Document:

Ex10_2ViperEnergyFormofDirectorPhantomUnitAwardAgreement

Exhibit 10.2

FORM OF
VIPER ENERGY PARTNERS LP
2014 EQUITY INCENTIVE PLAN

PHANTOM UNIT AGREEMENT

THIS PHANTOM UNIT AGREEMENT (this “Agreement”) is made and entered into by and between Viper Energy Partners GP LLC, a Delaware limited liability company (the “General Partner”), and _________ (“you”), effective as of ___________ (the “Date of Grant”).  

WHEREAS, Viper Energy Partners LP, a Delaware limited partnership (the “Partnership”), acting through the board of directors of the General Partner (the “Board”), has adopted the Viper Energy Partners LP 2014 Equity Incentive Plan, as it may be amended from time to time (the “Plan”), to, among other things, attract, retain and motivate certain directors, employees and officers of the Partnership, the General Partner and their respective Affiliates (collectively, the “Partnership Entities”); and 

WHEREAS, the Board has authorized the grant of Phantom Units under the Plan to certain Directors of the General Partner as part of their compensation for services provided to the Partnership.  

NOW, THEREFORE, in consideration of the mutual covenants set forth herein and for other valuable consideration hereinafter set forth, the parties agree as follows: 

1.Grant of Phantom Units.  The General Partner hereby grants to you, effective as of the Date of Grant, the right (the “Award”) to receive an aggregate of _____ Units (the “Phantom Units”) on the terms and conditions set forth herein and in the Plan, which Plan is incorporated herein by reference as part of this Agreement.  Capitalized terms used in this Agreement but not otherwise defined herein shall have the meanings given to such terms in the Plan, unless the context requires otherwise.        
2.    Phantom Units.  Each Phantom Unit under the Award is a notional Unit granted under Section 6.4 of the Plan, which upon vesting entitles you to receive, at the time of settlement (which may or may not be coterminous with the vesting schedule of the Award), a Partnership Unit.   
3.    Vesting of Phantom Units.  Phantom Units shall be deemed “Nonvested Phantom Units” unless and until they have become “Vested Phantom Units” in accordance with this Section 3.    
(a)    Vesting Schedule.  Subject to the other terms and conditions set forth herein, the Phantom Units granted pursuant to this Agreement will become Vested Phantom Units in accordance with the following schedule, provided that you remain in the employ of, or a service provider to, the Partnership Entities until the applicable vesting dates: 

	
		
	Date Phantom Units Become Vested Phantom Units
	Number of Phantom Units that Become Vested Phantom Units

	Date of Grant
	33.33%

	1st Anniversary
	66.66%

	2nd Anniversary
	100%

(b)    Change of Control.  Notwithstanding the above vesting schedule, upon the occurrence of a Change of Control prior to the date all Phantom Units granted pursuant to this Agreement become Vested Phantom Units, all of Phantom Units subject to this Agreement will immediately become Vested Phantom Units.  As used in this Section 3(b), the term “Change of Control” means a Change of Control as defined in the Plan even if such Change of Control does not also constitute a “change in the ownership of a corporation,” a “change in the effective control of a corporation,” or a “change in the ownership of a substantial portion of a corporation’s assets,” in each case, within the meaning of § 1.409A-3(i)(5) of the 409A Regulations.  
(c)    Termination of Employment.  
(i)    General.  Except as provided in Section 3(c)(ii) below, notwithstanding anything to the contrary in the foregoing provisions of this Section 3, in the event your employment or service relationship with the Partnership Entities is terminated prior to the date all Phantom Units granted pursuant to this Agreement become Vested Phantom Units, then all of your Nonvested Phantom Units will remain unvested, will become null and void and will be forfeited as of the date of such termination.  
(ii)    Death and Disability.  If your employment or service relationship with the Partnership Entities is terminated due to death or Disability prior to the date all Phantom Units granted pursuant to this Agreement become Vested Phantom Units, then all Phantom Units subject to this Agreement will immediately become Vested Phantom Units as of your employment termination date.  As used in this Section 3(c)(ii), “Disability” means your inability to substantially perform your duties to the General Partner, the Partnership, or any Affiliate of either by reason of a medically determinable physical or mental impairment that is expected to last for a period of six months or longer or to result in death.  
4.    Settlement and Payment of Phantom Units.  
(a)    Time of Settlement.  Subject to your satisfaction of the applicable tax withholding obligations of Section 6 and the requirements Section 4(b) below, Vested Phantom Units will be settled upon the earlier to occur of: 
(i)    the following schedule: 

2

	
		
	Date Phantom Units are Settled
	Number of Phantom Units that are Settled by Issuance of Units

	___________
	___________

	___________
	___________

	___________
	___________

or
(ii)    the date a Change in Control occurs (the earliest occurring of such events, the “Settlement Date”).  The term “Change of Control” means a Change of Control as defined in the Plan.    
(b)    Extension of Settlement Date.  Notwithstanding the foregoing provisions of this Section 4, in the event the issuance and delivery of Units on any Settlement Date would violate any applicable Federal, state, local or foreign law (including if, at the time of a proposed settlement, there shall be an effective registration statement registering under the Securities Act of 1933, as amended (the “Securities Act”), the issuance of Units upon vesting of Awards under the Plan (the “Registration Statement”), and there shall have occurred an event which makes any statement made in the Registration Statement, related prospectus or any document incorporated therein by reference untrue in any material respect or which requires the making of any changes in such Registration Statement, prospectus or other documents so that they will not contain any untrue statement of material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading), the General Partner may specify another date, during a 30 day period beginning on the date the issuance and delivery of Units for your Vested Phantom Units, or any portion thereof, would first no longer violate an applicable federal, state, local or foreign law, as the Settlement Date for your Vested Phantom Units, or portion thereof, but not later than two and one-half months after the end of the calendar year in which such Award becomes Vested Phantom Units.    
(c)    Delivery of Units.  No fractional Units shall be issued with respect to Vested Phantom Units; rather, you will receive a cash payment for such amount as is necessary to eliminate fractional Units and effect the issuance and acceptance of only whole Units.  Unless and until a certificate or certificates representing such Units shall have been issued by the Partnership to you or the transfer of such Units shall be entered in the Partnership’s ledger or otherwise properly reflected in the Partnership’s books and records, you shall not be or have any of the rights or privileges of a unitholder of the Partnership with respect to Units acquirable upon vesting of the Award.   The Partnership will not have any obligation to settle the vesting of any Award by transfer of such Units unless and until the General Partner receives the full amount of money as the General Partner may require to meet its withholding obligation under applicable tax laws or regulations and to satisfy the tax withholding obligations of Section 6 hereof.
5.    Transferability.  This Agreement and the Phantom Units granted hereunder will not be transferrable or assignable by you other than by will or the laws of descent and distribution, except to the extent approved by the Administrator in accordance with the terms of the Plan.  Notwithstanding the foregoing, if you are serving as a Designated Director of the General Partner, 

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you may enter into a transfer agreement that transfers this Award and requires issuance of the Units in settlement of the Vested Phantom Units to an entity, including without limitation a private equity or other investment fund that is an investor in the Partnership (an “Investor”), subject to compliance with all applicable securities laws.  A “Designated Director” is a Director of the General Partner who is an employee or partner of an Investor and who is treated as serving on behalf of such Investor because the services provided to the General Partner depend upon the exercise of expertise and are similar to those that are performed for the Investor and the Investor has established a policy that provides that the Investor is entitled to the benefit of any compensation provided for services provided as a Director of any portfolio company.
6.    Payment of Taxes.  To the extent that the settlement of this Award or the disposition of Units acquired by vesting of this Award results in compensation income or wages to you for federal, state or local tax purposes that are subject to withholding requirements, you shall deliver to the General Partner at the time of such settlement or disposition such amount of money as the General Partner may require to meet its withholding obligation under applicable tax laws or regulations.  You may satisfy such tax withholding obligation (i) in cash (including by certified check, bank draft or money order, or wire transfer of immediately available funds); or (ii) in the Administrator’s discretion and on such terms as the Administrator approves: (A) by delivering or constructively tendering by means of attestation whereby you identify for delivery specific duly endorsed Units having a Fair Market Value equal to the aggregate withholding obligation (provided that any Units used for this purpose must have been held by you for such minimum period of time, if any, as may be established from time to time by the Administrator), (B) by notice of net issuance including a statement directing the Partnership to retain from transfer the number of Units with a Fair Market Value equal to the aggregate withholding obligation, in which case the Award will be surrendered and cancelled with respect to the number of Units retained by the Partnership, or (C) to the extent permissible under applicable law, through delivery of irrevocable instructions to a broker to sell a sufficient number of the Units being settled to cover the aggregate withholding obligation and delivery to the General Partner on behalf of the Partnership (on the same day that the Units issuable upon vesting are delivered) of the amount of sale proceeds required to pay the aggregate withholding obligation; or (iii) any combination of the foregoing.  In the event the Administrator subsequently determines that the amount paid or withheld as payment of any tax withholding obligations is insufficient to discharge the tax withholding obligation, you will be required to pay to the General Partner, immediately upon the Administrator’s request, the amount of that deficiency.  No Units will be transferred to you pursuant to Section 4(c) until the full amount of any required tax withholding obligation has been received by the General Partner.
7.    Nonqualified Deferred Compensation Rules.  The intent of the parties is that the Award and related rights under this Agreement will be exempt under Section 409A of the Code and the 409A Regulations as a short-term deferral and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.  In the event the Award is subject to Section 409A, the General Partner, the Partnership and you shall take commercially reasonable efforts to reform or amend any provision hereof to the extent it is reasonably determined that such provision would or could reasonably be expected to cause you to incur any additional tax or interest under Section 409A or the 409A Regulations to try to comply with the requirements of Section 409A and the 409A Regulations through good faith modifications, in any case, to the minimum 

4

extent reasonably appropriate to conform with such requirements; provided, that any such modification shall not increase the cost or liability to the General Partner or the Partnership.  To the extent that any provision hereof is modified in order to comply with Section 409A and the 409A Regulations, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to the General Partner, the Partnership and you of the applicable provision without violating the provisions of Section 409A and the 409A Regulations.  Notwithstanding the foregoing provisions of this Section 7, you are responsible for any and all taxes (including any taxes imposed under Section 409A of the Code) associated with the grant or vesting of, or otherwise with respect to, the Award and matters related thereto.  For purposes of Section 409A of the Code, each payment or amount due under this Agreement shall be considered a separate payment.   
8.    Miscellaneous.  
(a)    No Right to Continued Service.  This Award shall not be construed to confer upon you any right to continue as an employee of or other service provider to the Partnership Entities. Any question as to whether and when there has been a termination of employment or service shall be determined by the Administrator and its determination shall be final and binding.  Records of the Partnership Entities regarding your period of service, termination of service, leaves of absence and other matters shall be conclusive for all purposes hereunder, unless determined by the Administrator to be incorrect.    
(b)    Administration.  This Agreement shall at all times be subject to the terms and conditions of the Plan.  The Administrator shall have sole and complete discretion with respect to all matters reserved to it by the Plan and decisions of the Administrator or a majority of the Committee designated as Administrator with respect thereto and to this Agreement shall be final and binding upon you and the Partnership Entities.  In the event of any conflict between the terms and conditions of this Agreement and the Plan, the provisions of the Plan shall control.    
(c)    No Liability for Good Faith Determinations.  The Partnership Entities, the members of the Board and the Administrator, shall not be liable for any act, omission or determination taken or made in good faith with respect to this Agreement or the Award granted hereunder.  
(d)    No Guarantee of Interests.  The Partnership Entities the members of the Board and the Administrator, do not guarantee the Units from loss or depreciation.    
(e)    Severability.  If any provision of this Agreement is held to be illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions hereof, but such provision shall be fully severable and this Agreement shall be construed and enforced as if the illegal or invalid provision had never been included herein.     
(f)    Binding Effect.  This Agreement shall be binding upon you, your legal representatives, heirs, legatees and distributees, and upon the Partnership Entities and their successors and assigns.  

5

(g)    Construction.  The titles and headings of sections are included for convenience of reference only and are not to be considered in construction of the provisions hereof.  Words used in the masculine shall apply to the feminine where applicable and whenever the context of this Agreement dictates, the plural shall be read as the singular and the singular as the plural.
(h)    Governing Law.  All questions arising with respect to the provisions of this Agreement shall be determined by application of the laws of the State of Delaware without regard to choice of law principles thereunder, except to the extent Delaware law is preempted by federal law.   
(i)    Amendment.  This Agreement may be amended by the Administrator; provided, however, that, unless otherwise provided in the Plan, no such amendment may materially reduce your rights or benefits inherent in this Agreement prior to such amendment without your express written consent.  For the avoidance of doubt, a cancellation of all or a part of this Award where you receive a payment equal in value to the Fair Market Value of the vested Award will not constitute an impairment of your rights that requires your consent.
(j)    Furnish Information.  You agree to furnish to the General Partner or the Partnership all information requested by them to enable the Partnership Entities to comply with any reporting or other requirements imposed upon them by or under any applicable statute or regulation.   
(k)    Execution of Receipts and Releases.  Any payment of cash or any issuance or transfer of Units or other property to you, or to your legal representative, heir, legatee or distributee, shall, to the extent thereof, be in full satisfaction of all claims of such persons hereunder.  The Administrator may require you or your legal representative, heir, legatee or distributee, as a condition precedent to such payment or issuance, to execute a release and receipt therefor in such form as it shall determine.  
(l)    Consent to Electronic Delivery; Electronic Signature.   In lieu of receiving documents in paper format, you agree, to the fullest extent permitted by law, to accept electronic delivery of any documents that the Partnership Entities may be required to deliver (including, without limitation, prospectuses, prospectus supplements, grant or award notifications and agreements, account statements, annual and quarterly reports, and all other forms of communications) in connection with this and any other award made or offered by the Partnership.  Electronic delivery may be via an electronic mail system of the Partnership Entities or by reference to a location on a Partnership intranet to which you have access.  You hereby consent to any and all procedures the Partnership Entities have established or may establish for an electronic signature system for delivery and acceptance of any such documents that the Partnership Entities may be required to deliver, and agree that your electronic signature is the same as, and shall have the same force and effect as, your manual signature.  
[Remainder of page intentionally blank]
[Signatures appear on following page]

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IN WITNESS WHEREOF, the General Partner has caused this Agreement to be executed by its duly authorized agent effective as of the date first written above.  
	
					
	 
	 
	 
	VIPER ENERGY PARTNERS GP LLC

	Dated:
	 
	 
	By:
	 

	 
	 
	 
	 
	Travis D. Stice, Chief Executive Officer

	 
	 
	 
	 
	 

By your signature below and the signature of the General Partner’s representative above, you and the General Partner agree to be bound by all of the terms and conditions of this Phantom Unit Agreement and the Plan (incorporated herein by this reference as if set forth in full in this document). By executing this Phantom Unit Agreement, you hereby irrevocably elect to accept the Phantom Unit rights granted pursuant to this Phantom Unit Agreement and to receive the Award to purchase Units of Viper Energy Partners LP designated above subject to the terms of the Plan and this Phantom Unit Agreement.
	
					
	 
	 
	 
	AWARD RECIPIENT

	Dated:
	 
	 
	 
	 

	 
	 
	 
	[Name of Participant]RocketFuel-Comerica-SecondAmendmenttoCreditAgreementConformed

Execution Copy
SECOND AMENDMENT TO AMENDED AND RESTATED                                                  REVOLVING CREDIT AND TERM LOAN AGREEMENT 

THIS SECOND AMENDMENT TO AMENDED AND RESTATED REVOVLING CREDIT AND TERM LOAN AGREEMENT (“Second Amendment”) is made as of this 31st day of October, 2014 by and among Rocket Fuel Inc. (“Borrower”), the Lenders (as defined below) party hereto and Comerica Bank, as administrative agent for the Lenders (in such capacity, “Agent”).
RECITALS
A.    Borrower has entered into that certain Amended and Restated Revolving Credit and Term Loan Agreement dated as of December 20, 2013 (as amended, restated or otherwise modified from time to time, the “Credit Agreement”) with Agent, the financial institutions from time to time signatory thereto (collectively, the “Lenders” and each, individually, a “Lender”) and Silicon Valley Bank, as Syndication Agent, under which the Lenders extended (or committed to extend) credit to Borrower, as set forth therein.
B.    Borrower previously acquired all of the issued and outstanding shares of capital stock, options, warrants and other convertible securities of X Plus Two Solutions, Inc., a Delaware corporation (“X Plus Two”), as further described in that certain Agreement and Plan of Merger dated as of August 4, 2014, by and among the Borrower, Denali Acquisition Sub, Inc., Denali Acquisition Sub II, LLC, X Plus Two and Shareholder Representative Services LLC, as the Stockholders’ Agent.  Borrower has informed Agent and the Lenders that X Plus One Solutions, Inc. (“X Plus One”), a Delaware corporation and wholly-owned subsidiary of X Plus Two, is considering a sale of WirelessDeveloper, Inc., a Michigan corporation (“WirelessDeveloper”) to the founder of WirelessDeveloper (the “WirelessDeveloper Sale”).  Borrower has requested that Agent and the Lenders consent to the WirelessDeveloper Sale and waive the requirement that WirelessDeveloper deliver a Guaranty and a joinder agreement to the Security Agreement pursuant to Section 7.13 of the Credit Agreement.  Agent and the Lenders are willing to do so, subject to the terms and conditions set forth in this Second Amendment.
C.    Borrower has requested that Agent and the Lenders make certain other amendments to the Credit Agreement, and Agent and the Lenders are willing to do so, but only on the terms and conditions set forth in this Second Amendment.
NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, Borrower, Agent and the Lenders agree as follows:
		
	1.
	Agent and the undersigned Lenders hereby consent to the WirelessDeveloper Sale and waive the requirement that WirelessDeveloper deliver a Guaranty and a joinder agreement to the Security Agreement pursuant to Section 7.13 of the Credit Agreement, provided that (a) no Default or Event of Default shall have occurred and be continuing immediately prior to or following the consummation of the WirelessDeveloper Sale, (b) the WirelessDeveloper Sale shall be consummated on or before March 31, 2015, unless such date is extended by Agent, (c) any Net Cash Proceeds from the WirelessDeveloper Sale shall be Reinvested or applied to repay the Term Loan, in either case in accordance with Section 4.8 of the Credit Agreement and (d) Agent shall have received execution copies of any documents related to the WirelessDeveloper Sale, which shall in each case be in form and substance reasonably satisfactory to Agent (with fully executed copies, substantially in the form of such execution copies, to be delivered to Agent concurrently with the consummation of the WirelessDeveloper Sale).  Borrower hereby agrees and acknowledges that if the WirelessDeveloper Sale is not consummated on or before March 31, 2015, then it shall cause WirelessDeveloper to deliver a Guaranty and a joinder agreement to the Security Agreement and otherwise comply with Section 7.13 of the Credit Agreement by April 30, 2015, to the extent WirelessDeveloper is not deemed to constitute an Immaterial Subsidiary in accordance with the terms of the Credit Agreement and other Loan Documents.

		
	2.
	Section 1.1 of the Credit Agreement is hereby amended as follows:

		
	(a)
	The definition of “EBITDA” is hereby amended and restated in its entirety as follows:

“EBITDA” shall mean with respect to any fiscal period an amount equal to the sum of (a) Consolidated Net Income of the Borrower and its Subsidiaries for such fiscal period, plus (b) in each case to the extent deducted in the calculation of the Borrower’s Consolidated Net Income and without duplication, (i) depreciation and amortization for such period, plus (ii) income tax expense for such period, plus (iii) Consolidated Total Interest Expense paid or accrued during such period, plus (iv) non-cash expenses, losses or charges, including, without limitation, non-cash expenses, losses or charges associated with granting stock options or other convertible securities, including warrants, or related to employee benefit plans, plus (v) costs, fees and expenses in connection with Permitted Acquisitions to the extent not exceeding $500,000 in the aggregate for any single such acquisition, plus (vi) costs, fees and expenses in connection with the execution and delivery of this Agreement to the extent not exceeding $250,000 in the aggregate, plus (vii) any other expenses, losses or charges otherwise agreed to by the Agent and the Majority Lenders, plus (viii) payroll-related expenses incurred during the fiscal quarters ending June 30, 2014 and September 30, 2014 in connection with the exercise of employee stock options, in an aggregate amount not to exceed $1,000,000, plus (ix) the X Plus Two Integration Costs for such period, and minus, to the extent added in computing Consolidated Net Income, and without duplication, all extraordinary and non-recurring revenue and gains (including income tax benefits) for such period, all as determined in accordance with GAAP; provided, however, that notwithstanding the foregoing, “EBITDA” shall be determined on a pro forma basis for the period during which a Permitted Acquisition shall have occurred, giving effect to such Permitted Acquisition as if it occurred on the first day of the relevant period.  
    
(b)    The following definitions are hereby added to Section 1.1:

“X Plus Two” shall mean X Plus Two Solutions, Inc., a Delaware corporation.

“X Plus Two Integration Costs” shall mean the costs and expenses incurred in connection with the integration of X Plus Two and its subsidiaries as direct or indirect subsidiaries of Borrower following the consummation of the acquisition by Borrower of X Plus Two, in an aggregate amount not to exceed the following for the consecutive twelve month period ending on the dates specified below:

	
		
	September 30, 2014
	$9,500,000

	December 31, 2014
	$15,500,000

	March 31, 2015
	$19,500,000

	June 30, 2015
	$22,000,000

	September 30, 2015
	$15,000,000

	December 31, 2015
	$11,500,000

	March 31, 2016
	$7,500,000

	June 30, 2016
	$5,000,000

	September 30, 2016
	$2,500,000

		
	3.
	Section 7.9(a) of the Credit Agreement is hereby amended and restated in its entirety as follows:

“(a) Minimum EBITDA. (i)  Borrower shall maintain EBITDA (for the consecutive twelve month period then ending) as of the last day of each fiscal quarter of not less than the amount set forth below opposite the applicable fiscal quarter ending date:
	
		
	Fiscal Quarter Ending Date
	Amount

	September 30, 2014
	($700,000)

	December 31, 2014
	($2,100,000)

(ii)    For the fiscal quarters ending March 31, 2015, June 30, 2015 and September 30, 2015, the Borrower, Agent and the Majority Lenders shall negotiate in good faith to determine, based upon the forecast delivered to Agent by Borrower’s Board of Directors on October 11, 2014 (the “October 2014 Board Forecast”), a minimum EBITDA requirement under this clause (a); provided, however, that if the parties fail to do so, the Agent shall determine the minimum EBITDA requirement in its reasonable discretion, taking into account the October 2014 Board Forecast; provided further that the minimum EBITDA requirement determined by Agent for each of the fiscal quarters covered by the October 2014 Board Forecast shall vary by no more than $1,500,000 per quarter from the EBITDA projected in the October 2014 Board Forecast.
 
(iii)    For the fiscal quarter ending December 31, 2015, and for each fiscal quarter ending thereafter, the Borrower, Agent and the Majority Lenders shall negotiate in good faith to determine, within ten (10) Business Days following Agent’s receipt of the financial plan and projections for the relevant Fiscal Year approved by the Borrower’s Board of Directors (the “Board-approved Plan”), a minimum EBITDA requirement under this clause (a); provided, however, that if the parties fail to do so, the Agent shall determine the minimum EBITDA requirement in its reasonable discretion, taking into account the Borrower’s performance for the preceding Fiscal Year and the Board-approved Plan; provided further that the minimum EBITDA requirement determined by Agent for each of the fiscal quarters covered by the Board-approved Plan shall vary by no more than $2,000,000 per quarter from the EBITDA projected in the Board-approved Plan.” 

		
	4.
	Section 8.9 of the Credit Agreement is hereby amended and restated in its entirety as follows:

“8.9    Limitation on Capital Expenditures.  Make or commit to make (by way of the acquisition of securities of a Person or otherwise) any expenditure in respect of the purchase or other acquisition of fixed or capital assets (excluding any such asset acquired in connection with normal replacement and maintenance programs properly charged to current operations) except for (a) Reinvestments of Net Proceeds from Asset Sales or Insurance Proceeds to the extent permitted under Section 4.8 hereof, and (b) Capital Expenditures the amount of which (excluding Capital Expenditures to the extent (i) reimbursed by a customer during the same period or (ii) financed by third party financing permitted under the terms of this Agreement) (x) in the Fiscal Year ending December 31, 2014 shall not exceed $45,000,000 and (y) in the Fiscal Year ending December 31, 2015 and any Fiscal Year thereafter shall not exceed $10,000,000; provided that if the Credit Parties do not utilize the entire amount of Capital Expenditures permitted in any Fiscal Year, the Credit Parties may carry forward such unutilized amount to the immediately succeeding Fiscal Year only (and Capital Expenditures shall be deemed to utilize the current Fiscal Year’s allowance before being applied to any carryover allowance).” 
		
	5.
	Borrower hereby certifies that Wireless Artist LLC, a Michigan limited liability company and wholly-owned subsidiary of WirelessDeveloper, constitutes an Immaterial Subsidiary for purposes of the Credit Agreement and the other Loan Documents.

		
	6.
	This Second Amendment shall be effective (according to the terms hereof) as of September 30, 2014 on the date that the following conditions have been satisfied (the “Second Amendment Effective Date”):

(a)    Agent shall have received executed facsimile or email counterparts of this Second Amendment in each case duly executed and delivered by Agent, the Lenders and Borrower, with originals following promptly thereafter; and
(b)    Borrower shall have paid to Agent all fees, costs and expenses, if any, owed to Agent and Lenders and accrued to the Second Amendment Effective Date, in each case, as and to the extent required to be paid in accordance with the Loan Documents.  
		
	7.
	Borrower hereby represents and warrants that, after giving effect to any amendments and consents contained herein, (a) execution and delivery of this Second Amendment and the performance by Borrower of its obligations under the Credit Agreement as amended hereby (herein, as so amended, the “Amended Credit Agreement”) are within its corporate powers, have been duly authorized, are not in contravention of law applicable to Borrower or the terms of its articles of incorporation or bylaws or articles of organization or operating agreement, and do not require the consent or approval of any governmental body, agency or authority, and the Amended Credit Agreement will constitute the valid and binding obligations of Borrower, enforceable in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, reorganization, insolvency, moratorium, fraudulent conveyance, ERISA or similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity (whether enforcement is sought in a proceeding in equity or at law), (b) the representations and warranties set forth in Section 6 of the Amended Credit Agreement are true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representation or warranty to the extent that it is already qualified or modified by materiality in the text thereof) on and as of the Second Amendment Effective Date (except to the extent such representations specifically relate to an earlier date), and (c) on and as of the Second Amendment Effective Date, after giving effect to this Second Amendment, no Default or Event of Default shall have occurred and be continuing.   

		
	8.
	Except as specifically set forth herein, this Second Amendment shall not be deemed to amend or alter in any respect the terms and conditions of the Credit Agreement (including without limitation all conditions and requirements for Advances and any financial covenants), any of the Notes issued thereunder or any of the other Loan Documents.  Nor shall this Second Amendment constitute a waiver or release by Agent or the Lenders of any right, remedy, Default or Event of Default under or a consent to any transaction not meeting the terms and conditions of the Credit Agreement, any of the Notes issued thereunder or any of the other Loan Documents.  Furthermore, this Second Amendment shall not affect in any manner whatsoever any rights or remedies of the Lenders or Agent with respect to any other non-compliance by Borrower or any Guarantor with the Credit Agreement or the other Loan Documents, whether in the nature of a Default or Event of Default, and whether now in existence or subsequently arising, and shall not apply to any other transaction.  Borrower hereby confirms that each of the Collateral Documents continues in full force and effect and secures, among other things, all of its obligations, liabilities and indebtedness owing to Agent and the Lenders under the Credit Agreement and the other Loan Documents (where applicable, as amended herein).

		
	9.
	Borrower hereby reaffirms, confirms, ratifies and agrees to be bound by its covenants, agreements and obligations under the Amended Credit Agreement and each other Loan Document previously executed and delivered by it, or executed and delivered in accordance with this Second Amendment.  Each reference in the Credit Agreement to “this Agreement” or “the Credit Agreement” shall be deemed to refer to the Credit Agreement as amended by this Second Amendment.

		
	10.
	Borrower hereby acknowledges and agrees that this Second Amendment and the amendments and consents contained herein do not constitute any course of dealing or other basis for altering any obligation of Borrower, any other Credit Party or any Guarantor or any rights, privilege or remedy of the Lenders under the Credit Agreement or any other Loan Document.

		
	11.
	Unless otherwise defined to the contrary herein, all capitalized terms used in this Second Amendment shall have the meanings set forth in the Credit Agreement.

		
	12.
	This Second Amendment may be executed in counterpart, in accordance with Section 13.9 of the Credit Agreement.  

		
	13.
	This Second Amendment shall be construed in accordance with and governed by the laws of the State of California (without giving effect to conflict of laws principles). 

(Remainder of page intentionally left blank.)

IN WITNESS WHEREOF, Borrower, the Lenders and Agent have each caused this Second Amendment to be executed by their respective duly authorized officers or agents, as applicable, all as of the date first set forth above.

COMERICA BANK, as Agent and a Lender 

By:      /s/ Dennis Rapoport            
Name:  Dennis Rapoport            
Title:       Senior Vice President            
SILICON VALLEY BANK, as a Lender 

By:      /s/ Drew Beito                
Name:   Drew Beito                
Title:      Vice President                
 CITY NATIONAL BANK, as a Lender 

By:      /s/ Brian Lewis            
Name:   Brian Lewis                
Title:      Vice President                
ROCKET FUEL INC.

By:      /s/ Bela Pandya            
Name:   Bela Pandya                
Title:      Vice President, Finance,         
Interim Chief Financial Officer    

Detroit_4386887_6_

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