Document:

Acquisition Facility Agreement

 Exhibit 10.4 
  
 EXECUTION COPY 
  

  
 ACQUISITION FACILITY AGREEMENT

  
 BY AND BETWEEN 
  
 THE PEOPLES BANCTRUST COMPANY, INC. 
  
 AND 
  
 ENDURANCE CAPITAL INVESTORS, L.P. 
  
  
  
 Dated as of April 6, 2005 
  

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page

	ARTICLE I	 	        DEFINITIONS	  	1
			
	        1.1	 	Definitions	  	1
			
	        1.2	 	Interpretation	  	7
			
	ARTICLE II	 	        SALE AND PURCHASE OF SECURITIES	  	7
			
	        2.1	 	Request for Issuance	  	7
			
	        2.2	 	Tranche Size Requirements	  	7
			
	        2.3	 	Warrants	  	7
			
	        2.4	 	Total Amount	  	7
			
	        2.5	 	Negotiation of Terms	  	7
			
	        2.6	 	Sale and Purchase	  	8
			
	        2.7	 	Use of Proceeds	  	8
			
	        2.8	 	No Obligation; no Exclusivity	  	8
			
	ARTICLE III	 	        THE COMPANY’S REPRESENTATIONS AND WARRANTIES	  	8
			
	        3.1	 	Due Incorporation; Subsidiaries	  	8
			
	        3.2	 	Due Authorization	  	8
			
	        3.3	 	Consents and Approvals; Authority Relative to this Agreement	  	9
			
	ARTICLE IV	 	        PURCHASER’S REPRESENTATIONS AND WARRANTIES	  	9
			
	        4.1	 	Due Incorporation	  	9
			
	        4.2	 	Due Authorization	  	10
			
	        4.3	 	Consents and Approvals; Authority Relative to this Agreement	  	10
			
	ARTICLE V	 	        COVENANTS	  	10
			
	        5.1	 	Listing of Common Stock	  	10
			
	        5.2	 	Exchange Act Registration	  	11
			
	        5.3	 	Additional SEC Documents	  	11
			
	        5.4	 	Notice	  	11
			
	        5.5	 	Inspection Rights	  	11
			
	        5.6	 	Business Plan and Budget	  	11
			
	ARTICLE VI	 	        CONDITIONS PRECEDENT	  	11
			
	        6.1	 	Accuracy of Representations and Warranties	  	11
			
	        6.2	 	Performance of Covenants	  	12

  

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 TABLE OF CONTENTS 
 (continued) 
  

					
	 	 	 	  	Page

	        6.3	 	No Default	  	12
			
	        6.4	 	Pro Forma Compliance	  	12
			
	        6.5	 	Approvals and Consents	  	12
			
	        6.6	 	Actions or Proceedings	  	12
			
	        6.7	 	Adverse Changes	  	12
			
	        6.8	 	Bank Holding Company	  	12
			
	        6.9	 	Officer’s Certificate	  	12
			
	ARTICLE VII	 	        CLOSING	  	12
			
	        7.1	 	Closing	  	12
			
	        7.2	 	Deliveries by the Company	  	13
			
	        7.3	 	Deliveries by Purchaser	  	14
			
	ARTICLE VIII	 	        TERM AND TERMINATION	  	14
			
	        8.1	 	Term	  	14
			
	        8.2	 	Termination	  	14
			
	        8.3	 	Termination Notice	  	14
			
	        8.4	 	Survival After Termination	  	14
			
	ARTICLE IX	 	        INDEMNIFICATION	  	15
			
	        9.1	 	Indemnification by the Company	  	15
			
	        9.2	 	Indemnification by Purchaser	  	15
			
	ARTICLE X	 	        MISCELLANEOUS	  	15
			
	        10.1	 	Expenses	  	15
			
	        10.2	 	Amendment	  	15
			
	        10.3	 	Notices	  	15
			
	        10.4	 	Payments in Dollars	  	16
			
	        10.5	 	Waivers	  	16
			
	        10.6	 	Assignment	  	17
			
	        10.7	 	No Third Party Beneficiaries	  	17
			
	        10.8	 	Further Assurances	  	17
			
	        10.9	 	Severability	  	17
			
	        10.10	 	Relationship of Parties	  	17

  

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 TABLE OF CONTENTS 
 (continued) 
  

					
	 	 	 	  	Page

	        10.11	 	Conflict with Securities Purchase Agreements	  	17
			
	        10.12	 	Entire Understanding	  	17
			
	        10.13	 	Applicable Law	  	17
			
	        10.14	 	Arbitration	  	17
			
	        10.15	 	Counterparts	  	19
			
	        10.16	 	Facsimile or Electronic Signatures	  	19

  

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 ACQUISITION FACILITY AGREEMENT 
  
 THIS ACQUISITION FACILITY AGREEMENT is made as of the 6th day of April, 2005, by and between The Peoples BancTrust Company,
Inc., an Alabama business corporation and bank holding company (the “Company”), and Endurance Capital Investors, L.P., a Delaware limited partnership (“Purchaser”). Certain capitalized terms used herein are defined
in Article I. 
  
 W I T N E S S E T H: 
  
 WHEREAS, the parties desire that the Company issue (or cause to be issued),
and Purchaser purchase, Tranches of Securities in an aggregate purchase price up to the Total Amount, all upon the terms and subject to the conditions contained herein; 
  
 NOW, THEREFORE, in consideration of the foregoing and the mutual representations, warranties, covenants and agreements
herein contained, the Company and Purchaser agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 1.1 Definitions. The following terms shall have the following meanings
for the purposes of this Agreement: 
  
 “Affiliate” shall mean, with respect to any specified Person, any other Person which, directly or indirectly, controls, is under common control with, or is controlled by, such specified Person. 
  
 “Agreement” shall mean this Acquisition Facility Agreement,
as it may be amended or modified from time to time in accordance with its terms. 
  
 “Bank” shall mean The Peoples Bank and Trust Company, an Alabama banking corporation. 
  
 “BHCA” shall mean the Bank Holding Company Act. 
  

“Business Day” shall mean any day of the year other than (a) any Saturday or Sunday or (b) any other day on which the Bank or banks
located in New York, New York are generally closed for business. 
  
 “Business Trust” shall mean a Subsidiary of the Company which is a newly formed business trust organized under the Delaware Statutory Trust Act and the sole asset of which is Indebtedness of the Company. 

 “Change of Control” shall mean any of the following: 
  
 (i) The Company ceases to own all of the outstanding capital
stock of the Bank. 
  
 (ii) A majority of the
board of directors of the Company or the Bank consists of individuals who are not Continuing Directors. A “Continuing Director” of a Person means an individual (x) who is a director of the Person on the date hereof or (y) who becomes a
director of the Person subsequent to the date hereof and whose election or nomination for election is approved by a vote of at least a majority of the directors then comprising the Continuing Directors of such Person. 
  
 (iii) Any merger, consolidation, share exchange or similar
transaction in which the Company is not the surviving corporation unless the holders of common equity of the surviving entity own directly or indirectly, in substantially the same proportions as their ownership of such common equity immediately
prior to such merger, consolidation, share exchange or similar transaction, more than 50% of the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors of the entity resulting from
such merger, consolidation, share exchange or similar transaction. 
  
 “Closing” shall mean a consummation of a sale and purchase of Securities in accordance with Article VII. 
  
 “Closing Date” shall mean the date on which a Closing occurs or is to occur. 
  
 “Code” shall mean the United States Internal Revenue Code of
1986, as amended. 
  
 “Common Stock” shall mean
the common stock, $.10 par value per share, of the Company. 
  
 “Company” shall have the meaning set forth in the preamble to this Agreement. 
  
 “Contract” shall mean any contract, lease, sales order, purchase order, agreement, indenture, mortgage, note, bond, warrant or
instrument, undertaking, commitment, understanding, or other arrangement (whether written or oral). 
  
 “Convertible Company Indebtedness” shall mean Indebtedness of the Company that is convertible into Common Stock and has such terms as may
be negotiated by the Company and Purchaser. 
  
 “Convertible Preferred Stock” shall mean Preferred Stock that is convertible into Common Stock and has such terms as may be negotiated by the Company and Purchaser. 
  
 “Default” shall mean any condition, occurrence or event
which with notice or lapse of time, or both, would constitute an Event of Default. 
  
 “Dollars” or numbers preceded by the symbol “$” shall mean amounts in United States Dollars. 
  

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 “Event of Default” shall mean any of the following: 
  
 (a) Breach. There shall have been a material breach
of any representation, warranty, covenant or obligation of the Company or an Issuer under this Agreement or any Related Agreement, and in any case, such breach shall not have been remedied within thirty (30) days after receipt by of a notice in
writing from Purchaser or a Purchaser specifying the breach and requesting such breached by remedied. 
  
 (b) Payment Default. The Company or an Issuer shall fail to make promptly when due (including by mandatory prepayment or
redemption) any principal, interest, redemption, dividend or fee payment with respect to the Securities in any Tranche; or the Company or an Issuer shall fail to make any payment of any other amount payable under this Agreement or any Related
Agreement within five (5) Business Days after the date on which such other amount is due. 
  
 (c) Bankruptcy. The Company or any of its Subsidiaries becomes insolvent or generally fails to pay or admits in writing its
inability to pay its debts as they become due, or the Company or any of its Subsidiaries applies for, consents to or acquiesces in the appointment of a trustee, receiver or other custodian for the Company or any of its Subsidiaries or a substantial
part of the Company’s or such Subsidiary’s property, or the Company or any of its Subsidiaries makes a general assignment for the benefit of creditors; or in the absence of such application, consent or acquiescence, a trustee, receiver or
other custodian is appointed for the Company or any of its Subsidiaries or a substantial part of the Company’s or such Subsidiary’s property and is not discharged or dismissed within sixty (60) days; or any bankruptcy, reorganization debt
arrangement or other proceeding under any bankruptcy or insolvency law, or any dissolution or liquidation proceeding, is instituted by or against the Company or any of its Subsidiaries; or any warrant of attachment or similar legal process is issued
against the Company or any of its Subsidiaries or any of the Company’s or such Subsidiary’s property. 
  
 (d) Cross Defaults. The Company or any of its Subsidiaries shall fail to make when due (whether at stated maturity, by
acceleration, on demand or otherwise, and after giving effect to any applicable grace period), any payment of principal of or interest on any indebtedness exceeding $1,000,000 in the aggregate; or the Company or any of its Subsidiaries shall fail to
observe or perform within any applicable grace period any covenants or agreements relating to any such indebtedness, or any other event shall occur, if the effect of such failure or other event is to accelerate, or permit the holder of such
indebtedness or any other Person to accelerate, the maturity of such indebtedness. 
  
 (e) Default Judgments. A judgment or order, for the payment of money in excess of $1,000,000, or otherwise having a Material
Adverse Effect, shall be rendered against the Company or any of its Subsidiaries and such judgment or order shall continue unsatisfied (in the case of a money judgment) and in effect for a period of thirty (30) days during which execution shall not
be effectively stayed or deferred (by action of a court, by agreement or otherwise). 
  
 “Exchange Act” shall mean the Securities Exchange Act of 1934. 
  

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 “Exchangeable Bank Indebtedness” shall mean Indebtedness of the Bank that is
exchangeable for Common Stock and has such terms as may be negotiated by the Company and Purchaser. 
  
 “Exchangeable Trust Preferred Securities” shall mean Trust Preferred Securities that are exchangeable for Common Stock and have such
terms as may be negotiated by the Company or the Bank and Purchaser. 
  
 “FRB” shall mean the Board of Governors of the Federal Reserve System. 
  
 “Governmental Authority” shall mean the government of the United States or any foreign country or any state or political subdivision
thereof or any entity, body or authority exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, including any quasi-governmental entity established to perform such functions. 

 
 “Indebtedness” shall mean indebtedness for borrowed money
evidenced by one or more bonds, debentures, promissory notes or similar instruments. 
  
 “Investor Rights Agreement” shall mean an investor rights agreement with respect to all or a portion of a Tranche of Securities to be entered into between the Company and Purchaser at the Closing for
such Tranche. 
  
 “Issuance Request” shall
mean a request by the Company for the issuance of Securities in the form of Exhibit A. 
  
 “Issuer” shall mean (i) in the case of any Securities other than Indebtedness of the Bank and Trust Preferred Securities, the Company, (ii) in the case of Straight Bank Indebtedness and Exchangeable
Bank Indebtedness, the Bank, and (iii) in the case of Straight Trust Preferred Securities and Exchangeable Trust Preferred Securities, a Business Trust. 
  
 “Law” shall mean any law, statute, regulation, ordinance, rule, order (including cease and desist orders), decree (including consent
decrees), memorandum of understanding, directive, regulatory action, judgment, settlement agreement or other governmental requirement enacted, promulgated or imposed by any Governmental Authority. 
  
 “Lien” shall mean any lien (except for any lien for Taxes
not yet due and payable), mortgage, pledge, charge, claim, title imperfection, defect or objection, security interest, encumbrance, easement, third-party right or restriction (whether on voting, disposition or otherwise). 
  
 “Loss” or “Losses” shall mean any and all
losses (including reductions in value), liabilities, costs, claims, damages and expenses (including attorney’s fees and expenses and costs of investigation and litigation). 
  
 “Material Adverse Effect” shall mean any change in or effect which, individually or in the aggregate with
other changes or effects, is materially adverse to the business, assets, liabilities, condition (financial or otherwise), results of operations or prospects of the Company and its Subsidiaries, taken as a whole, and/or any condition, circumstance,
or situation that would prohibit or otherwise interfere with the ability of the Company or any Issuer to enter into and perform its obligations under this Agreement or any Related Agreement. 
  

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 “NASD” shall mean the National Association of Securities Dealers, Inc. 
  
 “Organization Documents” shall mean, with respect to any
business organization, any certificate or articles of incorporation and any bylaws, each as amended to date, that regulate the basic organization of the business organization and its internal relations. 
  
 “Permit” shall mean any permit, license, approval or other
authorization required or granted by any Governmental Authority. 
  
 “Permitted Acquisition” shall mean any transaction, or series of related transactions, in which the Company or one of its Subsidiaries merges with, acquires substantially all of the assets of or any business (including one
or more branches) of, or acquires all of the capital stock or other equity interests of, any bank or bank holding company which is organized under the Laws of United States of America, one of the fifty States thereof or the District of Columbia and
which transaction or series of transactions has been approved by a majority of the board of directors of such bank or bank holding company. 
  
 “Person” shall mean any individual, corporation, proprietorship, firm, partnership, limited partnership, limited liability company,
trust, association or other entity, as well as any syndicate or group that would be deemed to be a person under Section 13(d) of the Exchange Act. 
  
 “Preferred Stock” shall mean the preferred stock, $.10 par value per share, of the Company. 
  
 “Purchaser” shall have the meaning set forth in the preamble
to this Agreement. 
  
 “Related Agreement” shall
mean any agreement, instrument or other document that is or is to be entered into or otherwise delivered at a Closing or otherwise pursuant to this Agreement, including any Issuance Request, any Securities Purchase Agreement, any Investor Rights
Agreement and the Stock Purchase Agreement and Investor Rights Agreement, each dated as of April 6, 2005, between Purchaser and the Company. 
  
 “SEC” shall mean the United States Securities and Exchange Commission. 
  
 “SEC Documents” shall mean the Company’s most recently filed Form 10-K, and all exhibits and schedules
thereto, and all Forms 10-Q and 8-K, and all exhibits and schedules thereto, filed or furnished thereafter, and the most recently filed proxy statement for the Company’s annual meeting. 
  
 “Securities Act” shall mean the Securities Act of 1933.

  
 “Securities” shall mean Common Stock,
Straight Preferred Stock, Convertible Preferred Stock, Warrants, Straight Company Indebtedness, Convertible Company Indebtedness, Straight Bank Indebtedness, Convertible Bank Indebtedness, Straight Trust Preferred Securities, and Exchangeable Trust
Preferred Securities. 
  

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 “Securities Purchase Agreement” shall mean a Securities purchase agreement with respect
to all or a portion of a Tranche of Securities to be entered into between the Company and the Purchaser of such Tranche or portion of such Tranche at the Closing for such Tranche. 
  
 “Straight Bank Indebtedness” shall mean Indebtedness of the Bank that is not convertible into or
exchangeable for Common Stock or any other security and that has such terms as may be negotiated by the Company or the Bank and Purchaser. 
  
 “Straight Company Indebtedness” shall mean Indebtedness of the Company that is not convertible into or exchangeable for Common Stock or
any other security and that has such terms as may be negotiated by the Company and Purchaser. 
  
 “Straight Preferred Stock” shall mean Preferred Stock that is not convertible into or exchangeable for Common Stock or any other security and that has such terms as may be negotiated by the Company
and Purchaser. 
  
 “Straight Securities” shall
mean any of Straight Preferred Stock, Straight Company Indebtedness, Straight Bank Indebtedness or Straight Trust Preferred Securities. 
  
 “Straight Trust Preferred Securities” shall mean Trust Preferred Securities that are not convertible into or exchangeable for Common
Stock or any other security and that has such terms as may be negotiated by the Company and Purchaser. 
  
 “Subsidiary,” when used with reference to a specified Person, means any corporation, partnership, trust or other entity of which the
majority of outstanding voting securities are owned (directly or indirectly) by such Person. Unless the context otherwise requires, any reference to a Subsidiary shall be a Subsidiary of the Company. 
  
 “Taxes” shall mean all taxes, charges, fees, duties, levies
or other assessments (including income, gross receipts, net proceeds, ad valorem, turnover, real and personal property (tangible and intangible), sales, use, franchise, excise, goods and services, value added, stamp, user, transfer, fuel, excess
profits, occupational, interest equalization, windfall profits, severance, payroll, unemployment and social security taxes) which are imposed by any Governmental Authority, and such term shall include any interest, penalties or additions to tax
attributable thereto. 
  
 “Total Amount” shall
mean twenty million Dollars ($20,000,000). 
  
 “Tranche” shall mean the Securities to be sold and purchased at any particular Closing. 
  
 “Trust Preferred Securities” shall mean preferred equity securities issued by a Business Trust. 
  
 “Warrants” shall mean warrants to acquire Common Stock upon
such terms as may be negotiated by the Company and Purchaser. 
  

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 1.2 Interpretation. The headings preceding the text of Articles and Sections included in this
Agreement are for convenience only and shall not be deemed part of this Agreement or be given any effect in interpreting this Agreement. The use of the masculine, feminine or neuter gender or the singular or plural form of words herein shall not
limit any provision of this Agreement. The use of the terms “including” or “include” shall in all cases herein mean “including, without limitation” or “include, without limitation,” respectively. Reference to
any Person includes such Person’s successors and assigns to the extent such successors and assigns are permitted by the terms of any applicable agreement, and reference to a Person in a particular capacity excludes such Person in any other
capacity or individually. Reference to any agreement (including this Agreement), document or instrument means such agreement, document or instrument as amended or modified and in effect from time to time in accordance with the terms thereof and, if
applicable, the terms hereof. Reference to any Law shall mean such Law as amended, modified, codified, replaced or re-enacted, in whole or in part, including rules, regulations, enforcement procedures and any interpretations promulgated hereunder.
Underscored references to Articles, Sections or clauses shall refer to those portions of this Agreement. The use of the terms “hereunder,” “hereof,” “hereto” and words of similar import shall refer to this Agreement as
a whole and not to any particular Article, Section or clause of this Agreement. 
  
 ARTICLE II 
  
 SALE AND PURCHASE OF
SECURITIES 
  
 2.1 Request for Issuance. At any time during
the Term of this Agreement, the Company, at its sole option, may request, by delivery of an Issuance Request to Purchaser, that Purchaser purchase a Tranche of one or more types of Securities. 
  
 2.2 Tranche Size Requirements. Notwithstanding anything to the
contrary in this Agreement, the total purchase price of any Tranche shall be at least $5,000,000, and the total purchase price of any type of Securities included in any Tranche shall be at least $2,000,000 and shall be a multiple of $1,000,000.

  
 2.3 Warrants. In the event that the Company wishes to
include Straight Securities in any Tranche, the Company shall also include in such Tranche a number of Warrants to be negotiated based on the number or amount of Straight Securities to be issued as part of such Tranche. 
  
 2.4 Total Amount. Notwithstanding anything to the contrary in this
Agreement, Purchaser shall not be obligated to purchase Securities if and to the extent that the aggregate purchase price of all Securities sold or to be sold to Purchaser pursuant to this Agreement exceeds or would exceed the Total Amount.

  
 2.5 Negotiation of Terms. Upon receipt of an Issuance
Request for a Tranche, Purchaser and the Company, acting in good faith, shall attempt to negotiate the terms of the Securities in such Tranche, including price or coupon rate, and the terms of such purchase (including a Securities Purchase
Agreement). Purchaser and the Company expect that each Securities Purchase Agreement will be substantially similar to the Stock Purchase Agreement 
  

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 dated April 6, 2005 between Purchaser and the Company, except for differences attributable to differences in the types of
Securities that are the subject of the applicable Securities Purchase Agreement and changes to the Company that are reflected in each applicable Securities Purchase Agreement. Each of the Company and Purchaser shall have the right to cease
negotiations with, and shall have no further obligations to, the other regarding the terms of such Securities, if the signing of a Securities Purchase Agreement for the purchase of such Securities by Purchaser has not occurred within ninety (90)
days after Purchaser’s receipt of such Issuance Request. 
  
 2.6 Sale and Purchase. If the Company and Purchaser reach agreement on the terms of Securities to be purchased in a Tranche (including a Securities Purchase Agreement), the Company agrees to, or to cause another applicable Issuer to,
issue, sell and deliver to Purchaser such Securities at the Closing for such Tranche, subject to the terms and conditions of such Securities Purchase Agreement. 
  

2.7 Use of Proceeds. The Company shall use all the proceeds received from the sale of Securities to Purchaser (net of all reasonable and
customary legal, accounting and other professional fees and expenses) for Permitted Acquisitions or otherwise in the ongoing business operations of the Company. 
  

2.8 No Obligation; no Exclusivity. It is expressly acknowledged, understood and agreed that the Company shall have no obligation to issue any
Securities to Endurance hereunder, and that this Agreement does not prohibit the Company or any of its Subsidiaries from issuing Securities or any other securities of the Company or its Subsidiaries to Persons other than Purchaser or other than
pursuant to this Agreement. 
  
 ARTICLE III 
  
 THE COMPANY’S REPRESENTATIONS AND WARRANTIES 
  
 The Company represents and warrants to Purchaser as follows:  
  
 3.1 Due Incorporation; Subsidiaries. 
  
 (a) The Company is a corporation duly organized under the laws of the State
of Alabama and is registered as a bank holding company under the regulations of the FRB. The Company is validly existing and in good standing under the laws of the State of Alabama, with all requisite power and authority to own, lease and operate
its properties and assets and to conduct its business as they are now being owned, leased, operated and conducted. 
  
 (b) The Company is licensed or qualified to do business and is in good standing as a foreign corporation in each jurisdiction where the nature of the
business or properties owned, leased or operated by it require such licensing or qualification and in which the failure to be so licensed or qualified, individually or in the aggregate, has not had and would not be reasonably expected to have a
Material Adverse Effect. 
  
 3.2 Due Authorization. The
Company has all requisite corporate power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. The execution, delivery and performance by the Company of this Agreement, and the consummation 

 

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 by the Company of the transactions contemplated hereby, have been duly and validly approved and authorized by all
necessary action on the part of the Company and no other actions or proceedings on the part of the Company are necessary to authorize this Agreement and the transactions contemplated hereby. The Company has duly and validly executed and delivered
this Agreement. Assuming due authorization, execution and delivery of this Agreement by Purchaser, this Agreement constitutes a legal, valid and binding obligation of the Company, enforceable in accordance with their respective terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency, moratorium, reorganization or similar laws in effect that affect the enforcement of creditors’ rights generally and by equitable limitations on the availability of specific
remedies and by principles of equity. 
  
 3.3 Consents and
Approvals; Authority Relative to this Agreement. 
  
 (a) No
consent, authorization, or approval of, notice to or filing or registration with any Governmental Authority having jurisdiction over any aspect of the business or assets of the Company or any Subsidiary, and no consent of any other Person, is
required in connection with the execution and delivery by the Company of this Agreement or the consummation by the Company of the transactions contemplated hereby. 
  
 (b) The execution, delivery and performance by the Company of this Agreement, and the consummation by the Company of the
transactions contemplated hereby, does not and will not (i) violate any material Law applicable to or binding on the Company, each of its Subsidiaries or any of their properties or assets, (ii) violate or conflict with, result in a breach or
termination of, constitute a breach or result in a default or give any third party any additional right (including a termination, cancellation or acceleration right, or any right to acquire any securities or assets) under, permit cancellation of,
result in the creation of any Lien upon any of the properties or assets of the Company and each of its Subsidiaries under, or result in or constitute a circumstance which, with or without notice or lapse of time or both, would constitute any of the
foregoing under, any Contract, note, bond, mortgage, indenture, franchise, license, permit, agreement, Lien or other instrument or obligation to which the Company or its Subsidiaries is a party or by which the Company or each of its Subsidiaries, or
any of their assets are bound, (iii) permit the acceleration of the maturity of any indebtedness of the Company or its Subsidiaries or indebtedness secured by their assets or (iv) violate or conflict with any provision of any of the Organization
Documents of the Company or its Subsidiaries. 
  
 ARTICLE IV

  
 PURCHASER’S REPRESENTATIONS AND WARRANTIES 
  
 Purchaser represents and warrants to the Company as follows: 
  
 4.1 Due Incorporation. 
  
 (a) Purchaser is a limited partnership duly organized under the laws of the
State of Delaware. Purchaser is validly existing and in good standing under the laws of the State of Delaware, with all requisite power and authority to own, lease and operate its properties and assets and to conduct its business as they are now
being owned, leased, operated and conducted. 
  

 -9- 

 (b) Purchaser is licensed or qualified to do business and is in good standing as a foreign limited
partnership in each jurisdiction where the nature of the business or properties owned, leased or operated by it require such licensing or qualification and in which the failure to be so licensed or qualified, individually or in the aggregate, has
not had and would not reasonably be expected to have a material adverse effect on Purchaser or its ability to perform its obligations under this Agreement. 
  
 4.2 Due Authorization. Purchaser has all requisite limited partnership power and authority to enter into this Agreement. The execution, delivery
and performance by Purchaser of this Agreement have been duly and validly approved and authorized by all necessary action on the part of Purchaser and no other actions or proceedings on the part of Purchaser are necessary to authorize this
Agreement. Purchaser has duly and validly executed and delivered this Agreement. Assuming due authorization, execution and delivery of this Agreement by the Company, this Agreement constitutes a legal, valid and binding obligation of Purchaser,
enforceable in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, moratorium, reorganization or similar laws in effect that affect the enforcement of creditors’ rights generally and by
equitable limitations on the availability of specific remedies and by principles of equity. 
  
 4.3 Consents and Approvals; Authority Relative to this Agreement. 
  
 (a) No consent, authorization, or approval of, notice to or filing or registration with any Governmental Authority having jurisdiction over any aspect of
the business or assets of Purchaser, and no consent of any other Person, is required in connection with the execution and delivery by Purchaser of this Agreement. Purchaser will file all notices required under the Change in Bank Control Act in
connection with any issuance of Securities hereunder. 
  
 (b) The
execution, delivery and performance by Purchaser of this Agreement does not (i) violate any material Law applicable to or binding on Purchaser or any of its properties or assets, (ii) violate or conflict with, result in a breach or termination of,
constitute a breach or result in a default or give any third party any additional right (including a termination, cancellation or acceleration right, or any right to acquire any securities or assets) under, permit cancellation of, result in the
creation of any Lien upon any of the properties or assets of Purchaser under, or result in or constitute a circumstance which, with or without notice or lapse of time or both, would constitute any of the foregoing under, any Contract, note, bond,
mortgage, indenture, franchise, license, permit, agreement, Lien or other instrument or obligation to which Purchaser is a party or by which Purchaser or any of its assets are bound, (iii) permit the acceleration of the maturity of any indebtedness
of Purchaser or indebtedness secured by its assets or (iv) violate or conflict with any provision of any of the Organization Documents of Purchaser. 
  
 ARTICLE V 
  
 COVENANTS 
  
 5.1 Listing of Common Stock. The Company shall take all action necessary to continue the listing and trading of its Common Stock on the Nasdaq Small Cap Market 
  

 -10- 

 
(including, without limitation, maintaining sufficient net tangible assets) and will comply in all respects with the Company’s reporting, filing and
other obligations under the bylaws or rules of the NASD, the Nasdaq Small Cap Market or any other trading market. 
  
 5.2 Exchange Act Registration. The Company shall cause its Common Stock to continue to be registered under Section 12(b) or 12(g) of the Exchange
Act, will comply in all respects with its reporting and filing obligations under the Exchange Act, and will not take any action or file any document (whether or not permitted by the Exchange Act or the rules thereunder) to terminate or suspend such
registration or to terminate or suspend its reporting and filing obligations under the Exchange Act. 
  
 5.3 Additional SEC Documents. The Company will deliver to Purchaser, copies of all SEC Documents so furnished or submitted to the SEC. 

 
 5.4 Notice. The Company shall promptly notify Purchaser (a) of any
communication concerning this Agreement from any Governmental Authority and permit the other party to review in advance any proposed communication concerning this Agreement to any Governmental Authority, (b) if the Company or any of its Subsidiaries
is in or determines that it is in breach or default of any representation, warranty or covenant under this Agreement or any of the Related Agreements or (c) if any facts, events or circumstances occur which cause or could cause the Company or any of
its Subsidiaries to be in breach or default of any representation, warranty, covenant or other agreement under this Agreement or any of the Related Agreements. 
  
 5.5 Inspection Rights. At any time after the delivery of an Issuance Request to the Purchaser and before the issuance
of Securities pursuant to such Issuance Request, Purchaser shall have the right to visit and inspect any of the properties of the Company or any of its Subsidiaries, and to discuss the affairs, finances and accounts of the Company or any of its
Subsidiaries with its and their officers, and to review such information as is reasonably requested all at such reasonable times and as often as may be reasonably requested. 
  
 5.6 Business Plan and Budget. Within five (5) days after the delivery of an Issuance Request to Purchaser, the
Company shall provide Purchaser with a copy of the business plan and budget of the Company and its Subsidiaries for the current fiscal year. 
  
 ARTICLE VI 
  
 CONDITIONS PRECEDENT 
  
 The obligation of Purchaser to purchase any Tranche of Securities are subject to the satisfaction or waiver of all of the following conditions: 
  
 6.1 Accuracy of Representations and Warranties. All representations and warranties of the Company contained in this
Agreement and in the Related Agreements shall have been accurate, true and correct on and as of the date of this Agreement and of such Related Agreements, respectively, and, except to the extent that any such representation or warranty is made
solely as of the date hereof or as of another date earlier than the then current date, shall also be accurate, true and correct in all material respect on and as of such then current date with the same force and effect as though made by the Company
on and as of such then current date. 
  

 -11- 

 6.2 Performance of Covenants. The Company shall have performed or complied with all obligations,
agreements and covenants under this Agreement or the Related Agreements to be performed or complied with by the Company on or before the then current date. 
  
 6.3 No Default. No Default shall have occurred and be continuing as of the then current date. 
  
 6.4 Pro Forma Compliance. In the reasonable judgment of Purchaser, the
issuance of the Securities in such Tranche and the consummation of the Permitted Acquisition or other corporate purpose(s) described in Section 2.7 for which such Tranche is being sold will not weaken the financial condition of the Company
and its Subsidiaries on a consolidated basis. 
  
 6.5 Approvals
and Consents. Purchaser shall have received written evidence satisfactory to it that all consents and approvals required under this Agreement and the Related Agreements for such Tranche have been obtained. 
  
 6.6 Actions or Proceedings. No action or proceeding by any
Governmental Authority or other Person shall have been instituted, and no Law shall have been enacted or come into effect, after the date hereof, which enjoins, restrains, prohibits or results in substantial damages to the Company or its
Subsidiaries in respect of, or has a reasonable possibility of enjoining, restraining, prohibiting or resulting in substantial damages to the Company or its Subsidiaries in respect of, any provision of this Agreement or any Related Agreement for
such Tranche or the consummation of the transactions contemplated hereby or thereby. 
  
 6.7 Adverse Changes. Since the date of the filing of the Company’s most recent SEC Documents as of the date hereof, no event has occurred which has had or is reasonable likely to have a Material Adverse
Effect. 
  
 6.8 Bank Holding Company. Purchaser shall have
determined that consummation of the transactions contemplated in this Agreement and the Related Agreements for such Tranche and the contemplated relationship described in this Agreement shall not cause any of Purchaser, its Affiliates or their
respective investors to become or be considered to be a “bank holding company” under the BHCA. 
  
 6.9 Officer’s Certificate. Purchaser shall have been furnished with a certificate executed on behalf of the Company by its President or Chief
Financial Officer, dated the Closing Date for such Tranche, certifying that the conditions set forth in Sections 6.1, 6.2 and 6.7 have been fulfilled at or prior to such Closing Date. 
  
 ARTICLE VII 
  
 CLOSING 
  
 7.1 Closing. Subject to Article VI, each Closing of a Tranche shall take place at such date, time and place as the Company and Purchaser may
mutually agree upon in writing. 
  

 -12- 

 7.2 Deliveries by the Company. At such Closing of a Tranche, in addition to any other documents or
agreements required under this Agreement or under an applicable Securities Purchase Agreement, the Company and each Issuer of Securities in such Tranche shall deliver to Purchaser the following: 
  
 (a) evidence reasonably satisfactory to Purchaser that the
Permitted Acquisition or other corporate purpose(s) described in Section 2.7 for which the proceeds of such Tranche are being used will be consummated upon receipt of the aggregate purchase price for such securities; 
  
 (b) certificates evidencing all of the Securities issued by
such Issuer in such Tranche, in such reasonable denominations and registered in such names as such Purchasers may have designated; 
  
 (c) a certificate of each of the Secretary of the Company and such Issuer certifying resolutions of the board of directors of the Company
or such Issuer approving and authorizing the execution, delivery and performance by the Company or such Issuer of the Securities Purchase Agreements and other Related Agreements for such Tranche to which it is party and the consummation by the
Company or such Issuer of the transactions contemplated hereby and thereby together with an incumbency and signature certificate regarding the officer(s) signing on behalf of the Company or such Issuer); 
  
 (d) the articles of incorporation or similar document of
each of the Company and such Issuer, certified by the Secretary of State of its state of organization, and the bylaws or similar document of each of the Company and such Issuer, certified by its Secretary; 
  
 (e) a certificate of good standing for the Company from the
State of Alabama, for each Subsidiary from the state of its organization and for the Company and each Subsidiary in each jurisdiction where the Company or such Subsidiary is authorized to conduct business; 
  
 (f) Investor Rights Agreements between the Company and
Purchaser, duly executed by the Company; 
  
 (g)
an opinion, dated the Closing Date, of counsel to the Company; and 
  
 (h) such other Related Agreement, documents or instruments as may be required by any other provision of this Agreement, the Securities Purchase Agreements for such Tranche or any other Related Agreement for such
Tranche or as may reasonably be required to consummate the transactions contemplated by this Agreement, such Securities Purchase Agreements and such other Related Agreements. 
  

 -13- 

 7.3 Deliveries by Purchaser. At such Closing of a Tranche, Purchaser shall deliver to the Company
the following: 
  
 (a) the purchase price that it
has agreed to pay to the Company for the Securities to be sold to Purchaser pursuant to the Securities Purchase Agreement for such Tranche; and 
  
 (b) such other Related Agreement, documents or instruments as may be required by any other provision of this Agreement, its Securities
Purchase Agreement for such Tranche or any other Related Agreement for such Tranche or as may reasonably be required to consummate the transactions contemplated by this Agreement, such Securities Purchase Agreement and such other Related Agreements.

  
 ARTICLE VIII 
  
 TERM AND TERMINATION 
  
 8.1 Term. Subject to Section 8.2, the term of this Agreement
(the “Term”) shall be for five (5) years from the date of this Agreement. 
  
 8.2 Termination. This Agreement may be terminated at any time: 
  
 (a) upon the mutual consent of the Company and Purchaser; 
  
 (b) by Purchaser, if an Event of Default shall have occurred and is continuing; 
  
 (c) by the Company, if there shall have been a material
breach of any representation, warranty, covenant or obligation of Purchaser hereunder, and in any case, such breach shall not have been remedied within thirty (30) days after receipt by Purchaser of a notice in writing from the Company specifying
the breach and requesting such breach be remedied; 
  
 (d) by Purchaser, if a Change of Control has occurred; or 
  
 (e) by Purchaser, if Purchaser ceases to own any Common Stock. 
  
 8.3 Termination Notice. In the event of termination by the Company or Purchaser pursuant to Section 8.2 (other than Section 8.2(a)), written notice thereof shall be given to the other party.

  
 8.4 Survival After Termination. In the event of
termination by the Company or Purchaser pursuant to Section 8.2, (a) this Agreement, except for Section 10.1, shall become null and void and (b) there shall be no further liability on the part of any party hereto. Nothing in this
Agreement shall relieve either party from liability for any breach or default of this Agreement for any breach or default that occurs prior to such termination. 
  

 -14- 

 ARTICLE IX 
  
 INDEMNIFICATION 
  
 9.1 Indemnification by the Company. The Company agrees to indemnify Purchaser against, and agrees to hold Purchaser harmless from, any and all
Losses incurred or suffered by Purchaser arising out of any of the following: 
  
 (a) any breach of or any inaccuracy in any representation or warranty made by the Company in this Agreement; or 
  
 (b) any breach of or failure by the Company to perform any covenant or obligation of the Company set out in this Agreement. 
  
 9.2 Indemnification by Purchaser. Purchaser agrees to indemnify the
Company against, and agrees to hold the Company harmless from, any and all Losses incurred or suffered by the Company arising out of any of the following: 
  
 (a) any breach of or any inaccuracy in any representation or warranty made by Purchaser in this Agreement; or 
  
 (b) any breach of or failure by Purchaser to perform any
covenant or obligation of Purchaser set out in this Agreement. 
  
 ARTICLE X 
  
 MISCELLANEOUS 
  
 10.1 Expenses. Each party hereto shall bear its own fees and expenses
with respect to the transactions contemplated hereby. 
  
 10.2
Amendment. This Agreement may be amended, modified or supplemented but only in a writing signed by the Company and Purchaser. 
  
 10.3 Notices. Any notice, request, instruction or other document to be given hereunder by a party hereto shall be in writing and shall be deemed to
have been given, (a) when received if given in person or by courier or a courier service or (b) on the date of transmission if sent by facsimile transmission (receipt confirmed) on a Business Day during or before the normal business hours of the
intended recipient, and if not so sent on such a day and at such a time, on the following Business Day: 
  
 If to Purchaser, addressed as follows: 
  
 Endurance Capital Investors, L.P. 
 c/o
Endurance Partners, LLC 
 405 Lexington Avenue, 26th Floor 
 New York, New York 10174 
 Attention: Edwin H. Yeo, III, Managing Member 
 Facsimile: (212) 368-8068 
  

 -15- 

 with a copy to: 
  

Mayer, Brown, Rowe & Maw LLP 
 190
South LaSalle Street 
 Chicago, Illinois 60603 
 Attention: Alan Van Dyke, Esq. and Matthew A. Posthuma, Esq. 
 Facsimile: (312) 701-7711 
  
 If to the Company, addressed as follows: 
  
 The Peoples BancTrust Company, Inc. 
 310 Broad Street 
 Selma, Alabama 36701

 Attention: Elam P. Holley, Jr., President and Chief Executive Officer 
 Facsimile: (334) 875-1010 
  
 with copies to: 
  
 Gamble, Gamble, Calame & Chittom, LLC 
 807 Selma Avenue, P.O. Box 345 
 Selma, Alabama 36701 
 Attention: Harry W. Gamble Jr., Esq. 
 Facsimile: (334) 874-4975 
  
 Bradley Arant Rose & White LLP 
 One Federal Place 
 1819 Fifth Avenue North

 Birmingham, Alabama 35203 
 Attention: Paul S. Ware, Esq. 
 Facsimile: (205) 488-6624 
  
 or to such other individual or address as a party hereto may designate for itself by notice given as herein provided. 
  
 10.4 Payments in Dollars. Except as otherwise provided herein or in a
Related Agreement, all payments pursuant hereto or a Related Agreement shall be made by wire transfer in Dollars in same day or immediately available funds without any set-off, deduction or counterclaim whatsoever. 
  
 10.5 Waivers. The failure of a party hereto at any time or times to
require performance of any provision hereof shall in no manner affect its right at a later time to enforce the same. No waiver by a party of any condition or of any breach of any term, covenant, representation or warranty contained in this Agreement
shall be effective unless in writing, and no waiver in any one or more instances shall be deemed to be a further or continuing waiver of any such condition or breach in other instances or a waiver of any other condition or breach of any other term,
covenant, representation or warranty. 
  

 -16- 

 10.6 Assignment. This Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and permitted assigns; provided, that no assignment of any rights or obligations hereunder, by operation of law or otherwise, shall be made by either party without the written consent of the other party, except
that Purchaser may assign any of its rights and obligations hereunder with respect to all or part of a particular Tranche to any other Person. 
  
 10.7 No Third Party Beneficiaries. This Agreement is solely for the benefit of the parties hereto and no provision of this Agreement shall be
deemed to confer upon other third parties any remedy, claim, liability, reimbursement, cause of action or other right. 
  
 10.8 Further Assurances. Upon the reasonable request of Purchaser, the Company shall execute and deliver to Purchaser such other instruments as may
be reasonably requested by Purchaser and are required to carry out the purposes of this Agreement. 
  
 10.9 Severability. If any provision of this Agreement shall be held invalid, illegal or unenforceable, the validity, legality or enforceability of
the other provisions hereof shall not be affected thereby, and there shall be deemed substituted for the provision at issue a valid, legal and enforceable provision as similar as possible to the provision at issue. 
  
 10.10 Relationship of Parties. Purchaser is an independent contractor.
Nothing contained herein shall be deemed or construed by the Company, Purchaser or any other party as creating a relationship of principal-agent, employer-employee, partnership or joint venture between the Company and Purchaser. 
  
 10.11 Conflict with Securities Purchase Agreements. In the event of a
conflict between this Agreement and a Securities Purchase Agreement with respect to a particular Tranche, such Securities Purchase Agreement shall control with respect to such Tranche. 
  
 10.12 Entire Understanding. This Agreement sets forth the entire agreement and understanding of the parties hereto
with respect to the transactions contemplated hereby and supersedes any and all prior agreements, arrangements and understandings among the parties relating to the subject matter hereof. 
  
 10.13 Applicable Law. This Agreement shall be governed by and construed and enforced in accordance with the internal
laws of the State of New York without giving effect to the principles of conflicts of law thereof. 
  
 10.14 Arbitration. 
  
 (a) The parties shall make a good faith effort to resolve informally any dispute subject to clause (b) of this Section. A request for
arbitration under clause (b) may not be filed until thirty (30) days have elapsed from the initiation of such good faith effort. 
  

 -17- 

 (b) Any dispute, controversy, or claim arising out of, relating to, involving, or having
any connection with this Agreement, including any question regarding the validity, interpretation, scope, performance, or enforceability of this dispute resolution provision, shall be exclusively and finally settled by arbitration in accordance with
the Center for Public Resources (“CPR”) Dispute Resolution Rules for Non-Administered Arbitration in effect on the date of this Agreement, except where the specific terms of this Section 10.14 vary from such Rules. The
arbitration shall be conducted in Charlotte, North Carolina unless, by the due date of the respondent’s answering statement, the parties agree on another location. The arbitration shall be conducted by three arbitrators, appointed pursuant to
CPR Rules 5.1 and 5.2. 
  
 (c) The parties shall
be entitled to engage in reasonable discovery, including requests for production of relevant non-privileged documents. Depositions and interrogatories may be ordered by the arbitral panel upon a showing of need. The parties acknowledge that one of
the primary goals of arbitration is to avoid the costs that often accompany litigation and, consequently, any discovery permitted under this provision should be limited accordingly 
  
 (d) All decisions, rulings, and awards of the arbitral panel shall be made pursuant to majority vote of the
three arbitrators. The award shall be in accordance with the applicable law, shall be in writing, and shall state the reasons upon which it is based. The arbitrators shall have no power to modify or abridge the terms of this Agreement. The
arbitrators shall have no power to award, and the parties hereby waive any claim to, damages (including punitive or exemplary damages) in excess of compensatory damages. 
  
 (e) Costs incurred in the arbitration proceeding shall be borne in the manner determined by the arbitral
panel, except that each party shall bear the costs of its own attorneys’ and expert/consulting fees and expenses, regardless of the outcome of the arbitration. 
  
 (f) The award of the arbitrators shall be final. An appeal may be taken under the CPR Arbitration Appeal
Procedure from any final award of an arbitral panel in any arbitration arising out of or related to this Agreement that is conducted in accordance with the requirements of such Appeal Procedure. Unless otherwise agreed by the parties and the appeal
tribunal, the appeal shall be conducted at the place of the original arbitration. Upon conclusion of the appeal, or if no appeal is taken within the prescribed time period, judgment on the award may be entered by any state or federal court having
jurisdiction to do so. The parties hereby agree that such court shall be an appropriate forum for any such enforcement proceeding. 
  
 (g) Nothing in this Agreement shall prevent the parties, prior to the formation of the arbitral panel, from applying to a court of
competent jurisdiction for provisional or interim measures or injunctive relief as may be necessary to safeguard the property or rights that are the subject matter of the arbitration. 

  

 -18- 

 
Once the arbitral panel is in place, it shall have exclusive jurisdiction to hear applications for such relief, except that any interim measures or
injunctive relief ordered by the arbitral panel may be immediately and specifically enforced by a court of competent jurisdiction. 
  
 (h) Unless otherwise agreed by the parties or required by law, the parties and the arbitrators shall maintain the confidentiality of all
documents, communications, proceedings, and awards provided, produced, or exchanged pursuant to an arbitration conducted under this Section 10.14. 
  
 (i) The parties recognize that this Agreement involves and affects interstate commerce and that this Section 10.14 is enforceable
under the Federal Arbitration Act. 
  
 10.15 Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  
 10.16 Facsimile or Electronic Signatures. Any signature page delivered by a fax machine, telecopy machine or e-mail
shall be binding to the same extent as an originally signed signature page, with regard to any agreement subject to the terms hereof or any amendment thereto. Any party who delivers such signature page agrees to later deliver an original counterpart
to any party which requests it. 
  
 * * * 
  

 -19- 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered as of the
date first above written. 
  

			
	THE PEOPLES BANCTRUST COMPANY, INC.
		
	By:	 	 /s/ Elam P. Holley, Jr.

	Name:	 	Elam P. Holley, Jr.
	Title:	 	President and Chief Executive Officer
	
	ENDURANCE CAPITAL INVESTORS, L.P.
		
	By:	 	Endurance Partners, LLC
	 	 	As General Partner
		
	By:	 	 /s/ Edwin H. Yeo, III

	Name:	 	Edwin H. Yeo, III
	Title:	 	Managing Member

  

 -20- 

 Exhibit A 
  

Form of Issuance Request 
  
 The Peoples BancTrust Company, Inc. 
 310 Broad Street 
 Selma, Alabama 36701 
  
 [date] 
  
 Endurance Capital Investors, L.P. 
 c/o Endurance Partners, LLC 
 405 Lexington Avenue, 26th Floor 
 New York, New York 10174 
 Attention: Edwin H. Yeo, III, Managing Member 
  
 Re: Issuance Request 
  
 Dear Mr. Yeo: 
  
 Please refer to the Acquisition Facility Agreement dated as of April 6, 2005 (the “Acquisition Facility Agreement”) by and between The Peoples BancTrust Company, Inc. (the “Company”) and Endurance
Capital Investors, L.P. (“Purchaser”). Capitalized terms used herein but not otherwise defined herein shall have the meanings given to such terms in the Acquisition Facility Agreement. 
  
 A. Request for Issuance. The Company hereby delivers this Issuance
Request and requests that Purchaser purchase a Tranche of the following type(s) of Securities for a total purchase price of $             [$5 million or more]: 
  

	 	(1)	[type of Security] for a total purchase price of $             [$2 million or more, multiple of $ 1
million]; and 

  
 [list other types of
Securities to be included in Tranche, if any] 
  
 B. Total
Amount. After giving effect to the issuance of the Securities included in such Tranche, the aggregate purchase price of all Securities sold pursuant to the Acquisition Facility Agreement shall be
$             [not to exceed $20 million]. 
  
 C. Use of Proceeds. The Company shall use all the proceeds received from the sale of the Securities included in such Tranche to Purchaser (net of
all reasonable and customary legal, accounting and other professional fees and expenses for the following Permitted Accquisition or other corporate purpose(s) described in Section 2.7 of the Acquisition Facility Agreement: [describe
Permitted Acquisition or other corporate purpose(s) described in Section 2.7 of the Acquisition Facility Agreement]. 
  

 -21- 

 D. Conditions Precedent. The Company hereby certifies, represents and warrants that as of the date
hereof: 
  
 1) the conditions precedent set forth
in Sections 6.1, 6.2, 6.3, 6.6 and 6.7 of the Acquisition Facility Agreement have been satisfied; and 
  
 2) the issuance of the Securities in such Tranche and the consummation of such Permitted Acquisition or other corporate purpose(s)
described in Section 2.7 of the Acquisition Facility Agreement will not weaken the financial condition of the Company and its Subsidiaries on a consolidated basis. 
  
 The Company has caused this Issuance Request to be executed and delivered, and the certifications, representations and
warranties contained herein to be made, by its [principal executive, financial or accounting officer] on the date first set forth above. 
  

			
	Very truly yours,
	
	THE PEOPLES BANCTRUST COMPANY, INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	[principal executive, financial or
	 	 	accounting officer of the Company]

  

 -22-Employment Agreement between Rainmaker Systems, Inc. and John Houtsma

 Exhibit 10.1 
  
 EXECUTIVE EMPLOYMENT AGREEMENT 
  

					
	DATE:	  	April 1, 2005 (the “Effective Date”)
		
	PARTIES:	  	Rainmaker Systems
	 	  	1800 Green Hills Road
	 	  	Scotts Valley, CA 95066
	 	  	Attention:
                                    
	 	  	Telephone:	  	831 430-3800
	 	  	Facsimile:	  	831 439-9192
	 	  	(the “Company”)
		
	 	  	and
		
	 	  	John Houtsma
	 	  	PO Box 1831
	 	  	Edwards, Colorado 81632
	 	  	Telephone:	  	_____________
	 	  	Facsimile:	  	_____________
	 	  	(“Executive”)

  
 RECITALS: 
  
 A. The Company desires to continue to employ Executive in the role set forth
herein below and Executive desires to remain employed by the Company. 
  
 AGREEMENT: 
  
 In consideration of the foregoing
recitals (which are incorporated herein), and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows: 
  
 1. Employment; Duties. The Company shall employ Executive as Vice President of Sales, and Executive accepts
such employment under the terms and conditions set forth in this Agreement. Executive’s duties shall be consistent with those of a Vice President of Sales for a Service Sales organization, as defined from time to time by the Chief Executive
Officer of Rainmaker. 

 2. Full-Time Best Efforts. 
  
 (a) Time and Effort. Executive shall devote Executive’s
full professional time and attention to the performance of Executive’s obligations under this Agreement, and shall at all times faithfully, industriously, and to the best of Executive’s ability, experience, and talent perform all of
Executive’s obligations hereunder. So long as this Agreement is in effect, Executive shall not be employed or engaged by any other person or firm other than the Company unless otherwise authorized in writing by the Chief Executive Officer of
Company. Notwithstanding the foregoing, Executive, upon receiving written permission from the Company’s CEO of Company, shall be permitted to serve on the boards of non-competitive companies provided that these endeavors do not impede
Executive’s job performance, and Executive shall be entitled to retain all compensation paid to him in connection with such endeavors. 
  
 (b) Performance Standards; Underperformance. Within 180 days after the Effective Date, the Board of Directors shall establish performance
expectations and standards, which shall (i) be reasonably acceptable to Executive, (ii) may change from time to time as the needs of the Company change, and (iii) shall serve as a basis to evaluate Executive’s performance from time to time.
Within six months following the Effective Date, and at least annually thereafter, the CEO of Company and Executive shall meet in order for the CEO of the Company to provide a formal evaluation of Executive’s performance.
“Underperformance” shall mean Executive’s failure to meet some or all of the then-current performance expectations and standards, and can be the basis for a change in job description, salary, and benefits, or termination of
Executive’s employment under this Agreement if such Underperformance is not cured within 60 days’ following notice of the elements of such Underperformance has been given to Executive by the Company. 
  
 3. Term. The term of this Agreement shall begin
on the Effective Date and shall end on the second anniversary of the Effective Date (the “Initial Term”) unless terminated prior to that date as provided herein. Unless 60 days’ advance written notice is given by one party to the
other regarding termination of Executive’s employment hereunder, at the expiration of the Initial Term, and any renewal term, the term of this Agreement shall automatically extend for an additional one year. 
  
 4. Compensation and Benefits. The Company shall
pay compensation to Executive consisting of an annual base salary, any applicable bonuses and other benefits as described in this Agreement. In addition to the financial compensation and benefits set forth below, Executive shall be reimbursed for
any approved business-related expenses and shall receive vacation, sick leave, and other time off as is customary and usual for executives of Executive’s status in the Company. 
  
 (a) Base Salary; Unpaid Wages. Executive’s annual base salary as of the Effective Date is $125,000.
Executive’s base salary shall be reviewed annually in conjunction with Executive’s annual performance review and may be adjusted as appropriate in light of Executive’s performance. Executive’s annual base salary shall be paid in
accordance with the standard payroll practices of the Company. 
  

 2 

 (b) Benefits. Executive shall be entitled to participate in such life insurance,
disability, medical, dental, pension, profit sharing, stock options, stock grants, and retirement plans and other programs as may be made generally available from time to time by the Company for the benefit of executives of Executive’s level or
its employees generally (the “Benefits”). 
  
 (c)
Bonuses/Commissions. The Company may establish a bonus plan for Executive in the future. 
  
 (d) Expense Reimbursement. The Company shall reimburse Executive for all reasonable and necessary out-of-pocket expenses properly incurred
in the performance of this Agreement, but only to the extent that Executive submits to the Company an itemized account of such expenses. Reimbursement for such expenses shall occur promptly after their approval and receipt by the Company of such
documentary evidence of such expenses as the Company may reasonably require. 
  
 5. Stock Option Grant. Executive has received options to purchase 125,000 shares of Rainmaker’s common stock (the “Options”) pursuant to Rainmaker’s 2003 Stock Incentive Plan. The
Options shall vest in accordance with Rainmaker’s standard vesting schedule. 
  
 6. Documents and Materials. Except in the performance of Executive’s duties in the ordinary course of business for which Executive is employed by the Company, Executive shall not make
or cause to be made any copies, or other reproductions or recordings or any abstracts or summaries of any reports, studies, memoranda, correspondence, manuals, records, plans or other written, printed, computerized or otherwise recorded materials of
any kind belonging to or in the possession of the Company or any of its Affiliates (defined below). Immediately upon the termination of Executive’s employment with the Company or at any time upon the request of the Company, Executive shall
surrender all such material to the Company and execute a document acknowledging that Executive has complied with the provisions of this Agreement. 
  
 7. Trade Secrets and Other Confidential Information. Executive shall not at any time, whether during or after the term of this
Agreement, use for Executive’s own benefit or purposes or for the benefit or purposes of any other person or entity, or disclose (except in the performance of Executive’s duties in the ordinary course of business for which Executive is
employed by the Company) in any manner to any person or entity, any trade secrets, information, data, know how or knowledge (including that relating to service techniques, purchasing and sales organization and methods, client lists, market
development and expansion plans, personnel training and development programs and client and supplier relationships) or any other Discoveries (defined below) belonging to or relating to the affairs of the Company or any of its Affiliates or to the
clients of the Company or any of its Affiliates; provided, however, that this Section shall not apply to any trade secret, information, data, know how, knowledge, or Discovery that is or becomes generally available to the public through no fault or
action of Executive. 
  

 3 

 8. Customers and Vendors. Executive acknowledges that the lists of the
Company’s and its Affiliates’ customers and vendors as they may exist from time to time constitute a valuable and unique asset of the Company, and Executive shall not, during or after the term of Executive’s employment, disclose such
lists or any part thereof to any person or entity for any reason whatsoever, nor shall Executive use such customer or vendor lists for Executive’s own benefit or purposes or for the benefit or purposes of any business with whom Executive may
become associated. 
  
 9. Discoveries.
Any and all inventions, discoveries, improvements, designs, methods, systems, developments, know how, ideas, suggestions, devices, trade secrets and processes (collectively, “Discoveries”), whether patentable or not, which are discovered,
disclosed to or otherwise obtained by Executive during Executive’s employment with the Company are confidential, proprietary information and are the sole and absolute property of the Company. Executive shall disclose promptly to the Company all
Discoveries and shall assist the Company in making any application in the United States and in foreign jurisdictions for patents of any kind with respect thereto. 
  
 10. Works for Hire. All works and writings of a professional nature that are produced by
Executive during Executive’s employment with the Company that relate to the Company’s business or that are produced during regular working hours with the Company or with the use of the Company’s resources constitute works made for
hire and are the sole and absolute property of the Company. Executive grants the Company the exclusive right to copyright all such works made for hire in the United States and in foreign jurisdictions. Whenever requested to do so by the Company,
Executive shall execute any and all applications, assignments, or other instruments that the Company may deem necessary to protect the Company’s interest therein for the works made for hire. 
  
 11. Non-Competition. 
  
 (a) Corporate Relationship. Executive acknowledges (i) that
Executive’s employment as a member of the Company’s executive management team creates a relationship of confidence and trust between Executive and the Company with respect to confidential and proprietary information applicable to the
business of the Company, its Affiliates and its clients, and (ii) the highly competitive nature of the business of the Company. Accordingly, the Company and Executive agree that the restrictions contained in this Section are reasonable and necessary
for the protection of the immediate interests of the Company and that any violation of these restrictions would cause substantial injury to the Company. 
  
 (b) Competitive Business Defined. The term “Competitive Business” means any business which is similar to or competitive with the
business of the Company with respect to which Executive has had direct responsibility and which is located in the same regions or markets as the business of the Company. 
  
 (c) Existing Client Defined. The term “Existing Client” means a client for whom the Company or any
of its Affiliates is performing services or marketing 

  

 4 

 
products as of the date of the termination of Executive’s employment with the Company or for whom the Company or any of its Affiliates performed
services or marketed products within the two-year period immediately preceding the termination of Executive’s employment with the Company. 
  
 (d) Noncompetition. During Executive’s employment with the Company and for the defined duration set forth below following the
termination of Executive’s employment with the Company, Executive shall not: 
  
 i. own, manage, operate, control, have any financial interest in, or lend Executive’s name to any person or entity engaged in, a
Competitive Business or cause others to or assist others in engaging in any Competitive Business in the foregoing manner; 
  
 ii. employ or otherwise engage, or attempt to employ or otherwise engage, in or on behalf of Executive or any Competitive Business, any
person who is employed or engaged as an employee, consultant, agent or representative of the Company or any of its Affiliates as of the date of Executive’s termination or at any time during the one-year period following such termination; or

  
 iii. solicit directly or indirectly on behalf
of Executive or any Competitive Business, the customer business or account of any Existing Client. 
  
 If termination is by the Company without Cause the foregoing covenant shall remain in effect for four months unless there has been a Change of Control (defined below) and Executive’s employment is terminated
without Cause during the 120 day period following the Change of Control, or otherwise ends, the foregoing covenant shall remain in effect for six months. 
  
 (e) Non-Competition Exception. Following the termination of Executive’s employment, Executive’s obligation to not compete with the
Company as set forth above is solely dependent upon the Company’s paying to Executive all amounts due and payable to Executive under this Agreement (the “Payments Due”) within ten business days following the due dates therefore. The
failure to make the Payments Due payments within such cure period shall serve as a waiver of Executive’s obligations under the covenant not to compete; provided, however, that such waiver shall not waive the Company’s obligation to make
the Payments Due, and provided further that if the Payments Due are resumed within 30 days after the expiration of the cure period provided for herein, Executive’s obligation not to compete as provided herein shall resume until the expiration
of the applicable period; and provided further, that if Executive has commenced employment in a Competitive Business prior to the Company making the Payments Due, Executive shall not be obligated to resign such employment. 
  

 5 

 (f) Specific Enforcement. Subject to Section 11 (e), the foregoing covenants shall be
specifically enforceable; provided, however, that the covenants shall not be construed to prohibit ownership of not more than 5% of the equity of any publicly held entity engaged in direct competition with the Company, so long as the Executive is
not otherwise engaged with such entity in any of the other activities specified in the foregoing clauses. 
  
 (g) Severability. If any court shall determine that the duration, geographic limitations, subject or scope of any restriction contained in
this Section is unenforceable, it is the intention of the parties that this Section 11 shall not thereby be terminated but shall be deemed amended to the extent required to make it valid and enforceable, such amendment to apply only with respect to
the operation of this Section in the jurisdiction of the court that has made the adjudication. 
  
 (h) Employability. Executive acknowledges (i) that Executive has sufficient abilities and talents to be able to obtain, upon the termination of Executive’s employment, comparable
employment from another business while fully honoring and complying with the above covenants concerning confidential information and contacts with the Company’s or any of its Affiliates’ customers or employees, and (ii) the importance to
the Company and its Affiliates of the above covenants. Accordingly, for the duration of the applicable period of Executive’s covenant not to compete as set forth above and upon the Company’s reasonable request of Executive, Executive shall
advise the Company of the identity of Executive’s new employer and shall provide a general description, in reasonable detail, of Executive’s new duties and responsibilities sufficient to inform the Company of its need to request a court
order to enforce the above covenants. 
  
 (i)
Remedies. The parties acknowledge that the damages sustained by the Company or its Affiliates as a result of a breach of the agreements contained herein will subject the Company or its Affiliates to immediate, irreparable
harm and damage, the amount of which, although substantial, cannot be reasonably ascertained, and that recovery of damages at law will not be an adequate remedy. Therefore, the Company and its Affiliates, in addition to any other remedies they may
have under this Agreement or at law, shall be entitled to injunctive and other equitable relief to prevent or curtail any breach of any provision of this Agreement subject to Section 11(e). If an action is instituted to enforce this Agreement or any
of the terms and conditions hereof, including suit for preliminary injunction, the prevailing party shall be entitled to costs and reasonable attorneys’ fees. The Company acknowledges that (A) the Company shall not be entitled to an injunction
or the right to enforce the covenant not to compete or seek damages as a result of Executive’s competitive activities if the Company has not made the Payments Due as provided in Section 11(e), and (B) the requirement to pay Executive the
Payments Due is part, but not the sole, consideration being accepted by Executive’s agreement to the covenant not to compete contained herein. 
  
 12. Disability. The Company may terminate this Agreement upon notice to Executive if Executive is physically or mentally
incapacitated and unable to perform Executive’s duties under this Agreement for a period of 90 out of any 180 days. If a 

  

 6 

 
question arises as to the incapacity of Executive, then the Company shall promptly employ one physician who is a member of the American Medical Association
and who is reasonably acceptable to Executive to examine Executive and determine if Executive’s physical or mental condition is such as to render Executive unable to perform Executive’s duties under this Agreement. The decision of the
physician shall be certified in writing to the Company, shall be sent by the Company to Executive or Executive’s representative and shall be conclusive for purposes of this Agreement. Any compensation payments payable to Executive hereunder
shall be reduced by the amount of any disability payments Executive receives as a result of disability policies on which the Company has paid the premiums. 
  
 13. Death During Employment. This Agreement shall terminate upon Executive’s death, and the Company shall pay a death
benefit equal to Executive’s base monthly salary for the balance of the month of Executive’s death and for three months following Executive’s death. Such amounts shall be paid to the beneficiary named in writing by Executive, or if
none, to Executive’s surviving spouse, or if none, to the executors and administrators of Executive’s estate and shall be paid within 60 days after Executive’s death. 
  
 14. Termination for Other Than for Disability or Death. 
  
 (a) By the Company. The Company may terminate Executive’s
employment under this Agreement prior to the expiration of the Initial Term or any renewal term as follows: 
  
 i. without Cause, upon 30 days’ prior notice to Executive; or 
  
 ii. immediately upon the showing of Cause. For purposes of this Agreement, “Cause” shall mean, but
not be limited to (1) gross misconduct, gross negligence, or gross omissions by Executive, which is not cured to the Company’s satisfaction within 30 days after notice of such gross misconduct, gross negligence or gross omissions is given to
Executive; (2) an act or acts of dishonesty by Executive involving the Company; (3) conduct of Executive which is materially injurious to the Company, monetarily or otherwise; (4) a material breach of Sections 7 through 11 of this Agreement; (5) any
other material breach by Executive of this Agreement which breach has not been cured by Executive within 30 days after notice of such breach is given to such Executive by the Company; (6) Underperformance by Executive if such Underperformance is not
cured as provided in Section 2(b), or (7) Executive is convicted of, or enters a plea of nolo contendere with respect to, any offense that, if committed in the State of Texas, would have constituted a felony under the laws of the State of
Texas or the United States. 
  
 (b) By Executive.
Executive may terminate Executive’s employment under this Agreement upon 30 days’ notice to the Company. An Executive’s termination shall be deemed for “Good Reason” if such termination is due to: (i) a change materially
adverse to Executive in the nature of scope of Executive’s position, 
  

 7 

 
status, responsibilities or duties with the Company as they existed as of the Effective Date (other than for uncured Underperformance), (ii) a material
reduction by the Company in Executive’s base salary as in effect on the Effective Date or as the same may be increased from time to time, other than pursuant to an across the board reduction of an equal or greater percentage affecting all of
the Company’s executive officers or due to uncured Underperformance; (iii) a change, exceeding a thirty-mile radius, in Executive’s principal work location established on the Effective Date, except for required travel on the Company’s
business to an extent substantially consistent with business travel obligations of the other officers of the Company; (iv) failure of the Company to pay Executive amounts required to be paid under this Agreement if not cured within ten business days
after notice of such failure is given to the Company by Executive; or (v) a material breach by the Company of any other material provision of this Agreement that has not been cured by the Company within 30 days after notice of such breach is given
to the Company by Executive. 
  
 (c) Termination
Obligations. Upon termination of Executive’s employment with the Company, the Company shall have no further obligation to Executive except as provided under this Agreement; provided, however, that termination of Executive’s
employment shall not affect Executive’s right to receive any compensation or applicable bonuses that have accrued but have not been paid through the date of termination. Executive shall return to the Company any and all equipment including
electronic equipment, keys, credit cards, and the like, owned by the Company and used by Executive. 
  
 (d) Severance. Upon the termination of Executive’s employment with the Company under this Section prior to the expiration of the
Initial Term, the Company shall pay to Executive a severance benefit equal to that portion of Executive’s then current base salary as follows: (i) if termination is by the Company without Cause the severance shall be four months salary unless
there has been a Change of Control (defined below) and Executive’s employment is terminated without Cause during the 120 day period following the Change of Control, in which case the severance shall be six months salary; (ii) if termination is
by the Company for uncured Underperformance (even though such termination is for cause), the severance shall be one month salary; (iii) if the termination is by the company for Cause (other than uncured Underperformance) Executive shall receive no
severance benefit of any kind; (iv) if the termination is by Executive for Good Reason, the severance shall be four months salary; and (v) if the termination is by Executive without Good Reason, Executive shall receive no severance benefit of any
kind. In addition, in the event any severance payment is owing pursuant to the foregoing, as partial consideration for payment of such severance amounts, Executive shall execute at the time of such termination and as a condition of receipt of the
severance amounts, the Company’s standard Release Agreement. Executive shall not be entitled to receive any Benefits except that if the termination is by the Company without Cause within 120 days following a Change of Control, the Company shall
pay Executive’s COBRA payment while Executive is receiving severance payments. Payments due to Executive under this Section shall be paid in cash or by check on the same dates on which Executive would otherwise have 

  

 8 

 
received payments of Executive’s annual base salary hereunder if employment had continued; provided, however, that if termination of employment is by
the Company without Cause and the Company is not able to make such payments in light of material financial hardships, such payments shall be made when the Company is financially able to make them. 
  
 (e) Payments upon Termination. Regardless of the reason for the
termination of Executive’s employment, the Company shall pay to Executive all salary and expenses due to Executive through the effective date of termination less any amounts owed to the Company by Executive; provided that any applicable
severance payments shall be paid in accordance with the standard payroll practices of the Company over the period utilized to determine the applicable severance payment. 
  
 (f) Withholding Tax. The Company shall be entitled to withhold from any compensatory payments that it makes to
Executive under this Agreement or otherwise an amount sufficient to satisfy all Federal, state and local income and employment tax withholding and all other applicable withholding requirements with respect to any and all compensation paid to
Executive by the Company. 
  
 (g) Change of Control
Defined. For purposes of this Agreement, “Change of Control” means: 
  
 i. When any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended)
becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then
outstanding voting securities; or 
  
 ii. Any
merger, consolidation or transfer of securities of the Company with or into another corporation, other than a merger, consolidation or transfer of securities in which the holders of more than 50% of the shares of capital stock of the Company
outstanding immediately prior to such transaction continue to hold (either by the voting securities remaining outstanding or by their being converted into voting securities of the surviving entity) more than 50% of the total voting power represented
by the voting securities of the Company, or such surviving entity, outstanding immediately after such transaction; or 
  
 iii. The sale, transfer, or disposal by other means of all or substantially all of the Company’s assets (or consummation of any
transaction having similar effect). 
  
 15. Rights of
Indemnity. Executive shall be entitled to the same rights of indemnification as provided to all other executives, officers and directors of the Company pursuant to applicable law and the Company’s governing documents. 
  

 9 

 16. Arbitration. Except for (i) any claim for unemployment compensation or workers’
compensation, and (ii) any relief sought for breach by Executive of Sections 6-11 of this Agreement, in which case a claim may be, but is not required to be, brought before any court in the State of Texas having jurisdiction over the matter, any
controversy or claim arising out of or related to this Agreement (as applicable, a “Dispute”) shall be resolved by binding arbitration in accordance with the then-effective rules of the American Arbitration Association (“AAA”)
and limited discovery shall be permitted. Arbitration shall be held at the location chosen by the party that has not initiated the arbitration, which location shall be limited to Texas or any other state in which the Company has an office or
employees (as applicable, the “Arbitration Location”). Upon notification by a party of such party’s intention to arbitrate a Dispute (the “Notice Date”), each party shall select one arbitrator, and the two arbitrators so
chosen shall select one arbitrator. Each of the arbitrators chosen shall be impartial and independent of the parties. If a party fails to select an arbitrator within twenty days after delivery of the Notice Date, or if the arbitrators chosen fail to
select a third arbitrator within twenty days after being chosen, then any party may in writing request the judge of the United States District Court closest to the Arbitration Location senior in term of service to appoint the arbitrator or
arbitrators. The arbitration shall be conducted in accordance with the National Rules for the Resolution of Employment Disputes of the AAA to the extent such rules do not conflict with the terms hereof; however there is no requirement that the
arbitration proceed through or under the auspices of the AAA. The decision of a majority of the arbitrators shall be reduced to writing and shall be binding on the parties. Judgment upon the award rendered by a majority of the arbitrators may be
entered and execution had in any court of competent jurisdiction or application may be made to such court for a judicial acceptance of the award and an order of enforcement. The charges and expenses of the arbitrators shall be allocated as
determined by the arbitrators. 
  
 17.
Survival. The covenants contained in this Agreement shall survive any termination of Executive’s employment with the Company and any termination of this Agreement. The existence of any claim or cause of action of
Executive against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of any of the covenants contained in this Agreement except as prescribed in Section 11 (e).

  
 18. Severability. If the scope of
any restriction contained in this Agreement is too broad to permit enforcement of such restriction to its fullest extent, then such restriction shall be enforced to the maximum extent permitted by law, and Executive and the Company hereby consent
and agree that the scope of such restriction may be judicially modified in any proceeding brought to enforce such restriction. To the extent any provision of this Agreement shall be invalid or unenforceable, it shall be considered deleted from this
Agreement and the remainder of this Agreement shall remain in full force and effect. 
  
 19. Notice. Any notices required or permitted to be given under this Agreement shall be sufficient if in writing and delivered by personal delivery, air courier, or 

  

 10 

 
if mailed by registered or certified first-class mail, return receipt requested, to the residence of Executive as it appears in the corporate records for
notice to Executive, or to the principal office of the Company for notice to the Company. All notices delivered in accordance with this Section shall be deemed to have been received and shall be deemed effective if delivered in person or by air
courier, upon actual receipt by the intended recipient, or if mailed, upon the date of delivery or refusal to accept delivery as shown by the return receipt therefor. 
  
 20. Affiliate; Construction and Interpretation. An “Affiliate” means any person or entity that
directly or indirectly controls, is controlled by, or is under common control with another. Control shall mean beneficial ownership of 50.01% or more of the outstanding voting securities or other ownership interests. Unless the context of this
Agreement otherwise requires, (a) words of any gender include each other gender; (b) words using the singular or plural number also include the plural or singular number, respectively; (c) the terms “include,” “includes,”
“including” and derivative or similar words shall be construed to be followed by the phrase “without limitation”; (d) the word “or” is not exclusive; and (e) reference to any document (including this Agreement) and to
any law, rule, or regulation means such document, law, rule or regulation as amended from time to time. 
  
 21. No Waiver. No term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel to
enforce any provision of this Agreement, except by a statement in writing signed by the party against whom enforcement of the waiver or estoppel is sought. Any written waiver shall not be deemed a continuing waiver unless specifically stated, and
shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived. 
  
 22. Amendments. No amendment or modification of
this Agreement shall be deemed effective unless made in writing and signed by the parties hereto. 
  
 23. Assignment. The rights and obligations of the Company under this Agreement shall, without the prior written consent of
Executive, inure to the benefit of and be binding upon the successors and assigns of the Company. This is a personal service contract and may not be assigned by Executive except that rights of Executive to receive severance or benefits under
Sections 12, 13, or 14 shall be assignable through a testamentary disposition or by the laws of descent and distribution or the laws of guardianship, in the case of death or disability. 
  
 24. Governing Law. This Agreement is made under and shall be governed by and construed in
accordance with the internal laws of the State of Texas. By execution of this Agreement, each party submits to in personam jurisdiction of the courts of the State of Texas. 
  
 25. Headings. The headings of sections in this Agreement are solely for convenience of reference
and shall not control the meaning or interpretation of any provision of this Agreement. 
  

 11 

 26. Counterparts and Facsimile Signatures. This Agreement may be executed in
any number of counterparts, each of which shall be deemed an original and all of which, taken together, shall constitute one agreement. Any counterpart may be delivered by any party by transmission of signature pages to the other parties at the
addresses set forth herein, and delivery shall be effective and complete upon completion of such transmission; manually signed copies of signature pages shall nonetheless be delivered promptly after any such facsimile delivery. 
  
 [The remainder of this page is intentionally blank.] 
  

 12 

 27. Entire Agreement. This instrument contains the entire agreement of the
parties relating to the subject matter hereof and supersedes all prior and simultaneous agreements, communications, and understandings with respect to such subject matter, whether oral or written. 
  
 This Agreement is executed and delivered on the day and year first above
written. 
  

			
	Company:
	Rainmaker Systems
	
	 /s/    MICHAEL SILTON

	 By:
	 	 Michael Silton

	 Its:
	 	 CEO

	
	Executive:
	John Houtsma
	
	 /s/    JOHN HOUTSMA

  

 13

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