer or change the venue of any action relating to
this Option Agreement. 
  
 SECTION 4.03. Waiver of Jury
Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH
PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) EACH SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF
THIS WAIVER AND (iii) EACH SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS SET FORTH HEREIN. 
  
 SECTION 4.04. Specific Performance. The parties acknowledge and agree that in the event of any breach of this Option
Agreement, each non-breaching party would be irreparably and immediately harmed and could not be made whole by monetary damages. Therefore, each party agrees to the granting of specific performance of this Option Agreement and injunctive or other
equitable relief in favor of the other party as a remedy for any such breach without proof of actual damages. The parties (a) hereby waive, in any action for specific performance, the defense of adequacy of a remedy at law and any requirement for
the securing or posting of any bond in connection with any such remedy and (b) shall be entitled, in addition to any other remedy to which they may be 

  

 
entitled at law or in equity, to compel specific performance of this Agreement in any action instituted in accordance with this Section. The remedy provided
for in this shall not be deemed to be the exclusive remedy for a party’s breach of this Option Agreement, but shall be in addition to all other remedies available at law or equity to the other parties. 
  
 SECTION 4.05. Severability. If any term or other provision of this
Option Agreement is invalid, illegal or incapable of being enforced by any law or public policy, all other terms and provisions of this Option Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of
the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in
good faith to modify this Option 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 hereby are consummated as originally contemplated to the
greatest extent possible. 
  
 SECTION 4.06. Notices. Knight
agrees that it will provide the Management Group notice of any Change of Control within 24 hours after Knight has knowledge of such Change of Control being effective. All notices, requests, claims, demands and other communications hereunder
(collectively, “Notices”) shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by courier service, by cable, by telecopy, by telex or by registered or
certified mail (return receipt requested, with postage prepaid), to the respective parties at the following addresses: 
  
 if to Management Group, to: 
  
 Deephaven Holdings, LLC 
 130 Cheshire Lane

 Suite 120 
 Minnetonka,
Minnesota 55305 
 Telephone: 952-249-5510 
 Telecopier: 
 Attention: Colin Smith 
  

 With a copy to: 
  

Sidley Austin Brown & Wood LLP 
 10
South Dearborn Street 
 Chicago, Illinois 60603 
 Telephone: (312) 853-7000 
 Telecopier: (312) 853-7036 
 Attention: Bridget R. O’Neill, Esq. 
       Jon A. Ballis, Esq. 
  
 if to Knight, to: 
  
 Knight Trading Group, Inc.

 Newport Tower 
 525 Washington
Blvd. 
 Jersey City, New Jersey 07310 
 Telephone: 201-222-9400 
 Telecopier: 201-557-6853 
 Attention: General Counsel 
  
 With a copy to: 
  
 Skadden, Arps, Slate, Meagher &
Flom LLP 
 Four Times Square 
 New York, NY 10036 
 Telephone: 212-735-3000 
 Telecopier: 212-735-2000 
 Attention: Daniel E. Wolf, Esq. 
  
 SECTION 4.07. Headings; Section and Article References. All titles or
captions contained in this Option Agreement are for convenience of reference only and shall not affect in any way the meaning or interpretation of this Option Agreement. All references in this Option Agreement to specific “Sections” or
“Articles” shall be deemed to be references to Sections or Articles, respectively, of this Option Agreement, unless the context otherwise requires. 
  

 SECTION 4.08. No Third-Party Beneficiaries. This Option Agreement shall be binding upon and inure
solely to the benefit of the parties hereto and their permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other person any legal or equitable right, benefit or remedy of any nature whatsoever.

  
 SECTION 4.09. Amendments. Neither this Option Agreement
nor any term or provision hereof may be amended, modified, waived or supplemented orally, but rather, only by a written instrument executed by the parties hereto. 
  
 SECTION 4.10. Assignment. This Option Agreement shall be binding upon and inure to the benefit of each of the parties
and their respective successors and permitted assigns; provided, that neither this Option Agreement nor any rights hereunder may be assigned by operation of law or otherwise without the express prior written consent of the other parties hereto
except that KFP may assign all or a portion of its rights and delegate all or a portion of its duties under this Option Agreement in whole or in part to one or more wholly owned, direct or indirect subsidiaries of Knight Trading to which all of the
equity interests of Deephaven Management are transferred. 
  
 SECTION 4.11. Expenses. All costs and expenses incurred in connection with this Option Agreement and the transactions contemplated by this Option Agreement shall be paid by the party to this Option Agreement incurring such expenses.

  
 SECTION 4.12. No Recourse Against Others. No director,
officer, member, partner, employee, owner, representative, agent, heir, executor, administrator, beneficiary, stockholder, or controlling person, as such, of any party hereto shall have any liability hereunder or for any obligations of the parties
hereto, as applicable, in respect of the Option or the Shares or for any claim based on, in respect or by reason of, such obligations or their creation or this Option Agreement. Each party, by execution of this Option Agreement, waives and releases
all such persons for all such liabilities. 
  
 SECTION 4.13.
Entire Agreement. This Option Agreement constitutes the entire agreement of the parties hereto with respect to the subject matter hereof and all prior agreements relative hereto are terminated. Amendments, variations, modifications or changes
herein may be made effective and binding upon the parties by, and only by, the setting forth of same in a document duly executed by each party, and any alleged amendment, variation, modification or change herein which is not so documented shall not
be effective as to any party. 
  
 SECTION 4.14.
Counterparts. This Option Agreement may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original but all of which when taken together
shall constitute one and the same agreement. 
  

 IN WITNESS WHEREOF, the parties hereto have duly executed this Option Agreement as of the day and year
first above written. 
  

			
	 KFP HOLDINGS I LLC

		
	 /S/  
	 	 THOMAS M. JOYCE

	 Name:
	 	 Thomas M. Joyce

	 Title:
	 	 Manager

	
	 KNIGHT TRADING GROUP, INC.

		
	 /S/  
	 	 THOMAS M. JOYCE

	 Name:
	 	 Thomas M. Joyce

	 Title:
	 	 Chief Executive Officer

	
	 DEEPHAVEN CAPITAL MANAGEMENT, LLC

		
	 /S/  
	 	 THOMAS M. JOYCE

	 Name:
	 	 Thomas M. Joyce

	 Title:
	 	 Manager

	
	 DEEPHAVEN HOLDINGS, LLC

		
	 /S/  
	 	 COLIN SMITH

	 Name:
	 	 Colin Smith

	 Title:
	 	 Manager

	
	 MATTHEW HALBOWER

		
	 /S/  
	 	 Matthew Halbower

	
	 COLIN SMITH

		
	 /S/  
	 	 COLIN SMITH

	
	SHAILESH VASUNDHRA
		
	 /S/  
	 	 SHAILESH VASUNDHRA

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