Document:

Amended and Restated Trust Agreement

 Exhibit 10.3 
  
 AMENDED AND RESTATED 
  
 TRUST AGREEMENT 
  
 Among 
  
 CRESCENT BANKING COMPANY 
 as Depositor, 
  
 WILMINGTON TRUST COMPANY 
 as Property Trustee, 
  
 WILMINGTON TRUST COMPANY, 
 as Delaware Trustee, and 
  
 J. Donald Boggus, Jr. 
 Leland W. Brantley, Jr. 
 and 
 Bonnie B. Boling 
 as Administrators 
  
 Dated as of September 30, 2005 
  

  
 CRESCENT CAPITAL TRUST II 
  

 CRESCENT CAPITAL TRUST II 
  
 Certain Sections of this Trust Agreement relating to Sections 310 through 318 
 of the Trust Indenture Act of 1939: 
  

							
	 Trust Indenture Act Section

	  	 Trust Agreement Section

	 Section
	  	310	  	(a)(1)	  	8.7
	 	  	 	  	(a)(2)	  	8.7
	 	  	 	  	(a)(3)	  	8.9
	 	  	 	  	(a)(4)	  	2.7(a)(ii)
	 	  	 	  	(b)	  	8.8, 10.10(b)
	 Section
	  	311	  	(a)	  	8.13, 10.10(b)
	 	  	 	  	(b)	  	8.13, 10.10(b)
	 Section
	  	312	  	(a)	  	10.10(b)
	 	  	 	  	(b)	  	10.10(b), (f)
	 	  	 	  	(c)	  	5.7
	 Section
	  	313	  	(a)	  	8.15(a)
	 	  	 	  	(a)(4)	  	10.10(c)
	 	  	 	  	(b)	  	8.15(c), 10.10(c)
	 	  	 	  	(c)	  	10.8, 10.10(c)
	 	  	 	  	(d)	  	10.10(c)
	 Section
	  	314	  	(a)	  	8.16, 10.10(d)
	 	  	 	  	(b)	  	Not Applicable
	 	  	 	  	(c)(1)	  	8.17, 10.10(d), (e)
	 	  	 	  	(c)(2)	  	8.17, 10.10(d), (e)
	 	  	 	  	(c)(3)	  	8.17, 10.10(d), (e)
	 	  	 	  	(e)	  	8.17, 10.10(e)
	 Section
	  	315	  	(a)	  	8.1(d)
	 	  	 	  	(b)	  	8.2
	 	  	 	  	(c)	  	8.1(c)
	 	  	 	  	(d)	  	8.1(d)
	 	  	 	  	(e)	  	Not Applicable
	 Section
	  	316	  	(a)	  	Not Applicable
	 	  	 	  	(a)(1)(A)	  	Not Applicable
	 	  	 	  	(a)(1)(B)	  	Not Applicable
	 	  	 	  	(a)(2)	  	Not Applicable
	 	  	 	  	(b)	  	5.13
	 	  	 	  	(c)	  	6.7
	 Section
	  	317	  	(a)(1)	  	Not Applicable
	 	  	 	  	(a)(2)	  	8.14
	 	  	 	  	(b)	  	5.10
	 Section
	  	318	  	(a)	  	10.10(a)

  
 Note:  This reconciliation and
tie shall not, for any purpose, be deemed to be a part of the Trust Agreement. 
  

 - i - 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE I
	  	DEFINED TERMS	  	1
	 SECTION 1.1.
	  	Definitions	  	1
			
	 ARTICLE II
	  	CONTINUATION OF THE ISSUER TRUST	  	12
	 SECTION 2.1.
	  	Name	  	12
	 SECTION 2.2.
	  	Office of the Delaware Trustee; Principal Place of Business	  	12
	 SECTION 2.3.
	  	Initial Contribution of Trust Property; Organizational Expenses	  	13
	 SECTION 2.4.
	  	Issuance of the Restricted Capital Securities	  	13
	 SECTION 2.5.
	  	Issuance of the Common Securities; Subscription and Purchase of Junior Subordinated Debentures	  	13
	 SECTION 2.6.
	  	Authorization to Issue Additional Trust Securities; Authorization to Subscribe and Purchase Additional Junior Subordinated Debentures	  	14
	 SECTION 2.7.
	  	Declaration of Trust	  	14
	 SECTION 2.8.
	  	Authorization to Enter into Certain Transactions	  	15
	 SECTION 2.9.
	  	Assets of Trust	  	18
	 SECTION 2.10.
	  	Title to Trust Property	  	18
			
	 ARTICLE III
	  	PAYMENT ACCOUNT	  	18
	 SECTION 3.1.
	  	Payment Account	  	18
			
	 ARTICLE IV
	  	DISTRIBUTIONS; REDEMPTION	  	18
	 SECTION 4.1.
	  	Distributions	  	18
	 SECTION 4.2.
	  	Redemption	  	20
	 SECTION 4.3.
	  	Subordination of Common Securities	  	22
	 SECTION 4.4.
	  	Payment Procedures	  	23
	 SECTION 4.5.
	  	Tax Returns and Reports	  	23
	 SECTION 4.6.
	  	Payment of Taxes, Duties, Etc. of the Issuer Trust	  	23
	 SECTION 4.7.
	  	Payments under Indenture or Pursuant to Direct Actions	  	23
	 SECTION 4.8.
	  	Liability of the Holder of Common Securities	  	24
			
	 ARTICLE V
	  	TRUST SECURITIES CERTIFICATES	  	24
	 SECTION 5.1.
	  	Initial Ownership	  	24
	 SECTION 5.2.
	  	The Trust Securities Certificates	  	24
	 SECTION 5.3.
	  	Execution and Delivery of Trust Securities Certificates	  	25
	 SECTION 5.4.
	  	Global Capital Securities	  	25
	 SECTION 5.5.
	  	Registration of Transfer and Exchange Generally; Certain Transfers and Exchanges; Capital Securities Certificates; Securities Act Legends	  	26
	 SECTION 5.6.
	  	Mutilated, Destroyed, Lost or Stolen Trust Securities Certificates	  	30
	 SECTION 5.7.
	  	Persons Deemed Holders	  	30
	 SECTION 5.8.
	  	Access to List of Holders’ Names and Addresses	  	30
	 SECTION 5.9.
	  	Maintenance of Office or Agency	  	30
	 SECTION 5.10.
	  	Appointment of Paying Agent	  	31
	 SECTION 5.11.
	  	Ownership of Common Securities by Depositor	  	31
	 SECTION 5.12.
	  	Notices to Clearing Agency	  	32

  

 - ii - 

					
	 SECTION 5.13.
	  	Rights of Holders	  	32
			
	 ARTICLE VI
	  	ACTS OF HOLDERS; MEETINGS; VOTING	  	34
	 SECTION 6.1.
	  	Limitations on Holders’ Voting Rights	  	34
	 SECTION 6.2.
	  	Notice of Meetings	  	35
	 SECTION 6.3.
	  	Meetings of Holders	  	35
	 SECTION 6.4.
	  	Voting Rights	  	36
	 SECTION 6.5.
	  	Proxies, etc.	  	36
	 SECTION 6.6.
	  	Holder Action by Written Consent	  	36
	 SECTION 6.7.
	  	Record Date for Voting and Other Purposes	  	36
	 SECTION 6.8.
	  	Acts of Holders	  	37
	 SECTION 6.9.
	  	Inspection of Records	  	38
			
	 ARTICLE VII
	  	REPRESENTATIONS AND WARRANTIES	  	38
	 SECTION 7.1.
	  	Representations and Warranties of the Property Trustee and the Delaware Trustee	  	38
	 SECTION 7.2.
	  	Representations and Warranties of Depositor	  	39
			
	 ARTICLE VIII
	  	THE ISSUER TRUSTEES; THE ADMINISTRATORS	  	40
	 SECTION 8.1.
	  	Certain Duties and Responsibilities	  	40
	 SECTION 8.2.
	  	Certain Notices	  	42
	 SECTION 8.3.
	  	Certain Rights of Property Trustee	  	42
	 SECTION 8.4.
	  	Not Responsible for Recitals or Issuance of Securities	  	44
	 SECTION 8.5.
	  	May Hold Securities	  	44
	 SECTION 8.6.
	  	Compensation; Indemnity; Fees	  	44
	 SECTION 8.7.
	  	Corporate Property Trustee Required; Eligibility of Trustees and Administrators	  	45
	 SECTION 8.8.
	  	Conflicting Interests	  	46
	 SECTION 8.9.
	  	Co-Trustees and Separate Trustee	  	46
	 SECTION 8.10.
	  	Resignation and Removal; Appointment of Successor	  	47
	 SECTION 8.11.
	  	Acceptance of Appointment by Successor	  	49
	 SECTION 8.12.
	  	Merger, Conversion, Consolidation or Succession to Business	  	49
	 SECTION 8.13.
	  	Preferential Collection of Claims Against Depositor or Issuer Trust	  	50
	 SECTION 8.14.
	  	Trustee May File Proofs of Claim	  	50
	 SECTION 8.15.
	  	Reports by Property Trustee	  	50
	 SECTION 8.16.
	  	Reports to the Property Trustee	  	51
	 SECTION 8.17.
	  	Evidence of Compliance with Conditions Precedent	  	51
	 SECTION 8.18.
	  	Number of Issuer Trustees	  	51
	 SECTION 8.19.
	  	Delegation of Power	  	52
	 SECTION 8.20.
	  	Appointment of Administrators	  	52
			
	 ARTICLE IX
	  	DISSOLUTION, LIQUIDATION AND MERGER	  	53
	 SECTION 9.1.
	  	Dissolution Upon Expiration Date	  	53
	 SECTION 9.2.
	  	Early Dissolution	  	53
	 SECTION 9.3.
	  	Termination	  	53
	 SECTION 9.4.
	  	Liquidation	  	54

  

 - iii - 

					
	 SECTION 9.5.
	  	Mergers, Consolidations, Amalgamations or Replacements of the Issuer Trust	  	55
			
	 ARTICLE X
	  	MISCELLANEOUS PROVISIONS	  	56
	 SECTION 10.1.
	  	Limitation of Rights of Holders	  	56
	 SECTION 10.2.
	  	Amendment	  	56
	 SECTION 10.3.
	  	Separability	  	57
	 SECTION 10.4.
	  	Governing Law	  	58
	 SECTION 10.5.
	  	Payments Due on Non-Business Day	  	58
	 SECTION 10.6.
	  	Successors	  	59
	 SECTION 10.7.
	  	Headings	  	59
	 SECTION 10.8.
	  	Reports, Notices and Demands	  	59
	 SECTION 10.9.
	  	Agreement Not to Petition	  	60
	 SECTION 10.10.
	  	Trust Indenture Act; Conflict with Trust Indenture Act	  	60
	 SECTION 10.11.
	  	Acceptance of Terms of Trust Agreement, Guarantee and Indenture	  	61
			
	 Exhibit A.
	  	Certificate of Trust	  	A-1
			
	 Exhibit B.
	  	Form of Restricted Securities Certificate	  	B-1
			
	 Exhibit C.
	  	Form of Common Securities Certificate	  	C-1
			
	 Exhibit D.
	  	Form of Capital Securities Certificate	  	D-1
			
	 Exhibit E.
	  	Form of Placement Agreement	  	E-1

  

 - iv - 

 AMENDED AND RESTATED TRUST AGREEMENT 
  
 THIS AMENDED AND RESTATED TRUST AGREEMENT, dated as of September 30, 2005, is by and among (i) Crescent Banking
Company, a Georgia corporation (including any successors or assigns, the “Depositor”), (ii) Wilmington Trust Company, a Delaware banking corporation, as property trustee (in such capacity, the “Property
Trustee” and, in its separate corporate capacity and not in its capacity as Property Trustee or Delaware Trustee, the “Bank”), (iii) Wilmington Trust Company, a Delaware banking corporation, as Delaware trustee (in
such capacity, the “Delaware Trustee”) (the Property Trustee and the Delaware Trustee are referred to collectively herein as the “Issuer Trustees”), (iv) the Administrators, as hereinafter defined, and
(v) the several Holders, as hereinafter defined. 
  
 WITNESSETH 
  
 WHEREAS, the Depositor and the
Delaware Trustee have heretofore duly declared and established a statutory trust pursuant to the Delaware Statutory Trust Act by entering into a certain Trust Agreement, dated as of August 31, 2005 (the “Original Trust
Agreement”), and by the execution and filing by the Delaware Trustee with the Secretary of State of the State of Delaware of the Certificate of Trust, filed on August 31, 2005 (the “Certificate of Trust”), attached as
Exhibit A; and 
  
 WHEREAS, the Depositor and the Delaware
Trustee desire to amend and restate the Original Trust Agreement in its entirety as set forth herein to provide for, among other things, (i) the issuance of the Common Securities by the Issuer Trust to the Depositor, (ii) the issuance and
sale of the Capital Securities by the Issuer Trust pursuant to the Placement Agreement, (iii) the acquisition by the Issuer Trust from the Depositor of all of the right, title and interest in the Junior Subordinated Debentures, (iv) the
appointment of the Administrators and (v) the addition of the Property Trustee as a party to this Trust Agreement. 
  
 NOW THEREFORE, in consideration of the agreements and obligations set forth herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, each party, intending to be legally bound, for the benefit of the other parties and for the benefit of the Holders, hereby amends and restates the Original Trust Agreement in its entirety and agrees, as
follows: 
  
 ARTICLE I 
  
 DEFINED TERMS 
  
 SECTION 1.1. Definitions. 
  
 For all purposes of this Trust Agreement, except as otherwise expressly
provided or unless the context otherwise requires: 
  
 (1) The
terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular; 
  

 - 1 - 

 (2) All other terms used herein that are defined in the Trust Indenture Act, either directly or by
reference therein, have the meanings assigned to them therein; 
  
 (3) The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation”; 
  
 (4) All accounting terms used but not defined herein have the meanings assigned to them in accordance with United States
generally accepted accounting principles as in effect at the time of determination; 
  
 (5) Unless the context otherwise requires, any reference to an “Article” or a “Section” refers to an Article or a Section, as the case may be, of this Trust Agreement; 
  
 (6) The words “herein,” “hereof” and
“hereunder” and other words of similar import refer to this Trust Agreement as a whole and not to any particular Article, Section or other subdivision; and 
  
 (7) All references to the date the Capital Securities were originally issued shall refer to the date hereof. 
  
 “Act” has the meaning specified in Section 6.8.

  
 “Additional Amounts” means, with respect to
Trust Securities of a given Liquidation Amount and/or a given period, the amount of any Additional Interest (as defined in the Indenture) paid by the Depositor on a Like Amount of Junior Subordinated Debentures for such period. 
  
 “Additional Sums” has the meaning specified in
Section 10.6 of the Indenture. 
  
 “Administrators” means each Person appointed in accordance with Section 8.20 solely in such Person’s capacity as Administrator of the Issuer Trust continued hereunder and not in such Person’s individual
capacity, or any successor Administrator appointed as herein provided; with the initial Administrators being J. Donald Boggus, Jr., Leland W. Brantley, Jr. and Bonnie B. Boling. 
  
 “Affiliate” means with respect to any specified Person, any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control” means the power to direct the management and policies of such Person, directly or indirectly, whether
through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
  
 “Applicable Procedures” mean, with respect to any transfer or transaction involving a Global Capital
Security or beneficial interest therein, the rules and procedures of the 

  

 - 2 - 

 
Depositary for such Capital Security, in each case to the extent applicable to such transaction and as in effect from time to time. 
  
 “Bank” has the meaning specified in the preamble to this
Trust Agreement. 
  
 “Bankruptcy Event” means,
with respect to any Person: 
  
 (1) the entry of a decree or order
by a court having jurisdiction in the premises judging such Person a bankrupt or insolvent, or approving as properly filed a petition seeking reorganization, arrangement, adjudication or composition of or in respect of such Person under any
applicable Federal or state bankruptcy, insolvency, reorganization or other similar law, or appointing a receiver, conservator, liquidator, assignee, trustee, sequestrator (or other similar official) of such Person or of any substantial part of its
property or ordering the winding-up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of 60 consecutive days; or 
  
 (2) the institution by such Person of proceedings to be adjudicated a bankrupt or insolvent, or the consent by it to the
institution of bankruptcy or insolvency proceedings against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under any applicable Federal or state bankruptcy, insolvency, reorganization or other similar
law, or the consent by it to the filing of any such petition or to the appointment of a receiver, conservator, liquidator, assignee, trustee, sequestrator (or similar official) of such Person or of any substantial part of its property or the making
by it of an assignment for the benefit of creditors, or the admission by it in writing of its inability to pay its debts generally as they become due and its willingness to be adjudicated a bankrupt, or the taking of corporate action by such Person
in furtherance of any such action. 
  
 “Bankruptcy
Laws” has the meaning specified in Section 10.9. 
  
 “Board of Directors” means the board of directors of the Depositor or the Executive Committee of the board of directors of the Depositor (or any other committee of the board of directors of the Depositor performing similar
functions) or a committee designated by the board of directors of the Depositor (or any such committee), comprised of two or more members of the board of directors of the Depositor or officers of the Depositor, or both. 
  
 “Board Resolution” means a copy of a resolution certified by
the Secretary or an Assistant Secretary of the Depositor to have been duly adopted by the Depositor’s Board of Directors, or such committee of the Board of Directors or officers of the Depositor to which authority to act on behalf of the Board
of Directors has been delegated, and to be in full force and effect on the date of such certification, and delivered to the Issuer Trustees. 
  
 “Business Day” means a day other than (a) a Saturday or Sunday, (b) a day on which banking institutions in the City of New
York, New York or the City of Wilmington, Delaware are authorized or required by law or executive order to remain closed or (c) a day on which either the Property Trustee’s corporate trust office or the Indenture Trustee’s corporate
trust office is closed for business. 
  

 - 3 - 

 “Capital Securities Certificate” means a certificate evidencing ownership of Capital
Securities, substantially in the form attached as Exhibit D, and shall, unless specified otherwise herein, include a Restricted Securities Certificate, substantially in the form attached hereto as Exhibit B. The Capital Securities
Certificate shall be issued initially with a Restricted Capital Securities Legend, which shall remain on such certificate until the Depositor and the Issuer Trust receive an Opinion of Counsel that such legend can be removed consistent with the
Securities Act. 
  
 “Capital Security” means a
preferred undivided beneficial interest in the assets of the Issuer Trust, having a Liquidation Amount of $50,000 or an integral multiple in excess of such amount and having the rights provided therefor in this Trust Agreement, including the right
to receive Distributions and a Liquidation Distribution as provided herein. 
  
 “Capital Treatment Event” means, in respect of the Issuer Trust, the receipt by the Property Trustee of an Opinion of Counsel, experienced in such matters and who may be counsel to the Depositor, and
determination by the Depositor that, as a result of the occurrence of any amendment to, or change (including any announced prospective change) in, the laws (or any rules or regulations thereunder) of the United States or any political subdivision
thereof or therein, or as a result of any official or administrative pronouncement or action (including any action taken in connection with a regulatory examination or in connection with or as a result of any change in regulatory policy) or judicial
decision interpreting or applying such laws or regulations, which amendment or change is effective or such pronouncement, action or decision is announced on or after the date of the issuance of the Capital Securities of the Issuer Trust, there is
more than an insubstantial risk that the Depositor will not be entitled to treat an amount equal to the Liquidation Amount of such Capital Securities as “Tier 1 Capital” (or the then equivalent thereof) for purposes of the risk-based
capital adequacy guidelines of the Board of Governors of the Federal Reserve System, as then in effect and applicable to the Depositor. 
  
 “Cede” means Cede & Co., as the nominee of the Depositary. 
  
 “Certificate of Trust” has the meaning specified in the preamble to this Trust Agreement. 
  
 “Clearing Agency” means an organization registered as a
“clearing agency” pursuant to Section 17A of the Exchange Act. The Depositary shall be the initial Clearing Agency. 
  
 “Clearing Agency Participant” means a broker, dealer, bank, other financial institution or other Person for whom from time to time a
Clearing Agency effects book-entry transfers and pledges of securities deposited with the Clearing Agency. 
  
 “Closing” and “Closing Date” have the respective meanings specified in the Placement Agreement. 
  
 “Code” means the Internal Revenue Code of 1986, as amended.

  

 - 4 - 

 “Commission” means the United States Securities and Exchange Commission, or, if at any
time after the execution of this instrument such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties at such time. 
  
 “Common Securities Certificate” means a certificate
evidencing ownership of Common Securities, substantially in the form attached as Exhibit C. 
  
 “Common Securities Purchase Agreement” means the Common Securities Purchase Agreement, dated of even date herewith, between the Issuer
Trust and the Depositor, as the same may be amended from time to time. 
  
 “Common Security” means an undivided beneficial interest in the assets of the Issuer Trust, having a Liquidation Amount of $1,000 and integral multiples in excess thereof and having the rights provided therefor in this
Trust Agreement, including the right to receive Distributions and a Liquidation Distribution as provided herein. 
  
 “Corporate Trust Office” means the principal office of the Property Trustee located in the City of Wilmington, Delaware, which at the
time of the execution of this Trust Agreement is located at 1100 North Market Street, Rodney Square North, Wilmington, Delaware 19890-0001, Attention: Corporate Trust Administration. 
  
 “Debenture Event of Default” means an “Event of Default” as defined in the Indenture. 

 
 “Debenture Purchase Agreement” means the Junior
Subordinated Debenture Purchase Agreement, dated of even date herewith, between the Depositor and the Issuer Trust, as the same may be amended from time to time. 
  
 “Debenture Redemption Date” means, with respect to any Junior Subordinated Debentures to be redeemed under
the Indenture, the date fixed for redemption of such Debentures under the Indenture. 
  
 “Delaware Statutory Trust Act” means Chapter 38 of Title 12 of the Delaware Code, 12 Del. C. § 3801, et seq., as it may be amended from time to time. 
  
 “Delaware Trustee” means the corporation identified as the
“Delaware Trustee” in the preamble to this Trust Agreement solely in its capacity as Delaware Trustee of the Issuer Trust and not in its individual capacity, or its successor in interest in such capacity, or any successor trustee appointed
as herein provided. 
  
 “Depositary” means The
Depository Trust Company or any successor thereto. 
  
 “Depositor” has the meaning specified in the preamble to this Trust Agreement. 
  

 - 5 - 

 “Direct Action” has the meaning specified in Section 5.13(c). 
  
 “Distribution Date” has the meaning specified in
Section 4.1(a). 
  
 “Distributions” means
amounts payable in respect of the Trust Securities as provided in Section 4.1. 
  
 “Early Termination Event” has the meaning specified in Section 9.2. 
  
 “Event of Default” means any one of the following events (whatever the reason for such Event of Default and whether it shall be voluntary
or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body): 
  
 (1) the occurrence of a Debenture Event of Default; or 
  
 (2) default by the Issuer Trust in the payment of any Distribution when it becomes due and payable, and continuation of such
default for a period of 30 days; or 
  
 (3) default by the
Issuer Trust in the payment of any Redemption Price of any Trust Security when it becomes due and payable; or 
  
 (4) default in the performance, or breach, in any material respect, of any covenant or warranty of the Issuer Trustees in this Trust Agreement (other than
a covenant or warranty a default in the performance of which or the breach of which is dealt with in clause (2) or (3) above) and continuation of such default or breach for a period of 60 days after there has been given, by registered
or certified mail, to the Issuer Trustees and the Depositor by the Holders of at least 25% in aggregate Liquidation Amount of the Outstanding Capital Securities, a written notice specifying such default or breach and requiring it to be remedied and
stating that such notice is a “Notice of Default” hereunder; or 
  
 (5) the occurrence of any Bankruptcy Event with respect to the Property Trustee or all or substantially all of its property if a successor Property Trustee has not been appointed within a period of 90 days
thereof. 
  
 “Exchange Act” shall mean the
Securities Exchange Act of 1934, as amended, and any successor statute thereto, as amended from time to time. 
  
 “Expiration Date” has the meaning specified in Section 9.1. 
  
 “Global Capital Securities Certificate” means a Capital Securities Certificate or Restricted Securities
Certificate, as the case may be, evidencing ownership of Capital Securities, the ownership and transfers of which shall be made through book entries by a Clearing Agency as described in Section 5.4. 
  

 - 6 - 

 “Global Capital Security” means those Capital Securities evidenced by the Global Capital
Securities Certificate. 
  
 “Guarantee” means the
Guarantee Agreement executed and delivered by the Depositor and the Guarantee Trustee, contemporaneously with the execution and delivery of this Trust Agreement, for the benefit of the Holders of the Capital Securities, as amended from time to time.

  
 “Guarantee Trustee” means Wilmington Trust
Company, solely in its capacity as the trustee that holds the Guarantee for the benefit of the Holders and not in its individual capacity, or its successor in interest in such capacity, or any successor trustee appointed as herein provided.

  
 “Holder” means a Person in whose name a Trust
Security or Trust Securities is registered in the Securities Register; any such Person shall be deemed to be a beneficial owner within the meaning of the Delaware Statutory Trust Act. 
  
 “Indemnified Person” has the meaning provided in Section 8.6. 
  
 “Indenture” means the Junior Subordinated Indenture, dated
of even date herewith, between the Depositor and the Indenture Trustee (as amended or supplemented from time to time) relating to the issuance of the Junior Subordinated Debentures. 
  
 “Indenture Trustee” means Wilmington Trust Company, a Delaware banking corporation and any successor.

  
 “Investment Company Act” means the Investment
Company Act of 1940, as amended. 
  
 “Investment Company
Event” means the receipt by the Issuer Trust of an Opinion of Counsel experienced in such matters to the effect that, as a result of the occurrence of a change in law or regulation or a written change (including any announced prospective
change) in interpretation or application of law or regulation by any legislative body, court, governmental agency or regulatory authority, there is more than an insubstantial risk that the Issuer Trust is or will be considered an “investment
company” that is required to be registered under the Investment Company Act, which change or prospective change becomes effective or would become effective, as the case may be, on or after the date of the issuance of the Capital Securities.

  
 “Issuer Trust” means Crescent Capital Trust
II, a Delaware statutory trust created under the Delaware Statutory Trust Act. 
  
 “Issuer Trustees” has the meaning specified in the preamble to this Trust Agreement. 
  

 - 7 - 

 “Junior Subordinated Debentures” means the Depositor’s Floating Rate Junior
Subordinated Deferrable Interest Debentures, due September 30, 2035, issued pursuant to the Indenture. 
  
 “Lien” means any lien, pledge, charge, encumbrance, mortgage, deed of trust, adverse ownership interest, hypothecation, assignment,
security interest or preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever. 
  
 “Like Amount” means (a) with respect to a redemption of Trust Securities, Trust Securities having a Liquidation Amount equal to that
portion of the principal amount of Junior Subordinated Debentures to be contemporaneously redeemed in accordance with the Indenture, allocated to the Common Securities and to the Capital Securities pro rata based upon the relative Liquidation
Amounts of such classes and (b) with respect to a distribution of Junior Subordinated Debentures to Holders of Trust Securities in connection with a dissolution or liquidation of the Issuer Trust, Junior Subordinated Debentures having a
principal amount equal to the Liquidation Amount of the Trust Securities of the Holder to whom such Junior Subordinated Debentures are distributed. 
  
 “Liquidation Amount” means the stated amount of $50,000.00 per Capital Security and $1,000.00 per Common Security. 
  
 “Liquidation Date” means the date on which Junior
Subordinated Debentures are to be distributed to Holders of Trust Securities in connection with a dissolution and liquidation of the Issuer Trust pursuant to Section 9.4. 
  
 “Liquidation Distribution” has the meaning specified in Section 9.4(d). 
  
 “Majority in Liquidation Amount of the Capital Securities”
or “Majority in Liquidation Amount of the Common Securities” means, except as provided by the Trust Indenture Act, Capital Securities or Common Securities, as the case may be, representing more than 50% of the aggregate Liquidation
Amount of all then Outstanding Capital Securities or Common Securities, as the case may be. 
  
 “Officers’ Certificate” means a certificate signed by the Chairman of the Board, Vice Chairman of the Board, Chief Executive Officer, President or an Executive Vice President, a Senior Vice
President or Vice President, and by the Treasurer, an Assistant Treasurer, the Chief Financial Officer, the Secretary or an Assistant Secretary, of the Depositor, and delivered to the party provided herein. Any Officers’ Certificate delivered
with respect to compliance with a condition or covenant provided for in this Trust Agreement shall include: 
  
 (1) a statement by each officer signing the Officers’ Certificate that such officer has read the covenant or condition and the definitions relating
thereto; 
  
 (2) a brief statement of the nature and scope of the
examination or investigation undertaken by such officer in rendering the Officers’ Certificate; 
  

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 (3) a statement that such officer has made such examination or investigation as, in such officer’s
opinion, is necessary to enable such officer to express an informed opinion as to whether or not such covenant or condition has been complied with; and 
  
 (4) a statement as to whether, in the opinion of each such officer, such condition or covenant has been complied with. 
  
 “Opinion of Counsel” means a written opinion of counsel, who
may be counsel for or an employee of the Depositor or any Affiliate of the Depositor. 
  
 “Original Trust Agreement” has the meaning specified in the preamble to this Trust Agreement. 
  
 “Outstanding,” with respect to Trust Securities, means, as of the date of determination, all Trust Securities theretofore executed and
delivered under this Trust Agreement, except: 
  
 (1) Trust
Securities theretofore canceled by the Property Trustee or delivered to the Property Trustee for cancellation; 
  
 (2) Trust Securities for whose payment or redemption cash in the necessary amount has been theretofore deposited with the Property Trustee or any Paying
Agent for the Holders of such Capital Securities, provided that if such Trust Securities are to be redeemed, notice of such redemption has been duly given pursuant to this Trust Agreement; and 
  
 (3) Trust Securities that have been paid or for which other Trust Securities
have been executed and delivered in exchange therefor or in lieu thereof pursuant to Sections 5.4, 5.5 and 5.6; provided, however, that in determining whether the Holders of the requisite Liquidation Amount of the Outstanding Capital
Securities have given any request, demand, authorization, direction, notice, consent or waiver hereunder, Capital Securities owned by the Depositor, any Issuer Trustee, any Administrator or any Affiliate of the Depositor, shall be disregarded and
deemed not to be Outstanding, except that (a) in determining whether any Issuer Trustee or any Administrator shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Capital
Securities that such Issuer Trustee or such Administrator, as the case may be, knows to be so owned shall be so disregarded and (b) the foregoing shall not apply at any time when all of the Outstanding Capital Securities are owned by the
Depositor, one or more of the Issuer Trustees, one or more of the Administrators and/or any such Affiliate. Capital Securities so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Administrators the pledgee’s right so to act with respect to such Capital Securities and that the pledgee is not the Depositor or any Affiliate of the Depositor. 
  
 “Owner” means each Person who is the beneficial owner of Global Capital Securities as reflected in the
records of the Clearing Agency or, if a Clearing Agency Participant is not the Owner, then as reflected in the records of a Person maintaining an account with such Clearing Agency (directly or indirectly), in accordance with the rules of such
Clearing Agency. 
  

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 “Paying Agent” means any paying agent or co-paying agent appointed pursuant to
Section 5.10 and shall initially be the Property Trustee. 
  
 “Payment Account” means a segregated non-interest-bearing corporate trust account maintained with the Property Trustee in its trust department for the benefit of the Holders in which all amounts paid in respect of the
Junior Subordinated Debentures will be held and from which the Property Trustee, through the Paying Agent, shall make payments to the Holders in accordance with Sections 4.1, 4.2 and 9.4. 
  
 “Person” means a legal person, including any individual, corporation, estate, partnership, joint venture,
association, joint stock company, company, limited liability company, trust, unincorporated organization or government or any agency or political subdivision thereof, or any other entity of whatever nature. 
  
 “Placement Agents” means The Bankers Bank, a Georgia banking
corporation, and BankersBanc Capital Corporation, a Georgia corporation. 
  
 “Placement Agreement” means the Placement Agreement among the Depositor, the Issuer Trust and the Placement Agents. 
  
 “Property Trustee” means the Person identified as the “Property Trustee” in the preamble to this
Trust Agreement solely in its capacity as Property Trustee of the Issuer Trust and not in its individual capacity, or its successor in interest in such capacity, or any successor property trustee appointed as herein provided. 
  
 “Purchase Agreement” means, collectively, all purchase
agreements executed by or on behalf of the Depositor, the Issuer Trust, and the Owners. 
  
 “Redemption Date” means, with respect to any Trust Security to be redeemed, the date fixed for such redemption by or pursuant to this Trust Agreement; provided that each Debenture Redemption
Date and the stated maturity of the Junior Subordinated Debentures shall be a Redemption Date for a Like Amount of Trust Securities, including but not limited to any date of redemption pursuant to the occurrence of any Special Event. 
  
 “Redemption Price” means a price equal to the Liquidation
Amount, together with accumulated Distributions to, but excluding, the date fixed for redemption. 
  
 “Relevant Trustee” has the meaning specified in Section 8.10. 
  
 “Responsible Officer” when used with respect to the Property Trustee means any officer assigned to the
Corporate Trust Office, including any managing director, vice president, principal, assistant vice president, assistant treasurer, assistant secretary or any other officer of the Property Trustee customarily performing functions similar to those
performed by any of the above designated officers and having direct responsibility for the administration of the Indenture, 

  

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and also, with respect to a particular matter, any other officer to whom such matter is referred because of such officer’s knowledge of and familiarity
with the particular subject. 
  
 “Restricted Capital
Securities” means all Capital Securities, including those represented by a Capital Securities Certificate, that are required pursuant to Section 5.5(c) to bear a Restricted Capital Securities Legend. Such term includes the Global
Capital Securities Certificate. 
  
 “Restricted Capital
Securities Legend” means a legend substantially in the form of the legend required in the form of a Capital Securities Certificate set forth in Exhibit D to be placed upon a Restricted Capital Security. 
  
 “Restricted Securities Certificate” means a certificate
substantially in the form set forth in Exhibit B. 
  
 “Securities Act” means the Securities Act of 1933, as amended, and any successor statute thereto, in each case as amended from time to time. 
  
 “Senior Indebtedness” has the meaning specified in the Indenture. 
  
 “Securities Register” and “Securities
Registrar” have the respective meanings specified in Section 5.5. 
  
 “Special Event” means any Tax Event, Capital Treatment Event or Investment Company Event. 
  
 “Successor Capital Securities Certificate” of any particular Capital Securities Certificate means every Capital Securities Certificate
issued after, and evidencing all or a portion of the same beneficial interest in the Issuer Trust as that evidenced by, such particular Capital Securities Certificate; and, for the purposes of this definition, any Capital Securities Certificate
executed and delivered under Section 5.6 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Capital Securities Certificate shall be deemed to evidence the same beneficial interest in the Issuer Trust as the mutilated,
destroyed, lost or stolen Capital Securities Certificate. 
  
 “Successor Capital Securities” has the meaning specified in Section 9.5. 
  
 “Tax Event” means the receipt by the Issuer Trust of an Opinion of Counsel experienced in such matters to the effect that, as a result of
any amendment to, or change (including any announced prospective change) in, the laws (or any regulations thereunder) of the United States or any political subdivision or taxing authority thereof or therein, or as a result of any official or
administrative pronouncement or action or judicial decision interpreting or applying such laws or regulations, which amendment or change is effective or which pronouncement, action or decision is announced on or after the date of issuance of the
Capital Securities (including, without limitation, any of the foregoing arising with respect to, or resulting from, any proceeding or other action commencing on or before such date), there is more than an insubstantial risk that (i) the Issuer
Trust is, or will be within 90 days of the delivery of such 

  

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Opinion of Counsel, subject to United States federal income tax with respect to income received or accrued on the Junior Subordinated Debentures,
(ii) interest payable by the Depositor on the Junior Subordinated Debentures is not, or within 90 days of the delivery of such Opinion of Counsel will not be, deductible by the Depositor, in whole or in part, for United States federal
income tax purposes, or (iii) the Issuer Trust is, or will be within 90 days of the delivery of such Opinion of Counsel, subject to more than a de minimis amount of other taxes, duties or other governmental charges. 
  
 “Trust Agreement” means this Amended and Restated Trust
Agreement, as the same may be modified, amended or supplemented in accordance with the applicable provisions hereof, including (i) all exhibits hereto, and (ii) for all purposes of this Amended and Restated Trust Agreement any such
modification, amendment or supplement, the provisions of the Trust Indenture Act that are deemed to be a part of and govern this Amended and Restated Trust Agreement and any modification, amendment or supplement, respectively. 
  
 “Trust Indenture Act” means the Trust Indenture Act of 1939
or any successor statute, in each case as amended from time to time. 
  
 “Trust Property” means (a) the Junior Subordinated Debentures, (b) any cash on deposit in, or owing to, the Payment Account, (c) all proceeds and rights in respect of the foregoing and (d) any other
property and assets for the time being held or deemed to be held by the Property Trustee pursuant to the trusts of this Trust Agreement. 
  
 “Trust Securities Certificate” means any one of the Common Securities Certificates or the Capital Securities Certificates. 
  
 “Trust Security” means any one of the Common Securities or
the Capital Securities. 
  
 ARTICLE II 
  
 CONTINUATION OF THE ISSUER TRUST 
  
 SECTION 2.1. Name. 
  
 The Issuer Trust continued hereby shall be known as “Crescent Capital
Trust II”, as such name may be modified from time to time by the Administrators following written notice to the Holders of Trust Securities and the Issuer Trustees, in which name the Administrators and the Issuer Trustees may engage in the
transactions contemplated hereby, make and execute contracts and other instruments on behalf of the Issuer Trust and sue and be sued. 
  
 SECTION 2.2. Office of the Delaware Trustee; Principal Place of Business. 
  
 The address of the Delaware Trustee in the State of Delaware is Wilmington Trust Company, 1100 North Market Street, Rodney
Square North, Wilmington, Delaware 19890-0001, Attention: Corporate Trust Administration, or such other address in the State of Delaware as the Delaware Trustee may designate by written notice to the Holders and the Depositor. The 

  

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principal executive office of the Issuer Trust is in care of Crescent Banking Company, 7 Caring Way, Jasper, Georgia, 30143, Attention:
Mr. Leland W. Brantley, Jr. 
  
 SECTION 2.3. Initial
Contribution of Trust Property; Organizational Expenses. 
  
 The Property Trustee acknowledges receipt in trust from the Depositor in connection with the Original Trust Agreement of the sum of $10.00, which constitutes the initial Trust Property. The Depositor shall pay all organizational expenses of
the Issuer Trust as they arise or shall, upon request of any Issuer Trustee, promptly reimburse such Issuer Trustee for any such expenses paid by such Issuer Trustee. The Depositor shall make no claim upon the Trust Property for the payment of such
expenses. 
  
 SECTION 2.4. Issuance of the Restricted Capital
Securities. 
  
 The Depositor, the Issuer Trust, and
the Placement Agents executed and delivered the Placement Agreement pursuant to the Original Trust Agreement. Contemporaneously with the execution and delivery of this Trust Agreement, an Administrator, on behalf of the Issuer Trust, shall manually
execute in accordance with Section 5.3 and the Property Trustee shall authenticate in accordance with Section 5.3 and deliver to the Clearing Agency or its custodian, a Global Capital Securities Certificate, registered in the name of
Cede & Co., in an aggregate amount of 160 Capital Securities having an aggregate Liquidation Amount of $8,000,000.00, against receipt of the aggregate purchase price of such Capital Securities of $8,000,000.00 by the Property Trustee.

  
 SECTION 2.5. Issuance of the Common Securities;
Subscription and Purchase of Junior Subordinated Debentures. 
  
 Contemporaneously with the execution and delivery of this Trust Agreement, an Administrator, on behalf of the Issuer Trust, shall execute in accordance with Section 5.3 and the Property Trustee shall authenticate and shall deliver to
the Depositor, Common Securities Certificates, registered in the name of the Depositor, having an aggregate Liquidation Amount of $248,000 against receipt of the aggregate purchase price of such Common Securities of $248,000 by the Property Trustee.
Contemporaneously therewith, an Administrator, on behalf of the Issuer Trust, shall subscribe for and purchase from the Depositor the Junior Subordinated Debentures, registered in the name of Wilmington Trust Company, not in its individual capacity,
but solely as Property Trustee for the Issuer Trust, and having an aggregate principal amount equal to $8,248,000, and, in satisfaction of the purchase price for such Junior Subordinated Debentures, the Property Trustee, on behalf of the Issuer
Trust, shall deliver to the Depositor the sum of $8,248,000 (being the sum of the amounts delivered to the Property Trustee pursuant to (i) the second sentence of Section 2.4, and (ii) the first sentence of this Section 2.5) and
receive on behalf of the Issuer Trust the Junior Subordinated Debentures. 
  

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 SECTION 2.6. Authorization to Issue Additional Trust Securities; Authorization to Subscribe and
Purchase Additional Junior Subordinated Debentures. 
  
 During the period ending 90 days following the date of the Confidential Offering Memorandum, dated as of September 22, 2005, the Administrators, acting unanimously on behalf of the Issuer Trust, at their discretion, may cause the
Issuer Trust to issue additional Capital Securities and Common Securities on the same terms and in the manner and relative proportions set forth in Sections 2.4 and 2.5; provided, however, that any such additional issuance of Trust Securities
shall occur contemporaneously with the issuance by the Depositor of additional Junior Subordinated Debentures on the same terms and in the manner set forth in Section 2.5, which shall be subscribed for and purchased by an Administrator on
behalf of the Issuer Trust, having an aggregate Liquidation Amount equal to the Aggregate Liquidation Amount of the additional Trust Securities to be issued. The amount of any issuance of additional Trust Securities by the Issuer Trust, or of
additional Junior Subordinated Debentures by the Depositor, is unlimited. 
  
 SECTION 2.7. Declaration of Trust. 
  
 The exclusive purposes and functions of the Issuer Trust are to (a) issue and sell Trust Securities and use the proceeds from such sale to acquire the Junior Subordinated Debentures, and (b) engage in only
those other activities necessary, convenient or incidental thereto. The Depositor hereby appoints the Issuer Trustees as trustees of the Issuer Trust, to have all the rights, powers and duties to the extent set forth herein, and the Issuer Trustees
hereby accept such appointment. The Property Trustee hereby declares that it will hold the Trust Property in trust upon and subject to the conditions set forth herein for the benefit of the Issuer Trust and the Holders. The Depositor hereby appoints
the Administrators, with such Administrators having all rights, powers and duties set forth herein with respect to accomplishing the purposes of the Issuer Trust, and the Administrators hereby accept such appointment; provided, however, that
it is the intent of the parties hereto that such Administrators shall not be trustees or, to the fullest extent permitted by law, fiduciaries with respect to the Issuer Trust and this Trust Agreement shall be construed in a manner consistent with
such intent. The Property Trustee shall have the right and power (but shall not be obligated) to perform those duties assigned to the Administrators. The Delaware Trustee, in such capacity, shall not be entitled to exercise any powers, nor shall the
Delaware Trustee, in such capacity, have any of the duties and responsibilities, of the Property Trustee or the Administrators set forth herein. The Delaware Trustee, in such capacity, shall be one of the trustees of the Issuer Trust for the sole
and limited purpose of fulfilling the requirements of Section 3807 of the Delaware Statutory Trust Act and for taking such actions as are required to be taken by a Delaware trustee under the Delaware Statutory Trust Act. 
  

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 SECTION 2.8. Authorization to Enter into Certain Transactions. 
  
 (a) The Issuer Trustees and the Administrators shall conduct the affairs of
the Issuer Trust in accordance with the terms of this Trust Agreement. Subject to the limitations set forth in paragraph (b) of this Section and in accordance with the following provisions (i), (ii) and (iii), the Issuer Trustees and
the Administrators shall act as follows: 
  
 (i)
each Administrator, acting jointly or singly, shall: 
  
 (A) comply with the Placement Agreement regarding the issuance and sale of the Trust Securities; 
  
 (B) assist in compliance with the Securities Act, applicable state securities or blue sky laws, and the Trust Indenture Act; 

 
 (C) assist in the listing of the Capital Securities upon
such securities exchange or exchanges, if any, as shall be determined by the Depositor, with the registration of the Capital Securities under the Exchange Act, if required or if requested by the Depositor, and the preparation and filing of all
periodic and other reports and other documents pursuant to the foregoing; 
  
 (D) execute the Trust Securities on behalf of the Issuer Trust in accordance with this Trust Agreement; 
  
 (E) execute and deliver an application for a taxpayer identification number for the Issuer Trust; 
  
 (F) assist in the filing with the Commission, at such time
as determined by the Depositor, any registration statement, if any, under the Securities Act relating to the Trust Securities, including any amendments thereto; 
  
 (G) unless otherwise required by the Trust Indenture Act, execute on behalf of the Issuer Trust any
documents that the Administrators have the power to execute pursuant to this Trust Agreement, including without limitation, the Debenture Purchase Agreement and the Common Securities Purchase Agreement; and 
  
 (H) take any action incidental to the foregoing as necessary
or advisable to give effect to the terms of this Trust Agreement. 
  
 (ii) The Property Trustee shall have the power and authority to act on behalf of the Issuer Trust with respect to the following matters: 
  
 (A) the establishment of the Payment Account; 
  
 (B) the receipt of the Junior Subordinated Debentures; 
  
 (C) the receipt and collection of interest, principal and
any other payments made in respect of the Junior Subordinated Debentures in the Payment Account; 
  

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 (D) the distribution of amounts owed to the Holders in respect of the Trust Securities;

  
 (E) the exercise of all of the rights, powers
and privileges of a holder of the Junior Subordinated Debentures; 
  
 (F) the sending of notices of default and other information regarding the Trust Securities and the Junior Subordinated Debentures to the Holders thereof in accordance with this Trust Agreement; 
  
 (G) the distribution of the Trust Property in accordance
with the terms of this Trust Agreement; 
  
 (H)
to the extent provided in this Trust Agreement, the winding-up of the affairs of and liquidation of the Issuer Trust and the preparation, execution and filing of the certificate of cancellation with the Secretary of State of the State of Delaware;
and 
  
 (I) after an Event of Default (other than
under paragraph (2), (3), (4), or (5) of the definition of such term if such Event of Default is by or with respect to the Property Trustee), comply with the provisions of this Trust Agreement and take any action to give effect to the
terms of this Trust Agreement and protect and conserve the Trust Property for the benefit of the Holders (without consideration of the effect of any such action on any particular Holder); 
  
 provided, however, that nothing in this Section 2.8(a)(ii) shall
require the Property Trustee to take any action that is not otherwise required in this Trust Agreement. 
  
 (iii) The Administrators shall comply with the listing requirements of the Capital Securities upon such securities exchange or exchanges,
if any, as shall be determined by the Depositor, the registration of the Capital Securities under the Exchange Act, if required or if requested by the Depositor, and the preparation and filing of all periodic and other reports and other documents
pursuant to the foregoing. 
  
 (b) So long as this Trust Agreement
remains in effect, the Issuer Trust (or the Issuer Trustees or Administrators acting on behalf of the Issuer Trust) shall not undertake any business, activity or transaction except as expressly provided herein or contemplated hereby. In particular,
neither the Issuer Trustees nor the Administrators shall (i) acquire any investments or engage in any activities not authorized by this Trust Agreement, (ii) sell, assign, transfer, exchange, mortgage, pledge, set-off or otherwise dispose
of any of the Trust Property or interests therein, including to Holders, except as expressly provided herein, (iii) take any action that would cause the Issuer Trust to become taxable other than as a grantor trust for United States Federal
income tax purposes, (iv) incur any indebtedness for borrowed money or issue any other debt, or (v) take or consent to any action that would result in the placement of a Lien on any of the Trust Property, except as expressly provided
herein. The Property Trustee shall defend all 

  

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claims and demands of all Persons at any time claiming any Lien on any of the Trust Property adverse to the interest of the Issuer Trust or the Holders in
their capacity as Holders. 
  
 (c) In connection with the issue
and sale of the Capital Securities, the Depositor shall have the right and responsibility to assist the Issuer Trust with respect to, or effect on behalf of the Issuer Trust, the following (and any actions taken by the Depositor in furtherance of
the following prior to the date of this Trust Agreement are hereby ratified and confirmed in all respects): 
  
 (i) the preparation, execution and filing with the Commission of a registration statement on the appropriate form under the Securities Act
or the preparation of offering documents in reliance on one or more exemptions from registration under the Securities Act with respect to the Capital Securities; 
  
 (ii) the determination of the states in which to take appropriate action to qualify or register for sale or
necessary to obtain any exemption from such qualification or registration of all or part of the Capital Securities and the determination of any and all such acts, other than actions that must be taken by or on behalf of the Issuer Trust, and the
advice to the Issuer Trustees of actions they must take on behalf of the Issuer Trust, and the preparation for execution and filing of any documents to be executed and filed by the Issuer Trust or on behalf of the Issuer Trust, as the Depositor
deems necessary or advisable in order to comply with the applicable laws of any such States in connection with the offer and sale of the Capital Securities; 
  
 (iii) the negotiation of the terms of, and the execution and delivery of, the Placement Agreement and the Purchase Agreement providing for
the sale of the Capital Securities; and 
  
 (iv)
the taking of any other actions necessary or desirable to carry out any of the foregoing activities. 
  
 (d) Notwithstanding anything herein to the contrary, the Administrators and the Property Trustee are authorized and directed to conduct the affairs of the
Issuer Trust and to operate the Issuer Trust so that the Issuer Trust will not be deemed to be an “investment company” required to be registered under the Investment Company Act, and will not be taxable other than as a grantor trust for
United States Federal income tax purposes and so that the Junior Subordinated Debentures will be treated as indebtedness of the Depositor for United States Federal income tax purposes. In this connection, the Property Trustee and the Holders of
Common Securities are authorized to take any action, not inconsistent with applicable law, the Certificate of Trust or this Trust Agreement, that the Property Trustee and Holders of Common Securities determine in their discretion to be necessary or
desirable for such purposes, as long as such action does not adversely affect in any material respect the interests of the Holders of the Outstanding Capital Securities. In no event shall the Administrators or the Issuer Trustees be liable to the
Issuer Trust or the Holders for any failure to comply with this Section that results from a change in law or regulations or in the interpretation thereof. 
  

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 SECTION 2.9. Assets of Trust. 
  
 The assets of the Issuer Trust shall consist solely of the Trust Property. 
  
 SECTION 2.10. Title to Trust Property. 
  
 Legal title to all Trust Property shall be vested at all times in the
Property Trustee (in its capacity as such) and shall be held and administered by the Property Trustee for the benefit of the Issuer Trust and the Holders in accordance with this Trust Agreement. 
  
 ARTICLE III 
  
 PAYMENT ACCOUNT 
  
 SECTION 3.1. Payment Account. 
  
 (a) At or prior to the Closing Date, the Property Trustee shall establish the
Payment Account. The Property Trustee and its agents shall have exclusive control and sole right of withdrawal with respect to the Payment Account for the purpose of making deposits in and withdrawals from the Payment Account in accordance with this
Trust Agreement. All monies and other property deposited or held from time to time in the Payment Account shall be held by the Property Trustee in the Payment Account for the exclusive benefit of the Holders and for distribution as herein provided,
including (and subject to) any priority of payments provided for herein. 
  
 (b) The Property Trustee shall deposit in the Payment Account, promptly upon receipt, all payments of principal of or interest on, and any other payments or proceeds with respect to, the Junior Subordinated
Debentures. Amounts held in the Payment Account shall not be invested by the Property Trustee pending distribution thereof. 
  
 ARTICLE IV 
  
 DISTRIBUTIONS; REDEMPTION 
  
 SECTION 4.1. Distributions. 
  
 (a) The Trust Securities represent undivided beneficial interests in the Trust Property, and Distributions (including of Additional Amounts) will be made on the Trust Securities at the rate and on the dates that
payments of interest (including of Additional Interest, as defined in the Indenture) are made on the Junior Subordinated Debentures. Accordingly: 
  
 (i) Distributions on the Trust Securities shall be cumulative and will accumulate whether or not there are funds of the Issuer Trust
available for the payment of Distributions. Distributions shall accumulate from the date of issue of the Trust Securities, and, except in the event (and to the extent) that the Depositor exercises its right to defer the payment of interest on the
Junior Subordinated Debentures pursuant to 

  

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the Indenture, shall be payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, commencing on
December 31, 2005. If any date on which a Distribution is otherwise payable on the Trust Securities is not a Business Day, then the payment of such Distribution shall be made on the next succeeding day that is a Business Day (without any
additional Distributions or other payment in respect of any such delay), except that, if such Business Day is in the next succeeding calendar year, such payment shall be made on the immediately preceding Business Day, in each case with the same
force and effect as if made on the date on which such payment was originally payable (each date on which distributions are payable in accordance with this Section 4.1(a), a “Distribution Date”). 
  
 (ii) The Trust Securities shall be entitled to Distributions
payable at a floating rate, reset quarterly on each Distribution Date for the next succeeding quarter, equal to the prime rate of interest so published in the “Money Rates” table in the Eastern Edition of The Wall Street Journal for
the last Business Day of each of March, June, September and December, as applicable (“Floating Rate”). If more than one rate is so indicated in The Wall Street Journal, the prime rate shall equal the highest rate provided
therein. The amount of Distributions payable for any full quarterly period shall be computed on the basis of a 360-day year of twelve 30-day months. The amount of Distributions for any period less than a full quarter shall be computed on the basis
of a 360-day year and the actual number of days elapsed during that period. The amount of Distributions payable for any period shall include any Additional Amounts in respect of such period. 
  
 (iii) So long as no Debenture Event of Default has occurred
and is continuing, the Depositor has the right under the Indenture to defer the payment of interest on the Junior Subordinated Debentures at any time and from time to time for a period not exceeding 20 consecutive quarterly periods (an
“Extension Period”), provided that no Extension Period may extend beyond September 30, 2035, or end on a date that is not a scheduled interest payment date. As a consequence of any such deferral, quarterly Distributions
on the Trust Securities by the Issuer Trust will also be deferred and the amount of Distributions to which Holders of the Trust Securities are entitled will accumulate additional Distributions thereon at the Floating Rate, compounded quarterly, to
the extent permitted by applicable law, from the relevant payment date for such Distributions, computed in the same manner as set forth for Distributions in subsection 4.1(a)(ii) immediately above. The term “Distributions” as used in
Section 4.1 shall include any such additional Distributions provided pursuant to this Section 4.1(a)(iii). 
  
 (iv) Distributions on the Trust Securities shall be made by the Property Trustee from the Payment Account and shall be payable on each
Distribution Date only to the extent that the Issuer Trust has funds then on hand and available in the Payment Account for the payment of such Distributions. 
  
 (b) Distributions on the Trust Securities with respect to a Distribution Date shall be payable to the Holders thereof as they appear on the Securities
Register for the Trust Securities at the close of business on the relevant record date, which shall be at the close of 

  

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business on the fifteenth day of the month in which the relevant Distribution Date occurs (or if such date is not a Business Day, the immediately preceding
Business Day). 
  
 SECTION 4.2. Redemption.

  
 (a) On each Debenture Redemption Date and on the stated
maturity of the Junior Subordinated Debentures, the Issuer Trust will be required to redeem a Like Amount of Trust Securities at the Redemption Price. 
  
 (b) Notice of redemption shall be given by the Property Trustee by first-class mail, postage prepaid, mailed not less than 30 nor more than 60 days prior
to the Redemption Date to each Holder of Trust Securities to be redeemed, at such Holder’s address appearing in the Securities Register. All notices of redemption shall state: 
  
 (i) the Redemption Date; 
  
 (ii) the Redemption Price, or if the Redemption Price cannot be calculated prior to the time the notice is
required to be sent, the estimate of the Redemption Price provided pursuant to the Indenture together with a statement that it is an estimate and that the actual Redemption Price will be calculated on the third Business Day prior to the Redemption
Date (and if an estimate is provided, a further notice shall be sent of the actual Redemption Price on the date, or as soon as practicable thereafter, that notice of such actual Redemption Price is received pursuant to the Indenture); 
  
 (iii) the CUSIP number or CUSIP numbers of the Capital
Securities affected; 
  
 (iv) if less than all
the Outstanding Trust Securities are to be redeemed, the identification and the total Liquidation Amount of the particular Trust Securities to be redeemed; 
  
 (v) that on the Redemption Date the Redemption Price will become due and payable upon each such Trust Security to be redeemed and that
Distributions thereon will cease to accumulate on and after said date, except as provided in Section 4.2(d) below; and 
  
 (vi) the place or places where Trust Securities are to be surrendered for the payment of the Redemption Price. 
  
 The Issuer Trust in issuing the Trust Securities may use “CUSIP” or
“private placement” numbers (if then generally in use), and, if so, the Property Trustee shall indicate the “CUSIP” or “private placement” numbers of the Trust Securities in notices of redemption and related materials
as a convenience to Holders; provided, that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Trust Securities or as contained in any notice of redemption and related
material. 
  

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 (c) The Trust Securities redeemed on each Redemption Date shall be redeemed at the Redemption Price with
the applicable proceeds from the contemporaneous redemption of Junior Subordinated Debentures. Redemptions of the Trust Securities shall be made and the Redemption Price shall be payable on each Redemption Date only to the extent that the Issuer
Trust has funds then on hand and available in the Payment Account for the payment of such Redemption Price. 
  
 (d) If the Issuer Trust gives a notice of redemption in respect of any Capital Securities, then, by 12:00 noon, Eastern Time, on the Redemption Date,
subject to Section 4.2(c), the Property Trustee will, with respect to Capital Securities held in global form, irrevocably deposit with the Clearing Agency for such Capital Securities, to the extent available therefor, funds sufficient to pay
the applicable Redemption Price and will give such Clearing Agency irrevocable instructions and authority to pay the Redemption Price to the Holders of the Capital Securities. With respect to Capital Securities that are not held in global form, if
any, the Property Trustee, subject to Section 4.2(c), will irrevocably deposit with the Paying Agent, to the extent available therefor, funds sufficient to pay the applicable Redemption Price and will give the Paying Agent irrevocable
instructions and authority to pay the Redemption Price to the Holders of the Capital Securities upon surrender of their Capital Securities Certificates or Restricted Securities Certificates, as applicable. Notwithstanding the foregoing,
Distributions payable on or prior to the Redemption Date for any Trust Securities called for redemption shall be payable to the Holders of such Trust Securities as they appear on the Securities Register for the Trust Securities on the relevant
record dates for the related Distribution Dates. If notice of redemption shall have been given and funds deposited as required, then, upon the date of such deposit, all rights of Holders holding Trust Securities so called for redemption will cease,
except the right of such Holders to receive the Redemption Price and any Distribution payable in respect of the Trust Securities on or prior to the Redemption Date, but without interest, and such Trust Securities will cease to be Outstanding. In the
event that any date on which any applicable Redemption Price is payable is not a Business Day, then payment of the applicable Redemption Price payable on such date will be made on the next succeeding day that is a Business Day (and without any
interest or other payment in respect of any such delay), except that, if such Business Day falls in the next calendar year, such payment will be made on the immediately preceding Business Day, in each case, with the same force and effect as if made
on such date. In the event that payment of the Redemption Price in respect of any Trust Securities called for redemption is improperly withheld or refused and not paid either by the Issuer Trust or by the Depositor pursuant to the Guarantee,
Distributions on such Trust Securities will continue to accumulate, as set forth in Section 4.1 and in accordance with the continued accrual of interest on the Junior Subordinated Debentures, from the Redemption Date originally established by
the Issuer Trust for such Trust Securities to the date such applicable Redemption Price is actually paid, in which case the actual payment date will be the date fixed for redemption for purposes of calculating the applicable Redemption Price.

  
 (e) Subject to Section 4.3(a), if less than all the
Outstanding Trust Securities are to be redeemed on a Redemption Date, then the aggregate Liquidation Amount of such Trust Securities to be redeemed shall be allocated pro rata to the Common Securities and the Capital Securities based on the relative
aggregate Liquidation Amounts of such classes. The particular Capital Securities to be redeemed shall be selected on a pro rata basis based on their respective 

  

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Liquidation Amounts not more than 60 days prior to the Redemption Date by the Property Trustee from the Outstanding Capital Securities not previously
called for redemption, or if the Capital Securities are then held in the form of a Global Preferred Security in accordance with the customary procedures for the Clearing Agency. The Property Trustee shall promptly notify the Securities Registrar in
writing of the aggregate Liquidation Amount of Capital Securities to be redeemed and the particular Capital Securities selected for redemption. For all purposes of this Trust Agreement, unless the context otherwise requires, all provisions relating
to the redemption of Capital Securities shall relate, in the case of any Capital Securities redeemed, to the portion of the aggregate Liquidation Amount of Capital Securities that has been or is to be redeemed. 
  
 SECTION 4.3. Subordination of Common Securities. 
  
 (a) Payment of Distributions (including Additional Amounts, if applicable)
on, the Redemption Price of, and the Liquidation Distribution in respect of, the Trust Securities, as applicable, shall be made, as set forth in Section 4.2(e), pro rata among the Common Securities and the Capital Securities based on the
Liquidation Amount of such Trust Securities; provided, however, that if on any Distribution Date or Redemption Date any Event of Default resulting from a Debenture Event of Default in Sections 5.1(1) or 5.1(2) of the Indenture shall have
occurred and be continuing, no payment of any Distribution (including any Additional Amounts) on, Redemption Price of, or Liquidation Distribution in respect of, any Common Security, and no other payment on account of the redemption, liquidation or
other acquisition of Common Securities, shall be made, unless payment in full in cash of all accumulated and unpaid Distributions (including any Additional Amounts) on all Outstanding Capital Securities for all Distribution periods terminating on or
prior thereto, or, in the case of payment of the Redemption Price, the full amount of such Redemption Price on all Outstanding Capital Securities then called for redemption, or in the case of payment of the Liquidation Distribution, the full amount
of such Liquidation Distribution on all Outstanding Capital Securities, shall have been made or provided for, and all funds immediately available to the Property Trustee shall first be applied to the payment in full in cash of all Distributions
(including any Additional Amounts) on, or the Redemption Price of, or Liquidation Distribution in respect of, Capital Securities then due and payable. The existence of an Event of Default does not entitle the Holders of Capital Securities to
accelerate the maturity thereof. 
  
 (b) In the case of the
occurrence of any Event of Default resulting from any Debenture Event of Default, the Holder of the Common Securities shall be deemed to have waived any right to act with respect to any such Event of Default under this Trust Agreement until the
effects of all such Events of Default with respect to the Capital Securities have been cured, waived or otherwise eliminated. Until all such Events of Default under this Trust Agreement with respect to the Capital Securities have been so cured,
waived or otherwise eliminated, to the fullest extent permitted by applicable law, the Property Trustee shall act solely on behalf of the Holders of the Capital Securities and not on behalf of the Holder of the Common Securities, and only the
Holders of the Capital Securities will have the right to direct the Property Trustee to act on their behalf. 
  

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 SECTION 4.4. Payment Procedures. 
  
 Payments of Distributions (including any Additional Amounts) in respect of
the Capital Securities shall be made by check mailed to the address of the Person entitled thereto as such address shall appear on the Securities Register or, if the Capital Securities are held by a Clearing Agency, such Distributions shall be made
to the Clearing Agency in immediately available funds, which will credit the relevant accounts on the applicable Distribution Dates. Payments in respect of the Common Securities shall be made in such manner as shall be mutually agreed between the
Property Trustee and the Holder of the Common Securities. 
  
 SECTION 4.5. Tax Returns and Reports. 
  
 The Administrators shall prepare (or cause to be prepared), at the Depositor’s expense, and file all United States federal, state and local tax and information returns and reports required to be filed by or in respect of the Issuer
Trust. In this regard, the Administrators shall (a) prepare and file (or cause to be prepared and filed) all Internal Revenue Service forms required to be filed in respect of the Issuer Trust in each taxable year of the Issuer Trust and
(b) prepare and furnish (or cause to be prepared and furnished) to each Holder all Internal Revenue Service forms required to be provided by the Issuer Trust. The Administrators shall provide the Depositor and the Property Trustee with a copy
of all such returns and reports promptly after such filing or furnishing. The Issuer Trustees shall comply with United States Federal withholding and backup withholding tax laws and information reporting requirements with respect to any payments to
Holders under the Trust Securities. 
  
 On or before
December 15 of each year during which any Capital Securities are Outstanding, the Administrators shall furnish to the Paying Agent such information as may be reasonably requested by the Property Trustee in order that the Property Trustee may
prepare the information which it is required to report for such year on Internal Revenue Service Forms 1096 and 1099 pursuant to Section 6049 of the Code. Such information shall include the amount of original issue discount includable in
income for each Outstanding Capital Security during such year, if any. 
  
 SECTION 4.6. Payment of Taxes, Duties, Etc. of the Issuer Trust. 
  
 Upon receipt under the Junior Subordinated Debentures of Additional Sums, the Property Trustee shall promptly pay any taxes, duties or governmental charges of whatsoever nature (other than withholding taxes) imposed
on the Issuer Trust by the United States or any other taxing authority out of the proceeds of the Additional Sums. 
  
 SECTION 4.7. Payments under Indenture or Pursuant to Direct Actions. 
  
 Any amount payable hereunder to any Holder of Capital Securities shall be reduced by the amount of any corresponding payment
such Holder (or Owner) has directly received pursuant to Section 5.8 of the Indenture or Section 5.13 of this Trust Agreement. 
  

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 SECTION 4.8. Liability of the Holder of Common Securities. 
  
 The Holder of Common Securities shall be liable for the debts and obligations
of the Issuer Trust as set forth in Section 6.7 of the Indenture regarding allocation of expenses. 
  
 ARTICLE V 
  
 TRUST SECURITIES CERTIFICATES 
  
 SECTION 5.1.
Initial Ownership. 
  
 Upon the creation of the Issuer
Trust and the contribution by the Depositor pursuant to Section 2.3 and until the issuance of the Trust Securities, and at any time during which no Trust Securities are Outstanding, the Depositor shall be the sole beneficial owner of the Issuer
Trust. 
  
 SECTION 5.2. The Trust Securities
Certificates. 
  
 (a) The Trust Securities Certificates
shall be issued in fully registered form. The Trust Securities Certificates shall be executed on behalf of the Issuer Trust by manual or facsimile signature of at least one Administrator. Trust Securities Certificates bearing the manual or facsimile
signatures of individuals who were, at the time when such signatures shall have been affixed, authorized to sign on behalf of the Issuer Trust, shall be validly issued and entitled to the benefits of this Trust Agreement, notwithstanding that such
individuals or any of them shall have ceased to be so authorized prior to the delivery of such Trust Securities Certificates or did not hold such offices at the date of delivery of such Trust Securities Certificates. A transferee of a Trust
Securities Certificate shall become a Holder, and shall be entitled to the rights and subject to the obligations of a Holder hereunder, upon due registration of such Trust Securities Certificate in such transferee’s name pursuant to
Section 5.5. 
  
 (b) Upon their original issuance, Capital
Securities Certificates shall be issued in the form of one or more Global Capital Securities Certificates which initially shall bear a Restricted Capital Securities Legend, registered in the name of Cede as the Depositary’s nominee and
deposited with or on behalf of Depositary for credit by Depositary to the respective accounts of the Owners thereof (or such other accounts as they may direct). Except as set forth herein, record ownership of the Global Capital Securities may be
transferred, in whole or in part, only to another nominee of Depositary or to a successor of the Depository or its nominee. 
  
 (c) A single Common Securities Certificate representing the Common Securities shall be issued to the Depositor in the form of a definitive Common
Securities Certificate. 
  
 SECTION 5.3. Execution and Delivery
of Trust Securities Certificates. 
  
 At the Closing,
an Administrator shall execute, on behalf of the Trust, Trust Securities Certificates, in an aggregate Liquidation Amount as provided in Sections 2.4 and 2.5, 

  

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and deliver such Trust Securities Certificates to the Property Trustee for authentication. Upon such delivery, the Property Trustee shall authenticate such
Trust Securities Certificates and deliver such Trust Securities Certificates in authorized denominations upon the written order of the Trust, executed by an Administrator thereof, without further corporate action by the Depositor. 
  
 SECTION 5.4. Global Capital Securities. 
  
 (a) The Global Capital Security issued under this Trust Agreement shall be
registered in the name of Cede & Co., as the nominee of the Clearing Agency and delivered to such custodian therefor, and such Global Capital Security shall constitute a single Capital Security for all purposes of this Trust Agreement, and
it shall initially bear a Restricted Capital Securities Legend. 
  
 (b) Notwithstanding any other provision in this Trust Agreement, the Global Capital Security may not be exchanged in whole or in part for registered Capital Securities, and no transfer of the Global Capital Security in whole or in part may
be registered, in the name of any Person other than the Clearing Agency for such Global Capital Security, Cede & Co., or other nominee thereof unless: (i) such Clearing Agency advises the Depositor and the Property Trustee in writing
that such Clearing Agency is no longer willing or able to properly discharge its responsibilities as the Clearing Agency with respect to such Global Capital Security, and the Depositor is unable to locate a qualified successor within 90 days,
(ii) at any time the Depositary ceases to be a Clearing Agency registered as such under the Exchange Act, or (iii) the Issuer Trust at its option advises the Depositary in writing that it elects to terminate the book-entry system through
the Clearing Agency. 
  
 (c) If the Global Capital Security is to
be exchanged or canceled in whole, it shall be surrendered by or on behalf of the Clearing Agency or its nominee to the Securities Registrar for exchange or cancellation as provided in this Article V. If the Global Capital Security is to be
exchanged or canceled in part, or if another Capital Security is to be exchanged in whole or in part for a beneficial interest in the Global Capital Security, then either: (i) such Global Capital Security shall be so surrendered for exchange or
cancellation as provided in this Article V, or (ii) the Liquidation Amount thereof shall be reduced or increased by an amount equal to the portion thereof to be so exchanged or canceled or equal to the Liquidation Amount of such other Capital
Security to be so exchanged for a beneficial interest therein, as the case may be, by means of an appropriate adjustment made on the records of the Securities Registrar, whereupon the Property Trustee, in accordance with the Applicable Procedures,
shall instruct the Clearing Agency or its authorized representative to make a corresponding adjustment to its records. Upon any such surrender or adjustment of the Global Capital Security by the Clearing Agency, accompanied by registration
instructions, the Property Trustee shall, subject to Section 5.4(b) and as otherwise provided in this Article V, authenticate and deliver any Capital Securities or Restricted Capital Securities, as applicable and as instructed by the
Administrators, issuable in exchange for such Global Capital Security (or any portion thereof) in accordance with the instructions of the Clearing Agency. The Property Trustee shall not be liable for any delay in delivery of such instructions and
may conclusively rely on, and shall be fully protected in relying on, such instructions. 
  

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 (d) Every Capital Security or Restricted Capital Security authenticated and delivered upon registration
of, transfer of, or in exchange for or in lieu of, the Global Capital Security or any portion thereof, whether pursuant to this Article V or Article IV or otherwise, shall be authenticated and delivered in the form of, and shall be, a Global Capital
Security, unless such Global Capital Security is registered in the name of a Person other than the Clearing Agency for such Global Capital Security or a nominee thereof. 
  
 (e) The Clearing Agency or its nominee, as the registered owner of the Global Capital Security, shall be considered the
Holder of the Capital Securities or the Restricted Capital Securities represented by the Global Capital Security for all purposes under this Trust Agreement and the Capital Securities, and owners of beneficial interests in the Global Capital
Security shall hold such interests pursuant to the Applicable Procedures and, except as otherwise provided herein, shall not be entitled to have any of the individual Capital Securities or the Restricted Capital Securities represented by the Global
Capital Security registered in their names, shall not receive nor be entitled to receive physical delivery of any such Capital Securities or the Restricted Capital Securities in definitive form and shall not be considered the Holders thereof under
this Trust Agreement. Accordingly, any such owner’s beneficial interest in the Global Capital Security shall be shown only on, and the transfer of such interest shall be effected only through, records maintained by the Clearing Agency or its
nominee. Neither the Property Trustee nor the Securities Registrar shall have any liability in respect of any transfers effected by the Clearing Agency. 
  
 (f) The rights of owners of beneficial interests in the Global Capital Security shall be exercised only through the Clearing Agency and shall be limited
to those established by law and agreements between such owners and the Clearing Agency. 
  
 SECTION 5.5. Registration of Transfer and Exchange Generally; Certain Transfers and Exchanges; Capital Securities Certificates; Securities Act Legends. 
  
 (a) The Property Trustee shall keep or cause to be kept at its Corporate
Trust Office a register or registers (the “Securities Register”) for the purpose of registering Capital Securities Certificates and Common Securities Certificates and transfers and exchanges of Capital Securities Certificates and
Common Securities Certificates and acting as the registrar and transfer agent with respect to the Capital Securities and Common Securities Certificates (the “Securities Registrar”), subject to such reasonable regulations as it may
prescribe, and shall provide for the registration of Capital Securities Certificates and Common Securities Certificates (subject to Section 5.11 in the case of Common Securities Certificates) in the Securities Register. The Property Trustee is
hereby appointed Securities Registrar. The Securities Registrar shall maintain stop transfer instructions in the Securities Register and as it otherwise deems appropriate to restrict the transfer of Restricted Capital Securities consistent with the
terms of this Agreement. 
  
 Upon surrender for registration of
transfer of any Capital Securities Certificate at the offices or agencies of the Property Trustee designated for that purpose, the Administrators shall execute, and the Property Trustee shall authenticate and deliver, in the name of the 

  

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designated transferee or transferees, one or more new Capital Securities Certificates of the same series of any authorized denominations of like tenor and
aggregate principal amount and bearing such restrictive legends (including the Restricted Capital Securities Legend) as may be required by this Trust Agreement. 
  

At the option of the Holder, Capital Securities Certificates may be exchanged for other Capital Securities Certificates of any authorized
denominations, of like tenor and aggregate Liquidation Amount and bearing such restrictive legends (including the Restricted Capital Securities Legend) as may be required by this Trust Agreement, upon surrender of the Capital Securities Certificates
to be exchanged at such office or agency of the Property Trustee. Whenever any securities are so surrendered for exchange, the Administrators shall execute and the Property Trustee shall authenticate and deliver the Capital Securities Certificates
that the Holder making the exchange is entitled to receive. 
  
 All Capital Securities issued upon any transfer or exchange of Capital Securities shall be the valid obligations of the Issuer Trust, evidencing the same obligations, and entitled to the same benefits under this Trust Agreement, as the
Capital Securities surrendered upon such transfer or exchange. 
  
 Every Capital Securities Certificate presented or surrendered for transfer or exchange shall (if so required by the Property Trustee) be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the
Property Trustee and the Securities Registrar, duly executed by the Holder thereof or such Holder’s attorney duly authorized in writing. 
  
 No service charge shall be made to a Holder for any transfer or exchange of Capital Securities Certificates, but the Property Trustee may require payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Capital Securities Certificates. 
  
 Neither the Issuer Trust nor the Property Trustee shall be required, pursuant to the provisions of this Section: (i) to
issue, register the transfer of, or exchange any Capital Securities Certificates during a period beginning at the opening of 15 Business Days before the day of selection for redemption of Capital Securities pursuant to Article IV and ending at the
close of business on the day of mailing of the notice of redemption, or (ii) to register the transfer of or exchange any Capital Security so selected for redemption in whole or in part, except, in the case of any such Capital Security to be
redeemed in part, any portion thereof not to be redeemed. 
  
 (b)
Certain Transfers and Exchanges. Notwithstanding any other provision of this Trust Agreement, transfers and exchanges of Capital Securities and beneficial interests in a Global Capital Security shall be made only in accordance with this
Section 5.5(b). 
  
 (i) Non-Global
Restricted Capital Security to Global Capital Security. If the Holder of a Restricted Capital Security (other than the Global Capital Security) wishes at any time to transfer all or any portion of such Restricted Capital Security to a Person who
wishes to take delivery thereof in the form of a 

  

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beneficial interest in the Global Capital Security, such transfer may be effected only in accordance with the provisions of this clause (b)(i) and subject to
the Applicable Procedures. Upon receipt by the Securities Registrar of (A) such Restricted Capital Security as provided in Section 5.5(a) and instructions satisfactory to the Securities Registrar directing that a beneficial interest in the
Global Capital Security in a specified Liquidation Amount not greater than the Liquidation Amount of such Restricted Capital Security to be credited to a specified Clearing Agency Participant’s account, and (B) a Restricted Securities
Certificate duly executed for transfer by such Holder or such Holder’s attorney duly authorized in writing, then the Securities Registrar shall cancel such Restricted Capital Security (and issue a new Restricted Capital Security in respect of
any untransferred portion thereof) as provided in Section 5.5(a) and increase the aggregate Liquidation Amount of the Global Capital Security by the specified Liquidation Amount as provided in Section 5.4(c). 
  
 (ii) Non-Global Capital Security to Non-Global Capital
Security. A Capital Security that is not a Global Capital Security may be transferred, in whole or in part, to a Person who takes delivery in the form of another Capital Security that is not a Global Capital Security as provided in
Section 5.5(a), provided that if the Capital Security to be transferred in whole or in part is a Restricted Capital Security, the Securities Registrar shall have received a Restricted Securities Certificate duly executed by the
transferor Holder or such Holder’s attorney duly authorized in writing and the Securities Registrar shall only be required to register the transfer of such Restricted Securities Certificate upon direction from the Depositor that such transfer
is permissible. 
  
 (iii) Exchanges Between
Global Capital Security and Non-Global Capital Security. A beneficial interest in the Global Capital Security may be exchanged for a Capital Security that is not a Global Capital Security only as provided in Section 5.4. 
  
 (iv) Certain Initial Transfers of Non-Global Capital
Securities. In the case of Capital Securities initially issued other than in global form, an initial transfer or exchange of such Capital Securities that does not involve any change in beneficial ownership may be made to an institutional
accredited investor or investors as if such transfer or exchange were not an initial transfer or exchange; provided that written certification shall be provided by the transferee and transferor of such Capital Securities to the Securities
Registrar that such transfer or exchange does not involve a change in beneficial ownership. 
  
 (v) Limitations Relating to Principal Amount. Notwithstanding any other provision of this Trust Agreement and unless otherwise
specified as permitted by this Trust Agreement, Capital Securities or portions thereof may be transferred or exchanged only in principal amounts of not less than $50,000.00. Any transfer, exchange or other disposition of Capital Securities in
contravention of this Section 5.5(b)(v) shall be deemed to be void and of no legal effect 

  

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whatsoever, any such transferee shall be deemed not to be the Holder or owner of any beneficial interest in such Capital Securities for any purpose,
including but not limited to the receipt of interest payable on such Capital Securities, such transferee shall be deemed to have no interest whatsoever in such Capital Securities, and the Securities Registrar shall not record any such transfer in
the Securities Register. 
  
 (c) Restricted Securities
Legend. Except as set forth below, all Capital Securities shall bear a Restricted Capital Securities Legend: 
  
 (i) subject to the following Clauses of this Section 5.5(c), a Capital Security or any portion thereof that is exchanged, upon
transfer or otherwise, for a Global Capital Security or any portion thereof shall bear the Restricted Capital Securities Legend while represented thereby; 
  
 (ii) subject to the following Clauses of this Section 5.5(c), a new Capital Security which is not a Global Capital Security and is
issued in exchange for another Capital Security (including a Global Capital Security) or any portion thereof, upon transfer or otherwise, shall, if such new Capital Security is required to be issued in the form of a Restricted Capital Security, bear
a Restricted Capital Securities Legend; 
  
 (iii)
a new Capital Security (other than a Global Capital Security) that does not bear a Restricted Capital Securities Legend may be issued in exchange for or in lieu of a Restricted Capital Security or any portion thereof that bears such a legend if, in
the Depositor’s judgment, placing such a legend upon such new Capital Security is not necessary to ensure compliance with the requirements of the Securities Act and is permissible under Commission Rule 144(k), and the Property Trustee, at the
written direction of the Administrator of the Issuer Trust in the form of an Officers’ Certificate, shall authenticate and deliver such new Capital Security as provided in this Article V; 
  
 (iv) notwithstanding the foregoing provisions of this
Section 5.5(c), a Successor Capital Security of a Capital Security that does not bear a Restricted Capital Securities Legend shall not bear such form of legend, unless the Depositor has reasonable cause to believe that such Successor Capital
Security is a “restricted security” within the meaning of Rule 144 under the Securities Act, in which case the Property Trustee, at the written direction of any Administrator of the Issuer Trust in the form of an Officers’
Certificate, shall authenticate and deliver a new Capital Security bearing a Restricted Capital Securities Legend in exchange for such Successor Capital Security as provided in this Article V; and 
  
 (v) Junior Subordinated Debentures distributed to a holder
of Capital Securities upon dissolution of the Issuer Trust shall bear a Restricted Capital Securities Legend, if the Capital Securities bear a similar legend, absent 

  

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instructions from the Depositor that such legend can be removed consistent with the requirements of the Securities Act, and Commission Rule 144 thereunder.

  
 SECTION 5.6. Mutilated, Destroyed, Lost or Stolen Trust
Securities Certificates. 
  
 If (a) any mutilated
Trust Securities Certificate shall be surrendered to the Securities Registrar, or if the Securities Registrar shall receive evidence to its satisfaction of the destruction, loss or theft of any Trust Securities Certificate and (b) there shall
be delivered to the Securities Registrar and the Administrators such security, indemnity and/or other assurance as may be required by them, in their discretion, to save each of them harmless, then in the absence of notice that such Trust Securities
Certificate shall have been acquired by a bona fide purchaser, the Administrators, or any one of them, on behalf of the Issuer Trust shall execute and make available for delivery, and the Property Trustee shall authenticate, in exchange for
or in lieu of any such mutilated, destroyed, lost or stolen Trust Securities Certificate, a new Trust Securities Certificate of like class, tenor and denomination. In connection with the issuance of any new Trust Securities Certificate under this
Section, the Administrators or the Securities Registrar may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith. Any duplicate Trust Securities Certificate issued pursuant
to this Section 5.6 shall constitute conclusive evidence of an undivided beneficial interest in the assets of the Issuer Trust corresponding to that evidenced by the lost, stolen or destroyed Trust Securities Certificate, as if originally
issued, whether or not the lost, stolen or destroyed Trust Securities Certificate shall be found at any time. 
  
 SECTION 5.7. Persons Deemed Holders. 
  
 The Issuer Trustees and the Securities Registrar shall treat the Person in whose name any Trust Securities are issued as the sole owner of such Trust
Securities for the purpose of receiving Distributions and for all other purposes whatsoever, and none of the Issuer Trustees, the Administrators or the Securities Registrar shall be bound by any notice to the contrary. 
  
 SECTION 5.8. Access to List of Holders’ Names and Addresses.

  
 Each Holder and each Owner shall be deemed to have agreed
not to hold the Depositor, the Property Trustee, or the Administrators accountable by reason of the disclosure of its name and address, regardless of the source from which such information was derived. 
  
 SECTION 5.9. Maintenance of Office or Agency. 
  
 The Property Trustee shall designate, with the consent of the Administrators,
which consent shall not be unreasonably withheld, an office or offices or agency or agencies where Capital Securities Certificates may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Issuer
Trustees in respect of the Trust Securities Certificates may be served. The Property Trustee initially designates its Corporate Trust Office as its corporate trust office for such purposes. The Property Trustee shall give prompt written 

  

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notice to the Depositor, the Administrators and to the Holders of any change in the location of the Securities Register or any such office or agency.

  
 SECTION 5.10. Appointment of Paying Agent.

  
 The Paying Agent shall make Distributions to Holders from
the Payment Account and shall report the amounts of such Distributions to the Property Trustee and the Administrators. Any Paying Agent shall have the revocable power to withdraw funds from the Payment Account solely for the purpose of making the
Distributions referred to above. The Property Trustee may revoke such power and remove any Paying Agent in its sole discretion. The Paying Agent shall initially be the Property Trustee. Any Person acting as Paying Agent shall be permitted to resign
as Paying Agent upon 30 days’ written notice to the Administrators and the Property Trustee. In the event that the Property Trustee shall no longer be the Paying Agent or a successor Paying Agent shall resign or its authority to act be
revoked, the Property Trustee shall appoint a successor (which shall be a bank or trust company) that is reasonably acceptable to the Administrators to act as Paying Agent. Such successor Paying Agent or any additional Paying Agent appointed by the
Administrators shall execute and deliver to the Issuer Trustees an instrument in which such successor Paying Agent or additional Paying Agent shall agree with the Issuer Trustees that as Paying Agent, such successor Paying Agent or additional Paying
Agent will hold all sums, if any, held by it for payment to the Holders in trust for the benefit of the Holders entitled thereto until such sums shall be paid to such Holders. The Paying Agent shall return all unclaimed funds to the Property Trustee
and upon removal of a Paying Agent such Paying Agent shall also return all funds in its possession to the Property Trustee. The provisions of Sections 8.1, 8.3 and 8.6 herein shall apply to the Bank also in its role as Paying Agent, for so long as
the Bank shall act as Paying Agent and, to the extent applicable, to any other paying agent appointed hereunder. Any reference in this Trust Agreement to the Paying Agent shall include any co-paying agent chosen by the Property Trustee, unless the
context requires otherwise. 
  
 SECTION 5.11. Ownership of
Common Securities by Depositor. 
  
 At Closing, the
Depositor shall acquire and retain beneficial and record ownership of the Common Securities. Neither the Depositor nor any successor Holder of the Common Securities may transfer less than all the Common Securities, and the Depositor or any such
successor Holder may transfer the Common Securities only (i) in connection with a consolidation or merger of the Depositor into another Person or any conveyance, transfer or lease by the Depositor of its properties and assets substantially as
an entirety to any Person, pursuant to Section 8.1 of the Indenture, or (ii) to an Affiliate of the Depositor in compliance with applicable law (including the Securities Act and applicable state securities and blue sky laws); provided
that any such transfer shall be subject to the condition that the transferor shall have obtained (A) either a ruling from the Internal Revenue Service or an unqualified written Opinion of Counsel by a firm experienced in such matters
addressed to the Issuer Trust and delivered to the Issuer Trustees to the effect that such transfer will not (1) cause the Issuer Trust to be treated as issuing a class of interests in the Issuer Trust differing from the class of interests
represented by the Common Securities originally issued to the Depositor, (2) result in the Issuer Trust acquiring or disposing of, or being deemed to have acquired or disposed of, an asset, or (3) result 

  

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in or cause the Issuer Trust to be treated as anything other than a grantor trust for United States Federal income tax purposes and (B) an unqualified
written Opinion of Counsel by a firm experienced in such matters addressed to the Issuer Trust and delivered to the Issuer Trustees to the effect that such transfer will not cause the Issuer Trust to be an “investment company” or
controlled by an “investment company” that is required to be registered under the Investment Company Act. To the fullest extent permitted by law, any attempted transfer of the Common Securities, other than as set forth in the immediately
preceding sentence, shall be void. The Administrators shall cause each Common Securities Certificate issued to the Depositor to contain a legend stating “THIS CERTIFICATE IS NOT TRANSFERABLE EXCEPT IN COMPLIANCE WITH APPLICABLE LAW AND
SECTION 5.11 OF THE TRUST AGREEMENT.” 
  
 SECTION
5.12. Notices to Clearing Agency. 
  
 To the extent
that a notice or other communication to the Holders is required under this Trust Agreement, with respect to Capital Securities represented by Global Capital Securities Certificates, the Administrators and the Issuer Trustees shall give all such
notices and communications specified herein to be given to the Clearing Agency, and shall have no obligations to give such notice or other communication to the Owners. 
  
 SECTION 5.13. Rights of Holders. 
  
 (a) The legal title to the Trust Property is vested exclusively in the Property Trustee (in its capacity as such) in
accordance with Section 2.10, and the Holders shall not have any right or title therein other than the undivided beneficial ownership interest in the assets of the Issuer Trust conferred by their Trust Securities and they shall have no right to
call for any partition or division of property, profits or rights of the Issuer Trust, except as described below. The Trust Securities shall be personal property giving only the rights specifically set forth therein and in this Trust Agreement. The
Trust Securities shall have no preemptive or similar rights, and when issued and delivered to Holders against payment of the purchase price therefor, as provided herein, will be fully paid and nonassessable by the Issuer Trust. Except as otherwise
provided in Section 4.8, the Holders of the Trust Securities, in their capacities as such, shall be entitled to the same limitation of personal liability extended to stockholders of private corporations for profit organized under the General
Corporation Laws of the State of Delaware. 
  
 (b) For so long as
any Capital Securities remain Outstanding, if, upon a Debenture Event of Default, the Indenture Trustee fails or the holders of not less than 25% in principal amount of the outstanding Junior Subordinated Debentures fail to declare the principal of
all of the Junior Subordinated Debentures to be immediately due and payable, the Holders of at least 25% in Liquidation Amount of the Capital Securities then Outstanding shall have such right to make such declaration by a notice in writing to the
Property Trustee, the Depositor and the Indenture Trustee. 
  
 At
any time after such a declaration of acceleration with respect to the Junior Subordinated Debentures has been made and before a judgment or decree for payment of the money due has been obtained by the Indenture Trustee as provided in the Indenture,
the Holders 

  

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of a Majority in Liquidation Amount of the Capital Securities, by written notice to the Property Trustee, the Depositor and the Indenture Trustee, may
rescind and annul such declaration and its consequences if: 
  
 (i) the Depositor has paid or deposited with the Indenture Trustee a sum sufficient to pay 
  
 (A) all overdue installments of interest on all of the Junior Subordinated Debentures, 
  
 (B) any accrued Additional Interest on all of the Junior
Subordinated Debentures, 
  
 (C) the principal of
(and premium, if any, on) any Junior Subordinated Debentures which have become due otherwise than by such declaration of acceleration and interest and any Additional Interest thereon at the rate borne by the Junior Subordinated Debentures, and

  
 (D) all sums paid or advanced by the
Indenture Trustee under the Indenture and the reasonable compensation, expenses, disbursements and advances of the Indenture Trustee and the Property Trustee, their agents and counsel; and 
  
 (ii) all Events of Default with respect to the Junior
Subordinated Debentures, other than the non-payment of the principal of the Junior Subordinated Debentures that has become due solely by such acceleration, have been cured or waived as provided in Section 5.13 of the Indenture. 
  
 If the Property Trustee fails to annul any such declaration and waive such
default, the Holders of at least a Majority in Liquidation Amount of the Capital Securities shall also have the right to rescind and annul such declaration and its consequences by written notice to the Depositor, the Property Trustee and the
Indenture Trustee, subject to the satisfaction of the conditions set forth in clauses (i) and (ii) of this Section 5.13(b). 
  
 The Holders of at least a Majority in Liquidation Amount of the Capital Securities may, on behalf of the Holders of all the Capital Securities, waive any
past default under the Indenture, except a default in the payment of principal or interest (unless such default has been cured and a sum sufficient to pay all matured installments of interest and principal due otherwise than by acceleration has been
deposited with the Indenture Trustee) or a default in respect of a covenant or provision which under the Indenture cannot be modified or amended without the consent of the holder of each outstanding Junior Subordinated Debenture. No such rescission
shall affect any subsequent default or impair any right consequent thereon. 
  
 Upon receipt by the Property Trustee of written notice declaring such an acceleration, or rescission and annulment thereof, by Holders of the Capital Securities, all or part of which is represented by the Global
Capital Securities Certificate, a record date shall be 

  

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established for determining Holders of Outstanding Capital Securities entitled to join in such notice, which record date shall be at the close of business on
the day the Property Trustee receives such notice. The Holders on such record date, or their duly designated proxies, and only such Persons, shall be entitled to join in such notice, whether or not such Holders remain Holders after such record date;
provided that, unless such declaration of acceleration, or rescission and annulment, as the case may be, shall have become effective by virtue of the requisite percentage having joined in such notice prior to the day which is 90 days
after such record date, such notice of declaration of acceleration, or rescission and annulment, as the case may be, shall automatically and without further action by any Holder be canceled and of no further effect. Nothing in this paragraph shall
prevent a Holder, or a proxy of a Holder, from giving, after expiration of such 90-day period, a new written notice of declaration of acceleration, or rescission and annulment thereof, as the case may be, that is identical to a written notice which
has been canceled pursuant to the proviso to the preceding sentence, in which event a new record date shall be established pursuant to the provisions of this Section 5.13(b). 
  
 (c) For so long as any Capital Securities remain Outstanding, to the fullest extent permitted by law and subject to the
terms of this Trust Agreement and the Indenture, upon a Debenture Event of Default specified in Section 5.1(1) or 5.1(2) of the Indenture, any Holder of Capital Securities shall have the right to institute a proceeding directly against the
Depositor, pursuant to Section 5.8 of the Indenture, for enforcement of payment to such Holder of the principal amount of or interest on Junior Subordinated Debentures having an aggregate principal amount equal to the aggregate Liquidation
Amount of the Capital Securities of such Holder (a “Direct Action”). Except as set forth in Sections 5.13(b) and 5.13(c), the Holders of Capital Securities shall have no right to exercise directly any right or remedy available to
the holders of, or in respect of, the Junior Subordinated Debentures. 
  
 ARTICLE VI 
  
 ACTS OF HOLDERS; MEETINGS; VOTING

  
 SECTION 6.1. Limitations on Holders’ Voting
Rights. 
  
 (a) Except as provided in this Trust
Agreement and in the Indenture and as otherwise required by law, no Holder of Capital Securities shall have any right to vote or in any manner otherwise control the administration, operation and management of the Issuer Trust or the obligations of
the parties hereto, nor shall anything herein set forth or contained in the terms of the Trust Securities Certificates be construed so as to constitute the Holders from time to time as members of an association. 
  
 (b) So long as any Junior Subordinated Debentures are held by the Property
Trustee on behalf of the Issuer Trust, the Property Trustee shall not (i) direct the time, method and place of conducting any proceeding for any remedy available to the Indenture Trustee, or execute any trust or power conferred on the Property
Trustee with respect to such Junior Subordinated Debentures, (ii) waive any past default that may be waived under Section 5.13 of the Indenture, (iii) exercise any right to rescind or annul a declaration that the principal of all the
Junior Subordinated Debentures shall be due and payable or (iv) consent to any amendment, 

  

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modification or termination of the Indenture or the Junior Subordinated Debentures, where such consent shall be required, without, in each case, obtaining
the prior approval of the Holders of at least a Majority in Liquidation Amount of the Capital Securities, provided, however, that where a consent under the Indenture would require the consent of each holder of Junior Subordinated Debentures
affected thereby, no such consent shall be given by the Property Trustee without the prior written consent of each Holder of Capital Securities. The Property Trustee shall not revoke any action previously authorized or approved by a vote of the
Holders of Capital Securities, except by a subsequent vote of the Holders of Capital Securities. The Property Trustee shall notify all Holders of the Capital Securities of any notice of default received with respect to the Junior Subordinated
Debentures. In addition to obtaining the foregoing approvals of the Holders of the Capital Securities, prior to taking any of the foregoing actions, the Property Trustee shall, at the expense of the Depositor, obtain an Opinion of Counsel
experienced in such matters to the effect that such action will not cause the Issuer Trust to be taxable other than as a grantor trust for United States Federal income tax purposes. 
  
 (c) If any proposed amendment to the Trust Agreement provides for, or the Issuer Trust otherwise proposes to effect,
(i) any action that would adversely affect in any material respect the interests, powers, preferences or special rights of the Capital Securities, whether by way of amendment to the Trust Agreement or otherwise, or (ii) the dissolution,
winding-up or termination of the Issuer Trust, other than pursuant to the terms of this Trust Agreement, then the Holders of Outstanding Trust Securities as a class will be entitled to vote on such amendment or proposal and such amendment or
proposal shall not be effective except with the approval of the Holders of at least a Majority in Liquidation Amount of the Capital Securities. Notwithstanding any other provision of this Trust Agreement, no amendment to this Trust Agreement may be
made if, as a result of such amendment, it would cause the Issuer Trust to be taxable other than as a grantor trust for United States Federal income tax purposes. 
  
 SECTION 6.2. Notice of Meetings. 
  
 Notice of all meetings of the Holders, stating the time, place and purpose of the meeting, shall be given by the Property
Trustee pursuant to Section 10.8 to each Holder of record, at his registered address, at least 15 days and not more than 90 days before the meeting. At any such meeting, any business properly before the meeting may be so considered
whether or not stated in the notice of the meeting. Any adjourned meeting may be held as adjourned without further notice. 
  
 SECTION 6.3. Meetings of Holders. 
  
 No annual meeting of Holders is required to be held. The Property Trustee, however, shall call a meeting of Holders to vote on any matter upon the written
request of the Holders of record of 25% of the aggregate Liquidation Amount of the Capital Securities and the Administrators or the Property Trustee may, at any time in their discretion, call a meeting of Holders of Capital Securities to vote on any
matters as to which Holders are entitled to vote. 
  

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 Holders of at least a Majority in Liquidation Amount of the Capital Securities, present in person or
represented by proxy, shall constitute a quorum at any meeting of Holders of the Capital Securities. 
  
 If a quorum is present at a meeting, an affirmative vote by the Holders of record present, in person or by proxy, holding Capital Securities representing
at least a Majority in Liquidation Amount of the Capital Securities held by the Holders present, either in person or by proxy, at such meeting shall constitute the action of the Holders of Capital Securities, unless this Trust Agreement requires a
greater number of affirmative votes. 
  
 SECTION 6.4. Voting
Rights. 
  
 Holders shall be entitled to one vote for
each $50,000.00 of Liquidation Amount represented by their Outstanding Trust Securities in respect of any matter as to which such Holders are entitled to vote. 
  

SECTION 6.5. Proxies, etc. 
  
 At any meeting of Holders, any Holder entitled to vote at such meeting may vote by proxy, provided that no proxy shall be voted at any meeting unless it
shall have been placed on file with the Property Trustee, or with such other officer or agent of the Issuer Trust as the Property Trustee may direct, for verification prior to the time at which such vote shall be taken. Pursuant to a resolution of
the Property Trustee, proxies may be solicited in the name of the Property Trustee or one or more officers of the Property Trustee. Only Holders of record shall be entitled to vote. When Trust Securities are held jointly by several persons, any one
of them may vote at any meeting in person or by proxy in respect of such Trust Securities, but if more than one of them shall be present at such meeting in person or by proxy, and such joint owners or their proxies so present disagree as to any vote
to be cast, such vote shall not be received in respect of such Trust Securities. A proxy purporting to be executed by or on behalf of a Holder shall be deemed valid unless challenged at or prior to its exercise, and the burden of proving invalidity
shall rest on the challenger. No proxy shall be valid more than three years after its date of execution. 
  
 SECTION 6.6. Holder Action by Written Consent. 
  
 Any action that may be taken by Holders at a meeting may be taken without a meeting and without prior notice if Holders holding at least a Majority in
Liquidation Amount of all Trust Securities entitled to vote in respect of such action (or such larger proportion thereof as shall be required by any other provision of this Trust Agreement) shall consent to the action in writing. 
  
 SECTION 6.7. Record Date for Voting and Other Purposes.

  
 For the purposes of determining the Holders who are
entitled to notice of and to vote at any meeting or by written consent, or to participate in any distribution on the Trust 

  

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Securities in respect of which a record date is not otherwise provided for in this Trust Agreement, or for the purpose of any other action, the
Administrators or Property Trustee may from time to time fix a date, not more than 90 days prior to the date of any meeting of Holders or the payment of a distribution or other action, as the case may be, as a record date for the determination
of the identity of the Holders of record for such purposes. 
  
 SECTION 6.8. Acts of Holders. 
  
 Any
request, demand, authorization, direction, notice, consent, waiver or other action provided or permitted by this Trust Agreement to be given, made or taken by Holders may be embodied in and evidenced by one or more instruments of substantially
similar tenor signed by such Holders in person or by an agent duly appointed in writing; and, except as otherwise expressly provided herein, such action shall become effective when such instrument or instruments are delivered to the Property
Trustee. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as an “Act” of the Holders signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Trust Agreement and (subject to Section 8.1) conclusive in favor of the Issuer Trustees, if made in the manner provided in this Section.

  
 The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such execution or by a certificate of a notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or
writing acknowledged to him the execution thereof. Where such execution is by a signer acting in a capacity other than his individual capacity, such certificate or affidavit shall also constitute sufficient proof of his authority. The fact and date
of the execution of any such instrument or writing, or the authority of the Person executing the same, may also be proved in any other manner which any Issuer Trustee or Administrator receiving the same deems sufficient. 
  
 The ownership of Trust Securities shall be proved by the Securities Register.

  
 Any request, demand, authorization, direction, notice,
consent, waiver or other Act of the Holder of any Trust Security shall bind every future Holder of the same Trust Security and the Holder of every Trust Security issued upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered to be done by the Issuer Trustees, the Administrators or the Issuer Trust in reliance thereon, whether or not notation of such action is made upon such Trust Security. 
  
 Without limiting the foregoing, a Holder entitled hereunder to take any
action hereunder with regard to any particular Trust Security may do so with regard to all or any part of the Liquidation Amount of such Trust Security or by one or more duly appointed agents each of which may do so pursuant to such appointment with
regard to all or any part of such Liquidation Amount. 
  

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 If any dispute shall arise among the Holders, the Administrators or the Issuer Trustees with respect to
the authenticity, validity or binding nature of any request, demand, authorization, direction, consent, waiver or other Act of such Holder or Issuer Trustee under this Article VI, then the determination of such matter by the Property Trustee
shall be conclusive with respect to such matter. 
  
 SECTION
6.9. Inspection of Records. 
  
 Upon reasonable notice
to the Administrators and the Property Trustee, the records of the Issuer Trust shall be open to inspection by Holders during normal business hours for any purpose reasonably related to such Holder’s interest as a Holder. 
  
 ARTICLE VII 
  
 REPRESENTATIONS AND WARRANTIES 
  
 SECTION 7.1. Representations and Warranties of the Property Trustee and
the Delaware Trustee. 
  
 The Property Trustee and the
Delaware Trustee, each severally on behalf of and as to itself, hereby represents and warrants for the benefit of the Depositor and the Holders that: 
  
 (a) The Property Trustee is a banking corporation with trust powers, duly organized, validly existing and in good standing under the laws of the State of
Delaware with the trust powers and authority to execute and deliver, and to carry out and perform its obligations under the terms of this Trust Agreement. 
  
 (b) The execution, delivery and performance by the Property Trustee of this Trust Agreement have been duly authorized by all necessary corporate action on
the part of the Property Trustee; and this Trust Agreement has been duly executed and delivered by the Property Trustee, and constitutes a legal, valid and binding obligation of the Property Trustee, enforceable against it in accordance with its
terms, subject to applicable bankruptcy, reorganization, receivership, conservatorship, moratorium, insolvency, and other similar laws affecting creditors’ rights generally and to general principles of equity and the discretion of the court
(regardless of whether the enforcement of such remedies is considered in a proceeding in equity or at law). 
  
 (c) The execution, delivery and performance of this Trust Agreement by the Property Trustee do not conflict with or constitute a breach of the certificate
of incorporation or by-laws of the Property Trustee. 
  
 (d) At
Closing, the Property Trustee has not knowingly created any Liens on the Trust Securities. 
  

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 (e) No consent, approval or authorization of, or registration with or notice to, any state or federal
banking authority is required for the execution, delivery or performance by the Property Trustee, of this Trust Agreement. 
  
 (f) The Delaware Trustee is duly organized, validly existing and in good standing under the laws of the State of Delaware, with the trust powers and
authority to execute and deliver, and to carry out and perform its obligations under the terms of, this Trust Agreement. 
  
 (g) The execution, delivery and performance by the Delaware Trustee of this Trust Agreement have been duly authorized by all necessary corporate action on
the part of the Delaware Trustee; and this Trust Agreement has been duly executed and delivered by the Delaware Trustee, and constitutes a legal, valid and binding obligation of the Delaware Trustee, enforceable against it in accordance with its
terms, subject to applicable bankruptcy, reorganization, receivership, conservatorship, moratorium, insolvency, and other similar laws affecting creditors’ right generally and to general principles of equity and the discretion of the court
(regardless of whether the enforcement of such remedies is considered in a proceeding in equity or at law). 
  
 (h) The execution, delivery and performance of this Trust Agreement by the Delaware Trustee do not conflict with or constitute a breach of the certificate
of incorporation or by-laws of the Delaware Trustee. 
  
 (i) No
consent, approval or authorization of, or registration with or notice to any state or Federal banking authority is required for the execution, delivery or performance by the Delaware Trustee, of this Trust Agreement. 
  
 (j) The Delaware Trustee is an entity that has its principal place of
business in the State of Delaware. 
  
 SECTION 7.2.
Representations and Warranties of Depositor. 
  
 The
Depositor hereby represents and warrants for the benefit of the Holders that: 
  
 (a) The Trust Securities Certificates issued at Closing on behalf of the Issuer Trust have been duly authorized and will have been duly and validly executed, and, subject to payment therefor, issued and delivered by
the Issuer Trustees pursuant to the terms and provisions of, and in accordance with the requirements of, this Trust Agreement, and the Holders will be, as of each such date, entitled to the benefits of this Trust Agreement; and 
  
 (b) There are no taxes, fees or other governmental charges payable by the
Issuer Trust (or the Issuer Trustees on behalf of the Issuer Trust) under the laws of the State of Delaware or any political subdivision thereof in connection with the execution, delivery and performance by either the Property Trustee or the
Delaware Trustee, as the case may be, of this Trust Agreement. 
  

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 ARTICLE VIII

  
 THE ISSUER TRUSTEES; THE ADMINISTRATORS 

 
 SECTION 8.1. Certain Duties and Responsibilities.

  
 (a) The duties and responsibilities of the Issuer Trustees
and the Administrators shall be as provided by this Trust Agreement and, in the case of the Property Trustee, by the Trust Indenture Act. Notwithstanding the foregoing, no provision of this Trust Agreement shall require the Issuer Trustees or the
Administrators to expend or risk their own funds or otherwise incur any financial liability in the performance of any of their duties hereunder, or in the exercise of any of their rights or powers, if they shall have reasonable grounds for believing
that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. Whether or not herein expressly so provided, every provision of this Trust Agreement relating to the conduct or affecting the
liability of or affording protection to the Issuer Trustees or the Administrators shall be subject to the provisions of this Section. Nothing in this Trust Agreement shall be construed to release an Administrator or an Issuer Trustee from liability
for its own negligent action, its own negligent failure to act, or its own willful misconduct. To the extent that, at law or in equity, an Issuer Trustee or Administrator has duties and liabilities relating to the Issuer Trust or to the Holders,
such Issuer Trustee or Administrator shall not be liable to the Issuer Trust or to any Holder for such Issuer Trustee’s or Administrator’s good faith reliance on the provisions of this Trust Agreement. The provisions of this Trust
Agreement, to the extent that they restrict the duties and liabilities of the Issuer Trustees and Administrators otherwise existing at law or in equity, are agreed by the Depositor and the Holders to replace such other duties and liabilities of the
Issuer Trustees and Administrators. 
  
 (b) All payments made by
the Property Trustee or a Paying Agent in respect of the Trust Securities shall be made only from the revenue and proceeds from the Trust Property and only to the extent that there shall be sufficient revenue or proceeds from the Trust Property to
enable the Property Trustee or a Paying Agent to make payments in accordance with the terms hereof. Each Holder, by its acceptance of a Trust Security, agrees that it will look solely to the revenue and proceeds from the Trust Property to the extent
legally available for distribution to it as herein provided and that neither the Issuer Trustees nor the Administrators are personally liable to it for any amount distributable in respect of any Trust Security or for any other liability in respect
of any Trust Security. This Section 8.1(b) does not limit the liability of the Issuer Trustees expressly set forth elsewhere in this Trust Agreement or, in the case of the Property Trustee, in the Trust Indenture Act. 
  
 (c) The Property Trustee, before the occurrence of any Event of Default and
after the curing of all Events of Default that may have occurred, shall undertake to perform only such duties as are specifically set forth in this Trust Agreement (including pursuant to Section 10.10), and no implied covenants shall be read
into this Trust Agreement against the Property Trustee. If an Event of Default has occurred (that has not been cured or waived pursuant to Section 5.13 of the Indenture), the Property Trustee shall enforce this Trust Agreement for the benefit
of the Holders and shall exercise such of the rights and powers vested in it by this Trust 

  

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Agreement, and use the same degree of care and skill in its exercise thereof, as a prudent person would exercise or use under the circumstances in the
conduct of his or her own affairs. 
  
 (d) No provision of this
Trust Agreement shall be construed to relieve the Property Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that: 
  
 (i) prior to the occurrence of any Event of Default and
after the curing or waiving of all such Events of Default that may have occurred: 
  
 (A) the duties and obligations of the Property Trustee shall be determined solely by the express provisions of this Trust Agreement
(including pursuant to Section 10.10), and the Property Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Trust Agreement (including pursuant to Section 10.10); and

  
 (B) in the absence of bad faith on the part
of the Property Trustee, the Property Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Property Trustee and conforming to the
requirements of this Trust Agreement; but in the case of any such certificates or opinions that by any provision hereof or of the Trust Indenture Act are specifically required to be furnished to the Property Trustee, the Property Trustee shall be
under a duty to examine the same to determine whether or not they conform to the requirements of this Trust Agreement; 
  
 (ii) the Property Trustee shall not be liable for any error of judgment made in good faith by an authorized officer of the Property
Trustee, unless it shall be proved that the Property Trustee was negligent in ascertaining the pertinent facts; 
  
 (iii) the Property Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance
with the direction of the Holders of at least a Majority in Liquidation Amount of the Capital Securities relating to the time, method and place of conducting any proceeding for any remedy available to the Property Trustee, or exercising any trust or
power conferred upon the Property Trustee under this Trust Agreement; 
  
 (iv) the Property Trustee’s sole duty with respect to the custody, safe keeping and physical preservation of the Junior Subordinated Debentures and the Payment Account shall be to deal with such property in a
similar manner as the Property Trustee deals with similar property for its own account, subject to the protections and limitations on liability afforded to the Property Trustee under this Trust Agreement and the Trust Indenture Act; 
  
 (v) the Property Trustee shall not be liable for any
interest on any money received by it except as it may otherwise agree with the Depositor; and money 

  

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held by the Property Trustee need not be segregated from other funds held by it except in relation to the Payment Account maintained by the Property Trustee
pursuant to Section 3.1 and except to the extent otherwise required by law; 
  
 (vi) the Property Trustee shall not be responsible for monitoring the compliance by the Administrators or the Depositor with their
respective duties under this Trust Agreement, nor shall the Property Trustee be liable for the default or misconduct of any other Issuer Trustee, the Administrators or the Depositor; and 
  
 (vii) no provision of this Trust Agreement shall require the Property Trustee to expend or risk its own
funds or otherwise incur personal financial liability in the performance of any of its duties or in the exercise of any of its rights or powers, if the Property Trustee shall have reasonable grounds for believing that the repayment of such funds or
liability is not reasonably assured to it under the terms of this Trust Agreement or adequate indemnity against such risk or liability is not reasonably assured to it. 
  
 (e) The Administrators shall not be responsible for monitoring the compliance by the Issuer Trustees or the Depositor with
their respective duties under this Trust Agreement, nor shall any Administrator be liable for the default or misconduct of any other Administrator, the Issuer Trustees or the Depositor. 
  
 SECTION 8.2. Certain Notices. 
  
 (a) Within five Business Days after the occurrence of any Event of Default actually known to a Responsible Officer of the
Property Trustee, the Property Trustee shall transmit, in the manner and to the extent provided in Section 10.8, notice of such Event of Default to the Holders and the Administrators, unless such Event of Default shall have been cured or
waived. 
  
 (b) Within five Business Days after the receipt of
notice of the Depositor’s exercise of its right to defer the payment of interest on the Junior Subordinated Debentures pursuant to the Indenture, the Property Trustee shall transmit, in the manner and to the extent provided in
Section 10.8, notice of such exercise to the Holders and the Administrators, unless such exercise shall have been revoked. 
  
 SECTION 8.3. Certain Rights of Property Trustee. 
  
 Subject to the provisions of Section 8.1: 
  
 (a) the Property Trustee may conclusively rely and shall be fully protected in acting or refraining from acting in good faith upon any resolution, Opinion
of Counsel, certificate, written representation of a Holder or transferee, certificate of auditors or any other certificate, statement, instrument, opinion, report, notice, request, consent, order, appraisal, bond, debenture, note, other evidence of
indebtedness or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties; 
  

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 (b) any direction or act of the Depositor contemplated by this Trust Agreement shall be sufficiently
evidenced by an Officers’ Certificate; 
  
 (c) the Property
Trustee shall have no duty to see to any recording, filing or registration of any instrument (including any financing or continuation statement or any filing under tax or securities laws) or any re-recording, refiling or re-registration thereof;

  
 (d) the Property Trustee may consult with counsel of its own
choosing (which counsel may be counsel to the Depositor or any of its Affiliates, and may include any of its employees) and the advice of such counsel shall be full and complete authorization and protection in respect of any action taken suffered or
omitted by it hereunder in good faith and in reliance thereon and in accordance with such advice; the Property Trustee shall have the right at any time to seek instructions concerning the administration of this Trust Agreement from any court of
competent jurisdiction; 
  
 (e) the Property Trustee shall be
under no obligation to exercise any of the rights or powers vested in it by this Trust Agreement at the request or direction of any of the Holders pursuant to this Trust Agreement, unless such Holders shall have offered to the Property Trustee
security or indemnity satisfactory to it against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction; provided that nothing contained in this Section 8.3(e) shall be taken to
relieve the Property Trustee, upon the occurrence of an Event of Default, of its obligation to exercise the rights and powers vested in it by this Trust Agreement; 
  
 (f) the Property Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond, debenture, note or other evidence of indebtedness or other paper or document, unless requested in writing to do so by one or more Holders, but the
Property Trustee may make such further inquiry or investigation into such facts or matters as it may see fit; 
  
 (g) the Property Trustee may execute any of the trusts or powers hereunder or perform any of its duties hereunder either directly or by or through its
agents or attorneys, provided that the Property Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder; 
  
 (h) whenever in the administration of this Trust Agreement the Property
Trustee shall deem it desirable to receive instructions with respect to enforcing any remedy or right or taking any other action hereunder, the Property Trustee (i) may request instructions from the Holders (which instructions may only be given
by the Holders of the same proportion in Liquidation Amount of the Trust Securities as would be entitled to direct the Property Trustee under the terms of the Trust Securities in respect of such remedy, right or action), (ii) may refrain from
enforcing such remedy or right or taking such other action until such instructions are received, and (iii) shall be fully protected in acting in accordance with such instructions; and 
  

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 (i) except as otherwise expressly provided by this Trust Agreement, the Property Trustee shall not be
under any obligation to take any action that is discretionary under the provisions of this Trust Agreement. 
  
 No provision of this Trust Agreement shall be deemed to impose any duty or obligation on any Issuer Trustee or Administrator to perform any act or acts or
exercise any right, power, duty or obligation conferred or imposed on it, in any jurisdiction in which it shall be illegal, or in which the Property Trustee shall be unqualified or incompetent in accordance with applicable law, to perform any such
act or acts, or to exercise any such right, power, duty or obligation. No permissive power or authority available to any Issuer Trustee or Administrator shall be construed to be a duty. 
  
 SECTION 8.4. Not Responsible for Recitals or Issuance of Securities. 
  
 The recitals contained herein and in the Trust Securities Certificates shall
be taken as the statements of the Issuer Trust, and neither the Issuer Trustees nor the Administrators assume any responsibility for their correctness. The Issuer Trustees and the Administrators shall not be accountable for the use or application by
the Depositor of the proceeds of the Junior Subordinated Debentures. 
  
 SECTION 8.5. May Hold Securities. 
  
 The
Depositor, the Administrators, any Issuer Trustee or any other agent of any Issuer Trustee or the Issuer Trust, in its individual or any other capacity, may become the owner or pledgee of Trust Securities and, subject to Sections 5.5(c), 8.8 and
8.13 and except as provided in the definition of the term “Outstanding” in Article I, may otherwise deal with the Issuer Trust with the same rights it would have if it were not the Depositor, an Administrator, Issuer Trustee or such
other agent. 
  
 SECTION 8.6. Compensation; Indemnity;
Fees. 
  
 The Depositor agrees: 
  
 (a) to pay to the Issuer Trustees from time to time reasonable compensation
for all services rendered by them hereunder (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust); 
  
 (b) to reimburse the Issuer Trustees upon request for all reasonable expenses, disbursements and advances incurred or made
by the Issuer Trustees in accordance with any provision of this Trust Agreement (including the reasonable compensation, expenses and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to
their negligence or willful misconduct; and 
  
 (c) to the fullest
extent permitted by applicable law, to indemnify and hold harmless (i) each Issuer Trustee, (ii) each Administrator, (iii) any Affiliate of any Issuer Trustee, (iv) any officer, director, shareholder, employee, representative or
agent of any Issuer Trustee, 

  

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and (v) any employee or agent of the Issuer Trust, (referred to herein as an “Indemnified Person”) from and against any loss, damage,
liability, tax, penalty, expense or claim of any kind or nature whatsoever incurred by such Indemnified Person arising out of or in connection with the creation, operation or dissolution of the Issuer Trust or any act or omission performed or
omitted by such Indemnified Person in good faith on behalf of the Issuer Trust and in a manner such Indemnified Person reasonably believed to be within the scope of authority conferred on such Indemnified Person by this Trust Agreement, except that
no Indemnified Person shall be entitled to be indemnified in respect of any loss, damage or claim incurred by such Indemnified Person by reason of negligence or willful misconduct with respect to such acts or omissions. 
  
 The provisions of this Section 8.6 shall survive the termination of this
Trust Agreement and the resignation or removal of the Indemnified Persons. 
  
 The obligation of the Depositor under this Section 8.6 to compensate, reimburse and indemnify the Issuer Trustees shall be secured by a Lien upon all Trust Property (except funds held in trust for the benefit of
Holders of particular Trust Securities), but only to the extent of the interest of the Holder of the Common Securities therein. 
  
 The Depositor, any Administrator and any Issuer Trustee may engage in or possess an interest in other business ventures of any nature or description,
independently or with others, similar or dissimilar to the business of the Issuer Trust, and the Issuer Trust and the Holders of Trust Securities shall have no rights by virtue of this Trust Agreement in and to such independent ventures or the
income or profits derived therefrom, and the pursuit of any such venture, even if competitive with the business of the Issuer Trust, shall not be deemed wrongful or improper. Neither the Depositor, any Administrator, nor any Issuer Trustee shall be
obligated to present any particular investment or other opportunity to the Issuer Trust even if such opportunity is of a character that, if presented to the Issuer Trust, could be taken by the Issuer Trust, and the Depositor, any Administrator or
any Issuer Trustee shall have the right to take for its own account (individually or as a partner or fiduciary) or to recommend to others any such particular investment or other opportunity. Any Issuer Trustee may engage or be interested in any
financial or other transaction with the Depositor or any Affiliate of the Depositor, or may act as depository for, trustee or agent for, or act on any committee or body of holders of, securities or other obligations of the Depositor or its
Affiliates. 
  
 SECTION 8.7. Corporate Property Trustee
Required; Eligibility of Trustees and Administrators. 
  
 (a) There shall at all times be a Property Trustee hereunder with respect to the Trust Securities. The Property Trustee shall be a Person that is a national or state chartered bank and eligible pursuant to the Trust Indenture Act to act as
such and has a combined capital and surplus of at least $100,000,000. If any such Person publishes reports of condition at least annually, pursuant to law or to the requirements of its supervising or examining authority, then for the purposes of
this Section, the combined capital and surplus of such Person shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time the Property Trustee with respect to the Trust
Securities shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect hereinafter specified in this Article VIII. At the time of appointment, 

  

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the Property Trustee must have securities rated in one of the three highest rating categories by a nationally recognized statistical rating organization.

  
 (b) There shall at all times be one or more Administrators
hereunder. Each Administrator shall be either a natural person who is at least 21 years of age or a legal entity that shall act through one or more persons authorized to bind that entity. An employee, officer or Affiliate of the Depositor may serve
as an Administrator. 
  
 (c) There shall at all times be a
Delaware Trustee. The Delaware Trustee shall either be (i) a natural person who is at least 21 years of age and a resident of the State of Delaware or (ii) a legal entity with its principal place of business in the State of Delaware and
that otherwise meets the requirements of applicable Delaware law that shall act through one or more persons authorized to bind such entity. 
  
 SECTION 8.8. Conflicting Interests. 
  
 (a) If the Property Trustee has or shall acquire a conflicting interest within the meaning of the Trust Indenture Act, the Property Trustee shall either
eliminate such interest or resign, to the extent and in the manner provided by, and subject to the provisions of, the Trust Indenture Act and this Trust Agreement. 
  
 (b) The Guarantee and the Indenture shall be deemed to be sufficiently described in this Trust Agreement for the purposes of
clause (i) of the first proviso contained in Section 310(b) of the Trust Indenture Act. 
  
 SECTION 8.9. Co-Trustees and Separate Trustee. 
  
 Unless an Event of Default shall have occurred and be continuing, at any time or times, for the purpose of meeting the legal requirements of the Trust
Indenture Act or of any jurisdiction in which any part of the Trust Property may at the time be located, the Property Trustee shall have power to appoint, and upon the written request of the Property Trustee, the Depositor and the Administrators
shall for such purpose join with the Property Trustee in the execution, delivery, and performance of all instruments and agreements necessary or proper to appoint, one or more Persons approved by the Property Trustee either to act as co-trustee,
jointly with the Property Trustee, of all or any part of such Trust Property, or to the extent required by law to act as separate trustee of any such property, in either case with such powers as may be provided in the instrument of appointment, and
to vest in such Person or Persons in the capacity aforesaid, any property, title, right or power deemed necessary or desirable, subject to the other provisions of this Section. Any co-trustee or separate trustee appointed pursuant to this Section
shall either be (i) a natural person who is at least 21 years of age and a resident of the United States or (ii) a legal entity with its principal place of business in the United States that shall act through one or more persons authorized
to bind such entity. 
  
 Should any written instrument from the
Depositor be required by any co-trustee or separate trustee so appointed for more fully confirming to such co-trustee or separate trustee such 

  

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property, title, right, or power, any and all such instruments shall, on request, be executed, acknowledged and delivered by the Depositor. 
  
 Every co-trustee or separate trustee shall, to the extent permitted by law,
but to such extent only, be appointed subject to the following terms, namely: 
  
 (a) The Trust Securities shall be executed by one or more Administrators, and the Trust Securities shall be authenticated and delivered by the Property Trustee and all rights, powers, duties, and obligations hereunder
in respect of the custody of securities, cash and other personal property held by, or required to be deposited or pledged with, the Property Trustee specified hereunder, shall be exercised, solely by the Property Trustee and not by such co-trustee
or separate trustee. 
  
 (b) The rights, powers, duties, and
obligations hereby conferred or imposed upon the Property Trustee in respect of any property covered by such appointment shall be conferred or imposed upon and exercised or performed by the Property Trustee and such co-trustee or separate trustee
jointly, as shall be provided in the instrument appointing such co-trustee or separate trustee, except to the extent that under any law of any jurisdiction in which any particular act is to be performed, the Property Trustee shall be incompetent or
unqualified to perform such act, in which event such rights, powers, duties and obligations shall be exercised and performed by such co-trustee or separate trustee. 
  
 (c) The Property Trustee at any time, by an instrument in writing executed by it, with the written concurrence of the
Depositor, may accept the resignation of or remove any co-trustee or separate trustee appointed under this Section, and, in case a Debenture Event of Default has occurred and is continuing, the Property Trustee shall have power to accept the
resignation of, or remove, any such co-trustee or separate trustee without the concurrence of the Depositor. Upon the written request of the Property Trustee, the Depositor shall join with the Property Trustee in the execution, delivery and
performance of all instruments and agreements necessary or proper to effectuate such resignation or removal. A successor to any co-trustee or separate trustee so resigned or removed may be appointed in the manner provided in this Section 8.9.

  
 (d) No co-trustee or separate trustee hereunder shall be
personally liable by reason of any act or omission of the Property Trustee or any other trustee hereunder. 
  
 (e) The Property Trustee shall not be liable by reason of any act of a co-trustee or separate trustee. 
  
 (f) Any Act of Holders delivered to the Property Trustee shall be deemed to
have been delivered to each such co-trustee and separate trustee. 
  
 SECTION 8.10. Resignation and Removal; Appointment of Successor. 
  
 No resignation or removal of any Issuer Trustee (the “Relevant Trustee”) and no appointment of a successor trustee pursuant to this Article shall become effective until the 

  

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acceptance of appointment by the successor trustee in accordance with the applicable requirements of Section 8.11. 
  
 Subject to the immediately preceding paragraph, a Relevant Trustee may resign
at any time by giving written notice thereof to the Holders. The Holder of the Common Securities shall appoint a successor by requesting from at least three Persons meeting the eligibility requirements such Persons’ expenses and charges to
serve as the successor trustee on a form provided by the Administrators, and selecting the Person who agrees to the lowest expenses and charges. If the instrument of acceptance by the successor trustee required by Section 8.11 shall not have
been delivered to the Relevant Trustee within 60 days after the giving of such notice of resignation, the Relevant Trustee may petition, at the expense of the Issuer Trust, any court of the State of Delaware for the appointment of a successor
Relevant Trustee. 
  
 The Property Trustee or the Delaware Trustee
may be removed at any time (i) for cause (including upon the occurrence of an Event of Default described in subparagraph (5) of the definition thereof with respect to the Relevant Trustee) by the Holder of the Common Securities, or
(ii) if a Debenture Event of Default shall have occurred and be continuing at any time, by Act of the Holders of at least a Majority in Liquidation Amount of the Capital Securities, delivered to the Relevant Trustee (in its individual capacity
and on behalf of the Issuer Trust). 
  
 If a Relevant Trustee
shall be removed or become incapable of acting as Issuer Trustee, or if any vacancy shall occur in the office of any Issuer Trustee for any cause, the Holder of the Common Securities shall promptly appoint a successor Relevant Trustee or Trustees,
and such successor Issuer Trustee shall comply with the applicable requirements of Section 8.11, provided, however, if a Debenture Event of Default shall have occurred and be continuing at such time, the Holders of the Capital
Securities, by Act of the Holders of record of not less than 25% in aggregate Liquidation Amount of the Capital Securities then Outstanding delivered to such Relevant Trustee, shall appoint such successor trustee. If no successor trustee shall have
been so appointed by the Holder of the Common Securities or the Holders of the Capital Securities, as applicable, or shall not have accepted appointment in the manner required by Section 8.11 hereof, any Holder, on behalf of himself and all
others similarly situated, or any other Issuer Trustee, may petition any court in the State of Delaware for the appointment of a successor trustee. 
  
 The Property Trustee shall give notice of each resignation and each removal of a Relevant Trustee and each appointment of a successor trustee to all
Holders in the manner provided in Section 10.8 and shall give notice to the Depositor and to the Administrators. Each notice shall include the name of the Relevant Trustee and the address of its Corporate Trust Office if it is the Property
Trustee. 
  
 Notwithstanding the foregoing or any other provision
of this Trust Agreement, in the event any Delaware Trustee who is a natural person dies or becomes, in the opinion of the Holder of the Common Securities, incompetent or incapacitated, the vacancy created by such death, incompetence or incapacity
may be filled by the Property Trustee following the procedures regarding expenses and charges set forth above (with the successor in each case being 

  

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a Person who satisfies the eligibility requirements for the Delaware Trustee, as the case may be, set forth in Section 8.7). 
  
 SECTION 8.11. Acceptance of Appointment by Successor.

  
 In case of the appointment hereunder of a successor
Relevant Trustee, the retiring Relevant Trustee and each such successor Relevant Trustee (if requested by the Depositor) with respect to the Trust Securities shall execute, acknowledge and deliver an amendment hereto wherein each successor Relevant
Trustee shall accept such appointment and which (a) shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, each successor Relevant Trustee all the rights, powers, trusts and duties of the
retiring Relevant Trustee with respect to the Trust Securities and the Issuer Trust, and (b) shall add to or change any of the provisions of this Trust Agreement as shall be necessary to provide for or facilitate the administration of the
Issuer Trust by more than one Relevant Trustee, it being understood that nothing herein or in such amendment shall constitute such Relevant Trustee a co-trustee, and upon the execution and delivery of such amendment, the resignation or removal of
the retiring Relevant Trustee shall become effective to the extent provided therein and each such successor Relevant Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the
retiring Relevant Trustee; but, on request of the Issuer Trust or any successor Relevant Trustee such retiring Relevant Trustee shall duly assign, transfer and deliver to such successor Relevant Trustee all Trust Property, all proceeds thereof and
money held by such retiring Relevant Trustee hereunder with respect to the Trust Securities and the Issuer Trust. 
  
 Upon request of any such successor Relevant Trustee, the Issuer Trust shall execute any and all instruments for more fully and certainly vesting in and
confirming to such successor Relevant Trustee all such rights, powers and trusts referred to in the preceding paragraph. 
  
 No successor Relevant Trustee shall accept its appointment unless at the time of such acceptance such successor Relevant Trustee shall be qualified and
eligible under this Article VIII. 
  
 SECTION 8.12.
Merger, Conversion, Consolidation or Succession to Business. 
  
 Any Person into which the Property Trustee or the Delaware Trustee may be merged or converted or with which it may be consolidated, or any Person resulting from any merger, conversion or consolidation to which such Relevant Trustee shall be
a party, or any Person succeeding to all or substantially all the corporate trust business of such Relevant Trustee, shall be the successor of such Relevant Trustee hereunder, provided that such Person shall be otherwise qualified and
eligible under this Article VIII, without the execution or filing of any paper or any further act on the part of any of the parties hereto. 
  

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 SECTION 8.13. Preferential Collection of Claims Against Depositor or Issuer Trust.

  
 If and when the Property Trustee shall be or become a
creditor of the Depositor (or any other obligor upon the Trust Securities), the Property Trustee shall be subject to the provisions of the Trust Indenture Act regarding the collection of claims against the Depositor (or any such other obligor) only
if this Trust Agreement is subject to the Trust Indenture Act. 
  
 SECTION 8.14. Trustee May File Proofs of Claim. 
  
 In case of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other similar judicial proceeding relative to the Issuer Trust or any other obligor upon the Trust Securities or the
property of the Issuer Trust or of such other obligor, the Property Trustee (irrespective of whether any Distributions on the Trust Securities shall then be due and payable and irrespective of whether the Property Trustee shall have made any demand
on the Issuer Trust for the payment of any past due Distributions) shall be entitled and empowered, to the fullest extent permitted by law, by intervention in such proceeding or otherwise: 
  
 (a) to file and prove a claim for the whole amount of any Distributions owing
and unpaid in respect of the Trust Securities and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Property Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Property Trustee, its agents and counsel) and of the Holders allowed in such judicial proceeding; and 
  
 (b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same; and any custodian, receiver,
assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Property Trustee and, in the event the Property Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Property Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Property Trustee, its agents and counsel, and any other amounts due the
Property Trustee. 
  
 Nothing contained herein shall be deemed to
authorize the Property Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or compensation affecting the Trust Securities or the rights of any Holder thereof or to
authorize the Property Trustee to vote in respect of the claim of any Holder in any such proceeding. 
  
 SECTION 8.15. Reports by Property Trustee. 
  
 (a) Not later than January 31 of each year commencing with January 31, 2006, the Property Trustee shall transmit to all Holders in accordance
with Section 10.8, and to the Depositor, a brief report dated as of the immediately preceding December 31 with respect to: 
  
 (i) its eligibility under Section 8.7 or, in lieu thereof, if to the best of its knowledge it has continued to be eligible under said
Section, a written statement to such effect; and 
  

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 (ii) any change in the property and funds in its possession as Property Trustee since the
date of its last report and any action taken by the Property Trustee in the performance of its duties hereunder which it has not previously reported and which in its opinion materially affects the Trust Securities. 
  
 (b) In addition the Property Trustee shall transmit to Holders such reports
concerning the Property Trustee and its actions under this Trust Agreement as may be required pursuant to the Trust Indenture Act at the times and in the manner provided pursuant thereto. 
  
 (c) A copy of each such report shall, at the time of such transmission to Holders, be filed by the Property Trustee with the
Depositor. 
  
 SECTION 8.16. Reports to the Property
Trustee. 
  
 The Depositor and the Administrators on
behalf of the Issuer Trust shall provide to the Property Trustee such documents, reports and information as required or specified by Section 314 of the Trust Indenture Act (if any and to the extent applicable) and the compliance certificate
required or specified by Section 314(a) of the Trust Indenture Act in the form, in the manner and at the times set forth in Section 314 of the Trust Indenture Act. The Depositor and the Administrators shall annually file with the Property
Trustee a certificate specifying whether such Person is in compliance with all the terms and covenants applicable to such Person hereunder. 
  
 SECTION 8.17. Evidence of Compliance with Conditions Precedent. 
  
 Each of the Depositor and the Administrators on behalf of the Issuer Trust shall provide to the Property Trustee such
evidence of compliance with any conditions precedent, if any, provided for in this Trust Agreement that relate to any of the matters set forth in Section 314(c) of the Trust Indenture Act. Any certificate or opinion required to be given by an
officer pursuant to Section 314(c)(1) of the Trust Indenture Act shall be given in the form of an Officers’ Certificate. 
  
 SECTION 8.18. Number of Issuer Trustees. 
  
 (a) The number of Issuer Trustees shall be two; provided, however, the Property Trustee and the Delaware Trustee may be the same Person, in which
case, the number of Issuer Trustees may be one. 
  
 (b) If an
Issuer Trustee ceases to hold office for any reason, a vacancy shall occur. The vacancy shall be filled with an Issuer Trustee appointed in accordance with Section 8.10. 
  

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 (c) The death, resignation, retirement, removal, bankruptcy, incompetence or incapacity to perform the
duties of an Issuer Trustee shall not operate to dissolve, terminate or annul the Issuer Trust or terminate this Trust Agreement. 
  
 SECTION 8.19. Delegation of Power. 
  
 (a) Any Administrator may, by power of attorney consistent with applicable law, delegate to any other natural person over the age of 21 his or her power
for the purpose of executing any documents contemplated in Section 2.8(a) or making any governmental filing; and 
  
 (b) The Administrators shall have power to delegate from time to time to such of their number the doing of such things and the execution of such
instruments either in the name of the Issuer Trust or the names of the Administrators or otherwise as the Administrators may deem expedient, to the extent such delegation is not prohibited by applicable law or contrary to the provisions of this
Trust Agreement. 
  
 SECTION 8.20. Appointment of
Administrators. 
  
 (a) The Administrators shall be
appointed by the Holder of the Common Securities and may be removed by the Holder of the Common Securities or may resign at any time. Upon any resignation or removal, the Holder of the Common Securities shall appoint a successor Administrator. Each
Administrator shall execute this Trust Agreement thereby agreeing to comply with, and be legally bound by, all of the terms, conditions and provisions of this Trust Agreement. If at any time there is no Administrator, the Property Trustee or any
Holder who has been a Holder of Trust Securities for at least six months may petition any court of competent jurisdiction for the appointment of one or more Administrators. 
  
 (b) Whenever a vacancy in the number of Administrators shall occur, until such vacancy is filled by the appointment of an
Administrator in accordance with this Section 8.20, the Administrators in office, regardless of their number (and notwithstanding any other provision of this Agreement), shall have all the powers granted to the Administrators and shall
discharge all the duties imposed upon the Administrators by this Trust Agreement. 
  
 (c) Notwithstanding the foregoing, or any other provision of this Trust Agreement, in the event any Administrator who is a natural person dies or becomes, in the opinion of the Holder of the Common Securities,
incompetent, or incapacitated, the vacancy created by such death, incompetence or incapacity may be filled by the Holder of the Common Securities (with the successor being a Person who satisfies the eligibility requirement for Administrators, as the
case may be, set forth in Section 8.7). 
  
 Except as
otherwise provided in this Trust Agreement, or by applicable law, any one Administrator may execute any document or otherwise take any action that the Administrators are authorized to take under this Trust Agreement. 
  

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 ARTICLE IX 

 
 DISSOLUTION, LIQUIDATION AND MERGER 
  
 SECTION 9.1. Dissolution Upon Expiration Date. 
  
 Unless earlier dissolved, the Issuer Trust shall automatically dissolve on
September 30, 2036 (the “Expiration Date”), and thereafter the Trust Property shall be distributed in accordance with Section 9.4. 
  
 SECTION 9.2. Early Dissolution. 
  
 The first to occur of any of the following events is an “Early Termination Event,” upon the occurrence of which the Issuer Trust
shall dissolve: 
  
 (a) the occurrence of the appointment of a
receiver or other similar official in any liquidation, insolvency or similar proceeding with respect to the Depositor or all or substantially all of its property, or entry by a court or other governmental agency of a decree or order and such decree
or order shall remain unstayed and undischarged for a period of 60 days, unless the Depositor shall transfer the Common Securities as provided by Section 5.11, in which case this provision shall refer instead to any such successor Holder
of the Common Securities; 
  
 (b) the written direction to the
Property Trustee from the Holder of the Common Securities at any time to dissolve the Issuer Trust and, after paying or making reasonable provision to pay all charges and obligations of the Issuer Trust in accordance with Section 3808(e) of the
Delaware Statutory Trust Act, to distribute the Junior Subordinated Debentures to Holders in exchange for the Trust Securities (which direction, subject to Section 9.4(a), is optional and wholly within the discretion of the Holder of the Common
Securities); 
  
 (c) the repayment of all of the Capital
Securities in connection with the repayment at maturity or redemption of all the Junior Subordinated Debentures; and 
  
 (d) the entry of an order for dissolution of the Issuer Trust by a court of competent jurisdiction. 
  
 SECTION 9.3. Termination. 
  
 As soon as is practicable after the occurrence of an event referred to in
Section 9.1 or 9.2, and upon the completion of the winding-up and liquidation of the Issuer Trust, the Administrators and the Issuer Trustees (each of whom is hereby authorized to take such action) shall file a certificate of cancellation with
the Secretary of State of the State of Delaware terminating the Issuer Trust and, upon such filing, the respective obligations and responsibilities of the Issuer Trustees, the Administrators and the Issuer Trust created and continued hereby shall
terminate. 
  

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 SECTION 9.4. Liquidation. 
  
 (a) If an Early Termination Event specified in clause (a), (b) or (d) of Section 9.2 occurs or upon the
Expiration Date, the Issuer Trust shall be wound-up and liquidated by the Property Trustee as expeditiously as the Property Trustee determines to be possible by distributing, after paying or making reasonable provision to pay all claims and
obligations of the Issuer Trust in accordance with Section 3808(e) of the Delaware Statutory Trust Act, to each Holder a Like Amount of Junior Subordinated Debentures, subject to Section 9.4(d). Notice of liquidation shall be given by the
Property Trustee by first-class mail, postage prepaid, mailed not later than 15 nor more than 45 days prior to the Liquidation Date to each Holder of Trust Securities at such Holder’s address appearing in the Securities Register. All
notices of liquidation shall: 
  
 (i) state the
Liquidation Date; 
  
 (ii) state that, from and
after the Liquidation Date, the Trust Securities will no longer be deemed to be Outstanding and any Trust Securities Certificates not surrendered for exchange will be deemed to represent a Like Amount of Junior Subordinated Debentures; and

  
 (iii) provide such information with respect
to the mechanics by which Holders may exchange Trust Securities Certificates for Junior Subordinated Debentures, or if Section 9.4(d) applies receive a Liquidation Distribution, as the Administrators or the Property Trustee shall deem
appropriate. 
  
 (b) Except where Section 9.2(c) or 9.4(d)
applies, in order to effect the liquidation of the Issuer Trust and distribution of the Junior Subordinated Debentures to Holders, the Property Trustee shall establish a record date for such distribution (which shall be not more than 30 days
prior to the Liquidation Date) and, either itself acting as exchange agent or through the appointment of a separate exchange agent, shall establish such procedures as it shall deem appropriate to effect the distribution of Junior Subordinated
Debentures in exchange for the Outstanding Trust Securities Certificates. 
  
 (c) Except where Section 9.2(c) or 9.4(d) applies, after the Liquidation Date, (i) the Trust Securities will no longer be deemed to be Outstanding, (ii) the Clearing Agency for the Capital Securities or
its nominee, as the registered Holder of the Global Capital Securities Certificates, shall receive a registered global certificate or certificates representing the Junior Subordinated Debentures to be delivered upon such distribution with respect to
Capital Securities held by the Clearing Agency or its nominee, and (iii) any Trust Securities Certificates not held by the Clearing Agency for the Capital Securities or its nominee as specified in clause (ii) above will be deemed to
represent Junior Subordinated Debentures having a principal amount equal to the stated Liquidation Amount of the Trust Securities represented thereby and bearing accrued and unpaid interest in an amount equal to the accumulated and unpaid
Distributions on such Trust Securities until such certificates are presented to the Securities Registrar for transfer or reissuance. 
  

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 (d) If, notwithstanding the other provisions of this Section 9.4, whether because of an order for
dissolution entered by a court of competent jurisdiction or otherwise, distribution of the Junior Subordinated Debentures is not practical, or if any Early Termination Event specified in clause (c) of Section 9.2 occurs, the Issuer Trust
shall be dissolved, and the Trust Property shall be liquidated, by the Property Trustee in such manner as the Property Trustee determines. In such event, on the date of the dissolution of the Issuer Trust, Holders will be entitled to receive out of
the assets of the Issuer Trust available for distribution to Holders, after paying or making reasonable provision to pay all claims and obligations of the Issuer Trust in accordance with Section 3808(e) of the Delaware Statutory Trust Act, an
amount equal to the aggregate of Liquidation Amount per Trust Security plus accumulated and unpaid Distributions thereon to the date of payment (such amount being the “Liquidation Distribution”). If, upon any such dissolution, the
Liquidation Distribution can be paid only in part because the Issuer Trust has insufficient assets available to pay in full the aggregate Liquidation Distribution, then, subject to the next succeeding sentence, the amounts payable by the Issuer
Trust on the Trust Securities shall be paid on a pro rata basis (based upon Liquidation Amounts). The Holder of the Common Securities will be entitled to receive Liquidation Distributions upon any such dissolution, pro rata (determined as aforesaid)
with Holders of Capital Securities, except that, if a Debenture Event of Default in Sections 5.1(1) or 5.1(2) of the Indenture has occurred and is continuing, the Capital Securities shall have a priority over the Common Securities as provided in
Section 4.3. 
  
 SECTION 9.5. Mergers, Consolidations,
Amalgamations or Replacements of the Issuer Trust. 
  
 The Issuer Trust may not merge with or into, consolidate, amalgamate, or be replaced by, or convey, transfer or lease its properties and assets substantially as an entirety to, any entity, except pursuant to this Section 9.5 or
Section 9.4. At the request of the Holder of the Common Securities, and with the consent of the Holders of at least a Majority in Liquidation Amount of the Capital Securities, but without the consent of the Issuer Trustees, the Issuer Trust may
merge with or into, consolidate, amalgamate, or be replaced by or convey, transfer or lease its properties and assets substantially as an entirety to a trust organized as such under the laws of any state; provided that (i) such successor
entity either (a) expressly assumes all of the obligations of the Issuer Trust with respect to the Capital Securities or (b) substitutes for the Capital Securities other securities having substantially the same terms as the Capital
Securities (the “Successor Capital Securities”) so long as the Successor Capital Securities have the same priority as the Capital Securities with respect to distributions and payments upon liquidation, redemption and otherwise,
(ii) a trustee of such successor entity possessing the same powers and duties as the Property Trustee is appointed to hold the Junior Subordinated Debentures, (iii) such merger, consolidation, amalgamation, replacement, conveyance,
transfer or lease does not cause the Capital Securities (including any Successor Capital Securities) to be downgraded by any nationally recognized statistical rating organization, if such Capital Securities have been rated by such nationally
recognized statistical rating organization, (iv) such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease does not adversely affect the rights, preferences and privileges of the holders of the Capital Securities
(including any Successor Capital Securities) in any material respect, (v) such successor entity has a purpose substantially identical to that of the Issuer Trust, (vi) prior to such merger, consolidation, amalgamation, 

  

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replacement, conveyance, transfer or lease, the Issuer Trust has received an Opinion of Counsel from a firm experienced in such matters to the effect that
(a) such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease does not adversely affect the rights preferences and privileges of the holders of the Capital Securities (including any Successor Capital Securities) in
any material respect, and (b) following such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease, neither the Issuer Trust nor such successor entity will be required to register as an “investment company”
under the Investment Company Act and (vii) the Depositor or any permitted transferee to whom it has transferred the Common Securities hereunder owns all of the common securities of such successor entity and guarantees the obligations of such
successor entity under the Capital Securities or Successor Capital Securities at least to the extent provided by the Guarantee. Notwithstanding the foregoing, the Issuer Trust shall not, except with the consent of Holders of 100% in Liquidation
Amount of the Capital Securities, consolidate, amalgamate, merge with or into, or be replaced by or convey, transfer or lease its properties and assets substantially as an entirety to, any other entity or permit any other entity to consolidate,
amalgamate, merge with or into, or replace it if such consolidation, amalgamation, merger, replacement, conveyance, transfer or lease would cause the Issuer Trust or the successor entity to be taxable other than as a grantor trust for United States
Federal income tax purposes. 
  
 ARTICLE X 
  
 MISCELLANEOUS PROVISIONS 
  
 SECTION 10.1. Limitation of Rights of Holders. 
  
 Except as set forth in Section 9.2, the bankruptcy, dissolution,
termination, death or incapacity of any Person having an interest, beneficial or otherwise, in Trust Securities shall not operate to terminate this Trust Agreement, nor entitle the legal or personal representatives or heirs of such Person or any
Holder for such Person, to claim an accounting, take any action or bring any proceeding in any court for a partition or winding-up of the arrangements contemplated hereby, nor otherwise affect the rights, obligations and liabilities of the parties
hereto or any of them. Any merger or similar agreement shall be executed by the Administrators on behalf of the Issuer Trust. 
  
 SECTION 10.2. Amendment. 
  
 (a) This Trust Agreement may be amended from time to time by the Holder of the Common Securities, without the consent of any Holder of the Capital
Securities (i) to cure any ambiguity, correct or supplement any provision herein which may be inconsistent with any other provision herein, or to make any other provisions with respect to matters or questions arising under this Trust Agreement,
provided, however, such amendment shall not adversely affect in any material respect the interests of any Holder or (ii) to modify, eliminate or add to any provisions of this Trust Agreement to such extent as shall be necessary to ensure
that the Issuer Trust will not be taxable other than as a grantor trust for United States Federal income tax purposes at any time that any Trust Securities are Outstanding or to ensure that the Issuer Trust will not be required to register as an
investment company under the Investment Company Act. 
  

 - 56 - 

 (b) Except as provided in Section 10.2(c) hereof, any provision of this Trust Agreement may be
amended by the Holder of the Common Securities with (i) the consent of Holders of at least a Majority in Liquidation Amount of the Capital Securities and (ii) receipt by the Issuer Trustees of an Opinion of Counsel to the effect that such
amendment or the exercise of any power granted to the Issuer Trustees in accordance with such amendment will not affect the Issuer Trust’s being taxable as a grantor trust for United States Federal income tax purposes or the Issuer Trust’s
exemption from status of an “investment company” under the Investment Company Act. 
  
 (c) In addition to and notwithstanding any other provision in this Trust Agreement, without the consent of each affected Holder, this Trust Agreement may not be amended to (i) change the amount or timing of any
Distribution on the Trust Securities or otherwise adversely affect the amount of any Distribution required to be made in respect of the Trust Securities as of a specified date or (ii) restrict the right of a Holder to institute suit for the
enforcement of any such payment on or after such date. 
  
 (d)
Notwithstanding any other provisions of this Trust Agreement, no Issuer Trustee shall enter into or consent to any amendment to this Trust Agreement which would cause the Issuer Trust to fail or cease to qualify for the exemption from status as an
“investment company” under the Investment Company Act or be taxable other than as a grantor trust for United States Federal income tax purposes. 
  
 (e) Notwithstanding anything in this Trust Agreement to the contrary, without the consent of the Depositor and the Administrators, this Trust Agreement
may not be amended in a manner that imposes any additional obligation on the Depositor or the Administrators. 
  
 (f) In the event that any amendment to this Trust Agreement is made, the Administrators or the Property Trustee shall promptly provide to the Depositor a
copy of such amendment. 
  
 (g) No amendment to this Trust
Agreement may be adopted that adversely affects the Property Trustee’s or the Delaware Trustee’s rights, duties or immunities under this Trust Agreement, except with the consent of such Property Trustee or Delaware Trustee. The Property
Trustee shall be entitled to receive an Opinion of Counsel and an Officers’ Certificate stating that any amendment to this Trust Agreement is in compliance with this Trust Agreement. 
  
 (h) Any amendments to this Trust Agreement made pursuant to Section 10.2(a) shall become effective when notice of such
amendment is given to the Holders of the Trust Securities. 
  
 SECTION 10.3. Separability. 
  
 In case any
provision in this Trust Agreement or in the Trust Securities Certificates shall be determined to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired
thereby. 
  

 - 57 - 

 SECTION 10.4. Governing Law. 
  
 THIS TRUST AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF EACH OF THE HOLDERS, THE ISSUER TRUST, THE DEPOSITOR, THE ISSUER
TRUSTEES AND THE ADMINISTRATORS SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE AND ALL RIGHTS AND REMEDIES SHALL BE GOVERNED BY SUCH LAWS WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS OF THE STATE OF
DELAWARE OR ANY OTHER JURISDICTION THAT WOULD CALL FOR THE APPLICATION OF THE LAW OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE; PROVIDED, HOWEVER, THAT THERE SHALL NOT BE APPLICABLE TO THE HOLDERS, THE ISSUER TRUST, THE DEPOSITOR, THE ISSUER
TRUSTEES, THE ADMINISTRATORS OR THIS TRUST AGREEMENT ANY PROVISION OF THE LAWS (STATUTORY OR COMMON) OF THE STATE OF DELAWARE PERTAINING TO TRUSTS OTHER THAN THE DELAWARE STATUTORY TRUST ACT THAT RELATE TO OR REGULATE, IN A MANNER INCONSISTENT WITH
THE TERMS HEREOF (A) THE FILING WITH ANY COURT OR GOVERNMENTAL BODY OR AGENCY OF TRUSTEE ACCOUNTS OR SCHEDULES OF TRUSTEE FEES AND CHARGES, (B) AFFIRMATIVE REQUIREMENTS TO POST BONDS FOR TRUSTEES, OFFICERS, AGENTS OR EMPLOYEES OF A TRUST,
(C) THE NECESSITY FOR OBTAINING COURT OR OTHER GOVERNMENTAL APPROVAL CONCERNING THE ACQUISITION, HOLDING OR DISPOSITION OF REAL OR PERSONAL PROPERTY, (D) FEES OR OTHER SUMS PAYABLE TO TRUSTEES, OFFICERS, AGENTS OR EMPLOYEES OF A TRUST,
(E) THE ALLOCATION OF RECEIPTS AND EXPENDITURES TO INCOME OR PRINCIPAL, (F) RESTRICTIONS OR LIMITATIONS ON THE PERMISSIBLE NATURE, AMOUNT OR CONCENTRATION OF TRUST INVESTMENTS OR REQUIREMENTS RELATING TO THE TITLING, STORAGE OR OTHER
MANNER OF HOLDING OR INVESTING TRUST ASSETS OR (G) THE ESTABLISHMENT OF FIDUCIARY OR OTHER STANDARDS OF RESPONSIBILITY OR LIMITATIONS ON THE ACTS OR POWERS OF TRUSTEES THAT ARE INCONSISTENT WITH THE LIMITATIONS OR LIABILITIES OR AUTHORITIES AND
POWERS OF THE ISSUER TRUSTEES OR THE ADMINISTRATOR AS SET FORTH OR REFERENCED IN THIS TRUST AGREEMENT. SECTION 3540 OF TITLE 12 OF THE DELAWARE CODE SHALL NOT APPLY TO THE ISSUER TRUST. 
  
 SECTION 10.5. Payments Due on Non-Business Day. 
  
 If the date fixed for any payment on any Trust Security shall be a day that
is not a Business Day, then such payment need not be made on such date but may be made on the next succeeding day that is a Business Day except that, if such Business Day is in the next succeeding calendar year, such payment shall be made on the
immediately preceding Business Day, in each case, with the same force and effect as though made on the date fixed for such payment, and no Distributions or interest shall accumulate on such unpaid amount for the period after such date. 

 

 - 58 - 

 SECTION 10.6. Successors. 
  
 This Trust Agreement shall be binding upon and shall inure to the benefit of any successor to the Depositor, the Issuer
Trust, the Administrators and any Issuer Trustee, including any successor by operation of law. Except in connection with a consolidation, merger or sale involving the Depositor that is permitted under Article VIII of the Indenture and pursuant
to which the assignee agrees in writing to perform the Depositor’s obligations hereunder, the Depositor shall not assign its obligations hereunder. 
  
 SECTION 10.7. Headings. 
  
 The Article and Section headings are for convenience only and shall not affect the construction of this Trust Agreement. 
  
 SECTION 10.8. Reports, Notices and Demands. 
  
 Any report, notice, demand or other communication that by any provision of
this Trust Agreement is required or permitted to be given or served to or upon any Holder or the Depositor may be given or served in writing by deposit thereof, first class postage prepaid, in the United States mail, hand delivery or facsimile
transmission, in each case, addressed, (a) in the case of a Holder of Capital Securities, to such Holder as such Holder’s name and address may appear on the Securities Register; and (b) in the case of the Holder of Common Securities
or the Depositor, to Crescent Banking Company, 7 Caring Way, Jasper, Georgia, 30143, Attention: Mr. Leland W. Brantley, Jr., facsimile no.: (678) 454-2276 or to such other address as may be specified in a written notice by the
Depositor to the Property Trustee. Such notice, demand or other communication to or upon a Holder shall be deemed to have been sufficiently given or made, for all purposes, upon hand delivery, mailing or transmission. Such notice, demand or other
communication to or upon the Depositor shall be deemed to have been sufficiently given or made only upon actual receipt of the writing by the Depositor. 
  
 Any notice, demand or other communication which by any provision of this Trust Agreement is required or permitted to be given or served to or upon the
Issuer Trust, the Property Trustee, the Delaware Trustee, the Administrators, or the Issuer Trust shall be given in writing addressed (until another address is published by the Issuer Trust) as follows: (a) with respect to the Property Trustee
to Wilmington Trust Company, 1100 North Market Street, Rodney Square North, Wilmington, Delaware 19890-0001, Attention: Corporate Trust Administration; (b) with respect to the Delaware Trustee to 1100 North Market Street, Rodney Square North,
Wilmington, Delaware 19890-0001, Attention: Corporate Trust Administration; and (c) with respect to the Administrators, to them at the address above for notices to the Depositor, marked “Attention: Crescent Capital Trust II
Administrators.” Such notice, demand or other communication to or upon the Issuer Trust or the Property Trustee shall be deemed to have been sufficiently given or made only upon actual receipt of the writing by the Issuer Trust, the Property
Trustee, or such Administrator. 
  

 - 59 - 

 SECTION 10.9. Agreement Not to Petition. 
  
 Each of the Issuer Trustees, the Administrators and the Depositor agree for
the benefit of the Holders that, until at least one year and one day after the Issuer Trust has been terminated in accordance with Article IX, they shall not file, or join in the filing of, a petition against the Issuer Trust under any
bankruptcy, insolvency, reorganization or other similar law (including, without limitation, the United States Bankruptcy Code) (collectively, “Bankruptcy Laws”) or otherwise join in the commencement of any proceeding against the
Issuer Trust under any Bankruptcy Law. In the event the Depositor takes action in violation of this Section 10.9, the Property Trustee agrees, for the benefit of Holders, that at the expense of the Depositor, it shall file an answer with the
bankruptcy court or other court or otherwise properly contest the filing of such petition by the Depositor against the Issuer Trust or the commencement of such action and raise the defense that the Depositor has agreed in writing not to take such
action and should be estopped and precluded therefrom and such other defenses, if any, as counsel for the Issuer Trustee or the Issuer Trust may assert. If any Issuer Trustee or Administrator takes action in violation of this Section 10.9, the
Depositor agrees, for the benefit of the Holders, that at the expense of the Depositor, it shall file an answer with the bankruptcy court or otherwise properly contest the filing of such petition by such Person against the Depositor or the
commencement of such action and raise the defense that such Person has agreed in writing not to take such action and should be estopped and precluded therefrom and such other defenses, if any, as counsel for the Issuer Trustee or the Issuer Trust
may assert. The provisions of this Section 10.9 shall survive the termination of this Trust Agreement. 
  
 SECTION 10.10. Trust Indenture Act; Conflict with Trust Indenture Act. 
  
 (a) Trust Indenture Act; Application. (i) This Trust Agreement is subject to the provisions of the Trust
Indenture Act that are required to be a part of this Trust Agreement and shall, to the extent applicable, be governed by such provisions; (ii) if and to the extent that any provision of this Trust Agreement limits, qualifies or conflicts with
the duties imposed by Sections 310 to 317, inclusive, of the Trust Indenture Act, such imposed duties shall control; (iii) for purposes of this Trust Agreement, the Property Trustee, to the extent permitted by applicable law and/or the rules
and regulations of the Commission, shall be the only Issuer Trustee which is a trustee for the purposes of the Trust Indenture Act; and (iv) the application of the Trust Indenture Act to this Trust Agreement shall not affect the nature of the
Capital Securities and the Common Securities as equity securities representing undivided beneficial interests in the assets of the Issuer Trust. 
  
 (b) Lists of Holders of Capital Securities. (i) Each of the Depositor and the Administrators on behalf of the Trust shall provide the Property
Trustee with such information as is required under Section 312(a) of the Trust Indenture Act at the times and in the manner provided in Section 312(a) and (ii) the Property Trustee shall comply with its obligations under Sections
310(b), 311 and 312(b) of the Trust Indenture Act. 
  
 (c)
Reports by the Property Trustee. Within 60 days after January 31 of each year commencing January 31, 2006, the Property Trustee shall provide to the Holders of the Trust Securities such reports as are required by
Section 313 of the Trust Indenture Act, if any, in 

  

 - 60 - 

 
the form, in the manner and at the times provided by Section 313 of the Trust Indenture Act. The Property Trustee shall also comply with the
requirements of Section 313(d) of the Trust Indenture Act. 
  
 (d) Periodic Reports to Property Trustee. Each of the Depositor and the Administrators on behalf of the Issuer Trust shall provide to the Property Trustee, the Commission and the Holders of the Trust Securities, as applicable, such
documents, reports and information as may be required by Section 315(a)(1) - (3) (if any) of the Trust Indenture Act and the compliance certificates required by Section 314(a)(4) and (c) of the Trust Indenture Act (provided that
any certificate to be provided pursuant to Section 314(a)(4) of the Trust Indenture Act shall be provided within 120 days of the end of each fiscal year of the Issuer Trust). 
  
 (e) Evidence of Compliance with Conditions Precedent. Each of the Depositor and the Administrators on behalf of the
Issuer Trust shall provide to the Property Trustee such evidence of compliance with any conditions precedent, if any, provided for in this Trust Agreement which relate to any of the matters set forth in Section 314(c) of the Trust Indenture
Act. Any certificate or opinion required to be given pursuant to Section 314(c) shall comply with Section 314(e) of the Trust Indenture Act. 
  
 (f) Disclosure Information. The disclosure of information as to the names and addresses of the Holders of Trust Securities in accordance with
Section 312 of the Trust Indenture Act, regardless of the source from which such information was derived, shall not be deemed to be a violation of any existing law or any law hereafter enacted which does not specifically refer to
Section 312 of the Trust Indenture Act, nor shall the Property Trustee be held accountable by reason of mailing any material pursuant to a request made under Section 312(b) of the Trust Indenture Act. 
  
 SECTION 10.11. Acceptance of Terms of Trust Agreement, Guarantee and
Indenture. 
  
 THE RECEIPT AND ACCEPTANCE OF A TRUST
SECURITY OR ANY INTEREST THEREIN BY OR ON BEHALF OF A HOLDER OR ANY BENEFICIAL OWNER, WITHOUT ANY SIGNATURE OR FURTHER MANIFESTATION OF ASSENT, SHALL CONSTITUTE THE UNCONDITIONAL ACCEPTANCE BY THE HOLDER AND ALL OTHERS HAVING A BENEFICIAL INTEREST
IN SUCH TRUST SECURITY OF ALL THE TERMS AND PROVISIONS OF THIS TRUST AGREEMENT, THE GUARANTEE THE INDENTURE, AND AGREEMENT TO THE SUBORDINATION PROVISIONS AND OTHER TERMS OF THE GUARANTEE AND THE INDENTURE, AND SHALL CONSTITUTE THE AGREEMENT OF THE
ISSUER TRUST, SUCH HOLDER AND SUCH OTHERS THAT THE TERMS AND PROVISIONS OF THIS TRUST AGREEMENT SHALL BE BINDING, OPERATIVE AND EFFECTIVE AS BETWEEN THE ISSUER TRUST AND SUCH HOLDER AND SUCH OTHERS. 
  
 * * * * 
  
 This instrument may be executed in any number of counterparts, each of which so executed shall be deemed to be an original,
but all such counterparts shall together constitute but 

  

 - 61 - 

 
one and the same instrument. The exchange of copies of this Trust Agreement and of signature pages by facsimile or electronic transmission shall constitute
effective execution and delivery of this Trust Agreement as to the parties hereto, and may be used in lieu of the original signature pages to this Trust Agreement for all purposes. 
  
 [Signatures on Next Page] 
  

 - 62 - 

 IN WITNESS WHEREOF, the parties hereto have caused this Trust Agreement to be duly executed, all as of
the day and year first above written. 
  

			
	CRESCENT BANKING COMPANY,
	 as Depositor

		
	 By:
	 	/s/    J. DONALD BOGGUS,
JR.        
	 Name:
	 	J. Donald Boggus, Jr.
	 Title:
	 	President and Chief Executive Officer
	
	WILMINGTON TRUST COMPANY,
	 as Property Trustee, and not in its individual capacity

		
	 By:
	 	/s/    JOANN A. ROZELL        
	 Name:
	 	Joann A. Rozell
	 Title:
	 	Assistant Vice President
	
	WILMINGTON TRUST COMPANY,
	 as Delaware Trustee, and not in its individual capacity

		
	 By:
	 	/s/    JOANN A. ROZELL        
	 Name:
	 	Joann A. Rozell
	 Title:
	 	Assistant Vice President
		
	 	 	/s/    J. DONALD BOGGUS,
JR.        
	 Name:
	 	J. Donald Boggus, Jr.
	 Title:
	 	Administrator
		
	 	 	/s/    LELAND W. BRANTLEY,
JR.        
	 Name:
	 	Leland W. Brantley, Jr.
	 Title:
	 	Administrator
		
	 	 	/s/    BONNIE B. BOLING        
	 Name:
	 	Bonnie B. Boling
	 Title:
	 	Administrator

  

 - 63 - 

  
 EXHIBIT A 

 
 CERTIFICATE OF TRUST 
 OF 
 CRESCENT CAPITAL TRUST II

  

 - A-1 - 

  
 EXHIBIT B 

 
 RESTRICTED SECURITIES CERTIFICATE 
  
 (For transfers pursuant to § 5.5(b) 
 of the Trust Agreement) 
  
 Wilmington Trust Company, 
 as Securities Registrar 
 1100 North Market Street 
 Rodney Square North 
 Wilmington, Delaware 19890-0001 

	Attention:	Corporate Trust Administration 

  

	 	Re:	Floating Rate Capital Securities (“Capital Securities”) 

	 	 	of Crescent Capital Trust II (the “Trust”) 

  
 Reference is made to the Amended and Restated Trust Agreement, dated as of September 30, 2005 (the “Trust Agreement”), among
Crescent Banking Company, as Depositor, Wilmington Trust Company, as Property Trustee and as Delaware Trustee, the Administrators named therein, and the Holders (as defined therein) from time to time. Terms used herein and defined in the Trust
Agreement or in Regulation D, Rule 144A or Rule 144 under the U.S. Securities Act of 1933 (the “Securities Act”) are used herein as so defined. 
  

This certificate relates to
$                     aggregate Liquidation Amount of Capital Securities, which are evidenced by the following certificate(s) (the
“Specified Securities”): 
  
 CUSIP No(s).
                                        

  
 CERTIFICATE No(s).
                                        

  
 CURRENTLY IN BOOK-ENTRY FORM:
         Yes          No (check one) 
  
 The person in whose name this certificate is executed below (the “Undersigned”) hereby certifies that either (i) it is the sole beneficial owner of
the Specified Securities or (ii) it is acting on behalf of all the beneficial owners of the Specified Securities and is duly authorized by them to do so. Such beneficial owner or owners are referred to herein collectively as the
“Owner.” If the Specified Securities are represented by a Global Capital Securities Certificate, they are held through the Clearing Agency or a Clearing Agency Participant in the name of the Undersigned, as or on behalf of the Owner. If
the Specified Securities are not represented by a Global Capital Securities Certificate, they are registered in the name of the Undersigned, as or on behalf of the Owner. 
  

 - B-1 - 

 The Owner has requested that the Specified Securities be transferred to a person (the
“Transferee”) who will take delivery in the form of a Restricted Capital Security. In connection with such transfer, the Owner hereby certifies that, unless such transfer is being effected pursuant to an effective registration
statement under the Securities Act, it is being effected in accordance with Rule 144A, Rule 904 or Rule 144 under the Securities Act or other exemption from registration under the Securities Act, and all applicable securities laws of the states of
the United States and other jurisdictions. Accordingly, the Owner hereby further certifies as follows: 
  
 1. Rule 144A Transfers. If the transfer is being effected in accordance with Rule 144A: 
  
 (A) the Specified Securities are being transferred to a
person that the Owner and any person acting on its behalf reasonably believe is a “qualified institutional buyer” within the meaning of Rule 144A, acquiring for its own account or for the account of a qualified institutional buyer; and

  
 (B) the Owner and any person acting on its
behalf have taken reasonable steps to ensure that the Transferee is aware that the Owner may be relying on Rule 144A in connection with the transfer. 
  
 2. Rule 904 Transfers. If the transfer is being effected in accordance with Rule 904: 
  
 (A) the Owner is not a distributor of the Capital
Securities, an affiliate of the Depositor or the Trust or any such distributor or a person acting on behalf of any of the foregoing; 
  
 (B) the offer of the Specified Securities was not made to a person in the United States; 
  
 (C) either: 
  

	 	(i)	at the time the buy order was originated, the Transferee was outside the United States or the Owner and any person acting on its behalf reasonably believed that the Transferee was
outside the United States, or 

  

	 	(ii)	the transaction is being executed in, on or through the facilities of the Eurobond market, as regulated by the Association of International Bond Dealers, or another designated
offshore securities market and neither the Owner nor any person acting on its behalf knows that the transaction has been prearranged with a buyer in the United States; 

  

 - B-2 - 

 (D) no directed selling efforts within the meaning of Rule 902 of Regulation S have been
made in the United States by or on behalf of the Owner or any affiliate thereof; and 
  
 (E) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act. 
  
 3. Rule 144 Transfers. If the transfer is being effected pursuant to
Rule 144: 
  
 (A) the transfer is occurring after
a holding period of at least one year (computed in accordance with paragraph (d) of Rule 144 or such shorter time as may be provided therein) has elapsed since the date the Specified Securities were acquired from the Depositor or the Trust or
from an affiliate (as such term is defined in Rule 144) of the Depositor or the Trust, with the full amount of the purchase price paid at the date of purchase, whichever is later, and is being effected in accordance with the applicable amount,
manner of sale and notice requirements of paragraphs (c), (e), (f) and (h) of Rule 144; or 
  
 (B) the transfer is occurring after a holding period of at least two years (or such shorter time as may be provided in Rule 144(k) has
elapsed since the date the Specified Securities were acquired from the Depositor or the Trust or from an affiliate (as such term is defined in Rule 144) of the Depositor or the Trust, with the full amount of the purchase price paid at the date of
purchase, whichever is later, and the Owner is not, and during the preceding three months has not been, an affiliate of the Depositor or the Trust. 
  
 4. Other Transfers. If the Owner seeks to make a transfer in reliance on any other exemption under the Securities Act, it shall attach hereto a
letter stating the exemption relied upon and the facts under which such exemption is available for the requested transfer, and shall attach an opinion of counsel satisfactory to the Depositor stating that such exemption is available and is being
properly used. 
  
 This certificate and the statements contained
herein are made for your benefit and the benefit of the Depositor, the Trust and the Holders. 
  

									
	Dated:
                            	 	 	 	 
	 	 	 	 	(Print the name of the Undersigned, as such term is defined in the second paragraph of this certificate.)
				
	 	 	 	 	 By:
	 	 
	 	 	 	 	 Name:
	 	 
	 	 	 	 	 Title:
	 	 
				
	 	 	 	 	 	 	(If the Undersigned is a corporation, partnership, fiduciary or entity, the correct name of the entity, and the name and title of the person signing on behalf of the Undersigned must
be stated.)

  

 - B-3 - 

 EXHIBIT C 
  

THIS COMMON SECURITIES CERTIFICATE 
 IS NOT TRANSFERABLE EXCEPT IN 
 COMPLIANCE WITH APPLICABLE LAW AND 
 SECTION 5.11 OF THE TRUST AGREEMENT 
  
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY APPLICABLE STATE
OR OTHER JURISDICTION’S SECURITIES OR BLUE SKY LAWS, AND NO SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED SOLD, TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR DISPOSED OF ABSENT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR SUCH OTHER APPLICABLE SECURITIES OR BLUE SKY LAWS COVERING SUCH SECURITIES OR SUCH TRANSFER IS MADE IN ACCORDANCE WITH AN AVAILABLE EXEMPTION UNDER THE SECURITIES ACT AND ANY APPLICABLE OTHER SECURITIES OR BLUE SKY LAWS, AND THE
DEPOSITOR RECEIVES AN OPINION OF COUNSEL FROM THE HOLDER OF THESE SECURITIES REASONABLY SATISFACTORY TO THE DEPOSITOR STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT, PLEDGE, HYPOTHECATION, OR DISPOSITION IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF
SUCH SECURITIES ACT AND ANY OTHER APPLICABLE SECURITIES OR BLUE SKY LAWS. 
  
 THIS SECURITY IS NOT A DEPOSIT OR AN OBLIGATION OF A DEPOSITORY INSTITUTION, IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY, AND IS NOT SECURED. 
  

			
	 Certificate Number
             -C-1-
	  	 AggregateLiquidation Amount
 -$248,000.00

  
 Crescent Capital
Trust II 
  
 Floating Rate Common Securities 

(Liquidation Amount — $1,000.00 per Common Security) 
  
 Crescent Capital Trust II, a statutory trust created under the laws of the State of Delaware (the “Issuer
Trust”), hereby certifies that Crescent Banking Company (the “Holder”) is the registered owner of two hundred forty-eight (248) common securities of the Issuer Trust representing undivided beneficial interests in the
assets of the Issuer 
  

 - C-1 - 

 Trust and designated as the Crescent Capital Trust II Floating Rate Common Securities (Liquidation Amount $1,000.00 per
common security) (the “Common Securities”). Except in accordance with Section 5.11 of the Trust Agreement (as defined below), the Common Securities are not transferable and, to the fullest extent permitted by law, any attempted
transfer hereof other than in accordance therewith shall be void. The designations, rights, privileges, restrictions, preferences and other terms and provisions of the Common Securities are set forth in, and this Certificate and the Common
Securities represented hereby are issued and shall in all respects be subject to the terms and provisions of, the Amended and Restated Trust Agreement of the Issuer Trust, dated as of September 30, 2005, as the same may be amended from time to
time (the “Trust Agreement”) among Crescent Banking Company, as Depositor, Wilmington Trust Company, as Property Trustee, Wilmington Trust Company, as Delaware Trustee, the Administrators named therein and the Holders of Trust
Securities, including the designation of the terms of the Common Securities as set forth therein. The Issuer Trust will furnish a copy of the Trust Agreement to the Holder without charge upon written request to the Issuer Trust at its principal
place of business or registered office. 
  
 Upon receipt of this
Certificate, the Holder is bound by the Trust Agreement and is entitled to the benefits thereunder. 
  
 Capitalized terms used but not defined herein have the meanings assigned to them in the Trust Agreement. 
  

 - C-2 - 

 IN WITNESS WHEREOF, one of the Administrators of the Issuer Trust has executed this Common Securities
Certificate this 30th day of September, 2005. 
  

			
	CRESCENT CAPITAL TRUST II
		
	By:	 	 
	Name:	 	J. Donald Boggus, Jr.
	Title:	 	Administrator

  

			
	 AUTHENTICATED:
  
 WILMINGTON TRUST COMPANY,
 as Property Trustee

		
	By:	 	 
	 	 	 Authorized Signatory

  
  

 - C-3- 

 EXHIBIT D 
  

GLOBAL CAPITAL SECURITIES CERTIFICATE 
  
 This Capital Securities Certificate is a Global Capital Securities Certificate within the meaning of the Trust Agreement (hereinafter referred to) and is
registered in the name of The Depository Trust Company, a New York corporation (“DTC”), or Cede & Co. as its nominee. Capitalized terms used but not defined herein shall have the meanings assigned to them in the Trust
Agreement. 
  
 Unless this Capital Securities Certificate is
presented by an authorized representative of DTC to Crescent Capital Trust II or its agent for registration of transfer, exchange or payment, and any Capital Securities Certificate issued is registered in the name of Cede & Co. or such
other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO A PERSON IS WRONGFUL inasmuch as the registered owner hereof, DTC or Cede & Co., has an interest herein. 
  
 Unless and until it is exchanged in whole or in part for securities in certificated form, this Capital Securities Certificate may not be transferred
except as a whole by DTC to a nominee of DTC or by a nominee of DTC to DTC or another nominee of DTC or by DTC or any such nominee to a successor of DTC or a nominee of such successor of DTC. 
  
 THE CAPITAL SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE STATE OR OTHER JURISDICTION’S SECURITIES OR BLUE SKY LAWS, AND NO SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED,
ASSIGNED, PLEDGED, HYPOTHECATED OR DISPOSED OF ABSENT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE SECURITIES OR BLUE SKY LAWS COVERING SUCH SECURITIES OR SUCH TRANSFER IS MADE IN ACCORDANCE WITH AN
AVAILABLE EXEMPTION UNDER THE SECURITIES ACT, WHICH MAY INCLUDE EXEMPTIONS UNDER REGULATION S, RULE 144A, RULE 144 OR ANY OTHER AVAILABLE EXEMPTION UNDER THE SECURITIES ACT, AND ANY OTHER APPLICABLE SECURITIES OR BLUE SKY LAWS, AND THE DEPOSITOR
RECEIVES AN OPINION OF COUNSEL FROM THE HOLDER OF THESE SECURITIES REASONABLY SATISFACTORY TO THE DEPOSITOR STATING THAT SUCH OFFER, SALE, TRANSFER, ASSIGNMENT, PLEDGE, HYPOTHECATION, OR DISPOSITION IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF
SUCH SECURITIES ACT AND ANY OTHER APPLICABLE SECURITIES OR BLUE SKY LAWS. 
  

 - D-1 - 

 THIS SECURITY IS NOT A DEPOSIT OR AN OBLIGATION OF ANY DEPOSITORY INSTITUTION, IS NOT INSURED OR GUARANTEED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY GOVERNMENT AGENCY, AND IS NOT SECURED. 
  
 THE CAPITAL SECURITIES WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN LIQUIDATION AMOUNTS OF NOT LESS THAN $50,000.00. ANY ATTEMPTED TRANSFER OF CAPITAL SECURITIES HAVING A LIQUIDATION AMOUNT OF LESS THAN $50,000.00 SHALL, TO THE FULLEST
EXTENT PERMITTED BY LAW, BE DEEMED TO BE VOID AND OF NO EFFECT WHATSOEVER. ANY PURPORTED TRANSFEREE OF A LESSER AMOUNT SHALL, TO THE FULLEST EXTENT PERMITTED BY LAW, BE DEEMED NOT TO BE THE HOLDER OF SUCH CAPITAL SECURITIES FOR ANY PURPOSE,
INCLUDING BUT NOT LIMITED TO THE RECEIPT OF DISTRIBUTIONS OF SUCH CAPITAL SECURITIES, AND SUCH PURPORTED TRANSFEREE SHALL, TO THE FULLEST EXTENT PERMITTED BY LAW, BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH CAPITAL SECURITIES. 

 
 NO EMPLOYEE BENEFIT OR OTHER PLAN OR INDIVIDUAL RETIREMENT ACCOUNT SUBJECT TO TITLE I
OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) (EACH, A “PLAN”), NO ENTITY WHOSE
UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN THE ENTITY (A “PLAN ASSET ENTITY”), AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN, MAY ACQUIRE OR HOLD THIS CAPITAL
SECURITIES CERTIFICATE OR ANY INTEREST HEREIN, UNLESS SUCH PURCHASE OR HOLDING IS COVERED BY THE EXEMPTIVE RELIEF PROVIDED BY U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 96-23, 95-60, 91-38, 90-1 OR
84-14 OR ANOTHER APPLICABLE EXEMPTION WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY PURCHASER OR HOLDER OF THIS CAPITAL SECURITIES CERTIFICATE OR ANY INTEREST HEREIN THAT IS A PLAN OR A PLAN ASSET ENTITY OR IS PURCHASING SUCH SECURITIES ON BEHALF OF
OR WITH “PLAN ASSETS” WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING HEREOF THAT (A) THE PURCHASE AND HOLDING OF THE CAPITAL SECURITIES IS COVERED BY THE EXEMPTIVE RELIEF PROVIDED BY PTCE 96-23, 95-60, 91-38, 90-1 OR
84-14 OR ANOTHER APPLICABLE EXEMPTION, (B) THE DEPOSITOR AND THE ADMINISTRATORS ARE NOT “FIDUCIARIES” WITHIN THE MEANING OF SECTION 3(21) OF ERISA AND THE REGULATIONS THEREUNDER, WITH RESPECT TO SUCH PERSON’S INTEREST IN THE
CAPITAL SECURITIES OR THE JUNIOR SUBORDINATED DEBENTURES, AND (C) IN PURCHASING THE CAPITAL SECURITIES SUCH PERSON APPROVES THE PURCHASE OF THE JUNIOR 

  

 - D-2 - 

 
SUBORDINATED DEBENTURES AND THE APPOINTMENT OF THE ISSUER TRUSTEES. 
  
 IT IS EXPECTED THAT THESE EXEMPTIONS WILL NOT BE AVAILABLE WITH RESPECT TO THESE SECURITIES. ACCORDINGLY, ANY ERISA PLANS OR OTHER PLANS
SUBJECT TO ERISA SHALL NOT INVEST OR ATTEMPT TO INVEST IN THESE SECURITIES ABSENT AN OPINION OF COUNSEL TO SUCH PLAN ADDRESSED TO THE PLAN, THE PLAN SPONSOR, THE PLACEMENT AGENTS AND THE DEPOSITOR, IN FORM AND SUBSTANCE SATISFACTORY TO ALL SUCH
PERSONS, STATING THAT SUCH INVESTMENT IS PERMISSIBLE. 
  

 - D-3 - 

			
	 	 	Aggregate Liquidation Amount
	-Certificate No. -001-	 	$8,000,000.00

  
 CUSIP No. 225666 AA
4 
  
 ISIN No. US225666AA48 
  
  
 Crescent Capital Trust II 
  
 Floating Rate
Capital Securities 
  
 (Liquidation Amount — $50,000.00
per Capital Security) 
  
 Crescent Capital Trust II, a
statutory trust created under the laws of the State of Delaware (the “Issuer Trust”), hereby certifies that Cede & Co., as nominee of The Depository Trust Company, a New York banking corporation (the
“Holder”), is the registered owner of EIGHT MILLION AND NO/100 Dollars ($8,000,000.00) Aggregate Liquidation Amount of Capital Securities of the Issuer Trust representing a preferred undivided beneficial interest in the assets of
the Issuer Trust and designated as the Crescent Capital Trust II Floating Rate Capital Securities and having a minimum liquidation amount of $50,000.00 per Capital Security (the “Capital Securities”). The Capital Securities are
transferable only on the books and records of the Issuer Trust, in person or by a duly authorized attorney, upon surrender of this certificate duly endorsed and in proper form for transfer as provided in Section 5.5 of the Trust Agreement (as
defined below). The designations, rights, privileges, restrictions, preferences and other terms and provisions of the Capital Securities are set forth in, and this Certificate and the Capital Securities represented hereby are issued and shall in all
respects be subject to the terms and provisions of, the Amended and Restated Trust Agreement of the Issuer Trust, dated as of September 30, 2005, as the same may be amended from time to time (the “Trust Agreement”), among
Crescent Banking Company, as Depositor, Wilmington Trust Company, as Property Trustee, Wilmington Trust Company, as Delaware Trustee, the Administrators named therein and the Holders of Trust Securities, including the designation of the terms of the
Capital Securities as set forth therein. The Holder is entitled to the benefits of the Guarantee Agreement entered into by Crescent Banking Company, as Guarantor, and Wilmington Trust Company, as Guarantee Trustee, dated as of September 30,
2005, as the same may be amended from time to time (the “Guarantee Agreement”), to the extent provided therein. The Issuer Trust will furnish a copy of the Trust Agreement and the Guarantee Agreement to the Holder without charge
upon written request to the Issuer Trust by contacting the Issuer Trustees. 
  
 Upon receipt of this certificate, the Holder is bound by the Trust Agreement and is entitled to the benefits thereunder. 
  

 - D-4 - 

 Capitalized terms used but not defined herein have the meanings assigned to them in the Trust Agreement.

  
 IN WITNESS WHEREOF, one of the Administrators of the Issuer
Trust has executed this certificate this 30th day of September, 2005. 
  

			
	CRESCENT CAPITAL TRUST II
		
	By:	 	 
	 Name:
	 	J. Donald Boggus, Jr.
	 Title:
	 	Administrator

  

			
	 AUTHENTICATED:
  
 WILMINGTON TRUST COMPANY,
 as
Property Trustee

		
	By:	 	 
	 	 	 Authorized Signatory

  
 Date: September 30, 2005

  

 - D-5 - 

 ASSIGNMENT 
  
 FOR VALUE RECEIVED, the undersigned assigns and transfers this Capital Security to: 
  

 (Insert assignee’s
social security or tax identification number) 
  
  

  
  

 (Insert address and zip code of assignee) 
  
 and irrevocably appoints
                                       
                                        
                                        
                                        
           
  

  
 agent to transfer this Capital Securities Certificate on the books of the Issuer Trust. The
agent may substitute another to act for him or her. 
  

			
		
	Date:	 	 

  

			
		
	 Signature:
	 	 
	 	 	 (Sign exactly as your name appears on the other side of this Capital Securities Certificate)

  
 The signature(s) should be guaranteed
by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program), pursuant to S.E.C. Rule 17Ad-15. 
  

 - D-6 - 

 EXHIBIT E 
  

 
  

 - E-1 -Credit Facility Agreement

 EXHIBIT 10.12 
  

  
 CREDIT AGREEMENT 
  
 by and among

  
 SUMTOTAL SYSTEMS, INC. 
  
 as Borrower, 
  
 THE LENDERS THAT ARE SIGNATORIES HERETO 
  
 as the Lenders, 
  
 and 
  
 WELLS FARGO FOOTHILL, INC. 
  
 as the Arranger and Administrative Agent 
  
 Dated as of October 4, 2005 
  

 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	Page

	 1.
	  	 DEFINITIONS AND CONSTRUCTION
	  	1
				
	 	  	1.1	  	 Definitions
	  	1
				
	 	  	1.2	  	 Accounting Terms
	  	1
				
	 	  	1.3	  	 Code
	  	1
				
	 	  	1.4	  	 Construction
	  	1
				
	 	  	1.5	  	 Schedules and Exhibits
	  	2
			
	 2.
	  	 LOAN AND TERMS OF PAYMENT
	  	2
				
	 	  	2.1	  	 Revolver Advances
	  	2
				
	 	  	2.2	  	 Term Loan
	  	2
				
	 	  	2.3	  	 Borrowing Procedures and Settlements
	  	3
				
	 	  	2.4	  	 Payments
	  	7
				
	 	  	2.5	  	 Overadvances
	  	10
				
	 	  	2.6	  	 Interest Rates and Letter of Credit Fee: Rates, Payments, and Calculations
	  	10
				
	 	  	2.7	  	 Cash Management
	  	11
				
	 	  	2.8	  	 Crediting Payments
	  	12
				
	 	  	2.9	  	 Designated Account
	  	12
				
	 	  	2.10	  	 Maintenance of Loan Account; Statements of Obligations
	  	12
				
	 	  	2.11	  	 Fees
	  	13
				
	 	  	2.12	  	 Letters of Credit
	  	13
				
	 	  	2.13	  	 LIBOR Option
	  	15
				
	 	  	2.14	  	 Capital Requirements
	  	17
			
	 3.
	  	 CONDITIONS; TERM OF AGREEMENT
	  	17
				
	 	  	3.1	  	 Conditions Precedent to the Initial Extension of Credit
	  	17
				
	 	  	3.2	  	 Conditions Precedent to all Extensions of Credit
	  	18
				
	 	  	3.3	  	 Term
	  	18
				
	 	  	3.4	  	 Effect of Termination
	  	18
				
	 	  	3.5	  	 Early Termination by Borrower
	  	18
			
	 4.
	  	 REPRESENTATIONS AND WARRANTIES
	  	19
				
	 	  	4.1	  	 No Encumbrances
	  	19
				
	 	  	4.2	  	 Accounts
	  	19
				
	 	  	4.3	  	 Inventory
	  	19
				
	 	  	4.4	  	 Equipment
	  	19
				
	 	  	4.5	  	 Location of Inventory and Equipment
	  	19

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	  	 	  	 	  	Page

	 	  	4.6	  	 Inventory Records
	  	19
				
	 	  	4.7	  	 Jurisdiction of Organization; Location of Chief Executive Office; Organizational Identification Number; Commercial Tort
Claims
	  	19
				
	 	  	4.8	  	 Due Organization and Qualification; Subsidiaries
	  	20
				
	 	  	4.9	  	 Due Authorization; No Conflict
	  	20
				
	 	  	4.10	  	 Litigation
	  	22
				
	 	  	4.11	  	 No Material Adverse Change
	  	22
				
	 	  	4.12	  	 Fraudulent Transfer
	  	22
				
	 	  	4.13	  	 Employee Benefits
	  	22
				
	 	  	4.14	  	 Environmental Condition
	  	23
				
	 	  	4.15	  	 Intellectual Property
	  	23
				
	 	  	4.16	  	 Leases
	  	23
				
	 	  	4.17	  	 Deposit Accounts and Securities Accounts
	  	23
				
	 	  	4.18	  	 Complete Disclosure
	  	23
				
	 	  	4.19	  	 Indebtedness
	  	24
				
	 	  	4.20	  	 Material Contracts
	  	24
				
	 	  	4.21	  	 Acquisition Documents
	  	24
			
	 5.
	  	 AFFIRMATIVE COVENANTS
	  	25
				
	 	  	5.1	  	 Accounting System
	  	25
				
	 	  	5.2	  	 Collateral Reporting
	  	25
				
	 	  	5.3	  	 Financial Statements, Reports, Certificates
	  	25
				
	 	  	5.4	  	 Guarantor Reports
	  	25
				
	 	  	5.5	  	 Inspection
	  	25
				
	 	  	5.6	  	 Maintenance of Properties
	  	25
				
	 	  	5.7	  	 Taxes
	  	25
				
	 	  	5.8	  	 Insurance
	  	26
				
	 	  	5.9	  	 Location of Inventory and Equipment
	  	26
				
	 	  	5.10	  	 Compliance with Laws
	  	27
				
	 	  	5.11	  	 Leases
	  	27
				
	 	  	5.12	  	 Existence
	  	27
				
	 	  	5.13	  	 Environmental
	  	27
				
	 	  	5.14	  	 Disclosure Updates
	  	27
				
	 	  	5.15	  	 Control Agreements
	  	27

  

 - 2 - 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	  	 	  	 	  	Page

	 	  	5.16	  	 Formation of Subsidiaries
	  	27
				
	 	  	5.17	  	 ERISA Compliance
	  	28
				
	 	  	5.18	  	 Maintenance of Licenses and Permits
	  	29
				
	 	  	5.19	  	 Acquisition Documents
	  	29
				
	 	  	5.20	  	 Further Assurances
	  	29
				
	 	  	5.21	  	 Required Library
	  	30
				
	 	  	5.22	  	 Source Code Escrow Agreement
	  	30
				
	 	  	5.23	  	 Collateral Access Agreements
	  	30
				
	 	  	5.24	  	 Inactive Domestic Subsidiaries
	  	30
				
	 	  	5.25	  	 Ownership of Intellectual Property
	  	30
				
	 	  	5.26	  	 Certain Control Accounts
	  	30
				
	 	  	5.27	  	 Share Certificate Deliveries
	  	30
			
	 6.
	  	 NEGATIVE COVENANTS
	  	31
				
	 	  	6.1	  	 Indebtedness
	  	31
				
	 	  	6.2	  	 Liens
	  	31
				
	 	  	6.3	  	 Restrictions on Fundamental Changes
	  	32
				
	 	  	6.4	  	 Disposal of Assets
	  	32
				
	 	  	6.5	  	 Change Name
	  	32
				
	 	  	6.6	  	 Nature of Business
	  	32
				
	 	  	6.7	  	 Prepayments and Amendments
	  	32
				
	 	  	6.8	  	 Change of Control
	  	33
				
	 	  	6.9	  	 Consignments
	  	33
				
	 	  	6.10	  	 Distributions
	  	33
				
	 	  	6.11	  	 Accounting Methods
	  	33
				
	 	  	6.12	  	 Investments
	  	33
				
	 	  	6.13	  	 Transactions with Affiliates
	  	33
				
	 	  	6.14	  	 Use of Proceeds
	  	34
				
	 	  	6.15	  	 Inventory and Equipment with Bailees
	  	34
				
	 	  	6.16	  	 Financial Covenants
	  	34
				
	 	  	6.17	  	 Modification of Acquisition Documents
	  	35
				
	 	  	6.18	  	 ERISA
	  	35
				
	 	  	6.19	  	 Material Contracts
	  	36
				
	 	  	6.20	  	 Required Availability
	  	36
				
	 	  	6.21	  	 Inactive Domestic Subsidiaries
	  	36

  

 - 3 - 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	  	 	  	 	  	Page

	 7.
	  	 EVENTS OF DEFAULT
	  	36
			
	 8.
	  	 THE LENDER GROUP’S RIGHTS AND REMEDIES
	  	38
				
	 	  	8.1	  	 Rights and Remedies
	  	38
				
	 	  	8.2	  	 Remedies Cumulative
	  	38
			
	 9.
	  	 TAXES AND EXPENSES
	  	38
			
	 10.
	  	 WAIVERS; INDEMNIFICATION
	  	39
				
	 	  	10.1	  	 Demand; Protest; etc
	  	39
				
	 	  	10.2	  	 The Lender Group’s Liability for Collateral
	  	39
				
	 	  	10.3	  	 Indemnification
	  	39
				
	 	  	10.4	  	 Waiver of Consequential Damages, Etc.
	  	40
			
	 11.
	  	 NOTICES
	  	40
			
	 12.
	  	 CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER
	  	41
			
	 13.
	  	 ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS
	  	41
				
	 	  	13.1	  	 Assignments and Participations
	  	41
				
	 	  	13.2	  	 Successors
	  	43
			
	 14.
	  	 AMENDMENTS; WAIVERS
	  	43
				
	 	  	14.1	  	 Amendments and Waivers
	  	43
				
	 	  	14.2	  	 Replacement of Holdout Lender
	  	44
				
	 	  	14.3	  	 No Waivers; Cumulative Remedies
	  	45
			
	 15.
	  	 AGENT; THE LENDER GROUP
	  	45
				
	 	  	15.1	  	 Appointment and Authorization of Agent
	  	45
				
	 	  	15.2	  	 Delegation of Duties
	  	45
				
	 	  	15.3	  	 Liability of Agent
	  	46
				
	 	  	15.4	  	 Reliance by Agent
	  	46
				
	 	  	15.5	  	 Notice of Default or Event of Default
	  	46
				
	 	  	15.6	  	 Credit Decision
	  	46
				
	 	  	15.7	  	 Costs and Expenses; Indemnification
	  	47
				
	 	  	15.8	  	 Agent in Individual Capacity
	  	47
				
	 	  	15.9	  	 Successor Agent
	  	48
				
	 	  	15.10	  	 Lender in Individual Capacity
	  	48
				
	 	  	15.11	  	 Withholding Taxes
	  	48
				
	 	  	15.12	  	 Collateral Matters
	  	50
				
	 	  	15.13	  	 Restrictions on Actions by Lenders; Sharing of Payments
	  	51

  

 - 4 - 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	  	 	  	 	  	Page

	 	  	15.14	  	 Agency for Perfection
	  	51
				
	 	  	15.15	  	 Payments by Agent to the Lenders
	  	51
				
	 	  	15.16	  	 Concerning the Collateral and Related Loan Documents
	  	52
				
	 	  	15.17	  	 Field Audits and Examination Reports; Confidentiality; Disclaimers by Lenders; Other Reports and Information
	  	52
				
	 	  	15.18	  	 Several Obligations; No Liability
	  	52
				
	 	  	15.19	  	 Bank Product Providers
	  	53
			
	 16.
	  	 GENERAL PROVISIONS
	  	53
				
	 	  	16.1	  	 Effectiveness
	  	53
				
	 	  	16.2	  	 Section Headings
	  	53
				
	 	  	16.3	  	 Interpretation
	  	53
				
	 	  	16.4	  	 Severability of Provisions
	  	53
				
	 	  	16.5	  	 Counterparts; Electronic Execution
	  	53
				
	 	  	16.6	  	 Revival and Reinstatement of Obligations
	  	53
				
	 	  	16.7	  	 Confidentiality
	  	54
				
	 	  	16.8	  	 Integration
	  	54
				
	 	  	16.9	  	 Public Disclosure
	  	54

  

 - 5 - 

 EXHIBITS AND SCHEDULES 
  

			
	 Exhibit A-1
	    	 Form of Assignment and Acceptance

	 Exhibit C-1
	    	 Form of Compliance Certificate

	 Exhibit L-1
	    	 Form of Loan Limiter Certificate

	 Exhibit N-1
	    	 Form of LIBOR Notice

	 Exhibit S-1
	    	 Form of Solvency Certificate

		
	 Schedule A-1
	    	 Agent’s Account

	 Schedule C-1
	    	 Commitments

	 Schedule D-1
	    	 Designated Account

	 Schedule P-1
	    	 Permitted Liens

	 Schedule 1.1
	    	 Definitions

	 Schedule 2.7(a)
	    	 Cash Management Banks

	 Schedule 3.1
	    	 Conditions Precedent

	 Schedule 4.5
	    	 Locations of Inventory and Equipment

	 Schedule 4.7(a)
	    	 Jurisdictions of Organization

	 Schedule 4.7(b)
	    	 Chief Executive Offices

	 Schedule 4.7(c)
	    	 Organizational Identification Numbers

	 Schedule 4.7(d)
	    	 Commercial Tort Claims

	 Schedule 4.8(b)
	    	 Capitalization of Borrower

	 Schedule 4.8(c)
	    	 Borrower’s Subsidiaries (that are not Inactive Domestic Subsidiaries or Immaterial Foreign Subsidiaries)

	 Schedule 4.10
	    	 Litigation

	 Schedule 4.13(a)
	    	 ERISA Plans

	 Schedule 4.13(d)
	    	 ERISA Exceptions

	 Schedule 4.15
	    	 Intellectual Property

	 Schedule 4.17
	    	 Deposit Accounts and Securities Accounts

	 Schedule 4.19
	    	 Permitted Indebtedness

	 Schedule 4.20
	    	 Material Contracts

	 Schedule 5.2
	    	 Collateral Reporting

	 Schedule 5.3
	    	 Financial Statements, Reports, Certificates

 CREDIT AGREEMENT 
  
 THIS CREDIT AGREEMENT (this “Agreement”), is entered into as of October 4, 2005, by and among
the lenders identified on the signature pages hereof (such lenders, together with their respective successors and permitted assigns, are referred to hereinafter each individually as a “Lender” and collectively as the
“Lenders”), WELLS FARGO FOOTHILL, INC., a California corporation, as the arranger and administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity,
“Agent”), and SUMTOTAL SYSTEMS, INC., a Delaware corporation (“Borrower”). 
  
 WHEREAS, Borrower has entered into that certain Agreement and Plan of Merger, dated as of August 3, 2005 (as amended and restated on September
19, 2005, the “Acquisition Agreement”) with Pathlore Software Corporation, a Delaware corporation (“Pathlore”), Galaxy Acquisition Corporation, a Delaware corporation, James Collis, as Stockholder Representative on
behalf of the sellers (collectively, the “Seller”), and U.S. Bank National Associate, as Escrow Agent, pursuant to which Borrower will acquire (the “Acquisition”) 100% of the Stock (as defined in Schedule 1.1
hereto) of Pathlore, such acquisition to be effective immediately upon receipt by the Seller of the purchase price described in the Acquisition Agreement for the Acquired Stock. 
  
 WHEREAS, in order to (a) finance the Acquisition, (b) pay transactional fees, costs, and expenses incurred
in connection with this Agreement, the other Loan Documents, the Acquisition Documents (as defined on Schedule 1.1 hereto), and the transactions contemplated hereby and thereby, and (c) finance ongoing working capital, capital
expenditures, and general corporate needs of Borrower and its Subsidiaries following the Acquisition, Borrower has requested that the Lenders extend credit to Borrower pursuant to, and in accordance with, this Agreement. 
  
 NOW, THEREFORE, the parties agree as follows: 
  
 1. DEFINITIONS AND CONSTRUCTION. 
  
 1.1 Definitions. Capitalized terms used in this Agreement
shall have the meanings specified therefor on Schedule 1.1. 
  
 1.2 Accounting Terms. All accounting terms not specifically defined herein shall be construed in accordance with GAAP. When used herein, the term “financial statements” shall include the notes and schedules thereto.
Whenever the term “Borrower” is used in respect of a financial covenant or a related definition, it shall be understood to mean Borrower and its Subsidiaries on a consolidated basis unless the context clearly requires otherwise.

  
 1.3 Code. Any terms used in this Agreement that
are defined in the Code shall be construed and defined as set forth in the Code unless otherwise defined herein; provided, however, that to the extent that the Code is used to define any term herein and such term is defined differently
in different Articles of the Code, the definition of such term contained in Article 9 shall govern. 
  
 1.4 Construction. Unless the context of this Agreement or any other Loan Document clearly requires otherwise, references to the plural
include the singular, references to the singular include the plural, the terms “includes” and “including” are not limiting, and the term “or” has, except where otherwise indicated, the inclusive meaning represented by
the phrase “and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this Agreement or any other Loan Document refer to this Agreement or such other Loan Document, as the
case may be, as a whole and not to any particular provision of this Agreement or such other Loan Document, as the case may be. Section, subsection, clause, schedule, and exhibit references herein are to this Agreement unless otherwise specified. Any
reference in this Agreement or in the other Loan Documents to any agreement, instrument, or document shall include all alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements,
thereto and 

 
thereof, as applicable (subject to any restrictions on such alterations, amendments, changes, extensions, modifications, renewals, replacements,
substitutions, joinders, and supplements set forth herein). References to statutes or regulations are to be construed as including all statutory and regulatory provisions consolidating, amending, supplementing, interpreting, or replacing the statute
or regulation referred to. Any reference herein to the satisfaction or repayment in full of the Obligations shall mean the repayment in full in cash (or cash collateralization in accordance with the terms hereof) of all Obligations other than
contingent indemnification Obligations and other than any Bank Product Obligations that, at such time, are allowed by the applicable Bank Product Provider to remain outstanding and are not required to be repaid or cash collateralized pursuant to the
provisions of this Agreement. Any reference herein to any Person shall be construed to include such Person’s successors and assigns. Any requirement of a writing contained herein or in the other Loan Documents shall be satisfied by the
transmission of a Record and any Record transmitted shall constitute a representation and warranty as to the accuracy and completeness in all material respects of the information contained therein. 
  
 1.5 Schedules and Exhibits. All of the schedules and exhibits
attached to this Agreement shall be deemed incorporated herein by reference. 
  
 2. LOAN AND TERMS OF PAYMENT. 
  
 2.1
Revolver Advances. 
  
 (a) Subject to the terms and
conditions of this Agreement, and during the term of this Agreement, each Lender with a Revolver Commitment agrees (severally, not jointly or jointly and severally) to make advances (“Advances”) to Borrower in an amount at any one
time outstanding not to exceed such Lender’s Pro Rata Share of an amount equal to the lesser of (i) the Maximum Revolver Amount less the sum of (A) the Letter of Credit Usage (B) the aggregate outstanding principal
balance of the Advances, and (C) reserves established pursuant to Section 2.1(b), or (ii) the Loan Limit less the sum of (A) the Letter of Credit Usage (B) the aggregate outstanding principal balance of the
Advances, (C) the aggregate outstanding principal balance of the Term Loan, and (C) reserves established pursuant to Section 2.1(b). 
  
 (b) Anything to the contrary in this Section 2.1 notwithstanding, Agent shall have the right to establish reserves in such amounts, and with
respect to such matters, as Agent in its Permitted Discretion shall deem necessary or appropriate, against the Availability, including reserves (i) with respect to (A) sums that Borrower is required to pay by any Section of this Agreement
or any other Loan Document (such as taxes, assessments, insurance premiums, or, in the case of leased assets, rents or other amounts payable under such leases) and has failed to pay, and (B) amounts owing by Borrower or its Subsidiaries to any
Person to the extent secured by a Lien on, or trust over, any of the Collateral (other than a Permitted Lien), which Lien or trust, in the Permitted Discretion of Agent likely would have a priority superior to the Agent’s Liens (such as Liens
or trusts in favor of landlords, warehousemen, carriers, mechanics, materialmen, laborers, or suppliers, or Liens or trusts for ad valorem, excise, sales, or other taxes where given priority under applicable law) in and to such item of the
Collateral, and (ii) after the occurrence and during the continuance of an Event of Default, with respect to such other matters, as Agent in its Permitted Discretion shall deem necessary or appropriate. 
  
 (c) Amounts borrowed pursuant to this Section 2.1 may be repaid
and, subject to the terms and conditions of this Agreement, reborrowed at any time during the term of this Agreement. 
  
 2.2 Term Loan. Subject to the terms and conditions of this Agreement, on the Closing Date each Lender with a Term Loan Commitment agrees
(severally, not jointly or jointly and severally) to make term loans (collectively, the “Term Loan”) to Borrower in an amount equal to such Lender’s Pro Rata Share of the Term Loan Amount. 

 
The Term Loan shall be repaid on the following dates and in the following amounts: 
  

			
	Date	 	Installment Amount
	 January 1, 2006 and the first day of
 each January, April, July and October thereafter
	 	$1,093,750
		
	Maturity Date	 	The remaining principal balance of the Term Loan, if any

  
 The outstanding unpaid principal
balance and all accrued and unpaid interest under the Term Loan shall be due and payable on the date of termination of this Agreement, whether by its terms, by prepayment, or by acceleration. All amounts outstanding under the Term Loan shall
constitute Obligations. Any principal amount of the Term Loan repaid or prepaid may not be reborrowed. 
  
 2.3 Borrowing Procedures and Settlements. 
  
 (a) Procedure for Borrowing. Each Borrowing shall be made by an irrevocable written request by an Authorized Person delivered to Agent. Unless
Swing Lender is not obligated to make a Swing Loan pursuant to Section 2.3(b) below, which notice must be received by Agent no later than 10:00 a.m. (California time) on the Business Day that is the requested Funding Date specifying
(i) the amount of such Borrowing, and (ii) the requested Funding Date, which shall be a Business Day; provided, however, that if Swing Lender is not obligated to make a Swing Loan as to a requested Borrowing, such notice must
be received by Agent no later than 10:00 a.m. (California time) on the Business Day prior to the date that is the requested Funding Date. At Agent’s election, in lieu of delivering the above-described written request, any Authorized Person may
give Agent telephonic notice of such request by the required time. In such circumstances, Borrower agrees that any such telephonic notice will be confirmed in writing within 24 hours of the giving of such telephonic notice, but the failure to
provide such written confirmation shall not affect the validity of the request. 
  
 (b) Making of Swing Loans. In the case of a request for an Advance and so long as either (i) the aggregate amount of Swing Loans made since the last Settlement Date plus the amount of the requested Advance
does not exceed $2,000,000, or (ii) Swing Lender, in its sole discretion, shall agree to make a Swing Loan notwithstanding the foregoing limitation, Swing Lender, as a Lender, shall make an Advance in the amount of such Borrowing (any such
Advance made solely by Swing Lender as a Lender pursuant to this Section 2.3(b) being referred to as a “Swing Loan” and such Advances being referred to collectively as “Swing Loans”) available to
Borrower on the Funding Date applicable thereto by transferring immediately available funds to Borrower’s Designated Account. Each Swing Loan shall be deemed to be an Advance hereunder and shall be subject to all the terms and conditions
applicable to other Advances, except that all payments on any Swing Loan shall be payable to Swing Lender as a Lender solely for its own account. Subject to the provisions of Section 2.3(d)(ii), Swing Lender as a Lender shall not make
and shall not be obligated to make any Swing Loan if Swing Lender has actual knowledge that (i) one or more of the applicable conditions precedent set forth in Section 3 will not be satisfied on the requested Funding Date for the
applicable Borrowing, or (ii) the requested Borrowing would exceed the Availability on such Funding Date. Swing Lender as a Lender shall not otherwise be required to determine whether the applicable conditions precedent set forth in
Section 3 have been satisfied on the Funding Date applicable thereto prior to making any Swing Loan. The Swing Loans shall be secured by the Agent’s Liens, constitute Obligations hereunder, and bear interest at the rate applicable
from time to time to Advances that are Base Rate Loans. 
  

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 (c) Making of Loans. 
  
 (i) In the event that Swing Lender is not obligated to make a Swing Loan, then promptly after receipt of a request for a
Borrowing pursuant to Section 2.3(a), Agent shall notify the Lenders, not later than 1:00 p.m. (California time) on the Business Day immediately preceding the Funding Date applicable thereto, by telecopy, telephone, or other similar form
of transmission, of the requested Borrowing. Each Lender shall make the amount of such Lender’s Pro Rata Share of the requested Borrowing available to Agent in immediately available funds, to Agent’s Account, not later than 10:00 a.m.
(California time) on the Funding Date applicable thereto. After Agent’s receipt of the proceeds of such Advances, Agent shall make the proceeds thereof available to Borrower on the applicable Funding Date by transferring immediately available
funds equal to such proceeds received by Agent to Borrower’s Designated Account; provided, however, that, subject to the provisions of Section 2.3(d)(ii), Agent shall not request any Lender to make, and no Lender shall
have the obligation to make, any Advance if Agent shall have actual knowledge that (1) one or more of the applicable conditions precedent set forth in Section 3 will not be satisfied on the requested Funding Date for the applicable
Borrowing unless such condition has been waived, or (2) the requested Borrowing would exceed the Availability on such Funding Date. 
  
 (ii) Unless Agent receives notice from a Lender prior to 9:00 a.m. (California time) on the date of a Borrowing, that such Lender will not make available
as and when required hereunder to Agent for the account of Borrower the amount of that Lender’s Pro Rata Share of the Borrowing, Agent may assume that each Lender has made or will make such amount available to Agent in immediately available
funds on the Funding Date and Agent may (but shall not be so required), in reliance upon such assumption, make available to Borrower on such date a corresponding amount. If and to the extent any Lender shall not have made its full amount available
to Agent in immediately available funds and Agent in such circumstances has made available to Borrower such amount, that Lender shall on the Business Day following such Funding Date make such amount available to Agent, together with interest at the
Defaulting Lender Rate for each day during such period. A notice submitted by Agent to any Lender with respect to amounts owing under this subsection shall be conclusive, absent manifest error. If such amount is so made available, such payment to
Agent shall constitute such Lender’s Advance on the date of Borrowing for all purposes of this Agreement. If such amount is not made available to Agent on the Business Day following the Funding Date, Agent will notify Borrower of such failure
to fund and, upon demand by Agent, Borrower shall pay such amount to Agent for Agent’s account, together with interest thereon for each day elapsed since the date of such Borrowing, at a rate per annum equal to the interest rate applicable at
the time to the Advances composing such Borrowing. The failure of any Lender to make any Advance on any Funding Date shall not relieve any other Lender of any obligation hereunder to make an Advance on such Funding Date, but no Lender shall be
responsible for the failure of any other Lender to make the Advance to be made by such other Lender on any Funding Date. 
  
 (iii) Agent shall not be obligated to transfer to a Defaulting Lender any payments made by Borrower to Agent for the Defaulting Lender’s benefit,
and, in the absence of such transfer to the Defaulting Lender, Agent shall transfer any such payments to each other non-Defaulting Lender member of the Lender Group ratably in accordance with their Commitments (but only to the extent that such
Defaulting Lender’s Advance was funded by the other members of the Lender Group) or, if so directed by Borrower and if no Default or Event of Default had occurred and is continuing (and to the extent such Defaulting Lender’s Advance was
not funded by the Lender Group), retain same to be re-advanced to Borrower as if such Defaulting Lender had made Advances to Borrower. Subject to the foregoing, Agent may hold and, in its Permitted Discretion, re-lend to Borrower for the account of
such Defaulting Lender the amount of all such payments received and retained by Agent for the account of such Defaulting Lender. Solely for the purposes of voting or consenting to matters with respect to the Loan Documents, such Defaulting Lender
shall be deemed not to be a “Lender” and such Lender’s Commitment shall be deemed to be zero. This Section shall remain effective with respect to such Lender until (x) the Obligations under this Agreement shall have been declared
or shall have become immediately due and payable, (y) the non-Defaulting Lenders, Agent, and Borrower shall have waived such Defaulting Lender’s default in writing, or (z) the Defaulting Lender makes its Pro Rata Share of the
applicable Advance and pays to Agent all amounts owing by Defaulting Lender in respect thereof. The operation of this Section shall not be construed to increase or otherwise affect the Commitment of any Lender, to relieve or excuse the performance
by such Defaulting Lender or any other 

  

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Lender of its duties and obligations hereunder, or to relieve or excuse the performance by Borrower of its duties and obligations hereunder to Agent or to
the Lenders other than such Defaulting Lender. Any such failure to fund by any Defaulting Lender shall constitute a material breach by such Defaulting Lender of this Agreement and shall entitle Borrower at its option, upon written notice to Agent,
to arrange for a substitute Lender to assume the Commitment of such Defaulting Lender, such substitute Lender to be acceptable to Agent in its Permitted Discretion. In connection with the arrangement of such a substitute Lender, the Defaulting
Lender shall have no right to refuse to be replaced hereunder, and agrees to execute and deliver a completed form of Assignment and Acceptance in favor of the substitute Lender (and agrees that it shall be deemed to have executed and delivered such
document if it fails to do so) subject only to being repaid its share of the outstanding Obligations (other than Bank Product Obligations, but including an assumption of its Pro Rata Share of the Risk Participation Liability) without any premium or
penalty of any kind whatsoever; provided, however, that any such assumption of the Commitment of such Defaulting Lender shall not be deemed to constitute a waiver of any of the Lender Groups’ or Borrower’s rights or remedies
against any such Defaulting Lender arising out of or in relation to such failure to fund. 
  
 (d) Protective Advances and Optional Overadvances. 
  
 (i) Agent hereby is authorized by Borrower and the Lenders, from time to time in Agent’s sole discretion, (A) after the occurrence and during the continuance of a Default or an Event of Default, or
(B) at any time that any of the other applicable conditions precedent set forth in Section 3 are not satisfied, to make Advances to Borrower on behalf of the Lenders that Agent, in its Permitted Discretion deems necessary or
desirable (1) to preserve or protect the Collateral, or any portion thereof, (2) to enhance the likelihood of repayment of the Obligations (other than the Bank Product Obligations), or (3) to pay any other amount chargeable to
Borrower pursuant to the terms of this Agreement, including Lender Group Expenses and the costs, fees, and expenses described in Section 9 (any of the Advances described in this Section 2.3(d)(i) shall be referred to as
“Protective Advances”). 
  
 (ii) Any contrary
provision of this Agreement notwithstanding, the Lenders hereby authorize Agent or Swing Lender, as applicable, and either Agent or Swing Lender, as applicable, may, but is not obligated to, knowingly and intentionally, continue to make Advances
(including Swing Loans) to Borrower notwithstanding that an Overadvance exists or thereby would be created, so long as (A) after giving effect to such Advances, the outstanding Revolver Usage does not exceed the Availability by more than
$2,000,000, and (B) after giving effect to such Advances, the outstanding Revolver Usage (except for and excluding amounts charged to the Loan Account for interest, fees, or Lender Group Expenses) does not exceed the Maximum Revolver Amount. In
the event Agent obtains actual knowledge that the Revolver Usage exceeds the amounts permitted by the immediately foregoing provisions, regardless of the amount of, or reason for, such excess, Agent shall notify the Lenders as soon as practicable
(and prior to making any (or any additional) intentional Overadvances (except for and excluding amounts charged to the Loan Account for interest, fees, or Lender Group Expenses) unless Agent determines that prior notice would result in imminent harm
to the Collateral or its value), and the Lenders with Revolver Commitments thereupon shall, together with Agent, jointly determine the terms of arrangements that shall be implemented with Borrower intended to reduce, within a reasonable time, the
outstanding principal amount of the Advances to Borrower to an amount permitted by the preceding paragraph. In such circumstances, if any Lender with a Revolver Commitment disagrees over the proposed terms of reduction or repayment of any
Overadvance, the terms of reduction or repayment thereof shall be implemented according to the determination of the Required Lenders. Each Lender with a Revolver Commitment shall be obligated to settle with Agent as provided in
Section 2.3(e) for the amount of such Lender’s Pro Rata Share of any unintentional Overadvances by Agent reported to such Lender, any intentional Overadvances made as permitted under this Section 2.3(d)(ii), and any
Overadvances resulting from the charging to the Loan Account of interest, fees, or Lender Group Expenses. 
  
 (iii) Each Protective Advance and each Overadvance shall be deemed to be an Advance hereunder, except that no Protective Advance or Overadvance shall be
eligible to be a LIBOR Rate Loan and all payments on the Protective Advances shall be payable to Agent solely for its own account. The Protective Advances and Overadvances shall be repayable on demand, secured by the Agent’s Liens, constitute

  

 - 5 - 

 
Obligations hereunder, and bear interest at the rate applicable from time to time to Advances that are Base Rate Loans. The provisions of this
Section 2.3(d) are for the exclusive benefit of Agent, Swing Lender, and the Lenders and are not intended to benefit Borrower in any way. 
  
 (e) Settlement. It is agreed that each Lender’s funded portion of the Advances is intended by the Lenders to equal, at all times, such
Lender’s Pro Rata Share of the outstanding Advances. Such agreement notwithstanding, Agent, Swing Lender, and the other Lenders agree (which agreement shall not be for the benefit of Borrower) that in order to facilitate the administration of
this Agreement and the other Loan Documents, settlement among the Lenders as to the Advances, the Swing Loans, and the Protective Advances shall take place on a periodic basis in accordance with the following provisions: 
  
 (i) Agent shall request settlement (“Settlement”) with the
Lenders on a weekly basis, or on a more frequent basis if so determined by Agent (1) on behalf of Swing Lender, with respect to each outstanding Swing Loan, (2) for itself, with respect to the outstanding Protective Advances, and
(3) with respect to Borrower’s or its Subsidiaries’ Collections received, as to each by notifying the Lenders by telecopy, telephone, or other similar form of transmission, of such requested Settlement, no later than 2:00 p.m.
(California time) on the Business Day immediately prior to the date of such requested Settlement (the date of such requested Settlement being the “Settlement Date”). Such notice of a Settlement Date shall include a summary statement
of the amount of outstanding Advances, Swing Loans, and Protective Advances for the period since the prior Settlement Date. Subject to the terms and conditions contained herein (including Section 2.3(c)(iii)): (y) if a Lender’s
balance of the Advances (including Swing Loans and Protective Advances) exceeds such Lender’s Pro Rata Share of the Advances (including Swing Loans and Protective Advances) as of a Settlement Date, then Agent shall, by no later than 12:00 p.m.
(California time) on the Settlement Date, transfer in immediately available funds to a Deposit Account of such Lender (as such Lender may designate), an amount such that each such Lender shall, upon receipt of such amount, have as of the Settlement
Date, its Pro Rata Share of the Advances (including Swing Loans and Protective Advances), and (z) if a Lender’s balance of the Advances (including Swing Loans and Protective Advances) is less than such Lender’s Pro Rata Share of the
Advances (including Swing Loans and Protective Advances) as of a Settlement Date, such Lender shall no later than 12:00 p.m. (California time) on the Settlement Date transfer in immediately available funds to the Agent’s Account, an amount such
that each such Lender shall, upon transfer of such amount, have as of the Settlement Date, its Pro Rata Share of the Advances (including Swing Loans and Protective Advances). Such amounts made available to Agent under clause (z) of the
immediately preceding sentence shall be applied against the amounts of the applicable Swing Loans or Protective Advances and, together with the portion of such Swing Loans or Protective Advances representing Swing Lender’s Pro Rata Share
thereof, shall constitute Advances of such Lenders. If any such amount is not made available to Agent by any Lender on the Settlement Date applicable thereto to the extent required by the terms hereof, Agent shall be entitled to recover for its
account such amount on demand from such Lender together with interest thereon at the Defaulting Lender Rate. 
  
 (ii) In determining whether a Lender’s balance of the Advances, Swing Loans, and Protective Advances is less than, equal to, or greater than such
Lender’s Pro Rata Share of the Advances, Swing Loans, and Protective Advances as of a Settlement Date, Agent shall, as part of the relevant Settlement, apply to such balance the portion of payments actually received in good funds by Agent with
respect to principal, interest, fees payable by Borrower and allocable to the Lenders hereunder, and proceeds of Collateral. To the extent that a net amount is owed to any such Lender after such application, such net amount shall be distributed by
Agent to that Lender as part of such next Settlement. 
  
 (iii)
Between Settlement Dates, Agent, to the extent no Protective Advances or Swing Loans are outstanding, may pay over to Swing Lender any payments received by Agent, that in accordance with the terms of this Agreement would be applied to the reduction
of the Advances, for application to Swing Lender’s Pro Rata Share of the Advances. If, as of any Settlement Date, Collections of Borrower or its Subsidiaries received since the then immediately preceding Settlement Date have been applied to
Swing Lender’s Pro Rata Share of the Advances other than to Swing Loans, as provided for in the previous sentence, Swing Lender shall pay to Agent for the accounts of the Lenders, and Agent shall pay to the Lenders, 

  

 - 6 - 

 
to be applied to the outstanding Advances of such Lenders, an amount such that each Lender shall, upon receipt of such amount, have, as of such Settlement
Date, its Pro Rata Share of the Advances. During the period between Settlement Dates, Swing Lender with respect to Swing Loans, Agent with respect to Protective Advances, and each Lender (subject to the effect of agreements between Agent and
individual Lenders) with respect to the Advances other than Swing Loans and Protective Advances, shall be entitled to interest at the applicable rate or rates payable under this Agreement on the daily amount of funds employed by Swing Lender, Agent,
or the Lenders, as applicable. 
  
 (f) Notation. Agent
shall record on its books the principal amount of the Advances owing to each Lender, including the Swing Loans owing to Swing Lender, and Protective Advances owing to Agent, and the interests therein of each Lender, from time to time and such
records shall, absent manifest error, conclusively be presumed to be correct and accurate. 
  
 (g) Lenders’ Failure to Perform. All Advances (other than Swing Loans and Protective Advances) shall be made by the Lenders contemporaneously and in accordance with their Pro Rata Shares. It is understood
that (i) no Lender shall be responsible for any failure by any other Lender to perform its obligation to make any Advance (or other extension of credit) hereunder, nor shall any Commitment of any Lender be increased or decreased as a result of
any failure by any other Lender to perform its obligations hereunder, and (ii) no failure by any Lender to perform its obligations hereunder shall excuse any other Lender from its obligations hereunder. 
  
 2.4 Payments. 
  
 (a) Payments by Borrower. 
  
 (i) Except as otherwise expressly provided herein, all payments by Borrower
shall be made to Agent’s Account for the account of the Lender Group and shall be made in immediately available funds, no later than 11:00 a.m. (California time) on the date specified herein. Any payment received by Agent later than 11:00 a.m.
(California time) shall be deemed to have been received on the following Business Day and any applicable interest or fee shall continue to accrue until such following Business Day. 
  
 (ii) Unless Agent receives notice from Borrower prior to the date on which any payment is due to the Lenders that Borrower
will not make such payment in full as and when required, Agent may assume that Borrower has made (or will make) such payment in full to Agent on such date in immediately available funds and Agent may (but shall not be so required), in reliance upon
such assumption, distribute to each Lender on such due date an amount equal to the amount then due such Lender. If and to the extent Borrower does not make such payment in full to Agent on the date when due, each Lender severally shall repay to
Agent on demand such amount distributed to such Lender, together with interest thereon at the Defaulting Lender Rate for each day from the date such amount is distributed to such Lender until the date repaid. 
  
 (b) Apportionment and Application. 
  
 (i) Except as otherwise provided with respect to Defaulting Lenders and
except as otherwise provided in the Loan Documents (including agreements between Agent and individual Lenders), aggregate principal and interest payments shall be apportioned ratably among the Lenders (according to the unpaid principal balance of
the Obligations to which such payments relate held by each Lender) and payments of fees and expenses (other than fees or expenses that are for Agent’s separate account, after giving effect to any agreements between Agent and individual Lenders)
shall be apportioned ratably among the Lenders having a Pro Rata Share of the type of Commitment or Obligation to which a particular fee relates. All payments shall be remitted to Agent and all such payments, and all proceeds of Collateral received
by Agent, shall be applied as follows: 
  

 - 7 - 

 (A) first, ratably to pay any Lender Group Expenses then due to Agent or any of the Lenders under
the Loan Documents, until paid in full, 
  
 (B) second,
ratably to pay any fees or premiums then due to Agent (for its separate account, after giving effect to any agreements between Agent and individual Lenders) or any of the Lenders under the Loan Documents until paid in full, 
  
 (C) third, to pay interest then due in respect of all Protective
Advances until paid in full, 
  
 (D) fourth, to pay the
principal then due of all Protective Advances until paid in full, 
  
 (E) fifth, ratably to pay interest then due in respect of the Advances (other than Protective Advances), the Swing Loans, and the Term Loan until paid in full, 
  
 (F) sixth, ratably to pay all principal amounts then due and payable (other than as a result of an acceleration
thereof) with respect to the Term Loan until paid in full, 
  
 (G) seventh, to pay the principal of all Swing Loans then due until paid in full, 
  
 (H) eighth, so long as no Event of Default has occurred and is continuing, and at Agent’s election (which election Agent agrees will not be
made if an Overadvance would be created thereby), to pay any Bank Product Obligations then due and owing until paid in full, 
  
 (I) ninth, so long as no Event of Default has occurred and is continuing, to pay the principal of all Advances until paid in full, 
  
 (J) tenth, if an Event of Default has occurred and is continuing,
ratably (i) to pay the principal of all Advances until paid in full, (ii) to Agent, to be held by Agent, for the ratable benefit of Issuing Lender and those Lenders having a Revolver Commitment, as cash collateral in an amount up to 105%
of the Letter of Credit Usage until paid in full, and (iii) to Agent, to be held by Agent, for the benefit of the Bank Product Providers, as cash collateral in an amount up to the amount of the Bank Product Reserve established prior to the
occurrence of, and not in contemplation of, the subject Event of Default until the Bank Product Obligations have been paid in full or the cash collateral amount therefor has been exhausted, 
  
 (K) eleventh, if an Event of Default has occurred and is continuing,
to pay the outstanding principal balance of the Term Loan (in the inverse order of the maturity of the installments due thereunder) until the Term Loan is paid in full, 
  
 (L) twelfth, if an Event of Default has occurred and is continuing, to pay any other Obligations (including the
provision of amounts to Agent, to be held by Agent, for the benefit of the Bank Product Providers, as cash collateral in an amount up to the amount determined by Agent in its Permitted Discretion as the amount necessary to secure the Bank Product
Obligations), and 
  
 (M) thirteenth, to Borrower (to be
wired to the Designated Account) or such other Person entitled thereto under applicable law. 
  
 (ii) Agent promptly shall distribute to each Lender, pursuant to the applicable wire instructions received from each Lender in writing, such funds as it may be entitled to receive, subject to a Settlement delay as
provided in Section 2.3(e). 
  

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 (iii) In each instance, so long as no Event of Default has occurred and is continuing, this
Section 2.4(b) shall not be deemed to apply to (A) any mandatory prepayment pursuant to Section 2.4(c)(ii), which payment shall be applied in accordance with the provisions thereof, or (B) any payment by Borrower specified
by Borrower to be for the payment of specific Obligations then due and payable (or prepayable) under any provision of this Agreement. 
  
 (iv) For purposes of the foregoing, “paid in full” means payment of all amounts owing under the Loan Documents according to the terms thereof,
including loan fees, service fees, professional fees, interest (and specifically including interest accrued after the commencement of any Insolvency Proceeding), default interest, interest on interest, and expense reimbursements, whether or not any
of the foregoing would be or is allowed or disallowed in whole or in part in any Insolvency Proceeding. 
  
 (v) In the event of a direct conflict between the priority provisions of this Section 2.4 and other provisions contained in any other Loan
Document, it is the intention of the parties hereto that such priority provisions in such documents shall be read together and construed, to the fullest extent possible, to be in concert with each other. In the event of any actual, irreconcilable
conflict that cannot be resolved as aforesaid, the terms and provisions of this Section 2.4 shall control and govern. 
  
 (c) Prepayments. 
  
 (i) Optional Prepayment of the Term Loan. Borrower may voluntarily prepay the Term Loan in full or in part at any time upon five
(5) days’ prior written notice to the Agent. 
  
 (ii)
Mandatory Prepayments. 
  
 (A) Without limiting any
provision of this Agreement, by the earlier of (1) 30 days after delivery of the audited financial statements of Borrower and its Subsidiaries required to be delivered to Agent under this Agreement or (2) the 120th day after the end of
each fiscal year of Borrower beginning with its fiscal year ending December 31, 2006, Borrower shall prepay the Term Loan in an amount equal to 25% of Excess Cash Flow for the fiscal year of Borrower then ended as set forth in the Compliance
Certificate delivered for such fiscal year. 
  
 (B) If, at any
time or for any reason, the aggregate outstanding principal balance of the Advances, Letter of Credit Usage and Term Loan exceeds the Loan Limit, Borrower shall immediately prepay the Term Loan and the Advances, and cash collateralize the Letter of
Credit Usage, by remitting to Agent, in cash, the amount of such excess. Any prepayments required to be made pursuant to this Section 2.4(c)(ii)(B) shall be applied (1) first, to the Advances, (2) second, to cash collateralize
up to 105% of the Letter of Credit Usage, and (3) third, to the remaining installments due with respect to the Term Loan. 
  
 (C) Upon the receipt by Borrower or any of its Subsidiaries of any Extraordinary Receipts, unless Borrower is permitted to retain and use such
Extraordinary Receipts pursuant to the terms of Section 5.8, Borrower shall prepay the outstanding principal of the Term Loan in an amount equal to 100% of the Net Cash Proceeds of such Extraordinary Receipts, to the extent such
Extraordinary Receipts exceed $100,000 in any one instance or $250,000 in the aggregate during any fiscal year of Borrower. The provisions of this clause (C) shall not be deemed to be implied consent to any transaction otherwise prohibited by
the terms and conditions of this Agreement. 
  
 (D) Upon the sale
or issuance by Borrower or any of its Subsidiaries of any shares of Stock (other than sales or issuances to employees or consultants of Borrower pursuant to any employee stock option plan or similar plan), or the issuance or incurrence by Borrower
or any of its Subsidiaries of any Indebtedness (other than Indebtedness permitted to be incurred under Section 6.1), Borrower shall prepay the outstanding principal amount of the Term Loan in an amount equal to 75% of the Net Cash
Proceeds received by such Person in connection therewith. The provisions of this clause (D) shall not be deemed to be implied consent to any such issuance, incurrence or sale otherwise prohibited by the terms and conditions of this Agreement.

  

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 (iii) Application. Any prepayments of the Term Loan made pursuant to this
Section 2.4(c) (whether optional or mandatory) shall be accompanied by all accrued interest on the principal amount being prepaid to the date of prepayment and, if applied to the Term Loan, to the installments thereof in inverse order of
maturity. 
  
 2.5 Overadvances. If, at any time or
for any reason, the amount of Obligations owed by Borrower to the Lender Group pursuant to Section 2.1 or Section 2.12 is greater than either the Dollar or percentage limitations set forth in Section 2.1 or
Section 2.12 (an “Overadvance”), Borrower immediately shall pay to Agent, in cash, the amount of such excess, which amount shall be used by Agent to reduce the Obligations in accordance with the priorities set forth in
Section 2.4(b). In addition, Borrower hereby promises to pay the Obligations (including principal, interest, fees, costs, and expenses) in Dollars in full as and when due and payable under the terms of this Agreement and the other Loan
Documents. 
  
 2.6 Interest Rates and Letter of Credit Fee:
Rates, Payments, and Calculations. 
  
 (a)
Interest Rates. Except as provided in Section 2.6(c) below, all Obligations (except for undrawn Letters of Credit and except for Bank Product Obligations) that have been charged to the Loan Account pursuant to the terms hereof
shall bear interest on the Daily Balance thereof as follows (i) if the relevant Obligation is an Advance that is a LIBOR Rate Loan, at a per annum rate equal to the LIBOR Rate plus the LIBOR Rate Margin, (ii) if the relevant Obligation is
a portion of the Term Loan that is a LIBOR Rate Loan, at a per annum rate equal to the LIBOR Rate plus the LIBOR Rate Margin, (iii) if the relevant Obligation is a portion of the Term Loan that is a Base Rate Loan, at a per annum rate equal to
the Base Rate plus the Base Rate Margin, and (iv) otherwise, at a per annum rate equal to the Base Rate plus the Base Rate Margin. The foregoing notwithstanding, at no time shall any portion of the Obligations (other than Bank Product
Obligations) bear interest on the Daily Balance thereof at a per annum rate less than 6.00%. To the extent that interest accrued hereunder at the rate set forth herein would be less than the foregoing minimum daily rate, the interest rate chargeable
hereunder for such day automatically shall be deemed increased to the minimum rate. 
  
 (b) Letter of Credit Fee. Borrower shall pay Agent (for the ratable benefit of the Lenders with a Revolver Commitment, subject to any agreements between Agent and individual Lenders), a Letter of Credit fee (in
addition to the charges, commissions, fees, and costs set forth in Section 2.12(e)) which shall accrue at a rate equal to the LIBOR Rate Margin times the Daily Balance of the undrawn amount of all outstanding Letters of Credit.

  
 (c) Default Rate. Upon the occurrence and during the
continuation of an Event of Default (and at the election of Agent or the Required Lenders), 
  
 (i) all Obligations (except for undrawn Letters of Credit and except for Bank Product Obligations) that have been charged to the Loan Account pursuant to the terms hereof shall bear interest on the Daily Balance
thereof at a per annum rate equal to two (2) percentage points above the per annum rate otherwise applicable hereunder, and 
  
 (ii) the Letter of Credit fee provided for above shall be increased to two (2) percentage points above the per annum rate otherwise applicable
hereunder. 
  
 (d) Payment. Except as provided to the
contrary in Section 2.11 or Section 2.13(a), interest, Letter of Credit fees, and all other fees payable hereunder shall be due and payable, in arrears, on the first day of each month at any time that Obligations or
Commitments are outstanding. Borrower hereby authorizes Agent, from time to time without prior notice to Borrower, to charge all interest and fees (when due and payable), all Lender Group Expenses (as and when incurred), all charges, commissions,
fees, and costs 

  

 - 10 - 

 
provided for in Section 2.12(e) (as and when accrued or incurred), all fees and costs provided for in Section 2.11 (as and when
accrued or incurred), and all other payments as and when due and payable under any Loan Document (including the amounts due and payable with respect to the Term Loan and including any amounts due and payable to the Bank Product Providers in respect
of Bank Products up to the amount of the Bank Product Reserve) to Borrower’s Loan Account, which amounts thereafter shall constitute Advances hereunder and shall accrue interest at the rate then applicable to Advances hereunder. Any interest
not paid when due shall be compounded by being charged to Borrower’s Loan Account and shall thereafter constitute Advances hereunder and shall accrue interest at the rate then applicable to Advances that are Base Rate Loans hereunder.

  
 (e) Computation. All interest and fees chargeable under
the Loan Documents shall be computed on the basis of a 360 day year for the actual number of days elapsed. In the event the Base Rate is changed from time to time hereafter, the rates of interest hereunder based upon the Base Rate automatically and
immediately shall be increased or decreased by an amount equal to such change in the Base Rate. 
  
 (f) Intent to Limit Charges to Maximum Lawful Rate. In no event shall the interest rate or rates payable under this Agreement, plus any other
amounts paid in connection herewith, exceed the highest rate permissible under any law that a court of competent jurisdiction shall, in a final determination, deem applicable. Borrower and the Lender Group, in executing and delivering this
Agreement, intend legally to agree upon the rate or rates of interest and manner of payment stated within it; provided, however, that, anything contained herein to the contrary notwithstanding, if said rate or rates of interest or
manner of payment exceeds the maximum allowable under applicable law, then, ipso facto, as of the date of this Agreement, Borrower is and shall be liable only for the payment of such maximum as allowed by law, and payment received from
Borrower in excess of such legal maximum, whenever received, shall be applied to reduce the principal balance of the Obligations to the extent of such excess or paid to Borrower. 
  
 2.7 Cash Management. 
  

(a) Borrower shall and shall cause each of its Restricted Subsidiaries to (i) establish and maintain cash management services of a type and on
terms satisfactory to Agent at one or more of the banks set forth on Schedule 2.7(a) (each a “Cash Management Bank”), and shall request in writing and otherwise take such reasonable steps to ensure that all of its and its
Restricted Subsidiaries’ Account Debtors forward payment of the amounts owed by them directly to such Cash Management Bank, and (ii) deposit or cause to be deposited promptly, and in any event no later than the first Business Day after the
date of receipt thereof, all of their Collections (including those sent directly by their Account Debtors to Borrower or one of its Restricted Subsidiaries) into a bank account in Agent’s name (a “Cash Management Account”) at
one of the Cash Management Banks. 
  
 (b) Each Cash Management
Bank shall establish and maintain Cash Management Agreements with Agent and Borrower (or, as applicable, a Borrower’s Restricted Subsidiaries), in form and substance reasonably acceptable to Agent. Each such Cash Management Agreement shall
provide, among other things, that (i) the Cash Management Bank will comply with any instructions originated by Agent directing the disposition of the funds in such Cash Management Account without further consent by Borrower or its Restricted
Subsidiaries, as applicable, (ii) the Cash Management Bank has no rights of setoff or recoupment or any other claim against the applicable Cash Management Account other than for payment of its service fees and other charges directly related to
the administration of such Cash Management Account and for returned checks or other items of payment, (iii) at any time after which Agent so instructs such Cash Management Bank (a “Cash Sweep Instruction”), it immediately will
forward by daily sweep all amounts in the applicable Cash Management Account to the Agent’s Account until such time (if any) as Agent, in its sole discretion, notifies it that the Cash Sweep Instruction is terminated, and (iv) if clause
(iii) is not applicable, then Borrower may direct the Cash Management Bank to immediately transfer all such amounts to any Deposit Account designated by Borrower for use by Borrower in accordance with this Agreement. Agent may issue a Cash
Sweep Instruction only if: (x) an Event of Default shall have occurred and be continuing; or (y) a Triggering Event Date has occurred. 
  

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 (c) So long as no Default or Event of Default has occurred and is continuing, Borrower may amend
Schedule 2.7(a) to add or replace a Cash Management Bank or Cash Management Account; provided, however, that (i) such prospective Cash Management Bank shall be satisfactory to Agent in its Permitted Discretion and Agent
shall have consented in writing in advance to the opening of such Cash Management Account with the prospective Cash Management Bank (such consent not to be unreasonably withheld or delayed), and (ii) prior to the time of the opening of such
Cash Management Account, Borrower (or its Restricted Subsidiaries, as applicable) and such prospective Cash Management Bank shall have executed and delivered to Agent a Cash Management Agreement. Borrower (or its Restricted Subsidiaries, as
applicable) shall close any of its Cash Management Accounts (and establish replacement cash management accounts in accordance with the foregoing sentence) promptly and in any event within 30 days of notice from Agent that the creditworthiness of any
Cash Management Bank is no longer acceptable in Agent’s reasonable judgment, or as promptly as practicable and in any event within 60 days of notice from Agent that the operating performance, funds transfer, or availability procedures or
performance of the Cash Management Bank with respect to Cash Management Accounts or Agent’s liability under any Cash Management Agreement with such Cash Management Bank is no longer acceptable in Agent’s reasonable judgment. 
  
 (d) The Cash Management Accounts shall be cash collateral accounts subject to
Control Agreements. 
  
 2.8 Crediting Payments. The
receipt of any payment item by Agent (whether from transfers to Agent by the Cash Management Banks pursuant to the Cash Management Agreements or otherwise) shall not be considered a payment on account unless such payment item is a wire transfer of
immediately available federal funds made to the Agent’s Account or unless and until such payment item is honored when presented for payment. Should any payment item not be honored when presented for payment, then Borrower shall be deemed not to
have made such payment and interest shall be calculated accordingly. Anything to the contrary contained herein notwithstanding, any payment item shall be deemed received by Agent only if it is received into the Agent’s Account on a Business Day
on or before 11:00 a.m. (California time). If any payment item is received into the Agent’s Account on a non-Business Day or after 11:00 a.m. (California time) on a Business Day, it shall be deemed to have been received by Agent as of the
opening of business on the immediately following Business Day. 
  
 2.9 Designated Account. Agent is authorized to make the Advances and the Term Loan, and Issuing Lender is authorized to issue the Letters of Credit, under this Agreement based upon telephonic or other instructions received
from anyone purporting to be an Authorized Person or, without instructions, if pursuant to Section 2.6(d). Borrower agrees to establish and maintain the Designated Account with the Designated Account Bank for the purpose of receiving the
proceeds of the Advances requested by Borrower and made by Agent or the Lenders hereunder. Unless otherwise agreed by Agent and Borrower, any Advance, Protective Advance, or Swing Loan requested by Borrower and made by Agent or the Lenders hereunder
shall be made to the Designated Account. 
  
 2.10
Maintenance of Loan Account; Statements of Obligations. Agent shall maintain an account on its books in the name of Borrower (the “Loan Account”) on which Borrower will be charged with the Term Loan, all Advances
(including Protective Advances and Swing Loans) made by Agent, Swing Lender, or the Lenders to Borrower or for Borrower’s account, the Letters of Credit issued by Issuing Lender for Borrower’s account, and with all other payment
Obligations hereunder or under the other Loan Documents (except for Bank Product Obligations), including, accrued interest, fees and expenses, and Lender Group Expenses. In accordance with Section 2.8, the Loan Account will be credited
with all payments received by Agent from Borrower or for Borrower’s account, including all amounts received in the Agent’s Account from any Cash Management Bank. Agent shall render statements regarding the Loan Account to Borrower,
including principal, interest, fees, and including an itemization of all charges and expenses constituting Lender Group Expenses owing. Within 30 days after receipt of such statements Borrower shall deliver to Agent written objection thereto
describing the error or errors contained in any such statements (if any). Absent such written objection, such statements, absent manifest error, shall be conclusively presumed to be correct and accurate and constitute an account stated between
Borrower and the Lender Group. 
  

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 2.11 Fees. Borrower shall pay to Agent, as and when due and payable under the terms of the
Fee Letter, the fees set forth in the Fee Letter. 
  
 2.12
Letters of Credit. 
  
 (a) Subject to the terms and
conditions of this Agreement, the Issuing Lender agrees to issue letters of credit for the account of Borrowers (each, an “L/C”) or to purchase participations or execute indemnities or reimbursement obligations (each such
undertaking, an “L/C Undertaking”) with respect to letters of credit issued by an Underlying Issuer (as of the Closing Date, the prospective Underlying Issuer is to be Wells Fargo) for the account of Borrower. Each request for the
issuance of a Letter of Credit, or the amendment, renewal, or extension of any outstanding Letter of Credit, shall be made in writing by an Authorized Person and delivered to the Issuing Lender and Agent via hand delivery, telefacsimile, or other
electronic method of transmission reasonably in advance of the requested date of issuance, amendment, renewal, or extension. Each such request shall be in form and substance satisfactory to the Issuing Lender in its Permitted Discretion and shall
specify (i) the amount of such Letter of Credit, (ii) the date of issuance, amendment, renewal, or extension of such Letter of Credit, (iii) the expiration date of such Letter of Credit, (iv) the name and address of the
beneficiary thereof (or the beneficiary of the Underlying Letter of Credit, as applicable), and (v) such other information (including, in the case of an amendment, renewal, or extension, identification of the outstanding Letter of Credit to be
so amended, renewed, or extended) as shall be necessary to prepare, amend, renew, or extend such Letter of Credit. If requested by the Issuing Lender, Borrower also shall be an applicant under the application with respect to any Underlying Letter of
Credit that is to be the subject of an L/C Undertaking. The Issuing Lender shall have no obligation to issue a Letter of Credit if any of the following would result after giving effect to the issuance of such requested Letter of Credit: 

 
 (i) the Letter of Credit Usage would exceed the Availability, or

  
 (ii) the Letter of Credit Usage would exceed $2,000,000, or

  
 (iii) the Letter of Credit Usage would exceed the Maximum
Revolver Amount less the outstanding amount of Advances. 
  
 Borrower and the Lender Group acknowledge and agree that certain Underlying Letters of Credit may be issued at Borrower’s request to support letters of credit that already are outstanding as of the Closing Date. Each Letter of Credit
(and corresponding Underlying Letter of Credit) shall be in form and substance acceptable to the Issuing Lender (in the exercise of its Permitted Discretion), including the requirement that the amounts payable thereunder must be payable in Dollars.
If Issuing Lender is obligated to advance funds under a Letter of Credit, Borrower immediately shall reimburse such L/C Disbursement to Issuing Lender by paying to Agent an amount equal to such L/C Disbursement not later than 11:00 a.m., California
time, on the date that such L/C Disbursement is made, if Borrower shall have received written or telephonic notice of such L/C Disbursement prior to 10:00 a.m., California time, on such date, or, if such notice has not been received by Borrower
prior to such time on such date, then not later than 11:00 a.m., California time, on (i) the Business Day that Borrower receives such notice, if such notice is received prior to 10:00 a.m., California time, on the date of receipt, or
(ii) the next Business Day after the Borrower receives such notice, if such notice is received after 10:00 a.m., California time, and, in the absence of such reimbursement, the L/C Disbursement immediately and automatically shall be deemed to
be an Advance hereunder and, thereafter, shall bear interest at the rate then applicable to Advances that are Base Rate Loans under Section 2.6. To the extent an L/C Disbursement is deemed to be an Advance hereunder, Borrower’s
obligation to reimburse such L/C Disbursement shall be discharged and replaced by the resulting Advance. Promptly following receipt by Agent of any payment from Borrower pursuant to this paragraph, Agent shall distribute such payment to the Issuing
Lender or, to the extent that Lenders have made payments pursuant to Section 2.12(c) to reimburse the Issuing Lender, then to such Lenders and the Issuing Lender as their interests may appear. 
  

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 (b) Promptly following receipt of a notice of L/C Disbursement pursuant to Section 2.12(a),
each Lender with a Revolver Commitment agrees to fund its Pro Rata Share of any Advance deemed made pursuant to the foregoing subsection on the same terms and conditions as if Borrower had requested such Advance and Agent shall promptly pay to
Issuing Lender the amounts so received by it from the Lenders. By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) and without any further action on the part of the Issuing Lender or the
Lenders with Revolver Commitments, the Issuing Lender shall be deemed to have granted to each Lender with a Revolver Commitment, and each Lender with a Revolver Commitment shall be deemed to have purchased, a participation in each Letter of Credit,
in an amount equal to its Pro Rata Share of the Risk Participation Liability of such Letter of Credit, and each such Lender agrees to pay to Agent, for the account of the Issuing Lender, such Lender’s Pro Rata Share of any payments made by the
Issuing Lender under such Letter of Credit. In consideration and in furtherance of the foregoing, each Lender with a Revolver Commitment hereby absolutely and unconditionally agrees to pay to Agent, for the account of the Issuing Lender, such
Lender’s Pro Rata Share of each L/C Disbursement made by the Issuing Lender and not reimbursed by Borrower on the date due as provided in clause (a) of this Section, or of any reimbursement payment required to be refunded to Borrower for
any reason. Each Lender with a Revolver Commitment acknowledges and agrees that its obligation to deliver to Agent, for the account of the Issuing Lender, an amount equal to its respective Pro Rata Share of each L/C Disbursement made by the Issuing
Lender pursuant to this Section 2.12(b) shall be absolute and unconditional and such remittance shall be made notwithstanding the occurrence or continuation of an Event of Default or Default or the failure to satisfy any condition set
forth in Section 3 hereof. If any such Lender fails to make available to Agent the amount of such Lender’s Pro Rata Share of each L/C Disbursement made by the Issuing Lender in respect of such Letter of Credit as provided in this
Section, such Lender shall be deemed to be a Defaulting Lender and Agent (for the account of the Issuing Lender) shall be entitled to recover such amount on demand from such Lender together with interest thereon at the Defaulting Lender Rate until
paid in full. 
  
 (c) Borrower hereby agrees to indemnify, save,
defend, and hold the Lender Group harmless from any loss, cost, expense, or liability, and reasonable attorneys fees incurred by the Lender Group arising out of or in connection with any Letter of Credit; provided, however, that
Borrower shall not be obligated hereunder to indemnify for any loss, cost, expense, or liability to the extent that it is caused by the gross negligence or willful misconduct of the Issuing Lender or any other member of the Lender Group. Borrower
agrees to be bound by the Underlying Issuer’s regulations and interpretations of any Underlying Letter of Credit or by Issuing Lender’s interpretations of any L/C issued by Issuing Lender to or for Borrower’s account, even though this
interpretation may be different from Borrower’s own, and Borrower understands and agrees that the Lender Group shall not be liable for any error, negligence, or mistake, whether of omission or commission, in following Borrower’s
instructions or those contained in the Letter of Credit or any modifications, amendments, or supplements thereto. Borrower understands that the L/C Undertakings may require Issuing Lender to indemnify the Underlying Issuer for certain costs or
liabilities arising out of claims by Borrower against such Underlying Issuer. Borrower hereby agrees to indemnify, save, defend, and hold the Lender Group harmless with respect to any loss, cost, expense (including reasonable attorneys fees), or
liability incurred by the Lender Group under any L/C Undertaking as a result of the Lender Group’s indemnification of any Underlying Issuer; provided, however, that Borrower shall not be obligated hereunder to indemnify for any
loss, cost, expense, or liability to the extent that it is caused by the gross negligence or willful misconduct of the Issuing Lender or any other member of the Lender Group. Borrower hereby acknowledges and agrees that neither the Lender Group nor
the Issuing Lender shall be responsible for delays, errors, or omissions resulting from the malfunction of equipment in connection with any Letter of Credit. 
  
 (d) Borrower hereby authorizes and directs any Underlying Issuer to deliver to the Issuing Lender all instruments, documents, and other writings and
property received by such Underlying Issuer pursuant to such Underlying Letter of Credit and to accept and rely upon the Issuing Lender’s instructions with respect to all matters arising in connection with such Underlying Letter of Credit and
the related application. 
  

 - 14 - 

 (e) Any and all issuance charges, commissions, fees, and costs incurred by the Issuing Lender relating to
Underlying Letters of Credit shall be Lender Group Expenses for purposes of this Agreement and immediately shall be reimbursable by Borrower to Agent for the account of the Issuing Lender; it being acknowledged and agreed by Borrower that, as of the
Closing Date, the issuance charge imposed by the prospective Underlying Issuer is .825% per annum times the face amount of each Underlying Letter of Credit, that such issuance charge may be changed from time to time, and that the Underlying
Issuer also imposes a schedule of charges for amendments, extensions, drawings, and renewals. 
  
 (f) If by reason of (i) any change after the Closing Date in any applicable law, treaty, rule, or regulation or any change in the interpretation or application thereof by any Governmental Authority, or
(ii) compliance by the Underlying Issuer or the Lender Group with any direction, request, or requirement (irrespective of whether having the force of law) of any Governmental Authority or monetary authority including, Regulation D of the
Federal Reserve Board as from time to time in effect (and any successor thereto): 
  
 (i) any reserve, deposit, or similar requirement is or shall be imposed or modified in respect of any Letter of Credit issued hereunder, or 
  
 (ii) there shall be imposed on the Underlying Issuer or the Lender Group any other condition regarding any Underlying
Letter of Credit or any Letter of Credit issued pursuant hereto, 
  
 and the
result of the foregoing is to increase, directly or indirectly, the cost to the Lender Group of issuing, making, guaranteeing, or maintaining any Letter of Credit or to reduce the amount receivable in respect thereof by the Lender Group, then, and
in any such case, Agent may, at any time within a reasonable period after the additional cost is incurred or the amount received is reduced, notify Borrower, and Borrower shall pay on demand such amounts as Agent may specify to be necessary to
compensate the Lender Group for such additional cost or reduced receipt, together with interest on such amount from the date of such demand until payment in full thereof at the rate then applicable to Base Rate Loans hereunder. The determination by
Agent of any amount due pursuant to this Section, as set forth in a certificate setting forth the calculation thereof in reasonable detail, shall, in the absence of manifest or demonstrable error, be final and conclusive and binding on all of the
parties hereto. 
  
 2.13 LIBOR Option. 

 
 (a) Interest and Interest Payment Dates. In lieu of having
interest charged at the rate based upon the Base Rate, Borrower shall have the option (the “LIBOR Option”) to have interest on all or a portion of the Advances or the Term Loan be charged at a rate of interest based upon the LIBOR
Rate. Interest on LIBOR Rate Loans shall be payable on the earliest of (i) the last day of the Interest Period applicable thereto (provided, however, that, subject to the following clauses (ii) and (iii), in the case of any
Interest Period greater than 3 months in duration, interest shall be payable at 3 month intervals after the commencement of the applicable Interest Period and on the last day of such Interest Period), (ii) the occurrence of an Event of Default
in consequence of which the Required Lenders or Agent on behalf thereof have elected to accelerate the maturity of all or any portion of the Obligations, or (iii) termination of this Agreement pursuant to the terms hereof. On the last day of
each applicable Interest Period, unless Borrower properly has exercised the LIBOR Option with respect thereto, the interest rate applicable to such LIBOR Rate Loan automatically shall convert to the rate of interest then applicable to Base Rate
Loans of the same type hereunder. At any time that an Event of Default has occurred and is continuing, Borrower no longer shall have the option to request that Advances or the Term Loan bear interest at a rate based upon the LIBOR Rate and Agent
shall have the right to convert the interest rate on all outstanding LIBOR Rate Loans to the rate then applicable to Base Rate Loans hereunder. 
  

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 (b) LIBOR Election. 
  
 (i) Borrower may, at any time and from time to time, so long as no Event of Default has occurred and is continuing, elect
to exercise the LIBOR Option by notifying Agent prior to 11:00 a.m. (California time) at least 3 Business Days prior to the commencement of the proposed Interest Period (the “LIBOR Deadline”). Notice of Borrower’s election of
the LIBOR Option for a permitted portion of the Advances or the Term Loan and an Interest Period pursuant to this Section shall be made by delivery to Agent of a LIBOR Notice received by Agent before the LIBOR Deadline, or by telephonic notice
received by Agent before the LIBOR Deadline (to be confirmed by delivery to Agent of a LIBOR Notice received by Agent prior to 5:00 p.m. (California time) on the same day). Promptly upon its receipt of each such LIBOR Notice, Agent shall provide a
copy thereof to each of the Lenders having a Revolver Commitment. 
  
 (ii) Each LIBOR Notice shall be irrevocable and binding on Borrower. In connection with each LIBOR Rate Loan, Borrower shall indemnify, defend, and hold Agent and the Lenders harmless against any loss, cost, or expense incurred by Agent or
any Lender as a result of (a) the payment of any principal of any LIBOR Rate Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any LIBOR Rate Loan
other than on the last day of the Interest Period applicable thereto, or (c) the failure to borrow, convert, continue or prepay any LIBOR Rate Loan on the date specified in any LIBOR Notice delivered pursuant hereto (such losses, costs, and
expenses, collectively, “Funding Losses”). Funding Losses shall, with respect to Agent or any Lender, be deemed to equal the amount determined by Agent or such Lender to be the excess, if any, of (i) the amount of interest that
would have accrued on the principal amount of such LIBOR Rate Loan had such event not occurred, at the LIBOR Rate that would have been applicable thereto, for the period from the date of such event to the last day of the then current Interest Period
therefor (or, in the case of a failure to borrow, convert, or continue, for the period that would have been the Interest Period therefor), minus (ii) the amount of interest that would accrue on such principal amount for such period at
the interest rate which Agent or such Lender would be offered were it to be offered, at the commencement of such period, Dollar deposits of a comparable amount and period in the London interbank market. A certificate of Agent or a Lender delivered
to Borrower setting forth any amount or amounts that Agent or such Lender is entitled to receive pursuant to this Section 2.13 shall be conclusive absent manifest error. 
  
 (iii) Borrower shall have not more than seven (7) LIBOR Rate Loans in effect at any given time. Borrower only may
exercise the LIBOR Option for LIBOR Rate Loans of at least $500,000 and integral multiples of $100,000 in excess thereof. 
  
 (c) Prepayments. Borrower may prepay LIBOR Rate Loans at any time; provided, however, that in the event that LIBOR Rate Loans are
prepaid on any date that is not the last day of the Interest Period applicable thereto, including as a result of any automatic prepayment through the required application by Agent of proceeds of Borrower’s and its Subsidiaries’ Collections
in accordance with Section 2.4(b) or for any other reason, including early termination of the term of this Agreement or acceleration of all or any portion of the Obligations pursuant to the terms hereof, Borrower shall indemnify, defend,
and hold Agent and the Lenders and their Participants harmless against any and all Funding Losses in accordance with clause (b)(ii) above. 
  
 (d) Special Provisions Applicable to LIBOR Rate. 
  
 (i) The LIBOR Rate may be adjusted by Agent with respect to any Lender on a prospective basis to take into account any additional or increased costs to
such Lender of maintaining or obtaining any eurodollar deposits or increased costs, in each case, due to changes in applicable law occurring subsequent to the commencement of the then applicable Interest Period, including changes in tax laws (except
changes of general applicability in corporate income tax laws) and changes in the reserve requirements imposed by the Board of Governors of the Federal Reserve System (or any successor), excluding the Reserve Percentage, which additional or
increased costs would increase the cost of funding loans bearing interest at the LIBOR Rate. In any such event, the affected Lender shall give Borrower and Agent notice of such a 

  

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determination and adjustment and Agent promptly shall transmit the notice to each other Lender and, upon its receipt of the notice from the affected Lender,
Borrower may, by notice to such affected Lender (y) require such Lender to furnish to Borrower a statement setting forth the basis for adjusting such LIBOR Rate and the method for determining the amount of such adjustment, or (z) repay the
LIBOR Rate Loans with respect to which such adjustment is made (together with any amounts due under clause (b)(ii) above). 
  
 (ii) In the event that any change in market conditions or any law, regulation, treaty, or directive, or any change therein or in the interpretation of
application thereof, shall at any time after the date hereof, in the reasonable opinion of any Lender, make it unlawful or impractical for such Lender to fund or maintain LIBOR Rate Loans or to continue such funding or maintaining, or to determine
or charge interest rates at the LIBOR Rate, such Lender shall give notice of such changed circumstances to Agent and Borrower and Agent promptly shall transmit the notice to each other Lender and (y) in the case of any LIBOR Rate Loans of such
Lender that are outstanding, the date specified in such Lender’s notice shall be deemed to be the last day of the Interest Period of such LIBOR Rate Loans, and interest upon the LIBOR Rate Loans of such Lender thereafter shall accrue interest
at the rate then applicable to Base Rate Loans, and (z) Borrower shall not be entitled to elect the LIBOR Option until such Lender determines that it would no longer be unlawful or impractical to do so. 
  
 (e) No Requirement of Matched Funding. Anything to the contrary
contained herein notwithstanding, neither Agent, nor any Lender, nor any of their Participants, is required actually to acquire Eurodollar deposits to fund or otherwise match fund any Obligation as to which interest accrues at the LIBOR Rate. The
provisions of this Section shall apply as if each Lender or its Participants had match funded any Obligation as to which interest is accruing at the LIBOR Rate by acquiring Eurodollar deposits for each Interest Period in the amount of the LIBOR Rate
Loans. 
  
 2.14 Capital Requirements. If, after the
date hereof, any Lender determines that (i) the adoption of or change in any law, rule, regulation or guideline regarding capital requirements for banks or bank holding companies, or any change in the interpretation or application thereof by
any Governmental Authority charged with the administration thereof, or (ii) compliance by such Lender or its parent bank holding company with any guideline, request, or directive of any such entity regarding capital adequacy (whether or not
having the force of law), has the effect of reducing the return on such Lender’s or such holding company’s capital as a consequence of such Lender’s Commitments hereunder to a level below that which such Lender or such holding company
could have achieved but for such adoption, change, or compliance (taking into consideration such Lender’s or such holding company’s then existing policies with respect to capital adequacy and assuming the full utilization of such
entity’s capital) by any amount deemed by such Lender to be material, then such Lender may notify Borrower and Agent thereof. Following receipt of such notice, Borrower agrees to pay such Lender on demand the amount of such reduction of return
of capital as and when such reduction is determined, payable within 90 days after presentation by such Lender of a statement in the amount and setting forth in reasonable detail such Lender’s calculation thereof and the assumptions upon which
such calculation was based (which statement shall be deemed true and correct absent manifest error). In determining such amount, such Lender may use any reasonable averaging and attribution methods. 
  
 3. CONDITIONS; TERM OF AGREEMENT. 
  
 3.1 Conditions Precedent to the Initial Extension of Credit.
The obligation of each Lender to make its initial extension of credit provided for hereunder, is subject to the fulfillment, to the satisfaction of Agent and each Lender of each of the conditions precedent set forth on Schedule 3.1 (the
making of such initial extension of credit by a Lender being conclusively deemed to be its satisfaction or waiver of the conditions precedent ). 
  

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 3.2 Conditions Precedent to all Extensions of Credit. The obligation of the Lender Group
(or any member thereof) to make any Advances hereunder at any time (or to extend any other credit hereunder) shall be subject to the following conditions precedent: 
  
 (a) the representations and warranties contained in this Agreement or in the other Loan Documents shall be true and correct
in all material respects on and as of the date of such extension of credit, as though made on and as of such date (except to the extent that such representations and warranties relate solely to an earlier date); 
  
 (b) no Default or Event of Default shall have occurred and be continuing on
the date of such extension of credit, nor shall either result from the making thereof; and 
  
 (c) no injunction, writ, restraining order, or other order of any nature restricting or prohibiting, directly or indirectly, the extending of such credit shall have been issued and remain in force by any Governmental
Authority against Borrower, Agent, any Lender, or any of their Affiliates. 
  
 3.3 Term. This Agreement shall continue in full force and effect for a term ending on October 5, 2009 (the “Maturity Date”). The foregoing notwithstanding, the Lender Group, upon
the election of the Required Lenders, shall have the right to terminate its funding obligations under this Agreement immediately and upon the occurrence and during the continuation of an Event of Default. 
  
 3.4 Effect of Termination. On the date of termination of this
Agreement, all Obligations (including contingent reimbursement obligations of Borrower with respect to outstanding Letters of Credit and all Bank Product Obligations but excluding indemnification or similar inchoate obligations) immediately shall
become due and payable without notice or demand (including (a) either (i) providing cash collateral to be held by Agent for the benefit of those Lenders with a Revolver Commitment in an amount equal to 105% of the Letter of Credit Usage,
or (ii) causing the original Letters of Credit to be returned to the Issuing Lender, and (b) providing cash collateral (in an amount determined by Agent as sufficient to satisfy the reasonably estimated credit exposure) to be held by Agent
for the benefit of the Bank Product Providers with respect to the Bank Product Obligations). No termination of this Agreement, however, shall relieve or discharge Borrower or its Subsidiaries of their duties, Obligations, or covenants hereunder or
under any other Loan Document and the Agent’s Liens in the Collateral shall remain in effect until all Obligations (including contingent reimbursement obligations of Borrower with respect to outstanding Letters of Credit, but excluding
indemnification or similar inchoate obligations) have been paid in full and the Lender Group’s obligations to provide additional credit hereunder have been terminated. When this Agreement has been terminated and all of the Obligations
(including contingent reimbursement obligations of Borrower with respect to outstanding Letters of Credit, but excluding indemnification or similar inchoate obligations) have been paid in full and the Lender Group’s obligations to provide
additional credit under the Loan Documents have been terminated irrevocably, Agent will, at Borrower’s sole expense, execute and deliver any termination statements, lien releases, mortgage releases, re-assignments of trademarks, discharges of
security interests, and other similar discharge or release documents (and, if applicable, in recordable form) as are reasonably necessary to release, as of record, the Agent’s Liens and all notices of security interests and liens previously
filed by Agent with respect to the Obligations. 
  
 3.5
Early Termination by Borrower. Borrower has the option, at any time upon 45 days prior written notice by Borrower to Agent, to terminate this Agreement by paying to Agent, in cash, the Obligations (including contingent reimbursement
obligations of Borrower with respect to outstanding Letters of Credit, but excluding indemnification or similar inchoate obligations) (including (a) either (i) providing cash collateral to be held by Agent for the benefit of those Lenders
with a Revolver Commitment in an amount equal to 105% of the Letter of Credit Usage, or (ii) causing the original Letters of Credit to be returned to the Issuing Lender, and (b) providing cash collateral (in an amount determined by Agent
as sufficient to satisfy the reasonably estimated credit exposure) to be held by Agent for the benefit of the Bank Product Providers with respect to the Bank Product Obligations), in full. If Borrower has sent a notice of termination pursuant to the
provisions of this Section, then the Commitments shall terminate and Borrower shall be obligated to repay the Obligations 

  

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(including contingent reimbursement obligations of Borrower with respect to outstanding Letters of Credit, but excluding indemnification or similar inchoate
obligations) (including (a) either (i) providing cash collateral to be held by Agent for the benefit of those Lenders with a Revolver Commitment in an amount equal to 105% of the Letter of Credit Usage, or (ii) causing the original
Letters of Credit to be returned to the Issuing Lender, and (b) providing cash collateral (in an amount determined by Agent as sufficient to satisfy the reasonably estimated credit exposure) to be held by Agent for the benefit of the Bank
Product Providers with respect to the Bank Product Obligations), in full, on the date set forth as the date of termination of this Agreement in such notice. 
  
 4. REPRESENTATIONS AND WARRANTIES. 
  
 In order to induce the Lender Group to enter into this Agreement, Borrower makes the following representations and warranties to the Lender Group which
shall be true, correct, and complete, in all material respects, as of the date hereof, and shall be true, correct, and complete, in all material respects, as of the Closing Date and at and as of the date of the making of each Advance (or other
extension of credit) made thereafter, as though made on and as of the date of such Advance (or other extension of credit) (except to the extent that such representations and warranties relate solely to an earlier date) and such representations and
warranties shall survive the execution and delivery of this Agreement: 
  
 4.1 No Encumbrances. Borrower and its Subsidiaries have good and indefeasible title to, or a valid leasehold interest in, their personal property assets and good and marketable title to, or a valid leasehold interest in, their
Real Property, in each case, free and clear of Liens except for Permitted Liens. 
  
 4.2 Accounts. As to each account identified by Borrower in any report submitted to Agent, such Account is a bona fide existing payment obligation of the Account Debtors created by the sale and delivery
of Inventory or the rendition of services to such Account Debtors in the ordinary course of Borrower’s business. 
  
 4.3 Inventory. As to each item of Inventory that is identified by Borrower in any report submitted to Agent, such Inventory is of good and
merchantable quality, free from known defects. 
  
 4.4
Equipment. Each material item of Equipment of Borrower and its Subsidiaries is used or held for use in their business and is in good working order, ordinary wear and tear and damage by casualty excepted. 
  
 4.5 Location of Inventory and Equipment. The Inventory and
Equipment (other than vehicles or Equipment out for repair or Inventory in-transit to a bona fide purchaser thereof) of Borrower and its Restricted Subsidiaries are not stored with a bailee, warehouseman, or similar party and are located only at, or
in-transit between, the locations identified on Schedule 4.5 (as such Schedule may be updated pursuant to Section 5.9). 
  
 4.6 Inventory Records. Borrower keeps correct and accurate records itemizing and describing the type, quality, and quantity of its and its
Subsidiaries’ Inventory and the book value thereof. 
  
 4.7
Jurisdiction of Organization; Location of Chief Executive Office; Organizational Identification Number; Commercial Tort Claims. 
  
 (a) The jurisdiction of organization of Borrower and each of its Restricted Subsidiaries that is not an Inactive Domestic Subsidiary is set forth on
Schedule 4.7(a). 
  
 (b) The chief executive office of
Borrower and each of its Restricted Subsidiaries that is not an Inactive Domestic Subsidiary is located at the address indicated on Schedule 4.7(b) (as such Schedule may be updated pursuant to Section 5.9). 
  

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 (c) The organizational identification numbers of Borrower and each of its Restricted Subsidiaries that is
not an Inactive Domestic Subsidiary, if any, are identified on Schedule 4.7(c). 
  
 (d) As of the Closing Date, each of Borrower and its Restricted Subsidiaries that is not an Inactive Domestic Subsidiary does not hold any commercial tort claims, except as set forth on Schedule 4.7(d).

  
 4.8 Due Organization and Qualification;
Subsidiaries. 
  
 (a) Borrower is duly organized and
existing and in good standing under the laws of the jurisdiction of its organization and qualified to do business in any state where the failure to be so qualified reasonably could be expected to result in a Material Adverse Change. 
  
 (b) Set forth on Schedule 4.8(b), is a complete and accurate
description as of the Closing Date of the authorized capital Stock of Borrower, by class, and, as of the Closing Date, a description of the number of shares of each such class that are issued and outstanding. Other than as described on Schedule
4.8(b), there are no subscriptions, options, warrants, or calls relating to any shares of Borrower’s capital Stock, including any right of conversion or exchange under any outstanding security or other instrument. Borrower is not subject to
any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of its capital Stock or any security convertible into or exchangeable for any of its capital Stock. 
  
 (c) Set forth on Schedule 4.8(c), is a complete and accurate list of
Borrower’s direct and indirect Subsidiaries (that is not an Inactive Domestic Subsidiary or an Immaterial Foreign Subsidiary) as of the Closing Date, showing: (i) the jurisdiction of organization of each such Subsidiary of Borrower,
(ii) the nature of the legal organization of each such Subsidiary, (iii) the number and percentage of the capital Stock or other equity interests of each such Subsidiary that Borrower directly or indirectly owns, and (iv) any other
Persons directly or indirectly owning any interest in any such Subsidiary and the number and percentage of the capital Stock or other equity interests of such Subsidiary owned by such other Persons. All of the outstanding capital Stock of each such
Subsidiary has been validly issued and is fully paid and non-assessable. 
  
 (d) Except as set forth on Schedule 4.8(c), there are no subscriptions, options, warrants, or calls relating to any shares of Borrower’s Restricted Subsidiaries’ (that are not Inactive Domestic
Subsidiaries or Immaterial Foreign Subsidiaries) capital Stock, including any right of conversion or exchange under any outstanding security or other instrument. Neither Borrower nor any of its Subsidiaries (that is not an Inactive Domestic
Subsidiary or an Immaterial Foreign Subsidiary) is subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of Borrower’s Subsidiaries’ capital Stock or any security convertible into or
exchangeable for any such capital Stock. 
  
 (e) Each of Aimtech
Corporation, Communication Strategies, Inc., Docent International Corporation, Intelliprep Technologies, Incorporated, Meliora Systems, Inc., and Pathlore Cupertino, Inc. (formerly Silton-Bookman Systems, Inc.) (collectively, the “Inactive
Domestic Subsidiaries”) is dormant and inactive. Without limiting the foregoing, no Inactive Domestic Subsidiary (i) owns any assets (with the exception of United States Copyright TX 2-767-505 owned by Communication Strategies, Inc.),
(ii) generates any business revenues, or (iii) otherwise conducts any business activities. 
  
 4.9 Due Authorization; No Conflict. 
  
 (a) The execution, delivery, and performance by Borrower of this Agreement and the Loan Documents to which it is a party have been duly authorized by all
necessary action on the part of Borrower. 
  
 (b) The execution,
delivery, and performance by Borrower of this Agreement and the other Loan Documents to which it is a party do not and will not (i) violate any provision of federal, state, or local law or regulation applicable to Borrower, the Governing
Documents of Borrower, or any order, 

  

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judgment, or decree of any court or other Governmental Authority binding on Borrower, (ii) conflict with, result in a breach of, or constitute (with due
notice or lapse of time or both) a default under any material contractual obligation of Borrower, (iii) result in or require the creation or imposition of any Lien of any nature whatsoever upon any properties or assets of Borrower, other than
Permitted Liens, or (iv) require any approval of Borrower’s interestholders or any approval or consent of any Person under any material contractual obligation of Borrower, other than consents or approvals that have been obtained and that
are still in force and effect. 
  
 (c) Other than the filing of
financing statements and the recordation of the Mortgages, the execution, delivery, and performance by Borrower of this Agreement and the other Loan Documents to which Borrower is a party do not and will not require any registration with, consent,
or approval of, or notice to, or other action with or by, any Governmental Authority, other than consents or approvals that have been obtained and that are still in force and effect. 
  
 (d) This Agreement and the other Loan Documents to which Borrower is a party, and all other documents contemplated hereby
and thereby, when executed and delivered by Borrower will be the legally valid and binding obligations of Borrower, enforceable against Borrower in accordance with their respective terms, except as enforcement may be limited by equitable principles
or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors’ rights generally. 
  
 (e) The Agent’s Liens are validly created, perfected, and first priority Liens, subject only to Permitted Liens (to the extent that such perfection
can be accomplished upon (a) the filing of appropriate financing statements with the appropriate Secretary of State or the filing of appropriate security agreements with the United States Patent and Trademark Office and the United States
Copyright Office, in each case in favor of Agent, on behalf of the Lender Group and the Bank Product Providers, or (b) the Agent obtaining control pursuant to the Control Agreements over those items of Collateral in which a security interest is
perfected through control). 
  
 (f) The execution, delivery, and
performance by each Guarantor of the Loan Documents to which it is a party have been duly authorized by all necessary action on the part of such Guarantor. 
  
 (g) The execution, delivery, and performance by each Guarantor of the Loan Documents to which it is a party do not and will not (i) violate any
provision of federal, state, or local law or regulation applicable to such Guarantor, the Governing Documents of such Guarantor, or any order, judgment, or decree of any court or other Governmental Authority binding on such Guarantor,
(ii) conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any material contractual obligation of such Guarantor, (iii) result in or require the creation or imposition of any Lien of
any nature whatsoever upon any properties or assets of such Guarantor, other than Permitted Liens, or (iv) require any approval of such Guarantor’s interestholders or any approval or consent of any Person under any material contractual
obligation of such Guarantor, other than consents or approvals that have been obtained and that are still in force and effect. 
  
 (h) Other than the filing of financing statements and the recordation of the Mortgages, the execution, delivery, and performance by each Guarantor of the
Loan Documents to which such Guarantor is a party do not and will not require any registration with, consent, or approval of, or notice to, or other action with or by, any Governmental Authority, other than consents or approvals that have been
obtained and that are still in force and effect. 
  
 (i) The Loan
Documents to which each Guarantor is a party, and all other documents contemplated hereby and thereby, when executed and delivered by such Guarantor will be the legally valid and binding obligations of such Guarantor, enforceable against such
Guarantor in accordance with their respective terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors’ rights generally.

  

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 4.10 Litigation. Other than those matters disclosed on Schedule 4.10, there are no
actions, suits, or proceedings pending or, to the best knowledge of Borrower, threatened against Borrower or any of its Subsidiaries other than those matters that reasonably could not be expected to result in a Material Adverse Change. 

 
 4.11 No Material Adverse Change. All financial statements
relating to Borrower and its Subsidiaries that have been delivered by Borrower to the Lender Group have been prepared in accordance with GAAP (except, in the case of unaudited financial statements, for the lack of footnotes and being subject to
year-end audit adjustments) and present fairly in all material respects, Borrower’s and its Subsidiaries’ financial condition as of the date thereof and results of operations for the period then ended. There has not been a Material Adverse
Change since the date of the latest financial statements submitted to Agent on or before the Closing Date. 
  
 4.12 Fraudulent Transfer. 
  
 (a) Each of Borrower and each of its Subsidiaries is Solvent. 
  
 (b) No transfer of property is being made by Borrower or its Subsidiaries and no obligation is being incurred by Borrower or its Subsidiaries in
connection with the transactions contemplated by this Agreement or the other Loan Documents with the intent to hinder, delay, or defraud either present or future creditors of Borrower or its Subsidiaries. 
  
 4.13 Employee Benefits.  
  
 (a) Set forth on Schedule 4.13(a) is a complete and accurate list of
all Plans that meet the definition of an “employee pension benefit plan” under Section 3(2) of ERISA and that are currently maintained or contributed to by Borrower, any of its Restricted Subsidiaries or any of their respective ERISA
Affiliates as of the Closing Date. 
  
 (b) Borrower, its
Restricted Subsidiaries, and their respective ERISA Affiliates are in compliance in all material respects with all applicable provisions and requirements of ERISA and the regulations and published interpretations thereunder with respect to each
Plan, and have performed all their obligations in all material respects under each Plan. 
  
 (c) No ERISA Event has occurred or is reasonably expected to occur that reasonably could be expected to result in a Material Adverse Change. 
  
 (d) Except to the extent required under Section 4980B of the IRC, or as described on Schedule 4.13(d) hereto, no
Plan provides health benefits (through the purchase of insurance or otherwise) for any retired or former employee of Borrower, any of its Restricted Subsidiaries or any of their respective ERISA Affiliates. 
  
 (e) As of the most recent valuation date for any Pension Plan, the amount of
outstanding benefit liabilities (as defined in Section 4001(a)(18) of ERISA), individually or in the aggregate for all Pension Plans (excluding for purposes of such computation any Pension Plans with respect to which assets exceed benefit
liabilities), does not exceed $500,000. 
  
 (f) Provided that the
assets of the Lenders used to fund Advances or the Term Loan do not and will not constitute “plan assets” within the meaning of United States Department of Labor Regulations set forth in 29 C.F.R. §2510.3-101, the execution and
delivery of this Agreement and the consummation of the transactions contemplated hereunder will not involve any transaction that is subject to the prohibitions of Section 406 of ERISA or in connection with which taxes could be imposed pursuant
to Section 4975(c)(1)(A)-(D) of the IRC. 
  

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 (g) All liabilities under each Plan are (i) funded to at least the minimum level required by law or,
if higher, to the level required by the terms governing the Plans, (ii) insured with an insurance company that is reasonably believed by Borrower to be reputable, (iii) provided for or recognized in the financial statements most recently
delivered to Agent pursuant to Section 5.3 hereof to the extent required by GAAP or (iv) estimated in the formal notes to the financial statements most recently delivered to Agent pursuant to Section 5.3 hereof to the
extent required by GAAP. 
  
 (h) To the best knowledge of
Borrower, there are no circumstances which may give rise to a material liability in relation to any Plan which is not funded, insured, provided for, recognized or estimated in the manner described in subsection (g) above. 
  
 4.14 Environmental Condition. Except as set forth on
Schedule 4.14, (a) to Borrower’s knowledge, none of Borrower’s or its Subsidiaries’ owned Real Property or assets has ever been used by Borrower, its Subsidiaries, or by previous owners or operators in the disposal of, or
to produce, store, handle, treat, release, or transport, any Hazardous Materials, where such use, production, storage, handling, treatment, release or transport was in violation, in any material respect, of any applicable Environmental Law,
(b) to Borrower’s knowledge, none of Borrower’s or its Subsidiaries’ owned Real Property or assets has ever been designated or identified in any manner pursuant to any environmental protection statute as a Hazardous Materials
disposal site, (c) neither Borrower nor any of its Subsidiaries has received notice that a Lien arising under any Environmental Law has attached to any revenues or to any Real Property owned by Borrower or its Subsidiaries, and (d) neither
Borrower nor its Subsidiaries has received a summons, citation, notice, or directive from the United States Environmental Protection Agency or any other Governmental Authority concerning any action or omission by Borrower or its Subsidiaries
resulting in the releasing or disposing of Hazardous Materials into the environment. 
  
 4.15 Intellectual Property. Borrower and its Restricted Subsidiaries own, or hold licenses in, all trademarks, trade names, copyrights, patents, patent rights, and licenses that are necessary to the
conduct of its business as currently conducted, and attached hereto as Schedule 4.15 (as updated from time to time) is a true, correct, and complete listing of all material patents, patent applications, trademarks, trademark applications,
copyrights, and copyright registrations as to which Borrower or one of its Restricted Subsidiaries is the owner or is an exclusive licensee. No Unrestricted Subsidiary owns, or holds, directly or indirectly, any trademarks, trade names, copyrights,
patents, patent rights, or licenses that are necessary to the conduct of Borrower’s or any Restricted Subsidiary’s business as currently conducted. 
  
 4.16 Leases. Borrower and its Subsidiaries enjoy peaceful and undisturbed possession under all leases material to their business and to
which they are parties or under which they are operating, and all of such material leases are valid and subsisting and no material default by Borrower or its Subsidiaries exists under any of them. 
  
 4.17 Deposit Accounts and Securities Accounts. Set forth on
Schedule 4.17 is a listing of all of Borrower’s and its Subsidiaries’ Deposit Accounts and Securities Accounts, including, with respect to each bank or securities intermediary (a) the name and address of such Person, and
(b) the account numbers of the Deposit Accounts or Securities Accounts maintained with such Person. 
  
 4.18 Complete Disclosure. All factual information (taken as a whole) furnished by or on behalf of Borrower or its Subsidiaries in writing to
Agent or any Lender (including all information contained in the Schedules hereto or in the other Loan Documents) for purposes of or in connection with this Agreement, the other Loan Documents, the Acquisition Documents or any transaction
contemplated herein or therein is, and all other such factual information (taken as a whole) hereafter furnished by or on behalf of Borrower or its Subsidiaries in writing to Agent or any Lender will be, true and accurate, in all material respects,
on the date as of which such information is dated or certified and not incomplete by omitting to state any fact necessary to make such information (taken as a whole) not misleading in any material respect at such time in light of the circumstances
under which such information was provided. On the Closing Date, the Closing Date Projections represent, and as of the date on which any other Projections are delivered to Agent, such additional Projections represent Borrower’s good faith
estimate of its and its Subsidiaries future performance for the periods covered thereby. 
  

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 4.19 Indebtedness. Set forth on Schedule 4.19 is a true and complete list of all
Indebtedness of Borrower and its Subsidiaries outstanding immediately prior to the Closing Date that is to remain outstanding after the Closing Date and such Schedule accurately reflects the aggregate principal amount of such Indebtedness and
describes the principal terms thereof. 
  
 4.20 Material
Contracts. Set forth on Schedule 4.20 is a complete and accurate list, as of the Closing Date, of all Material Contracts, showing the parties and subject matter thereof and amendments and modifications thereto. Each Material Contract
(a) is in full force and effect and is binding upon and enforceable against Borrower, and to Borrower’s best knowledge, each other Person that is a party thereto in accordance with its terms, (b) has not been otherwise amended or
modified (other than amendments or modifications that are not prohibited by the terms of this Agreement or any other Loan Document), except that there have been no material amendments or modifications to the Acquisition Documents without the
requisite consent provided for hereunder, and (c) is not in default due to the action of Borrower. 
  
 4.21 Acquisition Documents. 
  
 (a) (i) Borrower is not, and to the best of Borrower’s knowledge, no party to any Acquisition Document is, in default on any of its material
obligations under such Acquisition Document, (ii) all representations and warranties made by Borrower in the Acquisition Documents and in the certificates delivered in connection therewith are true and correct in all material respects as of the
date hereof and, to the best knowledge of Borrower, all material representations and warranties made in the Acquisition Documents by or on behalf of the Seller or any other party thereto other than Borrower, are true and correct in all material
respects as of the date hereof, (iii) all written information with respect to the Acquisition furnished to the Agent by Borrower or on behalf of Borrower, was, at the time the same was so furnished, complete and correct in all material
respects, or has been subsequently supplemented by other written information, to the extent necessary to give the Lender Group true and accurate knowledge of the subject matter thereof, (iv) no representation, warranty or statement made by
Borrower or, to the best knowledge of Borrower, the Seller or any other party thereto other than Borrower, at the time made in any Acquisition Document, or any agreement, certificate, statement or document required to be delivered pursuant to any
Acquisition Document contains any untrue statement of material fact or omits to state a material fact necessary in order to make the statements contained in such Acquisition Documents not misleading in light of the circumstances in which they were
made, and (v) in connection with the Acquisition, Borrower is acquiring the Acquired Stock, and, on the date hereof, after giving effect to the transactions contemplated by the Acquisition Documents, will have good title to the Acquired Stock,
free and clear of all Liens other than Permitted Liens. 
  
 (b)
(i) Borrower has delivered to the Agent complete and correct copies of all of the Acquisition Documents, including all schedules and exhibits thereto, (ii) each Acquisition Document sets forth the entire agreement and understanding of the
parties thereto relating to the subject matter thereof, and there are no other agreements, arrangements or understandings, written or oral, relating to the matters covered thereby, (iii) no Acquisition Document has been amended or otherwise
modified in any material respect without the prior written consent of the Agent (such consent not to be unreasonably withheld or delayed), (iv) the execution, delivery and performance each of the Acquisition Documents has been duly authorized
by all necessary action on the part of Borrower and, to the best knowledge of Borrower, each other Person party thereto, (v) the Acquisition has been effected in accordance with the terms of the Acquisition Documents and all applicable law,
(vi) at the time of consummation of the Acquisition, there does not exist any judgment, order or injunction prohibiting or imposing any material adverse condition upon the consummation of the Acquisition, (vii) at the time of consummation
thereof, all consents and approvals of, and filings and registrations with, and all other actions in respect of, all Government Authorities and any other Persons required in order to consummate the Acquisition shall have been obtained, given, filed
or taken and shall be in full force and effect, (viii) all actions taken by Borrower pursuant to or in furtherance of the Acquisition have 

  

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 been taken in compliance in all material respects with the Acquisition Documents and the applicable law,
(ix) Borrower did not incur or assume any liabilities or obligations pursuant to or in connection with the Acquisition other than those liabilities and obligations set forth in the Acquisition Agreement, and (x) each Acquisition Document
is the legal, valid and binding obligation of Borrower and, to the best knowledge of Borrower, the other parties thereto, enforceable against such Persons in accordance with its terms. 
  
 5. AFFIRMATIVE COVENANTS. 
  
 Borrower covenants and agrees that, until termination of all of the Commitments and payment in full of the Obligations (including contingent reimbursement
obligations of Borrower with respect to outstanding Letters of Credit, but excluding Bank Product Obligations, indemnification or similar inchoate obligations), Borrower shall and shall cause each of its Subsidiaries (unless otherwise indicated) to
do all of the following: 
  
 5.1 Accounting System.
Maintain a system of accounting that enables Borrower to produce financial statements in accordance with GAAP and maintain records pertaining to the Collateral that contain information as from time to time reasonably may be requested by Agent.
Borrower also shall keep a reporting system that shows all additions, sales, claims, returns, and allowances with respect to its and its Subsidiaries’ sales. 
  
 5.2 Collateral Reporting. Provide Agent (and if so requested by Agent, with copies for each Lender) with each
of the reports set forth on Schedule 5.2 at the times specified therein. In addition, Borrower agrees to cooperate fully with Agent to facilitate and implement a system of electronic collateral reporting in order to provide electronic
reporting of each of the items set forth above. 
  
 5.3
Financial Statements, Reports, Certificates. Deliver to Agent, with copies to each Lender, each of the financial statements, reports, or other items set forth on Schedule 5.3 at the times specified therein. In addition, Borrower
agrees that no Subsidiary of Borrower will have a fiscal year different from that of Borrower. 
  
 5.4 Guarantor Reports. Cause each Guarantor to deliver its annual financial statements at the time when Borrower provides its audited financial statements to Agent, but only to the extent such
Guarantor’s financial statements are not consolidated with Borrower’s financial statements. 
  
 5.5 Inspection. Permit Agent, each Lender, and each of their duly authorized representatives or agents to visit any of its properties and
inspect any of its assets or books and records, to examine and make copies of its books and records, and to discuss its affairs, finances, and accounts with, and to be advised as to the same by, its officers and employees at such reasonable times
and intervals as Agent or any such Lender may designate and, so long as no Default or Event of Default exists, with reasonable prior notice to Borrower and during normal business hours. 
  
 5.6 Maintenance of Properties. Maintain and preserve all of its properties which are necessary or useful in
the proper conduct to its business in good working order and condition, ordinary wear, tear, and casualty excepted (and except where the failure to do so could not be expected to result in a Material Adverse Change), and comply at all times with the
provisions of all material leases to which it is a party as lessee, so as to prevent any loss or forfeiture thereof or thereunder. 
  
 5.7 Taxes. Cause all assessments and taxes, whether real, personal, or otherwise, due or payable by, or imposed, levied, or assessed against
Borrower, its Subsidiaries, or any of their respective assets to be paid in full, before delinquency or before the expiration of any extension period, except to the extent that the validity of such assessment or tax shall be the subject of a
Permitted Protest. Borrower will and will cause its Subsidiaries to make timely payment or deposit of all tax payments and withholding taxes required of it and them by applicable laws, including those laws concerning F.I.C.A., F.U.T.A., state
disability, and local, state,and federal income taxes, and will, upon request, furnish Agent with proof satisfactory to Agent indicating that Borrower and its Subsidiaries have made such payments or deposits. 

  

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 5.8 Insurance. 
  
 (a) At Borrower’s expense, maintain insurance respecting its and its Subsidiaries’ assets wherever located,
covering loss or damage by fire, theft, explosion, and all other hazards and risks as ordinarily are insured against by other Persons engaged in the same or similar businesses. Borrower also shall maintain business interruption, public liability,
and product liability insurance, as well as insurance against larceny, embezzlement, and criminal misappropriation. All such policies of insurance shall be in such amounts and with such insurance companies as are satisfactory to Agent in its
Permitted Discretion. Borrower shall deliver certified copies of all such policies with respect to Borrower and its Restricted Subsidiaries to Agent with a satisfactory lender’s loss payable endorsement naming Agent as the sole loss payee or
additional insured, as appropriate. Each such policy of insurance or endorsement shall contain a clause requiring the insurer to give not less than 20 days prior written notice to Agent in the event of cancellation of the policy for any reason
whatsoever. 
  
 (b) Borrower shall give Agent prompt notice of any
loss exceeding $500,000 covered by such insurance. So long as no Event of Default has occurred and is continuing, Borrower shall have the exclusive right to adjust any losses payable under any such insurance policies which are less than $500,000.
Following the occurrence and during the continuation of an Event of Default, or in the case of any losses payable under such insurance exceeding $500,000, Agent shall have the exclusive right to adjust any losses payable under any such insurance
policies, without any liability to Borrower whatsoever in respect of such adjustments (other than as a result of Agent’s gross negligence or willful misconduct). Any monies received as payment for any loss under any insurance policy mentioned
above (other than liability insurance policies) or as payment of any award or compensation for condemnation or taking by eminent domain, shall be paid over to Agent to be applied at the option of the Required Lenders either to the prepayment of the
Obligations or shall be disbursed to Borrower under staged payment terms satisfactory to the Required Lenders for application to the cost of repairs, replacements, or restorations; provided, however, that, with respect to any such
monies in an aggregate amount during any 12 consecutive month period not in excess of $500,000, so long as (A) no Default or Event of Default shall have occurred and is continuing, (B) Borrower’s Excess Availability plus Qualified
Cash is greater than $5,000,000, (C) Borrower shall have given Agent prior written notice of its or its Restricted Subsidiary’s intention to apply such monies to the costs of repairs, replacement, or restoration of the property which is
the subject of the loss, destruction, or taking by condemnation, (D) the monies are held in a cash collateral account in which Agent has a perfected first priority security interest, and (E) Borrower or its Restricted Subsidiary completes
such repairs, replacements, or restoration within 180 days after the initial receipt of such monies (or such longer period as may be necessary so long as such repairs, replacements or restorations are being diligently repaired and Borrower
demonstrates the foregoing to Agent to its reasonable satisfaction), Borrower shall have the option to apply such monies to the costs of repairs, replacement, or restoration of the property which is the subject of the loss, destruction, or taking by
condemnation unless and to the extent that such applicable period shall have expired without such repairs, replacements, or restoration being made, in which case, any amounts remaining in the cash collateral account shall be paid to Agent and
applied as set forth above. 
  
 5.9 Location of Inventory
and Equipment. Keep Borrower’s and its Restricted Subsidiaries’ Inventory and Equipment (other than vehicles and Equipment out for repair) only at the locations identified on Schedule 4.5 and their chief executive
offices identified on Schedule 4.7(b); provided, however, that Borrower may amend Schedule 4.5 or Schedule 4.7 so long as such amendment occurs by written notice to Agent not less than 30 days prior to the date on
which such Inventory or Equipment is moved to such new location or such chief executive office is relocated, so long as such new location is within the continental United States, and so long as, at the time of such written notification and to the
extent such new location has Collateral with an aggregate fair market value in excess of $100,000, Borrower provides Agent a Collateral Access Agreement with respect thereto. 
  

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 5.10 Compliance with Laws. Comply with the requirements of all applicable laws, rules,
regulations, and orders of any Governmental Authority, other than laws, rules, regulations, and orders the non-compliance with which, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Change.

  
 5.11 Leases. Pay when due all rents and other
amounts payable under any material leases to which Borrower or any of its Subsidiaries is a party or by which Borrower’s or any such Subsidiaries’ properties and assets are bound, unless such payments are the subject of a Permitted
Protest. 
  
 5.12 Existence. At all times preserve
and keep in full force and effect Borrower’s and its Subsidiaries (other than Immaterial Foreign Subsidiaries and Inactive Domestic Subsidiaries) valid existence and good standing and any rights and franchises material to their businesses.

  
 5.13 Environmental. 
  
 (a) Keep any property either owned or operated by Borrower or its
Subsidiaries free of any Environmental Liens or post bonds or other financial assurances sufficient to satisfy the obligations or liability evidenced by such Environmental Liens, (b) comply, in all material respects, with Environmental Laws and
provide to Agent documentation of such compliance which Agent reasonably requests, (c) promptly notify Agent of any release of a Hazardous Material in any reportable quantity from or onto property owned or operated by Borrower or its
Subsidiaries and take any Remedial Actions required to abate said release or otherwise to come into compliance with applicable Environmental Law, and (d) promptly, but in any event within 5 days of its receipt thereof, provide Agent with
written notice of any of the following: (i) notice that an Environmental Lien has been filed against any of the real or personal property of Borrower or its Subsidiaries, (ii) commencement of any Environmental Action or notice that an
Environmental Action will be filed against Borrower or its Subsidiaries, and (iii) notice of a violation, citation, or other administrative order which reasonably could be expected to result in a Material Adverse Change. 
  
 5.14 Disclosure Updates. Promptly and in no event later than 7
Business Days after obtaining actual knowledge thereof, notify Agent if any written information, exhibit, or report furnished to the Lender Group contained, at the time it was furnished, any untrue statement of a material fact or omitted to state
any material fact necessary to make the statements contained therein not misleading in light of the circumstances in which made. The foregoing to the contrary notwithstanding, any notification pursuant to the foregoing provision will not cure or
remedy the effect of the prior untrue statement of a material fact or omission of any material fact nor shall any such notification have the effect of amending or modifying this Agreement or any of the Schedules hereto. 
  
 5.15 Control Agreements. Take all reasonable steps in order for
Agent to obtain control in accordance with Sections 8-106, 9-104, 9-105, 9-106, and 9-107 of the Code with respect to (subject to the proviso contained in Section 6.12) all of Borrower’s and its Restricted Subsidiaries’
respective Securities Accounts, Deposit Accounts, electronic chattel paper, investment property, and letter-of-credit rights. 
  
 5.16 Formation of Subsidiaries. At the time that Borrower or any Guarantor forms any direct or indirect Restricted Subsidiary or acquires
any direct or indirect Restricted Subsidiary after the Closing Date, Borrower or such Guarantor shall (a) cause such new Restricted Subsidiary to provide to Agent a joinder to the Guaranty delivered by the Restricted Subsidiaries on the Closing
Date, together with such security documents (including Mortgages with respect to any Real Property of such new Subsidiary) and joinders to the Security Agreement delivered by Borrower and its Restricted Subsidiaries on the Closing Date and such
other Loan Documents as Agent may request, as well as appropriate financing statements (and with respect to all property subject to a Mortgage, fixture filings), all in form and substance reasonably satisfactory to Agent (including being sufficient
to grant Agent a first priority Lien (subject to Permitted Liens) in and to the assets of such newly formed or acquired Restricted Subsidiary), (b) provide to Agent a pledge agreement and appropriate certificates and powers or financing
statements, hypothecating all of the direct or beneficial ownership interest in such new Restricted Subsidiary, in form and substance reasonably satisfactory to Agent, and (c) provide to 

  

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 Agent all other documentation, including one or more opinions of counsel reasonably satisfactory to Agent, which in its
opinion is appropriate with respect to the execution and delivery of the applicable documentation referred to above (including policies of title insurance or other documentation with respect to all property subject to a Mortgage). Any document,
agreement, or instrument executed or issued pursuant to this Section 5.16 shall be a Loan Document. In addition, in the event Borrower or any Guarantor forms or acquires any direct (“first tier”) Unrestricted Subsidiary (that
is not an Immaterial Foreign Subsidiary), Borrower or such Guarantor (as applicable) shall provide to Agent a pledge agreement and appropriate certificates and powers and/or financing statements, hypothecating all of the direct and beneficial
ownership interest in such new Unrestricted Subsidiary (that is not an Immaterial Foreign Subsidiary), in form and substance reasonably satisfactory to Agent; provided, however, if such Unrestricted Subsidiary is a Controlled Foreign
Corporation and if Borrower can reasonably demonstrate to Agent that the granting of a Lien in the assets of such Unrestricted Subsidiary would result in an increase in tax liability of Borrower and their respective Subsidiaries (based on the amount
of retained earnings at the time of such formation or acquisition) in excess of $10,000 per fiscal year, then the pledge by Borrower or such Guarantor (as applicable) of the voting capital stock of such Unrestricted Subsidiary shall be limited to a
pledge with respect to 65% of the voting power of all classes of capital Stock of such Unrestricted Subsidiary entitled to vote; provided, further that (1) immediately upon any amendment of the IRC that would allow the pledge of a
greater percentage of the voting power of capital Stock in such Unrestricted Subsidiary without adverse tax consequences, such pledge shall include such greater percentage of capital Stock of such Unrestricted Subsidiary from that time forward and
(2) Borrower shall be required at all times to pledge 65% of the voting capital stock of such of its Unrestricted Subsidiaries (including Immaterial Foreign Subsidiaries) as shall be necessary to satisfy the Minimum Unrestricted Subsidiary
Pledge Requirement. 
  
 5.17 ERISA Compliance.

  
 (a) Borrower shall do, and shall cause each of its
Subsidiaries and ERISA Affiliates to do, each of the following: (i) maintain each Plan in compliance in all material respects with the applicable provisions of ERISA, the IRC and each other applicable federal or state law; (ii) cause each
Qualified Plan to maintain its qualified status under Section 401(a) of the IRC; (iii) make all required contributions to each Plan; (iv) not become a party to any Multiemployer Plan; (v) ensure that all liabilities under each
Plan are (A) funded to at least the minimum level required by law or, if higher, to the level required by the terms governing such Plan; (B) insured with an insurance company that is reasonably believed by Borrower to be reputable; or
(C) provided for or recognized in the financial statements most recently delivered to Agent under Section 5.3 (to the extent required by GAAP); and (vi) ensure that the contributions or premium payments to or in respect of each
Plan are and continue to be promptly paid at no less than the rates required under the rules of such Plan and in accordance with the most recent actuarial advice received in relation to such Plan and applicable law. 
  
 (b) Deliver to Agent such certifications or other evidence of compliance with
the provisions of Section 4.13 as Agent may from time to time reasonably request. 
  
 (c) Promptly notify Agent of each of the following events affecting Borrower, any of its Subsidiaries or any ERISA Affiliates (but in no event more than ten (10) days after such event), together with a copy of
each notice with respect to such event that may be required to be filed with a Governmental Authority and each notice delivered by a Governmental Authority to Borrower, any of its Subsidiaries or any ERISA Affiliates with respect to such event if
such event, alone or together with other events described below, is reasonably expected to result in a Material Adverse Change: 
  
 (i) an ERISA Event; 
  
 (ii) the adoption of any new Pension Plan by Borrower, any of its Subsidiaries or any ERISA Affiliates; 
  

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 (iii) the adoption of any amendment to a Pension Plan, if such amendment will result in a material
increase in benefits or unfunded benefit liabilities (as defined in Section 4001(a)(18) of ERISA); or 
  
 (iv) the commencement of contributions by Borrower, any of its Subsidiaries or any ERISA Affiliate to any Plan that is subject to Title IV of ERISA or
section 412 of the IRC; 
  
 (d) Promptly deliver to Agent copies
of (i) each Schedule B (Actuarial Information) to the annual report (Form 5500 Series) filed by Borrower, any of its Subsidiaries or any ERISA Affiliates with the Internal Revenue Service with respect to each Pension Plan; (ii) all notices
received by Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates from a Multiemployer Plan sponsor concerning an ERISA Event; and (iii) such other documents or governmental reports or filings relating to any Plan as
Agent shall reasonably request. 
  
 5.18 Maintenance of
Licenses and Permits. Maintain all material licenses, permits, consents and similar rights required from any Governmental Authority for the ownership, construction, use, and operation of Borrower’s assets and provide to Agent promptly
upon receipt any notice or other communication received by Borrower with respect to any possible or actual revocation, cancellation, suspension, non-renewal or other material impairment thereof. 
  
 5.19 Acquisition Documents. 
  
 (a) Contemporaneously with the initial extensions of credit hereunder:
(i) cause all transactions contemplated by the Acquisition Documents to be consummated; (ii) cause the Acquisition to become effective; and (iii) furnish to Agent evidence thereof in form and content reasonably satisfactory to Agent,
as well as certified (as of the Closing Date) true and complete copies of the Acquisition Documents which shall be in compliance with all applicable laws and all necessary approvals shall have been obtained in connection therewith. 
  
 (b) Promptly provide Agent with true and complete copies of any and all
material documents delivered to any Person pursuant to, or in connection with, the Acquisition Documents. 
  
 5.20 Further Assurances. Take such action and execute, acknowledge and deliver, and cause each of its Subsidiaries that are not Immaterial
Foreign Subsidiaries or Inactive Domestic Subsidiaries to take such action and execute, acknowledge and deliver, at its sole cost and expense, such agreements, instruments or other documents as are reasonably necessary, or as Agent may reasonably
request, from time to time in order (a) to carry out more effectively the purposes of this Agreement and the other Loan Documents, (b) to subject to valid and perfected first priority Liens (subject only to Permitted Liens) any of the
Collateral, (c) to establish and maintain the validity and effectiveness of any of the Loan Documents and the validity, perfection and priority of the Liens intended to be created thereby, and (d) to better assure, convey, grant, assign,
transfer and confirm unto Agent and each Lender the rights now or hereafter intended to be granted to it under this Agreement or any other Loan Document. Without limiting the generality of the foregoing, on or prior to the date that is 60 days after
the Closing Date, Borrower shall deliver to Agent, to the extent not delivered prior thereto, such documents, opinions, assurances and confirmations as are reasonably necessary, or as Agent may reasonably request, in connection with the pledge on
the Closing Date of the ownership interests in the first-tier Unrestricted Subsidiaries of the Borrower (that are not Immaterial Foreign Subsidiaries) as of such date pursuant to the Security Agreement; provided that Borrower shall be
required at all times to pledge 65% of the voting capital stock of such of its Unrestricted Subsidiaries (including Immaterial Foreign Subsidiaries) as shall be necessary to satisfy the Minimum Unrestricted Subsidiary Pledge Requirement; and
provided further that Agent shall not require evidence of compliance with the applicable legal requirements of the United Kingdom in connection with the pledge of 65% of the voting capital stock of Pathlore Software Limited, so long no
Default or Event of Default shall have occurred and be continuing and the Minimum Unrestricted Subsidiary Pledge Requirement is satisfied without regard to Pathlore Software Limited. 
  

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 5.21 Required Library. On or prior to the date that is 30 days after the Closing Date,
Borrower shall deliver to Agent evidence satisfactory to Agent that not less than the Required Library of all existing copyrights of Borrower and its Restricted Subsidiaries have been registered with the United States Copyright Office. 

 
 5.22 Source Code Escrow Agreement. Borrower shall deliver to
Agent: (a) on or prior to the date that is 30 days after the Closing Date, a Source Code Escrow Agreement, duly executed by Borrower, Agent and an escrow agent reasonably satisfactory to Agent, with respect to the source and object code for
each version or versions of each item of computer software programs or other technology of Borrower and its Restricted Subsidiaries constituting the Required Library and (b) on or prior to the date that is 30 days after the effective date of
the Source Code Escrow Agreement, evidence reasonably satisfactory to Agent that the source and object code for each version or versions of each item of computer software programs or other technology of Borrower and its Restricted Subsidiaries
constituting the Required Library has been deposited with the escrow agent in accordance with the terms and conditions of the Source Code Escrow Agreement. 
  
 5.23 Collateral Access Agreements. 
  
 (a) Upon the earlier of (i) 180 days after the Closing Date or (ii) 30 days after the renegotiation and execution of the lease covering 7965
North High Street, Suite 300, Columbus, OH 43235, Borrower shall deliver a Collateral Access Agreement for 7965 North High Street, Suite 300, Columbus, OH 43235 duly executed by Agent and the owner thereof. 
  
 (b) On or prior to the date that is 30 days after the Closing Date, Borrower
shall deliver a Collateral Access Agreement for each of the following locations: (i) 226 North 5th Street, Columbus, Ohio 43215 and (ii) Fisher Plaza, 140 4th Ave. N., Seattle, WA 98109, duly executed by Agent and the respective owners
thereof. 
  
 5.24 Inactive Domestic Subsidiaries.
Borrower shall not later than July, 2006, dissolve and liquidate the Inactive Domestic Subsidiaries. 
  
 5.25 Ownership of Intellectual Property. On or prior to the date that is 30 days after the Closing Date, Borrower shall deliver to Agent
evidence that all patents, trademark and copyrights registered in the names of Communication Strategies, Inc., Docent, Inc. and Click2learn, Inc. have been re-registered in the name of Borrower in the United States Patent and Trademark Office, or
the United States Copyright Office, as the case may be. 
  
 5.26
Certain Control Accounts. Upon termination of the obligations secured by Borrower’s Deposit Accounts with Bancorp South and Northern Trust, Borrower shall transfer any funds in such Deposit Accounts to a Cash Management Account.

  
 5.27 Share Certificate Deliveries. On or prior
to the date that is 30 days after the Closing Date, Borrower shall deliver to Agent original share certificates, together with stock powers in blank, with respect to the following Subsidiaries: (i) SumTotal Systems ANZ Pty. Ltd., (ii) SumTotal
Systems Canada Ltd., (iii) Pathlore Software Limited, and (iv) Pathlore Software Pty., Ltd.. 
  
 6. NEGATIVE COVENANTS. 
  
 Borrower covenants and agrees that, until termination of all of the Commitments and payment in full of the Obligations (including contingent reimbursement obligations of Borrower with respect to outstanding Letters of Credit, but excluding
Bank Product Obligations, indemnification or similar inchoate obligations), Borrower will not and will not permit any of its Subsidiaries to do any of the following: 
  
 6.1 Indebtedness. Create, incur, assume, suffer to exist, guarantee, or otherwise become or remain, directly
or indirectly, liable with respect to any Indebtedness, except: 
  
 (a) Indebtedness evidenced by this Agreement and the other Loan Documents, together with Indebtedness owed to Underlying Issuers with respect to Underlying Letters of Credit, 
  

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 (b) Indebtedness set forth on Schedule 4.19, 
  
 (c) Permitted Purchase Money Indebtedness, 
  
 (d) refinancings, renewals, or extensions of Indebtedness permitted under
clauses (b) and (c) of this Section 6.1 (and continuance or renewal of any Permitted Liens associated therewith) so long as: (i) the terms and conditions of such refinancings, renewals, or extensions do not, in
Agent’s reasonable judgment, materially impair the prospects of repayment of the Obligations by Borrower or materially impair Borrower’s creditworthiness, (ii) such refinancings, renewals, or extensions do not result in an increase in
the principal amount of, or interest rate with respect to, the Indebtedness so refinanced, renewed, or extended, (iii) such refinancings, renewals, or extensions do not result in a shortening of the average weighted maturity of the Indebtedness
so refinanced, renewed, or extended, nor are they on terms or conditions that, taken as a whole, are materially more burdensome or restrictive to Borrower, (iv) if the Indebtedness that is refinanced, renewed, or extended was subordinated in
right of payment to the Obligations, then the terms and conditions of the refinancing, renewal, or extension Indebtedness must include subordination terms and conditions that are at least as favorable to the Lender Group as those that were
applicable to the refinanced, renewed, or extended Indebtedness, and (v) the Indebtedness that is refinanced, renewed, or extended is not recourse to any Person that is liable on account of the Obligations other than those Persons which were
obligated with respect to the Indebtedness that was refinanced, renewed, or extended, 
  
 (e) endorsement of instruments or other payment items for deposit, 
  
 (f) Indebtedness comprising Permitted Investments, 
  
 (g) Indebtedness arising under non-speculative Hedge Agreements entered into in the ordinary course of business solely for foreign currency hedging
purposes, 
  
 (h) Indebtedness incurred by Borrower in respect of
indemnities and other contingent obligations under the Acquisition Documents, and 
  
 (i) other unsecured Indebtedness of Borrower and its Subsidiaries not exceeding $1,000,000 in aggregate principal amount at any time outstanding. 
  
 6.2 Liens. Create, incur, assume, or suffer to exist, directly or indirectly, any Lien on or with respect to
any of its assets, of any kind, whether now owned or hereafter acquired, or any income or profits therefrom, except for Permitted Liens (including Liens that are replacements of Permitted Liens to the extent that the original Indebtedness is
refinanced, renewed, or extended under Section 6.1(d) and so long as the replacement Liens only encumber those assets that secured the refinanced, renewed, or extended Indebtedness). 
  
 6.3 Restrictions on Fundamental Changes. 
  
 (a) Enter into any merger, consolidation, reorganization, or
recapitalization, or reclassify its Stock, 
  
 (b) Liquidate, wind
up, or dissolve itself (or suffer any liquidation or dissolution), 
  
 (c) Convey, sell, lease, license, assign, transfer, or otherwise dispose of, in one transaction or a series of transactions, all or any substantial part of its assets, or 
  
 (d) Suspend or go out of a substantial portion of its or their business; 
  
 provided that, in each of the instances set forth in clauses (a) through
(d) above, if at the time thereof and immediately after giving effect thereto no Default or Event of Default shall have occurred and be continuing, 

  

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all actions required by Agent shall be taken to ensure the continued perfection and priority of the Agent’s Liens on the Collateral and the transaction
is not materially disadvantageous to the Lenders, as determined by Agent in its Permitted Discretion, then: (i) any Unrestricted Subsidiary may merge with, be liquidated into, or sell all or substantially all of its assets to Borrower or a
Restricted Subsidiary in a transaction in which Borrower or such Restricted Subsidiary is the surviving Person or the beneficiary of such liquidation or sale of such assets and, (ii) any Immaterial Foreign Subsidiary may merge, be liquidated
into, or sell all or substantially all of its assets to, an Unrestricted Subsidiary which is not an Immaterial Foreign Subsidiary (a “Material Foreign Subsidiary”) in a transaction in which the Material Foreign Subsidiary is the
surviving Person or the beneficiary of such liquidation or sale of assets, (iii) any Restricted Subsidiary may merge, be liquidated into, or sell all or substantially all of its assets to, Borrower in a transaction in which Borrower is the
surviving Person or the beneficiary of such liquidation or sale of such assets, (iv) any Restricted Subsidiary may merge, be liquidated into, or sell all or substantially all of its assets to, another Restricted Subsidiary, (v) any
Immaterial Foreign Subsidiary may merge, be liquidated into, or sell all or substantially all of its assets to, another Immaterial Foreign Subsidiary, and (vi) any Inactive Domestic Subsidiary, and any other dormant or inactive Subsidiary, may
be liquidated and dissolved. 
  
 6.4 Disposal of Assets.
Other than Permitted Dispositions, convey, sell, lease, license, assign, transfer, or otherwise dispose of any of Borrower’s or its Subsidiaries assets. 
  
 6.5 Change Name. Change Borrower’s or any of its Restricted Subsidiaries’ name, organizational
identification number, state of organization or organizational identity; provided, however, that Borrower or any of its Restricted Subsidiaries may change their names upon at least 30 days prior written notice to Agent of such change
and so long as (a) at the time of such written notification, Borrower or such Restricted Subsidiary, as applicable, provides any documentation necessary to perfect and continue perfected the Agent’s Liens and (b) immediately after
such name change, Borrower or such Restricted Subsidiary, as applicable, provides Agent with evidence of such name change (including copies of any related public filings). 
  
 6.6 Nature of Business. Engage in any material line of business substantially different from those lines of
business conducted by Borrower and its Subsidiaries on the date hereof or any business substantially related or incidental thereto. 
  
 6.7 Prepayments and Amendments. Except in connection with a refinancing permitted by Section 6.1(d), 
  
 (a) optionally prepay, redeem, defease, purchase, or otherwise acquire any
Indebtedness of Borrower or its Subsidiaries, other than the Obligations in accordance with this Agreement, 
  
 (b) make any payment on account of Indebtedness that has been contractually subordinated in right of payment to the Obligations if such payment is not
permitted at such time under the subordination agreement applicable to such Indebtedness, or 
  
 (c) directly or indirectly, amend, modify, alter, increase, or change any of the terms or conditions of any agreement, instrument, document, indenture, or other writing evidencing or concerning Indebtedness permitted
under Section 6.1(b) or (c) (other than as permitted thereunder). 
  
 6.8 Change of Control. Cause, permit, or suffer, directly or indirectly, any Change of Control. 
  
 6.9 Consignments. Consign any of its or their Inventory or sell any of its or their Inventory on bill and hold, sale or return, sale on
approval, or other conditional terms of sale at any time in an aggregate amount greater than $50,000. 
  
 6.10 Distributions. Other than distributions by a Subsidiary to Borrower, make any distribution or declare or pay any dividends (in cash or
other property, other than common Stock) on, or purchase, acquire, redeem, or retire any of Borrower’s or any Subsidiaries’ Stock, of any class, whether now or hereafter 

  

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outstanding; provided, however, Borrower may repurchase or redeem Stock of Borrower held by its employees or consultants pursuant to any
employee stock ownership plan or similar plan upon termination, retirement or death of any such employee in accordance with the provisions of such plan so long (a) as the aggregate amount paid in connection with such repurchases or redemption
does not exceed $250,000 in any fiscal year and (b) immediately prior to and after giving effect to such repurchase or redemption, (i) no Default or Event of Default shall have occurred and be continuing and (ii) Excess Availability
plus Qualified Cash shall equal or exceed $5,000,000. 
  
 6.11
Accounting Methods. Modify or change its fiscal year or its method of accounting (other than as may be required to conform to GAAP) or enter into, modify, or terminate any agreement currently existing, or at any time hereafter entered
into with any third party accounting firm or service bureau for the preparation or storage of Borrower’s or its Subsidiaries’ accounting records without said accounting firm or service bureau agreeing to provide Agent information regarding
Borrower’s and its Subsidiaries’ financial condition. 
  
 6.12 Investments. Except for Permitted Investments, directly or indirectly, make or acquire any Investment or incur any liabilities (including contingent obligations) for or in connection with any Investment; provided,
however, that (a) Borrower and its Restricted Subsidiaries shall not have cash, Cash Equivalents and other Permitted Investments (other than in the Cash Management Accounts) in Deposit Accounts or Securities Accounts in an aggregate
amount in excess of $100,000 at any one time unless Borrower or its Restricted Subsidiary, as applicable, and the applicable securities intermediary or bank have entered into Control Agreements or similar agreements governing such cash, Cash
Equivalents and other Permitted Investments in order to perfect (and further establish) the Agent’s Liens therein; provided that, this clause (a) shall not apply with regard to any Deposit Accounts maintained with the
Huntington National Bank so long as within 30 days of the Closing Date the Agent has received confirmation that any funds held in such Deposit Accounts shall be swept on a daily basis to a Deposit Account maintained with Wells Fargo Bank, N.A., and
(b) no Unrestricted Subsidiary shall have cash, Cash Equivalents in Deposit Accounts or Securities Accounts in aggregate amount in excess of $1,000,000 at any one time unless such cash, Cash Equivalents or other Permitted Investments are in a
Deposit Account or Securities Account subject to a Control Agreement. Subject to the foregoing proviso, Borrower shall not and shall not permit its Restricted Subsidiaries to establish or maintain any Deposit Account or Securities Account unless
Agent shall have received a Control Agreement in respect of such Deposit Account or Securities Account. Notwithstanding any in this Agreement to the contrary, if an Event of Default has occurred and is continuing and the Agent so requests, Borrower
and its Unrestricted Subsidiaries shall, within ten (10) Business Days of such request, either (i) enter into Control Agreements with respect to all of their respective cash, Cash Equivalents or other such Permitted Investments or
(ii) transfer all of their cash, Cash Equivalents or other such Permitted Investments to Deposit Accounts or Securities Accounts subject to Control Agreements. 
  
 6.13 Transactions with Affiliates. After the Closing Date, directly or indirectly enter into or permit to
exist any transaction with any Affiliate of Borrower except for transactions that (a) are in the ordinary course of Borrower’s business, (b) are upon fair and reasonable terms, (c) if they involve one or more payments by Borrower
or its Subsidiaries in excess of $100,000, are fully disclosed to Agent, and (d) are no less favorable to Borrower or its Subsidiaries, as applicable, than would be obtained in an arm’s length transaction with a non-Affiliate. 

 
 6.14 Use of Proceeds. Use the proceeds of the Advances and
the Term Loan for any purpose other than (a) on the Closing Date, (i) to consummate the Acquisition (including to (i) to repay in full, the outstanding principal, accrued interest, and accrued fees and expenses owing to Existing
Lender, and (ii) to pay transactional fees, costs, and expenses incurred in connection with this Agreement, the other Loan Documents, the Acquisition Documents and the transactions contemplated hereby and thereby, and (b) thereafter,
consistent with the terms and conditions hereof, to finance ongoing working capital, capital expenditures and general corporate needs of Borrower and its Subsidiaries for their lawful and permitted purposes. 
  

 - 33 - 

 6.15 Inventory and Equipment with Bailees. Store the Inventory or Equipment of Borrower or
its Restricted Subsidiaries at any time now or hereafter with a bailee, warehouseman, or similar party. 
  
 6.16 Financial Covenants. 
  
 (a) Fail to maintain or achieve: 
  
 (i) Minimum EBITDA. EBITDA, measured on a month-end basis, of at least the required amount set forth in the following table for the applicable
period set forth opposite thereto: 
  

			
	 Applicable Amount

	  	 Applicable Period

	 $400,000
	  	 For the 3 month period
 ending December 31, 2005

	 $1,400,000
	  	 For the 6 month period
 ending March 31, 2006

	 $2,500,000
	  	 For the 9 month period
 ending June 30, 2006

	 $5,200,000
	  	 For the 12 month period
 ending September 30, 2006

	 $8,900,000
	  	 For the 12 month period
 ending December 31, 2006

	 $11,900,000
	  	 For the 12 month period
 ending March 31, 2007

	 $14,000,000
	  	 For the 12 month period ending
 on the last day of each quarter thereafter

  
 (ii) Leverage
Ratio. A Leverage Ratio, when measured as of the date set forth below, not to exceed the ratio set forth in the following table, measured as of the last day of applicable period ending on the applicable date set forth opposite thereto:

  

			
	 Applicable Ratio

	  	 Applicable Period

	 12.90:1.00
	  	December 31, 2005
	 6.87:1.00
	  	March 31, 2006
	 5.74:1.00
	  	June 30, 2006
	 3.46:1.00
	  	September 30, 2006
	 1.91:1.00
	  	December 31, 2006
	 1.34:1.00
	  	March 31, 2007
	 1.24:1.00
	  	June 30, 2007
	 1.15:1.00
	  	September 30, 2007
	 1.05:1.00
	  	December 31, 2007
	 1.00:1.00
	  	 March 31, 2008 and the last
 day of each quarter thereafter

  

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 (b) Capital Expenditures. Make Capital Expenditures in any fiscal year in excess of the amount set
forth in the following table for the applicable period: 
  

													
	Fiscal Year 2005

	 	Fiscal Year 2006

	 	Fiscal Year 2007

	 	Fiscal Year 2008

	 	Fiscal Year 2009

	$3,500,000	 	$	3,500,000	 	$	3,700,000	 	$	4,000,000	 	$	4,600,000

  
 Notwithstanding the foregoing
provisions of this Section 6.16, provided that no Triggering Event Date has occurred after the Closing Date and on or prior to the last day of any Applicable Period set forth above, the foregoing financial covenants shall not be
in effect hereunder. 
  
 6.17 Modification of Acquisition
Documents. Amend or modify any term or provision of the Acquisition Documents in any manner materially adverse to Borrower, any of its Affiliates or any member of the Lender Group. 
  
 6.18 ERISA. Terminate or permit any of their ERISA Affiliates
to, (a) terminate any Pension Plan so as to result in a Material Adverse Change, (b) permit to exist any ERISA Event, or any other event or condition, which presents the risk of a material liability to any ERISA Affiliate so as to result
in a Material Adverse Change, (c) make a complete or partial withdrawal (within the meaning of ERISA Section 4201) from any Multiemployer Plan so as to result in a Material Adverse Change, (d) enter into any new Plan or modify any
existing Plan so as to increase its obligations thereunder which could result in a Material Adverse Change, (e) permit the present value of all nonforfeitable accrued benefits under any Plan (using the actuarial assumptions utilized by the PBGC
upon termination of a Plan) materially to exceed the fair market value of Plan assets allocable to such benefits, all determined as of the most recent valuation date for each such Plan that results in a Material Adverse Change, or (f) engage in
any transaction which would cause any obligation, or action taken or to be taken, hereunder (or the exercise by Agent or any Lender of any of their rights under this Agreement or the other Loan Documents) to be a non-exempt (under a statutory or
administrative class exemption) prohibited transaction under ERISA or Section 4975 of the IRC that results in a Material Adverse Change. 
  
 6.19 Material Contracts. Directly or indirectly, amend, modify, alter, increase, or change any of the terms or conditions of any Material
Contract in any manner materially adverse to Borrower or the Lender Group; provided, however, that no such amendment, modification, alteration, increase, or change shall be permitted with respect to the Acquisition Documents without
the prior written consent of the Required Lenders (such consent not to be unreasonably withheld or delayed). 
  
 6.20 Required Availability. Fail to maintain Required Availability at all times. 
  
 6.21 Inactive Domestic Subsidiaries. Borrower shall not permit
any Inactive Domestic Subsidiary (i) to own any assets, (ii) generate any business revenues, or (iii) otherwise conduct any business activities. 
  

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 7. EVENTS OF DEFAULT. 
  
 Any one or more of the following events shall constitute an event of default (each, an “Event of Default”)
under this Agreement: 
  
 7.1 If Borrower fails to pay when due
and payable, or when declared due and payable, (a) all or any portion of the Obligations consisting of interest, fees, or charges due the Lender Group, reimbursement of Lender Group Expenses, or other amounts (other than any portion thereof
constituting principal) constituting Obligations (including any portion thereof that accrues after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency
Proceeding), and such failure continues for a period of 3 Business Days, or (b) all or any portion of the principal of the Obligations; 
  
 7.2 If Borrower or any of its Subsidiaries: 
  
 (a) fails to perform or observe any covenant or other agreement contained in any of Sections 2.7, 5.2, 5.3, 5.4, 5.5,
5.8, 5.12, 5.14, 5.16, 5.17, and 5.21 through 5.26 and 6.1 through 6.20 of this Agreement or Sections 6, 8 or 10 of the Security Agreement; 
  
 (b) fails to perform or observe any covenant or other agreement contained in
any of Sections 5.6, 5.7, 5.9, 5.10, 5.11, 5.15, 5.18, 5.19 and 5.20 of this Agreement and such failure continues for a period of 10 days after the earlier of (i) the date on which
such failure shall first become known to any officer of Borrower or (ii) written notice thereof is given to Borrower by Agent; or 
  
 (c) fails to perform or observe any covenant or other agreement contained in this Agreement, or in any of the other Loan Documents to which it is a party;
in each case, other than any such covenant or agreement that is the subject of another provision of this Section 7.2 (in which event such other provision of this Section 7.2 shall govern), and such failure continues for a
period of 20 days after the earlier of (i) the date on which such failure shall first become known to any officer of Borrower or (ii) written notice thereof is given to Borrower by Agent; 
  
 7.3 If any material portion of Borrower’s or any of its
Subsidiaries’ assets is attached, seized, subjected to a writ or distress warrant, or is levied upon, or comes into the possession of any third Person and the same is not discharged before the earlier of 30 days after the date it first arises
or 5 days prior to the date on which such property or asset is subject to forfeiture by Borrower or the applicable Subsidiary; 
  
 7.4 If an Insolvency Proceeding is commenced by Borrower or any of its Subsidiaries; 
  
 7.5 If an Insolvency Proceeding is commenced against Borrower or any of its Subsidiaries and any of the following events
occur: (a) Borrower or such Subsidiary consents to the institution of such Insolvency Proceeding against it, (b) the petition commencing the Insolvency Proceeding is not timely controverted, (c) the petition commencing the Insolvency
Proceeding is not dismissed within 60 calendar days of the date of the filing thereof, (d) an interim trustee is appointed to take possession of all or any substantial portion of the properties or assets of, or to operate all or any substantial
portion of the business of, Borrower or any of its Subsidiaries, or (e) an order for relief shall have been issued or entered therein; 
  
 7.6 If Borrower or any of its Subsidiaries is enjoined, restrained, or in any way prevented by court order from continuing to conduct all or any material
part of its business affairs; 
  
 7.7 If one or more judgments,
orders, or awards involving an aggregate amount of $500,000, or more (except to the extent fully covered by insurance pursuant to which the insurer has accepted liability therefor in writing) shall be entered or filed against Borrower or any of its
Subsidiaries or with respect to any of their respective assets, and the same is not released, discharged, bonded against, or stayed pending appeal before the earlier of 30 days after the date it first arises or 5 days prior to the date on which such
asset is subject to being forfeited by Borrower or the applicable Subsidiary; 
  

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 7.8 If, with respect to any Indebtedness of Borrower or any Subsidiary involving an aggregate amount of
$500,000 or more, (i) there is a default in one or more agreements to which Borrower or any of its Subsidiaries is a party with one or more third Persons relative to Borrower’s or any of its Subsidiaries’ Indebtedness involving an
aggregate amount of $500,000 or more, and such default (A) occurs at the final maturity of the obligations thereunder, or (B) results in a right by such third Person(s), irrespective of whether exercised, to accelerate the maturity of
Borrower’s or the applicable Subsidiary’s obligations thereunder or (ii) any such Indebtedness shall be required to be prepaid or redeemed (other than a regularly scheduled required prepayment or redemption permitted to be made under
the terms of the Loan Documents), prior to the stated maturity date thereof; 
  
 7.9 If any warranty, representation, statement, or Record made herein or in any other Loan Document or delivered to Agent or any Lender in connection with this Agreement or any other Loan Document proves to be untrue
in any material respect as of the date of issuance or making or deemed making thereof; 
  
 7.10 If the obligation of any Guarantor under the Guaranty is limited or terminated by operation of law or by such Guarantor, or any such Guarantor becomes the subject of an Insolvency Proceeding; 
  
 7.11 If the Security Agreement or any other Loan Document that purports to
create a Lien, shall, for any reason, fail or cease to create a valid and perfected and, except to the extent permitted by the terms hereof or thereof, first priority Lien on or security interest in the Collateral covered hereby or thereby, except
as a result of a disposition of the applicable Collateral in a transaction permitted under this Agreement; or 
  
 7.12 Any provision of any Loan Document shall at any time for any reason be declared to be null and void, or the validity or enforceability thereof shall
be contested by Borrower or its Subsidiaries, or a proceeding shall be commenced by Borrower or its Subsidiaries, or by any Governmental Authority having jurisdiction over Borrower or its Subsidiaries, seeking to establish the invalidity or
unenforceability thereof, or Borrower or its Subsidiaries shall deny that Borrower or its Subsidiaries has any liability or obligation purported to be created under any Loan Document. 
  
 7.13 If (a) there occurs one or more ERISA Events which individually or in the aggregate results in or otherwise is
associated with liability of Borrower, any of its Subsidiaries, or any of their respective ERISA Affiliates that, as of such occurrence, is a member of a “controlled group of corporations”, under “common control” or an
“affiliated service group” with Borrower or any of its Subsidiaries within the meaning of Section 414(b), (c) or (m) of the IRC (collectively, the “Controlled Group ERISA Affiliates”) in excess of $500,000 during
the term of this Agreement (or is reasonably likely, as determined in the reasonable judgment of Agent, to result in liability in excess of $500,000 during the term of the Agreement, to Borrower, any of its Subsidiaries or any of their
respective Controlled Group ERISA Affiliates in the case of liability of any of their respective ERISA Affiliates that are not Controlled Group ERISA Affiliates) in excess of $500,000 during the term of this Agreement; or (b) there exists, an
amount of unfunded benefit liabilities (as defined in Section 4001(a)(18) of ERISA), individually or in the aggregate for all Pension Plans maintained, sponsored or obligated to be contributed by Borrower, any of its Subsidiaries or any of
their Controlled Group ERISA Affiliates (excluding for purposes of such computation any Pension Plans with respect to which assets exceed benefit liabilities) which exceeds $500,000; or (c) there exists, an amount of unfunded benefit
liabilities (as defined in Section 4001(a)(18) of ERISA), individually or in the aggregate for all Pension Plans maintained, sponsored or obligated to be contributed by ERISA Affiliate that are not Controlled Group ERISA Affiliates (excluding
for purposes of such computation any Pension Plans with respect to which assets exceed benefit liabilities) which exceeds $500,000 and which is reasonably likely, as determined in the reasonable judgment of Agent, to result in liability of Borrower,
any of its Subsidiaries, or any of their respective Controlled Group ERISA Affiliates; provided that, with respect to each of clauses (a) through (c) above, such event or condition is reasonably expected to result in a Material
Adverse Change. 
  

 - 37 - 

 8. THE LENDER GROUP’S RIGHTS AND REMEDIES. 
  
 8.1 Rights and Remedies. Upon the occurrence, and during the
continuation, of an Event of Default, the Required Lenders (at their election but without notice of their election and without demand) may authorize and instruct Agent to do any one or more of the following on behalf of the Lender Group (and Agent,
acting upon the instructions of the Required Lenders, shall do the same on behalf of the Lender Group), all of which are authorized by Borrower: 
  
 (a) Declare all or any portion of the Obligations, whether evidenced by this Agreement, by any of the other Loan Documents, or otherwise, immediately due
and payable; 
  
 (b) Cease advancing money or extending credit to
or for the benefit of Borrower under this Agreement, under any of the Loan Documents, or under any other agreement between Borrower and the Lender Group; 
  
 (c) Terminate this Agreement and any of the other Loan Documents as to any future liability or obligation of the Lender Group, but without affecting any
of the Agent’s Liens in the Collateral and without affecting the Obligations; 
  
 (d) The Lender Group shall have all other rights and remedies available at law or in equity or pursuant to any other Loan Document. 
  
 The foregoing to the contrary notwithstanding, upon the occurrence of any Event of Default described in Section 7.4 or
Section 7.5, in addition to the remedies set forth above, without any notice to Borrower or any other Person or any act by the Lender Group, the Commitments shall automatically terminate and the Obligations then outstanding, together
with all accrued and unpaid interest thereon and all fees and all other amounts due under this Agreement and the other Loan Documents, shall automatically and immediately become due and payable, without presentment, demand, protest, or notice of any
kind, all of which are expressly waived by Borrower. 
  
 8.2
Remedies Cumulative. The rights and remedies of the Lender Group under this Agreement, the other Loan Documents, and all other agreements shall be cumulative. The Lender Group shall have all other rights and remedies not inconsistent
herewith as provided under the Code, by law, or in equity. No exercise by the Lender Group of one right or remedy shall be deemed an election, and no waiver by the Lender Group of any Event of Default shall be deemed a continuing waiver. No delay by
the Lender Group shall constitute a waiver, election, or acquiescence by it. 
  
 9. TAXES AND EXPENSES. 
  
 If Borrower or
any of its Subsidiaries fails to pay any monies (whether taxes, assessments, insurance premiums, or, in the case of leased properties or assets, rents or other amounts payable under such leases) due to third Persons, or fails to make any deposits or
furnish any required proof of payment or deposit, all as required under the terms of this Agreement, then, Agent, in its sole discretion and without prior notice to Borrower or any Subsidiary thereof, may do any or all of the following:
(a) make payment of the same or any part thereof, (b) set up such reserves against Availability or the Maximum Revolver Amount as Agent deems necessary in its Permitted Discretion to protect the Lender Group from the exposure created by
such failure, or (c) in the case of the failure to comply with Section 5.8 hereof, obtain and maintain insurance policies of the type described in Section 5.8 and take any action with respect to such policies as Agent
deems prudent. Any such amounts paid by Agent shall constitute Lender Group Expenses and any such payments shall not constitute an agreement by the Lender Group to make similar payments in the future or a waiver by the Lender Group of any Event of
Default under this Agreement. Agent need not inquire as to, or contest the validity of, any such expense, tax, or Lien and the receipt of the usual official notice for the payment thereof shall be conclusive evidence that the same was validly due
and owing. 
  

 - 38 - 

 10. WAIVERS; INDEMNIFICATION. 
  
 10.1 Demand; Protest; etc. Borrower waives demand, protest, notice of protest, notice of default or dishonor,
notice of payment and nonpayment, nonpayment at maturity, release, compromise, settlement, extension, or renewal of documents, instruments, chattel paper, and guarantees at any time held by the Lender Group on which Borrower may in any way be
liable. 
  
 10.2 The Lender Group’s Liability for
Collateral. Borrower hereby agrees that: (a) so long as Agent complies with its obligations, if any, under the Code or other applicable law, the Lender Group shall not in any way or manner be liable or responsible for: (i) the
safekeeping of the Collateral, (ii) any loss or damage thereto occurring or arising in any manner or fashion from any cause, (iii) any diminution in the value thereof, or (iv) any act or default of any carrier, warehouseman, bailee,
forwarding agency, or other Person, and (b) all risk of loss, damage, or destruction of the Collateral shall be borne by Borrower. 
  
 10.3 Indemnification. Borrower shall pay, indemnify, defend, and hold the Agent-Related Persons, the Lender-Related Persons, and each
Participant (each, an “Indemnified Person”) harmless (to the fullest extent permitted by law) from and against any and all claims, demands, suits, actions, investigations, proceedings, and damages, and all reasonable attorneys fees
and disbursements and other costs and expenses actually incurred in connection therewith or in connection with the enforcement of this indemnification (as and when they are incurred and irrespective of whether suit is brought), at any time asserted
against, imposed upon, or incurred by any of them (a) in connection with or as a result of or related to the execution, delivery, enforcement, performance, or administration (including any restructuring or workout with respect hereto) of this
Agreement, any of the other Loan Documents, or the transactions contemplated hereby or thereby or the monitoring of Borrower’s and its Subsidiaries’ compliance with the terms of the Loan Documents, (b) with respect to any
investigation, litigation, or proceeding related to this Agreement, any other Loan Document, or the use of the proceeds of the credit provided hereunder (irrespective of whether any Indemnified Person is a party thereto), or any act, omission,
event, or circumstance in any manner related thereto and (c) in connection with or arising out of any presence or release of Hazardous Materials at, on, under, to or from any assets or properties owned, leased or operated by Borrower or any of
its Subsidiaries or any Environmental Actions, Environmental Liabilities and Costs or Remedial Actions related in any way to any such assets or properties of Borrower or any of its Subsidiaries (all the foregoing, collectively, the
“Indemnified Liabilities”). The foregoing to the contrary notwithstanding, Borrower shall have no obligation to any Indemnified Person under this Section 10.3 with respect to any Indemnified Liability that a court of
competent jurisdiction finally determines to have resulted from the gross negligence or willful misconduct of such Indemnified Person. This provision shall survive the termination of this Agreement and the repayment of the Obligations. If any
Indemnified Person makes any payment to any other Indemnified Person with respect to an Indemnified Liability as to which Borrower was required to indemnify the Indemnified Person receiving such payment, the Indemnified Person making such payment is
entitled to be indemnified and reimbursed by Borrower with respect thereto. WITHOUT LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO EACH INDEMNIFIED PERSON WITH RESPECT TO INDEMNIFIED LIABILITIES WHICH IN WHOLE OR IN PART ARE CAUSED BY OR
ARISE OUT OF ANY NEGLIGENT ACT OR OMISSION OF SUCH INDEMNIFIED PERSON OR OF ANY OTHER PERSON. 
  
 10.4 Waiver of Consequential Damages, Etc. To the fullest extent permitted by applicable law, neither Borrower nor any
Guarantor shall assert, and Borrower (for itself and on behalf of the Guarantors) hereby waives, any claim against any Indemnified Person, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or
actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Advance, Term Loan or Letter of
Credit or the use of the proceeds thereof. No Indemnified Person shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other
information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby. 
  

 - 39 - 

 11. NOTICES. 
  
 Unless otherwise provided in this Agreement, all notices or demands by Borrower or Agent to the other relating to this Agreement or any other Loan
Document shall be in writing and (except for financial statements and other informational documents which may be sent by first-class mail, postage prepaid) shall be personally delivered or sent by registered or certified mail (postage prepaid,
return receipt requested), overnight courier, electronic mail (at such email addresses as Borrower or Agent, as applicable, may designate to each other in accordance herewith), or telefacsimile to Borrower or Agent, as the case may be, at its
address set forth below: 
  

			
	 If to Borrower:
	  	SUMTOTAL SYSTEMS, INC.
	 	  	1808 N. Shoreline Boulevard
	 	  	Mountain View, CA 94043
	 	  	 Attn: Mr. Neil Laird, Chief Financial Officer
 Attn:
Erika Rottenberg, Esq., General Counsel

	 	  	Fax No.:
		
	 with copies to:
	  	ORRICK HERRINGTON & SUTCLIFFE LLP
	 	  	The Orrick Building
	 	  	405 Howard Street
	 	  	San Francisco, CA 94105
	 	  	Attn: Dolph Hellman, Esq.
	 	  	Fax No.: (415) 773-5759
		
	 If to Agent:
	  	WELLS FARGO FOOTHILL, INC.
	 	  	2450 Colorado Avenue, Suite 3000 West
	 	  	Santa Monica, CA 90404
	 	  	Attn: Business Finance Division Manager
	 	  	Fax No.: (310) 453-7413
		
	 with copies to:
	  	MORRISON & FOERSTER LLP
	 	  	425 Market Street
	 	  	San Francisco, CA 94105
	 	  	Attn: F. Daniel Leventhal, Esq.
	 	  	Fax No.: (415) 268-7522

  
 Agent and Borrower may
change the address at which they are to receive notices hereunder, by notice in writing in the foregoing manner given to the other party. All notices or demands sent in accordance with this Section 11, other than notices by Agent in
connection with enforcement rights against the Collateral under the provisions of the Code, shall be deemed received on the earlier of the date of actual receipt or 3 Business Days after the deposit thereof in the mail. Borrower acknowledges and
agrees that notices sent by the Lender Group in connection with the exercise of enforcement rights against the Collateral under the provisions of the Code shall be deemed sent when deposited in the mail or personally delivered, or, where permitted
by law, transmitted by telefacsimile or any other method set forth above. 
  
 12. CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER. 
  
 (a) THE VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT), THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF
AND THEREOF, AND THE RIGHTS OF 

  

 - 40 - 

 
THE PARTIES HERETO AND THERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO SHALL BE DETERMINED UNDER,
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 
  
 (b) THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND, TO THE EXTENT PERMITTED BY APPLICABLE
LAW, FEDERAL COURTS LOCATED IN THE COUNTY OF BOROUGH OF MANHATTAN, NEW YORK, STATE OF NEW YORK; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT AGENT’S OPTION, IN
THE COURTS OF ANY JURISDICTION WHERE AGENT ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. BORROWER AND EACH MEMBER OF THE LENDER GROUP WAIVE, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE
TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION 12(b). 
  
 (c) BORROWER AND EACH MEMBER OF THE LENDER GROUP HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. BORROWER
AND EACH MEMBER OF THE LENDER GROUP REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE
FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. 
  
 13.
ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS. 
  
 13.1 Assignments and Participations. 
  
 (a) Any Lender may assign and delegate to one or more assignees (each an “Assignee”) that are Eligible Transferees all, or any ratable part of all, of the Obligations, the Commitments and the other rights and obligations of
such Lender hereunder and under the other Loan Documents, in a minimum amount of $5,000,000; provided, however, that Borrower and Agent may continue to deal solely and directly with such Lender in connection with the interest so
assigned to an Assignee until (i) written notice of such assignment, together with payment instructions, addresses, and related information with respect to the Assignee, have been given to Borrower and Agent by such Lender and the Assignee,
(ii) such Lender and its Assignee have delivered to Borrower and Agent an Assignment and Acceptance, and (iii) the assigning Lender or Assignee has paid to Agent for Agent’s separate account a processing fee in the amount of $3,500.
Anything contained herein to the contrary notwithstanding, the payment of any fees shall not be required and the Assignee need not be an Eligible Transferee if such assignment is in connection with any merger, consolidation, sale, transfer, or other
disposition of all or any substantial portion of the business or loan portfolio of the assigning Lender. 
  
 (b) From and after the date that Agent notifies the assigning Lender (with a copy to Borrower) that it has received an executed Assignment and Acceptance
and payment of the above-referenced processing fee, (i) the Assignee thereunder shall be a party hereto and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such Assignment and Acceptance, shall have the
rights and obligations of a Lender under the Loan Documents, and (ii) the assigning Lender shall, to the extent that rights and obligations hereunder and under the other Loan Documents have been assigned by it pursuant to such Assignment and
Acceptance, relinquish its rights (except with respect to Section 10.3 hereof) and be released from any future obligations under this Agreement (and in the case of an Assignment and Acceptance covering 

  

 - 41 - 

 
all or the remaining portion of an assigning Lender’s rights and obligations under this Agreement and the other Loan Documents, such Lender shall cease
to be a party hereto and thereto), and such assignment shall effect a novation between Borrower and the Assignee; provided, however, that nothing contained herein shall release any assigning Lender from obligations that survive the
termination of this Agreement, including such assigning Lender’s obligations under Article 16 and Section 16.7 of this Agreement. 
  
 (c) By executing and delivering an Assignment and Acceptance, the assigning Lender thereunder and the Assignee thereunder confirm to and agree with each
other and the other parties hereto as follows: (1) other than as provided in such Assignment and Acceptance, such assigning Lender makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or
representations made in or in connection with this Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any other Loan Document furnished pursuant hereto, (2) such assigning
Lender makes no representation or warranty and assumes no responsibility with respect to the financial condition of Borrower and its Subsidiaries or the performance or observance by Borrower or any Guarantor of any of its obligations under this
Agreement or any other Loan Document furnished pursuant hereto, (3) such Assignee confirms that it has received a copy of this Agreement, together with such other documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into such Assignment and Acceptance, (4) such Assignee will, independently and without reliance upon Agent, such assigning Lender or any other Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement and the other Loan Documents, (5) such Assignee appoints and authorizes Agent to take such actions and to exercise such
powers under this Agreement and the other Loan Documents as are delegated to Agent, by the terms hereof, together with such powers as are reasonably incidental thereto, and (6) such Assignee agrees that it will perform all of the obligations
which by the terms of this Agreement are required to be performed by it as a Lender. 
  
 (d) Immediately upon Agent’s receipt of the required processing fee payment and the fully executed Assignment and Acceptance, this Agreement shall be deemed to be amended to the extent, but only to the extent,
necessary to reflect the addition of the Assignee and the resulting adjustment of the Commitments arising therefrom. The Commitment allocated to each Assignee shall reduce such Commitments of the assigning Lender pro tanto. 
  
 (e) Any Lender may at any time sell to one or more commercial banks,
financial institutions, or other Persons (a “Participant”) participating interests in its Obligations, the Commitment, and the other rights and interests of that Lender (the “Originating Lender”) hereunder and under
the other Loan Documents; provided, however, that (i) the Originating Lender shall remain a “Lender” for all purposes of this Agreement and the other Loan Documents and the Participant receiving the participating
interest in the Obligations, the Commitments, and the other rights and interests of the Originating Lender hereunder shall not constitute a “Lender” hereunder or under the other Loan Documents and the Originating Lender’s obligations
under this Agreement shall remain unchanged, (ii) the Originating Lender shall remain solely responsible for the performance of such obligations, (iii) Borrower, Agent, and the Lenders shall continue to deal solely and directly with the
Originating Lender in connection with the Originating Lender’s rights and obligations under this Agreement and the other Loan Documents, (iv) no Lender shall transfer or grant any participating interest under which the Participant has the
right to approve any amendment to, or any consent or waiver with respect to, this Agreement or any other Loan Document, except to the extent such amendment to, or consent or waiver with respect to this Agreement or of any other Loan Document would
(A) extend the final maturity date of the Obligations hereunder in which such Participant is participating, (B) reduce the interest rate applicable to the Obligations hereunder in which such Participant is participating, (C) release
all or substantially all of the Collateral or guaranties (except to the extent expressly provided herein or in any of the Loan Documents) supporting the Obligations hereunder in which such Participant is participating, (D) postpone the payment
of, or reduce the amount of, the interest or fees payable to such Participant through such Lender, or (E) change the amount or due dates of scheduled principal repayments or prepayments or premiums, and (v) all amounts payable by Borrower
hereunder shall be determined as if such Lender had not sold such participation, except 

  

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that, if amounts outstanding under this Agreement are due and unpaid, or shall have been declared or shall have become due and payable upon the occurrence of
an Event of Default, each Participant shall be deemed to have the right of set off in respect of its participating interest in amounts owing under this Agreement to the same extent as if the amount of its participating interest were owing directly
to it as a Lender under this Agreement. The rights of any Participant only shall be derivative through the Originating Lender with whom such Participant participates and no Participant shall have any rights under this Agreement or the other Loan
Documents or any direct rights as to the other Lenders, Agent, Borrower, the Collections of Borrower or its Subsidiaries, the Collateral, or otherwise in respect of the Obligations. No Participant shall have the right to participate directly in the
making of decisions by the Lenders among themselves. 
  
 (f) In
connection with any such assignment or participation or proposed assignment or participation, a Lender may, subject to the provisions of Section 16.7, disclose all documents and information which it now or hereafter may have relating to
Borrower and its Subsidiaries and their respective businesses. 
  
 (g) Any other provision in this Agreement notwithstanding, any Lender may at any time create a security interest in, or pledge, all or any portion of its rights under and interest in this Agreement in favor of any Federal Reserve Bank in
accordance with Regulation A of the Federal Reserve Bank or U.S. Treasury Regulation 31 CFR §203.24, and such Federal Reserve Bank may enforce such pledge or security interest in any manner permitted under applicable law. 
  
 13.2 Successors. This Agreement shall bind and inure to the
benefit of the respective successors and assigns of each of the parties; provided, however, that Borrower may not assign this Agreement or any rights or duties hereunder without the Lenders’ prior written consent and any
prohibited assignment shall be absolutely void ab initio. No consent to assignment by the Lenders shall release Borrower from its obligations hereunder or under any other Loan Document. A Lender may assign this Agreement and the other Loan
Documents and its rights and duties hereunder and thereunder pursuant to Section 13.1 hereof and, except as expressly required pursuant to Section 13.1 hereof, no consent or approval by Borrower is required in connection with
any such assignment. 
  
 14. AMENDMENTS; WAIVERS. 
  
 14.1 Amendments and Waivers. No amendment or waiver of any
provision of this Agreement or any other Loan Document (other than Bank Product Agreements), and no consent with respect to any departure by Borrower or any Guarantor therefrom, shall be effective unless the same shall be in writing and signed by
the Required Lenders (or by Agent at the written request of the Required Lenders) and Borrower and then any such waiver or consent shall be effective, but only in the specific instance and for the specific purpose for which given; provided,
however, that no such waiver, amendment, or consent shall, unless in writing and signed by all of the Lenders affected thereby and Borrower, do any of the following: 
  
 (a) increase or extend any Commitment of any Lender, 
  
 (b) postpone or delay any date fixed by this Agreement or any other Loan Document for any payment of principal, interest,
fees, or other amounts due hereunder or under any other Loan Document, 
  
 (c) reduce the principal of, or the rate of interest on, any loan or other extension of credit hereunder, or reduce any fees or other amounts payable hereunder or under any other Loan Document, 
  
 (d) change the Pro Rata Share that is required to take any action hereunder,

  
 (e) amend or modify this Section or any provision of the
Agreement providing for consent or other action by all Lenders, 
  
 (f) other than as permitted by Section 15.12, release Agent’s Lien in and to any of the Collateral, 
  

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 (g) change the definition of “Required Lenders” or “Pro Rata Share”, 
  
 (h) contractually subordinate any of the Agent’s Liens, 
  
 (i) release Borrower or any Guarantor from any obligation for the payment of
money, 
  
 (j) change the definition of Loan Limit, Availability,
Required Availability, Maximum Revolver Amount, or Term Loan Amount, or change Section 2.1(b), or 
  
 (k) amend any of the provisions of Section 15. 
  
 and, provided further, however, that no amendment, waiver or consent shall, unless in writing and signed by Agent, Issuing Lender, or Swing Lender, as
applicable, affect the rights or duties of Agent, Issuing Lender, or Swing Lender, as applicable, under this Agreement or any other Loan Document. The foregoing notwithstanding, any amendment, modification, waiver, consent, termination, or release
of, or with respect to, any provision of this Agreement or any other Loan Document that relates only to the relationship of the Lender Group among themselves, and that does not affect the rights or obligations of Borrower, shall not require consent
by or the agreement of Borrower. 
  
 14.2 Replacement of Holdout
Lender. 
  
 (a) If any action to be taken by the Lender
Group or Agent hereunder requires the unanimous consent, authorization, or agreement of all Lenders, and a Lender (“Holdout Lender”) fails to give its consent, authorization, or agreement, then Agent, upon at least 5 Business Days
prior irrevocable notice to the Holdout Lender, may permanently replace the Holdout Lender with one or more substitute Lenders (each, a “Replacement Lender”), and the Holdout Lender shall have no right to refuse to be replaced
hereunder. Such notice to replace the Holdout Lender shall specify an effective date for such replacement, which date shall not be later than 15 Business Days after the date such notice is given. 
  
 (b) Prior to the effective date of such replacement, the Holdout Lender and
each Replacement Lender shall execute and deliver an Assignment and Acceptance, subject only to the Holdout Lender being repaid its share of the outstanding Obligations (including an assumption of its Pro Rata Share of the Risk Participation
Liability) without any premium or penalty of any kind whatsoever. If the Holdout Lender shall refuse or fail to execute and deliver any such Assignment and Acceptance prior to the effective date of such replacement, the Holdout Lender shall be
deemed to have executed and delivered such Assignment and Acceptance. The replacement of any Holdout Lender shall be made in accordance with the terms of Section 13.1. Until such time as the Replacement Lenders shall have acquired all of
the Obligations, the Commitments, and the other rights and obligations of the Holdout Lender hereunder and under the other Loan Documents, the Holdout Lender shall remain obligated to make the Holdout Lender’s Pro Rata Share of Advances and to
purchase a participation in each Letter of Credit, in an amount equal to its Pro Rata Share of the Risk Participation Liability of such Letter of Credit. 
  
 14.3 No Waivers; Cumulative Remedies. No failure by Agent or any Lender to exercise any right, remedy, or option under this Agreement or any
other Loan Document, or delay by Agent or any Lender in exercising the same, will operate as a waiver thereof. No waiver by Agent or any Lender will be effective unless it is in writing, and then only to the extent specifically stated. No waiver by
Agent or any Lender on any occasion shall affect or diminish Agent’s and each Lender’s rights thereafter to require strict performance by Borrower or any Guarantor of any provision of this Agreement or the other Loan Documents.
Agent’s and each Lender’s rights under this Agreement and the other Loan Documents will be cumulative and not exclusive of any other right or remedy that Agent or any Lender may have. 
  

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 15. AGENT; THE LENDER GROUP. 
  
 15.1 Appointment and Authorization of Agent. Each Lender hereby designates and appoints WFF as its
representative under this Agreement and the other Loan Documents and each Lender hereby irrevocably authorizes Agent to execute and deliver each of the other Loan Documents on its behalf and to take such other action on its behalf under the
provisions of this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to Agent by the terms of this Agreement or any other Loan Document, together with such powers as are reasonably
incidental thereto. Agent agrees to act as such on the express conditions contained in this Section 15. The provisions of this Section 16 (other than the proviso to Section 15.11(a))are solely for the benefit of
Agent, and the Lenders, and Borrower and its Subsidiaries shall have no rights as a third party beneficiary of any of the provisions contained herein. Any provision to the contrary contained elsewhere in this Agreement or in any other Loan Document
notwithstanding, Agent shall not have any duties or responsibilities, except those expressly set forth herein, nor shall Agent have or be deemed to have any fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against Agent; it being expressly understood and agreed that the use of the word “Agent” is for
convenience only, that WFF is merely the representative of the Lenders, and only has the contractual duties set forth herein. Except as expressly otherwise provided in this Agreement, Agent shall have and may use its sole discretion with respect to
exercising or refraining from exercising any discretionary rights or taking or refraining from taking any actions that Agent expressly is entitled to take or assert under or pursuant to this Agreement and the other Loan Documents. Without limiting
the generality of the foregoing, or of any other provision of the Loan Documents that provides rights or powers to Agent, Lenders agree that Agent shall have the right to exercise the following powers as long as this Agreement remains in effect:
(a) maintain, in accordance with its customary business practices, ledgers and records reflecting the status of the Obligations, the Collateral, the Collections of Borrower and its Subsidiaries, and related matters, (b) execute or file any
and all financing or similar statements or notices, amendments, renewals, supplements, documents, instruments, proofs of claim, notices and other written agreements with respect to the Loan Documents, (c) make Advances, for itself or on behalf
of Lenders as provided in the Loan Documents, (d) exclusively receive, apply, and distribute the Collections of Borrower and its Subsidiaries as provided in the Loan Documents, (e) open and maintain such bank accounts and cash management
arrangements as Agent deems necessary and appropriate in accordance with the Loan Documents for the foregoing purposes with respect to the Collateral and the Collections of Borrower and its Subsidiaries, (f) perform, exercise, and enforce any
and all other rights and remedies of the Lender Group with respect to Borrower, the Obligations, the Collateral, the Collections of Borrower and its Subsidiaries, or otherwise related to any of same as provided in the Loan Documents, and
(g) incur and pay such Lender Group Expenses as Agent may deem necessary or appropriate for the performance and fulfillment of its functions and powers pursuant to the Loan Documents. 
  
 15.2 Delegation of Duties. Agent may execute any of its duties
under this Agreement or any other Loan Document by or through agents, employees or attorneys in fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. Agent shall not be responsible for the negligence or
misconduct of any agent or attorney in fact that it selects as long as such selection was made without gross negligence or willful misconduct. 
  
 15.3 Liability of Agent. None of the Agent-Related Persons shall (a) be liable for any action taken or omitted to be taken by any of
them under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except for its own gross negligence or willful misconduct), or (b) be responsible in any manner to any of the Lenders for any
recital, statement, representation or warranty made by Borrower or any Subsidiary or Affiliate of Borrower, or any officer or director thereof, contained in this Agreement or in any other Loan Document, or in any certificate, report, statement or
other document referred to or provided for in, or received by Agent under or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other
Loan Document, or for any failure of Borrower or any other party to any Loan Document to perform its obligations hereunder or thereunder. No Agent-Related Person shall be under any obligation to any Lender to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the books and records or properties of Borrower or the books or records or properties of any of
Borrower’s Subsidiaries or Affiliates. 
  

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 15.4 Reliance by Agent. Agent shall be entitled to rely, and shall be fully protected in
relying, upon any writing, resolution, notice, consent, certificate, affidavit, letter, telegram, telefacsimile or other electronic method of transmission, telex or telephone message, statement or other document or conversation believed by it to be
genuine and correct and to have been signed, sent, or made by the proper Person or Persons, and upon advice and statements of legal counsel (including counsel to Borrower and the Guarantors or counsel to any Lender), independent accountants and
other experts selected by Agent. Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Loan Document unless Agent shall first receive such advice or concurrence of the Lenders as it deems
appropriate and until such instructions are received, Agent shall act, or refrain from acting, as it deems advisable. If Agent so requests, it shall first be indemnified to its reasonable satisfaction by the Lenders against any and all liability and
expense that may be incurred by it by reason of taking or continuing to take any such action. Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a
request or consent of the requisite Lenders and such request and any action taken or failure to act pursuant thereto shall be binding upon all of the Lenders. 
  

15.5 Notice of Default or Event of Default. Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or
Event of Default, except with respect to defaults in the payment of principal, interest, fees, and expenses required to be paid to Agent for the account of the Lenders and, except with respect to Events of Default of which Agent has actual
knowledge, unless Agent shall have received written notice from a Lender or Borrower referring to this Agreement, describing such Default or Event of Default, and stating that such notice is a “notice of default.” Agent promptly will
notify the Lenders of its receipt of any such notice or of any Event of Default of which Agent has actual knowledge. If any Lender obtains actual knowledge of any Event of Default, such Lender promptly shall notify the other Lenders and Agent of
such Event of Default. Each Lender shall be solely responsible for giving any notices to its Participants, if any. Subject to Section 15.4, Agent shall take such action with respect to such Default or Event of Default as may be requested
by the Required Lenders in accordance with Section 9; provided, however, that unless and until Agent has received any such request, Agent may (but shall not be obligated to) take such action, or refrain from taking such
action, with respect to such Default or Event of Default as it shall deem advisable. 
  
 15.6 Credit Decision. Each Lender acknowledges that none of the Agent-Related Persons has made any representation or warranty to it, and that no act by Agent hereinafter taken, including any review of
the affairs of Borrower and its Subsidiaries or Affiliates, shall be deemed to constitute any representation or warranty by any Agent-Related Person to any Lender. Each Lender represents to Agent that it has, independently and without reliance upon
any Agent-Related Person and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, prospects, operations, property, financial and other condition and creditworthiness of
Borrower and any other Person party to a Loan Document, and all applicable bank regulatory laws relating to the transactions contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to Borrower. Each Lender
also represents that it will, independently and without reliance upon any Agent-Related Person and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions
in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and
creditworthiness of Borrower and any other Person party to a Loan Document. Except for notices, reports, and other documents expressly herein required to be furnished to the Lenders by Agent, Agent shall not have any duty or responsibility to
provide any Lender with any credit or other information concerning the business, prospects, operations, property, financial and other condition or creditworthiness of Borrower and any other Person party to a Loan Document that may come into the
possession of any of the Agent-Related Persons. 
  

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 15.7 Costs and Expenses; Indemnification. Agent may incur and pay Lender Group Expenses to
the extent Agent reasonably deems necessary or appropriate for the performance and fulfillment of its functions, powers, and obligations pursuant to the Loan Documents, including court costs, attorneys fees and expenses, fees and expenses of
financial accountants, advisors, consultants, and appraisers, costs of collection by outside collection agencies, auctioneer fees and expenses, and costs of security guards or insurance premiums paid to maintain the Collateral, whether or not
Borrower or any Guarantor is obligated to reimburse Agent or Lenders for such expenses pursuant to this Agreement or otherwise. Agent is authorized and directed to deduct and retain sufficient amounts from the Collections of Borrower and its
Subsidiaries received by Agent to reimburse Agent for such out-of-pocket costs and expenses prior to the distribution of any amounts to Lenders. In the event Agent is not reimbursed for such costs and expenses from the Collections of Borrower and
its Subsidiaries received by Agent, each Lender hereby agrees that it is and shall be obligated to pay to or reimburse Agent for the amount of such Lender’s Pro Rata Share thereof. Whether or not the transactions contemplated hereby are
consummated, the Lenders shall indemnify upon demand the Agent-Related Persons (to the extent not reimbursed by or on behalf of Borrower or any Guarantor and without limiting the obligation of Borrower or any Guarantor to do so), according to their
Pro Rata Shares, from and against any and all Indemnified Liabilities; provided, however, that no Lender shall be liable for the payment to any Agent-Related Person of any portion of such Indemnified Liabilities resulting solely from
such Person’s gross negligence or willful misconduct nor shall any Lender be liable for the obligations of any Defaulting Lender in failing to make an Advance or other extension of credit hereunder. Without limitation of the foregoing, each
Lender shall reimburse Agent upon demand for such Lender’s Pro Rata Share of any costs or out of pocket expenses (including attorneys, accountants, advisors, and consultants fees and expenses) incurred by Agent in connection with the
preparation, execution, delivery, administration, modification, amendment, or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any other
Loan Document, or any document contemplated by or referred to herein, to the extent that Agent is not reimbursed for such expenses by or on behalf of Borrower or the Guarantors. The undertaking in this Section shall survive the payment of all
Obligations hereunder and the resignation or replacement of Agent. 
  
 15.8 Agent in Individual Capacity. WFF and its Affiliates may make loans to, issue letters of credit for the account of, accept deposits from, acquire equity interests in, and generally engage in any kind of banking, trust,
financial advisory, underwriting, or other business with Borrower and its Subsidiaries and Affiliates and any other Person party to any Loan Documents as though WFF were not Agent hereunder, and, in each case, without notice to or consent of the
other members of the Lender Group. The other members of the Lender Group acknowledge that, pursuant to such activities, WFF or its Affiliates may receive information regarding Borrower or its Affiliates and any other Person party to any Loan
Documents that is subject to confidentiality obligations in favor of Borrower or such other Person and that prohibit the disclosure of such information to the Lenders, and the Lenders acknowledge that, in such circumstances (and in the absence of a
waiver of such confidentiality obligations, which waiver Agent will use its reasonable best efforts to obtain), Agent shall not be under any obligation to provide such information to them. The terms “Lender” and “Lenders” include
WFF in its individual capacity. 
  
 15.9 Successor
Agent. Agent may resign as Agent upon 45 days notice to the Lenders. If Agent resigns under this Agreement, the Required Lenders shall appoint a successor Agent for the Lenders. If no successor Agent is appointed prior to the effective date
of the resignation of Agent, Agent may appoint, after consulting with the Lenders, a successor Agent. If Agent has materially breached or failed to perform any material provision of this Agreement or of applicable law, the Required Lenders may agree
in writing to remove and replace Agent with a successor Agent from among the Lenders. In any such event, upon the acceptance of its appointment as successor Agent hereunder, such successor Agent shall succeed to all the rights, powers, and duties of
the retiring Agent and the term “Agent” shall mean such successor Agent and the retiring Agent’s appointment, powers, and duties as Agent shall be terminated. After any retiring Agent’s resignation hereunder as Agent, the
provisions of this Section 16 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under this Agreement. If no successor Agent has accepted appointment as Agent by the date which is 45 days
following a retiring Agent’s notice of resignation, 

  

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the retiring Agent’s resignation shall nevertheless thereupon become effective and the Lenders shall perform all of the duties of Agent hereunder until
such time, if any, as the Lenders appoint a successor Agent as provided for above. 
  
 15.10 Lender in Individual Capacity. Any Lender and its respective Affiliates may make loans to, issue letters of credit for the account of, accept deposits from, acquire equity interests in and
generally engage in any kind of banking, trust, financial advisory, underwriting, or other business with Borrower and its Subsidiaries and Affiliates and any other Person party to any Loan Documents as though such Lender were not a Lender hereunder
without notice to or consent of the other members of the Lender Group. The other members of the Lender Group acknowledge that, pursuant to such activities, such Lender and its respective Affiliates may receive information regarding Borrower or its
Affiliates and any other Person party to any Loan Documents that is subject to confidentiality obligations in favor of Borrower or such other Person and that prohibit the disclosure of such information to the Lenders, and the Lenders acknowledge
that, in such circumstances (and in the absence of a waiver of such confidentiality obligations, which waiver such Lender will use its reasonable best efforts to obtain), such Lender shall not be under any obligation to provide such information to
them. With respect to the Swing Loans and Protective Advances, Swing Lender shall have the same rights and powers under this Agreement as any other Lender and may exercise the same as though it were not the sub-agent of Agent. 
  
 15.11 Withholding Taxes. 
  
 (a) All payments made by Borrower hereunder or under any note or other Loan
Document will be made without setoff, counterclaim, or other defense. In addition, all such payments will be made free and clear of, and without deduction or withholding for, any present or future Taxes, and in the event any deduction or withholding
of Taxes is required, Borrower shall comply with the penultimate sentence of this Section 15.11(a). “Taxes” shall mean, any taxes, levies, imposts, duties, fees, assessments or other charges of whatever nature now or hereafter
imposed by any jurisdiction or by any political subdivision or taxing authority thereof or therein with respect to such payments (but excluding any tax imposed by any jurisdiction or by any political subdivision or taxing authority thereof or
therein measured by or based on the net income or net profits of any Lender) and all interest, penalties or similar liabilities with respect thereto. If any Taxes are so levied or imposed, Borrower agrees to pay the full amount of such Taxes and
such additional amounts as may be necessary so that every payment of all amounts due under this Agreement, any note, or Loan Document, including any amount paid pursuant to this Section 15.11(a) after withholding or deduction for or on
account of any Taxes, will not be less than the amount provided for herein; provided, however, that Borrower shall not be required to increase any such amounts if the increase in such amount payable results from Agent’s or such Lender’s
own willful misconduct or gross negligence (as finally determined by a court of competent jurisdiction). Borrower will furnish to Agent as promptly as possible after the date the payment of any Tax is due pursuant to applicable law certified copies
of tax receipts evidencing such payment by Borrower. 
  
 (b) If a
Lender claims an exemption from United States withholding tax, Lender agrees with and in favor of Agent and Borrower, to deliver to Agent: 
  
 (i) if such Lender claims an exemption from United States withholding tax pursuant to its portfolio interest exception, (A) a statement of the
Lender, signed under penalty of perjury, that it is not a (I) a “bank” as described in Section 881(c)(3)(A) of the IRC, (II) a 10% shareholder of Borrower (within the meaning of Section 871(h)(3)(B) of the IRC), or (III) a
controlled foreign corporation related to Borrower within the meaning of Section 864(d)(4) of the IRC, and (B) a properly completed and executed IRS Form W-8BEN, before receiving its first payment under this Agreement and at any other time
reasonably requested by Agent or Borrower; 
  
 (ii) if such
Lender claims an exemption from, or a reduction of, withholding tax under a United States tax treaty, properly completed and executed IRS Form W-8BEN before receiving its first payment under this Agreement and at any other time reasonably requested
by Agent or Borrower; 
  

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 (iii) if such Lender claims that interest paid under this Agreement is exempt from United States
withholding tax because it is effectively connected with a United States trade or business of such Lender, two properly completed and executed copies of IRS Form W-8ECI before receiving its first payment under this Agreement and at any other time
reasonably requested by Agent or Borrower; or; 
  
 (iv) such
other form or forms, including IRS Form W-9, as may be required under the IRC or other laws of the United States as a condition to exemption from, or reduction of, United States withholding or backup withholding tax before receiving its first
payment under this Agreement and at any other time reasonably requested by Agent or Borrower. 
  
 (c) If a Lender claims an exemption from withholding tax in a jurisdiction other than the United States, Lender agrees with and in favor of Agent and Borrower, to deliver to Agent any such form or forms, as may be
required under the laws of such jurisdiction as a condition to exemption from, or reduction of, foreign withholding or backup withholding tax before receiving its first payment under this Agreement and at any other time reasonably requested by Agent
or Borrower. 
  
 (d) Lender agrees promptly to notify Agent and
Borrower of any change in circumstances which would modify or render invalid any claimed exemption or reduction. 
  
 (e) If any Lender claims exemption from, or reduction of, withholding tax and such Lender sells, assigns, grants a participation in, or otherwise
transfers all or part of the Obligations of Borrower to such Lender, such Lender agrees to notify Agent and Borrower of the percentage amount in which it is no longer the beneficial owner of Obligations of Borrower to such Lender. To the extent of
such percentage amount, Agent and Borrower will treat such Lender’s documentation provided pursuant to Sections 16.11(b) or 16.11(c) as no longer valid. With respect to such percentage amount, Lender may provide new documentation,
pursuant to Sections 16.11 (b) or 16.11(c), if applicable. 
  
 (f) If any Lender is entitled to a reduction in the applicable withholding tax, Agent may withhold from any interest payment to such Lender an amount equivalent to the applicable withholding tax after taking into account such reduction. If
the forms or other documentation required by subsection (b) or (c) of this Section 15.11 are not delivered to Agent, then Agent may withhold from any interest payment to such Lender not providing such forms or other
documentation an amount equivalent to the applicable withholding tax. 
  
 (g) If the IRS or any other Governmental Authority of the United States or other jurisdiction asserts a claim that Agent did not properly withhold tax from amounts paid to or for the account of any Lender due to a failure on the part of the
Lender (because the appropriate form was not delivered, was not properly executed, or because such Lender failed to notify Agent of a change in circumstances which rendered the exemption from, or reduction of, withholding tax ineffective, or for any
other reason) such Lender shall indemnify and hold Agent harmless for all amounts paid, directly or indirectly, by Agent, as tax or otherwise, including penalties and interest, and including any taxes imposed by any jurisdiction on the amounts
payable to Agent under this Section 15.11, together with all costs and expenses (including attorneys fees and expenses). The obligation of the Lenders under this subsection shall survive the payment of all Obligations and the resignation
or replacement of Agent. 
  
 (h) If the Agent, a Lender or the
Issuing Lender determines, in its sole discretion, that it has received a refund of any Taxes as to which it has been indemnified by Borrower or with respect to which Borrower has paid additional amounts pursuant to this Section, it shall credit to
Borrower an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by Borrower under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses of the
Agent, such Lender or the Issuing Lender, as the case may be, and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund), provided that Borrower, upon the request of the Agent, such
Lender or the Issuing Lender, agrees to repay the amount paid over to Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Agent, such Lender 

  

 - 49 - 

 
or the Issuing Lender in the event the Agent, such Lender or the Issuing Lender is required to repay such refund to such Governmental Authority. This
paragraph shall not be construed to require the Agent, any Lender or the Issuing Lender to make available its tax returns (or any other information relating to its taxes that it deems confidential) to Borrower or any other Person. 
  
 (i) If any Lender requests compensation under Section 2.13 or if
Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of this Section 15.11, then, upon notice to such Lender and Agent, such Lender shall use reasonable efforts to designate a
different one of its lending offices or to assign its rights and obligations hereunder to another of its offices or branches and such other office or branch is reasonably acceptable to Agent, if (i) in the reasonable judgment of such Lender,
such designation or assignment would eliminate or reduce amounts payable pursuant to Section 2.13 or this Section 15.11 in the future, and (ii) in the reasonable judgment of such Lender, such designation or assignment
would not subject it to any material unreimbursed cost or expense and would not otherwise be materially disadvantageous to it. If, after such reasonable efforts, such affected Lender does not so designate a different one of its lending offices or
assign its rights to another of its offices or branches so as to eliminate Borrower’s obligation to pay any future amounts to such Lender pursuant to Sections 2.13 or 15.11, then Borrower (without prejudice to any amounts then due to
such affected Lender under Section 2.13 or 15.11) may designate another Lender acceptable to Agent to purchase the Obligations owed to such affected Lender and such affected Lender’s rights hereunder and with respect thereto,
such affected Lender shall assign to the replacement Lender its Obligations, without recourse upon or warranty by (except as to title) such affected Lender, and upon such purchase by the replacement Lender, in accordance with and subject to the
terms an conditions of Section 15.1, such replacement Lender shall be deemed to be a “Lender” for purposes of this Agreement and such affected Lender shall cease to be a “Lender” for purposes of this Agreement.
Borrower agrees to pay all reasonable costs and expenses incurred by such affected Lender in connection with any such designation or assignment. 
  
 15.12 Collateral Matters. 
  
 (a) The Lenders hereby irrevocably authorize Agent, at its option and in its sole discretion, to release any Lien on any Collateral (i) upon the
termination of the Commitments and payment and satisfaction in full by Borrower of all Obligations, (ii) constituting property being sold or disposed of if a release is required or desirable in connection therewith and if Borrower certifies to
Agent that the sale or disposition is permitted under Section 6.4 of this Agreement or the other Loan Documents (and Agent may rely conclusively on any such certificate, without further inquiry), (iii) constituting property in which
Borrower or its Subsidiaries owned no interest at the time the Agent’s Lien was granted nor at any time thereafter, or (iv) constituting property leased to Borrower or its Subsidiaries under a lease that has expired or is terminated in a
transaction permitted under this Agreement. Except as provided above, Agent will not execute and deliver a release of any Lien on any Collateral without the prior written authorization of (y) if the release is of all or substantially all of the
Collateral, all of the Lenders, or (z) otherwise, the Required Lenders. Upon request by Agent or Borrower at any time, the Lenders will confirm in writing Agent’s authority to release any such Liens on particular types or items of
Collateral pursuant to this Section 15.12; provided, however, that (1) Agent shall not be required to execute any document necessary to evidence such release on terms that, in Agent’s opinion, would expose Agent
to liability or create any obligation or entail any consequence other than the release of such Lien without recourse, representation, or warranty, and (2) such release shall not in any manner discharge, affect, or impair the Obligations or any
Liens (other than those expressly being released) upon (or obligations of Borrower or any Guarantor in respect of) all interests retained by Borrower or any Guarantor, including, the proceeds of any sale, all of which shall continue to constitute
part of the Collateral. 
  
 (b) Agent shall have no obligation
whatsoever to any of the Lenders to assure that the Collateral exists or is owned by Borrower or is cared for, protected, or insured or has been encumbered, or that the Agent’s Liens have been properly or sufficiently or lawfully created,
perfected, protected, or enforced or are entitled to any particular priority, or to exercise at all or in any particular manner or under any duty of care, disclosure or fidelity, or to continue exercising, any of the rights, authorities and powers
granted or available to Agent pursuant to any of the Loan Documents, it being understood and agreed that in respect of the Collateral, 

  

 - 50 - 

 
or any act, omission, or event related thereto, subject to the terms and conditions contained herein, Agent may act in any manner it may deem appropriate, in
its sole discretion given Agent’s own interest in the Collateral in its capacity as one of the Lenders and that Agent shall have no other duty or liability whatsoever to any Lender as to any of the foregoing, except as otherwise provided
herein. 
  
 15.13 Restrictions on Actions by Lenders;
Sharing of Payments. 
  
 (a) Each of the Lenders agrees
that it shall not, without the express written consent of Agent, and that it shall, to the extent it is lawfully entitled to do so, upon the written request of Agent, set off against the Obligations, any amounts owing by such Lender to Borrower or
any Guarantor or any deposit accounts of Borrower or any Guarantor now or hereafter maintained with such Lender. Each of the Lenders further agrees that it shall not, unless specifically requested to do so in writing by Agent, take or cause to be
taken any action, including, the commencement of any legal or equitable proceedings, to foreclose any Lien on, or otherwise enforce any security interest in, any of the Collateral. 
  
 (b) If, at any time or times any Lender shall receive (i) by payment, foreclosure, setoff, or otherwise, any proceeds
of Collateral or any payments with respect to the Obligations, except for any such proceeds or payments received by such Lender from Agent pursuant to the terms of this Agreement, or (ii) payments from Agent in excess of such Lender’s
ratable portion of all such distributions by Agent, such Lender promptly shall (1) turn the same over to Agent, in kind, and with such endorsements as may be required to negotiate the same to Agent, or in immediately available funds, as
applicable, for the account of all of the Lenders and for application to the Obligations in accordance with the applicable provisions of this Agreement, or (2) purchase, without recourse or warranty, an undivided interest and participation in
the Obligations owed to the other Lenders so that such excess payment received shall be applied ratably as among the Lenders in accordance with their Pro Rata Shares; provided, however, that to the extent that such excess payment
received by the purchasing party is thereafter recovered from it, those purchases of participations shall be rescinded in whole or in part, as applicable, and the applicable portion of the purchase price paid therefor shall be returned to such
purchasing party, but without interest except to the extent that such purchasing party is required to pay interest in connection with the recovery of the excess payment. 
  
 15.14 Agency for Perfection. Agent hereby appoints each other Lender as its agent (and each Lender hereby
accepts such appointment) for the purpose of perfecting the Agent’s Liens in assets which, in accordance with Article 8 or Article 9, as applicable, of the Code can be perfected only by possession or control. Should any Lender obtain possession
or control of any such Collateral, such Lender shall notify Agent thereof, and, promptly upon Agent’s request therefor shall deliver possession or control of such Collateral to Agent or in accordance with Agent’s instructions. 

 
 15.15 Payments by Agent to the Lenders. All payments to be
made by Agent to the Lenders shall be made by bank wire transfer of immediately available funds pursuant to such wire transfer instructions as each party may designate for itself by written notice to Agent. Concurrently with each such payment, Agent
shall identify whether such payment (or any portion thereof) represents principal, premium, fees, or interest of the Obligations. 
  
 15.16 Concerning the Collateral and Related Loan Documents. Each member of the Lender Group authorizes and directs Agent to enter into this
Agreement and the other Loan Documents. Each member of the Lender Group agrees that any action taken by Agent in accordance with the terms of this Agreement or the other Loan Documents relating to the Collateral and the exercise by Agent of its
powers set forth therein or herein, together with such other powers that are reasonably incidental thereto, shall be binding upon all of the Lenders. 
  

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 15.17 Field Audits and Examination Reports; Confidentiality; Disclaimers by Lenders; Other Reports
and Information. By becoming a party to this Agreement, each Lender: 
  
 (a) is deemed to have requested that Agent furnish such Lender, promptly after it becomes available, a copy of each field audit or examination report (each a “Report” and collectively,
“Reports”) prepared by or at the request of Agent, and Agent shall so furnish each Lender with such Reports, 
  
 (b) expressly agrees and acknowledges that Agent does not (i) make any representation or warranty as to the accuracy of any Report, and
(ii) shall not be liable for any information contained in any Report, 
  
 (c) expressly agrees and acknowledges that the Reports are not comprehensive audits or examinations, that Agent or other party performing any audit or examination will inspect only specific information regarding
Borrower and will rely significantly upon Borrower’s and its Subsidiaries’ books and records, as well as on representations of Borrower’s personnel, 
  
 (d) agrees to keep all Reports and other material, non-public information regarding Borrower and its Subsidiaries and their
operations, assets, and existing and contemplated business plans in a confidential manner in accordance with Section 16.7, and 
  
 (e) without limiting the generality of any other indemnification provision contained in this Agreement, agrees: (i) to hold Agent and any such other
Lender preparing a Report harmless from any action the indemnifying Lender may take or fail to take or any conclusion the indemnifying Lender may reach or draw from any Report in connection with any loans or other credit accommodations that the
indemnifying Lender has made or may make to Borrower, or the indemnifying Lender’s participation in, or the indemnifying Lender’s purchase of, a loan or loans of Borrower, and (ii) to pay and protect, and indemnify, defend and hold
Agent, and any such other Lender preparing a Report harmless from and against, the claims, actions, proceedings, damages, costs, expenses, and other amounts (including, attorneys fees and costs) incurred by Agent and any such other Lender preparing
a Report as the direct or indirect result of any third parties who might obtain all or part of any Report through the indemnifying Lender. 
  
 In addition to the foregoing: (x) any Lender may from time to time request of Agent in writing that Agent provide to such Lender a copy of any report or document
provided by Borrower or any of its Subsidiaries to Agent that has not been contemporaneously provided by Borrower or any of its Subsidiaries to such Lender, and, upon receipt of such request, Agent promptly shall provide a copy of same to such
Lender, (y) to the extent that Agent is entitled, under any provision of the Loan Documents, to request additional reports or information from Borrower and its Subsidiaries, any Lender may, from time to time, reasonably request Agent to
exercise such right as specified in such Lender’s notice to Agent, whereupon Agent promptly shall request of Borrower or the applicable Subsidiaries the additional reports or information reasonably specified by such Lender, and, upon receipt
thereof from Borrower or the applicable Subsidiaries, Agent promptly shall provide a copy of same to such Lender, and (z) any time that Agent renders to Borrower a statement regarding the Loan Account, Agent shall send a copy of such statement
to each Lender. 
  
 15.18 Several Obligations; No
Liability. Notwithstanding that certain of the Loan Documents now or hereafter may have been or will be executed only by or in favor of Agent in its capacity as such, and not by or in favor of the Lenders, any and all obligations on the part
of Agent (if any) to make any credit available hereunder shall constitute the several (and not joint) obligations of the respective Lenders on a ratable basis, according to their respective Commitments, to make an amount of such credit not to
exceed, in principal amount, at any one time outstanding, the amount of their respective Commitments. Nothing contained herein shall confer upon any Lender any interest in, or subject any Lender to any liability for, or in respect of, the business,
assets, profits, losses, or liabilities of any other Lender. Each Lender shall be solely responsible for notifying its Participants of any matters relating to the Loan Documents to the extent any such notice may be required, and no Lender shall have
any obligation, duty, or liability to any Participant of any other Lender. Except as provided in Section 15.7, no member of the Lender Group shall have any liability for the acts of any other member of the Lender Group. No Lender shall
be responsible to Borrower or any other Person for any failure by any other Lender to fulfill its obligations to make credit available hereunder, nor to advance for it or on its behalf in connection with its Commitment, nor to take any other action
on its behalf hereunder or in connection with the financing contemplated herein. 
  

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 15.19 Bank Product Providers. Each Bank Product Provider shall be deemed a party hereto for
purposes of any reference in a Loan Document to the parties for whom Agent is acting; it being understood and agreed that the rights and benefits of such Bank Product Provider under the Loan Documents consist exclusively of such Bank Product
Provider’s right to share in payments and collections out of the Collateral as more fully set forth herein. In connection with any such distribution of payments and collections, Agent shall be entitled to assume no amounts are due to any Bank
Product Provider unless such Bank Product Provider has notified Agent in writing of the amount of any such liability owed to it prior to such distribution. 
  
 16. GENERAL PROVISIONS. 
  
 16.1 Effectiveness. This Agreement shall be binding and deemed effective when executed by Borrower, Agent, and each Lender whose signature
is provided for on the signature pages hereof. 
  
 16.2
Section Headings. Headings and numbers have been set forth herein for convenience only. Unless the contrary is compelled by the context, everything contained in each Section applies equally to this entire Agreement. 
  
 16.3 Interpretation. Neither this Agreement nor any uncertainty
or ambiguity herein shall be construed against the Lender Group or Borrower, whether under any rule of construction or otherwise. On the contrary, this Agreement has been reviewed by all parties and shall be construed and interpreted according to
the ordinary meaning of the words used so as to accomplish fairly the purposes and intentions of all parties hereto. 
  
 16.4 Severability of Provisions. Each provision of this Agreement shall be severable from every other provision of this Agreement for the
purpose of determining the legal enforceability of any specific provision. 
  
 16.5 Counterparts; Electronic Execution. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall
be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Agreement. Delivery of an executed counterpart of this Agreement by telefacsimile or other electronic method of transmission shall be equally
as effective as delivery of an original executed counterpart of this Agreement. Any party delivering an executed counterpart of this Agreement by telefacsimile or other electronic method of transmission also shall deliver an original executed
counterpart of this Agreement but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Agreement. The foregoing shall apply to each other Loan Document mutatis
mutandis. 
  
 16.6 Revival and Reinstatement of
Obligations. If the incurrence or payment of the Obligations by Borrower or any Guarantor or the transfer to the Lender Group of any property should for any reason subsequently be declared to be void or voidable under any state or federal
law relating to creditors’ rights, including provisions of the Bankruptcy Code relating to fraudulent conveyances, preferences, or other voidable or recoverable payments of money or transfers of property (collectively, a “Voidable
Transfer”), and if the Lender Group is required to repay or restore, in whole or in part, any such Voidable Transfer, or elects to do so upon the reasonable advice of its counsel, then, as to any such Voidable Transfer, or the amount
thereof that the Lender Group is required or elects to repay or restore, and as to all reasonable costs, expenses, and attorneys fees of the Lender Group related thereto, the liability of Borrower or any Guarantor automatically shall be revived,
reinstated, and restored and shall exist as though such Voidable Transfer had never been made. 
  
 16.7 Confidentiality. Agent and Lenders each individually (and not jointly or jointly and severally) agree that material, non-public information regarding Borrower and its Subsidiaries, their 

  

 - 53 - 

 
operations, assets, and existing and contemplated business plans shall be treated by Agent and the Lenders in a confidential manner, and shall not be
disclosed by Agent and the Lenders to Persons who are not parties to this Agreement, except: (a) to attorneys for and other advisors, accountants, auditors, and consultants to any member of the Lender Group, (b) to Subsidiaries and
Affiliates of any member of the Lender Group (including the Bank Product Providers), provided that any such Subsidiary or Affiliate shall have agreed to receive such information hereunder subject to the terms of this Section 16.7,
(c) as may be required by statute, decision, or judicial or administrative order, rule, or regulation, (d) as may be agreed to in advance by Borrower or its Subsidiaries or as requested or required by any Governmental Authority pursuant to
any subpoena or other legal process, (e) as to any such information that is or becomes generally available to the public (other than as a result of prohibited disclosure by Agent or the Lenders), (f) in connection with any assignment,
prospective assignment, sale, prospective sale, participation or prospective participations, or pledge or prospective pledge of any Lender’s interest under this Agreement, provided that any such assignee, prospective assignee, purchaser,
prospective purchaser, participant, prospective participant, pledgee, or prospective pledgee shall have agreed in writing to receive such information hereunder subject to the terms of this Section, and (g) in connection with any litigation or
other adversary proceeding involving parties hereto which such litigation or adversary proceeding involves claims related to the rights or duties of such parties under this Agreement or the other Loan Documents. The provisions of this
Section 16.7 shall survive for 2 years after the payment in full of the Obligations. 
  
 16.8 Integration. This Agreement, together with the other Loan Documents, reflects the entire understanding of the parties with respect to
the transactions contemplated hereby and shall not be contradicted or qualified by any other agreement, oral or written, before the date hereof. 
  
 16.9 Public Disclosure. Borrower agrees that neither it nor any of its Affiliates will issue any press release or other public disclosure
using the name of Agent, any Lender or any of their respective Affiliates or referring to this Agreement or any other Loan Document without the prior written consent of Agent and such Lender, except to the extent that Borrower or such Affiliate is
required to do so under applicable law (in which event, Borrower or such Affiliate, as applicable, will consult with Agent and such Lender before issuing such press release or other public disclosure). Borrower hereby authorizes Agent and each
Lender, after consultation with Borrower, to advertise the closing of the transactions contemplated by this Agreement, and to make appropriate announcements of the financial arrangements entered into among the parties hereto, as Agent and the
Lenders shall deem appropriate, including announcements commonly known as tombstones, in such trade publications, business journals, newspapers of general circulation and to such selected parties as Agent or such Lender shall deem appropriate.

  
 [Signature pages to follow.] 
  

 - 54 - 

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

			
	 SUMTOTAL SYSTEMS, INC.,
 a Delaware
corporation, as Borrower

		
	By:	 	  

	Name:	 	Neil J. Laird
	Title:	 	Executive VP and Chief Financial Officer

  

 S-1 

			
	 WELLS FARGO FOOTHILL, INC.,
 a
California corporation, as Agent and as a Lender

		
	By:	 	  

	Name:	 	Todd Nakamoto
	Title:	 	Vice President

  

 S-2 

 Final Form 
  

EXHIBIT A-1 
  
 FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT 
  
 This ASSIGNMENT AND ACCEPTANCE AGREEMENT (this “Assignment Agreement”) is entered into as of
             between                          (the
“Assignor”) and                          (the “Assignee”). Reference is made to the credit agreement
described in Annex I hereto (the “Credit Agreement”). Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in the Credit Agreement. 
  
 1. In accordance with the terms and conditions of Section 13 of
the Credit Agreement, the Assignor hereby sells and assigns to the Assignee, and the Assignee hereby purchases and assumes from the Assignor without recourse and without representation or warranty (except as provided in this Assignment Agreement),
that interest in and to the Assignor’s rights and obligations under the Loan Documents as of the date hereof with respect to the Obligations owing to the Assignor, and the Assignor’s portion of the Commitments, all to the extent specified
on Annex I. 
  
 2. The Assignor (a) represents and
warrants that (i) it is the legal and beneficial owner of the interest being assigned by it hereunder and that such interest is free and clear of any adverse claim and (ii) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment Agreement and to consummate the transactions contemplated hereby; (b) makes no representation or warranty and assumes no responsibility with respect to (i) any statements, representations
or warranties made in or in connection with the Loan Documents, or (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any other instrument or document furnished pursuant thereto;
(c) makes no representation or warranty and assumes no responsibility with respect to the financial condition of Borrower or any Guarantor or the performance or observance by Borrower or any Guarantor of any of their respective obligations
under the Loan Documents or any other instrument or document furnished pursuant thereto, and (d) represents and warrants that the amount set forth as the Purchase Price on Annex I represents the amount owed by Borrower to Assignor with
respect to Assignor’s share of the Term Loan and the Advances assigned hereunder, as reflected on the Assignor’s books and records. 
  
 3. The Assignee represents and warrants that (a) it has full power and authority, and has taken all action necessary, to execute and deliver this
Assignment Agreement and to consummate the transactions contemplated hereby and (b) that this Assignment Agreement has been duly authorized, executed and delivered by the Assignee and that this Assignment Agreement constitutes a legal, valid
and binding obligation of the Assignee, enforceable in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, moratorium or other similar laws affecting creditors’ rights generally and by general equitable
principles. 
  
 4. The Assignee (a) confirms that it has
received copies of the Credit Agreement, and the other Loan Documents, together with copies of the financial statements referred to therein and such other documents and information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment Agreement and that it is not relying upon any representation, warranty or statement (except any such representation, warranty or statement expressly set forth in this Assignment Agreement); (b) agrees that
it will, independently and without reliance upon Agent, Assignor, or any other Lender, based upon such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking any action
under the Loan Documents; (c) confirms that it is an Eligible Transferee; (d) appoints and authorizes the Agent to take such action as agent on its behalf and to exercise such powers under the Loan Documents as are delegated to Agent by
the terms thereof, together with such powers as are reasonably incidental thereto; [and] (e) agrees that it will perform in accordance with their terms all of 

 
the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender. [; and (g) attaches the forms prescribed by
the Internal Revenue Service of the United States certifying as to the Assignee’s status for purposes of determining exemption from United States withholding taxes with respect to all payments to be made to the Assignee under the Credit
Agreement or such other documents as are necessary to indicate that all such payments are subject to such rates at a rate reduced by an applicable tax treaty]. The Assignor shall have no duty or responsibility either initially or on a
continuing basis to make any such investigation or any such appraisal on behalf of the Assignee or to provide the Assignee with any credit or other information with respect thereto, whether coming into its possession before the making of the initial
extension of credit under the Credit Agreement or at any time or times thereafter. 
  
 5. Following the execution of this Assignment Agreement by the Assignor and Assignee, the Assignor will deliver this Assignment Agreement to the Agent for recording by the Agent. The effective date of this Assignment
(the “Settlement Date”) shall be the latest to occur of (a) the date of the execution and delivery hereof by the Assignor and the Assignee, (b) the receipt by Agent for its sole and separate account a processing fee in the amount
of $3,500 (if required by the Credit Agreement), (c) the receipt of any required consent of the Agent, and (d) the date specified in Annex I. 
  

6. As of the Settlement Date (a) the Assignee shall be a party to the Credit Agreement and, to the extent of the interest assigned pursuant to
this Assignment Agreement, have the rights and obligations of a Lender thereunder and under the other Loan Documents, and (b) the Assignor shall, to the extent of the interest assigned pursuant to this Assignment Agreement, relinquish its
rights and be released from its obligations under the Credit Agreement and the other Loan Documents, provided, however, that nothing contained herein shall release any assigning Lender from obligations that survive the termination of
the Credit Agreement, including such assigning Lender’s obligations under Article 15 and Section 16.7 of the Credit Agreement. 
  
 7. Upon the Settlement Date, Assignee shall pay to Assignor the Purchase Price (as set forth in Annex I). From and after the Settlement Date, Agent
shall make all payments that are due and payable to the holder of the interest assigned hereunder (including payments of principal, interest, fees and other amounts) to Assignor for amounts which have accrued up to but excluding the Settlement Date
and to Assignee for amounts which have accrued from and after the Settlement Date. On the Settlement Date, Assignor shall pay to Assignee an amount equal to the portion of any interest, fee, or any other charge that was paid to Assignor prior to the
Settlement Date on account of the interest assigned hereunder and that are due and payable to Assignee with respect thereto, to the extent that such interest, fee or other charge relates to the period of time from and after the Settlement Date.

  
 8. This Assignment Agreement may be executed in counterparts
and by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. This Assignment Agreement may be executed and delivered by
telecopier or other facsimile transmission all with the same force and effect as if the same were a fully executed and delivered original manual counterpart. 
  
 9. THIS ASSIGNMENT AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

 IN WITNESS WHEREOF, the parties hereto have caused this Assignment Agreement and Annex I hereto to be
executed by their respective officers, as of the first date written above. 
  

							
	 	 	 [NAME OF ASSIGNOR]
 a
                                    ,
 as Assignor

			
	 	 	By	 	  

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 
		
	 	 	 [NAME OF ASSIGNEE]
 a
                                    ,
 as Assignee

			
	 	 	By	 	  

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

  

					
	 [ACCEPTED THIS      DAY OF
                                
  
 WELLS FARGO FOOTHILL, INC.,
 a California corporation, as Agent

		
	By	 	  

	 	 	Name:	 	 
	 	 	Title:]	 	 

 ANNEX FOR ASSIGNMENT AND ACCEPTANCE 
  
 ANNEX I 
  
 1. Borrower: SumTotal Systems, Inc. 
  
 2. Name and Date of Credit Agreement: 
  
 Credit Agreement, dated as of October 4, 2005, by and among the Borrower, the lenders from time to time party thereto (the
“Lenders”) and Wells Fargo Foothill, Inc., a California corporation, as the arranger and administrative agent for the Lenders 
  

					
	3. Date of Assignment Agreement:	  	                        
		
	4. Amounts:	  	 
			
	 	 	a. Assigned Amount of Revolver Commitment	  	$                    
			
	 	 	b. Assigned Amount of Advances	  	$                    
			
	 	 	c. Assigned Amount of Term Loan	  	$                    
		
	5. Settlement Date:	  	                        
		
	6. Purchase Price	  	$                    

  
 7. Notice and Payment Instructions,
etc. 
  

			
	Assignee:	 	    Assignor:

	  

	 	  

	  

	 	  

	  

	 	  

 8. Agreed and Accepted: 
  

							
	[ASSIGNOR]	 	[ASSIGNEE]
				
	By:	 	  

	 	By:	 	  

	Title:	 	  

	 	Title:	 	  

  

					
	Accepted:
	 WELLS FARGO FOOTHILL, INC.,
 a
California corporation, as Agent

		
	By	 	  

	 	 	Name:	 	 
	 	 	Title:	 	 

 Final Form 
  
 EXHIBIT C-1 
  
 FORM OF COMPLIANCE CERTIFICATE 
  
 [on Borrower’s letterhead] 
  

	To:	Wells Fargo Foothill, Inc., as Agent 

	    	2450 Colorado Avenue, Suite 3000 West 

	    	Santa Monica, CA 90404 

	    	Attn: Business Finance Division Manager 

  

	 	Re:	Compliance Certificate dated                         

  
 Ladies and Gentlemen: 
  
 Reference is made to that certain CREDIT AGREEMENT (the
“Credit Agreement”) dated as of October 4, 2005, by and among the lenders identified on the signature pages thereof (such lenders, together with their respective successors and permitted assigns, are referred to hereinafter
each individually as a “Lender” and collectively as the “Lenders”), WELLS FARGO FOOTHILL, INC., a California corporation, as the arranger and administrative agent for the Lenders (“Agent”),
and SUMTOTAL SYSTEMS, INC., a Delaware corporation (the “Borrower”.) Capitalized terms used in this Compliance Certificate have the meanings set forth in the Credit Agreement unless specifically defined herein. 
  
 Pursuant to Schedule 5.3 of the Credit Agreement, the undersigned
officer of Borrower hereby certifies that: 
  
 1. The financial
information of Borrower and its Subsidiaries furnished in Schedule 1 attached hereto, has been prepared in accordance with GAAP (except for year-end adjustments and the lack of footnotes), and fairly presents in all material respects the
financial condition of Borrower and its Subsidiaries. 
  
 2. Such
officer has reviewed the terms of the Credit Agreement and has made, or caused to be made under his/her supervision, a review in reasonable detail of the transactions and condition of Borrower and its Subsidiaries during the accounting period
covered by the financial statements delivered pursuant to Schedule 5.3 of the Credit Agreement. 
  
 3. Such review has not disclosed the existence on and as of the date hereof, and the undersigned does not have knowledge of the existence as of the date
hereof, of any event or condition that constitutes a Default or Event of Default, except for such conditions or events listed on Schedule 2 attached hereto, specifying the nature and period of existence thereof and what action Borrower and
its Subsidiaries have taken, are taking, or propose to take with respect thereto. 
  
 4. The representations and warranties of Borrower and its Subsidiaries set forth in the Credit Agreement and the other Loan Documents are true and correct in all material respects on and as of the date hereof (except
to the extent they relate to a specified date), except as set forth on Schedule 3 attached hereto. 

 5. Borrower and its Subsidiaries have maintained from all times from the Closing Date through the
delivery of this Compliance Certificate Qualified Cash plus Excess Availability of $5,000,000 or more. Qualified Cash as of the date of this Compliance Certificate is demonstrated on Schedule 4 hereto. 
  
 6. [The following certification is to be included when delivered as of the
end of any fiscal year:] [Excess Cash Flow for the fiscal year most recently ended is $             as demonstrated on Schedule 5 hereto.] 
  
 One of the following certifications must be delivered at the end of each [month/quarter]
that is a date as of which a financial covenant is to be tested in accordance with Section 6.16 of the Credit Agreement: 
  
 7(a). [Provided that no Triggering Event Date has occurred, the following certification may be made in lieu of certification 7(b):] Borrower and
its Subsidiaries have maintained from all times from the Closing Date through the applicable financial covenant compliance date Qualified Cash plus Excess Availability of $15,000,000 or more. Qualified Cash as of the date of this Compliance
Certificate is demonstrated on Schedule 4 hereto. 
  
 7(b).
[After a Triggering Event Date, the following certification must be made:] Borrower and its Subsidiaries are in compliance with the applicable covenants contained in Section 6.16 of the Credit Agreement as demonstrated on
Schedule 6 hereto. 

 IN WITNESS WHEREOF, this Compliance Certificate is executed by the undersigned this
     day of                 ,         . 
  

			
	SUMTOTAL SYSTEMS, INC., a Delaware corporation
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

 SCHEDULE 1 
  
 Financial Information 

 SCHEDULE 2 
  
 Default or Event of Default 

 SCHEDULE 3 
  
 Representations and Warranties 

 SCHEDULE 4 
  
 Qualified Cash 

 SCHEDULE 5 
  
 Excess Cash Flow 
  
 [to be included when Compliance Certificate is delivered as of the end of any fiscal year] 

 SCHEDULE 6 
  
 Financial Covenants 
  
 1. Minimum EBITDA. 
  
 Borrower’s and its Subsidiaries’ EBITDA, measured on a month-end basis, for the      month period ending
             ,              is $            ,
which amount [is/is not] greater than or equal to the amount set forth in Section 6.16(a)(i) of the Credit Agreement specified for such corresponding period. 
  
 2. Leverage Ratio. 
  
 Borrower’s and its Subsidiaries’ Leverage Ratio, as of the applicable 12 month period ending
            ,              is     :1.0, which [is/is not] less than or equal to
the amount set forth in Section 6.16(a)(ii) of the Credit Agreement specified for such corresponding period. 
  
 3. Capital Expenditures. 
  
 Borrower’s and its Subsidiaries Capital Expenditures from the beginning of Borrower’s most recent Fiscal Year to the applicable financial
covenant compliance date in such Fiscal Year is                     , which [is/is not] less than or equal to the amount set forth in
Section 6.16(b) of the Credit Agreement for the corresponding period. 

 Final Form 
  

EXHIBIT L-1 
  
 FORM OF LOAN LIMITER CERTIFICATE 
  
 [on Borrower’s letterhead] 
  
 Wells Fargo Foothill, Inc., as Agent 
 2450 Colorado Avenue, Suite 3000 West 
 Santa Monica, CA 90404 
 Attn: Business Finance Division Manager 
  

	 	Re:	Loan Limit Certificate dated                         

  
 Ladies and Gentlemen:

  
 Reference is made to that certain CREDIT AGREEMENT
(the “Credit Agreement”) dated as of October 4, 2005, by and among the lenders identified on the signature pages thereof (such lenders, together with their respective successors and permitted assigns, are referred to
hereinafter each individually as a “Lender” and collectively as the “Lenders”), WELLS FARGO FOOTHILL, INC., a California corporation, as the arranger and administrative agent for the Lenders
(“Agent”), SUMTOTAL SYSTEMS, INC., a Delaware corporation (“Borrower”). Capitalized terms used in this Loan Limiter Certificate have the meanings set forth in the Credit Agreement unless specifically defined
herein. 
  
 Pursuant to Schedule 5.3 of the Credit
Agreement, the undersigned, being an officer of the Borrower, hereby certifies that: 
  
 1. The consolidated and consolidating financial information of Borrower separately furnished to Agent for
[                        ] [describe the reporting periods] has been prepared in accordance with GAAP (except for
year-end adjustments and the lack of footnotes), is presented in a format showing Borrower’s Recurring Revenues for the relevant six month period, and fairly presents in all material respects the financial condition of Borrower and its
Subsidiaries. 
  
 2. Such officer has reviewed the terms of the
Credit Agreement and has made, or caused to be made under his/her supervision, a review in reasonable detail of the transactions and condition of Borrower and its Subsidiaries during the accounting periods covered by such financial statements.

  
 3. Such review has not disclosed the existence on and as of
the date hereof, and the undersigned does not have knowledge of the existence as of the date hereof, of any event or condition that constitutes a Default or Event of Default, except for such conditions or events listed on Schedule 1 attached
hereto, specifying the nature and period of existence thereof and what action Borrower and its Subsidiaries have taken, are taking, or propose to take with respect thereto. 
  
 4. The representations and warranties of Borrower and its Subsidiaries set forth in the Credit Agreement and the other Loan
Documents are true and correct in all material respects on and as of the date hereof (except to the extent they relate to a specified date), except as set forth on Schedule 2 attached hereto. 
  
 5. The sum of (a) Letter of Credit Usage (b) the aggregate
outstanding principal balance of the Advances, (c) the aggregate outstanding principal balance of the Term Loan and (d) all reserves established pursuant to Section 2.1(b) of the Credit Agreement [does/does not] exceed
the Loan Limit, as demonstrated on Schedule 3 hereof. 

 IN WITNESS WHEREOF, this Loan Limit Certificate is executed by the undersigned this
     day of                     ,         . 
  

			
	 SUMTOTAL SYSTEMS, INC.,
 a Delaware
corporation

		
	By:	 	  

	Name:	 	  

	Title:	 	  

 SCHEDULE 1 
  
 Default or Event of Default 

 SCHEDULE 2 
  
 Representations and Warranties 

 SCHEDULE 3 
  
 Loan Limit Calculation 
  

						
	 1.
	  	 Recurring Revenues:
  
 Recurring Revenues for the six consecutive months immediately prior to the date of this Loan Limit Certificate:
	  	$	            
			
	 2.
	  	 Loan Limit:
  
 1.75 times Item 1 during the period from the Closing Date through November 30, 2005
  
 1.50 times Item 1 during the period from December 1, 2005 through November 30, 2006
  
 1.00 times Item 1 during the period from December 1, 2006 through the Maturity
Date
	  	$	            

 Final Form 
  

EXHIBIT N-1 
  
 FORM OF LIBOR NOTICE 
  
 Wells Fargo Foothill, Inc., as Agent 
 under the below referenced Credit Agreement 
 2450 Colorado Avenue 
 Suite 3000 West 
 Santa Monica, California 90404 
  
 Ladies and Gentlemen: 
  
 Reference is made to that
certain Credit Agreement, dated as of October 4, 2005 (the “Credit Agreement”), by and among SUMTOTAL SYSTEMS, INC., a Delaware corporation (the “Borrower”), the lenders from time to time party thereto
(such lenders, together with their permitted assigns, are referred to hereinafter each individually as a “Lender” and collectively as the “Lenders”), and WELLS FARGO FOOTHILL, INC., as the arranger and
administrative agent for the Lenders (the “Agent”). Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the Credit Agreement. 
  
 This LIBOR Notice represents Borrower’s request to elect the LIBOR
Option with respect to [all or a portion of [outstanding Advances] [and] [or the Term Loan] bearing interest at a rate determined by reference to the Base Rate] [the continuation of an outstanding LIBOR Rate
Loan] in the amount of $             (the “LIBOR Rate Advance”)[, and is a written confirmation of the telephonic notice of such election given to
Agent]. 
  
 The LIBOR Rate Advance will have an Interest
Period of [1] [2] [3] [6] month[s] commencing on
                        . 
  
 This LIBOR Notice further confirms Borrower’s acceptance, for purposes of determining the rate of interest based on the LIBOR Rate under the Credit
Agreement, of the LIBOR Rate as determined pursuant to the Credit Agreement. 
  
 Borrower represents and warrants that (i) as of the date hereof, each representation or warranty contained in or pursuant to any Loan Document or any agreement, instrument, certificate, document or other writing
furnished at any time under or in connection with any Loan Document, and as of the effective date of any advance, continuation or conversion requested above, is true and correct in all material respects (except to the extent any representation or
warranty expressly related to an earlier date), (ii) each of the covenants and agreements contained in any Loan Document have been performed (to the extent required to be performed on or before the date hereof or each such effective date), and
(iii) no Default or Event of Default has occurred and is continuing on the date hereof, nor will any thereof occur after giving effect to the request above. 

 Wells Fargo Foothill, as Agent 
 Page 2 
  

			
	 Dated:
	 	  

	
	 SUMTOTAL SYSTEMS, INC.
 a Delaware
corporation, as Borrower

		
	 By
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

			
	Acknowledged by:
	
	 WELLS FARGO FOOTHILL, INC.,
 a
California corporation, as Agent

		
	By:	 	  

	Name:	 	  

	Title:	 	  

 Final Form 
  

EXHIBIT S-1 
 (Form of Solvency
Certificate) 
  

	To:	Wells Fargo Foothill, Inc., as Agent 

 2450 Colorado
Avenue, Suite 3000 West 
 Los Angeles, California 90404 
 Attn: Business Finance Division Manager 
  

	 	Re:	Solvency Certificate dated October 4, 2005 

  
 Ladies and Gentlemen: 
  
 Reference is made to that certain Credit Agreement, dated as of October 4, 2005 (the “Credit Agreement”), by and among SUMTOTAL
SYSTEMS, INC., a Delaware corporation (the “borrower”), the lenders that are signatory thereto (the “Lenders”), and WELLS FARGO FOOTHILL, INC., a California corporation, as the arranger and administrative
agent for the Lenders. Capitalized terms used in this Solvency Certificate have the meanings set forth in the Credit Agreement unless specifically defined herein. 
  
 Pursuant to Section 4.12 of the Credit Agreement, the undersigned hereby certifies that (i) he/she is the
duly elected and acting chief financial officer of Borrower and (ii) taking into account the transactions contemplated by the Loan Documents and the Acquisition Documents, Borrower and each of its Subsidiaries is Solvent as of the date hereof.

  
 IN WITNESS WHEREOF, this Solvency Certificate is executed by
the undersigned this 4th day of October, 2005. 
  

			
	 SUMTOTAL SYSTEMS, INC.,
 a Delaware
corporation

		
	By:	 	  

	Name:	 	Neil J. Laird
	Title:	 	Executive VP and Chief Financial Officer

  

 S-78 

 Schedule A-1 
  
 Agent’s Account 
  
 See Schedule A-1 to Disclosure Schedule. 

 Schedule C-1 
  
 Commitments 
  

										
	 Lender

	  	Revolver
Commitment

	  	Term Loan
Commitment

	  	Total Commitment

	 Wells Fargo Foothill, Inc.
	  	$	5,000,000	  	$	17,500,000	  	$	22,500,000
	 	  	
	
	  	
	
	  	
	

	 All Lenders
	  	$	5,000,000	  	$	17,500,000	  	$	22,500,000
	 	  	
	
	  	
	
	  	
	

 Schedule D-1 
  
 Designated Account 
  
 See Schedule D-1 to Disclosure Schedule 

 Schedule P-1 
  
 Permitted Liens 
  
 See Schedule P-1 of that certain Disclosure Schedule to Credit Agreement, dated as of October 4, 2005, by and among the Company, the lenders
signatory thereto (together with such other lenders as may from time to time become party thereto, the “Lenders”) and Wells Fargo Foothill, Inc., as the Arranger and Administrative Agent for the Lenders (the “Disclosure
Schedule”). 

 Schedule 1.1 
  
 As used in the Agreement, the following terms shall have the following definitions: 
  
 “Account” means an account (as that term is defined in the
Code). 
  
 “Account Debtor” means any Person who
is obligated on an Account, chattel paper, or a general intangible. 
  
 “ACH Transactions” means any cash management or related services (including the Automated Clearing House processing of electronic fund transfers through the direct Federal Reserve Fedline system) provided by a Bank Product
Provider for the account of Borrower or its Subsidiaries. 
  
 “Acquired Stock” has the meaning specified therefor in the recitals to the Agreement. 
  
 “Acquisition” has the meaning specified therefor in the recitals to the Agreement. 
  
 “Acquisition Agreement” has the meaning specified therefor
in the recitals to the Agreement. 
  
 “Acquisition
Documents” means the Acquisition Agreement and all other documents, instruments and agreements executed or entered into in connection with the Acquisition. 
  
 “Advances” has the meaning specified therefor in Section 2.1(a). 
  
 “Affiliate” means, as applied to any Person, any other
Person who controls, is controlled by, or is under common control with, such Person. For purposes of this definition, “control” means the possession, directly or indirectly through one or more intermediaries, of the power to direct the
management and policies of a Person, whether through the ownership of Stock, by contract, or otherwise; provided, however, that, for purposes of Section 6.13 of the Agreement: (a) any Person which owns directly or
indirectly 10% or more of the Stock having ordinary voting power for the election of directors or other members of the governing body of a Person or 10% or more of the partnership or other ownership interests of a Person (other than as a limited
partner of such Person) shall be deemed an Affiliate of such Person, (b) each director (or comparable manager) of a Person shall be deemed to be an Affiliate of such Person, and (c) each partnership or joint venture, other than a limited
partner, in which a Person is a partner or joint venturer shall be deemed an Affiliate of such Person. 
  
 “Agent” has the meaning specified therefor in the preamble to the Agreement. 
  
 “Agent-Related Persons” means Agent, together with its
Affiliates, officers, directors, employees, attorneys, and agents. 
  
 “Agent’s Account” means the Deposit Account of Agent identified on Schedule A-1. 
  
 “Agent’s Liens” means the Liens granted by Borrower or its Subsidiaries to Agent for the benefit of the Lender Group and the Bank
Product Providers under the Loan Documents. 
  
 “Agreement” means the Credit Agreement to which this Schedule 1.1 is attached. 
  
 “Assignee” has the meaning specified therefor in Section 13.1(a). 

 “Assignment and Acceptance” means an Assignment and Acceptance Agreement substantially
in the form of Exhibit A-1. 
  
 “Authorized
Person” means any officer or employee of Borrower. 
  
 “Availability” means, as of any date of determination, the amount that Borrower is entitled to borrow as Advances under the Agreement (after giving effect to all then outstanding Obligations (other than Bank Product
Obligations) and all sublimits and reserves then applicable hereunder). 
  
 “Bank Product” means any financial accommodation extended to Borrower or its Subsidiaries by a Bank Product Provider (other than pursuant to the Agreement) including: (a) credit cards, (b) credit card processing
services, (c) debit cards, (d) purchase cards, (e) ACH Transactions, (f) cash management, including controlled disbursement, accounts or services, or (g) transactions under Hedge Agreements. 
  
 “Bank Product Agreements” means those agreements entered
into from time to time by Borrower or its Subsidiaries with a Bank Product Provider in connection with the obtaining of any of the Bank Products. 
  
 “Bank Product Obligations” means all obligations, liabilities, contingent reimbursement obligations, fees, and expenses owing by Borrower
or its Subsidiaries to any Bank Product Provider pursuant to or evidenced by the Bank Product Agreements and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or
hereafter arising, and including all such amounts that Borrower or its Subsidiaries are obligated to reimburse to Agent or any member of the Lender Group as a result of Agent or such member of the Lender Group purchasing participations from, or
executing indemnities or reimbursement obligations to, a Bank Product Provider with respect to the Bank Products provided by such Bank Product Provider to Borrower or its Subsidiaries. 
  
 “Bank Product Provider” means Wells Fargo or any of its Affiliates. 
  
 “Bank Product Reserve” means, as of any date of
determination, the lesser of (a) $2,000,000, and (b) the amount of reserves that Agent has established (based upon the Bank Product Providers’ reasonable determination of the credit exposure of Borrower and its Subsidiaries in respect
of Bank Products) in respect of Bank Products then provided or outstanding. 
  
 “Bankruptcy Code” means title 11 of the United States Code or any similar legislation in a relevant jurisdiction. 
  
 “Base LIBOR Rate” means the rate per annum, determined by Agent in accordance with its customary
procedures, and utilizing such electronic or other quotation sources as it considers appropriate (rounded upwards, if necessary, to the next 1/100%), to be the rate at which Dollar deposits (for delivery on the first day of the requested Interest
Period) are offered to major banks in the London interbank market two (2) Business Days prior to the commencement of the requested Interest Period, for a term and in an amount comparable to the Interest Period and the amount of the LIBOR Rate
Loan requested (whether as an initial LIBOR Rate Loan or as a continuation of a LIBOR Rate Loan or as a conversion of a Base Rate Loan to a LIBOR Rate Loan) by Borrower in accordance with the Agreement, which determination shall be conclusive in the
absence of manifest error. 

 “Base Rate” means, the rate of interest announced, from time to time, within Wells Fargo
at its principal office in San Francisco as its “prime rate”, with the understanding that the “prime rate” is one of Wells Fargo’s base rates (not necessarily the lowest of such rates) and serves as the basis upon which
effective rates of interest are calculated for those loans making reference thereto and is evidenced by the recording thereof after its announcement in such internal publications as Wells Fargo may designate. 
  
 “Base Rate Loan” means the portion of the Advances or the
Term Loan that bears interest at a rate determined by reference to the Base Rate. 
  
 “Base Rate Margin” means 2.00 percentage points; provided, however, beginning the first day of the month following delivery to Agent of a certificate of a Responsible Officer of
Borrower, in form and substance satisfactory to Agent, evidencing that TTM EBITDA equals or exceeds $10,000,000 as of the end of the most recent month, then the Base Rate Margin shall be 1.25 percentage points as of such date (the “Margin
Reduction Date”); provided, further, if Borrower at any time restates or otherwise revises its financial statements (including as a result of an audit), such that TTM EBITDA would not have equaled or exceeded $10,000,000 as of
the end of the month specified in such certificate, interest due under the Agreement shall immediately be recalculated utilizing a Base Rate Margin of 2.00 percentage points rate effective the Margin Reduction Date until the delivery of a
certificate of a Responsible Officer of Borrower delivered to Agent, in form and substance satisfactory to Agent, as of the end of the most recent month evidencing that TTM EBITDA equals or exceeds $10,000,000. Any interest that is recalculated
shall be due and payable on demand. 
  
 “Benefit
Plan” means a “defined benefit plan” (as defined in Section 3(35) of ERISA) for which Borrower or any Subsidiary or ERISA Affiliate of Borrower has been an “employer” (as defined in Section 3(5) of ERISA)
within the past six years. 
  
 “Board of
Directors” means, with respect to any Person, the board of directors (or comparable managers) of such Person or any committee thereof duly authorized to act on behalf of the board of directors (or comparable managers). 
  
 “Borrower” has the meaning specified therefor in the
preamble to the Agreement. 
  
 “Borrowing” means
a borrowing hereunder consisting of Advances made on the same day by the Lenders (or Agent on behalf thereof), or by Swing Lender in the case of a Swing Loan, or by Agent in the case of an Protective Advance. 
  
 “Business Day” means any day that is not a Saturday, Sunday,
or other day on which banks are authorized or required to close in the state of California, except that, if a determination of a Business Day shall relate to a LIBOR Rate Loan, the term “Business Day” also shall exclude any day on which
banks are closed for dealings in Dollar deposits in the London interbank market. 
  
 “Capital Expenditures” means, with respect to any Person for any period, the aggregate of all expenditures by such Person and its Subsidiaries during such period that are capital expenditures as
determined in accordance with GAAP, whether such expenditures are paid in cash or financed. 
  
 “Capital Lease” means a lease that is required to be capitalized for financial reporting purposes in accordance with GAAP. 
  
 “Capitalized Lease Obligation” means that portion of the obligations under a Capital Lease that is required
to be capitalized in accordance with GAAP. 

 “Cash Equivalents” means (a) marketable direct obligations issued by, or
unconditionally guaranteed by, the United States or issued by any agency thereof and backed by the full faith and credit of the United States, in each case maturing within 1 year from the date of acquisition thereof, (b) marketable direct
obligations issued by any state of the United States or any political subdivision of any such state or any public instrumentality thereof maturing within 1 year from the date of acquisition thereof and, at the time of acquisition, having one of the
two highest ratings obtainable from either Standard & Poor’s Rating Group (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”), (c) commercial paper maturing no more than 270 days
from the date of creation thereof and, at the time of acquisition, having a rating of at least A-1 from S&P or at least P-1 from Moody’s, (d) certificates of deposit or bankers’ acceptances maturing within 1 year from the date of
acquisition thereof issued by any bank organized under the laws of the United States or any state thereof having at the date of acquisition thereof combined capital and surplus of not less than $250,000,000, (e) Deposit Accounts maintained with
(i) any bank that satisfies the criteria described in clause (d) above, or (ii) any other bank organized under the laws of the United States or any state thereof so long as the amount maintained with any such other bank is less
than or equal to $100,000 and is insured by the Federal Deposit Insurance Corporation, and (f) Investments in money market funds substantially all of whose assets are invested in the types of assets described in clauses (a) through
(e) above. 
  
 “Cash Management Account” has
the meaning specified therefor in Section 2.7(a). 
  
 “Cash Management Agreements” means those certain cash management agreements, in form and substance reasonably satisfactory to Agent, each of which is among Borrower or one of its Restricted Subsidiaries, Agent, and one of
the Cash Management Banks. 
  
 “Cash Management
Bank” has the meaning specified therefor in Section 2.7(a). 
  
 “Cash Sweep Instruction” has the meaning specified therefor in Section 2.7(b). 
  
 “Change of Control” means that (a) (i) any “person” or “group” (within the meaning of Sections 13(d) and
14(d) of the Exchange Act) becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 35%, or more, of the Stock of Borrower having the right to vote for the election of members of the Board of
Directors or (ii) a majority of the members of the Board of Directors do not constitute Continuing Directors or (b) Borrower fails to own and control, directly or indirectly, 100% of the Stock of each of its Subsidiaries. 
  
 “Closing Date” means the date of the making of the initial
Advance (or other extension of credit) hereunder or the date on which Agent sends Borrower a written notice that each of the conditions precedent set forth in Section 3.1 either have been satisfied or have been waived. 
  
 “Closing Date Required Availability” means that the sum of
(a) Excess Availability, plus (b) Qualified Cash exceeds $20,000,000. 
  
 “Code” means the New York Uniform Commercial Code. 
  
 “Collateral” means all assets and interests in assets and proceeds thereof now owned or hereafter acquired by Borrower or its
Subsidiaries in or upon which a Lien is granted under any of the Loan Documents. 
  
 “Collateral Access Agreement” means a landlord waiver, bailee letter, or acknowledgement agreement of any lessor, warehouseman, processor, consignee, or other Person in possession of, having a Lien
upon, or having rights or interests in Borrower’s or its Restricted Subsidiaries’ books and records, Equipment, or Inventory, in each case, in form and substance reasonably satisfactory to Agent. 

 “Collections” means all cash, checks, notes, instruments, and other items of
payment (including insurance proceeds, proceeds of cash sales, rental proceeds, and tax refunds). 
  
 “Commitment” means, with respect to each Lender, its Revolver Commitment, its Term Loan Commitment, or its Total Commitment, as the
context requires, and, with respect to all Lenders, their Revolver Commitments, their Term Loan Commitments, or their Total Commitments, as the context requires, in each case as such Dollar amounts are set forth beside such Lender’s name under
the applicable heading on Schedule C-1 or in the Assignment and Acceptance pursuant to which such Lender became a Lender hereunder, as such amounts may be reduced or increased from time to time pursuant to assignments made in accordance with
the provisions of Section 13.1. 
  
 “Compliance Certificate” means a certificate substantially in the form of Exhibit C-1 delivered by a Responsible Officer of Borrower to Agent. 
  
 “Continuing Director” means (a) any member of the Board of Directors who was a director (or comparable
manager) of Borrower on the Closing Date, and (b) any individual who becomes a member of the Board of Directors after the Closing Date if such individual was appointed or nominated for election to the Board of Directors by a majority of the
Continuing Directors, but excluding any such individual originally proposed for election in opposition to the Board of Directors in office at the Closing Date in an actual or threatened election contest relating to the election of the directors (or
comparable managers) of Borrower and whose initial assumption of office resulted from such contest or the settlement thereof. 
  
 “Control Agreement” means a control agreement (or equivalent in the case of any Securities Account or Deposit Account outside of the
United States), in form and substance reasonably satisfactory to Agent, executed and delivered by Borrower or one of its Restricted Subsidiaries, Agent, and the applicable securities intermediary (with respect to a Securities Account) or bank (with
respect to a Deposit Account). 
  
 “Controlled Foreign
Corporation” means a “controlled foreign corporation” as defined in the IRC. 
  
 “Copyright Security Agreement” has the meaning specified therefor in the Security Agreement. 
  
 “Daily Balance” means, as of any date of determination and
with respect to any Obligation, the amount of such Obligation owed at the end of such day. 
  
 “Default” means an event, condition, or default that, with the giving of notice, the passage of time, or both, would be an Event of Default. 
  
 “Defaulting Lender” means any Lender that fails to make any
Advance (or other extension of credit) that it is required to make hereunder on the date that it is required to do so hereunder. 
  
 “Defaulting Lender Rate” means (a) for the first 3 days from and after the date the relevant payment is due, the Base Rate, and
(b) thereafter, the interest rate then applicable to Advances that are Base Rate Loans (inclusive of the Base Rate Margin applicable thereto). 

 “Deposit Account” means any deposit account (as that term is defined in the Code).

  
 “Designated Account” means the Deposit
Account of Borrower identified on Schedule D-1. 
  
 “Designated Account Bank” has the meaning specified therefor in Schedule D-1. 
  
 “Dollars” or “$” means United States dollars. 
  
 “EBITDA” means, with respect to any fiscal period, Borrower’s and its Subsidiaries’ consolidated
net earnings (or loss), minus extraordinary gains and interest income, plus interest expense, up to $600,000 in respect of charges arising from the abandonment of a lease in the United Kingdom taken no later than June 2006, income taxes, non-cash
extraordinary losses and depreciation and amortization for such period, in each case, as determined in accordance with GAAP. 
  
 “Eligible Transferee” means (a) a commercial bank organized under the laws of the United States, or any state thereof, and having
total assets in excess of $250,000,000, (b) a commercial bank organized under the laws of any other country which is a member of the Organization for Economic Cooperation and Development or a political subdivision of any such country and which
has total assets in excess of $250,000,000, provided that such bank is acting through a branch or agency located in the United States, (c) a finance company, insurance company, or other financial institution or fund that is engaged in making,
purchasing, or otherwise investing in commercial loans in the ordinary course of its business and having (together with its Affiliates) total assets in excess of $250,000,000, (d) any Lender or Affiliate (other than individuals) of a Lender,
(e) so long as no Event of Default has occurred and is continuing, any other Person approved by Agent and Borrower (which approval of Borrower shall not be unreasonably withheld, delayed, or conditioned), and (f) during the continuation of
an Event of Default, any other Person approved by Agent. 
  
 “Environmental Actions” means any complaint, summons, citation, notice, directive, order, claim, litigation, investigation, judicial or administrative proceeding, judgment, letter, or other communication from any
Governmental Authority, or any third party involving violations of Environmental Laws or releases of Hazardous Materials from (a) any assets, properties, or businesses of Borrower, its Subsidiaries, or any of their predecessors in interest,
(b) from adjoining properties or businesses, or (c) from or onto any facilities which received Hazardous Materials generated by Borrower, its Subsidiaries, or any of their predecessors in interest. 
  
 “Environmental Law” means any applicable federal, state,
provincial, foreign or local statute, law, rule, regulation, ordinance, code, binding and enforceable guideline, binding and enforceable written policy, or rule of common law now or hereafter in effect and in each case as amended, or any judicial or
administrative interpretation thereof, including any judicial or administrative order, consent decree or judgment, in each case, to the extent binding on Borrower or its Subsidiaries, relating to the environment, the effect of the environment on
employee health, or Hazardous Materials, in each case as amended from time to time. 
  
 “Environmental Liabilities” means all liabilities, monetary obligations, Remedial Actions losses, damages, punitive damages, consequential damages, treble damages, costs and expenses (including all
reasonable fees, disbursements and expenses of counsel, experts, or consultants, and costs of investigation and feasibility studies), fines, penalties, sanctions, and interest incurred as a result of any claim or demand, by any Governmental
Authority or any third party, and which relate to any Environmental Action. 

 “Environmental Lien” means any Lien in favor of any Governmental Authority for
Environmental Liabilities. 
  
 “Equipment” means
equipment (as that term is defined in the Code). 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974. 
  
 “ERISA Affiliate” means each business or entity which is, or within the last six years was, a member of a “controlled group of corporations”, under “common control” or an
“affiliated service group” with Borrower or any of its Subsidiaries within the meaning of Section 414(b), (c) or (m) of the IRC, required to be aggregated with Borrower or any of its Subsidiaries under Section 414(o) of
the IRC, or is, or within the last six years was, under “common control” with Borrower or any of its Subsidiaries, within the meaning of Section 4001(a)(14) of ERISA. 
  
 “ERISA Event” means (a) a reportable event as defined in Section 4043 of ERISA and the
regulations issued under such Section with respect to a Pension Plan, excluding, however, such events as to which the PBGC by regulation has waived the requirement of Section 4043(a) of ERISA that it be notified within 30 days of the occurrence
of such event; (b) the applicability of the requirements of Section 4043(b) of ERISA with respect to a contributing sponsor, as defined in Section 4001(a)(13) of ERISA, to any Pension Plan where an event described in paragraph (9),
(10), (11), (12) or (13) of Section 4043(c) of ERISA is reasonably expected to occur with respect to such plan within the following 30 days; (c) a withdrawal by Borrower, any of its Subsidiaries, or any ERISA Affiliate from a
Pension Plan or the termination of any Pension Plan resulting in liability under Sections 4063 or 4064 of ERISA; (d) the withdrawal of Borrower, any of its Subsidiaries, or ERISA Affiliate in a complete or partial withdrawal (within the
meaning of Section 4203 and 4205 of ERISA) from any Multiemployer Plan if there is any potential liability therefor, or the receipt by Borrower, any of its Subsidiaries, or ERISA Affiliate of notice from any Multiemployer Plan that it is in
reorganization or insolvency pursuant to Section 4241 or 4245 of ERISA; (e) the filing of a notice of intent to terminate a Pension Plan pursuant to Section 4041(c) of ERISA or a Multiemployer Plan pursuant to Section 4041A of
ERISA, the treatment of a plan amendment as a termination under Section 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (f) the imposition of liability on Borrower,
any of its Subsidiaries, or any ERISA Affiliate pursuant to Sections 4062(e) or 4069 of ERISA or by reason of the application of Section 4212(c) of ERISA; (g) the failure by Borrower, any of its Subsidiaries, or any ERISA Affiliate to make
any required contribution to a Pension Plan (or the failure to make a required contribution in any material respect with respect to any Plan that is not a Pension Plan or a Multiemployer Plan), or the failure to meet the minimum funding standard of
Section 412 of the IRC with respect to any Pension Plan (whether or not waived in accordance with Section 412(d) of the IRC) or the failure to make by its due date a required installment under Section 412(m) of the IRC with respect to
any Pension Plan or the failure to make any required contribution to a Multiemployer Plan; (h) an event or condition which might reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Pension Plan or Multiemployer Plan; (i) the imposition of any material liability under Title I or Title IV of ERISA, other than PBGC premiums due but not delinquent under Section 4007 of
ERISA, upon Borrower, any of its Subsidiaries or any ERISA Affiliate; (j) an application for a funding waiver under Section 303 of ERISA or an extension of any amortization period pursuant to Section 412 of the IRC with respect to any
Pension Plan; (k) the occurrence of a non-exempt prohibited transaction under Sections 406 or 407 of ERISA for which Borrower, or any its Subsidiaries, may be directly or indirectly liable and which is reasonably expected to result in a
material liability to Borrower or any of its Subsidiaries; (l) a material violation of the applicable requirements of Section 404 or 405 of ERISA or the exclusive benefit rule under Section 401(a) of the IRC by any fiduciary or
disqualified person for which Borrower, any of its Subsidiaries or any ERISA Affiliate may be directly or indirectly liable; (m) the occurrence of an act 

 or omission which could give rise to the imposition on Borrower, any of its Subsidiaries, or any ERISA Affiliate of
material fines, material penalties, material taxes or material related charges under Chapter 43 of the IRC or under Sections 409, 502(c), (i) or (1) or 4071 of ERISA; (n) the assertion of a material claim (other than routine claims
for benefits) against any Plan or the assets thereof, or against Borrower or any of its Subsidiaries in connection with any such Plan; (o) receipt from the Internal Revenue Service of notice of the failure of any Qualified Plan to qualify under
Section 401(a) of the IRC, or the failure of any trust forming part of any Qualified Plan to fail to qualify for exemption from taxation under Section 501(a) of the IRC; (p) the imposition of any lien on any of the rights, properties
or assets of Borrower, any of its Subsidiaries, or any ERISA Affiliate, in either case pursuant to Section 302(f) of ERISA or Title IV of ERISA or to the penalty or excise tax provisions of the IRC or to Section 401(a)(29) or 412(n) of the
IRC; or (q) the establishment or amendment by Borrower or any of its Subsidiaries, of any “welfare plan”, as such term is defined in Section 3(1) of ERISA, that provides post-employment health benefits in a manner that would
materially increase the liability of Borrower or any of its Subsidiaries. 
  
 “Event of Default” has the meaning specified therefor in Section 7. 
  
 “Excess Availability” means, as of any date of determination, the amount equal to Availability minus the aggregate amount, if any,
of all trade payables of Borrower and its Subsidiaries aged in excess of historical levels with respect thereto and all book overdrafts of Borrower and its Subsidiaries in excess of historical practices with respect thereto, in each case as
determined by Agent in its Permitted Discretion. 
  
 “Excess Cash Flow” means, as of the date of determination and for a specified period, (a) EBITDA for such period minus (b) Fixed Charges and Capital Expenditures for such period. 
  
 “Exchange Act” means the Securities Exchange Act of 1934.

  
 “Existing Lender” means Legent Corporation.

  
 “Extraordinary Receipts” means any cash
amount received by Borrower or any of its Subsidiaries that is not received in the ordinary course of business and which is received as a result of, without duplication, (i) foreign, United States, state or local tax refunds (other than
(A) tax refunds that are required to be paid to Seller pursuant to the Acquisition Documents and (B) amounts automatically applied to future tax payments or representing overpayments of estimated taxes for the current or immediately
preceding tax year), (ii) pension plan reversions, (iii) proceeds of insurance, (iv) condemnation awards (and payments in lieu thereof), (v) any purchase price adjustment received in connection with any purchase agreement,
(vi) judgments, proceeds of settlements or other consideration of any kind in connection with any cause of action (other than with respect to causes of action that result in the receipt of any tax refund that is required to be paid to Seller
pursuant to any of the Acquisition Documents), (vii) indemnity payments or (viii) any sale of assets. 
  
 “Fee Letter” means that certain fee letter between Borrower and Agent, in form and substance satisfactory to Agent. 
  
 “Fixed Charges” means with respect to Borrower and its
Subsidiaries for any period, the sum, without duplication, of (a) Interest Expense, (b) principal payments required to be paid during such period in respect of Indebtedness (for the purpose of such determination, Term Loan amortization
payments made on the first Business Day of any fiscal quarter are deemed to have been made on the last Business Day of the immediately prior fiscal quarter), and (c) all federal, state, local and foreign income taxes accrued for such period.

 “Funding Date” means the date on which a Borrowing occurs. 
  
 “Funding Losses” has the meaning specified therefor in
Section 2.13(b)(ii). 
  
 “GAAP” means
generally accepted accounting principles as in effect from time to time in the United States, consistently applied. 
  
 “Governing Documents” means, with respect to any Person, the certificate or articles of incorporation, by-laws, or other organizational
documents of such Person. 
  
 “Governmental
Authority” means any federal, state, local, or other governmental or administrative body, instrumentality, board, department, or agency or any court, tribunal, administrative hearing body, arbitration panel, commission, or other similar
dispute-resolving panel or body. 
  
 “Guarantors”
means (a) each other Restricted Subsidiary (other than an Inactive Domestic Subsidiary) and (b) any other Person at any time providing a guaranty in favor of Agent, for the benefit of the Lender Group and the Bank Product Providers, with
respect to the Obligations or whose assets are otherwise pledged as security for the repayment of the Obligations; and “Guarantor” means any one of them. 
  
 “Guaranty” means (a) that certain general continuing guaranty executed and delivered by each
Restricted Subsidiary (other than an Inactive Domestic Subsidiary) in favor of Agent, for the benefit of the Lender Group and the Bank Product Providers, in form and substance reasonably satisfactory to Agent and (b) any other guaranty at any
time executed and delivered by any other Guarantor in favor of Agent, for the benefit of the Lender Group and the Bank Product Providers, whether by execution of a joinder to the guaranty described in the foregoing clause (a) or otherwise.

  
 “Hazardous Materials” means
(a) substances that are defined or listed in, or otherwise classified pursuant to, Environmental Laws as “hazardous substances,” “hazardous materials,” “hazardous wastes,” “toxic substances,” or any other
formulation intended to define, list, or classify substances by reason of deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, reproductive toxicity, or “EP toxicity”, (b) oil, petroleum, or petroleum
derived substances, natural gas, natural gas liquids, synthetic gas, drilling fluids, produced waters, and other wastes associated with the exploration, development, or production of crude oil, natural gas, or geothermal resources, (c) any
flammable substances or explosives or any radioactive materials, and (d) asbestos in any form or electrical equipment that contains any oil or dielectric fluid containing levels of polychlorinated biphenyls in excess of 50 parts per million,
and any other substance, the storage, manufacture, disposal, treatment, generation, use transportation, remediation, release into or concentration in the environment of which is prohibited, controlled, regulated or licensed by any Governmental
Authority under any Environmental Law. 
  
 “Hedge
Agreement” means any and all agreements or documents now existing or hereafter entered into by Borrower or any of its Subsidiaries that provide for an interest rate, credit, commodity or equity swap, cap, floor, collar, forward foreign
exchange transaction, currency swap, cross currency rate swap, currency option, or any combination of, or option with respect to, these or similar transactions, for the purpose of hedging Borrower’s or any of its Subsidiaries’ exposure to
fluctuations in interest or exchange rates, loan, credit exchange, security, or currency valuations or commodity prices. 
  
 “Holdout Lender” has the meaning specified therefor in Section 14.2(a). 
  
 “Immaterial Foreign Subsidiary” means a Subsidiary that
meets both of the following requirements: (a) such Subsidiary has aggregate consolidated assets, based on the most recent valuation 

 thereof, of less than two percent (2%) of the book value of the aggregate consolidated assets of Borrower and its
Subsidiaries; and (b) such Subsidiary has aggregate consolidated revenues for the most recently completed twelve fiscal months of such Subsidiary, of less than five percent (5%) of the aggregate consolidated revenues of Borrower and its
Subsidiaries, for such period. 
  
 “Inactive Domestic
Subsidiaries” has the meaning specified therefor in Section 4.8(e). 
  
 “Indebtedness” means (a) all obligations for borrowed money, (b) all obligations evidenced by bonds, debentures, notes, or other similar instruments and all reimbursement or other
obligations in respect of letters of credit, bankers acceptances, hedges or derivatives, (c) all obligations as a lessee under Capital Leases, (d) all obligations or liabilities of others secured by a Lien on any asset of a Person or its
Subsidiaries, irrespective of whether such obligation or liability is assumed, (e) all obligations to pay the deferred purchase price of assets (other than trade payables incurred in the ordinary course of business), (f) all obligations
due and owing under Hedge Agreements, and (g) any obligation guaranteeing or intended to guarantee (whether directly or indirectly guaranteed, endorsed, co-made, discounted, or sold with recourse) any obligation of any other Person that
constitutes Indebtedness under any of clauses (a) through (f) above. 
  
 “Indemnified Liabilities” has the meaning specified therefor in Section 10.3. 
  
 “Indemnified Person” has the meaning specified therefor in Section 10.3. 
  
 “Insolvency Proceeding” means any proceeding commenced by or
against any Person under any provision of the Bankruptcy Code or under any other state or federal bankruptcy or insolvency law, assignments for the benefit of creditors, formal or informal moratoria, compositions, extensions generally with
creditors, or proceedings seeking reorganization, arrangement, or other similar relief and including the appointment of a trustee, receiver, administrative receiver, administrator or similar Person. 
  
 “Intercompany Subordination Agreement” means a subordination
agreement executed and delivered by Borrower, each of its Subsidiaries that is not an Immaterial Foreign Subsidiary or an Inactive Domestic Subsidiary, and Agent, the form and substance of which is reasonably satisfactory to Agent. 
  
 “Interest Expense” means, for any period and with respect to
a specified Person, the aggregate of the interest expense of Borrower and its Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP. 
  
 “Interest Period” means, with respect to each LIBOR Rate Loan, a period commencing on the date of the
making of such LIBOR Rate Loan (or the continuation of a LIBOR Rate Loan or the conversion of a Base Rate Loan to a LIBOR Rate Loan) and ending 1, 2, or 3 or 6 months thereafter; provided, however, that (a) if any Interest Period
would end on a day that is not a Business Day, such Interest Period shall be extended (subject to clauses (c)-(e) below) to the next succeeding Business Day, (b) interest shall accrue at the applicable rate based upon the LIBOR Rate from
and including the first day of each Interest Period to, but excluding, the day on which any Interest Period expires, (c) any Interest Period that would end on a day that is not a Business Day shall be extended to the next succeeding Business
Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day, (d) with respect to an Interest Period that begins on the last Business Day of a calendar month (or
on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period), the Interest Period shall end on the last Business Day of the calendar month that is 1, 2, 3 or 6 months after the date on which
the Interest Period began, as applicable, and (e) Borrower may not elect an Interest Period which will end after the Maturity Date. 

 “Inventory” means inventory (as that term is defined in the Code). 
  
 “Investment” means, with respect to any Person, any
investment by such Person in any other Person (including Affiliates) in the form of loans, guarantees, advances, or capital contributions (excluding (a) commission, travel, and similar advances to officers and employees of such Person made in
the ordinary course of business, and (b) bona fide Accounts arising in the ordinary course of business consistent with past practice), purchases or other acquisitions of Indebtedness, Stock, or all or substantially all of the assets of
such other Person (or of any division or business line of such other Person), and any other items that are or would be classified as investments on a balance sheet prepared in accordance with GAAP. 
  
 “IRC” means the Internal Revenue Code of 1986. 

 
 “Issuing Lender” means WFF or any other Lender that, at
the request of Borrower and with the consent of Agent, agrees, in such Lender’s sole discretion, to become an Issuing Lender for the purpose of issuing L/Cs or L/C Undertakings pursuant to Section 2.12. 
  
 “L/C” has the meaning specified therefor in
Section 2.12(a). 
  
 “L/C
Disbursement” means a payment made by the Issuing Lender pursuant to a Letter of Credit. 
  
 “L/C Undertaking” has the meaning specified therefor in Section 2.12(a). 
  
 “Lender” and “Lenders” have the respective
meanings specified therefor in the preamble to the Agreement, and shall include any other Person made a party to the Agreement in accordance with the provisions of Section 13.1. 
  
 “Lender Group” means, individually and collectively, each of
the Lenders (including the Issuing Lender) and Agent. 
  
 “Lender Group Expenses” means all (a) costs or expenses (including taxes, and insurance premiums) required to be paid by Borrower or its Subsidiaries under any of the Loan Documents that are paid, advanced, or incurred
by the Lender Group, (b) fees or charges paid or incurred by Agent in connection with the Lender Group’s transactions with Borrower or its Subsidiaries, including, fees or charges for photocopying, notarization, couriers and messengers,
telecommunication, public record searches (including tax lien, litigation, and UCC searches and including searches with the patent and trademark office, the copyright office, or the department of motor vehicles), filing, recording, publication,
appraisal (including periodic collateral appraisals or business valuations to the extent of the fees and charges (and up to the amount of any limitation) contained in the Agreement or the Fee Letter), real estate surveys, real estate title policies
and endorsements, and environmental audits, (c) costs and expenses incurred by Agent in the disbursement of funds to Borrower or other members of the Lender Group (by wire transfer or otherwise), (d) charges paid or incurred by Agent
resulting from the dishonor of checks, (e) reasonable costs and expenses paid or incurred by the Lender Group to correct any default or enforce any provision of the Loan Documents, or in gaining possession of, maintaining, handling, preserving,
storing, shipping, selling, preparing for sale, or advertising to sell the Collateral, or any portion thereof, irrespective of whether a sale is consummated, (f) audit fees and expenses of Agent related to any inspections or audits to the
extent of the fees and charges (and up to the amount of any limitation) 

 contained in the Agreement or the Fee Letter, (g) reasonable costs and expenses of third party claims or any other
suit paid or incurred by the Lender Group in enforcing or defending the Loan Documents or in connection with the transactions contemplated by the Loan Documents or the Lender Group’s relationship with Borrower or any its Subsidiaries,
(h) Agent’s and each Lender’s reasonable costs and expenses (including reasonable attorneys’ fees) incurred in advising, structuring, drafting, reviewing, administering, syndicating, or amending the Loan Documents, and
(i) Agent’s and each Lender’s reasonable costs and expenses (including attorneys, accountants, consultants, and other advisors fees and expenses) incurred in terminating, enforcing (including attorneys, accountants, consultants, and
other advisors fees and expenses incurred in connection with a “workout,” a “restructuring,” or an Insolvency Proceeding concerning Borrower or its Subsidiaries or in exercising rights or remedies under the Loan Documents), or
defending the Loan Documents, irrespective of whether suit is brought, or in taking any Remedial Action concerning the Collateral. 
  
 “Lender-Related Person” means, with respect to any Lender, such Lender, together with such Lender’s Affiliates, officers, directors,
employees, attorneys, and agents. 
  
 “Letter of
Credit” means an L/C or an L/C Undertaking, as the context requires. 
  
 “Letter of Credit Usage” means, as of any date of determination, the aggregate undrawn amount of all outstanding Letters of Credit. 
  
 “Leverage Ratio” means, as of any date of determination, the ratio of (a) the consolidated
Indebtedness of Borrower and its Subsidiaries outstanding as of such date to (b) TTM EBITDA. Notwithstanding the foregoing, for purposes of calculating the Leverage Ratio for the fiscal quarters ending December 31,
2005, March 31, 2006 and June 30, 2006, EBITDA shall be annualized during such fiscal quarters such that (a) for the calculation of the Leverage Ratio as of December 31, 2005, EBITDA for the fiscal quarter then ending will
be multiplied by four (4), (b) for the calculation of the Leverage Ratio as of March 31, 2006, EBITDA for the two fiscal quarter period then ending will be multiplied by two (2) and (c) for the calculation of the Leverage
Ratio as of June 30, 2006, EBITDA for the three fiscal quarter period then ending will be multiplied by one and one-third (1 1/3). For the purpose of calculation of the Leverage Ratio, Term Loan amortization payments made on the first Business Day of any fiscal quarter are deemed to have been made on the last Business Day of the immediately prior
fiscal quarter. 
  
 “LIBOR Deadline” has
the meaning specified therefor in Section 2.13(b)(i). 
  
 “LIBOR Notice” means a written notice in the form of Exhibit N-1. 
  
 “LIBOR Option” has the meaning specified therefor in Section 2.13(a). 
  
 “LIBOR Rate” means, for each Interest Period for each LIBOR
Rate Loan, the rate per annum determined by Agent (rounded upwards, if necessary, to the next 1/100%) by dividing (a) the Base LIBOR Rate for such Interest Period, by (b) 100% minus the Reserve Percentage. The LIBOR Rate
shall be adjusted on and as of the effective day of any change in the Reserve Percentage. 
  
 “LIBOR Rate Loan” means each portion of an Advance or the Term Loan that bears interest at a rate determined by reference to the LIBOR Rate. 
  
 “LIBOR Rate Margin” means 3.50 percentage points;
provided, however, beginning the first day of the month following delivery to Agent of a certificate of a Responsible Officer of Borrower, in form and substance satisfactory to Agent, evidencing that TTM EBITDA equals or exceeds
$10,000,000 as of the end of the most recent month, then the LIBOR Rate Margin shall be 2.75 

 percentage points as of such Margin Reduction Date; provided, further, if Borrower at any time restates or
otherwise revises its financial statements (including as a result of an audit), such that TTM EBITDA would not have equaled or exceeded $10,000,000 as of the end of the month specified in such certificate, interest due under the Agreement shall
immediately be recalculated utilizing a LIBOR Rate Margin of 3.50 percentage points rate effective the Margin Reduction Date until the delivery of a certificate of a Responsible Officer of Borrower delivered to Agent, in form and substance
satisfactory to Agent, as of the end of the most recent month evidencing that TTM EBITDA equals or exceeds $10,000,000. Any interest that is recalculated shall be due and payable on demand. 
  
 “Lien” means any interest in an asset securing an obligation
owed to, or a claim by, any Person other than the owner of the asset, irrespective of whether (a) such interest is based on the common law, statute, or contract, (b) such interest is recorded or perfected, and (c) such interest is
contingent upon the occurrence of some future event or events or the existence of some future circumstance or circumstances. Without limiting the generality of the foregoing, the term “Lien” includes the lien or security interest arising
from a mortgage, deed of trust, encumbrance, notice of Lien, levy or assessment, pledge, hypothecation, assignment, deposit arrangement, security agreement, conditional sale or trust receipt, or from a lease, consignment, or bailment for security
purposes and also includes reservations, exceptions, encroachments, easements, rights-of-way, covenants, conditions, restrictions, leases, and other title exceptions and encumbrances affecting Real Property. 
  
 “Loan Account” has the meaning specified therefor in
Section 2.10. 
  
 “Loan Documents”
means the Agreement, the Bank Product Agreements, the Cash Management Agreements, the Control Agreements, the Fee Letter, the Guaranty, the Intercompany Subordination Agreement, the Letters of Credit, the Mortgages, the Security Agreement, the
Solvency Certificate, the Perfection Certificate, the Copyright Security Agreement, the Patent Security Agreement, the Trademark Security Agreement, the Source Code Escrow Agreement, any note or notes executed by Borrower in connection with the
Agreement and payable to a member of the Lender Group, and any other agreement entered into, now or in the future, by Borrower and any member of the Lender Group in connection with the Agreement (including any agreement entered into pursuant to
Section 5.16). 
  
 “Loan Limit”
means, as of any date of determination, (i) from the Closing Date until November 30, 2005, an amount equal to 1.75 times Borrower’s Recurring Revenues for the six-month period described in the most recent Loan Limiter Certificate
delivered under the Agreement, (ii) from December 1, 2005 until November 30, 2006, an amount equal to 1.50 times Recurring Revenues for the six-month period described in the most recent Loan Limiter Certificate delivered under the
Agreement, and (iii) from December 1, 2006 until the Maturity Date, an amount equal to 1.00 times Recurring Revenues for the six-month period described in the most recent Loan Limiter Certificate delivered under the Agreement. 

 
 “Loan Limiter Certificate” means a certificate in the
form of Exhibit L-1. 
  
 “Margin Reduction
Date” has the meaning specified therefor in the definition of Base Rate Margin. 
  
 “Material Adverse Change” means (a) a material adverse change in the business, prospects, operations, results of operations, assets, liabilities or condition (financial or otherwise) of Borrower
and its Subsidiaries, taken as a whole, (b) a material impairment of Borrower’s and its Subsidiaries’ ability to perform their obligations under the Loan Documents to which they are parties or of the Lender Group’s ability to
enforce the Obligations or realize upon the Collateral, or (c) a material impairment of the enforceability or priority of the Agent’s Liens with respect to the Collateral as a result of an action or failure to act on the part of Borrower
or its Subsidiaries. 

 “Material Contracts” means (a) the Acquisition Documents and (b) any contract
or agreement to which Borrower or any of its Subsidiaries is a party, whether entered into as of the Closing Date or after the Closing Date, if the breach of any such contract or agreement or the failure of any such contract or agreement to be in
full force and effect could be reasonably expected to result in a Material Adverse Change. 
  
 “Maturity Date” has the meaning specified therefor in Section 3.4. 
  
 “Maximum Revolver Amount” means $5,000,000. 
  
 “Minimum Unrestricted Subsidiary Pledge Requirement” means the pledge of 65% of the voting capital stock of such of the Borrower’s
Unrestricted Subsidiaries (including Immaterial Foreign Subsidiaries) that will ensure that the following two conditions are met: (i) the aggregate consolidated assets, based on the most recent valuations thereof, of all Unrestricted
Subsidiaries whose voting capital stock is pledged hereunder, plus the aggregate consolidated assets, based on the most recent valuations thereof, of the Borrower and all Restricted Subsidiaries (but excluding the consolidated assets of the
Unrestricted Subsidiaries), shall equal or exceed 90% of the consolidated assets, based on the most recent valuations thereof, of the Borrower and its Subsidiaries, and (ii) the aggregate consolidated revenues for the most recently completed
twelve fiscal months of all Unrestricted Subsidiaries whose voting capital stock is pledged hereunder, plus the aggregate consolidated revenues for the most recently completed twelve fiscal months of the Borrower and all Restricted
Subsidiaries (but excluding the consolidated revenues of the Unrestricted Subsidiaries), shall equal or exceed 90% of the consolidated revenues for the most recently completed twelve fiscal months of the Borrower and its Subsidiaries. 
  
 “Mortgages” means, individually and collectively, one or
more mortgages, deeds of trust, or deeds to secure debt, executed and delivered by Borrower or its Restricted Subsidiaries in favor of Agent, in form and substance reasonably satisfactory to Agent, that encumber the Real Property Collateral.

  
 “Multiemployer Plan” means a
“multiemployer plan” (within the meaning of Section 3(37) of ERISA) to which Borrower, any of its Subsidiaries, or any ERISA Affiliate makes, is making, is obligated, or within the last six years has been obligated, to make
contributions. 
  
 “Net Cash Proceeds” means
(a) with respect to the issuance or incurrence of any Indebtedness by any Person or any of its Subsidiaries, or the sale or issuance by any Person or any of its Subsidiaries of any shares of its Stock, the aggregate amount of cash or Cash
Equivalents received (directly or indirectly) from time to time (whether as initial consideration or through the payment or disposition of deferred consideration) by or on behalf of such Person or such Subsidiary in connection therewith, after
deducting therefrom only (i) costs and expenses related thereto incurred by such Person or such Subsidiary in connection therewith (including, legal, accounting and investment banking fees, and underwriting discounts and commissions),
(ii) transfer taxes paid or payable by such Person or such Subsidiary in connection therewith and (iii) net income taxes to be paid in connection therewith (after taking into account any tax credits or deductions and any tax sharing
arrangements), and (b) with respect to any Extraordinary Receipts received by any Person or any of its Subsidiaries, the aggregate amount of cash or Cash Equivalents received (directly or indirectly) from time to time by or on behalf of such
Person or such Subsidiary in connection therewith, after deducting therefrom only (i) reasonable costs and expenses related to the collection thereof incurred by such Person or such Subsidiary, (ii) net income taxes to be paid in
connection therewith (after taking into account any tax credits or deductions and any 

 tax sharing arrangements) and (iii) the amount required to satisfy any Permitted Liens attaching to such
Extraordinary Receipts to the extent such Permitted Liens are senior to Agent’s Lien and the satisfaction of such Permitted Liens is required in connection with the receipt of such Extraordinary Receipts and such Permitted Liens are actually
satisfied; in the case of each of clauses (a) and (b), to the extent, but only to the extent, that the amounts so deducted are (x) actually paid to a Person that, except in the case of reasonable out-of-pocket expenses, is not an Affiliate
of such Person or any of its Subsidiaries and (y) properly attributable to such transaction. 
  
 “Obligations” means (a) all loans (including the Term Loan), Advances, debts, principal, interest (including any interest that
accrues after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), contingent reimbursement obligations with respect to outstanding Letters of
Credit, premiums, liabilities (including all amounts charged to Borrower’s Loan Account pursuant hereto), obligations (including indemnification obligations), fees (including the fees provided for in the Fee Letter), charges, costs, and Lender
Group Expenses (including any fees or expenses that accrue after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), owing by Borrower to the
Lender Group pursuant to or evidenced by the Loan Documents and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, and (b) all Bank
Product Obligations. Any reference in the Agreement or in the Loan Documents to the Obligations shall include all or any portion thereof and any extensions, modifications, renewals, or alterations thereof, both prior and subsequent to any Insolvency
Proceeding. 
  
 “Originating Lender” has the
meaning specified therefor in Section 13.1(e). 
  
 “Overadvance” has the meaning specified therefor in Section 2.5. 
  
 “Participant” has the meaning specified therefor in Section 13.1(e). 
  
 “Patent Security Agreement” has the meaning specified
therefor in the Security Agreement. 
  
 “Pathlore” has the meaning specified therefor in the recitals to the Agreement. 
  
 “Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism
(USA PATRIOT ACT) Act of 2001. 
  
 “PBGC” means
the Pension Benefit Guaranty Corporation or any entity succeeding to any or all of its functions under ERISA. 
  
 “Pension Plan” means an employee benefit plan (as defined in Section 3(3) of ERISA) other than a Multiemployer Plan (a) that is
or has within the last six years maintained or sponsored by Borrower, any of its Subsidiaries, or any ERISA Affiliate or to which Borrower, any of its Subsidiaries, or any ERISA Affiliate has within the last six years made, or was obligated to make,
contributions, and (b) that is or was subject to Section 412 of the IRC, Section 302 of ERISA or Title IV of ERISA. 
  
 “Perfection Certificate” means, collectively, the representations and warranties of officers form submitted by Agent to Borrower and
Pathlore with the Borrower and Pathlore’s completed responses to the inquiries set forth therein, the form and substance of such responses to be reasonably satisfactory to Agent. 

 “Permitted Discretion” means a determination made in the exercise of reasonable (from
the perspective of a secured asset-based lender) business judgment. 
  
 “Permitted Dispositions” means (a) sales or other dispositions of Equipment that is substantially worn, damaged, redundant or obsolete in the ordinary course of business, (b) sales of Inventory to buyers in the
ordinary course of business, (c) the use or transfer of money or Cash Equivalents or other Permitted Investments in a manner that is not otherwise prohibited by the terms of the Agreement or the other Loan Documents, (d) the licensing, on
a non-exclusive basis, of patents, trademarks, copyrights, and other intellectual property rights in the ordinary course of business, (e) dispositions of assets from Borrower to a Restricted Subsidiary, (f) dispositions of assets from a
Restricted Subsidiary to Borrower or to another Restricted Subsidiary, (g) dispositions of Immaterial Foreign Subsidiaries, and (h) dispositions of assets from one Unrestricted Subsidiary to another Unrestricted Subsidiary, Borrower or a
Restricted Subsidiary. 
  
 “Permitted
Investments” means (a) Investments in cash and Cash Equivalents, (b) Investments in negotiable instruments for collection, (c) advances made in connection with purchases of goods or services in the ordinary course of
business, (d) Investments received in settlement of amounts due to Borrower or any of its Subsidiaries effected in the ordinary course of business or owing to Borrower or any of its Subsidiaries as a result of Insolvency Proceedings involving
an Account Debtor or upon the foreclosure or enforcement of any Lien in favor of Borrower or its Subsidiaries, (e) Investments existing as of the Closing Date, (f) Investments by Borrower in any Restricted Subsidiary, (g) Investments
by any Unrestricted Subsidiary in another Unrestricted Subsidiary, any Restricted Subsidiary or Borrower, and (h) so long as immediately prior to and after giving effect to any Investments permitted under this clause (h) no Default or
Event of Default shall have occurred and be continuing, (i) Investments by Borrower in SumTotal Systems Canada, Ltd. not to exceed $250,000 per year and (ii) Investments in the Borrower’s other Unrestricted Subsidiaries
(A) (exclusive of Investments permitted by sub-clause (B) below) not to exceed $500,000 per year, and (B) transfers of funds in the ordinary course of business in respect of employee costs, overhead, capital expenditures and other
operating expenses. 
  
 “Permitted Liens” means
(a) Liens held by Agent to secure the Obligations, (b) Liens for unpaid taxes, assessments, or other governmental charges or levies that either (i) are not yet delinquent, or (ii) do not have priority over the Agent’s Liens
and the underlying taxes, assessments, or charges or levies are the subject of Permitted Protests, (c) judgment Liens that do not constitute an Event of Default under Section 7.7 of the Agreement, (d) Liens set forth on
Schedule P-1, (e) the interests of lessors under operating leases, (f) purchase money Liens or the interests of lessors under Capital Leases to the extent that such Liens or interests secure Permitted Purchase Money Indebtedness and
so long as such Lien attaches only to the asset purchased or acquired and the proceeds thereof, (g) Liens arising by operation of law in favor of warehousemen, landlords, carriers, mechanics, materialmen, laborers, or suppliers, incurred in the
ordinary course of business and not in connection with the borrowing of money, and which Liens either (i) are for sums not yet delinquent, or (ii) are the subject of Permitted Protests, (h) Liens on amounts deposited in connection
with obtaining worker’s compensation or other unemployment insurance, (i) Liens or deposits to secure performance of bids, tenders, or leases incurred in the ordinary course of business and not in connection with the borrowing of money,
(j) Liens granted as security for surety or appeal bonds in connection with obtaining such bonds in the ordinary course of business, and (k) with respect to any Real Property, easements, rights of way, and zoning restrictions that do not
materially interfere with or impair the use or operation thereof. 
  
 “Permitted Protest” means the right of Borrower or any of its Subsidiaries to protest any Lien (other than any Lien that secures the Obligations), taxes (other than payroll taxes or taxes that are the subject of a United
States federal tax lien), or rental payment, provided that (a) a reserve with respect to such obligation is established on Borrower’s or its Subsidiaries’ books and records in such amount as is 

 required under GAAP, (b) any such protest is instituted promptly and prosecuted diligently by Borrower or its
Subsidiary, as applicable, in good faith, and (c) Agent is satisfied that, with respect to any such protest, the aggregate amount of which is greater than $100,000 there will be no impairment of the enforceability, validity, or priority of any
of the Agent’s Liens. 
  
 “Permitted Purchase Money
Indebtedness” means, as of any date of determination, Purchase Money Indebtedness of Borrower or any of its Restricted Subsidiaries incurred after the Closing Date in an aggregate principal amount outstanding at any one time not in excess
of $5,000,000. 
  
 “Person” means natural
persons, corporations, limited liability companies, limited partnerships, general partnerships, limited liability partnerships, joint ventures, trusts, land trusts, business trusts, or other organizations, irrespective of whether they are legal
entities, and governments and agencies and political subdivisions thereof. 
  
 “Plan” means (a) an employee benefit plan (as defined in Section 3(3) of ERISA) other than a Multiemployer Plan which is or was within the last six years maintained or sponsored by Borrower
or any of its Subsidiaries or to which Borrower or any of its Subsidiaries has within the last six years made, or was obligated to make, contributions, (b) a Pension Plan, or (c) a Qualified Plan. 
  
 “Projections” means Borrower’s and its
Subsidiaries’ consolidated forecasted (a) balance sheets, (b) profit and loss statements, and (c) cash flow statements, all prepared on a basis consistent with their historical financial statements, together with appropriate
supporting details and a statement of underlying assumptions. 
  
 “Pro Rata Share” means, as of any date of determination: 
  
 (a) with respect to a Lender’s obligation to make Advances and right to receive payments of principal, interest, fees, costs, and expenses with respect thereto, (i) prior to the Revolver Commitments being
terminated or reduced to zero, the percentage obtained by dividing (y) such Lender’s Revolver Commitment, by (z) the aggregate Revolver Commitments of all Lenders, and (ii) from and after the time that the Revolver Commitments
have been terminated or reduced to zero, the percentage obtained by dividing (y) the aggregate outstanding principal amount of such Lender’s Advances by (z) the aggregate outstanding principal amount of all Advances, 
  
 (b) with respect to a Lender’s obligation to participate in Letters of
Credit, to reimburse the Issuing Lender, and right to receive payments of fees with respect thereto, (i) prior to the Revolver Commitments being terminated or reduced to zero, the percentage obtained by dividing (y) such Lender’s
Revolver Commitment, by (z) the aggregate Revolver Commitments of all Lenders, and (ii) from and after the time that the Revolver Commitments have been terminated or reduced to zero, the percentage obtained by dividing (y) the
aggregate outstanding principal amount of such Lender’s Advances by (z) the aggregate outstanding principal amount of all Advances, 
  
 (c) with respect to a Lender’s obligation to make the Term Loan and right to receive payments of interest, fees, and principal with respect thereto,
(i) prior to the making of the Term Loan, the percentage obtained by dividing (y) such Lender’s Term Loan Commitment, by (z) the aggregate amount of all Lenders’ Term Loan Commitments, and (ii) from and after the making
of the Term Loan, the percentage obtained by dividing (y) the principal amount of such Lender’s portion of the Term Loan by (z) the principal amount of the Term Loan, and 
  
 (d) with respect to all other matters as to a particular Lender (including the indemnification obligations arising under
Section 15.7), the percentage obtained by dividing (i) such 

 Lender’s Revolver Commitment plus the outstanding principal amount of such Lender’s portion of the Term Loan,
by (ii) the aggregate amount of Revolver Commitments of all Lenders plus the outstanding principal amount of the Term Loan; provided, however, that in the event the Revolver Commitments have been terminated or reduced to zero, Pro
Rata Share under this clause shall be the percentage obtained by dividing (A) the outstanding principal amount of such Lender’s Advances plus such Lender’s ratable portion of the Risk Participation Liability with respect to
outstanding Letters of Credit plus the outstanding principal amount of such Lender’s portion of the Term Loan, by (B) the outstanding principal amount of all Advances plus the aggregate amount of the Risk Participation Liability with
respect to outstanding Letters of Credit plus the outstanding principal amount of the Term Loan. 
  
 “Protective Advances” has the meaning specified therefor in Section 2.3(d)(i). 
  
 “Purchase Money Indebtedness” means Indebtedness (other than
the Obligations, but including Capitalized Lease Obligations), incurred at the time of, or within 30 days after, the acquisition of any fixed assets for the purpose of financing all or any part of the acquisition cost thereof. 
  
 “Qualified Cash” means, as of any date of determination, the
amount of unrestricted cash and Cash Equivalents of Borrower and its Restricted Subsidiaries that is in Deposit Accounts or in Securities Accounts, or any combination thereof, and which such Deposit Account or Securities Account is the subject of a
Control Agreement and is maintained by a branch office of the bank or securities intermediary located within the United States. 
  
 “Qualified Plan” means an employee benefit plan (as defined in Section 3(3) of ERISA) other than a Multiemployer Plan (a) that
is or was within the last six years maintained or sponsored by Borrower, any of its Subsidiaries or any ERISA Affiliate or to which Borrower, any of its Subsidiaries or any ERISA Affiliate has within the last six years made or was obligated to make,
contributions, and (b) that is intended to be tax-qualified under Section 401(a) of the IRC. 
  
 “Real Property” means any estates or interests in real property now owned or hereafter acquired by Borrower or its Subsidiaries and the
improvements thereto. 
  
 “Real Property
Collateral” means any Real Property hereafter acquired by Borrower or its Restricted Subsidiaries. 
  
 “Record” means information that is inscribed on a tangible medium or which is stored in an electronic or other medium and is retrievable
in perceivable form. 
  
 “Recurring Revenue”
means, as of any date of determination and for a specified period, the total revenues of Borrower for such period that are derived from maintenance, subscription, ASP, hosting and support of licensed products, as reflected on Borrower’s
financial statements in accordance with its historical practices and calculated in accordance with GAAP (before giving effect to any deferred recurring revenue write-off related to acquisitions). 
  
 “Remedial Action” means all actions taken to (a) clean
up, remove, remediate, contain, treat, monitor, assess, evaluate, or in any way address Hazardous Materials in the indoor or outdoor environment, (b) prevent or minimize a release or threatened release of Hazardous Materials so they do not
migrate or endanger or threaten to endanger public health or welfare or the indoor or outdoor environment, (c) restore or reclaim natural resources or the environment, (d) perform any pre-remedial studies, investigations, or post-remedial
operation and maintenance activities, or (e) conduct any other actions with respect to Hazardous Materials authorized by Environmental Laws. 

 “Replacement Lender” has the meaning specified therefor in Section 14.2(a).

  
 “Report” has the meaning specified therefor
in Section 15.17. 
  
 “Required
Availability” means that the sum of (a) Excess Availability, plus (b) Qualified Cash exceeds $5,000,000. 
  
 “Required Library” has the meaning specified therefor in the Security Agreement. 
  
 “Required Lenders” means, at any time, Lenders whose
aggregate Pro Rata Shares (calculated under clause (d) of the definition of Pro Rata Shares) equal or exceed 67%; provided, however, if there are two or more Lenders as of any such date of determination, then “Required
Lenders” must also be comprised of at least two Lenders. 
  
 “Reserve Percentage” means, on any day, for any Lender, the maximum percentage prescribed by the Board of Governors of the Federal Reserve System (or any successor Governmental Authority) for determining the reserve
requirements (including any basic, supplemental, marginal, or emergency reserves) that are in effect on such date with respect to Eurocurrency funding (currently referred to as “Eurocurrency liabilities”) of that Lender, but so long as
such Lender is not required or directed under applicable regulations to maintain such reserves, the Reserve Percentage shall be zero. 
  
 “Responsible Officer” means the chief executive officer, president, chief financial officer, treasurer or assistant treasurer of a
Person. 
  
 “Restricted Subsidiary” means any
Subsidiary of the Borrower that is (a) a Guarantor or (b) organized under the laws of the United States or a political subdivision thereof. 
  
 “Revolver Commitment” means, with respect to each Lender, its Revolver Commitment, and, with respect to all Lenders, their Revolver
Commitments, in each case as such Dollar amounts are set forth beside such Lender’s name under the applicable heading on Schedule C-1 or in the Assignment and Acceptance pursuant to which such Lender became a Lender hereunder, as such
amounts may be reduced or increased from time to time pursuant to assignments made in accordance with the provisions of Section 13.1. 
  
 “Revolver Usage” means, as of any date of determination, the sum of (a) the amount of outstanding Advances, plus (b) the
amount of the Letter of Credit Usage. 
  
 “Risk
Participation Liability” means, as to each Letter of Credit, all reimbursement obligations of Borrower to the Issuing Lender with respect to an L/C Undertaking, consisting of (a) the amount available to be drawn or which may become
available to be drawn, (b) all amounts that have been paid by the Issuing Lender to the Underlying Issuer to the extent not reimbursed by Borrower, whether by the making of an Advance or otherwise, and (c) all accrued and unpaid interest,
fees, and expenses payable with respect thereto. 
  
 “S&P” has the meaning specified therefor in the definition of Cash Equivalents. 
  
 “SEC” means the United States Securities and Exchange Commission and any successor thereto. 
  
 “Secretary” means, with respect to any Person, the duly
elected or appointed secretary or other officer of such Person charged with keeping the corporate records of such Person. 

 “Securities Account” means a securities account (as that term is defined in the Code).

  
 “Security Agreement” means a security
agreement, in form and substance reasonably satisfactory to Agent, executed and delivered by Borrower and any Guarantor to Agent together with all supplements and joinders executed in connection therewith. 
  
 “Seller” has the meaning specified therefor in the recitals
to the Agreement. 
  
 “Settlement” has the
meaning specified therefor in Section 2.3(e)(i). 
  
 “Settlement Date” has the meaning specified therefor in Section 2.3(e)(i). 
  
 “Solvent” means, with respect to any Person on a particular date, that, at fair valuations, the sum of such Person’s assets is
greater than all of such Person’s debts. 
  
 “Source
Code Escrow Agreement” means that certain Source Code Escrow Agreement, in form and substance reasonably satisfactory to Agent, among Agent, Borrower and an escrow agent reasonably satisfactory to Agent. 
  
 “Stock” means all shares, options, warrants, interests,
participations, or other equivalents (regardless of how designated) of or in a Person, whether voting or nonvoting, including common stock, preferred stock, or any other “equity security” (as such term is defined in Rule 3a11-1 of the
General Rules and Regulations promulgated by the SEC under the Exchange Act). 
  
 “Solvency Certificate” means a certificate substantially in the form of Exhibit S-1 delivered by the chief financial officer of Borrower to Agent. 
  
 “Subsidiary” of a Person means a corporation, partnership,
limited liability company, or other entity in which that Person directly or indirectly owns or controls the shares of Stock having ordinary voting power to elect a majority of the board of directors (or appoint other comparable managers) of such
corporation, partnership, limited liability company, or other entity. 
  
 “Swing Lender” means WFF or any other Lender that, at the request of Borrower and with the consent of Agent agrees, in such Lender’s sole discretion, to become the Swing Lender under Section 2.3(b).

  
 “Swing Loan” has the meaning specified
therefor in Section 2.3(b)(i). 
  
 “Taxes” has the meaning specified therefor in Section 15.11. 
  
 “Term Loan” has the meaning specified therefor in Section 2.2. 
  
 “Term Loan Amount” means $17,500,000. 
  
 “Term Loan Commitment” means, with respect to each Lender, its Term Loan Commitment, and, with respect to
all Lenders, their Term Loan Commitments, in each case as such Dollar amounts are set forth beside such Lender’s name under the applicable heading on Schedule C-1 or in the Assignment and Acceptance pursuant to which such Lender became a
Lender hereunder, as such amounts may be reduced or increased from time to time pursuant to assignments made in accordance with the provisions of Section 13.1. 

 “Total Commitment” means, with respect to each Lender, its Total Commitment, and, with
respect to all Lenders, their Total Commitments, in each case as such Dollar amounts are set forth beside such Lender’s name under the applicable heading on Schedule C-1 attached hereto or on the signature page of the Assignment and
Acceptance pursuant to which such Lender became a Lender hereunder, as such amounts may be reduced or increased from time to time pursuant to assignments made in accordance with the provisions of Section 13.1. 
  
 “Trademark Security Agreement” has the meaning specified
therefor in the Security Agreement. 
  
 “Triggering Event
Date” means any date upon which the sum of (i) Qualified Cash plus (ii) Excess Availability shall be less than $15,000,000. 
  
 “TTM EBITDA” means, as of any date of determination, EBITDA, as calculated on the last day of the most recently completed calendar month
(which may be such date of determination) on a trailing twelve (12) month basis. 
  
 “Underlying Issuer” means a third Person which is the beneficiary of an L/C Undertaking and which has issued a letter of credit at the request of the Issuing Lender for the benefit of Borrower.

  
 “Underlying Letter of Credit” means a letter
of credit that has been issued by an Underlying Issuer. 
  
 “United States” means the United States of America. 
  
 “Unrestricted Subsidiary” means any Subsidiary of Borrower that is not a Restricted Subsidiary. 
  
 “Voidable Transfer” has the meaning specified therefor in Section 16.6. 
  
 “Wells Fargo” means Wells Fargo Bank, National Association,
a national banking association. 
  
 “WFF” means
Wells Fargo Foothill, Inc., a California corporation. 

 Schedule 2.7(a) 
  
 Cash Management Banks 
  

	1.	Wells Fargo Bank, National Association 

  

	2.	Please refer to Schedule 4.17 

 Schedule 3.1 
  
 The obligation of each Lender to make its initial extension of credit provided for in the Agreement is subject to the
fulfillment, to the satisfaction of each Lender (the making of such initial extension of credit by any Lender being conclusively deemed to be its satisfaction or waiver of the following), of each of the following conditions precedent: 
  
 (a) the Closing Date shall occur on or before October 31, 2005;

  
 (b) Agent shall have received a letter duly executed by
Borrower and each Guarantor authorizing Agent to file appropriate financing statements in such office or offices as may be necessary or, in the opinion of Agent, desirable to perfect the security interests to be created by the Loan Documents;

  
 (c) Agent shall have received (i) evidence that
appropriate financing statements have been duly filed in such office or offices as may be necessary or, in the opinion of Agent, desirable to perfect the Agent’s Liens in and to the Collateral and (ii) evidence that no Liens, other than
Permitted Liens or Liens which will be released as of the Closing Date, exist with respect to any Borrower or any of its Subsidiaries or their respective assets in favor of any Person other than Agent; 
  
 (d) Agent shall have received each of the following documents, in form and
substance satisfactory to Agent in its sole discretion, duly executed, and each such document shall be in full force and effect: 
  
 (i) a funds flow agreement executed and delivered by Borrower, the Lenders and Agent regarding the extensions of credit to be made on the Closing Date,
the form and substance of which is satisfactory to Agent in its sole discretion, 
  
 (ii) the Cash Management Agreements, 
  
 (iii) the Control Agreements, 
  
 (iv) the Security
Agreement, together with (A) all certificates representing the shares of Stock pledged thereunder along with Stock powers with respect thereto endorsed in blank and (B) all promisorry notes pledged thereunder with allonges endorsing such
notes to Agent. 
  
 (v) the Fee Letter, 
  
 (vi) the Guaranty, 
  
 (vii) the Intercompany Subordination Agreement, 
  
 (viii) a letter, in form and substance satisfactory to Agent, from Legent
Corporation (“Existing Lender”) to Agent respecting the amount necessary to repay in full all of the obligations of Pathlore and its Subsidiaries owing to Existing Lender and obtain a release of all of the Liens existing in favor of
Existing Lender in and to the assets of Pathlore and its Subsidiaries, together with termination statements and other documentation evidencing the termination by Existing Lender of its Liens (and authorizing Agent to file the same ) in and to the
properties and assets of Pathlore and its Subsidiaries, 

 (ix) the Perfection Certificate, 
  
 (x) the Solvency Certificate, 
  
 (xi) the Copyright Security Agreement, 
  
 (xii) the Patent Security Agreement, and 
  
 (xiii) the Trademark Security Agreement; 
  
 (e) Agent shall have received a certificate from the Secretary of Borrower (i) attesting to the resolutions of Borrower’s Board of Directors
authorizing its execution, delivery, and performance of this Agreement, the other Loan Documents and the Acquisition Documents to which Borrower is a party, (ii) authorizing specific officers of Borrower to execute the same, and
(iii) attesting to the incumbency and signatures of such specific officers of Borrower; 
  
 (f) Agent shall have received copies of Borrower’s Governing Documents, as amended, modified, or supplemented to the Closing Date, certified by the Secretary of Borrower; 
  
 (g) Agent shall have received a certificate of status with respect to
Borrower, dated within a recent date prior to the Closing Date, such certificate to be issued by the appropriate officer of the jurisdiction of organization of Borrower, which certificate shall indicate that Borrower is in good standing in such
jurisdiction; 
  
 (h) Agent shall have received certificates of
status with respect to Borrower, each dated within 30 days of the Closing Date, such certificates to be issued by the appropriate officer of the jurisdictions (other than the jurisdiction of organization of Borrower) in which its failure to be duly
qualified or licensed would constitute a Material Adverse Change, which certificates shall indicate that Borrower is in good standing in such jurisdictions; 
  
 (i) Agent shall have received a certificate from the Secretary of each Guarantor (i) attesting to the resolutions of such Guarantor’s Board of
Directors authorizing its execution, delivery, and performance of the Loan Documents and the Acquisition Documents to which such Guarantor is a party, (ii) authorizing specific officers of such Guarantor to execute the same and
(iii) attesting to the incumbency and signatures of such specific officers of Guarantor; 
  
 (j) Agent shall have received copies of each Guarantor’s Governing Documents, as amended, modified, or supplemented to the Closing Date, certified by the Secretary of such Guarantor; 
  
 (k) Agent shall have received a certificate of status with respect to each
Guarantor, dated within a recent date prior to the Closing Date, such certificate to be issued by the appropriate officer of the jurisdiction of organization of such Guarantor, which certificate shall indicate that such Guarantor is in good standing
in such jurisdiction; 
  
 (l) Agent shall have received
certificates of status with respect to each Guarantor, each dated within 30 days of the Closing Date, such certificates to be issued by the appropriate officer of the jurisdictions (other than the jurisdiction of organization of such Guarantor) in
which its failure to be duly qualified or licensed would constitute a Material Adverse Change, which certificates shall indicate that such Guarantor is in good standing in such jurisdictions; 

 (m) Agent shall have received a certificate of insurance, together with the endorsements thereto, as are
required by Section 5.8, the form and substance of which shall be satisfactory to Agent in its sole discretion; 
  
 (n) Agent shall have received Collateral Access Agreements with respect to 110 110th Ave., N.E., Suite 700, Bellevue, WA 98004; 
  
 (o) Agent shall have received an opinion of counsel to Borrower and
Guarantors in form and substance satisfactory to Agent in its sole discretion; 
  
 (p) Borrower shall have the Closing Date Required Availability after giving effect to the initial extensions of credit hereunder and the payment of all fees and expenses required to be paid by Borrower on the Closing
Date under this Agreement, the other Loan Documents and the Acquisition Documents and Agent shall have received satisfactory evidence of the payment of such amounts; 
  
 (q) Agent shall have completed its business, legal, and collateral due diligence, including (i) a collateral audit and
review of Borrower’s and its Subsidiaries books and records and verification of Borrower’s representations and warranties to Lender Group, the results of which shall be satisfactory to Agent, (ii) an inspection of each of the
locations where Borrower’s and its Restricted Subsidiaries conduct business, the results of which shall be satisfactory to Agent in its sole discretion, (iii) a review of all Material Contracts, and (iv) a review of Borrower’s
business plan; 
  
 (r) Agent shall have received completed
reference checks with respect to Borrower’s senior management, and any required Patriot Act compliance, the results of which are satisfactory to Agent in its sole discretion; 
  
 (s) Agent shall have received a review of Borrower’s Recurring Revenues by a third party valuation firm acceptable to
Agent in its sole discretion and in form, scope and methodology acceptable to Agent, the results of which are satisfactory to Agent in its sole discretion; 
  
 (t) Agent shall have received from KPMG a due diligence report, the results of which are satisfactory to Agent in its sole discretion; 
  
 (u) Agent shall have received a set of Projections of Borrower for the 3 year
period following the Closing Date (on a year by year basis, and for the 1 year period following the Closing Date, on a quarter by quarter basis), in form and substance (including as to scope and underlying assumptions) satisfactory to Agent in its
sole discretion; 
  
 (v) Borrower shall have paid all Lender Group
Expenses incurred in connection with the transactions evidenced by this Agreement; 
  
 (w) No Material Adverse Change shall have occurred with respect to Borrower and its Subsidiaries since the delivery of the latest financial statements submitted to Agent on or prior to the Closing Date; 
  
 (x) Borrower’s capital structure as of the Closing Date shall be
materially consistent with the business plan provided to Agent as of the Closing Date; 
  
 (y) Agent shall have received copies of each Acquisition Document, together with a certificate of the Secretary of Borrower certifying that as of the Closing Date (i) each such document is a 

 
true, correct, and complete copy thereof, (ii) such documents have been entered into by Borrower in compliance with all Applicable Laws and all
necessary approvals and are in full force and effect, and (iii) there is no (A) litigation, investigation or proceeding (judicial or administrative) pending or, to the best knowledge of Borrower, threatened, against Borrower, or any of its
Subsidiaries by any Governmental Authority arising out of the transactions contemplated by or effected in connection with the Acquisition Documents or the Loan Documents, (B) injunction, writ or restraining order restraining or prohibiting the
transactions contemplated by the Acquisition Documents or the consummation of the financing arrangements contemplated under the Loan Documents, or (C) suit, action, investigation proceeding (judicial or administrative) or ERISA Event pending
or, to the best knowledge of Borrower, threatened against Borrower or any of its Subsidiaries which could reasonably be expected to cause a Material Adverse Change; 
  
 (z) Agent shall have received copies of each Material Contract, together with a certificate of the Secretary of Borrower
certifying each such document as being a true, correct, and complete copy thereof and the results of Agent’s and its counsel’s review thereof, and of the Borrower’s corporate structure upon consummation of the Acquisition, shall be
satisfactory to Agent in its sole discretion; 
  
 (aa) all
applicable waiting periods with respect to consummation of the Acquisition shall have expired and Borrower and each of its Subsidiaries shall have received all licenses, approvals or evidence of other actions required by any Governmental Authority
or other Person in connection with the execution and delivery by Borrower or its Subsidiaries of the Loan Documents, the Acquisition Documents and with the consummation of the transactions contemplated thereby; 
  
 (bb) in the reasonable opinion of Agent, (i) no law or regulation
restrains, prevents or imposes material adverse conditions upon any aspect of the Acquisition and (ii) no claim, action, suit, investigation, litigation or proceeding is pending or threatened in any court or before any Governmental Authority
which relates to the transactions contemplated hereby or by the Acquisition Documents or which may have a material adverse effect on the Acquisition or the ability of Borrower to perform the terms of the Loan Documents; 
  
 (cc) simultaneously with the extensions of the credit by the Lenders to
Borrower on the Closing Date, the parties to the Acquisition Documents shall have consummated all transactions contemplated thereby and furnished to Agent evidence thereof in form and substance satisfactory to Agent in its sole discretion; and

  
 (dd) all other documents and legal matters in connection with
the transactions contemplated by this Agreement shall have been delivered, executed, or recorded and shall be in form and substance satisfactory to Agent in its sole discretion. 

 Schedule 4.5 
  
 See Schedule 4.5 to Disclosure Schedule 

 Schedule 4.7(a) 
  
 Jurisdiction of Organization 
  

			
	Borrower:	 	Delaware
		
	DKSystems Incorporated:	 	Illinois

 Schedule 4.7(b) 
  
 Chief Executive Office 
  

			
	Borrower:	 	1808 N. Shoreline Blvd.
	 	 	Mountain View, CA 94043
		
	DKSystems Incorporated:	 	444 N. Michigan Avenue, Suite #3300
	 	 	Chicago, IL 60611

 Schedule 4.7(c) 
  
 Organizational Identification Number 
  

			
	Borrower:	 	3716692
		
	DKSystems Incorporated:	 	55406731

 Schedule 4.7(d) 
  
 Commercial Tort Claims 
  

			
	Borrower:	 	None
		
	DKSystems Incorporated:	 	None

 Schedule 4.8(b) 
  
 Capitalization of Borrower 
  
 As of the Closing Date 
  

							
	 Class of Stock

	  	             Authorized shares
of            
 capital Stock

	  	 Issued and outstanding
             shares of capital Stock            

	  	             Subscriptions,
options,            
 warrants, or calls
 (including conversion
 or exchange
rights), or
 obligations to
 repurchase or retire,
 shares of Capital Stock

	Common	  	 100,000,000 (par value
 of $0.001/share)
	  	 21,251,833
 (as of September 30, 2005)
	  	 See Table attached
 hereto as Annex 1

				
	Preferred	  	 5,000,000 (par value of
 $0.001/per share)
	  	None	  	None

 Annex 1 to Schedule 4.8(b) 
  
 See Schedule 4.8(b)-1 to Disclosure Schedule 

 Schedule 4.8(c) 
  
 Capitalization of Subsidiaries 
 (other than Inactive Subsidiaries and Immaterial Foreign Subsidiaries) 
  
 See Schedule 4.8(c)-1 to Disclosure Schedule 

 Schedule 4.10 
  
 Litigation 
  
 See Item 3, Part I of the Borrower’s Annual Report on Form 10-K for the fiscal year ended December 31, 2004 and filed with the SEC on August 1, 2005,
which Item 3 is incorporated herein by this reference. 

 Schedule 4.13(a) 
  
 ERISA Plans 
  
 1. SumTotal Systems, Inc. 401k Plan 
  
 2. Pathlore 401k Profit Sharing Plan (this Plan will survive the Acquisition but will be merged into the SumTotal 401k Plan, effective January 1, 2006) 

 Schedule 4.13(d) 
  
 ERISA Exceptions 
  
 Borrower has agreed to reimburse certain former Pathlore executives for COBRA premiums over varying periods of time incurred by such executives after the closing of the
Acquisition (for such executives that will not be employed by Borrower post-closing) or upon termination of such executives employment by Borrower (in the case of such executives that will continue to be employed by Borrower post-closing)

 Schedule 4.15 
  
 Intellectual Property 
  
 See Schedule 4.15 to Disclosure Schedule 

 Schedule 4.17 
  
 Deposit Accounts and Securities Accounts 
  
 See Schedule 4.17 to Disclosure Schedule 

 Schedule 4.19 
  
 Indebtedness 
  
 See Schedule 4.19 to Disclosure Schedule 

 Schedule 4.20 
  
 Material Contracts 
  
 See Exhibits 4.1-4.10 and 10.6-10.7 to the Borrower’s Annual Report on Form 10-K for the fiscal year ended December 31, 2004 and filed with the SEC on
August 1, 2005. In some instances, an Exhibit may reference a form of agreement or instrument, in which case each such agreement or instrument executed by the Borrower in such form constitutes a Material Contract. 
  
 Acquisition Documents 

 Schedule 5.2 
  
 Provide Agent (and if so requested by Agent, with copies for each Lender) with each of the documents set forth below at the
following times in form satisfactory to Agent: 
  

			
	 Monthly (not later than
 the 15th
day of each
 month)
	  	 (a) a sales journal, collection journal, and credit register since the last such schedule, a report regarding credit memoranda that have been issued
since the last such report
  
 (b) a detailed aging of Borrower’s
Accounts,
  
 (c) a “roll forward” of the Accounts from the prior month
with supporting details supplied from sales journals, debit memos, credit registers and any credit memos,
  
 (d) a report showing (i) all deferred revenues as of the end of the prior month with a reconciliation to Borrower’s balance sheet for the prior month, (ii) the portion of such deferred revenue that will be earned
during the next four fiscal quarters, (iii) the portion of such revenue that will be earned during the four fiscal quarters commencing one year from the date of such balance sheet, (iv) the portion of such revenue that will be earned on or after the
date two years following the date of such balance sheet, and (v) the portion of such non-current deferred revenue that has previously been paid in cash,
  
 (e) a reconciliation of Accounts, trade payable and Borrower’s general ledger accounts to its monthly financial statements including any book reserves related to
each category
  
 (f) a detailed report regarding royalty payables for Borrower and
its Subsidiaries,
  
 (g) a detailed report regarding deemed dividend tax
liability, if applicable, for Borrower and its Restricted Subsidiaries,
  
 (h)
proof of payment of all Taxes,
  
 (i) a detailed report regarding Borrower’s
and its Restricted Subsidiaries’ cash and Cash Equivalents, including an indication of which accounts constitute Qualified Cash, and
  
 (j) a summary aging, by vendor, of Borrower’s accounts payable, and any book overdraft.

		
	 Quarterly (not later
 than the 30th day of
 each month following
 a fiscal quarter)
	  	 (k) a report detailing maintenance contract and service contracts retention statistics for Borrower,
  
 (l) a detailed list of Borrower’s customers including contract expiration dates and
annualized Recurring Revenue contributions,
  
 (m) a complete inventory of the
Copyrights comprising the Required Library, as well as other Copyright, Patents and Trademarks that are registered or subject of pending applications for registration, which were acquired, generated or filed by Borrower or its Subsidiaries during
the prior quarter, and
  
 (n) a report regarding Borrower’s and its
Subsidiaries’ accrued, but unpaid, taxes.

			
	Upon request by Agent	  	 (o) notice of all claims, offsets, or disputes asserted by Account Debtors with respect to Borrower’s and its Subsidiaries’
Accounts,
  
 (p) copies of invoices, credit memos, remittance advices, deposit
slips, shipping and delivery documents in connection with Borrower’s and its Subsidiaries’ Accounts and copies of purchase orders and invoices for Inventory and Equipment acquired by Borrower or its Subsidiaries, and
  
 (q) such other reports as to the Collateral or the financial condition of Borrower and its
Subsidiaries, as Agent may reasonably request including period confirmation by Borrower that the Minimum Unrestricted Subsidiary Requirement is satisfied.

 Final Form 
  
 Schedule 5.3 
  
 Deliver to Agent, with copies to each Lender, each of the financial statements, reports, or other items set forth set forth below at the following times
in form satisfactory to Agent: 
  

			
	as soon as available, but in any event within 15 days after the end of each month during each of Borrower’s fiscal years	  	(a) a Loan Limiter Certificate.
		
	as soon as available, but in any event within 30 days (45 days in the case of a month that is the end of one of Borrower’s fiscal quarters) after the end of each
month during each of Borrower’s fiscal years	  	 (b) an unaudited consolidated and consolidating balance sheet, income statement, and statement of cash flow covering Borrower’s and its
Subsidiaries’ operations during such period (prepared in accordance with GAAP), and
  
 (c) a Compliance Certificate.

		
	as soon as available, but in any event within 90 days after the end of each of Borrower’s fiscal years	  	 (d) consolidated and consolidating financial statements of Borrower and its Subsidiaries for each such fiscal year, audited by independent certified
public accountants reasonably acceptable to Agent and certified, without any qualifications (including any (A) “going concern” or like qualification or exception, (B) qualification or exception as to the scope of such audit, or (C)
qualification which relates to the treatment or classification of any item and which, as a condition to the removal of such qualification, would require an adjustment to such item, the effect of which would be to cause any noncompliance with the
provisions of Section 6.16), by such accountants to have been prepared in accordance with GAAP (such audited financial statements to include a balance sheet, income statement, and statement of cash flow and, if prepared, such
accountants’ letter to management),
  
 (e) a Compliance Certificate,
and
  
 (f) a certificate of such accountants addressed to Agent stating that the
such accountants do not have knowledge of the existence of any Default or Event of Default.

		
	as soon as available, but in any event within 30 days prior to the start of each of Borrower’s fiscal years,	  	(g) copies of Borrower’s Projections, in form and substance (including as to scope and underlying assumptions) satisfactory to Agent, in its Permitted Discretion, for the forthcoming 3
years, year by year, and for the forthcoming fiscal year, month by month, certified by the chief financial officer of Borrower as being such officer’s good faith estimate of the financial performance of Borrower during the period covered
thereby.

			
	if and when filed (or provided) by Borrower,	  	 (h) Form 10-Q quarterly reports, Form 10-K annual reports, and Form 8-K current reports,
  
 (i) any other filings made by Borrower with the SEC, and
  
 (j) any other information that is provided by Borrower to its shareholders generally.

		
	promptly, but in any event within 5 days after Borrower has knowledge of any event or condition that constitutes a Default or an Event of Default,	  	(k) notice of such event or condition and a statement of the curative action that Borrower proposes to take with respect thereto.
		
	promptly after the commencement thereof, but in any event within 5 days after the service of process with respect thereto on Borrower or any of its Subsidiaries,	  	(l) notice of all actions, suits, or proceedings brought by or against Borrower or any of its Subsidiaries before any Governmental Authority which reasonably could be expected to result in a
Material Adverse Change.
		
	upon the request of Agent,	  	(m) any other information reasonably requested relating to the financial condition of Borrower or its Subsidiaries.

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