Document:

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Exhibit 10.1

AMENDMENT NO. 2 TO CREDIT AGREEMENT

THIS AMENDMENT NO. 2 TO CREDIT AGREEMENT (this "Amendment"),
entered into as of August 6, 2013, is entered into by and between ServiceSource International, Inc., a Delaware corporation (the
"Borrower"), and JPMorgan Chase Bank, N.A., as Lender (the "Lender").

W I T N E S S E T
H:

WHEREAS, the Borrower and Lender are parties to that certain Credit Agreement dated as of July 5, 2012,
as modified pursuant to that certain Letter Agreement dated as of June 18, 2013 by and between the Borrower and the Lender and as
amended pursuant to that certain Amendment No. 1 to Credit Agreement dated as of June 30, 2013 by and between the Borrower and
the Lender (as modified and amended, the "Credit Agreement"), pursuant to which Lender has agreed to make
certain loans and to extend credit to the Borrower upon the terms and subject to the conditions set forth therein; and

WHEREAS, the parties to the Credit Agreement desire to amend the Credit Agreement to permit the
Borrower to enter into certain unsecured, convertible notes and related documents upon the terms and subject to the conditions set
forth below. 

NOW, THEREFORE, in consideration of the terms and conditions contained herein, the parties hereto
hereby agree as follows: 

	Definitions.  All capitalized terms used and not otherwise defined herein shall have the meanings
given to such terms by the Credit Agreement.

	Amendments to the Credit Agreement.  Effective as of the Amendment No. 2 Effective Date (as
defined below), the Credit Agreement shall be amended as follows:

	All references to the Credit Agreement in the Credit Agreement and in any of the Loan Documents shall
refer to the Credit Agreement as amended hereby.

	The following definitions shall be added to Section 1.01 of the Credit Agreement in the appropriate
alphabetical order:

"Amendment No. 2" means that certain Amendment No. 2 to Credit Agreement dated August 6,
2013 by and between the Borrower and Lender.

"Amendment No. 2 Effective Date" shall have the meaning set forth in Section 3 of Amendment No.
2.

"Convertible Debt Security" means any debt security issued by Borrower the terms of which provide
for the conversion thereof into capital stock of Borrower, cash or a combination thereof. 

"Indenture" means any indenture between Borrower and a trustee governing any Convertible Debt
Security issued by Borrower. 

"Permitted Bond Hedge" means any Derivative Contract that is settled (after payment of any
premium or any prepayment thereunder) through the delivery of cash and/or equity interests of Borrower and is entered into in
connection with any Convertible Debt Securities, the purpose of which is to provide for an effectively higher conversion premium
(including, but not limited to, any bond hedge transaction, warrant transaction or capped call transaction).

	The definition of "Banking Services Obligations" in Section 1.01 of the Credit Agreement is
amended to add the following sentence at the end of such definition:

Notwithstanding the forgoing, in no event shall any obligations in respect of any Permitted Bond Hedge
constitute Banking Services Obligations.

	The definition of "Consolidated Funded Debt" in Section 1.01 of the Credit Agreement is
amended and replaced in its entirety as follows:

"Consolidated Funded Debt" means at any time the aggregate dollar amount of Indebtedness of
the type described in clause (f) of the definition of "Indebtedness" of Borrower and its Subsidiaries on a consolidated basis
which has actually been funded and is outstanding at such time, whether or not such amount is due or payable at such time, excluding
accounts arising from the purchase of goods and services in the ordinary course of business and issued letters of credit.

	 The definition of "Permitted Liens" in Section 1.01 of the Credit Agreement is amended to (i)
delete the word "and" appearing at the end of clause (15) thereof, (ii) replace the "." appearing at the end of
clause (16) thereof with "; and" and (iii) add a new clause (17) thereof to read as follows:

(17)customary Liens granted in favor of a trustee to secure fees and other amounts owing to such trustee
under an indenture or other agreement pursuant to Indebtedness not otherwise prohibited under this Agreement.

	Section 6.01 of the Credit Agreement is amended to (i) delete the word "and" appearing at the
end of clause (l) thereof, (ii) replace the "." appearing at the end of clause (m) thereof with ";" and (iii) add a new
clause (n) and a new clause (o) thereof to read as follows:

(n)Indebtedness consisting of Convertible Debt Securities in an aggregate principal amount at any time
outstanding not to exceed $150,000,000, provided that such Indebtedness shall have a scheduled

                                          - 2 -

final maturity date which is at least six months after the Termination Date and no scheduled amortization of the principal amount of such Indebtedness before
such final scheduled maturity date; and 

(o)obligations (contingent or otherwise) of Borrower or any Subsidiary existing or arising under any
Permitted Bond Hedge. 

	Section 6.04 of the Credit Agreement is amended to (i) delete the word "and" appearing at the
end of clause (h) thereof, (ii) replace the "." appearing at the end of clause (i) thereof with ";" and (iii) add new
clauses (j) and (k) thereof to read as follows:

(j)Purchase of any Permitted Bond Hedge;

(k)  Distributions in connection with the exercise, settlement or termination of any Permitted Bond Hedge;
provided that such purchase upon exercise, termination or other settlement is net share settled and does not require the payment of
any additional cash consideration by Borrower.

	Section 6.04 of the Credit Agreement is amended to add a new, unlettered paragraph at the end thereof to
read as follows:

For the avoidance of doubt, neither Convertible Debt Securities nor any Permitted Bond Hedge shall constitute
stock or equity interests for the purposes of this Section 6.04, unless and until the same are converted into capital stock.

	Section 6.05 of the Credit Agreement is amended to (i) delete the word "and" appearing at the
end of clause (m) thereof, (ii) replace the "." appearing at the end of clause (n) thereof with "; and" and (iii) add a
new clause (o) thereof to read as follows:

(o)Investments consisting of Permitted Bond Hedges. 

	Section 6.13 of the Credit Agreement is amended in its entirety to read as follows:

Enter into any Derivative Contract except Permitted Derivative Obligations and Permitted Bond Hedges. 

	Section 7.06 of the Credit Agreement is amended to (i) delete the word "and" appearing at the
end of clause (l) thereof, (ii) replace the "." appearing at the end of clause (m) thereof with "; and" and (iii) add a
new clause (n) thereof to read as follows:

(n)Promptly after the Borrower becomes aware thereof, notice of any "Event of Default" (as
defined under the Indenture).

                                          - 3 -

	Conditions:  Notwithstanding the foregoing, this Amendment shall not become effective  unless
and until such date (the "Amendment No. 2 Effective Date") as the following conditions are satisfied:

	The Lender shall have received a fully-executed copy of this Amendment; 
	The Lender shall have received a fully-executed copy of the Consent and Acknowledgement of Guarantor, in the form attached to
this Amendment; and
	The Lender shall have received such other documents as the Lender or its counsel may reasonably request.

	Representations and Warranties.  Borrower repeats and reaffirms the representations and
warranties set forth in Article V of the Credit Agreement, except to the extent that such representations and warranties relate
solely to an earlier date.  Borrower also represents and warrants that the execution, delivery and performance of this Amendment are
within the corporate powers of Borrower, have been duly authorized by all necessary corporate action and do not and will not (i) require
any consent or approval of the shareholders of Borrower; (ii) violate any provision of the articles of incorporation or by-laws of Borrower
or of any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award presently in effect having applicability to
Borrower or any subsidiary; (iii) require the consent or approval of, or filing a registration with, any governmental body, agency or
authority; or (iv) result in any breach of or constitute a default under, or result in the imposition of any lien, charge or encumbrance upon
any property of Borrower or any subsidiary pursuant to, any indenture or other agreement or instrument under which Borrower or any
subsidiary is a party or by which it or its properties may be bound or affected.  This Amendment constitutes legal, valid and binding
obligations of Borrower enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy or similar
laws affecting the enforceability of creditors' rights generally and by equitable principles (regardless of whether enforcement is sought in
equity or at law).

	Obligations Enforceable, Etc.  Borrower acknowledges and agrees that its obligations under the
Credit Agreement are not subject to any offset, defense or counterclaim assertable by Borrower and that the Credit Agreement and the
Loan Documents are valid, binding and fully enforceable according to their respective terms.  Except as expressly provided above, the
Credit Agreement and the Loan Documents shall remain in full force and effect, and this Amendment shall not release, discharge or
satisfy any present or future debts, obligations or liabilities to the Lender of Borrower or of any debtor, guarantor or other person or
entity liable for payment or performance of any of such debts, obligations or liabilities of Borrower, or any security interest, lien or other
collateral or security for any of such debts, obligations or liabilities of Borrower or such debtors, guarantors, or other persons or entities,
or waive any default, and the Lender expressly reserves all of its rights and remedies with respect to Borrower and all such debtors,
guarantors or other persons or entities, and all such security interests, liens and other collateral and security.  This is an amendment
and not a novation.  Without limiting the generality of the foregoing, all present and future debts, obligations and liabilities of Borrower
under the Credit Agreement, as amended, are and shall continue to be secured by the Pledge and

                                          - 4 -

Security Agreement and the Intellectual Property Security Agreement given by the Borrower, and shall continue to be guaranteed by the Guaranty (which Guaranty
is secured by the Pledge and Security Agreement given by the Guarantor).

	Fees and Expenses.  As contemplated by Section 9.01(a) of the Credit Agreement,
Borrower shall be responsible for the payment of all fees and out-of-pocket disbursements incurred by the Lender in connection with the
preparation, execution and delivery of this Amendment.  Borrower further acknowledges and agrees that, pursuant to and on the terms
set forth in such Section 9.01(a), Borrower is and shall be responsible for the payment of other fees, expenses, costs and
charges arising under or relating to the Loan Agreement, as amended hereby, and the Loan Documents, as set forth in such
Section 9.01(a).

	Entire Agreement.  This Amendment and the other documents referred to herein contain the entire
agreement between the Borrower and the Lender with respect to the subject matter hereof, superseding all previous communications
and negotiations, and no representation, undertaking, promise or condition concerning the subject matter hereof shall be binding upon
the Lender unless clearly expressed in this Amendment or in the other documents referred to herein.

	Miscellaneous.  The provisions of this Amendment shall inure to the benefit of and be binding
upon any successor to any of the parties hereto. All agreements, representations and warranties made herein shall survive the
execution of this Amendment and the making of the loans under the Credit Agreement, as so amended.  This Amendment shall be
governed by and construed in accordance with the internal laws of the State of California.  This Amendment may be signed in any
number of counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument.  This Amendment
is solely for the benefit of the parties hereto and their permitted successors and assigns.  No other person or entity shall have any rights
under, or because of the existence of, this Amendment.

[Signature Pages Follow]

                                          - 5 -

IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first
above written.
ServiceSource International, Inc.

 

 

By: /s/ Ashley F. Johnson

  Name: Ashley F. Johnson

   Title: CFO

 

 

 

 

[Signature Page to Amendment No. 2 to Credit Agreement]

JPMORGAN CHASE BANK, N.A.

 

 

By: /s/ Jeffrey DeRosa

   Name: Jeffrey DeRosa

   Title: SVP

 

 

 

[Signature Page to Amendment No. 2 to Credit Agreement]

 

CONSENT AND ACKNOWLEDGMENT OF GUARANTOR

 

The undersigned Guarantor hereby consents to the foregoing Amendment No. 2 to Credit Agreement, and
agrees that its Guaranty dated as of July 5, 2012, in favor of the Lender, and all collateral and security therefor, shall remain in full force
and effect notwithstanding the amendments made above.
Dated:  August 6, 2013.

	 	ServiceSource Delaware, Inc.

By: /s/ Ashley F. Johnson 

   Title: CFO_

Exhibit 10.2

$130,000,000

SERVICESOURCE INTERNATIONAL, INC.

1.50% Convertible Senior Notes due 2018

PURCHASE AGREEMENT

 

 

 

 

August 7, 2013

August 7, 2013

Morgan Stanley & Co. LLC

   c/oMorgan Stanley & Co. LLC

   1585 Broadway

   New York, New York 10036

Ladies and Gentlemen:

ServiceSource International, Inc., a Delaware corporation (the "Company"), proposes to issue and sell to the
several purchasers named in Schedule I hereto (the "Initial Purchasers")

$130,000,000 principal amount of its 1.50% Convertible Senior Notes due 2018 (the "Firm Securities") to be
issued pursuant to the provisions of an Indenture to be dated as of August 13, 2013 (the "Indenture") between the
Company and Wells Fargo Bank, National Association, as Trustee (the "Trustee").  The Company also proposes to
issue and sell to the Initial Purchasers not more than an additional $20,000,000 principal amount of its 1.50% Convertible Senior Notes
due 2018 (the "Additional Securities") if and to the extent that you, as Managers of the offering, shall have
determined to exercise, on behalf of the Initial Purchasers, the right to purchase such 1.50% Convertible Senior Notes due 2018
granted to the Initial Purchasers in Section 2 hereof.  The Firm Securities and the Additional Securities are hereinafter collectively
referred to as the "Securities".  The Securities will be convertible into cash, shares of the Company's common
stock ("Common Stock"), par value $0.0001 per share (the "Underlying Securities"), or a
combination thereof.

In connection with the offering of the Firm Securities, the Company is separately entering into convertible note hedge transactions
and warrant transactions with one or more counterparties, which may include affiliates of the Initial Purchasers (each, a "Call
Spread Counterparty"), in each case pursuant to a convertible note hedge confirmation and a warrant confirmation, each
dated the date hereof (the "Base Call Spread Confirmations"), and in connection with the issuance of any
Additional Securities, the Company and each Call Spread Counterparty may enter into additional convertible note hedge transactions
and warrant transactions pursuant to convertible note hedge confirmations and warrant confirmations, each to be dated the date of
issuance of such Additional Securities (together with the Base Call Spread Confirmations, the "Call Spread
Confirmations").

The Securities and the Underlying Securities will be offered without being registered under the Securities Act of 1933, as amended
(the "Securities Act"), to qualified institutional buyers in compliance with the exemption from registration provided
by Rule 144A under the Securities Act.

In connection with the sale of the Securities, the Company has prepared a preliminary offering memorandum (the
"Preliminary Memorandum") and will prepare a final offering memorandum (the "Final Memorandum") including or incorporating by

reference a description of the terms of the Securities and the Underlying
Securities, the terms of the offering and a description of the Company.  For purposes of this Agreement, "Additional Written
Offering Communication" means any written communication (as defined in Rule 405
under the Securities Act) that constitutes an offer to sell or a solicitation of an offer to buy the Securities other than the Preliminary
Memorandum or the Final Memorandum, and "Time of Sale Memorandum" means the Preliminary Memorandum
together with the Additional Written Offering Communications, if any, each identified in Schedule II hereto.  As used herein, the
terms Preliminary Memorandum, Time of Sale Memorandum and Final Memorandum shall include the documents, if any, incorporated
by reference therein on the date hereof.  The terms "supplement", "amendment" and
"amend" as used herein with respect to the Preliminary Memorandum, the Time of Sale Memorandum, the Final
Memorandum or any Additional Written Offering Communication shall include all documents subsequently filed by the Company with
the Securities and Exchange Commission (the "Commission") pursuant to the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), that are deemed to be incorporated by reference therein.

	Representations and Warranties.  The Company
represents and warrants to, and agrees with, you that:

	 Each document, if any, filed or to be filed pursuant to the
Exchange Act and incorporated by reference in the Preliminary Memorandum, the Time of Sale Memorandum or the Final
Memorandum complied or will comply when so filed in all material respects with the Exchange Act and the applicable rules and
regulations of the Commission thereunder,  the Time of Sale Memorandum does not, and at the time
of each sale of the Securities in connection with the offering when the Final Memorandum is not yet available to prospective purchasers
and at the Closing Date (as defined in Section 4), the Time of Sale Memorandum, as then amended or supplemented by the Company,
if applicable, will not, contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading,  the
Preliminary Memorandum does not contain and the Final Memorandum, in the form used by the Initial Purchasers to confirm sales and
on the Closing Date (as defined in Section 4), will not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, except
that the representations and warranties set forth in this paragraph do not apply to statements or
omissions in the Preliminary Memorandum, the Time of Sale Memorandum or the Final Memorandum based upon information relating
to any Initial Purchaser furnished to the Company in writing by such Initial Purchaser through you expressly for use therein.

	Except for the Additional Written Offering Communications, if any, identified in Schedule II
hereto, and electronic road shows, if any, furnished to you before first use, the Company has not prepared, used or referred to, and

                                            2

will not, without your prior consent, prepare, use or refer to, any Additional Written Offering Communication.

	The Company has been duly incorporated, is validly existing as a corporation in good standing under
the laws of the jurisdiction of its incorporation, has the corporate power and authority to own its property and to conduct its business as
described in the Time of Sale Memorandum and is duly qualified to transact business and is in good standing in each jurisdiction in
which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure
to be so qualified or be in good standing would not have a material adverse effect on the Company and its subsidiaries, taken as a
whole.

	Each subsidiary of the Company has been duly organized, is validly existing as a corporation, limited
liability company or other entity, as applicable, in good standing under the laws of the jurisdiction of its organization (to the extent that
the concept of "good standing" is applicable under the laws of such jurisdiction), has the corporate (or other) power and
authority to own its property and to conduct its business as described in the Time of Sale Memorandum and is duly qualified to transact
business and is in good standing (to the extent that the concept of "good standing" is applicable under the laws of such
jurisdiction) in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification,
except to the extent that the failure to be so qualified or be in good standing would not have a material adverse effect on the Company
and its subsidiaries, taken as a whole; all of the issued and outstanding shares of capital stock of each subsidiary of the Company have
been duly and validly authorized and issued, are fully paid and non-assessable and are owned directly or indirectly by the Company,
free and clear of all material liens, encumbrances, equities or claims, other than liens created pursuant to that certain Credit Agreement
dated as of July 5, 2012 between the Company and JPMorgan Chase Bank, National Association, as Issuing Bank and Lender
thereto.

	This Agreement and the Call Spread Confirmations (together with the Securities and the Indenture,
the "Transaction Documents") have been duly authorized, executed
and delivered by the Company.

	The authorized capital stock of the Company conforms as to legal matters to the description thereof
contained in each of the Time of Sale Memorandum and the Final Memorandum.

	The shares of Common Stock outstanding prior to the issuance of the Securities have been duly
authorized and are validly issued, fully paid and non-assessable.

	The Securities have been duly authorized and, when executed and authenticated in accordance with
the provisions of the Indenture and delivered to

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and paid for by the Initial Purchasers in accordance with the terms of this Agreement,
will be valid and binding obligations of the Company, enforceable in accordance with their terms, subject to applicable bankruptcy,
insolvency and similar laws affecting creditors' rights generally and equitable principles of general applicability, and will be entitled to
the benefits of the Indenture pursuant to which such Securities are to be issued.

	Upon issuance and delivery of the Securities in accordance with this Agreement and the Indenture, the Securities will be
convertible at the option of the holder thereof into cash, the Underlying Securities or a combination thereof at the option of the Company
in accordance with the terms of the Indenture and the Securities; the Underlying Securities issuable from time to time upon conversion
of the Securities pursuant to the terms of the Securities have been duly authorized and, when issued upon any conversion of the
Securities in accordance with the terms of the Securities, will be validly issued, fully paid and non assessable, and the issuance of the
Underlying Securities will not be subject to any preemptive or similar rights; and a number of shares of Common Stock equal to the
maximum number of Underlying Securities initially issuable upon conversion of the Securities (assuming "physical
settlement" of the Securities, including any "additional shares" that may be issuable upon conversion in connection
with a "make-whole fundamental change" (each as defined in the Time of Sale Memorandum) have been duly reserved for
such issuance.

	The Indenture has been duly authorized by the Company, and when the Indenture is executed and
delivered by the Company, will be a valid and binding agreement of the Company and the Trustee, enforceable in accordance with its
terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors' rights generally and equitable principles of
general applicability.

	The execution and delivery by the Company of, and the performance by the Company of its
obligations under, the Transaction Documents will not contravene any provision of applicable law or the certificate of incorporation or
by-laws of the Company or any agreement or other instrument binding upon the Company or any of its subsidiaries that is material to
the Company and its subsidiaries, taken as a whole, or any judgment, order or decree of any governmental body, agency or court
having jurisdiction over the Company or any subsidiary, and no consent, approval, authorization or order of, or qualification with, any
governmental body or agency is required for the performance by the Company of its obligations under this Agreement, the Indenture or
the Securities, except such as may have already been made or obtained and as may be required by the securities or Blue Sky laws of
the various states in connection with the offer and sale of the Securities.

	(i) The Company is not in violation of its certificate of incorporation or by-laws, (ii) none of the Company's subsidiaries are in
violation of their certificate of incorporation or by-laws or similar organizational

                                            4

documents and (iii) neither the Company nor any of its
subsidiaries is in default in any material respect, and no event has occurred which, with notice or lapse of time or both, would constitute
such a default, in the due performance or observance of any term, covenant or condition contained in any indenture, mortgage, deed of
trust, credit agreement or other agreement or instrument to which it is a party or by which it is bound or to which any of its property or
assets is subject, except for any default described in clause (ii) or (iii) above which would not have a material adverse effect on the
Company and its subsidiaries, taken as a whole.

	There has not occurred any material adverse change, or any development involving a prospective
material adverse change, in the condition, financial or otherwise, or in the earnings, business or operations of the Company and its
subsidiaries, taken as a whole, from that set forth in the Time of Sale Memorandum provided to prospective purchasers of the
Securities.

	Other than proceedings accurately described in all material respects in the Time of Sale
Memorandum, there are no legal or governmental proceedings pending or, to the knowledge of the Company, threatened to which the
Company or any of its subsidiaries is a party or to which any of the properties of the Company or any of its subsidiaries is subject that
would have a material adverse effect on the Company and its subsidiaries, taken as a whole, or on the power or ability of the Company
to perform its obligations under the Transaction Documents or to consummate the transactions contemplated by the Time of Sale
Memorandum.

	The Company and its subsidiaries  are in compliance with any
and all applicable foreign, federal, state and local laws and regulations relating to the protection of human health and safety, the
environment or hazardous or toxic substances or wastes, pollutants or contaminants ("Environmental
Laws"),  have received all permits, licenses or other approvals required of them under applicable Environmental
Laws to conduct their respective businesses and  are in compliance with all terms and conditions of
any such permit, license or approval, except where such noncompliance with Environmental Laws, failure to receive required permits,
licenses or other approvals or failure to comply with the terms and conditions of such permits, licenses or approvals would not, singly or
in the aggregate, have a material adverse effect on the Company and its subsidiaries, taken as a whole.

	There are no costs or liabilities associated with Environmental Laws (including, without limitation,
any capital or operating expenditures required for clean-up, closure of properties or compliance with Environmental Laws or any permit,
license or approval, any related constraints on operating activities and any potential liabilities to third parties) which would, singly or in
the aggregate, have a material adverse effect on the Company and its subsidiaries, taken as a whole.

                                            5

	The Company is not, and after giving effect to the offering and sale of the Securities and the
application of the proceeds thereof as described in the Final Memorandum will not be, required to register as an "investment
company" as such term is defined in the Investment Company Act of 1940, as amended (the "Investment Company
Act").

	Neither the Company nor any affiliate (as defined in Rule 501(b) of Regulation D under the Securities Act, an "Affiliate") of the Company has directly, or through any agent,  sold, offered for
sale, solicited offers to buy or otherwise negotiated in respect of, any security (as defined in the Securities Act) which is or will be
integrated with the sale of the Securities in a manner that would require the registration under the Securities Act of the Securities or  offered, solicited offers to buy or sold the
Securities by any form of general solicitation or general advertising (as those terms are used in Regulation D under the Securities Act)
or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act.

	Assuming the accuracy of the representations and warranties of the Initial Purchasers contained in
Section 7 and their compliance with their agreements set forth therein, it is not necessary in connection with the offer, sale and delivery
of the Securities to the Initial Purchasers in the manner contemplated by this Agreement to register the Securities under the Securities
Act or to qualify the Indenture under the Trust Indenture Act of 1939, as amended.

	The Securities satisfy the requirements set forth in Rule 144A(d)(3) under the Securities
Act.

	Neither the Company nor any of its subsidiaries or affiliates, nor any director, officer, or employee,
nor, to the Company's knowledge, any agent or representative of the Company or of any of its subsidiaries or affiliates, has taken or will
take any action in furtherance of an offer, payment, promise to pay, or authorization or approval of the payment or giving of money,
property, gifts or anything else of value, directly or indirectly, to any "government official" (including any officer or employee
of a government or government-owned or controlled entity or of a public international organization, or any person acting in an official
capacity for or on behalf of any of the foregoing, or any political party or party official or candidate for political office) to influence official
action or secure an improper advantage; and the Company and its subsidiaries and affiliates have conducted their businesses in
compliance with applicable anti-corruption laws and have instituted and maintain and will continue to maintain policies and procedures
designed to promote and achieve compliance with such laws and with the representation and warranty contained herein.

	The operations of the Company and its subsidiaries, to the knowledge of the Company, are and
have been conducted at all times in material compliance with all applicable financial recordkeeping and reporting requirements,
including those of the Bank Secrecy Act, as amended by Title III of

                                            6

the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act), and the applicable anti-money laundering statutes
of jurisdictions where the Company and its subsidiaries conduct business, the rules and regulations thereunder and any related or
similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the "Anti-Money
Laundering Laws"), and no action, suit or proceeding by or before any
court or governmental agency, authority or body or any arbitrator involving the Company or any of its subsidiaries with respect to the
Anti-Money Laundering Laws is pending or, to the best knowledge of the Company, threatened.

	(i)  Neither the Company nor any of its subsidiaries, nor any director or officer thereof, nor, to the
Company's knowledge, any employee, agent, affiliate or representative of the Company or any of its subsidiaries, is an individual or
entity ("Person") that is, or is owned or controlled by a Person that
is:

(A)  the subject of any sanctions administered or enforced by the U.S. Department of Treasury's Office of Foreign Assets
Control ("OFAC"), the United Nations Security Council ("UNSC"), the European Union
("EU"), Her Majesty's Treasury ("HMT"), or other relevant sanctions authority (collectively,
"Sanctions"), nor

(B)  located, organized or resident in a country or territory that is the subject of Sanctions (including, without limitation, Cuba, Iran,
North Korea, Sudan and Syria).

(ii)  The Company will not, directly or indirectly, use the proceeds of the offering, or lend, contribute or otherwise make available
such proceeds to any subsidiary, joint venture partner or other Person:

(A)  to fund or facilitate any activities or business of or with any Person or in any country or territory that, at the time of such funding
or facilitation, is the subject of Sanctions; or

(B)  in any other manner that will result in a violation of Sanctions by any Person (including any Person participating in the offering,
whether as underwriter, advisor, investor or otherwise).

(iii)  For the past 5 years, the Company and its subsidiaries have not knowingly engaged in and are not now knowingly engaged in
any dealings or transactions with any Person, or in any country or territory, that at the time of the dealing or transaction is or was the
subject of Sanctions.

	Subsequent to the respective dates as of which information is
given in each of the Preliminary Memorandum, the Time of Sale Memorandum and the Final Memorandum, (1) the Company and its subsidiaries have not incurred any material
liability or obligation, direct or contingent, nor entered into any material

                                            7

transaction; (2) the
Company has not purchased any of its outstanding capital stock, nor declared, paid or otherwise made any dividend or distribution of
any kind on its capital stock other than ordinary and customary dividends; and (3) there has not been any material change in the capital
stock, short term debt or long term debt of the Company and its subsidiaries, except in each case as described in each of the
Preliminary Memorandum, the Time of Sale Memorandum and the Final Memorandum, respectively.

	The Company and each of its subsidiaries have filed all federal, state, local and foreign tax returns required to be filed through the
date of this Agreement or have requested extensions thereof (except where the failure to file would not, individually or in the aggregate,
have a material adverse effect) and have paid all taxes required to be paid thereon (except for cases in which the failure to file or pay
would not have a material adverse effect, or, except as currently being contested in good faith and for which reserves required by U.S.
GAAP have been created in the financial statements of the Company), and no tax deficiency has been determined adversely to the
Company or any of its subsidiaries which has had (nor does the Company nor any of its subsidiaries have any notice or knowledge of
any tax deficiency which could reasonably be expected to be determined adversely to the Company or its subsidiaries and which could
reasonably be expected to have) a material adverse effect.

	The Company and each of its subsidiaries maintain a system of internal accounting controls
sufficient to provide reasonable assurance that  transactions are executed in accordance with management's general or specific authorizations;  transactions are recorded as necessary to permit preparation of financial statements in conformity with
generally accepted accounting principles and to maintain asset accountability;  access to assets is
permitted only in accordance with management's general or specific authorization;  the recorded
accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any
differences; and  the interactive data in
eXtensible Business Reporting Language included or incorporated by reference in the Time of Sale Memorandum is accurate. Except
as described in the Time of Sale Memorandum, since
the end of the Company's most recent audited fiscal year, there has been (i) no material weakness in the Company's internal control over financial reporting (whether or not
remediated) and (ii) no change in the Company's internal control over financial reporting that has materially affected, or is reasonably
likely to materially affect, the Company's internal control over financial reporting.

	The interactive data in eXtensible Business Reporting Language included or incorporated by
reference in the Time of Sale Memorandum fairly presents the information called for in all material respects and has been prepared in
accordance with the Commission's rules and guidelines applicable thereto.

	The Company and its subsidiaries have good and marketable title in fee simple to all real property and good and marketable title to all personal

                                            8

property owned by them which is material to the business of the Company and its subsidiaries, in each case free and clear
of all liens, encumbrances and defects except such as are described in the Time of Sale Memorandum or such as do not materially
affect the value of such property and do not interfere with the use made and proposed to be made of such property by the Company
and its subsidiaries; and any real property and buildings held under lease by the Company and its subsidiaries are held by them under
valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed
to be made of such property and buildings by the Company and its subsidiaries, in each case except as described in the Time of Sale
Memorandum.

	The Company and its subsidiaries own or possess, or can acquire on reasonable terms, all material patents, patent rights,
licenses, inventions, copyrights, know-how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential
information, systems or procedures), trademarks, service marks and trade names ("Intellectual
Property") necessary for the conduct of the business now operated by them,
or proposed in the Time of Sale Memorandum to be conducted by them.  In each case, except as would not, singly or in the aggregate,
reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole, (i) neither the
Company nor any of its subsidiaries has received any notice, nor is it otherwise aware of any facts which could form a reasonable basis
for any claim, (y) alleging the infringement, misappropriation, violation of or conflict with the Intellectual Property of others, or (z)
challenging the validity, enforceability or scope of any Intellectual Property owned by the Company or any of its subsidiaries
("Company Intellectual Property"); (ii) to the Company's knowledge,
there are no third parties who have or will be able to establish rights to any Company Intellectual Property; and (iii) to the Company's
knowledge, no Intellectual Property has been obtained or is being used by the Company or any of its subsidiaries in violation of any
contractual obligation binding on the Company or any of its subsidiaries.

	No material labor dispute with the employees of the Company or any of its subsidiaries exists, except as described in the Time of
Sale Memorandum, or, to the knowledge of the Company, is imminent; and the Company is not aware of any existing, threatened or
imminent labor disturbance by the employees of any of its principal suppliers, manufacturers or contractors that could have a material
adverse effect on the Company and its subsidiaries, taken as a whole.

	The Company and each of its subsidiaries are insured by insurers of recognized financial responsibility against such losses and
risks and in such amounts as are prudent and customary in the businesses in which they are engaged; and neither the Company nor
any of its subsidiaries has any reason to believe that it will not be able to renew its existing insurance coverage as and when such
coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would
not have a material

                                            9

adverse effect on the Company and its subsidiaries, taken as a whole, except as described in the Time of Sale Memorandum.

	The Company and its subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state or
foreign regulatory authorities necessary to conduct their respective businesses, and neither the Company nor any of its subsidiaries has
received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit which, singly
or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would have a material adverse effect on the Company
and its subsidiaries, taken as a whole, except as described in the Time of Sale Memorandum.

	Agreements to Sell and Purchase.  The Company hereby agrees to sell to the several Initial
Purchasers, and each Initial Purchaser, upon the basis of the representations and warranties herein contained, but subject to the
conditions hereinafter stated, agrees, severally and not jointly, to purchase from the Company the respective principal amount of Firm
Securities set forth in Schedule I hereto opposite its name at a purchase price of 97.1% of the principal amount thereof (the
"Purchase Price") plus accrued interest, if any, to the Closing
Date.

On the basis of the representations and warranties contained in this Agreement, and subject to its terms and conditions,
the Company agrees to sell to the Initial Purchasers the Additional Securities, and the Initial Purchasers shall have the right to
purchase, severally and not jointly, up to $20,000,000 principal amount of Additional Securities at the Purchase Price plus accrued
interest, if any, to the date of payment and delivery solely to cover over-allotments, if any.  You may exercise this right on behalf of the
Initial Purchasers in whole or from time to time in part by giving written notice not later than 30 days after the date of this Agreement.
Any exercise notice shall specify the principal amount of Additional Securities to be purchased by the Initial Purchasers and the date on
which such Additional Securities are to be purchased.  Each purchase date must be at least one business day after the written notice is
given and may not be earlier than the closing date for the Firm Securities nor later than ten business days after the date of such notice.
Additional Securities may be purchased as provided in Section 4 solely for the purpose of covering sales of securities in excess
of the number of the Firm Securities.  On each day, if any, that Additional Securities are to be purchased (an "Option Closing
Date"), each Initial Purchaser agrees, severally and not jointly, to purchase the principal amount of Additional Securities
(subject to such adjustments to eliminate fractional Securities as you may determine) that bears the same proportion to the total
principal amount of Additional Securities to be purchased on such Option Closing Date as the principal amount of Firm Securities set
forth in Schedule I opposite the name of such Initial Purchaser bears to the total principal amount of Firm Securities.

	Terms of Offering.  You have advised the Company that
the Initial Purchasers will make an offering of the Securities purchased by the Initial Purchasers hereunder as soon as practicable after
this Agreement is entered into as in your judgment is advisable.

                                            10

	Payment and Delivery.  Payment for the Firm Securities shall be made to the Company in
Federal or other funds immediately available in New York City against delivery of such Firm Securities for the respective accounts of
the several Initial Purchasers at 10:00 a.m., New York City time, on August 13, 2013, or at such other time on the same or such other
date, not later than August 20, 2013, as shall be designated in writing by you.  The time and date of such payment are hereinafter
referred to as the "Closing Date."

Payment for any Additional Securities shall be made to the Company in Federal or other funds immediately available in
New York City against delivery of such Additional Securities for the respective accounts of the several Initial Purchasers at
10:00 a.m., New York City time, on the date specified in the corresponding notice described in Section 2 or at such other
time on the same or on such other date, in any event not later than September 20, 2013, as shall be designated in writing by you.

The Securities shall be in definitive form or global form, as specified by you, and registered in such names and in such
denominations as you shall request in writing not later than one full business day prior to the Closing Date or the applicable Option
Closing Date, as the case may be. The Securities shall be delivered to you on the Closing Date or an Option Closing Date, as the case
may be, for the respective accounts of the several Initial Purchasers, with any transfer taxes payable in connection with the transfer of
the Securities to the Initial Purchasers duly paid, against payment of the Purchase Price therefor plus accrued interest, if any, to the
date of payment and delivery.

	Conditions to the Initial Purchasers' Obligations.  The
several obligations of the Initial Purchasers to purchase and pay for the Firm Securities on the Closing Date are subject to the following
conditions:

	Subsequent to the execution and delivery of this Agreement and prior to the Closing Date:

	there shall not have occurred any downgrading, nor shall any notice have been given of any
intended or potential downgrading or of any review for a possible change that does not indicate the direction of the possible change, in
the rating accorded any of the securities of the Company or any of its subsidiaries by any "nationally recognized statistical rating
organization," as such term is defined in Section 3(a)(62) of the Exchange Act; and

	there shall not have occurred any change, or any development involving a prospective change, in
the condition, financial or otherwise, or in the earnings, business or operations of the Company and its subsidiaries, taken as a whole,
from that set forth in the Time of Sale Memorandum provided to the prospective purchasers of the Securities that, in your judgment, is
material and adverse and that makes it, in your judgment, impracticable to market the Securities on the terms and in the manner
contemplated in the Time of Sale Memorandum.

                                            11

	The Initial Purchasers shall have received on the Closing Date a certificate, dated the Closing Date
and signed on behalf of the Company by an executive officer of the Company, to the effect set forth in Section 5(a)(i) and to the
effect that the representations and warranties of the Company contained in this Agreement are true and correct as of the Closing Date
and that the Company has complied with all of the agreements and satisfied all of the conditions on its part to be performed or satisfied
hereunder on or before the Closing Date.

The officer signing and delivering such certificate may rely upon his or her knowledge as to proceedings threatened.

	The Initial Purchasers shall have received on the Closing Date
an opinion and negative assurance statement of Wilson Sonsini Goodrich & Rosati, Professional Corporation, outside counsel for
the Company, dated the Closing Date, to the effect set forth in Exhibit A.  Such opinion shall be rendered to the Initial
Purchasers at the request of the Company and shall so state therein.

	The Initial Purchasers shall have received on the Closing Date an opinion and negative assurance
statement of Davis Polk & Wardwell LLP, counsel for the Initial Purchasers, dated the Closing Date.

	The Initial Purchasers shall have received on each of the date hereof and the Closing Date a letter,
dated the date hereof or the Closing Date, as the case may be, in form and substance satisfactory to the Initial Purchasers, from
PricewaterhouseCoopers LLP, independent registered public accounting firm, containing statements and information of the type
ordinarily included in accountants' "comfort letters" to initial purchasers with respect to the financial statements and certain
financial information contained in or incorporated by reference into the Time of Sale Memorandum and the Final Memorandum;
provided that the letter delivered on the Closing Date shall use a "cut-off date" not earlier than the date
hereof.

	The "lock-up" agreements, each substantially in the form of Exhibit B
hereto, between you, officers and directors (within the meaning of Section 16 of the Exchange Act) of the Company, certain affiliates of
Benchmark Capital and certain affiliates of Housatonic Partners relating to sales and certain other dispositions of shares of Common
Stock or certain other securities, delivered to you on or before the date hereof, shall be in full force and effect on the Closing
Date.

	The Initial Purchasers shall have received, on the date hereof and on the Closing Date, a certificate dated the date hereof and the
Closing Date, respectively, from the Chief Financial Officer of the Company covering the matters set forth on Exhibit C
hereto.

	An application for the listing of the Underlying Securities issuable upon conversion of the Securities (assuming the Company elects to "physically

                                            12

settle" the Securities) shall have been submitted to The NASDAQ Global Select Market.

The several obligations of the Initial Purchasers to purchase Additional Securities hereunder are subject to the delivery to
you on the applicable Option Closing Date of such documents as you may reasonably request with respect to the good standing of the
Company, the due authorization, execution and authentication of the Additional Securities to be sold on such Option Closing Date and
other matters related to the execution and authentication of such Additional Securities, and officers' certificates, opinions of counsel and
accountants' comfort letters to the effect set forth above, except that such certificates and opinions shall be dated as of the applicable
Option Closing Date and statements and opinions above contemplated to be given as of the Closing Date shall instead be made and
given as of such Option Closing Date.

	Covenants of the Company.  The Company covenants
with each Initial Purchaser as follows:

	To furnish to you in New York City, without charge, prior to 10:00 a.m. New York City time on
the business day next succeeding the date of this Agreement and during the period mentioned in Section 6(d) or (e), as many
copies of the Time of Sale Memorandum, the Final Memorandum, any documents incorporated by reference therein and any
supplements and amendments thereto as you may reasonably request.

	Before amending or supplementing the Preliminary Memorandum, the Time of Sale Memorandum or
the Final Memorandum, to furnish to you a copy of each such proposed amendment or supplement and not to use any such proposed
amendment or supplement to which you reasonably object except as may be required by applicable law.

	To furnish to you a copy of each proposed Additional Written Offering Communication to be
prepared by or on behalf of, used by, or referred to by the Company and not to use or refer to any proposed Additional Written Offering
Communication to which you reasonably object.

	If the Time of Sale Memorandum is being used to solicit offers to buy the Securities at a time when
the Final Memorandum is not yet available to prospective purchasers and any event shall occur or condition exist as a result of which it
is necessary to amend or supplement the Time of Sale Memorandum in order to make the statements therein, in the light of the
circumstances, not misleading, or if, in the opinion of counsel for the Initial Purchasers, it is necessary to amend or supplement the
Time of Sale Memorandum to comply with applicable law, forthwith to prepare and furnish, at its own expense, to the Initial Purchasers
and to any dealer upon request, either amendments or supplements to the Time of Sale Memorandum so that the statements in the
Time of Sale Memorandum as so amended or supplemented will not, in the light of the circumstances when delivered to a prospective purchaser, be misleading or so that

                                            13

the Time of Sale Memorandum, as amended or supplemented, will comply with applicable law.

	If, during such period after the date hereof and prior to the date on which all of the Securities shall
have been sold by the Initial Purchasers, any event shall occur or condition exist as a result of which it is necessary to amend or
supplement the Final Memorandum in order to make the statements therein, in the light of the circumstances when the Final
Memorandum is delivered to a purchaser, not misleading, or if, in the opinion of counsel for the Initial Purchasers, it is necessary to
amend or supplement the Final Memorandum to comply with applicable law, forthwith to prepare and furnish, at its own expense, to the
Initial Purchasers, either amendments or supplements to the Final Memorandum so that the statements in the Final Memorandum as so
amended or supplemented will not, in the light of the circumstances when the Final Memorandum is delivered to a purchaser, be
misleading or so that the Final Memorandum, as amended or supplemented, will comply with applicable law.

	To endeavor to qualify the Securities for offer and sale under the securities or Blue Sky laws of such
jurisdictions within the United States and Canada as you shall reasonably request, provided that the Company shall not be required to
qualify as a foreign corporation or file a general consent to service of process in any jurisdiction or submit itself to taxation in respect of
doing business in any jurisdiction in which it is otherwise not so subject.

	Whether or not the transactions contemplated in this Agreement are consummated or this
Agreement is terminated, to pay or cause to be paid all expenses incident to the performance of its obligations under this Agreement,
including:  the fees, disbursements and expenses of the Company's counsel and the Company's
accountants in connection with the issuance and sale of the Securities and all other fees or expenses in connection with the preparation
of the Preliminary Memorandum, the Time of Sale Memorandum, the Final Memorandum, any Additional Written Offering
Communication prepared by or on behalf of, used by, or referred to by the Company and any amendments and supplements to any of
the foregoing, including all printing costs associated therewith, and the delivering of copies thereof to the Initial Purchasers, in the
quantities herein above specified,  all costs and expenses related to the transfer and delivery of the
Securities to the Initial Purchasers, including any transfer or other taxes payable thereon,  the cost of
printing or producing any Blue Sky or legal investment memorandum in connection with the offer and sale of the Securities under state
securities laws and all expenses in connection with the qualification of the Securities for offer and sale under state securities laws as
provided in Section 6(f) hereof, including filing fees and the reasonable fees and disbursements of counsel for the Initial
Purchasers in connection with such qualification and in connection with the Blue Sky or legal investment memorandum in an amount
not to exceed $5,000,  any fees charged by rating agencies for the rating of the Securities,  the fees and expenses, if any, incurred in connection with the admission of the Securities for trading any appropriate

                                            14

market system,  the costs and charges of the Trustee and any transfer agent,
registrar or depositary,  the cost of the preparation, issuance and delivery of the Securities,  the costs and expenses of the Company relating to investor presentations on any "road
show" undertaken in connection with the marketing of the offering of the Securities, including, without limitation, expenses
associated with the preparation or dissemination of any electronic road show, expenses associated with production of road show slides
and graphics, fees and expenses of any consultants engaged in connection with the road show presentations with the prior approval of
the Company, travel and lodging expenses of the representatives and officers of the Company and any such consultants, and one-half
the cost of any aircraft chartered in connection with the road show and  all other cost and expenses
incident to the performance of the obligations of the Company hereunder for which provision is not otherwise made in this Section.  It is
understood, however, that except as provided in this Section, Section 8, and the last paragraph
of Section 10, the Initial Purchasers will pay all of their costs and expenses, including fees and disbursements of their
counsel, transfer taxes payable on resale of any of the Securities by them and any advertising expenses connected with any offers they
may make.

	Neither the Company nor any Affiliate will sell, offer for sale or solicit offers to buy or otherwise
negotiate in respect of any security (as defined in the Securities Act) which could be integrated with the sale of the Securities in a
manner which would require the registration under the Securities Act of the Securities.

	Not to solicit any offer to buy or offer or sell the Securities or the Underlying Securities by means of
any form of general solicitation or general advertising (as those terms are used in Regulation D under the Securities Act) or in any
manner involving a public offering within the meaning of Section 4(2) of the Securities Act.

	While any of the Securities or the Underlying Securities remain "restricted securities"
within the meaning of the Securities Act, to make available, upon request, to any seller of such Securities the information specified in
Rule 144A(d)(4) under the Securities Act, unless the Company is then subject to Section 13 or 15(d) of the Exchange Act.

	During the period of one years after the Closing Date or any Option Closing Date, if later, the
Company will not be, nor will it become, an open-end investment company, unit investment trust or face-amount certificate company
that is or is required to be registered under Section 8 of the Investment Company Act.

	During the period of one year after the Closing Date or any Option Closing Date, if later, the
Company will not, and will not permit any of its controlled "affiliates" (as defined in Rule 144 under the Securities Act) to resell

                                            15

any of the Securities or the Underlying Securities which constitute
"restricted securities" under Rule 144 that have been reacquired by any of
them.

	Not to take any action prohibited by Regulation M under the Exchange Act in connection with
the distribution of the Securities contemplated hereby.

The Company also agrees that, without the prior written consent of Morgan Stanley & Co. LLC on behalf of the Initial
Purchasers, it will not, during the period ending 90 days after the date of the Final Memorandum ( the "Restricted
Period"), (1) offer, pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly
or indirectly, any shares of Common Stock beneficially owned (as such term is used in Rule 13d-3 of the Exchange Act) or any other
securities so owned convertible into or exercisable or exchangeable for Common Stock or (2) enter
into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of
the Common Stock, whether any such transaction described in clause (1) or (2) above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise or
(3) file any registration statement with the Commission relating to the offering of any shares of Common Stock or any securities
convertible into or exercisable or exchangeable for Common Stock, other than a registration statement on Form S-8 in connection with
the Company's equity incentive plans.  

The foregoing restrictions shall not apply to (a) the sale of the Securities under this Agreement
or the issuance of the Underlying Securities; (b) the issuance by the Company of any shares of
Common Stock upon the exercise of an option or warrant or the conversion of a security outstanding on the date hereof disclosed in the
Time of Sale Memorandum; (c) the issuance by the Company of Common Stock or other securities convertible into or exercisable for
shares of Common Stock pursuant to the equity incentive plans of the Company
described in the Time of Sale Memorandum; (d) the establishment of a trading plan pursuant to Rule 10b5-1 under the Exchange Act
for the transfer of shares of Common Stock, provided that (i) such plan does not provide for the transfer of Common Stock
during the Restricted Period and (ii) to the extent a public announcement or filing under the Exchange Act, if any, is required of or
voluntarily made by the Company regarding the establishment of such plan, such announcement or filing shall include a statement to
the effect that no transfer of Common Stock may be made under such plan during the Restricted Period; (e) the entry into agreements
to issue securities in connection with the acquisition by the Company or any of its subsidiaries of the securities, business, property or
other assets of another person or entity or pursuant to an employee benefit plan assumed by the Company in connection with such
acquisition; (f) the entry into agreements to issue securities in connection with joint ventures, commercial relationships or other strategic
transactions; provided that in the case of clauses (e) and (f), (i) the number of shares of Common Stock to be issued or issuable
pursuant to such clauses (e) and (f) shall not, in the aggregate, exceed 5% of the shares of Common Stock outstanding as of the date
hereof and (ii) any such securities issuable during the Restricted Period shall be held in escrow and not released prior to the

                                            16

expiration of the Restricted Period; (g) entry into the warrant confirmations as part of the Call Spread Confirmations; or (h) the issuance of
Common Stock upon exercise and settlement or termination of the warrant transactions pursuant to the Call Spread Confirmations.

	Offering of Securities;
Restrictions on Transfer.

	 Each Initial Purchaser, severally and not jointly, represents and
warrants that such Initial Purchaser is a qualified institutional buyer as defined in Rule 144A under the Securities Act (a
"QIB"). Each Initial Purchaser, severally and not jointly, agrees with
the Company that  it will not solicit offers for, or offer or sell, such Securities by any form of general
solicitation or general advertising (as those terms are used in Regulation D under the Securities Act) or in any manner involving a public
offering within the meaning of Section 4(2) of the Securities Act and  it will solicit offers for
such Securities only from, and will offer such Securities only to, persons that it reasonably believes to be QIBs that, in purchasing
such Securities are deemed to have represented and agreed as provided in the Final Memorandum under the captions "Notice to
Investors" and "Transfer Restrictions."

	The Company agrees that the Initial Purchasers may provide copies of the Preliminary
Memorandum, the Time of Sale Memorandum, the Final Memorandum and any other agreements or documents relating thereto,
including without limitation, the Transaction Documents, to Xtract Research LLC ("Xtract"), following completion of the
offering, for inclusion in an online research service sponsored by Xtract, access to which shall be restricted by Xtract to
QIBs.

	Indemnity and Contribution.

	 The Company agrees to
indemnify and hold harmless each Initial Purchaser, each person, if any, who controls any Initial Purchaser within the meaning of either
Section 15 of the Securities Act or Section 20 of the
Exchange Act, and each affiliate of any Initial Purchaser within the meaning of Rule 405 under
the Securities Act from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other
expenses reasonably incurred in connection with defending or investigating any such action or claim) caused by any untrue statement
or alleged untrue statement of a material fact contained in the Preliminary Memorandum, the Time of Sale Memorandum or any
amendment or supplement thereto, any Additional Written Offering Communication prepared by or on behalf of, used by, or referred to
by the Company, any "road show" as defined in Rule 433(h) under the Securities Act (a
"road show") or the Final Memorandum or any amendment or
supplement thereto, or caused by any omission or alleged omission to state therein a material fact necessary to make the statements
therein in the light of the circumstances under which they were made not misleading, except insofar as such losses, claims, damages or
liabilities are caused by any such untrue statement or omission or alleged untrue statement or omission based upon information relating
to any Initial Purchaser furnished to the Company in writing by such Initial Purchaser through you expressly for use therein.

	Each Initial Purchaser agrees, severally and not jointly, to indemnify and hold harmless the
Company, its directors, its officers and each

                                            17

person, if any, who controls the Company within the meaning of either Section 15 of the Securities Act or Section 20 of the
Exchange Act to the same extent as the foregoing indemnity from the Company to such Initial Purchaser, but only with reference to
information relating to such Initial Purchaser furnished to the Company in writing by such Initial Purchaser through you expressly for use
in the Preliminary Memorandum, the Time of Sale Memorandum, any Additional Written Offering Communication prepared by or on
behalf of, used by or referred to by the Company, road show, or the Final Memorandum or any amendment or supplement
thereto.

	In case any proceeding (including any governmental investigation) shall be instituted involving any
person in respect of which indemnity may be sought pursuant to Section 8 or 8(b), such person (the "indemnified
party") shall promptly notify the person against whom such indemnity may be
sought (the "indemnifying party") in writing and the indemnifying
party, upon request of the indemnified party, shall retain counsel reasonably satisfactory to the indemnified party to represent the
indemnified party and any others the indemnifying party may designate in such proceeding and shall pay the fees and disbursements of
such counsel related to such proceeding. In any such proceeding, any indemnified party shall have the right to retain its own counsel,
but the fees and expenses of such counsel shall be at the expense of such indemnified party unless 
the indemnifying party and the indemnified party shall have mutually agreed to the retention of such counsel,  the indemnifying party
shall have failed, within a reasonable period of time following notification, to have retained counsel reasonably satisfactory to the
indemnified party or  the named parties to any such proceeding (including any impleaded parties)
include both the indemnifying party and the indemnified party and representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between them. It is understood that the indemnifying party shall not, in respect
of the legal expenses of any indemnified party in connection with any proceeding or related proceedings in the same jurisdiction, be
liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all such indemnified parties and
that all such fees and expenses shall be reimbursed as they are incurred. Such firm shall be designated in writing by Morgan Stanley
& Co. LLC, in the case of parties indemnified pursuant to Section 8, and by the Company, in the case of parties indemnified
pursuant to Section 8(b). The indemnifying party shall not be liable for any settlement of any proceeding effected without its
written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to
indemnify the indemnified party from and against any loss or liability by reason of such settlement or judgment.  No indemnifying party
shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened proceeding in
respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such
indemnified party, unless such settlement includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of

                                            18

such proceeding and does not include a statement as to or an admission of fault, culpability or a failure to act by or
on behalf of any indemnified party.

	To the extent the indemnification provided for in Section 8 or 8(b) is unavailable to an
indemnified party or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then each indemnifying party
under such paragraph, in lieu of indemnifying such indemnified party thereunder, shall contribute to
the amount paid or payable by such indemnified party as a result of such losses, claims, damages or liabilities  in such proportion as is appropriate to reflect the relative benefits received by the Company on the one
hand and the Initial Purchasers on the other hand from the offering of the Securities or  if the
allocation provided by clause 8(d) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only
the relative benefits referred to in clause 8(d) above but also the relative fault of the Company on the one hand and of the Initial
Purchasers on the other hand in connection with the statements or omissions that resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and
the Initial Purchasers on the other hand in connection with the offering of the Securities shall be deemed to be in the same respective
proportions as the net proceeds from the offering of the Securities (before deducting expenses) received by the Company and the total
discounts and commissions received by the Initial Purchasers bear to the aggregate offering price of the Securities. The relative fault of
the Company on the one hand and of the Initial Purchasers on the other hand shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to
information supplied by the Company or by the Initial Purchasers and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The Initial Purchasers' respective obligations to contribute pursuant to this
Section 8 are several in proportion to the respective principal amount of Securities they have purchased hereunder, and not
joint.

	The Company and the Initial Purchasers agree that it would not be just or equitable if contribution
pursuant to this Section 8 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity
for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in
Section 8(d). The amount paid or payable by an indemnified party as a result of the losses, claims, damages and liabilities
referred to in Section 8(d) shall be deemed to include, subject to the limitations set forth above, any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding
the provisions of this Section 8, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which
the total price at which the Securities resold by it in the initial placement of such Securities were offered to investors exceeds the
amount of any damages that such Initial Purchaser has otherwise been required to pay by reason of such untrue or

                                            19

alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The remedies provided for in this Section 8 are not exclusive and shall not limit any
rights or remedies which may otherwise be available to any indemnified party at law or in equity.

	The indemnity and contribution provisions contained in this Section 8 and the representations,
warranties and other statements of the Company contained in this Agreement shall remain operative and in full force and effect
regardless of  any termination of this Agreement,  any
investigation made by or on behalf of any Initial Purchaser, any person controlling any Initial Purchaser or any affiliate of any Initial
Purchaser or by or on behalf of the Company, its officers or directors or any person controlling the Company and  acceptance of and payment for any of the Securities.

	Termination.  The Initial Purchasers may terminate this Agreement by notice given by you to
the Company, if  after the execution and delivery of this Agreement and prior to the Closing Date 
trading generally shall have been suspended or materially limited on, or by, as the case may be, the New York Stock Exchange or the
NASDAQ Global Select Market,  trading of any securities of the Company shall have been
suspended on any exchange or in any over-the-counter market,  a material disruption in securities
settlement, payment or clearance services in the United States shall have occurred,  any moratorium
on commercial banking activities shall have been declared by Federal or New York State authorities or  there shall have occurred any outbreak or escalation of hostilities, or any change in financial markets or
any calamity or crisis that, in your judgment, is material and adverse and which, singly or together with any other event specified in this
clause (v), makes it, in your judgment, impracticable or inadvisable to proceed with the offer, sale or delivery of the Securities on the
terms and in the manner contemplated in the Time of Sale Memorandum or the Final Memorandum.

	Effectiveness; Defaulting Initial Purchasers.  This Agreement shall become effective upon the
execution and delivery hereof by the parties hereto.

If, on the Closing Date, or an Option Closing Date, as the case may be, any one or more of the Initial Purchasers shall fail
or refuse to purchase Securities that it or they have agreed to purchase hereunder on such date, and the aggregate principal amount of
Securities which such defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused to purchase is not more than one-tenth
of the aggregate principal amount of Securities to be purchased on such date, the other Initial Purchasers shall be obligated
severally in the proportions that the principal amount of Firm Securities set forth opposite their respective names in Schedule I
bears to the aggregate principal amount of Firm Securities set forth opposite the names of all such non-defaulting Initial Purchasers, or
in such other proportions as you may specify, to purchase the Securities which such defaulting Initial Purchaser or Initial Purchasers
agreed but failed or refused to purchase on such date; provided that in no event shall the principal amount of Securities that any

                                            20

Initial Purchaser has agreed to purchase pursuant to this Agreement be increased pursuant to this Section 10 by an amount in
excess of one-ninth of such principal amount of Securities without the written consent of such Initial Purchaser. If, on the Closing Date
any Initial Purchaser or Initial Purchasers shall fail or refuse to purchase Firm Securities which it or they have agreed to purchase
hereunder on such date and the aggregate principal amount of Securities with respect to which such default occurs is more than one-tenth
of the aggregate principal amount of Firm Securities to be purchased on such date, and arrangements satisfactory to you and the
Company for the purchase of such Firm Securities are not made within 36 hours after such default, this Agreement shall terminate
without liability on the part of any non-defaulting Initial Purchaser or of the Company. In any such case either you or the Company shall
have the right to postpone the Closing Date, but in no event for longer than seven days, in order that the required changes, if any, in the
Time of Sale Memorandum, the Final Memorandum or in any other documents or arrangements may be effected. If, on an Option
Closing Date, any Initial Purchaser or Initial Purchasers shall fail or refuse to purchase Additional Securities and the aggregate principal
amount of Additional Securities with respect to which such default occurs is more than one-tenth of the aggregate principal amount of
Additional Securities to be purchased on such Option Closing Date, the non-defaulting Initial Purchasers shall have the option to (a) terminate their obligation hereunder to purchase the Additional Securities to be sold on such Option
Closing Date or (b) purchase not less than the principal amount of Additional Securities that such
non-defaulting Initial Purchasers would have been obligated to purchase in the absence of such default.  Any action taken under this paragraph shall not relieve any defaulting Initial Purchaser from liability in respect of any default of such
Initial Purchaser under this Agreement.

If this Agreement shall be terminated by the Initial Purchasers, or any of them, because of any failure or refusal on the part of the
Company to comply with the terms or to fulfill any of the conditions of this Agreement, or if for any reason the Company shall be unable
to perform its obligations under this Agreement, the Company will reimburse the Initial Purchasers or such Initial Purchasers as have so
terminated this Agreement with respect to themselves, severally, for all out-of-pocket expenses (including the fees and disbursements
of their counsel) reasonably incurred by such Initial Purchasers in connection with this Agreement or the offering contemplated
hereunder.

	Entire Agreement.  

	This Agreement, together with any contemporaneous written agreements and any prior written agreements (to the extent not
superseded by this Agreement) that relate to the offering of the Securities, represents the entire agreement between the Company and
the Initial Purchasers with respect to the preparation of the Preliminary Memorandum, the Time of Sale Memorandum, the Final
Memorandum, the conduct of the offering, and the purchase and sale of the Securities.

	The Company acknowledges that in connection with the offering of the Securities:  the Initial Purchasers have acted at arm's length, are not agents of, and owe no fiduciary duties to, the
Company or any other person,  the Initial
Purchasers owe the Company only those duties and obligations set forth in this Agreement and prior written agreements (to the extent
not superseded by this Agreement) if any, and  the Initial Purchasers may have interests that

                                            21

differ from those of the Company.  The Company waives to the full extent permitted by applicable law any claims it may have against the
Initial Purchasers arising from an alleged breach of fiduciary duty in connection with the offering of the Securities.

	Counterparts.  This Agreement may be signed in two or more counterparts, each of which
shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

	Applicable Law.  This Agreement shall be governed by and construed in accordance with the
internal laws of the State of New York.

	Headings.  The headings of the sections of this Agreement have been inserted for
convenience of reference only and shall not be deemed a part of this Agreement.

	Notices.  All communications hereunder shall be in writing and effective only upon receipt and
if to the Initial Purchasers shall be delivered, mailed or sent to you in care of Morgan Stanley & Co. LLC,
1585 Broadway, New York, New York 10036, Attention: Convertible Debt Syndicate Desk, with a copy to the Legal
Department; and if to the Company shall be delivered, mailed or sent to ServiceSource International, Inc., 634 Second Street, San
Francisco, California 94107, Attention: Matt Goldberg.

 

 

 

                                            22

	
Very truly yours,

SERVICESOURCE INTERNATIONAL, INC.

	
By:
	
/s/ Ashley F. Johnson

	 	
Name:Ashley F. Johnson

	 	
Title:Chief Financial Officer

 

 

 

 

 

[Company signature page to Purchase Agreement]

 

 

 

	
Accepted as of the date hereof

Morgan Stanley & Co. LLC

Acting on behalf of itself and the several Initial Purchasers named in Schedule I hereto.

By:Morgan Stanley & Co. LLC

	
By:
	
/s/ James Redfern

	 	
Name: James Redfern

	 	
Title:Executive Director

 

 

 

 

 

[Manager's signature page to Purchase Agreement]

 

                                            2

Schedule I

	
Initial Purchaser
	
Principal Amount of Firm Securities to be Purchased

	 	 
	
Morgan Stanley & Co. LLC
	
97,500,000

	
JMP Securities LLC
	
9,100,000

	
Lazard Capital Markets LLC
	
9,100,000

	
Piper Jaffray & Co. 
	
9,100,000

	
Credit Agricole Securities (USA) Inc. 
	
2,600,000

	
Northland Securities, Inc. 
	
2,600,000

	 	 
	Total:

	
$130,000,000

 

 

                                            I-1

Schedule II

Time of Sale Memorandum

1.Preliminary Memorandum issued August 6, 2013

2.Pricing term sheet, dated August 7, 2013, substantially in the form of Schedule III

 

 

                                            II-1

SCHEDULE III

PRICING TERM SHEET

dated August 7, 2013
PRICING TERM SHEET                                  STRICTLY CONFIDENTIAL

DATED August 7, 2013

SERVICESOURCE INTERNATIONAL, INC.

$130,000,000 1.50% CONVERTIBLE SENIOR NOTES DUE 2018

The information in this pricing term sheet supplements ServiceSource International, Inc.'s preliminary
offering memorandum, dated August 6, 2013 (the "Preliminary Offering Memorandum"), and supersedes the
information in the Preliminary Offering Memorandum to the extent inconsistent with the information in the Preliminary Offering
Memorandum.  In all other respects, this term sheet is qualified in its entirety by reference to the Preliminary Offering Memorandum,
including all other documents incorporated by reference therein. References to "we," "our" and "us"
refer to ServiceSource International, Inc. and not to its consolidated subsidiaries. Terms used herein but not defined herein shall have
the respective meanings as set forth in the Preliminary Offering Memorandum. All references to dollar amounts are references to U.S.
dollars.

	
Issuer:
	
ServiceSource International, Inc. 

	

Ticker/Exchange for Common Stock ("common stock"):

	
 

"SREV"/ The NASDAQ Global Select Market.

	
Securities:
	
1.50% Convertible Senior Notes due 2018 (the "notes").

	
Principal Amount:
	
$130,000,000.

	

Option to Purchase Additional Notes:

	
$20,000,000.

	
Denominations:
	
$1,000 and multiples of $1,000 in excess thereof.

	
Ranking:
	
Senior unsecured.

	
Maturity:
	
August 1, 2018, unless earlier repurchased or converted.

	

No Redemption at Our Option:

	
We may not redeem the notes prior to the maturity date, and no "sinking
fund" is provided for the notes, which means that we are not required to redeem or retire the notes periodically.

 

                                            II-2

	
Fundamental Change:
	
If we undergo a "fundamental change" (as defined in the Preliminary Offering Memorandum under the
caption "Description of Notes-Fundamental Change Permits Holders to Require Us to Repurchase Notes") prior to the
maturity date of the notes, subject to certain conditions, holders may require us to repurchase for cash all or part of their notes in
principal amounts of $1,000 or a multiple thereof. The fundamental change repurchase price will be equal to 100% of the principal
amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date.

	

Interest and Interest Payment Dates:

	
1.50% per year 

 

Interest will accrue from August 13, 2013 and will be payable semiannually in arrears on February 1 and August 1 of
each year, beginning on February 1, 2014. 

 

	
Regular Record Dates:
	
January 15 and July 15 of each year, immediately preceding the relevant February 1 or August 1
interest payment date, as the case may be.

	
Issue Price:
	
100% of principal, plus accrued interest, if any, from August 13, 2013 if settlement occurs after that date.

	

Last Reported Sale Price of Our Common Stock on August 7, 2013:

	
 

$12.01 per share.

	
Initial Conversion Rate:
	
61.6770 shares of common stock per $1,000 principal amount of notes, subject to adjustment.

	
Initial Conversion Price:
	
Approximately $16.21 per share, subject to adjustment.

	
Conversion Premium:
	
Approximately 35% above the last reported sale price of our common stock on August 7, 2013.

	
Settlement Method:
	
Cash, shares of our common stock or a combination of cash and shares of our common stock, at our election, as
described in the Preliminary Offering Memorandum.

	

Sole Book-Running Manager:

	
Morgan Stanley & Co. LLC

	
Co-Managers:
	
JMP Securities LLC

Lazard Capital Markets LLC

Piper Jaffray & Co.

Credit Agricole Securities (USA) Inc.

Northland Securities, Inc.

	
Pricing Date:
	
August 7, 2013.

	
Trade Date:
	
August 8, 2013.

	
Expected Settlement Date:
	
August 13, 2013.

	
CUSIP Number (144A):
	
81763U AA8

	
ISIN (144A):
	
US81763UAA88

	
Listing:
	
None.

                                            II-3

	

Convertible Note Hedge and Warrant Transactions:

	
In connection with the pricing of the notes, we entered into convertible note hedge transactions with certain
financial institutions, which include certain of the initial purchasers or their respective affiliates (the "option counterparties").
We also entered into warrant transactions with the option counterparties. The convertible note hedge transactions are expected
generally to reduce the potential dilution and/or offset any cash payments we are required to make in excess of the principal amount of
converted notes, as the case may be, upon any conversion of notes in the event that the market price of our common stock is greater
than the strike price of the convertible note hedge transactions. The warrant transactions could separately have a dilutive effect to the
extent that the market price per share of our common stock exceeds the relevant strike price of the warrant transactions, unless we
elect, subject to certain conditions, to settle the warrant transactions in cash. If the initial purchasers exercise their over-allotment
option, we may enter into additional convertible note hedge and warrant transactions. See "Description of Convertible Note Hedge
and Warrant Transactions" in the Preliminary Offering Memorandum.

 

	
Net Proceeds:
	
We estimate that the net proceeds from this offering will be approximately $116.9 million ($135.0 million if the
initial purchasers exercise their over-allotment option), after deducting the initial purchasers' discount and commissions and estimated
offering expenses payable by us. 

	
Use of Proceeds:
	
We entered into convertible note hedge transactions with the option counterparties.  We also entered into warrant
transactions with the option counterparties. We intend to use approximately $8.4 million of the net proceeds from this offering to pay the
cost of the convertible note hedge transactions (after such cost is partially offset by the proceeds to us of the warrant transactions).

We intend to use the remaining net proceeds from this offering for general corporate purposes, including working capital, capital
expenditures, potential acquisitions and strategic transactions. From time to time, we evaluate potential acquisitions and strategic
transactions of businesses, technologies or products.  However, we have not designated any specific uses and have no current
agreements with respect to any material acquisition or strategic transaction.  See "Use of Proceeds" in the Preliminary
Offering Memorandum.

If the initial purchasers exercise their over-allotment option, we may sell additional warrants and use a portion of the net proceeds
from the sale of the additional notes, together with the proceeds from the additional warrant transactions, to enter into additional
convertible note hedge transactions and for general corporate purposes.

                                            II-4

	
Description of Notes-Conversion Rights-Increase in Conversion Rate upon Conversion
upon a Make-Whole Fundamental Change

	
Holders who convert their notes in connection with a make-whole fundamental
change occurring prior to the maturity date of the notes may be entitled to an increase in the conversion rate for the notes so
surrendered for conversion.

	
Make-Whole Table: The following table sets forth the number of additional shares by which the
conversion rate will be increased per $1,000 principal amount of notes for each stock price and effective date set forth
below:

	 	
Stock Price

	
Effective Date
	
$12.01
	
$13.00
	
$14.00
	
$15.00
	
$16.21
	
$18.00
	
$20.00
	
$25.00
	
$30.00
	
$35.00
	
$40.00
	
$50.00
	
$60.00

	
August 13, 2013
	
21.5869
	
19.3188
	
16.6042
	
14.3756
	
12.1768
	
9.6878
	
7.6467
	
4.5467
	
2.9245
	
1.9933
	
1.4180
	
0.7833
	
0.4633

	
August 1, 2014
	
21.5869
	
19.0084
	
16.1572
	
13.8294
	
11.5559
	
9.0113
	
6.9559
	
3.9315
	
2.4221
	
1.5931
	
1.1002
	
0.5783
	
0.3249

	
August 1, 2015
	
21.5869
	
18.4890
	
15.4575
	
13.0114
	
10.6449
	
8.0442
	
5.9994
	
3.1275
	
1.8024
	
1.1261
	
0.7493
	
0.3758
	
0.2030

	
August 1, 2016
	
21.5869
	
17.6647
	
14.3864
	
11.7757
	
9.2990
	
6.6553
	
4.6628
	
2.0941
	
1.0684
	
0.6142
	
0.3892
	
0.1869
	
0.0959

	
August 1, 2017
	
21.5869
	
16.3335
	
12.6239
	
9.7394
	
7.1016
	
4.4594
	
2.6625
	
0.7893
	
0.2865
	
0.1360
	
0.0796
	
0.0325
	
0.0076

	
August 1, 2018
	
21.5869
	
15.2461
	
9.7516
	
4.9897
	
0.0000
	
0.0000
	
0.0000
	
0.0000
	
0.0000
	
0.0000
	
0.0000
	
0.0000
	
0.0000

	
 

The exact stock prices and effective dates may not be set forth in the table above, in which case:

	If the stock price is between two stock prices in the table or the effective date is between two effective dates in the table, the
number of additional shares by which the conversion rate will be increased will be determined by a straight-line interpolation between
the number of additional shares set forth for the higher and lower stock prices and the earlier and later effective dates, as applicable,
based on a 365-day year.

	If the stock price is greater than $60.00 per share (subject to adjustment in the same manner as the stock prices set forth in the
column headings of the table above), no additional shares will be added to such conversion rate.

	If the stock price is less than $12.01 per share (subject to adjustment in the same manner as the stock prices set forth in the
column headings of the table above), no additional shares will be added to such conversion rate.

Notwithstanding the foregoing, in no event will the conversion rate per $1,000 principal amount of notes exceed 83.2639 shares of
common stock, subject to adjustment in the same manner as the conversion rate as set forth in the Preliminary Offering Memorandum
under the caption "Description of Notes - Conversion Rights -Conversion Rate Adjustments."

 

[Remainder of Page Intentionally Blank]

 

                                            II-5

CAPITALIZATION

The following table sets forth our cash, cash equivalents and short-term
investments and capitalization as of June 30, 2013: 

	on an actual basis; and 
 on an as adjusted basis to reflect the completion of this offering and to give effect to (1) the
issuance and sale of the notes in this offering (assuming the initial purchasers' over-allotment option is not exercised), after deducting
the initial purchasers' discount and commissions and estimated offering expenses payable by us, and (2) the use of proceeds
from this offering as described in "Use of Proceeds" in the Preliminary Offering Memorandum, including the use of
approximately $8.4 million of the net proceeds from this offering to pay the cost of the convertible note hedge transactions, after such
cost is partially offset by the proceeds of the warrant transactions. 

This table should be read in conjunction with "Use of Proceeds" in the Preliminary Offering
Memorandum and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained in
our Annual Report on Form 10-K for our fiscal year ended December 31, 2012 and our financial statements and related notes
thereto and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 and our financial statements and related notes
thereto, all of which are incorporated by reference into the Preliminary Offering Memorandum.  

	 	 	 
	
 
	
As of June 30, 2013 

 

	
 
	
Actual 

 
	
As Adjusted 

 

	
 
	
(in thousands)

	

Cash, cash equivalents and short-term investments

	
$132,052
	
$248,923

	
 
	
 
	
 

	
 
	
 

	

Notes offered hereby(1)

	
-
	
130,000

	

Stockholders' equity

	
 
	
 

	

Preferred stock-$0.0001 par value, 20,000 shares authorized; no shares issued and outstanding

	
-
	
-

	

Common stock-$0.0001 par value, 1,000,000 shares authorized; 79,220 shares issued and 79,099 shares
outstanding, actual and as adjusted(2)

	
8
	
8

	

Treasury Stock

	
(441)
	
(441)

	

Additional paid-in capital(1)

	
235,714
	
227,355

	

Accumulated deficit

	
(38,759)
	
(38,759)

	

Accumulated other comprehensive income

	
199
	
199

	
 
	 	 
	

Total stockholders' equity(1)

	
196,721
	
188,362

	
 
	
 
	
 

	

Total capitalization(1)(3)

	
$ 196,721
	
$318,362

	
 
	
 
	
 

______________
(1)In accordance with ASC 470-20, convertible debt that may be wholly or partially settled in cash is required to be separated
into a liability and an equity component, such that interest expense reflects the issuer's non-convertible debt interest rate.  Upon
issuance, a debt discount is recognized as a decrease in debt and an increase in equity.  The debt component will accrete up to the
principal amount ($130 million for the notes offered hereby) over the expected term of the debt.  ASC 470-20 does not affect the actual amount that we are

                                            II-6

required to repay, and the amount shown in the table above for the notes is the aggregate principal amount of the
notes and does not reflect the debt discount that we will be required to recognize in our consolidated balance sheet.  Additional paid-in
capital is reduced as a result of the net cost of the convertible note hedge transactions and warrant transactions.

(2)The number of shares of common stock issued and outstanding is based on the number of shares outstanding as of June
30, 2013, and excludes: 

	6,414,711 shares of common stock issuable upon the exercise of options outstanding as of June 30, 2013, at a weighted
average exercise price of $4.72 per share; 

	4,652,845 shares of common stock issuable upon the vesting of restricted stock units or performance-based restricted stock
units outstanding at June 30, 2013; 

	7,607,896 shares of common stock reserved for future issuance under our equity compensation plan at June 30, 2013; and

	the shares of common stock reserved for issuance upon conversion of the notes offered hereby. 

(3)Total capitalization does not include approximately $0.8 million in indebtedness for borrowed money
(including capital lease obligations).

 

 

[Remainder of Page Intentionally Blank]

 

 

__________________

This communication is intended for the sole use of the person to whom it is provided by the sender.
This material is confidential and is for your information only and is not intended to be used by anyone other than you. This information
does not purport to be a complete description of the notes or the offering.  This communication does not constitute an offer to sell or the
solicitation of an offer to buy any notes in any jurisdiction to any person to whom it is unlawful to make such offer or solicitation in such
jurisdiction.  

The notes and any shares of common stock issuable upon conversion of the notes have not been and will not be registered under
the U.S. Securities Act of 1933, as amended (the "Securities Act"), or any other securities laws, and may not be offered or
sold within the United States or any other jurisdiction, except pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act and any other applicable securities laws. The initial purchasers are initially offering the
notes only to qualified institutional buyers as defined in, and in reliance on, Rule 144A under the Securities Act. 

The notes and any shares of common stock issuable upon conversion of the notes are not transferable except in accordance with
the restrictions described under "Notice to Investors" and "Transfer Restrictions" in the Preliminary Offering
Memorandum.

A copy of the Preliminary Offering Memorandum for the offering of the notes may be obtained by contacting Morgan Stanley
& Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, by telephone at (866) 718-
1649, or by emailing prospectus@morganstanley.com.

 

Any legends, disclaimers or other notices that may appear below are not applicable to this communication and should be
disregarded.  Such legends, disclaimers or other notices have been automatically generated as a result of this communication having
been sent via Bloomberg or another system.

 

 

 

 

                                            III-1

EXHIBIT A

OPINION OF COUNSEL FOR THE COMPANY

	The Company has been duly incorporated and is an existing corporation in good standing under the
laws of the State of Delaware with corporate power and authority to own its properties and conduct its business as described in the
Final Offering Memorandum.  The Company is duly qualified to do business as a foreign corporation and is in good standing in the
State of California.

	The Purchase Agreement has been duly authorized by all necessary corporate action on the part of the
Company, and the Purchase Agreement has been duly executed and delivered by the Company. 

	The Company has all requisite corporate power to execute and deliver the Purchase Agreement and the
Securities, to perform its obligations under the terms of the Purchase Agreement and the Securities.

	The Securities being issued on the date hereof are in the form contemplated in the Indenture and have
been duly authorized by all necessary corporate action of the Company and have been duly executed by the Company and when
authenticated by the Trustee in accordance with the terms of the Indenture (which authentication we have not determined by inspection
of the Securities) and issued and delivered to the Initial Purchasers against payment of the purchase price therefor specified in the
Purchase Agreement, the Securities will constitute valid and binding obligations of the Company, enforceable against the Company in
accordance with their terms.

	The Indenture has been duly authorized by all necessary corporate action on the part of the Company and
the Indenture has been duly executed and delivered by the Company and, assuming the due authorization, execution and delivery
thereof by the Trustee, the Indenture constitutes a valid and binding instrument, enforceable against the Company in accordance with
its terms.

	The shares of Common Stock initially issuable upon conversion of the Securities (the "Shares")
have been duly authorized by all necessary corporate action on the part of the Company and the Shares, if any, when issued upon due
conversion of the Securities in accordance with the terms of the Securities and the Indenture would, if issued today, be validly issued,
fully paid and nonassessable and free of preemptive rights arising under the Certificate of Incorporation or Bylaws or the
DGCL.

                                            A-1

	The statements set forth in the General Disclosure Package and the Final Offering Memorandum under the
caption "Description of Notes" insofar as such statements purport to constitute a summary of the terms of the Indenture and
the Securities, fairly summarize such terms in all material respects.

	The statements set forth in the General Disclosure Package and the Final Offering Memorandum under the
caption "Certain U.S. Federal Income Tax Considerations," insofar as they purport to summarize the United States federal
tax laws referred to therein, fairly summarize in all material respects such laws.

	The statements set forth in the General Disclosure Package and Final Offering Memorandum
under the caption "Description of Capital Stock," insofar as such statements constitute summaries of legal matters or
documents, fairly summarize the matters and documents referred to therein in all material respect. 

	The Company is not, and after giving effect to the offering and sale of the Securities and the application of
the proceeds thereof as described in the General Disclosure Package, will not be required to be registered as, an "investment
company," as such term is defined in the Investment Company Act.

	None of the issuance and sale of the Securities being delivered on the date hereof, the execution, delivery
and performance by the Company of its obligations under the Purchase Agreement, the Indenture and the Securities or the
consummation of the transactions contemplated thereby will (i) violate the Certificate of Incorporation or Bylaws, (ii) conflict with, result
in a breach or violation by the Company of any of the terms or provisions of, or constitute a default by the Company under any
Reviewed Agreement, or (iii) result in a violation of any U.S. federal, New York or California state statute, or the DGCL, or decree,
regulation or order known to us to be applicable to the Company of any U.S. federal, New York or California state court, governmental
authority or agency having jurisdiction over the Company or any of its properties.  

	No consent, approval, authorization, order, registration or qualification of or with any U.S. federal, New
York, California or Delaware (solely with respect to the DGCL) governmental agency or body or court is required for the issue and sale
by the Company of the Securities or the consummation by the Company of the transactions contemplated by the Purchase Agreement
or the Indenture, except (i) such as have been obtained under the Securities Act, (ii) such as may be required under state securities or
Blue Sky laws, and (iii) as contemplated by the Operative Documents.

                                            A-2

	Assuming the accuracy of the Initial Purchasers' representations contained in the Purchase Agreement and the accuracy of the
Company's representations contained in the Purchase Agreement, no registration of the Securities or the Shares is required under the
Securities Act for the sale of the Securities by the Company to the Initial Purchasers pursuant to the Purchase Agreement and the
Indenture or for the initial resale of the Securities by the Initial Purchasers in the manner contemplated by the Purchase Agreement, the
General Disclosure Package and the Final Offering Memorandum, and it is not necessary to qualify the Indenture under the Trust
Indenture Act (it being understood that, in each case, no opinion is expressed as to any subsequent resale of the Securities or the
consequences thereof).

 

 

 

                                            A-3

EXHIBIT B

FORM OF LOCK-UP LETTER

 

            _____________, 2013

 

Morgan Stanley & Co. LLC

1585 Broadway

New York, NY 10036

 

Ladies and Gentlemen:

The undersigned understands that Morgan Stanley & Co. LLC ("Morgan Stanley") proposes to enter into a
Purchase Agreement (the "Purchase Agreement") with ServiceSource International, Inc., a Delaware corporation
(the "Company"), providing for the offering (the "Offering") by the several Initial Purchasers,
including Morgan Stanley (the "Initial Purchasers"), of its Convertible Senior Notes due 2018 (the
"Securities").  The Securities will be convertible into cash, shares of Common Stock, par value $0.0001 per share,
of the Company (the "Common Stock") or a combination thereof, at the Company's election.

To induce the Initial Purchasers that may participate in the Offering to continue their efforts in connection with the Offering, the
undersigned hereby agrees that, without the prior written consent of Morgan Stanley on behalf of the Initial Purchasers, it will not,
during the period commencing on the date hereof and ending 90 days after the date of the final offering memorandum (the
"Restricted Period") relating to the Offering (the "Final Memorandum"), (1) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or
contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares
of Common Stock beneficially owned (as such term is used in Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the
"Exchange Act")), by the undersigned or any other securities so owned convertible into or exercisable or
exchangeable for Common Stock ("Other Securities") or (2) enter into any
swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the
Common Stock, whether any such transaction described in clause (1) or (2) above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise.
The foregoing sentence shall not apply to (a) transactions relating to shares of Common Stock or other securities acquired in open
market transactions after the completion of the Offering, provided that no filing under Section 16(a) of the Exchange Act
shall be required or shall be voluntarily made in connection with subsequent sales of Common Stock or other securities acquired in
such open market transactions; (b) transfers of shares of Common Stock or any security convertible into Common Stock as a

                                            B-1

bona fide gift or gifts or to any trust for the direct or indirect benefit of the undersigned or the immediate family of the undersigned (for purposes of
this lock-up letter agreement, "immediate family" shall mean any relationship by blood, marriage or adoption, not more
remote than first cousin); (c) distributions of shares of Common Stock or any security convertible into Common Stock to limited partners
or stockholders of the undersigned or to the undersigned's affiliates or to any investment fund or other entity controlled or managed by
the undersigned; (d) transfers or distributions of shares of Common Stock to a corporation or other entity of which the undersigned
and/or its immediate family are at all times the direct or indirect legal and beneficial owners of all the outstanding equity securities or
similar interests of such corporation or other entity; provided that in the case of any transfer or distribution pursuant to
clause (b), (c) or (d), (i) each donee or distributee shall sign and deliver a lock-up letter agreement substantially in the form of this
letter and (ii) no filing under Section 16(a) of the Exchange Act, reporting a reduction in beneficial ownership of
shares of Common Stock, shall be required or shall be voluntarily made during the Restricted Period referred to in the foregoing
sentence; (e) dispositions to the Company pursuant to the right of the Company to repurchase from the undersigned or the obligation or
election of the undersigned to sell or transfer to the Company, including to satisfy tax withholding obligations, shares of Common Stock
issued under the Company's equity incentive plans or under agreements pursuant to which such shares were issued; (f) the exercise,
exchange or conversion of any Other Securities into shares of Common Stock (g) transfers of shares of Common Stock under a trading
plan pursuant to Rule 10b5-1 under the Exchange Act (a "10b5-1 Plan") that has been established by the
undersigned prior to the date of this agreement and of which Morgan Stanley or its counsel has been made aware; or (h) the
establishment of a 10b5-1 Plan for the transfer of shares of Common Stock, provided that such plan does not provide for the transfer of
Common Stock during the Restricted Period and no public announcement or filing under the Exchange Act regarding the establishment
of such plan shall be required of or voluntarily made by or on behalf of the undersigned or the Company. In addition, the undersigned
agrees that, without the prior written consent of Morgan Stanley on behalf of the Initial Purchasers, it will not, during the Restricted
Period, make any demand for or exercise any right with respect to, the registration of any shares of Common Stock or any security
convertible into or exercisable or exchangeable for Common Stock. The undersigned also agrees and consents to the entry of stop
transfer instructions with the Company's transfer agent and registrar against the transfer of the undersigned's shares of Common Stock
except in compliance with the foregoing restrictions.

The undersigned understands that the Company and the Initial Purchasers are relying upon this agreement in proceeding toward
consummation of the Offering.  The undersigned further understands that this agreement is irrevocable and shall be binding upon the
undersigned's heirs, legal representatives, successors and assigns.

Whether or not the Offering actually occurs depends on a number of factors, including market conditions.  Any Offering will only be
made pursuant to a Purchase Agreement, the terms of which are subject to negotiation between the Company and the Initial
Purchasers.

                                            B-2

Notwithstanding anything to the contrary contained in this lock-up letter agreement, this lock-up letter agreement shall automatically
terminate if (1) prior to completion of the Offering, the Company informs Morgan Stanley, or Morgan Stanley, on behalf of the Initial
Purchasers, informs the Company, in writing, of their intent not to proceed with the Offering or (2) the completion of the Offering has not
occurred on or before October 1, 2013.  

	
Very truly yours,

	
(Name)

	
(Address)

 

 

                                            B-3

EXHIBIT C

FORM OF CHIEF FINANCIAL OFFICER CERTIFICATE

This certificate has been prepared in connection with the unregistered offering of ServiceSource International,
Inc., a Delaware corporation (the "Company"), pursuant to Section 5(g) of the Purchase Agreement dated August
7, 2013 (the "Purchase Agreement"), between the Company and Morgan Stanley & Co. LLC, acting on behalf
of itself and the several Initial Purchasers named in Schedule I thereto (the "Initial Purchasers").  

 

The purpose of this certificate is to assist the Initial Purchasers in conducting and documenting their investigation of the affairs of
the Company in connection with the offering.  Capitalized terms used but not defined in this certificate have the meaning ascribed to
them in the Purchase Agreement.

*************

Key Business Metrics.  Attached hereto as Exhibits A-1 and A-2 are excerpts from the Time of Sale
Memorandum and the Final Memorandum, respectively, (each, a "Memorandum" and, collectively, the
"Memoranda"), each containing the following key business metrics of the Company (collectively, the
"Metrics"):

	certain financial information related to the Company's estimate, as of a given date, of the value of all end customer service
contracts that the Company will have the opportunity to sell on behalf of its customers over the subsequent twelve-month period (the
"Service Revenue Opportunity Under Management"); 

	the number of engagements the Company calculates that it had with its customers as of certain specified dates (the
"Number of Engagements"); 

	the number of customers the Company calculates that it had as of certain specified dates (the "Number of
Customers"); and

	the number of renewal transactions that the Company calculates it has managed since its inception (the "Number of
Transactions").

Each Memorandum summarizes the methodologies employed in calculating the Metrics as of and for the periods presented in
Exhibits A-1 and A-2.  Attached hereto as Exhibit B is a compact disc containing electronic copies of
schedules supporting the amounts disclosed in the Memoranda for the Metrics (the "Metrics Schedules").

*************

In connection with the offering, I, Ashley Johnson, the Chief Financial Officer of the Company, certify the following to the Initial
Purchasers on behalf of the Company:

Key Business Metrics

	Each Memorandum contains a summary of the methodologies that have been applied by the

Company in calculating each Metric.
If more than one date or period is presented, such methodology have been consistently applied in all material respects for each such
date or period for which such data is presented in Exhibits A-1 and A-2. 

	To my knowledge, the financial and/or operational information, as applicable, used in deriving each Metric has been
accurately compiled from the books and records of the Company, including, where applicable, the Company's internal accounting
records, by employees of the Company and reviewed by members of the Company's financial accounting staff responsible for financial
and accounting matters, as well as members of the Company's operating staff responsible for operating matters.

	I or members of my staff have read the amount marked in Exhibits A-1 and A-2 for each Metric. Nothing
has come to my attention that would lead me to believe that any amount circled on Exhibits A-1 and A-2 is inaccurate
with respect to the applicable Metric or not fairly, accurately and consistently derived from the applicable Metrics Schedules.  To the extent that an amount circled on Exhibits A-1 and A-2 with
respect to an applicable Metric relies on estimates or assumptions, nothing has come to my attention that would lead me to believe that
such estimates and assumptions were not made in good faith or were unreasonable or unreliable.

 

 

 

IN WITNESS WHEREOF, this certificate is executed on this ____ day of August, 2013.

SERVICESOURCE INTERNATIONAL, INC.

 

__________________________

   Ashley Johnson

Chief Financial Officer

 

 

 

 

 

 

 

 

[Signature Page to Chief Financial Officer's Certificate]

Exhibit A-1

Circle-up of pages from the Time of Sale Memorandum

                  disclosing Key Business Metrics

 

 

 

 

Exhibit A-2

Circle-up of pages from the Final Memorandum

                  disclosing Key Business Metrics

 

 

 

 

Exhibit B

 

Metrics Schedules

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