Document:

exv10w4

Exhibit 10.4

Execution Version

EQUITY PLEDGE AGREEMENT

     THIS EQUITY PLEDGE AGREEMENT, dated as of January 19, 2010, is made by PRG-SCHULTZ
INTERNATIONAL, INC., a Georgia corporation (“PRGX”), and PRG-SCHULTZ USA, INC., a Georgia
corporation (collectively, the “Borrowers”), the other direct and indirect Subsidiaries of
PRGX signatory hereto (Borrowers and each such other Subsidiary of PRGX a party hereto shall be
collectively known as the “Pledgors”, and individually as a “Pledgor”), in favor of
SUNTRUST BANK, in its capacity as administrative agent (the “Administrative Agent”) for the
Secured Parties.

W I T N E S S E T H:

     WHEREAS, the Borrowers, the Lenders, the Issuing Bank and the Administrative Agent have
entered into that certain Revolving Credit and Term Loan Agreement, dated as of January 19, 2010
(as amended, restated, supplemented, or otherwise modified from time to time, the “Credit
Agreement”), pursuant to which the Lenders have agreed to establish a revolving credit facility
in favor of and extend term Loans to Borrowers, and the Issuing Bank has agreed to establish a
letter of credit subfacility in favor of the Borrowers; and

     WHEREAS, the Pledgors are the record and beneficial owner of the Pledged Interests; and

     WHEREAS, in order to induce the Lenders, the Issuing Bank and the Administrative Agent to
enter into the Credit Agreement, Subsidiary Guaranty Agreement and other Loan Documents, the
Pledgors have agreed to execute and deliver to the Administrative Agent, for the benefit of the
Secured Parties, this Agreement as security for the Secured Obligations; and

     NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

ARTICLE 1

DEFINITIONS

          SECTION 1.1. Certain Terms. The following terms (whether or not underscored) when
used in this Agreement, including its preamble and recitals, shall have the following meanings
(such definitions to be equally applicable to the singular and plural forms thereof):

          “Agreement” shall mean this Equity Pledge Agreement as originally in effect on the
Closing Date and as thereafter from time to time amended, supplemented, restated or otherwise
modified.

          “Collateral” shall mean, collectively, (a) the Pledged Interests; (b) all Future
Rights, (c) all other Pledged Property, whether now or hereafter delivered to the Administrative
Agent in connection with this Agreement; and (d) all Proceeds of any of the foregoing.
Notwithstanding the foregoing or anything else in this Agreement to the contrary, the Collateral
shall expressly exclude the Equity Interests constituting, in the aggregate, more than sixty-five
percent (65%) of all issued and outstanding Equity Interests of any direct or indirect Foreign
Subsidiary of PRGX.

          “Distributions” shall mean all dividends paid in the form of Equity Interests,
liquidating dividends, Equity Interests resulting from equity interest splits, reclassifications,
warrants, options, non-

 

 

cash dividends and other distributions (whether similar or dissimilar to the foregoing) on or
with respect to any Pledged Interests or other Equity Interests constituting Collateral, but shall
not mean Dividends.

          “Dividends” shall mean cash dividends and cash distributions with respect to any
Pledged Interests made in compliance with applicable law.

          “Equity Interests” means all securities, shares, units, options, warrants, interests,
participations, or other equivalents (regardless of how designated) of or in a corporation,
partnership, limited liability company, or similar entity, whether voting or nonvoting,
certificated or uncertificated, including general partner partnership interests, limited partner
partnership interests, common stock, preferred stock, or any other “equity security” (as such term
is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the Securities and
Exchange Commission under the Securities Exchange Act of 1934).

          “Event of Default” shall mean any event described in Section 5.1.

          “Future Rights” shall mean: (a) all Equity Interests (other than Pledged Interests) of
the Issuers, and all securities convertible or exchangeable into, and all warrants, options, or
other rights to purchase, Equity Interests of the Issuers; and (b) the certificates or instruments
representing such Equity Interests, convertible or exchangeable securities, warrants, and other
rights and all dividends, cash, options, warrants, rights, instruments, and other property or
proceeds from time to time received, receivable, or otherwise distributed in respect of or in
exchange for any or all of such Equity Interests.

          “Issuers” shall mean each of the Persons identified as an Issuer on Schedule I
attached hereto (or any addendum thereto or replacement thereof), and any successors thereto,
whether by merger or otherwise.

          “Pledged Interests” shall mean any and all of the Equity Interests of any Issuer,
whether constituting investment property, general intangibles or otherwise, owned by any Pledgor
from time to time, more particularly described in Schedule I hereto, as amended,
supplemented or replaced from time to time, and all Pledged Property relating thereto.
Notwithstanding the foregoing or anything else in this Agreement to the contrary, the Pledged
Interests shall expressly exclude the Equity Interests constituting, in the aggregate, more than
sixty-five percent (65%) of all issued and outstanding Equity Interests of any direct or indirect
Foreign Subsidiary of PRGX.

          “Pledged Property” shall mean all Pledged Interests and the certificates evidencing
the Pledged Interests, and all Dividends, Distributions, securities, cash, instruments, interest
payments and other property and Proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of the Pledged Interests.

          “Proceeds” shall mean all proceeds (including proceeds of proceeds) of the Pledged
Interests and Future Rights including all: (a) rights, benefits, distributions, premiums, profits,
dividends, interest, cash, instruments, documents of title, accounts, contract rights, inventory,
equipment, general intangibles, payment intangibles, deposit accounts, chattel paper, and other
property from time to time received, receivable, or otherwise distributed in respect of or in
exchange for, or as a replacement of or a substitution for, any of the Pledged Interests, Future
Rights, or proceeds thereof (including any cash, Equity Interests, or other securities or
instruments issued after any recapitalization, readjustment, reclassification, merger or
consolidation with respect to the Issuers and any security entitlements, as defined in Section
8-102(a)(17) of the U.C.C., with respect thereto); (b) “proceeds,” as such term is defined in
Section 9-102(a)(64) of the U.C.C.; (c) proceeds of any insurance, indemnity, warranty, or guaranty
(including guaranties of delivery) payable from time to time with respect to any of the Pledged

2

 

Interests, Future Rights, or proceeds thereof; (d) payments (in any form whatsoever) made or
due and payable to Pledgor from time to time in connection with any requisition, confiscation,
condemnation, seizure or forfeiture of all or any part of the Pledged Interests, Future Rights, or
proceeds thereof; and (e) other amounts from time to time paid or payable under or in connection
with any of the Pledged Interests, Future Rights, or proceeds thereof.

          “Ratable” or “ratably” shall mean, in the context of a distribution of
Collateral or a distribution of Proceeds of any of the Collateral, an allocation of such Collateral
or Proceeds among the Secured Parties pro rata in accordance with their respective portion of the
aggregate dollar amount of the Secured Obligations to which the distribution is being applied.

          “Secured Obligations” means, collectively, the respective Obligations of each Pledgor.

          “Secured Parties” means, collectively, the Administrative Agent, the Lenders, the
Issuing Bank, the Specified Hedge Providers and the Specified Bank Product Providers.

          “Specified Bank Product Provider” shall mean any Lender or any Affiliate of a Lender
to which any Loan Party owes (i) Treasury Management Obligations or (ii) Bank Product Obligations,
if at the date of entering into an agreement to provide such services or products, such Person was
a Lender or an Affiliate of a Lender and such Person executes and delivers to the Administrative
Agent a letter agreement in form and substance acceptable to the Administrative Agent pursuant to
which such person (i) appoints the Administrative Agent as its agent under the applicable Loan
Documents and (ii) agrees to be bound by the provisions of Article IX and X of the Credit
Agreement.

          “Specified Hedge Provider” shall mean each party to a Hedging Transaction entered into
to limit interest rate or fee fluctuations with respect to the Loans and Letters of Credit if at
the date of entering into such Hedging Transaction such person was a Lender or an Affiliate of a
Lender and such person executes and delivers to the Administrative Agent a letter agreement in form
and substance acceptable to the Administrative Agent pursuant to which such person (i) appoints the
Administrative Agent as its agent under the applicable Loan Documents and (ii) agrees to be bound
by the provisions of Section 7.2(a), and Articles IX and X, of the Credit Agreement.

          “U.C.C.” means the Uniform Commercial Code as in effect in the State of Georgia from
time to time.

          SECTION 1.2. Credit Agreement Definitions, Cross-References. Capitalized terms used
herein and not otherwise defined (including the preamble and recitals hereof) shall have the
meanings assigned to them in the Credit Agreement, unless the context otherwise requires or unless
otherwise defined herein. References in this Agreement to any Section, unless otherwise specified,
are references to such Section of this Agreement, and references in such Section to any subsection
or clause, unless otherwise specified, are references to such subsection or clause of such Section.

          SECTION 1.3. U.C.C. Definitions. Unless otherwise defined herein or the context
otherwise requires, terms for which meanings are provided in the U.C.C. are used in this Agreement,
including its preamble and recitals, with such meanings.

ARTICLE 2

PLEDGE

          SECTION 2.1. Grant of Security Interest. Each Pledgor hereby pledges, assigns,

3

 

delivers, sets over, conveys and transfers to the Administrative Agent, for its benefit and
the benefit of the other Secured Parties, and hereby grants to the Administrative Agent, for its
benefit and the benefit of the other Secured Parties, a continuing security interest in and to,
such respective Pledgor’s entire right, title and interest in and to all of the Collateral.

          SECTION 2.2. Security for Secured Obligations. This Agreement and the Collateral
secure the payment in full and performance of all Secured Obligations.

          SECTION 2.3. Delivery of Pledged Property upon Event of Default; Registration of Pledge;
Transfer. All certificates and instruments representing or evidencing any Collateral,
including all Pledged Interests included as Collateral, shall be delivered to the Administrative
Agent and shall be held by the Administrative Agent, shall be in suitable form for transfer by
delivery (unless otherwise consented to by the Administrative Agent in the case of an Issuer that
is a Foreign Subsidiary), and shall be accompanied by all necessary instruments of transfer or
assignment reasonably required by the Administrative Agent, duly executed in blank and, if the
Administrative Agent shall so request, with signatures guaranteed by a member of a registered
national securities exchange or the National Association of Securities Dealers, Inc. or by a
commercial bank or trust company having an office or correspondent in the United States. The
Administrative Agent shall have the right, upon the occurrence and during the continuation of an
Event of Default, and without notice to the Pledgors, to transfer to, or to register in the name of
the Administrative Agent or any of its nominees, any or all of the Pledged Interests, subject only
to Section 2.5(b) and Section 4.6. In addition, the Administrative Agent shall
have the right at any time to request that any Pledgor exchange certificates or instruments
representing or evidencing any Pledged Interests for certificates or instruments of smaller or
larger denominations. If at any time, and from time to time, any Collateral consists of an
uncertificated security or a security in book entry form, and the “issuer’s jurisdiction” within
the meaning of Sections 9-305 and 8-110 of the applicable Uniform Commercial Code, in the case of
an uncertificated security, or the “securities intermediary’s jurisdiction” within the meaning of
Sections 9-305 and 8-110 of the applicable Uniform Commercial Code, in the case of a security in
book entry form, is a jurisdiction that is one of the states or territories of the United States
(or the District of Columbia), then Pledgor shall immediately cause such Collateral to be
registered or entered, as the case may be, in the name of Administrative Agent, or otherwise cause
Administrative Agent’s security interest thereon to be perfected in accordance with applicable law.
Notwithstanding anything to the contrary in this Section 2.3 or elsewhere in this Agreement or in
any other Loan Document, in the case of Pledged Interests of an issuer that is a Foreign
Subsidiary, compliance with any applicable foreign law requirements to the creation, attachment or
perfection of a Lien on any such Pledged Interests, or to the transferability of those Pledged
Interests, shall not be required except to the extent requested by the Administrative Agent upon
the occurrence and during the continuation of an Event of Default. The Administrative Agent
acknowledges that, pursuant to Section 5.14 of the Credit Agreement, the Pledged Interests are not
required to be delivered to the Administrative Agent until thirty (30) days after the closing date.

          SECTION 2.4. No Duty to Administrative Agent. The powers conferred on the
Administrative Agent hereunder are solely to protect its interest in the Collateral and shall not
impose any duty upon it to exercise any such powers. Beyond reasonable care in the custody of any
Collateral in its possession and the accounting for moneys actually received by it hereunder, the
Administrative Agent shall have no duty as to any Collateral or as to the taking of any necessary
steps to preserve rights against prior parties or any other rights pertaining to any Collateral.
The Administrative Agent shall not be liable or responsible for any loss or damage to any of the
Collateral, or from any diminution in the value thereof, by reason of the act or omission of any
carrier, forwarding agency, or other agent selected by the Administrative Agent in good faith.

          SECTION 2.5. Continuing Security Interest; Transfer of Secured Obligation. This

4

 

Agreement shall:

     (a) create a continuing security interest in the Collateral;

     (b) remain in full force and effect until no Lender has a Commitment under the Credit
Agreement, the Issuing Bank has no commitment to issue any Letter of Credit under the Credit
Agreement and no Secured Obligation remains unpaid or outstanding (except to the extent such
Secured Obligations consist solely of inchoate indemnity obligations, Treasury Management
Obligations and/or Cash Collateralized Letters of Credit complying with the terms and
conditions of the Credit Agreement);

     (c) be binding upon the each Pledgor, its successors and assigns, provided, however,
that the no Pledgor may assign any of its rights or obligations hereunder without the prior
written consent of the Required Lenders; and

     (d) inure to the benefit of the Secured Parties and their respective permitted
successors, transferees and assigns.

Without limitation to the foregoing, any Lender or Issuing Bank may assign or otherwise transfer
any Note, Loan or other Secured Obligation, held by it to any other Person, in accordance with the
terms of the Credit Agreement, and such other Person shall thereupon become vested with all the
benefits in respect thereof granted herein. Upon the occurrence of the event described in
Section 2.5(b) above, the security interest granted herein shall terminate and all rights
to the Collateral shall revert to the Pledgors, as applicable. Upon any such termination, the
Administrative Agent will, at the Pledgors’ expense, execute and deliver to the Pledgors such
documents as the Pledgors shall reasonably request to evidence such termination, without recourse
or warranty to the Administrative Agent.

ARTICLE 3

REPRESENTATIONS AND WARRANTIES

          SECTION 3.1. Representations and Warranties. Each Pledgor represents and warrants as
follows:

     (a) The Pledgor is and at all times will be the legal and beneficial owner of, and has
and will have at all times good and marketable title to (and has and will at all times have
full right and authority to pledge and assign), all Collateral pledged hereunder by such
Pledgor, free and clear of all Liens or other charges or encumbrances, except, in each case,
as otherwise permitted under this Agreement or under any other Loan Document.

     (b) The execution and delivery of this Agreement, together with the filing of a UCC-1
financing statement against the Collateral owned by such Pledgor, and the delivery of the
possessory Collateral owned by such Pledgor to the Administrative Agent, are effective in
the aggregate to create a valid, perfected, first priority security interest in such
Collateral and all Proceeds thereof, securing the Secured Obligations, except that the
filing of a financing statement, the taking of possession or some other action may be
required under Section 9-306 of the U.C.C. to perfect a security interest in certain
Proceeds of such Collateral that do not constitute Pledged Interests or other securities or
instruments.

     (c) The Pledged Interests have been duly authorized and validly issued, and are fully
paid, and (except insofar as not the case in regard to a Foreign Subsidiary) nonassessable.

5

 

     (d) Except as otherwise permitted under this Agreement or any other Loan Document, the
Pledged Interests constitute, and at all applicable times thereafter more fully described in
the Credit Agreement, the Aggregate Equity Pledge Threshold will be met, and the Pledged
Interests will constitute (a) 100% of all of the issued and outstanding Equity Interests of
the Material Domestic Subsidiaries directly owned by the Pledgor and (b) 65% of all of the
issued and outstanding Equity Interests of any first tier Material Foreign Subsidiaries
directly owned by the Pledgor, when combined with the Pledged Interests of all other
Pledgors with respect to such Foreign Subsidiary.

     (e) Schedule I to this Agreement is true and correct and complete in all
material respects. Without limiting the generality of the foregoing, except as set forth on
Schedule I, all Pledged Interests are in certificated form, and, except to the
extent registered in the name of Administrative Agent or its nominee pursuant to the
provisions of this Agreement, are registered in the name of the applicable Pledgor.

     Pledgors shall provide a supplement to, or replacement of, Schedule I in connection
with any additional pledge hereunder, or to reflect any change of information in Schedule I,
in form and substance reasonably satisfactory to Administrative Agent. Each such delivery
shall be deemed a representation and warranty by each Pledgor that such supplement or
replacement is true and correct as of such date of delivery. Without limiting such
obligation, if Pledgors fail to deliver such supplement or replacement, the Administrative
Agent may unilaterally supplement or replace Schedule I to reflect any additional pledge
hereunder or to reflect any changed information in Schedule I; provided, that
failure to so supplement Schedule I in writing shall not invalidate any additional pledged
shares’ status as Pledged Interests.

     (f) Except for compliance with the requirements of Section 5.7, and except as
may be required in connection with any Material Foreign Subsidiary, no authorization,
approval, or other action by and no notice to or filing with, any Governmental Authority is
or will be required either:

          (i) for the pledge by the Pledgor of any Collateral pursuant to this Agreement
or for the execution, delivery, or performance of this Agreement by the Pledgor, or

          (ii) for the exercise by the Administrative Agent of the voting or other rights
provided for in and in accordance with the terms of this Agreement or the remedies
in respect of the Collateral pursuant to this Agreement (except, with respect to any
Pledged Interests, as may be required in connection with a disposition of such
Pledged Interests by laws affecting the offering and sale of securities generally).

     (g) As of the Closing Date, (i) 100% of the Capital Stock of each Material Domestic
Subsidiary (other than the Capital Stock of any Domestic Subsidiary owned directly by a
Foreign Subsidiary on the Closing Date) and 65% of each first tier Material Foreign
Subsidiary is pledged under this Agreement, and (ii) sufficient shares of Capital Stock are
pledged hereunder to meet the Aggregate Equity Pledge Threshold.

          SECTION 3.2. Warranties upon Pledge of Additional Collateral. Each Pledgor shall be
deemed to restate (as to the respective additional Collateral) each representation and warranty set
forth in Section 3.1 as at the date of each pledge hereunder by such Pledgor to the
Administrative Agent of any additional Collateral.

6

 

ARTICLE 4

COVENANTS

          SECTION 4.1. Protect Collateral; Further Assurances. No Pledgor will sell, assign,
transfer, pledge or encumber in any other manner the Collateral (except in favor of the
Administrative Agent hereunder, or as otherwise permitted under the Credit Agreement). Each
Pledgor will warrant and defend the right, title and security interest herein granted to the
Administrative Agent in and to the Collateral (and all right, title and interest represented by the
Collateral) against the claims and demands of all Persons whomsoever. Each Pledgor agrees that at
any time, and from time to time, at the expense of the Pledgor, the Pledgor will promptly execute
and deliver all further instruments, and take all further action, that may be necessary, or that
the Administrative Agent may reasonably request, in order to perfect and protect any security
interest granted or purported to be granted hereby or to enable the Administrative Agent to
exercise and enforce its rights and remedies hereunder with respect to any Collateral.

          SECTION 4.2. Issuance of Equity Interests. No Pledgor will, subsequent to the date of
this Agreement, without the prior written consent of the Required Lenders, cause or permit the
Subsidiaries that have issued any Equity Interests pledged hereunder to issue or grant any
warrants, options of any nature or other instruments convertible into any class of Equity Interests
or issue any additional Equity Interests or sell or transfer any treasury Equity Interests, except
that any Subsidiary may issue Equity Interests to the Pledgor if such Pledgor assures such Equity
Interests are pledged hereunder and become a part of the Collateral to the extent required, and at
the time(s) required, by Section 5.12 of the Credit Agreement, and in the case of any Subsidiary
that is not a Domestic Subsidiary except for any qualifying Equity Interest required to be issued
to directors, managers or officers of such Subsidiary under applicable law. Such Pledgor will
notify the Administrative Agent within the time periods required to effect additional pledges as
set forth in Section 5.12 of the Credit Agreement with respect to any such additional Pledged
Interests, and of any additional Subsidiary formed or acquired after the date hereof (the Equity
Interests of which shall likewise become additional Pledged Interests hereunder, subject to the
limitation on the pledging of Equity Interests of Foreign Subsidiaries contained in the definition
of “Pledged Interests”), and within the applicable time periods set forth in section 5.12 of the
Credit Agreement, cause such Pledged Interests, together with signed transfer powers and proxies,
in the form of Exhibit A and Exhibit B, respectively, attached hereto (or in such
other form consented to by the Administrative Agent), and such other documents and instruments as
the Administrative Agent may require in its reasonable discretion, to be delivered into the
Administrative Agent’s possession, and take all other steps deemed necessary by the Administrative
Agent in its reasonable discretion to perfect the first-priority security interest of the
Administrative Agent in such additional Pledged Interests.

          SECTION 4.3. Taxes. The Pledgors will pay all taxes, assessments and charges levied,
assessed or imposed upon the Collateral before the same become delinquent or become Liens upon any
of the Collateral except where the same may be contested in good faith by appropriate proceedings
and as to which adequate reserves have been provided.

          SECTION 4.4. Transfer Powers. Each Pledgor agrees that all certificated Pledged
Interests (and all other certificated Equity Interests constituting Collateral) included as
Collateral and delivered by the Pledgor to the Administrative Agent pursuant to this Agreement will
be accompanied by all necessary instruments of transfer or assignment requested by the
Administrative Agent in the form of Exhibit A hereto (or such other form consented to by
the Administrative Agent), duly executed in blank and, if the Administrative Agent shall so
request, with signatures guaranteed by a member of a national securities exchange or the National
Association of Securities Dealers, Inc. or by a commercial bank or trust company having an office
or correspondent in the United States. Thereafter, each Pledgor will, upon

7

 

the request of the Administrative Agent, promptly deliver to it such transfer powers,
instruments and similar documents, satisfactory in form and substance to the Administrative Agent,
with respect to the Collateral pledged by such Pledgor as the Administrative Agent may reasonably
request and will, from time to time upon the request of the Administrative Agent, promptly transfer
any Pledged Interests or other Equity Interests, including all Distributions, constituting
Collateral pledged by such Pledgor into the name of the Administrative Agent or any nominee
designated by the Administrative Agent.

          SECTION 4.5. Continuous Pledge. Each Pledgor will at all times keep pledged to the
Administrative Agent pursuant hereto all Pledged Interests, all Dividends received during the
existence of an Event of Default and Distributions with respect thereto, and all other Collateral
pledged by such Pledgor, except as otherwise permitted under this Agreement or any other Loan
Document.

          SECTION 4.6. Voting Rights; Dividends. In addition, each Pledgor agrees that:

     (a) if any Event of Default shall have occurred and be continuing or if any Default or
Event of Default shall occur as a result thereof, promptly upon receipt thereof by the
Pledgor and without any request therefor by the Administrative Agent, the Pledgor shall
deliver (properly endorsed where required hereby or requested by the Administrative Agent)
to the Administrative Agent all Dividends received on account of Collateral, all of which
shall be held by the Administrative Agent as additional Collateral for use in accordance
with Section 5.5;

     (b) if any Event of Default shall have occurred and be continuing, upon notice to the
Pledgor by the Administrative Agent, all rights of the Pledgor to exercise or refrain from
exercising voting or other consensual rights in respect of the Collateral shall cease and
all such rights shall thereupon become vested in the Administrative Agent who shall
thereupon have the sole right to exercise or refrain from exercising such voting and other
consensual rights; and

     (c) if any Event of Default shall have occurred and be continuing, promptly upon
request of the Administrative Agent, the Pledgor shall deliver to the Administrative Agent
such proxies and other documents as may be necessary to allow the Administrative Agent to
exercise the voting and other consensual rights with respect to any Collateral pledged by
such Pledgor.

Except as set forth in the immediately preceding sentence, each Pledgor shall be entitled to
exercise, in its reasonable judgment, but in a manner not inconsistent with the terms of the Credit
Agreement, Subsidiary Guaranty Agreement or any other Loan Document (including this Agreement), the
voting powers and all other incidental rights of ownership with respect to any Pledged Interests or
other Equity Interests constituting Collateral (subject to the Pledgor’s obligation to deliver to
the Administrative Agent such Pledged Interests and other Equity Interests in pledge hereunder to
the extent required to be included as Collateral) and to the receipt of all Dividends. All
Dividends, Distributions, cash payments and Proceeds which the Pledgor is then obligated to deliver
to the Administrative Agent, shall, until delivery to the Administrative Agent, be held by the
Pledgor separate and apart from its other property in trust for the Administrative Agent. The
Administrative Agent agrees that unless an Event of Default shall have occurred and be continuing,
the Administrative Agent shall, upon the written request of any Pledgor, promptly deliver such
proxies and other documents, if any, as shall be reasonably requested by the Pledgor which are
necessary to allow the Pledgor to exercise voting power with respect to any unit of Equity
Interests (including Pledged Interests) constituting Collateral; provided, however,
that no vote shall be cast, or consent, waiver or ratification given, or action taken by the
Pledgor that would impair in any material respect any Collateral or be inconsistent with or violate
any provision of the Credit Agreement, the Subsidiary Guaranty Agreement or any other Loan Document
(including this Agreement).

          SECTION 4.7. Additional Information. Each Pledgor will furnish to the

8

 

Administrative Agent and the Lenders written notice of the occurrence of any event which would
make any representation contained in Article 3 untrue at such time.

ARTICLE 5

EVENTS OF DEFAULT; REMEDIES

     SECTION 5.1. Events of Default. Each of the following shall constitute an “Event of
Default” hereunder:

     (a) if there shall occur any Event of Default under the Credit Agreement;

     (b) if any of the Collateral shall be levied upon or seized in any legal proceeding, or
held by virtue of any Lien or distress, or any Lien other than a Lien permitted under the
Credit Agreement shall attach to any of the Collateral; or

     (c) if any representation or warranty of any Pledgor set forth herein shall be untrue
in any material respect; or

     (d) if any Pledgor shall fail to observe or perform any covenant or agreement contained
in Section 4.1 of this Agreement; or

     (e) if any Pledgor shall fail to observe or perform any covenant or agreement contained
in this Agreement (other than those referred to in clause (d) above), and such failure shall
remain unremedied for 30 days after the earlier of (i) any Responsible Officer of any
Pledgor becomes aware of such failure, or (ii) notice thereof shall have been given to the
Borrowers’ Agent by the Administrative Agent or any Lender.

          SECTION 5.2. Actions upon Event of Default. In addition to its rights and remedies
provided hereunder, whenever an Event of Default shall have occurred and be continuing, the
Administrative Agent shall have all rights and remedies of a secured party upon default under the
U.C.C. or other applicable law. Any notification required by law of any intended disposition by
the Administrative Agent of any of the Collateral shall be deemed reasonably and properly given if
given at least ten (10) days before such disposition. Without limitation of the above, the
Administrative Agent may, and upon direction of the Required Lenders shall, whenever an Event of
Default shall have occurred and be continuing, take all or any of the following actions after
giving at least ten (10) days prior notice to the Pledgors:

     (a) transfer all or any part of the Collateral into the name of the Administrative
Agent or its nominee, without disclosing that such Collateral is subject to the Lien
hereunder;

     (b) take control of any Proceeds of the Collateral; and

     (c) execute (in the name, place and stead of the Pledgors) endorsements, assignments,
transfer powers and other instruments of conveyance or transfer with respect to all or any
of the Collateral.

          SECTION 5.3. Attorney-in-Fact. Each Pledgor hereby irrevocably appoints the
Administrative Agent its true and lawful attorney, with full power of substitution, in the name of
the Pledgors, the Secured Parties or otherwise, for the sole use and benefit of the Secured
Parties, but at the Pledgors’ expense, upon the occurrence and during the continuation of an Event
of Default to take any

9

 

action and to execute any instrument which the Administrative Agent may deem reasonably
necessary or advisable enable the Administrative Agent to realize the benefit of the security
interest provided for in this Agreement.

          SECTION 5.4. Private Sales. (a) Each Pledgor recognizes that the Administrative
Agent may be unable, after the occurrence and during the continuance of any Event of Default, to
effect a public sale of any or all the Pledged Interests by reason of certain prohibitions
contained in the Securities Act of 1933, as amended (the “Securities Act”) and applicable
state securities law or otherwise, and may be compelled to resort to one or more private sales
thereof to a restricted group of purchasers that will be obligated to agree, among other things, to
acquire such securities for their own account for investment and not with a view to the
distribution or resale thereof. Each Pledgor acknowledges and agrees that any such private sale
may result in prices and other terms less favorable than if such sale were a public sale and,
notwithstanding such circumstances, agrees that any such private sale shall be deemed to have been
made in a commercially reasonable manner. The Administrative Agent shall be under no obligation to
delay sale of any of the Pledged Interests for the period of time necessary to permit any
Subsidiary to register such securities for public sale under the Securities Act, or under
applicable state securities law, even if such Subsidiary would agree to do so.

          (b) Each Pledgor further agrees to use its reasonable best efforts, after the occurrence and
during the continuance of an Event of Default, to do or cause to be done all such acts as may be
necessary to make such sale or sales of all or any portion of the Pledged Interests pursuant to
this Section 5.4 valid and binding and in compliance with any and all applicable
Requirements of Law.

          SECTION 5.5. Application of Proceeds. All cash Proceeds received by the
Administrative Agent in respect of any sale of, collection from, or other realization upon, all or
any part of the Collateral may, in the discretion of the Administrative Agent during the existence
of an Event of Default, be held by the Administrative Agent as additional collateral security for,
or then or at any time thereafter during the existence of an Event of Default, be applied (after
payment of any amounts payable to the Administrative Agent pursuant to Section 2.9 of the
Credit Agreement and Section 5.6 of this Agreement) in whole or in part by the
Administrative Agent against, all or any part of the Secured Obligations in the following order:

     (a) first, ratably, to the unpaid interest accrued and then due or owing on the
Secured Obligations and to the aggregate amount of fees described in Section 2.14 of the
Credit Agreement which have accrued and are unpaid;

     (b) second, ratably, among the Lenders and Issuing Bank, on account of all
principal of any Secured Obligations then due or owing; and

     (c) third, to any other Secured Obligations then due or owing.

After termination of the Lenders’ Commitments, the termination of the commitment under the Credit
Agreement of the Issuing Bank to issue Letters of Credit, and payment of the Secured Obligations
(except to the extent such Secured Obligations consist solely of inchoate indemnity obligations,
Treasury Management Obligations and/or Cash Collateralized Letters of Credit complying with the
terms and conditions of the Credit Agreement), any surplus of such cash or cash Proceeds held by
the Administrative Agent shall be paid over to the Pledgors or to whomsoever may be lawfully
entitled to receive such surplus.

          SECTION 5.6. Indemnity and Expenses. Each Pledgor hereby indemnifies and holds
harmless the Secured Parties from and against any and all claims, losses, and liabilities growing
out of or

10

 

resulting from this Agreement (including enforcement of this Agreement), to the same extent as
the Borrowers pursuant to the terms of Section 10.3 of the Credit Agreement. Upon demand, each
Pledgor will pay, or cause to be paid, to the Administrative Agent the amount of any and all
reasonable and documented expenses actually incurred, including the reasonable fees and
disbursements of its counsel and of any experts and agents actually incurred, which the
Administrative Agent incurs in connection with:

     (a) the administration of this Agreement;

     (b) the custody, preservation, use, or operation of, or the sale of, collection from,
or other realization upon, any of the Collateral;

     (c) the exercise or enforcement of any of the rights of the Administrative Agent
hereunder and any action taken by the Administrative Agent under Section 6.4; and

     (d) the failure by any Pledgor to perform or observe any of the provisions hereof.

          SECTION 5.7. Registration Rights. If the Administrative Agent shall determine to
exercise its right to sell any of the Pledged Interests (included as Collateral) pursuant to
Section 5.2 or under applicable law, each Pledgor agrees that, upon request of the
Administrative Agent, as soon as practicable, each Pledgor will, at its own expense:

     (a) execute and deliver, and cause each issuer of the Pledged Interests and the
directors and officers thereof to execute and deliver, all such instruments and documents,
and do or cause to be done all such other acts and things, as may be necessary or, in the
opinion of the Administrative Agent, advisable to register such Pledged Interests under the
provisions of the Securities Act, and to cause the registration statement relating thereto
to become effective and remain effective for such period as prospectuses are required by law
to be furnished, and to make all amendments and supplements thereto and to the related
prospectuses which, in the opinion of the Administrative Agent, are necessary or advisable,
all in conformity with the requirements of the Securities Act and the rules and regulations
of the Securities and Exchange Commission applicable thereto;

     (b) use its best efforts to qualify the Pledged Interests under state securities or
“Blue Sky” laws and to obtain all necessary governmental approval for the sale of the
Pledged Interests, as requested by the Administrative Agent;

     (c) cause each issuer of the Pledged Interests to make available to its security
holders, as soon as practicable, an earnings statement which will satisfy the provisions of
Section 14(a) of the Securities Act; and

     (d) do or cause to be done all such other acts and things as may be necessary to make
such sale of the Pledged Interests or any part thereof valid and binding and in compliance
with applicable law.

Each Pledgor further acknowledges the impossibility of ascertaining the amount of damages which
would be suffered by the Secured Parties by reason of the failure of a Pledgor to perform any of
the covenants contained in this Section and, consequently, agrees that the remedy of specific
performance may be granted to require the Pledgor to comply with the covenants contained in this
Section, at any time after the Administrative Agent shall demand compliance with this Section.

11

 

ARTICLE 6

MISCELLANEOUS

          SECTION 6.1. Loan Document. This Agreement is a Loan Document executed pursuant to
the Credit Agreement and shall (unless otherwise expressly indicated herein) be construed,
administered and applied in accordance with the terms and provisions thereof.

          SECTION 6.2. Amendments. No amendment or waiver of any provision of this Agreement
nor consent to any departures by the Pledgors or by the Administrative Agent herefrom shall in any
event be effective unless the same shall be in writing, signed by the Administrative Agent (with
the consent of the Required Lenders), and by the Pledgors, and then such amendment, waiver or
consent shall be effective only in the specific instance and for the specific purpose for which it
is given.

          SECTION 6.3. Obligations Not Affected. The obligations of the Pledgors under this
Agreement shall remain in full force and effect without regard to, and shall not be impaired or
affected by:

     (a) any amendment or modification or addition or supplement to the Credit Agreement,
any Note, any other Loan Document, any instrument delivered in connection therewith or any
assignment or transfer thereof;

     (b) any exercise, non-exercise or waiver by the Administrative Agent or any Secured
Party of any right, remedy, power or privilege under or in respect of, or any release of any
guaranty or collateral provided pursuant to, this Agreement, the Credit Agreement or any
other Loan Document;

     (c) any waiver, consent, extension, indulgence or other action or inaction in respect
of this Agreement, the Credit Agreement or any other Loan Document or any assignment or
transfer of any thereof; or

     (d) any bankruptcy, insolvency, reorganization, arrangement, readjustment, composition,
liquidation or the like, of any Pledgor or any other Person, whether or not the Pledgor
shall have notice or knowledge of any of the foregoing.

          SECTION 6.4. Protection of Collateral. The Administrative Agent may from time to time
perform, at its option, any act which any Pledgor agrees hereunder to perform and which the Pledgor
shall fail to perform, and the Administrative Agent may from time to time take any other action
which the Administrative Agent reasonably deems necessary for the maintenance, preservation or
protection of any of the Collateral or of its security interest therein.

          SECTION 6.5. Addresses for Notices. All notices and other communications provided for
hereunder to any party hereto shall be given in the manner provided in Section 10.1 of the Credit
Agreement, and if to Pledgors, at the addresses set forth on Schedule II attached hereto,
and if to the Administrative Agent, at the address set forth in Section 10.1 of the Credit
Agreement.

          SECTION 6.6. Governing Law; Jurisdiction.

     (a) This Agreement shall be construed in accordance with and be governed by
the law (without giving effect to the conflict of law principles thereof) of the State of
Georgia.

12

 

     (b) Each Pledgor hereby irrevocably and unconditionally submits, for itself
and its property, to the non-exclusive jurisdiction of the United States District Court of
the Northern District of Georgia, and of any state court of the State of Georgia located in
Fulton County and any appellate court from any thereof, in any action or proceeding arising
out of or relating to this Agreement or the transactions contemplated hereby or thereby, or
for recognition or enforcement of any judgment, and each of the parties hereto hereby
irrevocably and unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in such Georgia state court or, to the extent
permitted by applicable law, such Federal court. Each Pledgor agrees that a final judgment
in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in
this Agreement shall affect any right that the Administrative Agent or any Secured Party may
otherwise have to bring any action or proceeding relating to this Agreement against the
Pledgors or their respective properties in the courts of any jurisdiction.

     (c) Each Pledgor irrevocably and unconditionally waives any objection which
it may now or hereafter have to the laying of venue of any such suit, action or proceeding
described in the first sentence of paragraph (b) of this Section and brought in any court
referred to in the first sentence of paragraph (b) of this Section. Each Pledgor
irrevocably waives, to the fullest extent permitted by applicable law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such court.

     (d) Each Pledgor irrevocably consents to the service of process in the manner
provided for notices in Section 10.1 of the Credit Agreement. Nothing in this Agreement or
in any other Loan Document will affect the right of any party hereto to serve process in any
other manner permitted by law.

          SECTION 6.7. Waiver of Jury Trial. EACH PLEDGOR, AND BY ITS ACCEPTANCE HEREOF,
ADMINISTRATIVE AGENT ON BEHALF OF THE SECURED PARTIES, IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH
PLEDGOR, AND BY ITS ACCEPTANCE HEREOF, ADMINISTRATIVE AGENT ON BEHALF OF THE SECURED PARTIES, (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY SECURED PARTY OR PLEDGOR HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH SECURED PARTY OR PLEDGOR WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO
ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

          SECTION 6.8. Postponement of Subrogation. Each Pledgor subordinates and agrees not to
exercise any rights against any Borrower which it may acquire by way of subrogation or
contribution, by any payment made hereunder or otherwise, until all the Secured Obligations shall
have been irrevocably paid in full and the Credit Agreement shall have been irrevocably terminated.
If any amount shall be paid to a Pledgor on account of such subrogation or contribution rights at
any time when all the Secured Obligations shall not have been paid in full, such amount shall be
held in trust for the benefit of the Secured Parties and shall forthwith be paid to the
Administrative Agent to be credited and applied to the Secured Obligations, whether matured or
unmatured, in accordance with the terms of the Credit Agreement.

13

 

          SECTION 6.9. Limitation of Liability. No Secured Party, or any Affiliate thereof,
shall have any liability with respect to, and THE PLEDGORS HEREBY WAIVE, RELEASE AND AGREE NOT TO
SUE UPON, ANY CLAIM FOR ANY SPECIAL, INDIRECT, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES
SUFFERED BY THE PLEDGORS IN CONNECTION WITH, ARISING OUT OF, OR IN ANY WAY RELATED TO THIS
AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREIN OR ANY ACT, OMISSION OR EVENT OCCURRING IN
CONNECTION HEREWITH.

          SECTION 6.10. Waiver of O.C.G.A. Section 10-7-24. Each Pledgor hereby waives all
rights under Section 10-7-24 of the Official Code of Georgia Annotated, as amended, including any
right to require Secured Parties to proceed against the Borrowers.

          SECTION 6.11. Counterparts, Effectiveness, etc. This Agreement may be executed by the
parties hereto in several counterparts, each of which shall be executed by the Pledgors and the
Administrative Agent and be deemed to be an original and all of which shall constitute together but
one and the same agreement. This Agreement shall become effective when counterparts hereof
executed on behalf of each Pledgor shall have been received by the Administrative Agent and notice
thereof shall have been given by the Administrative Agent to each Pledgor, each Lender and the
Issuing Bank.

          SECTION 6.12. Headings. The headings of the sections and other provisions hereof are
provided for convenience only and shall not in any way affect the meaning or construction of any
provision of this Agreement.

          SECTION 6.13. Severability. Any provision of this Agreement held to be illegal,
invalid or unenforceable in any jurisdiction, shall, as to such jurisdiction, be ineffective to the
extent of such illegality, invalidity or unenforceability without affecting the legality, validity
or enforceability of the remaining provisions hereof or thereof; and the illegality, invalidity or
unenforceability of a particular provision in a particular jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

(Signatures on following page)

14

 

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

	 	 	 	 	 
	 	

PRG-SCHULTZ INTERNATIONAL, INC., a Georgia corporation

 	 
	 	By:  	/s/ Robert B. Lee 	 
	 	 	Name:  	Robert B. Lee 	 
	 	 	Title:  	Chief Financial Officer and Treasurer	 
	 
	 	 	 	       [CORPORATE SEAL]   	 
	 
	 	PRG-SCHULTZ USA, INC., a Georgia corporation

 	 
	 	By:  	/s/ Robert B. Lee	 
	 	 	Name:  	Robert B. Lee	 
	 	 	Title:  	Chief Financial Officer and Treasurer 	 
	 
	 	[CORPORATE SEAL]   	 

	 	 	 	 	 
	 	PRG-SCHULTZ AUSTRALIA, INC., a Georgia corporation

 	 
	 	By:  	/s/ Robert B. Lee	 
	 	 	Name:  	Robert B. Lee	 
	 	 	Title:  	Chief Financial Officer and Treasurer	 
	 
	 	 	 	       [CORPORATE SEAL]   	 
	 
	 	PRG-SCHULTZ BELGIUM, INC., a Georgia corporation

 	 
	 	By:  	/s/ Robert B. Lee	 
	 	 	Name:  	Robert B. Lee 	 
	 	 	Title:  	Chief Financial Officer and Treasurer	 
	 
	 	 	 	       [CORPORATE SEAL]   	 
	 

(Signatures continue on following page)

Equity Pledge Agreement

 

 

	 	 	 	 	 
	 	THE PROFIT RECOVERY GROUP GERMANY, INC., a Georgia corporation

 	 
	 	By:  	/s/ Robert B. Lee	 
	 	 	Name:  	Robert B. Lee	 
	 	 	Title:  	Chief Financial Officer and Treasurer	 
	 
	 	 	 	       [CORPORATE SEAL]   	 
	 
	 	PRG-SCHULTZ FRANCE, INC., a Georgia corporation

 	 
	 	By:  	/s/ Robert B. Lee	 
	 	 	Name:  	Robert B. Lee	 
	 	 	Title:  	Chief Financial Officer and Treasurer	 
	 
	 	 	 	       [CORPORATE SEAL]   	 
	 

	 	 	 	 	 
	 	THE PROFIT RECOVERY GROUP NETHERLANDS, INC., a Georgia corporation

 	 
	 	By:  	/s/ Robert B. Lee	 
	 	 	Name:  	Robert B. Lee	 
	 	 	Title:  	Chief Financial Officer and Treasurer	 
	 
	 	 	 	       [CORPORATE SEAL]   	 
	 
	 	THE PROFIT RECOVERY GROUP NEW ZEALAND, INC., a Georgia corporation

 	 
	 	By:  	/s/ Robert B. Lee	 
	 	 	Name:  	Robert B. Lee	 
	 	 	Title:  	Chief Financial Officer and Treasurer	 
	 
	 	 	 	       [CORPORATE SEAL]   	 
	 

(Signatures continue on following page)

Equity Pledge Agreement

 

 

	 	 	 	 	 
	 	PRG-SCHULTZ SCANDINAVIA, INC., a Georgia corporation

 	 
	 	By:  	/s/ Robert B. Lee	 
	 	 	Name:  	Robert B. Lee	 
	 	 	Title:  	Chief Financial Officer and Treasurer	 
	 
	 	 	 	       [CORPORATE SEAL]   	 
	 
	 	PRG-SCHULTZ PORTUGAL, INC., a Georgia corporation

 	 
	 	By:  	/s/ Robert B. Lee	 
	 	 	Name:  	Robert B. Lee	 
	 	 	Title:  	Chief Financial Officer and Treasurer	 
	 
	 	 	 	       [CORPORATE SEAL]   	 

	 	 	 	 	 
	 	PRG-SCHULTZ SWITZERLAND, INC., a Georgia corporation

 	 
	 	By:  	/s/ Robert B. Lee	 
	 	 	Name:  	Robert B. Lee	 
	 	 	Title:  	Chief Financial Officer and Treasurer	 
	 
	 	 	 	       [CORPORATE SEAL]   	 
	 
	 	THE PROFIT RECOVERY GROUP SPAIN, INC., a Georgia
corporation

 	 
	 	By:  	/s/ Robert B. Lee	 
	 	 	Name:  	Robert B. Lee	 
	 	 	Title:  	Chief Financial Officer and Treasurer	 
	 
	 	 	 	       [CORPORATE SEAL]   	 
	 

(Signatures continue on following page)

Equity Pledge Agreement

 

 

	 	 	 	 	 
	 	PRG-SCHULTZ EUROPE, INC., a Georgia corporation
 	 
	 
	 	By:  	/s/ Robert B. Lee	 
	 	 	Name:  	 Robert B. Lee	 
	 	 	Title:  	Chief Financial Officer and Treasurer	 
	 
	 	 	 	       [CORPORATE SEAL]   	 
	 
	 	THE PROFIT RECOVERY GROUP ASIA, INC., a Georgia
corporation

 	 
	 	By:  	/s/ Robert B. Lee	 
	 	 	Name:  	Robert B. Lee	 
	 	 	Title:  	Chief Financial Officer and Treasurer	 
	 
	 	 	 	       [CORPORATE SEAL]   	 
	 

	 	 	 	 	 
	 	PRG-SCHULTZ CANADA, LLC, a Georgia limited liability
company

 	 

	 	 	 	 	 	
	 	 	 	
	 	By:  	

/s/ Robert B. Lee	(SEAL)	 
	 	 	Name:  	Robert B. Lee	 	
	 	 	Title:  	Chief Financial Officer, Treasurer and Controller	 	
	 	
	 	PRG INTERNATIONAL, INC., a Georgia corporation

 	 	
	 	By:  	/s/ Robert B. Lee	 	
	 	 	Name:  	Robert B. Lee	 	
	 	 	Title:  	Chief Financial Officer and Treasurer	 	
	 	
	 	 	 	       [CORPORATE SEAL]   	 	
	 	

	 	 	 	 	 	
	 	PRGDS, LLC, a Georgia limited liability company

 	 	
	 	By:  	

/s/ Robert B. Lee	                      (SEAL)	 
	 	 	Name:  	 Robert B. Lee	 	
	 	 	Title:  	Chief Financial Officer and Treasurer	 	
	 	

(Signatures continue on following page)

Equity Pledge Agreement

 

 

	 	 	 	 	 	
	 	PRGFS, INC., a Delaware corporation

 	 	
	 	By:  	/s/ Robert B. Lee	 	
	 	 	Name:  	Robert B. Lee	 	
	 	 	Title:  	Chief Financial Officer and Treasurer	 	
	 	
	 	 	 	       [CORPORATE SEAL]   	 	
	 	
	 	PRGTS, LLC, a Georgia limited liability company

 	 	
	 	By:  	

/s/ Robert B. Lee	(SEAL)
	 	 	Name:  	Robert B. Lee	 	
	 	 	Title:  	Chief Financial Officer and Treasurer	 	
	 	

	 	 	 	 	 	
	 	THE PROFIT RECOVERY GROUP MEXICO, INC., a Georgia
corporation

 	 	
	 	By:  	/s/ Robert B. Lee	 	
	 	 	Name:  	Robert B. Lee	 	
	 	 	Title:  	Chief Financial Officer and Treasurer	 	
	 	
	 	 	 	       [CORPORATE SEAL]   	 	
	 	
	 	PRG-SCHULTZ BRASIL, LLC, a Georgia limited liability
company

 	 	
	 	By:  	
/s/ Robert B. Lee	   (SEAL)	 
	 	 	Name:  	 Robert B. Lee	 	
	 	 	Title:  	Chief Financial Officer and Treasurer	 	
	 	

	 	 	 	 	 
	 	HS&A ACQUISITION — UK, INC., a Texas corporation

 	 
	 	By:  	/s/ Robert B. Lee	 
	 	 	Name:  	 Robert B. Lee	 
	 	 	Title:  	Chief Financial Officer and Treasurer	 
	 
	 	 	 	       [CORPORATE SEAL]   	 
	 

(End of signatures)

Equity Pledge Agreement

 

 

	 	 	 	 	 

SCHEDULE I

PLEDGED INTERESTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Certificate Numbers	 	Number or % of
	 	 	 	 	Class of Equity	 	(or state if	 	Equity Interests
	Pledgor	 	 Issuer	 	Interests	 	uncertificated)	 	Issued and Pledged
	PRG-Schultz International, Inc.
	 	PRG-Schultz Australia, Inc.	 	Common	 	 	5	 	 	 	100%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRG-Schultz International, Inc.
	 	PRG-Schultz Belgium, Inc.	 	Common	 	 	2	 	 	 	100%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRG-Schultz International, Inc.
	 	The Profit Recovery Group Germany, Inc.	 	Common	 	 	2	 	 	 	100%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRG-Schultz International, Inc.
	 	PRG-Schultz France, Inc.	 	Common	 	 	13	 	 	 	100%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRG-Schultz International, Inc.
	 	The Profit Recovery Group Netherlands, Inc.	 	Common	 	 	2	 	 	 	100%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRG-Schultz International, Inc.
	 	The Profit Recovery Group New Zealand, Inc.	 	Common	 	 	2	 	 	 	100%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRG-Schultz International, Inc.
	 	PRG-Schultz Scandinavia, Inc.	 	Common	 	 	2	 	 	 	100%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRG-Schultz International, Inc.
	 	PRG-Schultz Portugal, Inc.	 	Common	 	 	2	 	 	 	100%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRG-Schultz International, Inc.
	 	PRG-Schultz Switzerland, Inc.	 	Common	 	 	2	 	 	 	100%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRG-Schultz International, Inc.
	 	The Profit Recovery Group Spain, Inc.	 	Common	 	 	3	 	 	 	100%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRG-Schultz International, Inc.
	 	PRG-Schultz Europe, Inc.	 	Common	 	 	2	 	 	 	100%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRG-Schultz International, Inc.
	 	PRG-Schultz CR s.r.o	 	Common	 	 	n/a	 	 	 	65%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRG-Schultz International, Inc.
	 	PRG-Schultz Svenska A.B.	 	Common	 	 	n/a	 	 	 	65%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRG-Schultz International, Inc.
	 	PRG-Schultz Polska Sp.Zo.O	 	Common	 	 	n/a	 	 	 	65%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Certificate Numbers	 	Number or % of
	 	 	 	 	Class of Equity	 	(or state if	 	Equity Interests
	Pledgor	 	Issuer	 	Interests	 	uncertificated)	 	Issued and Pledged
	PRG-Schultz International, Inc.
	 	The Profit Recovery Group Asia, Inc.	 	Common	 	 	12	 	 	 	100%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRG-Schultz International, Inc.
	 	PRG-Schultz Canada, LLC	 	LLC membership interests	 	uncertificated	 	 	100%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRG-Schultz International, Inc.
	 	PRG International, Inc.	 	Common	 	 	2	 	 	 	100%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRG-Schultz International, Inc.
	 	PRG-Schultz USA, Inc.	 	Common	 	 	B42	 	 	 	100%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRG-Schultz International, Inc.
	 	PRG-Schultz Colombia, Ltda.	 	Common	 	 	n/a	 	 	 	65%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRG-Schultz International, Inc.
	 	The Profit Recovery Group Argentina S.A.	 	Common	 	 	n/a	 	 	 	65%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRG-Schultz International, Inc.
	 	HS&A Acquisition —  UK, Inc.	 	Common	 	 	6 	 	 	 	100%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRG-Schultz International, Inc.
	 	Meridian Corporation Limited	 	Common	 	TBD	 	 	6%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Profit Recovery Group Germany, Inc.
	 	PRG-Schultz (Deutschland) GMBH	 	Common	 	TBD	 	 	65%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Profit Recovery Group Netherlands,
Inc.
	 	PRG-Schultz Nederland, B.V.	 	Common	 	 	n/a	 	 	 	65%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Profit Recovery Group Asia, Inc.
	 	PRG-Schultz International PTE LTD	 	Common	 	 	n/a	 	 	 	65%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRG-Schultz Canada, LLC
	 	PRG-Schultz Canada Corp.	 	Common	 	TBD	 	 	65%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRG International, Inc.
	 	PRGDS, LLC	 	LLC membership interests	 	uncertificated	 	 	100%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRG International, Inc.
	 	PRGFS, Inc.	 	Common	 	 	3	 	 	 	100%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRG-Schultz Brasil, LLC
	 	Profit Recovery Brasil Ltda	 	Common	 	TBD	 	 	65%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Certificate Numbers	 	Number or % of
	 	 	 	 	Class of Equity	 	(or state if	 	Equity Interests
	Pledgor	 	Issuer	 	Interests	 	uncertificated)	 	Issued
and Pledged
	PRG-Schultz USA, Inc.
	 	PRGTS, LLC	 	LLC membership interests	 	uncertificated	 	 	100%	
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HS&A Acquisition — UK, Inc.
	 	Meridian Corporation Limited	 	Common	 	TBD	 	 	59%	
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Profit Recovery Group Mexico, Inc.
	 	The Profit Recovery Group Holdings Mexico S de RL de CV	 	Common	 	 	n/a	 	 	 	65%	

 

 

SCHEDULE II

ADDRESSES

	 	 	 
	Pledgors	 	Address
	PRG-Schultz International, Inc.

	 	600 Galleria Parkway, Suite 100

Atlanta, Georgia 30339-5986

Attention: Mr. Robert Lee, Chief Financial
Officer and Treasurer; and Victor A. Allums,
Esq., Senior Vice President, General Counsel
and Secretary

Telecopy Number: (770) 779-3034

E-Mail: robert.lee@prgx.com
vic.allums@prgx.com
	 
	 	 
	PRG-Schultz USA, Inc.

	 	600 Galleria Parkway, Suite 100

Atlanta, Georgia 30339-5986

Attention: Mr. Robert Lee, Chief Financial
Officer and Treasurer; and Victor A. Allums,
Esq., Senior Vice President, General Counsel
and Secretary

Telecopy Number: (770) 779-3034

E-Mail: robert.lee@prgx.com
vic.allums@prgx.com
	 
	 	 
	PRG-Schultz Australia, Inc.

	 	600 Galleria Parkway, Suite 100

Atlanta, Georgia 30339-5986

Attention: Mr. Robert Lee, Chief Financial
Officer and Treasurer; and Victor A. Allums,
Esq., Senior Vice President, General Counsel
and Secretary

Telecopy Number: (770) 779-3034

E-Mail: robert.lee@prgx.com
vic.allums@prgx.com
	 
	 	 
	PRG-Schultz Belgium, Inc.

	 	600 Galleria Parkway, Suite 100

Atlanta, Georgia 30339-5986

Attention: Mr. Robert Lee, Chief Financial
Officer and Treasurer; and Victor A. Allums,
Esq., Senior Vice President, General Counsel
and Secretary

Telecopy Number: (770) 779-3034

E-Mail: robert.lee@prgx.com
vic.allums@prgx.com

 

 

	 	 	 
	Pledgors	 	Address
	The Profit Recovery Group Germany, Inc.

	 	600 Galleria Parkway, Suite 100

Atlanta, Georgia 30339-5986

Attention: Mr. Robert Lee, Chief Financial
Officer and Treasurer; and Victor A. Allums,
Esq., Senior Vice President, General Counsel
and Secretary

Telecopy Number: (770) 779-3034

E-Mail: robert.lee@prgx.com
vic.allums@prgx.com

	 
	 	 
	PRG-Schultz France, Inc.

	 	600 Galleria Parkway, Suite 100

Atlanta, Georgia 30339-5986

Attention: Mr. Robert Lee, Chief Financial
Officer and Treasurer; and Victor A. Allums,
Esq., Senior Vice President, General Counsel
and Secretary

Telecopy Number: (770) 779-3034

E-Mail: robert.lee@prgx.com
vic.allums@prgx.com

	 
	 	 
	The Profit Recovery Group Netherlands, Inc.

	 	600 Galleria Parkway, Suite 100

Atlanta, Georgia 30339-5986

Attention: Mr. Robert Lee, Chief Financial
Officer and Treasurer; and Victor A. Allums,
Esq., Senior Vice President, General Counsel
and Secretary

Telecopy Number: (770) 779-3034

E-Mail: robert.lee@prgx.com
vic.allums@prgx.com

	 
	 	 
	The Profit Recovery Group New Zealand, Inc.

	 	600 Galleria Parkway, Suite 100

Atlanta, Georgia 30339-5986

Attention: Mr. Robert Lee, Chief Financial
Officer and Treasurer; and Victor A. Allums,
Esq., Senior Vice President, General Counsel
and Secretary

Telecopy Number: (770) 779-3034

E-Mail: robert.lee@prgx.com
vic.allums@prgx.com
	 
	 	 
	PRG-Schultz Scandinavia, Inc.

	 	600 Galleria Parkway, Suite 100

Atlanta, Georgia 30339-5986

Attention: Mr. Robert Lee, Chief Financial
Officer and Treasurer; and Victor A. Allums,
Esq., Senior Vice President, General Counsel
and Secretary

Telecopy Number: (770) 779-3034

E-Mail: robert.lee@prgx.com
vic.allums@prgx.com

 

 

	 	 	 
	Pledgors	 	Address
	PRG-Schultz Portugal, Inc.

	 	600 Galleria Parkway, Suite 100

Atlanta, Georgia 30339-5986

Attention: Mr. Robert Lee, Chief Financial Officer and Treasurer;

and Victor A. Allums, Esq., Senior Vice President, General

Counsel and Secretary

Telecopy Number: (770) 779-3034

E-Mail: robert.lee@prgx.com vic.allums@prgx.com
	 
	 	 
	PRG-Schultz Switzerland, Inc.

	 	600 Galleria Parkway, Suite 100

Atlanta, Georgia 30339-5986

Attention: Mr. Robert Lee, Chief Financial Officer and Treasurer;

and Victor A. Allums, Esq., Senior Vice President, General

Counsel and Secretary

Telecopy Number: (770) 779-3034

E-Mail: robert.lee@prgx.com vic.allums@prgx.com
	 
	 	 
	The Profit Recovery Group Spain, Inc.

	 	600 Galleria Parkway, Suite 100

Atlanta, Georgia 30339-5986

Attention: Mr. Robert Lee, Chief Financial Officer and Treasurer;

and Victor A. Allums, Esq., Senior Vice President, General

Counsel and Secretary

Telecopy Number: (770) 779-3034

E-Mail: robert.lee@prgx.com vic.allums@prgx.com
	 
	 	 
	PRG-Schultz Europe, Inc.

	 	600 Galleria Parkway, Suite 100

Atlanta, Georgia 30339-5986

Attention: Mr. Robert Lee, Chief Financial Officer and Treasurer;

and Victor A. Allums, Esq., Senior Vice President, General

Counsel and Secretary

Telecopy Number: (770) 779-3034

E-Mail: robert.lee@prgx.com vic.allums@prgx.com
	 
	 	 
	The Profit Recovery Group Asia, Inc.

	 	600 Galleria Parkway, Suite 100

Atlanta, Georgia 30339-5986

Attention: Mr. Robert Lee, Chief Financial Officer and Treasurer;

and Victor A. Allums, Esq., Senior Vice President, General

Counsel and Secretary

Telecopy Number: (770) 779-3034

E-Mail: robert.lee@prgx.com vic.allums@prgx.com

 

 

	 	 	 
	Pledgors	 	Address
	PRG-Schultz Canada, LLC

	 	600 Galleria Parkway, Suite 100

Atlanta, Georgia 30339-5986

Attention: Mr. Robert Lee, Chief Financial Officer, Treasurer and

Controller; and Victor A. Allums, Esq., Senior Vice President,

General Counsel and Secretary

Telecopy Number: (770) 779-3034

E-Mail: robert.lee@prgx.com vic.allums@prgx.com
	 
	 	 
	PRG International, Inc.

	 	600 Galleria Parkway, Suite 100

Atlanta, Georgia 30339-5986

Attention: Mr. Robert Lee, Chief Financial Officer and Treasurer;

and Victor A. Allums, Esq., Senior Vice President, General

Counsel and Secretary

Telecopy Number: (770) 779-3034

E-Mail: robert.lee@prgx.com vic.allums@prgx.com
	 
	 	 
	PRGDS, LLC

	 	600 Galleria Parkway, Suite 100

Atlanta, Georgia 30339-5986

Attention: Mr. Robert Lee, Chief Financial Officer and Treasurer;

and Victor A. Allums, Esq., Senior Vice President, General

Counsel and Secretary

Telecopy Number: (770) 779-3034

E-Mail: robert.lee@prgx.com vic.allums@prgx.com
	 
	 	 
	PRGFS, Inc.

	 	600 Galleria Parkway, Suite 100

Atlanta, Georgia 30339-5986

Attention: Mr. Robert Lee, Chief Financial Officer; and Victor A.

Allums, Esq., Vice President and Secretary

Telecopy Number: (770) 779-3034

E-Mail: robert.lee@prgx.com vic.allums@prgx.com
	 
	 	 
	PRGTS, LLC

	 	600 Galleria Parkway, Suite 100

Atlanta, Georgia 30339-5986

Attention: Mr. Robert Lee, Chief Financial Officer and Treasurer;

and Victor A. Allums, Esq., Senior Vice President, General

Counsel and Secretary

Telecopy Number: (770) 779-3034

E-Mail: robert.lee@prgx.com vic.allums@prgx.com

 

 

	 	 	 
	Pledgors	 	Address
	The Profit Recovery Group Mexico, Inc.

	 	600 Galleria Parkway, Suite 100

Atlanta, Georgia 30339-5986

Attention: Mr. Robert Lee, Chief Financial Officer and Treasurer;

and Victor A. Allums, Esq., Senior Vice President, General

Counsel and Secretary

Telecopy Number: (770) 779-3034

E-Mail: robert.lee@prgx.com vic.allums@prgx.com
	 
	 	 
	PRG-Schultz Brasil, LLC

	 	600 Galleria Parkway, Suite 100

Atlanta, Georgia 30339-5986

Attention: Mr. Robert Lee, Chief Financial Officer and Treasurer;

and Victor A. Allums, Esq., Senior Vice President, General

Counsel and Secretary

Telecopy Number: (770) 779-3034

E-Mail: robert.lee@prgx.com vic.allums@prgx.com
	 
	 	 
	HS&A Acquisition — UK, Inc.

	 	600 Galleria Parkway, Suite 100

Atlanta, Georgia 30339-5986

Attention: Mr. Robert Lee, Chief Financial Officer and Treasurer;

and Victor A. Allums, Esq., Senior Vice President, General

Counsel and Secretary

Telecopy Number: (770) 779-3034

E-Mail: robert.lee@prgx.com vic.allums@prgx.comexv10w1

Exhibit 10.1

M&T BANK CORPORATION

2009 EQUITY INCENTIVE COMPENSATION PLAN

* * *

ANNUAL STOCK BASE SALARY AWARD AGREEMENT

GRANTEE: <<NAME>>

DATE OF
GRANT: <<DATE>>

ANNUAL STOCK BASE SALARY: <<AMOUNT>>

M&T Bank Corporation (the “Company”), pursuant to action of the Nomination, Compensation and
Governance Committee (the “Committee”),has determined that going forward and until the Committee
determines otherwise, Grantee shall be entitled to additional base salary during your employment
with the Company, on an annualized basis, in the amount of Annual Stock Base Salary indicated
above. The Annual Stock Base Salary shall be paid to you in shares of Common Stock of the Company
pursuant to the M&T Bank Corporation 2009 Equity Incentive Compensation Plan (the “Plan”) and is
subject to the terms and conditions of the Plan and this Agreement. As used herein, the term
“Agreement” shall mean, collectively, this cover page and the related Terms and Conditions of
Annual Stock Base Salary Award delivered to the Grantee with this cover page. Capitalized terms
used in this Agreement without definition shall have the meanings assigned to them in the Plan. A
copy of the Plan can be viewed and downloaded from the Company’s Intranet under the Human Resources
page.

Subject to the terms of the Plan and this Agreement, including without limitation, the Grantee’s
fulfillment of the employment requirements in Paragraph 5(b) and the restrictions on transfer in
Paragraph 5(c) of the Terms and Conditions of Annual Stock Base Salary Award, the Annual Stock Base
Salary acquired hereunder shall be fully vested when awarded and paid to you in accordance with the
applicable provisions of the Plan and this Agreement.

     IN WITNESS WHEREOF, the parties have caused this Agreement to be effective as of the Date of
Grant.

	 	 	 	 	 
	 	M&T BANK CORPORATION

 	 
	 	By:  	 	 
	 	 	Stephen J. Braunscheidel 	 
	 	 	Executive Vice President — Human Resources 	 
	 
	 	 	 
	 	  	
 	 
	 	 	     <<Name>> 	 
	 	 	 	 

 

 

	 	 	 	 	 

M&T BANK CORPORATION

2009 EQUITY INCENTIVE COMPENSATION PLAN

* * *

TERMS AND CONDITIONS

OF

ANNUAL STOCK BASE SALARY AWARD

     1. Definitions. In this Agreement, except where the context otherwise
indicates, the following definitions apply. Capitalized terms used herein without
definition shall have the meanings assigned to them in the Plan.

          (a) “Annual Stock Base Salary” means the dollar amount subject to the Annual
Stock Base Salary Award set forth as the “Annual Stock Base Salary” on the cover page
of this Agreement to be paid in shares of Common Stock.

          (b) “Annual Stock Base Salary Award” means the Annual Stock Base Salary granted
to the Grantee on the cover page of this Agreement.

          (c) “Date of Grant” means the date set forth as the “Date of Grant” on the cover
page of this Agreement.

          (d) “Grantee” means the person identified as the “Grantee” on the cover page of
this Agreement.

          (e) “Payment Date” means the date upon which bi-weekly installments, net of any
applicable deductions and withholding, of Annual Stock Base Salary are paid to you.

          (f) “Third Party Administrator” means the entity to which the Committee has
delegated its authority to administer the issuance of Annual Stock Base Salary
granted under the Plan.

     2. Grant of Annual Stock Base Salary Award; Effective Date. The Annual
Stock Base Salary Award granted hereby is granted in accordance with the cover page of this
Agreement and is effective, on an annualized basis, as of January 1, 2010.

     3. Payment of Annual Stock Base Salary Award. The Annual Stock Base Salary
Award will be paid in shares of Common Stock on each respective Payment Date. Subject to
your continued employment with the Company and except as otherwise provided in this
Agreement, Grantee’s Annual Stock Base Salary shall be payable in bi-weekly installments, at
the conclusion of each of the Company’s regular bi-weekly pay periods, in accordance with
the Company’s payroll practice for similarly situated employees, as in effect from time to
time. The first Payment Date will be February 12, 2010 and will include Annual Stock Base
Salary earned since January 3, 2010.

     4. Number of Shares. The number of shares of Common Stock to be paid to
Grantee with respect to each bi-weekly pay period will be determined with respect to each
pay period by dividing 1/26th of the Annual Stock Base Salary by the reported
closing price on the New York Stock Exchange (“NYSE”) for a share of Common Stock on the Payment Date

- 1 -

 

for such period (or if not a NYSE trading day, then on the immediately
preceding trading day). The number of shares of Common Stock to be paid to you with respect
to a bi-weekly pay period during which you terminate employment, shall be pro-rated based on
the number of days during such pay period until the date of your termination of employment.
[If the number of shares contains a fractional amount, that fractional amount shall be paid
in fractional shares of Common Stock.]

     5. Terms of the Annual Stock Base Salary Award.

          (a) Vesting. Shares of Common Stock issued to the Grantee pursuant to
this Agreement shall be fully vested as of the applicable Payment Date, and shall be
evidenced in such manner as the Committee may deem appropriate, including book-entry
registration or issuance of one or more stock certificates.

          (b) Employment Requirement; Forfeiture. Except as provided herein, the
Grantee must remain continuously employed by the Company or one of its Affiliates
since the Date of Grant and until the Annual Stock Base Salary Award (or a portion
thereof) has been paid in order to retain the Annual Stock Base Salary Award (or
portion thereof, as the case may be). If the Grantee’s employment with the Company
or an Affiliate terminates for any reason, including for Cause or as a result of the
Grantee’s Resignation (including due to death, Retirement or Disability), before the
Grantee’s entire Annual Stock Base Salary Award has been paid, the Grantee will
forfeit that portion of the Annual Stock Base Salary that has not been paid or is not
payable as of the date of the Grantee’s termination of employment.

          (c) Transfer Restrictions. The shares of Common Stock subject to this
Agreement and paid during 2010 may not be sold, transferred, or otherwise disposed
of, pledged or otherwise hypothecated until the earlier of (i) the date on which any
obligation arising from the financial assistance provided to the Company under the
Troubled Asset Relief Program (“TARP”) is no longer outstanding (disregarding any
warrants to purchase Common Shares that were issued to the U.S. Department of
Treasury), or (ii) January 1, 2012 (the “Transfer Restrictions”). The Transfer
Restrictions shall lapse and be of no further effect as of the date (a) Grantee’s
employment with the Company or an Affiliate is terminated due to Grantee’s death or
Disability, or (b) a Change in Control occurs. Any purported transfer or encumbrance
of the shares of Common Stock prior to the lapse of the Transfer Restrictions shall
be void, and the other party to any such purported transaction shall not obtain any
rights to or interest in such shares of Common Stock.

          (d) No Acceleration. Except as provided above in Paragraph 5(b), the
Transfer Restrictions shall continue to apply with respect to any Common Stock
previously paid to Grantee upon the Grantee’s termination of
employment with the Company or an Affiliate for any reason, including
Retirement.

     6. Voting and Dividends. Prior to being awarded and paid in Common Stock in
accordance with this Agreement, the Grantee shall have no rights of a shareholder with
respect to the Annual Stock Base Salary Award. Once all or a portion of the Annual Stock
Base Salary Award is awarded and paid, the Grantee shall have the right to vote shares of
Common Stock and to receive any cash dividends or cash distributions that may be paid with
respect thereto. In the event of a stock dividend, stock distribution, stock split,
division of shares or other corporate structure change which results in the issuance of
additional shares with respect to any Common Stock, such additional shares will be subject
to the restrictions

 - 2 - 

 

of this Annual Stock Base Salary Award in the same manner and for so
long as such Common Stock remains subject to such restrictions.

     7. Stock Certificates; Legend. Any stock certificate or certificates
representing Common Stock shall be held by the Company prior to lapse of the Transfer
Restrictions, and any such certificate (and to the extent determined necessary or
appropriate by the Company, any other evidence of ownership of Common Stock) shall contain
the following legend:

THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES OF STOCK REPRESENTED HEREBY
ARE SUBJECT TO THE TERMS AND CONDITIONS (INCLUDING FORFEITURE) OF THE M&T BANK
CORPORATION 2009 EQUITY INCENTIVE COMPENSATION PLAN AND AN ANNUAL STOCK BASE SALARY
AWARD AGREEMENT ENTERED INTO BETWEEN THE REGISTERED OWNER HEREOF AND M&T BANK
CORPORATION. COPIES OF SUCH PLAN AND AGREEMENT ARE ON FILE IN THE OFFICES OF M&T
BANK CORPORATION.

As soon as administratively feasible after the lapse of the Transfer Restrictions, the Company will
deliver to the Grantee evidence of the Grantee’s ownership (by book entry or certificate) of the
Common Stock, without the aforesaid legend.

     8. Taxes.

          (a) Payment. The Grantee expressly acknowledges that the payment of
Common Stock acquired under this Annual Stock Base Salary Award will give rise to
ordinary income that is subject to tax withholding. The amount of income realized
will be the Fair Market Value of the Common Stock paid to the Grantee upon a Payment
Date.

          (b) Withholding. The Company’s obligation to issue or deliver shares of
Common Stock upon a Payment Date shall be subject to the satisfaction of any
applicable federal, state, local or foreign tax withholding requirements (including
the Grantee’s FICA obligation). The Grantee may satisfy any such withholding
obligation by any of the following means or by a combination of such means: (i)
tendering a cash payment; or (ii) authorizing the Company or the Third Party
Administrator to cancel or sell shares of Common Stock otherwise issuable to the
Grantee. For purposes of this Paragraph 8(b),shares of Common Stock that are cancelled, sold and/or delivered to satisfy
applicable withholding taxes shall be valued at their Fair Market Value on the date
the withholding tax obligation arises.

     9. Restriction on Issuance of Covered Shares. Notwithstanding any other
provision of this Agreement, the Grantee agrees, for himself or herself and his or her
successors, that the shares of Common Stock to be paid under this Agreement will not be
issued at any time that the Company does not have in effect a registration statement under
the Securities Act of 1933, as amended, relating to the offer of Common Stock to the Grantee
under the Plan, unless the Company agrees to permit such issuance. The Grantee further
agrees, for himself or herself and his or her successors, that, upon
the issuance of any shares of Common Stock, he or she will, upon the request of the Company, agree in writing
that he or she is acquiring such shares for investment only and not with a view to resale,
and that he or she will not sell, pledge or otherwise dispose of such shares so issued
unless and until (a) the Company is furnished with an opinion of counsel to the effect that
registration of such shares pursuant to the Securities Act of 1933, as amended, is not
required by that Act

 - 3 - 

 

and the rules and regulations thereunder; (b) the staff of the
Securities and Exchange Commission has issued a “no-action” letter with respect to such
disposition; or (c) such registration or notification as is, in the opinion of counsel for
the Company, required for the lawful disposition of such shares has been filed by the
Company and has become effective; provided, however, that the Company is not obligated
hereby to file any such registration or notification. The Grantee further agrees that the
Company may place a legend embodying such restriction on the
certificates evidencing such shares.

     10. Employment. Neither the Annual Stock Base Salary Award evidenced by this
Agreement nor any term or provision of this Agreement shall constitute or be evidence of any
understanding, express or implied, on the part of the Company or any of its Affiliates to
employ the Grantee for any period. Whenever reference is made in this Agreement to the
employment of the Grantee, it means employment by the Company or an Affiliate.

     11. Subject to the Plan. The Annual Stock Base Salary Award evidenced by this
Agreement is subject to the terms and conditions of the Plan, which are incorporated herein
by reference and made a part hereof, but the terms of the Plan shall not be considered an
enlargement of any benefits under this Agreement. In addition, the Annual Stock Base Salary
Award is subject to any rules and regulations promulgated by the Committee.

     12. Governing Law. The validity, construction, interpretation and
enforceability of this Agreement shall be determined and governed by the laws of the State
of New York without giving effect to the principles of conflicts of laws.

     13. Compliance with Executive Compensation Restrictions for TARP Recipients;
Amendment and Modification. The Committee may, in its sole discretion, and without the
Grantee’s consent, at any time terminate, suspend or modify this Agreement. The terms and
conditions of this Agreement are intended to comply with applicable law and shall be subject
to and limited by any requirements or limitations that may apply under any applicable law,
including the Emergency Economic Stabilization Act of 2008 as amended from time to time,
including as amended by the American Recovery and Reinvestment Act of 2009 (“EESA”) and all regulations and
guidance promulgated thereunder (the “Executive Compensation Restrictions”), whether
currently existing or hereafter enacted or promulgated. In the event that all or any portion
of this Agreement is found to be conflict with the requirements of EESA and the Executive
Compensation Restrictions, then in such event this Agreement shall be automatically modified
to reflect the requirements of the law, regulation and/or guidance, and this Award shall be
interpreted and administered accordingly. As a condition of the Grantee’s receiving the base
salary increase payable in Common Stock under this Agreement, the Grantee acknowledges (i)
that this Agreement remains subject to the requirements of EESA and the Executive
Compensation Restrictions, (ii) that it is subject to modification in order to comply with
EESA and the Executive Compensation Restrictions, and (iii) that the Grantee agrees to
immediately repay all amounts that may have been paid to the Grantee under this Agreement
that are later determined to be in conflict with the requirements of EESA and the Executive
Compensation Restrictions.

 - 4 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]