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|  | Amendment to Credit Agreement |
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| 1. | DEFINED TERMS. Capitalized terms used in this agreement shall have the same meanings as in the Credit Agreement, unless otherwise defined in this agreement. |
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| 2. | MODIFICATION OF CREDIT AGREEMENT. The Credit Agreement is hereby amended as follows: |
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|   | 2.1 | From and after the Effective Date, Section 1.3 of the Credit Agreement captioned "Borrowing Base" is hereby amended restated to read as follows: |
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|   | A. | 80% of the book value of all Eligible Accounts, plus |
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|   | B. | 45% of the aggregate amount of expected revenue to be received by the Borrower from all Eligible Open Orders and Renewals; provided however, no amount shall be advanced on this component of the Borrowing Base if Borrower's Subscription Loss Rate is greater than or equal to 4.00% on average, averaged over the prior three months, minus |
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|   | C. | $75,000.00 |
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|   | 2.2 | From and after the Effective Date, the following definition is hereby added to Section 2 of the Credit Agreement. |
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| 3. | RATIFICATION. The Borrower ratifies and reaffirms the Credit Agreement and the Credit Agreement shall remain in full force and effect as modified by this agreement. |
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| 4. | BORROWER REPRESENTATIONS AND WARRANTIES. The Borrower represents and warrants that (a) the representations and warranties contained in the Credit Agreement are true and correct in all material respects as of the date of this agreement, (b) no condition, event, act or omission which could constitute a default or an event of default under the Credit Agreement. as modified by this agreement, or any other Related Document exists, and (c) no condition, event, act or omission has occurred and is continuing that with the giving of notice, or the passage of time or both, would constitute a default or an event of default under the Credit Agreement, as modified by this agreement, or any other Related Document. |
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| 5. | FEES AND EXPENSES. The Borrower agrees to pay all fees and out-of-pocket disbursements incurred by the Bank in connection with this agreement, both before and after judgment, including legal fees incurred by the Bank in the preparation, consummation, administration and enforcement of this agreement. |
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| 6. | EXECUTION AND DELIVERY. This agreement shall become effective only after it is fully executed by the Borrower and the Bank. |
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| 7. | ACKNOWLEDGEMENTS OF BORROWER I RELEASE. The Borrower acknowledges that as of the date of this agreement it has no offsets with respect to all amounts owed by the Borrower to the Bank arising under or related to the Credit Agreement, as modified by this agreement, or any other Related Document on or prior to the date of this agreement. The Borrower fully, finally and forever releases and discharges the Bank, its successors and assigns and their respective directors, officers, employees, agents and representatives (each a “Bank Party”) from any and all claims, causes of action, debts, demands and liabilities, of whatever kind or nature, in law or in equity, of the Borrower, whether now known or unknown to the Borrower. which may have arisen in connection with the Credit Agreement or the actions or omissions of any Bank Party related to the Credit Agreement on or prior to the date hereof. The Borrower acknowledges and agrees that this agreement is limited to the terms outlined above, and shall not be construed as an agreement to change any other terms or provisions of the Credit Agreement. This agreement shall not establish a course of dealing or be construed as evidence of any willingness on the Bank's part to grant other or future agreements, should any be requested. |
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| 8. | INTEGRATION, ENTIRE AGREEMENT, CHANGE, DISCHARGE, TERMINATION, OR WAIVER. The Credit Agreement, as modified by this agreement, and the other Related Documents contain the complete understanding and agreement of the Borrower and the Bank in respect of the Credit Facilities and supersede all prior understandings and negotiations. If anyone or more of the obligations of the Borrower under this agreement or the Credit Agreement, as amended by this agreement, is invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining obligations of the Borrower shall not in any way be affected or impaired, and the invalidity, illegality or unenforceability in one jurisdiction shall not affect the validity, legality 01' enforceability of the obligations of the Borrower under this agreement, the Credit Agreement, as modified by this agreement, 01' any other Related Document in any other jurisdiction. No provision of the Credit Agreement, as modified by this agreement, or the other Related Documents, may be changed, discharged, supplemented, terminated, or waived except in a writing signed by the party against whom it is being enforced. |
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| 9. | Governing Law and Venue. This agreement shall be governed by and construed in accordance with the laws of the State of Wisconsin (without giving effect to its laws of conflicts). The Borrower agrees that any legal action or proceeding with respect to any of its obligations under this agreement may be brought by the Bank in any state or federal court located in the State of Wisconsin, as the Bank in its sole discretion may elect. By the execution and delivery of this agreement, the Borrower submits to and accepts, for itself and in respect of its property, generally and unconditionally, the non-exclusive jurisdiction of those courts. The Borrower waives any claim that the State of Wisconsin is not a convenient forum or the proper venue for any such suit, action or proceeding. |
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| 10. | NOT A NOVATION. This agreement is a modification only and not a novation. Except as expressly modified by this agreement, the Credit Agreement, any other Related Documents, and all the terms and conditions thereof, shall be and remain in full force and effect with the changes herein deemed to be incorporated therein. This agreement is to be considered attached to the Credit Agreement and made a part thereof. This agreement shall not release or affect the liability of any guarantor of any promissory note or credit facility executed in reference to the Credit Agreement or release any owner of collateral granted as security for the Credit Agreement. The validity, priority and enforceability of the Credit Agreement shall not be impaired hereby. To the extent that any provision of this agreement conflicts with any term or condition set forth in the Credit Agreement, or any other Related Documents, the provisions of this agreement shall supersede and control. The Bank expressly reserves all rights against all parties to the Credit Agreement and the other Related Documents. |
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| 11. | TIME IS OF THE ESSENCE. Time is of the essence under this agreement and in the performance of every term, covenant and obligation contained herein. |
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|   | Borrower:                  |                 |   |
|--------|----------------------------|----------------------|--------|
|   |                       |                 |   |
|   | ARI Network Services, Inc. |                 |
|   |                       |                 |   |   |
|   | By:                        | /s/ Darin R. Janecek |   |
|   |                       | Darin R. Janecek     | CFO    |
|   |                       | Printed Name         | Title  |
|   |                       |                 |   |   |
|   | Date Signed                | January 12, 2011     |   |
|   |                       |                 |   |   |
|   | Bank:                      |                 |   |
|   |                       |                 |   |
|   | JPMorgan Chase Bank, N.A.  |
|   |                       |                 |   |   |
|   | By:                        | /s/ Anthony Bartell  |   |
|   |                       | Anthony Bartell      | VP     |
|   |                       | Printed Name         | Title  |
|   |                       |                 |   |   |
|   | Date Signed                | January 12, 2011     |   |

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