Document:

Exhibit 10.2

 

Form
of Amendment to Employment Agreement

 

This Amendment to Employment Agreement (this
"Amendment") dated as of July 31, 2013 ("Effective Date"), by and between PharmAthene, Inc.,
a Delaware corporation ("Company") and Linda Chang ("Executive"). Executive and Company are sometimes
each referred to in this Amendment as a "Party" and collectively as the "Parties."

 

Background

 

WHEREAS, the Parties are parties to that certain
Employment Agreement dated as of February 12, 2012 (the "Employment Agreement");

 

WHEREAS, on May 9, 2012 the Board of Directors
of the Company ("Board") adopted a severance plan to provide certain benefits to our Chief Executive Officer and
certain other executive officers of the Company that applies in the event of a change of control of the Company (the "Severance
Plan");

 

WHEREAS, the Company has entered into an Agreement
and Plan of Merger (as such agreement may be amended from time to time, the "Merger Agreement") among the Company
and Theraclone Sciences, Inc. as of the date hereof pursuant to which Theraclone Sciences, Inc. will become a wholly-owned subsidiary
of the Company (the "Merger");

 

WHEREAS, the Board, pursuant to the authority
reserved in the Severance Plan, is terminating the Severance Plan effective upon the consummation of the Merger; and

 

WHEREAS, the Parties desire to clarify and
memorialize the severance benefits, if any, to which the Executive would be entitled upon termination of her employment following
the consummation of the Merger.

 

NOW, THEREFORE, in consideration of
the mutual promises, covenants and conditions set forth herein, the Parties, intending to be legally bound, hereby agree as follows:

 

1.                 
The Parties agree that Section 9 of the Employment Agreement is hereby amended effective immediately prior to the
consummation of the Merger substnatially in accordance with the terms of the Merger Agreement while Executive is employed by the
Company to add the following new subsections e, f and g to the end thereof to read as follows:

 

    	 

    	 

    

  

e.                 Termination Without Cause or Termination for Good
Reason Following a Change in Control. Following a Change in Control (as defined below), if requested by the Company’s
successor or acquirer, as applicable, the Executive shall negotiate a new employment agreement in form and substance acceptable
to the Executive in all respects in her sole discretion. In the event the Company and the Executive fail to enter into such new
employment agreement within ninety (90) days of the Change in Control and during the Employment Period a Termination Without Cause
or a termination of the Executive’s employment for Good Reason occurs on or within twelve months of the consummation of the
Change in Control, the Executive shall not have any further rights or claims against the Company under this Agreement except the
right to receive (i) the payments and other rights provided for in Section 9a hereof and a lump sum cash payment for Executive’s
unused vacation at the rate of her base salary in effect immediately prior to such termination (but without giving effect to any
reduction in base salary that triggered a Good Reason termination), (ii) a lump sum payment equal to the amount of the Executive’s
base salary as in effect immediately prior to such termination (but without giving effect to any reduction in base salary that
triggered a Good Reason termination) for a period of eighteen (18) months, payable within 60 days of the effective date of such
termination (subject to Section 24), (iii) a lump sum payment equal to one and one half (1.5) times the Executive’s Target
Bonus Amount as in effect immediately prior to such termination and a payment for the prior fiscal year to the extent that bonuses
have not previously been paid on or before the date of termination (and in the case of the bonus in respect of the prior fiscal
year to the extent such bonus has been earned), payable within 60 days of the date of termination (subject to Section 24), (iv)
all equity-based awards held by Executive will be deemed fully vested as of the date of termination and each outstanding stock
option shall remain exercisable for three years following the date of Executive ceases to perform services for the Company in any
capacity (i.e., as an employee, a non-employee director or consultant), but not later than the earlier of ten years after such
option was granted or its original expiration date, (v) to the extent that the Executive has elected and is continuing to receive
COBRA continuation coverage under the Company’s group health plan in accordance with Section 4980B of the Code, the Company
shall reduce the COBRA premiums that the Executive is required to pay following her termination of employment to that amount that
the Company charges its active employees for the same level of group health coverage during the 18 month period following the Executive’s
termination, and (vi) a lump sum payment equal to the costs associated with 18 months use of an automobile, payable within 60 days
of the date of termination (subject to Section 24). Notwithstanding the foregoing, the severance benefits described in clause (ii),
(iii), (iv), and (vi) above and the COBRA premium subsidy described in clause (iv) above shall be provided in consideration for,
and expressly conditioned upon, the Executive’s execution of a binding General Release (which shall be provided on or about
the date of termination) containing terms reasonably satisfactory to the Company within 45 days of the Executive’s termination
of employment. Subject to Section 24, if the Executive timely executes such General Release and the applicable revocation period
with respect to such General Release lapses, the Executive will receive the severance benefits described in clauses (ii), (iii)
and (vi) above shall be paid 60 days after the Executive's termination of employment. In addition, to the extent that the Executive
paid the full premium for her COBRA coverage during the first 60 days after her termination of employment, the Company will reimburse
the Executive for the COBRA premiums subsidy paid by the Executive during the first 60 days after her termination of employment
at the same time that the Executive receives the payments required under clauses (ii), (iii) and (vi) above. If the Executive does
not timely execute the General Release or if the Executive revokes the General Release within the applicable revocation period
prescribed by law, the Executive shall not be entitled to receive any severance payments and the Executive will be required to
pay 102% of the applicable premium (as defined in Code Section 4980B) for any COBRA continuation coverage elected by the Executive.

 

    	2

    	 

    

  

For purposes of this Section 9e, Change
of Control shall mean as used herein, “Change in Control” means: (i) an acquisition subsequent to the date hereof by
any person, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”)), of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange
Act) of 30% or more of either (A) the then outstanding shares of common stock of the Company (“Common Stock”)
or (B) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election
of directors; excluding, however, the following: (1) any acquisition directly from the Company, other than an acquisition by virtue
of the exercise of a conversion privilege unless the security being so converted was itself acquired directly from the Company,
(2) any acquisition by the Company and (3) any acquisition by an employee benefit plan (or related trust) sponsored or maintained
by the Company; (ii) a merger, consolidation, reorganization or similar corporate transaction, whether or not the Company is the
surviving corporation in such transaction, in which outstanding shares of Common Stock are converted into (A) shares of stock of
another company, other than a conversion into shares of voting common stock of the successor corporation (or a holding company
thereof) representing 80% of the voting power of all capital stock thereof outstanding immediately after the merger or consolidation
or (B) other securities (of either the Company or another company) or cash or other property; (iii) the sale or other disposition
of all or substantially all of the assets of the Company; provided, however, that any such transaction will not constitute a Change
of Control for this Section 9e unless it also constitutes a change in ownership of the Company within the meaning of Treasury Regulation
Section 1.409A-3(i)(5)(v), a change in effective control of the Company within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(vi)(A)(1),
or a change in ownership of a substantial portion of the Company's assets within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(vii).

 

f.           Rabbi Trust. Immediately upon consummation of
a Change of Control (as defined in Section 9e above) during the Employment Period, the Company shall establish an irrevocable grantor
trust (a "rabbi trust"), appoint a federally or state chartered bank or trust company as the trustee for such rabbi trust
and shall contribute the sum of (i) 18 (eighteen) months of base salary as in effect immediately prior to such Change of Control
and (ii) one and one half (1.5) times the Executive's Target Bonus Amount as in effect immediately prior to such Change of Control
to such rabbi trust. The assets of such rabbi trust shall be used solely to make the severance payments to the Executive as required
under this Agreement (or to reimburse the Company for severance payments it makes to the Executive); or to satisfy the claims of
the Company’s unsecured general creditors in the event of the Company’s insolvency or bankruptcy. The rabbi trust may
be terminated and any remaining assets therein shall revert to the Company after the Executive has received all of the severance
payments to which she is entitled hereunder. Notwithstanding the foregoing, the provisions of this Section 9f shall not apply if
the funding of the rabbi trust would subject the Executive to acceleration of taxation and tax penalties under Section 409A(b)
of the Code.

 

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g.            Excess Parachute Payments. Anything in this
Agreement to the contrary notwithstanding, in the event it shall be determined that any payment, award, benefit or distribution
(including any acceleration) by the Company or any entity which effectuates a transaction described in Section 280G(b)(2)(A)(i)
of the Code to or for the benefit of the Executive (whether pursuant to the terms of this Agreement or otherwise, but determined
before application of any reductions required pursuant to this Section 9g) (a “Payment”) would be subject to
the excise tax imposed by Section 4999 of the Code or any interest or penalties are incurred with respect to such excise tax by
the Executive (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the
“Excise Tax”), the Company will automatically reduce such Payments to the extent, but only to the extent, necessary
so that no portion of the remaining Payments will be subject to the Excise Tax, unless the amount of such Payments that the Executive
would retain after payment of the Excise Tax and all applicable Federal, state and local income taxes without such reduction would
exceed the amount of such Payments that the Executive would retain after payment of all applicable Federal, state and local taxes
after applying such reduction. Unless otherwise elected by the Executive, to the extent permitted under Code Section 409A, such
reduction shall first be applied to any severance payments payable to the Executive under this Agreement, then to the accelerated
vesting on any equity awards, starting with stock options reversing accelerated vesting of those options with the smallest spread
between fair market value and exercise price first and after reversing the accelerated vesting of all stock options, thereafter
reversing accelerated vesting of restricted stock on a pro rata basis.

 

All determinations required to be made
under this Section 9g, including the assumptions to be utilized in arriving at such determination, shall be made by the Company’s
independent auditors or such other certified public accounting firm of national standing reasonably acceptable to the Executive
as may be designated by the Company (the “Accounting Firm”) which shall provide detailed supporting calculations
both to the Company and the Executive within 15 business days of the receipt of notice from the Executive that there has been a
Payment, or such earlier time as is requested by either the Company or the Executive. All fees and expenses of the Accounting Firm
shall be borne solely by the Company. If the Accounting Firm determines that no Excise Tax is payable by the Executive, it shall
furnish the Executive with a written opinion to such effect. Any determination by the Accounting Firm shall be binding upon the
Company and the Executive.

 

2.              The Parties agree that Section 24 of the Employment Agreement is hereby amended to read as follows:

 

24.         409A Compliance. If the Executive is a “specified
employee” (as determined in accordance with Treasury Regulation Section 1.409A-1(i) or any written Company policy implementing
such regulation) at the time of her termination of employment, then her severance payments that are otherwise payable during the
first six month period following the Executive’s termination of employment (to the extent that such severance payments constitute
nonqualified deferred compensation within the meaning of Section 409A of the Code and the regulations promulgated thereunder) shall
be deferred until the date that is six months after the Executive’s termination of employment (or, if earlier, upon her death).
Each salary continuation payment that is due under this Agreement shall be treated as a separate payment for purposes of Section
409A Code. This Agreement shall be interpreted to comply, or otherwise be exempt from, with the requirements of Code Section 409A.
Accordingly, references to termination of employment hereunder shall be interpreted to mean “separation from service”
as defined in regulations under Section 409A of the Code. All expenses under this Agreement that are reimbursable in accordance
with Company policy shall be made as soon as practicable after Executive’s submission of such expenses in accordance with
the Company’s policy, but in no event later than the last day of the taxable year following the taxable year in which the
expense was incurred.

 

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3.              The Parties agree that the grant agreement or other instruments evidencing each of Executive’s outstanding
equity awards shall be deemed amended by this Amendment to the extent necessary to reflect the terms hereof effective immediately
prior to the consummation of the Merger substantially in accordance with the terms of the Merger Agreement while Executive is employed
by the Company.

 

[Remainder of page
intetionally left blank. Signature page follows.]

 

 

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IN
WITNESS WHEREOF, the Parties hereto have caused this Amendment to be duly executed as of the date first written above; provided,
however, that Paragraphs 1 and 3 of this Amendment shall become effective only if the Merger described in the Background
above is consummated subtantially in accordance with the terms of the Merger Agreement while the Executive is employed by the
Company.

 

	 	PHARMATHENE, INC.
	 	 	 
	 	 	
	 	Name:	Brian Markison
	 	Title:	Chairman, Compensation Committee
	 	 	 
	 	 	 
	 	 	 
	 	EXECUTIVE
	 	 	 
	 	 	
	 	Name:	Linda Chang

 

    	6AMENDMENT
TO LOAN AND SECURITY AGREEMENT

 

This AMENDMENT
to Loan and Security Agreement (this “Amendment”) is entered into this 31st day of October 2013,
by and between Silicon Valley Bank (“Bank”) and Research Solutions, Inc., a Nevada corporation and Reprints Desk, Inc.,
a Delaware corporation (jointly and severally, the “Borrower”).

 

Recitals

 

A.Bank and Borrower have
entered into that certain Loan and Security Agreement dated as of July 23, 2010 (as the same may from time to time be amended,
modified, supplemented or restated, the “Loan Agreement”).

 

B.Bank has
extended credit to Borrower for the purposes permitted in the Loan Agreement.

 

C.Borrower
has requested that Bank amend the Loan Agreement, as herein set forth, and Bank has agreed to do the same, but only to the extent,
in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below.

 

Agreement

 

Now,
Therefore, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy
of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

 

1.Definitions.
Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement.

 

2.Amendments
to Loan Agreement. 

 

2.1Modified Interest
Rates. Section 2.3(a) of the Loan Agreement is hereby amended in its entirety to read as follows:

 

(a)Advances. Subject
to Section 2.3(b), the principal amount outstanding under the Revolving Line shall accrue interest at a floating per annum rate
equal to (i) at all times when a Streamline Period is in effect, two and one-half percentage points (2.50%) above the Prime Rate
and (ii) at all times when a Streamline Period is not in effect, five and one-quarter percentage points (5.25%) above the Prime
Rate, which interest shall, in either case, be payable monthly in accordance with Section 2.3(f) below.

 

2.2Addition of
Minimum Interest. The following language is hereby added at the end of Section 2.3 as subclause (g) and shall read as follows:

 

 

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(g)Minimum
Interest. In the event the aggregate amount of interest earned by Bank in any month (such period, the “Minimum
Interest Period,” which period shall begin on November 1, 2013 and continue with each month
thereafter until the earlier of the Revolving Line Maturity Date or the date this Agreement is terminated) is less than $1,000
(exclusive of any collateral monitoring fees, unused line fees, or any other fees and charges hereunder) (“Minimum
Interest”), Borrower shall pay to Bank,
upon demand by Bank, an amount equal to the (i) Minimum Interest minus (ii) the aggregate amount of all interest earned by
Bank (exclusive of any collateral monitoring fees, unused line fees, or any other fees and charges hereunder) in such Minimum Interest
Period. The amount of Minimum Interest charged shall be prorated for any partial Minimum Interest Period upon termination of this
Agreement.  Borrower shall not be entitled to any credit, rebate, or repayment of any Minimum Interest pursuant to this Section
2.3(g) notwithstanding any termination of this Agreement or the suspension or termination of Bank’s obligation to make loans
and advances hereunder. Bank may deduct amounts owing by Borrower under this Section 2.3(g) pursuant to the terms of Section 2.3(d).
Bank shall provide Borrower written notice of deductions made from the Designated Deposit Account pursuant to the terms of this
Section 2.3(g).

 

2.3Deletion of
Collateral Monitoring Fee. Effective as of November 1, 2013, Section 2.4(c) of the Loan Agreement is hereby amended in its
entirety to read as follows:

 

(c)Collateral Monitoring Fee. [Omitted].

 

2.4Modified
Tangible Net Worth Financial Covenant. Section 6.9(b) of the Loan Agreement is hereby amended
in its entirety to read as follows:

 

(b)Tangible Net Worth.
A Tangible Net Worth of at least the following:

 

For each
of the month ending September 30, 2013 an: $750,000 plus the dollar amount shall be increased
by (i) 50% of Net Income for the fiscal quarter ending September 30, 2013 and (ii) 50% of issuances of equity after August 1, 2013
and the principal amount of Subordinated Debt; and

 

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For the
month ending October 31, 2013 and each month ending thereafter: $500,000 plus, in each instance
above, the dollar amount shall be increased by (i) 50% of Net Income for the fiscal quarter ending December 31, 2013 and each fiscal
quarter ending thereafter and (ii) 50% of issuances of equity after October 1, 2013 and the principal amount of Subordinated Debt;
provided, however, the Tangible Net Worth shall be increased by 40% (instead of 50%) with respect to the amount of
proceeds received by Borrower from the exercise of the Inducement Warrants.

 

2.5Modified Early
Termination Provision. Section 12.1 of the Loan Agreement is hereby amended in its entirety to read as follows:

 

12.1Termination
Prior to Revolving Line Maturity Date. This Agreement may be terminated prior to the Revolving
Line Maturity Date by Borrowers, effective three (3) Business Days after written notice of termination is given to Bank. Notwithstanding
any such termination, Bank’s lien and security interest in the Collateral and all of Bank’s rights and remedies under
this Agreement shall continue until Borrowers fully satisfies their Obligations. If such termination is at any Borrower’s
election, Borrowers shall pay to Bank, in addition to the payment of any other expenses or fees then-owing, a termination fee in
an amount equal to the following: (i) two percent (2.0%) of the Maximum Dollar Amount if any such termination occurs on or before
October 31, 2014 and (ii) one percent (1.0%) of the Maximum Dollar Amount if any such termination arises after October 31, 2014,
provided that no termination fee shall be charged if the credit facility hereunder is replaced with a new facility from another
division of Bank.

 

2.6Added Definitions
Regarding Minimum Interest. The following definitions are hereby to Section 13.1 of the Loan Agreement, in alphabetical order,
and shall read as follows:

 

“Minimum Interest” is defined
in Section 2.3(g).

 

“Minimum Interest Period” is
defined in Section 2.3(g).

 

2.7Modified Permitted
Investments. The following subclause (l) is hereby added at the end of the definition of “Permitted Investments”
set forth in Section 13.1 of the Loan Agreement and shall read as follows:

 

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(l)From November 1, 2013
through March 31, 2014, an aggregate cash Investment (up to a maximum of $333,333) equal to one-third (33.33%) of the amount of
proceeds received by Research Solutions, Inc. from the exercise of Research Solutions, Inc. warrants held by investors which warrants
have an exercise price of $2.00 per share and an expiration date of on or before November 30, 2013 (the “Inducement Warrants”),
provided that no Event of Default has occurred and is continuing both before and after giving effect to each such cash Investment.

 

2.8Modified Definition
of Prime Rate. The definition of “Prime Rate” set forth in Section 13.1 of the Loan Agreement is hereby amended
to read as follows:

 

“Prime Rate”
is the greater of (i) three and one-quarter percent (3.25%) per annum or (ii) the rate of interest per annum from time to time
published in the money rates section of The Wall Street Journal or any successor publication thereto as the “prime rate”
then in effect; provided that if such rate of interest, as set forth from time to time in the money rates section of The Wall Street
Journal, becomes unavailable for any reason as determined by Bank, the “Prime Rate” shall mean the rate of interest
per annum announced by Bank as its prime rate in effect at its principal office in the State of California (such Bank announced
Prime Rate not being intended to be the lowest rate of interest charged by Bank in connection with extensions of credit to debtors).

 

2.9Modified Definition
of Revolving Line Maturity Date. The definition of “Revolving Line Maturity Date” set forth in Section 13.1 of
the Loan Agreement is hereby amended to read as follows:

 

“Revolving
Line Maturity Date” is October 31, 2015.

 

2.10Anniversary
Fee. Borrower hereby agrees that in addition to the fee set forth in Section 6 hereof, on October 31, 2014, Borrower shall
pay Bank a fully earned, non-refundable anniversary fee in the amount of $20,000.

 

2.11TAAG.
The Borrower acknowledges and agrees that its Subsidiary, TAAG, will not be a party to the Loan Agreement nor will TAAG’s
Accounts be included in the definition of Eligible Accounts. Bank will not, at this point in time, require Borrower to execute
a stock pledge agreement in favor of Bank with regard to Borrower’s equity interests in TAAG, nor will Bank, at this time,
require TAAG to execute such documents as Bank deems necessary in order for TAAG to be made a co-Borrower under the Loan Agreement.

 

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2.12Modified
Compliance Certificate. The form of Compliance Certificate, attached as Exhibit C to the Loan Agreement, is amended in its
entirety to read as set forth on Exhibit C attached hereto.

 

3.Limitation
of Amendments.

 

3.1The amendments
set forth in Section 2, above, are effective for the purposes set forth herein and shall be limited precisely as written
and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any
Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the future under or in
connection with any Loan Document.

 

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

 

4.Representations
and Warranties. To induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as follows:

 

4.1Immediately
after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate
and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to
an earlier date, in which case they are true and correct as of such date), and (b) no Event of Default has occurred and is
continuing;

 

4.2Borrower
has the power and due authority to execute and deliver this Amendment; and

 

4.3The organizational
documents of Borrower delivered to Bank on the Effective Date remain true, accurate and complete and have not been amended, supplemented
or restated and are and continue to be in full force and effect.

 

4.4The execution
and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended
by this Amendment, have been duly authorized;

 

4.5The execution
and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended
by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any
contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental
or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower;

 

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4.6The execution
and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended
by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or
registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on either Borrower,
except as already has been obtained or made; and

 

4.7This Amendment
has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance
with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium
or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.

 

5.Counterparts.
This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute
one and the same instrument.

 

6.Effectiveness.
This Amendment shall be deemed effective upon (a) the due execution and delivery to Bank of this Amendment by each party hereto
and (b) Borrower’s payment of an amendment fee in an amount equal to $20,000.

 

7.Governing
Law. This Amendment and the rights and obligations of the parties hereto shall be governed by and construed in accordance with
the laws of the State of California.

 

[Signature page follows.]

 

    	6

    	 

    

In
Witness Whereof, the parties hereto have caused this Amendment to
be duly executed and delivered as of the date first written above.

 

 

	BANK	BORROWER
	
         

        Silicon Valley Bank

         

         

        By: /s/ Kevin Fleishman

        Name:  Kevin Fleishman

        Title:  Vice President
	
         

        Research Solutions, Inc.

         

         

        By: /s/ Alan Urban

        Name:  Alan Urban

        Title:  CFO

         

	 	BORROWER
	
         

         
	
         

        Reprints Desk, Inc.

         

         

        By: /s/ Alan Urban

        Name:  Alan Urban

        Title:  CFO

 

 

    	7

    	 

    

 

EXHIBIT C

 

COMPLIANCE CERTIFICATE

 

 

	TO:	 	SILICON VALLEY BANK	 	Date:

FROM: RESEARCH SOLUTIONS, INC. on behalf of itself and the other
Borrowers

 

The undersigned authorized officer of RESEARCH
SOLUTIONS, INC. (“Borrower”) certifies that under the terms and conditions of the Loan and Security Agreement between
Borrowers and Bank (the “Agreement”):

(1) Borrowers are in complete compliance
for the period ending _______________ with all required covenants except as noted below; (2) there are no Events of Default;
(3) all representations and warranties in the Agreement are true and correct in all material respects on this date except
as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties
that already are qualified or modified by materiality in the text thereof; and provided, further that
those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material
respects as of such date; (4) Borrowers, and each of their Subsidiaries, has timely filed all required tax returns
and reports, and Borrowers have timely paid all foreign, federal, state and local taxes, assessments,
deposits and contributions owed by Borrowers except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement;
and (5) no Liens have been levied or claims made against any Borrower or any of its Subsidiaries relating to unpaid employee
payroll or benefits of which Borrowers have not previously provided written notification to Bank.

 

Attached are the required documents supporting
the certification. The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period
to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings may be
requested at any time or date of determination that Borrowers are not in compliance with any of the terms of the Agreement, and
that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not otherwise defined
herein shall have the meanings given them in the Agreement.

 

	Please indicate compliance status by circling Yes/No under “Complies” column.
	 
	Reporting Covenant	Required	Complies
	 	 	 
	Monthly financial statements with 

Compliance Certificate	Monthly within 30 days	Yes   No
	Annual projections	FYE within 30 days	Yes   No
	10-Q, 10-K and 8-K	Within 5 days after filing with SEC	Yes   No
	A/R & A/P Agings	Monthly within 20 days	Yes   No
	Transaction Report	
        Weekly and with each Advance request when not on Streamline,

        Monthly within 20 days and with each

        Advance request when on Streamline
	Yes   No
	 
	
        The following Intellectual Property was registered (or a registration
        application submitted) after the Effective Date

        (if no registrations, state “None”)

        ___________________________________________________________________________________________

        ___________________________________________________________________________________________

         

 

    	 

    	 

    

  

	Financial Covenant	Required	Actual	Complies
	 	 	 	 
	Maintain on a Monthly Basis:	 	 	 
	Minimum Quick Ratio	0.80:1.0	   _____:1.0	Yes   No
	Minimum Tangible Net Worth	
        For the month ending 9/30/13: $750,000*

         

        For month

        ending

        10/31/13 and each month thereafter:

        $500,000**
	$_________	Yes   No
	 	 	 	 
	
        *plus (i) fifty percent (50%) of quarterly Net Income (for
        the quarter ending September 30, 2013) and (ii) fifty percent (50%) of issuances of equity and Subordinated Debt after August 1,
        2013.

         

        **plus (i) fifty percent (50%) of quarterly Net Income (starting
        with quarter ending December 31, 2013) and (ii) fifty 

        percent (50%) of issuances of equity and Subordinated Debt
        after October 1, 2013 (40% of amount of proceeds received 

        from the Inducement Warrants).

         

*

	Streamline Period	Applies
	 	 	 
	Net Cash at least $800,000 at all times	Streamline Period in Effect	Yes   No
	Net Cash less than $800,000 at any time	Streamline Period not in Effect	Yes   No

 

The following financial covenant analyses and information set
forth in Schedule 1 attached hereto are true and accurate as of the date of this Certificate.

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

 

 

 

 

 

 

 

	
        RESEARCH SOLUTIONS, INC. on behalf of itself and the other Borrowers

         

         

        By:                                                  

        Name:                                             

        Title:                                                     

         
	
        BANK USE ONLY

         

        Received by: _____________________

        authorized
        signer

        Date: ___________________________  

         

        Verified: ________________________

        authorized
        signer

        Date: __________________________

         

        Compliance Status:Yes No

 

    	 

    	 

    

 

Schedule 1 to Compliance Certificate

 

Financial Covenants of Borrowers

 

 

In the event of a conflict between this Schedule and the Loan
Agreement, the terms of the Loan Agreement shall govern.

Dated:____________________

 

I.Quick Ratio (Section 6.7(a))

Required:0.80:1.00

 

Actual:

 

	A.	 	
Aggregate
    value of the unrestricted cash of Borrowers	 	$	 	 
	 	 	 	 	 	 	 
	B.	 	Aggregate value of the net billed accounts receivable
    of Borrowers	 	$	 	 
	 	 	 	 	 	 	 
	C.	 	Quick Assets (the sum of lines A and B)	 	$	 	 
	 	 	 	 	 	 	 
	D.	 	Aggregate value of Obligations to Bank	 	$	 	 
	 	 	 	 	 	 	 
	E.	 	Aggregate value of liabilities that should, under
    GAAP, be classified as liabilities on Borrowers’ consolidated balance sheet, including all Indebtedness, and not otherwise
    reflected in line D above that matures within one (1) year	 	$	 	 
	 	 	 	 	 	 	 
	F.	 	Current Liabilities (the sum of lines D and E)	 	$	 	 
	 	 	 	 	 	 	 
	G.	 	Quick Ratio (line C divided
    by line F)	 	 	 	 

 

Is line G equal to or greater than 0.80:1:00?

 

	_________  No, not in compliance	 	_______ Yes, in compliance

 

 

 

    	 

    	 

    

II.Tangible Net Worth (Section 6.7(b))

 

Required:(a)$750,000 for September
2013 plus the foregoing increasing by (i) fifty percent (50%) of quarterly Net Income (for the quarter ending September 30, 2013)
plus (ii) fifty percent (50%) of issuances of equity and Subordinated Debt after August 1, 2013; and

 

(b)$500,000 for October
2013 and each month ending thereafter plus each of the foregoing increasing by (i) fifty percent (50%) of quarterly Net Income
(starting with the quarter ending December 31, 2013) plus (ii) fifty percent (50%) of issuances of equity and Subordinated Debt
after October 1, 2013; provided, however, such percentage shall be forty percent (40%) of the amount of proceeds received with
respect to the Inducement Warrants.

 

Actual:

 

	A.	 	Aggregate value of total assets of Borrower and its Subsidiaries	 	$	 	 
	 	 	 	 	 	 	 
	B.	 	Aggregate value of goodwill of Borrower and its Subsidiaries	 	$	 	 
	 	 	 	 	 	 	 
	C.	 	Aggregate value of intangible assets of Borrower and its Subsidiaries	 	$	 	 
	 	 	 	 	 	 	 
	D.	 	Aggregate value of liabilities that should, under GAAP, be classified as liabilities on Borrower’s consolidated balance sheet, including all Indebtedness	 	$	 	 
	 	 	 	 	 	 	 
	E.	 	Aggregate value of Indebtedness of Borrower subordinated to Borrower’s Indebtedness to Bank	 	$	 	 
	 	 	 	 	 	 	 
	F.	 	Tangible Net Worth (line A minus line B minus line C minus line D plus line E)	 	$	 	 

 

 

Is line F equal to or greater than the applicable Required Amount?

 

	_________  No, not in compliance	 	_______ Yes, in compliance

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