Document:

exv10w1

 

Exhibit 10.1

Execution
Copy

 

Registration Rights Agreement

Dated as of June 15, 2005

among

Service Corporation International

and

Merrill Lynch, Pierce, Fenner & Smith

Incorporated,

J.P. Morgan Securities Inc.

Banc of America Securities LLC

Lehman Brothers Inc.

and

Raymond James & Associates, Inc.

 

 

 

REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (the “Agreement”) is made and entered into this
15th day of June, 2005, among Service Corporation International, a Texas corporation (the
“Company”), and Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities
Inc., Banc of America Securities LLC, Lehman Brothers Inc. and Raymond James & Associates, Inc.
(collectively, the “Initial Purchasers”).

     This Agreement is made pursuant to the Purchase Agreement, dated June 10, 2005, among the
Company and the Initial Purchasers (the “Purchase Agreement”), which provides for the sale
by the Company to the Initial Purchasers of an aggregate of $300 million principal amount of the
Company’s 7% Senior Notes due 2017 (the “Securities”). In order to induce the Initial
Purchasers to enter into the Purchase Agreement, the Company has agreed to provide to the Initial
Purchasers and their direct and indirect transferees the registration rights set forth in this
Agreement. The execution of this Agreement is a condition to the closing under the Purchase
Agreement.

     In consideration of the foregoing, the parties hereto agree as follows:

     1. Definitions.

     As used in this Agreement, the following capitalized defined terms shall have the following
meanings:

     “1933 Act” shall mean the Securities Act of 1933, as amended from time to time.

     “1934
Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time.

     “Closing Date” shall mean the Closing Time as defined in the Purchase Agreement.

     “Company” shall have the meaning set forth in the preamble and shall also include the
Company’s successors.

     “Depositary” shall mean The Bank of New York, or any other depositary appointed by the
Company, provided, however, that such depositary must have an address in the Borough of Manhattan,
in the City of New York.

     “DTC” shall mean The Depository Trust Company.

     “Exchange Offer” shall mean the exchange offer by the Company of Exchange Securities
for Registrable Securities pursuant to Section 2.1 hereof.

     “Exchange Offer Registration” shall mean a registration under the 1933 Act effected
pursuant to Section 2.1 hereof.

 

 

     “Exchange Offer Registration Statement” shall mean an exchange offer registration
statement on Form S-4 (or, if applicable, on another appropriate form), and all amendments and
supplements to such registration statement, including the Prospectus contained therein, all
exhibits thereto and all documents incorporated by reference therein.

     “Exchange Period” shall have the meaning set forth in Section 2.1 hereof.

     “Exchange Securities” shall mean the 7% Senior Notes due 2017, issued by the Company
under the Indenture containing terms identical to the Securities in all material respects (except
for references to certain interest rate provisions, restrictions on transfers and restrictive
legends), to be offered to Holders of Securities in exchange for Registrable Securities pursuant to
the Exchange Offer.

     “Holder” shall mean an Initial Purchaser, for so long as it owns any Registrable
Securities, and each of its successors, assigns and direct and indirect transferees who become
registered owners of Registrable Securities under the Indenture and each Participating
Broker-Dealer that holds Exchange Securities for so long as such Participating Broker-Dealer is
required to deliver a prospectus meeting the requirements of the 1933 Act in connection with any
resale of such Exchange Securities.

     “Indenture” shall mean the Indenture relating to the Securities, dated as of February
1, 1993, between the Company and The Bank of New York, as trustee, as the same may be amended,
supplemented, waived or otherwise modified from time to time in accordance with the terms thereof.

     “Initial Purchaser” or “Initial Purchasers” shall have the meaning set forth
in the preamble.

     “Majority Holders” shall mean the Holders of a majority of the aggregate principal
amount of Outstanding (as defined in the Indenture) Registrable Securities; provided that whenever
the consent or approval of Holders of a specified percentage of Registrable Securities is required
hereunder, Registrable Securities held by the Company and other obligors on the Securities or any
Affiliate (as defined in the Indenture) of the Company shall be disregarded in determining whether
such consent or approval was given by the Holders of such required percentage amount.

     “Participating Broker-Dealer” shall mean any of Merrill Lynch, Pierce, Fenner & Smith
Incorporated, J.P. Morgan Securities Inc., Banc of America Securities LLC, Lehman Brothers Inc. and
Raymond James & Associates, Inc. and any other broker-dealer which makes a market in the Securities
and exchanges Registrable Securities in the Exchange Offer for Exchange Securities.

     “Person” shall mean an individual, partnership (general or limited), corporation,
limited liability company, trust or unincorporated organization, or a government or agency or
political subdivision thereof.

     “Private Exchange” shall have the meaning set forth in Section 2.1 hereof.

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     “Private Exchange Securities” shall have the meaning set forth in Section 2.1 hereof.

     “Prospectus” shall mean the prospectus included in a Registration Statement, including
any preliminary prospectus, and any such prospectus as amended or supplemented by any prospectus
supplement, including any such prospectus supplement with respect to the terms of the offering of
any portion of the Registrable Securities covered by a Shelf Registration Statement, and by all
other amendments and supplements to a prospectus, including post-effective amendments, and in each
case including all material incorporated by reference therein.

     “Purchase Agreement” shall have the meaning set forth in the preamble.

     “Registrable Securities” shall mean the Securities and, if issued, the Private
Exchange Securities; provided, however, that Securities and, if issued, the Private Exchange
Securities, shall cease to be Registrable Securities when (i) a Registration Statement with respect
to such Securities shall have been declared effective under the 1933 Act and such Securities shall
have been disposed of pursuant to such Registration Statement, (ii) such Securities have been sold
to the public pursuant to Rule 144 (or any similar provision then in force, but not Rule 144A)
under the 1933 Act, (iii) such Securities shall have ceased to be outstanding or (iv) the Exchange
Offer is consummated (except in the case of Securities purchased from the Company and continued to
be held by the Initial Purchasers).

     “Registration Expenses” shall mean any and all expenses incident to performance of or
compliance by the Company with this Agreement, including without limitation: (i) all SEC, stock
exchange or National Association of Securities Dealers, Inc. (the “NASD”) registration and
filing fees, including, if applicable, the fees and expenses of any “qualified independent
underwriter” (and its counsel) that is required to be retained by any holder of Registrable
Securities in accordance with the rules and regulations of the NASD, (ii) all fees and expenses
incurred in connection with compliance with state securities or blue sky laws and compliance with
the rules of the NASD (including reasonable fees and disbursements of counsel for any underwriters
or Holders in connection with blue sky qualification of any of the Exchange Securities or
Registrable Securities and any filings with the NASD), (iii) all expenses of any Persons in
preparing or assisting in preparing, word processing, printing and distributing any Registration
Statement, any Prospectus, any amendments or supplements thereto, any underwriting agreements,
securities sales agreements and other documents relating to the performance of and compliance with
this Agreement, (iv) all fees and expenses incurred in connection with the listing, if any, of any
of the Registrable Securities on any securities exchange or exchanges, (v) all rating agency fees,
(vi) the fees and disbursements of counsel for the Company and of the independent public
accountants of the Company, including the expenses of any special audits or “cold comfort” letters
required by or incident to such performance and compliance, (vii) the fees and expenses of the
Trustee, and any escrow agent or custodian, (viii) the reasonable fees and expenses of the Initial
Purchasers in connection with the Exchange Offer, including the reasonable fees and expenses of
counsel to the Initial Purchasers in connection therewith and (ix) any fees and disbursements of
the underwriters customarily required to be paid by issuers or sellers of securities and the fees
and expenses of any special experts retained by the Company in connection with any Registration
Statement, but excluding

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underwriting discounts and commissions and transfer taxes, if any, relating to the sale or
disposition of Registrable Securities by a Holder.

     “Registration Statement” shall mean any registration statement of the Company which
covers any of the Exchange Securities or Registrable Securities pursuant to the provisions of this
Agreement, and all amendments and supplements to any such Registration Statement, including
post-effective amendments, in each case including the Prospectus contained therein, all exhibits
thereto and all material incorporated by reference therein.

     “SEC” shall mean the Securities and Exchange Commission or any successor agency or
government body performing the functions currently performed by the United States Securities and
Exchange Commission.

     “Shelf Registration” shall mean a registration effected pursuant to Section 2.2
hereof.

     “Shelf Registration Statement” shall mean a “shelf” registration statement of the
Company pursuant to the provisions of Section 2.2 of this Agreement which covers all of the
Registrable Securities or all of the Private Exchange Securities on an appropriate form under Rule
415 under the 1933 Act, or any similar rule that may be adopted by the SEC, and all amendments and
supplements to such registration statement, including post-effective amendments, in each case
including the Prospectus contained therein, all exhibits thereto and all material incorporated by
reference therein.

     “Trustee” shall mean the trustee with respect to the Securities under the Indenture.

     2. Registration Under the 1933 Act.

          2.1 Exchange Offer. The Company shall, for the benefit of the Holders, at the
Company’s cost, (A) prepare and, as soon as practicable but not later than 90 days following the
Closing Date, file with the SEC an Exchange Offer Registration Statement on an appropriate form
under the 1933 Act with respect to a proposed Exchange Offer and the issuance and delivery to the
Holders, in exchange for the Registrable Securities (other than Private Exchange Securities), of a
like principal amount of Exchange Securities, (B) use its best efforts to cause the Exchange Offer
Registration Statement to be declared effective under the 1933 Act within 180 days of the Closing
Date, (C) use its best efforts to keep the Exchange Offer Registration Statement effective until
the closing of the Exchange Offer and (D) use its best efforts to cause the Exchange Offer to be
consummated not later than 210 days following the Closing Date. The Exchange Securities will be
issued under the Indenture. Upon the effectiveness of the Exchange Offer Registration Statement,
the Company shall promptly commence the Exchange Offer, it being the objective of such Exchange
Offer to enable each Holder eligible and electing to exchange Registrable Securities for Exchange
Securities (assuming that such Holder (a) is not an affiliate of the Company within the meaning of
Rule 405 under the 1933 Act, (b) is not a broker-dealer tendering Registrable Securities acquired
directly from the Company for its own account, (c) acquired the Exchange Securities in the ordinary
course of such Holder’s business and (d) has no arrangements or understandings with any Person to
participate in the Exchange Offer for the purpose of distributing the Exchange Securities) to
transfer such Exchange Securities from and

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after their receipt without any limitations or restrictions under the 1933 Act and under state
securities or blue sky laws.

     In connection with the Exchange Offer, the Company shall:

          (a) mail as promptly as practicable to each Holder a copy of the Prospectus forming part of
the Exchange Offer Registration Statement, together with an appropriate letter of transmittal and
related documents;

          (b) keep the Exchange Offer open for acceptance for a period of not less than 20 business days
after the date notice thereof is mailed to the Holders (or longer if required by applicable law)
(such period referred to herein as the “Exchange Period”);

          (c) utilize the services of the Depositary for the Exchange Offer;

          (d) permit Holders to withdraw tendered Registrable Securities at any time prior to 5:00 p.m.
(Eastern Time), on the last business day of the Exchange Period, by sending to the Depositary, a
telegram, telex, facsimile transmission or letter setting forth the name of such Holder, the
principal amount of Registrable Securities delivered for exchange, and a statement that such Holder
is withdrawing such Holder’s election to have such Securities exchanged;

          (e) notify each Holder that any Registrable Security not tendered will remain outstanding and
continue to accrue interest, but will not retain any rights under this Agreement (except in the
case of the Initial Purchasers and Participating Broker-Dealers as provided herein); and

          (f) otherwise comply in all respects with all applicable laws relating to the Exchange Offer.

     If, prior to consummation of the Exchange Offer, the Initial Purchasers hold any Securities
acquired by them and having the status of an unsold allotment in the initial distribution, the
Company upon the request of any Initial Purchaser shall, simultaneously with the delivery of the
Exchange Securities in the Exchange Offer, issue and deliver to such Initial Purchaser in exchange
(the “Private Exchange”) for the Securities held by such Initial Purchaser, a like
principal amount of debt securities of the Company on a senior basis, that are identical (except
that such securities shall bear appropriate transfer restrictions) to the Exchange Securities (the
“Private Exchange Securities”).

     The Exchange Securities and the Private Exchange Securities shall be issued under (i) the
Indenture or (ii) an indenture identical in all material respects to the Indenture and which, in
either case, has been qualified under the Trust Indenture Act of 1939, as amended (the
“TIA”), or is exempt from such qualification and shall provide that the Exchange Securities
shall not be subject to the transfer restrictions set forth in the Indenture but that the Private
Exchange Securities shall be subject to such transfer restrictions. The Indenture or such
indenture shall provide that the Exchange Securities, the Private Exchange Securities and the
Securities shall vote and consent together on all matters as one class and that none of the
Exchange Securities, the Private Exchange Securities or the Securities will have the right to vote
or consent as a

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separate class on any matter. The Private Exchange Securities shall be of the same series as
and the Company shall use all commercially reasonable efforts to have the Private Exchange
Securities bear the same CUSIP number as the Exchange Securities. The Company shall not have any
liability under this Agreement solely as a result of such Private Exchange Securities not bearing
the same CUSIP number as the Exchange Securities.

     As soon as practicable after the close of the Exchange Offer and/or the Private Exchange, as
the case may be, the Company shall:

          (i) accept for exchange all Registrable Securities duly tendered and not validly
withdrawn pursuant to the Exchange Offer in accordance with the terms of the Exchange Offer
Registration Statement and the letter of transmittal which shall be an exhibit thereto;

          (ii) accept for exchange all Securities properly tendered pursuant to the Private
Exchange;

          (iii) deliver to the Trustee for cancellation all Registrable Securities so accepted
for exchange; and

          (iv) cause the Trustee promptly to authenticate and deliver Exchange Securities or
Private Exchange Securities, as the case may be, to each Holder of Registrable Securities so
accepted for exchange in a principal amount equal to the principal amount of the Registrable
Securities of such Holder so accepted for exchange.

     Interest on each Exchange Security and Private Exchange Security will accrue from the last
date on which interest was paid on the Registrable Securities surrendered in exchange therefor or,
if no interest has been paid on the Registrable Securities, from the date of original issuance.
The Exchange Offer and the Private Exchange shall not be subject to any conditions, other than (i)
that the Exchange Offer or the Private Exchange, or the making of any exchange by a Holder, does
not violate applicable law or any applicable interpretation of the staff of the SEC, (ii) the due
tendering of Registrable Securities in accordance with the Exchange Offer and the Private Exchange,
(iii) that each Holder of Registrable Securities exchanged in the Exchange Offer shall have
represented that all Exchange Securities to be received by it shall be acquired in the ordinary
course of its business and that at the time of the consummation of the Exchange Offer it shall have
no arrangement or understanding with any person to participate in the distribution (within the
meaning of the 1933 Act) of the Exchange Securities and shall have made such other representations
as may be reasonably necessary under applicable SEC rules, regulations or interpretations to render
the use of Form S-4 or other appropriate form under the 1933 Act available and (iv) that no action
or proceeding shall have been instituted or threatened in any court or by or before any
governmental agency with respect to the Exchange Offer or the Private Exchange which, in the
Company’s judgment, would reasonably be expected to impair the ability of the Company to proceed
with the Exchange Offer or the Private Exchange. The Company shall inform the Initial Purchasers
of the names and addresses of the Holders to whom the Exchange Offer is made, and the Initial
Purchasers shall have the right to contact such Holders and otherwise facilitate the tender of
Registrable Securities in the Exchange Offer.

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          2.2 Shelf Registration. (i) If, because of any changes in law, SEC rules or
regulations or applicable interpretations thereof by the staff of the SEC, the Company is not
permitted to effect the Exchange Offer as contemplated by Section 2.1 hereof, (ii) if for any other
reason the Exchange Offer Registration Statement is not declared effective within 180 days
following the original issue of the Registrable Securities or the Exchange Offer is not consummated
within 210 days after the original issue of the Registrable Securities, (iii) upon the request of
any of the Initial Purchasers or (iv) if a Holder is not permitted to participate in the Exchange
Offer or does not receive fully tradeable Exchange Securities pursuant to the Exchange Offer, then
in case of each of clauses (i) through (iv) the Company shall, at its cost:

          (a) As promptly as practicable, file with the SEC, and thereafter shall use its best efforts
to cause to be declared effective as promptly as practicable but no later than 210 days after the
original issue of the Registrable Securities, a Shelf Registration Statement relating to the offer
and sale of the Registrable Securities by the Holders from time to time in accordance with the
methods of distribution elected by the Majority Holders participating in the Shelf Registration and
set forth in such Shelf Registration Statement.

          (b) Use its best efforts to keep the Shelf Registration Statement continuously effective in
order to permit the Prospectus forming part thereof to be usable by Holders for a period of two
years from the date the Shelf Registration Statement is declared effective by the SEC, or for such
shorter period that will terminate when all Registrable Securities covered by the Shelf
Registration Statement have been sold pursuant to the Shelf Registration Statement or cease to be
outstanding or otherwise to be Registrable Securities (the “Effectiveness Period”);
provided, however, that the Effectiveness Period in respect of the Shelf Registration Statement
shall be extended to the extent required to permit dealers to comply with the applicable prospectus
delivery requirements of Rule 174 under the 1933 Act and as otherwise provided herein.

          (c) Notwithstanding any other provisions hereof, use its best efforts to ensure that (i) any
Shelf Registration Statement and any amendment thereto and any Prospectus forming part thereof and
any supplement thereto complies in all material respects with the 1933 Act and the rules and
regulations thereunder, (ii) any Shelf Registration Statement and any amendment thereto does not,
when it becomes effective, contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein not
misleading and (iii) any Prospectus forming part of any Shelf Registration Statement, and any
supplement to such Prospectus (as amended or supplemented from time to time), does not include an
untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements, in light of the circumstances under which they were made, not misleading.

          The Company shall not permit any securities other than Registrable Securities to be included
in the Shelf Registration Statement. The Company further agrees, if necessary, to supplement or
amend the Shelf Registration Statement, as required by Section 3(b) below, and to furnish to the
Holders of Registrable Securities copies of any such supplement or amendment promptly after its
being used or filed with the SEC.

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          2.3 Expenses. The Company shall pay all Registration Expenses in connection with the
registration pursuant to Section 2.1 or 2.2. Each Holder shall pay all underwriting discounts and
commissions and transfer taxes, if any, relating to the sale or disposition of such Holder’s
Registrable Securities pursuant to the Shelf Registration Statement.

          2.4 Effectiveness. (a) The Company will be deemed not have used its best efforts to
cause the Exchange Offer Registration Statement or the Shelf Registration Statement, as the case
may be, to become, or to remain, effective during the requisite period if the Company voluntarily
takes any action that would, or omits to take any action which omission would, result in any such
Registration Statement not being declared effective or in the Holders of Registrable Securities
covered thereby not being able to exchange or offer and sell such Registrable Securities during
that period as and to the extent contemplated hereby, unless such action is required by applicable
law.

          (b) An Exchange Offer Registration Statement pursuant to Section 2.1 hereof or a Shelf
Registration Statement pursuant to Section 2.2 hereof will not be deemed to have become effective
unless it has been declared effective by the SEC; provided, however, that if, after it has been
declared effective, the offering of Registrable Securities pursuant to an Exchange Offer
Registration Statement or a Shelf Registration Statement is interfered with by any stop order,
injunction or other order or requirement of the SEC or any other governmental agency or court, such
Registration Statement will be deemed not to have become effective during the period of such
interference, until the offering of Registrable Securities pursuant to such Registration Statement
may legally resume.

          2.5 Interest. The Securities will provide that in the event that either (a) the
Exchange Offer Registration Statement is not filed with the Commission on or prior to the 90th
calendar day following the date of original issue of the Securities, (b) the Exchange Offer
Registration Statement has not been declared effective on or prior to the 180th calendar day
following the date of original issue of the Securities or (c) the Exchange Offer is not consummated
or a Shelf Registration Statement is not declared effective, in either case, on or prior to the
210th calendar day following the date of original issue of the Securities (each such event referred
to in clauses (a) through (c) above, a “Registration Default”), the interest rate borne by
the Securities shall be increased (“Additional Interest”) by one-quarter of one percent
(0.25%) per annum upon the occurrence of each Registration Default, which rate will increase by one
quarter of one percent (0.25%) each 90-day period that such Additional Interest continues to accrue
under any such circumstance, provided that the maximum aggregate increase in the interest rate will
in no event exceed one percent (1.0%) per annum. Upon the cure of all Registration Defaults the
accrual of Additional Interest will cease and the interest rate will revert to the original rate.

          If the Shelf Registration Statement is unusable by the Holders for any reason, and the
aggregate number of days in any consecutive twelve-month period for which the Shelf Registration
Statement shall not be usable exceeds 30 days in the aggregate, then the interest rate borne by the
Securities will be increased by one-quarter of one percent (0.25%) per annum of the principal
amount of the Securities for the first 90-day period (or portion thereof) beginning on the
31st such date that such Shelf Registration Statement ceases to be usable, which rate
shall be

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increased by an additional one-quarter of one percent (0.25%) per annum of the principal
amount of the Securities at the beginning of each subsequent 90-day period, provided that the
maximum aggregate increase in the interest rate will in no event exceed one percent (1.0%) per
annum. Any amounts payable under this paragraph shall also be deemed “Additional Interest” for
purposes of this Agreement. Upon the Shelf Registration Statement once again becoming usable, the
interest rate borne by the Securities will be reduced to the original interest rate if the Company
is otherwise in compliance with this Agreement at such time. Additional Interest shall be computed
based on the actual number of days elapsed in each 90-day period in which the Shelf Registration
Statement is unusable.

          The Company shall notify the Trustee within three business days after each and every date on
which an event occurs in respect of which Additional Interest is required to be paid (an “Event
Date”). Additional Interest shall be paid by depositing with the Trustee, in trust, for the
benefit of the Holders of Registrable Securities, on or before the applicable semiannual interest
payment date, immediately available funds in sums sufficient to pay the Additional Interest then
due. The Additional Interest due shall be payable on each interest payment date to the record
Holder of Securities entitled to receive the interest payment to be paid on such date as set forth
in the Indenture. Each obligation to pay Additional Interest shall be deemed to accrue from and
including the day following the applicable Event Date.

     3. Registration Procedures.

          In connection with the obligations of the Company with respect to Registration Statements
pursuant to Sections 2.1 and 2.2 hereof, the Company shall:

          (a) prepare and file with the SEC a Registration Statement, within the relevant time period
specified in Section 2, on the appropriate form under the 1933 Act, which form (i) shall be
selected by the Company, (ii) shall, in the case of a Shelf Registration, be available for the sale
of the Registrable Securities by the selling Holders thereof, (iii) shall comply as to form in all
material respects with the requirements of the applicable form and include or incorporate by
reference all financial statements required by the SEC to be filed therewith or incorporated by
reference therein, and (iv) shall comply in all respects with the requirements of Regulation S-T
under the 1933 Act, and use its best efforts to cause such Registration Statement to become
effective and remain effective in accordance with Section 2 hereof;

          (b) prepare and file with the SEC such amendments and post-effective amendments to each
Registration Statement as may be necessary under applicable law to keep such Registration Statement
effective for the applicable period; and cause each Prospectus to be supplemented by any required
prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 (or any similar
provision then in force) under the 1933 Act and comply with the provisions of the 1933 Act, the
1934 Act and the rules and regulations thereunder applicable to them with respect to the
disposition of all securities covered by each Registration Statement during the applicable period
in accordance with the intended method or methods of distribution by the selling Holders thereof
(including sales by any Participating Broker-Dealer);

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          (c) in the case of a Shelf Registration, (i) notify each Holder of Registrable Securities, at
least five business days prior to filing, that a Shelf Registration Statement with respect to the
Registrable Securities is being filed and advising such Holders that the distribution of
Registrable Securities will be made in accordance with the method selected by the Majority Holders
participating in the Shelf Registration; (ii) furnish to each Holder of Registrable Securities and
to each underwriter of an underwritten offering of Registrable Securities, if any, without charge,
as many copies of each Prospectus, including each preliminary Prospectus, and any amendment or
supplement thereto and such other documents as such Holder or underwriter may reasonably request,
including financial statements and schedules and, if the Holder so requests, all exhibits in order
to facilitate the public sale or other disposition of the Registrable Securities; and (iii) hereby
consent to the use of the Prospectus or any amendment or supplement thereto by each of the selling
Holders of Registrable Securities in connection with the offering and sale of the Registrable
Securities covered by the Prospectus or any amendment or supplement thereto;

          (d) use its best efforts to register or qualify the Registrable Securities under all
applicable state securities or “blue sky” laws of such jurisdictions as any Holder of Registrable
Securities covered by a Registration Statement and each underwriter of an underwritten offering of
Registrable Securities shall reasonably request by the time the applicable Registration Statement
is declared effective by the SEC, and do any and all other acts and things which may be reasonably
necessary or advisable to enable each such Holder and underwriter to consummate the disposition in
each such jurisdiction of such Registrable Securities owned by such Holder; provided, however, that
the Company shall not be required to (i) qualify as a foreign corporation or as a dealer in
securities in any jurisdiction where it would not otherwise be required to qualify but for this
Section 3(d), or (ii) take any action which would subject it to general service of process or
taxation in any such jurisdiction where it is not then so subject;

          (e) notify promptly each Holder of Registrable Securities under a Shelf Registration or any
Participating Broker-Dealer who has notified the Company that it is utilizing the Exchange Offer
Registration Statement as provided in paragraph (f) below and, if requested by such Holder or
Participating Broker-Dealer, confirm such advice in writing promptly (i) when a Registration
Statement has become effective and when any post-effective amendments and supplements thereto
become effective, (ii) of any request by the SEC or any state securities authority for
post-effective amendments and supplements to a Registration Statement and Prospectus or for
additional information after the Registration Statement has become effective, (iii) of the issuance
by the SEC or any state securities authority of any stop order suspending the effectiveness of a
Registration Statement or the initiation of any proceedings for that purpose, (iv) in the case of a
Shelf Registration, if, between the effective date of a Registration Statement and the closing of
any sale of Registrable Securities covered thereby, the representations and warranties of the
Company contained in any underwriting agreement, securities sales agreement or other similar
agreement, if any, relating to the offering cease to be true and correct in all material respects,
(v) of the happening of any event or the discovery of any facts during the period a Shelf
Registration Statement is effective which makes any statement made in such Registration Statement
or the related Prospectus untrue in any material respect or which requires the making of any
changes in such Registration Statement or Prospectus in order to make the statements therein not
misleading, (vi) of the receipt by the Company of any notification with

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respect to the suspension of the qualification of the Registrable Securities or the Exchange
Securities, as the case may be, for sale in any jurisdiction or the initiation or threatening of
any proceeding for such purpose and (vii) of any determination by the Company that a post-effective
amendment to such Registration Statement would be appropriate;

          (f) in the case of the Exchange Offer Registration Statement (i) include in the Exchange Offer
Registration Statement a section entitled “Plan of Distribution” which section shall be reasonably
acceptable to Merrill Lynch on behalf of the Participating Broker-Dealers, and which shall contain
a summary statement of the positions taken or policies made by the staff of the SEC with respect to
the potential “underwriter” status of any broker-dealer that holds Registrable Securities acquired
for its own account as a result of market-making activities or other trading activities and that
will be the beneficial owner (as defined in Rule 13d-3 under the Exchange Act) of Exchange
Securities to be received by such broker-dealer in the Exchange Offer, whether such positions or
policies have been publicly disseminated by the staff of the SEC or such positions or policies, in
the reasonable judgment of Merrill Lynch on behalf of the Participating Broker-Dealers and its
counsel, represent the prevailing views of the staff of the SEC, including a statement that any
such broker-dealer who receives Exchange Securities for Registrable Securities pursuant to the
Exchange Offer may be deemed a statutory underwriter and must deliver a prospectus meeting the
requirements of the 1933 Act in connection with any resale of such Exchange Securities, (ii)
furnish to each Participating Broker-Dealer who has delivered to the Company the notice referred to
in Section 3(e), without charge, as many copies of each Prospectus included in the Exchange Offer
Registration Statement, including any preliminary prospectus, and any amendment or supplement
thereto, as such Participating Broker-Dealer may reasonably request, (iii) hereby consent to the
use of the Prospectus forming part of the Exchange Offer Registration Statement or any amendment or
supplement thereto, by any Person subject to the prospectus delivery requirements of the SEC,
including all Participating Broker-Dealers, in connection with the sale or transfer of the Exchange
Securities covered by the Prospectus or any amendment or supplement thereto, and (iv) include in
the transmittal letter or similar documentation to be executed by an exchange offeree in order to
participate in the Exchange Offer (x) the following provision:

	 	 	 	“If the exchange offeree is a broker-dealer holding Registrable Securities
acquired for its own account as a result of market-making activities or
other trading activities, it will deliver a prospectus meeting the
requirements of the 1933 Act in connection with any resale of Exchange
Securities received in respect of such Registrable Securities pursuant to
the Exchange Offer;” and

(y) a statement to the effect that by a broker-dealer making the acknowledgment described in clause
(x) and by delivering a Prospectus in connection with the exchange of Registrable Securities, the
broker-dealer will not be deemed to admit that it is an underwriter within the meaning of the 1933
Act;

          (g) (i) in the case of an Exchange Offer, furnish counsel for the Initial Purchasers and (ii)
in the case of a Shelf Registration, furnish counsel for the Holders of Registrable Securities
copies of any comment letters received from the SEC or any other request

11

 

by the SEC or any state securities authority for amendments or supplements to a Registration
Statement and Prospectus or for additional information;

          (h) make every reasonable effort to obtain the withdrawal of any order suspending the
effectiveness of a Registration Statement at the earliest possible moment;

          (i) in the case of a Shelf Registration, furnish to each Holder of Registrable Securities, and
each underwriter, if any, without charge, at least one conformed copy of each Registration
Statement and any post-effective amendment thereto, including financial statements and schedules
(without documents incorporated therein by reference and all exhibits thereto, unless requested);

          (j) in the case of a Shelf Registration, cooperate with the selling Holders of Registrable
Securities to facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be sold and not bearing any restrictive legends; and enable such
Registrable Securities to be in such denominations (consistent with the provisions of the
Indenture) and registered in such names as the selling Holders or the underwriters, if any, may
reasonably request at least three business days prior to the closing of any sale of Registrable
Securities;

          (k) in the case of a Shelf Registration, upon the occurrence of any event or the discovery of
any facts, each as contemplated by Sections 3(e)(v) and 3(e)(vi) hereof, as promptly as practicable
after the occurrence of such an event, use its best efforts to prepare a supplement or
post-effective amendment to the Registration Statement or the related Prospectus or any document
incorporated therein by reference or file any other required document so that, as thereafter
delivered to the purchasers of the Registrable Securities or Participating Broker-Dealers, such
Prospectus will not contain at the time of such delivery any untrue statement of a material fact or
omit to state a material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading or will remain so qualified. At such time
as such public disclosure is otherwise made or the Company determines that such disclosure is not
necessary, in each case to correct any misstatement of a material fact or to include any omitted
material fact, the Company agrees promptly to notify each Holder of such determination and to
furnish each Holder such number of copies of the Prospectus as amended or supplemented, as such
Holder may reasonably request;

          (l) in the case of a Shelf Registration, a reasonable time prior to the filing of any
Registration Statement, any Prospectus, any amendment to a Registration Statement or amendment or
supplement to a Prospectus or any document which is to be incorporated by reference into a
Registration Statement or a Prospectus after initial filing of a Registration Statement, provide
copies of such document to the Initial Purchasers on behalf of such Holders; and make
representatives of the Company as shall be reasonably requested by the Holders of Registrable
Securities, or the Initial Purchasers on behalf of such Holders, available for discussion of such
document;

          (m) obtain a CUSIP number for all Exchange Securities, Private Exchange Securities or
Registrable Securities, as the case may be, not later than the effective date of a

12

 

Registration Statement, and provide the Trustee with certificates for the Exchange Securities,
Private Exchange Securities or the Registrable Securities, as the case may be, in a form eligible
for deposit with DTC;

          (n) (i) cause the Indenture to be qualified under the TIA in connection with the registration
of the Exchange Securities or Registrable Securities, as the case may be, (ii) cooperate with the
Trustee and the Holders to effect such changes to the Indenture as may be required for the
Indenture to be so qualified in accordance with the terms of the TIA and (iii) execute, and use its
best efforts to cause the Trustee to execute, all documents as may be required to effect such
changes, and all other forms and documents required to be filed with the SEC to enable the
Indenture to be so qualified in a timely manner;

          (o) in the case of a Shelf Registration, enter into agreements (including underwriting
agreements) and take all other customary and appropriate actions in order to expedite or facilitate
the disposition of such Registrable Securities and in such connection whether or not an
underwriting agreement is entered into and whether or not the registration is an underwritten
registration:

               (i) make such representations and warranties to the Holders of such Registrable Securities
and the underwriters, if any, in form, substance and scope as are customarily made by issuers to
underwriters in similar underwritten offerings as may be reasonably requested by them;

               (ii) enter into a securities sales agreement with the Holders and an agent of the Holders
providing for, among other things, the appointment of such agent for the selling Holders for the
purpose of soliciting purchases of Registrable Securities, which agreement shall be in form,
substance and scope customary for similar offerings;

               (iii) if an underwriting agreement is entered into, cause the same to set forth
indemnification provisions and procedures substantially equivalent to the indemnification
provisions and procedures set forth in Section 4 hereof with respect to the underwriters and all
other parties to be indemnified pursuant to said Section or, at the request of any underwriters, in
the form customarily provided to such underwriters in similar types of transactions; and

               (iv) deliver such documents and certificates as may be reasonably requested and as are
customarily delivered in similar offerings to the Holders of a majority in principal amount of the
Registrable Securities being sold and the managing underwriters, if any.

The above shall be done at (x) the effectiveness of such Registration Statement (and each
post-effective amendment thereto) and (y) each closing under any underwriting or similar agreement
as and to the extent required thereunder;

          (p) in the case of a Shelf Registration or if a Prospectus is required to be delivered by any
Participating Broker-Dealer in the case of an Exchange Offer, make available for inspection by
representatives of the Holders of the Registrable Securities, any underwriters participating in any
disposition pursuant to a Shelf Registration Statement, any Participating

13

 

Broker-Dealer and any counsel or accountant retained by any of the foregoing, all financial
and other records, pertinent corporate documents and properties of the Company reasonably requested
by any such persons, and cause the respective officers, directors, employees, and any other agents
of the Company to supply all information reasonably requested by any such representative,
underwriter, special counsel or accountant in connection with a Registration Statement, and make
such representatives of the Company available for discussion of such documents as shall be
reasonably requested by the Initial Purchasers;

          (q) (i) in the case of an Exchange Offer Registration Statement, a reasonable time prior to
the filing of any Exchange Offer Registration Statement, any Prospectus forming a part thereof, any
amendment to an Exchange Offer Registration Statement or amendment or supplement to such
Prospectus, provide copies of such document to Merrill Lynch, on behalf of the Participating
Broker-Dealers, and to its counsel, Vinson & Elkins L.L.P., and make such changes in any such
document prior to the filing thereof as Merrill Lynch or its counsel may reasonably request and,
except as otherwise required by applicable law, not file any such document in a form to which
Merrill Lynch and its counsel shall not have previously been advised and furnished a copy of or to
which Merrill Lynch or its counsel shall reasonably object, and make the representatives of the
Company available for discussion of such documents as shall be reasonably requested by Merrill
Lynch; and

               (ii) in the case of a Shelf Registration, a reasonable time prior to filing any Shelf
Registration Statement, any Prospectus forming a part thereof, any amendment to such Shelf
Registration Statement or amendment or supplement to such Prospectus, provide copies of such
document to the Holders of Registrable Securities, to the Initial Purchasers, to counsel for the
Holders and to the underwriter or underwriters of an underwritten offering of Registrable
Securities, if any, make such changes in any such document prior to the filing thereof as the
Initial Purchasers, the counsel to the Holders or the underwriter or underwriters reasonably
request and not file any such document in a form to which the Majority Holders, the Initial
Purchasers on behalf of the Holders of Registrable Securities, counsel for the Holders of
Registrable Securities or any underwriter shall not have previously been advised and furnished a
copy of or to which the Majority Holders, the Initial Purchasers of behalf of the Holders of
Registrable Securities, counsel to the Holders of Registrable Securities or any underwriter shall
reasonably object, and make the representatives of the Company available for discussion of such
document as shall be reasonably requested by the Holders of Registrable Securities, the Initial
Purchasers on behalf of such Holders, counsel for the Holders of Registrable Securities or any
underwriter;

          (r) in the case of a Shelf Registration, use its best efforts to cause all Registrable
Securities to be listed on any securities exchange on which similar debt securities issued by the
Company are then listed if requested by the Majority Holders, or if requested by the underwriter or
underwriters of an underwritten offering of Registrable Securities, if any;

          (s) in the case of a Shelf Registration, use its best efforts to cause the Registrable
Securities to be rated by the appropriate rating agencies, if so requested by the Majority Holders,
or if requested by the underwriter or underwriters of an underwritten offering of Registrable
Securities, if any;

14

 

          (t) otherwise comply with all applicable rules and regulations of the SEC and make available
to its security holders, as soon as reasonably practicable, an earnings statement covering at least
12 months which shall satisfy the provisions of Section 11(a) of the 1933 Act and Rule 158
thereunder;

          (u) cooperate and assist in any filings required to be made with the NASD and, in the case of
a Shelf Registration, in the performance of any due diligence investigation by any underwriter and
its counsel (including any “qualified independent underwriter” that is required to be retained in
accordance with the rules and regulations of the NASD); and

          (v) upon consummation of an Exchange Offer or a Private Exchange, obtain a customary opinion
of counsel to the Company addressed to the Trustee for the benefit of all Holders of Registrable
Securities participating in the Exchange Offer or Private Exchange, and which includes an opinion
that (i) the Company has duly authorized, executed and delivered the Exchange Securities and/or
Private Exchange Securities, as applicable, and the related indenture, and (ii) each of the
Exchange Securities and related indenture constitute a legal, valid and binding obligation of the
Company, enforceable against the Company in accordance with its respective terms (with customary
exceptions).

          In the case of a Shelf Registration Statement, the Company may (as a condition to such
Holder’s participation in the Shelf Registration) require each Holder of Registrable Securities to
furnish to the Company such information regarding the Holder and the proposed distribution by such
Holder of such Registrable Securities as the Company may from time to time reasonably request in
writing.

          In the case of a Shelf Registration Statement, each Holder agrees that, upon receipt of any
notice from the Company of the happening of any event or the discovery of any facts, each of the
kind described in Section 3(e)(v) hereof, such Holder will forthwith discontinue disposition of
Registrable Securities pursuant to a Registration Statement until such Holder’s receipt of the
copies of the supplemented or amended Prospectus contemplated by Section 3(k) hereof, and, if so
directed by the Company, such Holder will deliver to the Company (at its expense) all copies in
such Holder’s possession, other than permanent file copies then in such Holder’s possession, of the
Prospectus covering such Registrable Securities current at the time of receipt of such notice.

          In the event that the Company fails to effect the Exchange Offer or file any Shelf
Registration Statement and maintain the effectiveness of any Shelf Registration Statement as
provided herein, the Company shall not file any Registration Statement with respect to any
securities (within the meaning of Section 2(1) of the 1933 Act) of the Company other than
Registrable Securities.

          If any of the Registrable Securities covered by any Shelf Registration Statement are to be
sold in an underwritten offering, the underwriter or underwriters and manager or managers that will
manage such offering will be selected by the Majority Holders of such Registrable Securities
included in such offering and shall be acceptable to the Company. No Holder of Registrable
Securities may participate in any underwritten registration hereunder

15

 

unless such Holder (a) agrees to sell such Holder’s Registrable Securities on the basis
provided in any underwriting arrangements approved by the persons entitled hereunder to approve
such arrangements and (b) completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements and other documents required under the terms of such
underwriting arrangements.

     4. Indemnification; Contribution.

          (a) The Company agrees to indemnify and hold harmless the Initial Purchasers, each Holder,
each Participating Broker-Dealer, each Person who participates as an underwriter (any such Person
being an “Underwriter”) and each Person, if any, who controls any Initial Purchaser,
Holder, Participating Broker-Dealer or Underwriter within the meaning of Section 15 of the 1933 Act
or Section 20 of the 1934 Act as follows:

               (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred,
arising out of any untrue statement or alleged untrue statement of a material fact contained in any
Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange
Securities or Registrable Securities were registered under the 1933 Act, including all documents
incorporated therein by reference, or the omission or alleged omission therefrom of a material fact
required to be stated therein or necessary to make the statements therein not misleading, or
arising out of any untrue statement or alleged untrue statement of a material fact contained in any
Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom
of a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading;

               (ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred,
to the extent of the aggregate amount paid in settlement of any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever
based upon any such untrue statement or omission, or any such alleged untrue statement or omission;
provided that (subject to Section 4(d) below) any such settlement is effected with the written
consent of the Company; and

               (iii) against any and all expense whatsoever, as incurred (including the fees and
disbursements of counsel chosen by any indemnified party), reasonably incurred in investigating,
preparing or defending against any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such
untrue statement or omission, or any such alleged untrue statement or omission, to the extent that
any such expense is not paid under subparagraph (i) or (ii) above;

provided, however, that this indemnity agreement shall not apply to any loss, liability, claim,
damage or expense to the extent arising out of any untrue statement or omission or alleged untrue
statement or omission made in reliance upon and in conformity with written information furnished to
the Company by the Holder or Underwriter expressly for use in a Registration Statement (or any
amendment thereto) or any Prospectus (or any amendment or supplement thereto).

16

 

          (b) Each Holder severally, but not jointly, agrees to indemnify and hold harmless the Company,
the Initial Purchasers, each Underwriter and the other selling Holders, and each of their
respective directors and officers, and each Person, if any, who controls the Company, the Initial
Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of the
1933 Act or Section 20 of the 1934 Act, against any and all loss, liability, claim, damage and
expense described in the indemnity contained in Section 4(a) hereof, as incurred, but only with
respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the
Shelf Registration Statement (or any amendment thereto) or any Prospectus included therein (or any
amendment or supplement thereto) in reliance upon and in conformity with written information with
respect to such Holder furnished to the Company by such Holder expressly for use in the Shelf
Registration Statement (or any amendment thereto) or such Prospectus (or any amendment or
supplement thereto); provided, however, that no such Holder shall be liable for any claims
hereunder in excess of the amount of net proceeds received by such Holder from the sale of
Registrable Securities pursuant to such Shelf Registration Statement.

          (c) Each indemnified party shall give notice as promptly as reasonably practicable to each
indemnifying party of any action or proceeding commenced against it in respect of which indemnity
may be sought hereunder, but failure so to notify an indemnifying party shall not relieve such
indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a
result thereof and in any event shall not relieve it from any liability which it may have otherwise
than on account of this indemnity agreement. An indemnifying party may participate at its own
expense in the defense of such action; provided, however, that counsel to the indemnifying party
shall not (except with the consent of the indemnified party) also be counsel to the indemnified
party. In no event shall the indemnifying party or parties be liable for the fees and expenses of
more than one counsel (in addition to any local counsel) separate from their own counsel for all
indemnified parties in connection with any one action or separate but similar or related actions in
the same jurisdiction arising out of the same general allegations or circumstances. No indemnifying
party shall, without the prior written consent of the indemnified parties, settle or compromise or
consent to the entry of any judgment with respect to any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in
respect of which indemnification or contribution could be sought under this Section 4 (whether or
not the indemnified parties are actual or potential parties thereto), unless such settlement,
compromise or consent (i) includes an unconditional release of each indemnified party from all
liability arising out of such litigation, investigation, proceeding or claim and (ii) does not
include a statement as to or an admission of fault, culpability or a failure to act by or on behalf
of any indemnified party.

          (d) If at any time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees
that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected
without its written consent if (i) such settlement is entered into more than 45 days after receipt
by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have
received notice of the terms of such settlement at least 30 days prior to such settlement being
entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in
accordance with such request prior to the date of such settlement.

17

 

          (e) If the indemnification provided for in this Section 4 is for any reason unavailable to or
insufficient to hold harmless an indemnified party in respect of any losses, liabilities, claims,
damages or expenses referred to therein, then each indemnifying party shall contribute to the
aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such
indemnified party, as incurred, in such proportion as is appropriate to reflect the relative fault
of the Company on the one hand and the Holders and the Initial Purchasers on the other hand in
connection with the statements or omissions which resulted in such losses, liabilities, claims,
damages or expenses, as well as any other relevant equitable considerations.

          The relative fault of the Company on the one hand and the Holders and the Initial Purchasers
on the other hand shall be determined by reference to, among other things, whether any such untrue
or alleged untrue statement of a material fact or omission or alleged omission to state a material
fact relates to information supplied by the Company, the Holders or the Initial Purchasers and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.

          The Company, the Holders and the Initial Purchasers agree that it would not be just and
equitable if contribution pursuant to this Section 4 were determined by pro rata allocation (even
if the Initial Purchasers were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred to above in this
Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an
indemnified party and referred to above in this Section 4 shall be deemed to include any legal or
other expenses reasonably incurred by such indemnified party in investigating, preparing or
defending against any litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue
statement or omission or alleged omission.

          Notwithstanding the provisions of this Section 4, no Holder shall be required to contribute
any amount in excess of the amount by which the total price at which the Securities sold by it were
offered exceeds the amount of any damages which such Holder has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged omission.

          No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
1933 Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation.

          For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser,
Holder, Participating Broker-Dealer or Underwriter within the meaning of Section 15 of the 1933 Act
or Section 20 of the 1934 Act shall have the same rights to contribution as such Initial Purchaser,
Holder, Participating Broker-Dealer or Underwriter, and each director of the Company, and each
Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act shall have the same rights to contribution as the Company. The Initial
Purchasers’ respective obligations to contribute pursuant to this Section 7 are several in
proportion to the principal amount of Securities set forth opposite their respective names in
Schedule A to the Purchase Agreement and not joint.

18

 

     5. Miscellaneous.

          5.1 Rule 144 and Rule 144A. For so long as the Company is subject to the reporting
requirements of Section 13 or 15 of the 1934 Act, the Company covenants that it will file the
reports required to be filed by it under the 1933 Act and Section 13(a) or 15(d) of the 1934 Act
and the rules and regulations adopted by the SEC thereunder. If the Company ceases to be so
required to file such reports, the Company covenants that it will upon the request of any Holder of
Registrable Securities (a) make publicly available such information as is necessary to permit sales
pursuant to Rule 144 under the 1933 Act, (b) deliver such information to a prospective purchaser as
is necessary to permit sales pursuant to Rule 144A under the 1933 Act and it will take such further
action as any Holder of Registrable Securities may reasonably request, and (c) take such further
action that is reasonable in the circumstances, in each case, to the extent required from time to
time to enable such Holder to sell its Registrable Securities without registration under the 1933
Act within the limitation of the exemptions provided by (i) Rule 144 under the 1933 Act, as such
Rule may be amended from time to time, (ii) Rule 144A under the 1933 Act, as such Rule may be
amended from time to time, or (iii) any similar rules or regulations hereafter adopted by the SEC.
Upon the request of any Holder of Registrable Securities, the Company will deliver to such Holder a
written statement as to whether it has complied with such requirements.

          5.2 No Inconsistent Agreements. The Company has not entered into and the Company will
not after the date of this Agreement enter into any agreement which is inconsistent with the rights
granted to the Holders of Registrable Securities in this Agreement or otherwise conflicts with the
provisions hereof. The rights granted to the Holders hereunder do not and will not for the term of
this Agreement in any way conflict with the rights granted to the holders of the Company’s other
issued and outstanding securities under any such agreements.

          5.3 Amendments and Waivers. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents
to departures from the provisions hereof may not be given unless the Company has obtained the
written consent of Holders of at least a majority in aggregate principal amount of the outstanding
Registrable Securities affected by such amendment, modification, supplement, waiver or departure.

          5.4 Notices. All notices and other communications provided for or permitted hereunder
shall be made in writing by hand delivery, registered first-class mail, telex, telecopier, or any
courier guaranteeing overnight delivery (a) if to a Holder, at the most current address given by
such Holder to the Company by means of a notice given in accordance with the provisions of this
Section 5.4, which address initially is the address set forth in the Purchase Agreement with
respect to the Initial Purchasers; and (b) if to the Company, initially at the Company’s address
set forth in the Purchase Agreement, and thereafter at such other address of which notice is given
in accordance with the provisions of this Section 5.4.

          All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; two business days after being deposited in the mail,
postage prepaid, if mailed; when answered back, if telexed; when receipt is acknowledged,

19

 

if telecopied; and on the next business day if timely delivered to an air courier guaranteeing
overnight delivery.

          Copies of all such notices, demands, or other communications shall be concurrently delivered
by the person giving the same to the Trustee under the Indenture, at the address specified in such
Indenture.

          5.5 Successor and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors, assigns and transferees of each of the parties, including, without
limitation and without the need for an express assignment, subsequent Holders; provided that
nothing herein shall be deemed to permit any assignment, transfer or other disposition of
Registrable Securities in violation of the terms of the Purchase Agreement or the Indenture. If
any transferee of any Holder shall acquire Registrable Securities, in any manner, whether by
operation of law or otherwise, such Registrable Securities shall be held subject to all of the
terms of this Agreement, and by taking and holding such Registrable Securities such person shall be
conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of
this Agreement, including the restrictions on resale set forth in this Agreement and, if
applicable, the Purchase Agreement, and such person shall be entitled to receive the benefits
hereof.

          5.6 Third Party Beneficiaries. The Initial Purchasers (even if the Initial Purchasers
are not Holders of Registrable Securities) shall be third party beneficiaries to the agreements
made hereunder between the Company, on the one hand, and the Holders, on the other hand, and shall
have the right to enforce such agreements directly to the extent they deem such enforcement
necessary or advisable to protect their rights or the rights of Holders hereunder. Each Holder of
Registrable Securities shall be a third party beneficiary to the agreements made hereunder between
the Company, on the one hand, and the Initial Purchasers, on the other hand, and shall have the
right to enforce such agreements directly to the extent it deems such enforcement necessary or
advisable to protect its rights hereunder.

          5.7 Specific Enforcement. Without limiting the remedies available to the Initial
Purchasers and the Holders, the Company acknowledges that any failure by the Company to comply with
its obligations under Sections 2.1 through 2.4 hereof may result in material irreparable injury to
the Initial Purchasers or the Holders for which there is no adequate remedy at law, that it would
not be possible to measure damages for such injuries precisely and that, in the event of any such
failure, the Initial Purchasers or any Holder may obtain such relief as may be required to
specifically enforce the Company’s obligations under Sections 2.1 through 2.4 hereof.

          5.8 Restriction on Resales. Until the expiration of two years after the original
issuance of the Securities and the Guarantees, the Company and the Guarantor will not, and will
cause their “affiliates” (as such term is defined in Rule 144(a)(1) under the 1933 Act) not to,
resell any Securities and Guarantees which are “restricted securities” (as such term is defined
under Rule 144(a)(3) under the 1933 Act) that have been reacquired by any of them and shall
immediately upon any purchase of any such Securities and Guarantees submit such Securities and
Guarantees to the Trustee for cancellation.

20

 

          5.9 Counterparts. This Agreement may be executed in any number of counterparts and by
the parties hereto in separate counterparts, each of which when so executed shall be deemed to be
an original and all of which taken together shall constitute one and the same agreement.

          5.10 Headings. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

          5.11 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS THEREOF.

          5.12 Severability. In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable,
the validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby.

21

 

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

	 	 	 	 	 	 	 
	 

	 	SERVICE
CORPORATION INTERNATIONAL
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jeffrey E. Curtiss	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	Jeffrey E. Curtiss	 	 
	 

	 	Title:	 	Senior Vice President
Chief
Financial Officer
and Treasurer	 	 

Confirmed and accepted as
  of
the date first above

  written:

MERRILL LYNCH, PIERCE, FENNER & SMITH

               INCORPORATED

J.P. MORGAN SECURITIES INC.

BANC OF AMERICA SECURITIES LLC

LEHMAN BROTHERS INC.

RAYMOND JAMES & ASSOCIATES, INC.

BY: MERRILL LYNCH, PIERCE, FENNER & SMITH

                   INCORPORATED

	 	 	 	 	 
	By:
	 	/s/ Joseph C. Gatto, Jr.	 	 
			 

		
	Name:

	 	Joseph C. Gatto, Jr.
	Title:
	 	Directorexv10w1

 

Exhibit 10.1

AMENDED AND RESTATED

LOAN AND SECURITY AGREEMENT

by and among

SILICON VALLEY BANK

3003 Tasman Drive

Santa Clara, CA 95054

Attn: Loan Services

(408) 496-2429

as Administrative Agent and a Lender

and

KEYBANK NATIONAL ASSOCIATION

601 108th Avenue NE

Bellevue, WA 98004

Attn: Institutional Banking

(425) 709-4580

as Syndication Agent and a Lender

and

PERFICIENT, INC.,

PERFICIENT GENISYS, INC.,

PERFICIENT CANADA CORP.,

PERFICIENT MERITAGE, INC., and

PERFICIENT ZETTAWORKS, INC.

1120 S. Capital of Texas Highway

Building 3, Suite 220

Austin, Texas 78746

as Borrowers

Dated as of the Effective Date

(as hereinafter defined)

 

 

TABLE OF CONTENTS

	 	 	 
	1 ACCOUNTING AND OTHER TERMS
	 	1
	 
	 	 
	2 LOAN AND TERMS OF PAYMENT
	 	1
	 
	 	 
	2.1 Promise to Pay
	 	 1
	        2.1.1 Revolving Advances
	 	1
	        2.1.2 Cash Management; Letters of Credit
	 	1
	        2.1.3 Acquisition Term Loan Facility
	 	2
	        2.1.4 Existing Facilities
	 	3
	2.2 Overadvances
	 	 3
	2.3 Interest Rate; Payments
	 	 3
	        2.3.1 In General
	 	3
	        2.3.2 Committed Revolving Line
	 	4
	        2.3.3 Term Loan Payments
	 	4
	2.4 Fees
	 	 5
	2.5 Additional Costs
	 	 5
	2.6 Obligations of Lenders
	 	 5
	 
	 	 
	3 CONDITIONS OF LOANS
	 	5
	 
	 	 
	3.1 Conditions Precedent to Initial Credit Extension
	 	 5
	3.2 Conditions Precedent to all Credit Extensions
	 	 5
	 
	 	 
	4 CREATION OF SECURITY INTEREST
	 	6
	 
	 	 
	4.1 Grant of Security Interest
	 	 6
	4.2 Authorization to File
	 	 6
	 
	 	 
	5 REPRESENTATIONS AND WARRANTIES
	 	6
	 
	 	 
	5.1 Due Organization and Authorization
	 	 6
	5.2 Collateral
	 	 6
	5.3 Litigation
	 	 7
	5.4 No Material Adverse Change in Financial Statements
	 	 7
	5.5 Solvency
	 	 7
	5.6 Regulatory Compliance
	 	 7
	5.7 Subsidiaries
	 	 7
	5.8 Full Disclosure
	 	 7
	5.9 Use of Proceeds
	 	 7
	 
	 	 
	6 AFFIRMATIVE COVENANTS
	 	7
	 
	 	 
	6.1 Government Compliance
	 	 7
	6.2 Financial Statements, Reports, Certificates
	 	 7
	6.3 Inventory; Returns
	 	 8
	6.4 Taxes
	 	 8
	6.5 Insurance
	 	 8
	6.6 Primary Accounts
	 	 8
	6.7 Financial Covenants
	 	 8
	6.8 Registration of Intellectual Property Rights
	 	 9
	6.9 Further Assurances
	 	 9
	6.10 Intentionally Omitted
	 	 9
	6.11 Permitted Acquisitions
	 	 9
	6.12 Permitted Acquisitions Financial Covenant
	 	 9
	 
	 	 
	7 NEGATIVE COVENANTS
	   10
	 
	 	 
	7.1 Dispositions
	   10
	7.2 Changes in Business, Ownership, Management or Business Locations
	   10
	7.3 Mergers or Acquisitions
	   10

 

 

	 	 	 
	7.4 Indebtedness
	 	10
	7.5 Encumbrance
	 	10
	7.6 Investments; Distributions
	 	10
	7.7 Transactions with Affiliates
	 	10
	7.8 Subordinated Debt
	 	11
	7.9 Compliance
	 	11
	 
	 	 
	8 EVENTS OF DEFAULT
	 	11
	 
	 	 
	8.1 Payment Default
	 	11
	8.2 Covenant Default
	 	11
	8.3 Material Adverse Change
	 	11
	8.4 Attachment
	 	11
	8.5 Insolvency
	 	11
	8.6 Other Agreements
	 	11
	8.7 Judgments
	 	11
	8.8 Misrepresentations
	 	12
	 
	 	 
	9 BANK’S RIGHTS AND REMEDIES
	 	12
	 
	 	 
	9.1 Rights and Remedies
	 	12
	9.2 Power of Attorney
	 	12
	9.3 Accounts Collection
	 	13
	9.4 Bank Expenses
	 	13
	9.5 Agent’s Liability for Collateral
	 	13
	9.6 Remedies Cumulative
	 	13
	9.7 Demand Waiver
	 	13
	 
	 	 
	10 NOTICES AND WAIVERS
	 	13
	 
	 	 
	10.1 Notices
	 	13
	10.2 Subrogation and Similar Rights
	 	13
	10.3 Waivers of Notice
	 	14
	10.4 Subrogation Defenses
	 	14
	10.5 Right to Settle, Release
	 	14
	 
	 	 
	11 CHOICE OF LAW , VENUE AND JURY TRIAL WAIVER
	 	14
	 
	 	 
	12 GENERAL PROVISIONS
	 	15
	 
	 	 
	12.1 Successors and Assigns
	 	15
	12.2 Indemnification
	 	15
	12.3 Time of Essence
	 	15
	12.4 Severability of Provision
	 	15
	12.5 Amendments in Writing, Integration
	 	15
	12.6 Counterparts
	 	15
	12.7 Survival
	 	15
	12.8 Confidentiality
	 	15
	12.9 Attorneys’ Fees, Costs and Expenses
	 	16
	12.10 Qualified Commercial Loan Certification
	 	16
	12.11 Syndication Agent
	 	16
	 
	 	 
	13 DEFINITIONS
	 	16
	 
	 	 
	13.1 Definitions
	 	16

 

 

This AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Agreement”) dated as of the Effective
Date among SILICON VALLEY BANK, a California chartered bank (“SVB”), with its principal place of
business at 3003 Tasman Drive, Santa Clara, California 95054, and with a loan production office
located at 9020 Capital of Texas Highway, North, Building 1, Suite 350, Austin, Texas, 78759, in
its capacity as administrative agent (“Agent”) and as a lender, KEYBANK NATIONAL ASSOCIATION
(“Key”; and collectively with SVB, the “Lenders” and each a “Lender”) as syndication agent and a
lender, and PERFICIENT, INC., PERFICIENT GENISYS, INC., PERFICIENT CANADA CORP., PERFICIENT
MERITAGE, INC. AND PERFICIENT ZETTAWORKS, INC., jointly and severally (collectively, the
“Borrowers” and, individually, each a “Borrower”)), each with its principal place of business at
the location set forth on the Cover Page of this Agreement, provides the terms on which Lenders
will lend to Borrower and Borrower will repay Lenders.

WHEREAS, the Lenders have appointed SVB as administrative agent hereunder pursuant to that certain
Intercreditor Agreement dated of even date herewith by and between SVB and Key.

NOW THEREFORE, the parties hereto agree as follows:

1 ACCOUNTING AND OTHER TERMS.

     Accounting terms not defined in this Agreement shall be construed following GAAP.
Calculations and determinations must be made following GAAP. The term “financial statements”
includes the notes and schedules. The terms “including” and “includes” always mean “including (or
includes) without limitation” in this or any Loan Document. Capitalized terms in this Agreement
shall have the meanings set forth in Section 13. All other terms contained in this Agreement,
unless otherwise indicated, shall have the meanings provided by the Code, to the extent such terms
are defined therein.

2 LOAN AND TERMS OF PAYMENT.

2.1 Promise to Pay. For value received, each Borrower, jointly and severally, promises to
pay to the order of Agent and the Lenders the unpaid principal amount of all Credit Extensions and
interest on the unpaid principal amount of the Credit Extensions.

2.1.1 Revolving Advances.

     (a) SVB will make Advances not exceeding (i) the lesser of (A) the Committed Revolving Line
or (B) the Borrowing Base, minus (ii) the outstanding principal balance of the Advances, the amount
of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit) and all
unpaid amounts utilized for Cash Management Services. Amounts borrowed under this Section may be
repaid and reborrowed during the term of this Agreement.

     (b) To obtain an Advance, Borrowers must deliver to Agent by facsimile by 3:00 p.m. Pacific
time on the Business Day the Advance is to be made. the Payment/Advance Form attached as Exhibit B
(a “Payment/Advance Form”). Following receipt of funds from SVB, Agent will credit Advances to
Borrowers’ deposit account. SVB may make Advances under this Agreement without instructions if the
Advances are necessary to meet Obligations which have become due.

     (c) The Committed Revolving Line terminates on the Revolving Maturity Date, when all Advances
are immediately payable to Agent, for the benefit of SVB.

     (d) SVB’s obligation to make Advances hereunder will terminate if, in Agent’s good faith
judgment, there has been a material adverse change in the general affairs, management, results of
operation, condition (financial or otherwise) or the prospect of repayment of the Obligations, or
there has been any material adverse deviation by Borrowers from the most recent business plan of
Borrowers presented to and accepted by Agent prior to the execution of this Agreement.

2.1.2 Cash Management; Letters of Credit.

1

 

     (a) Borrowers may use up to $1,500,000 (the “Cash Management Services/Letters of Credit
Sublimit”) of the Committed Revolving Line for (a) SVB’s Cash Management Services, which may
include merchant services, direct deposit of payroll, business credit card, and check cashing
services identified in various cash management services agreements related to such services (the
“Cash Management Services”), and (b) the issuance by SVB of Letters of Credit for Borrowers’
account. Such aggregate amounts utilized under the Cash Management Services Sublimit will at all
times reduce the amount otherwise available to be borrowed under the Committed Revolving Line. Any
amounts SVB pays on behalf of Borrowers or any amounts that are not paid by Borrowers for any Cash
Management Services will be treated as Advances under the Committed Revolving Line and will accrue
interest at the rate for Advances.

     (b) SVB has issued, as set forth on Schedule 2.1.2, and may in the future issue letters of
credit (each a “Letter of Credit” and collectively, the “Letters of Credit”) for any Borrower’s
account not exceeding (i) the lesser of the Committed Revolving Line or the Borrowing Base minus
(ii) the outstanding principal balance of the Advances and all unpaid amounts utilized for Cash
Management Services; however the aggregate face amount of all outstanding Letters of Credit
(including drawn but unreimbursed Letters of Credit) plus unpaid amounts utilized for Cash
Management Services may not exceed the Cash Management Services/Letters of Credit Sublimit. Each
Letter of Credit will have an expiry date of no later than 180 days after the Revolving Maturity
Date but Borrowers’ reimbursement obligation will be secured by cash on terms acceptable to SVB at
any time after the Revolving Maturity Date if the term of this Agreement is not extended by SVB.
The appropriate Borrower agrees to execute any further documentation in connection with the Letters
of Credit as SVB may reasonably request.

     (c) All issued Letters of Credit identified on Schedule 2.1.2, attached hereto, for the
benefit of a Borrower shall be governed by this Agreement.

2.1.3 Acquisition Term Loan Facility.

     (a) Subject to the terms and conditions of this Agreement, Key agrees to lend to Borrower,
from time to time prior to the Term Loan Commitment Termination Date, advances (each a “Term Loan
Advance” and collectively the “Term Loan Advances”) in an aggregate amount not to exceed the
Committed Term Loan Line. When repaid, the Term Loan Advances may not be re-borrowed. The
proceeds of the Term Loan Advances will be used solely to fund Permitted Acquisitions. Each Term
Loan Advance shall be considered a promissory note evidencing the amounts due hereunder for all
purposes. Key’s obligation to lend hereunder shall terminate on the earlier of (i) the occurrence
and continuance of an Event of Default, or (ii) the Term Loan Commitment Termination Date.

     (b) To obtain a Term Loan Advance, Borrower will deliver to Agent (i) a completed supplement
in substantially the form attached as Exhibit F (“Loan Supplement”) signed by a Responsible
Officer, (ii) a certificate signed by a Responsible Officer affirming that following such requested
Term Loan Advance and following such Permitted Acquisition, based on pro forma projections reviewed
by a Responsible Officer, Borrowers will remain in compliance with all representations, warranties,
covenants and agreements contained in this Agreement, and (iii) such additional information as
Agent may request at least five (5) Business Days before the proposed funding date (the “Funding
Date”). At least three (3) Business Days before the Funding Date, Agent shall notify Key of
Borrower’s request for such Term Laon Advance. On each Funding Date, Agent will specify in the
Loan Supplement for each Term Loan Advance, the Basic Rate and the Payment Dates. If Borrowers
satisfy the conditions for a Term Loan Advance specified herein and Key delivers the requested
funds to Agent, Agent will disburse such Term Loan Advance by internal transfer to Borrowers’
deposit account with SVB on the Funding Date. Term Loan Advances for any Permitted Acquisition may
not exceed in the aggregate fifty percent (50%) of the Total Acquisition Cost for such Permitted
Acquisition.

     (c) Key’s obligation to lend the undisbursed portion of the Committed Term Loan Line will
terminate if, in Agent’s or Key’s good faith judgment, there has been a material adverse change in
the general affairs, management, results of operation, condition (financial or otherwise) or the
prospect of repayment of the Obligations, or there has been any material adverse deviation by
Borrowers from the most recent

2

 

business plan of Borrowers presented to and accepted by Agent and the Lenders prior to the execution of this Agreement.

2.1.4 Existing Facilities. This Agreement amends and restates that certain Loan and
Security Agreement dated December 5, 2003 (as amended, the “Original Loan Agreement”), under which
SVB made available to Borrowers (a) a $4,000,000 acquisition term loan facility (the “Existing Term
Loan”) and (b) a $9,000,000 line of credit (the “Existing Line of Credit”). Borrowers shall
continue to repay the Existing Term Loan pursuant to terms set forth on the Loan Supplements
identified on Schedule 2.1.4, attached hereto and made a part hereof. The Existing Term
Loan may only be prepaid pursuant to terms identical to Sections 2.3.3(c) and 2.3.3(d). Such
payments shall be delivered directly to SVB. All amounts outstanding under the Existing Line of
Credit shall be considered an Advance hereunder and shall be due and owing pursuant to the terms
hereof.

2.2 Overadvances. If Borrowers’ Credit Extensions under Section 2.1.1 and 2.1.2 exceed the
lesser of either (a) the Committed Revolving Line or (b) the Borrowing Base, Borrower must
immediately pay in cash to Agent, for the benefit of SVB, the excess. Notwithstanding the
foregoing, if such overadvance is caused by a reduction in the percentage of the Borrowing Base or
a change to the definition of Eligible Accounts, Borrower’s failure to immediately pay in cash the
excess shall not be an Event of Default, but Borrower shall within thirty (30) days pay in cash to
Agent, for the benefit of SVB, the excess and no further Credit Extensions will me made until
Borrower is in compliance with the revised Borrowing Base formula.

2.3 Interest Rate; Payments.

2.3.1 In General.

     (a) Spreading of Interest. Due to irregular periodic balances of principal, the
variable nature of the interest rate, or prepayment, the total interest that will accrue under this
Agreement cannot be determined in advance. Lenders do not intend to contract for, charge or
receive more than the Maximum Lawful Rate or Maximum Lawful Amount permitted by applicable state or
federal law, and to prevent such an occurrence Lenders and Borrowers agree that all amounts of
interest, whenever contracted for, charged or received by Lenders, with respect to the Obligations,
will be spread, prorated or allocated over the full period of time the Obligations are outstanding,
including the period of any renewal or extension thereof. If the maturity of the Obligations is
accelerated for any reason whether as a result of an Event of Default or otherwise prior to the
full stated term, the total amount of interest contracted for, charged or received to the time of
such demand shall be spread, prorated or allocated along with any interest thereafter accruing over
the full period of time that the Obligations thereafter remain unpaid for the purpose of
determining if such interest exceeds the Maximum Lawful Amount.

     (b) Excess Interest. At maturity (whether by acceleration or otherwise) or on earlier
final payment of the Obligations, each Lender will compute the total amount of interest that has
been contracted for, charged or received by each Lender or payable by Borrowers hereunder and
compare such amount to the Maximum Lawful Amount that could have been contracted for, charged or
received by such Lender. If such computation reflects that the total amount of interest that has
been contracted for, charged or received by either Lender or payable by any Borrower exceeds the
Maximum Lawful Amount, then such Lender shall apply such excess to the reduction of the principal
balance, and any remaining excess shall be refunded to such Borrower. This provision concerning
the crediting or refund of excess interest shall control and take precedence over all other
agreements between Borrowers and Lenders so that under no circumstances shall the total interest
contracted for, charged or received by Lenders exceed the Maximum Lawful Amount.

     (c) Computation of Interest; Default Rate. Interest is computed on a 360 day year for
the actual number of days elapsed. Lenders will not compute the interest in a manner that would
cause Lenders to contract for, charge or receive interest that would exceed the Maximum Lawful Rate
or the Maximum Lawful Amount. After an Event of Default, Obligations accrue interest at the Default
Interest Rate. The Default Interest Rate is the least of (i) the Maximum Lawful Rate, or (ii) the
interest rate applicable immediately prior to the occurrence of the Event of Default plus 5
percentage points; or (iii) such lesser rate of interest as each Lender in its sole discretion may
choose to charge; but in no event more than the Maximum Lawful Rate.

3

 

     (d) Request to Debit Accounts. SVB, in its capacity as Agent, may debit any of
Borrowers’ deposit accounts including Account Number 3300402717 for principal and interest payments
or any amounts any Borrower owes Lenders. SVB will notify Borrowers when it debits Borrowers’
accounts. These debits are not a set-off. Payments received after 12:00 noon Pacific time are
considered received at the opening of business on the next Business Day.

2.3.2 Committed Revolving Line.

     (a) Interest Rate. Advances under the Committed Revolving Line accrue interest on the
outstanding principal balance thereof at a per annum rate 1.25 percentage points (1.25%) above the
Prime Rate. The interest rate on the Committed Revolving Line increases or decreases when the
Prime Rate changes.

     (b) Payments. Interest on the Committed Revolving Line is payable to Agent, for the
benefit of SVB, on the first day of each month. When a payment is due on a day that is not a
Business Day, the payment is due the next Business Day and additional fees or interest accrue.

2.3.3 Term Loan Payments.

     (a) Principal and Interest Payments On Payment Dates. Borrower will repay the Term
Loan Advances on the terms provided herein and in the Loan Supplement. Borrowers will make
payments to Agent, for the benefit of Key, monthly of principal in advance and/or accrued interest,
as set forth herein and in the Loan Supplement, for each Term Loan Advance (collectively,
“Scheduled Payments”), commencing on the first day of the next month following the Funding Date
with respect to such Term Loan Advance and continuing thereafter during the Repayment Period on the
first day of each calendar month (each a “Payment Date”). On each Payment Date prior to the Term
Loan Commitment Termination Date, Borrower shall make payments to Agent, for the benefit of Key, of
accrued but unpaid interest only for each Term Loan Advance. Beginning on the first Payment Date
following the Term Loan Commitment Termination Date and continuing thereafter during the Repayment
Period, Borrower will pay to Agent, for the benefit of Key, thirty-six (36) equal installments of
principal and all accrued interest for each Term Loan Advance (collectively with the
interest-only payments required in the preceding sentence, each a “Term Loan Payment”). Borrowers’
final Term Loan Payment for each Term Loan Advance shall be due and payable to Agent, for the
benefit of Key, on the Term Loan Maturity Date and shall include all outstanding principal and all
accrued but unpaid interest for all Term Loan Advances. Payments received after 12:00 noon Pacific
time are considered received at the opening of business on the next Business Day. A Term Loan
Advance may only be prepaid in accordance with Sections 2.3.3(c) and 2.3.3(d).

     (b) Interest Rate. Borrowers will pay interest on the Payment Dates (as described
above) at the per annum rate of interest equal to the Basic Rate determined by Agent, in
consultation with Key, as of the Funding Date for each Term Loan Advance in accordance with the
definition of the Basic Rate. Any amounts outstanding during the continuance of an Event of
Default shall bear interest at a per annum rate equal to the Default Interest Rate, as defined in
Section 2.3.1(c).

     (c) Mandatory Prepayment Upon an Acceleration. If the Term Loan Advances are
accelerated following the occurrence of an Event of Default or otherwise, then Borrowers will
immediately pay to Agent, for the benefit of Key, (i) all outstanding principal and all accrued but
unpaid interest, including interest accruing at the Default Interest Rate, with respect to each
Term Loan Advance to the date of such prepayment, and (ii) all other sums, if any, that shall have
become due and payable with respect to this Agreement.

     (d) Permitted Prepayment of Loans. Borrowers shall have the option to prepay all, but
not less than all, of any Term Loan Advance advanced by Key under this Agreement without any
prepayment fees or penalties, provided Borrowers (i) provide written notice to Agent of their
election to prepay such Term Loan Advance at least fifteen (15) days prior to such prepayment, and
(ii) pay, on the date of the prepayment (A) all outstanding principal and all accrued but unpaid
interest with respect to such Term Loan Advance; and (B) all

4

 

other sums, if any, that shall have become due and payable hereunder with respect to such Term Loan Advance.

2.4 Fees.

     (a) Term Loan Facility Fee. Borrowers will pay to Agent, for the benefit of Key, a
fully earned, non-refundable term loan facility fee in the amount of $25,000, due on the date that
Borrowers execute and deliver this Agreement to Agent;

     (b) Committed Revolving Line Facility Fee. Borrowers will pay to Agent, for the
benefit of SVB, (a) a fully earned, non-refundable committed revolving line facility fee in the
amount of $7,500, due on the date that Borrowers execute and deliver this Agreement to Agent, and
(b) an annual facility fee on the Committed Revolving Line in the amount of $18,750 shall be
payable on each anniversary of the Effective Date hereafter so long as SVB has a commitment to make
Advances hereunder;

     (c) Usage Fee. Borrowers will pay to Agent, for the benefit of SVB, a usage fee,
payable in arrears within 15 days of the end of each calendar quarter, in an amount equal to the
product of .08% times the per annum average Unused Balance. The term “Unused Balance” shall mean
the result of (i) the Committed Revolving Line minus (ii) the aggregate amount of all Advances, and
minus (iii) the face amount of all outstanding Letters of Credit (including drawn but unreimbursed
Letters of Credit); and

     (d) Bank Expenses. Borrowers will pay to Agent and to each Lender, without
duplication, all Bank Expenses (including reasonable attorney’s fees and expenses) incurred through
and after the Effective Date when due.

2.5 Additional Costs. If any law or regulation increases Lenders’ costs or reduces either
Lender’s income for any loan, Borrowers will pay such Lender the increase in cost or reduction in
income or additional expense.

2.6 Obligations of Lenders. Each Lenders’ obligations hereunder, including, but not
limited to, each Lender’s obligation to make Credit Extensions, are several, but not joint.
Notwithstanding either Lender acting as Agent hereunder, Borrowers shall not seek to receive
Advances from Key or Term Loan Advances from SVB.

3 CONDITIONS OF LOANS.

3.1 Conditions Precedent to Initial Credit Extension. Each Lender’s obligation to make the
initial Credit Extension is subject to the condition precedent that Agent receives the agreements,
documents and fees contemplated in this Agreement, including, if requested by Agent, a Consent of
Landlord from the landlord of each Borrower in the form attached as Exhibit E or such other form as
may be approved by Agent.

3.2 Conditions Precedent to all Credit Extensions. Each Lender’s obligations to make each
Credit Extension, including the initial Credit Extension, is subject to the following:

     (a) timely receipt of any Payment/Advance Form or Loan Supplement, as applicable; and

     (b) the representations and warranties in Section 5 must be materially true on the date of the
Payment/Advance Form or Loan Supplement, as applicable, and on the effective date of each Credit
Extension and no Event of Default may have occurred and be continuing, or result from the Credit
Extension. Each Credit Extension is Borrower’s representation and warranty on that date that
the representations and warranties in Section 5 remain materially true.

5

 

4 CREATION OF SECURITY INTEREST.

4.1 Grant of Security Interest. Each Borrower grants Agent, for the benefit of Lenders, a
continuing security interest in all presently existing and later acquired Collateral to secure all
Obligations and performance of each of such Borrower’s duties under the Loan Documents. Except for
Permitted Liens, any security interest will be a first priority security interest in the
Collateral. Any Lender may place a “hold” on any deposit account pledged as Collateral. Except as
disclosed on Schedule 4.1, each Borrower is not a party to, nor is bound by, any license or other
agreement with respect to which such Borrower is the licensee that prohibits or otherwise restricts
such Borrower from granting a security interest in such Borrower’s interest in such license or
agreement or any other property. Such Borrower will provide written notice to Agent within ten
(10) days of entering or becoming bound by any such license or other agreement (other than
over-the-counter software that is commercially available to the public). Each Borrower shall take
such steps as Agent reasonably requests to obtain the consent of, authorization by, or waiver by,
any person whose consent or waiver is necessary for such licenses or contract rights to be deemed
“Collateral” and for Agent, for the benefit of Lenders, to have a security interest in it that
might otherwise be restricted or prohibited by law or by the terms of any such license or agreement
(such consent or authorization may include a licensor’s agreement to a contingent assignment of the
license to Agent, for the benefit of Lenders if Agent determines such agreement necessary in its
good faith judgment), whether now existing or entered into in the future. If this Agreement is
terminated, Agent’s lien and security interest in the Collateral will continue until Borrowers
fully satisfy their Obligations.

4.2 Authorization to File. Each Borrower authorizes Agent to file financing statements
without notice to such Borrower, with all appropriate jurisdictions, as Agent deems appropriate, in
order to perfect or protect Agent’s interest in the Collateral.

5 REPRESENTATIONS AND WARRANTIES. Each Borrower represents and warrants as follows:

5.1 Due Organization and Authorization. Each Borrower and each Subsidiary is duly existing
and in good standing in its state of formation and qualified and licensed to do business in, and in
good standing in, any state in which the conduct of its business or its ownership of property
requires that it be qualified except where failure to be so qualified could not be reasonably
expected to cause a Material Adverse Change.

     The execution, delivery and performance of the Loan Documents have been duly authorized, and
do not conflict with any Borrower’s formation documents, nor constitute an event of default under
any material agreement by which such Borrower is bound. Each Borrower is not in default under any
agreement to which or by which it is bound in which the default could cause a Material Adverse
Change.

5.2 Collateral. Each Borrower has good title to the Collateral, free of Liens except
Permitted Liens, or Borrower has Rights to each asset that is Collateral. Borrowers have no other
deposit account, other than the deposit accounts with SVB or otherwise described on the Schedule.
The Accounts are bona fide, existing obligations, and the service or property has been performed or
delivered to the account debtor or its agent for immediate shipment to and acceptance by the
account debtor. The Collateral is not in the possession of any third party bailee (such as at a
warehouse). In the event that any Borrower, after the date hereof, intends to store or otherwise
deliver the Collateral to such a bailee, then such Borrower will receive the prior written consent
of Agent and such bailee must acknowledge in writing that the bailee is holding such Collateral for
the benefit of Agent. No Borrower has notice of any actual or imminent Insolvency Proceeding of any
account debtor whose accounts are an Eligible Account in any Borrowing Base Certificate. All
Inventory is in all material respects of good and marketable quality, free from material defects.
Borrower is the sole owner of the Intellectual Property, except for non-exclusive licenses granted
to its customers in the ordinary course of business. Each Patent is valid and enforceable and no
part of the Intellectual Property has been judged invalid or unenforceable, in whole or in part, and no claim has been made that any part of the Intellectual Property violates the rights
of any third party except to the extent such claim could not reasonably be expected to cause a
Material Adverse Change.

6

 

5.3 Litigation. Except as shown in the Schedule, there are no actions or proceedings
pending or, to the knowledge of Borrower’s Responsible Officers, threatened by or against any
Borrower or any Subsidiary in which a likely adverse decision could reasonably be expected to cause
a Material Adverse Change.

5.4 No Material Adverse Change in Financial Statements. All consolidated financial
statements for Borrower delivered to Agent fairly present in all material respects Borrowers’
consolidated financial condition and Borrowers’ consolidated results of operations. There has not
been any material deterioration in Borrowers’ consolidated financial condition since the date of
the most recent financial statements submitted to Agent.

5.5 Solvency. As determined on a consolidated basis, the fair salable value of Borrowers’
assets (including goodwill minus disposition costs) exceeds the fair value of its liabilities;
Borrowers are not left with unreasonably small capital after the transactions in this Agreement;
and Borrowers are able to pay their debts (including trade debts) as they mature.

5.6 Regulatory Compliance. No Borrower is an “investment company” or a company
“controlled” by an “investment company” under the Investment Company Act. Borrower is not engaged
as one of its important activities in extending credit for margin stock (under Regulations X, T and
U of the Federal Reserve Board of Governors). Each Borrower has complied with the Federal Fair
Labor Standards Act. No Borrower has violated any laws, ordinances or rules, the violation of
which could cause a Material Adverse Change. None of any Borrower’s or any Subsidiary’s properties
or assets has been used by such Borrower or such Subsidiary or, to the best of Borrowers’
knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any
hazardous substance other than legally. Each Borrower and each Subsidiary has timely filed all
required tax returns and paid, or made adequate provision to pay, all material taxes. Each
Borrower and each Subsidiary has obtained all consents, approvals and authorizations of, made all
declarations or filings with, and given all notices to, all government authorities that are
necessary to continue its business as currently conducted.

5.7 Subsidiaries. Except for the Subsidiaries disclosed in Borrower’s most recent Form
10-KSB filed with the Securities and Exchange Commission (“SEC”), No Borrower owns any stock,
partnership interest or other equity securities except for Permitted Investments.

5.8 Full Disclosure. No written representation, warranty or other statement of a Borrower
in any certificate or written statement given to any Lender or to Agent contains any untrue
statement of a material fact or omits to state a material fact necessary to make the statements
contained in the certificates or statements not misleading.

5.9 Use of Proceeds. Borrowers shall use the proceeds of the Credit Extensions solely to
fund acquisitions, working capital and general business requirements and not for personal, family,
household, or agricultural purposes.

6 AFFIRMATIVE COVENANTS. Borrowers will do all of the following for so long as any Lender
has an obligation to lend, or there are outstanding Obligations:

6.1 Government Compliance. Borrowers will maintain their legal existence and good standing
in their respective jurisdiction of formation and maintain qualification in each jurisdiction in
which the failure to so qualify could reasonably be expected to cause a Material Adverse Change.
Each Borrower will comply, with all laws, ordinances and regulations to which it is subject,
noncompliance with which could reasonably be expected to cause a Material Adverse Change.
Notwithstanding the foregoing, Borrowers and any Subsidiary may merge pursuant to Section 7.3.

6.2 Financial Statements, Reports, Certificates.

     (a) Borrowers will deliver to Agent: (i) as soon as available, but no later than 30 days
after the last day of each month, a company prepared consolidated balance sheet and income
statement covering

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Borrowers’ consolidated operations during the period, in a form acceptable to
Agent and certified by a Responsible Officer; (ii) as soon as available, but no later than 120 days
after the end of Borrowers’ fiscal year, audited consolidated financial statements prepared under
GAAP, consistently applied, together with an unqualified opinion on the financial statements from
an independent certified public accounting firm acceptable to Agent; (iii) within 15 days of
filing, copies of all statements, reports and notices made available to Borrowers’ security holders
or to any holders of Subordinated Debt, excluding any reports filed with the SEC; (iv) a prompt
report of any legal actions pending or threatened against any Borrower or any Subsidiary that could
result in damages or costs to a Borrower or any Subsidiary of $100,000 or more; (v) prompt notice
of any material change in the composition of the Intellectual Property, including any subsequent
ownership right of such Borrower in or to any Copyright, Patent or Trademark not shown in any
intellectual property security agreement between Borrower and Agent, for the benefit of Lenders, or
knowledge of an event that materially adversely affects the value of the Intellectual Property; and
(vi) a prompt report of any complaints filed with the Texas Workforce Commission (“TWC”) against
Borrower in the aggregate of $100,000 or more; and (vii) budgets, sales projections, operating
plans or other financial information Agent or any Lender reasonably request.

     (b) Within 30 days after the last day of each month, Borrowers will deliver to Agent a
Borrowing Base Certificate signed by a Responsible Officer in the form of Exhibit D, with aged
listings of accounts receivable and accounts payable.

     (c) Within 30 days after the last day of each month, Borrowers will deliver to Agent with the
monthly financial statements a Compliance Certificate signed by a Responsible Officer in the form
of Exhibit D.

     (d) Allow Agent to audit Borrower’s Collateral at Borrowers’ expense. Such audits will be
conducted no more often than once every 12 months unless an Event of Default has occurred and is
continuing.

6.3 Inventory; Returns. Borrowers will keep all Inventory in good and marketable
condition, free from material defects. Returns and allowances between each Borrower and its
account debtors will follow such Borrower’s customary practices as they exist at the Effective
Date. Borrowers must promptly notify Agent of all returns, recoveries, disputes and claims, net of
credits from suppliers, that involve more than $100,000.

6.4 Taxes. Borrowers will make, and cause each Subsidiary to make, timely payment of all
material federal, state, and local taxes or assessments, unless such taxes or assessments are being
disputed by Borrower in good faith and Borrower maintains adequate reserves in accordance with
GAAP, and will deliver to Agent, on demand, appropriate certificates attesting to the payment.

6.5 Insurance. Each Borrower will keep its business and the Collateral insured for risks
and in amounts, as Agent requests. Insurance policies will be in a form, with companies, and in
amounts that are reasonably satisfactory to Agent. All property policies will have a lender’s loss
payable endorsement showing Agent, for the benefit of Lenders, as an additional loss payee and all
liability policies will show the each Agent, for the benefit of Lenders, as an additional insured
and all policies will provide that the insurer must give Agent at least 20 days notice before
canceling its policy. At Agent’s request, Borrowers will deliver certified copies of policies and
evidence of all premium payments. So long as no Event of Default has occurred and is continuing,
Borrowers shall have the option of applying the proceeds of any casualty policy to the replacement
or repair of destroyed or damaged property; provided that, after the occurrence and during the
continuance of an Event of Default, all proceeds payable under any such casualty policy shall, at
the option of Agent, be payable to Agent, for the benefit of Lenders, on account of the
Obligations.

6.6 Primary Accounts. Borrowers will maintain their primary depository and operating
accounts with SVB, which shall constitute not less than 85% of Borrower’s total cash, cash
equivalents and investment accounts. At SVB’s request, Borrowers will deliver account control
agreements on SVB’s standard form from each financial institution at which any Borrower maintains
an account.

6.7 Financial Covenants. Borrowers will maintain:

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     (a) Debt Service Coverage. As of the last day of each month and at any time Borrowers
have any outstanding obligation under the Committed Term Loan Line, a ratio of earnings after tax
plus interest, depreciation and amortization for the specified period on an annualized basis to
current maturities of long term debt and capitalized leases, plus interest expense annualized of at
least 1.50 to 1.00. The debt service coverage ratio shall be computed on a trailing three month
basis. The Debt Service Coverage ratio shall exclude any maturities on the Revolving Line.

     (b) Liquidity Coverage. As of the last day of each month, ratio of (i) unrestricted
cash (and equivalents) on deposit with SVB, plus the aggregate amount of all Eligible Accounts, and
minus the aggregate principal amount of all outstanding Advances, divided by (ii) the aggregate
amount of all outstanding Term Loan Advances hereunder plus the aggregate amount of all outstanding
Term Loan Advances under the Existing Term Loan of not less than 0.75 to 1.00.

     (c) Debt to EBITDA Ratio. As of the last day of each quarter and as tested on a
trailing 12 month basis, Borrowers will maintain a ratio of the aggregate amount of all Obligations
to Borrowers’ consolidated earnings before interest expense, income taxes, depreciation,
amortization of intangible assets and other non-cash charges, including, but not limited to, stock
option and restricted stock compensation expenses (“EBITDA”) made to Borrowers’ income of no
greater than 2.50 to 1.00. For purposes of this Section 6.7(c), EBITDA shall include historical
results for the Person acquired in a Permitted Acquisition plus applicable Pro Forma Adjustments.

6.8 Registration of Intellectual Property Rights. Each Borrower will register with the
United States Patent and Trademark Office or the United States Copyright Office, to the extent that
its board of directors deems appropriate for the development of Borrower’s business, its
Intellectual Property and additional Intellectual Property rights developed or acquired including
revisions or additions with any product before the sale or licensing of the product to any third
party.

     Borrowers will (a) protect, defend and maintain the validity and enforceability of the
Intellectual Property and promptly advise Agent in writing of material infringements and (b) not
allow any Intellectual Property material to Borrowers’ business to be abandoned, forfeited or
dedicated to the public without Agent’s written consent.

6.9 Further Assurances. Borrowers will execute any further instruments and take further
action as Agent reasonably requests to perfect or continue Agent’s security interest in the
Collateral or to effect the purposes of this Agreement.

6.10 Intentionally Omitted.

6.11 Permitted Acquisitions. Promptly following any Permitted Acquisition, but in no event
later than thirty (30) days following such Permitted Acquisition, Borrowers shall deliver to Agent:

     (a) the original stock certificates or ownership certificates for all of the capital stock
purchased by Borrower or for any entity formed by Borrower in connection with an asset purchase in
such Permitted Acquisition, and an executed, but blank and undated, stock power certificate in the
form attached hereto as Exhibit G for each certificate of capital stock; and

     (b) a joinder agreement in the form attached hereto as Exhibit H, whereby the newly acquired
Person shall agree to become a Borrower under this Agreement and the Loan Documents, and shall
grant to each Lender a continuing security interest in the Collateral.

6.12 Permitted Acquisitions Financial Covenant. As soon as available, but no later than
thirty (30) days after the last day of the month during which the Acquisition Covenant Date occurs,
Borrowers shall deliver to Agent, with respect to each Permitted Acquisition in connection with
which any Lender has made a Credit Extension hereunder, evidence satisfactory to Agent that the
Person acquired in such Permitted Acquisition shall have a minimum Net Income as of the Acquisition
Covenant Date of no less than one dollar ($1.00),

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after giving effect to Pro Forma Adjustments. In the event that Borrower fails to deliver the evidence required in this Section 6.12 or the Person
so acquired fails to satisfy the Net Income requirements of this Section 6.12 within the time
allotted herein, such failure shall not constitute an Event of Default hereunder, but Borrower
shall repay to Agent, for the benefit of Lenders, immediately, but no later than three (3) days
after the last day of the month during which the Acquisition Covenant Date occurs, all Credit
Extensions made hereunder in connection with such Permitted Acquisition. Notwithstanding anything
contained herein to the contrary, this Section 6.12 shall not apply to any Permitted Acquisition
for which no Credit Extensions were made by Lenders.

7 NEGATIVE COVENANTS.

     Borrowers will not do any of the following without the Lenders’ prior written consent, which
will not be unreasonably withheld, for so long as any Lender has an obligation to lend or there are
any outstanding Obligations:

7.1 Dispositions. Convey, sell, lease, transfer or otherwise dispose of (collectively
“Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or
property, except for Transfers (a) of Inventory in the ordinary course of business; (b) of
non-exclusive licenses and similar arrangements for the use of the property of a Borrower or its
Subsidiaries in the ordinary course of business; or (c) of worn-out or obsolete Equipment.

7.2 Changes in Business, Ownership, Management or Business Locations. Engage in or permit
any of its Subsidiaries to engage in any business other than the businesses currently engaged in by
Borrowers or reasonably related thereto or have a material change in its ownership of greater than
25% (other than by the sale of a Borrower’s equity securities in a public offering or private
placement, including in connection with an acquisition) or in the Chief Executive Officer or
President of Perficient, Inc. No Borrower will, without at least 30 days prior written notice,
relocate its chief executive office. Borrower will promptly notify Agent of any new offices or
business locations in which such Borrower maintains or stores over $5,000 in any Borrower’s assets
or property.

7.3 Mergers or Acquisitions. Merge or consolidate, or permit any of its Subsidiaries to
merge or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to
acquire, all or substantially all of the capital stock or property of another Person, except where
no Event of Default has occurred and is continuing or would result from such action during the term
of this Agreement. Any Subsidiary, including, without limitation any Subsidiary that is a Borrower,
may merge or consolidate into another Subsidiary or into a Borrower.

7.4 Indebtedness. Create, incur, assume, or be liable for any Indebtedness, or permit any
Subsidiary to do so, other than Permitted Indebtedness.

7.5 Encumbrance. Create, incur, or allow any Lien on any of its property, or assign or
convey any right to receive income, including the sale of any Accounts, or permit any of its
Subsidiaries to do so, except for Permitted Liens, or permit any Collateral not to be subject to
the first priority security interest granted herein, subject to Permitted Liens.

7.6 Investments; Distributions. Directly or indirectly acquire or own any Person, or make
any Investment in any Person, other than Permitted Investments and Permitted Acquisitions, or
permit any of its Subsidiaries to do so. Pay any dividends or make any distribution or payment or
redeem, retire or purchase any capital stock, except repurchases of capital stock issued pursuant
to any stock incentive plans at the original price issued to the recipient under any such plan.

7.7 Transactions with Affiliates. Directly or indirectly enter into or permit to exist any
material transaction with any Affiliate of Borrower except for transactions that are in the
ordinary course of such Borrower’s business, upon fair and reasonable terms that are no less
favorable to such Borrower than would be obtained in an arm’s length transaction with a
nonaffiliated Person.

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7.8 Subordinated Debt. Make or permit any payment on any Subordinated Debt, except under
the terms of the Subordinated Debt, or amend any provision in any document relating to the
Subordinated Debt, without Agent’s prior written consent.

7.9 Compliance. Become an “investment company” or a company controlled by an “investment
company,” under the Investment Company Act of 1940 or undertake as one of its important activities
extending credit to purchase or carry margin stock, or use the proceeds of any Credit Extension for
that purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or
Prohibited Transaction, as defined in ERISA, to occur; fail to comply with the Federal Fair Labor
Standards Act or violate any other law or regulation, if the violation could reasonably be expected
to have a material adverse effect on Borrower’s business or operations or could reasonably be
expected to cause a Material Adverse Change, or permit any of its Subsidiaries to do so.

8 EVENTS OF DEFAULT. Any one of the following is an Event of Default:

8.1 Payment Default. If Borrowers fail to pay any of the Obligations within 3 days after
their due date. During the additional period the failure to cure the default is not an Event of
Default (but no Credit Extensions will be made during the cure period);

8.2 Covenant Default. If any Borrower (a) does not perform any obligation in Sections 6.4
or 6.7, or violates any covenant in Article 7 (for which failures or violations there are no grace
or cure periods) or (b) does not perform or observe any other material term, condition or covenant
in this Agreement, any Loan Documents, or in any agreement between Borrowers and Agent or any
Lender and as to any default under a term, condition or covenant that can be cured, has not cured
the default within 15 days after it occurs, or if the default cannot be cured within 15 days or
cannot be cured after Borrowers’ attempts in the 15 day period, and the default may be cured within
a reasonable time, then Borrowers have an additional period, (of not more than an additional 30
days) to attempt to cure the default. During the additional period the failure to cure the default
is not an Event of Default (but no Credit Extensions will be made during the cure period);

8.3 Material Adverse Change. The occurrence of (a) a material impairment in the perfection
or priority of Agent’s security interest in the Collateral or in the aggregate value of such
Collateral which is not covered by adequate insurance occurs; (b) a material adverse change in the
business, operations, or condition (financial or otherwise) of Borrowers occurs; or (c) a material
impairment in the financial ability of Borrowers to repay the Obligations when they become due (a
“Material Adverse Change”);

8.4 Attachment. (a) If any material portion of Borrowers’ assets is attached, seized,
levied on, or comes into possession of a trustee or receiver and the attachment, seizure or levy is
not removed in 10 days; (b) if a Borrower is enjoined, restrained, or prevented by court order from
conducting a material part of its business; (c) if a judgment or other claim becomes a Lien on a
material portion of a Borrower’s assets; or (d) if a notice of lien, levy, or assessment is filed
against any Borrower’s assets by any government agency and not paid within 10 days after such
Borrower receives notice. These are not Events of Default if stayed or if a bond is posted pending
contest by Borrowers (but no Credit Extensions will be made during the cure period);

8.5 Insolvency. (a) if a Borrower becomes insolvent; (b) if a Borrower begins an
Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against a Borrower and not
dismissed or stayed within 30 days (but no Credit Extensions will be made before any Insolvency
Proceeding is dismissed);

8.6 Other Agreements. If there is a default in any agreement between a Borrower and a
third party that gives the third party the right to accelerate any Indebtedness exceeding $100,000
or that could cause a Material Adverse Change;

8.7 Judgments. If a money judgment(s) in the aggregate of at least $100,000 is rendered
against a Borrower and is unsatisfied and unstayed for 15 days (but no Credit Extensions will be
made before the judgment is stayed or satisfied); or

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8.8 Misrepresentations. If a Borrower or any Person acting for a Borrower makes any
material misrepresentation or material misstatement now or later in any warranty or representation
in this Agreement or in any writing delivered to Agent or to Lenders or to induce Lenders to enter
this Agreement or any Loan Document.

9 BANK’S RIGHTS AND REMEDIES.

9.1 Rights and Remedies. When an Event of Default occurs and continues Lenders, or Agent
pursuant to the instructions of Lenders, may, without notice or demand, do any or all of the
following:

     (a) Declare all Obligations immediately due and payable (but if an Event of Default described
in Section 8.5 occurs all Obligations are immediately due and payable without any action by Agent
or Lenders);

     (b) Stop advancing money or extending credit for Borrowers’ benefit under this Agreement or
under any other agreement between Borrowers and Agent or Lenders;

     (c) Settle or adjust disputes and claims directly with account debtors for amounts, on terms
and in any order that Lenders consider advisable;

     (d) Make any payments and do any acts it considers necessary or reasonable to protect its
security interest in the Collateral. Borrowers will assemble the Collateral if Agent or Lenders
request and make it available as Agent or Lenders designate. Agent or any Lender may enter
premises where the Collateral is located, take and maintain possession of any part of the
Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or
superior to its security interest and pay all expenses incurred. Each Borrower grants Agent and
each Lender a license to enter and occupy any of its premises, without charge, to exercise any of
Agent’s or Lender’s rights or remedies;

     (e) Apply to the Obligations any (i) balances and deposits of Borrowers it holds, or (ii) any
amount held by Lenders owing to or for the credit or the account of Borrowers;

     (f) Ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for
sale, and sell the Collateral. Agent, for the benefit of Lenders, is granted a non-exclusive,
royalty-free license or other right to use, without charge, any Borrower’s labels, Patents,
Copyrights, Mask Works, rights of use of any name, trade secrets, trade names, Trademarks, service
marks, and advertising matter, or any similar property as it pertains to the Collateral, in
completing production of, advertising for sale, and selling any Collateral and, in connection with
Agent’s exercise of its rights under this Section, any Borrower’s rights under all licenses and all
franchise agreements inure to Agent’s benefit;

     (g) Dispose of the Collateral according to the Code; and

     (h) Transfer this Agreement and all of Borrowers’ Obligations hereunder to SVB’s Specialty
Finance Division, at which time Borrowers agree, if SVB shall so require, to amend and restate the
terms of this Agreement on documents provided by SVB’s Specialty Finance Division.

9.2 Power of Attorney. Effective only when an Event of Default occurs and continues, each
Borrower irrevocably appoints Agent, for the benefit of Lenders, as its lawful attorney to: (a)
endorse such Borrower’s name on any checks or other forms of payment or security; (b) sign such
Borrower’s name on any invoice or bill of lading for any Account or drafts against account debtors,
(c) make, settle, and adjust all claims under such Borrower’s insurance policies; (d) settle and
adjust disputes and claims about the Accounts directly with account debtors, for amounts and on
terms Agent determine reasonable; and (e) transfer the Collateral into the name of Agent, Lender or
a third party as the Code permits. Agent may exercise the power of attorney to sign such
Borrower’s name on any documents necessary to perfect or continue the perfection of any security
interest regardless of whether an Event of Default has occurred. Agent’s appointment as such
Borrower’s attorney in fact, and all of Agent’s rights and powers, coupled with an interest, are
irrevocable until all

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Obligations have been fully repaid and performed and each Lenders’ obligation
to provide Credit Extensions terminates.

9.3 Accounts Collection. When an Event of Default occurs and continues, Agent may notify
any Person owing Borrowers money of Lenders’ security interest in the funds and verify the amount
of the Account. Borrowers must collect all payments in trust for Lenders and, if requested by
Agent, immediately deliver the payments to Agent or Lenders in the form received from the account
debtor, with proper endorsements for deposit.

9.4 Bank Expenses. If any Borrower fails to pay any amount or furnish any required proof
of payment to third persons Agent or any Lender may make all or part of the payment or obtain
insurance policies required in Section 6.5, and take any action under the policies Agent or such
Lender deems prudent. Any amounts paid by Agent or such Lender are Bank Expenses and immediately
due and payable, bearing interest at the then applicable rate and secured by the Collateral. No
payments by Agent or such Lender are deemed an agreement to make similar payments in the future or
Lenders’ waiver of any Event of Default.

9.5 Agent’s Liability for Collateral. If Agent complies with reasonable banking practices,
it is not liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage
to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of
any carrier, warehouseman, bailee, or other person. Borrowers bear all risk of loss, damage or
destruction of the Collateral.

9.6 Remedies Cumulative. Agent’s and Lenders’ rights and remedies under this Agreement,
the Loan Documents, and all other agreements are cumulative. Agent, for the benefit of Lenders,
and Lenders have all rights and remedies provided under the Code, by law, or in equity. Agent’s or
Lenders’ exercise of one right or remedy is not an election, and Agent’s or Lenders’ waiver of any
Event of Default is not a continuing waiver. Agent’s or Lenders’ delay is not a waiver, election,
or acquiescence. No waiver is effective unless signed by Agent and each Lender and then is only
effective for the specific instance and purpose for which it was given.

9.7 Demand Waiver. Each Borrower waives demand, notice of default or dishonor, notice of
acceleration, notice of intent to accelerate, notice of payment and nonpayment, notice of any
default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of
accounts, documents, instruments, chattel paper, and guaranties held by any Lender on which such
Borrower is liable.

10 NOTICES AND WAIVERS.

10.1 Notices. Unless otherwise provided in this Agreement, all notices or demands by any
party relating to this Agreement or any other agreement entered into in connection herewith 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 a recognized
overnight delivery service, certified mail, postage prepaid, return receipt requested, or by telefacsimile to Borrowers or to
Agent or Lenders, as the case may be, at its addresses set above.

10.2 Subrogation and Similar Rights. Notwithstanding any other provision of this Agreement
or any other document related to this Agreement, until payment to Agent, for the benefit of
Lenders, in full and performance of all Obligations, each Borrower irrevocably waives all rights
that it may have at law or in equity (including, without limitation, any law subrogating Borrowers
to the rights of Agent or Lenders under this Agreement) to seek contribution, indemnification, or
any other form of reimbursement from any other Borrower, or any other entity now or hereafter
primarily or secondarily liable for any of the Obligations, for any payment made by Borrowers with
respect to the Obligations in connection with this Agreement or otherwise and all rights that it
might have to benefit from, or to participate in, any security for the Obligations as a result of
any payment made by Borrowers with respect to the Obligations in connection with this Agreement or
otherwise. Any agreement providing for indemnification, reimbursement or any other arrangement
prohibited under this Section 10.2 shall be null and void. If any payment is made to a Borrower in
contravention of this Section 10.2, such Borrower shall hold such payment in trust for Agent and
Lenders and such payment shall be promptly delivered to Agent, for the benefit of Lenders, for
application to the Obligations, whether matured or unmatured.

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10.3 Waivers of Notice. Each Borrower waives notice of acceptance hereof; notice of the
existence, creation or acquisition of any of the Obligations; notice of an Event of Default; notice
of the amount of the Obligations outstanding at any time; notice of intent to accelerate; notice of
acceleration; notice of any adverse change in the financial condition of any other Borrower or of
any other fact that might increase such Borrower’s risk; presentment for payment; demand; protest
and notice thereof as to any instrument; default; and all other notices and demands to which such
Borrower would otherwise be entitled. Each Borrower waives any defense arising from any defense of
any other Borrower, or by reason of the cessation from any cause whatsoever of the liability of any
other Borrower. Agent’s or Lenders’ failure at any time to require strict performance by any
Borrower of any provision of this Agreement shall not waive, alter or diminish any right of Agent
or Lenders thereafter to demand strict compliance and performance therewith. Nothing contained
herein shall prevent Agent, for the benefit of Lenders, or Lenders from foreclosing on the lien of
any deed of trust, mortgage or other security instrument, or exercising any rights available
thereunder, and the exercise of any such rights shall not constitute a legal or equitable discharge
of any Borrower. Each Borrower also waives any defense arising from any act or omission of Agent
or Lenders that changes the scope of such Borrower’s risks hereunder. Each Borrower hereby waives
any right to assert against Agent or Lenders any defense (legal or equitable), setoff,
counterclaim, or claims that such Borrower individually may now or hereafter have against another
Borrower or any other entity liable to a Borrower with respect to the Obligations in any manner or
whatsoever until the Obligations are paid in full to Lenders.

10.4 Subrogation Defenses. Each Borrower waives the benefits, if any, of any statutory or
common law rule that may permit such Borrower to assert any defenses of a surety or guarantor, or
that may give a borrower the right to require a senior creditor to marshal assets, and such
Borrower agrees that it shall not assert any such defenses or rights.

10.5 Right to Settle, Release.

     (a) The liability of Borrowers hereunder shall not be diminished by (i) any agreement,
understanding or representation that any of the Obligations is or was to be guaranteed by another
entity or secured by other property, or (ii) any release or unenforceability, whether partial or
total, or rights, if any, which Borrowers may now or hereafter have against any other entity,
including another Borrower, or property with respect to any of the Obligations.

     (b) Without notice to any Borrower and without affecting the liability of any Borrower
hereunder, Agent, for the benefit of Lenders, may (i) compromise, settle, renew, extend the time
for payment, change the manner or terms of payment, discharge the performance of, decline to
enforce, or release all or any of the Obligations with respect to a Borrower, (ii) grant other
indulgences to a Borrower in respect of the Obligations, (iii) modify in any manner any documents,
relating to the Obligations with respect to a Borrower, (iv) release, surrender or exchange any deposits or other property
securing the Obligations, whether pledged by a Borrower or any other entity, or (v) compromise,
settle renew, or extend the time for payment, discharge the performance of, decline to enforce, or
release all or any obligations of any guarantor, endorser or other entity who is now or may
hereafter be liable with respect to any of the Obligations.

11 CHOICE OF LAW , VENUE AND JURY TRIAL WAIVER.

     Texas law governs the Loan Documents without regard to principles of conflicts of law as if
performed entirely within the State of Texas by Texas residents. Borrowers, Agent and Lenders each
submit to the exclusive jurisdiction of the State and Federal courts in Travis County, Texas.

     BORROWERS, AGENT AND LENDERS EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF
ACTION ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING
CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH
PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL AND, BY
ITS EXECUTION OF THIS AGREEMENT CONFIRMS THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL
RIGHTS FOLLOWING CONSULTATION WITH COUNSEL.

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12 GENERAL PROVISIONS.

12.1 Successors and Assigns. This Agreement binds and is for the benefit of the successors
and permitted assigns of each party. Borrowers may not assign this Agreement or any rights or
Obligations under it without Lenders’ prior written consent which may be granted or withheld in
each Lender’s discretion. Each Lender has the right, without the consent of or notice to
Borrowers, to sell, transfer, negotiate, or grant participation in all or any part of, or any
interest in, such Lender’s obligations, rights and benefits under this Agreement, the Loan
Documents or any related agreement.

12.2 Indemnification. EACH BORROWER WILL INDEMNIFY, DEFEND AND HOLD HARMLESS AGENT, LENDERS
AND THEIR OFFICERS, EMPLOYEES AND AGENTS AGAINST: (A) ALL OBLIGATIONS, DEMANDS, CLAIMS, AND
LIABILITIES ASSERTED BY ANY OTHER PARTY IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED BY THE
LOAN DOCUMENTS; AND (B) ALL LOSSES OR BANK EXPENSES INCURRED, OR PAID BY AGENT OR ANY LENDER FROM,
FOLLOWING, OR CONSEQUENTIAL TO TRANSACTIONS BETWEEN LENDERS AND BORROWERS (INCLUDING REASONABLE
ATTORNEYS’ FEES AND EXPENSES), EXCEPT FOR LOSSES CAUSED BY AGENT’S OR ANY LENDER’S GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT. THE FOREGOING INDEMNITY BINDS SUCH BORROWER TO INDEMNIFY AGENT, LENDERS AND
THEIR OFFICERS, EMPLOYEES AND AGENTS FOR ITS OWN NEGLIGENCE (WHETHER SOLE, COMPARATIVE,
CONTRIBUTORY OR OTHERWISE, BUT NOT GROSS NEGLIGENCE OR WILLFUL MISCONDUCT) AND THAT OF ITS
OFFICERS, EMPLOYEES, AGENTS AND CONTRACTORS, AS WELL AS ANY LIABILITY ARISING BY VIRTUE OF ANY SUCH
PERSON’S STRICT LIABILITY.

12.3 Time of Essence. Time is of the essence for the performance of all obligations in
this Agreement.

12.4 Severability of Provision. Each provision of this Agreement is severable from every
other provision in determining the enforceability of any provision.

12.5 Amendments in Writing, Integration. All amendments to this Agreement must be in
writing signed by both Agent, Lenders and Borrowers. This Agreement and the Loan Documents
represent the entire agreement about this subject matter, and supersedes prior or contemporaneous
negotiations or agreements. All prior or contemporaneous agreements, understandings,
representations, warranties, and negotiations between the parties about the subject matter of this
Agreement and the Loan Documents merge into this Agreement and the Loan Documents.

12.6 Counterparts. This Agreement may be executed in any number of counterparts and by
different parties on separate counterparts, each of which, when executed and delivered, are an
original, and all taken together, constitute one Agreement.

12.7 Survival. All covenants, representations and warranties made in this Agreement
continue in full force while any Obligations remain outstanding. The obligations of Borrowers in
Section 12.2 to indemnify Agent and Lenders will survive until all statutes of limitations for
actions that may be brought against Agent or any Lender have run.

12.8 Confidentiality. In handling any confidential information, Agent and Lenders will
exercise the same degree of care that it exercises for its own proprietary information, but
disclosure of information may be made (a) to Agent’s or Lenders’ subsidiaries or affiliates in
connection with their business with Borrowers, (b) to prospective transferees or purchasers of any
interest in the loans (provided, however, Agent and Lenders shall use commercially reasonable
efforts in obtaining such prospective transferee or purchasers agreement of the terms of this
provision), (c) as required by law, regulation, subpoena, or other order, (d) as required in
connection with Agent’s or any Lender’s examination or audit and (e) as Agent or any Lender
considers appropriate in exercising remedies under this Agreement. Confidential information does
not include information that either: (i) is in the public domain or in Agent’s or Lenders’
possession when disclosed to Agent or such Lender, or becomes part of the public domain after
disclosure to Agent or any Lender; or (ii) is disclosed to Agent or any Lender by a third party, if
Agent or such Lender, as the case may be, does not know that the third party is prohibited from
disclosing the information. Notwithstanding anything contained

15

 

herein to the contrary, the term “confidential information” shall not include, and Agent and Lenders may disclose without limitation
of any kind, any information with respect to the “tax treatment” and “tax structure” (in each case
within the meaning of Treasury Regulation Section 1.6011-4) of the transactions contemplated hereby
and all materials of any kind (including opinions or other tax analysis) that are provided to Agent
or Lenders relating to such tax treatment or tax structure.

12.9 Attorneys’ Fees, Costs and Expenses. In any action or proceeding between Borrowers
and Agent or any Lender arising out of the Loan Documents, the prevailing party will be entitled to
recover its reasonable attorneys’ fees and other costs and expenses incurred, in addition to any
other relief to which it may be entitled, whether or not a lawsuit is filed.

12.10 Qualified Commercial Loan Certification. Each Borrower hereby certifies to Agent
and the Lenders that:

     (a) Such Borrower has been advised by Agent to seek the advice of an attorney and accountant
in connection with the loans evidenced by this Agreement; and

     (b) Such Borrower has had the opportunity to seek the advice of an attorney and accountant of
such Borrower’s choice in connection with the loans evidenced by this Agreement.

     (c) The loans contemplated herein are made solely for business purposes and are not for
personal, family, household or agricultural purposes.

12.11 Syndication Agent. None of the Lenders or other persons identified herein as a
“syndication agent” shall have any right, power, obligation, liability, responsibility or duty
under this Agreement other than, in the case of such lenders, those applicable to all Lenders as
such. Without limiting the foregoing, none of Lenders or other persons so identified as a
“syndication agent” shall have or be deemed to have any fiduciary relationship with any Lenders.
Each Lender acknowledges that it has not relied, and will not rely, on any of Lenders or other
persons so identified in deciding to enter into this Agreement or in taking or not taking action
hereunder.

13 DEFINITIONS. In this Agreement:

13.1 Definitions.

     “Accounts” are all existing and later arising accounts, contract rights, and other obligations
owed to a Borrower in connection with its sale or lease of goods (including licensing software and
other technology) or provision of services, all credit insurance, guaranties, other security and
all merchandise returned or reclaimed by such Borrower and such Borrower’s Books relating to any of
the foregoing.

     “Acquisition Covenant Date” means the date ninety (90) days after any Permitted Acquisition
Date.

     “Advance” or “Advances” is a loan advance (or advances) under the Committed Revolving Line.

     “Affiliate” of a Person is a Person that owns or controls directly or indirectly the Person,
any Person that controls or is controlled by or is under common control with the Person, and each
of that Person’s senior executive officers, directors, partners and, for any Person that is a
limited liability company, that Person’s managers and members.

     “Bank Expenses” are all audit fees and expenses and reasonable costs or expenses (including
reasonable attorneys’ fees and expenses) for preparing, negotiating, administering, defending and
enforcing the Loan Documents (including appeals or Insolvency Proceedings).

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     “Basic Rate” is, as of the Funding Date, the per annum rate of interest (based on a year of
360 days) equal to the sum of (a) the U.S. Treasury note yield to maturity for a four-year term as
quoted in The Wall Street Journal on the day the Loan Supplement is prepared, plus (b) three and
one-quarter percent (3.25%).

     “Borrower’s Books” are all of a Borrower’s books and records including ledgers, records
regarding such Borrower’s assets or liabilities, the Collateral, business operations or financial
condition and all computer programs or discs or any equipment containing the information.

     “Borrowing Base” is the sum of (a) 80% of Eligible Accounts, plus (b) 80% of Unbilled Eligible
Accounts; provided, however, that SVB may lower the percentage of the Borrowing Base after
performing an audit of, and discovering a material adverse change to, Borrowers’ Collateral by
giving Borrower 10 days prior written notice. Notwithstanding anything contained herein to the
contrary, the amount of all Unbilled Eligible Accounts included in the Borrowing Base shall not
exceed 40% of the total Borrowing Base.

     “Business Day” is any day that is not a Saturday, Sunday or a day on which any Lender is
closed.

     “Code” is the Texas Business and Commerce Code.

     “Collateral” is the property described on Exhibit A.

     “Committed Revolving Line” is a Credit Extension of up to $15,000,000.

     “Committed Term Loan Line” is a Credit Extension of up to $10,000,000.

     “Contingent Obligation” is, for any Person, any direct or indirect liability, contingent or
not, of that Person for (a) any indebtedness, lease, dividend, letter of credit or other obligation
of another such as an obligation directly or indirectly guaranteed, endorsed, co-made, discounted
or sold with recourse by that Person, or for which that Person is directly or indirectly liable;
(b) any obligations for undrawn letters of credit for the account of that Person; and (c) all
obligations from any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement, or other agreement or
arrangement designated to protect a Person against fluctuation in interest rates, currency exchange
rates or commodity prices; but “Contingent Obligation” does not include endorsements in the
ordinary course of business. The amount of a Contingent Obligation is the stated or determined
amount of the primary obligation for which the Contingent Obligation is made or, if not
determinable, the maximum reasonably anticipated liability for it determined by the Person in good
faith; but the amount may not exceed the maximum of the obligations under the guarantee or other
support arrangement.

     “Copyrights” are all copyright rights, applications or registrations and like protections in
each work or authorship or derivative work, whether published or not (whether or not it is a trade
secret) now or later existing, created, acquired or held.

     “Credit Extension” is each Advance, Letter of Credit, Term Loan Advance or any other extension
of credit by Lenders for Borrowers’ benefit.

     “Current Liabilities” are the aggregate amount of Borrowers’ Total Liabilities which mature
within one (1) year.

     “Deferred Maintenance Revenue” is all amounts received in advance of performance under
maintenance contracts and not yet recognized as revenue.

     “Effective Date” is the date that the last Lender executes this Agreement, as evidenced by the
date below its signature block on the signature page of this Agreement.

     “Eligible Accounts” are Accounts in the ordinary course of a Borrower’s business that meet all
such Borrower’s representations and warranties in Section 5.2; but SVB may change
eligibility standards by giving

17

 

Borrowers 30 days prior written notice. Unless SVB agrees otherwise in writing, Eligible Accounts will not include:

     (a) Accounts that the account debtor has not paid within 90 days of invoice date;

     (b) Accounts for an account debtor, 50% or more of whose Accounts have not been paid within 90
days of invoice date;

     (c) Credit balances;

     (d) Accounts for an account debtor (other than IBM) whose total obligations to Borrower and
Affiliates exceed 25% of all Accounts and Accounts for IBM that exceed 40% of all Accounts, but
only to the extent of any such excess, unless Agent approves in writing;

     (e) Accounts for which the account debtor does not have its principal place of business in the
United States except for Eligible Foreign Accounts;

     (f) Accounts for which the account debtor is a federal, state or local government entity or
any department, agency, or instrumentality except for Accounts of the United States if the payee
has assigned its payment rights to SVB and the assignment has been acknowledged under the
Assignment of Claims Act of 1940 (31 U.S.C. 3727);

     (g) Accounts for which Borrowers owe the account debtor, but only up to the amount owed
(sometimes called “contra” accounts, accounts payable, customer deposits or credit accounts);

     (h) Accounts for demonstration or promotional equipment, or in which goods are consigned,
sales guaranteed, sale or return, sale on approval, bill and hold, or other terms if account
debtor’s payment may be conditional;

     (i) Accounts for which the account debtor is a Borrower’s Affiliate, officer, employee, or
agent;

     (j) Accounts in which the account debtor disputes liability or makes any claim and SVB
believes there may be a basis for dispute (but only up to the disputed or claimed amount), or if
the Account Debtor is subject to an Insolvency Proceeding, or becomes insolvent, or goes out of
business;

     (k) Accounts for which the account debtor paid using a credit card; and

     (l) Accounts for which SVB reasonably determines collection to be doubtful.

     “Eligible Foreign Accounts” are Accounts for which the account debtor does not have its
principal place of business in the United States but are: (a) covered by credit insurance
satisfactory to SVB, less any deductible; or (b) supported by letter(s) of credit acceptable to
SVB; (c) that SVB approves in writing, or (d) Accounts for which the principal place of business of
the account debtor is Canada and the aggregate amount of such Accounts does not exceed $400,000.

     “ERISA” is the Employment Retirement Income Security Act of 1974, and its regulations.

     “Funding Date” is any date on which an Term Loan Advance is made to or on account of Borrower.

     “GAAP” is generally accepted accounting principles.

     “Indebtedness” is (a) indebtedness for borrowed money or the deferred price of property or
services, such as reimbursement and other obligations for surety bonds and letters of credit, (b)
obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease
obligations and (d) Contingent Obligations.

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     “Insolvency Proceeding” is any proceeding by or against any Person under the United States
Bankruptcy Code, or any other bankruptcy or insolvency law, including assignments for the benefit
of creditors, compositions, extensions generally with its creditors, or proceedings seeking
reorganization, arrangement, or other relief.

     “Intellectual Property” is:

     (a) Copyrights, Trademarks, Patents, and Mask Works including amendments, renewals,
extensions, and all licenses or other rights to use and all license fees and royalties from the
use;

     (b) Any trade secrets and any Intellectual Property rights in computer software and computer
software products now or later existing, created, acquired or held;

     (c) All design rights which may be available to a Borrower now or later created, acquired or
held;

     (d) Any claims for damages (past, present or future) for infringement of any of the rights
above, with the right, but not the obligation, to sue and collect damages for use or infringement
of the intellectual property rights above; and

     (e) All proceeds and products of the foregoing, including all insurance, indemnity or warranty
payments.

     “Inventory” is present and future inventory in which a Borrower has any interest, including
merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and
finished products intended for sale or lease or to be furnished under a contract of service, of
every kind and description now or later owned by or in the custody or possession, actual or constructive, of
Borrower, including inventory temporarily out of its custody or possession or in transit and
including returns on any accounts or other proceeds (including insurance proceeds) from the sale or
disposition of any of the foregoing and any documents of title.

     “Investment” is any beneficial ownership of (including stock, partnership interest or other
securities) any Person, or any loan, advance or capital contribution to any Person.

     “Letter of Credit” and “Letters of Credit” are defined in Section 2.1.2.

     “Lien” is a mortgage, lien, deed of trust, charge, pledge, security interest or other
encumbrance.

     “Loan Documents” are, collectively, this Agreement, any note, or notes executed by Borrowers,
and any other present or future agreement between Borrowers and/or for the benefit of Agent or
Lenders in connection with this Agreement, all as amended, extended or restated.

     “Material Adverse Change” is defined in Section 8.3.

     “Mask Works” are all mask works or similar rights available for the protection of
semiconductor chips, now owned or later acquired.

     “Maximum Lawful Rate” is the maximum rate of interest and the term “Maximum Lawful Amount”
means the maximum amount of interest that is permissible under applicable state or federal laws for
the type of loan evidenced by the Loan Documents. If the Maximum Lawful Rate is increased by
statute or other governmental action after the Effective Date, then the new Maximum Lawful Rate
will be applicable to the payments from the effective date of the rate change, unless otherwise
prohibited by law.

     “Net Income” means for any period, such Person’s after-tax net income for such period on a
consolidated basis, as determined in accordance with GAAP.

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     “Obligations” are all debts, principal, interest, Bank Expenses and other amounts Borrowers
owe Lenders now or later, including Letters of Credit and including interest accruing after
Insolvency Proceedings begin and debts, liabilities, or obligations of Borrowers assigned to any
Lender.

     “Patents” are patents, patent applications and like protections, including improvements,
divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same.

     “Payment/Advance Form” is defined in Section 2.1.1.

     “Permitted Acquisition” means an acquisition of all or substantially all of the capital stock
or property of another Person, as permitted by Section 7.3 of this Agreement.

     “Permitted Acquisition Date” means the date of any Permitted Acquisition for which a Term Loan
Advance is made

     “Permitted Indebtedness” is:

     (a) Borrowers’ indebtedness to Lenders under this Agreement or the Loan Documents;

     (b) Indebtedness existing on the Effective Date and shown on the Schedule;

     (c) Subordinated Debt, including in connection with an acquisition;

     (d) Indebtedness to trade creditors incurred in the ordinary course of business; and

     (e) Indebtedness secured by Permitted Liens.

     “Permitted Investments” are:

     (a) Investments shown on the Schedule and existing on the Effective Date; and

     (b) marketable direct obligations issued or unconditionally guaranteed by the United States or
its agency or any State maturing within 1 year from its acquisition, (ii) commercial paper maturing
no more than 1 year after its creation and having the highest rating from either Standard & Poor’s
Corporation or Moody’s Investors Service, Inc., and (iii) SVB’s certificates of deposit issued
maturing no more than 1 year after issue.

     “Permitted Liens” are:

     (a) Liens existing on the Effective Date and shown on the Schedule or arising under this
Agreement or other Loan Documents;

     (b) Liens for taxes, fees, assessments or other government charges or levies, either not
delinquent or being contested in good faith and for which a Borrower maintains adequate reserves on
its Books, if they have no priority over any of Lenders’ security interests;

     (c) Purchase money Liens (i) on Equipment acquired or held by a Borrower or its Subsidiaries
incurred for financing the acquisition of the Equipment, or (ii) existing on equipment when
acquired, if the Lien is confined to the property and improvements and the proceeds of the
equipment;

     (d) Leases or subleases and licenses or sublicenses granted in the ordinary course of a
Borrower’s business, if the leases, subleases, licenses and sublicenses permit granting
Lenders a security interest;

20

 

     (e) Liens incurred in the extension, renewal or refinancing of the indebtedness secured by
Liens described in (a) through (c), but any extension, renewal or replacement Lien must be
limited to the property encumbered by the existing Lien and the principal amount of the
indebtedness may not increase.

     “Person” is any individual, sole proprietorship, partnership, limited liability company, joint
venture, company, trust, unincorporated organization, association, corporation, institution, public
benefit corporation, firm, joint stock company, estate, entity or government agency.

     “Pro Forma Adjustments” means upward adjustments to Net Income made to reflect (a) an amount
equal to the actual cost savings, retroactively applied to the beginning of the fiscal year of
Borrower occurring prior to the Permitted Acquisition Date, of any operating expense that has been
permanently eliminated prior to the Acquisition Covenant Date, and (b) other demonstrable
adjustments, each as submitted in writing to, and approved by, Agent, in Agent’s reasonable
discretion.

     “Prime Rate” is SVB’s most recently announced “prime rate,” even if it is not SVB’s lowest
rate.

     “Quick Assets” is, on any date, the Borrowers’ consolidated, unrestricted cash, cash
equivalents, net billed accounts receivable and investments with maturities of less than 12 months
determined according to GAAP.

     “Repayment Period” as to each Term Loan Advance, the period from the Funding Date of such Term
Loan Advance to the Term Loan Maturity Date.

     “Responsible Officer” means any of the Chief Executive Officer, the President, the Chief
Financial Officer and the Controller of Borrower.

     “Revolving Maturity Date” is June 3, 2008, which such date is the third anniversary of the
Effective Date.

     “Schedule” is any attached schedule of exceptions.

     “Subordinated Debt” is debt incurred by a Borrower subordinated to such Borrower’s
indebtedness owed to Lenders and which is reflected in a written agreement in a manner and form
acceptable to Lenders and approved by Lenders in writing.

     “Subsidiary” is for any Person, a joint venture, or any other business entity of which more
than 50% of the voting stock or other equity interests is owned or controlled, directly or
indirectly, by the Person or one or more Affiliates of the Person.

     “Tangible Net Worth” is, on any date, the consolidated total assets of Borrowers and their
Subsidiaries minus, (a) any amounts attributable to (i) goodwill, (ii) intangible items
such as unamortized debt discount and expense, Patents, trade and service marks and names,
Copyrights and research and development expenses except prepaid expenses, and (iii) reserves not
already deducted from assets, and (b) Total Liabilities.

     “Term Loan Advance” has the meaning set forth in Section 2.1.3(a).

     “Term Loan Commitment Termination Date” is July 3, 2006.

     “Term Loan Fee” has the meaning set forth Section 2.4(d).

     “Term Loan Maturity Date” is, with respect to each Term Loan Advance, July 3, 2009, or, if
earlier, the date of acceleration of such Term Loan Advance by Agent following an Event of Default.

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     “Total Acquisition Cost” means the total cost of any Permitted Acquisition, including all
direct and indirect costs associated with such Permitted Acquisition.

     “Total Liabilities” is on any day, obligations that should, under GAAP, be classified as
liabilities on Borrowers’ consolidated balance sheet, including all Indebtedness and Subordinated
Debt.

     “Trademarks” are trademark and service mark rights, registered or not, applications to
register and registrations and like protections, and the entire goodwill of the business of
Assignor connected with the trademarks.

     “Unbilled Eligible Accounts” are Accounts in the ordinary course of a Borrower’s business that
meet all of such Borrower’s representations and warranties in Section 5.2 with regard to Accounts
but that have not yet been invoiced and which such invoice will be delivered to such account debtor
within thirty (30) days.

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

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	BORROWER:	 	LENDERS
	 
	 	 	 	 	 	 	 	 	 	 
	PERFICIENT, INC.	 	KEYBANK NATIONAL ASSOCIATION MARKETS
	MARKETS
	 	 	 	 	 	 	 	 	 	 
	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	

	 
	 	 	 	 
	Name:	 	 	 	Name:	 	 
	

	 	 	 
	 	 	 	 	 	 
	Its:	 	 	 	Its:	 	 
	

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	Date:	 	 
	

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	PERFICIENT GENISYS, INC.	 	SILICON VALLEY BANK
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	

	 
	 	 	 	 
	Name:	 	 	 	Name:	 	 
	

	 	 	 	 
	 	 	 	 	 	 
	Its:	 	 	 	Its:	 	 
	

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	Date:	 	 
	

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	PERFICIENT CANADA CORP.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	 	 	 
	

	 
	 	 	 	 
	Name:	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	Its:	 	 	 	 	 	 	 	 
	

	 	 
	 	 	 	 
	 	 	 	 	 	 	AGENT
	 
	 	 	 	 	 	 	 	 	 	 
	PERFICIENT MERITAGE, INC.	 	SILICON VALLEY BANK
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	

	 
	 	 	 	 
	Name:	 	 	 	Name:	 	 
	

	 	 	 	 
	 	 	 	 	 	 
	Its:	 	 	 	Its:	 	 
	

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	PERFICIENT ZETTAWORKS, INC.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	

	 
	 	 	 	 
	Name:	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	Its:	 	 	 	 	 	 	 	 
	

	 	 
	 	 	 	 

23

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