Document:

exv10w1

 

Exhibit 10.1

FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

     THIS FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (herein called the “Amendment”)
made as of January 31, 2008 by and among Encore Acquisition Company, a Delaware corporation (the
“Borrower”), Encore Operating, L.P., a Texas limited partnership (“Operating”), Bank of America,
N.A., as Administrative Agent (the “Administrative Agent”) and L/C Issuer (the “L/C Issuer”), and
the Lenders party to the Original Agreement defined below (the “Lenders”).

W I T N E S S E T H:

     WHEREAS, the Borrower, Operating, the Administrative Agent, the L/C Issuer, the Co-Syndication
Agents and Co-Documentation Agents named therein and the Lenders are party to that certain Amended
and Restated Credit Agreement dated as of March 7, 2007 (the “Original Agreement”), for the purpose
and consideration therein expressed, whereby the L/C Issuer became obligated to issue Letters of
Credit to the Borrower and the Lenders became obligated to make loans to the Borrower as therein
provided; and

     WHEREAS, the Borrower, Operating, the Administrative Agent, the L/C Issuer and the Lenders
party hereto desire to amend the Original Agreement as set forth herein;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements
contained herein and in the Original Agreement, in consideration of the loans and other credit
which may hereafter be made by the Lenders and the L/C Issuer to the Borrower, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto do hereby agree as follows:

ARTICLE I.

DEFINITIONS AND REFERENCES

     Section 1.1. Terms Defined in the Original Agreement. Unless the context otherwise
requires or unless otherwise expressly defined herein, the terms defined in the Original Agreement
shall have the same meanings whenever used in this Amendment.

     Section 1.2. Other Defined Terms. Unless the context otherwise requires, the
following terms when used in this Amendment shall have the meanings assigned to them in this
Section 1.2.

     “Amendment” means this First Amendment to Amended and Restated Credit
Agreement.

     “Amendment Documents” means this Amendment, the Consent and Agreement of the
Guarantors relating to this Amendment and all other documents or instruments delivered in
connection herewith or therewith.

     “Credit Agreement” means the Original Agreement as amended hereby.

[First Amendment to Amended and Restated Credit Agreement]

 

 

ARTICLE II.

AMENDMENT AND WAIVER TO ORIGINAL AGREEMENT

     Section 2.1. Hedge Transactions. Section 7.10 of the Original Agreement is hereby
amended to add the following sentence at the end thereof:

     “The foregoing restriction of this Section 7.10 shall not apply to any Oil and Gas Hedge
Transaction that is a floor or put transaction not requiring any future payments or delivery
by any Credit Party.”

     Section 2.2. Waiver. Required Lenders hereby waive any violation of Section 7.10(ii)
of the Credit Agreement that may have occurred between January 1, 2008 and the Effective Date.

     Section 2.3. Borrowing Base. After giving effect to the sale by the Borrower of
properties described on Exhibit A attached hereto and any reduction to the Borrowing Base otherwise
required by such sale, the Borrower, the Administrative Agent and the Lenders agree that from the
date of such sale until the next redetermination or adjustment thereof, the Borrowing Base shall be
$870,000,000.

ARTICLE III.

CONDITIONS OF EFFECTIVENESS

     Section 3.1. Conditions to Effectiveness of Amendment. This Amendment shall become
effective when and only when the Administrative Agent shall have received executed counterparts of
this Amendment (or a consent to this Amendment) from the Required Lenders and the following
conditions precedent has been satisfied (the date such conditions are so satisfied herein called
the “Effective Date”); provided, however, that the provisions in Section 2.3 shall only
become effective when the Administrative Agent shall have received executed counterparts of this
Amendment from one hundred percent (100%) of the Lenders:

The Administrative Agent’s receipt of the following, each of which shall be originals or
telecopies (followed promptly by originals) unless otherwise specified, each properly
executed by a Responsible Officer of the signing Credit Party, each dated the Effective Date
(or, in the case of certificates of governmental officials, a recent date before the
Effective Date) and each in form and substance satisfactory to the Administrative Agent:

     (i) counterparts of the Amendment Documents executed by the applicable Credit
Parties sufficient in number for distribution to the Administrative Agent, Required
Lenders and the Borrower;

     (ii) a certificate on behalf of each Credit Party certifying that none of the
resolutions, incumbency certificates, organizational documents and/or certificates of
Responsible Officers of each Credit Party as the Administrative Agent has previously
required evidencing the identity, authority and capacity of each Responsible Officer
thereof authorized to act as a Responsible Officer in connection

[First Amendment to Amended and Restated Credit Agreement]

2

 

with the Loan Documents to which such Credit Party is a party have been amended or are
otherwise inaccurate since they were delivered;

     (iii) such documents and certifications as the Administrative Agent may
reasonably require to evidence that each Credit Party is duly organized or formed, and
that each Credit Party is validly existing and in good standing.

ARTICLE IV.

REPRESENTATIONS AND WARRANTIES

     Section 4.1. Representations and Warranties. In order to induce the L/C Issuer and
each Lender to enter into this Amendment, the Borrower and Operating represent and warrant to the
L/C Issuer and each Lender that the representations and warranties contained in Article V of the
Original Agreement or any other Loan Document are true and correct in all material respects on the
Effective Date (including, for all purposes, after giving effect to the Amendment Documents as
“Loan Documents” referred to therein), except to the extent such representations and warranties
specifically refer to an earlier date, in which case they are true and correct as of such earlier
date, and except for purposes of this Amendment, the representations and warranties contained in
subsections (a) and (b) of Section 5.04 of the Credit Agreement shall be deemed to refer to the
most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of
the Credit Agreement.

ARTICLE V.

MISCELLANEOUS

     Section 5.1. Ratification of Agreements. The Original Agreement as hereby amended is
hereby ratified and confirmed in all respects. The other Loan Documents, as they may be amended or
affected by the various Amendment Documents, are hereby ratified and confirmed in all respects.
Any reference to the Credit Agreement in any Loan Document shall be deemed to be a reference to the
Original Agreement as hereby amended. The execution, delivery and effectiveness of this Amendment
and the other Amendment Documents shall not, except as expressly provided herein or therein,
operate as a waiver of any right, power or remedy of the Administrative Agent or the Lenders under
the Credit Agreement, or any other Loan Document nor constitute a waiver of any provision of the
Credit Agreement, or any other Loan Document.

     Section 5.2. Survival of Agreements. All representations, warranties, covenants and
agreements of any Loan Party herein shall survive the execution and delivery of this Amendment and
the performance hereof, and shall further survive until all of the Obligations are paid in full.
All statements and agreements contained in any certificate or instrument delivered by any Loan
Party hereunder or under the Credit Agreement to the Administrative Agent or any Lender shall be
deemed to constitute representations and warranties by, and/or agreements and covenants of such
Loan Party under this Amendment and under the Credit Agreement.

[First Amendment to Amended and Restated Credit Agreement]

3

 

     Section 5.3. Loan Documents. This Amendment is and the other Amendment Documents are
each a Loan Document, and all provisions in the Credit Agreement pertaining to Loan Documents apply
hereto and thereto.

     Section 5.4. Governing Law. This Amendment shall be governed by and construed in
accordance with the Laws applicable to the Credit Agreement.

     Section 5.5. Counterparts; Fax. This Amendment may be separately executed in
counterparts and by the different parties hereto in separate counterparts, each of which when so
executed shall be deemed to constitute one and the same Amendment. This Amendment and the other
Amendment Documents may be validly executed by facsimile or other electronic transmission.

     THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES
AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF
THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS OF THE PARTIES.

[The remainder of this page has been intentionally left blank.]

[First Amendment to Amended and Restated Credit Agreement]

4

 

     IN WITNESS WHEREOF, this Amendment is executed as of the date first above written.

	 	 	 	 	 
	 	ENCORE ACQUISITION COMPANY

 	 
	 	By:  	/s/ Robert C. Reeves
 	 
	 	 	Robert C. Reeves, Senior Vice President, 	 
	 	 	Chief Financial Officer and Treasurer 	 
	 

	 	 	 	 	 	 	 	 	 
	 	 	ENCORE OPERATING, L.P.	 	 
	 	 	By:	 	EAP Operating, LLC., its sole general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Robert C. Reeves	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Robert C. Reeves, Senior Vice President,

Chief Financial Officer and Treasurer	 	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,

as the Administrative Agent

 	 
	 	By:  	/s/
Todd MacNeill
 	 
	 	 	Todd MacNeill 	 
	 	 	Vice President 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as a Lender, L/C Issuer

 	 
	 	By:  	/s/ Jeffrey H. Rathkamp
 	 
	 	 	Jeffrey H. Rathkamp 	 
	 	 	Managing Director 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	WACHOVIA BANK, N.A., as a Lender

 	 
	 	By:  	/s/ Leanne S. Phillips
 	 
	 	 	Leanne S. Phillips 	 
	 	 	Director 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	FORTIS CAPITAL CORP., as a Lender

 	 
	 	By:  	/s/ Michele Jones
 	 
	 	 	Michele Jones 	 
	 	 	Director 	 
	 
	 	 	 
	 	By:  	                                              /s/ Deirdre Sanborn
 	 
	 	 	Deirdre Sanborn 	 
	 	 	Director 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	BNP PARIBAS, as a Lender

 	 
	 	By:  	/s/ David Dodd
 	 
	 	 	David Dodd 	 
	 	 	Managing Director 	 
	 
	 	 	 
	 	By:  	                        /s/ Polly Schott
 	 
	 	 	Polly Schott 	 
	 	 	Vice President 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	CALYON NEW YORK BRANCH, as a Lender

 	 
	 	By:  	/s/ Sharada Manne
 	 
	 	 	Sharada Manne 	 
	 	 	Vice President 	 
	 
	 	 	 
	 	By:  	                           /s/ Tom Byargeon
 	 
	 	 	Tom Byargeon 	 
	 	 	Managing Director 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	BMO CAPITAL MARKETS FINANCING, INC.,

as a Lender

 	 
	 	By:  	/s/ James V. Ducote
 	 
	 	 	James V. Ducote 	 
	 	 	Director 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	MERRILL LYNCH CAPITAL, A DIVISION OF
MERRILL
 LYNCH BUSINESS FINANCIAL
SERVICES, as a Lender

 	 
	 	By:  	/s/ Gregory Hanson
 	 
	 	 	Gregory Hanson 	 
	 	 	Vice President 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	THE ROYAL BANK OF SCOTLAND PLC, as a
Lender
 
	 
	 	By:  	/s/ Lucy Walker
 	 
	 	 	Lucy Walker 	 
	 	 	Vice President 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	SUNTRUST BANK, as a Lender

 	 
	 	By:  	/s/ Peter Panos
 	 
	 	 	Peter Panos 	 
	 	 	Vice President 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	ALLIED IRISH BANKS PLC, as a Lender

 	 
	 	By:  	/s/ Vaughn Buck
 	 
	 	 	Vaughn Buck 	 
	 	 	EVP - Director 	 
	 
	 	 	 
	 	By:  	                           /s/ Aidan Lanigan
 	 
	 	 	Aidan Lanigan 	 
	 	 	Vice President 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	THE BANK OF NOVA SCOTIA, as a Lender

 	 
	 	By:  	/s/ David Mills
 	 
	 	 	David Mills 	 
	 	 	Director 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	COMERICA BANK, as a Lender

 	 
	 	By:  	/s/ Peter L. Sefzik
 	 
	 	 	Peter Sefzik 	 
	 	 	Vice President 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	GENERAL ELECTRIC CAPITAL
CORPORATION,
 as a Lender

 	 
	 	By:  	/s/ Carl Peterson
 	 
	 	 	Carl Peterson 	 
	 	 	Authorized Signatory 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	KEYBANK NATIONAL ASSOCIATION, as a
Lender

 	 
	 	By:  	/s/ Thomas Rajan
 	 
	 	 	Thomas Rajan 	 
	 	 	Director 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	MIZUHO CORPORATE BANK, LTD., as a
Lender

 	 
	 	By:  	/s/ Raymond Ventura
 	 
	 	 	Raymond Ventura 	 
	 	 	Deputy General Manager 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	NATIXIS, as a Lender

 	 
	 	By:  	/s/ Donovan C. Broussard
 	 
	 	 	Donovan C. Broussard 	 
	 	 	Managing Director 	 
	 
	 	 	 
	 	By:  	                       /s/ Liana Tchernysheva
 	 
	 	 	Liana Tchernysheva 	 
	 	 	Director 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	SUMITOMO MITSUI BANKING CORPORATION, as a Lender

 	 
	 	By:  	/s/ William M. Ginn
 	 
	 	 	William M. Ginn 	 
	 	 	General Manager 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK, N.A., as a Lender

 	 
	 	By:  	/s/ Charles D. Kirkham
 	 
	 	 	Charles D. Kirkham 	 
	 	 	Senior Vice President 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	BANK OF SCOTLAND, as a Lender

 	 
	 	By:  	/s/ Karen Weich
 	 
	 	 	Karen Weich 	 
	 	 	Vice President 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Kathryn A. Gaiter
 	 
	 	 	Kathryn A. Gaiter 	 
	 	 	Vice President 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	DNB NOR BANK ASA, as a Lender

 	 
	 	By:  	/s/ Asa Jemseby Rodgers
 	 
	 	 	Asa Jemseby Rodgers 	 
	 	 	Vice President 	 
	 
	 	 	 
	 	By:  	                        /s/ Cathleen Buckley
 	 
	 	 	Cathleen Buckley 	 
	 	 	Vice President 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	UNION BANK OF CALIFORNIA, N.A., as a Lender

 	 
	 	By:  	/s/ Alison Fuqua
 	 
	 	 	Alison Fuqua 	 
	 	 	Assistant Vice President 	 
	 
	 	 	 
	 	By:  	                       /s/ Randy Osterberg
 	 
	 	 	Randy Oserberg 	 
	 	 	Senior Vice President 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	CITIBANK, N.A., as a Lender

 	 
	 	By:  	/s/ David E. Hunt
 	 
	 	 	David E. Hunt 	 
	 	 	Attorney-in-Fact 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	THE FROST NATIONAL BANK, as a Lender

 	 
	 	By:  	/s/ John S. Warren
 	 
	 	 	John S. Warren 	 
	 	 	Senior Vice President 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	ROYAL BANK OF CANADA, as a Lender

 	 
	 	By:  	/s/ Don J. McKinnerney
 	 
	 	 	Don J. McKinnerney 	 
	 	 	Authorized Signatory 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	WESTLB AG, NEW YORK BRANCH, as a Lender

 	 
	 	By:  	/s/ Philip Juskowicz
 	 
	 	 	Philip Juskowicz 	 
	 	 	Associate Director 	 
	 
	 	 	 
	 	By:  	                         /s/ Felicia Linforgia
 	 
	 	 	Felicia Linforgia 	 
	 	 	Director 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	COMPASS BANK, as a Lender

 	 
	 	By:  	/s/ Adrianne D. Griffin
 	 
	 	 	Adrianne D. Griffin 	 
	 	 	Vice President 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	MIDFIRST BANK, as a Lender

 	 
	 	By:  	/s/ Shawn D. Brewer
 	 
	 	 	Shawn D. Brewer 	 
	 	 	Vice President 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	UBS LOAN FINANCE LLC, as a Lender

 	 
	 	By:  	/s/ Irja R. Otsa
 	 
	 	 	Irja R. Otsa 	 
	 	 	Associate Director 	 
	 
	 	 	 
	 	By:  	                          /s/ Mary E. Evans
 	 
	 	 	Mary E. Evans 	 
	 	 	Associate Director 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	DZ BANK AG DEUTSCHE ZENTRAL-

GENOSSENSCHAFTSBANK,
FRANKFURT AM
 MAIN, NEW YORK BRANCH, as a Lender

 	 
	 	By:  	/s/ Daria A. Pishko
 	 
	 	 	Daria A. Pishko 	 
	 	 	First Vice President 	 
	 
	 	 	 
	 	By:  	                          /s/ Judson Horn
 	 
	 	 	Judson Horn 	 
	 	 	Assistant Treasurer 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	RZB FINANCE LLC, as a Lender

 	 
	 	By:  	/s/ Shirley Ritch
 	 
	 	 	Shirley Ritch 	 
	 	 	Assistant Vice President 	 
	 
	 	 	 
	 	By:  	                   /s/ John A. Valishe
 	 
	 	 	John A. Valishe 	 
	 	 	 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	STERLING BANK, as a Lender

 	 
	 	By:  	/s/ Melissa Bauman
 	 
	 	 	Melissa Bauman 	 
	 	 	Senior Vice President 	 
	 

Signature Page to First Amendment to Credit Agreement

 

 

EXHIBIT A

Exhibit A to First Amendment to Amended and Restated Credit Agreement

 

 

[First Amendment]

Consent and Agreement to First Amendment to

Amended and Restated Credit Agreement dated as of January 31, 2008

     The undersigned each hereby (a) consents to the provisions of the Amendment and the
transactions contemplated herein and hereby, (b) ratifies and confirms the Amended and Restated
Guaranty dated as of March 7, 2007 made by it in favor of Bank of America, N.A., as the
Administrative Agent, as such Guaranty has been supplemented, and the other Loan Documents to which
it is a party and (c) agrees that its obligations and covenants under the Loan Documents are
unimpaired hereby and shall remain in full force and effect.

	 	 	 	 	 
	 	EAP OPERATING, LLC

 	 
	 	By:  	/s/ Robert C. Reeves
 	 
	 	 	Robert C. Reeves 	 
	 	 	Senior Vice President, Chief Financial Officer,

and Treasurer 	 
	 

	 	 	 	 	 
	 	ENCORE OPERATING LOUISIANA, LLC

 	 
	 	By:  	/s/ Audria Winter
 	 
	 	 	 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	EAP PROPERTIES, INC.

 	 
	 	By:  	/s/ Robert C. Reeves
 	 
	 	 	Robert C. Reeves 	 
	 	 	Senior Vice President, Chief Financial Officer,

and Treasurer 	 
	 

[Consent and Agreement]exv10w1

 

Exhibit 10.1

GOLDMAN, SACHS & CO.  85 BROAD STREET | NEW YORK, NEW YORK 10004 | TEL: 212-902-1000

Opening Transaction

	 	 	 
	To:
	 	Digital River, Inc.
	 
	 	9625 West 76th Street
	 
	 	Eden Prairie, MN 55344
	 
	 	 
	A/C:
	 	028808772
	 
	 	 
	From:
	 	Goldman, Sachs & Co.
	 
	 	 
	Re:
	 	Collared Accelerated Stock Buyback
	 
	 	 
	Ref. No:
	 	As provided in the Supplemental Confirmation
	 
	 	 
	Date:
	 	February 7, 2008

 

This master confirmation (this “Master Confirmation”), dated as of February 7, 2008 is intended to
set forth certain terms and provisions of certain Transactions (each, a “Transaction”) entered into
from time to time between Goldman, Sachs & Co. (“GS&Co.”) and Digital River, Inc. (“Counterparty”).
This Master Confirmation, taken alone, is neither a commitment by either party to enter into any
Transaction nor evidence of a Transaction. The additional terms of any particular Transaction
shall be set forth in (i) a Supplemental Confirmation in the form of Schedule A hereto (a
“Supplemental Confirmation”), which shall reference this Master Confirmation and supplement, form a
part of, and be subject to this Master Confirmation and (ii) a Trade Notification in the form of
Schedule B hereto (a “Trade Notification”), which shall reference the relevant Supplemental
Confirmation and supplement, form a part of, and be subject to such Supplemental Confirmation.
This Master Confirmation, each Supplemental Confirmation and the related Trade Notification
together shall constitute a “Confirmation” as referred to in the Agreement specified below.

     The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the
“Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc.,
are incorporated into this Master Confirmation. This Master Confirmation, each Supplemental
Confirmation and the related Trade Notification evidence a complete binding agreement between
Counterparty and GS&Co. as to the subject matter and terms of each Transaction to which this Master
Confirmation, such Supplemental Confirmation and Trade Notification relate and shall supersede all
prior or contemporaneous written or oral communications with respect thereto.

     This Master Confirmation, each Supplemental Confirmation and each Trade Notification
supplement, form a part of, and are subject to an agreement in the form of the 1992 ISDA Master
Agreement (Multicurrency-Cross Border) (the “Agreement”) as if GS&Co. and Counterparty had executed
the Agreement on the date of this Master Confirmation (but without any Schedule except for (i) the
election of Loss and Second Method, New York law (without reference to its choice of laws doctrine
other than Title 14 of Article 5 of the New York General Obligations Law) as the governing law and
US Dollars (“USD”) as the Termination Currency, (ii) the election that subparagraph (ii) of Section
2(c) will not apply to the Transactions, (iii) the replacement of the word “third” in the last line
of Section 5(a)(i) with the word “first” and (iv) the election that the “Cross Default” provisions
of Section 5(a)(vi) shall apply to Counterparty, with a “Threshold Amount” of USD 50 million).

     The Transactions shall be the sole Transactions under the Agreement. If there exists any ISDA
Master Agreement between GS&Co. and Counterparty or any confirmation or other agreement between
GS&Co. and Counterparty pursuant to which an ISDA Master Agreement is deemed to exist between
GS&Co. and Counterparty, then notwithstanding anything to the contrary in such ISDA Master
Agreement, such confirmation or agreement or any other agreement to which GS&Co. and Counterparty
are parties, the Transactions shall not be considered Transactions under, or otherwise governed by,
such existing or deemed ISDA Master Agreement.

 

 

     All provisions contained or incorporated by reference in the Agreement shall govern this
Master Confirmation, each Supplemental Confirmation and each Trade Notification except as expressly
modified herein or in the related Supplemental Confirmation.

     If, in relation to any Transaction to which this Master Confirmation, a Supplemental
Confirmation and a Trade Notification relate, there is any inconsistency between the Agreement,
this Master Confirmation, any Supplemental Confirmation, any Trade Notification and the Equity
Definitions, the following will prevail for purposes of such Transaction in the order of precedence
indicated: (i) such Trade Notification, (ii) such Supplemental Confirmation; (iii) this Master
Confirmation; (iv) the Agreement; and (v) the Equity Definitions.

1. Each Transaction constitutes a Share Forward Transaction for the purposes of the Equity
Definitions. Set forth below are the terms and conditions that, together with the terms and
conditions set forth in the Supplemental Confirmation and Trade Notification relating to any
Transaction, shall govern such Transaction.

	 	 	 
	General Terms:
	 	 
	 
	 	 
	   Trade Date:

	 	For each Transaction, as set forth in the related Supplemental Confirmation.
	 
	 	 
	   Buyer:

	 	Counterparty
	 
	 	 
	   Seller:

	 	GS&Co.
	 
	 	 
	   Shares:

	 	Common stock, par value $0.01 per share, of Counterparty (Ticker: DRIV)
	 
	 	 
	   Exchange:

	 	NASDAQ
	 
	 	 
	   Related Exchange(s):

	 	All Exchanges.
	 
	 	 
	   Prepayment\Variable
	 	 
	   Obligation:

	 	Applicable
	 
	 	 
	   Prepayment Amount:

	 	For each Transaction, as set forth in the related Supplemental Confirmation.
	 
	 	 
	   Prepayment Date:

	 	For each Transaction, as set forth in the related Supplemental Confirmation.
	 
	 	 
	Valuation:
	 	 
	 
	 	 
	   Hedge Period:

	 	The period from and including the first Exchange Business Day following the
Trade Date to and including the Hedge Completion Date.
	 
	 	 
	   Hedge Completion Date:

	 	For each Transaction, as set forth in the related Trade Notification,
to be the Exchange Business Day on which GS&Co. finishes establishing its initial hedge
positions in respect of such Transaction, as determined by GS&Co. in its sole discretion,
but in no event later than the Hedge Period End Date.
	 
	 	 
	   Hedge Period End Date:

	 	For each Transaction, as set forth in the related Supplemental
Confirmation.
	 
	 	 
	   Hedge Period Reference
	 	 
	   Price:

	 	For each Transaction, as set forth in the related Trade Notification, to be the average
of the VWAP Prices for the Exchange Business Days in the Hedge Period, subject to
“Valuation Disruption” below.
	 
	 	 
	   VWAP Price:

	 	For any Exchange Business Day, as determined by the Calculation Agent based on
the NASDAQ 10b-18 Volume Weighted Average Price per Share for the regular trading session
(including any extensions thereof) of the Exchange on such Exchange Business Day (without
regard to pre-open or after hours trading

2

 

	 	 	 
	 

	 	outside of such regular trading session for such Exchange Business
Day), as published by Bloomberg at 4:15 p.m. New York time (or 15
minutes following the end of any extension of the regular trading
session) on such Exchange Business Day, on Bloomberg page “DRIV.Q
<Equity> AQR_SEC” (or any successor thereto), or if such price
is not so reported on such Exchange Business Day for any reason or
is, in the Calculation Agent’s reasonable discretion, erroneous, such
VWAP Price shall be as reasonably determined by the Calculation
Agent. For purposes of calculating the VWAP Price, the Calculation
Agent will include only those trades that are reported during the
period of time during which Counterparty could purchase its own
shares under Rule 10b-18(b)(2) and are effected pursuant to the
conditions of Rule 10b-18(b)(3), each under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”) (such trades, “Rule
10b-18 eligible transactions”).
	 
	 	 
	   Forward Price:

	 	The average of the VWAP Prices for the Exchange Business Days in the Calculation
Period, subject to “Valuation Disruption” below.
	 
	 	 
	   Forward Price
	 	 
	   Adjustment Amount:

	 	For each Transaction, as set forth in the related Supplemental Confirmation.
	 
	 	 
	   Calculation Period:

	 	The period from and including the Calculation Period Start Date to and
including the Termination Date.
	 
	 	 
	   Calculation Period
	 	 
	   Start Date:

	 	For each Transaction, as set forth in the related Trade
Notification, to be the first Exchange Business Day immediately following the Hedge
Completion Date.
	 
	 	 
	   Termination Date:

	 	The Scheduled Termination Date; provided that GS&Co. shall have the right to
designate any Exchange Business Day on or after the First Acceleration Date to be the
Termination Date (the “Accelerated Termination Date”) by delivering notice to Counterparty
of any such designation prior to 11:59 p.m. New York City time on such Exchange Business
Day.
	 
	 	 
	   Scheduled Termination
	 	 
	   Date:

	 	For each Transaction, as set forth in the related Supplemental
Confirmation, subject to postponement as provided in “Valuation Disruption” below.
	 
	 	 
	   First Acceleration
	 	 
	   Date:

	 	For each Transaction, as set forth in the related Supplemental
Confirmation.
	 
	 	 
	   Valuation Disruption:

	 	The definition of “Market Disruption Event” in Section 6.3(a) of the
Equity Definitions is hereby amended by deleting the words “at any time during the one-hour
period that ends at the relevant Valuation Time, Latest Exercise Time, Knock-in Valuation
Time or Knock-out Valuation Time, as the case may be” and inserting the words “at any time
on any Scheduled Trading Day during the Hedge Period, Calculation Period or Settlement
Valuation Period” after the word “material,” in the third line thereof.
	 
	 	 
	 

	 	Section 6.3(d) of the Equity Definitions is hereby amended by
deleting the remainder of the provision following the term “Scheduled
Closing Time” in the fourth line thereof.
	 
	 	 
	 

	 	Notwithstanding anything to the contrary in the Equity Definitions,
to the extent that a Disrupted Day occurs (i) in the Hedge Period or
the Calculation Period, the Calculation Agent may, in its good faith
and commercially reasonable discretion, postpone either or both of
the Hedge Period End Date and/or the Scheduled Termination Date, or
(ii) in the Settlement Valuation Period, the Calculation Agent may
extend the Settlement Valuation Period. If any such Disrupted Day is
a Disrupted Day because of a Market Disruption Event (or a deemed
Market Disruption Event as provided herein), the Calculation Agent

3

 

	 	 	 
	 

	 	shall determine whether (i) such Disrupted Day is a Disrupted Day in
full, in which case the VWAP Price for such Disrupted Day shall not
be included for purposes of determining the Hedge Period Reference
Price, the Forward Price or the Settlement Price, as the case may be,
or (ii) such Disrupted Day is a Disrupted Day only in part, in which
case the VWAP Price for such Disrupted Day shall be determined by the
Calculation Agent based on Rule 10b-18 eligible transactions in the
Shares on such Disrupted Day effected before the relevant Market
Disruption Event occurred and/or after the relevant Market Disruption
Event ended, and the weighting of the VWAP Price for the relevant
Exchange Business Days during the Hedge Period, the Calculation
Period or the Settlement Valuation Period, as the case may be, shall
be adjusted in a commercially reasonable manner by the Calculation
Agent for purposes of determining the Hedge Period Reference Price,
the Forward Price or the Settlement Price, as the case may be, with
such adjustments based on, among other factors, the duration of any
Market Disruption Event and the volume, historical trading patterns
and price of the Shares. Any Scheduled Trading Day on which the
Exchange is scheduled to close prior to its normal close of trading
shall be deemed to be a Disrupted Day in full.
	 
	 	 
	 

	 	If a Disrupted Day occurs during the Hedge Period, the Calculation
Period or the Settlement Valuation Period, as the case may be, and
each of the nine immediately following Scheduled Trading Days is a
Disrupted Day, then the Calculation Agent, in its good faith and
commercially reasonable discretion, may deem such ninth Scheduled
Trading Day to be an Exchange Business Day that is not a Disrupted
Day and determine the VWAP Price for such ninth Scheduled Trading Day
using its good faith estimate of the value of the Shares on such
ninth Scheduled Trading Day based on the volume, historical trading
patterns and price of the Shares and such other factors as it deems
appropriate.
	Settlement Terms:
	 	 
	 
	 	 
	   Physical Settlement:

	 	Applicable; provided that GS&Co. does not, and shall not, make the
agreement or the representations set forth in Section 9.11 of the Equity Definitions
related to the restrictions imposed by applicable securities laws with respect to any
Shares delivered by GS&Co. to Counterparty under any Transaction.
	 
	 	 
	   Number of Shares
	 	 
	   to be Delivered:

	 	A number of Shares equal to (a) the Prepayment Amount divided by (b)(i)
the Forward Price minus (ii) the Forward Price Adjustment Amount; provided that the Number
of Shares to be Delivered shall not be less than the Minimum Shares and not greater than
the Maximum Shares. The Number of Shares to be Delivered on the Settlement Date shall be
reduced, but not below zero, by any Shares delivered pursuant to the Initial Share Delivery
and the Minimum Share Delivery described below.
	 
	 	 
	   Excess Dividend Amount:

	 	For the avoidance of doubt, all references to the Excess Dividend Amount
shall be deleted from Section 9.2(a)(iii) of the Equity Definitions.
	 
	 	 
	   Settlement Date:

	 	The date that is one Settlement Cycle immediately following the Termination
Date.
	 
	 	 
	   Settlement Currency:

	 	USD
	 
	 	 
	   Initial Share Delivery:

	 	GS&Co. shall deliver a number of Shares equal to the Initial Shares to
Counterparty on the Initial Share Delivery Date in accordance with Section 9.4 of the
Equity Definitions, with the Initial Share Delivery Date deemed to be a “Settlement Date”
for purposes of such Section 9.4.

4

 

	 	 	 
	   Initial Share Delivery
	 	 
	   Date:

	 	For each Transaction, as set forth in the related Supplemental Confirmation.
	 
	 	 
	   Initial Shares:

	 	For each Transaction, as set forth in the related Supplemental Confirmation.
	 
	 	 
	   Minimum Share Delivery:

	 	GS&Co. shall deliver a number of Shares equal to the excess, if any, of
the Minimum Shares over the Initial Shares on the Minimum Share Delivery Date in accordance
with Section 9.4 of the Equity Definitions, with the Minimum Share Delivery Date deemed to
be a “Settlement Date” for purposes of such Section 9.4.
	 
	 	 
	   Minimum Share Delivery
	 	 
	   Date:

	 	The date one Settlement Cycle immediately following the Hedge Completion Date.
	 
	 	 
	   Minimum Shares:

	 	For each Transaction, as set forth in the related Supplemental Confirmation.
	 
	 	 
	   Maximum Shares:

	 	For each Transaction, as set forth in the related Supplemental Confirmation.
	 
	 	 
	Share Adjustments:
	 	 
	 
	 	 
	   Potential Adjustment
	 	 
	   Event:

	 	Notwithstanding anything to the contrary in Section 11.2(e) of the
Equity Definitions, an Extraordinary Dividend shall not constitute a Potential Adjustment
Event.
	 
	 

	 	It shall constitute an additional Potential Adjustment Event if the
Termination Date for any Transaction is postponed pursuant to
“Valuation Disruption” above, in which case the Calculation Agent
may, in its commercially reasonable discretion, adjust any relevant
terms of any such Transaction as necessary to preserve as nearly as
practicable the fair value of such Transaction to GS&Co. prior to
such postponement.
	 
	 	 
	   Extraordinary Dividend:

	 	Any dividend or distribution on the Shares (other than any dividend or
distribution of the type described in Section 11.2(e)(i) or Section 11.2(e)(ii)(A) or (B)
of the Equity Definitions). For the avoidance of doubt, the Calculation Agent shall not
make any adjustments to account for changes in extraordinary dividends under any
circumstances under this Master Confirmation.
	 
	 	 
	   Method of Adjustment:

	 	Calculation Agent Adjustment
	 
	 	 
	Extraordinary Events:
	 	 
	 
	 	 
	   Consequences of
	 	 
	   Merger Events:
	 	 
	 
	 	 
	   (a) Share-for-Share:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	   (b) Share-for-Other:

	 	Cancellation and Payment
	 
	 	 
	   (c) Share-for-Combined:

	 	Component Adjustment
	 
	 	 
	   Tender Offer:

	 	Applicable; provided that (i) Section 12.1(l) of the
Equity Definitions shall be amended (x) by deleting the parenthetical
in the fifth line thereof, (y) by replacing “that” in the fifth line
thereof with “whether or not such announcement” and (z) by adding
immediately after the words “Tender Offer” in the fifth line thereof
”, and any publicly announced change or amendment to

5

 

	 	 	 
	 

	 	such an announcement (including the announcement of an abandonment of
such intention)” and (ii) Sections 12.3(a) and 12.3(d) of the Equity
Definitions shall each be amended by replacing each occurrence of the
words “Tender Offer Date” by “Announcement Date.”
	 
	 	 
	   Consequences of
	 	 
	   Tender Offers:
	 	 
	 
	 	 
	   (a) Share-for-Share:

	 	Modified Calculation Agent Adjustment or
Cancellation and Payment, at the election of GS&Co.
	 
	 	 
	   (b) Share-for-Other:

	 	Modified Calculation Agent Adjustment or Cancellation and
Payment, at the election of GS&Co.
	 
	 	 
	   (c) Share-for-Combined:

	 	Modified Calculation Agent Adjustment or Cancellation and
Payment, at the election of GS&Co.
	 
	 	 
	   Nationalization,
	 	 
	   Insolvency or Delisting:

	 	Cancellation and Payment; provided that in addition to the provisions
of Section 12.6(a)(iii) of the Equity Definitions, it shall also constitute a Delisting if
the Exchange is located in the United States and the Shares are not immediately re-listed,
re-traded or re-quoted on any of the New York Stock Exchange, the American Stock Exchange,
The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective
successors); if the Shares are immediately re-listed, re-traded or re-quoted on any such
exchange or quotation system, such exchange or quotation system shall be deemed to be the
Exchange.
	 
	 	 
	Additional Disruption Events:
	 	 
	 
	 	 
	   (a) Change in Law:

	 	Applicable
	 
	 	 
	   (b) Failure to Deliver:

	 	Applicable
	 
	 	 
	   (c) Insolvency Filing:

	 	Applicable
	 
	 	 
	   (d) Loss of Stock Borrow:

	 	 Applicable; provided that Sections 12.9(a)(vii) and
12.9(b)(iv) of the Equity Definitions shall be amended by deleting the words “at a rate
equal to or less than the Maximum Stock Loan Rate” and replacing them with “at a rate
of return equal to or greater than zero”.
	 
	 	 
	          Hedging Party:

	 	GS&Co.
	 
	 	 
	          Determining Party:

	 	GS&Co.
	 
	 	 
	   Additional Termination
	 	 
	   Event(s):

	 	Notwithstanding
anything to the contrary in the Equity Definitions, if, as a result of an
Extraordinary Event, any Transaction would be cancelled or terminated (whether in
whole or in part) pursuant to Article 12 of the Equity Definitions, an Additional
Termination Event (with such terminated Transaction(s) (or portions thereof) being
the Affected Transaction(s) and Counterparty being the sole Affected Party) shall be
deemed to occur, and, in lieu of Sections 12.7, 12.8 and 12.9 of the Equity
Definitions, Section 6 of the Agreement shall apply to such Affected Transaction(s).
	 
	 	 
	 

	 	The declaration by the Issuer of any Extraordinary Dividend, the ex-dividend
date for which occurs or is scheduled to occur during the Relevant Dividend Period,
will constitute an Additional Termination Event, with Counterparty as

6

 

	 	 	 
	 

	 	the sole Affected Party and all Transactions hereunder as the Affected Transactions.
	 
	 	 
	Relevant Dividend Period:

	 	The period from and
including the first day of the Hedge Period to and including the Relevant Dividend
Period End Date.
	 
	 	 
	Relevant Dividend Period
	 	 
	End Date:

	 	If Annex A applies, the last day of the Settlement
Valuation Period; otherwise, the Termination Date.
	 
	 	 
	Non-Reliance/Agreements and
Acknowledgements Regarding
Hedging Activities/Additional
	 	 
	Acknowledgements:

	 	Applicable
	 
	 	 
	Transfer:

	 	Notwithstanding anything to the contrary in the Agreement, GS&Co. may assign,
transfer and set over all rights, title and interest, powers, privileges and
remedies of GS&Co. under any Transaction, in whole or in part, to an affiliate of
GS&Co. whose obligations are guaranteed by The Goldman Sachs Group, Inc. without the
consent of Counterparty.
	 
	 	 
	GS&Co. Payment Instructions:

	 	Chase Manhattan Bank New York
	 

	 	For A/C Goldman, Sachs & Co.
	 

	 	A/C #930-1-011483
	 

	 	ABA: 021-000021
	 
	 	 
	Counterparty’s Contact Details
	 	 
	for Purpose of Giving Notice:

	 	Digital River, Inc.
	 

	 	9625 West 76th Street
	 

	 	Eden Prairie, MN 55344
	 

	 	Attention: Thomas M. Donnelly
	 

	 	Telephone No.: (952) 253-8345
	 
	 	 
	 

	 	With a copy to:
	 

	 	Kevin L. Crudden
	 

	 	Telephone No.: (952) 540-3050
	 

	 	Facsimile No.: (952) 672-4444
	 
	 	 
	GS&Co.’s Contact Details for
	 	 
	Purpose of Giving Notice:

	 	Telephone No.: (212) 902-8996
	 

	 	Facsimile No.: (212) 902-0112
	 

	 	Attention: Equity Operations: Options and Derivatives
	 
	 	 
	 

	 	With a copy to:
	 

	 	Tracey McCabe

Equity Capital Markets

One New York Plaza 

New York, NY 10004

Telephone No.: (212) 357-0428

Facsimile No.: (212) 902-3000
	 
	 	 
	2. Calculation Agent.

	 	GS&Co.

3. Additional Mutual Representations, Warranties and Covenants of Each Party. In addition
to the representations, warranties and covenants in the Agreement, each party represents, warrants
and covenants to the other party that:

7

 

     (a) Eligible Contract Participant. It is an “eligible contract participant”, as
defined in the U.S. Commodity Exchange Act (as amended), and is entering into each Transaction
hereunder as principal (and not as agent or in any other capacity, fiduciary or otherwise) and not
for the benefit of any third party.

     (b) Accredited Investor. Each party acknowledges that the offer and sale of each
Transaction to it is intended to be exempt from registration under the Securities Act of 1933, as
amended (the “Securities Act”), by virtue of Section 4(2) thereof. Accordingly, each party
represents and warrants to the other that (i) it has the financial ability to bear the economic
risk of its investment in each Transaction and is able to bear a total loss of its investment, (ii)
it is an “accredited investor” as that term is defined under Regulation D under the Securities Act
and (iii) the disposition of each Transaction is restricted under this Master Confirmation, the
Securities Act and state securities laws.

4. Additional Representations, Warranties and Covenants of Counterparty. In addition to
the representations, warranties and covenants in the Agreement, Counterparty represents, warrants
and covenants to GS&Co. that:

     (a) The purchase or writing of each Transaction and the transactions contemplated hereby will
not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act.

     (b) It is not entering into any Transaction (i) on the basis of, and is not aware of, any
material non-public information with respect to the Shares (ii) in anticipation of, in connection
with, or to facilitate, a distribution of its securities, a self tender offer or a third-party
tender offer or (iii) to create actual or apparent trading activity in the Shares (or any security
convertible into or exchangeable for the Shares) or to raise or depress or otherwise manipulate the
price of the Shares (or any security convertible into or exchangeable for the Shares).

     (c) Each Transaction is being entered into pursuant to a publicly disclosed Share buy-back
program and its Board of Directors has approved the use of derivatives to effect the Share buy-back
program.

     (d) Without limiting the generality of Section 13.1 of the Equity Definitions, it acknowledges
that neither GS&Co. nor any of its affiliates is making any representations or warranties or taking
any position or expressing any view with respect to the treatment of any Transaction under any
accounting standards including FASB Statements 128, 133 as amended, or 149, 150, EITF 00-19, 01-6
or EITF 03-6 (or any successor issue statements) or under the Financial Accounting Standards
Board’s Liabilities & Equity Project.

     (e) As of (i) the date hereof and (ii) the Trade Date for each Transaction hereunder,
Counterparty is in compliance with its reporting obligations under the Exchange Act and its most
recent Annual Report on Form 10-K, together with all reports subsequently filed by it pursuant to
the Exchange Act, taken together and as amended and supplemented to the date of this
representation, do not, as of their respective filing dates, contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary to make
the statements therein, in the light of the circumstances under which they were made, not
misleading;

     (f) Counterparty shall report each Transaction as required under Regulation S-K under the
Exchange Act.

     (g) The Shares are not, and Counterparty will not cause the Shares to be, subject to a
“restricted period” (as defined in Regulation M promulgated under the Exchange Act) at any time
during any Regulation M Period (as defined below) for any Transaction unless Counterparty has
provided written notice to GS&Co. of such restricted period not later than the Scheduled Trading
Day immediately preceding the first day of such “restricted period”; Counterparty acknowledges that
any such notice may cause a Disrupted Day to occur pursuant to Section 5 below; accordingly,
Counterparty acknowledges that its delivery of such notice must comply with the standards set forth
in Section 6 below; “Regulation M Period” means, for any Transaction, (i) the Relevant Period (as
defined below) and (ii) the Settlement Valuation Period, if any, for such Transaction. “Relevant
Period” means, for any Transaction, the period commencing on the first day of the Hedge Period for
such Transaction and ending on the earlier of (i) the Scheduled Termination Date and (ii) the last
Additional Relevant Day (as specified in the related Supplemental Confirmation) for such
Transaction, or such earlier day as elected by GS&Co. and communicated to
Counterparty on such day (or, if later, the First Acceleration Date without regard to any
acceleration thereof pursuant to “Special Provisions for Acquisition Transaction Announcements”
below).

8

 

     (h) As of the Trade Date, the Prepayment Date, the Initial Share Delivery Date, the Minimum
Share Delivery Date and the Settlement Date for each Transaction, Counterparty is not “insolvent”
(as such term is defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United
States Code) (the “Bankruptcy Code”)) and Counterparty would be able to purchase a number of Shares
with a value equal to the Prepayment Amount in compliance with the laws of the jurisdiction of
Counterparty’s incorporation.

     (i) Counterparty is not and, after giving effect to any Transaction, will not be, required to
register as an “investment company” as such term is defined in the Investment Company Act of 1940,
as amended.

     (j) Counterparty will not take any action or refrain from taking any action that would limit
or in any way adversely affect GS&Co.’s rights under the Agreement, this Master Confirmation or any
Supplemental Confirmation.

     (k) Counterparty has not and will not enter into agreements similar to the Transactions
described herein where any initial hedge period, calculation period, relevant period or settlement
valuation period (each however defined) in such other transaction will overlap at any time
(including as a result of extensions in such initial hedge period, calculation period, relevant
period or settlement valuation period as provided in the relevant agreements) with any Relevant
Period or, if applicable, any Settlement Valuation Period under this Master Confirmation. In the
event that the initial hedge period, relevant period, calculation period or settlement valuation
period in any other similar transaction overlaps with any Relevant Period or, if applicable,
Settlement Valuation Period under this Master Confirmation as a result of any postponement of the
Termination Date or extension of the Settlement Valuation Period pursuant to “Valuation Disruption”
above, Counterparty shall promptly amend such transaction to avoid any such overlap.

5. Regulatory Disruption. In the event that GS&Co. concludes, in its sole discretion in a
commercially reasonable manner, that it is appropriate with respect to any legal, regulatory or
self-regulatory requirements or related policies and procedures (whether or not such requirements,
policies or procedures are imposed by law or have been voluntarily adopted by GS&Co.), for it to
refrain from purchasing Shares on any Scheduled Trading Day or Days during the Hedge Period, the
Calculation Period or, if applicable, the Settlement Valuation Period, GS&Co. may by written notice
to Counterparty elect to deem that a Market Disruption Event has occurred and will be continuing on
such Scheduled Trading Day or Days.

6. 10b5-1 Plan. Counterparty represents, warrants and covenants to GS&Co. that:

     (a) Counterparty is entering into this Master Confirmation and each Transaction hereunder in
good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1 under the
Exchange Act (“Rule 10b5-1”) or any other antifraud or anti-manipulation provisions of the federal
or applicable state securities laws and that it has not entered into or altered and will not enter
into or alter any corresponding or hedging transaction or position with respect to the Shares.
Counterparty acknowledges that it is the intent of the parties that each Transaction entered into
under this Master Confirmation comply with the requirements of paragraphs (c)(1)(i)(A) and (B) of
Rule 10b5-1 and each Transaction entered into under this Master Confirmation shall be interpreted
to comply with the requirements of Rule 10b5-1(c).

     (b) Counterparty will not seek to control or influence GS&Co.’s decision to make any
“purchases or sales” (within the meaning of Rule 10b5-1(c)(1)(i)(B)(3)) under any Transaction
entered into under this Master Confirmation, including, without limitation, GS&Co.’s decision to
enter into any hedging transactions. Counterparty represents and warrants that it has consulted
with its own advisors as to the legal aspects of its adoption and implementation of this Master
Confirmation, each Supplemental Confirmation and each Trade Notification under Rule 10b5-1.

     (c) Counterparty acknowledges and agrees that any amendment, modification, waiver or
termination of this Master Confirmation, the relevant Supplemental Confirmation or Trade
Notification must be effected in
accordance with the requirements for the amendment or termination of a “plan” as defined in Rule
10b5-1(c). Without limiting the generality of the foregoing, any such amendment, modification,
waiver or termination shall be made in good faith and not as part of a plan or scheme to evade the
prohibitions of Rule 10b-5, and no such

9

 

amendment, modification or waiver shall be made at any time
at which Counterparty or any officer, director, manager or similar person of Counterparty is aware
of any material non-public information regarding Counterparty or the Shares.

7. Counterparty Purchases. Counterparty (or any “affiliated purchaser” as defined in Rule
10b-18 under the Exchange Act (“Rule 10b-18”)) shall not, without the prior written consent of
GS&Co., directly or indirectly purchase any Shares (including by means of a derivative instrument),
listed contracts on the Shares or securities that are convertible into, or exchangeable or
exercisable for Shares (including, without limitation, any Rule 10b-18 purchases of blocks (as
defined in Rule 10b-18)) during any Relevant Period or, if applicable, Settlement Valuation Period,
except through GS&Co.

8. Special Provisions for Merger Transactions. Notwithstanding anything to the contrary
herein or in the Equity Definitions:

     (a) Counterparty agrees that it:

     (i) will not during the period commencing on the Trade Date through the end of the
Relevant Period or, if applicable, the Settlement Valuation Period for any Transaction make,
or permit to be made, any public announcement (as defined in Rule 165(f) under the
Securities Act) of any Merger Transaction or potential Merger Transaction unless such public
announcement is made prior to the opening or after the close of the regular trading session
on the Exchange for the Shares;

     (ii) shall promptly (but in any event prior to the next opening of the regular trading
session on the Exchange) notify GS&Co. following any such announcement that such
announcement has been made; and

     (iii) shall promptly (but in any event prior to the next opening of the regular trading
session on the Exchange) provide GS&Co. with written notice specifying (i) Counterparty’s
average daily Rule 10b-18 Purchases (as defined in Rule 10b-18) during the three full
calendar months immediately preceding the announcement date that were not effected through
GS&Co. or its affiliates and (ii) the number of Shares purchased pursuant to the proviso in
Rule 10b-18(b)(4) under the Exchange Act for the three full calendar months preceding the
announcement date. Such written notice shall be deemed to be a certification by
Counterparty to GS&Co. that such information is true and correct. In addition, Counterparty
shall promptly notify GS&Co. of the earlier to occur of the completion of such transaction
and the completion of the vote by target shareholders. Counterparty acknowledges that any
such notice may cause the terms of any Transaction to be adjusted or such Transaction to be
terminated; accordingly, Counterparty acknowledges that its delivery of such notice must
comply with the standards set forth in Section 6 above.

     (b) GS&Co. in its sole discretion may (i) make adjustments in a commercially reasonable manner
to the terms of any Transaction, including, without limitation, the Termination Date or the Forward
Price Adjustment Amount, and/or suspend the Hedge Period, the Calculation Period and/or any
Settlement Valuation Period or (ii) treat the occurrence of such public announcement as an
Additional Termination Event with Counterparty as the sole Affected Party and the Transactions
hereunder as the Affected Transactions and with the amount under Section 6(e) of the Agreement
determined in a commercially reasonable manner taking into account the fact that the Calculation
Period or Settlement Valuation Period, as the case may be, had fewer Scheduled Trading Days than
originally anticipated.

     “Merger Transaction” means any merger, acquisition or similar transaction involving a
recapitalization as contemplated by Rule 10b-18(a)(13)(iv) under the Exchange Act.

9. Special Provisions for Acquisition Transaction Announcements. (a) If an Acquisition
Transaction Announcement occurs on or prior to the Settlement Date for any Transaction, then the
Number of Shares to be Delivered for such Transaction shall be determined as if the words “less
than the Minimum Shares and not” and “, but not below zero,” were deleted from the definition
thereof. If an Acquisition Transaction Announcement occurs

10

 

after the Trade Date, but prior to the
First Acceleration Date of any Transaction, the First Acceleration Date shall be the date of such
Acquisition Transaction Announcement. If the Number of Shares to be Delivered for any settlement
of any Transaction is a negative number, then the terms of the Counterparty Settlement Provisions
in Annex A shall apply.

     (b) “Acquisition Transaction Announcement” means (i) the announcement of an Acquisition
Transaction, (ii) an announcement that Counterparty or any of its subsidiaries has entered into an
agreement, a letter of intent or an understanding designed to result in an Acquisition Transaction,
(iii) the announcement of the intention to solicit or enter into, or to explore strategic
alternatives or other similar undertaking that may include, an Acquisition Transaction, or (iv) any
other announcement that in the reasonable judgment of the Calculation Agent may result in an
Acquisition Transaction. For the avoidance of doubt, announcements as used in the definition of
Acquisition Transaction Announcement refer to any public announcement whether made by the Issuer or
a third party.

     (c) “Acquisition Transaction” means (i) any Merger Event (for purposes of this definition the
definition of Merger Event shall be read with the references therein to “100%” being replaced by
“15%” and to “50%” by “75%” and without reference to the clause beginning immediately following the
definition of Reverse Merger therein to the end of such definition), Tender Offer or Merger
Transaction or any other transaction involving the merger of Counterparty with or into any third
party, (ii) the sale or transfer of all or substantially all of the assets of Counterparty, (iii) a
recapitalization, reclassification, binding share exchange or other similar transaction, (iv) any
acquisition, lease, exchange, transfer, disposition (including by way of spin-off or distribution)
of assets (including any capital stock or other ownership interests in subsidiaries) or other
similar event by Counterparty or any of its subsidiaries where the aggregate consideration
transferable or receivable by or to Counterparty or its subsidiaries exceeds 15% of the market
capitalization of Counterparty and (v) any transaction in which Counterparty or its board of
directors has a legal obligation to make a recommendation to its shareholders in respect of such
transaction (whether pursuant to Rule 14e-2 under the Exchange Act or otherwise).

10. Acknowledgments. (a) The parties hereto intend for:

     (i) each Transaction to be a “securities contract” as defined in Section 741(7) of the
Bankruptcy Code, a “swap agreement” as defined in Section 101(53B) of the Bankruptcy Code
and a “forward contract” as defined in Section 101(25) of the Bankruptcy Code, and the
parties hereto to be entitled to the protections afforded by, among other Sections, Sections
362(b)(6), 362(b)(17), 362(b)(27), 362(o), 546(e), 546(g), 546(j), 555, 556, 560 and 561 of
the Bankruptcy Code;

     (ii) the Agreement to be a “master netting agreement” as defined in Section 101(38A) of
the Bankruptcy Code;

     (iii) a party’s right to liquidate, terminate or accelerate any Transaction, net out or
offset termination values or payment amounts, and to exercise any other remedies upon the
occurrence of any Event of Default or Termination Event under the Agreement with respect to
the other party or any Extraordinary Event that results in the termination or cancellation
of any Transaction to constitute a “contractual right” (as defined in the Bankruptcy Code);
and

     (iv) all payments for, under or in connection with each Transaction, all payments for
the Shares (including, for the avoidance of doubt, payment of the Prepayment Amount) and the
transfer of such Shares to constitute “settlement payments” and “transfers” (as defined in
the Bankruptcy Code).

     (b) Counterparty acknowledges that:

          (i) during the term of any Transaction, GS&Co. and its affiliates may buy or sell Shares or
other securities or buy or sell options or futures contracts or enter into swaps or other
derivative securities in order to establish or adjust its hedge position with respect to such
Transaction;

11

 

          (ii) GS&Co. and its affiliates may also be active in the market for the Shares other than in
connection with hedging activities in relation to any Transaction;

          (iii) GS&Co. shall make its own determination as to whether, when or in what manner any
hedging or market activities in Counterparty’s securities shall be conducted and shall do so in a
manner that it deems appropriate to hedge its price and market risk with respect to the Forward
Price and the VWAP Price;

          (iv) any market activities of GS&Co. and its affiliates with respect to the Shares may affect
the market price and volatility of the Shares, as well as the Forward Price and VWAP Price, each in
a manner that may be adverse to Counterparty; and

          (v) each Transaction is a derivatives transaction in which it has granted GS&Co. an option;
GS&Co. may purchase shares for its own account at an average price that may be greater than, or
less than, the price paid by Counterparty under the terms of the related Transaction.

11. Credit Support Documents. The parties hereto acknowledge that no Transaction hereunder
is secured by any collateral that would otherwise secure the obligations of Counterparty herein or
pursuant to the Agreement.

12. Set-off. (a) The parties agree to amend Section 6 of the Agreement by adding a new
Section 6(f) thereto as follows:

“(f) Upon the occurrence of an Event of Default or Termination
Event with respect to a party who is the Defaulting Party or the
Affected Party (“X”), the other party (“Y”) will have the right
(but not be obliged) without prior notice to X or any other person
to set-off or apply any obligation of X owed to Y (or any Affiliate
of Y) (whether or not matured or contingent and whether or not
arising under the Agreement, and regardless of the currency, place
of payment or booking office of the obligation) against any
obligation of Y (or any Affiliate of Y) owed to X (whether or not
matured or contingent and whether or not arising under the
Agreement, and regardless of the currency, place of payment or
booking office of the obligation). Y will give notice to the other
party of any set-off effected under this Section 6(f).

Amounts (or the relevant portion of such amounts) subject to
set-off may be converted by Y into the Termination Currency at the
rate of exchange at which such party would be able, acting in a
reasonable manner and in good faith, to purchase the relevant
amount of such currency. If any obligation is unascertained, Y may
in good faith estimate that obligation and set-off in respect of
the estimate, subject to the relevant party accounting to the other
when the obligation is ascertained. Nothing in this Section 6(f)
shall be effective to create a charge or other security interest.
This Section 6(f) shall be without prejudice and in addition to any
right of set-off, combination of accounts, lien or other right to
which any party is at any time otherwise entitled (whether by
operation of law, contract or otherwise).”

     (b) Notwithstanding anything to the contrary in the foregoing, GS&Co. agrees not to set off or
net amounts due from Counterparty with respect to any Transaction against amounts due from GS&Co.
to Counterparty with respect to contracts or instruments that are not Equity Contracts. “Equity
Contract” means any transaction or instrument that does not convey to GS&Co. rights, or the ability
to assert claims, that are senior to the rights and claims of common stockholders in the event of
Counterparty’s bankruptcy.

13. Delivery of Shares. Notwithstanding anything to the contrary herein, GS&Co. may, by
prior notice to Counterparty, satisfy its obligation to deliver any Shares or other securities on
any date due (an “Original Delivery Date”) by making separate deliveries of Shares or such
securities, as the case may be, at more than one time on or prior to such Original Delivery Date,
so long as the aggregate number of Shares and other securities so delivered on

12

 

or prior to such
Original Delivery Date is equal to the number required to be delivered on such Original Delivery
Date.

14. Early Termination. In the event that an Early Termination Date (whether as a result of
an Event of Default or a Termination Event) occurs or is designated with respect to any Transaction
(except as a result of a Merger Event in which the consideration or proceeds to be paid to holders
of Shares consists solely of cash), if either party would owe any amount to the other party
pursuant to Section 6(d)(ii) of the Agreement (any such amount, a “Payment Amount”), then, in lieu
of any payment of such Payment Amount, Counterparty may, no later than the Early Termination Date
or the date on which such Transaction is terminated, elect to deliver or for GS&Co. to deliver, as
the case may be, to the other party a number of Shares (or, in the case of a Merger Event, a number
of units, each comprising the number or amount of the securities or property that a hypothetical
holder of one Share would receive in such Merger Event (each such unit, an “Alternative Delivery
Unit” and, the securities or property comprising such unit, “Alternative Delivery Property”)) with
a value equal to the Payment Amount, as determined by the Calculation Agent (and the parties agree
that, in making such determination of value, the Calculation Agent may take into account a number
of factors, including the market price of the Shares or Alternative Delivery Property on the date
of early termination and, if such delivery is made by GS&Co., the prices at which GS&Co. purchases
Shares or Alternative Delivery Property to fulfill its delivery obligations under this Section
14); provided that in determining the composition of any Alternative Delivery Unit, if the
relevant Merger Event involves a choice of consideration to be received by holders, such holder
shall be deemed to have elected to receive the maximum possible amount of cash. If such delivery is
made by Counterparty, paragraphs 2 through 7 of Annex A shall apply as if such delivery were a
settlement of the Transaction to which Net Share Settlement applied, the Cash Settlement Payment
Date were the Early Termination Date and the Forward Cash Settlement Amount were zero (0) minus the
Payment Amount owed by Counterparty.

15. Calculations and Payment Date upon Early Termination. The parties acknowledge and
agree that in calculating Loss pursuant to Section 6 of the Agreement GS&Co. may (but need not)
determine losses without reference to actual losses incurred but based on expected losses assuming
a commercially reasonable (including without limitation with regard to reasonable legal and
regulatory guidelines) risk bid were used to determine loss to avoid awaiting the delay associated
with closing out any hedge or related trading position in a commercially reasonable manner prior to
or sooner following the designation of an Early Termination Date. Notwithstanding anything to the
contrary in Section 6(d)(ii) of the Agreement, all amounts calculated as being due in respect of an
Early Termination Date under Section 6(e) of the Agreement will be payable on the day that notice
of the amount payable is effective; provided that if Counterparty elects to receive Shares or
Alternative Delivery Property in accordance with Section 14, such Shares or Alternative Delivery
Property shall be delivered on a date selected by GS&Co as promptly as practicable determined in a
commercially reasonable manner.

16. Special Provisions for Counterparty Payments. The parties hereby agree that,
notwithstanding anything to the contrary herein or in the Agreement, in the event that an Early
Termination Date (whether as a result of an Event of Default or a Termination Event) occurs or is
designated with respect to any Transaction and, as a result, Counterparty owes to GS&Co. an amount
calculated under Section 6(e) of the Agreement, such amount shall be deemed to be zero; provided
that following an Acquisition Transaction Announcement, this Section 16 shall cease to apply.

17. Delivery of Cash. For the avoidance of doubt, nothing in this Master Confirmation
shall be interpreted as requiring Counterparty to deliver cash in respect of the settlement of the
Transactions contemplated by this Master Confirmation following payment by Counterparty of the
relevant Prepayment Amount, except in circumstances where the required cash settlement thereof is
permitted for classification of the contract as equity by EITF 00-19 as in effect on the relevant
Trade Date (including, without limitation, where Counterparty so elects to deliver cash or fails
timely to elect to deliver Shares or Alternative Delivery Property in respect of the settlement of
such Transactions).

18. Claim in Bankruptcy. GS&Co. acknowledges and agrees that this Confirmation is not
intended to convey to it rights with respect to the Transaction that are senior to the claims of
common stockholders in the event of Counterparty’s bankruptcy.

13

 

19. General Obligations Law of New York. With respect to each Transaction, (i) this Master
Confirmation, together with the related Supplemental Confirmation, as supplemented by the related
Trade Notification, is a “qualified financial contract”, as such term is defined in Section
5-701(b)(2) of the General Obligations Law of New York (the “General Obligations Law”); (ii) such
Trade Notification constitutes a “confirmation in writing sufficient to indicate that a contract
has been made between the parties” hereto, as set forth in Section 5-701(b)(3)(b) of the General
Obligations Law; and (iii) this Master Confirmation, together with the related Supplemental
Confirmation, constitutes a prior “written contract” as set forth in Section 5-701(b)(1)(b) of the
General Obligations Law, and each party hereto intends and agrees to be bound by this Master
Confirmation and the related Supplemental Confirmation, as supplemented by the Trade Notification.

20. Governing Law. The Agreement, this Master Confirmation, each Supplemental
Confirmation, each Trade Notification and all matters arising in connection with the Agreement,
this Master Confirmation, each Supplemental Confirmation and each Trade Notification shall be
governed by, and construed and enforced in accordance with, the laws of the State of New York
(without reference to its choice of laws doctrine other than Title 14 of Article 5 of the New York
General Obligations Law).

21. Offices.

     (a) The Office of GS&Co. for each Transaction is: One New York Plaza, New York, New York
10004.

     (b) The Office of Counterparty for each Transaction is: 9625 West 76th Street, Eden
Prairie, MN 55344.

22. Arbitration. The Agreement, this Master Confirmation, each Supplemental Confirmation
and each Trade Notification are subject to the following arbitration provisions:

     (a) All parties to this Confirmation are giving up the right to sue each other in court,
including the right to a trial by jury, except as provided by the rules of the arbitration forum in
which a claim is filed.

     (b) Arbitration awards are generally final and binding; a party’s ability to have a court
reverse or modify an arbitration award is very limited.

     (c) The ability of the parties to obtain documents, witness statements and other discovery is
generally more limited in arbitration than in court proceedings.

     (d) The arbitrators do not have to explain the reason(s) for their award.

     (e) The panel of arbitrators will typically include a minority of arbitrators who were or are
affiliated with the securities industry, unless Counterparty is a member of the organization
sponsoring the arbitration facility, in which case all arbitrators may be affiliated with the
securities industry.

     (f) The rules of some arbitration forums may impose time limits for bringing a claim in
arbitration. In some cases, a claim that is ineligible for arbitration may be brought in court.

     (g) The rules of the arbitration forum in which the claim is filed, and any amendments
thereto, shall be incorporated into this Master Confirmation.

     Counterparty agrees that any and all controversies that may arise between Counterparty and
GS&Co., including, but not limited to, those arising out of or relating to the Agreement or any
Transaction hereunder, shall be determined by arbitration conducted before The New York Stock
Exchange, Inc.
(“NYSE”) or NASD Dispute Resolution (“NASD-DR”), or, if the NYSE and NASD-DR decline to hear the
matter, before the American Arbitration Association, in accordance with their arbitration rules
then in force. The award of the arbitrator shall be final, and judgment upon the award rendered
may be entered in any court, state or federal, having jurisdiction.

14

 

     No person shall bring a putative or certified class action to arbitration, nor seek to enforce
any pre-dispute arbitration agreement against any person who has initiated in court a putative
class action or who is a member of a putative class who has not opted out of the class with respect
to any claims encompassed by the putative class action until: (i) the class certification is
denied; (ii) the class is decertified; or (iii) Counterparty is excluded from the class by the
court.

     Such forbearance to enforce an agreement to arbitrate shall not constitute a waiver of any
rights under this Master Confirmation except to the extent stated herein.

23. Counterparts. This Master Confirmation may be executed in any number of counterparts,
all of which shall constitute one and the same instrument, and any party hereto may execute this
Master Confirmation by signing and delivering one or more counterparts.

15

 

     Counterparty hereby agrees (a) to check this Master Confirmation carefully and immediately
upon receipt so that errors or discrepancies can be promptly identified and rectified and (b) to
confirm that the foregoing (in the exact form provided by GS&Co.) correctly sets forth the terms of
the agreement between GS&Co. and Counterparty with respect to any particular Transaction to which
this Master Confirmation relates, by manually signing this Master Confirmation or this page hereof
as evidence of agreement to such terms and providing the other information requested herein and
immediately returning an executed copy to Equity Derivatives Documentation Department, Facsimile
No. 212-428-1980/83.

	 	 	 	 	 
	 	

Yours faithfully,

GOLDMAN, SACHS & CO.

 	 
	 	By:  	/s/ Conrad Langenegger
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

	 	 	 	 	 
	Agreed and Accepted By:

DIGITAL RIVER, INC.

 	 	 
	By:  	/s/ Kevin L. Crudden
 	 	 
	 	Name:  	Kevin L. Crudden 	 	 
	 	Title:  	Vice President and General Counsel 	 	 
	 

 

SCHEDULE A

SUPPLEMENTAL CONFIRMATION

	 	 	 
	To:

	 	Digital River, Inc.

9625 West 76th Street

Eden Prairie, MN 55344
	 
	 	 
	From:

	 	Goldman, Sachs & Co.
	 
	 	 
	Subject:

	 	Collared Accelerated Stock Buyback
	 
	 	 
	Ref. No:

	 	[Insert Reference No.]
	 
	 	 
	Date:

	 	[Insert Date]
	 
	 	 
	 

          The purpose of this Supplemental Confirmation is to confirm the terms and conditions of the
Transaction entered into between Goldman, Sachs & Co. (“GS&Co.”) and Digital River, Inc.
(“Counterparty”) (together, the “Contracting Parties”) on the Trade Date specified below. This
Supplemental Confirmation is a binding contract between GS&Co. and Counterparty as of the relevant
Trade Date for the Transaction referenced below.

1. This Supplemental Confirmation supplements, forms part of, and is subject to the Master
Confirmation dated as of February 7, 2008 (the “Master Confirmation”) between the Contracting
Parties, as amended and supplemented from time to time. All provisions contained in the Master
Confirmation govern this Supplemental Confirmation except as expressly modified below.

2. The terms of the Transaction to which this Supplemental Confirmation relates are as follows:

	 	 	 
	Trade Date:

	 	[     ]
	 
	 	 
	Forward Price Adjustment Amount:

	 	As set forth in the Trade Notification,
to be [     ]% of the Hedge Period
Reference Price.
	 
	 	 
	Hedge Period End Date:

	 	[     ]
	 
	 	 
	Scheduled Termination Date:

	 	[     ]
	 
	 	 
	First Acceleration Date:

	 	[     ]
	 
	 	 
	Prepayment Amount:

	 	USD [     ]
	 
	 	 
	Prepayment Date:

	 	[     ]
	 
	 	 
	Initial Shares:

	 	A number of Shares equal to (i) [     ]%
multiplied by (ii) the Prepayment Amount
divided by (iii) the closing price of the
Shares on the Exchange on the Trade Date.
	 
	 	 
	Initial Share Delivery Date:

	 	[     ]
	 
	 	 
	Minimum Shares:

	 	As set forth in the Trade Notification,
to be a number of Shares equal to (a) the
Prepayment Amount divided by (b) [     ]%
of the Hedge Period Reference Price.

A-1

 

	 	 	 
	Maximum Shares:

	 	As set forth in the Trade Notification,
to be a number of Shares equal to (a) the
Prepayment Amount divided by (b) [     ]%
of the Hedge Period Reference Price.
	 
	 	 
	Additional Relevant Days:

	 	The [___] Exchange Business Days
immediately following the Calculation
Period.

3. Counterparty represents and warrants to GS&Co. that neither it nor any “affiliated purchaser”
(as defined in Rule 10b-18 under the Exchange Act) has made any purchases of blocks pursuant to the
proviso in Rule 10b-18(b)(4) under the Exchange Act during either (i) the four full calendar weeks
immediately preceding the Trade Date or (ii) during the calendar week in which the Trade Date
occurs.

4. This Supplemental Confirmation may be executed in any number of counterparts, all of which shall
constitute one and the same instrument, and any party hereto may execute this Supplemental
Confirmation by signing and delivering one or more counterparts.

A-2

 

     Counterparty hereby agrees (a) to check this Supplemental Confirmation carefully and
immediately upon receipt so that errors or discrepancies can be promptly identified and rectified
and (b) to confirm that the foregoing (in the exact form provided by GS&Co.) correctly sets forth
the terms of the agreement between GS&Co. and Counterparty with respect to the Transaction to which
this Supplemental Confirmation relates, by manually signing this Supplemental Confirmation or this
page hereof as evidence of agreement to such terms and providing the other information requested
herein and immediately returning an executed copy to Equity Derivatives Documentation Department,
facsimile No. 212-428-1980/83.

	 	 	 	 	 
	 	Yours sincerely,

GOLDMAN, SACHS & CO.

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

Agreed and Accepted By:

	 	 	 	 	 
	DIGITAL RIVER, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	Kevin L. Crudden 	 	 
	 	Title:  	Vice President and General Counsel 	 	 

A-3

 

	 	 	 	 	 

SCHEDULE B

TRADE NOTIFICATION

	 	 	 
	To:

	 	Digital River, Inc.

9625 West 76th Street

Eden Prairie, MN 55344
	 
	 	 
	From:

	 	Goldman, Sachs & Co.
	 
	 	 
	Subject:

	 	Collared Accelerated Stock Buyback
	 
	 	 
	Ref. No:

	 	[Insert Reference No.]
	 
	 	 
	Date:

	 	[Insert Date]
	 
	 	 
	 

The purpose of this Trade Notification is to notify you of certain terms in the Transaction entered
into between Goldman, Sachs & Co. (“GS&Co.”) and Digital River, Inc. (“Counterparty”) (together,
the “Contracting Parties”) on the Trade Date specified below.

     This Trade Notification supplements, forms part of, and is subject to the Supplemental
Confirmation dated as of [Insert Date of Supplemental Confirmation] (the “Supplemental
Confirmation”) between the Contracting Parties, as amended and supplemented from time to time. The
Supplemental Confirmation is subject to the Master Confirmation dated as of February 7, 2008 (the
“Master Confirmation”) between the Contracting Parties, as amended and supplemented from time to
time.

	 	 	 
	Hedge Completion Date:

	 	[          ]
	 
	 	 
	Calculation Period Start Date:

	 	[          ]
	 
	 	 
	Hedge Period Reference Price:

	 	USD [          ]
	 
	 	 
	Forward Price Adjustment Amount:

	 	USD [          ]
	 
	 	 
	Minimum Shares:

	 	[     ]
	 
	 	 
	Maximum Shares:

	 	[     ]

	 	 	 	 	 
	 	Yours sincerely,

GOLDMAN, SACHS & CO.

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

B-1

 

	 	 	 	 	 

ANNEX A

COUNTERPARTY SETTLEMENT PROVISIONS

          1. The following Counterparty Settlement Provisions shall apply to the extent indicated under
the Master Confirmation:

	 	 	 
	Settlement Currency:

	 	USD
	 
	 	 
	Settlement Method Election:

	 	Applicable; provided that (i) Section 7.1 of the
Equity Definitions is hereby amended by deleting the word “Physical” in the
sixth line thereof and replacing it with the words “Net Share” and (ii) the
Electing Party may make a settlement method election only if the Electing
Party represents and warrants to GS&Co. in writing on the date it notifies
GS&Co. of its election that, as of such date, the Electing Party is not
aware of any material non-public information concerning Counterparty or the
Shares and is electing the settlement method in good faith and not as part
of a plan or scheme to evade compliance with the federal securities laws.
	 
	 	 
	Electing Party:

	 	Counterparty
	 
	 	 
	Settlement Method
Election Date:

	 	The earlier of (i) the Scheduled Termination Date and (ii) the
Accelerated Termination Date, as the case may be.
	 
	 	 
	Default Settlement Method:

	 	Cash Settlement
	 
	 	 
	Forward Cash Settlement
Amount:

	 	The Number of Shares to be Delivered multiplied by the Settlement Price.
	 
	 	 
	Settlement Price:

	 	The average of the VWAP Prices for the Exchange Business Days
in the Settlement Valuation Period, subject to Valuation Disruption as
specified in the Master Confirmation.
	 
	 	 
	Settlement Valuation Period:

	 	A number of Scheduled Trading Days, not to exceed
30, selected by GS&Co. in its reasonable discretion and in a commercially
reasonable manner, beginning on the Scheduled Trading Day immediately
following the Termination Date.
	 
	 	 
	Cash Settlement:

	 	If Cash Settlement is applicable, then Buyer
shall pay to Seller the absolute value of the Forward Cash Settlement Amount
on the Cash Settlement Payment Date.
	 
	 	 
	Cash Settlement
Payment Date:

	 	The date one Settlement Cycle following the last day of the
Settlement Valuation Period.
	 
	 	 
	Net Share Settlement
Procedures:

	 	If Net Share Settlement is applicable, Net Share Settlement shall be
made in accordance with paragraphs 2 through 7 below.

1

 

          2. Net Share Settlement shall be made by delivery on the Cash Settlement Payment Date of a
number of Shares satisfying the conditions set forth in paragraph 3 below (the “Registered
Settlement Shares”), or a number of Shares not satisfying such conditions (the “Unregistered
Settlement Shares”), in either case with a value equal to the absolute value of the Forward Cash
Settlement Amount, with such Shares’ value based on the value thereof to GS&Co. (which value shall,
in the case of Unregistered Settlement Shares, take into account a commercially reasonable
illiquidity discount), in each case as determined by the Calculation Agent.

          3. Counterparty may only deliver Registered Settlement Shares pursuant to paragraph 2 above
if:

          (a) a registration statement covering public resale of the Registered Settlement Shares by
GS&Co. (the “Registration Statement”) shall have been filed with the Securities and Exchange
Commission under the Securities Act and been declared or otherwise become effective on or prior to
the date of delivery, and no stop order shall be in effect with respect to the Registration
Statement; a printed prospectus relating to the Registered Settlement Shares (including any
prospectus supplement thereto, the “Prospectus”) shall have been delivered to GS&Co., in such
quantities as GS&Co. shall reasonably have requested, on or prior to the date of delivery;

          (b) the form and content of the Registration Statement and the Prospectus (including, without
limitation, any sections describing the plan of distribution) shall be satisfactory to GS&Co.;

          (c) as of or prior to the date of delivery, GS&Co. and its agents shall have been afforded a
reasonable opportunity to conduct a due diligence investigation with respect to Counterparty
customary in scope for underwritten offerings of equity securities and the results of such
investigation are satisfactory to GS&Co., in its discretion; and

          (d) as of the date of delivery, an agreement (the “Underwriting Agreement”) shall have been
entered into with GS&Co. in connection with the public resale of the Registered Settlement Shares
by GS&Co. substantially similar to underwriting agreements customary for underwritten offerings of
equity securities, in form and substance satisfactory to GS&Co., which Underwriting Agreement shall
include, without limitation, provisions substantially similar to those contained in such
underwriting agreements relating, without limitation, to the indemnification of, and contribution
in connection with the liability of, GS&Co. and its affiliates and the provision of customary
opinions, accountants’ comfort letters and lawyers’ negative assurance letters.

          4. If Counterparty delivers Unregistered Settlement Shares pursuant to paragraph 2 above:

          (a) all Unregistered Settlement Shares shall be delivered to GS&Co. (or any affiliate of
GS&Co. designated by GS&Co.) pursuant to the exemption from the registration requirements of the
Securities Act provided by Section 4(2) thereof;

          (b) as of or prior to the date of delivery, GS&Co. and any potential purchaser of any such
shares from GS&Co. (or any affiliate of GS&Co. designated by GS&Co.) identified by GS&Co. shall be
afforded a commercially reasonable opportunity to conduct a due diligence investigation with
respect to Counterparty customary in scope for private placements of equity securities (including,
without limitation, the right to have made available to them for inspection all financial and other
records, pertinent corporate documents and other information reasonably requested by them);

          (c) as of the date of delivery, Counterparty shall enter into an agreement (a “Private
Placement Agreement”) with GS&Co. (or any affiliate of GS&Co. designated by GS&Co.) in connection
with the private placement of such shares by Counterparty to GS&Co. (or any such affiliate) and the
private resale of such shares by GS&Co. (or any such affiliate), substantially similar to private
placement purchase agreements customary for private placements of equity securities, in form and
substance commercially reasonably satisfactory to GS&Co., which Private Placement Agreement shall
include, without limitation, provisions substantially similar to those contained in such private
placement purchase agreements relating, without limitation, to the indemnification of, and
contribution in connection with the liability of, GS&Co. and its affiliates and the provision of
customary opinions,

2

 

accountants’ comfort letters and lawyers’ negative assurance letters, and shall provide for
the payment by Counterparty of all fees and expenses in connection with such resale, including all
fees and expenses of counsel for GS&Co., and shall contain representations, warranties, covenants
and agreements of Counterparty reasonably necessary or advisable to establish and maintain the
availability of an exemption from the registration requirements of the Securities Act for such
resales; and

          (d) in connection with the private placement of such shares by Counterparty to GS&Co. (or any
such affiliate) and the private resale of such shares by GS&Co. (or any such affiliate),
Counterparty shall, if so requested by GS&Co., prepare, in cooperation with GS&Co., a private
placement memorandum in form and substance reasonably satisfactory to GS&Co.

          5. GS&Co., itself or through an affiliate (the “Selling Agent”) or any underwriter(s), will
sell all, or such lesser portion as may be required hereunder, of the Registered Settlement Shares
or Unregistered Settlement Shares and any Makewhole Shares (as defined below) (together, the
“Settlement Shares”) delivered by Counterparty to GS&Co. pursuant to paragraph 6 below commencing
on the Cash Settlement Payment Date and continuing until the date on which the aggregate Net
Proceeds (as such term is defined below) of such sales, as determined by GS&Co., is equal to the
absolute value of the Forward Cash Settlement Amount (such date, the “Final Resale Date”). If the
proceeds of any sale(s) made by GS&Co., the Selling Agent or any underwriter(s), net of any fees
and commissions (including, without limitation, underwriting or placement fees) customary for
similar transactions under the circumstances at the time of the offering, together with carrying
charges and expenses incurred in connection with the offer and sale of the Shares (including, but
without limitation to, the covering of any over-allotment or short position (syndicate or
otherwise)) (the “Net Proceeds”) exceed the absolute value of the Forward Cash Settlement Amount,
GS&Co. will refund, in USD, such excess to Counterparty on the date that is three (3) Currency
Business Days following the Final Resale Date, and, if any portion of the Settlement Shares remains
unsold, GS&Co. shall return to Counterparty on that date such unsold Shares.

          6. If the Calculation Agent determines that the Net Proceeds received from the sale of the
Registered Settlement Shares or Unregistered Settlement Shares or any Makewhole Shares, if any,
pursuant to this paragraph 6 are less than the absolute value of the Forward Cash Settlement Amount
(the amount in USD by which the Net Proceeds are less than the absolute value of the Forward Cash
Settlement Amount being the “Shortfall” and the date on which such determination is made, the
“Deficiency Determination Date”), Counterparty shall on the Exchange Business Day next succeeding
the Deficiency Determination Date (the “Makewhole Notice Date”) deliver to GS&Co., through the
Selling Agent, a notice of Counterparty’s election that Counterparty shall either (i) pay an amount
in cash equal to the Shortfall on the day that is one (1) Currency Business Day after the Makewhole
Notice Date, or (ii) deliver additional Shares. If Counterparty elects to deliver to GS&Co.
additional Shares, then Counterparty shall deliver additional Shares in compliance with the terms
and conditions of paragraph 3 or paragraph 4 above, as the case may be (the “Makewhole Shares”), on
the first Clearance System Business Day which is also an Exchange Business Day following the
Makewhole Notice Date in such number as the Calculation Agent reasonably believes would have a
market value on that Exchange Business Day equal to the Shortfall. Such Makewhole Shares shall be
sold by GS&Co. in accordance with the provisions above; provided that if the sum of the Net
Proceeds from the sale of the originally delivered Shares and the Net Proceeds from the sale of any
Makewhole Shares is less than the absolute value of the Forward Cash Settlement Amount then
Counterparty shall, at its election, either make such cash payment or deliver to GS&Co. further
Makewhole Shares until such Shortfall has been reduced to zero.

          7. Notwithstanding the foregoing, in no event shall the aggregate number of Settlement Shares
and Makewhole Shares be greater than the Reserved Shares minus the amount of any Shares actually
delivered by Counterparty under any other Transaction(s) under this Master Confirmation (the result
of such calculation, the “Capped Number”). Counterparty represents and warrants (which shall be
deemed to be repeated on each day that a Transaction is outstanding) that the Capped Number is
equal to or less than the number of Shares determined according to the following formula:

3

 

A — B

	 	Where  	 	A = the number of authorized but unissued shares of the
Counterparty that are not reserved for future issuance on the date of the
determination of the Capped Number; and
	 
	 	 	 	B = the maximum number of Shares required to be delivered to third parties
if Counterparty elected Net Share Settlement of all transactions in the
Shares (other than Transactions in the Shares under this Master
Confirmation) with all third parties that are then currently outstanding and
unexercised.

          “Reserved Shares” means initially, 3,900,000 Shares. The Reserved Shares may be increased or
decreased in a Supplemental Confirmation.

4

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