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EXHIBIT 10.10    
    

Form of

Restricted Stock Agreement  

        This Restricted Stock Agreement is entered into by and between ExactTarget, Inc., a Delaware corporation ("Company"), and  DIRECTOR, a
member of the Company's Board of Directors ("Director"), effective on this EFFECTIVE DATE. 

Background  

        The Company wishes to provide incentives to recognize and reward the Director, whose performance, contributions, and skills will be critical to the Company's
success, by aligning his interests more closely with those of the Company's shareholders. For this purpose, the Compensation Committee of the Company's Board of Directors ("Committee") has granted the
Director restricted shares of unregistered common stock of Company, subject to the terms and conditions provided in this Restricted Stock Agreement ("Agreement") and the ExactTarget, Inc. 2008
Equity Incentive Plan ("2008 Plan"). 

        In
consideration of the premises, the Company and the Director agree as follows: 

Agreement  

        1.    Grant.    The Company hereby grants the Director
                                     whole shares of
unregistered common stock of the Company, which shares ("Restricted Shares") shall be subject to the terms, conditions, and restrictions specified in this Agreement and the Plan. The Committee has
determined that (disregarding restrictions imposed by this Agreement and the Plan that lapse upon the Director's interest becoming vested) the Restricted Shares have a per-share fair
market value ("Value") of $                        . 

        2.    Closing.    The transfer of the Restricted Shares ("Closing") shall occur simultaneously with the execution of
this Agreement. Concurrently with the execution of this Agreement, (i) the Company shall deliver to the Director a certificate, registered in the Director's name, representing the Restricted
Shares, and (ii) the Director shall deliver to the Company a duly executed (A) stock power, endorsed in blank, relating to the Restricted Shares, and (B) a duly signed election
under Internal Revenue Code Section 83(b), with respect to the grant of the Restricted Shares, provided that the Director intends to make such an election at the Closing. 

        3.    Custody.    The Director understands that, although the certificates representing the Restricted Shares shall be
registered in the Director's name, all such certificates (other than for Restricted Shares that have vested) shall be deposited, together with the stock power executed by the Director, in proper form
for transfer, with the Company. The Company is hereby authorized to effectuate the transfer into its name of all certificates representing the Restricted Shares that are forfeited to the Company
pursuant to paragraph 5 of this Restricted Stock Agreement. Following the vesting of all Restricted Shares subject to this Agreement, or earlier, if requested by the Director, the Company shall
issue an appropriate certificate for those Restricted Shares that have become vested. 

        4.    Nontransferability of Restricted Shares.    Until such time as the Restricted Shares become vested, the Director
shall not have any right to sell, transfer, pledge, hypothecate, or otherwise dispose of the Restricted Shares. The Director represents and warrants to the Company that he shall not sell, transfer,
pledge, hypothecate, or otherwise dispose of the Restricted Shares in violation of applicable securities laws or the provisions of this Agreement. Except as expressly provided in this Agreement, all
non-vested Restricted Shares shall be forfeited upon the Director's termination of service as a member of the Board of Directors. 

        5.    Vesting.    The Director's interest in the Restricted Shares shall vest and become nonforfeitable as follows:
Except as otherwise provided herein or the Plan, the Director's interest in 25% of the Restricted Shares shall vest on the first anniversary of the Grant Date, and his interest in
1/48th of the 

Restricted
Shares shall vest on the same day of each of the next following 36 months (assuming that the Director is a member of the Board of Directors on the applicable vesting date). 

        6.    Forfeiture.    If the Director should cease to be a member of the Board of Directors for any reason before
becoming 100% vested in the Restricted Shares, the Restricted Shares shall not vest further, and the Director's interest in the unvested portion of the Restricted Shares shall be immediately forfeited
(effective as of the date of such termination of service with the Board of Directors). 

        7.    Voting and Other Rights.    The Director shall have all of the rights and status as a stockholder of the Company
with respect to the Restricted Shares, including the right to vote any and all Restricted Shares and to receive dividends or other distributions thereon, regardless of whether such Restricted Shares
are vested, until the earlier of the date on which such Restricted Shares shall be forfeited as
provided herein or the date on which the Director ceases to own such shares. The Director understands that the grant of Restricted Shares to him under this Agreement does not confer upon him any right
to continue as a director of the Company. 

        8.    Investment Representations.    The Director represents and warrants to the Company that he is acquiring the
Restricted Shares for his own account for investment and not with a view to or for resale in connection with any distribution of the Restricted Shares and that he has no present intention of
distributing or reselling the Restricted Shares. The Director acknowledges that the certificate or certificates representing the Restricted Shares shall bear an appropriate legend relating to
restrictions on transfer. 

        9.    Adjustments for Changes in Capitalization of the Company.    In the event of any change in the outstanding
shares of common stock of the Company prior to the lapsing of the restrictions associated with the Restricted Shares by reason of any reorganization, recapitalization, stock split, stock dividend,
combination or exchange of shares, merger, consolidation, or any change in the corporate structure of the Company or in the shares of common stock, the number and class of the Restricted Shares shall
be appropriately adjusted by the Company, in its sole discretion, whose determination shall be conclusive. 

        10.    Securities Laws.    The Director understands that applicable securities laws may restrict the right of the
Director to dispose of any Restricted Shares which the Director may acquire hereunder and govern the manner in which such Restricted Shares may be sold. The Director shall not offer, sell or otherwise
dispose of any of the Restricted Shares in any manner which would (a) require the Company to file any registration statement with the Securities Exchange Commission (the "SEC"),
(b) require the Company to amend or supplement any registration statement which the Company may at any time have on file with the SEC, or (c) violate the 1933 Act or any other state or
federal law. 

        11.    Withholding Taxes.    If the grant or other transfer of the Restricted Shares, or the vesting of the Restricted
Shares, results in taxable compensation income to the Director, the Director hereby authorizes the Company to collect any withholding taxes from the Director by lump sum payroll deduction or, if that
is not possible, the Director agrees to make direct payment of the applicable taxes to the Company. 

        12.    Integration.    This Agreement supersedes any and all prior and/or contemporaneous agreements, either oral or
in writing, between the parties hereto, with respect to the subject matter hereof. Each party to this Agreement acknowledges that no representations, inducements, promises, or other agreements, oral
or otherwise, have been made by any party, or anyone acting on behalf of any party, pertaining to the subject matter hereof, which are not embodied herein, and that no prior and/or contemporaneous
agreement, statement or promise pertaining to the subject matter hereof that is not contained in this Agreement shall be valid or binding on either party. 

        13.    Successors.    This Agreement shall be binding upon and inure to the benefit of any successor of the Company
and any successors, assigns or estate of the Director, including his executors, administrators and trustees. 

        14.    Amendment.    No provision of this Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is in writing and signed by the party against whom such modification, waiver or discharge is sought to be enforced. 

        15.    Governing Law.    The validity, interpretation, construction and performance of this Agreement will be governed
by and construed in accordance with the substantive laws of the State of Indiana, without giving effect to the principles of conflict of laws of such State. 

        16.    Binding Agreement.    By signing below, the Company and the Director agree to be bound by the terms and
conditions of this Stock Agreement. 

        IN
WITNESS WHEREOF, the Company and the Director have executed this Restricted Stock Agreement, effective on the date specified in the first paragraph hereof. 

	 	 	EXACTTARGET, INC.
	

 
 (Written signature)	
 	

By:	

 
 Scott Dorsey, President and CEO
	

 
 (Printed signature)	
 	

 	

 

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EXHIBIT 10.11    
    

LOAN AND SECURITY AGREEMENT  

        THIS LOAN AND SECURITY AGREEMENT (this "Agreement") dated as of
March 31, 2008 (the "Effective Date") between SILICON VALLEY BANK, a California corporation and
with a loan production office located at 230 West Monroe Street, Suite 720, Chicago, Illinois 60606 ("Bank"), and  EXACTTARGET, INC., a Delaware
corporation ("Borrower"), provides the terms on which Bank shall
lend to Borrower and Borrower 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.    Borrower hereby unconditionally promises 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, Bank shall make Advances not exceeding
the Availability Amount. Amounts borrowed under the Revolving Line 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. 

        2.1.2    Letters of Credit Sublimit. 

        (a)    As
part of the Revolving Line, after the Initial Advance, Bank shall issue or have issued Letters of Credit for Borrower's account. The face amount of outstanding
Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve) may not exceed $500,000, inclusive of Credit Extensions relating to Sections 2.1.3 and
2.1.4. Such aggregate amounts utilized hereunder shall at all times reduce the amount otherwise available for Advances under the Revolving Line. If, on the Revolving Line Maturity Date, there are any
outstanding Letters of Credit, then on such date Borrower shall provide to Bank cash collateral in an amount equal to 105% 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 said Letters of Credit. 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. 

        (b)    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. 

        (c)    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 equivalent of the amount thereof (plus fees and charges in connection therewith such as wire, cable, SWIFT or similar charges) in Dollars at 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. 

        (d)    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, after the Initial Advance, Borrower may enter
into foreign exchange contracts with Bank under which Borrower commits 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 in a maximum aggregate amount
equal to $50,000 (the "FX Reserve"). The aggregate amount of FX Forward Contracts at any one time may not exceed ten (10) times the amount of the
FX Reserve and the aggregate amount of FX Forward Contracts may not exceed $500,000, inclusive of Credit Extensions relating to Sections 2.1.2 and 2.1.4. 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. Any amounts needed to fully reimburse Bank 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.    After the Initial Advance, Borrower may use up to Five Hundred Thousand
Dollars ($500,000.00), inclusive of Credit Extensions relating to Sections 2.1.2 and 2.1.3 of 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"). The dollar amount of any Cash Management Services provided under this sublimit will reduce the amount otherwise available under the Revolving Line. Any amounts used
or reserved by Borrower for any Cash Management Services will reduce the amount otherwise available for Credit Extensions under the Revolving Line. Any amounts Bank pays on behalf of Borrower 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. 

        2.2    Overadvances.    If, at any time, the Credit Extensions under Sections 2.1.1, 2.1.2, 2.1.3 and 2.1.4
exceed the lesser of either (a) the Revolving Line or (b) the Borrowing Base, Borrower shall immediately pay to Bank in cash such excess. 

        2.3    Payment of Interest on the Credit Extensions. 

        (a)    Interest Rate.    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, which interest shall be payable monthly in accordance with Section 2.3(f) below. 

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        (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 above the rate effective immediately before the Event of Default (the "Default
Rate"). 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. 

        (d)    360-Day Year.    Interest shall be computed on the basis of a 360-day year for the
actual number of days elapsed. 

        (e)    Debit of Accounts.    Bank may debit any of Borrower's deposit accounts, including the Designated Deposit
Account, for principal and interest payments or, after notice to Borrower, any other amounts Borrower owes Bank when due. These debits shall not constitute a set-off. 

        (f)    Payments.    Unless otherwise provided, interest is payable monthly on the first (1st) calendar
day of each month. Payments of principal and/or interest received after 12:00 noon Eastern 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 is due the next Business Day and additional fees or interest, as applicable, shall continue to accrue. 

        2.4    Fees.    Borrower shall pay to Bank: 

        (a)    Origination Fee.    A fully earned, non-refundable origination fee of $10,000.00
("Origination Fee"), on the first (1st) day of the month following the earliest to occur of: (i) the occurrence of an Event of Default,
(ii) the early termination of this Agreement, and (iii) Borrower's
failure to maintain an average monthly balance of at least Two Million Dollars ($2,000,000.00) in operating accounts at Bank; and 

        (b)    Due Diligence Fee.    A fully-earned, non-refundable due diligence fee of $5,000.00 on the
Effective Date; and 

        (c)    Unused Revolving Line Facility Fee.    A fee (the "Unused Revolving Line Facility
Fee"), payable quarterly, in arrears, on a calendar year basis, in an amount equal to 0.025% per annum of the average unused portion of the Revolving Line, as determined by
Bank. The unused portion of the Revolving Line, for the purposes of this calculation, shall include amounts reserved under the Cash Management Services Sublimit for products provided and under the
Foreign Exchange Sublimit for FX Forward Contracts. Borrower shall not be entitled to any credit, rebate or repayment of any Unused Revolving Line Facility Fee previously earned by Bank pursuant to
this Section notwithstanding any termination of the Agreement or the suspension or termination of Bank's obligation to make loans and advances hereunder; and 

        (d)    Letter of Credit Fee.    Bank's customary fees and expenses for the issuance or renewal of Letters of Credit,
upon the issuance, each anniversary of the issuance, and the renewal of such Letter of Credit; and 

        (e)    Bank Expenses.    All Bank Expenses incurred through and after the Effective Date, when due. 

        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 

3

 

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 to which it is a party; 

        (b)    Borrower
shall have delivered its Operating Documents and a good standing certificate of Borrower certified by the Secretary of State of the State of Delaware as of a
date no earlier than thirty (30) days prior to the Effective Date; 

        (c)    Duly
executed original signatures to the Corporate Borrowing Certificate; 

        (d)    Bank
shall have received certified copies, dated as of a recent date, of financing statement searches, as Bank shall request, accompanied by written evidence (including
any Code termination statements) that the Liens indicated in any such financing statements either constitute Permitted Liens or have been or, in connection with the initial Credit Extension, will be
terminated or released; 

        (e)    Borrower
shall have delivered a legal opinion of Borrower's counsel dated as of the Effective Date together with the duly executed original signatures thereto; 

        (f)    Borrower
shall have delivered evidence satisfactory to Bank that the insurance policies required by Section 6.4 hereof are in full force and effect, together with
appropriate evidence showing loss payable and/or additional insured clauses or endorsements in favor of Bank; and 

        (g)    Borrower
shall have paid 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: 

        (a)    except
as otherwise provided in Section 3.4, timely receipt of an executed Payment/Advance Form; 

        (b)    the
representations and warranties in Section 5 shall be true, accurate, and complete in all material respects on the date of the Payment/Advance Form 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 such date, and no Event of Default shall have occurred and be continuing or result from the Credit Extension. Each Credit Extension is Borrower's representation and warranty on that date that the
representations and warranties in Section 5 remain true 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 reasonable discretion, there has not been a Material Adverse Change, nor has there been any material adverse deviation by Borrower from the most recent
business plan of Borrower presented to and accepted by Bank. 

        3.3    Covenant to Deliver.    Borrower agrees to deliver to Bank each item required to be delivered to Bank under
this Agreement as a condition to any Credit Extension. Borrower expressly agrees that the extension of a Credit Extension prior to the receipt by Bank of any such item shall not constitute a waiver by
Bank of Borrower's obligation to deliver such item, and any such extension in the absence of a required item shall be in Bank's sole discretion. 

4

 

        3.4    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 2.1.4), Borrower shall notify Bank (which notice shall be irrevocable) by electronic
mail, facsimile, or telephone by 12:00 noon Eastern 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 Payment/Advance Form 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. 

        4    CREATION OF SECURITY INTEREST  

        4.1    Grant of Security Interest.    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. 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
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 Borrower's sole cost and expense, release its Liens in the Collateral
and all rights therein shall revert to Borrower. 

        4.2    Authorization to File Financing Statements.    Borrower hereby authorizes Bank to file financing statements,
without notice to 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 either Borrower
or any other Person, shall be deemed to violate the rights of Bank under the Code. 

        5    REPRESENTATIONS AND WARRANTIES  

        Borrower represents and warrants as follows: 

        5.1    Due Organization and Authorization.    Borrower and each of its Subsidiaries, if any, are duly existing and in
good standing, as Registered Organizations in their respective jurisdictions of formation and are qualified and licensed to do business and are in good standing in any jurisdiction in which the
conduct of their business or their ownership of property requires that they 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 perfection certificate signed by Borrower (the "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) except as set forth in the Perfection Certificate, 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. If Borrower is not now a 

5

 

Registered
Organization but later becomes one, Borrower shall promptly notify Bank of such occurrence and provide Bank with Borrower's organizational identification number. 

        The
execution, delivery and performance of the Loan Documents have been duly authorized, and do not conflict with Borrower's organizational documents, nor 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. 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. None of the components of the
Collateral shall be maintained at locations other than as provided in the Perfection Certificate or as Borrower has given Bank notice pursuant to Section 7.2. In the event that Borrower, after
the date hereof, intends to store or otherwise deliver any portion of the Collateral to a bailee, then Borrower will first receive the written consent of Bank and such bailee must execute and deliver
a bailee agreement in form and substance satisfactory to Bank in its reasonable discretion. 

        Except
as noted on the Perfection Certificate, Borrower is not a party to, nor is bound by, any material license or other agreement with respect to which Borrower is the licensee that
prohibits or otherwise restricts Borrower from granting a security interest in Borrower's interest in such license or agreement or any other property. Borrower shall provide written notice to Bank
within ten (10) days of entering or becoming bound by any such license or agreement which is reasonably likely to have a material impact on Borrower's business or financial condition (other
than over-the-counter software that is commercially available to the public). 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 all such licenses or contract rights 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 license or agreement (such consent or authorization may include a licensor's agreement to a contingent assignment of the license to Bank if Bank determines that is
necessary in its good faith judgment), whether now existing or entered into in the future. 

        5.3    Accounts Receivable.    For any Eligible Account in any Borrowing Base Certificate, all statements made and all
unpaid balances appearing in all invoices, instruments and other documents evidencing such 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. 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 an Eligible
Account in any Borrowing Base Certificate. 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.    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 involving more than $50,000. 

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        5.5    No Material Deterioration in Financial Statements.    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. Borrower is not engaged as one of its important activities in extending credit for margin stock (under Regulations T and U of the Federal
Reserve Board of Governors). Borrower has complied in all material respects with the Federal Fair Labor Standards Act. 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 its business 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.    Borrower has timely filed all required tax returns and
reports, and Borrower and its Subsidiaries have timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower, except those being contested in good
faith with adequate reserves under GAAP. Borrower may 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 governmental authority levying such contested taxes from obtaining a Lien upon any of the Collateral that is other than a "Permitted Lien". To the best of
Borrower's knowledge, there are no 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 representations, warranties, or other statements were 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 

7

 

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). 

        6    AFFIRMATIVE COVENANTS  

        Borrower shall do all of the following: 

        6.1    Government Compliance.    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, the noncompliance with which could reasonably be
expected to have a material adverse effect on Borrower's business. 

        6.2    Financial Statements, Reports, Certificates. 

        (a)    Deliver
to Bank: (i) 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 Borrower's consolidated operations during the period certified by a Responsible Officer and in a form acceptable to Bank; (ii) as soon as available, but no
later than one hundred fifty (150) days after the last day of Borrower'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; (iii) in the
event that Borrower becomes subject to the reporting requirements under the Securities Exchange Act of 1934, as amended, within five (5) days of filing, all reports on
Form 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission or a link thereto on Borrower's or another website on the Internet; (iv) a
prompt report of any legal actions pending or threatened against Borrower or any of its Subsidiaries that could result in damages or costs to Borrower or any of its Subsidiaries of One Hundred
Thousand Dollars ($100,000) or more; and (v) other financial information reasonably requested by Bank. 

        (b)    Within
thirty (30) days after the last day of each month, deliver to Bank a duly completed Borrowing Base Certificate signed by a Responsible Officer, with aged
listings of accounts receivable and accounts payable (by invoice date). 

        (c)    Within
thirty (30) days after the last day of each month, deliver to Bank with the monthly financial statements, a duly completed Compliance Certificate signed by
a Responsible Officer setting forth calculations showing compliance with the financial covenants set forth in this Agreement. 

        (d)    Allow
Bank to audit Borrower's collateral at Borrower's expense. Such 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 $750 per person per day, plus reasonable
out-of-pocket expenses. 

        6.3    Taxes; Pensions.    Make, and cause each of its Subsidiaries to make, timely payment of all foreign, federal,
state, and local taxes or assessments (other than taxes and assessments which Borrower is contesting 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. 

        6.4    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 in its reasonable discretion.
All policies (or the loss payable and additional insured endorsements) shall 

8

 

provide
that the insurer must 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 policy shall, at Bank's option, be payable to Bank on account of the Obligations. If Borrower fails to obtain insurance as
required under this Section 6.4 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 6.4, and take any action under the policies Bank deems prudent. 

        6.5    Operating Accounts. 

        (a)    Maintain
its and its Subsidiaries' depository, operating, and securities accounts with Bank and Bank's affiliates. Notwithstanding the foregoing, Borrower may maintain
an account at National City Bank (the "National City Account"), provided that the aggregate amount that Borrower shall maintain in the National City
Account at any one time shall be no greater than Two Hundred Thousand Dollars ($200,000.00); provided, however, that Borrower may, at any time, maintain up to Five Hundred Thousand Dollars
($500,000.00) in the National City Account for up to five (5) Business Days, provided that, at the expiration of such five (5) Business Day period, any amounts in the National City
Account in excess of Two Hundred Thousand Dollars ($200,000.00) shall be immediately transferred to Borrower's operating account maintained with Bank. 

        (b)    For
each Collateral Account that Borrower at any time maintains, Borrower shall, except as specifically contested to in writing by Bank, 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 the 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. 

        6.6    Financial Covenants.    Borrower shall maintain at all times, to be tested as of the last day of each month,
unless otherwise noted: 

        (a)    Adjusted Quick Ratio.    A ratio of Quick Assets to Current Liabilities minus Deferred Revenue (as reflected on
Borrower's balance sheet for such period) of at least 1.75 to 1.0. 

        6.7    Protection of Intellectual Property Rights.    Borrower shall protect, defend and maintain the validity and
enforceability of its intellectual property. 

        6.8    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. 

        6.9    Account Control Agreement.    Within thirty (30) days after the Effective Date, Borrower shall deliver
to Bank a Control Agreement, in form and substance acceptable to Bank, executed by Borrower and National City Bank in favor of Bank with respect to the National City Account. 

        6.10    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. 

9

 

        7    NEGATIVE COVENANTS  

        Borrower shall not 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; and (d) of
non-exclusive licenses for the use of the property of Borrower or its Subsidiaries in the ordinary course of business. 

        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) have a material change in management, or (ii) enter into any transaction or series of related transactions in which the stockholders of Borrower immediately prior to the first
such transaction own less than 60% 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). 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 Ten Thousand Dollars ($10,000) in Borrower's assets or property), except for Borrower's future office located at The Gibson Building, 433 North Capitol, Indianapolis, Indiana,
(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. 

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

        7.6    Distributions; Investments.    (a) Directly or indirectly make any Investment other than Permitted Investments,
or permit any of its Subsidiaries to do so; or (b) pay any dividends or make any distribution or payment or redeem, retire or purchase any capital stock. 

        7.7    Transactions with Affiliates.    Directly or indirectly enter into or permit to exist any material transaction
with any Affiliate of Borrower, except for transactions that are in the ordinary course of 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. 

        7.8    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. 

        7.9    Compliance.    Become an "investment company" or a company controlled by an "investment company", under the
Investment Company Act of 1940 or undertake as one of its important activities 

10

 

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 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.    Borrower fails to pay any of the Obligations within three (3) Business Days after
such Obligations are due and payable (which three (3) Business Day grace period will not apply to payments due on the Revolving Line Maturity Date). During the cure period, the failure to cure
the payment default is not an Event of Default (but no Credit Extension will be made during the cure period); 

        8.2    Covenant Default. 

        (a)    Borrower
fails or neglects to perform any obligation in Sections 6.2, 6.4, 6.5, or 6.6 or violates any covenant in Section 7; or 

        (b)    Borrower
fails or neglects to perform, keep, or observe any other term, provision, condition, covenant or agreement contained in this Agreement, any of the 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 Borrower be cured within such ten (10) day period, and such default is likely to be cured within a reasonable time, then 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). Grace periods provided under this Section shall not apply, among other things, to financial covenants or any other covenants
set forth in subsection (a) above; 

        8.3    Material Adverse Change.    A Material Adverse Change occurs; 

        8.4    Attachment.    (a) Any material portion of Borrower's assets is attached, seized, levied on, or comes into
possession of a trustee or receiver and the attachment, seizure or levy is not removed in ten (10) days; (b) the service of process seeking to attach, by trustee or similar process, any
funds of Borrower, or of any entity under control of Borrower (including a Subsidiary), on deposit with Bank or Bank's Affiliate; (c) Borrower is enjoined, restrained, or prevented by court
order from conducting a material part of its business; (d) a judgment or other claim in excess of $100,000 becomes a Lien on any of Borrower's assets; or (e) a notice of lien, levy, or
assessment is filed against any of Borrower's assets by any government agency and not paid within ten (10) days after Borrower receives notice. These are not Events of Default if stayed or if a
bond is posted pending contest by Borrower (but no Credit Extensions shall be made during the cure period); 

11

 

        8.5    Insolvency    (a) Borrower is unable to pay its debts (including trade debts) as they become due or
otherwise becomes insolvent; (b) Borrower begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against 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 a default in any agreement to which Borrower is a party with a third party or
parties resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess of Fifty Thousand Dollars ($50,000) or that
could have a material adverse effect on Borrower's business; 

        8.7    Judgments.    A judgment or judgments for the payment of money in an amount, individually or in the aggregate,
of at least Fifty Thousand Dollars ($50,000) (not covered by independent third-party insurance) shall be rendered against Borrower and shall remain unsatisfied and unstayed for a period of ten
(10) days after the entry thereof (provided that no Credit Extensions will be made prior to the satisfaction or stay of such judgment); 

        8.8    Misrepresentations.    Borrower or any Person acting for 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; or 

        8.9    Subordinated Debt.    A default or breach occurs under any agreement between Borrower and any creditor of
Borrower that signed a subordination, intercreditor, or other similar agreement with Bank, or any creditor that has signed such an agreement with Bank breaches any terms of such agreement. 

        9    BANK'S RIGHTS AND REMEDIES  

        9.1    Rights and Remedies.    Upon the occurrence and during the continuance of an Event of
Default, 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 Borrower's benefit under this Agreement or under any other agreement between Borrower and Bank; 

        (c)    demand
that Borrower (i) deposits cash with Bank in an amount equal to the aggregate amount of any Letters of Credit remaining undrawn, 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 Borrower
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. 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 

12

 

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 Borrower it holds, or (ii) any amount held by Bank owing to or for the credit or the account of
Borrower; 

        (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, Borrower's labels, patents, copyrights, mask works, rights of use of any name, trade secrets, trade
names, trademarks, service marks, and advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and,
in connection with Bank's exercise of its rights under this Section, 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 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.    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 Borrower's name on any checks or other forms of
payment or security; (b) sign 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 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. 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 have been satisfied in full and Bank is under no
further obligation to make Credit Extensions hereunder. Bank's foregoing appointment as Borrower's attorney in fact, and all of Bank's rights and powers, coupled with an interest, are irrevocable
until all Obligations have been fully repaid and performed and Bank's obligation to provide Credit Extensions terminates. 

        9.3    Accounts Verification; Collection.    Whether or not an Event of Default has occurred and is continuing, Bank
may notify any Person owing Borrower money of Bank's security interest in such funds and verify the amount of such account. Upon the occurrence and during the continuance of an Event of Default, any
amounts received by Borrower shall be held in trust by Borrower for Bank, and, if requested by Bank, Borrower shall immediately deliver such receipts to Bank in the form received from the Account
Debtor, with proper endorsements for deposit. 

        9.4    Protective Payments.    If Borrower fails to obtain the insurance called for by Section 6.5 or fails to
pay any premium thereon or fails to pay any other amount which 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 applicable rate hereunder, and secured by the Collateral. Bank will make reasonable efforts
to provide Borrower with notice of Bank obtaining such insurance at the time it is 

13

 

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. 

        9.5    Application of Payments and Proceeds.    Unless an Event of Default has occurred and is continuing, Bank shall
apply any funds in its possession, whether from Borrower account balances, payments, or proceeds realized as the result of any collection of Accounts or other disposition of the Collateral, first, to
Bank Expenses, including without limitation, the reasonable costs, expenses, liabilities, obligations and reasonable attorneys' fees incurred by Bank in the exercise of its rights under this
Agreement; second, to the interest due upon any of the Obligations; and third, to the principal of the Obligations and any applicable fees and other charges, in such order as Bank shall determine in
its sole discretion. Any surplus shall be paid to Borrower or other Persons legally entitled thereto; Borrower shall remain liable to Bank for any deficiency. If an Event of Default has occurred and
is continuing, Bank may apply any funds in its possession, whether from Borrower 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 Borrower or other Persons legally entitled thereto; Borrower
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. 

        9.6    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. Borrower bears all risk of loss,
damage or destruction of the Collateral. 

        9.7    No Waiver; Remedies Cumulative.    Bank's failure, at any time or times, to require strict performance by
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 Bank 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
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. 

        9.8    Demand Waiver.    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 Borrower
is liable. 

        10    NOTICES  

        All notices, consents, requests, approvals, demands, or other communication (collectively, "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 

14

 

address
indicated below. Bank or Borrower may change its address or facsimile number by giving the other party written notice thereof in accordance with the terms of this Section 10. 

	If to Borrower:	EXACTTARGET, INC.

20 North Meridian Street, Suite 200

Indianapolis, Indiana 46204

Attn: Traci Dolan

Fax: (317) 275-5023

Email: tdolan@exacttarget.com
	

If to Bank:	

Silicon Valley Bank

230 West Monroe, Suite 720

Chicago, Illinois 60606

Attn: Mr. Michael Kohnen

Fax: (312) 704-1532

Email: mkohnen@svb.com
	

with a copy to:	

Riemer & Braunstein LLP

Three Center Plaza

Boston, Massachusetts 02108

Attn: David A. Ephraim, Esquire

Fax: (617) 880-3456

Email: DEphraim@riemerlaw.com
	 	 

        11    CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER  

        Illinois law governs the Loan Documents without regard to principles of conflicts of law. Borrower and Bank each submit to the exclusive jurisdiction of the State
and Federal courts in Illinois. NOTWITHSTANDING THE FOREGOING, BANK SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST BORROWER OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION
WHICH BANK DEEMS NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON THE COLLATERAL OR TO OTHERWISE ENFORCE BANK'S RIGHTS AGAINST BORROWER OR ITS PROPERTY. 

        TO THE EXTENT PERMITTED BY APPLICABLE LAW, BORROWER 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. Borrower may not 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 Borrower, 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.    Borrower agrees to indemnify, defend and hold Bank and its directors, officers, employees,
agents, attorneys, or any other Person affiliated with or representing Bank harmless against: (a) all obligations, demands, claims, and liabilities (collectively,
"Claims") asserted by any other 

15

 

party
in connection with the transactions contemplated by the Loan Documents; and (b) all losses or Bank Expenses incurred, or paid by Bank from, following, or arising from transactions between
Bank and Borrower (including reasonable attorneys' fees and expenses), except for Claims and/or losses directly caused by Bank'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    Amendments in Writing; Integration.    All amendments to this Agreement must be in writing signed by both Bank
and Borrower. This Agreement 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 Agreement and the Loan Documents merge into this Agreement and the Loan Documents. 

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

        12.7    Survival.    All covenants, representations and warranties made in this Agreement continue in full force 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 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. 

        12.8    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 in connection with their business with Borrower;
(b) to prospective transferees or purchasers of any interest in the Credit Extensions (provided, however, Bank shall use commercially reasonable efforts to obtain such 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; and (e) as Bank considers appropriate in exercising remedies under this Agreement. Confidential information does not include information that either:
(i) is in the public domain or in Bank's possession when disclosed to Bank, or becomes part of the public domain after disclosure to Bank, other than through a breach of this provision by Bank;
or (ii) is disclosed to Bank by a third party, if Bank does not know that the third party is prohibited from disclosing the information. 

        12.9    Right of Set Off.    Borrower hereby grants to Bank, a lien, security interest and right of set off as
security for all Obligations to Bank, whether now existing or hereafter arising upon and against all deposits, credits, collateral and property, now or hereafter in the possession, custody,
safekeeping or control of Bank or any entity under the control of Bank (including a Bank subsidiary) or in transit to any of them. At any time after the occurrence and during the continuance of an
Event of Default, without demand or notice, Bank may set off the same or any part thereof and apply the same to any liability or obligation of Borrower even though unmatured and regardless of the
adequacy of any other collateral securing the Obligations. ANY AND ALL RIGHTS TO REQUIRE BANK TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS,
PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED. 

16

 

        13    DEFINITIONS  

        13.1    Definitions.    As used in this Agreement, the following 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 Borrower. 

        "Account Debtor" is any "account debtor" as defined in the Code with such additions to such term as may hereafter be made. 

        "Advance" or "Advances" means an advance (or advances) under the Revolving Line. 

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

        "Agreement" is defined in the preamble hereof. 

        "Availability Amount" is (a) the lesser of (i) the Revolving Line or (ii) the Borrowing Base minus (b) the
amount of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit) plus an amount equal to the Letter of Credit Reserves, minus (c) the FX Reserve, and minus
(d) the outstanding principal balance of any Advances (including any amounts used for Cash Management Services). 

        "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,
negotiating, administering, amending, defending and enforcing the Loan Documents (including appeals or Insolvency Proceedings). 

        "Borrower" is defined in the preamble hereof. 

        "Borrower's Books" are all Borrower's books and records including ledgers, federal and state tax returns, records regarding 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 net Eligible Accounts, as determined by Bank from Borrower's most recent Borrowing Base Certificate; 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. 

        "Borrowing Base Certificate" is that certain certificate in the form attached hereto as  Exhibit C. 

        "Borrowing Resolutions" are, with respect to any Person, those resolutions adopted by such Person's Board of Directors and delivered by
such Person to Bank approving the Loan Documents to which such Person is a party and the transactions contemplated thereby, together with a certificate (the "Corporate
Borrowing Certificate") executed by its secretary on behalf of such Person certifying that (a) such Person has the authority to execute, deliver, and perform its
obligations under each of the Loan Documents to which it is a party, (b) that attached as Exhibit A to such certificate is a true, correct, and complete copy of the resolutions then in
full force and effect authorizing and ratifying the execution, delivery, and performance by such Person of the Loan Documents to which it is a party, (c) the name(s) of the Person(s) authorized
to execute the Loan Documents on behalf of such Person, together with a sample of the true signature(s) of such Person(s), and (d) that Bank may conclusively rely on such certificate unless and
until such Person shall have delivered to Bank a further certificate canceling or amending such prior certificate. 

17

 

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

        "Cash Equivalents" are (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; and (d) 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 (c) of this definition. 

        "Cash Management Services" is defined in Section 2.1.4. 

        "Cash Management Services Sublimit" is defined in Section 2.1.4. 

        "Claims" are defined in Section 12.2. 

        "Code" is the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in the State of Illinois; 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 Illinois, the term "Code" shall mean the Uniform
Commercial Code as enacted and in effect in such other jurisdiction solely for purposes on 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. 

        "Collateral Account" is any Deposit Account, Securities Account, or Commodity Account. 

        "Commodity Account" is any "commodity account" as defined in the Code with such additions to such term as may hereafter be made. 

        "Communication" is defined in Section 10. 

        "Compliance Certificate" is that certain certificate in the form attached hereto as  Exhibit D. 

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

18

 

        "Credit Extension" is any Advance, Letter of Credit, FX Forward Contract, amount utilized for Cash Management Services, or any other
extension of credit by Bank for Borrower's benefit. 

        "Current Liabilities" are all obligations and liabilities of Borrower to Bank, plus, without duplication, the aggregate amount of
Borrower's Total Liabilities which mature within one (1) year. 

        "Default Rate" is defined in Section 2.3(b). 

        "Deferred Revenue" is all amounts 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 Borrower's deposit account, account
number                                    , maintained with Bank.
 

        "Dollars," "dollars" and
"$" each mean lawful money of the United States. 

        "Domestic Subsidiary" means a Subsidiary organized under the laws of the United States or any state or territory thereof or the District
of Columbia. 

        "Effective Date" is defined in the preamble of this Agreement. 

        "Eligible Accounts" are trade Accounts which arise in the ordinary course of Borrower's business that meet all Borrower's representations
and warranties in Section 5.3. Bank reserves the right at any time and from time to 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 agrees otherwise in writing, Eligible Accounts shall not include: 

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

        (b)    Accounts
that the Account Debtor has not paid within ninety (90) days of invoice date; 

        (c)    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; 

        (d)    Credit
balances over ninety (90) days from invoice date; 

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

        (f)    Accounts
owing from an Account Debtor which does not have its principal place of business in the United States, except for Eligible Foreign Accounts; 

        (g)    Accounts
owing from an Account Debtor which is a federal, state or local government entity or any department, agency, or instrumentality thereof; 

        (h)    Accounts
owing from an Account Debtor to the extent that 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; 

        (i)    Accounts
for demonstration or promotional equipment, or in which goods are consigned, or sold on a "sale guaranteed", "sale or return", "sale on approval", "bill and
hold", or other terms if Account Debtor's payment may be conditional; 

19

 

        (j)    Accounts
for which the Account Debtor is Borrower's Affiliate, officer, employee, or agent; 

        (k)    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; 

        (l)    Accounts
for which Bank in its good faith business judgment determines collection to be doubtful; and 

        (m)    other
Accounts Bank deems ineligible in the exercise of its good faith business judgment. 

        "Eligible Foreign Accounts" are Accounts for which the Account Debtor does not have its principal place of business in the United States
but are otherwise Eligible Accounts that Bank approves in writing, on a case-by-case basis. 

        "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. 

        "Existing Equipment Loan" is the loan arrangement between Borrower and Bank evidenced by that certain Loan and Security Agreement by and
between Borrower and Bank dated as of December 1, 2005, as amended. 

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

        "Foreign Subsidiary" means any Subsidiary which is not a Domestic Subsidiary. 

        "Funding Date" is any date on which a Credit Extension is made to or on account of 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 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. 

        "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. 

        "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. 

        "Initial Advance" is the initial Advance under the Revolving Line. 

        "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 

20

 

creditors,
compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief. 

        "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(a). 

        "Letter of Credit Reserve" has the meaning set forth in Section 2.1.2(d). 

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

        "Loan Documents" are, collectively, this Agreement, 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, 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; (c) a material impairment of the prospect of
repayment of any portion of the Obligations; or (d) Bank determines, based upon information available to it and in its reasonable judgment, that there is a reasonable likelihood that Borrower
shall fail to comply with one or more of the financial covenants in Section 6 during the next succeeding financial reporting period. 

        "National City Account" is defined in Section 6.5(a). 

        "Obligations" are Borrower's obligation to pay when due any debts, principal, interest, Bank Expenses and other amounts Borrower owes Bank
now or later, whether under this Agreement, the Loan Documents, 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 Borrower assigned to Bank, and the performance of Borrower's duties under the Loan Documents. 

        "Operating Documents" are, for any Person, such Person's formation documents, as certified with the Secretary of State of such Person's
state of formation on a date that is no earlier than 30 days prior to the Effective Date, and, its bylaws in current form, each of the foregoing with all current amendments or modifications
thereto. 

        "Origination Fee" is defined in Section 2.4. 

        "Payment/Advance Form" is that certain form attached hereto as Exhibit B. 

        "Perfection Certificate" is defined in Section 5.1. 

        "Permitted Indebtedness" is: 

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

21

 

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

        (c)    Subordinated
Debt; 

        (d)    Indebtedness
secured by Permitted Liens; and 

        (e)    extensions,
refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness (a) through (d) 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
shown on the Perfection Certificate and existing on the Effective Date; and 

        (b)    Cash
Equivalents. 

        "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 not delinquent or being contested in good faith and for which Borrower maintains
adequate reserves on Borrower's Books, if they have no priority over any of Bank's Liens; 

        (c)    leases
or subleases of real property granted in the ordinary course of business, and leases, subleases, non-exclusive licenses or sublicenses of property
(other than real property or intellectual property) granted in the ordinary course of Borrower's business, if the leases, subleases, licenses and
sublicenses do not prohibit granting Bank a security interest; 

        (d)    purchase
money Liens and capital leases on Equipment acquired or held by Borrower incurred for financing the acquisition of the Equipment securing no more than $500,000
in the aggregate amount outstanding; and 

        (e)    Liens
incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (d),  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. 

        "Quick Assets" is, on any date, Borrower's unrestricted cash and eighty percent (80%) of net billed accounts receivable determined
according to GAAP. 

        "Registered Organization" is any "registered organization" as defined in the Code with such additions to such term as may hereafter be
made 

        "Responsible Officer" is any of the Chief Executive Officer, President, Chief Financial Officer and Controller of Borrower. 

        "Revolving Line" is an Advance or Advances in an aggregate amount of up to Five Million Dollars ($5,000,000.00) outstanding at any time.
Notwithstanding the foregoing, the Initial Advance will be used to pay off in full and terminate the Existing Equipment Loan. 

        "Revolving Line Maturity Date" is March 31, 2009. 

22

 

        "Securities Account" is any "securities account" as defined in the Code with such additions to such term as may hereafter be made. 

        "Settlement Date" is defined in Section 2.1.3. 

        "Subordinated Debt" is indebtedness incurred by Borrower subordinated to all of 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, with respect to any Person, any Person of which more than 50% of the voting stock or other equity interests (in the case
of Persons other than corporations) is owned or controlled, directly or indirectly, by such Person or one or more Affiliates of such Person. 

        "Total Liabilities" is on any day, obligations that should, under GAAP, be classified as liabilities on Borrower's consolidated balance
sheet, including all Indebtedness, and current portion of Subordinated Debt permitted by Bank to be paid by Borrower, but excluding all other Subordinated Debt. 

        "Transfer" is defined in Section 7.1. 

        "Unused Revolving Line Facility Fee" is defined in Section 2.4(c). 

[Signature page follows.]

23

 

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

	BORROWER:
	

EXACTTARGET, INC.
	

By	
 	

/s/ Traci M. Dolan
	Name:	 	Traci M. Dolan
	Title:	 	Chief Financial Officer, Executive V.P. Finance &

Administration and Secretary
	

BANK:
	

SILICON VALLEY BANK
	

By	
 	

/s/ Kristina Oliver
	Name:	 	Kristina Oliver
	Title:	 	Relationship Manager

24

 
EXHIBIT A  

        The Collateral consists of all of Borrower's right, title and interest in and to the following personal property: 

        All
present and future accounts, accounts receivable, payment intangibles or other rights to payment arising out of or relating to the sale of the Borrower's goods or rendition of
services (including, without limitation, those evidenced by instruments or chattel paper) (collectively, the "Accounts"), and (1) all goods which
gave rise to an Account which is returned by the purchaser and all other returned or repossessed goods relating to the Accounts, and (2) all rights as an unpaid vendor, and (3) to the
extent necessary in order to enable Bank to collect any Accounts, all of the Borrower's contract rights, documents, and general intangibles, and (4) all books and records (including, without
limitation, credit files, computer programs, print outs, and other computer materials and records) relating to the foregoing, and (5) all proceeds and insurance proceeds of the foregoing, and
(6) all warranty claims and other claims and rights relating to the foregoing and (7) all lockbox or cash collateral deposit accounts at Bank or other financial institutions which are
used by the Borrower (or its account debtors) to remit the cash proceeds of the Accounts; and 

        All
cash, cash equivalents, deposit and investment accounts, securities and financial assets, and all Borrower's Books relating to the foregoing, and any and all claims, rights and
interests in any of the foregoing 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. 

QuickLinks

EXHIBIT 10.11

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