Document:

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                     EMPLOYMENT AND NONCOMPETITION AGREEMENT

         THIS EMPLOYMENT AND NONCOMPETITION AGREEMENT (the "Agreement") is made
and entered into effective as of the 1st day of April, 2004 (the "Effective
Date"), by and between Blackbaud, Inc., a South Carolina corporation (the
"Company") and Robert J. Sywolski ("Executive").

                                    RECITALS

         WHEREAS, the Company and Executive entered into an Employment and
Noncompetition Agreement on or about March 1, 2000 (the "2000 Employment
Agreement"), the term of which will expire as of March 31, 2004; and

         WHEREAS, the Company and Executive desire to continue Executive's
employment as the President and Chief Executive Officer of the Company; and

         WHEREAS, the Board of Directors ("Board") of the Company has determined
what a reasonable compensation will be for Executive for the term of this
present Agreement, and has offered Executive continued employment for such
compensation and other benefits set forth herein, and Executive is willing to
accept continued employment on such terms.

         NOW, THEREFORE, in consideration of the foregoing premises and the
mutual covenants of the parties set forth herein, and for other good and
valuable new consideration, the receipt and sufficiency of which are
acknowledged, IT IS HEREBY AGREED AS FOLLOWS:

                                    AGREEMENT

         1. Employment; Term. Subject to and upon the terms and conditions
herein provided, the Company hereby agrees to employ Executive and Executive
hereby agrees to be employed by the Company for the term of this Agreement,
which term shall begin as of the Effective Date and shall continue until March
31, 2006 (the "Term") unless earlier terminated as provided herein.

         2. Executive Responsibilities. During the Term, Executive shall serve
as President and Chief Executive Officer of the Company, and shall have the
power and authority to conduct the business of the Company commensurate with the
office of Chief Executive Officer. Executive shall perform duties consistent
with Executive's knowledge, experience and position with the Company. In
performing such duties, Executive shall be subject to and shall abide by all
policies and procedures developed by the Company for, and all the rules and
regulations applicable to, senior executives of the Company.

         During the Term, Executive shall devote his entire business time,
energies, skills and attention to the affairs and activities of the Company and
the discharge of his duties and responsibilities; provided, however, Executive
shall be allowed to continue to serve on the Board of Directors of no more than
three (3) outside for-profit companies and such additional boards of directors
as have been or may be approved in advance by the Chairman of the Board of
Directors; provided further, however, that Executive's ability to devote the
required time,

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energies, skills and attention to perform his duties hereunder is not impaired.
It is contemplated that Executive shall perform charitable and industry related
work, and may serve on the board of directors of such organizations. For such
time that Executive is the President and Chief Executive Officer of the Company,
he shall be elected as a director of the Company.

         3. Compensation.

                  3.1 Base Salary. In consideration for the services provided
hereunder, the Company shall pay to Executive an annual base salary of
$525,000.00, subject to applicable federal, state and local payroll taxes, and
other withholdings required by law or properly requested by Executive (the "Base
Salary"). The Base Salary shall be payable in conformity with the Company's
customary payroll practices. Such Base Salary shall be subject to annual review
for increase in the sole discretion of the Company's Board.

                  3.2 Bonus.

                  (a) During the Term of this Agreement, Executive shall be
eligible to receive a bonus ("Bonus Compensation"). The formula to be used to
calculate the aggregate amount of Bonus Compensation payable for each year of
this Agreement shall be based upon the formula set forth in the Company's 2004
Bonus Plan, attached hereto as Schedule 3.2 (a).

                  3.3 Additional Compensation. In addition to Base Salary and
any Bonus Compensation, Executive shall be eligible for the following additional
compensation.

                  a. Executive, at the Company's expense, shall be eligible to
         participate in all employee benefit plans and fringe benefits
         (including post retirement benefit plans and programs, if any) as may
         be provided by the Company from time to time on the same basis as other
         senior executives of the Company are eligible, subject to and to the
         extent that Executive is eligible under such benefit plans in
         accordance with their respective terms.

                  b. Executive shall be entitled to reasonable periods of paid
         vacation, personal and sick leave during the Term in accordance with
         the Company's policies regarding vacation and leaves for senior
         executives of the Company.

                  c. The Company shall pay or reimburse Executive for all of his
         out of pocket expenses reasonably incurred in the performance of his
         duties hereunder on behalf of the Company, including, but not limited
         to, overnight delivery charges, long distance telephone and facsimile
         charges and travel expenses (including airfare, hotels, car rental
         expenses and meals), all in accordance with the Company's expense
         reimbursement policy. Payment shall be due after the Company's receipt
         of Executive's invoice or expense report therefor and in accordance
         with the Company's expense reimbursement policies. In addition, the
         Company shall reimburse Executive in an amount up to $5,000.00 annually
         for professional fees incurred by Executive for income tax and estate
         planning, and up to $10,000 for Executive's out-of-pocket legal
         expenses incurred in connection with the negotiation of this Agreement.

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                  d. During the Term, the Company shall provide the Executive
         with health and disability insurance, in scope and coverage equivalent
         to that provided to other senior executives of the Company; provided,
         however, that the disability insurance coverage shall be for an amount
         not less than 80% of Executive's Base Salary and such coverage may be
         provided by the Company supplementing benefits consistent with the
         Company's existing group disability policy.

                  e. Pursuant to the 2000 Employment Agreement, the Company
         granted Executive an option (the "Option") to purchase up to seven
         percent (7%) of the fully-diluted Common Stock of the Company, subject
         to the vesting schedule, terms, conditions and restrictions set forth
         in a the Option Agreement dated March 8, 2000, a copy of which is
         attached hereto as Exhibit A (the "Option Agreement"), and the
         Company's Stock Plan. In accordance with the 2000 Employment Agreement,
         the shares subject to the Option will vest immediately: (i) upon
         consummation of an initial public offering of the Company's stock, or
         (ii) upon a change of control. A "Change of Control" shall mean the
         consummation of (i) a merger or consolidation in which the shareholders
         of the Company immediately prior to the merger or consolidation cease
         to own at least 50% of the combined entity immediately following the
         merger or consolidation, or (ii) a sale of all or substantially all of
         the assets of the Company (other than to Hellman & Friedman Capital
         Partners III, L.P. and its affiliates or an entity in which they are
         the controlling members). Notwithstanding anything to the contrary in
         this Agreement, any Company stock plan, or the Option Agreement, in the
         event Executive is terminated by the Company without Cause, Executive
         shall have until the termination date of the Option Agreement to
         exercise such Option for shares vested at the date of such termination.

                  f. The Company will reimburse Executive for the costs of one
         (1) family membership in the Daniel Island Club.

                  g. The Company shall (i) provide Executive with a car
         comparable to those provided for senior executives of the Company or
         (ii) provide Executive an allowance for a car consistent with the
         allowance provided for senior executives of the Company. In either
         case, the Company shall either cover or reimburse Executive the
         reasonable costs of maintenance and upkeep therefor. Upon retirement of
         the Executive or upon termination or expiration of this Agreement, the
         Executive may purchase any such Company-owned automobile for its then
         book value.

                  h. The Company shall, upon retirement of the Executive or upon
         termination or expiration of this Agreement where the termination is
         other than For Cause, provide so long as commercially available, group
         health and life insurance plans for Executive and his spouse until the
         last to die of the Executive and his spouse, at the same level and on
         substantially similar terms and conditions as in effect for current
         employees of the Company, provided that such coverage shall continue
         only so long as Executive and/or his spouse, as applicable, shall
         reimburse the Company for the cost of such coverage.

                  i. With respect to the Option, in the event that the Company
         shall declare a cash dividend on the shares of common stock underlying
         the Option, and at such time, the Company does not have a class of
         securities registered under the 1933 Securities Act, the

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         Company shall make a payment to Executive, as selected in writing by
         Executive, of either (i) a sum of cash equal to the amount of the
         aggregate dividend that would have been payable to Executive assuming
         for purposes of such calculation that Executive owned all of the shares
         of common stock underlying the Option, or (ii) a combination of fifty
         (50%) percent of the sum of cash payable under (i) above and a
         reduction in the per share strike price of the Option equal to fifty
         (50%) of the sum payable under (i) above. For example, if Executive
         owned an option to purchase 100,000 shares and at such time a dividend
         of $1.00 were declared, Executive would be entitled to receive either
         (i) $100,000 in cash or (ii) $50,000 in cash and a reduction of $.50
         per share in the strike price of his options.

         With respect to each of the items of benefit listed in this Section 3
and any vesting or other criteria for eligibility applicable thereto, Executive
shall be credited with length of service beginning as of the initial date of his
employment by the Company, except as otherwise required by law.

         4. Termination.

                  4.1 For Cause By Company. During the Term, the Company may
terminate Executive's employment under this Agreement at any time for "Cause"
and Executive shall thereafter be entitled to no compensation or benefits under
this Agreement, except for accrued but unpaid salary, vacation, benefits and
reimbursements, through the date of termination. For purposes of this Agreement,
"Cause" means:

                  a. Executive's conviction, that is final and non-appealable,
         of, or plea of nolo contendere to, any crime (whether or not involving
         the Company) that constitutes a felony in the jurisdiction involved
         (other than unintentional motor vehicle felonies and excluding routine
         traffic citations), other than a felony predicated exclusively on
         Employee's Vicarious Liability. "Vicarious Liability" for purposes of
         this Agreement shall mean any liability which is based on acts of the
         Company for which the Executive is charged solely as a result of his
         offices with the Company and in which he was not directly involved or
         did not have prior knowledge of such actions or intended actions.

                  b. any act of theft, fraud or embezzlement, or any other
         willful misconduct or willful dishonest behavior by Executive, which is
         materially detrimental to the business, operations of the Company;

                  c. Executive's continuing willful failure or refusal to
         perform his reasonably assigned duties (consistent with past practice
         of the Company) under this Agreement in accordance with Section 2
         (other than due to his incapacity due to illness or injury), provided
         that such willful failure or refusal is not corrected as promptly as
         practicable, and in any event within thirty (30) days after Executive
         shall have received written notice stating the nature of such failure
         or refusal; or

                  d. Executive's violation of any of his material obligations
         contained in that certain Employee Nondisclosure and Developments
         Agreement dated as of the date hereof and attached as Exhibit B hereto.

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         For purposes of this Agreement, no act or omission by Executive shall
be willful if reasonably believed by Executive to be in or not contrary to, the
best interests of the Company.

                  4.2 Without Cause by Company. During or after the Term, the
Company may terminate Executive's employment under this Agreement at any time
and for any reason without Cause. If the Company terminates Executive's
employment pursuant to the provisions of this Section 4.2 during the Term
(without cause), Executive shall, in addition to all accrued but unpaid Base
Salary and Bonus Compensation through the date of termination, following such
termination, receive a lump-sum amount equal to the Base Salary being paid to
him immediately prior to such termination for the remainder of the Term along
with such accrued rights as may be vested as of such date under any Company
benefits and Bonus Compensation plans (the "Severance Payment"). In the event of
any such termination, Executive shall be entitled to the applicable Severance
Payment set forth above and no further severance or other compensation or
benefits, except those specified under Section 3.3 (h).

                  4.3 Without Reason By Executive. During the Term, Executive
may voluntarily terminate his employment by giving the Company written notice no
less than ninety (90) days in advance of the effective date of such termination.
If Executive voluntarily terminates his employment pursuant to the provisions of
this Section 4.3, Executive shall not be entitled to receive any compensation or
benefits for the period following the date of such termination other than the
proceeds of, or payment of any benefits under, any pension plans or other
similar plans in effect on the date thereof. In the event of any such
termination, Executive shall be entitled to accrued and unpaid salary, vacation,
benefits and reimbursements through the termination date and no further
severance or other compensation or benefits.

                  4.4 For Good Reason by Executive. During the Term, Executive
may terminate his employment under this Agreement at any time for "Good Reason."
For purposes of this Agreement, "Good Reason" means:

                  a. Any materially adverse change or diminution in the office,
title, duties, powers, authority or responsibilities of Executive, provided such
change or diminution continues uncorrected for a period of thirty (30) days
after the Company shall have received written notice stating the nature of such
change or diminution;

                  b. The occurrence of a Change of Control, provided that within
sixty (60) days after such occurrence or the date Executive is notified thereof,
whichever is later, Executive gives the Company written notice of Executive's
intention to terminate on an effective date of termination that is no less than
ninety (90) days after the date of such notice; or

                  c. A failure of the Company to pay Executive any Base Salary,
Bonus Compensation, benefits or, unless there is a good faith dispute,
reimbursements that have become due and payable within 30 days after Executive
has given the Company written notice of demand therefor.

                  d. A reduction in the Executive's then Base Salary or target
Bonus Compensation or a material reduction of any material employee benefit or
perquisite enjoyed by

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him (other than as part of an across-the-board change or reduction applicable to
all senior officers of the Company).

                  e. A failure of the Executive to be elected as a director of
the Company during the term of this Agreement or his removal from such position
during such term.

                  f. A relocation of the Company's principal office, or the
Executive's own office location as assigned to him by the Company, to a location
more than 40 miles from Charleston, S.C. In the event that Executive elects not
to terminate his employment under this Section 4.4, the Company shall promptly
reimburse the Executive for the reasonable expenses he incurs in relocating his
household and family from their present location to the location of his new
office, without limitation, all expenses associated with selling his primary
residence in Charleston, S.C. and all closing costs relating to his acquisition
of a residence in the area of his new office, such a legal expenses.

                  g. Failure of the Company to obtain the assumption in writing
of its obligation to perform this Agreement by any purchaser (other than Hellman
& Friedman Capital Partners III, L.P. and its affiliates or an entity in which
they are the controlling members) of all or substantially all of the assets of
the Company within 15 days after a sale or transfer of such assets.

         Within thirty (30) days after the occurrence of a termination for Good
Reason, in addition to all accrued but unpaid Base Salary and Bonus Compensation
through the date of such termination, Executive shall be entitled to receive the
Severance Payment, and shall be entitled to receive continued coverage under
Section 3.3 (h).

                  4.5 Termination for Disability or Death. During the Term,
Executive's employment may be terminated by either party in the event Executive
suffers a physical or mental disability (as defined below) which, in the
reasonable opinion of a medical doctor selected by the agreement of the Company
and the Executive, renders him substantially unable to perform his duties under
this Agreement. In the event that the parties cannot agree on a medical doctor,
each party shall select a medical doctor and the two doctors shall select a
third who shall be the approved medical doctor for this purpose. To the extent
that the expenses associated with any such medical determination are not covered
by medical insurance, the Company shall bear all such costs. Executive shall be
deemed to be permanently disabled in the event that Executive has been unable,
for a period of ninety (90) consecutive days or one hundred eighty (180)
nonconsecutive days during any 360-day period to perform the services
contemplated hereby as a result of incapacity caused by a physical or mental
illness or injury. If Executive is terminated under this Section 4.5, he shall
be entitled to such benefits as are generally available under the Company's
disability insurance policies, if any. Except as otherwise provided herein, if
Executive dies or is terminated due to a disability under this Section 4.5,
Executive or his estate shall be entitled to accrued and unpaid salary,
vacation, benefits (including specifically the coverage provided under Section
3.3(h), reimbursements and Bonus Compensation prorated through the termination
date and no further severance or compensation or benefits. Notwithstanding
anything to the contrary in this Agreement, the Company's Stock Plan, or the
Option Agreement, upon Executive's death or disability as defined herein,
one-half (1/2) of the

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remaining unvested shares subject to the Option shall vest and Executive (or his
estate) shall have until the termination date of the Option Agreement to
exercise such Option.

                  4.6 No Mitigation: No Offset. In the event of any termination
of employment under this Section 4, the Executive shall be under no obligation
to seek other employment and there shall be no offset against amounts due the
Executive under this Agreement on account of any remuneration attributable to
any subsequent employment that he may obtain.

         5. Non-Disclosure. Executive executed an Employee Nondisclosure and
Developments Agreement, a copy of which is attached hereto as Exhibit B, the
terms and conditions of which are incorporated herein by reference as if fully
set out.

         6. Possession. Executive agrees that upon termination of this
Agreement, or upon request by the Company, Executive shall turn over to the
Company all documents, files, office supplies and any other material or work
product in his possession or control which were created pursuant to or derived
from Executive's services to the Company.

         7. Noncompetition.

                  7.1 Noncompetition Provisions. Executive recognizes and agrees
that the Company has many substantial, legitimate business interests that can be
protected only by Executive agreeing not to compete with the Company or its
subsidiaries under certain circumstances. These interests include, without
limitation, the Company's contacts and relationships with its customers, the
Company's reputation and goodwill in the industry, the financial and other
support afforded by the Company, and the Company's rights in its confidential
information. Executive therefore agrees that during his employment with the
Company and for the one (1) year period of time following the termination of
such employment, regardless of the manner or cause of such termination, he will
not, without the prior written consent of the Company, engage in any of the
following activities in the United States (the "Protected Zones"), relating to
the Protected Businesses (as defined below):

                  a. engage in, manage, operate, control or supervise, or
         participate in the management, operation, control or supervision of,
         any business or entity which provides products or services directly
         competitive with those being actively developed, manufactured,
         marketed, sold or otherwise provided by the Company or its subsidiaries
         as of the date hereof (the "Protected Businesses") in the Protected
         Zones;

                  b. have any ownership or financial interest, directly or
         indirectly, in any entity in the Protected Zones engaged in the
         Protected Businesses, including, without limitation, as an individual,
         partner, shareholder (other than as an owner of an entity in which
         Executive owns less than 5% of the economic interests), officer,
         directly, executive, principal, agent or consultant;

                  c. solicit, acquire or conduct any Protected Business from or
         with any customers of the Company or its subsidiaries (as defined
         below) in the Protected Zones;

                  d. solicit any of the employees or independent contractors of
         the Company or its subsidiaries or induce any such persons to terminate
         their employment or contractual

<PAGE>

         relationships with any such entities or take action contrary to the
         best interest of the Company; provided, however, this limitation
         against solicitation of employees or independent contractors shall not
         apply to up to two administrative level employees or independent
         contractors who may have worked closely with Executive (such as, for
         example, an executive assistant who Executive may wish to continue to
         work with); or

                  e. serve as an officer or director of, or hold an equity
         interest in, any entity engaged in any of the Protected Businesses in
         the Protected Zones.

         For purposes of this Section 7, customers of the Company or its
subsidiaries shall include those customers to whom the Company or its
subsidiaries were providing products or services at the termination of
Executive's employment, or had proposals outstanding for the provision of
services, at the time of such termination.

                  7.2 Separate Covenants. The parties understand and agree that
the noncompetition agreement set forth in this Section 7 shall be construed as a
series of separate covenants not to compete: one covenant for each country,
state and province within the Protected Zone, one for each separate line of
business of the Company, and one for each month of the noncompetition period. If
any restriction set forth in this Section 7 is held by a court of competent
jurisdiction to be unenforceable with respect to one or more geographic areas,
lines of business and/or months of duration, then Executive agrees, and hereby
submits, to the reduction and limitation of such restriction to the minimal
effect necessary so that the provisions of this Section 7 shall be enforceable.

                  7.3 Limitation. Nothing contained in this Agreement or in
Exhibit B attached hereto shall prohibit Executive from utilizing his skill,
acumen or experience after a termination of his employment with the Company in
any business not in violation of this Section 7 at any location not in violation
of this Section 7.

         8. Indemnification.

                  8.1 General Indemnification Provisions. The Company agrees
that if the Executive is made a party, or is threatened to be made a party, to
any action, suit or proceeding, whether civil, criminal, administrative or
investigative (a "Proceeding"), by reason of the fact that he is or was a
director, officer or employee of the Company or is or was serving at the request
of the Company as a director, officer, member, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, including
service with respect to employee benefit plans, whether or not the basis of such
Proceeding is the Executive's alleged action in an official capacity while
serving as a director, officer, member, employee or agent, the Executive shall
be indemnified and held harmless by the Company to the fullest extent legally
permitted or authorized by the Company's certificate of incorporation or bylaws
or resolutions of the Company's Board of Directors, or if greater, by the laws
of the State of Delaware, against all cost, expense, liability and loss
(including, without limitation, attorney's fees, judgments, fines, ERISA excise
taxes or penalties and amounts paid or to be paid in settlement) reasonably
incurred or suffered by the Executive in connection therewith, and such
indemnification shall continue as to the Executive even if he has ceased to be a
director, member, employee or agent of the Company or other entity and shall
inure to the benefit of the Executive's heirs, executors and administrators. The
Company shall advance to the Executive all reasonable costs and expenses

<PAGE>

incurred by him in connection with a Proceeding within 20 days after receipt by
the Company of a written request for such advance. Such request shall include an
undertaking by the Executive to repay the amount of such advance if it shall
ultimately be determined that he is not entitled to be indemnified against such
costs and expenses.

                  8.2 Insurance Coverage. The Company agrees to continue and
maintain a directors and officers' liability insurance policy covering the
Executive to the extent the Company provides such coverage for its other
executive officers.

         9. Saving Provision. The Company and Executive agree and stipulate that
the agreements set out in Sections 5 and 7 above are fair and reasonably
necessary for the protection of the business, goodwill, confidential
information, and other protectable interests of the Company in light of all of
the facts and circumstances of the relationship between Executive and the
Company. In the event a court of competent jurisdiction should decline to
enforce those provisions, they shall be deemed to be modified to restrict
Executive to the maximum extent which the court shall find enforceable; however,
in no event shall the above provisions be deemed to be more restrictive to
Executive than those contained herein.

         10. Injunctive Relief. Executive acknowledges that the breach or
threatened breach of any of the nondisclosure or noncompetition covenants
contained herein would give rise to irreparable injury to the Company, which
injury would be inadequately compensable in money damages. Accordingly, the
Company may seek and obtain a restraining order and/or injunction prohibiting
the breach or threatened breach of any provision, requirement or covenant of
this Agreement, in addition to and not in limitation of any other legal remedies
which may be available. Executive further acknowledges and agrees that the
agreements set out above are necessary for the protection of the Company's
legitimate goodwill and business interests and are reasonable in scope and
content.

         11. Enforcement. The provisions of this Agreement shall be enforceable
notwithstanding the existence of any claim or cause of action against the
Company by Executive or against Executive by the Company, whether predicated on
this Agreement or otherwise.

         12. Governing Law. This Agreement, the employment relationship
contemplated herein and any claim arising from such relationship, whether or not
arising under this Agreement, shall be governed by and construed in accordance
with the internal laws of the State of South Carolina, without regard to
conflict of law principles.

         13. Waiver of Breach. The waiver of any breach of any provision of this
Agreement or failure to enforce any provision hereof shall not operate or be
construed as a waiver of any subsequent breach by any party.

         14. Notices. Any notice given to a Party shall be in writing and shall
be deemed to have been given when delivered personally or sent by certified or
registered mail, postage prepaid, return receipt requested, duly addressed to
the Party concerned at the address indicated below or to such changed address as
such Party may subsequently give such notice of:

If to the Company:         Blackbaud, Inc.
                           2000 Daniel Island Drive

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                           Charleston, South Carolina 29492
                           Attention: Senior Vice President and General Counsel

If to the Executive:       Mr. Robert J. Sywolski
                           51 Legare Street
                           Charleston, South Carolina 29401

         With a copy to:
                           Edward G. R. Bennett
                           Evans, Carter, Kunes & Bennett, PA
                           115 Church Street
                           Charleston, South Carolina 29401

         15. Modification. This Agreement may be modified, and the rights,
remedies and obligations contained in any provision hereof may be waived, only
in accordance with this Section. No waiver by either party or any breach by the
other or any provision hereof shall be deemed to be a waiver of any later or
other breach thereof or as a waiver of any other provision of this Agreement.
This Agreement may not be waived, changed, discharged or terminated orally or by
any course of dealing between the parties, but only by an instrument in writing
signed by the party against whom any waiver, change, discharge or termination is
sought. No modification or waiver by the Company shall be effective without the
consent of at least a majority of the members of the Board of Directors of the
Company then in office at the time of such modification or waiver, excluding
Executive's vote as a director on such matters.

         16. Entirety. This Agreement, including any exhibits hereto, as it may
be amended pursuant to the terms hereof, represents the complete and final
agreement of the parties and shall control over any other statement,
representation or agreement by the Company (e.g., as may appear in employment or
policy manuals). This Agreement supersedes in its entirety any prior
negotiations, discussions or agreements, either written or oral, between the
parties with regard or relating to the employment of Executive by the Company.

         17. Survival. The provisions of this Agreement relating to
post-termination compensation (including, without limitation, the Severance
Payment and related rights), confidentiality and noncompetition shall survive
the expiration or termination of this Agreement.

         18. Severability. Without in any way limiting the provisions of Section
7.2, in case any one or more of the provisions contained in this Agreement for
any reason shall be held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other
provision of this Agreement, but this Agreement shall be construed and reformed
to the maximum extent permitted by law.

         19. Binding Effect; Successors. This Agreement shall inure to the
benefit of Executive and his heirs, successors, personal representatives and
assigns. Executive acknowledges that the services to be rendered by him
thereunder are unique and personal in nature. Accordingly, Executive may not
assign any of his rights or delegate any of his duties or obligations under this
Agreement. The Company shall have the right to assign or transfer this Agreement
to any successor of all of its business or assets; provided, however, that the
Company

<PAGE>

shall require any such successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company (other than (i) a successor in connection with a
reincorporation of the Company and (ii) Hellman & Friedman Capital Partners III,
L.P. and its affiliates or an entity in which they are the controlling members)
to assume expressly and agree to perform this Agreement in the same manner and
to the same extent that the Company would be required to perform it if no such
succession had taken place. As used in this Agreement, "Company" shall mean the
Company as hereinbefore defined and any successor to its business and/or assets
as aforesaid which assumes and agrees to perform this Agreement by operation of
law or otherwise.

         20. Arbitration. In the event of any dispute or claim arising out of or
in connection with this Agreement or the enforcement of rights hereunder, such
dispute or claim shall be submitted to binding arbitration in accordance with
S.C. Code Ann. ss.15-48-10 et. seq., as amended, and the then current rules and
procedures of the American Arbitration Association ("AAA"). The arbitrator shall
be selected by an agreement of the parties to the dispute or claim from the
panel of arbitrators selected by the AAA, or, if the parties cannot agree on an
arbitrator within thirty (30) days after the notice of a party's desire to have
a dispute settled by arbitration, then the arbitrator shall be selected by the
AAA in Charleston, South Carolina. The arbitrator shall apply the laws of the
State of South Carolina, without reference to rules of conflict of law or
statutory rules of arbitration, to the merits of any dispute or claim. The
determination reached in such arbitration shall be final and binding on all
parties hereto without any right of appeal or further dispute. Execution of the
determination by such arbitration may be sought in any court of competent
jurisdiction.

         In the event of any arbitration as provided under this Agreement, or
the enforcement of rights hereunder, the arbitrator shall have the authority to,
but shall not be required to, award the prevailing party its costs and
reasonable attorneys' fees.

                      [THE NEXT PAGE IS THE SIGNATURE PAGE]

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         IN WITNESS WHEREOF, the undersigned have executed this Employment and
Noncompetition Agreement effective as of the day and year first set forth above.

                                          COMPANY:
                                          -------

                                          BLACKBAUD, INC.

                                          By:    /s/ Marco W. Hellman
                                                 -------------------------------
                                          Name:  Marco W. Hellman
                                                 -------------------------------
                                          Title: Chairman
                                                 -------------------------------

                                          EXECUTIVE:
                                          ---------

                                          /s/ Robert J. Sywolski
                                          --------------------------------------
                                          Robert J. Sywolski

<PAGE>

                                    EXHIBIT A
                                    ---------

                             STOCK OPTION AGREEMENT

<PAGE>

                                    EXHIBIT B
                                    ---------

                EMPLOYEE NONDISCLOSURE AND DEVELOPMENTS AGREEMENT

         THIS EMPLOYEE NONDISCLOSURE AND DEVELOPMENTS AGREEMENT IS made and
entered into this 1st day of April, 2004, by and between Blackbaud, Inc., a
South Carolina corporation (the "Company") and Robert J. Sywolski (the
"Employee").

         WHEREAS, the Company desires to employ the Employee subject to the
terms and conditions set forth herein; and

         Employee desires to be employed by the Company and is willing to agree
to the terms and conditions set forth herein; and

         Employee understands that, in its business, the Company has developed
and uses commercially valuable technical and nontechnical information and that,
to guard the legitimate interests of the Company, it is necessary for the
Company to keep such information confidential and to protect such information as
trade secrets or by patent or copyright; and

         Employee recognizes that the computer programs, system documentation,
manuals and other materials developed by the Company are the proprietary
information of the Company, that the Company regards this information as
valuable trade secrets and that its use and disclosure must be carefully
controlled; and

         Employee further recognizes that, although some of the Company's
customers and suppliers are well known, other customers, suppliers and
prospective customers and suppliers are not so known, and the Company views the
names and identities of these customers, suppliers and prospective customers and
suppliers, as well as the content of any sales proposals, as being the Company's
trade secrets; and

         Employee further recognizes that any ideas, software or company
processes that presently are not being sold, and that therefore are not public
knowledge, are considered trade secrets of the Company; and

         Employee understands that special hardware and/or software developed by
the Company is subject to the Company's proprietary rights and that the Company
may treat those developments, whether hardware or software, as either trade
secrets, copyrighted material or patentable material, as applicable; and

         Employee understands that all such information is vital to the success
of the Company's business and that Employee, through Employee's employment, has
or may become acquainted with such information and may contribute to that
information through inventions, discoveries, improvements, software development,
or in some other manner;

         NOW, THEREFORE, in consideration of the foregoing premises and
Employee's continuation of employment, the parties agree as follows:

<PAGE>

         1. Employee will not at any time, whether during or after the
termination of his employment, reveal to any person or entity any of the trade
secrets or confidential information concerning the organization, business or
finances of the Company or of any third party that the Company is under an
obligation to keep confidential (including, but not limited to, trade secrets or
confidential information respecting inventions, research, products, designs,
methods, know-how, formulae, techniques, systems, processes, software programs,
works of authorship, customer lists, projects, plans and proposals), except (i)
as may be required in the ordinary course of performing his duties as an
employee of the Company or (ii) when required to do so by a court of law, by any
governmental agency having supervisory authority over the business of the
Company or by any administrative or legislative body (including a committee
thereof) with apparent jurisdiction to order him to divulge, disclose or make
accessible such information, and Employee shall keep secret all matters
entrusted to him and shall not use or attempt to use any such information in any
manner that may injure or cause loss to the Company.

         2. If at any time or times during Employee's employment, Employee shall
(either alone or with others) make, conceive, discover or reduce to practice any
invention, modification, discovery, design, development, improvement, process,
software program, work of authorship, documentation, formula, data, technique,
know-how, secret or intellectual property right whatsoever or any interest
therein (whether or not patentable or registrable under copyright or similar
statutes or subject to analogous protection) that relates to the business of the
Company or any of the products or services being developed, manufactured or sold
by the Company or that may be used in relation therewith (herein called
"Developments"), such Developments and the benefits thereof shall immediately
become the sole and absolute property of the Company and its assigns, and
Employee shall promptly disclose to the Company each such Development and hereby
assigns any rights Employee may have or acquire in the Developments and benefits
and/or rights resulting therefrom to the Company and its assigns without further
compensation and shall communicate, without cost or delay, and without
publishing the same, all available information relating thereto to the Company.
Upon the request of the Company and without further remuneration by the Company,
but at the expense of the Company, the Employee will execute and deliver all
documents and do other acts which are or may be necessary to document such
transfer or to enable the Company to file and prosecute applications for and to
acquire, maintain, extend and enforce any and all patents, trademark
registrations or copyrights under United States or foreign law with respect to
any such developments.

         3. During the Employee's employment, and for a period of one (1) year
thereafter, the Employee will not solicit business from any person or entity to
whom the Company or any of its affiliates has sold its products or services; nor
shall the Employee (except as permitted in Section 7.1(d) of the Employee's
employment agreement with the Company) contact, communicate with, solicit or
attempt to recruit or hire, any employee of the Company or any of its affiliates
with the intent or effect of inducing or encouraging said employee to leave the
employ of the Company or any of its affiliates or to breach other obligations to
the Company.

         4. Employee understands that this Agreement does not create an
obligation on the Company or any other person or entity to continue Employee's
employment.

         5. Employee represents that the Developments, if any, identified on
Exhibit A attached hereto comprise all the unpatented and uncopyrighted
Developments that Employee has made or conceived prior to or otherwise not in
connection with Employee's employment by the

                                       2

<PAGE>

Company, which Developments are excluded from this Agreement. Employee
understands that it is necessary only to list the title and purpose of such
Developments but not the details thereof.

                  Employee further represents that Employee's performance of all
the terms of this Agreement and as an employee of the Company does not and will
not breach any agreement to keep in confidence proprietary information acquired
by Employee in confidence or in trust prior to Employee's employment by the
Company. Employee has not entered into, and Employee agrees he will not enter
into, any agreement either written or oral in conflict herewith.

         6. Any waiver by the Company of a breach of any provision of this
Agreement shall not operate or be construed as a waiver of any subsequent breach
of such provision or any other provision hereof.

         7. Employee hereby agrees that each provision herein shall be treated
as a separate and independent clause, and the unenforceability of any one clause
shall in no way impair the enforceability of any of the other clauses herein.
Moreover, if one or more of the provisions contained in this Agreement shall for
any reason be held to be excessively broad as to scope, activity or subject so
as to be unenforceable at law, such provision or provisions shall be construed
by the appropriate judicial body by limiting and reducing it or them, so as to
be enforceable to the maximum extent compatible with the applicable law as it
shall then exist.

         8. Employee's obligations under this Agreement shall survive the
termination of Employee's employment regardless of the manner of such
termination and shall be binding upon Employee's heirs, executors,
administrators and legal representatives.

         9. The term "Company" shall include Blackbaud, Inc. and any of its
subsidiaries, subdivisions or affiliates. The Company shall have the right to
assign this Agreement to its successors and assigns, and all covenants and
agreements hereunder shall inure to the benefit of and be enforceable by said
successors or assigns. This Agreement may be amended only in a writing signed by
each of the parties hereto.

         10. This Agreement shall be governed by and construed in accordance
with the laws of the State of South Carolina. This Agreement may be executed in
counterparts, but all such counterparts shall together constitute one and the
same instrument.

                      [THE NEXT PAGE IS THE SIGNATURE PAGE]

                                       3

<PAGE>

         IN WITNESS WHEREOF, the undersigned have executed this Employee
Nondisclosure and Developments Agreement as a sealed instrument as of the date
first above written.

                                         EMPLOYEE:
                                         --------

                                         /s/ Robert J. Sywolski           (SEAL)
                                         ---------------------------------
                                         Robert J. Sywolski

                                         COMPANY:
                                         -------

                                         BLACKBAUD, INC.

                                         By:    /s/ Marco W. Hellman
                                                --------------------------------
                                         Name:  Marco W. Hellman
                                         Title: Chairman

                                       4

<PAGE>

                                    EXHIBIT A
                                    ---------

                         PRIOR DEVELOPMENTS BY EMPLOYEE

None

<PAGE>

                                 SCHEDULE 3.2(a)
                                 ---------------

         The following summarizes Executive's annual bonus plan for 2004. The
key elements of the plan are as follows:

1.       Consistent with Executive's existing employment contract, Executive
         will have a guaranteed minimum bonus of $100,000.

2.       For payments above the guaranteed minimum, Executive's plan will
         resemble the Blackbaud Corporate Incentive Plan but will also include a
         subjective portion administered at the board's discretion. Executive's
         bonus will be based 80% on attainment of key financial goals (the
         "Quantitative Award") and 20% on the board's subjective evaluation of
         Executive's performance (the "Subjective Award"). Executive's target
         bonus will be $425,000 based on achievement of the financial plan and
         full utilization of the Subjective Award. Amounts could be greater or
         less than this amount based on actual results and the board's review of
         Executive's performance.

3.       The Quantitative Award will function as follows:

         o        Performance against Board-approved budget, both Revenue and
                  "Adjusted" EBITDA (EBITDA before bonus expense), will
                  determine the size of Executive's award.

         o        In calculating performance achievement, Revenue will receive a
                  70% weighting and "Adjusted" EBITDA a 30% weighting.

         o        Actual Revenue and Actual "Adjusted" EBITDA must both achieve
                  at least 90% of budget in order for Executive to qualify for a
                  bonus exceeding the guaranteed minimum. Less than 90%
                  performance against either budget will result in a payment of
                  the guaranteed minimum amount.

         o        Executive's Quantitative Award will be determined based upon a
                  factor calculated as follows:

                  Factor = .7 x Actual Revenue + .3 x Actual "Adjusted" EBITDA
                                --------------        ------------------------
                                Budgeted Revenue      Budgeted "Adjusted" EBITDA

                  When the factor equals 1.00, Executive's Quantitative Award
                  will be 100% of the target. For each .01 that the factor is
                  greater or less than 1.00, Executive's award changes by 5% of
                  "target" down to a minimum of 50% and a maximum of 200%.

<PAGE>

         o        Executive's target Quantitative Award will be $340,000. The
                  maximum award at a factor of 1.20 will be $680,000 and the
                  minimum award at a factor of .90 will be $170,000.

4.       The Subjective Award, targeted at $85,000, will as always require
         Executive's usual (exceptional!) performance.

5.       Bonus payment will occur within 30 days following finalization of
         year-end results.<PAGE>

                                                                   EXHIBIT 10.21

[LOGO]                                                       WACHOVIA SECURITIES

                                  June 1, 2004

Blackbaud, Inc.
2000 Daniel Island Dr.
Charleston, SC 29492-7541

Attention:  Timothy V. Williams
            Chief Financial Officer

      Re:     Commitment for Arrangement of Senior Credit Facility

Ladies and Gentlemen:

      You have advised us that Blackbaud, Inc. (the "Borrower") seeks financing
for ongoing working capital requirements and other general corporate purposes as
more fully described in the attached Summary of Terms and Conditions (the "Term
Sheet"). The Term Sheet describes the general terms and conditions for a senior
unsecured revolving credit facility in the aggregate principal amount of up to
$30 million (the "Facility").

      Based upon and subject to the terms and conditions set forth in this
Commitment Letter (the "Commitment Letter"), in the Term Sheet and in the fee
letter of even date (the "Fee Letter"), Wachovia Bank, National Association
("Wachovia") is pleased to advise you of its commitment to act as sole and
exclusive administrative agent for the Facility and provide a portion of the
Facility equal to the lesser of (a) $10 million or (b) one third (1/3) of the
aggregate principal amount of the Facility on the closing date of the Facility.
Wachovia Capital Markets, LLC ("Wachovia Securities"*) is pleased to advise you
that it will act as sole lead arranger and sole book manager for the Facility.
Furthermore, Wachovia Securities commits to use its reasonable best efforts to
secure commitments for the remainder of the Facility from a syndicate of banks
and financial institutions (the "Lenders") reasonably acceptable to the Borrower
and Wachovia Securities upon the terms and subject to the conditions set forth
herein, in the Term Sheet and in the Fee Letter.

      It is understood and agreed that Wachovia Securities will manage and
control all aspects of the syndication, including decisions as to the selection
of proposed Lenders and any titles offered to proposed Lenders, when commitments
will be accepted and the final allocations of the

---------------------------
* Wachovia Securities is the trade name under which Wachovia Corporation
conducts its investment banking, capital markets and institutional securities
business through Wachovia Capital Markets, LLC, Member NYSE, NASD, SIPC, and
through other bank and non-bank and broker-dealer subsidiaries of Wachovia
Corporation.

<PAGE>

Blackbaud, Inc.
Page 2

commitments among the Lenders. You also acknowledge and agree that the services
of Wachovia as sole administrative agent and the services of Wachovia Securities
as sole lead arranger and sole book manager will be on an exclusive basis during
the term of this Commitment Letter and that, during such term, no other bank or
other financial institution will be engaged or otherwise consulted or contacted
by you regarding any other proposed senior bank facility for the Borrower or its
subsidiaries. In addition, you agree that no other agents, co-agents, arrangers
or book managers will be appointed, no other titles will be awarded and no
compensation (other than to Wachovia and Wachovia Securities or as expressly
contemplated by the Term Sheet or the Fee Letter) will be paid in connection
with the Proposed Facility unless agreed by Wachovia Securities.

      The commitments of Wachovia and Wachovia Securities hereunder are based
upon the financial and other information regarding the Borrower and its
subsidiaries previously provided to us. Accordingly, the commitments hereunder
are subject to the satisfaction of each of the following conditions precedent in
a manner reasonably acceptable to us:

      (i) each of the terms and conditions set forth herein and in the Term
Sheet;

      (ii) the absence of a material breach of any representation, warranty or
agreement of the Borrower set forth herein;

      (iii) no change, occurrence or development that could reasonably be
expected to have a material adverse effect on the business, assets, liabilities
(actual or contingent), operations, condition (financial or otherwise) or
prospects of the Borrower and its subsidiaries taken as a whole shall have
occurred or become known to us;

      (iv) the information concerning the Borrower and its subsidiaries and the
initial public offering of the Borrower's common equity securities (the "IPO")
shall not, in our reasonable judgment, differ in any material adverse manner
from the information and other matters previously disclosed to us prior to date
hereof;

      (v) the completion, to our satisfaction, of all legal, tax, business and
other due diligence with respect to the business, assets, liabilities,
operations, condition (financial or otherwise) and prospects of the Borrower and
its subsidiaries and the IPO in scope and determination reasonably satisfactory
to us;

      (vi) material compliance with all applicable laws and regulations by the
Borrower and its subsidiaries (including compliance of this Commitment Letter
and the transactions described herein with all applicable federal banking laws,
rules and regulations);

      (vii) our satisfaction that, prior to and during the primary syndication
of the Facility, there shall be no competing offering, placement or arrangement
of any debt securities or bank financing by or on behalf of the Borrower or any
of its subsidiaries except with the prior written consent of Wachovia and
Wachovia Securities;

<PAGE>

Blackbaud, Inc.
Page 3

      (viii) the negotiation, execution and delivery of definitive documentation
for the Facility consistent with the Term Sheet and otherwise reasonably
satisfactory to us;

      (ix) there not having occurred any material disruption or adverse change
in the financial, banking or capital markets that could, in our reasonable
judgment, impair the syndication of the Facility or the IPO; and

      (x) Wachovia Securities shall have received commitments (including the
commitment of Wachovia) equaling or exceeding the aggregate amount of the
Facility.

      You agree to actively assist Wachovia Securities (including, if
applicable, after the closing of the Facility) in achieving a syndication of the
Facility that is satisfactory to Wachovia Securities and you. Such syndication
may be accomplished by a variety of means, including direct contact during the
syndication between senior management and advisors of the Borrower and its
subsidiaries, and the proposed Lenders. To assist Wachovia Securities in the
syndication efforts you hereby agree (i) to provide and cause your advisors to
provide Wachovia Securities and the proposed Lenders upon our reasonable request
with all information deemed reasonably necessary by Wachovia Securities to
complete the syndication, including, but not limited to, information and
evaluations prepared by you and any of your subsidiaries and their advisors, or
on their behalf, relating to the transactions contemplated hereby, (ii) to
assist Wachovia Securities upon its reasonable request in the preparation of an
information memorandum to be used in connection with the syndication of the
Facility, (iii) to use your commercially reasonable efforts to ensure that the
syndication efforts benefit materially from your existing lending and investment
banking relationships, and (iv) to otherwise assist Wachovia Securities in its
syndication efforts, including making officers and advisors of the Borrower and
its subsidiaries available from time to time, with reasonable prior notice, to
attend and make presentations regarding the business and prospects of the
Borrower and its subsidiaries, as appropriate, at a meeting or meetings of
Lenders or prospective Lenders.

      You agree to afford Wachovia and its affiliates an opportunity to offer
proposals, on a non-exclusive basis, to provide, arrange, underwrite or
administer (i) any interest rate caps, currency swaps or other hedging
transactions to be entered into by you or any of your subsidiaries or
affiliates, (ii) any cash management, funds transfer, trade, corporate trust and
securities services to be obtained by you or any of your subsidiaries or
affiliates and (iii) any public or private debt or equity instruments or
securities to be issued by you or any of your subsidiaries or affiliates.

      You hereby represent, warrant and covenant that (i) all information, other
than Projections (as defined below), which has been or is hereafter made
available to Wachovia, Wachovia Securities or the Lenders by you or any of your
representatives in connection with the transactions contemplated hereby
("Information") is and will be complete and correct in all material respects as
of the date made available to Wachovia, Wachovia Securities or the Lenders and
does not and will not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements contained therein not
materially misleading and (ii) all financial projections concerning the Borrower
and its subsidiaries that have been or are hereafter made available to Wachovia,
Wachovia Securities or the Lenders by you or any of your representatives (the

<PAGE>

Blackbaud, Inc.
Page 4

"Projections") have been or will be prepared in good faith based upon reasonable
assumptions. You agree to furnish to us such Information and Projections as we
may reasonably request and to supplement the Information and the Projections
from time to time until the closing date of the Facility so that the
representation, warranty and covenant in the preceding sentence is correct on
the closing date of the Facility. In arranging and syndicating the Facility,
Wachovia and Wachovia Securities will be using and relying on the Information
and the Projections without responsibility for independent verification thereof.

      By executing this Commitment Letter, you agree, from time to time on
demand, to (i) pay the reasonable fees, disbursements and other charges of
Kennedy Covington Lobdell & Hickman, L.L.P., as counsel to Wachovia and Wachovia
Securities and (ii) pay or reimburse Wachovia and Wachovia Securities for all
reasonable out-of-pocket fees, syndication expenses and other expenses, in each
case incurred before or after the date hereof in connection with the Facility
and the other transactions contemplated hereby (including, but not limited to,
the preparation and execution of the Commitment Letter, the Term Sheet, the Fee
Letter and the definitive documentation for the Facility and future
administration of the definitive documentation for the Facility).

      By executing this Commitment Letter, you further agree to indemnify and
hold harmless Wachovia, Wachovia Securities, each other Lender and each
director, officer, employee, attorney, advisor, agent and affiliate of Wachovia,
Wachovia Securities and each other Lender (each such person or entity referred
to hereafter in this paragraph as an "Indemnified Person") from any losses,
claims, costs, damages, expenses or liabilities (or actions, suits or
proceedings, including any inquiry or investigation, with respect thereto) to
which any Indemnified Person may become subject, insofar as such losses, claims,
costs, damages, expenses or liabilities (or actions, suits, or proceedings,
including any inquiry or investigation, with respect thereto) arise out of, in
any way relate to, or result from, this Commitment Letter, the Term Sheet, the
Fee Letter, the Facility, reports or other information provided to any
Indemnified Person or contemplated by or referred to herein or therein or the
other transactions contemplated hereby and thereby and to reimburse upon demand
each Indemnified Person for any and all reasonable legal and other expenses
incurred in connection with investigating, preparing to defend or defending any
such loss, claim, cost, damage, expense or inquiry or investigation, with
respect thereto; provided, that you shall have no obligation to any Indemnified
Person under this indemnity provision for liabilities to the extent that such
liabilities are determined by a final, non-appealable judgment of a court of
competent jurisdiction to have resulted directly from the gross negligence or
willful misconduct of such Indemnified Person; provided, further that you shall
not be required to reimburse any Lender (other than Wachovia) for legal or other
fees and expenses incurred in connection with the negotiation and closing of the
definitive closing documentation executed and delivered at closing. The
foregoing provisions of this paragraph shall be in addition to any right that an
Indemnified Person shall have at common law or otherwise. This Commitment Letter
is addressed solely to the Borrower and is not intended to confer any
obligations to or on, or benefits to or on, any third party. No Indemnified
Person shall be liable for any damages arising from the use by others of
Information or other materials obtained through internet, Intralinks or other
similar transmission systems in connection with the Facility. In addition, no
Indemnified Person shall be responsible or

<PAGE>

Blackbaud, Inc.
Page 5

liable for consequential damages which may be alleged as a result of this
Commitment Letter, the Term Sheet or the Fee Letter.

      The terms of this Commitment Letter, the Fee Letter and the Term Sheet are
confidential and may not be disclosed by you in whole or in part to any third
party without the prior consent of Wachovia and Wachovia Securities, except for
disclosure on a confidential basis to your attorneys, financial advisors and
accountants, in each case in connection with your evaluation hereof and to the
extent necessary in your reasonable judgment or as may be required by law,
regulation or legal process. You acknowledge and agree that Wachovia and
Wachovia Securities may share with their respective affiliates any information
relating to the Facility, the Borrower and its subsidiaries. You further
acknowledge and agree to the disclosure by Wachovia and Wachovia Securities of
information relating to the Facility to Gold Sheets and other similar bank trade
publications, with such information to consist of deal terms and other
information customarily found in such publications. Furthermore, Wachovia and
Wachovia Securities hereby notify you that pursuant to the requirements of the
USA Patriot Act (the "Act"), each of them is required to obtain, verify and
record information that identifies you in accordance with the Act.

      The provisions of the immediately preceding three paragraphs shall remain
in full force and effect regardless of whether definitive financing
documentation shall be executed and delivered and notwithstanding the
termination of this Commitment Letter or the commitment of Wachovia or Wachovia
Securities hereunder.

      This Commitment Letter and the Term Sheet do not summarize all of the
terms, conditions, covenants, representations, warranties and other provisions
which will be contained in the definitive credit documentation for the Facility
and the transactions contemplated thereby. Wachovia and Wachovia Securities
shall have the right to require that such credit documentation include, in
addition to the provisions outlined herein and in the Term Sheet, provisions
considered customary and appropriate by Wachovia and Wachovia Securities for
this type of financing transaction, as well as provisions that Wachovia and
Wachovia Securities may deem customary and appropriate after they are afforded
the opportunity to conduct and complete, to their satisfaction, the due
diligence review described above.

      Wachovia shall have the right to review and approve any public
announcement or public filing made after the date hereof relating to any of the
transactions contemplated hereby or relating to Wachovia or any of its
affiliates, as the case may be, before any such announcement or filing is made
(such approval not to be unreasonably withheld or delayed).

      Wachovia's commitment with respect to the Facility set forth above shall
terminate at 5:00 p.m. on June 3, 2004, unless this Commitment Letter and the
Fee Letter are accepted by the Borrower in writing and delivered to Wachovia
Securities prior to such time. Following acceptance by you, this Commitment
Letter shall expire at 5:00 p.m. on July 31, 2004, unless the Facility is closed
by such time.

      This Commitment Letter, together with the Term Sheet and the Fee Letter,
embodies the entire agreement and understanding between Wachovia, Wachovia
Securities and the Borrower

<PAGE>

Blackbaud, Inc.
Page 6

with respect to the specific matters set forth above and supersedes all prior
agreements and understandings relating to the subject matter hereof. No party
has been authorized by Wachovia or Wachovia Securities to make any oral or
written statements inconsistent with this Commitment Letter.

      This Commitment Letter shall be governed by and construed in accordance
with the laws of the State of North Carolina without reference to the conflicts
or choice of laws principles thereof. Each of us hereby irrevocably waives all
right to trial by jury in any action, proceeding or counterclaim (whether based
on contract, tort or otherwise) arising out of or relating to this Commitment
Letter, the Term Sheet, the Fee Letter, the transactions contemplated hereby and
thereby or the actions of Wachovia and Wachovia Securities in the negotiation,
performance or enforcement hereof and thereof.

      This Commitment Letter may be executed in any number of counterparts, each
of which shall be an original, and all of which, when taken together, shall
constitute one agreement. Delivery of an executed signature page of this
Commitment Letter by facsimile transmission shall be effective as delivery of a
manually executed counterpart hereof; provided that such facsimile transmission
shall be promptly followed by the original thereof.

      This Commitment Letter may not be amended or any provision hereof waived
or modified except by an instrument in writing signed by Wachovia, Wachovia
Securities and the Borrower.

      This Commitment Letter may not be assigned by the Borrower without the
prior written consent of Wachovia and Wachovia Securities (and any purported
assignment without such consent shall be null and void).

                            [Signature Page Follows]

<PAGE>

Blackbaud, Inc.
Page 7

      Please indicate your acceptance of this Commitment Letter and the Term
Sheet by signing in the space provided and returning the original copy to us.
Wachovia Securities is pleased to have the opportunity to assist you in
connection with this proposed financing transaction.

                              Very truly yours,

                              WACHOVIA BANK, NATIONAL ASSOCIATION

                              By:    /s/ John D. Brady
                                 -----------------------------------------------
                              Name:  John D. Brady
                              Title: Director

                              WACHOVIA CAPITAL MARKETS, LLC

                              By:    /s/ John D. Brady
                                 -----------------------------------------------
                              Name:  John D. Brady
                              Title: Director

ACCEPTED AND AGREED TO THIS 4th
DAY OF JUNE, 2004:

BLACKBAUD, INC.

By:    /s/ Timothy V. Williams
   -----------------------------------------
Name:  Timothy V. Williams
Title: VP and CFO

[Commitment Letter-Blackbaud, Inc.]

<PAGE>

[LOGO]                                                       WACHOVIA SECURITIES

                                  June 1, 2004

Blackbaud, Inc.
2000 Daniel Island Dr.
Charleston, SC 29492-7541
Attention: Timothy V. Williams
           Chief Financial Officer

      Re:   Senior Credit Facility Fee Letter

Ladies and Gentlemen:

      This letter is the fee letter (the "Fee Letter") referred to in that
certain commitment letter of even date herewith (the "Commitment Letter") from
Wachovia Bank, National Association ("Wachovia") and Wachovia Capital Markets,
LLC ("Wachovia Securities"*) to Blackbaud, Inc. (the "Borrower"), whereby
Wachovia has furnished its commitment to provide to the Borrower a portion of a
senior unsecured revolving credit facility in the aggregate principal amount of
up to $30 million (the "Facility") subject to the terms and conditions set forth
therein and in the Term Sheet attached thereto. Capitalized terms used herein
without definition shall have the meanings given to them in the Commitment
Letter or the Term Sheet.

      In connection with the Commitment Letter, you hereby agree with Wachovia
and Wachovia Securities as follows:

            (a)   Upfront Fee.

                  (i) As consideration for the Lenders to provide their
            commitments to the Facility, the Borrower hereby agrees to pay to
            Wachovia Securities, for the account of each of the Lenders
            (including Wachovia) on a pro rata basis in accordance with their
            final allocated commitments, upfront fees (the "Upfront Fees") in an
            aggregate amount reasonably determined by Wachovia Securities (in
            consultation with the Borrower) as required in order to successfully
            complete the syndication of the Facility. Wachovia Securities
            currently estimates the Upfront Fees to equal 0.25% of the final
            allocated commitment of each of the Lenders. The estimate of the
            Upfront Fees may be impacted by many factors including, but not
            limited to, current market conditions. Wachovia Securities agrees
            that it will not

----------------------------
* Wachovia Securities is the trade name under which Wachovia
Corporation conducts its investment banking, capital markets and institutional
securities business through Wachovia Capital Markets, LLC, Member NYSE, NASD,
SIPC, and through other bank and non-bank and broker-dealer subsidiaries of
Wachovia Corporation.

<PAGE>

Blackbaud, Inc.
Page 2

            increase the Upfront Fees payable pursuant to this paragraph without
            your prior approval (which shall not be unreasonably withheld or
            delayed).

                  (ii) Notwithstanding anything to the contrary contained in the
            preceding clause (i), as consideration for Wachovia to provide its
            commitment to the Facility, the Borrower hereby agrees that the
            percentage upon which the Upfront Fee payable to Wachovia is based
            shall be equal to the highest percentage amount paid to any other
            Lender who commits to the Facility.

                  (iii) Furthermore, notwithstanding anything to the contrary
            contained in the preceding paragraph, the entire amount of the
            Upfront Fee payable to Wachovia shall be fully earned and shall be
            due and payable on the closing date of the Facility.

            (b) Administrative Agent Fee. As consideration for Wachovia to agree
      to act as Administrative Agent in connection with the Facility, the
      Borrower agrees to pay to Wachovia, for its own account and in its
      capacity as Administrative Agent, an annual administrative fee in an
      aggregate amount equal to the lesser of (i) $15,000 or (ii) $5,000 for
      each Lender under the Facility. Such fee shall be due and payable in
      advance on the closing date of the Facility and thereafter on each
      anniversary of the closing date of the Facility until the Facility has
      been terminated and all amounts owing thereunder are paid in full.
      Wachovia reserves the right to review and adjust the annual administrative
      fee, subject to your approval (which shall not be unreasonably withheld or
      delayed), on an annual basis and at the time a material amendment is
      requested by you, with any adjustment effective on the earlier of the date
      of any material amendment and the anniversary of the closing date of the
      Facility.

      The Borrower agrees that all of the fees set forth in this Fee Letter
shall be fully-earned upon becoming due and payable in accordance with the terms
hereof, shall be paid in immediately available funds when due and payable, shall
be non-refundable under any circumstance, and shall be in addition to any other
fee, cost or expense payable pursuant to the Facility, including, without
limitation, all reasonable out-of-pocket expenses, syndication expenses and
other expenses of Wachovia or Wachovia Securities (subject to the limitations
herein and in the Commitment Letter and Term Sheet). The Borrower further agrees
to pay the unused commitment fee and other fees in the amounts and at the times
set forth in the Term Sheet. In addition, all of the fees set forth in this Fee
Letter shall not be subject to counterclaim or setoff for, or be otherwise
affected by, any claim or dispute the Borrower may have. It is understood that
no Lender participating in the Facility will receive compensation from the
Borrower outside the terms contained herein, in the Commitment Letter and in the
Term Sheet in order to obtain its commitment. Wachovia and Wachovia Securities
may allocate among their affiliates any of the fees payable hereunder in their
sole discretion.

      Wachovia Securities shall be entitled, subject to your approval (which
shall not be unreasonably withheld or delayed), to change the pricing, amount,
terms, allocation or structure of the Facility, either before or after the
closing of the Facility, if Wachovia Securities determines in

<PAGE>

Blackbaud, Inc.
Page 3

its reasonable judgment that such changes are advisable in order to ensure a
successful syndication or an optimal capital structure. The commitments of
Wachovia and Wachovia Securities under the Commitment Letter are subject to the
agreements in this paragraph. The Term Sheet shall be deemed to be amended to
reflect such changes and the syndication process shall continue. The agreements
in this paragraph shall survive the closing of the Facility.

      Except as required by applicable law, this Fee Letter and the contents
hereof shall not be disclosed by the Borrower to any third party without the
prior written consent of Wachovia and Wachovia Securities, other than as
permitted by the Commitment Letter.

      This Fee Letter, together with the Term Sheet and the Commitment Letter,
embodies the entire agreement and understanding between Wachovia, Wachovia
Securities and the Borrower with respect to the specific matters set forth above
and supersedes all prior agreements and understandings relating to the subject
matter hereof. No party has been authorized by Wachovia or Wachovia Securities
to make any oral or written statements inconsistent with this Fee Letter.

      This Fee Letter shall be governed by and construed in accordance with the
laws of the State of North Carolina without reference to the conflicts or choice
of laws principles thereof. Each of us hereby irrevocably waives all right to
trial by jury in any action, proceeding or counterclaim (whether based on
contract, tort or otherwise) arising out of or relating to this Fee Letter, the
transactions contemplated hereby or the actions of Wachovia and Wachovia
Securities in the negotiation, performance or enforcement hereof.

      This Fee Letter may be executed in any number of counterparts, each of
which shall be an original, and all of which, when taken together, shall
constitute one agreement. Delivery of an executed signature page of this Fee
Letter by facsimile transmission shall be effective as delivery of a manually
executed counterpart hereof; provided that such facsimile transmission shall be
promptly followed by the original thereof.

      This Fee Letter may not be amended or any provision hereof waived or
modified except by an instrument in writing signed by Wachovia, Wachovia
Securities and the Borrower.

      This Fee Letter may not be assigned by the Borrower without the prior
written consent of Wachovia and Wachovia Securities (and any purported
assignment without such consent shall be null and void).

      It is understood and agreed that this Fee Letter shall not constitute or
give rise to any obligation on the part of Wachovia or Wachovia Securities to
provide any financing; such an obligation will only arise under the Commitment
Letter, and only in accordance with the terms thereof, if accepted in accordance
with its terms.

                            [Signature Page Follows]

<PAGE>

Blackbaud, Inc.
Page 4

      The commitments of Wachovia and Wachovia Securities as set forth in the
Commitment Letter are subject to the receipt of a signed copy of this Fee
Letter, together with a signed copy of the Commitment Letter. If the Borrower is
in agreement with the foregoing, please sign the enclosed copy of this Fee
Letter and return it to Wachovia and Wachovia Securities, together with an
executed copy of the Commitment Letter, by no later than 5:00 p.m. on June 3,
2004.

                                     Very truly yours,

                                     WACHOVIA BANK, NATIONAL ASSOCIATION

                                     By:    /s/ John D. Brady
                                        ----------------------------------------
                                     Name:  John D. Brady
                                     Title: Director

                                     WACHOVIA CAPITAL MARKETS, LLC

                                     By:    /s/ John D. Brady
                                        ----------------------------------------
                                     Name:  John D. Brady
                                     Title: Director

ACCEPTED AND AGREED TO THIS 4th
DAY OF JUNE, 2004:

BLACKBAUD, INC.

By:    /s/ Timothy V. Williams
   -------------------------------------
Name:  Timothy V. Williams
Title: VP and CFO

[Fee Letter-Blackbaud, Inc.]

<PAGE>

                                 BLACKBAUD, INC.
                         SUMMARY OF TERMS AND CONDITIONS
                       $30,000,000 SENIOR CREDIT FACILITY
                                  JUNE 1, 2004

BORROWER:               Blackbaud, Inc. (the "Borrower").

GUARANTORS:             The Facility (as defined below) shall be irrevocably
                        and unconditionally guaranteed by all material
                        subsidiaries of the Borrower existing as of the closing
                        date of the Facility and such other material
                        subsidiaries that are subsequently acquired or organized
                        (the "Guarantors") pursuant to customary guaranty
                        agreements in form and substance satisfactory to the
                        Lenders (each a "Guaranty Agreement"). All Guaranty
                        Agreements shall be guarantees of payment and not of
                        collection.

ADMINISTRATIVE
AGENT:                  Wachovia Bank, National Association ("Wachovia" or
                        the "Administrative Agent") will act as the sole and
                        exclusive administrative agent.

SOLE LEAD
ARRANGER AND
BOOK MANAGER:           Wachovia Capital Markets, LLC ("Wachovia Securities"
                        or the "Lead Arranger") will arrange and structure the
                        Facility. Wachovia Securities is the trade name under
                        which Wachovia Corporation conducts its investment
                        banking, capital markets and institutional securities
                        business through Wachovia Capital Markets, LLC, Member
                        NYSE, NASD, SIPC, and through other bank and non-bank
                        and broker-dealer subsidiaries of Wachovia Corporation.

LENDERS:                A syndicate of banks and other financial institutions
                        (including Wachovia) arranged by the Lead Arranger,
                        which institutions shall be reasonably acceptable to the
                        Borrower and the Administrative Agent (collectively, the
                        "Lenders").

FACILITY:               A $30,000,000 revolving credit facility (the
                        "Facility"), with a sublimit for the issuance of
                        swingline loans (each a "Swingline Loan") in an amount
                        to be mutually agreed upon and a sublimit for

                                       1

WACHOVIA SECURITIES                                        STRICTLY CONFIDENTIAL

<PAGE>

                        the issuance of standby letters of credit (each a
                        "Letter of Credit") in an amount to be mutually agreed
                        upon. Any Swingline Loans and Letters of Credit shall
                        reduce the available commitment under the Facility on a
                        dollar for dollar basis. Subject to the limitations
                        described herein, revolving credit loans may be repaid
                        and reborrowed.

SWINGLINE LOANS:        Swingline Loans will be made by Wachovia to the
                        Borrower on same day notice. Each of the Lenders shall
                        acquire, under certain circumstances, an irrevocable and
                        unconditional pro rata participation in each such
                        Swingline Loan.

LETTERS OF CREDIT:      Letters of Credit will be issued by Wachovia and
                        shall expire no later than the earlier of (i) one (1)
                        year after its date of issuance and (ii) the fifth (5th)
                        business day prior to the Maturity Date. Each of the
                        Lenders shall acquire, under certain circumstances, an
                        irrevocable and unconditional pro rata participation in
                        each such Letter of Credit.

MATURITY DATE:          The Facility shall terminate and all amounts
                        outstanding thereunder shall be due and payable in full
                        upon the third (3rd) anniversary of the closing date of
                        the Facility (the "Maturity Date").

PURPOSE:                The Facility shall be used (i) for general corporate
                        purposes of the Borrower and its subsidiaries,
                        including, without limitation, working capital, capital
                        expenditures in the ordinary course of business and
                        permitted acquisitions, and (ii) to pay fees and
                        expenses related to the Facility.

PRICING, FEES AND
EXPENSES:               See Addendum I.

LOANS UNDER THE
CREDIT FACILITY:        Borrowings may be requested upon three (3) business
                        days notice for LIBOR Rate Loans and same business day
                        notice for Base Rate Loans and Swingline Loans. Notice
                        must be given to the Administrative Agent by 11:00 a.m.,
                        Charlotte, North Carolina time, on the day on which such
                        notice is required. The aggregate of all outstanding
                        LIBOR Rate Loans, Base Rate Loans, Swingline Loans and
                        Letters of Credit will be considered usage for purposes
                        of determining availability under the Facility.

                                       2

WACHOVIA SECURITIES                                        STRICTLY CONFIDENTIAL

<PAGE>

REPAYMENT:              The Facility shall be repaid in full, including any
                        unpaid interest, on the Maturity Date.

OPTIONAL
PREPAYMENTS;
COMMITMENT
REDUCTIONS:             Base Rate Loans and Swingline Loans may be prepaid at
                        any time without penalty. LIBOR Rate Loans may be
                        prepaid at the end of the applicable Interest Period
                        without penalty. Prepayment of the LIBOR Rate Loans
                        prior to the end of the applicable Interest Period is
                        subject to payment of any funding losses.

                        The Borrower may at any time permanently reduce the
                        total amount of the Lenders' Commitments under the
                        Facility. Each such reduction shall be in a principal
                        amount of at least $2,500,000.

CONDITIONS
PRECEDENT
TO CLOSING:             Customary for facilities of this nature, including,
                        but not limited to, credit documentation consistent with
                        the terms herein or otherwise reasonably satisfactory to
                        the Administrative Agent; legal opinions and other
                        closing documentation consistent with the terms herein
                        or otherwise reasonably satisfactory to the
                        Administrative Agent; all governmental, shareholder,
                        corporate and third party consents shall have been
                        obtained or waived; no material adverse change including
                        no material pending or threatened litigation, bankruptcy
                        or other proceeding; satisfactory review of all
                        corporate documentation and other legal due diligence;
                        completion of an initial public offering of the common
                        stock of the Borrower upon terms and conditions
                        substantially similar to those set forth in the
                        Borrower's initial Form S-1 filed May 11, 2004 or such
                        other terms and conditions as are reasonably acceptable
                        to the Administrative Agent; payment in full of all
                        principal, interest and other amounts outstanding in
                        connection with the Borrower's and the Guarantors'
                        existing debt (other than debt permitted under the terms
                        of the definitive credit documentation (including,
                        without limitation, all amounts due under the Borrower's
                        existing senior secured credit facility)); and payment
                        of all fees and expenses due to the Administrative Agent
                        and the Administrative Agent's counsel.

                                       3

WACHOVIA SECURITIES                                        STRICTLY CONFIDENTIAL

<PAGE>

CONDITIONS
PRECEDENT TO
ALL BORROWINGS:         Customary for facilities of this nature, including,
                        but not limited to, accuracy of representations and
                        warranties and absence of defaults.

REPRESENTATIONS
AND WARRANTIES:         Customary for facilities of this nature, including,
                        but not limited to, corporate existence; corporate and
                        governmental authorization; enforceability; financial
                        information; no material adverse changes; compliance
                        with laws and agreements (including environmental laws);
                        compliance with ERISA; solvency; title to assets;
                        material contracts; no material litigation; payment of
                        taxes; financial condition; and full disclosure.

AFFIRMATIVE
COVENANTS:              Customary for facilities of this nature, including,
                        but not limited to, receipt of financial information;
                        notification of litigation, investigations, and other
                        adverse changes; payment and performance of obligations;
                        conduct of business; maintenance of existence;
                        maintenance of property and insurance (including hazard
                        and business interruption coverage); maintenance of
                        records and accounts; inspection of property and books
                        and records; compliance with laws (including
                        environmental laws); payment of taxes; and ERISA.

FINANCIAL
COVENANTS:              Financial covenants shall include, but not be limited
                        to, the following (in each case to be tested on a
                        quarterly basis):

                        (a)   Maximum Total Leverage Ratio. Total Leverage Ratio
                              (Total Debt to EBITDA) shall be less than 2.00 to
                              1.00.

                        (b)   Minimum Interest Coverage Ratio. Interest Coverage
                              Ratio (EBITDA to Interest Expense) shall be
                              greater than 5.00 to 1.00.

                        (c)   Minimum Net Worth. Net Worth shall be greater than
                              $35,000,000.

                                       4

WACHOVIA SECURITIES                                        STRICTLY CONFIDENTIAL

<PAGE>

                        For the purpose hereof, "EBITDA" means, for any period,
                        the sum of the following determined on a consolidated
                        basis, without duplication, for the Borrower and its
                        subsidiaries in accordance with generally accepted
                        accounting principles: (a) net income for such period
                        plus (b) the sum of the following to the extent deducted
                        in determining net income: (i) income and franchise
                        taxes, (ii) interest expense, and (iii) amortization,
                        depreciation and other non-cash charges (including
                        non-cash stock compensation charges) less (c) interest
                        income and any extraordinary gains.

                        All other definitions with respect to the capitalized
                        terms set forth above shall be customary for facilities
                        of this nature and shall be determined and calculated in
                        a manner reasonably acceptable to the Administrative
                        Agent and Borrower.

NEGATIVE
COVENANTS:              Customary for facilities of this nature, including,
                        but not limited to, restrictions and limitations
                        (subject to customary exceptions and baskets to be
                        mutually agreed upon) on: indebtedness; liens; guaranty
                        obligations; changes in business; mergers; sales of
                        assets; acquisitions (other than permitted acquisitions
                        as described below); loans, advances and investments;
                        transactions with affiliates; sale and leaseback
                        transactions; prepayments of or material amendments to
                        indebtedness (including, without limitation, repayment
                        of any subordinated debt); restrictive agreements;
                        dividends and repurchases of the stock of the Borrower
                        (other than permitted dividends and stock repurchases as
                        described below); distributions and other restricted
                        payments (including, without limitation, payments with
                        respect to subordinated debt); and changes in fiscal
                        year or accounting method.

PERMITTED DIVIDENDS
AND STOCK RE-
PURCHASES:              So long as (1) no default or event of default shall
                        have occurred and be continuing; (2) the Borrower is in
                        pro forma compliance with the financial covenants after
                        giving effect to any dividend payments or any
                        repurchases of stock of the Borrower and (3) the
                        Borrower will have at least $3 million of cash on hand
                        after giving effect to any dividend payments or any
                        repurchases of stock of the Borrower, the Borrower may
                        pay dividends and make stock repurchases at any time in
                        the following amounts:

                                       5

WACHOVIA SECURITIES                                        STRICTLY CONFIDENTIAL

<PAGE>

                        (A)   with respect to any dividends or stock repurchase
                              made on any date upon which there are no
                              outstanding loans or letters of credit under the
                              Facility, an aggregate amount of up to 100% of the
                              cash on hand as of the most recent fiscal quarter
                              end; provided that if the Borrower pays dividends
                              or makes stock repurchases in an aggregate amount
                              in excess of 70% of the cash on hand as of the
                              most recent fiscal quarter end, the availability
                              on the Facility will be reduced to $0 for a period
                              of 30 days following the date of any such dividend
                              or stock repurchase; or

                        (B)   with respect to any dividends or stock repurchase
                              made on any date upon which there are any
                              outstanding loans or letters of credit under the
                              Facility, an aggregate amount not to exceed:

                              (i)   if the Total Leverage Ratio is less than
                                    1.00 to 1.00, 35% of cash on hand as of the
                                    most recent fiscal quarter end; or

                              (ii)  if the Total Leverage Ratio is equal to or
                                    greater than 1.00 to 1.00, 25% of cash on
                                    hand as of the most recent fiscal quarter
                                    end.

PERMITTED
ACQUISITIONS:           Acquisitions shall be permitted subject to the following
                        terms and conditions:

                        (1)   No default or event of default shall have occurred
                              and be continuing both before and after giving
                              effect to such acquisition;

                        (2)   The Borrower shall be in pro forma compliance with
                              the financial covenants both before and after
                              giving effect to such acquisition;

                        (3)   Each acquisition shall be in an amount not to
                              exceed $20,000,000 of cash consideration;

                        (4)   The Total Leverage Ratio, calculated on a pro
                              forma basis after giving effect to such
                              acquisition, shall be less than or equal to 1.75
                              to 1.00; and

                                       6

WACHOVIA SECURITIES                                        STRICTLY CONFIDENTIAL

<PAGE>

                        (5)   Other customary terms and conditions reasonably
                              required by the Administrative Agent.

EVENTS OF
DEFAULT:                Customary events of default (and cure periods) for
                        facilities of this nature, including, but not limited
                        to: failure to pay any interest, principal or fees under
                        the Facility when due; failure to perform any covenant
                        or agreement; inaccurate or false representation or
                        warranties; cross defaults (including cross-defaults to
                        defaults under material contracts); actual or asserted
                        invalidity (by the Borrower or any other loan party) of
                        any guaranty in favor of the Administrative Agent and
                        the Lenders; insolvency or bankruptcy; ERISA; judgment
                        defaults; change in control; and any other events of
                        default deemed reasonably necessary by the
                        Administrative Agent and the Lenders in the context of
                        the proposed transaction.

ASSIGNMENTS &
PARTICIPATIONS:         Each Lender will, subject in certain circumstances to
                        the approval of the Administrative Agent and/or the
                        Borrower (such consents not to be unreasonably withheld
                        or delayed), be permitted to make assignments in
                        acceptable minimum amounts. Participations shall be
                        permitted in acceptable minimum amounts.

REQUIRED LENDERS:       On any date of determination, those Lenders who
                        collectively hold at least 66 2/3% of the Facility, or
                        if the Facility has been terminated, those Lenders who
                        collectively hold at least 66 2/3% of the aggregate
                        outstandings.

WAIVERS AND
AMENDMENTS:             Amendments and waivers of the provisions of the credit
                        agreement and other definitive credit documentation will
                        require the approval of the Borrower and the Required
                        Lenders, except that the consent of all the Lenders
                        affected thereby shall be required with respect to (i)
                        increases in the commitment of such Lenders, (ii)
                        reductions of principal, interest or fees (other than
                        the permitted reductions described herein), (iii)
                        extensions of scheduled maturities or times for payment,
                        and (iv) releases of guarantees of the Facility, if any.

INDEMNIFICATION:        Consistent with customary practice for transactions of
                        this nature, the Borrower shall indemnify the
                        Administrative Agent and the Lenders and their
                        respective affiliates from and against all losses,
                        liabilities, claims, damages or expenses arising out of
                        or relating to the Facility, the Borrower's use of the
                        loan proceeds or the commitments, including, but not
                        limited to, reasonable attorney's

                                       7

WACHOVIA SECURITIES                                        STRICTLY CONFIDENTIAL

<PAGE>

                        fees and settlement costs; provided, that the Borrower
                        shall not be required to reimburse any lender (other
                        than the Administrative Agent and the Lead Arranger) for
                        legal or other fees and expenses incurred in connection
                        with the negotiation and closing of the definitive
                        closing documentation executed and delivered at closing.
                        This indemnification shall survive and continue for the
                        benefit of the indemnitees at all times after the
                        Borrower's acceptance of the Lenders' commitments for
                        the Facility, notwithstanding any failure of the
                        Facility to close.

WAIVER OF JURY
TRIAL, GOVERNING
LAW:                    Waiver of jury trial, submission to jurisdiction in
                        Charlotte, North Carolina and mandatory binding
                        arbitration in Charlotte, North Carolina; North Carolina
                        law (without reference to choice of law provisions) to
                        govern.

PATRIOT ACT:            To help 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 or corporation
                        who opens an account and/or enters into a business
                        relationship with such financial institution.

COUNSEL TO
LEAD ARRANGER AND
ADMINISTRATIVE
AGENT:                  Kennedy Covington Lobdell & Hickman, L.L.P.

MISCELLANEOUS:          This summary of terms and conditions does not purport to
                        summarize all the conditions, covenants,
                        representations, warranties and other provisions which
                        would be contained in definitive credit documentation
                        for the Facility contemplated hereby.

                                       8

WACHOVIA SECURITIES                                        STRICTLY CONFIDENTIAL

<PAGE>

                                   ADDENDUM I

                           PRICING, FEES AND EXPENSES

INTEREST RATE
OPTIONS:                The Borrower's option of:

                        (1)   The Base Rate plus the Applicable Base Rate
                              Margin, as set forth in the pricing grid attached
                              hereto as Exhibit A. The initial Applicable Base
                              Rate Margin will be 0.50%. Loans bearing interest
                              at the Base Rate plus the Applicable Base Rate
                              Margin ("Base Rate Loans") shall be for a minimum
                              amount of $2,500,000 and $1,000,000 increments in
                              excess thereof.

                              The Base Rate means the greater of (i) the
                              Administrative Agent's Prime Rate or (ii) the
                              overnight federal funds rate plus 0.50%. The
                              Prime Rate is an index or base rate and shall
                              not necessarily be its lowest or best rate
                              charged to its customers or other banks.

                              Swingline Loans shall be maintained solely at
                              the Base Rate plus the Applicable Base Rate
                              Margin and may be borrowed in minimum increments
                              of $100,000.

                        (2)   The LIBOR Rate plus the Applicable LIBOR Rate
                              Margin as set forth in the pricing grid attached
                              hereto as Exhibit A. The initial Applicable LIBOR
                              Rate Margin will be 1.50%. Loans bearing interest
                              at the LIBOR Rate plus the Applicable LIBOR Margin
                              ("LIBOR Rate Loans") shall be for a minimum amount
                              of $5,000,000 and $1,000,000 increments in excess
                              thereof.

                              The LIBOR Rate shall mean reserve adjusted LIBOR
                              as set forth on Telerate Page 3750 or as
                              determined by the Administrative Agent if such
                              information is not available. The LIBOR Rate
                              Option is available for Interest Periods of one
                              (1), two (2), three (3), or six (6) months. No
                              more than five (5) Interest Periods may be in
                              effect at any time.

                              LIBOR Rate interest and all fees shall be
                              calculated on a 360 day basis, while Base Rate
                              interest shall be calculated on a 365/366 day
                              basis.

                                       9

WACHOVIA SECURITIES                                        STRICTLY CONFIDENTIAL

<PAGE>

INTEREST
PAYMENTS:               Interest on Base Rate Loans will be due and payable
                        quarterly in arrears. Interest on LIBOR Rate Loans will
                        be due and payable at the end of each applicable
                        Interest Period or, in the case of a six (6) month LIBOR
                        Rate Loan, every three (3) months.

DEFAULT RATE
INTEREST:               Upon the occurrence and during the continuance of any
                        payment event of default or, at the option of the
                        Administrative Agent, upon the occurrence and during the
                        continuance of any other event of default, (i) the
                        Borrower shall no longer have the option to request
                        LIBOR Rate Loans or Swingline Loans, (ii) all amounts
                        due and payable with respect to LIBOR Rate Loans shall
                        bear interest at a rate per annum of two percent (2%) in
                        excess of the rate then applicable to such LIBOR Rate
                        Loans until the end of the applicable Interest Period
                        and thereafter at a rate equal to two percent (2%) in
                        excess of the rate then applicable to Base Rate Loans
                        and (iii) all amounts due and payable with respect to
                        Base Rate Loans and Swingline Loans shall bear interest
                        at a rate per annum equal to two percent (2%) in excess
                        of the rate then applicable to Base Rate Loans.

COMMITMENT AND
OTHER FEES:             Commitment Fee:  The Borrower shall pay a Commitment
                        Fee on a per annum basis, at a rate per annum of 0.30%,
                        on the average daily unused portion of the Facility. The
                        Commitment Fee shall be payable quarterly in arrears.

                        Upfront Fees: As set forth in the accompanying Fee
                        Letter.

                        Administrative Agent's and Other Fees: As set forth in
                        the accompanying Fee Letter.

LETTER OF CREDIT
FEES:                   Issuance Fee.  An amount equal to the Applicable LIBOR
                        Rate Margin on a per annum basis multiplied by the face
                        amount of each Letter of Credit, payable to the
                        Administrative Agent, for the account of the Lenders,
                        quarterly in arrears.

                                       10

WACHOVIA SECURITIES                                        STRICTLY CONFIDENTIAL

<PAGE>

                        Fronting Fee: An amount equal to 0.250% per annum
                        multiplied by the face amount of each Letter of Credit,
                        payable to the Administrative Agent (as Issuing Lender),
                        for its own account, quarterly in arrears.

                        Other Fees. All normal and customary costs and expenses
                        of the Administrative Agent (as Issuing Lender) in
                        connection with the issuance, transfer or other
                        administration of the Letters of Credit shall be for the
                        account of the Borrower.

EXPENSES:               The Borrower shall be responsible for all reasonable
                        legal and other out-of-pocket expenses incurred by the
                        Administrative Agent and Lead Arranger related to due
                        diligence performed by the Administrative Agent and Lead
                        Arranger in connection with the transaction, the
                        execution of the loan documentation, and future
                        administration of the definitive credit documentation.

INCREASED COSTS/
CHANGE OF
CIRCUMSTANCES:          Provisions customary in facilities of this type
                        protecting the Lenders in the event of unavailability of
                        funding, illegality, capital adequacy requirements,
                        increased costs, withholding taxes and funding losses.

                                       11

WACHOVIA SECURITIES                                        STRICTLY CONFIDENTIAL

<PAGE>

                                    EXHIBIT A
                                  Pricing Grid

<TABLE>
<CAPTION>
                                       Applicable Base Rate      Applicable LIBOR Rate
Level           Leverage Ratio                Margin                     Margin
-----       ----------------------     --------------------      ---------------------
<S>         <C>                        <C>                       <C>
  I              Greater than                  1.00%                     2.00%
                 1.00 to 1.00

  II        Less than or equal to              0.50%                     1.50%
                 1.00 to 1.00
</TABLE>

The Applicable Base Rate Margin and the Applicable LIBOR Rate Margin shall be
based on Level II of the pricing grid set forth above until the first
calculation date following the receipt by the Administrative Agent and the
Lenders of the financial information and related compliance certificate for the
fiscal quarter ending June 30, 2004.

                                       12

WACHOVIA SECURITIES                                        STRICTLY CONFIDENTIAL

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