Document:

RBC Loan and Security Agreement

 Exhibit 10.26 
  
 Customer No.                     

 Loan No.                      
  

			
	RBC Centura	  	 LOAN AND SECURITY AGREEMENT
 (SD-L&S)

  
 This LOAN AND SECURITY
AGREEMENT (“Agreement”) is entered into as of the 1st day of February, 2005, by and between RBC CENTURA BANK (“Bank”) and ETRIALS WORLDWIDE, INC., a Delaware corporation (“Borrower”). 
  
 RECITALS 
  
 Borrower wishes to obtain credit from time to time from Bank, and Bank desires to extend credit to Borrower for use by
Borrower in its business. This Agreement sets forth the terms and conditions on which Bank will advance credit to Borrower. 
  
 AGREEMENT 
  

	 	The	parties agree as follows: 

  

	 	1.	DEFINITIONS AND INTERPRETATION. 

  
 1.1 Definitions. Capitalized terms used herein and not defined in the specific section in which they are used shall have the
meanings assigned to such terms in Exhibit A. Terms not defined in a specific section or in Exhibit A which are defined in the Code shall have the meanings assigned to such terms in the Code. 
  
 1.2 Accounting Terms. All accounting terms not
specifically defined in Exhibit A shall be construed in accordance with GAAP and all calculations shall be made in accordance with GAAP. The term “financial statements” shall include the accompanying notes and schedules. 

 
 1.3 Use and Application of Terms. To the end of
achieving the full realization by Bank of its rights and remedies under this Agreement, including payment in full of the Obligations, in using and applying the various terms, provisions and conditions in this Agreement, the following shall apply:
(i) the terms “hereby”, “hereof”, “herein”, “hereunder” and any similar words refer to this Agreement; (ii) words in the masculine gender mean and include correlative words of the feminine and neuter
genders and words importing the singular numbered meaning include the plural number, and vice versa; (iii) words importing persons include firms, companies, associations, general partnerships, limited partnerships, limited liability
partnerships, limited liability limited partnerships, limited liability companies, trusts, business trusts, corporations and other registered or legal organizations, including public and quasi-public bodies, as well as individuals; (iv) the use
of the terms “including” or “included in”, or the use of examples generally, are not intended to be limiting, but shall mean, without limitation, the examples provided and others that are not listed, whether similar or
dissimilar; (v) the phrase “costs and expenses”, or variations thereof, shall include, without limitation, the reasonable fees of the following persons: attorneys, legal assistants, accountants, engineers, surveyors, appraisers and
other professionals and service providers; (vi) as the context requires, the word “and” may have a joint meaning or a several meaning and the word “or” may have an inclusive meaning or an exclusive meaning; (vii) this
Agreement shall not be applied, interpreted and construed more strictly against a person because that person or that person’s attorney drafted this Agreement; and (viii) wherever possible each provision of this Agreement and the other Loan
Documents shall be interpreted and applied in such manner as to be effective and valid under applicable Requirements of Law, but if any provision of this Agreement or any of the other Loan Documents shall be prohibited or invalid under such law, or
the application thereof shall be prohibited or invalid under such law, such provision shall be ineffective to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions, or the
application thereof shall be in a manner and to an extent permissible under applicable Requirements of Law. 

	 	2.	CREDIT EXTENSIONS. 

  
 2.1 Credit Extensions. Subject to and upon the terms and conditions of this Agreement and provided that no Event of Default has
occurred and is continuing, Bank shall make available to Borrower the following Credit Facilities and Credit Extensions thereunder: Revolving Facility and Equipment Facility. The Credit Facilities and related Credit Extensions which are to be made
available to Borrower are more fully described below in this Section 2.1 and unless otherwise provided in this Agreement, the Credit Facilities and related Credit Extensions shall be evidenced by one or more Promissory Notes from Borrower to
Bank and the Credit Extensions shall bear interest, and the Credit Extensions, the interest and the fees, charges, premiums and costs and expenses associated therewith, shall be repayable in accordance with the terms of such Promissory Notes and
this Agreement. 
  
 (a) Revolving
Facility. At any time from the date hereof through the Revolving Maturity Date, Borrower may request and Bank agrees to make advances (“Advance” or “Advances”) to Borrower for use in its business – and not for any other
purpose. Borrower may request no more than two (2) Advances in a calendar month and the aggregate amount of outstanding Advances shall not exceed at any time the lesser of (A) the Committed Revolving Line or (B) the Borrowing Base. If
no Event of Default has occurred and is continuing, amounts borrowed under the Revolving Facility may be repaid and reborrowed at any time prior to the Revolving Maturity Date. 
  
 (b) Equipment Facility. Subject to the terms of the Equipment Note, Borrower may request and Bank
agrees to make advances (“Equipment Advance” or “Equipment Advances”) to Borrower for use by Borrower in purchasing Equipment and Software Products for use in its business – and for no other purpose. The aggregate amount of
Equipment Advances shall not exceed the Equipment Line; and, Equipment Advances, once repaid, may not be reborrowed. Each Equipment Advance shall be equal to or less than one hundred percent (100%) of the Invoice Amount of the Equipment or
Software Products being purchased, excluding taxes, shipping, warranty charges, freight discounts and installation expense; and financing for Equipment reasonably deemed by Bank to be leasehold improvements and Software Products shall be limited to
Forty Five Thousand Dollars ($45,000.00) in the aggregate. No Equipment Advances shall be made for any Equipment or Software Products purchased more than ninety (90) days prior to the date of Bank’s receipt of a request for an Equipment
Advance with respect to such purchase. 
  
 2.2
Credit Extensions – Disbursements. Whenever Borrower desires an Advance or an Equipment Advance, Borrower shall notify Bank (which notice shall be irrevocable) by facsimile transmission or telephone no later than 10:00 a.m. eastern time,
on the Business Day on which Borrower desires the Advance or the Equipment Advance to be made. Each notification by facsimile transmission shall include the information requested on the form attached as Exhibit B, shall be submitted
substantially in the form of Exhibit B and shall be signed by a Responsible Officer or a designee thereof. Each notification by telephone shall include the information requested on the form attached as Exhibit B and each notification
by telephone shall be followed within one Business Day by a facsimile transmission which meets the criteria regarding a facsimile transmission. Bank shall be entitled to rely on any telephonic notice given by a person who Bank reasonably believes to
be a Responsible Officer or a designee thereof. Bank shall not have any liability to Borrower or any other person for its failure to make an Advance or Equipment Advance on the date requested by Borrower, unless such failure is the result of willful
misconduct or gross negligence of Bank; and if Bank’s failure is a result of willful misconduct or gross negligence, its liability shall be limited to actual damages only – Bank shall not be liable for indirect, speculative, consequential
or punitive damages and losses. If Borrower maintains its operating deposit account with Bank, Bank will credit the amount of the Advances and Equipment Advances to such account; and with respect to Equipment Advances, at its election, Bank may
remit the amount of any Equipment Advance directly to the seller of the Equipment and the seller of the Software Products as shown on the invoice submitted with the request for the Equipment Advance. If Bank remits the amount of any Equipment
Advance directly to the seller, Bank shall use reasonable efforts to notify Borrower before it makes the remittance. If Borrower does not maintain its operating deposit account with Bank, Bank will issue to Borrower for deposit in its operating
deposit account a bank check or other negotiable instrument drawn on Bank in the amount of the Advances and Equipment Advances; subject, however, to Bank’s rights relative to an Equipment Advance as provided in the preceding sentence.

  
 2.3 Overadvances. If, at any time, the
aggregate amount of the outstanding principal under any Credit Extension exceeds the maximum amount that is permitted to be outstanding at any one time, as provided in this Section 2, the Borrower shall immediately pay to Bank, in cash, the
amount of such excess. 
  

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 2.4 Charging of Payments. Bank may, at its option, set-off and apply to the
Obligations and otherwise exercise its rights of recoupment as to any and all (i) balances and deposits of Borrower held by Bank, (ii) indebtedness and other obligations at any time owing to or for the credit or the account of Borrower by
Bank and by any of Bank’s Affiliates. Bank may, at its option, also charge all payments required to be made on any of the Obligations against the Committed Revolving Line. If Bank charges the aforementioned payments against the Committed
Revolving Line, the same shall be deemed an Advance thereunder and the amount of the Advance shall thereafter accrue interest at the interest rate applicable from time to time to Advances; and if Bank charges payments as aforesaid, Bank may, in its
discretion, limit, declare a moratorium on and terminate Borrower’s right under this Agreement to receive additional Advances, all without prior notice to Borrower, unless notice is otherwise specifically required under this Agreement –
and Bank’s decision to do one of the foregoing does not prevent it from later doing any one or more of the others. 
  
 2.5 Fees. In addition to the other fees, charges, costs and expenses required to be paid by Borrower under this Agreement and the
other Loan Documents, Borrower shall pay to Bank the fees, charges, costs and expenses set forth in this Section 2.5. 
  
 (a) Facility Fee. Borrower has previously paid to Bank a facility fee of Nine Thousand Dollars ($9,000.00) for the commitment made
in Section 2.1, which fee is nonrefundable. 
  
 (b) Bank Expenses. On the Closing Date, Borrower shall pay to Bank all Bank Expenses incurred through the Closing Date and shall pay, as and when demand is so made by Bank to Borrower, all Bank Expenses incurred relating to
completion, after the Closing Date, of matters related to closing of this Agreement. Borrower shall be responsible for its own fees and expenses, including its legal fees. 
  
 2.6 Documentary and Intangible Taxes; Additional Costs. To the extent not prohibited by law and
notwithstanding who is liable for payment of the taxes and fees, Borrower shall pay, on Bank’s demand, all intangible personal property taxes, documentary stamp taxes, excise taxes and other similar taxes assessed, charged and required to be
paid in connection with the Credit Extensions and any extension, renewal and modification thereof, or assessed, charged and required to be paid in connection with this Agreement, any of the other Loan Documents and any extension, renewal and
modification of any of the foregoing. If, with respect to this Agreement or the transactions hereunder, any Requirement of Law (i) subjects Bank to any tax (except federal, state and local income taxes on the overall net income of Bank),
(ii) imposes, modifies and deems applicable any deposit insurance, reserve, special deposit or similar requirement against assets held by, or deposits in, or loans by Bank, or (iii) imposes upon Bank any other condition, and the result of
any of the foregoing is to increase the cost to Bank, reduce the income receivable by Bank or impose any expense upon Bank with respect to the Obligations, Borrower agrees to pay to Bank the amount of such increase in cost, reduction in income or
additional expense within thirty (30) days following presentation by Bank of a statement of the amount and setting forth Bank’s calculation thereof, all in reasonable detail, which statement shall be deemed true and correct absent manifest
error. 
  
 2.7 Term of Agreement. This
Agreement shall become effective on the Closing Date and shall continue in full force and effect until the last to occur of (i) payment in full of all of the Obligations or (ii) termination of Bank’s obligation to make Credit
Extensions under this Agreement. Notwithstanding the foregoing, Bank shall have the right to limit, declare a moratorium on and terminate its obligation to make Credit Extensions under this Agreement immediately and without notice upon the
occurrence and during the continuance of an Event of Default; and such action by Bank shall not constitute a termination of this Agreement, shall not constitute a termination of Borrower’s obligations under this Agreement and the other Loan
Documents and shall not adversely affect or impair Bank’s security interests in the Collateral. Bank’s decision to do any one of the foregoing (i.e., limit, declare a moratorium and terminate its obligations to make Credit Extensions)
shall not prevent it from exercising any one or more of the other options available to it at any other time. 
  

	 	3.	CONDITIONS OF CREDIT EXTENSIONS. 

  
 3.1 Conditions Precedent to Initial Credit Extension. The obligation of Bank to make the initial Credit Extension is subject to the
condition precedent that all of the conditions and requirements set forth in this Section 3.1 and Section 3.2 have been satisfied and completed, or the satisfaction and completion thereof waived by Bank. If all of the conditions are not
met to Bank’s satisfaction, or the completion thereof waived by Bank, Bank may, at its option, (i) withhold disbursement until the same are met, (ii) close and require that any 

  

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unsatisfied conditions be satisfied as a condition subsequent to closing within such period of time as may be designated by the Bank or (iii) terminate
its obligation to make any Credit Extension and recover from Borrower all Bank Expenses incurred by Bank in connection with its preparations for making the Credit Extensions, together with the fees and other costs and expenses required to be paid by
Borrower under the Commitment. A waiver by Bank of a condition must be in writing to be effective and a waiver as to one or more conditions shall not constitute a waiver as to other conditions and shall not establish a “course of dealing or
practice” that would require a waiver of the same or a similar condition at some later time. 
  
 (a) Loan Documents, etc. Bank shall have received an original of this Agreement, duly executed by Borrower and any other persons
who are parties hereto, and all of the information, certifications, certificates, authorizations, consents, approvals, title and other insurance policies and commitments, financial statements, financing statements, agreements, documents and records
listed on the Closing Memorandum and Checklist as items to be received, reviewed, completed, executed, recorded, filed and satisfied prior to Bank making the initial Credit Extension, and such other information, agreements, documents and records as
Bank and its counsel may deem reasonably necessary or appropriate. 
  
 (b) Payment of Fees. Bank shall have received payment of the fees and Bank Expenses then due, as specified in Section 2. 
  
 (c) No Event of Default. No Event of Default shall have occurred and be continuing as of the Closing
Date, or after giving effect to the initial Credit Extension to be made at or immediately after closing. 
  
 (d) Additional Matters. All other legal and non-legal matters as Bank or its counsel deem reasonably necessary or appropriate to be
satisfied, completed and received prior to the initial Credit Extension shall be satisfied, completed and received in form and substance satisfactory to the Bank and its counsel; and Bank’s counsel shall have received duly executed counterpart
originals, or certified or other such copies of all records as such counsel may reasonably request. 
  
 3.2 Conditions Precedent to All Credit Extensions. The obligation of Bank to make each Credit Extension, including the initial
Credit Extension, is further subject to all of the conditions and requirements set forth in this Section 3.2 being satisfied and completed, or the satisfaction and completion thereof waived by Bank. 
  
 (a) Loan Payment/Advance Request Form. Bank shall
have received, as and when required, a completed Loan Payment/Advance Request Form in the form of Exhibit B attached hereto. 
  
 (b) Representations and Warranties; No Event of Default. The representations and warranties referenced in Section 5 and in the
other Loan Documents shall be true and correct on and as of the date of such Loan Payment/Advance Request Form and on the effective date of each Credit Extension as though made at and as of each such date, and no Event of Default shall have occurred
and be continuing, or would exist after giving effect to such Credit Extension (provided, however, that those representations and warranties expressly referring to another date shall be true, correct and complete as of such date). The making of each
Credit Extension shall be deemed to be a representation and warranty by Borrower on the date of such Credit Extension as to the accuracy of the facts referred to in this subsection. 
  
 (c) Audit of Collateral. In the case of any Advances under the Revolving Facility, at Bank’s
election, the Bank shall have received and conducted an audit of the Collateral (including, without limitation, Borrower’s Accounts) which, in the absence of an Event of Default, shall not occur more than once per year, and the results of which
shall be satisfactory to the Bank, provided that the expense to Borrower for each such audit will not exceed Five Thousand Dollars ($5,000.00). 
  

	 	4.	CREATION OF SECURITY INTEREST. 

  
 4.1 Grant of Security Interest. Borrower grants and pledges to Bank a continuing security interest in all presently existing and
hereafter acquired or arising Collateral to secure the prompt repayment of any and all Obligations and to secure the prompt performance by Borrower of each of its covenants, duties and 

  

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obligations under the Loan Documents. Except as set forth in the Schedule, such security interest constitutes a valid, first priority security interest in
the presently existing Collateral, and will constitute a valid, first priority security interest in Collateral acquired or arising after the date hereof. Notwithstanding any limitation of, moratorium on or termination of Bank’s obligation to
make Credit Extensions under this Agreement, Bank’s security interest on the Collateral shall remain in full force and effect for so long as any Obligations are outstanding. 
  
 4.2 Delivery of Additional Documentation Required. Borrower shall from time to time execute and
deliver to Bank, at the request of Bank, all Negotiable Collateral, all Financing Statements and other documents and records that Bank may request, in form and substance satisfactory to Bank and its counsel, to perfect and continue perfected
Bank’s security interests in the Collateral and in order to fully consummate all of the transactions contemplated under the Loan Documents. Borrower hereby consents to the filing by Bank of Financing Statements and such other instruments and
documents in any jurisdictions or locations deemed advisable or necessary in Bank’s discretion to preserve, protect and perfect Bank’s security interest and rights in the Collateral. Borrower further consents to and ratifies the filing of
such Financing Statements and other instruments and documents prior to the Closing Date. If Borrower has executed and delivered to Bank a separate security agreement or agreements in connection with any or all of the Obligations, that security
agreement or those security agreements and the security interests created therein shall be in addition to and not in substitution of this Agreement and the security interests created hereby, and this Agreement shall be in addition to and not in
substitution of the other security agreement or agreements and the security interests created thereby. In all cases this Agreement and the aforesaid security agreement or agreements, as well as all other evidences or records of any and all of the
Obligations and agreements of Borrower, Bank and other persons who may be obligated on any of the Obligations, shall be applied and enforced in harmony with and in conjunction with each other to the end that Bank realizes fully upon its rights and
remedies in each and the Liens created by each; and, to the extent conflicts exist between this Agreement and the other security agreements and records, they shall be resolved in favor of Bank for the purpose of achieving the full realization of
Bank’s rights and remedies thereunder and the Liens as aforesaid. 
  
 4.3 Power of Attorney. Borrower does hereby irrevocably constitute and appoint Bank its true and lawful attorney with full power of substitution, for it and in its name, place and stead, to execute, deliver and
file such agreements, documents, notices, statements and records, to include, without limitation, Financing Statements, and to do or undertake such other acts as Bank, in its sole discretion, deems necessary or advisable to effect the terms and
conditions of this Agreement, the other Loan Documents and to otherwise preserve, protect and perfect the security of the security interest in the Collateral. The foregoing appointment is and the same shall be coupled with an interest in favor of
Bank. Notwithstanding the foregoing present grant of a power of attorney by Borrower to Bank, except as otherwise provided in this Agreement and except with respect to filing of Financing Statements and other actions Bank deems necessary or
appropriate to preserve, protect, and perfect or continue the perfection of its security interests in the Collateral, Bank shall not exercise the rights granted to it under this Section 4.3 until after the occurrence of an Event of Default, or
the occurrence of an event which, upon the giving of any required notice or the lapse of any required period of time, would be an Event of Default. 
  
 4.4 Right to Inspect and Audit. Bank (through any of its officers, employees, agents or other persons designated by Bank) shall
have the right, upon reasonable prior notice, from time to time during Borrower’s usual business hours, to inspect Borrower’s Books and to make copies thereof and to inspect, check, test, audit and appraise the Collateral and
Borrower’s business affairs (in the absence of an Event of Default, such audits not to occur more often than once per year) in order to verify Borrower’s financial condition or the amount, condition of, or any other matter relating to the
Collateral and Borrower’s compliance with the terms and conditions of this Agreement and the other Loan Documents, provided that the expense to Borrower for each such audit will not exceed Five Thousand Dollars ($5,000.00). Borrower shall
permit representatives of Bank to discuss the business, operations, properties and financial and other conditions of Borrower with its officers, board members, executives, managers, members, partners, employees, agents, independent certified public
accountants and others, as applicable. Notwithstanding the foregoing provisions of this Section 4.4, Bank shall not be required to give prior notice or limit its inspections to normal business hours if it deems an emergency or other
extraordinary situation to exist with respect to the Collateral, Borrower’s Books and its other rights hereunder. 
  
 4.5 Collection of Accounts. In addition to its other rights and remedies in this Agreement, Bank shall have the rights and remedies
set forth in this Section 4.5, all of which may be exercised by Bank upon the occurrence of an Event of Default, or the occurrence of an event which, upon the giving of any required notice or the lapse of any required period of time, would be
an Event of Default. 
  

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 (a) Bank is authorized and empowered at any time in its sole discretion (i) to
require Borrower to notify, or itself to notify, either in its own name or in the name of Borrower, all or any of the Borrower’s account debtors, and any other person obligated to Borrower, that Borrower’s Accounts have been assigned to
Bank and to request in its name, in the name of Borrower or in the name of a third person, confirmation from any such account debtor or other person of the amount payable and any other matter stated therein or relating thereto, (ii) to demand,
collect, settle, compromise for, recover payment of, to hold as additional security for the Obligations and to apply against the Obligations any and all sums which are now owing and which may hereafter arise and become due and owing upon any of said
Accounts and upon any other obligation to Borrower (to include making, settling, adjusting, collecting and recovering payment of all claims under and decisions with respect to Borrower’s policies of insurance), (iii) to enforce payment of
any Account and any other obligation of any person to Borrower either in its own name or in the name of Borrower, (iv) to endorse in the name of Borrower and to collect any instrument or other medium of payment, whether tangible or electronic,
tendered or received in payment of the Accounts that constitute Collateral and any other obligation to Borrower; (v) to sign Borrower’s name on any invoice or bill of lading relating to any Account, drafts against account debtors,
schedules and assignments of Accounts, verifications of Accounts and notices to account debtors; and (vi) dispose of any Collateral constituting Accounts and to convert any Collateral constituting Accounts into other forms of Collateral. But,
under no circumstances shall Bank be under any duty to act in regard to any of the foregoing matters. Without limiting the provisions of Section 4.3 hereof, but in addition thereto, Borrower hereby appoints Bank and any employee or
representative of Bank as Bank may from time to time designate, as attorneys-in-fact for Borrower, to sign and endorse in the name of Borrower, to give notices in the name of Borrower and to perform all other actions necessary or desirable in the
reasonable discretion of Bank to effect these provisions and carry out the intent hereof. Borrower hereby ratifies and approves all acts of such attorneys-in-fact and neither Bank nor any other such attorneys-in-fact will be liable for any acts of
commission or omission nor for any error of judgment or mistake of fact or law. The foregoing power, being coupled with an interest, is irrevocable so long as any Account pledged and assigned to Bank remains unpaid and this Agreement or any other
Loan Document is in force. The costs and expenses of such collection and enforcement shall be borne solely by Borrower whether the same are incurred by Bank or on behalf of Bank or Borrower and, if paid or incurred by Bank, the same shall be an
Obligation owing by Borrower to Bank, payable on demand with interest at the Default Rate, and secured by this Agreement and the other Loan Documents. Borrower hereby irrevocably authorizes and consents to all account debtors and other persons
communicating with Bank, or its agent, with respect to Borrower’s property, business and affairs and to all of the foregoing persons acting upon and in accordance with Bank’s, or its representative’s, instructions, directions and
demands, including, without limitation, Bank’s request and demand to pay money and deliver other property to Bank or Bank’s representatives, all without liability to Borrower for so doing. 
  
 (b) At Bank’s request, Borrower will forthwith upon
receipt of all checks, drafts, cash and other tangible and electronic remittances in payment or on account of Borrower’s Accounts, deposit the same in a special bank account maintained with Bank or its representative, over which Bank and its
representative (as applicable) have the sole power of withdrawal and will designate with each such deposit the particular Account upon which the remittance was made. The funds in said account shall be held by Bank as security for the Obligations.
Said proceeds shall be deposited in precisely the form received except for the endorsement of Borrower where necessary to permit collection of items, which endorsement Borrower agrees to make, and which endorsement Bank and its representative (as
applicable) are also hereby authorized to make on Borrower’s behalf. Pending such deposit, Borrower agrees that it will not commingle any such checks, drafts, cash and other remittances with any of Borrower’s funds or property, but will
hold them separate and apart therefrom and upon an express trust for Bank until deposit thereof is made in the special account. Bank may at anytime and from time to time, in its sole discretion, apply any part of the credit balance in the special
account to the payment of all or any of the Obligations, whether or not the same be due, and to payment of any other obligations owing to Bank under or on account of this Agreement or any of the other Loan Documents. In the event the balance of the
Obligations outstanding is ZERO at anytime prior to the Revolving Maturity Date, and provided no Event of Default has occurred or is continuing, Bank will pay over to the Borrower any excess good and collected funds received by Bank from Borrower as
aforesaid. On the Revolving Maturity Date and upon the full and final payment of all of the Obligations and the other obligations as aforesaid, together with a termination of Bank’s obligation to make additional Advances, Bank will pay over to
the Borrower any excess good and collected funds received by Bank from Borrower, whether received as a deposit in the special account or received as a direct payment on any of the Obligations. 
  

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 (c) Bank shall have the absolute and unconditional right to apply for and to obtain the
appointment of a receiver, custodian or similar official for all or a portion of the Collateral, including, without limitation, the Accounts, to, among other things, manage and sell the same, or any part thereof, and to collect and apply the
proceeds therefrom to payment of the Obligations as provided in this Agreement and the other Loan Documents. In the event of such application, Borrower consents to the appointment of such receiver, custodian or similar official and agrees that such
receiver, custodian or similar official may be appointed without notice to Borrower, without regard to the adequacy of any security for the Obligations secured hereby and without regard to the solvency of Borrower or any other person who or which
may be liable for the payment of the Obligations or any other obligations of Borrower hereunder. All costs and expenses related to the appointment of a receiver, custodian or other similar official hereunder shall be the responsibility of Borrower,
but if paid by Bank, Borrower hereby agrees to pay to Bank, on demand, all such costs and expenses, together with interest thereon from the date of payment at the Default Rate. All sums so paid by Bank, and the interest thereon, shall be an
Obligation owing by Borrower to Bank, and secured by this Agreement and the other Loan Documents. Notwithstanding the appointment of any receiver, custodian or other similar official, Bank shall be entitled as pledgee to the possession and control
of any cash, deposits, accounts, account receivables, documents, chattel paper, documents of title or instruments at the present or any future time held by, or payable or deliverable under the terms of the Loan Documents to Bank. 
  

	 	5.	REPRESENTATIONS AND WARRANTIES. 

  
 Borrower represents and warrants to Bank that the certifications, representations and warranties set forth in the Certificate of Borrower which has been
executed and delivered by Borrower to Bank contemporaneously with the execution and delivery of this Agreement by Borrower to Bank are true, correct and accurate as of the date of this Agreement or such other date as may be specifically set forth in
a particular certification, representation or warranty; and Borrower agrees that such certifications, representations and warranties shall be continuing certifications, representations and warranties of Borrower to Bank. 
  

	 	6.	AFFIRMATIVE COVENANTS. 

  
 Borrower covenants and agrees that until the termination of Bank’s obligation under this Agreement to make Credit Extensions and the payment in full
of the Obligations, Borrower shall do each and all of the matters set forth in this Section 6; and Borrower acknowledges to Bank that the breach or default by Borrower of any of the covenants and agreements set forth below in this
Section 6 is and the same shall be material. 
  
 6.1 Good Standing and Government Compliance. Borrower shall maintain in good standing its and each of its Subsidiaries’ organizational existence in their respective jurisdictions of organization and maintain qualification in
each jurisdiction in which the conduct of their respective businesses or their respective ownership of property requires that they be so qualified where failure to do so would have a Material Adverse Effect. Borrower shall comply, and shall cause
each Subsidiary to comply with all Requirements of Law to which they are subject, and shall maintain, and shall cause each of its Subsidiaries to maintain, in force all licenses, approvals and agreements, the loss of which or failure to comply with
which could have a Material Adverse Effect, or an adverse effect in a material manner on the Collateral or the priority of Bank’s security interest in the Collateral. 
  
 6.2 Payment/Performance. Borrower shall pay when due all amounts owing to Bank under this Agreement
and the other Loan Documents and promptly perform all other obligations of Borrower thereunder and hereunder. 
  
 6.3 Use of Loan Funds. Borrower shall use all loan proceeds disbursed to Borrower only for the purposes stated in this Agreement
and the other Loan Documents. 
  
 6.4
Financial Statements; Reports; Certificates. 
  
 (a) Borrower shall deliver to Bank each and all of the financial statements, reports, certificates and other records referenced under this subsection (a) and such other statements, reports, certificates and records as Bank may
reasonably request from time to time. 
  
 (i) As
soon as available, but in any event within twenty five (25) days after the end of each calendar month, Borrower shall deliver to Bank an unaudited consolidated balance sheet and a 

  

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statement of income and retained earnings prepared in accordance with GAAP (not including footnotes required by GAAP), consistently applied, covering
Borrower’s consolidated operations during such period, in a form acceptable to Bank and certified by a Responsible Officer. 
  
 (ii) Beginning with the fiscal year ending December 31, 2004, as soon as available, but in any event within one hundred twenty
(120) days after the end of Borrower’s fiscal year, Borrower shall deliver to Bank audited consolidated financial statements of Borrower (including a balance sheet, an income statement and a statement of retained earnings, each with the
related notes and changes in the financial position for such year and setting forth in comparative form the figures for the prior year) prepared in accordance with GAAP, consistently applied, together with an opinion on such financial statements
that is unqualified or qualified in a manner acceptable to Bank from an independent certified public accounting firm reasonably acceptable to Bank. 
  
 (iii) If applicable, Borrower shall deliver to Bank copies of all statements, reports and notices sent or made available generally by
Borrower to its security holders or to any holders of Subordinated Debt and all reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission. 
  
 (iv) Promptly upon receipt of notice thereof, Borrower shall deliver to Bank a report of any legal actions
pending or threatened against Borrower or any Subsidiary that could result in damages or costs to Borrower or any Subsidiary of Twenty Five Thousand Dollars ($25,000.00) or more. 
  
 (v) Borrower shall deliver to Bank such budgets, sales projections, operating plans or other financial
information generally prepared by Borrower in the ordinary course of business as Bank may reasonably request from time to time. 
  
 (b) Within twenty five (25) days after the last day of each month, Borrower shall deliver to Bank a Borrowing Base Certificate dated
and signed by a Responsible Officer in substantially the form of Exhibit D hereto, together with aged listings of accounts receivable and accounts payable. 
  
 (c) Within twenty five (25) days after the last day of each month, Borrower shall deliver to Bank with
the monthly financial statements a Compliance Certificate signed by a Responsible Officer in substantially the form of Exhibit E hereto. 
  
 (d) Borrower shall permit Bank directly and through another person on Bank’s behalf and Bank shall have a right from time to time
hereafter (which, in the absence of an Event of Default, shall not occur more than once per year), directly and through another person on Bank’s behalf, to audit Borrower’s Accounts and appraise Collateral at Borrower’s expense,
provided that the expense to Borrower for each such audit will not exceed Five Thousand Dollars ($5,000.00). 
  
 (e) Borrower shall provide such additional statements and information as Bank may from time to time request, in form reasonably acceptable
to Bank. 
  
 6.5 Taxes. Borrower shall
make, and shall cause each Subsidiary to make, due and timely payment of, or deposit or withholding of, all federal, state and local taxes, assessments or contributions required of it by all Requirements of Law, and will execute and deliver to Bank,
on demand, appropriate certificates attesting to the payment, deposit or withholding thereof; provided that Borrower or a Subsidiary need not make any payment if the amount or validity of such payment is contested in good faith by appropriate
proceedings and is reserved against (to the extent required by GAAP) by Borrower. 
  
 6.6 Insurance. 
  
 (a) Borrower, at its expense, shall keep the Collateral insured against loss or damage by fire, theft, explosion, sprinklers and all other
hazards and risks required by Bank, acting reasonably and taking into account the types and risks customarily insured against by businesses similar to Borrower’s. Unless otherwise directed by Bank, the insurance shall be all risk replacement
cost insurance with agreed amount endorsement, standard noncontributing mortgagee clauses and standard waiver of subrogation clauses. Borrower shall also maintain general liability, workmen’s compensation and other insurance in amounts and of a
type that are 

  

 8 

 
customary to businesses similar to Borrower’s, unless Bank directs otherwise, in which event Borrower shall maintain such insurance in amounts and types
as Bank directs. 
  
 (b) All policies of
insurance shall be in such form and with such companies as may be reasonably satisfactory to Bank. All policies of property insurance shall contain a lender’s loss payable endorsement, in a form reasonably satisfactory to Bank, showing Bank as
an additional loss payee, and all liability insurance policies shall show Bank as an additional insured. All policies shall specify that the insurer must give at least twenty (20) days’ notice to Bank before canceling its policy for any
reason. Upon Bank’s request, Borrower shall deliver to Bank certified copies of the policies of insurance and evidence of all premium payments. All proceeds payable under any such policy or policies shall, at Bank’s option, be payable to
Bank to be applied on account of the Obligations. 
  
 6.7 Primary Depository. Borrower shall maintain its primary operating depository accounts with Bank or, in the alternative, if it elects to maintain them with another person, Borrower shall grant to Bank a perfected, first priority
security interest in its primary depository and operating accounts maintained by it with such other person. The security interest in any deposit and operating accounts with another person shall secure the Obligations and the same shall be evidenced
by such security documents as Bank and its counsel deem necessary or appropriate, in their discretion. 
  
 6.8 Financial Covenants. Borrower shall maintain, as of the last day of each calendar month unless stated otherwise, and Borrower
shall fully and timely comply with, each and every one of the financial maintenance covenants set forth in this Section and others that may be contained in this Agreement and the other Loan Documents. 
  
 (a) Current Ratio. Borrower shall maintain a ratio of
(i) Current Assets to (ii) Current Liabilities of at least: 1.25 to 1.00 for the months ending December, 2004, January, 2005, February, 2005, March, 2005, April, 2005, May, 2005 and June 2005; and 1.50 to
1.00 for each month thereafter. 
  
 (b)
Tangible Net Worth. Borrower shall maintain a Tangible Net Worth of at least: $1,750,000 for the months ending December, 2004, January, 2005, February, 2005, March, 2005, April, 2005, May, 2005 and June 2005; and
$2,000,000 for each month thereafter. 
  
 (c)
Leverage Ratio. Borrower shall maintain a ratio of (i) Total Liabilities to (ii) Tangible Net Worth of no greater than 2.00 to 1.00. 
  
 6.9 Maintenance of Property. Borrower shall keep and maintain the Collateral in good working order and condition and make all
needful and proper repairs, replacements, additions, or improvements thereto as are necessary, reasonable wear and tear excepted. 
  
 6.10 Maintain Security Interest. Borrower shall maintain, protect and preserve the security interest of Bank in the Collateral and
the lien position of Bank in the Collateral, including, without limitation, the filing of “claims” under insurance policies. 
  
 6.11 Further Assurances. At any time and from time to time, Borrower shall execute and deliver such further instruments,
agreements, documents and other records and take such further action as may be requested by Bank to effect the purposes of this Agreement, including, without limitation, the perfection and continuation of perfection of Bank’s security interests
in the Collateral. 
  

	 	7.	NEGATIVE COVENANTS. 

  
 Borrower covenants and agrees that until the termination of Bank’s obligation under this Agreement to make Credit Extensions and the payment in full
of the Obligations, Borrower shall not do or permit to be done any of the matters set forth in this Section 7; and Borrower acknowledges to Bank that the breach or default by Borrower of any of the covenants and agreements set forth below in
this Section 7 is and the same shall be material. 
  
 7.1 Dispositions. Borrower shall not convey, sell, lease, transfer and otherwise dispose of and Borrower shall not permit any of its Subsidiaries to convey, sell, lease, transfer and otherwise dispose of (with 

  

 9 

 
respect to both Borrower and Borrower’s Subsidiaries, by operation of law or otherwise) any part of and any interest in their respective businesses and
properties, including the Collateral, other than Permitted Transfers and other than (i) sales, licenses, transfers or assignments of Intellectual Property in the ordinary course of business for adequate consideration, or (ii) sales or
other transfers of Intellectual Property no longer actively used in Borrower’s business, provided that the proceeds of such sale, transfer or assignment (but not proceeds of licenses) shall be used to pay down the outstanding obligations of
Borrower under the Revolving Facility. 
  
 7.2
Change in Business; Change in Control or Executive Office. Borrower shall not engage in any business, or permit any of its Subsidiaries to engage in any business, other than as reasonably related or incidental to the businesses currently
engaged in by Borrower. Borrower shall not have a Change in Control and will not, without thirty (30) days’ prior written notification to Bank, relocate its chief executive office, change its state of organization or change any other
matter that will or could result in Bank’s security interests in the Collateral becoming unperfected. 
  
 7.3 Mergers or Acquisitions; New Subsidiary; Capital Expenditures. Borrower shall not merge or consolidate, or permit any of its
Subsidiaries to merge or consolidate, with or into any other business organization, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another person (other than acquisitions in
exchange for shares of stock in Borrower. Borrower shall not create or cause to be created or to come into existence any new subsidiary after the Closing Date, without the prior written consent of the Bank. Borrower shall not enter into any
transactions on account of the purchase or other acquisition of capital assets either directly or indirectly which in the aggregate equal or exceed Two Hundred Fifty Thousand Dollars ($250,000.00) annually, provided that acquisitions of Intellectual
Property and/or other assets in exchange for shares of stock in Borrower shall not constitute a purchase or acquisition of capital assets for the purposes of this Section. 
  
 7.4 Indebtedness. Other than Permitted Indebtedness, Borrower shall not create, incur, assume or be
or remain liable with respect to (a) any Indebtedness with any of its Affiliates or Subsidiaries; or (ii) any other Indebtedness which in the aggregate exceeds Five Hundred Thousand Dollars ($500,000.00) so long as such Indebtedness is
Subordinated Debt, or permit any Subsidiary so to do. With respect to Indebtedness described in clause (iii) of the definition of Permitted Indebtedness in Exhibit A, to the extent not specifically prohibited by the terms of such
Indebtedness, Bank shall have a subordinate lien in and to all equipment and property financed or acquired with such Indebtedness. 
  
 7.5 Encumbrances. Borrower shall not create, incur, assume or allow any Lien with respect to the Collateral or any of its property,
or assign or otherwise convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries so to do, except for Permitted Liens, or covenant to any other person that Borrower in the future will refrain from
creating, incurring, assuming or allowing any Lien with respect to any of Borrower’s property, provided Borrower may enter into licenses and sublicenses in the ordinary course of business. 
  
 7.6 Judgments. Borrower shall not permit a judgment
for the payment of money to be entered against it which judgment Borrower permits to remain unsatisfied or unstayed for a period of thirty (30) days after the same is entered against Borrower. 
  
 7.7 Distributions. Borrower shall not pay any
dividends or make any other distribution or payment on account of or in redemption, retirement or purchase of any capital stock, or permit any of its Subsidiaries to do so, except that Borrower may repurchase the stock of former employees or
directors pursuant to stock repurchase or stock option agreements as long as an Event of Default does not exist prior to such repurchase or would not exist after giving effect to such repurchase. 
  
 7.8 Investments. Borrower shall not directly or
indirectly acquire or own, or make any Investment in or to any person, or permit any of its Subsidiaries so to do, other than Permitted Investments. 
  
 7.9 Loans. Borrower shall not make or commit to make any advance, loan, extension of credit or capital contribution to, or purchase
of any stock, bonds, notes, debentures or other securities of any person. 
  

 10 

 7.10 Loans to Officers. Borrower shall not make any loan or advance directly or
indirectly for the benefit of any past, present, or future stockholder, director, officer, executive, manager, member, partner or employee of Borrower, other than employee relocation loans, employee bridge loans and other incidental loans to
employees, all in the ordinary course of business. 
  
 7.11 Compensation. Borrower shall not pay any compensation to any past, present and future shareholder, director, officer, executive, member, manager, partner and employee, whether through salary, bonus or otherwise, in excess of
industry standards and norms. 
  
 7.12
Transactions with Affiliates. Borrower shall not 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. 
  

7.13 Subordinated Debt. Borrower shall not make any payment in respect of any Subordinated Debt, or permit any of its
Subsidiaries to make any such payment except in compliance with the terms of such Subordinated Debt, or amend any provision contained in any documentation relating to the Subordinated Debt without Bank’s prior written consent. 
  
 7.14 Inventory and Equipment. Borrower shall not
store its Inventory and shall not store its Equipment with a bailee, warehouseman or similar person unless Bank has received a pledge of the warehouse receipt covering such Inventory and Equipment. Except for Inventory sold in the ordinary course of
business and except for such other locations as Bank may approve in writing, Borrower shall not move or relocate its Inventory and shall not move or relocate its Equipment from the location or locations identified in the Certificate of Borrower and
such other locations of which Borrower gives Bank prior written notice and as to which Borrower signs and files a Financing Statement where needed to perfect Bank’s security interest. 
  
 7.15 Licenses. Borrower shall not become bound by any
license, agreement or other record which would have a Material Adverse Effect. 
  
 7.16 Compliance. Borrower shall not become or be controlled by an “investment company”, within the meaning of the
Investment Company Act of 1940, or become principally engaged in, or undertake as one of its important activities, the business of extending credit for the purpose of purchasing or carrying margin stock, or use the proceeds of any Credit Extension
for such purpose, or permit any of its Subsidiaries to do any of the foregoing. 
  
 7.17 Negative Pledge Agreements. Borrower shall not permit the inclusion in any contract to which it becomes a party of any
provisions that could restrict or invalidate the creation of a security interest in Borrower’s rights and interests in any Collateral. 
  
 7.18 Third Party Agreements. Borrower shall not enter into any agreement containing any provision that would be violated or
breached by the performance of the obligations of Borrower under this Agreement. 
  

	 	8.	EVENTS OF DEFAULT. 

  
 The occurrence of any one or more of the events, conditions, circumstances and matters set forth below in this Section 8 shall constitute an Event of
Default by Borrower under this Agreement and the other Loan Documents. Notwithstanding the foregoing and anything else in this Agreement to the contrary, if any of the Obligations are payable on demand by Bank, then, in such event, there are no
conditions precedent to Bank’s right to demand payment of such Obligations, in whole or in part, at any time and from time to time, without prior notice, until the entire unpaid balance outstanding under such Obligations, including principal,
interest, fees, premiums, charges and costs and expenses are paid in full. And, there are no conditions precedent to Bank exercising any of and all of its other rights and remedies at such time or times as it deems necessary or appropriate to
recover full payment of the Obligations, including, without limitation, the exercise of any of and all of its rights and remedies set forth in Section 9 below , the exercise of any of and all of its other rights and remedies granted to it under
the Loan Documents and the exercise of any of and all of its rights and remedies at law and in equity. 
  

 11 

 8.1 Default under Obligations. The occurrence of any event of default or default
condition under any of the Obligations, including, without limitation, Borrower’s failure to pay, when due, the principal of and interest on any of the Obligations, or Borrower’s failure to pay, when due, any and all other amounts due
under any of the Obligations, including, without limitation, any taxes, fees, charges, premiums and costs and expenses. 
  
 8.2 Covenant Default. Borrower fails to perform or satisfy any obligation under Section 6 or violates any of the covenants
contained in Section 7 of this Agreement, or fails or neglects to perform or observe or otherwise defaults under any other term, provision, condition, covenant or agreement contained in this Agreement, in any of the other Loan Documents, or in
any other present or future instrument, document, agreement and other record between Borrower and Bank or from Borrower to Bank or for the benefit of Bank, whether monetary or non-monetary, and as to any default under such other term, provision,
condition, covenant or agreement that can be cured, has failed to cure such default within five (5) days after Borrower receives notice thereof or any officer of Borrower becomes aware thereof; provided, however, that if the default is
non-monetary and cannot by its nature be cured within the five (5) day period or cannot after diligent attempts by Borrower be cured within such five (5) day period, and such default is likely to be cured within a reasonable time, then
Borrower shall have an additional reasonable period (which shall not in any case exceed twenty (20) days) to attempt to cure such non-monetary default, and within such reasonable time period the failure to have cured such default shall not be
deemed an Event of Default (provided that Bank shall not be required to make any Credit Extensions during such cure period). 
  
 8.3 Guarantor Default. The failure of any other person obligated for the payment of any of the Obligations, either directly or
indirectly, or obligated under this Agreement or any of the other Loan Documents to perform any of the terms and conditions imposed upon such other person by any of said agreements, as and when the same are required to be so performed, or the
occurrence of some other default by such other person under any of said agreements. 
  
 8.4 Termination of Supporting Obligation. The termination of or the occurrence of an event of default or a default condition under
any guaranty agreement or other supporting obligation (inclusive of letters of credit, third person pledge agreements and third person security agreements) which applies to this Agreement or any of the other Loan Documents. 
  
 8.5 Material Adverse Change. The occurrence, in
Bank’s opinion, of a material adverse change in Borrower’s business or financial condition, or if, in Bank’s opinion, there is an impairment of the prospect of repayment of any portion of the Obligations or an impairment of the value
or priority of Bank’s security interests in the Collateral. 
  
 8.6 Attachment. Borrower’s assets, or any part or portion thereof, are attached, seized, subjected to a writ or distress warrant, or are levied upon, or come into the possession of any trustee, receiver or
person acting in a similar capacity and such attachment, seizure, writ or distress warrant or levy has not been removed, discharged or rescinded within ten (10) days, or if Borrower is enjoined, restrained or in any way prevented by court order
from continuing to conduct all or any material part of its business affairs, or if a judgment or other claim becomes a lien or encumbrance upon any material portion of Borrower’s assets, or if a notice of lien, levy or assessment is filed of
record with respect to any of Borrower’s assets by the United States Government, or any department, agency or instrumentality thereof, or by any state, county, municipal or governmental agency, and the same is not paid within ten (10) days
after Borrower receives notice thereof, provided that none of the foregoing shall constitute an Event of Default where such action or event is stayed or an adequate bond has been posted pending a good faith contest by Borrower (provided that no
Credit Extensions will be required to be made during such cure period). 
  
 8.7 Insolvency. Borrower becomes insolvent, or an Insolvency Proceeding is commenced by Borrower, or an Insolvency Proceeding is commenced against Borrower and is not dismissed or stayed within thirty
(30) days (provided that no Credit Extensions will be required to be made prior to the dismissal of such Insolvency Proceeding). 
  
 8.8 Other Agreements. The occurrence of a default in any agreement to which Borrower is a party with a third person or persons
which results in a right by such third person or persons, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess of One Hundred Thousand Dollars ($100,000.00) or that could have a Material Adverse Effect.

  

 12 

 8.9 Subordinated Debt. Borrower makes any payment on account of Subordinated Debt,
except to the extent the payment is allowed under any subordination agreement entered into with Bank. 
  
 8.10 Misrepresentations. Any misrepresentation or misstatement exists now or hereafter in any warranty or representation set forth
herein, in any other Loan Document or in any certificate delivered to Bank by any Responsible Officer pursuant to this Agreement or any other Loan Document, or to induce Bank to enter into this Agreement or any other Loan Document. 
  
 8.11 Affiliate or Subsidiary Default. Default by any
of Borrower’s Affiliates or Subsidiaries under any Indebtedness or other obligation now owing or which hereafter arises and is owing to Bank. 
  

	 	9.	BANK’S RIGHTS AND REMEDIES. 

  
 9.1 Rights and Remedies upon an Event of Default. If an Event of Default shall occur under this Agreement, in addition to any other
rights and remedies which may be available to Bank and without limiting any other rights and remedies granted to Bank in this Agreement, the other Loan Documents and at law and in equity, including, without limitation, the rights and remedies
provided to Bank under the Code, which rights and remedies are fully exercisable by Bank as and when provided herein and therein, Bank shall have the rights and remedies set forth below in this Section 9.1, any and all of which it may exercise
at its election, without notice of its election and without demand. 
  
 (a) Acceleration of Obligations. Bank may, at its option, accelerate and declare immediately due and payable the Obligations, as well as any of and all of the other indebtedness and obligations owing under this
Agreement and the other Loan Documents that are not already due hereunder and that are not already due thereunder. If there is more than one Obligation, Bank may accelerate and declare immediately due and payable all of the Obligations, or Bank may
from time to time and at any number of times after the occurrence of an Event of Default, accelerate and declare immediately due and payable any one or more of the Obligations as Bank in its discretion elects to accelerate (provided that upon the
occurrence of an Event of Default described in Section 8 under the heading “Insolvency”, all Obligations shall become immediately due and payable without any action by Bank). 
  
 (b) Terminate Credit Extensions. Bank may limit
Borrower’s right to receive any and all advances under this Agreement and under any other agreement between Bank and Borrower to such amounts as Bank determines from time to time to be appropriate under the circumstances, Bank may impose a
moratorium on future advances under this Agreement and under any other agreement between Bank and Borrower, and Bank may terminate the right of Borrower to receive advances under this Agreement and under any other agreement between Borrower and
Bank, and in all the foregoing instances, Bank’s rights relative to Credit Extensions may be exercised cumulatively, concurrently, alternatively and in any other manner and at any time or times as Bank deems appropriate, in its discretion.

  
 (c) Protection of Collateral. Bank may
make such payments and do or cause to be done such acts as Bank considers necessary or advisable to protect the Collateral and to preserve, protect, perfect and continue the perfection of its security interest in the Collateral. Borrower agrees to
assemble the Collateral if Bank so requires and to make the Collateral available to Bank as Bank may designate. Borrower authorizes Bank and its representatives to enter the premises where the Collateral is located, to do, among other things Bank
deems necessary or advisable, the following: (i) take and maintain possession of the Collateral, or any part or parts of it, (ii) pay, purchase, contest or compromise any encumbrance, charge or lien which in Bank’s determination
appears to be prior or superior to its security interest, and (iii) pay all costs and expenses incurred in connection with any of the foregoing. With respect to any of Borrower’s premises, Borrower hereby grants Bank a license to enter
into possession of such premises and to occupy the same, without charge, in order to exercise any of Bank’s rights and remedies provided herein, at law, in equity and otherwise. 
  
 (d) Sale and Disposition of Collateral. 
  
 (i) Bank, directly and through others on its behalf, may
ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale and/or sell the Collateral, or part or parts thereof, for cash or on terms, at one or more private or public sales held at such place or places as Bank
determines 

  

 13 

 
to be commercially reasonable, after having complied with the provisions of this Agreement, the other Loan Documents and applicable Requirements of Law
relating to sale of the Collateral, including, without limitation, the requirements of the Code. Bank is hereby irrevocably granted a non-exclusive license or other right, pursuant to the provisions of this Section 9.1, to use, without charge,
Borrower’s labels, patents, copyrights, rights of use of any name, trade secrets, trade names, trademarks, service marks, advertising matter and any property of a similar nature, together with the right of access to all tangible or electronic
media in which any of the foregoing may be recorded or stored, solely for the purposes of completing production of, management of, advertising for sale and selling any Collateral and, in connection with Bank’s exercise of its rights under this
Section 9.1, Borrower’s rights under all licenses and all franchise agreements shall inure to Bank’s benefit. Borrower hereby agrees: (i) that ten (10) days notice of any intended sale or disposition of any Collateral is
commercially reasonable; (ii) that a shorter period of notice will be commercially reasonable if Bank, in its opinion, deems it necessary to move more expeditiously with disposition of the Collateral or any part thereof; and (iii) that the
foregoing shall not require a notice if no notice is required under the Code. 
  
 (ii) Bank may credit bid and purchase at any sale or sales. 
  
 (iii) The proceeds of any sale of, or other realization upon, all or any part of the Collateral pursuant to
this Section 9.1 shall be applied by Bank in the following order of priorities, or such other order as Bank may determine or as may be required under applicable Requirements of Law: first, to payment of the costs and expenses of such
sale or other realization, and all reasonable expenses, liabilities and advances incurred or made by Bank in connection therewith, and any other unreimbursed costs and expenses for which Bank is to be reimbursed pursuant to this Agreement and the
other Loan Documents; second, to the payment of unpaid principal of the Obligations; third, to the payment of accrued but unpaid interest on the Obligations; fourth, to the payment of all other amounts owing or outstanding by
Borrower under the Obligations, this Agreement, the other Loan Documents and otherwise to Bank as provided herein or therein, until all the foregoing shall have been paid in full; finally, to payment to Borrower or its successors or assigns,
or as a court of competent jurisdiction may direct, of any surplus then remaining from such proceeds. 
  
 (iv) Any deficiency that exists after disposition of the Collateral as provided above will be paid immediately by Borrower, without
demand by Bank, but this provision shall not require Bank to first dispose of the Collateral before attempting to recover payment of the Obligations from Borrower or any other person and Bank shall have the right to proceed successively,
concurrently and alternatively against the Collateral, the Borrower and any other person obligated on any of the Obligations in any order and at any time or times as it deems to be in its best interest. 
  
 (e) Discontinuance of Proceedings; Position of Parties
Restored. If Bank shall have proceeded to enforce any right or remedy under the Loan Documents by foreclosure, entry, or otherwise and such proceedings shall have been discontinued or abandoned for any reason, or such proceedings shall have
resulted in a final determination adverse to Bank, then and in every such case Borrower and Bank shall be restored to their former positions and rights hereunder, and all rights, powers and remedies of Bank shall continue as if no such proceedings
had occurred or had been taken. 
  
 9.2
Remedies Cumulative. Bank’s rights and remedies under this Agreement, the Loan Documents and all other agreements shall be cumulative and may be exercised successively, concurrently, alternatively and in any other order and at such time
or times as Bank elects in its discretion. Bank shall have all other rights and remedies not inconsistent herewith as provided under the Code, by law and in equity. No exercise by Bank of one right or remedy shall be deemed an election, and no
waiver by Bank of any Event of Default on Borrower’s part shall be deemed a continuing waiver. No delay by Bank shall constitute a waiver, election or acquiescence by it. No waiver by Bank shall be effective unless made in a written document
signed on behalf of Bank and then shall be effective only in the specific instance and for the specific purpose for which it was given. 
  

	 	10.	NOTICES. 

  
 Unless otherwise provided in this Agreement, all notices or demands by any party relating to this Agreement or any other agreement entered
into in connection herewith shall be in writing and (except for financial statements and other informational documents which may be sent by first-class mail, postage prepaid) shall be personally delivered or sent by a recognized overnight delivery
service, certified mail, postage prepaid, return 

  

 14 

 
receipt requested, or by facsimile to Borrower or to Bank, as the case may be, at their respective addresses as set forth on the signature page of this
Agreement. The parties may change the address at which they are to receive notices hereunder by notice in writing in the foregoing manner given to the other. 
  

	 	11.	WAIVERS. 

  
 11.1 Waiver Of Trial By Jury. To the extent not prohibited by applicable Requirements of Law, Borrower and Bank each hereby
waive their respective rights to a jury trial of any claim or cause of action based upon or arising out of any of the Loan Documents or any of the transactions contemplated therein, including contract claims, tort claims, breach of duty claims and
all other common law or statutory claims. Each party recognizes and agrees that the foregoing waiver constitutes a material inducement for it to enter into this Agreement. Each party represents and warrants that it has reviewed this waiver with its
legal counsel and that it knowingly and voluntarily waives its jury trial rights following consultation with legal counsel. 
  
 11.2 Marshalling of Assets. Borrower hereby waives, to the extent permitted by law, the benefit of all appraisal, valuation, stay,
extension, reinstatement and redemption laws now in force and those hereafter in force and all rights of marshalling in the event of any sale hereunder of the Collateral or any part or any interest therein. 
  
 11.3 Waiver of Action Against Third Persons. Borrower
waives any right to require Bank to bring any action against any other person or to require that resort be had to any security or to any balances of any deposit or other accounts or debts or credits on the books of Bank in favor of any other person.

  

	 	12.	GENERAL PROVISIONS. 

  
 12.1 Indemnification. Borrower hereby agrees to defend, protect, indemnify and hold harmless Bank, all directors, officers,
employees, attorneys, agents and independent contractors of Bank, from and against all claims, actions, liabilities, damages and costs and expenses asserted against, imposed upon or incurred by Bank or any of such other persons as a result of, or
arising from, or relating to this Agreement, the other Loan Documents or the transactions contemplated hereby or thereby, except for losses resulting from the gross negligence or willful misconduct of the person otherwise to be indemnified
hereunder. 
  
 12.2 Choice of Law. This
Agreement shall be deemed to have been executed and delivered in North Carolina regardless of where the signatories may be located at the time of execution and shall be governed by and construed in accordance with the substantive laws of the State
of North Carolina, excluding, however, the conflict of law provisions thereof. 
  
 12.3 Incorporation of Exhibits; Customer and Loan Numbers. All exhibits, schedules, addenda and other attachments to this Agreement
are by this reference incorporated herein and made a part hereof as if fully set forth in the body of this Agreement. The Customer and Loan Numbers, if any, stated in this Agreement are for Bank’s internal business use and reference only and do
not and shall not limit the scope and extent of Bank’s rights hereunder, including the Obligations secured hereby and the security interests of Bank in the Collateral. 
  
 12.4 Maintenance of Records by Bank. Borrower acknowledges and agrees that Bank is authorized to
maintain, store and otherwise retain the Loan Documents or any of them in their original, inscribed tangible form or a record thereof in an electronic medium or other non-tangible medium which permits such record to be retrieved in a perceivable
form; that a record of any of the Loan Documents in a non-tangible medium which is retrievable in a perceivable form shall be the agreement of Borrower to the same extent as if such Loan Document was in its original, inscribed tangible medium and
such a record shall be binding on and enforceable against Borrower notwithstanding the same is in a non-tangible form and notwithstanding the signatures of the signatories hereof are electronic, typed, printed, computer generated, facsimiles or
other reproductions, representations or forms; and that Bank’s certification that a non-tangible record of any of the Loan Documents is an accurate and complete copy or reproduction of the original, inscribed tangible form shall be conclusive,
absent clear and convincing evidence of the incorrectness of said certification, and such non-tangible record or a reproduction thereof shall be deemed an original and have the same force and effect as the original, inscribed tangible form.

  

 15 

 12.5 Credit Investigations; Sharing of Information; Control Agreements. Bank is
irrevocably authorized by Borrower to make or have made such credit investigations as it deems appropriate to evaluate Borrower’s and its Subsidiaries’ credit or financial standing, and Borrower authorizes Bank to share with consumer
reporting agencies and creditors its experiences with Borrower and its Subsidiaries. Bank (i) shall not have any obligation or responsibility to provide information to third persons relative to Bank’s security interest in the Collateral,
this Agreement and otherwise with respect to Borrower and its Subsidiaries and (ii) shall not have any obligation or responsibility to subordinate its security interest in the Collateral to the interests of any third persons or to enter into
control agreements relative to the Collateral. 
  
 12.6 Bank’s Liability for Collateral. Notwithstanding anything in this Agreement or any of the other Loan Documents to the contrary, Bank may at any time or times during the term of this Agreement make such payments and do or
cause to be done such acts as Bank considers necessary or advisable to protect the Collateral and to preserve, protect and perfect or continue the perfection of its security interest in the Collateral. So long as Bank complies with reasonable
banking practices, Bank shall not in any way or manner be liable or responsible for: (i) the safekeeping of the Collateral; (ii) any loss or damage thereto occurring or arising in any manner or fashion from any cause; (iii) any
diminution in the value thereof; or (iv) any act or default of any carrier, warehouseman, bailee, forwarding agency or other person whomsoever. All risk of loss, damage or destruction of the Collateral shall be borne by Borrower. 
  
 12.7 Bank Expenses. If Borrower fails to pay any
amounts or furnish any required proof of payment due to third persons, as required under the terms of this Agreement and the other Loan Documents, then Bank may do or cause to be done any or all of the following: (i) make payment of the same or
any part thereof; (ii) set up such reserves as Bank deems necessary to protect Bank from the exposure created by such failure; and (iii) obtain and maintain insurance policies of the type required by this Agreement, and take any action
with respect to such policies as Bank deems prudent. Any amounts so paid or deposited by Bank shall constitute Bank Expenses, shall be immediately due and payable, shall bear interest at the Default Rate from the date of payment or deposit and shall
be secured by the Collateral. Any payments made by Bank shall not constitute an agreement by Bank to make similar payments in the future or a waiver by Bank of any Event of Default under this Agreement. If Bank is requested to waive an Event of
Default or forbear taking action relative thereto, Bank may condition any waiver or forbearance it elects, in its discretion, to grant Borrower on payment by Borrower of such fees to Bank as Bank deems appropriate under the circumstances and may
condition any such waiver or forbearance on Borrower reimbursing Bank for all costs and expenses Bank incurs in connection with such waiver or forbearance. 
  
 12.8 No Waiver; No Course of Dealing. Bank, at any time or times, may grant extensions of time for payment or other indulgences or
accommodations to any person obligated on any of the Obligations, or permit the renewal, amendment or modification thereof or substitution or replacement therefor, or permit the substitution, exchange or release of any property securing any of the
Obligations and may add or release any person primarily or secondarily liable on any of the Obligations, all without releasing Borrower from any of its liabilities and obligations under any of the Loan Documents and without Bank waiving any of its
rights and remedies under any of the Loan Documents, or otherwise. No delay or forbearance by Bank in exercising any or all of its rights and remedies hereunder and under the other Loan Documents or rights and remedies otherwise afforded by law or
in equity shall operate as a waiver thereof or preclude the exercise thereof during the continuance of any Event of Default as set forth herein or in the event of any subsequent Event of Default hereunder. Also, no act or inaction of Bank under any
of the Loan Documents shall be deemed to constitute or establish a “course of performance or dealing” that would require Bank to so act or refrain from acting in any particular manner at a later time under similar or dissimilar
circumstances. 
  
 12.9 Relationship of
Parties; Successors and Assigns. The relationship of Bank to Borrower is that of a creditor to an obligor (inclusive of a person obligated on a supporting obligation) and a creditor to a debtor; and in furtherance thereof and in explanation
thereof, Bank has no fiduciary, trust, guardian, representative, partnership, joint venturer or other similar relationship to or with Borrower and no such relationship shall be drawn or implied from any of the Loan Documents and any of Bank’s
actions or inactions hereunder or with respect hereto – and, Bank has no obligation to Borrower or any other person relative to administration of any of the Obligations and the Collateral, or any part or parts thereof. The covenants, terms and
conditions herein contained shall bind, and the benefits and powers shall inure to, the respective heirs, executors, administrators, successors and assigns of the parties hereto, as well as any persons who become bound hereto as a debtor. If two or
more persons or entities have joined as Borrower, each of the persons and entities shall be jointly and severally obligated to perform the conditions 

  

 16 

 
and covenants herein contained. The term “Bank” shall include any payee of the Obligations hereby secured and any transferee or assignee thereof,
whether by operation of law or otherwise, and Bank may transfer, assign or negotiate all or any of the Obligations secured by this Agreement from time to time without the consent of Borrower and without notice to Borrower and any transferee or
assignee of Bank or any transferee or assignee of another may do the same without Borrower’s consent and without notice to Borrower. Borrower waives and will not assert against any transferee or assignee of Bank any claims, defenses, set-offs
or rights of recoupment which Borrower could assert against Bank, except defenses which Borrower cannot waive. 
  
 12.10 Time of Essence. Time is of the essence for the performance of all of Borrower’s covenants and agreements (inclusive of
the Obligations) set forth in this Agreement and each of the Loan Documents. 
  
 12.11 Amendments in Writing; Integration. All amendments to or terminations of this Agreement must be in writing. All prior agreements, understandings, representations, warranties and negotiations between the
parties hereto with respect to the subject matter of this Agreement, if any, are merged into this Agreement and the Loan Documents. 
  
 12.12 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, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Agreement. 
  
 12.13 Survival. All covenants, representations and warranties made in this Agreement shall continue
in full force and effect so long as any Obligations remain outstanding. Notwithstanding anything in this Agreement or the other Loan Documents to the contrary, the obligations of Borrower to indemnify Bank as described in Section 12.1 shall
survive until all applicable statute of limitations periods with respect to actions that may be brought against Bank have run. 
  
 12.14 Limited License. During the term of this Agreement, Borrower hereby grants to Bank and its Affiliates, a non-exclusive,
world-wide, non-transferable, royalty-free irrevocable license to use the Borrower’s Marks (as herein defined) solely for and in connection with the general marketing, promotion and advertising activities of Bank and its Affiliates. General
marketing, promotion and advertising activities shall include press releases, product brochures, tombstone ads and other advertising typical in industry practice and disclosure of Borrower’s Marks on the Bank’s website, including a link to
the Borrower’s website. “Marks” shall mean Borrower’s names, logos, Trademarks, trade names, service marks and world wide web addresses. Bank shall use commercially reasonable efforts to cause the appropriate designation
“TM” or the registration symbol “®” to be placed adjacent to the Marks in connection with the use thereof. Notwithstanding the foregoing, Bank shall be under no obligation to use any of such Marks. 
  
 [THE NEXT PAGE IS THE SIGNATURE PAGE] 
  

 17 

 In witness whereof, the parties have caused this agreement to be executed with authority duly obtained, as of the date
first written above. 
  

									
	BORROWER:	 	 	 	WITNESS:
				
	 ETRIALS WORLDWIDE, INC.,
 A Delaware Corporation
	 	 	 	 	 	 
					
	By:	 	/s/    JAMES W. CLARK.
JR.        	 	 	 	 	 	/s/    CAROLINE H.
ROCKAFELLOW        
	 Print Name:
	 	James W. Clark, Jr.	 	 	 	 Print Name:
	 	Caroline H. Rockafellow
	 Title:
	 	Treasurer & CFO	 	 	 	 	 	 

  
 Address for Notices: 
 2701 Aerial Center Parkway 
 Suite 100 
 Morrisville, North Carolina 27560 
 Attention: Chief Financial Officer 
 Facsimile: (919) 653-3621 
  

									
	BANK:	 	 	 	WITNESS:
				
	 RBC CENTURA BANK,
 A North Carolina Banking Corporation
	 	 	 	 	 	 
					
	By:	 	/s/    WIN BEAR        	 	 	 	 	 	/s/    BRIAN CORBETT        
	 Print Name:
	 	Win Bear	 	 	 	 Print Name:
	 	Brian Corbett
	 Title:
	 	Senior Account Manager - KBI	 	 	 	 	 	 

  
 Address for Notices:

 3201 Beechleaf Court 
 Suite 700 
 Raleigh, North Carolina 27604 
 Attn: Group Executive, Knowledge Based
Industries 
 Facsimile: (919) 788-5966 
  
 With a copy to: 
 RBC Centura Bank Loan Service Center 
 134 North Church Street 
 Rocky Mount, North Carolina 27802 
  

 18 

  
 EXHIBIT A

  
 DEFINITIONS 
  
 “Accounts” shall have a broad meaning and shall include all accounts (as
such term is defined in Article 9 of the Code) owned by the Borrower and all accounts in which the Borrower has any rights (including, without limitation, rights to grant a security interest in accounts owned by other persons), both now existing and
hereafter owned, acquired and arising; and, to the extent not included in the term accounts as so defined after ascribing a broad meaning thereto, all accounts receivable, health-care-insurance receivables, credit and charge card receivables, bills,
acceptances, documents, choses in action, chattel paper (both tangible and electronic), promissory notes and other instruments, deposit accounts, license fees payable for use of software, commercial tort claims, letter of credit rights and letters
of credit, rights to payment for money or funds advanced or sold other than through use of a credit card, lottery winnings, rights to payment with respect to investment property, general intangibles and other forms of obligations and rights to
payment of any nature, now owing to the Borrower and hereafter arising and owing to the Borrower, together with (i) the proceeds of all of the accounts and other property and property rights described hereinabove, including all of the proceeds
of Borrower’s rights with respect to any of its licenses, goods and services represented thereby, whether delivered or returned by customers, and all rights as an unpaid vendor and lienor, including rights of stoppage in transit and of
recovering possession by any proceedings, including replevin and reclamation, and (ii) all customer lists, books and records, ledgers, account cards, and other records including those stored on computer or electronic media, whether now in
existence or hereafter created, relating to any of the foregoing. 
  
 “Affiliate” means, with respect to any person, any person that owns or controls directly or indirectly such person, any person that controls or is controlled by or is under common control with such person, and each of such
person’s senior executive officers, directors and partners. 
  
 “Agreement” means this Loan and Security Agreement, and any and all amendments, modifications, renewals, extensions, replacements and substitutions thereof and therefor. 
  
 “Bank” means RBC Centura Bank and its successors, assigns, transferees and
the holder of this Agreement and the other Loan Documents. 
  
 “Bank
Expenses” means all costs and expenses reasonably incurred and suffered by Bank in connection with the preparation, negotiation, administration and enforcement of the Loan Documents and its rights and remedies thereunder, including, without
limitation, perfection, audit, inspection, protection and enforcement of Bank’s security interests in the Collateral, subject to any dollar amount limit contained in the Loan Documents. 
  
 “Borrower” means etrials Worldwide, Inc., a
Delaware corporation, and its successors and permitted assigns. 
  
 “Borrower’s Books” means all of Borrower’s books and records including, without limitation, ledgers, journals, spread sheets, business plans, business projections, tax returns and accompanying worksheets and notes
related thereto, governmental and regulatory filings and reports and all other records concerning Borrower’s assets and liabilities, the Collateral, business operations and financial condition; and the term includes media on which such records
are stored or maintained, whether electronic, printed, imbedded in software or other computer programs or on tape files, and the equipment containing such information. 
  
 “Borrowing Base” means an amount equal to 75% of Eligible Accounts, as determined by Bank with reference to the most recent
Borrowing Base Report delivered by Borrower. 
  
 “Business Day”
means any day that is not a Saturday, Sunday or other day on which banks in the State of North Carolina are authorized or required to close. 
  
 “Capital Expenditures” means any amounts accrued or paid in respect of any purchase or other acquisition for value of capital assets and, for greater
certainty, excludes amounts expended in respect of the normal repair and maintenance of capital assets utilized in the ordinary course of business. 
  
 “Capitalized Leases” means all leases that have been or should be, in accordance with GAAP, recorded as capitalized leases. 
  
 “Change in Control” shall mean a transaction in which any “person”
or “group” (within the meaning of Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934), directly or
indirectly, of a sufficient number of shares of all classes of 

 
stock then outstanding of Borrower ordinarily entitled to vote in the election of directors, empowering such “person” or “group” to elect
a majority of the Board of Directors of Borrower, who did not have such power before such transaction. 
  
 “Close” or “Closing” means the completion of the conditions precedent to the initial Credit Extension.

  
 “Closing Date” means the date of this Agreement, which is the
last date on which this Agreement is signed by a party hereto. 
  
 “Closing Memorandum and Checklist” is the document referenced by such name in the Section of the Agreement pertaining to Conditions of Credit Extensions (i.e., Section 3.1) and is the document by such name which has
been executed and delivered by Borrower to Bank contemporaneously with the execution and delivery of this Agreement by Borrower to Bank. 
  
 “Code” means the Uniform Commercial Code as in effect, from time to time, in the State of North Carolina. 
  
 “Collateral” means the property and property rights described on Exhibit
C and all Negotiable Collateral to the extent not described on Exhibit C. 
  
 “Commitment” means the letter dated December 21, 2004 under which Bank committed to enter into this Agreement with Borrower. 
  
 “Committed Revolving Line” means Credit Extensions of up to One Million Dollars ($1,000,000.00). 
  
 “Contingent Obligation” or “Contingent Liabilities” means, as
applied to any person, any direct or indirect liability, contingent or otherwise, of that person with respect to (i) any account, instrument, chattel paper, document, general intangible, indebtedness, lease, dividend, letter of credit, letter
of credit right or other obligation of another person, including, without limitation, any such obligation directly or indirectly guaranteed, endorsed, co-made or discounted or sold with recourse by that person, or in respect of which that person is
otherwise directly or indirectly liable; (ii) any obligations with respect to undrawn letters of credit issued for the account of that person; and (iii) all obligations arising under any interest rate, currency or commodity swap agreement,
interest rate cap agreement, interest rate collar agreement, or other agreement or arrangement designated to protect a person against fluctuation in interest rates, currency exchange rates or commodity prices; provided, however, that the term
“Contingent Obligation” shall not include endorsements for collection or deposit in the ordinary course of business. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determined amount of the
primary obligation in respect of which such Contingent Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by such person in good faith; provided, however, that such
amount shall not in any event exceed the maximum amount of the obligations under the guarantee or other support arrangement. 
  
 “Copyrights” means any and all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and
derivative work thereof, both published and unpublished and whether or not the same also constitutes a trade secret, now existing and hereafter arising, created, acquired or held. 
  
 “Corporate Distributions” means all payments to (i) any shareholder (or other holder of an equity interest in
Borrower), director, executive or officer of the Borrower, (ii) any Affiliate or holder of Subordinated Debt of the Borrower, or (iii) any shareholder (or other holder of an equity interest in Borrower), director, executive or officer of
any Affiliate or holder of Subordinated Debt of the Borrower. Payments to strategic partners and vendors in the ordinary course of business who are also shareholders do not constitute Corporate Distributions. For greater certainty, it includes
bonuses, dividends, salaries (except salaries, bonuses and other compensation to officers or other employees and commissions, consulting and advisory fees to financial and other consultants, each in the ordinary course of business), and repayment of
Indebtedness or making of loans (except nonmaterial advances and expense reimbursements) to any such person. 
  
 “Credit Extension” means each Advance, Equipment Advance or any other extension of credit by Bank for the benefit of Borrower hereunder, including credit extensions under or related to corporate
credit cards and letters of credit. 
  
 “Credit Facilities” is a
reference to the credit facilities available under this Agreement and can include one or more of the Revolving Facility and the Equipment Facility. 
  
 “Current Assets” means as of any applicable date, only those assets of Borrower that may, in the primary course of business, be converted into cash with
a period of one year from such date, but excluding (a) amounts due from 

 
employees, officers, shareholders or directors of Borrower, and (b) amounts due from Affiliates or Subsidiaries of Borrower, except for amounts due from
bona fide arm’s length commercial relationships with shareholders or Affiliates. 
  
 “Current Liabilities” means, as of any applicable date, all amounts that should, in accordance with GAAP, be included as current liabilities on the consolidated balance sheet of Borrower and its Subsidiaries, as at such
date, plus, to the extent not already included therein, all outstanding Credit Extensions made under this Agreement, including all Indebtedness that is payable upon demand or within one year from the date of determination thereof unless such
Indebtedness is renewable or extendible at the option of Borrower or any Subsidiary to a date more than one year from the date of determination. 
  
 “Default Rate” means a rate of interest per annum equal to the contract rate of interest defined as the “Default Rate” in the Promissory Note,
and if there is more than one Promissory Note, it shall mean a rate of interest per annum equal to the highest of the contract rates of interest defined in the Promissory Notes as a “Default Rate”. 
  
 “Eligible Accounts” means only those Accounts that are within the meaning of
the term “account” as defined under the Code, that are in existence and have arisen in the ordinary course of Borrower’s business and that comply with all of Borrower’s representations and warranties to Bank set forth in this
Agreement and the other Loan Documents; provided, the Bank may change the standards of eligibility by giving Borrower thirty (30) days’ prior written notice. Unless otherwise agreed to by Bank, Eligible Accounts shall not include the
following: (i) Accounts that the account debtor has failed to pay within ninety (90) days of invoice date; (ii) Accounts with respect to an account debtor, fifteen percent (15%) of whose Accounts the account debtor has failed to
pay within ninety (90) days of invoice date; (ii) Accounts with respect to which the account debtor is an officer, employee or agent of Borrower; (iv) Accounts with respect to which goods are placed on consignment, guaranteed sale,
sale or return, sale on approval, bill and hold, or other terms by reason of which the payment by the account debtor may be conditional; (v) Accounts with respect to which the account debtor is an Affiliate of Borrower unless a bona fide
arm’s length commercial relationship exists between Borrower and the Affiliate; (vi) Accounts with respect to which the account debtor does not have its principal place of business in the United States, except for Eligible Foreign
Accounts; (vii) Accounts with respect to which the account debtor is the United States, a State, or any department, agency or instrumentality of the United States or a State; (viii) Accounts with respect to which Borrower is liable to the
account debtor for goods sold or services rendered by the account debtor to Borrower, but only to the extent of any amounts owing to the account debtor against amounts owed to Borrower; (xi) Accounts with respect to an account debtor, including
Subsidiaries and Affiliates, whose total obligations to Borrower exceed fifteen percent (15%) of all Accounts, to the extent such obligations exceed the aforementioned percentage, except as approved in writing by Bank (provided, the limit on
Accounts from Wyeth Pharmaceuticals, Inc., The Medicines Company and Genzyme Corporation shall be 25%); (x) Accounts with respect to which the account debtor disputes liability or makes any claim with respect thereto as to which Bank believes,
in its sole discretion, that there may be a basis for dispute (but only to the extent of the amount subject to such dispute or claim), or is subject to any Insolvency Proceeding, or becomes insolvent, or goes out of business; and (xi) Accounts
the collection of which Bank reasonably determines after reasonable inquiry to be doubtful. 
  
 “Eligible Foreign Accounts” means Accounts with respect to which the account debtor does not have its principal place of business in the United States and that (i) are supported by one or more
letters of credit in an amount and of a tenor, and issued by a financial institution, acceptable to Bank, or (ii) that Bank approves on a case-by-case basis. 
  
 “Equipment Advance” has the meaning set forth in the subsection of Section 2 relating
to the Equipment Facility. 
  
 “Equipment Facility” means the
facility under which Borrower may request Bank to issue Equipment Advances, as specified in a subsection of Section 2. 
  
 “Equipment Line” means a Credit Extension of up to Three Hundred Thousand Dollars ($300,000.00). 
  
 “Equipment Note” means the Promissory Note
executed by Borrower in favor of Bank evidencing the Equipment Facility. 
  
 “Event of Default” has the meaning assigned in Section 8. 
  
 “GAAP” means generally accepted accounting principles and practices in effect from time to time as promulgated by the American Institute of Certified
Public Accounts. 

 “Governmental Authority” means any nation or government, any state or other political subdivision
thereof, and any organization exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 
  
 “Indebtedness” means (a) all liabilities which would be reflected on a balance sheet prepared in accordance with GAAP, (b) all indebtedness for
borrowed money or the deferred purchase price of property or services, including without limitation reimbursement and other obligations with respect to surety bonds and letters of credit, (c) all obligations evidenced by notes, bonds,
debentures or similar instruments, (d) all capital lease obligations and (e) all Contingent Obligations. 
  
 “Insolvency Proceeding” means any proceeding commenced by or against any person or entity under any provision of the United States Bankruptcy Code, as
amended, or under any other bankruptcy or insolvency law, including assignments for the benefit of creditors, formal or informal moratoria, compositions, extension generally with its creditors, or proceedings seeking reorganization, arrangement or
other relief. 
  
 “Intellectual Property” means all of
Borrower’s right, title and interest in and to its intellectual property, including without limitation, the following: (i) Copyrights, Trademarks and Patents; (ii) any and all trade secrets, and any and all intellectual property
rights in software and software products now or hereafter existing, created, acquired or held; (iii) any and all design rights which may be available to Borrower now or hereafter existing, created, acquired or held; (iv) any and all mask
works or similar rights now or hereafter existing, created, acquired or held; (v) any and all claims for damages by way of past, present and future infringement of any of the rights included above, with the right, but not the obligation, to sue
for and collect such damages for said use or infringement of the intellectual property rights identified above; (vi) all licenses or other rights to use any of the Copyrights, Patents or Trademarks, and all license fees and royalties arising
from such use to the extent permitted by such license or rights; (vii) all amendments, renewals, re-issues, divisions, continuations and extensions of any of the Copyrights, Trademarks or Patents; and (viii) all proceeds and products of
the foregoing, including without limitation all payments under insurance or any indemnity or warranty payable in respect of any of the foregoing. 
  
 “Investment” means any beneficial ownership of (including stock, partnership interest or other securities) any person, or any loan, advance or capital
contribution to any person. 
  
 “Invoice Amount of Equipment and
Software” means the amount of invoices for purchases from unrelated and non-affiliated third persons, unless Bank otherwise agrees. 
  
 “IRC” means the Internal Revenue Code of 1986, as amended, and the regulations thereunder. 
  
 “Knowledge” means actual knowledge or such level of knowledge or awareness
as would be obtained or should have been known at the time by a prudent business person under substantially similar circumstance after diligent investigation. 
  

“Lien” means any mortgage, lien, deed of trust, deed to secure debts, charge, pledge, security interest or other encumbrance and the term
“security interest” and Lien shall be interchangeable, as necessary or appropriate. 
  
 “Loan Documents” means, collectively, this Agreement, any instruments, including promissory notes, executed and delivered by Borrower to Bank, and any one or more of the following entered into by
Borrower and Bank, or by Borrower for the benefit of Bank, or by another person and Bank or by another person for benefit of Bank in connection with the Agreement or any of the Obligations, together with any and all renewals, extensions, amendments,
modifications, replacements and substitutions thereof and therefor: mortgages, deeds to secure debt, deeds of trust, security agreements, negative pledge agreements, pledge agreements, guaranty agreements, control agreements, hypothecation
agreements, documents, agreements and other records. 
  
 “Material Adverse
Effect” means a material adverse effect on (i) the business operations or condition (financial or otherwise) of Borrower or (ii) the ability of Borrower to repay the Obligations or otherwise perform its obligations under the Loan
Documents as and when required thereunder. 
  
 “Material Agreements” has the meaning assigned in the Certificate of Borrower. 
  
 “Negotiable Collateral” means all of Borrower’s present and future letters-of-credit and letter-of-credit rights of which it is a beneficiary, instruments (including promissory notes), drafts,
securities, documents of title and chattel paper (including electronic chattel paper), and Borrower’s Books relating to any of the foregoing. 
  
 “Obligations” means all indebtedness, including principal, interest, fees, premiums, penalties, charges, Bank Expenses and other amounts owed to Bank by
Borrower pursuant to this Agreement, the other Loan Documents and 

 
any other agreement, document and record, both absolute and contingent, due and to become due, now existing and hereafter arising, including any interest and
fees that accrue after the commencement of an Insolvency Proceeding and including any indebtedness, liability and obligation now owing and any indebtedness, liability and obligation hereafter arising and owing from Borrower to others that Bank has
obtained or may in the future obtain by assignment or otherwise. 
  
 “Patents” means all patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same. 
  
 “Periodic Payments” means all installment and similar recurring payments
that Borrower may now be obligated to pay and may hereafter become obligated to pay to Bank pursuant to the terms and provisions of any instrument, agreement, document and record now in existence and which may hereafter come into existence between
Borrower and Bank. 
  
 “Permitted Indebtedness” means:
(i) Indebtedness of Borrower in favor of Bank arising under this Agreement or any other Loan Document; (ii) Indebtedness existing on the Closing Date which is disclosed in the Schedule; (iii) Indebtedness not to exceed Twenty Thousand
Dollars ($20,000.00) in the aggregate secured by a lien described in clause (iii) of the defined term “Permitted Liens”, provided such Indebtedness does not exceed the lesser of the cost or fair market value of the Equipment financed
with such Indebtedness; and (iv) Subordinated Debt. 
  
 “Permitted
Investment” means: (i) Investments existing on the Closing Date disclosed in the Certificate of Borrower; (ii) (A) Marketable direct obligations issued or unconditionally guaranteed by the United States of America or any
agency or any State thereof maturing within one year from the date of acquisition thereof, (B) commercial paper maturing no more than one year from the date of creation thereof and currently having a rating of at least A-2 or P-2 from either
Standard & Poor’s Corporation or Moody’s Investors Service, (C) certificates of deposit maturing no more than one year from the date of investment therein issued by Bank, and (D) Bank’s money market accounts;
(iii) Repurchases of stock from former employees or directors of Borrower under the terms of applicable repurchase agreements or stock option agreements in an aggregate amount not to exceed Twenty Thousand Dollars ($20,000.00) in the aggregate
in any fiscal year, provided that no Event of Default has occurred, is continuing or would exist after giving effect to the repurchases; (iv) Investments accepted in connection with Permitted Transfers; (v) Investments consisting of
(A) travel advances and employee relocation loans and other employee loans and advances in the ordinary course of business, and (B) loans to employees, officers or directors relating to the purchase of equity securities of Borrower or its
Subsidiaries pursuant to employee stock purchase plan agreements approved by Borrower’s board of directors; (vi) 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 Borrower’s business; (vii) 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 part shall not apply to Investments of Borrower in any Subsidiary; and (viii) Joint ventures or strategic
alliances in the ordinary course of Borrower’s business consisting of the licensing of technology, the development of technology or the providing of technical support or other commercial dealings, provided that no Event of Default has occurred,
is continuing or would exist after such event. 
  
 “Permitted
Liens” means the following: (i) any Liens existing on the Closing Date and disclosed in the Schedule or arising under this Agreement or the other Loan Documents; (ii) Liens for taxes, fees, assessments or other governmental
charges or levies, either not delinquent or being contested in good faith by appropriate proceedings and for which Borrower maintains adequate reserves, provided the same have no priority over any of Bank’s security interests; (iii) Liens
not to exceed Twenty Thousand Dollars ($20,000.00) in the aggregate (A) upon or in any Equipment acquired or held by Borrower or any of its Subsidiaries to secure the purchase price of such Equipment or indebtedness incurred solely for the
purpose of financing the acquisition of such Equipment, or (B) existing on such Equipment at the time of its acquisition, provided that the Lien is confined solely to the property so acquired and improvements thereon, and the proceeds of such
Equipment, provided that, to the extent not specifically prohibited by the terms of such financings, Borrower shall grant and pledge to Bank a valid, perfected security interest which is second in priority to any lien granted under this provision;
and (iv) Liens incurred in connection with the extension, renewal or refinancing of the indebtedness secured by Liens of the type described in clauses (i) through (iii) above, provided that any extension, renewal or replacement Lien
shall be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness being extended, renewed or refinanced does not increase. 

 “Permitted Transfer” means the conveyance, sale, lease, transfer or disposition by Borrower or any
Subsidiary of: (i) Inventory in the ordinary course of business; (ii) non-exclusive licenses and similar arrangements for the use of the property of Borrower or its Subsidiaries in the ordinary course of business; or (iii) surplus,
worn-out or obsolete Equipment. 
  
 “Postponed Debt” means the
total Indebtedness that is fully postponed and subordinated, on terms satisfactory to the Bank, to the obligations owing to the Bank. 
  
 “Promissory Note” means any promissory note or other instrument of Borrower in favor of Bank evidencing any indebtedness of Borrower to Bank under this
Agreement or evidencing any of the other Obligations, together with any amendments, modifications, extensions, renewals, substitutions or replacements thereto or therefor. 
  
 “Requirement of Law” means as to any person, the certificate of incorporation and by-laws or other organizational or
governing documents of such person, and any law, treaty, rule, or regulation, or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such person or any of its properties or to which
such person or any of its properties is subject, either individually, or jointly or collectively with another person or persons. 
  
 “Responsible Officer” means each of the Chief Executive Officer, the Chief Operating Officer, the Chief Financial Officer and the Controller of Borrower.

  
 “Revolving Facility” means the facility under which Borrower
may request Bank to issue Advances, as specified in Section 2 under subsection entitled “Revolving Facility”. 
  
 “Revolving Maturity Date” means the day before the one (1) year anniversary of the Closing Date. 
  
 “Schedule” means the schedule of exceptions
attached hereto, if any. 
  
 “Shareholders’ Equity” means
the total of (i) share capital (excluding redeemable preferred shares and treasury stock), (ii) contributed surplus, (iii) retained earnings and (iv) Postponed Debt; and for non-corporate organizations such as partnerships or
limited liability companies, equity accounts similar to those described herein for corporations. 
  
 “Software Products” and “Software” are interchangeable and mean software, computer source codes and other computer programs. 
  
 “Subordinated Debt” means any debt incurred by Borrower that is subordinated
to the indebtedness owing by Borrower to Bank on terms reasonably acceptable to Bank (and identified as being such by Borrower and Bank). 
  
 “Subsidiary” means any registered organization or other organization (1) the majority (by number of votes) of the outstanding voting interests of
which is at the time owned or controlled by Borrower, or by one or more Subsidiaries of Borrower, or Borrower and one or more Subsidiaries of Borrower, or (2) otherwise controlled by or within the control of Borrower or any Subsidiary.

  
 “Tangible Net Worth” means the total of Shareholders’
Equity less (i) intangibles, (ii) deferred charges, (iii) leasehold improvements and (iv) loans receivable from related parties. 
  
 “Total Liabilities” or “Total Debt” means all liabilities exclusive of deferred tax liabilities. 
  
 “Trademarks” means any trademark and service mark rights, whether registered
or not, applications to register and registrations of the same and like protections, and the entire goodwill of the business of Borrower connected with and symbolized by such trademarks. 

  
 EXHIBIT B

  
 LOAN PAYMENT/ADVANCE REQUEST FORM 
  
 DEADLINE FOR SAME DAY PROCESSING IS 10:00 A.M., E.T. 
  

			
	 TO:
                    
	  	DATE:                     
		
	 FAX #:
                    
	  	TIME:                     

  

			
	 FROM:
	  	 ETRIALS WORLDWIDE, INC.
 CLIENT NAME
(BORROWER)

					
			
	REQUESTED BY:	  	 	  	 
			
	AUTHORIZED SIGNATURE:	  	 	  	 
			
	PHONE NUMBER:	  	 	  	 

  

			
	 FROM ACCOUNT #
	  	 TO ACCOUNT #

		
	 REQUESTED TRANSACTION TYPE

	  	 REQUEST DOLLAR AMOUNT

		
	 PRINCIPAL INCREASE (ADVANCE)
	  	 $

		
	 PRINCIPAL PAYMENT (ONLY)
	  	 $

		
	 INTEREST PAYMENT (ONLY)
	  	 $

		
	 PRINCIPAL AND INTEREST (PAYMENT)
	  	 $

  
 OTHER INSTRUCTIONS: 
  
 IF AN EQUIPMENT ADVANCE INCLUDE COPY OF INVOICE FOR EQUIPMENT AND INVOICE FOR SOFTWARE
PRODUCTS BEING FINANCED. 
  
 All representations and warranties of Borrower stated
in the Loan and Security Agreement are true, correct and complete in all respects as of the date of this Loan Payment/Advance Request; provided, however, that those representations and warranties expressly referring to another date shall be true,
correct and complete as of such date. 
  
 BANK USE ONLY 
  
 TELEPHONE REQUEST: 
  
 The following person is authorized to request the loan payment transfer/loan advance on the advance designated account and is known to me.

  

			
	Authorized Requester	  	Phone #
                                        
    
		
	Received By (Bank)	  	Phone #
                                        
    
		
	Authorized Signature (Bank)	  	 

  
 EXHIBIT C

  

			
	DEBTOR:	  	ETRIALS WORLDWIDE, INC.
		
	SECURED PARTY:	  	RBC CENTURA BANK

  
 COLLATERAL DESCRIPTION ATTACHMENT TO
LOAN AND SECURITY AGREEMENT 
  
 All personal property owned by Borrower and all
personal property in which Borrower has a property interest, both presently existing and hereafter created, written, produced, developed, acquired and arising, of every nature, kind and description, wherever located and notwithstanding in whose
custody and possession any of the foregoing may be at any time or times, including, but not limited to: 
  

	(i)	all accounts (as such term is defined in Article 9 of the Uniform Commercial Code in effect from time to time in the State of North Carolina) owned by Borrower and all accounts in
which Borrower has any rights (including, without limitation, rights to grant a security interest in accounts owned by other persons), both now existing and hereafter owned, acquired and arising and, to the extent not included in the term accounts
as so defined after ascribing a broad meaning thereto, all accounts receivable, health-care-insurance receivables, credit and charge card receivables, bills, acceptances, documents, choses in action, chattel paper (both tangible and electronic),
promissory notes and other instruments, deposit accounts, license fees payable for use of software, commercial tort claims, letter of credit rights and letters of credit, rights to payment for money or funds advanced or sold other than through use
of a credit card, lottery winnings, rights to payment with respect to investment property, general intangibles and other forms of obligations and rights to payment of any nature, now owing to Borrower and hereafter arising and owing to Borrower,
together with (1) the proceeds of all of the accounts and other property and property rights described hereinabove, including all of the proceeds of Borrower’s rights with respect to any of its licenses, goods and services represented
thereby, whether delivered or returned by customers, and all rights as an unpaid vendor and lienor, including rights of stoppage in transit and of recovering possession by any proceedings, including replevin and reclamation, and (2) all
customer lists, books and records, ledgers, account cards, and other records including those stored on computer or electronic media, whether now in existence or hereafter created, relating to any of the foregoing; 

  

	(ii)	all now existing and hereafter acquired software and computer programs to the extent (but only to the extent) embedded in goods as necessary to own, operate and enjoy such goods
(collectively, the “Software Products”); 

  

	(iii)	all now existing and hereafter acquired goods, including, without limitation, fixtures, equipment and inventory; 

  

	(iv)	all now existing and hereafter arising rights in oil, gas or other minerals before extraction; 

  

	(v)	all now existing and hereafter arising guarantees and other supporting obligations, together with the security therefor; and 

  

	(vi)	all proceeds from the sale, transfer or disposition of the Intellectual Property described below, and all now existing and hereafter arising accessions, products and proceeds,
including, without limitation, insurance proceeds and condemnation proceeds, of any and all of the foregoing property and property rights. 

  
 BUT SPECIFICALLY EXCLUDING THE FOLLOWING (the following, the “Intellectual Property”): 
  

	(a)	all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work thereof, both published and unpublished and
whether or not the same also constitutes a trade secret, now existing and hereafter arising, created, acquired or held; 

  

	(b)	all patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part
of the same; 

	(c)	all trademark and service mark rights, whether registered or not, applications to register and registrations of the same and like protections, and the entire goodwill of the
business of Borrower connected with and symbolized by such trademarks; 

  

	(d)	all amendments, extensions, renewals, re-issues, divisions and continuations of any of the foregoing (a), (b) or (c), and all products, accessions and additions of the
foregoing (a), (b) or (c), including without limitation all payments under insurance policies and indemnities or warranties payable in respect of any of the foregoing 

  

	(e)	(e) all licenses from third parties for any of the foregoing (a), (b), (c) or (d). 

  
 BUT INCLUDING all proceeds of the foregoing (a), (b) and (c), which proceeds shall be a part of the collateral described above.

  
 EXHIBIT D

  
 Customer No.
                     
 Loan No.
                           
  

							
	RBC Centura	 	 	  	BORROWING BASE CERTIFICATE
(Accounts Receivable)
		
	 Borrower: ETRIALS WORLDWIDE, INC. 
	  	Lender: RBC Centura Bank
			
	 Credit Line Amount:     $1,000,000.00
	  	 	  	 

  

								
			
	ACCOUNTS RECEIVABLE	  	 	  	 	_________
	 1.  
	  	Borrower’s Accounts Book Value as of                     	  	 	  	 	_________
	 2.  
	  	Hypothecated Accounts Book Value as of
                            	  	 	  	 	_________
	 3.  
	  	Additions (please explain on a signed attachment)	  	 	  	 	_________
	 4.  
	  	TOTAL ACCOUNTS RECEIVABLE	  	 	  	 	_________
			
	ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)	  	 	  	 	 
	 5.  
	  	Amounts over 90 days past due (i)	  	_________	  	 	 
	 6.  
	  	Accounts with balance 15% over 90 day accounts (ii)	  	_________	  	 	 
	 7.  
	  	Officer and Employee Accounts (iii)	  	_________	  	 	 
	 8.  
	  	Demo/Consignment Accounts (iv)	  	_________	  	 	 
	 9.  
	  	Subsidiary/Affiliate Accounts (v)	  	_________	  	 	 
	 10.
	  	Non-Eligible Foreign Accounts (vi)	  	_________	  	 	 
	 11.
	  	Government Accounts (vii)	  	_________	  	 	 
	 12.
	  	Potential Liability Accounts (viii)	  	_________	  	 	 
	 13.
	  	Concentration (15% or 25%, as applicable) Accounts (xi)	  	_________	  	 	 
	 14.
	  	Disputed Accounts (x)	  	_________	  	 	 
	 15.
	  	Doubtful Accounts (xi)	  	_________	  	 	 
	 16.
	  	Other (please explain on reverse)	  	_________	  	 	 
	 17.
	  	TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS	  	 	  	 	_________
	 18.
	  	Eligible Accounts (#4 minus #17)	  	 	  	 	_________
	 19.
	  	LOAN VALUE OF ACCOUNTS (75% of #18)	  	 	  	 	_________
			
	BALANCES	  	 	  	 	 
	 20.
	  	Maximum Credit Line	  	 	  	$	1,000,000
	 21.
	  	Total Permissible Borrowings on Credit Line (Lesser of #20 or #19)	  	 	  	 	_________
	 22.
	  	Present balance owing on Line of Credit	  	 	  	 	_________
	 23.
	  	Outstanding under Sublimits (Letters of Credit)	  	 	  	 	_________
	 24.
	  	RESERVE POSITION (#21 minus #22 and #23)	  	 	  	 	_________

  
 The undersigned represents and
warrants that the foregoing is true, accurate and complete as of the date indicated below, and that the information reflected in this Borrowing Base Certificate complies with the representations and warranties set forth in the Loan and Security
Agreement between the undersigned and RBC Centura Bank. 
  

									
	ETRIALS WORLDWIDE, INC.	 	 	 	Date: ______________
					
	 By:
	 	 	 	 	 	 	 	 
	 	 	 Authorized Signer
	 	 	 	 	 	 

  
 EXHIBIT E

  
 Customer No.
                     
 Loan No.
                           
  

							
	RBC Centura	  	 	  	COMPLIANCE CERTIFICATE

  

			
	 TO:
	 	RBC CENTURA BANK
		
	 FROM:
	 	ETRIALS WORLDWIDE, INC.

  
 The undersigned authorized officer of
ETRIALS WORLDWIDE, INC. (“Borrower”) hereby certifies that in accordance with the terms and conditions of the Loan and Security Agreement between Borrower and Bank dated February         ,
2005 (the “Agreement”), (i) Borrower is in complete compliance for the period ending
                            with all covenants set forth in the Agreement, except as noted below and
(ii) all representations and warranties of Borrower stated in the Agreement are true, correct and accurate as of the date hereof. Attached herewith are the required documents supporting the above certification. The undersigned authorized
officer further certifies that this Compliance Certificate and any supporting financial documents have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) and are consistently applied from one period to the next except
as explained in an accompanying letter or footnotes – or unless otherwise permitted in the Agreement. Reference is made to the Agreement for the relevant meanings of the reporting requirements and covenants which are stated below in a
“short-hand” manner. 
  
 Please indicate compliance status by
circling Yes/No under “Complies” column. 
  

													
	 Reporting Covenant

	  	 Required

	    	 	  	 	  	 Complies

	 Monthly financial statements
	  	Monthly within 25 days	  	 	    	 	  	 	  	Yes	  	No
	 Annual financial statements (Audited)
	  	FYE within 120 days	  	 	  	Yes	  	No
	 10K and 10Q
	  	As applicable	  	 	  	Yes	  	No
	 Borrowing Base Cert. – Receivables
	  	Monthly within 25 days	  	 	  	Yes	  	No
	 A/R Audit
	  	As applicable	  	 	  	Yes	  	No
	 Aged Accounts Report
	  	Monthly within 25 days	  	 	  	Yes	  	No
	 Legal Audit
	  	As applicable	  	 	  	Yes	  	No
					
	 Financial Covenant

	  	 Required

	    	 Actual

	  	 	  	 Complies

	Current Ratio	  	 	  	 	    	 	  	 	  	 	  	 
	12/31/2004 through and including 06/30/2005	  	1.25	  	1.00	    	_______	  	_______	  	Yes	  	No
	07/31/2005 and thereafter	  	1.50	  	1.00	    	_______	  	_______	  	Yes	  	No
							
	Leverage Ratio	  	2.00	  	1.00	    	_______	  	_______	  	Yes	  	No
							
	Tangible Net Worth	  	 	  	 	    	 	  	 	  	 	  	 
	12/31/2004 through and including 06/30/2005	  	$1,750,000.00	    	$__________	  	 	  	Yes	  	No
	07/31/2005 and thereafter	  	$2,000,000.00	    	$__________	  	 	  	Yes	  	No

  
 (Continued on Next
Page) 

  
 Compliance Certificate

  
 (Continued from Previous Page) 
  

											
	Comments Regarding Exceptions: See Attached.	 	 	 	BANK USE ONLY	 	 
						
	 	 	 	 	 	 	 Received by: 
	 	 	 	 
	 	 	 	 	 	 	 	 	 Authorized Signer
	 	 
						
	 	 	 	 	 	 	 Date:
	 	 	 	 
	 	 	 Authorized Signatory of Borrower
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 Verified:
	 	 	 	 
	 	 	 	 	 	 	 	 	 Authorized Signer
	 	 
	 	 	 Title
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 Date:
	 	 	 	 
	 	 	 Date 
	 	 	 	 	 	 	 	 
					
	 	 	 	 	 	 	 Compliance Status                                   
              Yes
	 	   No

  
 SCHEDULE OF EXCEPTIONS

  
 Permitted Indebtedness

  
 None. 
  
 Permitted Investments 
  
 None. 
  
 Permitted Liens 
  
 Lien in favor of IBM Credit LLC with respect
to leased equipment owned by IBM Credit LLC and leased to Borrower pursuant to an Operating Equipment Lease, in the amount of approximately $200,000.00. 

 Customer No.
                     
 Loan No.
                           
  

							
	RBC Centura	  	 	  	INSURANCE CERTIFICATION
and
AGREEMENT

  

					
	TO:	 	RBC CENTURA BANK	  	Date: February 1, 2005
			
	 From:
	 	ETRIALS WORLDWIDE, INC.	  	 

  
 In consideration of a loan referenced
above (“loan”), the undersigned, jointly and severally if more than one, certifies to and agrees with RBC Centura Bank (“Bank”) as follows: 
  

(a) the insurance coverage required in connection with the loan is in place and will remain in force during the term of the loan; 
  
 (b) the policies of insurance evidencing the insurance coverage referenced in
(a) above are listed below, which information is accurate in all material respects as of the date of this certification; 
  
 (c) we have notified the agent and companies identified below to add “RBC Centura Bank, its successors and assigns” as lender’s loss
payee/mortgagee, as directed by Bank, on the existing insurance policies and to add “RBC Centura Bank, its successors and assigns” as lender’s loss payee/mortgagee on any new policies; 
  
 (d) we have notified the agents and companies identified below to furnish
Bank at the above address with copies of the policies with all endorsements, together with any subsequent renewal policies – all of which shall reflect the interests of Bank as required herein or as may otherwise be directed by Bank; and

  
 (e) we have notified the agents and companies identified below
to provide copies of all notices given under the insurance policies to Bank, including copies of all notices regarding non-payment of premiums and termination or cancellation of the policies, or any of them. 
  
 The following is identifying information on the policies of insurance required to be carried
by us under the loan: 
  

									
	   Required
  Insurance

	  	 Company

	  	Agent

	  	Policy
Number

	  	Expiration
Date

					
	 Builder’s Risk
	  	 Name:
	  	Name:	  	 	  	 
	  	 Address:
	  	Address:	  	 	  	 
	  	 	  	 	  	 	  	 
	  	 	  	 	  	 	  	 
	  	 Telephone:
	  	Telephone:	  	 	  	 
	  	 	  	 	  	 	  	 

  
 (Continued on Next
Page) 

									
					
	Casualty Insurance	  	 Name:
	  	Name:	  	 	  	 
	  	 Address:
	  	Address:	  	 	  	 
	  	 	  	 	  	 	  	 
	  	 	  	 	  	 	  	 
	  	 Telephone:
	  	Telephone:	  	 	  	 
	  	 	  	 	  	 	  	 
					
	General Liability	  	 Name:
	  	Name:	  	 	  	 
	  	 Address:
	  	Address:	  	 	  	 
	  	 	  	 	  	 	  	 
	  	 	  	 	  	 	  	 
	  	 Telephone:
	  	Telephone:	  	 	  	 
	  	 	  	 	  	 	  	 
					
	Workmen’s Comp.	  	 Name:
	  	Name:	  	 	  	 
	  	 Address:
	  	Address:	  	 	  	 
	  	 	  	 	  	 	  	 
	  	 	  	 	  	 	  	 
	  	 Telephone:
	  	Telephone:	  	 	  	 
	  	 	  	 	  	 	  	 
					
	Officers’ & Directors’	  	 Name:
	  	Name:	  	 	  	 
	  	 Address:
	  	Address:	  	 	  	 
	  	 	  	 	  	 	  	 
	  	 	  	 	  	 	  	 
	  	 Telephone:
	  	Telephone:	  	 	  	 
	  	 	  	 	  	 	  	 
					
	Flood Insurance	  	 Name:
	  	Name:	  	 	  	 
	  	 Address:
	  	Address:	  	 	  	 
	  	 	  	 	  	 	  	 
	  	 	  	 	  	 	  	 
	  	 Telephone:
	  	Telephone:	  	 	  	 
	  	 	  	 	  	 	  	 
					
	Comprehensive	  	 Name:
	  	Name:	  	 	  	 
	  	 Address:
	  	Address:	  	 	  	 
	  	 	  	 	  	 	  	 
	  	 	  	 	  	 	  	 
	  	 Telephone:
	  	Telephone:	  	 	  	 
	  	 	  	 	  	 	  	 
					
	 	  	 Name:
	  	Name:	  	 	  	 
	 	  	 Address:
	  	Address:	  	 	  	 
					
	 	  	 	  	 	  	 	  	 
					
	 	  	 	  	 	  	 	  	 
					
	 	  	 Telephone:
	  	Telephone:	  	 	  	 
					
	 	  	 	  	 	  	 	  	 

  
 (Signatures on Next
Page) 

									
	 BORROWER:
	 	 	 	WITNESS:
			
	 ETRIALS WORLDWIDE, INC.
	 	 	 	 
					
	By:	 	/s/    JAMES W. CLARK,
JR.        	 	 	 	 	 	/s/    CAROLINE H.
ROCKAFELLOW        
	 Print Name:
	 	James W. Clark, Jr.	 	 	 	 Print Name:
	 	Caroline H. Rockafellow
	 Title:
	 	Treasurer & CEO	 	 	 	 	 	 

  

	
	 FOR BANK USE ONLY

	
	 INSURANCE VERIFICATION: Date: ______________________________________________________________

	 Person Spoken to: ____________________________________________________________________________

	 Policy Number: ______________________________________________________________________________

	 Effective From: ______________________________ To: _____________________________________________

	 Verified by: _________________________________________________________________________________

 Customer No.
                     
 Loan No.
                           
  

							
	RBC Centura	  	 	  	AUTOMATIC DEBIT
AUTHORIZATION

  
 To: RBC Centura Bank

  
 Re: Loan #  
  
 You are hereby authorized and instructed to charge account No. 021-226-4067 in the name
of ETRIALS WORLDWIDE, INC. for principal, interest, fees, charges and other payments due on the above-referenced loan (“loan”) as set forth below and credit the loan. 
  

	 	x	Debit each interest payment as it becomes due according to the terms of the instruments and other agreements evidencing the loan, as the same may be renewed, extended, amended,
modified, replaced and substituted from time to time. 

  

	 	x	Debit each principal payment as it becomes due according to the terms of the instruments and other agreements evidencing the loan, as the same may be renewed, extended,
amended, modified, replaced and substituted from time to time. 

  

	 	x	Debit any fees, charges and other payment as they become due according to the terms of the instruments and other agreements evidencing the loan, as the same may be renewed,
extended, amended, modified, replaced and substituted from time to time. 

  
 This Authorization is to remain in full force and effect until revoked in writing by an authorized representative of Borrower which is delivered to RBC Centura Bank. A revocation shall be deemed delivered to RBC Centura Bank effective as of
5:00 p.m. on the calendar day which is 30 business days following the date the revocation is deposited in the U.S. mail, postage prepaid, addressed to RBC Centura Bank at: Post Office Box 1220, Rocky Mount, North Carolina 27802-1220, or such other
address as RBC Centura Bank may designate from time to time. 
  

									
	ETRIALS WORLDWIDE, INC.	 	 	 	 Date: February 1, 2005

					
	By:	 	/s/    JAMES W. CLARK,
JR.        	 	 	 	 	 	 
	 Print Name:
	 	James W. Clark, Jr.	 	 	 	 	 	 
	 Title:
	 	Treasurer & CEO	 	 	 	 	 	 

 Customer No.
                     
 Loan No.
                           
  

							
	RBC Centura	  	 	  	SIGNATURE AUTHORIZATION

  
 To: RBC Centura Bank 
  
 Address: 3201 Beechleaf Court, Suite 700, Raleigh, NC 27604 
  
 This Authorization is in reference to that certain Loan and Security Agreement dated as of
February 1, 2005 (“Agreement”) executed by the undersigned borrower (“Borrower”) concerning a loan or loans from RBC Centura Bank (“Bank”) to Borrower. Each individual signing on behalf of the Borrower, as shown
below, hereby certifies that he/she has been authorized by Borrower to designate certain individuals who are employees or agents of Borrower to perform such acts as are contemplated by and in furtherance of the Agreement. 
  
 The individuals named on the next page, and any one acting alone, are hereby authorized and
appointed for and on behalf of Borrower from time to time to do any of the following: 
  

	 	(1)	To request advances of credit under the Agreement and to effect repayment of any credit outstanding under the Agreement. 

  

	 	(2)	To execute and deliver assignments, borrowing certificates, instruments, schedules, reports, invoices, bills, shipping documents and such other documents and certificates as may be
necessary or appropriate under the Agreement and any instruments and other agreements relating thereto, including all those executed and delivered in connection therewith; 

  

	 	(3)	To transfer and endorse to Bank, as applicable, in payment of Borrower’s obligations to Bank any of Borrower’s now existing and hereafter acquired real and personal
property, including, without limitation, any goods, monies, accounts, general intangibles, investment property, documents, chattel paper and any checks, drafts, notes and other instruments payable to Borrower; and 

  

	 	(4)	To do and perform any and all other acts and matters in any way relating to any or all of the foregoing. 

  
 The undersigned individuals each further certifies that the specimen signatures below are the genuine signatures of the individuals
designated herein and that their signatures shall be binding on Borrower until Bank receives written notice of termination if the authority of any such designated individuals. 
  

									
	 Date: February 1, 2005
	 	 	 	 ETRIALS WORLDWIDE, INC.

					
	 	 	 	 	 	 	 By:
	 	/s/    JAMES W. CLARK,
JR.        
	 	 	 	 	 	 	 Print Name:
	 	James W. Clark, Jr.
	 	 	 	 	 	 	 Title:
	 	Treasurer & CEO

  
 Authorized
Individuals and Specimen Signatures On Next Page 

 Customer No.
                     
 Loan No.
                           
  
 Attached to Signature Authorization 
 for 
 ETRIALS WORLDWIDE, INC. to RBC Centura Bank 
 dated February 1, 2005 
  
 Authorized Individuals and Specimen Signatures: 
  

					
	 Name (Typed or Printed)

	 	 	 	 Signature

			
	John Cline	 	 	 	/s/    JOHN CLINE        
			
	James W. Clark, Jr.	 	 	 	/s/    JAMES W. CLARK,
JR.        
			
	Judy N. Scott	 	 	 	/s/    JUDY N. SCOTTNegative Pledge Agreement

 Exhibit 10.27 
  
 Customer No.                     

 Loan No.
                             
  

					
	RBC Centura	  	 	  	NEGATIVE PLEDGE AGREEMENT
(SD-L&S)

  
 THIS NEGATIVE PLEDGE
AGREEMENT (“Agreement”) is entered into, as of February 1, 2005, by ETRIALS WORLDWIDE, INC., a Delaware corporation (“Borrower”), with a mailing address of 2701 Aerial Center Parkway, Suite 100, Morrisville, North
Carolina 27560, to RBC CENTURA BANK, with a mailing address of 3201 Beechleaf Court, Suite 700, Raleigh, North Carolina 27604, Attention: Group Executive - KBI (“Bank”). 
  
 RECITALS 
  
 A. Bank has agreed to make certain advances of money and to extend certain financial accommodation to Borrower (“Loans”) in the amount and
manner set forth in that certain Loan and Security Agreement entered into contemporaneously herewith by and between Borrower and Bank (as the same may be amended, modified, renewed, extended, supplemented and replaced from time to time, the
“Loan Agreement”). Capitalized terms used herein and not otherwise defined herein are used as defined in the Loan Agreement. 
  
 B. Bank is willing to make the Loans to Borrower, but only upon the condition, among others, that Borrower enter into this Agreement. 
  
 NOW, THEREFORE, for good and valuable consideration, receipt and sufficiency
of which is hereby acknowledged, and intending to be legally bound, the Borrower hereby covenants and agrees with the Bank as follows: 
  
 AGREEMENT 
  
 1. Except as provided in Section 2 below, from the date of this Agreement through the end of the term hereof as provided hereinbelow, Borrower shall
not through its actions or inactions, and Borrower shall not through the actions or inactions of others, sell, transfer, assign, mortgage, pledge, lease, grant a security interest in or encumber any of the Copyrights, Patents or Trademarks listed on
Exhibits A, B and C attached hereto, any of Borrower’s other Intellectual Property and any parts or parcels of any of the foregoing and interests and rights in any of the foregoing, including, without limitation, the
following: 
  
 a. Any and all copyrights,
copyright applications, copyright registrations and like protections in each work of authorship and derivative work thereof, both published and unpublished and whether or not the same also constitutes a trade secret, now existing and hereafter
existing, created, acquired and held; 
  
 b. Any
and all mask works and similar rights available for the protection of semiconductor chips, now owned and hereafter acquired; 
  
 c. Any and all trade secrets, and any and all intellectual property rights in computer software and computer software products now
existing and hereafter existing, created, acquired and held; 
  
 d. Any and all design rights which may be available to Borrower now existing and hereafter existing, created, acquired and held; 
  
 e. Any and all patents, patent applications and like protections including, without limitation,
improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same, including without limitation the patents and patent applications; 

 f. Any and all trademark and service mark rights, both registered and unregistered,
applications to register and registrations of the same and like protections, and the entire goodwill of the business of Borrower connected with or symbolized by such trademarks; 
  
 g. Any and all claims for damages by way of past, present and future infringements of any of the rights
included above, with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the intellectual property rights identified above; 
  
 h. Any and all licenses and other rights to use any Copyrights, Patents, Trademarks and mask works, and all
license fees and royalties arising from such use to the extent permitted by such license or rights; 
  
 i. Any and all amendments, extensions, renewals, re-issues, divisions and continuations of any of the foregoing; and 
  
 j. Any and all proceeds, products, accessions and additions
of the foregoing, including without limitation all payments under insurance policies and indemnities or warranties payable in respect of any of the foregoing. 
  

All of the tangible and intangible property and property rights described or referenced in this paragraph 1, collectively, the “Intellectual Property”.

  
 2. Notwithstanding the limitations contained in Section 1
above, (i) Borrower may sell, transfer or assign the Intellectual Property in the ordinary course of business for adequate consideration, provided that, if the Intellectual Property is then actively used in the business of Borrower, the
proceeds of such sale, transfer or assignment shall be used to pay down the outstanding obligations of Borrower under the Credit Facilities, and (ii) Borrower may grant any license of Intellectual Property. 
  
 3. The Loan Agreement and the terms and provisions thereof are hereby
incorporated herein in their entirety by this reference thereto. The term of this Agreement shall be coterminous with the term of the security interests granted in the Loan Agreement. It shall be an event of default under the Loan Agreement if there
is a breach or violation of any of the terms and provisions of this Agreement by Borrower. 
  
 4. Borrower represents and warrants that as of the date of this Agreement it owns and holds title or license, sublicense or other right to use in and to all of the Intellectual Property, free and clear of all liens,
security interests and other encumbrances except as shown on Exhibit D, but no representation or warranty is made as to infringement of the intellectual property rights of third parties. Borrower also warrants and represents that it has the
right and power to enter into this Agreement, and has taken all action necessary or appropriate to authorize the execution and delivery of this Agreement. 
  
 5. Borrower hereby agrees to execute such other agreements, documents and records and to perform and refrain from performing such acts as may be deemed
necessary or appropriate by Bank to enforce Bank’s rights hereunder and under the Loan Agreement. Bank shall have the right, from time to time, to file such Financing Statements as the Bank deems necessary or advisable and to include in such
Financing Statements all information regarding Borrower as Bank deems necessary or advisable for the purpose of protecting and perfecting Bank’s interests under this Agreement and in and to the Intellectual Property, including, without
limitation, tax identification numbers and other identifying numbers and information relative to the Intellectual Property. 
  
 6. This Agreement shall inure to the benefit of Bank and its successors and assigns, and shall be binding upon Borrower, its heirs, successors and
assigns. 
  
 7. This Agreement shall be governed by and construed
in accordance with the laws of the State of North Carolina, excluding therefrom any principle of such laws which might result in the application of the laws of another jurisdiction. In addition, (i) no amendment of and waiver of a right under
this Agreement will be binding on Bank unless it is in writing and signed by Bank, (ii) to the extent a provision of this Agreement is unenforceable, this Agreement will be construed as if the unenforceable provision were omitted, (iii) a
successor to and assignee of Bank’s rights and obligations 

  

 2 

 
under the Loan Agreement will succeed to Bank’s rights under this Agreement and (iv) all notices and other communications required or permitted
herein shall be in writing and shall be deemed given when mailed by registered or certified mail, postage prepaid, return receipt requested, addressed to the addresses set forth above. 
  
 (Signatures Appear on Next Page) 
  

 3 

 IN WITNESS WHEREOF, the Borrower has caused this Agreement to be duly executed as of the date first
written above. 
  

									
	BORROWER:	 	 	 	 
			
	ETRIALS WORLDWIDE, INC.,	 	 	 	 Witness:

	 A Delaware Corporation
	 	 	 	 
					
	By:	 	/s/    JAMES W. CLARK,
JR.        	 	 	 	 	 	/s/    CAROLINE H.
ROCKAFELLOW        
	 Print Name:
	 	James W. Clark, Jr.	 	 	 	 Print Name:
	 	Caroline H. Rockafellow
	 Title:
	 	Treasurer & CEO	 	 	 	 	 	 

  

 4 

  
 EXHIBIT A 

 
 COPYRIGHTS 
  

					
	 Description

	  	 Registration

 Number

	  	 Registration

 Date

	 	  	 	  	 
	 	  	 	  	 

  
 EXHIBIT B 

 
 PATENTS 
  

					
	 Description

	  	 Registration/
 Application
 Number

	  	 Registration/
 Application
 Date

	 	  	 	  	 
	 	  	 	  	 

  
 EXHIBIT C 

 
 TRADEMARKS 
  

									
	 Mark

	  	 Design

	  	Class

	  	Registration/Application
No.

	  	Filing Date

	 StudyPharm
	  	(3) DESIGN PLUS WORDS, LETTERS, AND/OR NUMBERS	  	42	  	76382106	  	3/14/02
	 etrials
	  	 	  	9	  	75631080	  	2/1/99

  
 EXHIBIT D 
  
 Permitted Encumbrances 
  
 None 
  

 8

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