Document:

Loan and Security Agreement

 Exhibit 10.11 
 LOAN AND SECURITY AGREEMENT 
 THIS LOAN AND
SECURITY AGREEMENT (this “Agreement”) dated as of the Effective Date between (i) SILICON VALLEY BANK, a California corporation with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054
and with a loan production office located at One Newton Executive Park, Suite 200, 2221 Washington Street, Newton, Massachusetts 02462 (“Bank”), and (ii) MEDIDATA SOLUTIONS, INC., a Delaware corporation with offices
located at 79 Fifth Avenue, 8th Floor, New York, New York 10003 and MEDIDATA FT, INC. (formerly known as Fast Track Systems, Inc.), a
California corporation with offices located at 20 Ash Street, Suite 330, Conshohocken, Pennsylvania 19428 (individually and collectively, the “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, jointly and severally, 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 and to deduction of Reserves, Bank will make Advances to Borrower up to 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 and subject to deduction of Reserves, 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 Ten Million Dollars ($10,000,000), 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 or after the occurrence and during the continuance of an Event of Default, there are any outstanding Letters of Credit, then on such
date Borrower shall provide to Bank cash collateral in an amount equal to one hundred five percent (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 reasonably acceptable to Bank 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; provided that, any amounts Bank pays on behalf of
Borrower for any Letters of Credit will be treated as Advances under the Revolving Line and will accrue interest at the interest rate applicable to Advances. 
 (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, 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 One Million Dollars ($1,000,000) (such maximum amount, the “FX Reserve”). The aggregate amount of FX Forward Contracts at any one time plus Credit Extensions made pursuant to Sections 2.1.2 and 2.1.4 may
not exceed ten (10) times the amount of the FX Reserve. 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. Borrower may use up to Ten Million Dollars ($10,000,000), inclusive of Credit Extensions relating to
Sections 2.1.2 and 2.1.3 (the “Cash Management Services Sublimit”) 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 involving extensions of credit (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. 
 2.1.5 Term Loan. 
 (a)
Availability. Bank shall make one (1) term loan available to Borrower in an amount up to the Term Loan Amount on the Effective Date subject to the satisfaction of the terms and conditions of this Agreement. 
 (b) Repayments. (i) In addition to the monthly payments of interest, as set forth in Section 2.3(a)(ii) below, beginning with the fiscal
quarter of the Borrower ending March 31, 2009, Borrower shall repay the outstanding principal amount of the Term Loan in quarterly installments in an amount equal to two and one-half percent (2.50%) of the outstanding principal amount of
the Term Loan (Three Hundred Seventy Five Thousand Dollars ($375,000) (the “Term Loan Payment”) and continuing on the last day of each fiscal quarter thereafter. In addition, beginning on April 1, 2010 for the previous fiscal
year and on April 1 of each fiscal year thereafter, the Excess Cash Flow Recapture Amount, calculated for such prior fiscal year, shall be applied to reduce the outstanding principal amount of the Term Loan, in inverse order of maturity of any
Term Loan Payment. Borrower’s final Term Loan Payment, due on the Term Loan Maturity Date, shall include all outstanding principal and accrued and unpaid interest under the Term Loan. 
 (ii) In the event Borrower fails to comply with the Fixed Charge Coverage Ratio covenant contained in Section 6.9(d) hereof (without giving effect
to Additional Cash Proceeds) (A) on December 31, 2009, the outstanding amount of the Term Loan and the Revolving Line shall be limited to the Borrowing Base in effect through March 31, 2010, and through March 31, 2010 all
outstanding amounts of the Term Loan and the 

  

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Revolving Line (in the aggregate) in excess thereof shall be immediately due and payable in immediately available funds; and (B) on March 31, 2010,
provided the Borrower failed to comply with the Fixed Charge Coverage Ratio on December 31, 2009, the outstanding amount of the Term Loan and the Revolving Line shall be limited to the Borrowing Base in effect at all times and thereafter all
outstanding amounts of the Term Loan and the Revolving Line (in the aggregate) in excess thereof shall be immediately due and payable in immediately available funds. Any amount of the Term Loan so repaid under either clause (A) or clause
(B) above may not be reborrowed. 
 2.2 Overadvances. 
 (a) If, at any time prior to December 31, 2009, (i) the sum of (a) the outstanding amount of any Advances (including any amounts used for
Cash Management Services) plus (b) the face amount of any outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve, plus (c) the FX Reserve plus (d) the
outstanding amount of the Term Loan exceeds eighty percent (80%) of Borrower’s Consolidated T3M Revenue or (ii) the outstanding amount of any Advances (including any amounts used for Cash Management Services) plus
(b) the face amount of any outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve), plus (c) the FX Reserve exceeds the Revolving Line (such excess amount being a
“Section 2.2(a) Overadvance”), Borrower shall within one Business Day of notice thereof pay to Bank in cash such Section 2.2(a) Overadvance. 
 (b) Beginning on December 31, 2009 and thereafter, in the event Borrower is in compliance with the Fixed Charge Coverage Ratio as of December 31, 2009 (without giving effect to any Additional Cash Proceeds),
if at any time the sum of (a) the outstanding amount of any Advances (including any amounts used for Cash Management Services) plus (b) the face amount of any outstanding Letters of Credit (including drawn but unreimbursed Letters of
Credit and any Letter of Credit Reserve, plus (c) the FX Reserve exceeds the lesser of either the Revolving Line or the Borrowing Base (such excess amount being a “Section 2.2(b) Overadvance”), Borrower shall within one
Business Day of notice thereof pay to Bank in cash such Section 2.2(b) Overadvance. 
 (c) Beginning on December 31, 2009 and
thereafter, in the event Borrower is not in compliance with the Fixed Charge Coverage Ratio as of December 31, 2009 (without giving effect to any Additional Cash Proceeds), if (i) at any time the sum of (a) the outstanding amount of
any Advances (including any amounts used for Cash Management Services) plus (b) the face amount of any outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve, plus
(c) the FX Reserve plus (d) the outstanding amount of the Term Loan exceeds the Borrowing Base or (ii) the outstanding amount of any Advances (including any amounts used for Cash Management Services) plus
(b) the face amount of any outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve, plus (c) the FX Reserve exceeds the Revolving Line (such excess amount being a
“Section 2.2(c) Overadvance”; and collectively with the Section 2.2(a) Overadvance and the Section 2.2(b) Overadvance, the “Overadvances” and each, individually, an “Overadvance”),
Borrower shall within one Business Day of notice thereof pay to Bank in cash such Section 2.2(c) Overadvance; provided, however, in the event Borrower is in compliance with the Fixed Charge Coverage Ratio (without giving effect to
any Additional Cash Proceeds) as of March 31, 2010, then beginning on April 1, 2010 and thereafter, the provisions of Section 2.2(b) shall apply with respect to any Overadvances. 
 (d) Without limiting Borrower’s obligation to repay Bank any amount of any Overadvance, Borrower agrees to pay Bank interest on the outstanding
amount of any Overadvance, not paid when due, at the Default Rate. 
 2.3 Payment of Interest on the Credit Extensions. 

 (a) Interest Rate 
 (i) Advances. Subject to Section 2.3(b), the principal amount outstanding under the Revolving Line shall accrue interest at a floating per annum rate equal to the aggregate of the Prime Rate plus
(i) for the period beginning on the Effective Date through and including March 31, 2009, two and one-half percent (2.50%) and (ii) for the period beginning April 1, 2009 through and including the Revolving Line Maturity
Date, two and one-quarter percent (2.25%); provided, however, that if the Borrower meets the Fixed Charge Coverage Ratio described in Section 6.9 hereof on December 31, 2009 or March 31, 2010, the principal amount
outstanding under the Revolving Line shall thereafter accrue interest at a floating per annum rate equal to the aggregate of the Prime Rate plus one and one-half percent (1.50%). In each case interest shall be payable monthly. 
  

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 (ii) Term Loan. Subject to Section 2.3(b), the principal amount outstanding
under the Term Loan shall accrue interest at a floating per annum rate equal to the aggregate of the Prime Rate plus (i) for the period beginning on the Effective Date through and including March 31, 2009, two and one-half percent
(2.50%) and (ii) for the period beginning April 1, 2009 through and including the Term Loan Maturity Date, two and one-quarter percent (2.25%); provided, however, that if the Borrower meets the Fixed Charge Coverage
Ratio (without giving effect to any Additional Cash Proceeds) described in Section 6.9 hereof on December 31, 2009 or on March 31, 2010, the principal amount outstanding under the Term Loan shall thereafter accrue interest at a
floating per annum rate equal to the aggregate of the Prime Rate plus one and one-half percent (1.50%). In each case interest shall be payable monthly. 
 (b) Default Rate. Immediately upon the occurrence and during the continuance of an Event of Default, Obligations shall bear interest at a rate per annum which is three percentage points (3.00%) 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 any other amounts Borrower owes Bank when due. These debits shall not constitute a set-off. 
 (f) Payment; Interest
Computation; Float Charge. Interest is payable monthly on the last calendar day of each month. In computing interest on the Obligations, all Payments received after 12:00 p.m. Pacific time on any day shall be deemed received on the next Business
Day. Bank shall not be required to credit Borrower’s account for the amount of any item of payment which is unsatisfactory to Bank in its good faith business judgment, and Bank may charge Borrower’s Designated Deposit Account for the
amount of any item of payment which is returned to Bank unpaid. 
 2.4 Fees. Borrower shall pay to Bank: 
 (a) Commitment Fee. A fully earned, non-refundable commitment fee of Five Hundred Thousand Dollars ($500,000), on the Effective Date; 

(b) Letter of Credit Fee. Bank’s customary fees and expenses for the issuance or renewal of Letters of Credit, upon the issuance or
renewal of such Letter of Credit by Bank; 
 (c) Termination Fee. Subject to the terms of Section 12.1, a termination fee;

 (d) Unused Revolving Line Facility Fee. A fee (the “Unused Revolving Line Facility Fee”), which fee shall be paid
quarterly, in arrears, on the last day of each quarter, in an amount equal to one-half of one percent (0.50%) per annum of the average unused portion of the Revolving Line, as determined by Bank. 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 within Agreement, or suspension or termination of Bank’s obligation to make loans and advances
hereunder; and 
 (e) Bank Expenses. All Bank Expenses (including reasonable attorneys’ fees and expenses for documentation and
negotiation of this Agreement) incurred through and after the Effective Date, when due. 
  

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	 	3	CONDITIONS OF LOANS 

 3.1 Conditions
Precedent to Initial Credit Extension. Bank’s obligation to make the initial Credit Extension is subject to the condition precedent that Bank shall have received, in form and substance satisfactory to Bank, such documents, and completion of
such other matters, as Bank may reasonably deem necessary or appropriate, including, without limitation: 
 (a) Borrower shall have delivered
duly executed original signatures to the Loan Documents to which it is a party; 
 (b) Borrower shall have delivered duly executed original
signatures to the Control Agreements; 
 (c) Borrower shall have delivered its Operating Documents and a good standing certificate of
Borrower certified by the Secretary of State of the applicable state of incorporation of Borrower, dated as of a date no earlier than thirty (30) days prior to the Effective Date; 
 (d) Borrower shall have delivered certified copies of the completed Borrowing Resolutions for Borrower; 
 (e) duly executed payoff letter from Stonehenge Capital Fund New York, LLC (“Prior Lender”), evidencing repayment in full of all
obligations owed to Prior Lender; 
 (f) evidence that (i) the Liens securing Indebtedness owed by Borrower to Prior Lender will be
terminated and (ii) the documents and/or filings evidencing the perfection of such Liens, including without limitation any financing statements and/or control agreements, have or will, concurrently with the initial Credit Extension, be
terminated; 
 (g) 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 UCC 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; 
 (h) Borrower shall have delivered the Perfection Certificates executed by Borrower; 
 (i) Borrower shall have delivered a landlord’s consent executed by each landlord of
Borrower’s locations in Houston, Texas and 79 Fifth Avenue, 8th Floor, New York, New York 10003 in favor of Bank, and shall use commercially
reasonable efforts to obtain a landlord’s consent within thirty (30) days of the Effective Date from each landlord of Borrower’s locations in 315 Park Avenue south, 18th Floor, New York New York 10010 and Conshohocken, Pennsylvania; 
 (j)
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; 
 (k) the completion of the Initial Audit with results satisfactory to Bank in its sole and absolute discretion; 
 (l) evidence satisfactory to the Bank that, as of the most recently-ended fiscal quarter of the Borrower prior to the Effective Date, Borrower had consolidated EBITDA, measured on a trailing twelve-month basis, of not less than Four Million
Dollars ($4,000,000); 
 (m) Borrower shall have delivered evidence satisfactory to Bank that the insurance policies required by
Section 6.7 hereof are in full force and effect, together with appropriate evidence showing loss payable and/or additional insured clauses or endorsements in favor of Bank; and 
 (n) 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) timely receipt of an executed Transaction Report; 
  

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 (b) the representations and warranties in Section 5 shall be true in all material respects on the
date of the Transaction Report and on the Funding Date of each Credit Extension; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by
materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, and no Default or
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) there has not occurred any Material Adverse Change since date of the financial statements delivered to Bank as of December 31, 2007. 

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. 
 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, 2.1.3 or 2.1.4), Borrower shall notify Bank (which notice shall be irrevocable) by electronic mail, facsimile, or telephone by 12:00 p.m. Pacific time on the Funding Date of
the Advance. Together with such notification, Borrower must promptly deliver to Bank by electronic mail or facsimile a completed Transaction Report executed by a Responsible Officer or his or her designee. Bank shall credit Advances to the
Designated Deposit Account. Bank may make Advances under this Agreement based on instructions from a Responsible Officer or his or her designee or without instructions if the Advances are necessary to meet Obligations which have become due. Bank may
rely on any telephone notice given by a person whom Bank believes is a Responsible Officer or designee. 
  

	 	4	CREATION OF SECURITY INTEREST 

 4.1 Grant
of Security Interest. 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, all right, title and interest of Borrower in and to 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 Borrower shall acquire a commercial tort claim, Borrower shall promptly
notify Bank in a writing signed by Borrower of the general details thereof and grant to Bank in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance
reasonably satisfactory to Bank. 
 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. Without limiting the foregoing, Borrower hereby authorizes Bank to file financing statements which describe the collateral as “all assets” and/or “all personal property” of
Borrower or words of similar import. 
  

	 	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 

  

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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
certificate substantially in the form provided by Bank, signed by Medidata Solutions, Inc. on behalf of Borrower, entitled “Perfection Certificate”. Borrower represents and warrants to Bank that (a) Borrower’s exact legal name is
that indicated on the Perfection Certificate and on the signature page hereof; (b) Borrower is an organization of the type and is organized in the jurisdiction set forth in the Perfection Certificate; (c) the Perfection Certificate
accurately sets forth Borrower’s organizational identification number or accurately states that Borrower has none; (d) the Perfection Certificate accurately sets forth Borrower’s place of business, or, if more than one, its chief
executive office as well as Borrower’s mailing address (if different than its chief executive office); (e) Borrower (and each of its predecessors) has not, in the past five (5) years, changed its jurisdiction of formation,
organizational structure or type, or any organizational number assigned by its jurisdiction; and (f) all other information set forth on the Perfection Certificate pertaining to Borrower and each of its Subsidiaries is accurate and complete in
all material respects. If Borrower is not now a 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 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 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 and deposit accounts described in the Perfection
Certificate delivered to Bank in connection herewith. 
 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. In the event that Borrower, after the date hereof,
intends to store or otherwise deliver any portion of the Collateral with a value in excess of Fifty Thousand Dollars ($50,000) 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 sole discretion. 
 All Inventory is in all material respects of good and
marketable quality, free from material defects. 
 Borrower is the sole owner of its intellectual property, except for non-exclusive licenses
granted to its customers in the ordinary course of business. Each issued patent of the Borrower, if any, is valid and enforceable and no part of the intellectual property has been judged invalid or unenforceable, in whole or in part, and to the best
of Borrower’s knowledge, no claim has been made that any part of the Intellectual Property violates the rights of any third party. 
 Borrower is not a party to, nor is bound by, any material license or other material agreement with respect to which Borrower is the licensee that effectively prohibits or otherwise restricts Borrower from granting a security interest in
Borrower’s interest in such license or agreement or any other property (other than over-the-counter software that is commercially available to the public). 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.

 (a) For each Account with respect to which Advances are requested under the Borrowing Base, on the date each Advance is requested and made,
such Account shall meet the Minimum Eligibility Requirements set forth in Section 13 below, subject only to Bank’s exercise of its discretion as permitted in this Agreement. 
  

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 (b) All statements made and all unpaid balances appearing in all invoices, instruments and other
documents evidencing the Accounts are and shall be true and correct in all material respects 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 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 Accounts are genuine,
and all such documents, instruments and agreements are legally enforceable in accordance with their terms. 
 5.4 Litigation. Other
than as disclosed in the Perfection Certificate (which Perfection Certificate may be updated to reflect future events to the extent necessary and appropriate for Borrower to make the continuing representations contemplated hereby) and explained to
Bank to its full satisfaction, 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 Five Hundred Thousand Dollars
($500,000). 
 5.5 No Material Deviation 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 December 31, 2007. 
 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. 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, including,
without limitation, the U.S. Food and Drug Administration, 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, if any, have timely paid all federal, and material foreign, state and local
taxes, assessments, deposits and contributions owed by Borrower. 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. Borrower is unaware of any claims or adjustments proposed for any of Borrower’s prior tax years which could result in additional taxes
becoming due and payable by Borrower. Borrower has paid all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, and Borrower has not withdrawn from participation in, and has
not permitted partial or complete termination of, or permitted the occurrence of any other event with respect to, any such plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit
Guaranty Corporation or its successors or any other governmental agency. 
  

 -8- 

 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 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, including, without limitation, regulations of the U.S. Food and Drug Administration, the noncompliance with which could have a material adverse effect
on Borrower’s business. 
 6.2 Financial Statements, Reports, Certificates. 
 (a) Borrower shall provide Bank with the following: 
 (i) monthly, within thirty (30) days after the end of each month, and upon each request for a Credit Extension, a Transaction Report; 
 (ii) within thirty (30) days after the end of each month, (A) monthly accounts receivable agings, aged by invoice date,
(B) monthly accounts payable agings, aged by invoice date, and outstanding or held check registers, if any, and (C) monthly reconciliations of accounts receivable agings (aged by invoice date), transaction reports, Deferred Revenue report
and general ledger; 
 (iii) as soon as available, and in any event within thirty (30) days after the end of each
month, monthly unaudited financial statements; 
 (iv) within thirty (30) days after the end of each month, a
monthly Compliance Certificate signed by a Responsible Officer, certifying that as of the end of such month, Borrower was in full compliance with all of the terms and conditions of this Agreement, and setting forth calculations showing compliance
with the financial covenants (monthly or quarterly, as applicable), set forth in this Agreement and such other information as Bank shall reasonably request, including, without limitation, a statement that at the end of such month there were no held
checks; 
 (v) as soon as available, and in any event within forty-five (45) days after the end of each fiscal
quarter of Borrower, quarterly unaudited financial statements; 
 (vi) as soon as available, within forty-five (45) days
after the end of each fiscal year of Borrower, (A) annual operating budgets (including income statements, balance sheets and cash flow statements, by month) for the upcoming fiscal year of Borrower, and (B) annual financial projections for
the following fiscal year (on a quarterly basis) as approved by Borrower’s board of directors, together with any related business forecasts used in the preparation of such annual financial projections; and 
 (vii) as soon as available, and in any event within one hundred fifty (150) days following the end of Borrower’s fiscal
year (provided, however, the financial statements for Borrower’s fiscal year end December 31, 2007 may be delivered on or before October 31, 2008), annual financial statements certified by, and with an unqualified opinion of,
Deloitte & Touche or such other independent certified public accountants acceptable to Bank. 
 (b) In the event that Borrower is or
becomes subject to the reporting requirements under the Securities Exchange Act of 1934, as amended, within five (5) days after 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. 
  

 -9- 

 (c) Together with the delivery of the Compliance Certificate, written notice of (i) any material
change in the composition of the intellectual property, (ii) the registration of any copyright (including any subsequent ownership right of Borrower in or to any copyright), patent or trademark not previously disclosed to Bank, or
(iii) Borrower’s knowledge of an event that materially adversely affects the value of the intellectual property. 
 6.3 Accounts
Receivable. 
 (a) Schedules and Documents Relating to Accounts. Borrower shall deliver to Bank transaction reports and
schedules of collections, as provided in Section 6.2, on Bank’s standard forms; provided, however, that Borrower’s failure to execute and deliver the same shall not affect or limit Bank’s Lien and other rights in
all of Borrower’s Accounts, nor shall Bank’s failure to advance or lend against a specific Account affect or limit Bank’s Lien and other rights therein. If requested by Bank, Borrower shall furnish Bank with copies of all contracts,
orders, invoices, and other similar documents, and all shipping instructions, delivery receipts, bills of lading, and other evidence of delivery, for any goods the sale or disposition of which gave rise to such Accounts. In addition, Borrower shall
deliver to Bank, on its request, the copies (or originals if available) of all instruments, chattel paper, security agreements, guarantees and other documents and property evidencing or securing any Accounts, in the same form as received, with all
necessary endorsements, and copies of all credit memos. 
 (b) Disputes. Borrower shall promptly notify Bank of all material disputes
or claims relating to Accounts in excess of $25,000. Borrower may forgive (completely or partially), compromise, or settle any Account for less than payment in full, or agree to do any of the foregoing so long as (i) Borrower does so in good
faith, in a commercially reasonable manner, in the ordinary course of business, in arm’s-length transactions, and reports the same to Bank in the regular reports provided to Bank; (ii) no Default or Event of Default has occurred and is
continuing; and (iii) after taking into account all such discounts, settlements and forgiveness, the total outstanding Advances will not exceed the Availability Amount. 
 (c) Collection of Accounts. Borrower shall have the right to collect all Accounts, unless and until an Event of Default has occurred and is
continuing. Within thirty (30) days of the Effective Date, all Account Debtors (with respect to Accounts originating after the Effective Date) shall be notified and directed that all payments on, and proceeds of, Accounts shall be deposited
directly by the applicable Account Debtor into a lockbox account, or such other “blocked account” as Bank may specify, pursuant to a blocked account agreement in form and substance satisfactory to Bank in its sole discretion. Whether or
not an Event of Default has occurred and is continuing, Borrower shall hold all payments on, and proceeds of, Accounts in trust for Bank, and Borrower shall promptly deliver all such payments and proceeds to Bank in their original form, duly
endorsed, to be applied to the Obligations pursuant to the terms of Section 9.4 hereof. 
 (d) Returns. Provided no Event
of Default has occurred and is continuing, if any Account Debtor returns any Inventory to Borrower, Borrower shall promptly (i) determine the reason for such return, (ii) issue a credit memorandum to the Account Debtor in the appropriate
amount, and (iii) provide a copy of such credit memorandum to Bank, upon request from Bank. In the event any attempted return occurs after the occurrence and during the continuance of any Event of Default, Borrower shall hold the returned
Inventory in trust for Bank, and immediately notify Bank of the return of the Inventory. 
 (e) Verification. At any time
that an Event of Default has occurred and is continuing, Bank may, from time to time, verify directly with the respective Account Debtors the validity, amount and other matters relating to the Accounts, either in the name of Borrower or Bank or such
other name as Bank may choose. 
 (f) No Liability. Bank shall not be responsible or liable for any shortage or discrepancy in,
damage to, or loss or destruction of, any goods, the sale or other disposition of which gives rise to an Account, or for any error, act, omission, or delay of any kind occurring in the settlement, failure to settle, collection or failure to collect
any Account, or for settling any Account in good faith for less than the full amount thereof, nor shall Bank be deemed to be responsible for any of Borrower’s obligations under any contract or agreement giving rise to an Account. Nothing herein
shall, however, relieve Bank from liability for its own gross negligence or willful misconduct. 
  

 -10- 

 6.4 Remittance of Proceeds. Except as otherwise provided in Section 6.3(c), deliver, in kind,
all proceeds arising from the disposition of any Collateral to Bank in the original form in which received by Borrower not later than the following Business Day after receipt by Borrower, to be applied to the Obligations pursuant to the terms of
Section 9.4 hereof; provided that, if no Default or Event of Default has occurred and is continuing, Borrower shall not be obligated to remit to Bank the proceeds of the sale of worn out or obsolete Equipment disposed of by Borrower in good
faith in an arm’s length transaction for an aggregate purchase price of One Hundred Thousand Dollars ($100,000) or less (for all such transactions in any fiscal year). Borrower agrees that it will not commingle proceeds of Collateral with any
of Borrower’s other funds or property, but will hold such proceeds separate and apart from such other funds and property and in an express trust for Bank. Nothing in this Section 6.4 limits the restrictions on disposition of Collateral set
forth elsewhere in this Agreement. 
 6.5 Taxes; Pensions. Make, and cause each of its Subsidiaries, if any, to make, timely payment
of all foreign, federal, state and local taxes or assessments (other than taxes and assessment which Borrower is contesting pursuant to the terms of Section 5.9 hereof), and deliver to Bank, on demand, appropriate certificates attesting to such
payments, and pay all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms. 
 6.6 Access to Collateral; Books and Records. At reasonable times, on three (3) Business Day’s notice (provided no notice is required if an Event of Default has occurred and is continuing), Bank, or its agents, shall have
the right on an annual basis (or more frequently if an Event of Default has occurred) to inspect the Collateral and the right to audit and copy Borrower’s Books. The foregoing inspections and audits shall be at Borrower’s expense, and the
charge therefor shall be $750 per person per day (or such higher amount as shall represent Bank’s then-current standard charge for the same), plus reasonable out-of-pocket expenses. In the event Borrower and Bank schedule an audit more than ten
(10) days in advance, and Borrower cancels or seeks to reschedules the audit with less than ten (10) days written notice to Bank, then (without limiting any of Bank’s rights or remedies), Borrower shall pay Bank a fee of $1,000 plus
any out-of-pocket expenses incurred by Bank to compensate Bank for the anticipated costs and expenses of the cancellation or rescheduling. 
 6.7 Insurance. Keep its business and the Collateral insured for risks and in amounts standard for companies in Borrower’s industry and location and as Bank may reasonably request. Insurance policies shall be in a form, with
companies, and in amounts that are satisfactory to Bank, it being understood that the policies, companies and amounts in place at closing are acceptable to Bank. All property policies shall have a lender’s loss payable endorsement showing Bank
as the sole lender loss payee and waive subrogation against Bank, and all liability policies shall show, or have endorsements showing, Bank as an additional insured. All policies (or the loss payable and additional insured endorsements) shall
provide that the insurer must give Bank at least thirty (30) 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. Notwithstanding the foregoing, (a) so long as no Event of Default has occurred and is continuing, Borrower shall have
the option of applying the proceeds of any casualty policy up to One Hundred Thousand Dollars ($100,000), in the aggregate, toward the replacement or repair of destroyed or damaged property; provided that any such replaced or repaired property
(i) shall be of equal or like value as the replaced or repaired Collateral and (ii) shall be deemed Collateral in which Bank has been granted a first priority security interest, and (b) after the occurrence and during the continuance
of an Event of Default, all proceeds payable under such casualty policy shall, at the option of Bank, be payable to Bank on account of the Obligations. If Borrower fails to obtain insurance as required under this Section 6.7 or to pay any
amount or furnish any required proof of payment to third persons and Bank, Bank may make all or part of such payment or obtain such insurance policies required in this Section 6.7, and take any action under the policies Bank deems prudent.

 6.8 Operating Accounts. 
 (a) Maintain its and its Subsidiaries’, if any, primary (subject to the thirty (30)-day transition period for Accounts of Account Debtors described in Section 6.3(c) hereof) domestic depository, operating accounts and securities
accounts with Bank and Bank’s affiliates with all excess funds maintained at or invested through Bank or an affiliate of Bank. 
 (b)
Provide Bank five (5) days prior-written notice before establishing any Collateral Account at or with any domestic bank or domestic financial institution other than Bank or its Affiliates. In addition, for each Collateral Account that Borrower
at any time maintains (other than the domestic Collateral Accounts described in the Perfection Certificate, in an aggregate amount not to exceed Four Hundred Thousand Dollars 

  

 -11- 

 
($400,000) at any time), Borrower shall cause the applicable bank or financial institution (other than Bank) located in the United States at or with which
such 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.
The provisions of the previous sentence shall not apply to deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of Borrower’s employees and identified to Bank by
Borrower as such. 
 6.9 Financial Covenants. 
 Borrower shall maintain at all times, to be tested as of the last day of each quarter, unless otherwise noted, on a consolidated basis with respect to Borrower and its Subsidiaries: 
 (a) Profitability. A minimum Net Income (loss) of at least (not more than) the following for each quarterly period indicated below: 
  

					
	 Quarterly Period Ended
	  	Minimum Profitability	 
	 September 30, 2008
	  	$	(3,000,000	)
		
	 December 31, 2008 and March 31, 2009
	  	$	(1,000,000	)
		
	 June 30, 2009
	  	$	1.00	 
		
	 September 30, 2009, December 31, 2009 and March 31, 2010
	  	$	1,000,000	 
		
	 June 30, 2010, and each quarterly period of the Borrower thereafter
	  	$	3,000,000	 

 (b) Liquidity. From the Effective Date through and including December 31, 2009,
maintain at all times, certified to by Borrower on a monthly basis, Liquidity of at least Five Million Dollars ($5,000,000); provided, however, that in the event Borrower fails the Fixed Charge Coverage Ratio (without giving effect to
any Additional Cash Proceeds) on December 31, 2009, this Liquidity covenant will remain in effect through and including March 31, 2010; provided, further, in addition to the rights of the Borrower under Section 6.9(e),
Borrower shall have one day to cure an Event of Default under this subsection (b) in the event of a measurement of this requirement on any day other than the last day of each month. 
 (c) Capital Expenditures. Beginning with the fiscal quarter ending September 30, 2008 and as of the last day of each fiscal quarter
thereafter, Borrower’s Capital Expenditures for the trailing twelve month period ending on each testing date shall be equal to or less than Twelve Million Dollars ($12,000,000). 
 (d) Fixed Charge Coverage Ratio. Beginning with the fiscal quarter ending December 31,
2009 and for each fiscal quarter of the Borrower thereafter, the Borrower shall maintain, to be tested quarterly, measured on a trailing four fiscal quarter basis (except as noted below), a ratio of (i) EBITDA minus unfunded Capital
Expenditures minus taxes actually paid in cash to (ii) the sum of Interest Expense plus the sum of all required scheduled payments of principal on all Indebtedness of the Borrower owed to Bank plus all required
scheduled payments of principal on all capital lease obligations of the Borrower of not less than 1.25 to 1.00; provided, however, that when determining such ratio for the fiscal quarter ending December 31, 2009, in lieu of taking
the previous four (4) quarters into account, the amount contained in clause (ii) above for the prior three fiscal quarters shall be multiplied by four-thirds ( 4/3
) for such fiscal quarter. 
 (e) Additional Cash Proceeds. 
 (I) In the event that Borrower, as of any date of measurement, is in violation of one or more of the financial covenant listed in clauses (b) or
clause (d) above, and Borrower is able to raise Additional Cash Proceeds within thirty (30) days of the date of such measurement that are otherwise raised in accordance with this Agreement, such Additional Cash Proceeds will be added to
the calculation of EBITDA and Liquidity, as 

  

 -12- 

 
applicable, as if such Additional Cash Proceeds were received prior to such measurement date, and such financial covenants shall then be recalculated
including such Additional Cash Proceeds. Additional Cash Proceeds may be added back to financial covenant calculations of clause (b) and (d) above no more than (i) two (2) times in any twelve-month period and (ii) three
(3) times prior to the Maturity Date. Notwithstanding the foregoing, Additional Cash Proceeds may not be added back to meet the covenant requirement set forth in subsection (d) above for either of the periods ending December 31, 2009
and March 31, 2010 for the purpose of determining (i) any Overadvances set forth in Section 2.2 hereof; (ii) Term Loan repayments required pursuant to Section 2.1.5(b)(ii); (iii)Term Loan pricing pursuant to
Section 2.3(a)(ii); or (iv) any Availability Amount. 
 (II) During any thirty (30) day period described in clause (e)(I)
above, prior to receipt of sufficient Additional Cash Proceeds, the Borrower will be in violation of the Fixed Charge Covenant Ratio and/or the Liquidity covenant, as the case may be, and an Event of Default shall have occurred and be continuing;
provided, however, that as long as the Borrower continues to give the Bank reasonable assurances, in Bank’s reasonable discretion, that Borrower will be able to and intends to raise sufficient Additional Cash Proceeds to cure such
Event of Default during such thirty (30) day period, the Bank agrees to forebear from exercising its remedies for such Event of Default or Events of Default, as the case may be, until the expiration of such thirty (30) day period.

 6.10 Protection and Registration of Intellectual Property Rights. Borrower shall: (a) protect, defend and maintain the
validity and enforceability of its intellectual property material to the conduct of its business; (b) promptly advise Bank in writing of material infringements of its intellectual property material to the conduct of its business; and
(c) not allow any intellectual property material to Borrower’s business to be abandoned, forfeited or dedicated to the public without Bank’s written consent. If Borrower decides to register any copyrights or mask works in the United
States Copyright Office, Borrower shall: (x) provide Bank with at least fifteen (15) days prior written notice of its intent to register such copyrights or mask works together with a copy of the application it intends to file with the
United States Copyright Office (excluding exhibits thereto); (y) execute an intellectual property security agreement or such other documents as Bank may reasonably request to maintain the perfection and priority of Bank’s security interest
in the copyrights or mask works intended to be registered with the United States Copyright Office; and (z) record such intellectual property security agreement with the United States Copyright Office contemporaneously with filing the copyright
or mask work application(s) with the United States Copyright Office. Borrower shall promptly provide to Bank a copy of the application(s) filed with the United States Copyright Office together with evidence of the recording of the intellectual
property security agreement necessary for Bank to maintain the perfection and priority of its security interest in such copyrights or mask works. Borrower shall provide written notice to Bank of any application filed by Borrower in the United States
Patent and Trademark Office for a patent or to register a trademark or service mark within 30 days after any such filing. 
 6.11
Litigation Cooperation. From the date hereof and continuing through the termination of this Agreement, make available to Bank, without expense to Bank, Borrower and its officers, employees and agents and Borrower’s Books, to the extent that
Bank may deem them reasonably necessary to prosecute or defend any third-party suit or proceeding instituted by or against Bank with respect to any Collateral or relating to Borrower. 
 6.12 Further Assurances. Borrower shall 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. 
  

	 	7	NEGATIVE COVENANTS 

 Borrower shall not do
any of the following without Bank’s prior written consent: 
 7.1 Dispositions. Convey, sell, lease, transfer or otherwise dispose
of (collectively, “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, except for Transfers of (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 other Transfers, so long as the aggregate value of the applicable assets does not exceed One Hundred Thousand Dollars ($100,000) in any fiscal year.

 7.2 Changes in Business, Management, Ownership, Control, or Business Locations. (a) Engage in or permit any of its
Subsidiaries, if any, 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) each of the current
chief executive officer and chief financial officer are no longer in such positions or (ii)

  

 -13- 

 
enter into any transaction or series of related transactions in which the stockholders of Borrower who were not stockholders immediately prior to the first
such transaction own more than forty percent (40%) 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 Fifty Thousand Dollars ($50,000) in Borrower’s assets or property), (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, permit any Collateral not to be subject to the first priority security interest granted herein, or enter into any agreement, document,
instrument or other arrangement (except with or in favor of Bank) with any Person which directly or indirectly prohibits or has the effect of prohibiting Borrower or any Subsidiary from assigning, mortgaging, pledging, granting a security interest
in or upon, or encumbering any of Borrower’s or any Subsidiary’s intellectual property, except as is otherwise permitted in Section 7.1 hereof and the definition of “Permitted Lien” herein. 
 7.6 Maintenance of Collateral Accounts. Maintain any Collateral Account except pursuant to the terms of Section 6.8(b) hereof. 
 7.7 Investments; Distributions. (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 provided that (i) Borrower may convert any of its convertible securities into other securities pursuant to
the terms of such convertible securities or otherwise in exchange thereof, (ii) Borrower may pay dividends solely in common stock; and (iii) Borrower may repurchase the stock of former employees or consultants pursuant to stock repurchase
agreements so long as an Event of Default does not exist at the time of such repurchase and would not exist after giving effect to such repurchase, provided such repurchase does not exceed in the aggregate of One Hundred Thousand Dollars ($100,000)
per fiscal year. 
 7.8 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. 
 7.9 Subordinated Debt. (a) Make, permit any payment on, or incur any Subordinated Debt,
including, without limitation, any Additional Cash Proceeds, except under the terms of the Subordination Agreement, intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any document
relating to any Subordinated Debt which would increase the amount thereof or adversely affect the subordination thereof to Obligations owed to Bank. 
 7.10 Compliance. Become an “investment company” or a company controlled by an “investment company”, under the Investment Company Act of 1940 or undertake as one of its important activities
extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds of any Credit Extension for that purpose; fail to meet the minimum funding requirements of
ERISA, permit a Reportable Event or non-exempt Prohibited Transaction, as defined in ERISA, to occur; fail to comply with the Federal Fair Labor Standards Act; fail to comply with any law or regulation promulgated by the U.S. Food and Drug
Administration; 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 

  

 -14- 

 
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 (a) make any payment of principal or interest on any Credit Extension on its due date, or (b) pay any other Obligations within three (3) Business Days after such Obligations are due and payable. 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, 6.6, 6.7, 6.8 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 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) Business Days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) Business Day period or cannot after diligent attempts by Borrower be cured within
such ten (10) Business 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 upon Bank (or Bank’s Affiliate) 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; (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 Two Hundred Fifty Thousand Dollars ($250,000) 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 at Bank’s discretion no Credit Extensions shall be made during the
cure period); 
 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 Two Hundred
Fifty Thousand Dollars ($250,000) or that could have a material adverse effect on Borrower’s business, other than a default by Borrower on Indebtedness owed by Borrower to an Affiliate of Borrower and subject to a Subordination Agreement with
Bank; 
 8.7 Judgments. A judgment or judgments for the payment of money in an amount, individually or in the aggregate, of at least
Two Hundred Fifty Thousand Dollars ($250,000) (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 at Bank’s discretion no Credit Extensions will be made prior to the satisfaction or stay of such judgment); 
  

 -15- 

 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 Agreement, intercreditor, or other similar agreement with Bank, or any creditor that has signed such an agreement with Bank breaches any terms of such agreement, other than a default by Borrower of
any Indebtedness to any Affiliate subject to such a Subordination Agreement. 
  

	 	9	BANK’S RIGHTS AND REMEDIES 

 9.1
Rights and Remedies. While an Event of Default occurs and continues Bank may, without notice or demand, do any or all of the following: 
 (a) declare all Obligations immediately due and payable (but if an Event of Default described in Section 8.5 occurs all Obligations are immediately due and payable without any action by Bank); 
 (b) stop advancing money or extending credit for 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 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 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 
  

 -16- 

 (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 any security interest 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 Protective Payments. If
Borrower fails to obtain the insurance called for by Section 6.7 or fails to pay any premium thereon or fails to pay any other amount which Borrower is obligated to pay under this Agreement or any other Loan Document, Bank may obtain such
insurance or make such payment, and all amounts so paid by Bank are Bank Expenses and immediately due and payable, bearing interest at the then highest applicable rate, 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 obtained or within a reasonable time thereafter. No payments by Bank are deemed an agreement to make similar payments in the future or Bank’s waiver of any Event of
Default. 
 9.4 Application of Payments and Proceeds. Unless an Event of Default has occurred and is continuing, Bank may 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 attorneys’ fees incurred by Bank in the exercise of its rights under this Agreement; second, to the interest due upon any of the Obligations (excluding the Term Loan); and third, to the principal of
the Obligations (excluding the Term Loan) 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 to 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. 
 9.5 Bank’s Liability for Collateral. So long as Bank complies with reasonable banking practices regarding the safekeeping of the Collateral
in the possession or under the control of Bank, Bank shall not be liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or
(d) any act or default of any carrier, warehouseman, bailee, or other Person. Borrower bears all risk of loss, damage or destruction of the Collateral. 
 9.6 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. 
  

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 9.7 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”), other than Advance requests made pursuant to Section 3.4, by any party to this Agreement or any other Loan Document must be in writing and be delivered
or sent by facsimile at the addresses or facsimile numbers listed below. Bank or Borrower may change its notice address by giving the other party written notice thereof. Each such Communication 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, registered or certified mail, return receipt requested, with proper postage prepaid; (b) upon transmission, when sent by
facsimile transmission (with such facsimile promptly confirmed by delivery of a copy by personal delivery or United States mail as otherwise provided in this Section 10); (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 or facsimile number indicated below. Advance requests made
pursuant to Section 3.4 must be in writing and may be in the form of electronic mail, delivered to Bank by Borrower at the e-mail address of Bank provided below and shall be deemed to have been validly served, given, or delivered when sent
(with such electronic mail promptly confirmed by delivery of a copy by personal delivery or United States mail as otherwise provided in this Section 10). Bank or Borrower may change its address, facsimile number, or electronic mail address by
giving the other party written notice thereof in accordance with the terms of this Section 10. 
  

			
	If to Borrower:	  	Medidata Solutions, Inc.
		  	Medidata FT, Inc.
		  	c/o Medidata, Solutions, Inc.
		  	79 Fifth Avenue, 8th Floor
		  	New York, New York 10003
		  	Attn: Chief Financial Officer
		  	Fax: (212) 466-4177
		  	Email: bdalziel@mdsol.com
		
	If to Bank:	  	Silicon Valley Bank
		  	One Newton Executive Park, Suite 200
		  	2221 Washington Street, Newton, MA 02462
		  	Attn: Michael Fell
		  	Fax: (617) 969-4395
		  	Email: mfell@svb.com
		
	with a copy to:	  	Riemer & Braunstein LLP
		  	Three Center Plaza
		  	Boston, Massachusetts 02108
		  	Attn: Charles W. Stavros, Esquire
		  	Fax: (617) 880-3456
		  	Email: cstavros@riemerlaw.com

  

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

 New York 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 New York; provided, however,
that nothing in this Agreement shall be deemed to operate to preclude Bank from bringing suit or taking other legal action in any other jurisdiction to realize on the Collateral or any other security for the Obligations, or to enforce a judgment or
other court order in favor of Bank. Borrower expressly submits and consents in advance to such jurisdiction in any action or suit commenced in any such court, and Borrower hereby waives any objection that it may have based upon lack of personal
jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such court. Borrower hereby waives personal service of the summons, complaints, and other process
issued in such action or suit and agrees that service 

  

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of such summons, complaints, and other process may be made by registered or certified mail addressed to Borrower at the address set forth in Section 10
of this Agreement in the manner prescribed by applicable law. NOTWITHSTANDING ANYTHING TO THE CONTRARY SET FORTH HEREINABOVE, BANK SHALL SPECIFICALLY 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 Termination
Prior to Maturity Date. 
 (a) Revolving Line. The Revolving Line may be terminated or permanently reduced (in whole or in part)
prior to the Revolving Line Maturity Date by Borrower, effective three (3) Business Days after written notice of termination or reduction is given to Bank. Notwithstanding any such termination or permanent reduction, Bank’s lien and
security interest in the Collateral shall continue until Borrower fully satisfies its Obligations. If such termination or permanent reduction is at Borrower’s election (regardless of the existence of any Event of Default), or at Bank’s
election due to the occurrence and continuance of an Event of Default, Borrower 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 (i) if terminated or permanently
reduced at any time prior to the first anniversary of the Effective Date, an amount equal to three percent (3.00%) of the amount of such permanent reduction; (ii) if terminated or permanently reduced on or at any time after the first
anniversary of the Effective Date but prior to the second anniversary of the Effective Date, an amount equal to two percent (2.00%) of the amount of such permanent reduction; and (iii) if terminated or permanently reduced on or at any time
after the second anniversary of the Effective Date but prior to the third anniversary of the Effective Date, an amount equal to one percent (1.00%) of the amount of such permanent reduction; provided that no termination fee shall
be charged if the credit facility hereunder is replaced with a new facility from another division of Silicon Valley Bank. Upon payment in full of the Obligations and at such time as Bank’s obligation to make Credit Extensions has terminated,
Bank shall release its liens and security interests in the Collateral and all rights therein shall revert to Borrower. 
 (b) Term
Loan. The Term Loan may be prepaid (in whole or in part) prior to the Term Loan Maturity Date by Borrower, effective three (3) Business Days after written notice of prepayment is given to Bank. Notwithstanding any such prepayment or
termination, Bank’s lien and security interest in the Collateral shall continue until Borrower fully satisfies its Obligations. If such prepayment or termination is at Borrower’s election (regardless of the existence of any Event of
Default), Borrower 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 (i) if prepaid at any time prior to the first anniversary of the Effective Date, an amount equal
to three percent (3.00%) of the amount prepaid; (ii) if prepaid on or at any time after the first anniversary of the Effective Date but prior to the second anniversary of the Effective Date, an amount equal to two percent (2.00%) of
the amount prepaid; and (iii) if terminated on or at any time after the second anniversary of the Effective Date but prior to the third anniversary of the Effective Date, an amount equal to one percent (1.00%) of the amount prepaid;
provided that no termination fee shall be charged (i) in respect of prepayments made from the Excess Cash Flow Recapture Amount pursuant to Section 2.1.5(b) or (ii) if the credit facility hereunder is replaced with a new
facility from another division of Silicon Valley Bank. Upon payment in full of the Obligations and at such time as Bank’s obligation to make Credit Extensions has terminated, Bank shall release its liens and security interests in the Collateral
and all rights therein shall revert to Borrower 
 12.2 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 (but prior to the occurrence and continuance of an Event of Default, any such sale may only be to another bank or financial institution), transfer, 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. 
  

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 12.3 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 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 to the extent of Claims and/or losses directly caused by Bank’s gross negligence or willful misconduct. 
 12.4 Time of Essence. Time is of the essence for the performance of all Obligations in this Agreement. 
 12.5
Severability of Provisions. Each provision of this Agreement is severable from every other provision in determining the enforceability of any provision. 
 12.6 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. 
 12.7 Counterparts. This Agreement may be executed in any number of counterparts and by different
parties on separate counterparts, each of which, when executed and delivered, are an original, and all taken together, constitute one Agreement. 
 12.8 Survival. All covenants made in this Agreement shall continue in full force and all representations and warranties shall survive their making 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 12.3 to indemnify Bank shall survive until the
statute of limitations with respect to such claim or cause of action shall have run. 
 12.9 Confidentiality. Bank agrees to use
reasonable precautions to keep confidential, in accordance with their customary procedures for handling confidential information of the same nature, all non-public information supplied by the Borrower or any Subsidiary pursuant to this Agreement,
including any financial statement, financial projections or forecasts, budget or compliance certificate, but disclosure of information may be made: (a) to Bank’s Subsidiaries or Affiliates; (b) to prospective transferees or purchasers
of any interest in the Credit Extensions (provided, however, Bank shall use 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; 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. 
 12.10 Attorneys’ Fees,
Costs and Expenses. In any action or proceeding between Borrower and Bank arising out of or relating to the Loan Documents, Bank shall be entitled to recover its reasonable attorneys’ fees and other costs and expenses incurred, in addition
to any other relief to which it may be entitled. 
 12.11 Borrower Liability. Either Borrower may, acting singly, request Credit
Extensions hereunder. Each Borrower hereby appoints the other as agent for the other for all purposes hereunder, including with respect to requesting Credit Extensions hereunder. Each Borrower hereunder shall be jointly and severally obligated to
repay all Credit Extensions made hereunder, regardless of which Borrower actually receives said Advance, as if each Borrower hereunder directly received all Credit Extensions. Each Borrower waives any suretyship defenses available to it under
the Code or any other applicable law. Each Borrower waives any right to require Bank to: (i) proceed against any other Borrower or any other person; (ii) proceed against or exhaust any security; or (iii) pursue any other remedy. Bank
may exercise or not exercise any right or remedy it has against any Borrower or any 

  

 -20- 

 
security it holds (including the right to foreclose by judicial or non-judicial sale) without affecting any other Borrower’s liability. Notwithstanding
any other provision of this Agreement or other related document, until the Obligations are indefeasibly paid in full, each Borrower irrevocably waives all rights that it may have at law or in equity (including, without limitation, any law
subrogating Borrower to the rights of Bank under this Agreement) to seek contribution, indemnification or any other form of reimbursement from any other Borrower, or any other security it holds (including the right to foreclose by judicial or
non-judicial sale) without affecting any other Borrower’s liability. Notwithstanding any other provision of this Agreement or other related document, until the Obligations are indefeasibly paid in full, each Borrower irrevocably waives all
rights that it may have at law or in equity (including, without limitation, any law subrogating Borrower to the rights of Bank under this Agreement) to seek contribution, indemnification or any other form of reimbursement from any other Borrower, or
any other Person now or hereafter primarily or secondarily liable for any of the Obligations, for any payment made by Borrower with respect to the Obligations in connection with this Agreement or otherwise and all rights that it might have to
benefit from, or to participate in, any security for the Obligations as a result of any payment made by Borrower with respect to the Obligations in connection with this Agreement or otherwise. Any agreement providing for indemnification,
reimbursement or any other arrangement prohibited under this Section shall be null and void. If any payment is made to a Borrower in contravention of this Section, such Borrower shall hold such payment in trust for Bank and such payment shall be
promptly delivered to Bank for application to the Obligations, whether matured or unmatured. 
 12.12 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. 
  

	 	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. 
 “Additional Cash Proceeds” is the net cash proceeds of (i) equity issued by the Borrower in accordance with the terms of
this Agreement and/or (ii) the incurrence by the Borrower of Subordinated Debt in accordance with the terms hereof, the proceeds of which shall be applied to the financial covenant calculations as described in Section 6.9(e) hereof.

 “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 
 (I) from the Effective Date through December 31, 2009,
(a) eighty percent (80%) of Borrower’s Consolidated T3M Revenue 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, minus (d) the outstanding principal balance of any Advances (including any amounts used for Cash Management Services) and minus (e) the outstanding principal amount of
the Term Loan; 
  

 -21- 

 provided, however, that in any event, the outstanding amount of any Advances (including any amounts used
for Cash Management Services) plus (a) the face amount of any outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve, plus (b) the FX Reserve cannot exceed the
Revolving Line; 
 (II) beginning on December 31, 2009 and thereafter, in the event Borrower is not in default of the Fixed Charge
Coverage Ratio (without giving effect to any Additional Cash Proceeds) as of December 31, 2009, (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); and 
 (III) beginning on December 31, 2009 and thereafter, in the event Borrower is in
default of the Fixed Charge Coverage Ratio (without giving effect to any Additional Cash Proceeds) as of December 31, 2009, (a) 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, minus (d) the outstanding principal balance of any Advances (including any amounts used for Cash
Management Services) and minus (e) the outstanding principal balance of the Term Loan; provided, however, in the event Borrower is in compliance with the Fixed Charge Coverage Ratio (without giving effect to any Additional
Cash Proceeds) on March 31, 2010, then beginning on April 1, 2010 and thereafter, the Availability Amount shall be (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); 
 provided, however, that in any event the outstanding amount of any
Advances (including any amounts used for Cash Management Services) plus (a) the face amount of any outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve), plus
(b) the FX Reserve cannot exceed the Revolving Line. 
 “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, defending and enforcing the Loan Documents (including, without limitation, those incurred in connection with appeals or Insolvency Proceedings) or otherwise incurred with respect to Borrower under or pursuant
to any Loan Documents. 
 “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 eighty percent (80%) of Eligible Accounts, as reasonably determined by Bank from Borrower’s most recent
Borrowing Base Certificate; provided, however, that Bank may decrease the foregoing percentage in its good faith business judgment (after consultation with Borrower in connection with the results of an audit of the Collateral) based on
events, conditions, contingencies, or risks which, as determined by Bank, may adversely affect Collateral. 
 “Borrowing Base
Certificate” is that certain certificate included within each Transaction Report. 
 “Borrowing Resolutions”
are, with respect to any Person, those resolutions adopted by such Person’s Board of Directors or other appropriate body 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 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 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. 
  

 -22- 

 “Business Day” is any day that is not a Saturday, Sunday or a day on which Bank is
closed. 
 “Capital Expenditures” means, with respect to any Person for any period, the sum of (a) the aggregate of all
expenditures by such Person and its Subsidiaries during such period that are capital expenditures as determined in accordance with GAAP, whether such expenditures are paid in cash or financed, and (b) to the extent not covered by clause (a),
the aggregate of all expenditures by such Person and its Subsidiaries during such period to acquire by purchase or otherwise the business or capitalized assets or the capital stock of any other Person. 
 “Cash Equivalents” means (a) marketable direct obligations issued or unconditionally guaranteed by the United States or any agency
or any State thereof having maturities of not more than one (1) year from the date of acquisition; (b) commercial paper maturing no more than one (1) year after its creation and having the highest rating from either
Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc., (c) Bank’s certificates of deposit issued maturing no more than one (1) year after issue; 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. 
 “Code” is the Uniform Commercial Code, as the same may, from time to
time, be enacted and in effect in the State of New York; 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 New York, 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 B. 
 “Consolidated T3M Revenue” is Borrower’s consolidated revenue, calculated in accordance with GAAP, as reported on the
Borrower’s three (3) most recent monthly unaudited financial statements, delivered to Bank pursuant to Section 6.2(a)(iii). For purposes of any calculations hereunder involving Consolidated T3M Revenue, such Consolidated T3M Revenue
shall remain applicable until delivery to Bank by the Borrower of the next regularly scheduled delivery of Borrower’s monthly unaudited financial statements. 
 “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. 
  

 -23- 

 “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. 
 “Credit Extension”
is any Advance, Letter of Credit, Term Loan, FX Forward Contract, amount utilized for Cash Management Services, or any other extension of credit by Bank for Borrower’s benefit under this Agreement. 
 “Default” means any event which with notice or passage of time or both, would constitute an Event of Default. 
 “Default Rate” is defined in Section 2.3(b). 
 “Deferred Revenue” is all amounts received or invoiced in advance of performance under contracts and not yet recognized as revenue. 
 “Deposit Account” is any “deposit account” as defined in the Code with such additions to such term as may hereafter be made.

 “Designated Deposit Account” is Borrower’s deposit account, account number 3300620197, maintained with Bank.

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

 “EBITDA” shall mean (a) Net Income, plus (b) Interest Expense, plus (c) to the extent
deducted in the calculation of Net Income, depreciation expense and amortization expense, plus (d) income tax expense; plus (e) non-cash stock compensation deducted from the calculation of Net Income; plus
(f) other non-recurring non-cash deductions from Net Income permitted by Bank, in its reasonable discretion after consultation with Borrower 
 “Effective Date” is the date Bank executes this Agreement and as indicated on the signature page hereof. 
 “Eligible Accounts” are 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 upon notice to Borrower, to adjust any of the criteria set forth below and to establish new criteria in its good faith business judgment. Without limiting the fact that the determination of which Accounts are
eligible for borrowing is a matter of Bank’s good faith judgment, the following (“Minimum Eligibility Requirements”) are the minimum requirements for an Account to be an Eligible Account. 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 one hundred twenty (120) days of invoice date; 
 (c) Accounts owing from an Account Debtor, fifty percent (50%) or more of whose Accounts have not been paid within one hundred twenty
(120) days of invoice date; 
 (d) credit balances over one hundred twenty (120) days from invoice date; 
 (e) Accounts owing from an Account Debtor, including Affiliates, whose total obligations to Borrower exceed thirty-five (35%) of all Accounts, for
the amounts that exceed that percentage, unless Bank approves in writing; 
 (f) Accounts that represent progress billings, or be due under a
fulfillment or requirements contract; 
  

 -24- 

 (g) Accounts owing from an Account Debtor which does not have its principal place of business in the
United States or Canada, except for Eligible Foreign Accounts; 
 (h) Accounts owing from the United States or any department, agency, or
instrumentality thereof, except for Accounts of the United States if Borrower has assigned its payment rights to Bank and the assignment has been acknowledged under the Federal Assignment of Claims Act of 1940, as amended; 
 (i) 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; 
 (j) 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; 
 (k) Accounts for which the Account Debtor is Borrower’s Affiliate, officer, employee, or agent; 
 (l) 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; 
 (m) Accounts owing from an Account Debtor with
respect to which Borrower has received Deferred Revenue (but only to the extent of such Deferred Revenue); 
 (n) Accounts for which Bank in
its good faith business judgment determines collection to be doubtful; and 
 (o) other Accounts Bank deems ineligible in the exercise of its
good faith business judgment. 
 “Eligible Foreign Accounts” are Accounts of Account Debtors not having its principal place
of business in the United States as listed on and as limited by Annex A and any other 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, in its
reasonable discretion, 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 Employment Retirement Income Security Act of 1974, and its regulations. 
 “Event of Default” is defined in Section 8. 
 “Excess Cash Flow” is, for any Person, for any period of measurement, (a) EBITDA of such Person minus (b) all payments of principal on any and all Indebtedness of such Person
(including voluntary prepayments and mandatory prepayments made in connection with any payment of any Overadvance, but excluding any other mandatory prepayments made during such period) minus (c) Interest Expense minus
(d) unfunded Capital Expenditures minus (e) taxes actually paid in cash minus (f) capitalized software development costs, in each case paid or incurred by such Person in such period of measurement. 
 “Excess Cash Flow Recapture Amount” is, for any Person, for any period of measurement, fifty percent (50%) of such Person’s
Excess Cash Flow for such period. 
 “Foreign Currency” means lawful money of a country other than the United States.

 “Funding Date” is any date on which a Credit Extension is made to or on account of Borrower which shall be a Business
Day. 
  

 -25- 

 “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. 
 “General Intangibles” is all “general intangibles” as defined in the Code in effect on the date hereof with such additions to
such term as may hereafter be made, and includes without limitation, all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished, any
patents, trademarks, service marks and, to the extent permitted under applicable law, any applications therefor, whether registered or not, any trade secret rights, including any rights to unpatented inventions, payment intangibles, royalties,
contract rights, goodwill, franchise agreements, purchase orders, customer lists, route lists, telephone numbers, domain names, claims, income and other tax refunds, security and other deposits, options to purchase or sell real or personal property,
rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and business interruption insurance), payments of insurance and rights to
payment of any kind. 
 “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 Audit” is Bank’s inspection of Borrower’s Accounts, the Collateral, and Borrower’s Books.

 “Insolvency Proceeding” is any proceeding by or against any Person under the United States Bankruptcy Code, or any other
bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief. 
 “Interest Expense” means for any fiscal period, interest expense (whether cash or non-cash) determined in accordance with GAAP for the
relevant period ending on such date, including, in any event, interest expense with respect to any Credit Extension and other Indebtedness of Borrower and its Subsidiaries, if any, including, without limitation or duplication, all commissions,
discounts, or related amortization and other fees and charges with respect to letters of credit and bankers’ acceptance financing and the net costs associated with interest rate swap, cap, and similar arrangements, and the interest portion of
any deferred payment obligation (including capital leases and all other types of lease obligations). 
 “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. 
 “IP Agreement” is that certain
Intellectual Property Security Agreement executed and delivered by Borrower to Bank dated as of the Effective Date, as may be amended from time to time. 
 “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). 
  

 -26- 

 “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. 
 “Liquidity” is, for any Person as of any date of measurement, such Persons unrestricted cash at Bank plus such Person’s
total net billed accounts receivable (as listed on such Person’s most recent consolidated balance sheet) minus all outstanding Indebtedness of such Person owed to Bank. 
 “Loan Documents” are, collectively, this Agreement, the Perfection Certificates, the IP Agreement, the Pledge Agreement, the
Subordination Agreement, if any, 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; (b) a material adverse change in the business, operations, or condition (financial or otherwise) of Borrower, taken as a whole; (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 substantial 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. 
 “Maturity Date” means the Revolving Line Maturity
Date and/or the Term Loan Maturity Date. 
 “Minimum Eligibility Requirements” is defined in the defined term “Eligible
Accounts”. 
 “Net Income” means, as calculated on a consolidated basis for Borrower and its Subsidiaries, if any, for
any period without taking into account non-recurring, non-cash expenses as at any date of determination, the net profit (or loss), after provision for taxes, of Borrower and its Subsidiaries for such period taken as a single accounting period.

 “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, 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 thirty (30) days prior to the Effective Date, and, (a) if such Person is a corporation, its bylaws in current form, (b) if such Person is a limited liability company,
its limited liability company agreement (or similar agreement), and (c) if such Person is a partnership, its partnership agreement (or similar agreement), each of the foregoing with all current amendments or modifications thereto. 

“Payment” means all checks, wire transfers and other items of payment received by Bank (including proceeds of Accounts and payment of
all the Obligations in full) for credit to Borrower’s outstanding Credit Extensions or, if the balance of the Credit Extensions has been reduced to zero, for credit to its Deposit Accounts. 
 “Perfection Certificate” is defined in Section 5.1. 
 “Permitted Indebtedness” is: 
 (a) Borrower’s Indebtedness to Bank under this Agreement
and the other Loan Documents; 
 (b) Indebtedness existing on the Effective Date and shown on the Perfection Certificate; 
 (c) Subordinated Debt, if any, including without limitation any Additional Cash Proceeds, if any; 
 (d) unsecured Indebtedness to trade creditors incurred in the ordinary course of business; and 
  

 -27- 

 (e) Indebtedness incurred by Borrower to finance the acquisition of Equipment or software provided that
the aggregate amount of all such Indebtedness at any one time outstanding shall not exceed Twenty Million Dollars ($20,000,000); 
 (f)
Indebtedness of Borrower owed to any Subsidiary in the ordinary course of business consistent with past business practices and Indebtedness of any Subsidiary or Subsidiaries currently due or incurred for the necessary operations of such Subsidiary
or Subsidiaries in the ordinary course of business and consistent with past practices; 
 (g) extensions, refinancings, modifications,
amendments and restatements of any items of Permitted Indebtedness (a) through (f) above. 
 “Permitted
Investments” are: 
 (a) Investments shown on the Perfection Certificate and existing on the Effective Date; 
 (b) Cash Equivalents; 
 (c) Investments
consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of Borrower’s business; 
 (d) Investments consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary course of business, and (ii) loans to employees, officers or directors
relating to the purchase of equity securities of Borrower or its Subsidiaries pursuant to employee stock purchase plans or agreements approved by Borrower’s board of directors; 
 (e) Investments (including debt obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of
delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business; 
 (f) Investments
existing on the date hereof of any Borrower in any Subsidiary of Borrower and future Investments of Borrower in any Subsidiary or Subsidiaries made in the ordinary course of business consistent with past practices and necessary for the operation of
such Subsidiary or Subsidiaries; 
 (g) Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to
customers and suppliers who are not Affiliates, in the ordinary course of business; provided that this paragraph (g) shall not apply to Investments of Borrower in any Subsidiary; 
 (h) Investments by Borrower in joint ventures so long as the aggregate amount of such Investments in any fiscal year does not exceed Two Hundred Fifty
Thousand Dollars ($250,000); and 
 (i) Investments consisting of stock, options or warrants received by Borrower in connection with the
business activities of Borrower. 
 “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 its Books, provided that no notice of any such Lien has been filed or recorded under the Internal Revenue Code of 1986, as amended, and the Treasury Regulations adopted thereunder; 
 (c) purchase money Liens existing on Equipment when acquired, if the Lien is confined to the property and improvements and the proceeds of the
Equipment; 
  

 -28- 

 (d) Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens
described in (a) through (c), but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness may not increase; 
 (e) 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; 
 (f) non-exclusive licenses of intellectual property granted to third parties in the ordinary course of business; 
 (g) Liens arising from attachments or judgments, orders, or decrees in circumstances not constituting an Event of Default under Sections 8.4 and 8.7;

 (h) Liens securing Permitted Indebtedness; 
 (i) statutory Liens of landlords and carriers’, warehouseman’s, mechanics’, materialmen’s, repairmen’s or other like Liens arising in the ordinary course of business which are not overdue for
a period of more than thirty (30) days or which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance
with GAAP; and 
 (j) pledges or deposits in the ordinary course of business in connection with workers’ compensation, unemployment
insurance and other social security legislation, other than any Lien arising under ERISA. 
 “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. 
 “Pledge Agreement” means each Stock Pledge Agreement executed by the Borrower in favor of Bank, dated as of the
Effective Date. 
 “Prime Rate” is Bank’s most recently announced “prime rate,” even if it is not Bank’s
lowest rate. 
 “Registered Organization” is any “registered organization” as defined in the Code with such
additions to such term as may hereafter be made. 
 “Reserves” means, effective as of two Business Days after the date of
written notice of any determination thereof to Borrower by Bank, such amounts as Bank may from time to time establish and revise in good faith reducing the amount of Advances, Letters of Credit and other financial accommodations which would
otherwise be available to Borrower under the lending formulas: (a) to reflect events, conditions, contingencies or risks not already taken into account in the calculation of the Availability Amount which, as determined by Bank in good faith, do
or may affect (i) the Collateral or any other property which is security for the Obligations or its value (including without limitation any increase in delinquencies of Accounts), (ii) the assets or business of Borrower, or (iii) the
security interests and other rights of Bank in the Collateral (including the enforceability, perfection and priority thereof); or (b) to reflect Bank’s good faith belief that any collateral report or financial information furnished by or
on behalf of Borrower to Bank is or may have been incomplete, inaccurate or misleading in any material respect; or (c) in respect of any state of facts which Bank determines in good faith constitutes an Event of Default or may, with notice or
passage of time or both, constitute an Event of Default. 
 “Responsible Officer” is any of the Chief Executive Officer,
President, Chief Financial Officer and Controller of Borrower. 
 “Revolving Line” is an Advance or Advances in an
aggregate amount of up to Ten Million Dollars ($10,000,000) outstanding at any time. 
 “Revolving Line Maturity
Date” is September     , 2013. 
  

 -29- 

 “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 Agreement, 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. 
 “Subordination Agreement” is any agreement, in form and substance acceptable to Bank in its sole discretion, as required by Bank in its
sole discretion, subordinating Subordinated Debt to the Bank. 
 “Subsidiary” means, with respect to any Person, any Person
of which more than 50% of the voting stock or other equity interests is owned or controlled, directly or indirectly, by such Person or one or more Affiliates of such Person. 
 “Term Loan” is a loan made by Bank pursuant to the terms of Section 2.1.5 hereof. 
 “Term Loan Amount” is an aggregate amount equal to Fifteen Million Dollars ($15,000,000) outstanding at any time. 
 “Term Loan Maturity Date” is the earliest of (a) September , 2013 or (b) the occurrence of an Event of Default. 
 “Term Loan Payment” is defined in Section 2.1.5(b). 
 “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. 
 “Transaction
Report” is the Bank’s standard reporting package provided by Bank directly to Borrower. 
 “Transfer” is
defined in Section 7.1. 
 “Unused Revolving Line Facility Fee” is defined in Section 2.4(d). 
 [Signature page follows.] 
  

 -30- 

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

			
	BORROWER:
	
	MEDIDATA SOLUTIONS, INC.
		
	By	 	 /s/ Bruce Dalziel

	Name:	 	 Bruce Dalziel

	Title:	 	 CFO

	
	MEDIDATA FT, INC.
		
	By	 	 /s/ Bruce Dalziel

	Name:	 	 Bruce Dalziel

	Title:	 	 CFO

	
	BANK:
	
	SILICON VALLEY BANK
		
	By	 	 /s/ Ryan Ravenscroft

	Name:	 	 Ryan Ravenscroft

	Title:	 	 VP

 Effective Date: September 10, 2008 
 [Signature Page to Loan and Security Agreement] 

 EXHIBIT A 
 The Collateral consists of all of Borrower’s right, title and interest in and to the following personal property: 
 (i) all goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, license agreements, franchise agreements, General Intangibles, commercial tort
claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities,
and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and 
 (ii) all Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements,
products, proceeds and insurance proceeds of any or all of the foregoing. 
 Notwithstanding the foregoing, the “Collateral” does
not include (x) more than 65% of the presently existing and hereafter arising issued and outstanding shares of capital stock owned by Borrower of any Foreign Subsidiary which shares entitle the holder thereof to vote for directors or any other
matter or (y) any personal property to the extent the granting of a security interest therein is expressly prohibited by applicable law, and in any event after giving effect to Sections 9-408 of Article 9 of the UCC as then in effect in any
relevant jurisdiction; provided, however, immediately upon the ineffectiveness, lapse or termination of any such provision, Borrower shall be deemed to have granted a security interest in, all of their right, title and interest in and
to such personal property of Borrower as if such provisions had never been in effect; and provided, further, the foregoing exclusion shall in no way be construed so as to limit, impair or otherwise affect Bank’s unconditional,
continuing security interest in and to all rights, title and interests of Borrower in or to any payment obligations or other rights to receive monies due or to become due under any such personal property. 

 EXHIBIT B 
 COMPLIANCE CERTIFICATE 
  

			
	TO: SILICON VALLEY BANK	 	Date:                     

 FROM: MEDIDATA SOLUTIONS, INC. and MEDIDATA FT, INC. 
 The undersigned authorized officer of Medidata Solutions, Inc. and Medidata FD, Inc. (individually and collectively, jointly and severally, the
“Borrower”) certifies that under the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”), (1) Borrower is in 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) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all federal, material foreign, state and local taxes, assessments, deposits and contributions owed by Borrower
except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement, and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries, if any, relating to unpaid employee payroll or benefits of
which Borrower has not previously provided written notification to Bank. Attached are the required documents supporting the certification. The undersigned certifies that these are prepared in accordance with generally 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 Borrower is not in compliance with any of the terms of the
Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement. 
 Please indicate compliance status by circling Yes/No under “Complies” column. 
  

					
	 Reporting Covenant
	  	 Required
	  	 Complies

	Monthly financial statements with Compliance Certificate	  	Monthly within 30 days	  	Yes No
	Quarterly financial statements	  	Quarterly within 45 days	  	Yes No
	Annual financial statement (CPA Audited) + CC	  	FYE within 150 days	  	Yes No
	10-Q, 10-K and 8-K	  	Within 5 days after filing with SEC	  	Yes No
	A/R & A/P Agings, Deferred Revenue Report	  	Monthly within 30 days	  	Yes No
	Projections	  	FYE within 45 days	  	Yes No

							
	
	Below is listed (i) any material change in the composition of the intellectual property, (ii) the registration of any copyright, including any subsequent ownership right of
Borrower in or to any copyright, patent or trademark not previously disclosed to Bank, or (iii) Borrower’s knowledge of an event that materially adversely affects the value of the intellectual property (if none, state “None”):

		
	  
	  	

  

									
	 Financial Covenant
	  	Required	  	Actual	  	 Complies

	 Maintain on a Quarterly Basis (unless noted otherwise):
	  			  			  	
	 Minimum Profitability
	  	$	            	  	$	            	  	Yes No
	 Minimum Liquidity (at all times, certified Monthly through and including 12/31/2009
	  	$	5,000,000	  	$	            	  	Yes No
	 Maximum Capital Expenditure (Trailing Twelve Months) Beginning on and after 09/30/2008
	  	$	12,000,000	  	$	            	  	Yes No
	 Minimum Fixed Charge Coverage Ratio (Trailing Twelve Months) Beginning on and after 12/31/2009
	  	 	1.25:1.00	  	 	            :1.00	  	Yes No

  

 1 

 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.”) 
  
  
  
  
  
  
  

									
	MEDIDATA SOLUTIONS, INC.	 		 	BANK USE ONLY
	MEDIDATA FT, INC.	 		 		 	
		 		 		 	Received by:	 	  

		 		 		 		 	AUTHORIZED SIGNER
	By:	 	  
	 		 	Date:	 	  

	Name:	 	  
	 		 		 	
	Title:	 	  
	 		 	Verified:	 	  

		 		 		 		 	AUTHORIZED SIGNER
		 		 		 	Date:	 	  

					
		 		 		 	Compliance Status:	 	Yes    No

  

 2 

 Schedule 1 to Compliance Certificate 
 Financial Covenants of Borrower 
 Dated:
                     
  

	I.	Profitability (Section 6.9(a)) 

 Required: A minimum
Net Income (loss) of at least (not more than) the following for each quarterly period indicated below: 
  

					
	 Quarterly Period Ended
	  	Minimum
Profitability	 
	 September 30, 2008
	  	$	(3,000,000	)
		
	 December 31, 2008 and March 31, 2009
	  	$	(1,000,000	)
		
	 June 30, 2009
	  	$	1.00	 
		
	 September 30, 2009, December 31, 2009 and March 31, 2010
	  	$	1,000,000	 
		
	 June 30, 2010, and each quarterly period of the Borrower thereafter
	  	$	3,000,000	 

 Actual: 
  

						
	 A.     Net Income
	  	$	            

 Is line A equal to or greater than
$            ? 
  

			
	              No, not in compliance
	 	              Yes, in compliance

  

 3 

	II.	Liquidity (Section 6.9(b)) 

 Required: From the
Effective Date through and including December 31, 2009, maintain at all times, certified to by Borrower on a monthly basis, Liquidity of at least Five Million Dollars ($5,000,000). 
 Actual: 
  

						
	A.	  	 Borrower’s unrestricted cash at Bank
	  	$	            
			
	 B.
	  	 Total net billed accounts receivable (from most recent balance sheet)
	  	$	            
			
	 C.
	  	 All outstanding Indebtedness owed by Borrower to Bank
	  	$	            
			
	 D.
	  	 LIQUIDITY (line A plus line B minus line C
	  	$	            

 Is line D equal to or greater than $5,000,000? 
  

			
	              No, not in compliance
	 	              Yes, in compliance

  

 1 

	III.	Capital Expenditures (Section 6.9(c)) 

 Required:
Beginning with the fiscal quarter ending September 30, 2008 and as of the last day of each fiscal quarter thereafter, Borrower’s Capital Expenditures for the trailing twelve month period ending on each testing date shall be equal to or
less than Twelve Million Dollars ($12,000,000). 
 Actual: 
  

						
	 A.
	  	 Capital Expenditures (for the trailing twelve months ending on the date of measurement)
	  	$	            

 Is line A less than or equal to $12,000,000? 
  

			
	              No, not in compliance
	 	              Yes, in compliance

  

 1 

	IV.	Fixed Charge Coverage Ratio (Section 6.9(d)) 

 Required: Beginning with the fiscal quarter ending December 31, 2009 and for each fiscal quarter of the Borrower thereafter, the Borrower shall maintain, to be tested quarterly, measured on a trailing four fiscal quarter basis (except
as noted below), a ratio of (i) EBITDA minus unfunded Capital Expenditures minus taxes actually paid in cash to (ii) the sum of Interest Expense plus the sum of all required scheduled payments of principal on
all Indebtedness of the Borrower owed to Bank plus all required scheduled payments of principal on all capital lease obligations of the Borrower of not less than 1.25 to 1.00. 
 Actual: 
  

						
	 A.
	  	 Net Income
	  	$	            
			
	 B.
	  	 Interest Expense
	  	$	            
			
	 C.
	  	 To the extent deducted in the calculation of Net Income, depreciation and amortization expense
	  	$	            
			
	 D.
	  	 Income tax expense
	  	$	            
			
	 E.
	  	 Non-cash stock compensation expense deducted from the calculation of Net Income
	  	$	            
			
	 F.
	  	 Non-recurring non-cash deductions from Net Income permitted by Bank
	  	$	            
			
	 G.
	  	 EBITDA (the sum of lines A through F)
	  	$	            
			
	 H.
	  	 Unfunded Capital Expenditures
	  	$	            
			
	 I.
	  	 Taxes actually paid in cash
	  	$	            
			
	 J.
	  	 Adjusted EBITDA (line G minus line H minus line I)
	  	$	            
			
	 K.
	  	 Interest Expense
	  	$	            
			
	 L.
	  	 Sum of all required scheduled payments of principal on all Indebtedness of the Borrower owed to Bank
	  	$	            
			
	 M.
	  	 All required scheduled payments of principal on all capital lease obligations of the Borrower
	  	$	            
			
	 N.
	  	 FIXED CHARGES (line K plus line L plus line M)
	  	$	            
			
	 O.
	  	 FIXED CHARGE COVERAGE RATIO (line J divided by line N, expressed as a ratio)
	  	 	            :1.00

 Is line O equal to or greater than 1.25:1.00? 
  

			
	              No, not in compliance
	 	              Yes, in compliance

 NOTE: For calculation of “Fixed Charges” on December 31, 2009, see Section 6.9(d) of the
Loan Agreement. 
 NOTE: If Borrower is not in compliance on December 31, 2009, see Section 2.1.5(b)(ii) of the Loan Agreement (and an Event
of Default shall exist). 
  

 1 

 Annex A 
 The following foreign-billed Account Debtors of the Borrower are pre-approved, provided that they are billed to the entities in Western Europe, Canada, Australia and Japan: 
  

	
	Astellas Pharma Inc.
	AstraZeneca UK Ltd.
	Axcan Pharma Inc.
	Barts Thrombosis Research Institute
	Baxter AG
	Bayer Healthcare AG
	CMIC / Taiho Pharma
	Covance/ThromboGenics
	CSL Limited
	Daiichi Pharmaceutical Co., Ltd.
	Eisai Co., Ltd.
	F-Hoffman-La Roche AG
	H. Lundbeck A/S
	Kirin Pharma Company, Limited
	Kissei Pharmaceutical Co., Ltd.
	NCIC Clinical Trials Group
	Orion Corporation
	University of Oxford

  

 - 2 -First Loan Modification Agreement

 Exhibit 10.12 
 FIRST LOAN MODIFICATION AGREEMENT 
 This First
Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of the First Loan Modification Effective Date, by and between (i) SILICON VALLEY BANK, a California corporation with its principal place
of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at One Newton Executive Park, Suite 200, 2221 Washington Street, Newton, Massachusetts 02462 (“Bank”), and
(ii) MEDIDATA SOLUTIONS, INC., a Delaware corporation with offices located at 79 Fifth Avenue, 8th Floor, New York, New York 10003
(“Solutions”) and MEDIDATA FT, INC. (formerly known as Fast Track Systems, Inc.), a California corporation with offices located at 20 Ash Street, Suite 330, Conshohocken, Pennsylvania 19428 (“FT”, and
together with Solutions, individually and collectively, the “Borrower”). 
 1. DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS.
Among other indebtedness and obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to a loan arrangement dated as of September 10, 2008, evidenced by, among other documents, a certain Loan and Security
Agreement dated as of September 10, 2008, between Borrower and Bank (as amended, the “Loan Agreement”). Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan Agreement. 

2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement (together with any other collateral
security granted to Bank, the “Security Documents”). 
 Hereinafter, the Security Documents, together with all other documents evidencing or
securing the Obligations shall be referred to as the “Existing Loan Documents”. 
 3. DESCRIPTION OF CHANGE IN TERMS. 
  

	 	A.	Modifications to Loan Agreement. 

  

	 	1	The Loan Agreement shall be amended by deleting the following, appearing as Section 6.2(a)(iii) thereof, in its entirety: 

 “(iii) as soon as available, and in any event within thirty (30) days after the end of each month, monthly unaudited financial statements”

 and inserting in lieu thereof the following: 
 “(iii) as soon as available, and in any event within thirty (30) days after the end of each month, monthly consolidated and consolidating unaudited financial statements;” 
  

	 	2	The Loan Agreement shall be amended by deleting the following, appearing as Section 6.2(a)(v) thereof, in its entirety: 

 “(v) as soon as available, and in any event within forty-five (45) days after the end of each fiscal quarter of Borrower, quarterly unaudited
financial statements;” 
 and inserting in lieu thereof the following: 
 “(v) as soon as available, and in any event within forty-five (45) days after the end of each fiscal quarter of Borrower, quarterly
consolidated and consolidating unaudited financial statements;” 

	 	3	The Loan Agreement shall be amended by deleting Section 6.9(a) in its entirety and replacing it with the following: 

 “(a) Profitability. A minimum Net Income (loss) of at least (not more than) the following for each quarterly period indicated below:

  

				
	 Quarterly Period Ended
	  	Minimum Profitability
	 December 31, 2008 and March 31, 2009
	  	$	(2,500,000) 
	 June 30, 2009
	  	$	(1,500,000) 
	 September 30, 2009
	  	$	1.00  
	 December 31, 2009 and March 31, 2010
	  	$	1,750,000  
	 June 30, 2010, and each quarterly period of the Borrower thereafter
	  	$	3,000,000”

  

	 	4	The Loan Agreement shall be amended by deleting the following definition appearing in Section 13.1 thereof, in its entirety: 

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

and inserting in lieu thereof the following: 
 “Prime Rate” is the greater of (a) four and one-half percent (4.50%) per annum, and (b) Bank’s most recently announced “prime rate,” even if it is not Bank’s lowest rate.” 

 

	 	5	The Loan Agreement shall be amended by inserting the following definitions in Section 13.1 thereof, each in its appropriate alphabetical order: 

 “First Loan Modification Agreement” means that certain First Loan Modification Agreement, executed by Borrower and Bank, dated as of the
First Loan Modification Effective Date.” 
 “First Loan Modification Effective Date” is the date indicated on the
signature page to the First Loan Modification Agreement.” 
  

	 	6	The Compliance Certificate appearing as Exhibit B to the Loan Agreement is hereby replaced with the Compliance Certificate attached as Exhibit A hereto.

 4. FEES. Borrower shall pay to Bank a modification fee equal to Fifty Thousand Dollars ($50,000), which fee shall be due on the date
hereof and shall be deemed fully earned as of the date hereof. Borrower shall also reimburse Bank for all legal fees and expenses incurred in connection with this amendment to the Existing Loan Documents. 
 5. RATIFICATION OF INTELLECTUAL PROPERTY SECURITY AGREEMENT. Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and conditions of a
certain Intellectual Property Security Agreement dated as of September 10, 2008 between Solutions and Bank, and acknowledges, confirms and agrees that said Intellectual Property Security Agreement contains an accurate and complete listing of
all Intellectual Property Collateral as defined in said Intellectual Property Security Agreement, shall remain in full force and effect. Notwithstanding the terms and conditions of the Intellectual Property Security Agreement, the Borrower shall not
register any Copyrights or Mask Works in the United States Copyright Office unless it: (i) has given at least fifteen (15) days’ prior-written notice to Bank of its intent to register such Copyrights or Mask Works and has provided
Bank with a copy of the application it intends to file with the United States Copyright Office (excluding exhibits thereto); (ii) executes a security agreement or such other documents as Bank may reasonably request in order to 

  

 2 

 
maintain the perfection and priority of Bank’s security interest in the Copyrights proposed to be registered with the United States Copyright Office;
and (iii) records such security documents with the United States Copyright Office contemporaneously with filing the Copyright application(s) with the United States Copyright Office. Borrower shall promptly provide to Bank a copy of the
Copyright application(s) filed with the United States Copyright Office, together with evidence of the recording of the security documents necessary for Bank to maintain the perfection and priority of its security interest in such Copyrights or Mask
Works. Borrower shall provide written notice to Bank of any application filed by Borrower in the United States Patent Trademark Office for a patent or to register a trademark or service mark within thirty (30) days of any such filing.

 6. ADDITIONAL COVENANTS: RATIFICATION OF PERFECTION CERTIFICATE. Borrower is not a party to, nor is bound by, any license or other agreement with
respect to which Borrower is the licensee (a) that prohibits or otherwise restricts Borrower from granting a security interest in Borrower’s interest in such license or agreement or any other property, or (b) for which a default under
or termination of could interfere with the Bank’s right to sell any Collateral. Borrower shall provide written notice to Bank within ten (10) days of entering or becoming bound by any such license or agreement (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 (x) 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, and (y) Bank to have the ability in the event of a liquidation of
any Collateral to dispose of such Collateral in accordance with Bank’s rights and remedies under the Loan Agreement and the other Loan Documents. In addition, the Borrower hereby certifies that no Collateral is in the possession of any third
party bailee (such as at a warehouse). In the event that Borrower, after the date hereof, intends to store or otherwise deliver the Collateral to such a bailee, then Borrower shall first receive, the prior written consent of Bank and such bailee
must acknowledge in writing that the bailee is holding such Collateral for the benefit of Bank. Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Perfection Certificate dated as of
September 10, 2008 between Borrower and Bank, and acknowledges, confirms and agrees the disclosures and information above Borrower provided to Bank in the Perfection Certificate has not changed, as of the date hereof. 
 7. AUTHORIZATION TO FILE. Borrower hereby authorizes Bank to file UCC financing statements without notice to Borrower, with all appropriate jurisdictions, as Bank
deems appropriate, in order to further perfect or protect Bank’s interest in the Collateral, including a notice that any disposition of the Collateral, by either the Borrower or any other Person, shall be deemed to violate the rights of the
Bank under the Code. 
 8. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described
above. 
 9. RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and conditions of all security or other
collateral granted to the Bank, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations. 
 10. NO DEFENSES OF
BORROWER. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses,
claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and Borrower hereby RELEASES Bank from any liability thereunder. 
 11. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing Obligations, Bank is relying upon Borrower’s representations,
warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force and effect. Bank’s
agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the Obligations. Nothing in this Loan Modification Agreement shall constitute a
satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly released by Bank in writing. No maker will be released by virtue of this Loan
Modification Agreement. 
  

 3 

 12. RIGHT OF SET-OFF. In consideration of Bank’s agreement to enter into this Loan Modification Agreement,
Borrower hereby reaffirms and 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 Silicon Valley 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 loan. 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. 
 13. JURISDICTION/VENUE. Borrower accepts for itself and in
connection with its properties, unconditionally, the exclusive jurisdiction of any state or federal court of competent jurisdiction in the State of New York in any action, suit, or proceeding of any kind against it which arises out of or by reason
of this Loan Modification Agreement. NOTWITHSTANDING THE FOREGOING, THE BANK SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST THE BORROWER OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION WHICH THE BANK DEEMS NECESSARY OR
APPROPRIATE IN ORDER TO REALIZE ON THE COLLATERAL OR TO OTHERWISE ENFORCE THE BANK’S RIGHTS AGAINST THE BORROWER OR ITS PROPERTY. 
 14.
COUNTERSIGNATURE. This Loan Modification Agreement shall become effective only when it shall have been executed by Borrower and Bank. 
 [The remainder of this page is intentionally left blank] 
  

 4 

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

			
	BORROWER:
	
	MEDIDATA SOLUTIONS, INC.
		
	By	 	 /s/ Bruce Dalziel

	Name:	 	 Bruce Dalziel

	Title:	 	 EVP and CFO

	
	MEDIDATA FT, INC.
		
	By	 	 /s/ Bruce Dalziel

	Name:	 	 Bruce Dalziel

	Title:	 	 EVP and CFO

	
	BANK:
	
	SILICON VALLEY BANK
		
	By	 	 /s/ Ryan Ravenscroft

	Name:	 	 Ryan Ravenscroft

	Title:	 	 VP

 First Loan Modification Effective Date: December 31, 2008 
  

 5 

 EXHIBIT A 
 EXHIBIT B 
 COMPLIANCE CERTIFICATE 
  

					
	TO:	  	SILICON VALLEY BANK	  	Date:                     
	FROM:	  	MEDIDATA SOLUTIONS, INC. and MEDIDATA FT, INC.	  	

 The undersigned authorized officer of Medidata Solutions, Inc. and Medidata FT, Inc. (individually and
collectively, jointly and severally, the “Borrower”) certifies that under the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”), (1) Borrower is in 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) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all federal, material foreign, state and local
taxes, assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement, and (5) no Liens have been levied or claims made against Borrower or any of its
Subsidiaries, if any, relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Bank. Attached are the required documents supporting the certification. The undersigned certifies that these
are prepared in accordance with generally 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 Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not otherwise defined herein shall have the
meanings given them in the Agreement. 
 Please indicate compliance status by circling Yes/No under “Complies” column. 
  

					
	 Reporting Covenant
	  	 Required
	  	 Complies

	Monthly consolidated and consolidating financial statements with Compliance Certificate	  	Monthly within 30 days	  	Yes    No
			
	Quarterly consolidated and consolidating financial statements	  	Quarterly within 45 days	  	Yes    No
			
	Annual financial statement (CPA Audited) + CC	  	FYE within 150 days	  	Yes    No
			
	10-Q, 10-K and 8-K	  	Within 5 days after filing with SEC	  	Yes    No
			
	A/R & A/P Agings, Deferred Revenue Report	  	Monthly within 30 days	  	Yes    No
			
	Projections	  	FYE within 45 days	  	Yes    No
	
	 Below is listed (i) any material change in the composition of the intellectual property, (ii) the registration of any
copyright, including any subsequent ownership right of Borrower in or to any copyright, patent or trademark not previously disclosed to Bank, or (iii) Borrower’s knowledge of an event that materially adversely affects the value of the
intellectual property (if none, state “None”):
  
 _____________________________________________                                
                                         
                           

  

									
	 Financial Covenant
	  	Required	  	Actual	  	Complies
	 Maintain on a Quarterly Basis (unless noted otherwise):
	  			  			  	
	 Minimum Profitability
	  	$	            	  	$	            	  	Yes    No
	 Minimum Liquidity (at all times, certified Monthly through and including 12/31/2009
	  	$	5,000,000	  	$	            	  	Yes    No
	 Maximum Capital Expenditure (Trailing Twelve Months)
 Beginning on and after 09/30/2008
	  	$	12,000,000	  	$	            	  	Yes    No
	 Minimum Fixed Charge Coverage Ratio (Trailing Twelve Months) Beginning on and after 12/31/2009
	  	 	1.25:1.00	  	 	            :1.00	  	Yes    No

  

 6 

 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.”) 
  
  
  
  
  
  
  

							
	 MEDIDATA SOLUTIONS, INC.
 MEDIDATA FT, INC.
	    	BANK USE ONLY
	    
		 		    	Received by:	 	  

		 		    		 	AUTHORIZED SIGNER
	By:	 	  
	    	Date:	 	  

	Name:	 	  
	    		 	
	Title:	 	  
	    	Verified:	 	  

		 		    		 	AUTHORIZED SIGNER
		 		    	Date:	 	  

			
		 		    	Compliance Status:             Yes     No

  

 7 

 Schedule 1 to Compliance Certificate 
 Financial Covenants of Borrower 
 Dated:
                     
  

	I.	Profitability (Section 6.9(a)) 

 Required: A minimum Net Income
(loss) of at least (not more than) the following for each quarterly period indicated below: 
  

				
	 Quarterly Period Ended
	  	Minimum Profitability
	 December 31, 2008 and March 31, 2009
	  	$	(2,500,000) 
		
	 June 30, 2009
	  	$	(1,500,000) 
		
	 September 30, 2009
	  	$	1.00  
		
	 December 31, 2009 and March 31, 2010
	  	$	1,750,000  
		
	 June 30, 2010, and each quarterly period of the Borrower thereafter
	  	$	3,000,000”

 Actual: 
  

						
	 A.
	  	Net Income	  	$	            

 Is line A equal to or greater than $            ?

  

			
	             No, not in compliance	  	             Yes, in compliance

  

 8 

	II.	Liquidity (Section 6.9(b)) 

 Required: From the
Effective Date through and including December 31, 2009, maintain at all times, certified to by Borrower on a monthly basis, Liquidity of at least Five Million Dollars ($5,000,000). 
 Actual: 
  

						
	 A.
	  	 Borrower’s unrestricted cash at Bank
	  	$	            
			
	 B.
	  	 Total net billed accounts receivable (from most recent balance sheet)
	  	$	            
			
	 C.
	  	 All outstanding Indebtedness owed by Borrower to Bank
	  	$	            
			
	 D.
	  	 LIQUIDITY (line A plus line B minus line C
	  	$	            

 Is line D equal to or greater than $5,000,000? 
  

			
	             No, not in compliance	  	             Yes, in compliance

  

 1 

	III.	Capital Expenditures (Section 6.9(c)) 

 Required:
Beginning with the fiscal quarter ending September 30, 2008 and as of the last day of each fiscal quarter thereafter, Borrower’s Capital Expenditures for the trailing twelve month period ending on each testing date shall be equal to or
less than Twelve Million Dollars ($12,000,000). 
 Actual: 
  

					
	A.	  	Capital Expenditures (for the trailing twelve months ending on the date of measurement)	  	$            

 Is line A less than or equal to $12,000,000? 
  

			
	             No, not in compliance	  	             Yes, in compliance

  

 1 

	IV.	Fixed Charge Coverage Ratio (Section 6.9(d)) 

 Required: Beginning with the fiscal quarter ending December 31, 2009 and for each fiscal quarter of the Borrower thereafter, the Borrower shall maintain, to be tested quarterly, measured on a trailing four fiscal quarter basis (except
as noted below), a ratio of (i) EBITDA minus unfunded Capital Expenditures minus taxes actually paid in cash to (ii) the sum of Interest Expense plus the sum of all required scheduled payments of principal on
all Indebtedness of the Borrower owed to Bank plus all required scheduled payments of principal on all capital lease obligations of the Borrower of not less than 1.25 to 1.00. 
 Actual: 
  

					
	 A.
	  	Net Income	  	$            
			
	 B.
	  	Interest Expense	  	$            
			
	 C.
	  	To the extent deducted in the calculation of Net Income, depreciation and amortization expense	  	$            
			
	 D.
	  	Income tax expense	  	$            
			
	 E.
	  	Non-cash stock compensation expense deducted from the calculation of Net Income	  	$            
			
	 F.
	  	Non-recurring non-cash deductions from Net Income permitted by Bank	  	$            
			
	 G.
	  	EBITDA (the sum of lines A through F)	  	$            
			
	 H.
	  	Unfunded Capital Expenditures	  	$            
			
	 I.
	  	Taxes actually paid in cash	  	$            
			
	 J.
	  	Adjusted EBITDA (line G minus line H minus line I)	  	$            
			
	 K.
	  	Interest Expense	  	$            
			
	 L.
	  	Sum of all required scheduled payments of principal on all Indebtedness of the Borrower owed to Bank	  	$            
			
	 M.
	  	All required scheduled payments of principal on all capital lease obligations of the Borrower	  	$            
			
	 N.
	  	FIXED CHARGES (line K plus line L plus line M)	  	$            
			
	 O.
	  	FIXED CHARGE COVERAGE RATIO (line J divided by line N, expressed as a ratio)	  	            :1.00

 Is line O equal to or greater than 1.25:1.00? 
  

			
	             No, not in compliance	  	             Yes, in compliance

 NOTE: For calculation of “Fixed Charges” on December 31, 2009, see Section 6.9(d) of the
Loan Agreement. 
 NOTE: If Borrower is not in compliance on December 31, 2009, see Section 2.1.5(b)(ii) of the Loan Agreement (and an Event
of Default shall exist). 
  

 2

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