Document:

2012 Equity Incentive Plan

 Exhibit 10.4 
 SYNACOR, INC. 
 2012 EQUITY
INCENTIVE PLAN 
 (AS ADOPTED JANUARY 16,
2012) 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	 ARTICLE 1. INTRODUCTION
	  	 	1	  
		
	 ARTICLE 2. ADMINISTRATION
	  	 	1	  
	 2.1
	  	General	  	 	1	  
	 2.2
	  	Section 162(m)	  	 	1	  
	 2.3
	  	Section 16	  	 	1	  
	 2.4
	  	Powers of Administrator	  	 	1	  
	 2.5
	  	Effect of Administrator’s Decisions	  	 	2	  
	 2.6
	  	Governing Law	  	 	2	  
		
	 ARTICLE 3. SHARES AVAILABLE FOR GRANTS
	  	 	2	  
	 3.1
	  	Basic Limitation	  	 	2	  
	 3.2
	  	Annual Increase in Shares	  	 	2	  
	 3.3
	  	Shares Returned to Reserve	  	 	2	  
	 3.4
	  	Stock Awards Not Reducing Share Reserve	  	 	3	  
	 3.5
	  	Code Section 162(m) and 422 Limits	  	 	3	  
		
	ARTICLE 4. ELIGIBILITY	  	 	3	  
	 4.1
	  	Incentive Stock Options	  	 	3	  
	 4.2
	  	Other Awards	  	 	3	  
		
	 ARTICLE 5. OPTIONS
	  	 	4	  
	 5.1
	  	Stock Option Agreement	  	 	4	  
	 5.2
	  	Number of Shares	  	 	4	  
	 5.3
	  	Exercise Price	  	 	4	  
	 5.4
	  	Exercisability and Term	  	 	4	  
	 5.5
	  	Death of Optionee	  	 	4	  
	 5.6
	  	Modification or Assumption of Options	  	 	4	  
	 5.7
	  	Buyout Provisions	  	 	4	  
	 5.8
	  	Payment for Option Shares	  	 	5	  
		
	 ARTICLE 6. STOCK APPRECIATION RIGHTS
	  	 	5	  
	 6.1
	  	SAR Agreement	  	 	5	  
	 6.2
	  	Number of Shares	  	 	5	  
	 6.3
	  	Exercise Price	  	 	5	  
	 6.4
	  	Exercisability and Term	  	 	6	  
	 6.5
	  	Exercise of SARs	  	 	6	  
	 6.6
	  	Death of Optionee	  	 	6	  
	 6.7
	  	Modification or Assumption of SARs	  	 	6	  
		
	 ARTICLE 7. RESTRICTED SHARES
	  	 	6	  
	 7.1
	  	Restricted Stock Agreement	  	 	6	  
	 7.2
	  	Payment for Awards	  	 	6	  
	 7.3
	  	Vesting Conditions	  	 	7	  

  
 i 

							
	 7.4
	  	Voting and Dividend Rights	  	 	7	  
		
	 ARTICLE 8. STOCK UNITS
	  	 	7	  
	 8.1
	  	Stock Unit Agreement	  	 	7	  
	 8.2
	  	Payment for Awards	  	 	7	  
	 8.3
	  	Vesting Conditions	  	 	7	  
	 8.4
	  	Voting and Dividend Rights	  	 	7	  
	 8.5
	  	Form and Time of Settlement of Stock Units	  	 	8	  
	 8.6
	  	Death of Recipient	  	 	8	  
	 8.7
	  	Modification or Assumption of Stock Units	  	 	8	  
	 8.8
	  	Creditors’ Rights	  	 	8	  
		
	 ARTICLE 9. ADJUSTMENTS; DISSOLUTIONS AND LIQUIDATIONS; AND CORPORATE TRANSACTIONS
	  	 	8	  
	 9.1
	  	Adjustments	  	 	8	  
	 9.2
	  	Dissolution or Liquidation	  	 	9	  
	 9.3
	  	Corporate Transactions	  	 	9	  
		
	 ARTICLE 10. OTHER AWARDS
	  	 	10	  
	 10.1
	  	Performance Cash Awards	  	 	10	  
	 10.2
	  	Awards Under Other Plans	  	 	11	  
		
	 ARTICLE 11. LIMITATION ON RIGHTS
	  	 	11	  
	 11.1
	  	Retention Rights	  	 	11	  
	 11.2
	  	Stockholders’ Rights	  	 	11	  
	 11.3
	  	Regulatory Requirements	  	 	11	  
	 11.4
	  	Transferability of Awards	  	 	11	  
	 11.5
	  	Other Conditions and Restrictions on Common Shares	  	 	12	  
		
	 ARTICLE 12. TAXES
	  	 	12	  
	 12.1
	  	General	  	 	12	  
	 12.2
	  	Share Withholding	  	 	12	  
	 12.3
	  	Section 162(m) Matters	  	 	12	  
	 12.4
	  	Section 409A Matters	  	 	12	  
	 12.5
	  	Limitation on Liability	  	 	13	  
		
	 ARTICLE 13. FUTURE OF THE PLAN
	  	 	13	  
	 13.1
	  	Term of the Plan	  	 	13	  
	 13.2
	  	Amendment or Termination	  	 	13	  
	 13.3
	  	Stockholder Approval	  	 	13	  
		
	 ARTICLE 14. DEFINITIONS
	  	 	13	  

  
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 SYNACOR, INC. 

2012 EQUITY INCENTIVE PLAN 

ARTICLE 1. INTRODUCTION. 
 The Board adopted the Plan to become effective immediately, although no Awards may be granted prior to the IPO Date. The purpose of the Plan is to promote the long-term success of the Company and the
creation of stockholder value by (a) encouraging Service Providers to focus on critical long-range corporate objectives, (b) encouraging the attraction and retention of Service Providers with exceptional qualifications and (c) linking
Service Providers directly to stockholder interests through increased stock ownership. The Plan seeks to achieve this purpose by providing for Awards in the form of Options (which may constitute ISOs or NSOs), SARs, Restricted Shares, Stock Units
and Performance Cash Awards. 
 ARTICLE 2. ADMINISTRATION. 

2.1 General. The Plan may be administered by the Board or one or more Committees. Each Committee shall have the authority and be
responsible for such functions as have been assigned to it. 
 2.2 Section 162(m). To the extent an Award is
intended to qualify as “performance-based compensation” within the meaning of Code Section 162(m), the Plan will be administered by a Committee of two or more “outside directors” within the meaning of Code
Section 162(m). 
 2.3 Section 16. To the extent desirable to qualify transactions hereunder as exempt under
Exchange Act Rule 16b-3, the transactions contemplated hereunder will be approved by the entire Board or a Committee of two or more “non-employee directors” within the meaning of Exchange Act Rule 16b-3. 

2.4 Powers of Administrator. Subject to the terms of the Plan, and in the case of a Committee, subject to the specific duties
delegated to the Committee, the Administrator shall have the authority to (a) select the Service Providers who are to receive Awards under the Plan, (b) determine the type, number, vesting requirements and other features and conditions of
such Awards, (c) determine whether and to what extent any Performance Goals have been attained, (d) interpret the Plan and Awards granted under the Plan, (e) make, amend and rescind rules relating to the Plan and Awards granted under
the Plan, including rules relating to sub-plans established for the purposes of satisfying applicable foreign laws or for qualifying for favorable tax treatment under applicable foreign laws, (f) impose such restrictions, conditions or
limitations as it determines appropriate as to the timing and manner of any resales by a Participant of any Common Shares issued pursuant to an Award, including restrictions under an insider trading policy and restrictions as to the use of a
specified brokerage firm for such resales, and (g) make all other decisions relating to the operation of the Plan and Awards granted under the Plan. 

  

 2.5 Effect of Administrator’s Decisions. The Administrator’s decisions,
determinations and interpretations shall be final and binding on all Participants and any other holders of Awards. 
 2.6
Governing Law. The Plan shall be governed by, and construed in accordance with, the laws of the State of Delaware (except its choice-of-law provisions). 
 ARTICLE 3. SHARES AVAILABLE FOR GRANTS. 
 3.1 Basic Limitation.
Common Shares issued pursuant to the Plan may be authorized but unissued shares or treasury shares. The aggregate number of Common Shares issued under the Plan shall not exceed the sum of (a) 2,000,000 Common Shares (subject to adjustment
pursuant to a stock split to be effected prior to the IPO Date), plus (b) the number of Common Shares reserved under the Company’s Predecessor Plans that are not issued or subject to awards outstanding under the Predecessor Plans on the
IPO Date, (c) any Common Shares subject to outstanding options under the Company’s Predecessor Plans on the IPO Date that subsequently expire or lapse unexercised and Common Shares issued pursuant to awards granted under the Predecessor
Plans that are outstanding on the IPO Date and that are subsequently forfeited to or repurchased by the Company, and (d) the additional Common Shares described in Section 3.2; provided however, that no more than 14,548,555 Common Shares
(subject to adjustment pursuant to a stock split to be effected prior to the IPO Date), in the aggregate, shall be added to the Plan pursuant to clauses (b) and (c). The number of Common Shares that are subject to Stock Awards outstanding at
any time under the Plan may not exceed the number of Common Shares that then remain available for issuance under the Plan. The numerical limitations in this Section 3.1 shall be subject to adjustment pursuant to Article 9. 

3.2 Annual Increase in Shares. As of the first business day of each fiscal year of the Company during the term of the Plan,
beginning on January 1, 2013 and ending on (and including) January 1, 2022, the aggregate number of Common Shares that may be issued under the Plan shall automatically increase by a number equal to the least of (a) 4% of the total
number of Common Shares outstanding on December 31 of the prior year, (b) 2,500,000 Common Shares (subject to adjustment pursuant to Article 9 and a stock split to be effected prior to the IPO Date) or (c) a number of Common Shares
determined by the Board. 
 3.3 Shares Returned to Reserve. To the extent that Options, SARs or Stock Units are forfeited
or expire for any other reason before being exercised or settled in full, the Common Shares subject to such Options, SARs or Stock Units shall again become available for issuance under the Plan. If SARs are exercised, then only the number of Common
Shares (if any) actually issued to the Participant in settlement of such SARs shall reduce the number available under Section 3.1 and the balance shall again become available for issuance under the Plan. If Stock Units are settled, then only
the number of Common Shares (if any) actually issued to the Participant in settlement of such Stock Units shall reduce the number available under Section 3.1 and the balance shall again become available for issuance under the Plan. If
Restricted Shares or Common Shares issued upon the exercise of Options are reacquired by the Company pursuant to a forfeiture provision, repurchase right or for any other reason prior to the shares having become vested, then such Common Shares shall
again become available for issuance under the Plan. Common Shares applied to pay the Exercise Price of Options or to 

  
 2 

 
satisfy tax withholding obligations related to any Award shall again become available for issuance under the Plan. To the extent that an Award is settled in cash rather than Common Shares, the
cash settlement shall not reduce the number of Shares available for issuance under the Plan. 
 3.4 Stock Awards Not Reducing
Share Reserve. Any dividend equivalents paid or credited under the Plan with respect to Stock Units shall not be applied against the number of Common Shares that may be issued under the Plan, whether or not such dividend equivalents are
converted into Stock Units. In addition, Common Shares subject to Substitute Awards granted by the Company shall not reduce the number of Common Shares that may be issued under Section 3.1, nor shall shares subject to Substitute Awards again be
available for Stock Awards under the Plan in the event of any forfeiture, expiration or cash settlement of such Substitute Awards. 
 3.5 Code Section 162(m) and 422 Limits. Subject to adjustment pursuant to Article 9: 
  

	 	a)	The aggregate number of Common Shares subject to Options and SARs that may be granted under this Plan during any calendar year to any one Participant shall not exceed
2,000,000 (subject to adjustment pursuant to a stock split to be effected prior to the IPO Date); 

  

	 	b)	The aggregate number of Common Shares subject to Restricted Share awards and Stock Units that may be granted under this Plan during any calendar year to any one
Participant shall not exceed 2,000,000 (subject to adjustment pursuant to a stock split to be effected prior to the IPO Date); 

  

	 	c)	No Participant shall be paid more than $5,000,000 in cash in any calendar year pursuant to Performance Cash Awards granted under the Plan; and 

 

	 	d)	No more than 16,286,555 Common Shares (subject to adjustment pursuant to a stock split to be effected prior to the IPO Date) plus the additional Common Shares described
in Section 3.2 may be issued under the Plan upon the exercise of ISOs. 

 ARTICLE 4. ELIGIBILITY.

 4.1 Incentive Stock Options. Only Employees who are common-law employees of the Company, a Parent or a Subsidiary
shall be eligible for the grant of ISOs. In addition, an Employee who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company or any of its Parents or Subsidiaries shall not be eligible for the grant
of an ISO unless the additional requirements set forth in Code Section 422(c)(5) are satisfied. 
 4.2 Other Awards.
Awards other than ISOs may only be granted to Service Providers. 

  
 3 

 ARTICLE 5. OPTIONS. 

5.1 Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between the
Optionee and the Company. Such Option shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The Stock Option Agreement shall specify whether the Option is an ISO or an
NSO. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical. 
 5.2 Number
of Shares. Each Stock Option Agreement shall specify the number of Common Shares subject to the Option, which number shall adjust in accordance with Article 9. 
 5.3 Exercise Price. Each Stock Option Agreement shall specify the Exercise Price, which shall not be less than 100% of the Fair Market Value of a Common Share on the date of grant. The preceding
sentence shall not apply to an Option that is a Substitute Award granted in a manner that would satisfy the requirements of Code Section 409A and, if applicable, Code Section 424(a). 

5.4 Exercisability and Term. Each Stock Option Agreement shall specify the date or event when all or any installment of the Option
is to become vested and/or exercisable. The Stock Option Agreement shall also specify the term of the Option; provided that, except to the extent necessary to comply with applicable foreign laws, the term of an Option shall in no event exceed
10 years from the date of grant. A Stock Option Agreement may provide for accelerated vesting and/or exercisability in the event of a Change in Control, the Optionee’s death or disability or other events and may provide for expiration
prior to the end of its term in the event of the termination of the Optionee’s Service. 
 5.5 Death of Optionee.
After an Optionee’s death, any vested and exercisable Options held by such Optionee may be exercised by his or her beneficiary or beneficiaries. Each Optionee may designate one or more beneficiaries for this purpose by filing the prescribed
form with the Company. A beneficiary designation may be changed by filing the prescribed form with the Company at any time before the Optionee’s death. If no beneficiary was designated or if no designated beneficiary survives the Optionee, then
any vested and exercisable Options held by the Optionee may be exercised by his or her estate. 
 5.6 Modification or
Assumption of Options. Within the limitations of the Plan, the Administrator may modify, reprice, extend or assume outstanding options or may accept the cancellation of outstanding options (whether granted by the Company or by another issuer) in
return for the grant of new Options for the same or a different number of shares and at the same or a different exercise price or in return for the grant of a different type of Award. The foregoing notwithstanding, no modification of an Option
shall, without the consent of the Optionee, impair his or her rights or obligations under such Option. 
 5.7 Buyout
Provisions. The Administrator may at any time (a) offer to buy out for a payment in cash or cash equivalents an Option previously granted or (b) authorize an Optionee to elect to cash out an Option previously granted, in either case at
such time and based upon such terms and conditions as the Administrator shall establish. 

  
 4 

 5.8 Payment for Option Shares. The entire Exercise Price of Common Shares issued upon
exercise of Options shall be payable in cash or cash equivalents at the time when such Common Shares are purchased. In addition, the Administrator may, in its sole discretion and to the extent permitted by applicable law, accept payment of all or a
portion of the Exercise Price through any one or a combination of the following forms or methods: 
  

	 	a)	Subject to any conditions or limitations established by the Administrator, by surrendering, or attesting to the ownership of, Common Shares that are already owned by
the Optionee with a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Common Shares as to which such Option will be exercised; 

 

	 	b)	By delivering (on a form prescribed by the Company) an irrevocable direction to a securities broker approved by the Company to sell all or part of the Common Shares
being purchased under the Plan and to deliver all or part of the sales proceeds to the Company; 

  

	 	c)	Subject to such conditions and requirements as the Administrator may impose from time to time, through a net exercise procedure; 

 

	 	d)	By delivering a full-recourse promissory note, on such terms approved by the Administrator; or 

 

	 	e)	Through any other form or method consistent with applicable laws, regulations and rules. 

ARTICLE 6. STOCK APPRECIATION RIGHTS. 
 6.1 SAR Agreement. Each grant of an SAR under the Plan shall be evidenced by an SAR Agreement between the Optionee and the Company. Such SAR shall be subject to all applicable terms of the Plan and
may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various SAR Agreements entered into under the Plan need not be identical. 
 6.2 Number of Shares. Each SAR Agreement shall specify the number of Common Shares to which the SAR pertains, which number shall adjust in accordance with Article 9. 

6.3 Exercise Price. Each SAR Agreement shall specify the Exercise Price, which shall in no event be less than 100% of the Fair
Market Value of a Common Share on the date of grant. The preceding sentence shall not apply to an SAR that is a Substitute Award granted in a manner that would satisfy the requirements of Code Section 409A. 

  
 5 

 6.4 Exercisability and Term. Each SAR Agreement shall specify the date when all or
any installment of the SAR is to become vested and exercisable. The SAR Agreement shall also specify the term of the SAR; provided that the term of a SAR shall in no event exceed 10 years from the date of grant. An SAR Agreement may provide for
accelerated vesting and exercisability in the event of a Change in Control, the Optionee’s death or disability or other events and may provide for expiration prior to the end of its term in the event of the termination of the Optionee’s
Service. 
 6.5 Exercise of SARs. Upon exercise of an SAR, the Optionee (or any person having the right to exercise the
SAR after his or her death) shall receive from the Company (a) Common Shares, (b) cash or (c) a combination of Common Shares and cash, as the Administrator shall determine. The amount of cash and/or the Fair Market Value of Common
Shares received upon exercise of SARs shall, in the aggregate, not exceed the amount by which the Fair Market Value (on the date of surrender) of the Common Shares subject to the SARs exceeds the Exercise Price. If, on the date when an SAR expires,
the Exercise Price is less than the Fair Market Value on such date but any portion of such SAR has not been exercised or surrendered, then such SAR shall automatically be deemed to be exercised as of such date with respect to such portion. A SAR
Agreement may also provide for an automatic exercise of the SAR on an earlier date. 
 6.6 Death of Optionee. After an
Optionee’s death, any vested and exercisable SARs held by such Optionee may be exercised by his or her beneficiary or beneficiaries. Each Optionee may designate one or more beneficiaries for this purpose by filing the prescribed form with the
Company. A beneficiary designation may be changed by filing the prescribed form with the Company at any time before the Optionee’s death. If no beneficiary was designated or if no designated beneficiary survives the Optionee, then any vested
and exercisable SARs held by the Optionee at the time of his or her death may be exercised by his or her estate. 
 6.7
Modification or Assumption of SARs. Within the limitations of the Plan, the Administrator may modify, reprice, extend or assume outstanding stock appreciation rights or may accept the cancellation of outstanding stock appreciation rights
(whether granted by the Company or by another issuer) in return for the grant of new SARs for the same or a different number of shares and at the same or a different exercise price or in return for the grant of a different type of Award. The
foregoing notwithstanding, no modification of an SAR shall, without the consent of the Optionee, impair his or her rights or obligations under such SAR. 
 ARTICLE 7. RESTRICTED SHARES. 
 7.1 Restricted Stock Agreement. Each
grant of Restricted Shares under the Plan shall be evidenced by a Restricted Stock Agreement between the recipient and the Company. Such Restricted Shares shall be subject to all applicable terms of the Plan and may be subject to any other terms
that are not inconsistent with the Plan. The provisions of the various Restricted Stock Agreements entered into under the Plan need not be identical. 
 7.2 Payment for Awards. Restricted Shares may be sold or awarded under the Plan for such consideration as the Administrator may determine, including (without limitation) cash, cash equivalents,
property, cancellation of other equity awards, full-recourse promissory notes, past services and future services, and such other methods of payment as are permitted by applicable law. 

  
 6 

 7.3 Vesting Conditions. Each Award of Restricted Shares may or may not be subject to
vesting and/or other conditions, as the Administrator may determine. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Restricted Stock Agreement. Such conditions, at the Administrator’s
discretion, may include one or more Performance Goals. A Restricted Stock Agreement may provide for accelerated vesting in the event of a Change in Control, the Participant’s death or disability or other events. 

7.4 Voting and Dividend Rights. The holders of Restricted Shares awarded under the Plan shall have the same voting, dividend and
other rights as the Company’s other stockholders, unless the Administrator otherwise provides. A Restricted Stock Agreement, however, may require that any cash dividends paid on Restricted Shares (a) be accumulated and paid when such
Restricted Shares vest or (b) be invested in additional Restricted Shares. Such additional Restricted Shares shall be subject to the same conditions and restrictions as the shares subject to the Award with respect to which the dividends were
paid. In addition, unless the Administrator provides otherwise, if any dividends or other distributions are paid in Common Shares, such Common Shares shall be subject to the same restrictions on transferability and forfeitability as the Restricted
Shares with respect to which they were paid. 
 ARTICLE 8. STOCK UNITS. 

8.1 Stock Unit Agreement. Each grant of Stock Units under the Plan shall be evidenced by a Stock Unit Agreement between the
recipient and the Company. Such Stock Units shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Stock Unit Agreements entered into under
the Plan need not be identical. 
 8.2 Payment for Awards. To the extent that an Award is granted in the form of Stock
Units, no cash consideration shall be required of the Award recipients. 
 8.3 Vesting Conditions. Each Award of Stock
Units may or may not be subject to vesting, as determined by the Administrator. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Stock Unit Agreement. Such conditions, at the Administrator’s
discretion, may include one or more Performance Goals. A Stock Unit Agreement may provide for accelerated vesting in the event of a Change in Control, the Participant’s death or disability or other events. 

8.4 Voting and Dividend Rights. The holders of Stock Units shall have no voting rights. Prior to settlement or forfeiture, Stock
Units awarded under the Plan may, at the Administrator’s discretion, provide for a right to dividend equivalents. Such right entitles the holder to be credited with an amount equal to all cash dividends paid on the shares subject to the Stock
Units while the Award is outstanding. Dividend equivalents may be converted, at the discretion of the Administrator, into additional Stock Units. Settlement of dividend equivalents may be made in the form of cash, in the form of Common Shares, or in
a combination of both, at the discretion of the Administrator. Prior to distribution, any dividend equivalents shall be subject to the same conditions and restrictions as the Stock Units to which they attach. 

  
 7 

 8.5 Form and Time of Settlement of Stock Units. Settlement of vested Stock Units may
be made in the form of (a) cash, (b) Common Shares or (c) any combination of both, as determined by the Administrator. The actual number of Stock Units eligible for settlement may be larger or smaller than the number included in the
original Award, based on predetermined performance factors, including Performance Goals. Methods of converting Stock Units into cash may include (without limitation) a method based on the average Fair Market Value of Common Shares over a series of
trading days. Vested Stock Units shall be settled in such manner and at such time(s) as specified in the Stock Unit Agreement. Until an Award of Stock Units is settled, the number of such Stock Units shall be subject to adjustment pursuant to
Article 9. 
 8.6 Death of Recipient. Any Stock Units Award that becomes payable after the recipient’s death
shall be distributed to the recipient’s beneficiary or beneficiaries. Each recipient of a Stock Units Award under the Plan may designate one or more beneficiaries for this purpose by filing the prescribed form with the Company. A beneficiary
designation may be changed by filing the prescribed form with the Company at any time before the Award recipient’s death. If no beneficiary was designated or if no designated beneficiary survives the Award recipient, then any Stock Units Award
that becomes payable after the recipient’s death shall be distributed to the recipient’s estate. 
 8.7
Modification or Assumption of Stock Units. Within the limitations of the Plan, the Administrator may modify or assume outstanding stock units or may accept the cancellation of outstanding Stock units (whether granted by the Company or by another
issuer) in return for the grant of new Stock units for the same or a different number of shares or in return for the grant of a different type of Award. The foregoing notwithstanding, no modification of a Stock Unit shall, without the consent of the
Participant, impair his or her rights or obligations under such Stock Unit. 
 8.8 Creditors’ Rights. A holder of
Stock Units shall have no rights other than those of a general creditor of the Company. Stock Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Stock Unit Agreement.

 ARTICLE 9. ADJUSTMENTS; DISSOLUTIONS AND LIQUIDATIONS; AND CORPORATE TRANSACTIONS. 

9.1 Adjustments. In the event of a subdivision of the outstanding Common Shares, a declaration of a dividend payable in Common
Shares or a combination or consolidation of the outstanding Common Shares (by reclassification or otherwise) into a lesser number of Common Shares, corresponding proportionate adjustments shall automatically be made in each of the following:

  

	 	a)	The number and kind of shares available for issuance under Article 3, including the numerical share limits in Sections 3.1, 3.2 and 3.5; 

  
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	 	b)	The number and kind of shares covered by each outstanding Option, SAR and Stock Unit; and 

 

	 	c)	The Exercise Price applicable to each outstanding Option and SAR and the repurchase price, if any, applicable to Restricted Shares. 

In the event of a declaration of an extraordinary dividend payable in a form other than Common Shares in an amount that has a material effect on the
price of Common Shares, a recapitalization, a spin-off or a similar occurrence, the Administrator shall make such adjustments as it, in its sole discretion, deems appropriate in one or more of the foregoing. Any adjustment in the number of and kind
of shares subject to an Award under this Section 9.1 shall be rounded down to the nearest whole share, although the Administrator in its sole discretion may make a cash payment in lieu of a fractional share. Except as provided in this
Article 9, a Participant shall have no rights by reason of any issuance by the Company of stock of any class or securities convertible into stock of any class, any subdivision or consolidation of shares of stock of any class, the payment of any
stock dividend or any other increase or decrease in the number of shares of stock of any class. 
 9.2 Dissolution or
Liquidation. To the extent not previously exercised or settled, Options, SARs and Stock Units shall terminate immediately prior to the dissolution or liquidation of the Company. 

9.3 Corporate Transactions. In the event that the Company is a party to a merger, consolidation or Change in Control (other than
one described in Section 14.7(c)), all Common Shares acquired under the Plan and all Stock Awards outstanding on the effective date of the transaction shall be treated in the manner described in the definitive transaction agreement (or, in the
event the transaction does not entail a definitive agreement to which the Company is party, in the manner determined by the Administrator, with such determination having final and binding effect on all parties), which agreement or determination need
not treat all Stock Awards (or portions thereof) in an identical manner. Unless an Award Agreement provides otherwise, the treatment specified in the transaction agreement or by the Administrator shall include one or more of the following with
respect to each outstanding Stock Award: 
  

	 	a)	The continuation of such outstanding Stock Award by the Company (if the Company is the surviving entity); 

 

	 	b)	The assumption of such outstanding Stock Award by the surviving entity or its parent, provided that the assumption of an Option or SAR shall comply with applicable tax
requirements; 

  

	 	c)	The substitution by the surviving entity or its parent of an equivalent award for outstanding Awards (including, but not limited to, an award to acquire the same
consideration paid to the holders of Common Shares in the transaction), provided that the substitution of an Option or SAR shall comply with applicable tax requirements; 

  
 9 

	 	d)	The cancellation of outstanding Options or SARs and a payment to the Optionee with respect to each Common Share subject to an Option or SAR (whether or not such Option
or SAR is then exercisable or vested) equal to the excess of (i) the value, as determined by the Administrator in its absolute discretion, of the property (including cash) received by the holder of a Common Share as a result of the transaction,
over (ii) the per-share Exercise Price of the Option or SAR (such excess, the “Spread”). Such payment shall be made in the form of cash, cash equivalents, or securities of the surviving entity or its parent having a value equal to the
Spread. In addition, any escrow, holdback, earn-out or similar provisions in the transaction agreement may apply to such payment to the same extent and in the same manner as such provisions apply to the holders of Common Shares, but only to the
extent the application of such provisions does not adversely affect the status of the Option or SAR as exempt from Code Section 409A. If the Spread applicable to an Option or SAR is zero or a negative number, then the Option or SAR may be
cancelled without making a payment to the Optionee; and 

  

	 	e)	The cancellation of outstanding Stock Units and a payment to the holder of a Stock Unit with respect to each Common Share subject to such Stock Unit (whether or not
such Stock Unit is then vested) equal to the value, as determined by the Administrator in its absolute discretion, of the property (including cash) received by the holder of a Common Share as a result of the transaction (the “Transaction
Value”). Such payment shall be made in the form of cash, cash equivalents, or securities of the surviving entity or its parent having a value equal to the Transaction Value. In addition, such payment may be subject to vesting based on the
holder’s continuing Service, provided that the vesting schedule shall not be less favorable to the holder than the schedule under which such Stock Units would have vested. In addition, any escrow, holdback, earn-out or similar provisions in the
transaction agreement may apply to such payment to the same extent and in the same manner as such provisions apply to the holders of Common Shares. In the event a Stock Unit is subject to Code Section 409A, the payment described in this clause
(e) shall be made on the settlement date specified in the applicable Stock Unit Agreement, provided that settlement may be accelerated in accordance with Treasury Regulation 1.409A-3(j)(4). 

Any action taken under this Section 9.3 shall either preserve an Award’s status as exempt from Code Section 409A or comply with Code
Section 409A. 
 ARTICLE 10. OTHER AWARDS. 
 10.1 Performance Cash Awards. A Performance Cash Award is a cash award that may be granted subject to the attainment of specified Performance Goals during a Performance Period. A Performance Cash
Award may also require the completion of a specified period of continuous Service. The length of the Performance Period, the Performance Goals to be attained during the Performance Period, and the degree to which the Performance Goals have been
attained shall be determined conclusively by the Administrator. Each Performance Cash Award shall be set forth in a written agreement or in a resolution duly adopted by the Administrator which shall contain provisions determined by the Administrator
and not inconsistent with the Plan. The terms of various Performance Cash Awards need not be identical. 

  
 10 

 10.2 Awards Under Other Plans. The Company may grant awards under other plans or
programs. Such awards may be settled in the form of Common Shares issued under this Plan. Such Common Shares shall be treated for all purposes under the Plan like Common Shares issued in settlement of Stock Units and shall, when issued, reduce the
number of Common Shares available under Article 3. 
 ARTICLE 11. LIMITATION ON RIGHTS. 

11.1 Retention Rights. Neither the Plan nor any Award granted under the Plan shall be deemed to give any individual a right to
remain an Employee, Outside Director or Consultant. The Company and its Parents, Subsidiaries and Affiliates reserve the right to terminate the Service of any Employee, Outside Director or Consultant at any time, with or without cause, subject to
applicable laws, the Company’s certificate of incorporation and by-laws and a written employment agreement (if any). 

11.2 Stockholders’ Rights. Except as set forth in Section 7.4 or 8.4 above, a Participant shall have no dividend rights,
voting rights or other rights as a stockholder with respect to any Common Shares covered by his or her Award prior to the time when a stock certificate for such Common Shares is issued or, if applicable, the time when he or she becomes entitled to
receive such Common Shares by filing any required notice of exercise and paying any required Exercise Price. No adjustment shall be made for cash dividends or other rights for which the record date is prior to such time, except as expressly provided
in the Plan. 
 11.3 Regulatory Requirements. Any other provision of the Plan notwithstanding, the obligation of the
Company to issue Common Shares under the Plan shall be subject to all applicable laws, rules and regulations and such approval by any regulatory body as may be required. The Company reserves the right to restrict, in whole or in part, the delivery
of Common Shares pursuant to any Award prior to the satisfaction of all legal requirements relating to the issuance of such Common Shares, to their registration, qualification or listing or to an exemption from registration, qualification or
listing. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed necessary by the Company’s counsel to be necessary to the lawful issuance and sale of any Common Shares hereunder,
will relieve the Company of any liability in respect of the failure to issue or sell such Common Shares as to which such requisite authority will not have been obtained. 
 11.4 Transferability of Awards. The Administrator may, in its sole discretion, permit transfer of an Award in a manner consistent with applicable law. Unless otherwise determined by the
Administrator, Awards shall be transferable by a Participant only by (a) beneficiary designation, (b) a will or (c) the laws of descent and distribution. An ISO may only be transferred by will or by the laws of descent and
distribution and may be exercised during the lifetime of the Optionee only by the Optionee or by the Optionee’s guardian or legal representative. 

  
 11 

 11.5 Other Conditions and Restrictions on Common Shares. Any Common Shares issued
under the Plan shall be subject to such forfeiture conditions, rights of repurchase, rights of first refusal, other transfer restrictions and such other terms and conditions as the Administrator may determine. Such conditions and restrictions shall
be set forth in the applicable Award Agreement and shall apply in addition to any restrictions that may apply to holders of Common Shares generally. In addition, Common Shares issued under the Plan shall be subject to such conditions and
restrictions imposed either by applicable law or by Company policy, as adopted from time to time, designed to ensure compliance with applicable law or laws with which the Company determines in its sole discretion to comply including in order to
maintain any statutory, regulatory or tax advantage. 
 ARTICLE 12. TAXES. 

12.1 General. As a condition to the grant and acceptance of an Award under the Plan, a Participant or his or her successor shall
make arrangements satisfactory to the Company for the satisfaction of any federal, state, local or foreign withholding tax obligations that arise in connection with any Award granted under the Plan. The Company shall not be required to issue any
Common Shares or make any cash payment under the Plan unless and until such obligations are satisfied. 
 12.2 Share
Withholding. To the extent that applicable law subjects a Participant to tax withholding obligations, the Administrator may permit such Participant to satisfy all or part of such obligations by having the Company withhold all or a portion of any
Common Shares that otherwise would be issued to him or her or by surrendering all or a portion of any Common Shares that he or she previously acquired. Such Common Shares shall be valued at their Fair Market Value on the date when they are withheld
or surrendered. Any payment of taxes by assigning Common Shares to the Company may be subject to restrictions including any restrictions required by SEC, accounting or others rules. 

12.3 Section 162(m) Matters. The Administrator, in its sole discretion, may determine whether an Award is intended to qualify
as “performance-based compensation” within the meaning of Code Section 162(m). The Administrator may grant Awards that are based on Performance Goals but that are not intended to qualify as performance-based compensation. With respect
to any Award that is intended to qualify as performance-based compensation, the Administrator shall designate the Performance Goal(s) applicable to, and the formula for calculating the amount payable under, an Award within 90 days following
commencement of the applicable Performance Period (or such earlier time as may be required under Code Section 162(m)), and in any event at a time when achievement of the applicable Performance Goal(s) remains substantially uncertain. Prior to
the payment of any Award that is intended to constitute performance-based compensation, the Administrator shall certify in writing whether and the extent to which the Performance Goal(s) were achieved for such Performance Period. The Administrator
shall have the right to reduce or eliminate (but not to increase) the amount payable under an Award that is intended to constitute performance-based compensation. 
 12.4 Section 409A Matters. Except as otherwise expressly set forth in an Award Agreement, it is intended that Awards granted under the Plan either be exempt from, or comply with, the
requirements of Code Section 409A. To the extent an Award is subject to Code 

  
 12 

 
Section 409A (a “409A Award”), the terms of the Plan, the Award and any written agreement governing the Award shall be interpreted to comply with the requirements of Code
Section 409A so that the Award is not subject to additional tax or interest under Code Section 409A, unless the Administrator expressly provides otherwise. A 409A Award shall be subject to such additional rules and requirements as
specified by the Administrator from time to time in order for it to comply with the requirements of Code Section 409A. In this regard, if any amount under a 409A Award is payable upon a “separation from service” to an individual who
is considered a “specified employee” (as each term is defined under Code Section 409A), then no such payment shall be made prior to the date that is the earlier of (i) six months and one day after the Participant’s
separation from service or (ii) the Participant’s death, but only to the extent such delay is necessary to prevent such payment from being subject to Code Section 409A(a)(1). 

12.5 Limitation on Liability. Neither the Company nor any person serving as Administrator shall have any liability to a
Participant in the event an Award held by the Participant fails to achieve its intended characterization under applicable tax law. 
 ARTICLE 13. FUTURE OF THE PLAN. 
 13.1 Term of the
Plan. The Plan, as set forth herein, shall become effective immediately upon its adoption by the Board. The Plan shall remain in effect until the earlier of (a) the date when the Plan is terminated under Section 13.2 or (b) the
10th anniversary of the date when the Board adopted the
Plan. 
 13.2 Amendment or Termination. The Board may, at any time and for any reason, amend or terminate the Plan. No
Awards shall be granted under the Plan after the termination thereof. The termination of the Plan, or any amendment thereof, shall not affect any Award previously granted under the Plan in a manner materially adverse to the holder of such Award
without such holder’s consent. 
 13.3 Stockholder Approval. An amendment of the Plan shall be subject to the
approval of the Company’s stockholders only to the extent required by applicable laws, regulations or rules. 
 ARTICLE
14. DEFINITIONS. 
 14.1 “Administrator” means the Board or any Committees as will be administering the Plan
in accordance with Article 2. 
 14.2 “Affiliate” means any entity other than a Subsidiary, if the Company
and/or one or more Subsidiaries own not less than 50% of such entity. 
 14.3 “Award” means any award granted
under the Plan, including as an Option, a SAR, a Restricted Share, a Stock Unit or a Performance Cash Award. 
 14.4
“Award Agreement” means a Stock Option Agreement, a SAR Agreement, a Restricted Stock Agreement, a Stock Unit Agreement or such other agreement evidencing an Award granted under the Plan. 

  
 13 

 14.5 “Board” means the Company’s Board of Directors, as constituted
from time to time. 
 14.6 “Cause” means (i) an unauthorized use or disclosure by the Participant of the
Company’s confidential information or trade secrets, which use or disclosure causes material harm to the Company, (ii) a material breach by the Participant of any agreement between the Participant and the Company, (iii) a material
failure by the Participant to comply with the Company’s written policies or rules, (iv) the Participant’s conviction of, or plea of “guilty” or “no contest” to, a felony under the laws of the United States or any
state thereof, (v) the Participant’s gross negligence or willful misconduct, or (vi) a continued failure by the Participant to perform reasonably assigned duties within 30 days after receiving written notification of such failure;
provided that, if a Participant is party to an employment agreement with the Company that defines Cause, Cause shall have the meaning set forth in such agreement. 
 14.7 “Change in Control” means: 
  

	 	a)	The consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization, if persons who were not stockholders of
the Company immediately prior to such merger, consolidation or other reorganization own immediately after such merger, consolidation or other reorganization more than 50% of the voting power of the outstanding securities of each of (i) the
continuing or surviving entity and (ii) any direct or indirect parent corporation of such continuing or surviving entity; 

  

	 	b)	The sale, transfer or other disposition of all or substantially all of the Company’s assets; 

 

	 	c)	A change in the composition of the Board, as a result of which, fewer than 50% of the incumbent directors are directors who either: 

(i) Had been directors of the Company on the date 12 months prior to the date of such change in the composition of the
Board (the “Original Directors”); or 
 (ii) Were appointed to the Board, or nominated for election to
the Board, with the affirmative votes of at least a majority of the aggregate of (A) the Original Directors who were in office at the time of their appointment or nomination and (B) the directors whose appointment or nomination was
previously approved in a manner consistent with this Paragraph (ii); or 
  

	 	d)	Any transaction as a result of which any “person” (as used in Sections 13(d) and 14(d) of the Exchange Act) other than (i) a trustee or other fiduciary
holding securities under an employee benefit plan of the Company or of a Parent or Subsidiary and (ii) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the
common stock of the Company becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing more than 50% of the total voting power represented by the
Company’s then outstanding voting securities. 

  
 14 

 A transaction shall not constitute a Change in Control if its sole purpose is to change the state of the
Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction. In addition, if a Change in Control
constitutes a payment event with respect to any Award which provides for a deferral of compensation and is subject to Code Section 409A, then notwithstanding anything to the contrary in the Plan or applicable Award Agreement the transaction
with respect to such Award must also constitute a “change in control event” as defined in Treasury Regulation Section 1.409A-3(i)(5) to the extent required by Code Section 409A. 

14.8 “Code” means the Internal Revenue Code of 1986, as amended. 

14.9 “Committee” means a Committee of one or more members of the Board or of other individuals satisfying applicable
laws appointed by the Board to administer the Plan. 
 14.10 “Common Share” means one share of the common stock
of the Company. 
 14.11 “Company” means Synacor, Inc., a Delaware corporation. 

14.12 “Consultant” means a consultant or adviser who provides bona fide services to the Company, a Parent, a Subsidiary
or an Affiliate as an independent contractor and who qualifies as a consultant or advisor under Instruction A.1.(a)(1) of Form S-8 under the Securities Act. 
 14.13 “Employee” means a common-law employee of the Company, a Parent, a Subsidiary or an Affiliate. 
 14.14 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 14.15 “Exercise Price,” in the case of an Option, means the amount for which one Common Share may be purchased upon exercise of such Option, as specified in the applicable Stock Option
Agreement. “Exercise Price,” in the case of an SAR, means an amount, as specified in the applicable SAR Agreement, which is subtracted from the Fair Market Value of one Common Share in determining the amount payable upon exercise of such
SAR. 
 14.16 “Fair Market Value” means the closing price of a Common Share on any established stock exchange
or a national market system on the applicable date or, if the applicable date is not a trading day, on the last trading day prior to the applicable date, as reported in a source that the Administrator deems reliable. If Common Shares are no longer
traded on an established stock exchange or a national market system, the Fair Market Value shall be determined by the Administrator in good faith on such basis as it deems appropriate. The Administrator’s determination shall be conclusive and
binding on all persons. 

  
 15 

 14.17 “IPO Date” means the effective date of the registration statement
filed by the Company with the Securities and Exchange Commission for its initial offering of Common Shares to the public. 

14.18 “ISO” means an incentive stock option within the meaning of Code Section 422(b). 

14.19 “NSO” means a stock option not described in Code Section 422 or 423. 

14.20 “Option” means an ISO or NSO granted under the Plan and entitling the holder to purchase Common Shares.

 14.21 “Optionee” means an individual or estate holding an Option or SAR. 

14.22 “Outside Director” means a member of the Board who is not an Employee. 

14.23 “Parent” means any corporation (other than the Company) in an unbroken chain of corporations ending with the
Company, if each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a
Parent on a date after the adoption of the Plan shall be considered a Parent commencing as of such date. 
 14.24
“Participant” means an individual or estate holding an Award. 
 14.25 “Performance Cash Award”
means an award of cash granted under Section 10.1 of the Plan. 
 14.26 “Performance Goal” means a goal
established by the Administrator for the applicable Performance Period based on one or more of the performance criteria set forth in Appendix A. Depending on the performance criteria used, a Performance Goal may be expressed in terms of overall
Company performance or the performance of a business unit, division, Subsidiary, Affiliate or an individual. A Performance Goal may be measured either in absolute terms or relative to the performance of one or more comparable companies or one or
more relevant indices. The Administrator may adjust the results under any performance criterion to exclude any of the following events that occurs during a Performance Period: (a) asset write-downs, (b) litigation, claims, judgments or
settlements, (c) the effect of changes in tax laws, accounting principles or other laws or provisions affecting reported results, (d) accruals for reorganization and restructuring programs, (e) extraordinary, unusual or non-recurring
items, (f) exchange rate effects for non-U.S. dollar denominated net sales and operating earnings or (g) statutory adjustments to corporate tax rates, provided, however that if an Award is intended to qualify as “performance-based
compensation” within the meaning of Code Section 162(m), such adjustment(s) shall only be made to the extent consistent with Code Section 162(m). 
 14.27 “Performance Period” means a period of time selected by the Administrator over which the attainment of one or more Performance Goals will be measured for the purpose of determining
a Participant’s right to a Performance Cash Award or an Award of Restricted Shares or Stock Units that vests based on the achievement of Performance Goals. Performance Periods may be of varying and overlapping duration, at the discretion of the
Administrator. 

  
 16 

 14.28 “Plan” means this Synacor, Inc. 2012 Equity Incentive Plan, as
amended from time to time. 
 14.29 “Predecessor Plans” means the Company’s 2000 Stock Plan and 2006 Stock
Plan. 
 14.30 “Restricted Share” means a Common Share awarded under the Plan. 

14.31 “Restricted Stock Agreement” means the agreement between the Company and the recipient of a Restricted Share that
contains the terms, conditions and restrictions pertaining to such Restricted Share. 
 14.32 “SAR” means a
stock appreciation right granted under the Plan. 
 14.33 “SAR Agreement” means the agreement between the
Company and an Optionee that contains the terms, conditions and restrictions pertaining to his or her SAR. 
 14.34
“Service” means service as an Employee, Outside Director or Consultant. 
 14.35 “Service
Provider” means an individual who is an Employee, Outside Director or Consultant. 
 14.36 “Stock
Award” means any award of an Option, an SAR, a Restricted Share or a Stock Unit under the Plan. 
 14.37 “Stock
Option Agreement” means the agreement between the Company and an Optionee that contains the terms, conditions and restrictions pertaining to his or her Option. 
 14.38 “Stock Unit” means a bookkeeping entry representing the equivalent of one Common Share, as awarded under the Plan. 

14.39 “Stock Unit Agreement” means the agreement between the Company and the recipient of a Stock Unit that contains the
terms, conditions and restrictions pertaining to such Stock Unit. 
 14.40 “Subsidiary” means any corporation
(other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all
classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date. 

  
 17 

 14.41 “Substitute Awards” means Awards or Common Shares issued by the
Company in assumption of, or substitution or exchange for, Awards previously granted, or the right or obligation to make future awards, in each case by a corporation acquired by the Company or any Affiliate or with which the Company or any Affiliate
combines to the extent permitted by NASDAQ Marketplace Rule 5635 or any successor thereto. 

  
 18 

 APPENDIX A 

PERFORMANCE CRITERIA 
 The Administrator may establish Performance Goals derived from one or more of the following criteria when it makes Awards of Restricted Shares or Stock Units that vest entirely or in part on the basis of
performance or when it makes Performance Cash Awards: 
  

			
	 •      Earnings (before or after taxes)
	  	 •      Sales or revenue (using a measure that complies with Code Section
162(m))

		
	 •      Earnings per share
	  	 •      Expense or cost reduction

		
	 •      Earnings before interest, taxes and depreciation
	  	 •      Working capital

		
	 •      Earnings before interest, taxes, depreciation and amortization
	  	 •      Economic value added (or an equivalent metric)

		
	 •      Total stockholder return
	  	 •      Market share

		
	 •      Return on equity or average stockholders’ equity
	  	 •      Cash flow

		
	 •      Return on assets, investment or capital employed
	  	 •      Operating cash flow

		
	 •      Operating income
	  	 •      Cash flow per share

		
	 •      Gross margin
	  	 •      Share price

		
	 •      Operating margin
	  	 •      Debt reduction

		
	 •      Net operating income
	  	 •      Customer satisfaction

		
	 •      Net operating income after tax
	  	 •      Stockholders’ equity

		
	 •      Return on operating revenue
	  	 •      Contract awards or backlog

		
	 •      Net profits
	  	 •      Profit returns and margins

	
	 •      To the extent that an Award is not intended to comply with Code
Section 162(m), other measures of performance selected by the Administrator, including any other corporate, strategic and/or individual performance goals.Exhibit 10.20

 Exhibit 10.20 

 

					
	 

	  	 	Credit Agreement	  

 This Credit Agreement (the “Agreement”) dated as of December 28, 2011 is among JPMORGAN CHASE BANK, N.A.
(together with its successors and assigns, the “Bank”), whose address is 600 Jefferson Street, Suite 300, Lafayette, LA 70501, and PLATINUM ENERGY SOLUTIONS, INC, a Nevada corporation (the “Borrower”), whose address
is 2100 West Loop South, Suite 1601, Houston, Texas 77027, and PLATINUM PRESSURE PUMPING, INC., a Delaware corporation (the “Guarantor”), whose address is 2100 West Loop South, Suite 1601, Houston, Texas 77027. 

 

	1.	Credit Facility. 

  

	 	1.1	Scope. This agreement, unless otherwise agreed to in writing by the Bank and the Borrower or prohibited by any Legal Requirement (as hereafter defined), governs
the Credit Facility as defined below. Advances under the Credit Facility shall be subject to the procedures established from time to time by the Bank. Any procedures agreed to by the Bank with respect to obtaining advances, including automatic loan
sweeps, shall not vary the terms or conditions of this agreement or the other Related Documents regarding the Credit Facility. 

  

	2.	Definitions and Interpretations. 

  

	 	2.1	Definitions. As used in this agreement, the following terms have the following respective meanings: 

A. “Advances” shall mean any loan or loans by the Bank to the Borrower hereunder. 

B. “Affiliate” means any Person which, directly or indirectly Controls or is Controlled by or under common Control
with, another Person, and any director or officer thereof. The Bank is under no circumstances to be deemed an Affiliate of any Borrower or any of their Subsidiaries. 
 C. “Applicable Margin” shall mean the percentage set forth in the column below captioned “Applicable Margin”, which percentage is based on the Leverage Ratio. 

 

											
	 Level
	  	Leverage Ratio	  	Applicable Margin
Above LIBOR Rate	 	 	Applicable Margin
Above CBFR Rate	 
	 I
	  	32.50x	  	 	3.50	% 	 	 	2.50	% 
	 II
	  	32.00x <2.50x	  	 	2.50	% 	 	 	2.00	% 
	 III
	  	<2.00x	  	 	2.25	% 	 	 	1.00	% 

 For calculation purposes, the Bank will round to the nearest 100th. Until December 31, 2011,
Level II shall be applicable to all Advances. At any time that an Event of Default has occurred and is continuing, or at the option of Bank, if Borrower does not deliver the annual or monthly financial statements required by Section 4.5,
Level I shall apply, including for purposes of calculating the applicable default interest rate. 
 D.
“Authorizing Documents” means certificates of authority to transact business, certificates of good standing, borrowing resolutions, appointments, officer’s certificates, certificates of incumbency, and other documents which
empower and authorize or evidence the power and authority of all Persons (other than the Bank) executing any Related Document or their representatives to execute and deliver the Related Documents and perform the Person’s obligations thereunder.

 E. “Banking Services” means each and any of the following bank services provided to Borrower or any
Guarantor by the Lender or any of its Affiliates: (a) credit cards for commercial customers (including, without limitation, “commercial credit cards” and purchasing cards), (b) stored value cards and (c) treasury management
services (including, without limitation, controlled disbursement, automated clearinghouse transactions, return items, overdrafts and interstate depository network services). 
 F. “Bank Product Obligations” means any and all obligations of the Borrower or any Guarantor in connection with (i) Banking Services, whether absolute or contingent and
howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor), and (ii) Rate Management Transactions. 

 G. “Bank Product Reserve” means all reserves which the Bank from
time to time establishes in its permitted discretion for Banking Services then provided or outstanding. 
 H.
“Borrowing Base Amount” shall mean at any time prior to December 31, 2011 the lesser of $15,000,000.00 and the sum of eighty percent (80%) of Eligible Accounts and fifteen percent (15%) of Eligible Equipment, up to a
$5,000,000.00 sublimit for Advances on Eligible Equipment. On or after December 31, 2011, “Borrowing Base Amount” shall mean at any time the lesser of $15,000,000.00 and the sum of eighty percent (80%) of Eligible Accounts and
fifty percent (50%) of Eligible Inventory up to thirty-five percent (35%) of the total Borrowing Base Amount. 
 I.
“Business Day” means a day (other than a Saturday or Sunday) on which banks generally are open in Louisiana, and New York for the conduct of substantially all of their commercial lending activities and on which dealings in United
States dollars are carried on in the London interbank market. 
 J. “CBFR” means the rate of interest per annum
publically announced from time to time by Bank as its prime rate, with each change in such rate being effective from and including the date such change is announced as effective. The CBFR is not necessarily the lowest rate charged by Bank and the
CBFR shall, on any day, be more than an “adjusted” LIBOR Rate as calculated by the Bank. 
 K. “Change
of Control” means the occurrence of any of the following: (1) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of
all or substantially all of the properties or assets of Borrower and its Subsidiaries taken as a whole to any “person” or “Group” (as such terms are defined in Section 13(d) of the Exchange Act) other than a Permitted
Holder; (2) the adoption of a plan relating to the liquidation or dissolution of Borrower; (3) the consummation of any transaction (including, without limitation, any merger or consolidation), the result of which is that any
“Person” (as defined above) other than a Permitted Holder becomes the beneficial owner, directly or indirectly, of more than 50% of the voting stock of Borrower, measured by voting power rather than number of shares; (4) the
consummation of the first transaction (including, without limitation, any merger or consolidation) the result of which is that any “person” (as defined above) other than a Permitted Holder becomes the beneficial owner, directly or
indirectly, of more of the voting stock of Borrower (measured by voting power rather than number of shares) than is at the time beneficially owned (measured on the same basis) by the Permitted Holders in the aggregate; or (5) after an initial
public offering of Borrower, the first day on which a majority of the members of the Board of Directors of Borrower are not continuing directors. 
 L. “Collateral” means all Property, now or in the future subject to any Lien in favor of the Bank, securing or intending to secure, any of the Liabilities. 

M. “Control” as used with respect to any Person, means the power to direct or cause the direction of, the
management and policies of that Person, directly or indirectly, whether through the ownership of Equity Interests, by contract, or otherwise. “Controlling” and “Controlled” have meanings correlative thereto. 

N. “Credit Facility” means the Revolving Line, Advances under the Revolving Line, and all other extensions of
credit from the Bank to the Borrower hereunder. 
 O. “Distributions” means all dividends and other
distributions made to any Equity Owners, other than salary, bonuses, and other compensation for services rendered. 
 P.
“EBITDA” means the sum of Borrower’s earnings before interest expense, taxes, depreciation expense and amortization expense for the three (3) consecutive months then ending on financial statements beginning January 1,
2012 through March 31, 2012, on an annualized basis, (ii) thereafter, effective as of June 30, 2012, each period of six (6) consecutive months then ending, on an annualized basis, (iii) thereafter, effective as of
September 30, 2012, each period of nine (9) consecutive months then ending, on an annualized basis, and (iv) then, effective as of December 31, 2012 and continuing thereafter, each period of twelve (12) consecutive months
then ending, on a rolling four quarter basis. 
 Q. “Eligible Accounts” shall mean accounts owned by
Borrower subject to a first security interest in favor of the Bank that are acceptable and approved by the Bank from time to time as accounts eligible to be used as a basis for an Advance to Borrower under the Revolving Line. Without limiting the
Bank’s discretion to deem an account unacceptable, the following shall not be an Eligible Account: (i) accounts subject to any withholding, offset, counterclaim or other defense by account debtor to the extent of such withholding, offset,
counterclaim or defense; (ii) accounts where Borrower is indebted to such account debtor to the extent of such indebtedness; (iii) accounts arising from a sale-or-return, consignment or other repurchase or return bases (other than
customary warranties regarding the underlying goods); (iv) accounts subject to any lien other than a lien in favor of Bank or the holders of the Senior Secured Notes; (v) accounts owing from an account debtor that is insolvent;
(vi) accounts owed by an 

  
 2 

 
agency, department or instrumentality of the United States or any state governmental authority in the United States (unless perfected pursuant to the Assignment of Claims Act);
(vii) accounts arising for debtors outside the United States; (viii) accounts not denominated in U.S. Dollars; (ix) bonded accounts, retainage, and accounts resulting from progress billings and performance contracts;
(x) pre-billed accounts; (xi) accounts owing from any person that is an affiliate of the Borrower; (xii) accounts that are more than 90-days past due (based on invoice date); (xiii) the entire balance of any single account debtor
whenever fifteen percent (15%) or more of the total amount outstanding on all accounts owing by such account debtor is ninety (90) days or more past invoice; and (xiv) other accounts deemed inappropriate by Bank in its reasonable
judgment. Bank reserves the right, from time to time, in its reasonable judgment, to establish additional standards for Eligible Accounts. 
 R. “Eligible Equipment” shall mean the cost of Borrower’s equipment, provided that Bank shall have a first priority security interest on such item(s) of equipment and such cost
valuation is determined by the net book value for Borrower’s equipment under GAAP or by an independent appraisal of Borrower’s equipment that is satisfactory to Bank. 
 S. “Equity Interests” means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity
ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such equity interest. 
 T. “Eligible Inventory” shall mean the inventory of Borrower that is located in the United States and subject to a first priority security interest in favor of Bank, but excluding
all inventory determined by Bank in its reasonable judgment to be ineligible. 
 U. “Equity Owner” means
a shareholder, partner, member, holder of a beneficial interest in a trust or other owner of any Equity Interests. 
 V.
“Fixed Charge Coverage Ratio” means EBITDA plus rent expense minus distributions and dividends, minus internally financed capital expenditure, divided by the sum of the current portion of long-term debt and capitalized leases required
to be paid in the next 12 months, plus rent expense and plus cash interest expense for the three (3) consecutive months then ending on financial statements beginning January 1, 2012 through March 31, 2012, on an annualized basis,
(ii) thereafter, effective as of June 30, 2012, each period of six (6) consecutive month then ending, on an annualized basis, (iii) thereafter, effective as of September 30, 2012, each period of nine (9) consecutive
months then ending, on an annualized basis and (iv) then, effective as of December 31, 2012 and continuing thereafter, each period of twelve (12) consecutive months then ending, on a rolling four quarter basis. 

W. “Funded Debt” shall mean the outstanding sum of all of Borrower’s obligations owed under the Senior Secured
Notes, the Revolving Line, and the aggregate amount of all capital leases, letters of credit and guaranties by the Borrower, without duplication, and shall exclude the sum of all trade payables and accruals incurred in the ordinary course of
business, and the sum of all insurance premium financing by the Borrower. 
 X. “GAAP” means generally accepted
accounting principles in effect from time to time in the United States of America, consistently applied. 
 Y.
“Guarantee” means individually, collectively and interchangeably, each continuing or commercial guarantee by a direct or indirect domestic Subsidiary of Borrower in favor of the Bank, of the Liabilities and Credit Facility.

 Z. “Guarantor” means individually, interchangeably and collectively, Platinum Pressure Pumping, Inc.,
a Delaware corporation, and any direct or indirect domestic Subsidiary of Borrower that may be created and/or acquired by Borrower after the date of this Agreement. 
 AA. “Intercreditor Agreement” means that certain Intercreditor Agreement dated of even date herewith by and between Bank and The Bank of New York Mellon Trust Company, N.A., as Trustee.

 BB. “Interest Period” means for Revolving Loans with interest at the LIBOR Rate plus the Applicable Margin,
each consecutive one month period, the first of which shall commence on the date of the initial Advance and ending on the day which corresponds numerically to such date one (1) month thereafter, provided, however, that if there is no such
numerically corresponding day in such first succeeding month, such Interest Period shall end on the last Business Day of such first succeeding month. If an Interest Period would otherwise end on a day which is not a Business Day, such Interest
Period shall end on the next succeeding Business Day, provided, however, that if said next succeeding Business Day falls in a new calendar month, such Interest Period shall end on the immediately preceding Business Day. 

CC. “Legal Requirement” means any law, ordinance, decree, requirement, order, judgment, rule, regulation (or
interpretation of any of the foregoing) of any foreign governmental authority, the United States of America, any 

  
 3 

 
state thereof, any political subdivision of any of the foregoing or any agency, department, commission, board, bureau, court or other tribunal having jurisdiction over the Bank, any Pledgor or
any Obligor or any of its Subsidiaries or their respective Properties or any agreement by which any of them is bound. 

DD. “Leverage Ratio” means Funded Debt divided by Borrower’s EBITDA, all as determined in accordance with
GAAP. 
 EE. “Liabilities” means all indebtedness, liabilities and obligations of every kind and
character of Borrower to the Bank hereunder, whether the obligations, indebtedness and liabilities are individual, joint and several, contingent or otherwise, now or hereafter existing, and all liabilities, interest, costs and fees, arising under or
from Bank Product Obligations and Rate Management Transactions, whether payable to the Bank or to a third party and subsequently acquired by the Bank, including, without limitation, any monetary obligations (including interest) incurred or accrued
during the pendency of any bankruptcy, insolvency, receivership or other similar proceedings, regardless of whether allowed or allowable in such proceeding, and all renewals, extensions, modifications, consolidations, rearrangements, restatements,
replacements or substitutions of any of the foregoing. 
 FF. “LIBOR Rate” means with respect to any Advance
that bears interest based on the LIBOR, the 30-day interest rate determined by the Bank by reference to the rate appearing on Reuters Screen LIBOR01 Page (or on any successor or substitute page thereof, or any successor to or substitute for such
page, providing rate quotations comparable to those currently provided on such page, as determined by the Bank from time to time for purposes of providing quotations of interest rates applicable to dollar deposits in the London interbank market) at
approximately 11:00 a.m., London time, two Business Days prior to the commencement of the Interest Period for the offering by the Bank’s London office, of dollar deposits in an amount comparable to such LIBOR advance with a maturity equal
to such Interest Period. If no LIBOR Rate is available to the Bank, the applicable LIBOR Rate for the relevant Interest Period shall instead be the rate determined by the Bank to be the rate at which the Bank offers to place deposits in U.S. dollars
with first-class banks in the London interbank market at approximately 11:00 A.M. (London time) two Business Days prior to the first day of such Interest Period, in the approximate amount of the principal amount outstanding on such date and having a
maturity equal to such Interest Period. 
 GG. “Lien” means any mortgage, deed of trust, pledge, charge,
encumbrance, security interest, collateral assignment or other lien or restriction of any kind. 
 HH. “Loan
Documents” means this Agreement, the Notes, the Security Agreement, the Guarantee, applications for letters of credit, reimbursement agreements, and any other instrument or document executed in connection with this Agreement. 

II. “Material Adverse Effect” shall mean, with respect to the Borrower, an event which causes a material adverse
effect on the business, assets, operations or condition (financial or otherwise) of such Person. 
 JJ.
“Notes” means the Revolving Note and all other promissory notes, instruments and/or contracts now or hereafter evidencing the Credit Facility. 
 KK. “Obligor” means Borrower, Guarantor, and any other surety, co-signer, endorser, general partner or other Person who may now or in the future be obligated to pay any of the
Liabilities. 
 LL. “Organizational Documents” means, with respect to any Person, certificates of existence or
formation, documents establishing or governing the Person or evidencing or certifying that the Person is duly organized and validly existing in accordance with all applicable Legal Requirements, including all amendments, restatements, supplements or
modifications to such certificates and documents as of the date of the Related Document referring to the Organizational Document and any and all future modifications thereto approved by the Bank. 

MM. “Permitted Holder” means (a) any of (i) Daniel T. Layton; (ii) J. Clarke Legler, II; (iii) L.
Charles Moncla, Jr.; (iv) Milburn J. Ducote; and (v) Rodney P. Dartez; and (b) any beneficial owner of the preferred stock of PES as of the issue date and (c) any related party of any one or more of the Persons listed in clause
(a) above. 
 NN. “Person” means any individual, corporation, partnership, limited liability company, joint
venture, joint stock association, association, bank, business trust, trust, unincorporated organization, any foreign governmental authority, the United States of America, any state of the United States and any political subdivision of any of the
foregoing or any other form of entity. 
 OO. “Pledgor” means any Person providing Collateral. 

PP. “Property” means any interest in any kind of property or asset, whether real, personal or mixed, tangible or
intangible. 

  
 4 

 QQ. “Rate Management Transaction” means any transaction (including
an agreement with respect thereto) that is a rate swap, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange
transaction, cap transaction, floor transaction, collar transaction, forward transaction, currency swap transaction, cross-currency rate swap transaction, currency option, derivative transaction or any other similar transaction (including any option
with respect to any of these transactions) or any combination thereof, whether linked to one or more interest rates, foreign currencies, commodity prices, equity prices or other financial measures. 

RR. “Related Documents” means this agreement, the Notes, applications for letters of credit, reimbursement
agreements, security agreements, mortgages, deeds of trust, pledge agreements, assignments, guaranties, and any other instrument or document executed in connection with this agreement or with any of the Liabilities. 

SS. “Revolving Line” shall mean the revolving line of credit to the Borrower hereunder in the maximum aggregate
principal amount of $15,000,000.00, subject at all times to the Borrowing Base Amount then in effect. 
 TT. “Revolving
Loan” means an Advance by Bank to Borrower under the Revolving Line. 
 UU. “Revolving Note” means that
certain promissory note dated of even date herewith in the maximum aggregate principal amount of $15,000,000.00 by Borrower payable to the order of Bank, together with any and all refinancings, extensions and/or renewals thereof. 

VV. “Security Agreement” means that certain Security Agreement dated of even date herewith by Borrower and
Guarantor, affecting all assets of Borrower and Guarantor, as the same may be amended and/or restated from time to time and in effect. 
 WW. “Senior Secured Notes” means the 14.25% Senior Secured Notes due 2015 in the outstanding principal amount of $173,102,711 as of the date hereof, and Warrants to Purchase Common Stock,
issued by Borrower. 
 XX. “Subordinated Debt” means all debt subordinated to Bank in manner and by agreement
satisfactory to the Bank. 
 YY. “Subsidiary” means, as to any particular Person (the “parent”), a
Person the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with GAAP as of the date of determination, as well as any
other Person of which fifty percent (50%) or more of the Equity Interests is at the time of determination directly or indirectly owned, Controlled or held, by the parent or by any Person or Persons Controlled by the parent, either alone or
together with the parent. 
 ZZ. “Termination Date” shall mean the earlier to occur of (i) June 30,
2014 or (ii) the date of termination of the Revolving Line pursuant to an Event of Default hereunder. 
 If any applicable
domestic or foreign law, treaty, rule or regulation now or later in effect (whether or not it now applies to the Bank) or the interpretation or administration thereof by a governmental authority charged with such interpretation or administration, or
compliance by the Bank with any guideline, request or directive of such an authority (whether or not having the force of law), shall make it unlawful or impossible for the Bank to maintain or fund the advances evidenced by the Revolving Note, then,
upon notice to the Borrower by the Bank, the outstanding principal amount, together with accrued interest and any other amounts payable to the Bank under the Revolving Note or the Related Documents shall be repaid (a) immediately upon the
Bank’s demand if such change or compliance with such requests, in the Bank’s judgment, requires immediate repayment, or (b) at the expiration of the last Interest Period to expire before the effective date of any such change or
request. 
 If the Bank determines that quotations of interest rates for the relevant deposits referred to in the definition of
LIBOR Rate are not being provided in the relevant amounts or for the relevant maturities for purposes of determining the interest rate as provided in the Revolving Note, then the Bank shall forthwith give notice of such circumstances to the
Borrower, and Bank is hereby authorized to substitute a comparable interest rate whereupon such substituted rate shall then apply to advances under the Revolving Note. 
 In no event shall the interest rate exceed the maximum rate allowed by law. Any interest payment that would for any reason be unlawful under applicable law shall be applied to principal. 

 

	 	2.2	 Interpretations. Whenever possible, each provision of the Related Documents shall be interpreted in such manner as to be effective and valid
under applicable Legal Requirements. If any provision of this agreement cannot be enforced, the remaining portions of this agreement shall continue in effect. In the event of any conflict or inconsistency between this agreement and the provisions of
any other Related Documents, the provisions of this 

  
 5 

 
agreement shall control. Use of the term “including” does not imply any limitation on (but may expand) the antecedent reference. Any reference to a particular document includes all
modifications, supplements, replacements, renewals or extensions of that document, but this rule of construction does not authorize amendment of any document without the Bank’s consent. Section headings are for convenience of reference only and
do not affect the interpretation of this agreement. Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP. Whenever the Bank’s determination, consent, approval
or satisfaction is required under this agreement or the other Related Documents or whenever the Bank may at its option take or refrain from taking any action under this agreement or the other Related Documents, the decision as to whether or not the
Bank makes the determination, consents, approves, is satisfied or takes or refrains from taking any action, shall be in the sole and exclusive discretion of the Bank, and the Bank’s decision shall be final and conclusive. 

 

	3.	Conditions Precedent to Extensions of Credit. 

  

	 	3.1	Conditions Precedent to Initial Extension of Credit. Prior to making the initial advance hereunder, the Borrower shall deliver to the Bank, in form and substance
satisfactory to the Bank: 

 A. Loan Documents. The Revolving Note (duly authorized and executed), the
Intercreditor Agreement, and the Security Agreement, financing statements, the Guarantee, and any other documents which the Bank may reasonably require to give effect to the transactions described in this agreement or the other Related Documents;

 B. Organizational and Authorizing Documents. The Organizational Documents and Authorizing Documents of the Borrower and
any other Persons (other than the Bank) executing the Related Documents in form and substance satisfactory to the Bank that at a minimum: (i) document the due organization, valid existence and good standing of the Borrower and every other
Person (other than the Bank) that is a party to this agreement or any other Related Document; (ii) evidence that each Person (other than the Bank) which is a party to this agreement or any other Related Document has the power and authority to
enter into the transactions described therein; and (iii) evidence that the Person signing on behalf of each Person that is a party to the Related Documents (other than the Bank) is duly authorized to do so; 

C. Liens. The termination, assignment or subordination, as determined by the Bank, of all Liens on the Collateral in favor of any
secured party (other than the Bank and as contemplated by the Intercreditor Agreement); 
 D. Borrowing Base. The
Bank’s receipt of a current borrowing base certificate (on the form attached hereto as Exhibit A); and 
 E.
Operations. The Bank has determined that Borrower has commenced operations satisfactory to Bank. 
  

	 	3.2	Conditions Precedent to Each Extension of Credit. Before any extension of credit governed by this agreement, whether by disbursement of a loan, issuance of a
letter of credit or otherwise, the following conditions must be satisfied: 

 A. Representations. The
representations of the Borrower and any other parties, other than the Bank, in the Related Documents are true on and as of the date of the request for and funding of the extension of credit; 

B. No Event of Default. No default, event of default or event that would constitute a default or event of default but for the
giving of notice, the lapse of time or both, has occurred in any provision of this agreement, the Notes or any other Related Documents and is continuing or would result from the extension of credit; 

C. Additional Approvals, Opinions, and Documents. The Bank has received any other approvals, opinions and documents as it may
reasonably request; and 
 D. No Prohibition or Onerous Conditions. The making of the extension of credit is not
prohibited by and does not subject the Bank, any Obligor, or any Subsidiary of the Borrower to any penalty or onerous condition under, any Legal Requirement. 

  
 6 

	 	3.3	Revolving Line. 

A. The Revolving Line to Borrower shall terminate on the Termination Date, and no further advances will be made by Bank to
Borrower after the Termination Date. Proceeds from Advances shall be used by Borrower for short term working capital and general working capital purposes. Each Advance under the Revolving Line (and the commitment of Bank thereunder) are subject to
the Borrowing Base Amount then in effect. 
 B. All Advances under the Revolving Line shall be evidenced by and payable in
accordance with the Revolving Note. The commitment fee for the Revolving Line is 0.50% of $15,000,000.00, payable by Borrower to Bank upon execution of this agreement. In addition, the Revolving Line is subject to a non-use fee in the amount equal
to 0.25% of the daily average unused portion of the Revolving Line, payable by Borrower to Bank quarterly in arrears, commencing March 31, 2012. 
 C. Advances under the Revolving Line shall bear interest at Borrower’s option at the variable rate equal to (i) LIBOR Rate plus the Applicable Margin or (ii) CBFR plus the Applicable
Margin. Initially and until the December 31, 2011 financial reports are delivered to Bank, the Applicable Margin shall be the “Level II” Applicable Margin. The Revolving Note shall be payable on the Termination Date. In addition,
monthly payments of accrued interest shall be payable as set forth in the Revolving Note. Further, the Revolving Note shall also contain a “clean-up” requirement pursuant to which the outstanding amount due thereunder shall be paid down
and reduced to $0.00 for thirty (30) consecutive days during each 12-month period. 
 D. The Bank also agrees to
issue, upon Borrower’s request, letters of credit for the account of Borrower up to a total aggregate amount of $2,500,000.00. The issuance of a letter of credit by Bank shall reduce on a dollar for dollar basis availability for Advances under
the Revolving Line. Each such letter of credit shall have an expiry date that is on or prior to the Termination Date. In the event a letter of credit issued by Bank hereunder is funded by Bank, Borrower shall reimburse Bank the amount funded upon
demand of Bank. The fee applicable to letters of credit issued by Bank as follows: 2.0% of the face amount of each standby letter of credit plus $700.00 standard administrative fee; and 1.0% of the face amount of each documentary letter of credit
plus $500.00 standard administrative fee, which fees are to be paid to Bank prior to Bank’s issuance of the requested letter of credit. 
 E. Intentionally deleted. 
 F. Subject to the Intercreditor
Agreement, any proceeds of Collateral received by the Lender (i) not constituting either (A) a specific payment of principal, interest, fees or other sum payable under the Loan Documents (which shall be applied as specified by the
Borrower), or (B) a mandatory prepayment if the outstanding amount under the Revolving Line exceeds the Borrowing Base Amount then in effect (which mandatory prepayment shall be applied to reduce the outstanding amount due under the Revolving
Line to the Borrowing Base Amount then in effect), or (ii) after an Event of Default has occurred and is continuing and the Lender so elects such funds shall be applied, subject to the Intercreditor Agreement, ratably first, to pay any
fees, indemnities, or expense reimbursements including amounts then due to the Lender from the Borrower, second, to pay interest due in respect of any overadvances, third, to pay the principal of the overadvances, fourth, to pay
interest then due and payable on the Revolving Line (other than the overadvances), fifth, to prepay principal on the Revolving Line (other than the overadvances and unreimbursed letter of credit disbursements), sixth, to pay an amount
to the Lender equal to one hundred five percent (105%) of the aggregate undrawn face amount of all outstanding letters of credit and the aggregate amount of any unpaid letter of credit disbursements, to be held as cash collateral for such
obligations, seventh, to payment of any amounts owing with respect to Banking Services and Bank Product Obligations, and eighth, to the payment of any other secured obligations due to the Lender by the Borrower. Notwithstanding
anything to the contrary contained in this Agreement, unless so directed by the Borrower, or unless a Default is in existence, the Lender shall not apply any payment which it receives to any Revolving Loan that bears interest at the LIBOR Rate,
except (a) on the expiration date of the Interest Period applicable thereto or (b) in the event, and only to the extent, that there are no outstanding Revolving Loans that bear interest at CBFR and, in any such event, the Borrower shall
pay the break funding payment required as set forth in the Notes. The Lender shall have the continuing and exclusive right to apply and reverse and reapply any and all such proceeds and payments to any portion of the secured obligations. 

At the election of the Lender, all payments of principal, interest, letter of credit disbursements, fees, premiums,
reimbursable expenses (including, without limitation, all reimbursement for fees and expenses, and other sums payable under the Loan Documents), may be paid from the proceeds of Advances made hereunder whether made following a request by the
Borrower or a deemed request or may be deducted from any deposit account of the 

  
 7 

 
Borrower maintained with the Lender. The Borrower hereby irrevocably authorizes (i) the Lender to make an Advance for the purpose of paying each payment of principal, interest and fees as it
becomes due hereunder or any other amount due under the Loan Documents and agrees that all such amounts charged shall constitute Revolving Loan and that all such Advances shall be deemed to have been requested by Borrower and (ii) the Lender to
charge any deposit account of the Borrower maintained with the Lender for each payment of principal, interest and fees as it becomes due hereunder or any other amount due under the Loan Documents. 

 

	 	3.5	Collateral and Guarantees. 

  

	 	A.	Guarantees. All Advances under the Revolving Line shall be guaranteed (unlimited and joint and several) by each direct or indirect domestic Subsidiary of the
Borrower, including future direct or indirect domestic Subsidiaries. As of the date of this Agreement, the Borrower has one such Subsidiary. 

  

	 	B.	Collateral. The Revolving Loans and Credit Facility will be secured by a first priority security interest in substantially all assets of the Borrower and its
direct or indirect domestic Subsidiaries. 

  

	4.	Affirmative Covenants. The Borrower agrees to do, and cause each of its Subsidiaries to do, each of the following: 

 

	 	4.1	Insurance. Maintain insurance with financially sound and reputable insurers, with such insurance and insurers to be satisfactory to the Bank, covering its
Property and business against those casualties and contingencies and in the types and amounts as are in accordance with sound business and industry practices, and furnish to the Bank, upon request of the Bank, reports on each existing insurance
policy showing such information as the Bank may reasonably request. 

  

	 	4.2	Existence. Maintain its existence and business operations as presently in effect in accordance with all applicable Legal Requirements in all material respects,
pay its debts and obligations when due under normal terms, and pay on or before their due date, all taxes, assessments, fees and other governmental monetary obligations, except as such debts, taxes or other obligations may be contested in good faith
if they have been properly reflected on its books and, at the Bank’s request, adequate funds or security has been pledged or reserved to insure payment. 

 

	 	4.3	Financial Records. Maintain proper books and records of account, in accordance with GAAP, and consistent with financial statements previously submitted to the
Bank. 

  

	 	4.4	Inspection. Permit the Bank, its agents and designees to: (a) upon notice and during normal business hours, inspect and photograph its Property, to examine
and copy files, books and records, and to discuss its business, operations, prospects, assets, affairs and financial condition with the Borrower’s or its Subsidiaries’ officers and accountants, on an annual basis as of June 30 of each
year; (b) perform audits or other inspections of the Collateral, including the records and documents related to the Collateral; and (c) confirm with any Person any obligations and liabilities of the Person to the Borrower or its
Subsidiaries. The initial annual audit shall be for the period ending June 30, 2011. The Borrower will, and will cause its Subsidiaries to cooperate with any inspection or audit. The Borrower will pay the Bank the reasonable costs and expenses
of any audit or inspection of the Collateral (including fees and expenses charged internally by the Bank for asset reviews) promptly after receiving the invoice. 

 

	 	4.5	Financial Reports. Furnish to the Bank whatever information, statements, books and records the Bank may from time to time reasonably request, including at
a minimum:  

 A. Within thirty (30) days after each month, the internally prepared financial
statements of Borrower, prepared and presented in accordance with GAAP, including a balance sheet as of the end of that period, and income statement for that period, and, if requested at any time by the Bank, a statement of retained earnings for
that period, all certified as correct by Borrower’s duly authorized representative. 
 B. Within one hundred twenty
(120) days after and as of the end of each of its fiscal years (beginning December 31, 2011), the audited and unqualified financial statements of Borrower prepared and presented in accordance with GAAP, including a balance sheet and
statements of income, cash flow and retained earnings, such financial statements to be reviewed by an independent certified public accountant of recognized standing satisfactory to the Bank. 

C. Within thirty (30) days after the end of each month, Borrower shall deliver to Bank an aging of accounts receivable,
together with a borrowing base certificate in the form attached hereto as Exhibit A. 

  
 8 

	 	4.6	Notices of Claims, Litigation, Defaults, etc. Promptly inform the Bank in writing within ten (10) days of the happening or occurrence of any of the
following: (1) all existing and all threatened (in writing) litigation, investigations, administrative proceedings and similar government actions or changes in Legal Requirements affecting it which could materially and adversely affect its
business, assets, affairs, prospects or financial condition; (2) the occurrence of any event which gives rise to the Bank’s option to terminate the Credit Facility; (3) the institution of steps by it to withdraw from, or the
institution of any steps to terminate, any employee benefit plan as to which it may have material liability; (4) any reportable event or any prohibited transaction in connection with any employee benefit plan; (5) any additions to or
changes in the locations of its businesses; (6) any alleged breach by the Bank of any provision of this agreement or of any other Related Document; (7) the Borrower or Guarantor apply for bankruptcy or similar proceedings; (8) the
Bank’s lien on the Collateral ceases to be a valid, enforceable, and perfected first priority security interest; (9) the issuance of any levy, attachment, assessment, seizure or lien against any of the Collateral which is not stayed or
lifted within 30 calendar days of filing; (10) any proceeding is commenced by or against such Borrower or Guarantor for the liquidation of its assets or dissolution; (11) any litigation is filed against Borrower or Guarantor which has had
or could reasonably cause a Material Adverse Effect and such litigation is not withdrawn or dismissed within 90 calendar days of the filing; (12) any default or event of default under the Loan Documents; (13) any event which has had or
could reasonably be expected to have a Material Adverse Effect; and (14) any material provision of the Loan Documents ceases to be valid, binding and enforceable. 

 

	 	4.7	Intentionally Deleted. 

  

	 	4.8	Title to Assets and Property. Maintain good and marketable title to all of its Properties to the extent necessary to its business, and defend them against all
claims and demands of all Persons at any time claiming any interest in them. 

  

	 	4.9	Additional Assurances. Promptly make, execute and deliver any and all agreements, documents, instruments and other records that the Bank may reasonably request
to evidence any of the Credit Facility, cure any defect in the execution and delivery of any of the Related Documents, perfect any Lien, comply with any Legal Requirement applicable to the Bank or the Credit Facility or describe more fully
particular aspects of the agreements set forth or intended to be set forth in any of the Related Documents. 

  

	 	4.10	Employee Benefit Plans. Maintain each employee benefit plan as to which it may have any material liability, in compliance with all Legal Requirements.

  

	 	4.11	Banking Relationship. Establish and maintain its primary banking depository and disbursement relationship with the Bank. 

 

	 	4.12	Compliance Certificates. Within thirty (30) days after the end of each quarter (commencing the quarter ended March 31, 2012), the Borrower shall
provide to Bank a compliance certificate signed by the chief financial officer of Borrower, certifying that he has reviewed this agreement and to the best of his knowledge no Event of Default or Default has occurred, or if such a Default has
occurred, specifying the nature and extent thereof, and that all financial covenants in this agreement have been met, and providing a computation of all financial covenants contained herein, and details of any waivers, amendments, or modifications
of any covenant contained in this agreement. A form of compliance certificate is attached to this agreement as Exhibit B. 

  

	 	4.13	Financial Covenants. The Borrower agrees to comply with the following: 

 A. Leverage Ratio. The Borrower shall maintain at all times a Leverage Ratio of not more than 3.00 to 1.0. The Bank will measure this covenant on a quarterly basis beginning June 30,
2012. 
 B. Minimum Fixed Charge. The Borrower shall maintain at all times a Fixed Charge Coverage Ratio of not less than
1.25 to 1.0. This covenant will be measured quarterly by Bank beginning June 30, 2012. 
 C. Minimum Tangible Net
Worth. The Borrower shall maintain at all times a minimum tangible net worth of not less than $20,000,000.00 until such time as Borrower completes its contemplated initial public offering, at which time and thereafter the minimum tangible net
worth of Borrower shall be 90% of Borrower’s actual tangible net worth as reported for the first quarter ending after such initial public offering. The term “tangible net worth” shall mean the Borrower’s total assets excluding
intangible assets (i.e., patents, copyrights, trademarks, trade names, franchises, goodwill, organizational expenses), less the total debt of the Borrower, all as determined in accordance with GAAP. The amounts due from Borrower’s
Affiliates and members shall be a reduction to tangible net worth. This covenant will be measured quarterly by the Bank, commencing June 30, 2012. 

  
 9 

 D. Minimum EBITDA. The Borrower shall maintain at all times a minimum EBITDA of not
less than $12,000,000.00. This covenant will be measured by Bank on March 31, 2012 and June 30, 2012. After June 30, 2012, this minimum EBITDA covenant shall no longer apply to Borrower. 

If the Borrower fails to comply with any covenant contained in Section 4.13 (the “Financial Covenants”), then the Borrower
shall have the right, until the expiration of the tenth day subsequent to the date on which the Compliance Certificate in respect of the applicable fiscal quarter in which such failure occurred is required to be delivered pursuant to
Section 4.5, to issue Equity Interests for cash or otherwise receive cash contributions from existing shareholders in an aggregate amount not to exceed $5,000,000 and, in each such case, to contribute any such cash to the capital of the
Borrower (collectively, the “Cure Right”, and such cash amount received by the Borrower, the “Cure Amount”). Upon the receipt by the Borrower of the Cure Amount, EBITDA shall be recalculated to add the Cure Amount, effective as
of the first day of the 12-month period (or lesser period to the extent that the Financial Covenant is calculated based on a period that is less than 12 months) that ended on the last day of the applicable fiscal quarter in which such failure
occurred. 
 If, after making such recalculations, the Borrower would have been in compliance with the Financial Covenants, then
the Financial Covenants shall be deemed to have been complied with as of the end of the applicable fiscal quarter and there shall be deemed to have been no Default or other breach of this Agreement or any Related Document as a result of the initial
failure to comply with the Financial Covenants. Notwithstanding anything herein to the contrary, from the date of receipt of notice of the Borrower’s intent to exercise the Cure Right until the tenth day subsequent to the date the Compliance
Certificate for such test period is required to be delivered pursuant to Section 4.5, Bank shall not exercise any right or remedy hereunder or under any Related Document solely on the basis of a Default or Event of Default having occurred and
continuing under Section 4.13(A) or (B). 
  

	 	4.14	Lockbox/Collection Account. 

 (a) On or before the date of this Agreement, the Borrower shall (a) execute and deliver to the Bank Deposit Account Control Agreements for each Deposit Account maintained by the Borrower (each a
“Collateral Deposit Account”), which Collateral Deposit Accounts are identified as such on Schedule 6(k) to the Security Agreement, and (b) establish lock box service (the “Lock Boxes”) with the bank(s)
set forth in Schedule 6(k), which Lock Boxes shall be subject to irrevocable lockbox agreements in the form provided by or otherwise acceptable to the Bank and shall be accompanied by an acknowledgment by the bank where the Lock Box is
located of the Lien of the Bank granted hereunder and of irrevocable instructions to wire all amounts collected therein to the Collection Account (each, a “Lock Box Agreement”). After the date of this Agreement, the Borrower will
comply with the terms of Section 4.14(c) below. 
 (b) Borrower shall direct all of its Account Debtors to forward payments
directly to Lock Boxes subject to Lock Box Agreements. The Bank shall have sole access to the Lock Boxes at all times and the Borrower shall take all actions necessary to grant the Bank; such sole access. At no time shall the Borrower remove any
item from a Lock Box without the Bank’s prior written consent. If the Borrower should refuse or neglect to notify any Account Debtor to forward payments directly to a Lock Box subject to a Lock Box Agreement after notice from the Bank, the Bank
shall, notwithstanding language herein or in the Credit Agreement to the contrary, be entitled to make such notification directly to such Account Debtor. If notwithstanding the foregoing instructions, the Bank receives any proceeds of any
Accounts, the Bank shall receive such payments as the Bank’s trustee, and shall immediately deposit all cash, checks or other similar payments related to or constituting payments made in respect of Accounts, received by it to the Collection
Account. All funds deposited into any Lock Box subject to a Lock Box Agreement will be swept on a daily basis into a collection account in Bank’s name maintained by the Borrower with the Bank (the “Collection Account”). Until
the occurrence of an Event of Default, the Borrower shall be an authorized signor on the Collection Account with full access to such funds. Such access and authority to the Collection Account shall be automatically terminated upon the occurrence of
an Event of Default. 
 (c) Covenant Regarding New Deposit Accounts; Lock Boxes. Before opening or replacing any
Collateral Deposit Account or other Deposit Account, or establishing a new Lock Box, the Borrower shall (a) obtain the Bank’s consent in writing to the opening of such Collateral Deposit Account or other Deposit Account or establishing of
such Lock Box, and (b) cause each bank or financial institution in which it seeks to open (i) a Collateral Deposit Account or other Deposit Account, to enter into a Deposit Account Control Agreement with the Bank in order to give the Bank
Control of such Collateral Deposit Account or other Deposit Account, or (ii) a Lock Box, to enter into a Lock Box Agreement with the Bank in order to give the Bank Control of the Lock Box. 

  
 10 

 (d) Application of Proceeds; Deficiency. Upon the occurrence of an Event of Default,
all amounts deposited and to be deposited in the Collection Account shall be under the exclusive control and dominion of Bank and shall be applied (and allocated) by Bank in accordance with Section 3.3(F) of this Agreement unless a court of
competent jurisdiction shall otherwise direct. The balance, if any, after all of the Liabilities have been satisfied, shall be deposited by the Bank into the Borrower’s general operating account with the Bank. The Borrower shall remain liable
for any deficiency if the proceeds of any sale or disposition of the Collateral are insufficient to pay all Liabilities, including any attorneys’ fees and other expenses incurred by the Bank to collect such deficiency. 

 

	 	4.15	Field Examinations. Upon Bank’s periodic request, the Borrower agrees to permit Bank and its representatives access to the books, records and properties of
Borrower during normal business hours for the purpose of inspecting same and to ensure the adequacy of the Borrowing Base Amount. 

  

	5.	Negative Covenants. 

  

	 	5.1	Unless otherwise noted, the financial requirements set forth in this section will be computed in accordance with GAAP applied on a basis consistent with
financial statements previously submitted by any Borrower to the Bank. 

  

	 	5.2	Without the written consent of the Bank, the Borrower will not and no Subsidiary of the Borrower will: 

A. Distributions. Redeem, retire, purchase or otherwise acquire, directly or indirectly, any of its Equity Interests, return any
contribution to an Equity Owner or, other than stock dividends and dividends paid to the Borrower, declare or pay any Distributions; provided, however, that if there is no existing default under this agreement or any other Related Document and to do
so will not cause a default under any of such agreements the Borrower may pay Distributions to its Equity Owners sufficient in amount to pay their income tax obligations attributable to the Borrower’s taxable income if any Borrower is a sub S
corporation, limited liability company or partnership. 
 B. Intentionally Deleted. 

C. Debt. Incur, contract for, assume, or permit to remain outstanding, indebtedness for borrowed money, installment obligations, or
obligations under capital leases, other than (1) unsecured trade debt incurred in the ordinary course of business, (2) indebtedness owing to the Bank, (3) indebtedness reflected in its latest financial statement furnished to the Bank
prior to execution of this agreement and that is not to be paid with proceeds of borrowings under the Credit Facility, (4) indebtedness outstanding as of the date hereof that has been disclosed to the Bank in writing and that is not to be paid
with proceeds of borrowings under the Credit Facility, including indebtedness arising under the Senior Secured Notes and the indebtedness described on Schedule A attached hereto and made a part hereof, (5) purchase money
indebtedness, (6) indebtedness created for the sole purpose of amending, modifying, extending, consolidating, rearranging, restating, renewing or replacing, in whole or in part, indebtedness referred to in the foregoing clauses (3) through
(4), provided the principal amount of such indebtedness is not increased, and (7) other indebtedness in the aggregate amount of $5,000,000.00 per year, excluding insurance premium financing. 

D. Guaranties. Guarantee or otherwise become or remain secondarily liable on the undertaking of a Person who is not an Affiliate
for indebtedness for borrowed money. 
 E. Liens. Create or permit to exist any Lien on any of its Property except:
(1) Lien securing the indebtedness arising under the Senior Secured Notes and other existing Liens known to and approved by the Bank, including those Liens that secure the indebtedness described on Schedule A attached hereto;
(2) Liens to the Bank; (3) Liens incurred in the ordinary course of business securing current non-delinquent liabilities for taxes, worker’s compensation, unemployment insurance, social security and pension liabilities; (4) Liens
of landlords, vendors, carriers, warehousemen, mechanics, laborers and materialmen arising by law in the ordinary course of business for sums either not more than ninety (90) days past due or being contested in good faith if they have been
properly reflected on its books and, at the Bank’s request, adequate funds or security has been pledged or reserved to insure payment; (5) servitudes (contractual and legal), zoning restrictions, minor imperfections of title or
non-monetary Liens that do not materially impair the operation of immovable property in its intended use or the title thereto and which are of a nature commonly existing with respect to properties of a similar character as the Property;
(6) Liens 

  
 11 

 
in favor of customs and revenue authorities arising as a matter of law to secure payment of custom duties in connection with the importation of goods; (7) pledges and deposits to secure the
performance of bids, trade contracts, leases, purchase agreements, government contracts, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in each case in the ordinary course of business (and,
for the avoidance of doubt, not including promissory notes and contracts for the repayment of borrowed money); (8) Liens (including contractual security interests) in favor of a financial institution (including securities firms) encumbering
deposit accounts or checks or instruments for collection, commodity accounts or securities accounts (including the right of set-off) at or held by such financial institution in the ordinary course of its commercial business and which secure only
liabilities owed to such financial institution arising out of or resulting from its maintenance of such account or otherwise are within the general parameters customary in the financial industry; (9) Liens being contested in good faith in
accordance with Section 4.2 of this agreement; and (10) Liens that are purchase money security interests. 
 F. Use
of Proceeds. Use, or permit any proceeds of the Credit Facility to be used, directly or indirectly, for: (1) any personal, family or household purpose; or (2) the purpose of “purchasing or carrying any margin stock” within
the meaning of Federal Reserve Board Regulation U. At the Bank’s request, it will furnish a completed Federal Reserve Board Form
 U-1. 
 G. Continuity of Operations. (1) Engage in any business activities substantially different from those in which it is presently engaged; (2) cease operations, liquidate, merge, transfer,
acquire or consolidate with any other Person other than an Affiliate, dissolve, or sell any substantial part of its material assets out of the ordinary course of business (provided, however, that nothing shall prevent the Borrower or any Subsidiary,
as appropriate, from selling or otherwise transferring obsolete or surplus equipment or other obsolete or surplus assets); (3) enter into any arrangement with any Person providing for the leasing by it of Property which has been sold or
transferred by it to such Person; or (4) acquire all or substantially all of the assets or stock of another Person. 
 H.
Change of Name/Structure. Change its name or status as a corporation, principal business location, or jurisdiction of incorporation, without first providing the Bank thirty (30) days written notice of such change. 

I. Conflicting Agreements. Enter into any agreement containing any provision which would be violated or breached by the performance
of its obligations under this agreement or any of the other Related Documents. 
 J. Intentionally Deleted. 

K. Government Regulation. (1) Be or become subject at any time to any Legal Requirement or list of any government agency
(including, without limitation, the U.S. Office of Foreign Asset Control list) that prohibits or limits the Bank from making any advance or extension of credit to it or from otherwise conducting business with it, or (2) fail to provide
documentary and other evidence of its identity as may be requested by the Bank at any time to enable the Bank to verify its identity or to comply with any applicable Legal Requirement, including, without limitation, Section 326 of the USA
Patriot Act of 2001, 31 U.S.C. Section 5318. 
 L. Subsidiaries. Acquire any Subsidiary without the prior consent of
the Bank (which consent shall not be unreasonably withheld, conditioned or delayed by the Bank). 
 M. Intentionally
Deleted. 
  

	 	5.3	Financial Statement Calculations. The financial covenant(s) set forth in the Section entitled “Negative Covenants” or in any subsection thereof shall,
except as may be otherwise expressly provided with respect to any particular financial covenant, be calculated on the basis of the Borrower’s financial statements prepared on a consolidated basis with its Subsidiaries in accordance with GAAP.
Except as may be otherwise expressly provided with respect to any particular financial covenant, if any financial covenant states that it is to be tested with respect to any particular period of time (which may be referred to therein as a “Test
Period”) ending on any test date (e.g., a fiscal month end, fiscal quarter end, or fiscal year end), then compliance with that covenant shall be required commencing with the period of time ending on the first test date that occurs after the
date of this agreement (or, if applicable, of the amendment to this agreement which added or amended such financial covenant). 

  
 12 

	6.	Representations. 

  

	 	6.1	Representations and Warranties by the Borrower. To induce the Bank to enter into this agreement and to extend credit or other financial accommodations under the
Credit Facility, the Borrower represents and warrants as of the date of this agreement and as of the date of each request for credit under the Credit Facility that each of the following statements is and shall remain true and correct throughout the
term of this agreement and until all Credit Facility and all Liabilities under the Notes and other Related Documents are paid in full: (a) its principal residence or chief executive office is at the address shown above, (b) its name as it
appears in this agreement is its exact name as it appears in its Organizational Documents, (c) the execution and delivery of this agreement and the other Related Documents to which it is a party, and the performance of the obligations they
impose, do not violate any Legal Requirement, conflict with any agreement by which it is bound, or require the consent or approval of any other Person, (d) this agreement and the other Related Documents have been duly authorized, executed and
delivered by all parties thereto (other than the Bank) and are valid and binding agreements of those Persons, enforceable according to their terms, except as may be limited by bankruptcy, insolvency or other laws affecting the enforcement of
creditors’ rights generally and by general principles of equity, (e) all balance sheets, profit and loss statements, and other financial statements and other information furnished to the Bank in connection with the Liabilities are accurate
and fairly reflect the financial condition of the Persons to which they apply on their effective dates, including contingent liabilities of every type, which financial condition has not changed materially and adversely since those dates, (f) no
litigation, claim, investigation, administrative proceeding or similar action (including those for unpaid taxes) is pending or threatened (in writing) against it, and no other event has occurred which may in any one case or in the aggregate
materially adversely affect it or any of its Subsidiaries’ financial condition, properties, business, affairs or operations, other than litigation, claims, or other events, if any, that have been disclosed to and acknowledged by the Bank in
writing, (g) all of its tax returns and reports that are or were required to be filed, have been filed, and all taxes, assessments and other governmental charges have been paid in full, except those presently being contested by it in good faith
and for which adequate reserves have been provided, (h) it is not an “investment company” or a company “controlled” by an “investment company”, within the meaning of the Investment Company Act of 1940, as amended,
(i) there are no defenses or counterclaims, offsets or adverse claims, demands or actions of any kind, personal or otherwise, that it could assert with respect to this agreement or the Credit Facility, (j) it owns, or is licensed to use,
all trademarks, trade names, copyrights, technology, know-how and processes necessary for the conduct of its business as currently conducted, and (k) the execution and delivery of this agreement and the other Related Documents to which it is a
party and the performance of the obligations they impose, if the Borrower is other than a natural Person (i) are within its powers, (ii) have been duly authorized by all necessary action of its governing body, and (iii) do not
contravene the terms of its Organizational Documents or other agreement or document governing its affairs. 

  

	7.	Default/Remedies. 

  

	 	7.1	Events of Default/Acceleration. Subject to Section 7.2, if any of the following events occurs (individually an “Event of Default” and
collectively, “Events of Default”), the Notes shall become due immediately, by written notice to the Borrower, at the Bank’s option: 

 A. Any Obligor fails to pay when due any principal payable with respect to any of the Liabilities, or any interest or other amount payable with respect to any of the Liabilities or under any Note
or any other Related Document, which failure to pay interest or such other amount (other than principal) continues unremedied for a period of three (3) Business Days. 
 B. Any Obligor or any Pledgor: (i) fails to observe or perform or otherwise violates any other material term, covenant, condition or agreement of any of the Related Documents; (ii) makes
any materially incorrect or misleading representation, warranty, or certificate to the Bank; (iii) makes any materially incorrect or misleading representation in any financial statement or other information delivered to the Bank; or
(iv) defaults under the terms of any agreement or instrument relating to any debt for borrowed money in excess of $1,000,000.00 (other than the debt evidenced by the Related Documents) and the effect of such default allows the creditor to
declare the debt due before its stated maturity. 
 C. In the event (i) there is a default under the terms of any
Related Document, (ii) any Obligor terminates or revokes or purports to terminate or revoke its guaranty or any Obligor’s guaranty becomes unenforceable in whole or in part, (iii) any Obligor fails to perform promptly under its
guaranty, or (iv) any Obligor fails to comply with, or perform in any material respect under any agreement, now or hereafter in effect, between the Obligor and the Bank, or any Affiliate of the Bank or their respective successors and assigns.

  
 13 

 D. There is any material loss, theft, damage, or destruction of any Collateral not
covered by insurance. 
 E. Any event occurs that would permit the Pension Benefit Guaranty Corporation to terminate any
employee benefit plan of any Obligor or any Subsidiary of any Obligor. 
 F. Any Obligor or any of its Subsidiaries or any
Pledgor: (i) becomes insolvent or unable to pay its debts as they become due; (ii) makes an assignment for the benefit of creditors; (iii) consents to the appointment of a custodian, receiver, or trustee for itself or for a
substantial part of its Property; (iv) commences any proceeding under any bankruptcy, reorganization, liquidation, insolvency or similar laws; (v) conceals or removes any of its Property, with intent to hinder, delay or defraud any of its
creditors; (vi) makes or permits a transfer of any of its Property, which may be fraudulent under any bankruptcy, fraudulent conveyance or similar law; or (vii) makes a transfer of any of its Property to or for the benefit of a creditor at
a time when other creditors similarly situated have not been paid. 
 G. A custodian, receiver, or trustee is appointed
for any Obligor or any of its Subsidiaries or any Pledgor or for a substantial part of their respective Property. 
 H.
Any Obligor or any of its Subsidiaries, without the Bank’s written consent: (i) liquidates or is dissolved; (ii) merges or consolidates with any other Person; (iii) leases, sells or otherwise conveys a material part of its
assets or business outside the ordinary course of its business; (iv) leases, purchases, or otherwise acquires a material part of the assets of any other Person, except in the ordinary course of its business; or (v) agrees to do any of the
foregoing; provided, however, that any Subsidiary of an Obligor may merge or consolidate with any other Subsidiary of that Obligor, or with the Obligor, so long as the Obligor is the survivor. 

I. Proceedings are commenced under any bankruptcy, reorganization, liquidation, or similar laws against any Obligor or any of its
Subsidiaries or any Pledgor and remain undismissed for thirty (30) days after commencement; or any Obligor or any of its Subsidiaries or any Pledgor consents to the commencement of those proceedings. 

J. Any judgment in excess of $1,000,000.00 is entered against any Obligor or any of its Subsidiaries, which judgment is not fully
covered by insurance after taking into account any applicable deductibles, or any attachment, seizure, sequestration, levy, or garnishment is issued against any Property of any Obligor or any of its Subsidiaries or of any Pledgor or any Collateral,
and which judgment, attachment, seizure, sequestration, levy or garnishment remains unpaid, unstayed on appeal, undischarged, unbonded or undismissed for a period of at least (30) calendar days. 

K. Any material adverse change occurs in: (i) the reputation, Property, financial condition, business, assets, affairs,
prospects, liabilities, or operations of the Borrower or any of its Subsidiaries; (ii) any Obligor’s or Pledgor’s ability to perform its obligations under the Related Documents; or (iii) the Collateral. 

L. A Change of Control occurs. 
 M. The occurrence of a default or event of default under the Indenture executed by Borrower in connection with the Senior Secured Notes. 

 

	 	7.2	Notice and Cure Right; Remedies. If the default is a non-monetary default that can be cured, the Bank agrees to provide written notice of such default to the
Borrower, and the Borrower will have thirty (30) days (from its receipt of the default notice) to cure such default before such default becomes an Event of Default. At any time after the expiration of such cure period for such non-monetary
defaults and for all other Events of Defaults, the Bank may do one or more of the following: (a) cease permitting the Borrower to incur any Liabilities; (b) terminate any commitment of the Bank evidenced by any of the Notes;
(c) declare any of the Notes to be immediately due and payable upon notice to the Borrower of acceleration, but without presentment and demand or protest, which are hereby expressly waived; (d) exercise all rights of setoff that the Bank
may have contractually, by law, in equity or otherwise; and (e) exercise any and all other rights pursuant to any of the Related Documents, at law, in equity or otherwise. 

A. Generally. The rights of the Bank under this agreement and the other Related Documents are in addition to other rights
(including without limitation, other rights of setoff) the Bank may have contractually, by law, in equity or otherwise, all of which are cumulative and hereby retained by the Bank. Each Obligor agrees to stand still with regard to the Bank’s
enforcement of its rights, including taking no action to delay, impede or otherwise interfere with the Bank’s rights to realize on any Collateral. 

  
 14 

 B. Expenses. To the extent not prohibited by applicable Legal Requirements and
whether or not the transactions contemplated by this agreement are consummated, the Borrower is liable to the Bank and agrees to pay on demand all reasonable costs and expenses of every kind incurred (or charged by internal allocation) in connection
with the negotiation, preparation, execution, filing, recording, modification, supplementing and waiver of the Related Documents, the making, servicing and collection of the Credit Facility and the realization on any Collateral and any other amounts
owed under the Related Documents, including without limitation reasonable attorneys’ fees (including counsel for the Bank that are employees of the Bank or its Affiliates) and court costs. These costs and expenses include without limitation any
costs or expenses incurred by the Bank in any bankruptcy, reorganization, insolvency or other similar proceeding involving any Obligor, Pledgor, or Property of any Obligor, Pledgor, or Collateral. The obligations of the Borrower under this section
shall survive the termination of this agreement. 
 C. Bank’s Right of Setoff. The Borrower grants to the Bank a
security interest in the Deposits, and the Bank is authorized to setoff and apply, all Deposits, Securities and Other Property, and Bank Debt against any and all Liabilities. Subject to the Intercreditor Agreement, this right of setoff may be
exercised at any time from time to time after the occurrence of any default, without prior notice to or demand on the Borrower and regardless of whether any Liabilities are contingent, unmatured or unliquidated. In this paragraph: (a) the term
“Deposits” means any and all accounts and deposits of the Borrower (whether general, special, time, demand, provisional or final) at any time held by the Bank (including all Deposits held jointly with another, but excluding any IRA
or Keogh Deposits, or any trust Deposits in which a security interest would be prohibited by any Legal Requirement or payroll accounts); (b) the term “Securities and Other Property” means any and all securities and other
personal Property of the Borrower in the custody, possession or control of the Bank, JPMorgan Chase & Co. or their respective Subsidiaries and Affiliates (other than Property held by the Bank in a fiduciary capacity); and (c) the term
“Bank Debt” means all indebtedness at any time owing by the Bank, to or for the credit or account of the Borrower and any claim of the Borrower (whether individual, joint and several (solidary) or otherwise) against the Bank now or
hereafter existing. 
  

	8.	Miscellaneous. 

  

	 	8.1	Notice. Any notices and demands under or related to this agreement shall be in writing and delivered to the intended party at its address stated in this
agreement, and if to the Bank, at its main office if no other address of the Bank is specified in this agreement, by one of the following means: (a) by hand; (b) by a nationally recognized overnight courier service; or (c) by
certified mail, postage prepaid, with return receipt requested. Notice shall be deemed given: (a) upon receipt if delivered by hand; (b) on the Delivery Day after the day of deposit with a nationally recognized courier service; or
(c) on the third Delivery Day after the notice is deposited in the mail. “Delivery Day” means a day other than a Saturday, a Sunday or any other day on which national banking associations are authorized to be closed. Any party
may change its address for purposes of the receipt of notices and demands by giving notice of the change in the manner provided in this provision. 

  

	 	8.2	No Waiver. No delay on the part of the Bank in the exercise of any right or remedy waives that right or remedy. No single or partial exercise by the Bank of any
right or remedy precludes any other future exercise of it or the exercise of any other right or remedy. The making of an advance during the existence of any default or subsequent to the occurrence of a default or when all conditions precedent have
not been met shall not constitute a waiver of the default or condition precedent. No waiver or indulgence by the Bank of any default is effective unless it is in writing and signed by the Bank, nor shall a waiver on one occasion bar or waive that
right on any future occasion. 

  

	 	8.3	Integration. This agreement, the Notes, and the other Related Documents embody the entire agreement and understanding between the Borrower and the Bank and
supersede all prior agreements and understandings relating to their subject matter. If any one or more of the obligations of the Borrower under this agreement or the Notes is invalid, illegal or unenforceable in any jurisdiction, the validity,
legality and enforceability of the remaining obligations of the Borrower shall not in any way be affected or impaired, and the invalidity, illegality or unenforceability in one jurisdiction shall not affect the validity, legality or enforceability
of the obligations of the Borrower under this agreement, the Notes and the other Related Documents in any other jurisdiction. 

  

	 	8.4	Joint and Several Liability. Each party executing this agreement as the Borrower is individually, jointly and severally (solidarily) liable under this agreement.

  
 15 

	 	8.5	Governing Law and Venue. This agreement shall be governed by and construed in accordance with the laws of the State of New York (without giving effect to its
laws of conflicts). The Borrower agrees that any legal action or proceeding with respect to any of its obligations under this agreement may be brought by the Bank in any state or federal court located in New York County, New York, as the Bank in its
sole discretion may elect. By the execution and delivery of this agreement, the Borrower submits to and accepts, for itself and in respect of its property, generally and unconditionally, the non-exclusive jurisdiction of those courts. The Borrower
waives any claim that the State of Louisiana is not a convenient forum or the proper venue for any such suit, action or proceeding. 

  

	 	8.6	Survival of Representations and Warranties. The Borrower understands and agrees that in extending the Credit Facility, the Bank is relying on all
representations, warranties, and covenants made by the Borrower in this agreement or in any certificate or other instrument delivered by the Borrower to the Bank under this agreement or in any of the other Related Documents. The Borrower further
agrees that regardless of any investigation made by the Bank, all such representations, warranties and covenants will survive the making of the Credit Facility and delivery to the Bank of this agreement, shall be continuing in nature, and shall
remain in full force and effect until such time as the Liabilities shall be paid in full. 

  

	 	8.7	Non-Liability of the Bank. The relationship between the Borrower on one hand and the Bank on the other hand shall be solely that of borrower and lender. The Bank
shall have no fiduciary responsibilities to the Borrower. The Bank undertakes no responsibility to the Borrower to review or inform the Borrower of any matter in connection with any phase of the Borrower’s business or operations.

  

	 	8.8	Indemnification of the Bank. The Borrower agrees to indemnify, defend and hold the Bank, its parent companies, Subsidiaries, Affiliates, their respective
successors and assigns and each of their respective shareholders, directors, officers, employees and agents (collectively, the “Indemnified Persons”) harmless from any and against any and all loss, liability, obligation, damage,
penalty, judgment, claim, deficiency, expense, interest, penalties, attorneys’ fees (including the fees and expenses of any attorneys engaged by the Indemnified Person) and amounts paid in settlement (“Claims”) to which any
Indemnified Person may become subject arising out of or relating to the Credit Facility, the Liabilities under this agreement or any other Related Documents or the Collateral, except to the limited extent that the Claims are proximately caused by
the Indemnified Person’s gross negligence or willful misconduct. The indemnification provided for in this paragraph shall survive the termination of this agreement and shall not be affected by the presence, absence or amount of or the payment
or nonpayment of any claim under, any insurance. 

  

	 	8.9	Counterparts. This agreement may be executed in multiple counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts,
taken together, shall constitute one and the same agreement. 

  

	 	8.10	Advice of Counsel. The Borrower acknowledges that it has been advised by counsel, or had the opportunity to be advised by counsel, in the negotiation, execution
and delivery of this agreement and any other Related Documents. 

  

	 	8.11	Recovery of Additional Costs. If the imposition of or any change in any Legal Requirement, or the interpretation or application of any thereof by any court or
administrative or governmental authority (including any request or policy not having the force of law) shall impose, modify, or make applicable any taxes (except federal, state, or local income or franchise taxes or similar taxes imposed on the
Bank), reserve requirements, capital adequacy requirements, Federal Deposit Insurance Corporation (FDIC) deposit insurance premiums or assessments, or other obligations which would (A) increase the cost to the Bank for extending, maintaining or
funding the Credit Facility, (B) reduce the amounts payable to the Bank under the Credit Facility, or (C) reduce the rate of return on the Bank’s capital as a consequence of the Bank’s obligations with respect to the Credit
Facility, then the Borrower agrees to pay the Bank such additional amounts as will compensate the Bank therefor, within fifteen (15) days after the Bank’s written demand for such payment. The Bank’s demand shall be accompanied by an
explanation of such imposition or charge and a calculation in reasonable detail of the additional amounts payable by the Borrower, which explanation and calculations shall be conclusive in the absence of manifest error. 

 

	 	8.12	Expenses. The Borrower agrees to pay or reimburse the Bank for all its out-of-pocket costs and expenses and reasonable attorneys’ fees (including the fees
of in-house counsel) incurred in connection with the preparation and execution of this agreement, any amendment, supplement, or modification thereto, and any other Related Documents. 

 

	 	8.13	 Reinstatement. The Borrower agrees that to the extent any payment or transfer is received by the Bank in connection with the Liabilities, and
all or any part of the payment or transfer is subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid or transferred by the Bank or paid or transferred over

  
 16 

	 	
to a trustee, receiver or any other entity, whether under any proceeding or otherwise (any of those payments or transfers is hereinafter referred to as a “Preferential Payment”), then
this agreement and the Notes shall continue to be effective or shall be reinstated, as the case may be, even if all those Liabilities have been paid in full and whether or not the Bank is in possession of the Notes and whether any of the Notes has
been marked, paid, released or cancelled, or returned to the Borrower and, to the extent of the payment, repayment or other transfer by the Bank, the Liabilities or part intended to be satisfied by the Preferential Payment shall be revived and
continued in full force and effect as if the Preferential Payment had not been made. The obligations of the Borrower under this section shall survive the termination of this agreement. 

 

	 	8.14	Assignments. The Borrower agrees that the Bank may provide any information or knowledge the Bank may have about the Borrower or about any matter relating to the
Notes or the other Related Documents to JPMorgan Chase & Co., or any of its Subsidiaries or Affiliates or their successors, or to any one or more purchasers or potential purchasers of the Notes or the Related Documents. The Borrower agrees
that the Bank may at any time sell, assign or transfer one or more interests or participations in all or any part of its rights and obligations in the Notes to one or more purchasers whether or not related to the Bank. 

 

	 	8.15	Waivers. Each Obligor waives (a) any right to receive notice of the following matters before the Bank enforces any of its rights: (i) any demand,
diligence, presentment, dishonor and protest, or (ii) any action that the Bank takes regarding any Person, any Collateral, or any of the Liabilities, that it might be entitled to by law or under any other agreement; (b) any right to
require the Bank to proceed against the Borrower, any other Obligor or any Collateral, or pursue any remedy in the Bank’s power to pursue; (c) any defense based on any claim that any Obligor’s obligations exceed or are more burdensome
than those of the Borrower; (d) the benefit of any statute of limitations affecting liability of any Obligor or the enforcement hereof; (e) any defense arising by reason of any disability or other defense of the Borrower or by reason of
the cessation from any cause whatsoever (other than payment in full) of the obligation of the Borrower for the Liabilities; and (f) any defense based on or arising out of any defense that the Borrower may have to the payment or performance of
the Liabilities or any portion thereof. Each Obligor consents to any extension or postponement of time of its payment without limit as to the number or period, to any substitution, exchange or release of all or any part of any Collateral, to the
addition of any other party, and to the release or discharge of, or suspension of any rights and remedies against, any Obligor. The Bank may waive or delay enforcing any of its rights without losing them. Any waiver affects only the specific terms
and time period stated in the waiver. No modification or waiver of any provision of the Notes is effective unless it is in writing and signed by the Person against whom it is being enforced. 

 

	9.	USA PATRIOT ACT NOTIFICATION. The following notification is provided to the Borrower pursuant to Section 326 of the USA Patriot Act of 2001, 31 U.S.C.
Section 5318: 

 IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. To help the government
fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each Person that opens an account, including any deposit account, treasury
management account, loan, other extension of credit, or other financial services product. What this means for the Borrower: When the Borrower opens an account, if it is an individual the Bank will ask for its name, taxpayer identification number,
residential address, date of birth, and other information that will allow the Bank to identify it, and, if it is not an individual the Bank will ask for its name, taxpayer identification number, business address, and other information that will
allow the Bank to identify it. The Bank may also ask, if the Borrower is an individual, to see its driver’s license or other identifying documents, and if it is not an individual, to see its Organizational Documents or other identifying
documents. 
  

	10.	WAIVER OF SPECIAL DAMAGES. THE BORROWER WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT THE UNDERSIGNED MAY HAVE TO CLAIM OR RECOVER FROM THE BANK
IN ANY LEGAL ACTION OR PROCEEDING ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES. 

 (The remainder of
this page is intentionally left blank.) 

  
 17 

	11.	JURY WAIVER. THE BORROWER AND THE BANK HEREBY VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY
DISPUTE (WHETHER BASED ON CONTRACT, TORT, OR OTHERWISE) BETWEEN THE BORROWER AND THE BANK ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT. THIS PROVISION IS A MATERIAL INDUCEMENT TO THE BANK TO PROVIDE THE FINANCING DESCRIBED HEREIN.

  

							
	Address for Notices:	  		  	Borrower:
			
	2100 West Loop South, Suite 1601	  		  	Platinum Energy Solutions, Inc.
	Houston, Texas 77027	  		  		  	
	Attn: J. Clarke Legler	  		  	By:	  	/s/ J. Clarke Legler
		  		  		  	Printed Name: J. Clarke Legler
		  		  		  	Title: CFO
				
		  		  	Date	  	Signed: December 28, 2011
			
	Address for Notices:	  		  	Guarantor:
			
	2100 West Loop South, Suite 1601	  		  	Platinum Pressure Pumping, Inc.
	Houston, Texas 77027	  		  		  	
	Attn: J. Clarke Legler	  		  	By:	  	/s/ J. Clarke Legler
		  		  		  	Printed Name: J. Clarke Legler
		  		  		  	Title: CFO
				
		  		  	Date	  	Signed: December 28, 2011
			
	Address for Notices:	  		  	Bank:
			
	600 Jefferson Street, Suite 300	  		  	JPMorgan Chase Bank, N.A.
	Lafayette, LA 70501	  		  		  	
	Attn: Edward Hebert	  		  		  	
		  		  	By:	  	/s/ Ed Hebert
		  		  		  	Printed Name: Ed Hebert
		  		  		  	Title: Market Manager President
				
		  		  	Date	  	Signed: December 28, 2011

 (Signature Page to Credit Agreement) 

 EXHIBIT A 
 BORROWING BASE CERTIFICATE 

Date:             

To:   JPMorgan Chase Bank, N.A. 
 Attn:                      
 600 Jefferson Street, Suite 300 
 Lafayette, Louisiana 70501 

Dear             : 
 Reference is made to that certain Credit Agreement dated as of December             , 2011 (as amended, restated, extended, supplemented or
otherwise modified from time to time, the “Credit Agreement”) by and among Platinum Energy Solutions, Inc. (the “Borrower”), Platinum Pressure Pumping, Inc. (the “Guarantor”), and JPMorgan Chase Bank, N.A. (the
“Lender”). 
 This Borrowing Base Certificate is delivered pursuant to Section 4.5(C) of the Credit Agreement.
All capitalized terms used herein and defined in the Credit Agreement shall be used herein as so defined. 
 The Borrower hereby
represents and warrants that the following Borrowing Base Certificate is true and correct in all material respects as of                    (the
“Reporting Date”). The Borrowing Base Amount is determined as follows: 
  

	1.	Eligible Accounts: 

  

					
		
	 A.     All accounts of Borrower on which Lender has a first priority security interest:
	  	$	                	  
		
	 B.     Less ineligible accounts:
	  			
		
	 (i)      Accounts subject to any withholding, offset, counterclaim or other defense by account
debtor to the extent of such withholding,offset, counterclaim or defense:
	  	$	        	  
		
	 (ii)     Accounts where Borrower is indebted to such account debtor to the extent of such
indebtedness:
	  	$	        	  
		
	 (iii)   Accounts arising from a sale-or-return, consignment or other repurchase or return bases (other than
customary warranties regarding the underlying goods):
	  	$	 	  
		
	 (iv)    Accounts subject to any lien other than a lien in favor of Lender:
	  	$	        	  
		
	 (v)     Accounts owing from an account debtor that is insolvent:
	  	$	        	  

					
		
	 (vi)        Accounts owed by an agency, department or instrumentality of the United
States or any state governmental authority in the United States (unless perfected pursuant to the Assignment of Claims Act):
	  	$	                	  
		
	 (vii)       Accounts arising for debtors outside the United States:
	  	$	 	  
		
	 (viii)      Accounts not denominated in U.S. Dollars:
	  	$	 	  
		
	 (ix)        Bonded accounts, retainage, and accounts resulting from progress billings and
performance contracts:
	  	$	 	  
		
	 (x)          Pre-billed accounts:
	  	$	 	  
		
	 (xi)        Accounts owing from any person that is an affiliate of the
Borrower:
	  	$	 	  
		
	 (xii)       Entire balance of any single account debtor whenever 15% or more of the total
amount outstanding on all accounts owing by such account debtor is ninety (90) days or more past invoice:
	  	$	 	  
		
	 (xiii)      Other accounts deemed inappropriate by Lender in its reasonable
judgment:
	  	$	 	  
		
	 (xiv)      Accounts unpaid 90 days or more after invoice date:
	  	$	 	  
		
	 (xv)       Total ineligible accounts (the sum of Lines 1(B)(i) through (xii):
	  	$	 	  
		
	 C.     Eligible Accounts Line 1(A)-1(B)(xv):
	  	$	 	  
		
	 D.     80% of Eligible Accounts (Line 1(C) x 80%):
	  	$	 	  
		
	 2.      Eligible Equipment (until 12-31-11)
	  			
		
	 A.     15% of Borrower’s cost for equipment on which Lender has a first lien:
	  	$	 	  
		
	 3.      Eligible Inventory (commencing 1/1/12)
	  			
		
	 A.     Eligible Inventory
	  	$	 	  
		
	 B.     50% of Eligible Inventory (not to exceed 35% of total Borrowing Base Amount)
	  	$	 	  
		
	 4.      Sum of Principal Amount Outstanding under Revolving Loan and issued letters of
credit:
	  	$	 	  

					
	5.      Availability:	  	 	 
		
	 A.     Borrowing Base Amount (1(D) + 2(A)) but not to exceed $15,000,000.00 until 12-31-11;after
12-31-11 Borrowing Base Amount is 1(D) plus 3(B) (up to 35% of total Borrowing Base Amount):
	  	$	                	  
		
	 B.     Sum of Principal Amount Outstanding under Revolving Loan and issued letters of credit: (Line
3)
	  	$	 	  
		
	 C.     Availability: (Line 5(A)-Line 5(B))
	  	$	 	  

  

					
	 Sincerely,
  

PLATINUM ENERGY SOLUTIONS, INC.

		
	 By:
	 	 
		 	Name:	 	 
		 	Title:	 	 

 EXHIBIT B 
 COMPLIANCE CERTIFICATE 
  

 
 Date 

JPMorgan Chase Bank, N.A. 
 600 Jefferson
Street, Suite 300 
 Lafayette, Louisiana 70501 
 Dear             : 

This Compliance Certificate is submitted pursuant to the requirements of Section 4.12 of that certain Credit Agreement (the
“Credit Agreement”) dated December     , 2011, by and among Platinum Energy Solutions, Inc. (the “Borrower”), Platinum Pressure Pumping, Inc. (the “Guarantor”), and JPMorgan Chase Bank, N.A. (the
“Lender”). 
 Under the appropriate paragraphs of the Credit Agreement, we certify that, to the best of our knowledge
and belief, no condition, event, or act which, with or without notice or lapse of time or both, would constitute an event of default under the terms of the Credit Agreement, has occurred during the 3 month period ending
            (the “Reporting Period”). Also, to the best of our knowledge, the Borrower has complied with all provisions of the Credit Agreement. 

Additionally, the Borrower submits the following financial information for the Reporting Period in accordance with the financial
covenants and ratios contained in the Credit Agreement. 
  

	I.	MINIMUM TANGIBLE NET WORTH (TESTED QUARTERLY COMMENCING JUNE 30, 2012) 

 

					
		
	 (a) Borrower’s TNW (as of             )
	  	$	            	  
	 (b) Minimum TNW Required
	  	 
 
 
 	$20,000,000.00; after IPO,
90% of actual TNW
as reported on the first
quarter ending after IPO	 
  
 
  

  

	II.	MINIMUM FIXED CHARGE COVERAGE RATIO (TESTED QUARTERLY COMMENCING JUNE 30, 2012) 

 

					
	 (a) Borrower’s net income
	  	$	            	  
	 (b) Borrower’s interest expense
	  	$	            	  
	 (c) Borrower’s depreciation expense
	  	$	            	  
	 (d) Borrower’s amortization expense
	  	$	            	  
	 (e) Borrower’s rent expense
	  	$	            	  
	 (f) Borrower’s dividends/distributions
	  	$	            	  
	 (g) Borrower’s internally financed capex
	  	$	            	  
	 (h) a+b+c+d+e-f-g
	  	$	            	  
	 (i) Borrower’s current portion of long term debt and capitalized leases required to be paid in next 12 month
	  	$	            	  
	 (j) Borrower’s cash interest expense
	  	$	            	  
	 (k) Borrower’s rent expense for trailing 12 months then ending
	  	$	            	  
	 (l) sum of i + j + k
	  	$	            	  
	 (m) Existing ratio (h) ÷ (l)
	  	 	to 1.00	  
	 (n) Minimum Ratio Required
	  	 	1.25 to 1.00	  

	III.	LEVERAGE RATIO (TESTED QUARTERLY COMMENCING JUNE 30, 2012) 

 

					
		
	 (a) Borrower’s Funded Debt1
	  	$	            	  
	 (b) Borrower’s EBITDA2
	  	$	            	  
	 (c) Existing ratio (a ÷ b)
	  	 	            to 1.00	  
	 (d) Maximum Ratio Permitted
	  	 	3.00 to 1.00	  

  

	IV.	MINIMUM EBITDA (TESTED ON MARCH 30, 2012 AND JUNE 30, 2012) 

 

					
		
	 (a) Borrower’s EBITDA
	  	$	            	  
	 (b) Minimum EBITDA required
	  	$	 12,000,000.00	  

  

					
	Sincerely,
		 	
	PLATINUM ENERGY SOLUTIONS, INC.
		
	 By:
	 	 
		 	Name:	 	 
		 	Title:	 	 
		 		 	

  
 1  
Funded Debt means the outstanding sum of all of Borrower’s obligations owed under the Senior Secured Notes, the Revolving Line, and the aggregate amount of all capital leases, letters of credit and guaranties by the Borrower, without
duplication, and shall exclude the sum of all trade payables and accruals incurred in the ordinary course of business, and the sum of all insurance premium financing by the Borrower. 

2
  EBITDA means the sum of Borrower’s earnings before interest expense, taxes, depreciation expense and amortization expense for the three (3) consecutive months then ending on
financial statements beginning January 1, 2012 through March 31, 2012, on an annualized basis, (ii) thereafter, effective as of June 30, 2012, each period of six (6) consecutive months then ending, on an annualized basis,
(iii) thereafter, effective as of September 30, 2012, each period of nine (9) consecutive months then ending, on an annualized basis, and (iv) then, effective as of December 31, 2012 and continuing thereafter, each period of
twelve (12) consecutive months then ending, on a rolling four quarter basis. 

 SCHEDULE A 
 Sections 5.2(C) and 5.2(E) Debt and Lien Instruments 
  

	1.	Senior Secured Notes and the lien instruments securing same. 

  

	2.	Portfolio loan account facility with Morgan Stanley Bank, N.A. (fully drawn $4,000,000.00).

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