EX-10.1



 Exhibit 10.1 
 LOAN AND SECURITY AGREEMENT 
 THIS LOAN AND SECURITY AGREEMENT (this
“Agreement”) dated as of December 23, 2009 (the “Effective Date”) between SILICON VALLEY BANK, a California corporation (“Bank”), and CHANNELADVISOR CORPORATION, a Delaware corporation
(“Parent”), MERCHANDISINGADVISOR CORPORATION, a Delaware corporation and CA MARKETPLACES, INC., a Delaware corporation (each a “Borrower” and, collectively, the “Borrowers”), provides
the terms on which Bank shall lend to Borrowers and Borrowers shall repay Bank. The parties 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. Capitalized terms not otherwise defined 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 meaning provided by the Code to the extent such terms are defined therein. 

 

	 	2	LOAN AND TERMS OF PAYMENT 

 2.1 Promise to Pay. Borrowers hereby unconditionally promise to pay Bank the outstanding principal amount of all Credit Extensions and accrued and unpaid interest thereon as and when due in
accordance with this Agreement. 
 2.1.1 Revolving Advances. 

(a) Availability. Subject to the terms and conditions of this Agreement and to deduction of Reserves, Bank shall make Advances not
exceeding the Availability Amount. Amounts borrowed hereunder may be repaid and, prior to the Revolving Line Maturity Date, reborrowed, subject to the applicable terms and conditions precedent herein. 

(b) Termination; Repayment. The Revolving Line terminates on the Revolving Line Maturity Date, when the principal amount of all
Advances, the unpaid interest thereon, and all other Obligations relating to the Revolving Line shall be immediately due and payable. 
 (c) Termination Prior to Revolving Line Maturity Date. The Revolving Line may be terminated prior to the Revolving Line Maturity Date by Borrower, effective three (3) Business Days after
written notice of termination is given to Bank. If such termination is at Borrowers’ election or at Bank’s election due to the occurrence and continuance of an Event of Default at any time prior to the date that is six months from the
Effective Date, Borrowers shall pay to Bank, in addition to the payment of any other expenses or fees then-owing, a termination fee in an amount equal to one-half of one percent (0.5%) of the maximum amount of the Revolving Line (the “Early
Termination Fee”), provided that no termination fee shall be charged if the credit facility hereunder is replaced with a new facility from another division of Bank. 
 2.1.2 Letters of Credit Sublimit. 
 (a) As part of the Revolving
Line, Bank shall issue or have issued Letters of Credit denominated in Dollars or a Foreign Currency for Borrower’s account. The aggregate Dollar Equivalent amount utilized for the issuance of Letters of Credit shall at all times reduce the
amount otherwise available for Advances under the Revolving Line. The aggregate Dollar Equivalent of the face amount of outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve) may not
exceed the lesser of (A) Seven Hundred Fifty Thousand Dollars ($750,000), minus (i) the sum of all amounts used for Cash Management Services, and minus (ii) the FX Reduction Amount, or (B) the lesser of Revolving Line or the
Borrowing Base, minus (i) the sum of all outstanding principal amounts of any Advances (including any amounts used for Cash Management Services), and minus (ii) the FX Reduction Amount. 

(b) If, on the Revolving Line Maturity Date (or the effective date of any termination of this Agreement), there are any outstanding
Letters of Credit, then on such date Borrower shall provide to Bank cash collateral in an amount equal to (i) 105% of the Dollar Equivalent of the face amount of all such Letters of Credit denominated in U.S. Dollars or (ii) 110% of the
Dollar Equivalent of the face amount of all such Letters of Credit denominated in Foreign Currency, plus, in each case all interest, fees, and costs due or to become due in connection 







 
therewith (as estimated by Bank in its good faith business judgment), to secure all of the Obligations relating to such Letters of Credit. Upon expiration or termination of such Letters of Credit
or satisfaction of such Obligations in full, Bank shall promptly return such cash collateral to Borrower, to the extent not theretofore applied by Bank toward such Obligations. All Letters of Credit shall be in form and substance acceptable to Bank
in its sole discretion and shall be subject to the terms and conditions of Bank’s standard Application and Letter of Credit Agreement (the “Letter of Credit Application”). Borrower agrees to execute any further documentation in
connection with the Letters of Credit as Bank may reasonably request. Borrower further agrees to be bound by the regulations and interpretations of the issuer of any Letters of Credit guarantied by Bank and opened for Borrower’s account or by
Bank’s interpretations of any Letter of Credit issued by Bank for Borrower’s account, and Borrower understands and agrees that Bank shall not be liable for any error, negligence, or mistake, whether of omission or commission, in following
Borrower’s instructions or those contained in the Letters of Credit or any modifications, amendments, or supplements thereto in the absence of gross negligence or wilful misconduct. 

(c) The obligation of Borrower to immediately reimburse Bank for drawings made under Letters of Credit shall be absolute, unconditional,
and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement, such Letters of Credit, and the Letter of Credit Application. 
 (d) Borrower may request that Bank issue a Letter of Credit payable in a Foreign Currency. If a demand for payment is made under any such Letter of Credit, Bank shall treat such demand as an Advance to
Borrower of the Dollar Equivalent of the amount thereof (plus fees and charges in connection therewith such as wire, cable, SWIFT or similar charges). 
 (e) To guard against fluctuations in currency exchange rates, upon the issuance of any Letter of Credit payable in a Foreign Currency, Bank shall create a reserve (the “Letter of Credit
Reserve”) under the Revolving Line in an amount equal to ten percent (10%) of the face amount of such Letter of Credit. The amount of the Letter of Credit Reserve may be adjusted by Bank from time to time to account for fluctuations in
the exchange rate. The availability of funds under the Revolving Line shall be reduced by the amount of such Letter of Credit Reserve for as long as such Letter of Credit remains outstanding. 

2.1.3 Foreign Exchange Sublimit. As part of the Revolving Line, Borrowers may enter into foreign exchange contracts with Bank
under which Borrowers commit to purchase from or sell to Bank a specific amount of Foreign Currency (each, a “FX Forward Contract”) on a specified date (the “Settlement Date”). FX Forward Contracts shall have a
Settlement Date of at least one (1) FX Business Day after the contract date and shall be subject to a reserve of ten percent (10%) of each outstanding FX Forward Contract (the “FX Reserve”). The aggregate amount of FX
Forward Contracts at any one time may not exceed ten (10) times the lesser of (A) Seven Hundred Fifty Thousand Dollars ($750,000) minus (i) the sum of all amounts used for Cash Management Services, and minus (ii) the Dollar
Equivalent of the face amount of any outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve), or (B) the lesser of Revolving Line or the Borrowing Base, minus (i) the sum of all
outstanding principal amounts of any Advances (including any amounts used for Cash Management Services), and minus (ii) the Dollar Equivalent of the face amount of any outstanding Letters of Credit (including drawn but unreimbursed Letters of
Credit and any Letter of Credit Reserve). The amount otherwise available for Credit Extensions under the Revolving Line shall be reduced by an amount equal to ten percent (10%) of each outstanding FX Forward Contract (the “FX Reduction
Amount”). Any amounts needed to fully reimburse Bank for any amounts not paid by Borrowers in connection with FX Forward Contracts will be treated as Advances under the Revolving Line and will accrue interest at the interest rate
applicable to Advances. 
 2.1.4 Cash Management Services Sublimit. Borrowers may use the Revolving Line for Bank’s
cash management services, which may include merchant services, direct deposit of payroll, business credit card, and check cashing services identified in Bank’s various cash management services agreements (collectively, the “Cash
Management Services”), in an aggregate amount not to exceed the lesser of (A) Seven Hundred Fifty Thousand Dollars ($750,000) minus (i) the Dollar Equivalent of the face amount of any outstanding Letters of Credit (including drawn
but unreimbursed Letters of Credit and any Letter of Credit Reserve), and minus (ii) the FX Reduction Amount, or (B) the lesser of Revolving Line or the Borrowing Base, minus (i) the sum of all outstanding principal amounts of any
Advances, minus the Dollar Equivalent of the face amount of any outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve), and minus (iii) the FX Reduction Amount. Any amounts Bank pays
on behalf of Borrowers for any Cash Management Services will be treated as Advances under the Revolving Line and will accrue interest at the interest rate applicable to Advances. 

  
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 2.1.5 Term Loan. 

(a) Availability. Bank shall make one (1) term loan available to Borrowers in an amount up to the Term Loan Amount on or the
Effective Date, subject to the satisfaction of the terms and conditions of this Agreement; provided, however, that if the Effective Date is after December 31, 2009, no Term Loan shall be made to Borrower. 

(b) Repayment. Borrowers shall pay interest only on the Term Loan through December 31, 2009. Beginning on January 1,
2010, Borrowers shall repay the Term Loan in (i) thirty six (36) equal installments of principal, plus (ii) monthly payments of accrued interest (each, a “Term Loan Payment”). Each Term Loan Payment shall be payable
on the first day of each month. Borrowers’ final Term Loan Payment, due on the Term Loan Maturity Date, shall include all outstanding principal and accrued and unpaid interest under the Term Loan. Once repaid, the Term Loan may not be
reborrowed. 
 (c) Prepayment. At Borrowers’ option, so long as an Event of Default has not occurred and is not
continuing, Borrowers shall have the option to prepay all, but not less than all, of the Term Loan Amount advanced by Bank under this Agreement, provided Borrowers, (a) provide written notice to Bank of its election to exercise to prepay the
Term Loan at least thirty (30) days prior to such prepayment, and (b) pay, on the date of the prepayment (i) all accrued and unpaid interest with respect to the Term Loan through the date the prepayment is made; (ii) all unpaid
principal with respect to the Term Loan; (iii) a premium equal to the Make-Whole Premium; and; and (iv) all other sums, if any, that shall have become due and payable hereunder with respect to the Term Loan. 

2.2 Overadvances. If, at any time, the sum of (a) the outstanding principal amount of any Advances (including any amounts
used for Cash Management Services) plus (b) the FX Reduction Amount (such sum being an “Overadvance”) exceeds the lesser of either the Revolving Line or the Borrowing Base, Borrowers shall immediately pay to Bank in cash such
Overadvance. Without limiting Borrowers’ obligation to repay Bank any amount of the Overadvance, Borrowers agree to pay Bank interest on the outstanding amount of any Overadvance, on demand, at the Default Rate. 

2.3 Payment of Interest on the Credit Extensions. 
 (a) Interest Rate. 
 (i) Advances. Subject to Section 2.3(b),
the principal amount outstanding under the Revolving Line shall accrue interest at a floating per annum, calculated for any Subject Month (as of the first calendar day of such month) as follows: (i) to the extent that Parent and its
Subsidiaries maintained, as of the last day of the applicable Testing Month, a Liquidity Ratio of greater than or equal to 1.35 to 1.0, equal to the greater of (x) the Prime Rate plus three quarters of one percent (0.75%) or (y) 4.75% and
(ii) at all other times, equal to the greater of (x) the Prime Rate plus one and one-quarter percent (1.25%) or (y) 5.25%, which interest, in each case, shall be payable monthly in accordance with Section 2.3(f) below.

 (ii) Term Loan. Subject to Section 2.3(b), the principal amount outstanding under the Term Loan shall accrue
interest at a per annum rate equal to seven percent (7.0%), fixed as of the Funding Date, which interest shall be payable monthly. 
 (b) Default Rate. Immediately upon the occurrence and during the continuance of an Event of Default, Obligations shall bear interest at a rate per annum which is five percentage points
(5.00%) above the rate that is otherwise applicable thereto (the “Default Rate”) unless Bank otherwise elects from time to time in its sole discretion to impose a smaller increase. Fees and expenses which are required to be
paid by Borrowers pursuant to the Loan Documents (including, without limitation, Bank Expenses) but are not paid when due shall bear interest until paid at a rate equal to the highest rate applicable to the Obligations. Payment or acceptance of the
increased interest rate provided in this Section 2.3(b) is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of Bank. 

(c) Adjustment to Interest Rate. Changes to the interest rate of any Credit Extension based on changes to the Prime Rate shall be
effective on the effective date of any change to the Prime Rate and to the extent of any such change. 

  
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 (d) Debit of Accounts. Bank may debit any of Borrowers’ deposit accounts,
including the Designated Deposit Account, for principal and interest payments or any other amounts Borrower owes Bank when due. These debits shall not constitute a set-off. 
 (e) Minimum Monthly Interest. In the event the aggregate amount of interest earned by Bank in any month on the Revolving Line (exclusive of any other fees and charges hereunder) is less than Seven
Thousand Dollars ($7,000) (the “Minimum Monthly Interest”), Borrowers shall pay Bank an amount, payable on the last day of such month, in an amount equal to the (i) Minimum Monthly Interest minus (ii) the aggregate amount
of all interest earned by Bank (exclusive of any other fees and charges hereunder) in such month. 
 (f) Payment; Interest
Computation; Float Charge. Interest is payable monthly on the last calendar day of each month and shall be computed on the basis of a 360-day year for the actual number of days elapsed. In computing interest, (i) all Payments received after
12:00 p.m. Pacific time on any day shall be deemed received at the opening of business on the next Business Day, and (ii) the date of the making of any Credit Extension shall be included and the date of payment shall be excluded; provided,
however, that if any Credit Extension is repaid on the same day on which it is made, such day shall be included in computing interest on such Credit Extension. In addition, Bank shall be entitled to charge Borrowers a “float” charge in
an amount equal to three (3) Business Days interest, at the interest rate applicable to the Advances whether or not any Advances are outstanding, on all Payments received by Bank. Such float charge is not included in interest for purposes of
computing Minimum Monthly Interest (if any) under this Agreement. The float charge for each month shall be payable on the last day of the month. Bank shall not, however, be required to credit a Borrower’s account for the amount of any item of
payment which is unsatisfactory to Bank in its good faith business judgment, and Bank may charge any Borrower’s Designated Deposit Account for the amount of any item of payment which is returned to Bank unpaid. 

(g) Payment of Principal and other Obligations from Collections. For any Subject Month, to the extent the Liquidity Ratio of
Parent and its Subsidiaries on a consolidated basis was greater than or equal to 1.35 to 1.0 as of the last day of the applicable Testing Month, within three (3) Business Days of receipt of Accounts collected by Bank pursuant to
Section 6.3(c), Bank will turn over to Borrowers the proceeds of the Accounts. At all other times, such Account receipts will be applied to outstanding Obligations in connection with the Revolving Line in accordance with Section 2.5(b),
with the remainder turned over to Borrowers within three (3) Business Days following Bank’s receipt thereof. This Section does not impose any affirmative duty on Bank to perform any act other than as specifically set forth herein. All
Accounts and the proceeds thereof are Collateral and if an Event of Default occurs, Bank may apply the proceeds of such Accounts to the Obligations. 
 2.4 Fees. Borrowers shall pay to Bank: 
 (a) Commitment Fee. A fully
earned, non-refundable commitment fee of Ten Thousand Six Hundred Twenty Five Dollars ($10,625), on the Effective Date; 
 (b)
Early Termination Fee. If applicable, the Early Termination Fee in accordance with Section 2.1.1(c); 
 (c)
Make-Whole Premium. If applicable, the Make-Whole Premium in accordance with Section 2.1.5(c); and 
 (d) Bank
Expenses. All Bank Expenses (including reasonable attorneys’ fees and expenses for documentation and negotiation of this Agreement) incurred through and after the Effective Date, when due. 

Borrowers have paid to Bank a Good Faith Deposit of Ten Thousand Dollars ($10,000) (the “Good Faith Deposit”) to
initiate Bank’s due diligence review process. Any portion of the Good Faith Deposit not utilized to pay Bank Expenses will be applied to the Commitment Fee. 
 2.5 Payments; Application of Payments. 
 (a) All payments (including
prepayments) to be made by Borrowers under any Loan Document shall be made in immediately available funds in U.S. Dollars, without setoff or counterclaim, before 12:00 p.m. Pacific time on the date when due. Payments of principal and/or interest
received after 12:00 p.m. 

  
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Pacific time are considered received at the opening of business on the next Business Day. When a payment is due on a day that is not a Business Day, the payment shall be due the next Business
Day, and additional fees or interest, as applicable, shall continue to accrue until paid. 
 (b) All payments with respect to
the Obligations may be applied in such order and manner as Bank shall determine in its sole discretion. Borrowers shall have no right to specify the order or the accounts to which Bank shall allocate or apply any payments required to be made by
Borrowers to Bank or otherwise received by Bank under this Agreement when any such allocation or application is not specified elsewhere in this Agreement. 
  

	 	3	CONDITIONS OF LOANS 


3.1 Conditions Precedent to Initial Credit Extension. Bank’s obligation to make the initial Credit Extension is subject to the
condition precedent that Bank shall have received, in form and substance satisfactory to Bank, such documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate, including, without limitation: 

(a) duly executed original signatures to the Loan Documents; 
 (b) the original Intercompany Notes; 
 (c) duly executed original signatures to
the Warrant; 
 (d) duly executed original signatures to the completed Corporate Borrowing Certificates for each Borrower, plus
all exhibits thereto; 
 (e) except as set forth in Section 3.3, good standing certificates/certificates of foreign
qualification from the Secretaries of State of the States of Delaware, New York and North Carolina for each Borrower, as applicable, dated no later than 30 days prior to the Effective Date; 

(f) the Perfection Certificates of each Borrower, together with the duly executed original signatures thereto; 

(g) completion of the Initial Audit by Bank; 
 (h) a copy of Parent’s Investors’ Rights Agreement, Right of First Refusal and Co-Sale Agreement and Voting Agreement and any amendments thereto; 

(i) evidence satisfactory to Bank that the insurance policies required by Section 6.7 hereof are in full force and effect, together
with appropriate evidence showing lender loss payable and/or additional insured clauses or endorsements in favor of Bank; and 

(j) payment of the fees and Bank Expenses then due as specified in Section 2.4 hereof. 

3.2 Conditions Precedent to all Credit Extensions. Bank’s obligations to make each Credit Extension, including the initial
Credit Extension, is subject to the following conditions precedent: 
 (a) except as otherwise provided in Section 3.5(a),
timely receipt of an executed Transaction Report; 
 (b) the representations and warranties in this Agreement shall be true,
accurate, and complete in all material respects on the date of the Transaction Report and on the Funding Date of each Credit Extension; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties
that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of


  
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such date, and no Event of Default shall have occurred and be continuing or result from the Credit Extension. Each Credit Extension is each Borrower’s representation and warranty on that
date that the representations and warranties in this Agreement remain true, accurate, and complete in all material respects; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that
already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such
date; and 
 (c) in Bank’s sole discretion, there has not been a Material Adverse Change. 

3.3 Post-Closing Conditions. Within 30 days after the Effective Date, Bank shall have received, (a) in form and substance
satisfactory to Bank, original stock certificates (to the extent certificated), as issued to CA Marketplaces, Inc., along with duly executed corresponding irrevocable stock powers, for each of ChannelAdvisor Europe Ltd., Marketworks Ltd. and
Marketworks (International) Pty Ltd. and (b) for CA Marketplaces, Inc., a Certificate of Foreign Qualification from the Secretary of State of the state of North Carolina. 
 3.4 Covenant to Deliver. Except as otherwise set forth in Section 3.3, each Borrower agrees to deliver to Bank each item required to be delivered to Bank under this Agreement as a condition
precedent to any Credit Extension. Each Borrower expressly agrees that a Credit Extension made prior to the receipt by Bank of any such item shall not constitute a waiver by Bank of such Borrower’s obligation to deliver such item, and the
making of any Credit Extension in the absence of a required item shall be in Bank’s sole discretion. 
 3.5 Procedures
for Borrowing. Subject to the prior satisfaction of all other applicable conditions to the making of an Advance set forth in this Agreement, to obtain an Advance (other than Advances under Sections 2.1.2 or 2.1.3), the Borrowers shall notify
Bank (which notice shall be irrevocable) by electronic mail, facsimile, or telephone by 12:00 p.m. Pacific time on the Funding Date of the Advance. Together with such notification, Borrowers must promptly deliver to Bank by electronic mail or
facsimile a completed Transaction Report executed by a Responsible Officer or his or her designee. Bank shall credit Advances to the Designated Deposit Account. Bank may make Advances under this Agreement based on instructions from a Responsible
Officer or his or her designee or without instructions if the Advances are necessary to meet Obligations which have become due. Bank may rely on any telephone notice given by a person whom Bank believes is a Responsible Officer or designee.

  

	 	4	CREATION OF SECURITY INTEREST 

 4.1 Grant of Security Interest. Each Borrower hereby grants Bank, to secure the payment and performance in full of all of the Obligations, a continuing security interest in, and pledges to
Bank, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof. 
 4.2 Priority of Security Interest. Each Borrower represents, warrants, and covenants that the security interest granted herein is and shall at all times continue to be a first priority perfected
security interest in the Collateral (subject only to Permitted Liens that may have superior priority to Bank’s Lien under this Agreement). If any Borrower shall acquire a commercial tort claim, such Borrower shall promptly notify Bank in a
writing signed by such Borrower of the general details thereof and grant to Bank in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance reasonably
satisfactory to Bank. If this Agreement is terminated, Bank’s Lien in the Collateral shall continue until the Obligations (other than inchoate indemnity obligations) are repaid in full in cash. Upon payment in full in cash of the Obligations
and at such time as Bank’s obligation to make Credit Extensions has terminated, Bank shall, at Borrowers’ sole cost and expense, release its Liens in the Collateral and all rights therein shall revert to Borrowers. 

4.3 Authorization to File Financing Statements. Each Borrower hereby authorizes Bank to file financing statements, without notice
to any Borrower, with all appropriate jurisdictions to perfect or protect Bank’s interest or rights hereunder, including a notice that any disposition of the Collateral, by any Borrower or any other Person, shall be deemed to violate the rights
of Bank under the Code. 

  
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	 	5	REPRESENTATIONS AND WARRANTIES 

 Each Borrower represents and warrants, jointly and severally, as follows: 
 5.1
Due Organization, Authorization; Power and Authority. Borrower is duly existing and in good standing as a Registered Organization in its jurisdiction of formation and is qualified and licensed to do business and is in good standing in any
jurisdiction in which the conduct of its business or its ownership of property requires that it be qualified except where the failure to do so could not reasonably be expected to have a material adverse effect on Borrower’s business. In
connection with this Agreement, Borrower has delivered to Bank a completed certificate signed by Borrower, entitled “Perfection Certificate”. Borrower represents and warrants to Bank that (a) Borrower’s exact legal name is that
indicated on the Perfection Certificate and on the signature page hereof; (b) Borrower is an organization of the type and is organized in the jurisdiction set forth in the Perfection Certificate; (c) the Perfection Certificate accurately
sets forth Borrower’s organizational identification number or accurately states that Borrower has none; (d) the Perfection Certificate accurately sets forth Borrower’s place of business, or, if more than one, its chief executive
office as well as Borrower’s mailing address (if different than its chief executive office); (e) Borrower (and each of its predecessors) has not, in the past five (5) years, changed its jurisdiction of formation, organizational
structure or type, or any organizational number assigned by its jurisdiction; and (f) all other information set forth on the Perfection Certificate pertaining to Borrower and each of its Subsidiaries is accurate and complete in all material
respects it being understood and agreed that Borrower may from time to time update certain information in the Perfection Certificate after the Effective Date to the extent permitted by one or more specific provisions in this Agreement). Bank hereby
agrees that Borrower may update the information set forth on the Perfection Certificate to reflect information provided in any notice delivered by Borrower to Bank pursuant to the last full paragraph of Section 7.2 below. 

The execution, delivery and performance by Borrower of the Loan Documents to which it is a party have been duly authorized, and do not
(i) conflict with any of Borrower’s organizational documents, (ii) contravene, conflict with, constitute a default under or violate any material Requirement of Law, (iii) contravene, conflict or violate any applicable order,
writ, judgment, injunction, decree, determination or award of any Governmental Authority by which Borrower or any of its Subsidiaries or any of their property or assets may be bound or affected, (iv) require any action by, filing, registration,
or qualification with, or Governmental Approval from, any Governmental Authority (except such Governmental Approvals which have already been obtained and are in full force and effect or are being obtained pursuant to Section 6.1(b) and except
for filings, recordings or registrations that are required to perfect Bank’s security interests in the Collateral), or (v) constitute an event of default under any material agreement by which Borrower is bound. Borrower is not in default
under any agreement to which it is a party or by which it is bound in which the default could reasonably be expected to have a material adverse effect on Borrower’s business. 

5.2 Collateral. Borrower has good title to, has rights in, and the power to transfer each item of the Collateral upon which it
purports to grant a Lien hereunder, free and clear of any and all Liens except Permitted Liens. Borrower has no deposit accounts other than the deposit accounts with Bank, the deposit accounts, if any, described in the Perfection Certificate
delivered to Bank in connection herewith, or of which Borrower has given Bank notice and taken such actions as are necessary to give Bank a perfected security interest therein (and upon delivery of such notice the Perfection Certificate will be
deemed to be updated with the information contained in such notice). The Accounts are bona fide, existing obligations of the Account Debtors. 
 The Collateral is not in the possession of any third party bailee (such as a warehouse) except as otherwise provided in the Perfection Certificate, or as permitted pursuant to Section 7.2. None of
the components of the Collateral shall be maintained at locations other than as provided in the Perfection Certificate or as permitted pursuant to Section 7.2. 
 Borrower is the sole owner of the Intellectual Property which it owns or purports to own except for (a) non-exclusive licenses granted to its customers in the ordinary course of business,
(b) over-the-counter software that is commercially available to the public, and (c) material Intellectual Property licensed to Borrower and noted on the Perfection Certificate (which shall be deemed updated to reflect information provided
in any notice delivered by Borrower to Bank pursuant to Section 6.7(b)). Each Patent which it owns or purports to own and which is material to Borrower’s business is valid and enforceable, and no part of the Intellectual Property which
Borrower owns or purports to own and which is material to Borrower’s business has been judged invalid or unenforceable, in whole or in part. To the best of Borrower’s knowledge, 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 would not reasonably be expected to have a material adverse effect on Borrower’s business. Except as noted on the Perfection Certificate or the Schedule or as
contained in any notice delivered by Borrower to Bank pursuant to Section 6.7(b), Borrower is not a party to, nor is it bound by, any Restricted License. 

  
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 5.3 Accounts Receivable. 

(a) For each Account with respect to which Advances are requested, on the date each Advance is requested and made, such Account shall be
an Eligible Account. 
 (b) All statements made and all unpaid balances appearing in all invoices, instruments and other
documents evidencing the Eligible Accounts are and shall be true and correct and all such invoices, instruments and other documents, and all of Borrower’s Books are genuine and in all respects what they purport to be. Whether or not an Event of
Default has occurred and is continuing, Bank may notify any Account Debtor owing Borrower money of Bank’s security interest in such funds and verify the amount of such Eligible Account. All sales and other transactions underlying or giving rise
to each Eligible Account shall comply in all material respects with all applicable laws and governmental rules and regulations. Borrower has no knowledge of any actual or imminent Insolvency Proceeding of any Account Debtor whose accounts are
Eligible Accounts in any Transaction Report. To the best of Borrower’s knowledge, all signatures and endorsements on all documents, instruments, and agreements relating to all Eligible Accounts are genuine, and all such documents, instruments
and agreements are legally enforceable in accordance with their terms. 
 5.4 Litigation. Except as set forth on the
Perfection Certificate, there are no actions or proceedings pending or, to the knowledge of the Responsible Officers, threatened in writing by or against Borrower or any of its Subsidiaries, before any court or administrative agency in which a
likely adverse decision would reasonably be expected to have a Material Adverse Effect. 
 5.5 Financial Statements;
Financial Condition. All consolidated financial statements for Borrower and any of its Subsidiaries delivered to Bank fairly present in all material respects Borrower’s consolidated financial condition and Borrower’s consolidated
results of operations. There has not been any material deterioration in Borrower’s consolidated financial condition since the date of the most recent financial statements submitted to Bank. 

5.6 Solvency. The fair salable value of Borrower’s assets (including goodwill minus disposition costs) exceeds the fair value
of its liabilities; Borrower is not left with unreasonably small capital after the transactions in this Agreement; and Borrower is able to pay its debts (including trade debts) as they mature. 

5.7 Regulatory Compliance. Borrower is not an “investment company” or a company “controlled” by an
“investment company” under the Investment Company Act of 1940, as amended. 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). Borrower has complied in all material respects with the Federal Fair Labor Standards Act. Neither Borrower nor any of its Subsidiaries is a “holding company” or an “affiliate” of a “holding company” or a
“subsidiary company” of a “holding company” as each term is defined and used in the Public Utility Holding Company Act of 2005. Borrower has not violated any laws, ordinances or rules, the violation of which could reasonably be
expected to have a material adverse effect on its business. None of Borrower’s or any of its Subsidiaries’ properties or assets has been used by Borrower or any Subsidiary or, to the best of Borrower’s knowledge, by previous Persons,
in disposing, producing, storing, treating, or transporting any hazardous substance other than legally. Borrower and each of its Subsidiaries have 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 their respective businesses as currently conducted. 
 5.8 Subsidiaries; Investments. Borrower does not own any stock, partnership interest or other equity securities except for Permitted Investments. 

5.9 Tax Returns and Payments; Pension Contributions. Except as set forth in the Perfection Certificate, Borrower has timely filed
all required tax returns and reports, or timely filed extensions therefore, unless the aggregate amount of taxes due, plus interest and penalties thereon, would not exceed $50,000, and Borrower has timely paid all foreign, federal, state and local
taxes, assessments, deposits and contributions owed by Borrower, other than taxes, plus interest and penalties thereon, that, in the aggregate do not exceed $50,000. Borrower may also defer payment of any contested taxes, provided that Borrower
(a) in good faith contests its obligation to pay the taxes by appropriate proceedings promptly and diligently instituted and conducted, (b) notifies Bank in writing of the commencement of, and any material development in, the proceedings,
(c) posts bonds or takes any other steps required to prevent the 

  
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governmental authority levying such contested taxes from obtaining a Lien upon any of the Collateral that is other than a “Permitted Lien”. Borrower is unaware of any claims or
adjustments proposed for any of Borrower’s prior tax years which could result in additional taxes becoming due and payable by Borrower. Borrower has paid all amounts necessary to fund all present pension, profit sharing and deferred
compensation plans in accordance with their terms, and Borrower has not withdrawn from participation in, and has not permitted partial or complete termination of, or permitted the occurrence of any other event with respect to, any such plan which
could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 

5.10 Use of Proceeds. Borrower shall use the proceeds of the Credit Extensions solely as working capital and to fund its general
business requirements and not for personal, family, household or agricultural purposes. 
 5.11 Full Disclosure. No
written representation, warranty or other statement of Borrower in any certificate or written statement given to Bank, as of the date such representation, warranty, or other statement was made, taken together with all such written certificates and
written statements given to Bank, 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 (it being recognized by Bank that the
projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected
or forecasted results). 
 5.12 Definition of “Knowledge.” For purposes of the Loan Documents, whenever
a representation or warranty is made to Borrower’s knowledge or awareness, to the “best of” Borrower’s knowledge, or with a similar qualification, knowledge or awareness means the actual knowledge, after reasonable investigation,
of the Responsible Officers. 
  

	 	6	AFFIRMATIVE COVENANTS 

 Each Borrower shall do all of the following, unless otherwise noted: 
 6.1
Government Compliance. 
 (a) Maintain its and all its Subsidiaries’ legal existence and good standing in their
respective jurisdictions of formation and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect on Borrower’s business or operations. Borrower shall comply,
and have each Subsidiary comply, with all laws, ordinances and regulations to which it is subject, noncompliance with which could have a material adverse effect on Borrower’s business. 

(b) Obtain all of the Governmental Approvals necessary for the performance by Borrower of its obligations under the Loan Documents to
which it is a party and the grant of a security interest to Bank in all of its property. Borrower shall promptly provide copies of any such obtained Governmental Approvals to Bank. 

6.2 Financial Statements, Reports, Certificates. Provide Bank with the following: 

(a) within thirty (30) days after the end of each month, (i) a Transaction Report, (ii) monthly accounts receivable
agings, aged by invoice date, (iii) an accounts payable check payment list for the last week of the applicable month, (iv) monthly reconciliations of accounts receivable agings (aged by invoice date), transaction reports and general ledger
and (v) a schedule of Deferred Revenue; 
 (b) as soon as available, but no later than thirty (30) days after the last
day of each month, a company prepared consolidated balance sheet and income statement covering Parent’s consolidated operations for such month certified by a Responsible Officer and in a form acceptable to Bank (the “Monthly Financial
Statements”); 
 (c) within thirty (30) days after the last day of each month and together with the Monthly
Financial Statements, a duly completed Compliance Certificate signed by a Responsible Officer of Parent, certifying that as of the end of such month, Borrowers were in full compliance with all of the terms and conditions of this Agreement, and
setting forth calculations showing compliance with the financial covenants set forth in this Agreement and such other information as Bank shall reasonably request, including, without limitation, a statement that at the end of such month there were
no held checks; 

  
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 (d) within thirty (30) days following the last day of each fiscal year of Parent,
(A) annual operating budgets (including income statements and cash balances, by month) for the upcoming fiscal year of Borrowers (which may be consolidated), and (B) annual financial projections for the following fiscal year (on a
quarterly basis) as approved by each Borrower’s board of directors (or Parent’s Board of Directors if consolidated), together with any related business forecasts used in the preparation of such annual financial projections; and 

(e) as soon as available, and in any event within 180 days following the end of Parent’s 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 Bank in its reasonable discretion (it being agreed that any of
the eight largest U.S. accounting firms are acceptable to Bank). 
 (f) in the event that Parent becomes subject to the
reporting requirements under the Exchange Act within five (5) days of filing, copies of all periodic and other reports, proxy statements and other materials filed by Parent with the SEC, any Governmental Authority succeeding to any or all of
the functions of the SEC or with any national securities exchange, or distributed to its shareholders, as the case may be. Documents required to be delivered pursuant to the terms hereof (to the extent any such documents are included in materials
otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date on which Borrower posts such documents, or provides a link thereto, on Parent’s website on the Internet at
Parent’s website address; 
 (g) within five (5) days of delivery, copies of all statements, reports and notices made
available to Borrower’s security holders or to any holders of Subordinated Debt; 
 (h) prompt report of any legal actions
pending or threatened in writing against Borrower or any of its Subsidiaries that could reasonably be expected to result in damages or costs to Borrower or any of its Subsidiaries of, individually or in the aggregate, One Hundred Fifty Thousand
Dollars ($150,000) or more; and 
 (i) other financial information reasonably requested by Bank. 

6.3 Accounts Receivable. 
 (a) Schedules and Documents Relating to Accounts. Deliver to Bank transaction reports and schedules of collections, as provided in Section 6.2, on Bank’s standard forms; provided,
however, that Borrower’s failure to execute and deliver the same shall not affect or limit Bank’s Lien and other rights in all of Borrower’s Accounts, nor shall Bank’s failure to advance or lend against a specific Account affect
or limit Bank’s Lien and other rights therein. If requested by Bank, Borrower shall furnish Bank with copies (or, at Bank’s request, originals) of all contracts, orders, invoices, and other similar documents, and all shipping instructions,
delivery receipts, bills of lading, and other evidence of delivery, for any goods the sale or disposition of which gave rise to such Accounts. In addition, Borrower shall deliver to Bank, on its request, the originals of all instruments, chattel
paper, security agreements, guarantees and other documents and property evidencing or securing any Accounts, in the same form as received, with all necessary indorsements, and copies of all credit memos. 

(b) Disputes. Promptly notify Bank of all disputes or claims relating to Eligible Accounts in excess of $50,000. Borrower may
forgive (completely or partially), compromise, or settle any Account for less than payment in full, or agree to do any of the foregoing so long as (i) Borrower does so in good faith, in a commercially reasonable manner, in the ordinary course
of business, in arm’s-length transactions, and reports the same to Bank in the regular reports provided to Bank; (ii) no Event of Default has occurred and is continuing; and (iii) after taking into account all such discounts,
settlements and forgiveness, the total outstanding Advances will not exceed the lesser of the Revolving Line or the Borrowing Base. 
 (c) Collection of Accounts. Bank requires that all proceeds of Accounts be deposited by Borrower into a lockbox account, or such other “blocked account” as specified by Bank, pursuant to
a blocked account agreement in such form as Bank may specify in its good faith business judgment. Whether or not an Event of Default has occurred and is continuing, Borrower shall hold all payments on, and proceeds of, Accounts in trust for Bank,
and Borrower shall immediately deliver all such payments and proceeds to Bank in their original form, duly endorsed, to be applied (i) prior to an Event of Default, pursuant to the terms of Section 2.3(g) and 2.5(b) hereof, and
(ii) after the occurrence and during the continuance of an Event of Default, pursuant to the terms of Section 9.4 hereof. 

  
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 (d) Returns. Provided no Event of Default has occurred and is continuing, if
any Account Debtor returns any Inventory to Borrower, Borrower shall promptly (i) determine the reason for such return, (ii) issue a credit memorandum to the Account Debtor in the appropriate amount, and (iii) provide a copy of such
credit memorandum to Bank, upon request from Bank. In the event any attempted return occurs after the occurrence and during the continuance of any Event of Default, Borrower shall hold the returned Inventory in trust for Bank, and immediately
notify Bank of the return of the Inventory. 
 (e) Verification. Bank may, from time to time, via written
confirmation, with notice to Borrower, verify in connection with Bank’s semi-annual audit, directly with the respective Account Debtors the validity, amount and other matters relating to the Accounts, either in the name of Borrower or Bank or
such other name as Bank may choose. 
 (f) No Liability. Bank shall not be responsible or liable for any shortage
or discrepancy in, damage to, or loss or destruction of, any goods, the sale or other disposition of which gives rise to an Account, or for any error, act, omission, or delay of any kind occurring in the settlement, failure to settle, collection or
failure to collect any Account, or for settling any Account in good faith for less than the full amount thereof, nor shall Bank be deemed to be responsible for any of Borrower’s obligations under any contract or agreement giving rise to an
Account. Nothing herein shall, however, relieve Bank from liability for its own gross negligence or willful misconduct. 

6.4 Remittance of Proceeds. Except as otherwise provided in Section 6.3(c), deliver, in kind, all proceeds arising from the
disposition of any Collateral to Bank in the original form in which received by Borrower not later than the following Business Day after receipt by Borrower, to be applied to the Obligations (a) prior to an Event of Default, pursuant to the
terms of Section 2.5(b) hereof, and (b) after the occurrence and during the continuance of an Event of Default, pursuant to the terms of Section 9.4 hereof; provided that, if no Event of Default has occurred and is continuing,
Borrower shall not be obligated to remit to Bank the proceeds of the sale of worn out or obsolete Equipment disposed of by Borrower in good faith in an arm’s length transaction for an aggregate purchase price of $100,000 or less (for all such
transactions in any fiscal year). Borrower agrees that it will not commingle proceeds of Collateral with any of Borrower’s other funds or property, but will hold such proceeds separate and apart from such other funds and property and in an
express trust for Bank. Nothing in this Section limits the restrictions on disposition of Collateral set forth elsewhere in this Agreement. 
 6.5 Taxes; Pensions. Timely file, and require each of its Subsidiaries to timely file, all required tax returns and reports, or extensions therefore, unless the aggregate amount of taxes
due, plus interest and penalties thereon, would not exceed $50,000, and timely pay, and require each of its Subsidiaries to timely pay, all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower and each of
its Subsidiaries, except for (a) taxes, plus interest and penalties thereon, that, in the aggregate do not exceed $50,000 and (b) deferred payment of any taxes contested pursuant to the terms of Section 5.9 hereof, and shall deliver to Bank, on
demand, appropriate certificates attesting to such payments, and pay all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms. 

6.6 Access to Collateral; Books and Records. At reasonable times, on three (3) Business Day’s notice (provided no notice
is required if an Event of Default has occurred and is continuing), Bank, or its agents, shall have the right to inspect the Collateral and the right to audit and copy Borrower’s Books. Such inspections or audits shall be conducted no more
often than once every six (6) months unless an Event of Default has occurred and is continuing. The foregoing inspections and audits shall be at Borrower’s expense, and the charge therefor shall be $850 per person per day (or such higher
amount as shall represent Bank’s then-current standard charge for the same), plus reasonable out-of-pocket expenses, which expenses shall be capped at $15,000 per annum, unless an Event of Default has occurred and is continuing. In the event
Borrower and Bank schedule an audit more than ten (10) days in advance, and Borrower cancels or seeks to reschedules the audit with less than ten (10) days written notice to Bank, then (without limiting any of Bank’s rights or
remedies), Borrower shall pay Bank a fee of $1,000 plus any out-of-pocket expenses incurred by Bank to compensate Bank for the anticipated costs and expenses of the cancellation or rescheduling. 

6.7 Insurance. Keep its business and the Collateral insured for risks and in amounts standard for companies in Borrower’s
industry and location and as Bank may reasonably request. Insurance policies shall be in a form, with companies, and in amounts that are satisfactory to Bank. All property policies shall have a lender’s loss


  
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payable endorsement showing Bank as an additional lender loss payee and waive subrogation against Bank. All liability policies shall show, or have endorsements showing, Bank as an additional
insured. All policies (or the loss payable and additional insured endorsements) shall provide that the insurer shall give Bank at least twenty (20) days notice before canceling, amending, or declining to renew its policy. At Bank’s
request, Borrower shall deliver certified copies of policies and evidence of all premium payments. Proceeds payable under any property policy shall, at Bank’s option, be payable to Bank on account of the Obligations. Notwithstanding the
foregoing, (a) so long as no Event of Default has occurred and is continuing, Borrower shall have the option of applying the proceeds of any casualty policy up to $100,000, in the aggregate, toward the replacement or repair of destroyed or
damaged property; provided that any such replaced or repaired property (i) shall be of equal or like value as the replaced or repaired Collateral and (ii) shall be deemed Collateral in which Bank has been granted a first priority security
interest and (b) after the occurrence and during the continuance of an Event of Default, all proceeds payable under such casualty policy shall, at the option of Bank, be payable to Bank on account of the Obligations. If Borrower fails to obtain
insurance as required under this Section 6.7 or to pay any amount or furnish any required proof of payment to third persons and Bank, Bank may make all or part of such payment or obtain such insurance policies required in this Section 6.7,
and take any action under the policies Bank deems prudent. 
 6.8 Operating Accounts. 

(a) Maintain all of its and all of its U.S. Subsidiaries’ operating and other deposit accounts and securities accounts with Bank and
Bank’s Affiliates; provided, however, that Borrower may maintain no more than $100,000 in PayPal accounts, in the aggregate, at all times; 
 (b) Provide Bank five (5) days prior written notice before establishing any Collateral Account at or with any bank or financial institution other than Bank or Bank’s Affiliates. For each
Collateral Account that Borrower at any time maintains, Borrower shall cause the applicable bank or financial institution (other than Bank) at or with which any Collateral Account is maintained to execute and deliver a Control Agreement or other
appropriate instrument with respect to such Collateral Account to perfect Bank’s Lien in such Collateral Account in accordance with the terms hereunder which Control Agreement may not be terminated without the prior written consent of Bank. The
provisions of the previous sentence shall not apply to deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of Borrower’s employees and identified to Bank by Borrower as
such. 
 6.9 Financial Covenants. 
 (a) Liquidity Ratio. Maintain as of the last day of each month, on a consolidated basis with respect to Parent and its Subsidiaries, a Liquidity Ratio of at least 1.15 to 1.0. 

(b) EBITDA. If, for any Testing Month, Parent’s and its Subsidiaries’ Liquidity Ratio is less than 1.5 to 1.0, also
maintain, on a consolidated basis with respect to Parent and its Subsidiaries, as of the last day of each fiscal quarter during the following periods, EBITDA of at least the following: 

 

					
	For the Quarter(s) Ending:	  	Minimum EBITDA	 
		
	 December 31, 2009 and March 31, 2010
	  	($	1,250,000	) 
		
	 June 30, 2010
	  	($	500,000	) 
		
	 September 30, 2010
	  	$	250,000	  
		
	 December 31, 2010 and thereafter
	  	$	500,000	  

 6.10 Protection of Intellectual Property Rights. 

(a) (i) Protect, defend and maintain the validity and enforceability of its Intellectual Property; (ii) promptly advise Bank in
writing of material infringements of its Intellectual Property; and (iii) not allow any Intellectual Property material to Borrower’s business to be abandoned, forfeited or dedicated to the public without Bank’s written consent.


  
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 (b) Provide written notice to Bank within ten (10) days of entering or becoming bound
by any Restricted License (other than over-the-counter software that is commercially available to the public. 
 (c) Borrower
shall take such steps as Bank requests to obtain the consent of, or waiver by, any person whose consent or waiver is necessary for (i) any Restricted License to be deemed “Collateral” and for Bank to have a security interest in it
that might otherwise be restricted or prohibited by law or by the terms of any such Restricted License, whether now existing or entered into in the future, and (ii) Bank to have the ability in the event of a liquidation of any Collateral to
dispose of such Collateral in accordance with Bank’s rights and remedies under this Agreement and the other Loan Documents. 
 6.11 Litigation Cooperation. From the date hereof and continuing through the termination of this Agreement, make available to Bank, without expense to Bank, Borrower and its officers, employees and
agents and Borrower’s books and records, to the extent that Bank may deem them reasonably necessary to prosecute or defend any third-party suit or proceeding instituted by or against Bank with respect to any Collateral or relating to Borrower.

 6.12 Further Assurances. Execute any further instruments and take further action as Bank reasonably requests to
perfect or continue Bank’s Lien in the Collateral or to effect the purposes of this Agreement. Deliver to Bank, within five (5) days after the same are sent or received, copies of all correspondence, reports, documents and other filings
with any Governmental Authority that could reasonably be expected to cause a Material Adverse Change. 
  

	 	7	NEGATIVE COVENANTS 


No Borrower shall do any of the following without Bank’s prior written consent: 

7.1 Dispositions. Convey, sell, lease, transfer, assign, 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 worn-out or obsolete Equipment; (c) in connection with Permitted
Liens and Permitted Investments (d) transfers of investment property of Borrower for the sole purpose of obtaining replacement investment property with the proceeds of such transfer; provided that Bank at all times has a first perfected
security interest therein, or (e) other assets of Borrower or its Subsidiaries that do not, in the aggregate, exceed $150,000 during any fiscal year. 
 7.2 Changes in Business, Management, Ownership, or Business Locations. (a) Engage in or permit any of its Subsidiaries to engage in any business other than the businesses currently engaged in
by Borrower and such Subsidiary, as applicable, or reasonably related thereto; (b) liquidate or dissolve; or (c) (i) if either of Parent’s Chief Executive Officer or Chief Operating Officer ceases to hold such office and is not
replaced with another officer reasonably satisfactory to Bank within 30 days or (ii) enter into any transaction or series of related transactions in which the stockholders of Borrower who were not stockholders immediately prior to the first
such transaction own more than 51% of the voting stock of Borrower immediately after giving effect to such transaction or related series of such transactions (other than by the sale of Borrower’s equity securities in a public offering or to
venture capital investors so long as Borrower identifies to Bank the venture capital investors prior to the closing of the transaction and provides to Bank a description of the material terms of the transaction). 

Borrower shall not, without at least thirty (30) days prior written notice to Bank: (1) add any new offices or business
locations, including warehouses (unless such new offices or business locations contain less than Fifty Thousand Dollars ($50,000) in Borrower’s assets or property) or deliver any portion of the Collateral valued, individually or in the
aggregate, in excess of Fifty Thousand Dollars ($50,000) to a bailee at a location other than to a bailee and at a location already disclosed in the Perfection Certificate, (2) change its jurisdiction of organization, (3) change its
organizational structure or type, (4) change its legal name, or (5) change any organizational number (if any) assigned by its jurisdiction of organization. If Borrower intends to deliver any portion of the Collateral valued, individually
or in the aggregate, in excess of Fifty Thousand Dollars ($50,000) to a bailee, and Bank and such bailee are not already parties to a bailee agreement governing both the Collateral and the location to which Borrower intends to deliver the
Collateral, then Borrower will first receive the written consent of Bank, and such bailee shall execute and deliver a bailee agreement in form and substance satisfactory to Bank in its sole discretion. 

  
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 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 (a) (i) total consideration including cash
and the value of any non-cash consideration, for all such transactions does not in the aggregate exceed One Million Dollars ($1,000,000) in any fiscal year of Borrower; (ii) no Event of Default has occurred and is continuing or would exist
after giving effect to the transactions; (iii) Borrower can show post-acquisition pro forma compliance with the applicable financial covenants set forth in Section 6.9, and (iv) Borrower is the surviving legal entity or (b) the
Obligations are repaid in full concurrently with such transaction and this Agreement is terminated. A Subsidiary may merge or consolidate into another Subsidiary or into Borrower. A Subsidiary may merge or consolidate into another Subsidiary or into
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. Except for Permitted Liens, create, incur, allow, or suffer
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, permit any Collateral not to be subject to the first
priority security interest granted herein, or enter into any agreement, document, instrument or other arrangement (except with or in favor of Bank) with any Person which directly or indirectly prohibits or has the effect of prohibiting Borrower or
any Subsidiary from assigning, mortgaging, pledging, granting a security interest in or upon, or encumbering any of Borrower’s or any Subsidiary’s Intellectual Property, except as is otherwise permitted in Section 7.1 hereof and the
definition of “Permitted Liens” herein. 
 7.6 Maintenance of Collateral Accounts. Maintain any Collateral
Account except pursuant to the terms of Section 6.8(b) hereof. 
 7.7 Distributions; Investments.
(a) Pay any dividends or make any distribution or payment or redeem, retire or purchase any capital stock per fiscal year; provided that, (i) Borrower may convert any of its convertible securities into other securities pursuant to the
terms of such convertible securities or otherwise in exchange thereof, (ii) Borrower may pay dividends solely in common stock, (iii) Borrower may repurchase no more than $50,000 worth of stock of former employees, consultants or directors
pursuant to stock repurchase agreements, in the aggregate, per annum, so long as an Event of Default does not exist at the time of such repurchase and would not exist after giving effect to such repurchase; and (iv) Borrower may repurchase the
stock of former employees, consultants or directors pursuant to stock repurchase agreements by the cancellation of indebtedness owed by such former employees, consultants or directors to Borrower regardless of whether an Event of Default exists; or
(b) directly or indirectly make any Investment other than Permitted Investments, or permit any of its Subsidiaries to do so. 
 7.8 Transactions with Affiliates. Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower, except for (i) transactions that are in the
ordinary course of Borrower’s business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm’s length transaction with a non-affiliated Person, (ii) transactions permitted pursuant to
the terms of Section 7.3 hereof, and (iii) transactions that would otherwise be permitted pursuant to subsection (f) of the definition of “Permitted Investments”. 

7.9 Subordinated Debt. (a) Make or permit any payment on any Subordinated Debt, except under the terms of the subordination,
intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any document relating to the Subordinated Debt which would increase the amount thereof or adversely affect the subordination
thereof to Obligations owed to Bank. 
 7.10 Compliance. Become an “investment company” or a company controlled
by an “investment company”, under the Investment Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of
the Federal Reserve System), 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 permit any of its Subsidiaries to do so; withdraw or
permit any Subsidiary to withdraw from participation in, permit partial or 

  
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complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation plan which could reasonably be expected to
result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 
  

	 	8	EVENTS OF DEFAULT 


Any one of the following shall constitute an event of default (an “Event of Default”) under this Agreement: 

8.1 Payment Default. Any Borrower fails to (a) make any payment of principal or interest on any Credit Extension on its due
date, or (b) pay any other Obligations within three (3) Business Days after such Obligations are due and payable (which three (3) Business Day cure period shall not apply to payments due on the Revolving Line Maturity Date or Term
Loan Maturity Date). During the cure period, the failure to make or pay any payment specified under clause (a) or (b) hereunder is not an Event of Default (but no Credit Extension will be made during the cure period); 

8.2 Covenant Default. 
 (a) Any Borrower fails or neglects to perform any obligation in Sections 6.2, 6.5, 6.7, 6.8, 6.9, or 6.10(c), or violates any covenant in Section 7; or 

(b) Any Borrower fails or neglects to perform, keep, or observe any other term, provision, condition, covenant or agreement contained in
this Agreement or any Loan Documents, and as to any default (other than those specified in this Section 8) under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the default within ten
(10) days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or cannot after diligent attempts by such Borrower be cured within such ten (10) day period,
and such default is likely to be cured within a reasonable time, then such Borrower shall have an additional period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, and within such reasonable time period
the failure to cure the default shall not be deemed an Event of Default (but no Credit Extensions shall be made during such cure period). Cure periods provided under this section shall not apply, among other things, to financial covenants or any
other covenants set forth in clause (a) above; 
 8.3 Material Adverse Change. A Material Adverse Change occurs;

 8.4 Attachment; Levy; Restraint on Business. 
 (a) (i) The service of process seeking to attach, by trustee or similar process, any funds of any Borrower or of any entity under the control of any Borrower (including a Subsidiary) on deposit or
otherwise maintained with Bank or any Bank Affiliate, or (ii) a notice of lien or levy is filed against any of any Borrower’s assets by any government agency, and the same under subclauses (i) and (ii) hereof are not, within ten
(10) days after the occurrence thereof, discharged or stayed (whether through the posting of a bond or otherwise); provided, however, no Credit Extensions shall be made during any ten (10) day cure period; or 

(b) (i) any material portion of any Borrower’s assets is attached, seized, levied on, or comes into possession of a trustee or
receiver, or (ii) any court order enjoins, restrains, or prevents any Borrower from conducting any material part of its business; 
 8.5 Insolvency. (a) Any Borrower is unable to pay its debts (including trade debts) as they become due or otherwise becomes insolvent; (b) any Borrower begins an Insolvency Proceeding; or
(c) an Insolvency Proceeding is begun against any Borrower and not dismissed or stayed within thirty (30) days (but no Credit Extensions shall be made while of any of the conditions described in clause (a) exist and/or until any
Insolvency Proceeding is dismissed); 
 8.6 Other Agreements. There is, under any agreement to which any Borrower is a
party with a third party or parties, (a) any default resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount individually or in the aggregate in excess of One
Hundred Fifty Thousand Dollars ($150,000); or (b) any default by any Borrower, the result of which could have a material adverse effect on such Borrower’s business; 

  
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 8.7 Judgments. Other than a judgment not exceeding 280,000 Australian Dollars in
connection with the litigation disclosed in Borrower’s Perfection Certificate submitted on the Effective Date, one or more final judgments, orders, or decrees for the payment of money in an amount, individually or in the aggregate, of at least
One Hundred Fifty Thousand Dollars ($150,000) (not covered by independent third-party insurance as to which liability has been accepted by such insurance carrier) shall be rendered against any Borrower and the same are not, within ten (10) days
after the entry thereof, discharged or execution thereof stayed or bonded pending appeal, or such judgments are not discharged prior to the expiration of any such stay (provided that no Credit Extensions will be made prior to the discharge, stay, or
bonding of such judgment, order, or decree); 
 8.8 Misrepresentations. Any Borrower or any Person acting for any
Borrower makes any representation, warranty, or other statement now or later in this Agreement, any Loan Document or in any writing delivered to Bank or to induce Bank to enter this Agreement or any Loan Document, and such representation, warranty,
or other statement is incorrect in any material respect when made; 
 8.9 Subordinated Debt. Any document, instrument, or
agreement evidencing any Subordinated Debt shall for any reason be revoked or invalidated or otherwise cease to be in full force and effect, any Person shall be in breach thereof or contest in any manner the validity or enforceability thereof or
deny that it has any further liability or obligation thereunder, or the Obligations shall for any reason be subordinated or shall not have the priority contemplated by this Agreement; or 

 

	 	9	BANK’S RIGHTS AND REMEDIES 

 9.1 Rights and Remedies. While an Event of Default occurs and continues Bank 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 Bank); 
 (b) stop advancing money or extending credit for Borrowers’
benefit under this Agreement or under any other agreement between Borrower and Bank; 
 (c) demand that Borrower
(i) deposit cash with Bank in an amount equal to 105% (for U.S. Dollar denominated Letters of Credit) or 110% (for Foreign Currency denominated Letters of Credit) of the Dollar Equivalent of the aggregate face amount of all Letters of
Credit remaining undrawn (plus all interest, fees, and costs due or to become due in connection therewith (as estimated by Bank in its good faith business judgment)), to secure all of the Obligations relating to such Letters of Credit, as collateral
security for the repayment of any future drawings under such Letters of Credit, and Borrower shall forthwith deposit and pay such amounts, and (ii) pay in advance all letter of credit fees scheduled to be paid or payable over the remaining term
of any Letters of Credit; 
 (d) terminate any FX Forward Contracts; 

(e) settle or adjust disputes and claims directly with Account Debtors for amounts on terms and in any order that Bank considers
advisable, notify any Person owing Borrowers money of Bank’s security interest in such funds, and verify the amount of such account; 
 (f) make any payments and do any acts it considers necessary or reasonable to protect the Collateral and/or its security interest in the Collateral. Each Borrower shall assemble the Collateral if Bank
requests and make it available as Bank designates. Bank 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. Borrower grants Bank a license to enter and occupy any of its premises, without charge, to exercise any of Bank’s rights or remedies; 

(g) apply to the Obligations any (i) balances and deposits of each Borrower it holds, or (ii) any amount held by Bank owing to
or for the credit or the account of any Borrower; 

  
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 (h) ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for
sale, and sell the Collateral. Bank is hereby granted a non-exclusive, royalty-free license or other right to use, without charge, each Borrower’s labels, Patents, Copyrights, mask works, rights of use of any name, trade secrets, trade names,
Trademarks, 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 Bank’s exercise of its rights under this
Section, each Borrower’s rights under all licenses and all franchise agreements inure to Bank’s benefit; 
 (i) place
a “hold” on any account maintained with Bank and/or deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any Control Agreement or similar agreements providing control of any
Collateral; 
 (j) demand and receive possession of each Borrower’s Books; and 

(k) exercise all rights and remedies available to Bank under the Loan Documents or at law or equity, including all remedies provided
under the Code (including disposal of the Collateral pursuant to the terms thereof). 
 9.2 Power of Attorney. Each
Borrower hereby irrevocably appoints Bank as its lawful attorney-in-fact, exercisable upon the occurrence and during the continuance of an Event of Default, 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) settle and adjust disputes and claims about the Accounts directly with Account Debtors, for amounts and on
terms Bank determines reasonable; (d) make, settle, and adjust all claims under such Borrower’s insurance policies; (e) pay, contest or settle any Lien, charge, encumbrance, security interest, and adverse claim in or to the
Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and (f) transfer the Collateral into the name of Bank or a third party as the Code permits. Each Borrower hereby appoints Bank as its
lawful attorney-in-fact to sign Borrower’s name on any documents necessary to perfect or continue the perfection of Bank’s security interest in the Collateral regardless of whether an Event of Default has occurred until all Obligations
(other than inchoate indemnity obligations) have been satisfied in full and Bank is under no further obligation to make Credit Extensions hereunder. Bank’s foregoing appointment as each Borrower’s attorney in fact, and all of Bank’s
rights and powers, coupled with an interest, are irrevocable until all Obligations (other than inchoate indemnity obligations) have been fully repaid and performed and Bank’s obligation to provide Credit Extensions terminates. 

9.3 Protective Payments. If any Borrower fails to obtain the insurance called for by Section 6.7 or fails to pay any premium
thereon or fails to pay any other amount which such Borrower is obligated to pay under this Agreement or any other Loan Document, Bank may obtain such insurance or make such payment, and all amounts so paid by Bank are Bank Expenses and immediately
due and payable, bearing interest at the then highest rate applicable to the Obligations, and secured by the Collateral. Bank will make reasonable efforts to provide Borrowers with notice of Bank obtaining such insurance at the time it is obtained
or within a reasonable time thereafter. No payments by Bank are deemed an agreement to make similar payments in the future or Bank’s waiver of any Event of Default. 
 9.4 Application of Payments and Proceeds. If an Event of Default has occurred and is continuing, Bank may apply any funds in its possession, whether from Borrowers’ account balances, payments,
proceeds realized as the result of any collection of Accounts or other disposition of the Collateral, or otherwise, to the Obligations in such order as Bank shall determine in its sole discretion. Any surplus shall be paid to Borrowers by credit to
the Designated Deposit Account or to other Persons legally entitled thereto, and Borrowers shall remain liable to Bank for any deficiency. If Bank, in its good faith business judgment, directly or indirectly enters into a deferred payment or other
credit transaction with any purchaser at any sale of Collateral, Bank shall have the option, exercisable at any time, of either reducing the Obligations by the principal amount of the purchase price or deferring the reduction of the Obligations
until the actual receipt by Bank of cash therefor. 
 9.5 Bank’s Liability for Collateral. So long as Bank complies
with reasonable banking practices regarding the safekeeping of the Collateral in the possession or under the control of Bank, Bank shall not be 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. 

  
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 9.6 No Waiver; Remedies Cumulative. Bank’s failure, at any time or times, to
require strict performance by any Borrower of any provision of this Agreement or any other Loan Document shall not waive, affect, or diminish any right of Bank thereafter to demand strict performance and compliance herewith or therewith. No waiver
hereunder shall be effective unless signed by the party granting the waiver and then is only effective for the specific instance and purpose for which it is given. Bank’s rights and remedies under this Agreement and the other Loan Documents are
cumulative. Bank has all rights and remedies provided under the Code, by law, or in equity. Bank’s exercise of one right or remedy is not an election and shall not preclude Bank from exercising any other remedy under this Agreement or other
remedy available at law or in equity, and Bank’s waiver of any Event of Default is not a continuing waiver. Bank’s delay in exercising any remedy is not a waiver, election, or acquiescence. 

9.7 Demand Waiver. Each Borrower waives demand, notice of default or dishonor, 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 guarantees held by Bank on which such Borrower is liable. 

 

	 	10	NOTICES 

 All
notices, consents, requests, approvals, demands, or other communication by any party to this Agreement or any other Loan Document must be in writing and shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of
actual receipt and three (3) Business Days after deposit in the U.S. mail, first class, registered or certified mail return receipt requested, with proper postage prepaid; (b) upon transmission, when sent by electronic mail or facsimile
transmission; (c) one (1) Business Day after deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and
sent to the address, facsimile number, or email address indicated below. Bank or Borrowers may change their mailing or electronic mail address or facsimile number by giving the other party written notice thereof in accordance with the terms of this
Section 10. 
  

					
		 	If to Borrowers:	  	 c/o ChannelAdvisor Corporation

2701 Aerial Center Parkway
 Morrisville, NC
27560
 Attn: David Spitz, Chief Operating Officer
 Fax: (919) 388-9405

Email:    david.spitz@channeladvisor.com

			
		 	If to Bank:	  	 Silicon Valley Bank
 3005
Carrington Mill Blvd, Suite 530
 Chapel Hill, NC 27560
 Attention:               Corey Waters
 Telephone: #          (919) 442-2302
 Facsimile
No.:        (919) 461-3908
 Email:    cwaters@svb.com


  

	 	11	CHOICE OF LAW, VENUE, JURY TRIAL WAIVER AND JUDICIAL REFERENCE 

 North Carolina law governs the Loan Documents without regard to principles of conflicts of law. Each Borrower and Bank each submit to the exclusive jurisdiction of the State and Federal courts in Wake
County, North Carolina; provided, however, that nothing in this Agreement shall be deemed to operate to preclude Bank from bringing suit or taking other legal action in any other jurisdiction to realize on the Collateral or any other security for
the Obligations, or to enforce a judgment or other court order in favor of Bank. Each Borrower expressly submits and consents in advance to such jurisdiction in any action or suit commenced in any such court, and each Borrower hereby waives any
objection that it may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such court. Each Borrower hereby waives
personal service of the summons, complaints, and other process issued in such action or suit and agrees that service of such summons, complaints, and other process may be made by registered or certified mail addressed to such Borrower at the address
set forth in, or subsequently provided by Borrowers in accordance with, Section 10 of this Agreement and that service so made shall be deemed completed upon the earlier to occur of such Borrower’s actual receipt thereof or three
(3) days after deposit in the U.S. mails, proper postage prepaid. 

  
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 TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWERS AND BANK EACH WAIVE THEIR
RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, 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. 
  

	 	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. No
Borrower may assign this Agreement or any rights or obligations under it without Bank’s prior written consent (which may be granted or withheld in Bank’s discretion). Bank has the right, without the consent of or notice to Borrowers, to
sell, transfer, assign, negotiate, or grant participation in all or any part of, or any interest in, Bank’s obligations, rights, and benefits under this Agreement and the other Loan Documents. 

12.2 Indemnification. Each Borrower agrees to indemnify, defend and hold Bank and its directors, officers, employees, agents,
attorneys, or any other Person affiliated with or representing Bank (each, an “Indemnified Person”) harmless against: (a) all obligations, demands, claims, and liabilities (collectively, “Claims”) claimed or
asserted by any other party in connection with the transactions contemplated by the Loan Documents; and (b) all losses or expenses (including Bank Expenses) in any way suffered, incurred, or paid by such Indemnified Person as a result of,
following from, consequential to, or arising from transactions between Bank and Borrowers (including reasonable attorneys’ fees and expenses), except for Claims and/or losses directly caused by such Indemnified Person’s gross negligence or
willful misconduct. 
 12.3 Time of Essence. Time is of the essence for the performance of all Obligations in this
Agreement. 
 12.4 Severability of Provisions. Each provision of this Agreement is severable from every other provision
in determining the enforceability of any provision. 
 12.5 Correction of Loan Documents. Bank may correct patent errors
and fill in any blanks in the Loan Documents consistent with the agreement of the parties. 
 12.6 Amendments in Writing;
Waiver; Integration. No purported amendment or modification of any Loan Document, or waiver, discharge or termination of any obligation under any Loan Document, shall be enforceable or admissible unless, and only to the extent, expressly set
forth in a writing signed by the party against which enforcement or admission is sought. Without limiting the generality of the foregoing, no oral promise or statement, nor any action, inaction, delay, failure to require performance or course of
conduct shall operate as, or evidence, an amendment, supplement or waiver or have any other effect on any Loan Document. Any waiver granted shall be limited to the specific circumstance expressly described in it, and shall not apply to any
subsequent or other circumstance, whether similar or dissimilar, or give rise to, or evidence, any obligation or commitment to grant any further waiver. The Loan Documents represent the entire agreement about this subject matter and supersede prior
negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of the Loan Documents merge into the Loan Documents. 

12.7 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, is an original, and all taken together, constitute one Agreement. 
 12.8
Survival. All covenants, representations and warranties made in this Agreement continue in full force until this Agreement has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other
obligations which, by their terms, are to survive the termination of this Agreement) have been satisfied. The obligation of Borrowers in Section 12.3 to indemnify Bank shall survive until the statute of limitations with respect to such claim or
cause of action shall have run. 

  
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 12.9 Confidentiality. In handling any confidential information, Bank shall exercise
the same degree of care that it exercises for its own proprietary information, but disclosure of information may be made: (a) to Bank’s Subsidiaries or Affiliates; (b) to prospective transferees or purchasers of any interest in the
Credit Extensions (provided, however, Bank shall use its best efforts to obtain any prospective transferee’s or purchaser’s agreement to the terms of this provision); (c) as required by law, regulation, subpoena, or other order;
(d) to Bank’s regulators or as otherwise required in connection with Bank’s examination or audit; (e) as Bank considers appropriate in exercising remedies under the Loan Documents; and (f) to third-party service providers of
Bank so long as such service providers have executed a confidentiality agreement with Bank with terms no less restrictive than those contained herein. Confidential information does not include information that is either: (i) in the public
domain or in Bank’s possession when disclosed to Bank, or becomes part of the public domain after disclosure to Bank through no fault of Bank; or (ii) disclosed to Bank by a third party, if Bank does not know that the third party is
prohibited from disclosing the information. 
 Bank may use confidential information for the development of databases, reporting
purposes, and market analysis so long as such confidential information is aggregated and anonymized prior to distribution unless otherwise expressly permitted by Borrowers. The provisions of the immediately preceding sentence shall survive
the termination of this Agreement. 
 12.10 Attorneys’ Fees, Costs and Expenses. In any action or proceeding between
a Borrower and Bank arising out of or relating to the Loan Documents, the prevailing party shall 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. 
 12.11 Electronic Execution of Documents. The words “execution,” “signed,”
“signature” and words of like import in any Loan Document shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity and enforceability as a
manually executed signature or the use of a paper-based recordkeeping systems, as the case may be, to the extent and as provided for in any applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions
Act. 
 12.12 Captions. The headings used in this Agreement are for convenience only and shall not affect the
interpretation of this Agreement. 
 12.13 Construction of Agreement. The parties mutually acknowledge that they and
their attorneys have participated in the preparation and negotiation of this Agreement. In cases of uncertainty this Agreement shall be construed without regard to which of the parties caused the uncertainty to exist. 

12.14 Relationship. The relationship of the parties to this Agreement is determined solely by the provisions of this Agreement.
The parties do not intend to create any agency, partnership, joint venture, trust, fiduciary or other relationship with duties or incidents different from those of parties to an arm’s-length contract. 

12.15 Third Parties. Nothing in this Agreement, whether express or implied, is intended to: (a) confer any benefits, rights
or remedies under or by reason of this Agreement on any persons other than the express parties to it and their respective permitted successors and assigns; (b) relieve or discharge the obligation or liability of any person not an express party
to this Agreement; or (c) give any person not an express party to this Agreement any right of subrogation or action against any party to this Agreement. 
  

	 	13	DEFINITIONS 


13.1 Definitions. As used in the Loan Documents, the word “shall” is mandatory, the word “may” is permissive,
the word “or” is not exclusive, the words “includes” and “including” are not limiting, the singular includes the plural, and numbers denoting amounts that are set off in brackets are negative. As used in this Agreement,
the following capitalized terms have the following meanings: 
 “Account” is any “account” as defined
in the Code with such additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other sums owing to a Borrower. 
 “Account Debtor” is any “account debtor” as defined in the Code with such additions to such term as may hereafter be made. 

  
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 “Advance” or “Advances” means an advance (or advances)
under the Revolving Line. 
 “Affiliate” is, with respect to any Person, each other 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. 
 “Agreement” is defined in the preamble hereof.

 “Availability Amount” is (a) the lesser of (i) the Revolving Line or (ii) the amount
available under the Borrowing Base minus (b) the FX Reduction Amount, minus (c) any amounts used for Cash Management Services, and minus (d) the outstanding principal balance of any Advances. 

“Bank” is defined in the preamble hereof. 
 “Bank Expenses” are all audit fees and expenses, costs, and expenses (including reasonable attorneys’ fees and expenses) for preparing, amending, negotiating, administering,
defending and enforcing the Loan Documents (including, without limitation, those incurred in connection with appeals or Insolvency Proceedings) or otherwise incurred with respect to a Borrower. 

“Borrower(s)” is defined in the preamble hereof 

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

“Borrowing Base” is 80% of Eligible Accounts, as determined by Bank from Borrowers’ most recent Transaction Report;
provided, however, that Bank may decrease the foregoing percentages in its good faith business judgment based on events, conditions, contingencies, or risks which, as determined by Bank, may adversely affect Collateral. 

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

“Cash Burn” is defined in Section 6.9. 
 “Cash Equivalents” means (a) marketable direct obligations issued or unconditionally guaranteed by the United States or any agency or any State thereof having maturities of not more
than one (1) year from the date of acquisition; (b) commercial paper maturing no more than one (1) year after its creation and having the highest rating from either Standard & Poor’s Ratings Group or Moody’s
Investors Service, Inc.; (c) Bank’s certificates of deposit issued maturing no more than one (1) year after issue; (d) other Investments permitted by Borrower’s investment policy, as amended from time to time, which
investment policy, as amended, has been approved by Bank in writing; and (e) money market funds at least ninety-five percent (95%) of the assets of which constitute Cash Equivalents of the kinds described in clauses (a) through
(d) of this definition. 
 “Cash Management Services” is defined in Section 2.1.4. 

“Code” is the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in the State of
North Carolina; provided, that, to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently in different Articles or Divisions of the Code, the definition of such term contained in
Article or Division 9 shall govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority of, or remedies with respect to, Bank’s Lien on any Collateral is
governed by the Uniform Commercial Code in effect in a jurisdiction other than the State of North Carolina, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for
purposes of the provisions thereof relating to such attachment, perfection, priority, or remedies and for purposes of definitions relating to such provisions. 
 “Collateral” is any and all properties, rights and assets of Borrower described on Exhibit A. 

  
 -21-









 “Collateral Account” is any Deposit Account, Securities Account, or
Commodity Account. 
 “Collateral Assignments” are those certain Collateral Assignments of the Intercompany
Note executed by Parent in favor of Bank. 
 “Commodity Account” is any “commodity account” as
defined in the Code with such additions to such term as may hereafter be made. 
 “Compliance Certificate” is
that certain certificate in the form attached hereto as Exhibit B. 
 “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, in each case, 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 any guarantee or other support arrangement. 

“Control Agreement” is any control agreement entered into among the depository institution at which Borrower maintains a
Deposit Account or the securities intermediary or commodity intermediary at which a Borrower maintains a Securities Account or a Commodity Account, a Borrower, and Bank pursuant to which Bank obtains control (within the meaning of the Code) over
such Deposit Account, Securities Account, or Commodity Account. 
 “Copyrights” are any and all copyright
rights, copyright applications, copyright registrations and like protections in each work or authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret. 

“Country Limitation Schedule” shall mean the schedule published from time to time by EX-IM Bank setting forth, on a
country by country basis, whether, and under what conditions, EX-IM Bank will provide coverage for the financing of export transactions to the countries listed therein. 
 “Credit Extension” is any Advance, Term Loan, FX Forward Contract, amount utilized for Cash Management Services, or any other extension of credit by Bank for a Borrower’s benefit.

 “Default Rate” is defined in Section 2.3(b). 

“Deferred Revenue” is all amounts received or invoiced in advance of performance under contracts and not yet
recognized as revenue. 
 “Deposit Account” is any “deposit account” as defined in the Code
with such additions to such term as may hereafter be made. 
 “Designated Deposit Account” is: for Parent,
account number                          maintained with Bank. 

“Dollars,” “dollars” or use of the sign “$” means only lawful money of the
United States and not any other currency, regardless of whether that currency uses the “$” sign to denote its currency or may be readily converted into lawful money of the United States. 

“Dollar Equivalent” is, at any time, (a) with respect to any amount denominated in Dollars, such amount, and
(b) with respect to any amount denominated in a Foreign Currency, the equivalent amount therefor in Dollars as determined by Bank at such time on the basis of the then-prevailing rate of exchange in San Francisco, California, for sales of the
Foreign Currency for transfer to the country issuing such Foreign Currency. 

  
 -22-









 “Early Termination Fee” is defined in Section 2.1.1(c). 

“EBITDA” shall mean (a) Net Income, plus (b) Interest Expense, plus (c) to the extent deducted in the
calculation of Net Income, depreciation expense and amortization expense, plus (d) income tax expense. 

“Effective Date” is defined in the preamble hereof. 

“Eligible Accounts” means Accounts which arise in the ordinary course of a Borrower’s business that meet all
Borrower’s representations and warranties in Section 5.3. Bank reserves the right at any time after the Effective Date to adjust any of the criteria set forth below and to establish new criteria in its good faith business judgment. Unless
Bank otherwise agrees in writing, Eligible Accounts shall not include: 
 (a) Accounts that the Account Debtor has not paid
within ninety (90) days of invoice date regardless of invoice payment period terms; 
 (b) Accounts owing from an Account
Debtor, fifty percent (50%) or more of whose Accounts have not been paid within ninety (90) days of invoice date; 

(c) Accounts owing from an Account Debtor which does not have its principal place of business in the United States or other Eligible
Countries listed in the Country Limitation Schedule, unless such Accounts are otherwise Eligible Accounts and (i) covered in full by credit insurance satisfactory to Bank, less any deductible, (ii) supported by letter(s) of credit
acceptable to Bank, (iii) supported by a guaranty from the Export-Import Bank of the United States, or (iv) that Bank otherwise approves of in writing; 
 (d) Accounts over the Dollar Equivalent of $250,000 in the aggregate billed and/or payable outside of the United States by ChannelAdvisor GmbH and ChannelAdvisor (AU) Pty. Ltd.; 

(e) Other than as set forth in subsection (d), above, Accounts billed and/or payable outside of the United States; 

(f) Accounts owing from an Account Debtor to the extent that a Borrower is indebted or obligated in any manner to the Account Debtor (as
creditor, lessor, supplier or otherwise - sometimes called “contra” accounts, accounts payable, customer deposits or credit accounts), with the exception of customary credits, adjustments and/or discounts given to an Account Debtor by
Borrower in the ordinary course of its business; 
 (g) Accounts for which the Account Debtor is a Borrower’s Affiliate,
officer, employee, or agent; 
 (h) Accounts with credit balances over ninety (90) days from invoice date; 

(i) Accounts owing from an Account Debtor, including Affiliates, whose total obligations to Borrowers, in the aggregate, exceed
twenty-five percent (25%) of all Accounts, for the amounts that exceed that percentage, unless Bank approves in writing; 

(j) Accounts owing from an Account Debtor which is a United States government entity or any department, agency, or instrumentality
thereof unless a Borrower has assigned its payment rights to Bank and the assignment has been acknowledged under the Federal Assignment of Claims Act of 1940, as amended; 
 (k) Accounts for demonstration or promotional equipment, or in which goods are consigned, or sold on a “sale guaranteed”, “sale or return”, “sale on approval”, or other terms
if Account Debtor’s payment may be conditional; 
 (l) Accounts owing from an Account Debtor that has not been invoiced or
where goods or services have not yet been rendered to the Account Debtor (sometimes called memo billings or pre-billings); 

  
 -23-









 (m) Accounts subject to contractual arrangements between Borrower and an Account Debtor
where payments shall be scheduled or due according to completion or fulfillment requirements where the Account Debtor has a right of offset for damages suffered as a result of Borrower’s failure to perform in accordance with the contract
(sometimes called contracts accounts receivable, progress billings, milestone billings, or fulfillment contracts); 
 (n)
Accounts owing from an Account Debtor the amount of which may be subject to withholding based on the Account Debtor’s satisfaction of Borrower’s complete performance (but only to the extent of the amount withheld; sometimes called
retainage billings); 
 (o) Accounts subject to trust provisions, subrogation rights of a bonding company, or a statutory trust;

 (p) Accounts owing from an Account Debtor that has been invoiced for goods that have not been shipped to the Account Debtor
unless Bank, the applicable Borrower, and the Account Debtor have entered into an agreement acceptable to Bank in its sole discretion wherein the Account Debtor acknowledges that (i) it has title to and has ownership of the goods wherever
located, (ii) a bona fide sale of the goods has occurred, and (iii) it owes payment for such goods in accordance with invoices from such Borrower (sometimes called “bill and hold” accounts); 

(q) Accounts for which the Account Debtor has not been invoiced; 

(r) Accounts that represent non-trade receivables or that are derived by means other than in the ordinary course of Borrower’s
business; 
 (s) Accounts for which a Borrower has permitted Account Debtor’s payment to extend beyond 90 days; 

(t) Accounts subject to chargebacks or others payment deductions taken by an Account Debtor (but only to the extent the chargeback is
determined invalid and subsequently collected by a Borrower); 
 (u) Accounts in which the Account Debtor disputes liability or
makes any claim (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; and 

(v) Accounts for which Bank in its good faith business judgment, after inquiry and consultation with Borrower, determines collection to
be doubtful. 
 “Eligible Countries” are those countries listed on the Country Limitation Schedule where
support is available without such support being subject to any “notes” listed therein. 
 “Equipment”
is all “equipment” as defined in the Code with such additions to such term as may hereafter be made, and includes without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any
of the foregoing. 
 “ERISA” is the Employee Retirement Income Security Act of 1974, and its regulations.

 “Event of Default” is defined in Section 8. 

“Exchange Act” is the Securities Exchange Act of 1934, as amended. 

“Foreign Currency” means lawful money of a country other than the United States. 

“Funding Date” is any date on which a Credit Extension is made to or for the account of a Borrower which shall be a
Business Day. 
 “FX Business Day” is any day when (a) Bank’s Foreign Exchange Department is
conducting its normal business and (b) the Foreign Currency being purchased or sold by a Borrower is available to Bank from the entity from which Bank shall buy or sell such Foreign Currency. 

  
 -24-









 “FX Forward Contract” is defined in Section 2.1.3. 

“FX Reduction Amount” is defined in Section 2.1.3. 

“FX Reserve” is defined in Section 2.1.3. 
 “GAAP” is generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other Person as may be approved by a significant segment of the accounting profession, which are applicable to the
circumstances as of the date of determination. 
 “General Intangibles” is all “general intangibles”
as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation, all Intellectual Property, claims, income and other tax refunds, security and other deposits, payment
intangibles, contract rights, options to purchase or sell real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property
damage, and business interruption insurance), payments of insurance and rights to payment of any kind. 
 “Governmental
Approval” is any consent, authorization, approval, order, license, franchise, permit, certificate, accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority.

 “Governmental Authority” is any nation or government, any state or other political subdivision thereof, any
agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any
self-regulatory organization. 
 “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. 
 “Indemnified Person” is defined in Section 12.3. 

“Initial Audit” is Bank’s inspection of Borrowers’ Accounts and Borrowers’ Books, with results
satisfactory to Bank in its sole and absolute discretion. 
 “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” means all of a Borrower’s right, title, and
interest in and to the following: 
 (a) its Copyrights, Trademarks and Patents; 

(b) any and all trade secrets and trade secret rights, including, without limitation, any rights to unpatented inventions, know-how,
operating manuals; 
 (c) any and all source code; 
 (d) any and all design rights which may be available to a Borrower; 
 (e) any and
all claims for damages by way of past, present and future infringement of any of the foregoing, with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the Intellectual Property rights identified
above; and 
 (f) all amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents. 

  
 -25-









 “Intercompany Notes” are (a) that certain Intercompany Promissory Note
by ChannelAdvisor GmbH in favor of Parent in an amount of not less than $250,000, dated on or around the Effective Date and (b) that certain Intercompany Promissory Note by ChannelAdvisor (AU) Pty. Ltd. in favor of Parent in an amount of not
less than $250,000, dated on or around the Effective Date. 
 “Interest Expense” means for any fiscal period,
interest expense (whether cash or non-cash) determined in accordance with GAAP for the relevant period ending on such date, including, in any event, interest expense with respect to any Credit Extension and other Indebtedness of Parent and its
Subsidiaries, including, without limitation or duplication, all commissions, discounts, or related amortization and other fees and charges with respect to letters of credit and bankers’ acceptance financing and the net costs associated with
interest rate swap, cap, and similar arrangements, and the interest portion of any deferred payment obligation (including leases of all types). 
 “Inventory” is all “inventory” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all
merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products, including without limitation such inventory as is temporarily out of Borrower’s custody or possession or in transit and
including any returned goods and any documents of title representing any of the above. 
 “Investment” is any
beneficial ownership interest in any Person (including stock, partnership interest or other securities), and any loan, advance or capital contribution to any Person. 
 “Letter of Credit” means a standby letter of credit issued by Bank or another institution based upon an application, guarantee, indemnity or similar agreement on the part of Bank as set
forth in Section 2.1.2. 
 “Letter of Credit Application” is defined in Section 2.1.2(b). 

“Letter of Credit Reserve” has the meaning set forth in Section 2.1.2(e). 

“Lien” is a claim, mortgage, deed of trust, levy, charge, pledge, security interest or other encumbrance of any kind,
whether voluntarily incurred or arising by operation of law or otherwise against any property. 
 “Liquidity
Ratio” is a ratio of (a) unrestricted cash and Cash Equivalents plus 80% of Eligible Accounts to (b) outstanding Obligations. 
 “Loan Documents” are, collectively, this Agreement, the Collateral Assignments, the Securities Pledge Agreement, the Warrant, the Perfection Certificates, any note, or notes or guaranties
executed by Borrower, and any other present or future agreement between Borrower and/or for the benefit of Bank in connection with this Agreement, all as amended, restated, or otherwise modified. 

“Material Adverse Change” is (a) a material impairment in the perfection or priority of Bank’s Lien in
the Collateral or in the value of such Collateral; (b) a material adverse change in the business, operations, or condition (financial or otherwise) of Borrower; or (c) a material impairment of the prospect of repayment of any portion of
the Obligations.  
 “Make-Whole Premium” is an amount equal to (a) 1.0% of the outstanding
principal amount of the Term Loan, if the prepayment is made on or before the date that is 12 months from the Funding Date, (b) 0.75% of the outstanding principal amount of the Term Loan, if the prepayment is made after the date that is 12
months from the Funding date, but on or before the date that is 24 months from the Funding Date and (c) 0.5% thereafter of the outstanding principal amount of the Term Loan, if the prepayment is made after the date that is 24 months from the
Funding date, but before the date that is 36 months from the Funding Date. 
 “Monthly Financial Statements” is
defined in Section 6.2(c). 
 “Net Income” means, as calculated on a consolidated basis for Parent and its
Subsidiaries for any period as at any date of determination, the net profit (or loss), after provision for taxes, of Parent and its Subsidiaries for such period taken as a single accounting period. 

  
 -26-









 “Obligations” are Borrowers’ obligations to pay when due any debts,
principal, interest, Bank Expenses and other amounts Borrowers owe Bank now or later, whether under this Agreement, the Loan Documents (other than the Warrant), or otherwise, including, without limitation, all obligations relating to letters of
credit (including reimbursement obligations for drawn and undrawn letters of credit), cash management services, and foreign exchange contracts, if any, and including interest accruing after Insolvency Proceedings begin and debts, liabilities, or
obligations of Borrowers assigned to Bank, and to perform Borrowers’ duties under the Loan Documents (other than the Warrant). 
 “Overadvance” is defined in Section 2.2. 

“Patents” means all patents, patent applications and like protections including without limitation improvements,
divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same. 
 “Payment”
means all checks, wire transfers and other items of payment received by Bank (including proceeds of Accounts and payment of the Obligations in full) for credit to Borrower’s outstanding Credit Extensions or, if the balance of the Credit
Extensions has been reduced to zero, for credit to its deposit accounts. 
 “Perfection Certificate” is defined
in Section 5.1. 
 “Permitted Indebtedness” is: 

(a) each Borrower’s Indebtedness to Bank under this Agreement and the other Loan Documents; 

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

(c) Subordinated Debt; 
 (d) unsecured Indebtedness to trade creditors incurred in the ordinary course of business and with respect to surety bonds and similar obligations; 

(e) Indebtedness incurred as a result of endorsing negotiable instruments received in the ordinary course of business; 

(f) Indebtedness secured by Liens permitted under clauses (a) and (c) of the definition of “Permitted Liens”
hereunder; and 
 (g) extensions, refinancings, modifications, amendments and restatements of any items of Permitted
Indebtedness (a) through (f) above, provided that the principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be. 

“Permitted Investments” are: 
 (a) Investments (including, without limitation, Subsidiaries) existing on the Effective Date and shown on the Perfection Certificate; 

(b) Investments consisting of Cash Equivalents; 
 (c) Investments consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of Borrower; 

(d) Investments consisting of deposit accounts in which Bank has a perfected security interest; 

(e) Investments accepted in connection with Transfers permitted by Section 7.1; 

  
 -27-









 (f) Investments consisting of (i) travel advances and employee relocation loans and
other employee loans and advances in the ordinary course of business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of a Borrower or its Subsidiaries pursuant to employee stock purchase plans
or agreements approved by such Borrower’s Board of Directors; 
 (g) Investments (including debt obligations) received in
connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business; 

(h) joint ventures or strategic alliances consisting solely of the non-exclusive licensing of technology, the development of technology
or the providing of technical support; provided that there is no cash Investments by Borrower in connection therewith in excess of $150,000 in the aggregate in any fiscal year; 

(i) (i) Investments of Subsidiaries in or to other Subsidiaries or Borrower and (ii) so long as no Event of Default has occurred, is
continuing, or would result therefrom, no more than the Dollar Equivalent of $1,000,000 in Investments by Borrower in its Subsidiaries per annum; 
 (j) Investments pursuant to or arising under currency agreements or interest rate agreements entered into in the ordinary course of business; 

(k) Investments permitted under Section 7.3; 
 (l) Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who are not Affiliates, in the ordinary course of business; provided that
this paragraph (l) shall not apply to Investments of Borrower in any Subsidiary; and 
 (m) Other Investments not otherwise
permitted by Section 7.7 not exceeding $150,000 in the aggregate in any fiscal year. 
 “Permitted Liens”
are: 
 (a) Liens existing on the Effective Date and shown on the Perfection Certificate or arising under this Agreement and the
other Loan Documents; 
 (b) Liens for taxes, fees, assessments or other government charges or levies, either (i) not
delinquent or (ii) being contested in good faith and for which Borrower maintains adequate reserves on its Books, provided that no notice of any such Lien has been filed or recorded under the Internal Revenue Code of 1986, as amended,
and the Treasury Regulations adopted thereunder; 
 (c) purchase money Liens (including capital leases) (i) on Equipment
acquired or held by a Borrower 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) Liens of materialmen, mechanics, carriers, warehousemen, suppliers, or other Persons that are possessory in nature arising in the
ordinary course of business so long as such Liens attach only to Inventory, securing liabilities in the aggregate amount not to exceed Ten Thousand Dollars ($10,000) and which are not delinquent or remain payable without penalty or which are being
contested in good faith and by appropriate proceedings which proceedings have the effect of preventing the forfeiture or sale of the property subject thereto; 
 (e) Liens to secure payment of workers’ compensation, employment insurance, old-age pensions, social security and other like obligations incurred in the ordinary course of business (other than Liens
imposed by ERISA); 
 (f) leases or subleases of real property granted in the ordinary course of a Borrower’s business (or,
if referring to another Person, in the ordinary course of such Person’s business), and leases, subleases, non-exclusive licenses or sublicenses of personal property (other than Intellectual Property) granted in the ordinary course of a
Borrower’s business (or, if referring to another Person, in the ordinary course of such Person’s business), if the leases, subleases, licenses and sublicenses do not prohibit granting Bank a security interest therein; 

  
 -28-









 (g) (i) non-exclusive license of Intellectual Property granted to third parties in the
ordinary course of business, and (ii) other licenses of Intellectual Property that could not result in a legal transfer of title of the licensed property that may be exclusive in respects other than territory and that may be exclusive as to
territory only as to discreet geographical areas outside of the United States; and 
 (hi) Easements, reservations,
rights-of-way, restrictions, minor defects or irregularities in title and other similar Liens affecting real property not interfering in any material respect with the ordinary conduct of the business of Borrower; 

(i) deposits to secure the performance of bids, trade contracts (other than for borrowed money), contracts for the purchase of property,
leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in each case, incurred in the ordinary course of business and not representing an obligation for borrowed money; 

(j) other Liens not described above arising in the ordinary course of business and not having or not reasonably likely to have a material
adverse effect on Borrower and its Subsidiaries taken as a whole and not having any priority over the Lien in favor of Bank; 

(k) Liens arising from attachments or judgments, orders, or decrees in circumstances not constituting an Event of Default under Sections
8.4 and 8.7; 
 (l) Liens in favor of customs and revenue authorities arising in the ordinary course of Borrower’s business
and as a matter of law to secure payments of custom duties in connection with the importation of goods; and 
 (m) Liens
incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (l), 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. 

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

 “Registered Organization” is any “registered organization” as defined in the Code with such
additions to such term as may hereafter be made 
 “Requirement of Law” is as to any Person, the organizational
or governing documents of such Person, and any law (statutory or common), treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject. 
 “Reserves” means, as of any date of
determination, such amounts as Bank may from time to time establish and revise in its good faith business judgment, reducing the amount of Advances and other financial accommodations which would otherwise be available to Borrowers (a) to
reflect events, conditions, contingencies or risks which, as determined by Bank in its good faith business judgment, do or may adversely affect (i) the Collateral or any other property which is security for the Obligations or its value
(including without limitation any increase in delinquencies of Accounts), (ii) the assets, business or prospects of Borrowers, or (iii) the security interests and other rights of Bank in the Collateral (including the enforceability,
perfection and priority thereof); or (b) to reflect Bank’s good faith belief that any collateral report or financial information furnished by or on behalf of Borrowers to Bank is or may have been incomplete, inaccurate or misleading in any
material respect; or (c) in respect of any state of facts which Bank determines in good faith constitutes an Event of Default or may, with notice or passage of time or both, constitute an Event of Default. 

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

  
 -29-









 “Restricted License” is any material license or other agreement with
respect to which a Borrower is the licensee (a) 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, or (b) for which a
default under or termination of could interfere with the Bank’s right to sell any Collateral. 
 “Revolving
Line” is an Advance or Advances in an amount equal to Four Million Two Hundred Fifty Thousand Dollars ($4,250,000). 
 “Revolving Line Maturity Date” is the date that is 364 days from the Effective Date. 
 “SEC” shall mean the Securities and Exchange Commission, any successor thereto, and any analogous Governmental Authority. 

“Securities Account” is any “securities account” as defined in the Code with such additions to such term as
may hereafter be made. 
 “Securities Pledge Agreement” is that certain Securities Pledge Agreement by Parent
in favor of Bank, of even date herewith. 
 “Settlement Date” is defined in Section 2.1.2. 

“Subject Month” is the month which is two (2) calendar months after any Testing Month. 

“Subordinated Debt” is indebtedness incurred by a Borrower subordinated to all of such Borrower’s now or hereafter
indebtedness to Bank (pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Bank entered into between Bank and the other creditor), on terms acceptable to Bank. 

“Subsidiary” is, as to any Person, a corporation, partnership, limited liability company or other entity of which shares
of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other
managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person. Unless the context otherwise
requires, each reference to a Subsidiary herein shall be a reference to a Subsidiary of a Borrower. 
 “Term
Loan” is a loan made by Bank pursuant to the terms of Section 2.1.4 hereof. 
 “Term Loan Amount”
is an amount equal to Four Million Three Hundred Thousand Dollars ($4,300,000). 
 “Term Loan Maturity Date” is
the date that is December 1, 2012. 
 “Term Loan Payment” is defined in Section 2.1.4(b). 

“Testing Month” is any month with respect to which Bank has tested Liquidity Ratio of Parent and its Subsidiaries in
order to determine Bank’s method for calculating the interest rate on Advances. 
 “Trademarks” means any
trademark and servicemark rights, whether registered or not, applications to register and registrations of the same and like protections, and the entire goodwill of the business of a Borrower connected with and symbolized by such trademarks.

 “Transaction Report” is that certain report of transactions and schedule of collections in the form attached
hereto as Exhibit C. 
 “Transfer” is defined in Section 7.1. 

“Warrant” is that certain Warrant to Purchase Stock dated of even date herewith executed by Parent in favor of Bank.


  
 -30-









 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as
of the Effective Date. 
 BORROWERS: 

CHANNELADVISOR CORPORATION 
  

			
	By	 	 





	Name:	 	 M. SCOT WINGO

	Title:	 	 DIRECTOR/CEO

	
	MERCHANDISINGADVISOR CORPORATION
		
	By	 	 





	Name:	 	 M. SCOT WINGO

	Title:	 	 DIRECTOR

	
	CA MARKETPLACES, INC.
		
	By	 	 





	Name:	 	 M. SCOT WINGO

	Title:	 	 DIRECTOR

	
	BANK:
	
	SILICON VALLEY BANK
		
	By	 	 





	Name:	 	 ANTHONY BARKETT

	Title:	 	 VP


 [Signature Page to Loan and Security Agreement] 







 EXHIBIT A 
 The Collateral consists of all of each Borrower’s right, title and interest in and to the following personal property: 
 All goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, license agreements, franchise agreements, General Intangibles (except
as provided below), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, fixtures, letters of credit rights (whether or not the letter of credit is
evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and 

all Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all
substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing. 

Notwithstanding the foregoing, the Collateral does not include any of the following, whether now owned or hereafter acquired
(a) more than 65% of the presently existing and hereafter arising issued and outstanding shares of capital stock owned by Borrower of any Foreign Subsidiary which shares entitle the holder thereof to vote for directors or any other matter, or
(b) any Intellectual Property; provided, however, the Collateral shall include all Accounts, license and royalty fees and other revenues, proceeds, or income arising out of or relating to any of the foregoing. 

Pursuant to the terms of a certain negative pledge arrangement with Bank, each Borrower has agreed not to encumber any of its
Intellectual Property, without Bank’s prior written consent. 

  
 1 








 EXHIBIT B 

COMPLIANCE CERTIFICATE 
  

							
	TO:	  	SILICON VALLEY BANK	  		  	Date:                     
	FROM:	  	CHANNELADVISOR CORPORATION	  	

 The undersigned authorized officer of ChannelAdvisor Corporation (“Parent”) certifies on behalf Borrowers that
under the terms and conditions of the Loan and Security Agreement between Borrowers and Bank (the “Agreement”), (1) Borrowers are in complete compliance for the period ending
                     with all required covenants except as noted below, (2) there are no Events of Default, (3) all representations and
warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified
or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, (4) Each
Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports or timely filed extensions therefore, unless there is no payment of taxes due, and such Borrower has timely paid all foreign, federal, state and local
taxes, assessments, deposits and contributions owed by such Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement, (5) no Liens have been levied or claims made against any Borrower or any of its
Subsidiaries relating to unpaid employee payroll or benefits of which such Borrower has not previously provided written notification to Bank and (6) there were no held checks during such period. Attached are the required documents supporting
the certification. The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings
may be requested at any time or date of determination that Borrowers are not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not
otherwise defined herein shall have the meanings given them in the Agreement. 
 Please indicate compliance status by circling Yes/No under
“Complies” column. 
  

					
	 Reporting Covenant
	  	 Required
	  	 Complies

			
	Monthly financial statements with Compliance Certificate	  	Monthly within 30 days	  	Yes  No
	Annual financial statement (CPA Audited)	  	FYE within 180 days	  	Yes  No
	Transaction Report	  	Monthly within 30 days and with each Advance	  	Yes  No
	A/R & A/P Agings & Deferred Revenue Report	  	Monthly within 30 days	  	Yes  No
	Annual financial projections	  	FYE within 30 days	  	Yes  No
	Field Exam	  	Initial and then Semi-Annually	  	Yes  No

  

											
	 Financial Covenant
	  	Required	 	 	Actual	 	  	Complies
				
	 Maintain on a Monthly Basis:
	  				 				  	
	 Liquidity Ratio of at least
	  	 	1.15 to 1.0	  	 	 	     to 1.0	  	  	Yes  No
	 If Liquidity Ratio is < 1.5 to 1.0, Maintain on a Quarterly Basis:
	  				 				  	Yes  No
	 EBITDA or not less than the following for the quarter ending:
	  				 				  	
	 December 31, 2009
	  	($	1,250,000	) 	 	$	            	  	  	
	 March 31, 2010
	  	($	1,250,000	) 	 	$	            	  	  	
	 June 30, 2010
	  	($	500,000	) 	 	$	            	  	  	
	 September 30, 2010
	  	$	250,000	  	 	$	            	  	  	
	 December 31, 2010, and thereafter
	  	$	500,000	  	 	$	            	  	  	


  
 1 









			
	 Performance Pricing

	 Liquidity Ratio:
	  	Interest Rate on Advances:
	 >/= 1.35 to 1.0
	  	> of (a) Prime Rate + 0.75% or (b) 4.75%
	 < 1.35 to 1.0
	  	> of (a) Prime Rate + 1.25% or (b) 5.25%

  

	
	 The following are the exceptions with respect to the certification above: (If no exceptions exist, state “No exceptions to
note.”)

	  

	  


  

									
	CHANNELADVISOR CORPORATION	  		  	BANK USE ONLY
					
		  		  		  	Received by:	  	  

		  		  		  		  	AUTHORIZED SIGNER
	By:	  	  
	  		  		  	
	Name:	  	  
	  		  	Date:	  	  

	Title:	  	  
	  		  		  	
		  		  		  	Verified:	  	  

		  		  		  		  	AUTHORIZED SIGNER
		  		  		  	Date:	  	  

				
		  		  		  	Compliance
Status:                    Yes    No


  
 2 








 EXHIBIT C 

Transaction Report 







 FIRST AMENDMENT TO 

AND ASSUMPTION 
 OF 
 LOAN AND SECURITY AGREEMENT 

This FIRST AMENDMENT TO AND ASSUMPTION OF Loan and Security Agreement (this “Amendment”) is entered into this 19 day of
April, 2010 by and among SILICON VALLEY BANK, a California corporation (“Bank”) and CHANNELADVISOR CORPORATION, a Delaware corporation (“CAC”), MERCHANDISINGADVISOR CORPORATION, a Delaware corporation
(“MAC”) and CA MARKETPLACES, INC., a Delaware corporation (“CAM”) and CHANNELADVISOR UK LIMITED., a private limited company incorporated and registered in England and Wales (“CA UK” and together with CAC,
MAC and CAM, each a “Borrower” and collectively, the “Borrowers”). 
 RECITALS

 A. Bank, CAC, MAC and CAM (the “Original Borrowers”) have entered into that certain Loan and Security
Agreement dated as of December 23, 2009 (as the same may from time to time be amended, modified, supplemented or restated, the “Loan Agreement”). Bank has extended credit to the Original Borrowers for the purposes permitted in
the Loan Agreement. 
 B. CA UK is a wholly-owned subsidiary of ChannelAdvisor Europe Limited, which, in turn, is a
wholly-owned subsidiary of CAC, and CAC and CA UK have requested that Bank finance certain Accounts of CA UK under the Loan Agreement. 
 C. Bank has agreed to amend certain provisions of the Loan Agreement in order to allow for the financing of such Accounts, provided that CA UK assumes the obligations of the Original Borrowers
under the Loan Documents, jointly and severally with the Original Borrowers and subject to the conditions and in reliance upon the representations and warranties set forth below. 

AGREEMENT 
 NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is
hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows: 
 1. Definitions.
Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement. 
 2.
Assumption. CA UK hereby assumes and agrees to pay and perform when due all present and future Obligations, jointly and severally with the Original Borrowers under, based upon, or arising out of the Loan Documents and instruments and
agreements relating thereto. CA UK agrees to be bound by and to honor, perform and comply with, in all respects, all terms and provisions of all of the Loan Documents, to the 







 
same extent as though CA UK were named therein jointly and severally with the Original Borrowers. All references in the Loan Documents to “Borrower” or “Borrowers” shall be
deemed to refer to CA UK and the Original Borrowers. 
 CA UK acknowledges that the Obligations are due and owing to Bank from
the Original Borrowers, and upon this Amendment becoming effective are due and owing from CA UK and the Original Borrowers jointly and severally, without any defense, offset or counterclaim of any kind or nature whatsoever. 

3. Amendments to Loan Agreement. 
 3.1 Dollar amounts set forth in the Loan Agreement shall be deemed to include, without limitation the Dollar Equivalent of such amounts, where applicable. 

3.2 Sections 4.1, 4.2 and 4.3 of the Loan Agreement are hereby deleted in their entirety and replaced with the following:

 “4.1 Grant of Security Interest. Each Borrower, other than CA UK, hereby grants Bank, to secure
the payment and performance in full of all of the Obligations, a continuing security interest in, and pledges to Bank, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof. The
payment and performance in full of all the Obligations and the performance of CA UK’s duties under the Loan Documents is also secured under the Debenture and any and all other security agreements, mortgages or other collateral granted to Bank
by CA UK as security for the Obligations, now or in the future. 
 4.2 Priority of Security Interest. Each
Borrower, other than CA UK, represents, warrants, and covenants that the security interest granted herein is and shall at all times continue to be a first priority perfected security interest in the Collateral (subject only to Permitted Liens that
may have superior priority to Bank’s Lien under this Agreement). If any Borrower shall acquire a commercial tort claim, such Borrower shall promptly notify Bank in a writing signed by such Borrower of the general details thereof and grant to
Bank in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to Bank. If this Agreement is terminated, Bank’s Lien in
the Collateral shall continue until the Obligations (other than inchoate indemnity obligations) are repaid in full in cash. Upon payment in full in cash of the Obligations and at such time as Bank’s obligation to make Credit Extensions has
terminated, Bank shall, at Borrowers’ sole cost and expense, release its Liens in the Collateral and all rights therein shall revert to Borrowers 
 4.3 Authorization to File Financing Statements. Each Borrower hereby authorizes Bank to file financing statements and to register the security interests created by the Debenture, without notice to
any Borrower, with all appropriate jurisdictions to perfect or protect Bank’s interest or rights hereunder, including a notice that any disposition of the Collateral, by any Borrower or any other Person, shall be deemed to violate the rights of
Bank under the Code. 







 3.3 A new sentence is hereby added to the end of the first paragraph of
Section 5.2, as follows: 
 “CA UK currently has no outstanding overdrafts on its bank accounts with the Royal Bank of
Scotland or otherwise.” 
 3.4 The third sentence of Section 5.7 of the Loan Agreement is hereby deleted in its
entirety and replaced with the following: 
 “Borrower has complied in all material respects with the U.S. Federal Fair
Labor Standards Act, or, in relation to CA UK, all employment legislation in force in England and Wales (including, without limitation the UK 1996 Employment Rights Act).” 

3.5 Section 6.8(a) is hereby deleted in its entirety and replaced with the following: 

“(a) Maintain all of its and all of its U.S. and UK Subsidiaries’ operating and other deposit accounts and
securities accounts with Bank, Bank’s Affiliates, or, in the case of CA UK and any other UK Subsidiary, The Royal Bank of Scotland; provided, however, that Borrowers may maintain no more than $100,000 in PayPal accounts, in the aggregate, at
all times;” 
 3.6 Section 7.10 of the Loan Agreement is hereby amended, in part, to add the words “or UK
1996 Employment Rights Act,”, following the words “Federal Fair Labor Standards Act”, therein. 
 3.7
Section 9.1 of the Loan Agreement is hereby amended, in part, to delete the word “and” at the end of subsection (j) thereof, replace the period at the end of subsection (k) with “; and”, and insert a new subsection
(l), as follows: 
 “(l) enforce the Debenture in accordance with its terms.” 







 3.8 Section 9.3 of the Loan Agreement is hereby amended, in part, to add the
words “and the Debenture” to the end of the first sentence thereof 
 3.9 Section 9.5 of the Loan
Agreement is hereby amended, in part, to add the following sentence to the end of the existing paragraph: 
 “For purposes
of this Section 9.5, the term “Collateral” shall include, in the case of CA UK, the property and assets detailed in clause 2 of the Debenture.” 
 3.10 Section 10 of the Loan Agreement is hereby amended, in part, to add the words “This Section 10 shall not apply to the Debenture” to the end of the first paragraph thereof.

 3.11 The first sentence of Section 11 of the Loan Agreement is hereby amended, in part, to add the terms
“Except as may be otherwise set forth therein,” to the beginning of the first paragraph thereof 
 3.12
Section 12.8 of the Loan Agreement is hereby amended, in part, to correct a scrivener’s error and replace the reference to “Section 12.3” with a correct reference to “Section 12.2”, therein. 

3.13 A new subsection 12.16 is hereby added to the Loan Agreement, as follows: 

“12.16 Co-Borrower Liability. Any Borrower may, acting singly, request Advances hereunder. Each Borrower
hereby appoints the other as agent for the other for all purposes hereunder, including with respect to requesting Advances hereunder. Each Borrower hereunder shall be jointly and severally obligated to repay all Advances made hereunder, regardless
of which Borrower actually receives said Advance, as if each Borrower hereunder directly received all Advances. Notwithstanding any other provision of this Agreement or of any of the other Loan Documents or other related document, each Borrower
irrevocably waives all rights that it may have at law or in equity (including, without limitation, any law subrogating Borrower to the rights of Bank under this Agreement) to seek contribution, indemnification or any other form of reimbursement from
any other Borrower, or any other Person now or hereafter primarily or secondarily liable for any of the Obligations, for any payment made by Borrower 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 Borrower 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 shall be null and void. If any payment is made to a Borrower in contravention of this Section, such Borrower shall hold such payment in trust for Bank
and such payment shall be promptly delivered to Bank for application to the Obligations, whether matured or unmatured. Each Borrower waives any suretyship defenses available to it under the Code or any other applicable law. Each Borrower waives any
right to require Bank to: (a) proceed against any other Borrower; (b) proceed against or exhaust any security; or (c) pursue any other remedy. Bank may exercise or not exercise any right or remedy it has against any Borrower or any
security it holds (including the right to foreclose by judicial or non-judicial sale) without affecting Borrower’s liability.” 
 3.14 Subsection (e) of the definition of “Eligible Accounts” in Section 13.1 of the Loan Agreement is hereby deleted in its entirety and replaced with the following: 

“(e) Other than (i) Accounts that are otherwise Eligible Accounts that are billed by and payable to CA UK or
(ii) as set forth in subsection (d), above, Accounts billed and/or payable outside of the United States;” 

3.15 The following new definitions are hereby added to Section 13.1 of the Loan Agreement, in their proper alphabetical
order, as follows: 
 “CA UK” is ChannelAdvisor UK Limited, a private limited company incorporated and
registered in England and Wales under company number 05296935. 
 “Debenture” means that certain Debenture,
dated April      2010, by and between Bank and CA UK. 
 3.16 A new sentence is hereby added at the
end of the existing definition of “Material Adverse Change” in Section 13.1 of the Loan Agreement, as follows: 

“For purposes of this definition, the term “Collateral” shall include, in addition to the collateral described on Exhibit
A hereto, the property and assets of CA UK as described in clause 2 of the Debenture.” 
 3.17 The definition of
“Loan Documents” in Section 13.1 of the Loan Agreement is hereby deleted in its entirety and replaced with the following: 
 “Loan Documents” are, collectively, this Agreement, the Collateral Assignments, the Securities Pledge Agreement, the Warrant, the Debenture, the Perfection Certificates, any note, or
notes or guaranties executed by Borrower, and any other present or future agreement between Borrower and/or for the benefit of Bank in connection with this Agreement, all as amended, restated, or otherwise modified. 







 4. Limitation of Amendments. 

4.1 The amendments set forth in Section 3, above, are effective for the purposes set forth herein and shall be limited
precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may
have in the future under or in connection with any Loan Document. 
 4.2 This Amendment shall be construed in connection
with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and
effect. 
 5. Representations and Warranties. To induce Bank to enter into this Amendment, each Borrower hereby
represents and warrants, jointly and severally, to Bank as follows: 
 5.1 Immediately after giving effect to this
Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date,
in which case they are true and correct as of such date), and (b) no Event of Default has occurred and is continuing; 

5.2 Each Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan
Agreement, as amended by this Amendment; 
 5.3 The organizational documents of the Original Borrowers delivered to Bank
on the Effective Date and the organizational documents of CA UK delivered to Bank immediately prior to the execution of this Amendment remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be
in full force and effect; 
 5.4 The execution and delivery by Borrowers of this Amendment and the performance by
Borrowers of their obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized by all necessary action on the part of Borrowers; 







 5.5 The execution and delivery by Borrowers of this Amendment and the performance by
Borrowers of their obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrowers, (b) any contractual restriction with a Person binding on
Borrowers, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrowers, or (d) the organizational documents of Borrowers; 

5.6 The execution and delivery by Borrowers of this Amendment and the performance by Borrowers of their obligations under the Loan
Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision
thereof, binding on any Borrower, except as already has been obtained or made; and 
 5.7 This Amendment has been duly
executed and delivered by Borrowers and is the binding obligation of Borrowers, enforceable against Borrowers in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation,
moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights. 
 6. Debenture. CA UK agrees to deliver to the Bank on the date of this Amendment the Debenture duly executed by CA UK. 

7. Integration. This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior
negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Amendment and the Loan Documents merge into this Amendment and the Loan Documents.

 8. Counterparts. This Amendment may be executed in any number of counterparts and all of such counterparts
taken together shall be deemed to constitute one and the same instrument. 
 9. Effectiveness. This Amendment shall be
deemed effective upon (a) the due execution and delivery to Bank of this Amendment by each party hereto, (b) the due execution and/or delivery to Bank of the items listed on the Closing Checklist delivered to Borrowers in connection with
this Amendment, and (c) Borrowers’ payment of all Bank Expenses in connection herewith. 
 10. Governing
Law. This Amendment and the rights and obligations of the parties hereto shall be governed by and construed in accordance with the laws of the State of North Carolina. 

[SIGNATURES ON FOLLOWING PAGE] 







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

 

			
	BORROWERS:
	
	CHANNELADVISOR CORPORATION
		
	By:	 	 





	Name:	 	 M. SCOT WINGO

	Title:	 	 CEO/DIRECTOR

	
	MERCHANDISINGADVISOR CORPORATION
		
	By:	 	 





	Name:	 	 M. SCOT WINGO

	Title:	 	 DIRECTOR

	
	CA MARKETPLACES, INC.
		
	By:	 	 





	Name:	 	 M. SCOT WINGO

	Title:	 	 DIRECTOR

	
	CHANNELADVISOR UK LIMITED
		
	By:	 	 





	Name:	 	 M. SCOT WINGO

	Title:	 	 DIRECTOR

	
	BANK:
	
	SILICON VALLEY BANK
		
	By:	 	 





	Name:	 	 ANTHONY BARKETT

	Title:	 	 VP









 SECOND AMENDMENT TO 

LOAN AND SECURITY AGREEMENT 
 This SECOND AMENDMENT TO Loan and Security Agreement (this “Amendment”) is entered into this 11th day of June, 2010 by and among SILICON VALLEY BANK, a California corporation (“Bank”) and
CHANNELADVISOR CORPORATION, a Delaware corporation (“CAC”), MERCHANDISINGADVISOR CORPORATION, a Delaware corporation (“MAC”) and CA MARKETPLACES, INC., a Delaware corporation (“CAM”) and
CHANNELADVISOR UK LIMITED., a private limited company incorporated and registered in England and Wales (“CA UK” and together with CAC, MAC and CAM, each a “Borrower” and collectively, the “Borrowers”).

 RECITALS 
 A. Bank, CAC, MAC and CAM (the “Original Borrowers”) have entered into that certain Loan and Security Agreement dated as of December 23, 2009, as amended by a First Amendment to and
Assumption of Loan and Security Agreement, dated April 19, 2010 (as the same may from time to time be amended, modified, supplemented or restated, the “Loan Agreement”). Bank has extended credit to the Borrowers for the
purposes permitted in the Loan Agreement. 
 B. Borrower has requested that Bank amend the Loan Agreement to
(i) extend an equipment line of credit to Borrower and (ii) make certain other revisions to the Loan Agreement as more fully set forth herein. 
 C. Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and
warranties set forth below. 
 AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable
consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows: 
 1. Definitions. Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement. 

2. Amendments to Loan Agreement. 
 2.1 A new Section 2.1.6 is hereby added to the Loan Agreement, as follows: 
 “2.1.6 Equipment Advances. 
 (a) Availability.
Subject to the terms and conditions of this Agreement, during the Draw Period, Bank shall make advances (each, an “Equipment Advance” and, collectively, 







 
“Equipment Advances”) not exceeding the Equipment Line. Equipment Advances may only be used to finance Eligible Equipment purchased within ninety (90) days (determined based
upon the applicable invoice date of such Eligible Equipment) before the date of each Equipment Advance; provided, however, that Borrower’s initial Equipment Advance may include Eligible Equipment from or after March 1, 2010. No Equipment
Advance may exceed one hundred percent (100%) of the total invoice for Eligible Equipment (excluding taxes, shipping, warranty charges, freight discounts and installation expenses relating to such Eligible Equipment except to the extent such
are allowed to be financed pursuant hereto as Other Equipment). Unless otherwise agreed to by Bank, not more than fifteen percent (15%) of the proceeds of the Equipment Line shall be used to finance Other Equipment. Each Equipment Advance must
be for at least $100,000 (or the amount that has not yet been drawn under the Equipment Line, if less). Borrower may only request eight (8) Equipment Advances hereunder. After repayment, no Equipment Advance may be reborrowed. 

(b) Repayment. Each Equipment Advance shall immediately amortize and be payable in 36 equal payments of principal
and interest beginning on the first Business Day of the month following such Equipment Advance and continuing on the same day of each month thereafter. Notwithstanding the foregoing, all unpaid principal and interest on each Equipment Advance shall
be due on the applicable Equipment Maturity Date. 
 (c) Prepayment Upon an Event of Loss. Borrower shall
bear the risk of any loss, theft, destruction, or damage of or to the Financed Equipment. If, during the term of this Agreement, any item of Financed Equipment becomes obsolete or is lost, stolen, destroyed, damaged beyond repair, rendered
permanently unfit for use, or seized by a governmental authority for any reason for a period ending beyond the Equipment Maturity Date with respect to such Financed Equipment (an “Event of Loss”), then, within ten (10) days
following such Event of Loss, Borrower shall (i) pay to Bank on account of the Obligations all accrued interest to the date of the prepayment, plus all outstanding principal owing with respect to the Financed Equipment subject to the Event of
Loss; or (ii) if no Event of Default has occurred and is continuing, at Borrower’s option, repair or replace any Financed Equipment subject to an Event of Loss provided the repaired or replaced Financed Equipment is of equal or like value
to the Financed Equipment subject to an Event of Loss and provided further that Bank has a first priority perfected security interest in such repaired or replaced Financed Equipment. Any partial prepayment of an








 
Equipment Advance paid by Borrower on account of an Event of Loss shall be applied to prepay amounts owing for such Equipment Advance in inverse order of maturity. 

(d) Prepayment. Borrower shall have the option to prepay all or a portion, of the Equipment Advances; provided
Borrower (a) provides written notice to Bank of its election to exercise to prepay such Equipment Advances at least five (5) Business Days prior to such prepayment, and (b) pays, on the date of the prepayment (i) all accrued and
unpaid interest with respect to such Equipment Advances through the date the prepayment is made; (ii) all unpaid principal with respect to such Equipment Advances; and (iii) all other sums, if any, that shall have become due and payable
hereunder with respect to such Equipment Advances. 
 (e) Cap on Equipment Advances. In no event shall
the outstanding principal amount of the Equipment Advances, when added to the outstanding principal balance of the Term Loan, exceed $4,300,000 in the aggregate at any time.” 

 
 2.2 Section 2.3(a) of the Loan Agreement is hereby
amended, in part, to add a new subsection (iii), as follows: 
 “(iii) Equipment Advances. Subject to
Section 2.3(b), the principal amount outstanding for each Equipment Advance shall accrue interest at a fixed per annum rate equal to seven and one-quarter percent (7.25%), which interest shall be payable monthly.” 

2.3 Section 7.1(b) of the Loan Agreement is hereby amended, in part, to add the following to the end of the existing
subsection before the existing semi-colon: “that does not constitute Financed Equipment”. 
 2.4 Subsection
(c) of the definition of “Permitted Liens” in Section 13.1 of the Loan Agreement is hereby deleted in its entirety and replaced with the following: 
 “(c) purchase money Liens (including capital leases) (i) on Equipment (other than Financed Equipment) acquired or held by Borrower incurred for financing the acquisition of the Equipment, or
(ii) existing on Equipment (other than Financed Equipment) when acquired, if the Lien is confined to the property and improvements and the proceeds of the Equipment;” 







 2.5 The following new definitions are hereby added to Section 13.1 of the Loan
Agreement, in their proper alphabetical order, as follows: 
 “Draw Period” is the period of time from the
Effective Date through the earlier to occur of (a) May 31, 2011 or (b) an Event of Default that is continuing. 

“Eligible Equipment” is the following to the extent it complies with all of Borrower’s representations and
warranties to Bank, is acceptable to Bank in all respects, is located at the addresses as noted below, or such other location of which Bank has approved, in its reasonable discretion, in writing, and is subject to a first priority Lien in favor of
Bank: (a) new and/or used general purpose equipment computer equipment, office equipment, test and laboratory equipment, furnishings, subject to the limitations set forth herein, and (b) Other Equipment. 

ChannelAdvisor Corporation 
 2701 Aerial Center Parkway 
 Morrisville, NC 27560 

Hosted Solutions 
 5301 Departure Drive 
 Raleigh, NC 27615 

Quality Technology Services 
 300 Satellite Boulevard NW 
 Suwanee, GA 30024 

“Equipment Advance” is defined in Section 2.1.6(a). 

“Equipment Line” is an Equipment Advance or Equipment Advances in an aggregate amount of up to One Million Dollars
($1,000,000). 
 “Equipment Maturity Date” is, for each Equipment Advance, the date which is 36 months
following such Equipment Advance but no later than June 1, 2014. 
 “Event of Loss” is defined in
Section 2.1.6(c). 
 “Financed Equipment” is all present and future Eligible Equipment in which Borrower
has any interest which is financed by an Equipment Advance. 
 “Other Equipment” is leasehold improvements,
intangible property such as computer software and software licenses, equipment specifically designed or manufactured for Borrower, other intangible property, limited use property and other similar property and soft costs approved by Bank, in its
reasonable discretion, including taxes, shipping, warranty charges, freight discounts and installation expenses. 
 3.
Limitation of Amendments. 
 3.1 The amendments set forth in Section 2, above, are effective for the
purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any
right or remedy which Bank may now have or may have in the future under or in connection with any Loan Document. 







 3.2 This Amendment shall be construed in connection with and as part of the Loan
Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect. 

4. Representations and Warranties. To induce Bank to enter into this Amendment, each Borrower hereby represents and warrants,
jointly and severally, to Bank as follows: 
 4.1 Immediately after giving effect to this Amendment (a) the
representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are
true and correct as of such date), and (b) no Event of Default has occurred and is continuing; 
 4.2 Each Borrower
has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment; 
 4.3 The organizational documents of the Borrowers previously delivered to Bank remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in
full force and effect; 
 4.4 The execution and delivery by Borrowers of this Amendment and the performance by Borrowers
of their obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized by all necessary action on the part of Borrowers; 
 4.5 The execution and delivery by Borrowers of this Amendment and the performance by Borrowers of their obligations under the Loan Agreement, as amended by this Amendment, do not and will not
contravene (a) any material law or regulation binding on or affecting Borrowers, (b) any material contractual restriction with a Person binding on Borrowers, (c) any order, judgment or decree of any court or other governmental or
public body or authority, or subdivision thereof, binding on Borrowers, or (d) the organizational documents of Borrowers; 

4.6 The execution and delivery by Borrowers of this Amendment and the performance by Borrowers of their obligations under the Loan
Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision
thereof, binding on any Borrower, except as already has been obtained or made; and 
 4.7 This Amendment has been duly
executed and delivered by Borrowers and is the binding obligation of Borrowers, enforceable against Borrowers in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation,
moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights. 







 5. Integration. This Amendment and the Loan Documents represent the entire agreement
about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Amendment and the Loan Documents merge
into this Amendment and the Loan Documents. 
 6. Counterparts. This Amendment may be executed in any number of
counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument. 
 7.
Effectiveness. This Amendment shall be deemed effective upon (a) the due execution and delivery to Bank of this Amendment by each party hereto and (b) Borrowers’ payment of a $5,000 commitment fee for the Equipment Line and all
Bank Expenses in connection herewith. Borrowers have paid Bank a good faith deposit of $5,000 to initiate Bank’s due diligence in connection with the Equipment Line. Any portion of such good faith deposit not utilized to pay Bank Expenses will
be applied to the commitment fee for the Equipment Line. 
 8. Governing Law. This Amendment and the rights and
obligations of the parties hereto shall be governed by and construed in accordance with the laws of the State of North Carolina. 

[SIGNATURES ON FOLLOWING PAGE] 







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

CHANNELADVISOR CORPORATION 
  

			
	By:	 	 





	Name:	 	 M. Scot Wingo

	Title:	 	 President & CEO

	
	MERCHANDISINGADVISOR CORPORATION
		
	By:	 	 





	Name:	 	 M. Scot Wingo

	Title:	 	 President & CEO

	
	CA MARKETPLACES, INC.
		
	By:	 	 





	Name:	 	 M. Scot Wingo

	Title:	 	 President & CEO

	
	CHANNELADVISOR UK LIMITED
		
	By:	 	 





	Name:	 	 M. Scot Wingo

	Title:	 	 President & CEO

	
	BANK:
	
	SILICON VALLEY BANK
		
	By:	 	 /s/ Anthony Barkett

	Name:	 	 Anthony Barkett

	Title:	 	 VP









 THIRD AMENDMENT TO 

LOAN AND SECURITY AGREEMENT 
 This Third Amendment to Loan and Security Agreement (this “Amendment”) is entered into this 23rd day of December, 2010 by and among (i) SILICON VALLEY BANK, a California corporation (“Bank”)
and (ii) CHANNELADVISOR CORPORATION, a Delaware corporation (“CAC”), MERCHANDISINGADVISOR CORPORATION, a Delaware corporation (“MAC”), CA MARKETPLACES, INC., a Delaware corporation (“CAM”) and
CHANNELADVISOR UK LIMITED., a private limited company incorporated and registered in England and Wales (“CA UK” and together with CAC, MAC and CAM, each a “Borrower” and collectively, the “Borrowers”).

 RECITALS 
 A. Bank, CAC, MAC and CAM (the “Original Borrowers”) have entered into that certain Loan and Security Agreement dated as of December 23, 2009, as amended by a First Amendment to and
Assumption of Loan and Security Agreement dated April 19, 2010 and as further amended by a Second Amendment to Loan and Security Agreement dated June 11, 2010 (as the same may from time to time be further amended, modified, supplemented or
restated, the “Loan Agreement”). Bank has extended credit to the Borrowers for the purposes permitted in the Loan Agreement. 
 B. Borrower has requested that Bank amend the Loan Agreement to (i) extend the maturity date of the revolving line of credit and (ii) make certain other revisions to the Loan Agreement as
more fully set forth herein. 
 C. Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the
extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below. 
 AGREEMENT 
 Now, THEREFORE, in
consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows: 

1. Definitions. Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan
Agreement. 
 2. Amendments to Loan Agreement. 
 2.1 Section 13.1 of the Loan Agreement is hereby amended by deleting the following definition: 
 ““Revolving Line Maturity Date” is the date that is 364 days from the Effective Date.” 
 and inserting in lieu thereof the following: 
 ““Revolving Line
Maturity Date” is March 23, 2011.” 







 3. Limitation of Amendment. 

3.1 The amendment set forth in Section 2, above, is effective for the purposes set forth herein and shall be limited
precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may
have in the future under or in connection with any Loan Document. 
 3.2 This Amendment shall be construed in connection
with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and
effect. 
 4. Representations and Warranties. To induce Bank to enter into this Amendment, each Borrower hereby
represents and warrants, jointly and severally, to Bank as follows: 
 4.1 Immediately after giving effect to this
Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date,
in which case they are true and correct as of such date), and (b) no Event of Default has occurred and is continuing; 

4.2 Each Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan
Agreement, as amended by this Amendment; 
 4.3 The organizational documents of the Borrowers previously delivered to
Bank remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect; 
 4.4 The execution and delivery by Borrowers of this Amendment and the performance by Borrowers of their obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized
by all necessary action on the part of Borrowers; 
 4.5 The execution and delivery by Borrowers of this Amendment and
the performance by Borrowers of their obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any material law or regulation binding on or affecting Borrowers, (b) any material contractual
restriction with a Person binding on Borrowers, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrowers, or (d) the organizational documents of
Borrowers; 
 4.6 The execution and delivery by Borrowers of this Amendment and the performance by Borrowers of their
obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or
authority, or subdivision thereof, binding on any Borrower, except as already has been obtained or made; and 

  
 2 








 4.7 This Amendment has been duly executed and delivered by Borrowers and is the
binding obligation of Borrowers, enforceable against Borrowers in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application
and equitable principles relating to or affecting creditors’ rights. 
 5. No Defenses of Borrower. Borrower hereby
acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims
against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and Borrower hereby RELEASES Bank from any liability thereunder. 
 6. Integration. This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings,
representations, warranties, and negotiations between the parties about the subject matter of this Amendment and the Loan Documents merge into this Amendment and the Loan Documents. 

7. Counterparts. This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be
deemed to constitute one and the same instrument. 
 8. Effectiveness. This Amendment shall be deemed effective upon
(a) the due execution and delivery to Bank of this Amendment by each party hereto and (b) Borrowers’ payment of a $2,656.25 modification fee, which fee shall be deemed fully earned as of the date hereof, and all Bank Expenses in
connection herewith. 
 9. Governing Law. This Amendment and the rights and obligations of the parties hereto shall be
governed by and construed in accordance with the laws of the State of North Carolina. 
 [SIGNATURES
ON FOLLOWING PAGE] 

  
 3 








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

			
	BORROWERS:
	
	CHANNELADVISOR CORPORATION
		
	By:	 	 





	Name:	 	Scott Alridge
	Title:	 	Secretary, VP & General Counsel
	
	MERCHANDISING ADVISOR CORPORATION
		
	By:	 	 





	Name:	 	Scott Alridge
	Title:	 	Secretary
	
	CA MARKETPLACES, INC.
		
	By:	 	 





	Name:	 	Scott Alridge
	Title:	 	Secretary
	
	CHANNELADVISOR UK LIMITED
		
	By:	 	 





	Name:	 	Scott Alridge
	Title:	 	Secretary
	
	BANK:
	
	SILICON VALLEY BANK
		
	By:	 	 





	Name:	 	 ANTHONY BARKETT

	Title:	 	 VP



  
 4 








 FOURTH AMENDMENT TO 

LOAN AND SECURITY AGREEMENT 
 This Fourth Amendment to Loan and Security Agreement (this “Amendment”) is entered into this day 22 of March, 2011 by and among (i) SILICON VALLEY BANK, a California corporation
(“Bank”) and (ii) CHANNELADVISOR CORPORATION, a Delaware corporation (“CAC”), MERCHANDISINGADVISOR CORPORATION, a Delaware corporation (“MAC”), CA MARKETPLACES, INC., a Delaware corporation
(“CAM”) and CHANNELADVISOR UK LIMITED., a private limited company incorporated and registered in England and Wales (“CA UK” and together with CAC, MAC and CAM, each a “Borrower” and collectively, the
“Borrowers”). 
 RECITALS 

A. Bank, CAC, MAC and CAM have entered into that certain Loan and Security Agreement dated as of December 23, 2009, as
amended by a First Amendment to and Assumption of Loan and Security Agreement dated April 19, 2010, as amended by a Second Amendment to Loan and Security Agreement dated June 11, 2010 and as further amended by a Third Amendment to Loan and
Security Agreement dated December 23, 2010 (as the same may from time to time be further amended, modified, supplemented or restated, the “Loan Agreement”). Bank has extended credit to the Borrowers for the purposes permitted in the
Loan Agreement. 
 B. Borrower has requested that Bank amend the Loan Agreement to (i) extend the maturity date of
the revolving line of credit and (ii) make certain other revisions to the Loan Agreement as more fully set forth herein. 

C. Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms,
subject to the conditions and in reliance upon the representations and warranties set forth below. 
 AGREEMENT

 Now, THEREFORE, in consideration of the foregoing recitals and other good and valuable
consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows: 
 1. Definitions. Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement. 

2. Amendments to Loan Agreement. 
 2.1 Section 13.1 of the Loan Agreement is hereby amended by deleting the following definition: 
 ““Revolving Line Maturity Date” is March 23, 2011.” 

and inserting in lieu thereof the following: 
 ““Revolving Line Maturity Date” is April 22, 2011.” 







 3. Limitation of Amendment. 

3.1 The amendment set forth in Section 2, above, is effective for the purposes set forth herein and shall be limited
precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may
have in the future under or in connection wife any Loan Document. 
 3.2 This Amendment shall be construed in connection
with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and
effect. 
 4. Representations and Warranties. To induce Bank to enter into this Amendment, each Borrower hereby
represents and warrants, jointly and severally, to Bank as follows: 
 4.1 Immediately after giving effect to this
Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date,
in which case they are true and correct as of such date), and (b) no Event of Default has occurred and is continuing; 

4.2 Each Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan
Agreement, as amended by this Amendment; 
 4.3 The organizational documents of the Borrowers previously delivered to
Bank remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect; 
 4.4 The execution and delivery by Borrowers of this Amendment and the performance by Borrowers of their obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized
by all necessary action on the part of Borrowers; 
 4.5 The execution and delivery by Borrowers of this Amendment and
the performance by Borrowers of their obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any material law or regulation binding on or affecting Borrowers, (b) any material contractual
restriction with a Person binding on Borrowers, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrowers, or (d) the organizational documents of
Borrowers; 
 4.6 The execution and delivery by Borrowers of this Amendment and the performance by Borrowers of their
obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or
authority, or subdivision thereof, binding on any Borrower, except as already has been obtained or made; and 
 4.7 This
Amendment has been duly executed and delivered by Borrowers and is the binding obligation of Borrowers, enforceable against Borrowers in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency,
reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights. 

  
 2 








 5. No Defenses of Borrower. Borrower hereby acknowledges and agrees that Borrower has
no offsets, defenses, claims, or counterclaims against Bank with respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law
or in equity, all of them are hereby expressly WAIVED and Borrower hereby RELEASES Bank from any liability thereunder. 
 6.
Integration. This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations
between the parties about the subject matter of this Amendment and the Loan Documents merge into this Amendment and the Loan Documents. 
 7. Counterparts. This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument. 

8. Effectiveness. This Amendment shall be deemed effective upon (a) the due execution and delivery to
Bank of this Amendment by each party hereto and (b) Borrowers’ payment of a $885.42 modification fee, which fee shall be deemed fully earned as of the date hereof, and all Bank Expenses in connection herewith. 

9. Governing Law. This Amendment and the rights and obligations of the parties hereto shall be governed by and construed in
accordance with the laws of the State of North Carolina. 
 [SIGNATURES ON FOLLOWING
PAGE] 

  
 3 








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

			
	BORROWERS:
	
	CHANNELADVISOR CORPORATION
		
	By:	 	 





	Name:	 	M. SCOT WINGO
	Title:	 	CEO
	
	MERCHANDISING ADVISOR CORPORATION
		
	By:	 	 





	Name:	 	M. SCOT WINGO
	Title:	 	CEO
	
	CA MARKETPLACES, INC.
		
	By:	 	 





	Name:	 	M. SCOT WINGO
	Title:	 	CEO
	
	CHANNELADVISOR UK LIMITED
		
	By:	 	 





	Name:	 	M. SCOT WINGO
	Title:	 	CEO
	
	BANK:
	
	SILICON VALLEY BANK
		
	By:	 	 





	Name:	 	 ANTHONY BARKETT

	Title:	 	 DTL



  
 4 








 FIFTH AMENDMENT TO 

LOAN AND SECURITY AGREEMENT 
 This Fifth Amendment to Loan and Security Agreement (this “Amendment”) is entered into this day 26 of May, 2011 by and among (i) SILICON VALLEY BANK, a California corporation
(“Bank”) and (ii) CHANNELADVISOR CORPORATION, a Delaware corporation (“CAC”), MERCHANDISINGADVISOR CORPORATION, a Delaware corporation (“MAC”), CA MARKETPLACES, INC., a Delaware corporation
(“CAM”) and CHANNELADVISOR UK LIMITED., a private limited company incorporated and registered in England and Wales (“CA UK” and together with CAC, MAC and CAM, each a “Borrower” and collectively, the
“Borrowers”). 
 RECITALS 

A. Bank, CAC, MAC and CAM have entered into that certain Loan and Security Agreement dated as of December 23, 2009, as
amended by a First Amendment to and Assumption of Loan and Security Agreement dated April 19, 2010, as amended by a Second Amendment to Loan and Security Agreement dated June 11, 2010, as further amended by a Third Amendment to Loan and
Security Agreement dated December 23, 2010 and as further amended by a Fourth Amendment to Loan and Security Agreement dated March 22, 2011 (as the same may from time to time be further amended, modified, supplemented or restated, the
“Loan Agreement”). Bank has extended credit to the Borrowers for the purposes permitted in the Loan Agreement. 

B. Borrower has requested that Bank amend the Loan Agreement to (i) extend the maturity date of the revolving line of credit
and (ii) make certain other revisions to the Loan Agreement as more fully set forth herein. 
 C. Bank has agreed to
so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below. 

AGREEMENT 
 NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby
acknowledged, and intending to be legally bound, the parties hereto agree as follows: 
 1. Definitions. Capitalized
terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement. 
 2. Amendments to
Loan Agreement. 
 2.1 Section 13.1 of the Loan Agreement is hereby amended by deleting the following
definition: 
 ““Revolving Line Maturity Date” is April 22, 2011.” 







 and inserting in lieu thereof the following: 

““Revolving Line Maturity Date” is June 21, 2011.” 

3. Limitation of Amendment. 
 3.1 The amendment set forth in Section 2, above, is effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a
consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the future under or in connection with any Loan
Document. 
 3.2 This Amendment shall be construed in connection with and as part of the Loan Documents and all terms,
conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect. 

4. Representations and Warranties. To induce Bank to enter into this Amendment, each Borrower hereby represents and warrants,
jointly and severally, to Bank as follows: 
 4.1 Immediately after giving effect to this Amendment (a) the
representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are
true and correct as of such date), and (b) no Event of Default has occurred and is continuing; 
 4.2 Each Borrower
has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment; 
 4.3 The organizational documents of the Borrowers previously delivered to Bank remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in
full force and effect; 
 4.4 The execution and delivery by Borrowers of this Amendment and the performance by Borrowers
of their obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized by all necessary action on the part of Borrowers; 
 4.5 The execution and delivery by Borrowers of this Amendment and the performance by Borrowers of their obligations under the Loan Agreement, as amended by this Amendment, do not and will not
contravene (a) any material law or regulation binding on or affecting Borrowers, (b) any material contractual restriction with a Person binding on Borrowers, (c) any order, judgment or decree of any court or other governmental or
public body or authority, or subdivision thereof, binding on Borrowers, or (d) the organizational documents of Borrowers; 

4.6 The execution and delivery by Borrowers of this Amendment and the performance by Borrowers of their obligations under the Loan
Agreement, as amended by this 

  
 2 








 
Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or
authority, or subdivision thereof binding on any Borrower, except as already has been obtained or made; and 
 4.7 This
Amendment has been duly executed and delivered by Borrowers and is the binding obligation of Borrowers, enforceable against Borrowers in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency,
reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights. 
 5. No Defenses of Borrower. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with respect to the Obligations, or
otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and Borrower hereby RELEASES Bank from
any liability thereunder. 
 6. Integration. This Amendment and the Loan Documents represent the entire agreement
about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Amendment and the Loan Documents merge
into this Amendment and the Loan Documents. 
 7. Counterparts. This Amendment may be executed in any number of
counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument. 
 8.
Effectiveness. This Amendment shall be deemed effective upon (a) the due execution and delivery to Bank of this Amendment by each party hereto and (b) Borrowers’ payment of a $1,770.84 modification fee, which fee shall be
deemed fully earned as of the date hereof; and all Bank Expenses in connection herewith. 
 9. Governing Law. This
Amendment and the rights and obligations of the parties hereto shall be governed by and construed in accordance with the laws of the State of North Carolina. 
 [SIGNATURES ON FOLLOWING PAGE] 

  
 3 








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

			
	BORROWERS:
	
	CHANNELADVISOR CORPORATION
		
	By:	 	 





	Name:	 	M. Scot Wingo
	Title:	 	CEO
	
	MERCHANDISING ADVISOR CORPORATION
		
	By:	 	 





	Name:	 	M. Scot Wingo
	Title:	 	CEO
	
	CA MARKETPLACES, INC.
		
	By:	 	 





	Name:	 	M. Scot Wingo
	Title:	 	CEO
	
	CHANNELADVISOR UK LIMITED
		
	By:	 	 





	Name:	 	M. Scot Wingo
	Title:	 	CEO

 

 

			
	BANK:
	
	SILICON VALLEY BANK
		
	By:	 	 





	Name:	 	 ANTHONY BARKETT

	Title:	 	 DTL



  
 4 








 JOINDER AND SIXTH AMENDMENT TO 

LOAN AND SECURITY AGREEMENT 
 This Joinder and Sixth Amendment to Loan and Security Agreement (this “Amendment”) is entered into this day 15th of June, 2011 by and among (i) SILICON VALLEY BANK, a California corporation (“Bank”) and
(ii) CHANNELADVISOR CORPORATION, a Delaware corporation (“CAC”), MERCHANDISINGADVISOR CORPORATION, a Delaware corporation (“MAC”), CA MARKETPLACES, INC., a Delaware corporation
(“CAM”) and CHANNELADVISOR UK LIMITED., a private limited company incorporated and registered in England and Wales (“CA UK” and together with CAC, MAC and CAM, each an “Existing Borrower” and
collectively, the “Existing Borrowers”); and (iii) CA WASHINGTON, LLC, a Delaware limited liability company (the “New Borrower” and together with the Existing Borrowers, each a “Borrower” and
collectively, the “Borrowers”). 
 RECITALS 

A. Bank and Existing Borrowers have entered into that certain Loan and Security Agreement dated as of December 23, 2009, as
amended by a First Amendment to and Assumption of Loan and Security Agreement dated April 19, 2010, as amended by a Second Amendment to Loan and Security Agreement dated June 11, 2010, as further amended by a Third Amendment to Loan and
Security Agreement dated December 23, 2010, as further amended by a Fourth Amendment to Loan and Security Agreement, dated as of March 22, 2011 and as further amended by a Fifth Amendment to Loan and Security Agreement, dated as of
May 26, 2011 (as the same may from time to time be further amended, modified, supplemented or restated, the “Loan Agreement”). Bank has extended credit to the Borrowers for the purposes permitted in the Loan Agreement.

 B. New Borrower is a wholly owned Subsidiary of CAC. Existing Borrowers have requested that Bank finance certain
Accounts of New Borrower under the Loan Agreement. 
 C. Bank has agreed to amend certain provisions of the Loan
Agreement in order to permit the financing of such Accounts provided that New Borrower assumes all of the Obligations of the Existing Borrowers under the Loan Documents, jointly and severally with the Existing Borrowers and subject to the terms and
conditions and in reliance upon the representations and warranties set forth below, 
 D. Borrower has also requested
that Bank amend the Loan Agreement to (i) extend the maturity date of the revolving line of credit and (ii) make certain other revisions to the Loan Agreement as more fully set forth herein. 

E. Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms,
subject to the conditions and in reliance upon the representations and warranties set forth below. 







 AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing recitals and other good and
valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows: 
 1. Definitions. Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement. 

2. Joinder and Assumption. New Borrower hereby joins the Loan Agreement and each of the other appropriate Loan Documents, and
agrees to comply with and be bound by all of the terms, conditions and covenants of the Loan Agreement and each of the other appropriate Loan Documents, as if New Borrower were originally named a “Borrower” and/or a “Debtor”
therein. Without limiting the generality of the preceding sentence, New Borrower hereby assumes and agrees to pay and perform when due all present and future indebtedness, liabilities and obligations of the Existing borrowers under the Loan
Agreement, including, without limitation, the Obligations. From and after the date hereof, all references in the Loan Documents to “Borrower” and/or “Debtor” shall be deemed to refer to and include New Borrower. Further, all
present and future Obligations of the Existing Borrowers shall be deemed to refer to all present and future Obligations of New Borrower. New Borrower acknowledges that the Obligations are due and owing to Bank from the Existing Borrowers including,
without limitation, New Borrower, without any defense, offset or counterclaim of any kind or nature whatsoever as of the date hereof. 
 3. Grant of Security Interest. To secure the payment and performance of all of the Obligations, New Borrower hereby grants to Bank a continuing lien upon and security interest in all of New
Borrower’s now existing or hereafter arising rights and interest in the Collateral, whether now owned or existing or hereafter created, acquired, or arising, and wherever located, including, without limitation, all of New Borrower’s assets
listed on Exhibit A attached to the Loan Agreement and all of New Borrower’s books relating to the foregoing and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories,
accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing. New Borrower represents, warrants, and covenants that the security interest granted herein is and shall at all times continue
to be a first priority perfected security interest in the Collateral (subject only to Permitted Liens that may have superior priority to Bank’s Lien under the Loan Agreement). If New Borrower shall acquire a commercial tort claim, New Borrower
shall promptly notify Bank in a writing signed by New Borrower of the general details thereof and grant to Bank in such writing a security interest therein and in the proceeds thereof, all upon the terms of the Loan Agreement, with such writing to
be in form and substance reasonably satisfactory to Bank. New Borrower further covenants and agrees that by its execution hereof it shall provide all such information, complete all such forms, and take all such actions, and enter into all such
agreements, in form and substance reasonably satisfactory to Bank that are reasonably deemed necessary by Bank in order to grant and continue a valid, first perfected security interest to Bank in the Collateral. New Borrower hereby authorizes Bank
to file financing statements, without notice to any Borrower, with all appropriate jurisdictions in order to perfect or protect Bank’s interest or rights hereunder, including a notice that any disposition of the Collateral, by either any
Borrower or any other Person, may be deemed to 

  
 2 








 
violate the rights of Bank under the Code. Such financing statements may indicate the Collateral as “all assets of the Debtor” or words of similar effect, or as being of an equal or
lesser scope, or with greater detail, all in Bank’s discretion. 
 4. Subrogation and Similar Rights. Borrower (in
each case including, without limitation, New Borrower) waives any suretyship defenses available to it under the Code or any other applicable law. Borrower waives any right to require Bank to: (i) proceed against any other Borrower or any other
Person; (ii) proceed against or exhaust any security; or (iii) pursue any other remedy. Bank may exercise or not exercise any right or remedy it has against any Borrower or any security it holds (including the right to foreclose by
judicial or non-judicial sale) without affecting any Borrower’s liability. Notwithstanding any other provision of this Amendment, the Loan Agreement, or other Loan Documents, Borrower irrevocably waives all rights that it may have at law or in
equity (including, without limitation, any law subrogating such Borrower to the rights of Bank under the Loan Agreement) to seek contribution, indemnification or any other form of reimbursement from any other Borrower or any other Person now or
hereafter primarily or secondarily liable for any of the Obligations, for any payment made by a Borrower with respect to the Obligations in connection with the Loan 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 any Borrower with respect to the Obligations in connection with the Loan Agreement or otherwise. Any agreement providing for indemnification, reimbursement or any
other arrangement prohibited under this section shall be null and void. If any payment is made to any Borrower in contravention of this section, such Borrower shall hold such payment in trust for Bank and such payment shall be promptly delivered to
Bank for application to the Obligations, whether matured or unmatured. 
 5. Representations and Warranties. Except as
described in the revised Perfection Certificate delivered in connection herewith, each Borrower hereby represents and warrants to Bank that all representations and warranties in the Loan Documents made on the part of any Borrower are true and
correct on the date hereof with respect to New Borrower, with the same force and effect as if New Borrower were originally named as “Borrower” in the Loan Documents. In addition, each Borrower represents and warrants to Bank that this
Amendment has been duly executed and delivered by each such Borrower, and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms. 

6. Amendments to Loan Agreement. 
 6.1 Section 6.2(a) of the Loan Agreement is hereby amended by deleting the following text therefrom: 
 “(a) within thirty (30) days after the end of each month, (i) a Transaction Report, (ii) monthly accounts receivable agings, aged by invoice date, (iii) an accounts payable check
payment list for the last week of the applicable month, (iv) monthly reconciliations of accounts receivable agings (aged by invoice date), transaction reports and general ledger and (v) a schedule of Deferred Revenue.” 

  
 3 








 and inserting in lieu thereof the following: 

“(a) within thirty (30) days after the end of each month, and with each request for a Credit extension (i) a Transaction
Report, (ii) monthly accounts receivable agings, aged by invoice date, (iii) an accounts payable check payment list for the last week of the applicable month, (iv) monthly reconciliations of accounts receivable agings (aged by invoice
date), transaction reports and general ledger and (v) a schedule of Deferred Revenue.” 
 6.2
Section 6.8(a) of the Loan Agreement is hereby amended by deleting the following text therefrom: 
 “(a) Maintain all
of its and all of its U.S. and UK Subsidiaries’ operating and other deposit accounts and securities accounts with Bank, Bank’s Affiliates, or, in the case of CA UK and any other UK Subsidiary, The Royal Bank of Scotland; provided, however,
that Borrowers may maintain no more than $100,000 in PayPal accounts, in the aggregate, at all times;” 
 and inserting in
lieu thereof the following: 
 “(a) Maintain (i) all of its and all of its U.S. and UK Subsidiaries’ operating and
other deposit accounts and securities accounts with Bank, Bank’s Affiliates, or, in the case of CA UK and any other UK Subsidiary, The Royal Bank of Scotland, and (ii) not later than June 30, 2011, all excess funds at or invested
through Bank or an affiliate of Bank; provided, however, that Borrowers may maintain PayPal accounts and /or accounts at financial institutions other than Bank or affiliates of Bank, in a maximum aggregate amount not to exceed
$1,000,000 at any time;” 
 6.3 Section 6.9(b) of the Loan Agreement is hereby amended by deleting the
following text therefrom: 
 “(b) EBITDA. If, for any Testing Month, Parent’s Liquidity Ratio is less that 1.5
to 1.0, also maintain, on a consolidated basis with respect to Parent and its Subsidiaries, as of the last day of each fiscal quarter during the following periods, EBITDA of at least the following: 

 

					
	For the Quarter(s) Ending:	  	Minimum EBITDA	 
		
	 December 31, 2009 and March 31, 2010
	  	($	1,250,000	) 
		
	 June 30, 2010
	  	($	500,000	) 
		
	 September 30, 2010
	  	$	250,000	  
		
	 December 31, 2010 and thereafter
	  	$	500,000”	  


  
 4 








 and inserting in lieu thereof the following: 

“(b) EBITDA. If, for any Testing Month, Parent’s Liquidity Ratio is less that 1.5 to 1.0, also maintain, on a
consolidated basis with respect to Parent and its Subsidiaries, as of the last day of each fiscal quarter during the following periods, EBITDA of at least the following: 

 

					
	For the Quarter(s) Ending:	  	 Minimum EBITDA

(Maximum EBITDA Loss)
	 
		
	 June 30, 2011
	  	($	2,750,000	) 
		
	 September 30, 2011
	  	($	2,100,000	) 
		
	 December 31, 2011
	  	$	500,000	  
		
	 March 31, 2012 and thereafter
	  	($	500,000	) 

 6.4 Section 13.1 of the Loan Agreement is hereby amended by deleting the following
definitions: 
 ““Availability Amount” is (a) the lesser of (i) the Revolving Line or
(ii) the amount available under the Borrowing Base minus (b) the FX Reduction Amount, minus (c) any amounts used for Cash Management Services and minus (d) the outstanding principal amount of any Advances. 

“Credit Extension” is and Advance, Term Loan, FX Forward Contract, amount utilized for Cash Management Services, or any
other extension of credit by Bank for a Borrower’s benefit. 
 “Revolving Line Maturity Date” is
June 21, 2011.” 
 and inserting in lieu thereof the following: 

““Availability Amount” is (a) the lesser of (i) the Revolving Line or (ii) the amount available under
the Borrowing Base minus (b) the Dollar Equivalent amount of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit plus an amount equal to the Letter of Credit Reserve), minus (c) the FX
Reduction Amount, minus (d) any amounts used for Cash Management Services, and minus (e) the outstanding principal balance of any Advances. 
 “Credit Extension” is any Advance, Equipment Advance, Letter of Credit, Term Loan, FX Forward Contract, amount utilized for Cash Management Services, or any other extension of credit by
Bank for Borrower’s benefit. 
 “Revolving Line Maturity Date” is June 19, 2012.” 

  
 5 








 7. Limitation of Amendment. 

7.1 The amendments set forth above, are effective for the purposes set forth herein and shall be limited precisely as written and
shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the future under or
in connection with any Loan Document. 
 7.2 This Amendment shall be construed in connection with and as part of the Loan
Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect. 

8. Representations and Warranties. To induce Bank to enter into this Amendment, each Borrower hereby represents and warrants,
jointly and severally, to Bank as follows: 
 8.1 Immediately after giving effect to this Amendment (a) the
representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are
true and correct as of such date), and (b) no Event of Default has occurred and is continuing; 
 8.2 Each Borrower
has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment; 
 8.3 The organizational documents of the Existing Borrowers previously delivered to Bank and the organizational documents of New Borrower delivered to Bank immediately prior to the execution of this
Amendment remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect; 
 8.4 The execution and delivery by Borrowers of this Amendment and the performance by Borrowers of their obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized
by all necessary action on the part of Borrowers; 
 8.5 The execution and delivery by Borrowers of this Amendment and
the performance by Borrowers of their obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any material law or regulation binding on or affecting Borrowers, (b) any material contractual
restriction with a Person binding on Borrowers, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrowers, or (d) the organizational documents of
Borrowers; 
 8.6 The execution and delivery by Borrowers of this Amendment and the performance by Borrowers of their
obligations under the Loan Agreement, as amended by this 

  
 6 








 
Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or
authority, or subdivision thereof, binding on any Borrower, except as already has been obtained or made; and 
 8.7 This
Amendment has been duly executed and delivered by Borrowers and is the binding obligation of Borrowers, enforceable against Borrowers in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency,
reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights. 
 9. No Defenses of Borrower. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with respect to the Obligations, or otherwise, and
that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and Borrower hereby RELEASES Bank from any liability
thereunder. 
 10. Integration. This Amendment and the Loan Documents represent the entire agreement about this subject
matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Amendment and the Loan Documents merge into this
Amendment and the Loan Documents. 
 11. Counterparts. This Amendment may be executed in any number of counterparts and
all of such counterparts taken together shall be deemed to constitute one and the same instrument. 
 12. Effectiveness.
This Amendment shall be deemed effective upon (a) the due execution and delivery to Bank of this Amendment by each party hereto and (b) Borrowers’ payment of a Ten Thousand Six Hundred Twenty Five Dollar ($10,625.00) modification fee,
which fee shall be deemed fully earned as of the date hereof, and all Bank Expenses in connection herewith. 
 13. Governing
Law. This Amendment and the rights and obligations of the parties hereto shall be governed by and construed in accordance with the laws of the State of North Carolina. 
 [SIGNATURES ON FOLLOWING PAGE] 

  
 7 








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

			
	BORROWERS:
	
	CHANNELADVISOR CORPORATION
		
	By:	 	 





	Name:	 	 M. SCOT WINGO

	Title:	 	 DIRECTOR

	
	MERCHANDISING ADVISOR CORPORATION
		
	By:	 	 





	Name:	 	 M. SCOT WINGO

	Title:	 	 DIRECTOR

	
	CA MARKETPLACES, INC.
		
	By:	 	 





	Name:	 	 M. SCOT WINGO

	Title:	 	 DIRECTOR

	
	CHANNELADVISOR UK LIMITED
		
	By:	 	 





	Name:	 	 M. SCOT WINGO

	Title:	 	 DIRECTOR

	
	CA WASHINGTON, LLC
		
	By:	 	 





	Name:	 	 M. SCOT WINGO

	Title:	 	 DIRECTOR

	
	BANK:
	
	SILICON VALLEY BANK
		
	By:	 	 





	Name:	 	 ANTHONY BARKETT

	Title:	 	 DTL



  
 8 








 EXHIBIT B 

COMPLIANCE CERTIFICATE 
  

					
	TO:	 	SILICON VALLEY BANK	  	Date:                     
	FROM:	 	CHANNELADVISOR CORPORATION	  	

 The undersigned authorized officer of ChannelAdvisor Corporation (“Parent”) certifies
that under the terms and conditions of the Loan and Security Agreement between Borrowers and Bank (the “Agreement”), (1) each Borrower is in complete compliance for the period ending
                     with all required covenants except as noted below, (2) there are no Events of Default, (3) all representations and
warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already
are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of
such date, (4) each Borrower, and each of its respective Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed
by Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement, and (5) no Liens have been levied or claims made against any Borrower or any of its Subsidiaries, if any, relating to unpaid employee payroll
or benefits of which any Borrower has not previously provided written notification to Bank. Attached are the required documents supporting the certification. The undersigned certifies that these are prepared in accordance with GAAP consistently
applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings may be requested at any time or date of determination that any Borrower is not in compliance with any of
the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement. 

Please indicate compliance status by circling Yes/No under “Complies” column. 

 

					
	 Reporting Covenant
	  	 Required
	  	 Complies

			
	Monthly financial statements with Compliance Certificate	  	Monthly within 30 days	  	Yes    No
	Annual financial statement (CPA Audited) + CC	  	FYE within 180 days	  	Yes    No
	A/R & A/P Agings, Deferred Revenue Reports	  	Monthly within 30 days and with each request for a Credit Extension	  	Yes    No
	Transaction Reports	  	Monthly within 30 days and with each request for a Credit Extension	  	Yes    No
	Projections	  	FYE within 30 days	  	Yes    No
	Field Exam	  	Semi-annually	  	Yes    No


  
 1 









													
	 Financial Covenant
	  	Required	 	 	Actual	 	  	Complies	 
				
	 Maintain as indicated:
	  				 				  			
	 Liquidity Ratio of at least (monthly)
	  	 	1.15 to 1.00	  	 	 	    :1.0	  	  	 	Yes     No	  
	 If Liquidity Ratio is <1.5 to 1.0, maintain on Quarterly Basis:
	  				 				  	 	Yes     No	  
				
	 EBITDA of not less than the following for the quarter ending:
	  				 				  			
		  				 				  			
	 June 30, 2011
	  	($	2,750,000	) 	 	$	            	  	  			
	 September 30, 2011
	  	($	2,100,000	) 	 	$	            	  	  			
	 December 31, 2011
	  	$	500,000	  	 	$	            	  	  			
	 March 31, 2012 and thereafter
	  	($	500,000	) 	 	$	            	  	  			

 The following are the exceptions with respect to the certification above: (If no exceptions exist, state
“No exceptions to note.”) 
  
  

 
  
  

 

			
	  
	 	


 



			
	ChannelAdvisors Corporation
		
	By:	 	  

	Name:	 	  

	Title:	 	  






			
	BANK USE ONLY
		
	Received by:	  	  

		  	AUTHORIZED SIGNER
	Date:	  	  

		  	
	Verified:	  	  

		  	AUTHORIZED SIGNER
	Date:	  	  



Compliance Status:  Yes    No


 


  
 2 








 SEVENTH AMENDMENT TO 

LOAN AND SECURITY AGREEMENT 
 This Seventh Amendment to Loan and Security Agreement (this “Amendment”) is entered into this day 26 of July, 2012 by and among (i) SILICON VALLEY BANK, a California
corporation (“Bank”) and (ii) CHANNELADVISOR CORPORATION, a Delaware corporation (“CAC”), MERCHANDISINGADVISOR CORPORATION, a Delaware corporation (“MAC”), CA MARKETPLACES,
INC., a Delaware corporation (“CAM”), CHANNELADVISOR UK LIMITED., a private limited company incorporated and registered in England and Wales (“CA UK”) and CA WASHINGTON, LLC, a Delaware limited
liability company (“CAW”, and together with CAC, MAC, CAM and CA UK, each a “Borrower” and collectively, the “Borrowers”). 
 RECITALS 
 A. Bank and Borrowers have entered into
that certain Loan and Security Agreement dated as of December 23, 2009, as amended by a First Amendment to and Assumption of Loan and Security Agreement dated April 19, 2010, as amended by a Second Amendment to Loan and Security Agreement
dated June 11, 2010, as further amended by a Third Amendment to Loan and Security Agreement dated December 23, 2010, as further amended by a Fourth Amendment to Loan and Security Agreement dated March 22, 2011, as further amended by a
Fifth Amendment to Loan and Security Agreement, dated as of May 26, 2011 and as further amended by a Joinder and Sixth Amendment to Loan and Security Agreement, dated as of June 15, 2011 (as the same may from time to time be further
amended, modified, supplemented or restated, the “Loan Agreement”). Bank has extended credit to the Borrowers for the purposes permitted in the Loan Agreement. 

B. Borrower has requested that Bank amend the Loan Agreement to (i) extend the maturity date of the revolving line of credit
and (ii) make certain other revisions to the Loan Agreement as more fully set forth herein. 
 C. Bank has agreed to
so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below. 

AGREEMENT 
 Now, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and
intending to be legally bound, the parties hereto agree as follows: 
 1. Definitions. Capitalized terms used but not
defined in this Amendment shall have the meanings given to them in the Loan Agreement. 
 2. Amendments to Loan
Agreement. 
 2.1 Section 2.1.1(c) is amended in its entirety and is replaced with the following: 

“(c) Termination Prior to Revolving Line Maturity Date. The Revolving Line may be terminated prior to the Revolving Line
Maturity by Borrower, effective three (3) Business Days after written notice of termination is given to Bank. If such termination is at Borrowers’ election or at Bank’s election due to the occurrence and continuance of an Event of
Default, in each case at any time prior to the date that is six months after the Seventh Amendment Effective Date, Borrowers shall pay to Bank, in addition to the payment of any other expenses or fees then-owing, a termination fee equal to $30,000
(i.e. 0.50% of $6,000,000) (the “Early Termination Fee”); provided that no Early Termination Fee shall be charged if the credit facility hereunder is replaced with a new facility from another division of Bank.”








 2.2 Sections 2.1.2, 2.1.3 and 2.1.4 is each amended in its entirety and replaced with
the following: 
 “2.1.2 [Reserved]. 
 2.1.3 [Reserved]. 
 2.1.4 [Reserved].” 

2.3 Section 2.2 of the Loan Agreement is amended in its entirety and is replaced with the following: 

“2.2 Overadvances. If at any time the outstanding principal amount of any Advances exceeds the lesser of either the Revolving
Line or the Borrowing Base (such sum being an “Overadvance”), Borrowers shall immediately pay to Bank such Overadvance. Without limiting Borrowers’ obligation to repay Bank any amount of the Overadvance, Borrowers agree to pay
Bank interest on the outstanding amount of any Overadvance, on demand, at the Default Rate.” 
 2.4
Section 2.3(a)(i) of the Loan Agreement is amended in its entirety and is replaced with the following: 
 “(i)
Advances. Subject to Section 2.3(b), the principal amount outstanding under the Revolving Line shall accrue interest at a floating per annum rate equal to the Prime Rate plus one percent (1.00%), which interest shall be payable monthly,
in arrears, in accordance with Section 2.3(f) below.” 
 2.5 Section 2.3(f) of the Loan Agreement is
amended in its entirety and is replaced with the following: 
 “(f) Payment; Interest Computation. Interest is
payable monthly on the last calendar day of each month. In computing interest on the Obligations, all Payments received after 12:00 noon Pacific time on any day shall be deemed received on the next Business Day. Bank shall not, however, be required
to credit Borrower’s account for the amount of any item of payment which is unsatisfactory to Bank in its good faith business judgment, and Bank may charge Borrower’s Designated Deposit Account for the amount of any item of payment which
is returned to Bank unpaid.” 

  
 2 








 2.6 Section 2.3(g) of the Loan Agreement is amended in its entirety and is
replaced with the following: 
 “(g) [Reserved].” 

2.7 Section 3.5 of the Loan Agreement is amended in its entirety and is replaced with the following: 

“3.5 Procedures for Borrowing. Subject to the prior satisfaction of all other applicable conditions to the making of an
Advance set forth in this Agreement, to obtain an Advance, Borrower shall notify Bank (which notice shall be irrevocable) by electronic mail, facsimile, or telephone by 12:00 noon Pacific time on the Funding Date of the Advance. Together with any
such electronic or facsimile notification, Borrower shall deliver to Bank by electronic mail or facsimile a completed Transaction Report executed by a Responsible Officer or his or her designee. Bank may rely on any telephone notice given by a
person whom Bank believes is a Responsible Officer or designee. Bank shall credit Advances to the Designated Deposit Account. Bank may make Advances under this Agreement based on instructions from a Responsible Officer or his or her designee or
without instructions if the Advances are necessary to meet Obligations which have become due.” 
 2.8
Section 4.1 of the Loan Agreement is amended by inserting the following at the end thereof: 
 “Borrower
acknowledges that it previously has entered, and/or may in the future enter, into Bank Services Agreements with Bank. Regardless of the terms of any Bank Services Agreement, Borrower agrees that any amounts Borrower owes Bank thereunder shall be
deemed to be Obligations hereunder and that it is the intent of Borrower and Bank to have all such Obligations secured by the first priority perfected security interest in the Collateral granted herein (subject only to Permitted Liens that expressly
have superior priority to Bank’s Lien in this Agreement). 
 If this Agreement is terminated, Bank’s Lien in the
Collateral shall continue until the Obligations (other than inchoate indemnity obligations) are satisfied in full, and at such time, Bank shall, at Borrower’s sole cost and expense, terminate its security interest in the Collateral and all
rights therein shall revert to Borrower. In the event (a) all Obligations (other than inchoate indemnity obligations), except for Bank Services, are satisfied in full, and (b) this Agreement is terminated, Bank shall terminate the security
interest granted herein upon Borrower providing cash collateral acceptable to Bank in its good faith business judgment for Bank Services, if any. In the event such Bank Services consist of outstanding Letters of Credit, Borrower shall provide to
Bank cash collateral in an amount equal to 

  
 3 








 
105% (110% for letters of credit denominated in a currency other than Dollars), of the Dollar Equivalent of the face amount of all such letters of credit plus all interest, fees, and costs due or
to become due in connection therewith (as estimated by Bank in its good faith business judgment), to secure all of the Obligations relating to such letters of credit.” 
 2.9 Section 6.9 of the Loan Agreement is amended in its entirety and is replaced with the following: 
 “6.9 Financial Covenants. 
 (a) Adjusted Quick Ratio. Maintain,
as of the last day of each month, on a consolidated basis with respect to Parent and its Subsidiaries, an Adjusted Quick Ratio of at least 1.10 to 1.00.” 
 2.10 Section 6.3(c) is amended in its entirety and is replaced by the following: 
 “(c) Collection of Accounts. Borrower shall have the right to collect all Accounts, unless and until a Default or an Event of Default has occurred and is continuing. All payments on, and
proceeds of, Accounts shall be deposited directly by the applicable Account Debtor into a lockbox account, or such other “blocked account” as Bank may specify, pursuant to a blocked account agreement in form and substance satisfactory to
Bank in its sole discretion. Whether or not an Event of Default has occurred and is continuing, Borrower shall immediately deliver all payments on and proceeds of Accounts to an account maintained with Bank to be applied (i) prior to an Event
of Default, to the Revolving Line pursuant to the terms of Section 2.5(b) hereof, and (ii) after the occurrence and during the continuance of an Event of Default, pursuant to the terms of Section 9.4 hereof; provided,
that during a Streamline Period, such payments and proceeds shall be transferred to an account of Borrower maintained at Bank.” 
 2.11 Section 8.2(a) is amended in its entirety and is replaced by the following: 
 “(a) Any Borrower fails or neglects to perform any obligation in Sections 2.2, 6.2, 6.5, 6.7, 6.8, 6.9, or 6.10(c), or violates any covenant in Section 7; or” 

2.12 Section 9.1(c) and Section 9.1(d) are each amended and replaced by the following: 

“(c) for any Letters of Credit, demand that Borrower (i) deposit cash with Bank in an amount equal to 105% (110% for letters of
credit denominated in a currency other than Dollars), of the Dollar Equivalent of the aggregate face amount of all letters of credit remaining undrawn plus all interest, fees, and costs due or to become due in connection therewith (as estimated by
Bank in its good faith business judgment), to secure all of the Obligations relating to such letters of credit, as collateral security for the repayment of any future drawings under such 

  
 4 








 
letters of credit, and Borrower shall forthwith deposit and pay such amounts, and (ii) pay in advance all letter of credit fees scheduled to be paid or payable over the remaining term of any
letters of credit; provided, however, if an Event of Default described in Section 8.5 occurs, the obligation of Borrower to cash collateralize all letters of credit remaining undrawn shall automatically become effective without
any action by Bank; 
 (d) terminate any foreign exchange forward contracts; 

2.13 Section 12.8 of the Loan Agreement is amended in its entirety and is replaced with the following: 

“12.8 Survival. All covenants, representations and warranties made in this Agreement continue in full force until this
Agreement has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) have been paid in full and satisfied.
Without limiting the foregoing, except as otherwise provided in Section 4.1, the grant of security interest by Borrower in Section 4.1 shall survive until the termination of all Bank Services Agreements. The obligation of Borrower in
Section 12.2 to indemnify Bank shall survive until the statute of limitations with respect to such claim or cause of action shall have run.” 
 2.14 Clause (d) of the definition of “Eligible Accounts” is hereby deleted in its entirety and is replaced with the following: 

“(d) Accounts over the Dollar Equivalent of $400,000 in the aggregate billed and/or payable outside of the United States by
ChannelAdvisor GmbH and ChannelAdvisor (AU) Pty. Ltd.;” 
 2.15 The following terms and their respective definitions
set forth in Section 13.1 are deleted in their entirety: 
 ““Cash Burn” is defined in
Section 6.9. 
 “Cash Management Services” is defined in Section 2.1.4. 

“EBITDA” shall mean (a) Net Income plus (b) Interest Expense plus (c) to the extent deducted in the
calculation of Net Income, depreciation expense and amortization expense, plus (d) income tax expense. 
 “FX
Business Day” is any day when (a) Bank’s Foreign Exchange Department is conducting its normal business and (b) the Foreign Currency being purchased or sold by a Borrower is available to Bank from the entity from which Bank
shall buy or sell such Foreign Currency. 
 “FX Forward Contract” is defined in Section 2.1.3. 

  
 5 








 “FX Reduction Amount” is defined in Section 2.1.3. 

“FX Reserve” is defined in Section 2.1.3. 
 “Interest Expense” means for any fiscal period, interest expense (whether cash or non-cash) determined in accordance with GAAP for the relevant period ending on such date, including, in
any event, interest expense with respect to any Credit Extension and other Indebtedness of Parent and its Subsidiaries, including, without limitation or duplication, all commissions, discounts, or related amortization and other fees and charges with
respect to letters of credit and bankers’ acceptance financing and the net cost associated with interest rate swap, cap, and similar arrangements, and the interest portion of any deferred payment obligation (including leases of all types).

 “Letter of Credit” means a standby letter of credit issued by Bank or another institution based upon an
application, guarantee, indemnity or similar agreement on the part of Bank as set forth in Section 2.1.2. 
 “Letter
of Credit Application” is defined in Section 2.1.2(b). 
 “Letter of Credit Reserve” has the
meaning set forth in Section 2.1.2(e). 
 “Liquidity Ratio” is a ratio of (a) unrestricted Cash and
Cash Equivalents plus 80% of Eligible Accounts to (b) outstanding Obligations. 
 “Net Income”
means, calculated on a consolidated basis for parent and its Subsidiaries for any period as at any date of determination, the net profit (or loss), after provisions for taxes, of Parent and its Subsidiaries for such period taken as a single
accounting period. 
 “Subject Month” is the month which is two (2) calendar months after any Testing
Month. 
 “Testing Month” is any month with respect to which Bank has tested Borrower’s Liquidity Ratio in
order to determine Bank’s method for calculating the interest rate on Advances.” 
 2.16 Section 13.1 of
the Loan Agreement is amended by inserting the following terms, each in its applicable alphabetical order: 

““Adjusted Quick Ratio” is the ratio of (a) the sum of (i) Borrower’s unrestricted cash and
unrestricted Cash Equivalents plus (ii) net billed accounts receivable divided by (b) (i) Current Liabilities, plus (ii) without duplication, all obligations and liabilities of Borrower owed to Bank,
minus (iii) the current portion of Deferred Revenue. 
 “Bank Services” are any products, credit
services, and/or financial accommodations previously, now, or hereafter provided to Borrower or any of its 

  
 6 








 
Subsidiaries by Bank or any Bank Affiliate, including, without limitation, any letters of credit, cash management services (including, without limitation, merchant services, direct deposit of
payroll, business credit cards, and check cashing services), interest rate swap arrangements, and foreign exchange services as any such products or services may be identified in Bank’s various agreements related thereto (each, a “Bank
Services Agreement”). 
 “Current Liabilities” are all obligations and liabilities of Borrower to Bank,
plus, without duplication, the aggregate amount of Borrower’s Total Liabilities that mature within one (1) year. 
 “Streamline Period” is, on and after the Seventh Amendment Effective Date, provided no Default or Event of Default has occurred and is continuing, the period (i) beginning on the
first (1st) day in which Borrower has, for each consecutive day in the immediately preceding thirty (30) day period, maintained the Adjusted Quick Ratio, as determined by Bank, in its sole discretion, in an amount at all times equal to or
greater than 1.20 to 1.00, as determined by Bank, in its sole discretion (the “Streamline Balance”); and (ii) ending on the earlier to occur of (A) the occurrence of a Default or an Event of Default; and (B) the first
day thereafter in which Borrower fails to maintain the Streamline Balance, as determined by Bank, in its sole discretion. Upon the termination of a Streamline Period, Borrower must maintain the Streamline Balance each consecutive day for thirty
(30) consecutive days, as determined by Bank, in its sole discretion, prior to entering into a subsequent Streamline Period. Borrower shall give Bank prior-written notice of Borrower’s intention to enter into any such Streamline Period.

 “Total Liabilities” is on any day, obligations that should, under GAAP, be classified as liabilities on
Borrower’s consolidated balance sheet, including all Indebtedness.” 
 2.17 The following terms and their
respective definitions set forth in Section 13.1 are amended in their entirety and replaced with the following: 

““Availability Amount” is (a) the lesser of (i) the Revolving Line or (ii) the Borrowing Base minus
(b) the outstanding principal balance of any Advances. 
 “Credit Extension” is any Advance, Equipment
Advance, letter of credit, Term Loan, foreign exchange forward contract, amount utilized for cash management services, or any other extension of credit by Bank for Borrower’s benefit under this Agreement. 

“Loan Documents” are, collectively, this Agreement, any Bank Services Agreements, the Collateral Agreements, the
Securities Pledge Agreement, the Warrant, the Perfection Certificate, any note, or notes or guaranties executed by Borrower, and any other present or future agreement between Borrower and/or for the benefit of Bank in connection with this Agreement
and/or any Bank Services, all as amended, restated or otherwise modified. 

  
 7 








 “Prime Rate” means the rate of interest published in the “Money
Rates” section of The Wall Street Journal, Eastern Edition as the “United States Prime Rate.” In the event that The Wall Street Journal, Eastern Edition is not published or such rate does not appear in The Wall Street
Journal, Eastern Edition, the Prime Rate shall be determined by Bank until such time as the Prime Rate becomes available in accordance with past practices. 
 “Revolving Line” is an Advance or Advances in an amount not to exceed Six Million Dollars ($6,000,000) outstanding at any time. 

“Revolving Line Maturity Date” is June 18, 2013.” 

2.18 The Compliance Certificate attached as Exhibit B to the Loan Agreement is hereby deleted in its entirety and is replaced with
exhibit B attached hereto. 
 3. Limitation of Amendment. 

3.1 The amendment set forth in Section 2, above, is effective for the purposes set forth herein and shall be limited
precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may
have in the future under or in connection with any Loan Document. 
 3.2 This Amendment shall be construed in connection
with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and
effect. 
 4. Representations and Warranties. To induce Bank to enter into this Amendment, each Borrower hereby
represents and warrants, jointly and severally, to Bank as follows: 
 4.1 Immediately after giving effect to this
Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date,
in which case they are true and correct as of such date), and (b) no Event of Default has occurred and is continuing; 

4.2 Each Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan
Agreement, as amended by this Amendment; 
 4.3 The organizational documents of the Borrowers previously delivered to
Bank remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect; 

  
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 4.4 The execution and delivery by Borrowers of this Amendment and the performance by
Borrowers of their obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized by all necessary action on the part of Borrowers; 
 4.5 The execution and delivery by Borrowers of this Amendment and the performance by Borrowers of their obligations under the Loan Agreement, as amended by this Amendment, do not and will not
contravene (a) any material law or regulation binding on or affecting Borrowers, (b) any material contractual restriction with a Person binding on Borrowers, (c) any order, judgment or decree of any court or other governmental or
public body or authority, or subdivision thereof, binding on Borrowers, or (d) the organizational documents of Borrowers; 

4.6 The execution and delivery by Borrowers of this Amendment and the performance by Borrowers of their obligations under the Loan
Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision
thereof, binding on any Borrower, except as already has been obtained or made; and 
 4.7 This Amendment has been duly
executed and delivered by Borrowers and is the binding obligation of Borrowers, enforceable against Borrowers in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation,
moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights. 
 5. No Defenses of Borrower. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with respect to the Obligations, or otherwise, and
that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and Borrower hereby RELEASES Bank from any liability
thereunder. 
 6. Integration. This Amendment and the Loan Documents represent the entire agreement about this subject
matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Amendment and the Loan Documents merge into this
Amendment and the Loan Documents. 
 7. Counterparts. This Amendment may be executed in any number of counterparts and
all of such counterparts taken together shall be deemed to constitute one and the same instrument. 
 8. Effectiveness.
This Amendment shall be deemed effective upon (a) the due execution and delivery to Bank of this Amendment by each party hereto and (b) Borrowers’ payment of a $10,000.00 modification and extension fee, which fee shall be deemed fully
earned as of the date hereof, and all Bank Expenses in connection herewith. 

  
 9 








 9. Governing Law. This Amendment and the rights and obligations of the parties hereto
shall be governed by and construed in accordance with the laws of the State of North Carolina. 
 [SIGNATURES
ON FOLLOWING PAGE] 

  
 10 









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

			
	BORROWERS:
	
	CHANNELADVISOR CORPORATION
		
	By:	 	 





	Name:	 	M. SCOT WINGO
	Title:	 	CEO

  

			
	MERCHANDISING ADVISOR CORPORATION
		
	By:	 	 





	Name:	 	M. SCOT WINGO
	Title:	 	CEO

 CA MARKETPLACES, INC. 
  

			
	By:	 	 





	Name:	 	M. SCOT WINGO
	Title:	 	CEO

 CHANNELADVISOR UK LIMITED 
  

			
	By:	 	 





	Name:	 	M. SCOT WINGO
	Title:	 	CEO

 CA WASHINGTON, LLC 
  

			
	By:	 	 





	Name:	 	M. SCOT WINGO
	Title:	 	CEO

 BANK: 
 SILICON
VALLEY BANK 
  

			
	By:	 	 





	Name:	 	 Ryan Ravenscroft

	Title:	 	 VP



  
 11 









 EXHIBIT B 

COMPLIANCE CERTIFICATE 
  

					
	TO:	 	SILICON VALLEY BANK	 	Date:                     
	FROM:	 	CHANNELADVISOR CORPORATION	 	

 The undersigned authorized officer of ChannelAdvisor Corporation (“Parent”) certifies
that under the terms and conditions of the Loan and Security Agreement between Borrowers and Bank (the “Agreement”), (1) each Borrower is in complete compliance for the period ending
                     with all required covenants except as noted below, (2) there are no Events of Default, (3) all representations and
warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already
are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of
such date, (4) each Borrower, and each of its respective Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed
by Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement, and (5) no Liens have been levied or claims made against any Borrower or any of its Subsidiaries, if any, relating to unpaid employee payroll
or benefits of which any Borrower has not previously provided written notification to Bank. Attached are the required documents supporting the certification. The undersigned certifies that these are prepared in accordance with GAAP consistently
applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings may be requested at any time or date of determination that any Borrower is not in compliance with any of
the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement. 

Please indicate compliance status by circling Yes/No under “Complies” column. 

 

					
	 Reporting Covenant
	  	 Required
	  	 Complies

			
	Monthly financial statements with Compliance Certificate	  	Monthly within 30 days	  	Yes    No
	Annual financial statement (CPA Audited) + CC	  	FYE within 180 days	  	Yes    No
	A/R & A/P Agings, Deferred Revenue Reports	  	Monthly within 30 days and with each request for a Credit Extension	  	Yes    No
	Transaction Reports	  	Monthly within 30 days and with each request for a Credit Extension	  	Yes    No
	Projections	  	FYE within 30 days	  	Yes    No
	Field Exam	  	Semi-annually	  	Yes    No


  
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	 Financial Covenant
	  	Required	 	  	Actual	 	  	Complies
				
	 Maintain as indicated:
	  				  				  	
	 Adjusted Quick Ratio of at least (monthly)
	  	 	1.10 to 1.00	  	  	 	    :1.0	  	  	Yes     No

 The following are the exceptions with respect to the certification above: (If no exceptions exist, state
“No exceptions to note.”) 
  
  

 
  
  

 

			
	  
	 	


 



			
	ChannelAdvisors Corporation
		
	By:	 	  

	Name:	 	  

	Title:	 	  






			
	BANK USE ONLY
		
	Received by:	  	  

		  	AUTHORIZED SIGNER
	Date:	  	  

		  	
	Verified:	  	  

		  	AUTHORIZED SIGNER
	Date:	  	  



Compliance Status:  Yes    No


 


  
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