Document:

Form of Severance Protection Agreement

 Exhibit 10.1 
 SEVERANCE PROTECTION AGREEMENT 
 SEVERANCE PROTECTION AGREEMENT, dated September
    , 2007, by and between MediciNova, Inc., a Delaware corporation (the “Company”), and
                     (the “Executive”). 
 PURPOSE 
 The Board of Directors of the Company (the “Board”) recognizes that the possibility of a Change in
Control (as hereinafter defined) of the Company exists and that the threat or occurrence of a Change in Control may result in the distraction of its key management personnel because of the uncertainties inherent in such a situation. 
 The Board has determined that it is essential and in the best interests of the Company and its stockholders to retain the services of the Executive in
the event of the threat or occurrence of a Change in Control and to ensure the Executive’s continued dedication and efforts in such event without undue concern for the Executive’s personal financial and employment security. 
 In order to induce the Executive to remain in the employ of the Company, particularly in the event of the threat or occurrence of a Change in Control,
the Company desires to enter into this Agreement to provide the Executive with certain benefits in the event the Executive’s employment is terminated as a result of, or in connection with, a Change in Control. 
 NOW, THEREFORE, in consideration of the respective agreements of the parties contained herein, it is agreed as follows: 
 SECTION 1. Definitions. 
 For
purposes of this Agreement, the following terms have the meanings set forth below: 
 “Accrued Compensation” means an
amount which includes all amounts earned or accrued by the Executive through and including the Termination Date but not paid to the Executive on or prior to such date, including (a) all base salary, (b) reimbursement for all reasonable and
necessary expenses incurred by the Executive on behalf of the Company during the period ending on the Termination Date, (c) all vacation pay and (d) all bonuses and incentive compensation (other than the Pro Rata Bonus). 
 “Base Salary Amount” means the greater of the Executive’s annual base salary (a) at the rate in effect on the
Termination Date and (b) at the highest rate in effect at any time during the 180-day period prior to a Change in Control, and will include all amounts of the Executive’s base salary that are deferred under any qualified or non-qualified
employee benefit plan of the Company or any other agreement or arrangement. 
 “Beneficial Owner” has the meaning as
used in Rule 13d-3 promulgated under the Securities Exchange Act. The terms “Beneficially Owned” and “Beneficial Ownership” each have a correlative meaning. 

 “Board” means the Board of Directors of the Company. 
 “Bonus Amount” means the greater of (a) the annual bonus paid or payable to the Executive pursuant to any annual bonus or
incentive plan maintained by the Company in respect of the fiscal year ending immediately prior to the fiscal year in which the Termination Date occurs, (b) the average of the annual bonus paid or payable to the Executive pursuant to any annual
bonus or incentive plan maintained by the Company in respect of each of the three fiscal years ending immediately prior to the fiscal year in which the Termination Date occurs (or, if higher, ending in respect of each of the three fiscal years
ending immediately prior to the year in which the Change in Control occurs) or (c) in the event that the Executive was not employed by the Company for the entire fiscal year ending immediately prior to the fiscal year in which the Termination
Date occurs, the annual target bonus established and payable to the Executive pursuant to any annual bonus or incentive plan maintained by the Company in respect of the fiscal year ending during the fiscal year in which the Termination Date occurs.
Bonus Amount includes only the short-term incentive portion of the annual bonus and does not include restricted stock awards, options or other long-term incentive compensation awarded to the Executive. 
 “Cause” for the termination of the Executive’s employment with the Company will be deemed to exist if (a) the Executive
has been convicted for committing an act of fraud, embezzlement, theft or other act constituting a felony (other than traffic related offenses or as a result of vicarious liability), (b) the Executive willfully engages in illegal conduct or
gross misconduct that is significantly injurious to the Company; however, no act or failure to act on the Executive’s part shall be considered “willful” unless done or omitted to be done by the Executive not in good faith and without
reasonable belief that his or her action or omission was in the best interest of the Company or (c) failure to perform his or her duties in a reasonably satisfactory manner after the receipt of a notice from the Company detailing such failure
if the failure is incapable of cure, and if the failure is capable of cure, upon the failure to cure such failure within 30 days of such notice or upon its recurrence. 
 “Change in Control” of the Company means, and shall be deemed to have occurred upon, any of the following events: 
 (a) The acquisition by any Person of beneficial ownership (as defined in Rule 13d-3 of the General Rules and Regulations under the Securities Exchange Act) of forty percent (40%) or more of the outstanding voting
securities; provided, however, that the following acquisitions shall not constitute a Change in Control for purposes of this subparagraph (a): (A) any acquisition directly from the Company; (B) any acquisition by the Company or any of its
Subsidiaries; (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any of its Subsidiaries; or (D) any acquisition by any corporation pursuant to a transaction which complies with
clauses (i), (ii) and (iii) of subparagraph (c) below; or 
 (b) Individuals who, as of September 1, 2007, constitute the
Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual who becomes a director of the Company subsequent to 
  

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September 1, 2007, and whose election, or whose nomination for election by the Company’s stockholders, to the Board was either (i) approved by
a vote of at least a majority of the directors then comprising the Incumbent Board or (ii) recommended by a nominating committee comprised entirely of directors who are then Incumbent Board members shall be considered as though such individual
were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation
14A promulgated under the Securities Exchange Act), other actual or threatened solicitation of proxies or consents or an actual or threatened tender offer; or 
 (c) Consummation of a reorganization, merger, or consolidation or sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), in each case unless following
such Business Combination, (i) all or substantially all of the Persons who were the Beneficial Owners, respectively, of the outstanding shares and outstanding voting securities immediately prior to such Business Combination own, directly or
indirectly, more than fifty percent (50%) of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors of the Company, as the case may be, of the entity resulting from the
Business Combination (including, without limitation, an entity which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the
same proportions as their ownership, immediately prior to such Business Combination, of the outstanding voting securities (provided, however, that for purposes of this clause (i) any shares of common stock or voting securities of such resulting
entity received by such Beneficial Owners in such Business Combination other than as the result of such Beneficial Owners’ ownership of outstanding shares or outstanding voting securities immediately prior to such Business Combination shall not
be considered to be owned by such Beneficial Owners for the purposes of calculating their percentage of ownership of the outstanding common stock and voting power of the resulting entity); (ii) no Person (excluding any entity resulting from
such Business Combination or any employee benefit plan (or related trust) of the Company or such entity resulting from the Business Combination) beneficially owns, directly or indirectly, forty percent (40%) or more of the combined voting power
of the then outstanding voting securities of such entity resulting from the Business Combination unless such Person owned forty percent (40%) or more of the outstanding shares or outstanding voting securities immediately prior to the Business
Combination; and (iii) at least a majority of the members of the Board of the entity resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or the action of the Board,
providing for such Business Combination; or 
 (d) Approval by the Company’s stockholders of a complete liquidation or dissolution of
the Company. 
 For purposes of clause (c), any Person who acquires outstanding voting securities of the entity resulting from the Business
Combination by virtue of ownership, prior to such Business Combination, of outstanding voting securities of both the Company and the entity or entities with which the Company is combined shall be treated as two Persons after the Business
Combination, 

  

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who shall be treated as owning outstanding voting securities of the entity resulting from the Business Combination by virtue of ownership, prior to such
Business Combination of, respectively, outstanding voting securities of the Company, and of the entity or entities with which the Company is combined. 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Company” means MEDICINOVA, INC., a Delaware corporation, provided that in recognition of the fact that the Executive may be employed by a direct or indirect Subsidiary of
MEDICINOVA, INC., the term “Company” when referring to the employment relationship and the compensation or benefits related thereto shall include the employer of Executive as the context
requires. 
 “Continuation Period” has the meaning set forth in Section 3.1(b)(iii). 
 “Disability” means the status of disability determined conclusively by the Company based upon certification of disability by the
Social Security Administration or upon such other proof as the Company may reasonably require, effective upon receipt of such certification or other proof by the Company. 
 “Full Release” means a written release, timely executed so that it is fully effective as of the date of payment pursuant to Section 3.1(b)(ii), in a form satisfactory to the Company and
counsel pursuant to which the Executive fully and completely releases the Company from any and all claims that the Executive may have against the Company or its affiliates (other than any claims that may or have arisen under this Agreement).

 “Good Reason” means the occurrence of any of the events or conditions described in clauses (a) through
(e) hereof, without the Executive’s prior written consent: 
 (a)(i) any material adverse change in the Executive’s status,
position or responsibilities (including reporting responsibilities) from the Executive’s status, position or responsibilities as in effect at any time within 180 days preceding the date of the Change in Control or at any time thereafter,
(ii) any assignment to the Executive of duties or responsibilities which are materially and adversely inconsistent with the Executive’s status, position or responsibilities as in effect at any time within 180 days preceding the date of the
Change in Control or at any time thereafter or (iii) in the case of an Executive who is an executive officer of the Company a significant portion of whose responsibilities relate to the Company’s status as a public company, the failure of
such Executive to continue to serve as an executive officer of a public company, in each case except in connection with the termination of the Executive’s employment for Disability, Cause, as a result of the Executive’s death or by the
Executive other than for Good Reason; 
 (b) a material reduction in Executive’s base salary; 
 (c) the imposition of a requirement that the Executive be based at any place outside a 50-mile radius from the Executive’s principal place of
employment immediately prior to the Change in Control, except for reasonably required travel on Company business which is not materially greater in frequency or duration than prior to the Change in Control; 
  

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 (d) any material breach by the Company of any provision of this Agreement or any other agreement to which
the Company and the Executive are parties; or 
 (e) the failure of the Company to obtain, as contemplated in Section 7, an agreement,
reasonably satisfactory to the Executive, from any Successor to assume and agree to perform this Agreement. 
 Notwithstanding anything to
the contrary in this Agreement, no termination will be deemed to be for Good Reason hereunder if it results from an action not taken by the Company in bad faith and which is remedied by the Company within 30 days after receipt of notice thereof
given by the Executive. 
 “Notice of Termination” means a written notice from the Company or the Executive of the
termination of the Executive’s employment which indicates the specific termination provision in this Agreement relied upon and which sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the
Executive’s employment under the provision so indicated. Any such notice given by Executive of a termination for Good Reason shall be given within 90 days of the occurrence giving rise to such termination for Good Reason. 
 “Person” has the meaning as defined in Section 3(a)(9) of the Securities Exchange Act and used in Section 13(d) or
14(d) of the Securities Exchange Act, and will include any “group” as such term is used in such sections. 
 “Pro Rata
Bonus” means an amount equal to the Bonus Amount multiplied by a fraction, the numerator of which is the number of days elapsed in the then fiscal year through and including the Termination Date and the denominator of which is 365.

 “Securities Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “Subsidiary” means any corporation with respect to which another specified corporation has the power under ordinary circumstances
to vote or direct the voting of sufficient securities to elect a majority of the directors. 
 “Successor” means a
corporation or other entity acquiring all or substantially all the assets and business of the Company, whether by operation of law, by assignment or otherwise. 
 “Termination Date” means (a) in the case of the Executive’s death, the Executive’s date of death, (b) in the case of the termination of the Executive’s employment with
the Company by the Executive for Good Reason, five days after the date the Notice of Termination is received by the Company, and (c) in all other cases, the date specified in the Notice of Termination; provided that if the Executive’s
employment is terminated by the Company for Cause or due to Disability, the date specified in the Notice of Termination will be at least 30 days after the date the Notice of Termination is given to the Executive. 
  

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 SECTION 2. Term of Agreement. 
 The term of this Agreement (the “Term”) will commence on the date of this Agreement, and will continue in effect until December 31,
2007; provided that on December 31, 2007 and each anniversary of such date thereafter, the Term shall automatically be extended for one additional year unless, not later than October 1 of such year, the Company or the Executive shall have
given notice not to extend the Term; and further provided that in the event a Change in Control occurs during the Term, the Term will be extended to the date 24 months after the date of the occurrence of such Change in Control. 
 Notwithstanding the foregoing and subject to Section 3.2, the Term shall be deemed to have immediately expired without any further action and this
Agreement will immediately terminate and be of no further effect if any of the following events occurs prior to a Change in Control: 
 (a)
the Executive’s employment with the Company is terminated (whether by the Company or the Executive) for any reason; 
 (b) the
Executive’s employment is not terminated but there is a change in his or her status, position or responsibilities (including reporting responsibilities) from that which applied to Executive on the date of this Agreement; or 
 (c) the Executive reaches the mandatory retirement age applicable to the Company’s executive officers under any stated policy of the Company, as may
be adopted and revised from time to time by the Board. 
 SECTION 3. Termination of Employment. 
 3.1 If, during the Term, the Executive’s employment with the Company is terminated within 12 months following a Change in Control, the Executive will
be entitled to the following compensation and benefits: 
 (a) If the Executive’s employment with the Company is terminated (i) by
the Company for Cause or Disability, (ii) by reason of the Executive’s death or (iii) by the Executive other than for Good Reason, the Company will pay to the Executive the Accrued Compensation and, if such termination is other than
by the Company for Cause, a Pro Rata Bonus. 
 (b) If the Executive’s employment with the Company is terminated (whether by the Company
or the Executive) for any reason other than as specified in Section 3.1(a), the Executive will be entitled to the following: 
 (i) the
Company will pay the Executive all Accrued Compensation and a Pro Rata Bonus; 
 (ii) subject to the Executive providing the Company with
(and not revoking) a Full Release within such period as the Company may require (but not in excess of 60 days following the Termination Date, taking into account any applicable period for revocation), the Company will pay the Executive as severance
pay, and in lieu of any further compensation for periods subsequent to the Termination Date, in a single payment an amount in cash equal to two (2) times the sum of (A) the Base Salary Amount and (B) the Bonus Amount; 
  

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 (iii) subject to Section 18, and subject to the Executive providing the Company with (and not
revoking) a Full Release and complying with his or her obligations under Section 6, the Company will, for a period of 24 months (the “Continuation Period”), at its expense provide to the Executive and the Executive’s
dependents and beneficiaries the same or equivalent life insurance, disability, medical, dental, and hospitalization benefits (the “Continuation Period Benefits”) provided at Company expense to other similarly situated executives who
continue in the employ of the Company during the Continuation Period (“similarly situated executives”). The obligations of the Company to provide the Executive and the Executive’s dependents and beneficiaries with the Continuation
Period Benefits shall not restrict or limit the Company’s right to terminate or modify the benefits made available by the Company to its similarly situated executives or other employees and following any such termination or modification, the
Continuation Period Benefits that Executive (and the Executive’s dependents and beneficiaries) shall be entitled to receive shall be so terminated or modified. The Company’s obligation hereunder with respect to the foregoing benefits will
be limited to the extent that the Executive obtains any such benefits pursuant to a subsequent employer’s benefit plans, in which case the Company may reduce the coverage of any benefits it is required to provide the Executive hereunder as long
as the coverages and benefits of the combined benefit plans are no less favorable to the Executive than the coverages and benefits required to be provided hereunder. This Section 3.1(b)(iii) will not be interpreted so as to limit any benefits
to which the Executive or the Executive’s dependents or beneficiaries may be entitled under any of the Company’s employee benefit plans, programs or practices following the Executive’s termination of employment; 
 (iv) the Company shall provide the Executive with reasonable outplacement services suitable to the Executive’s position for a period of 12 months
or, if earlier, until the first acceptance by the Executive of an offer of employment; and 
 (v) such other acceleration of vesting and
other benefits provided in other Company plans or agreements regarding options to purchase Company stock, restricted stock, deferral of stock or other equity compensation awards granted to or otherwise applicable to Executive. 
 (c) Subject to Section 18, the amounts provided for in Section 3.1(a) and Sections 3.1(b)(i) and (ii) will be paid in a single lump sum
cash payment by the Company to the Executive within five days after the Termination Date or, if later, upon the provision of a Full Release by the Executive pursuant to Section 3.1(b)(i) and the expiration of any applicable revocation period
within the time period required under Section 3.1(b)(i). 
 (d) The Executive will not be required to mitigate the amount of any payment
provided for in this Agreement by seeking other employment or otherwise, and no such payment will be offset or reduced by the amount of any compensation or benefits provided to the Executive in any subsequent employment, except as specifically
provided in Section 3.1(b)(iii) and 3.1(b)(iv). 
 3.2 Notwithstanding anything in this Agreement to the contrary, if, within the 30
days immediately preceding a Change in 

  

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Control, (i) the Executive’s employment is terminated (whether by the Company or the Executive) for any reason other than as specified in
Section 3.1(a), or (ii) (A) there is a material adverse change in the Executive’s status, position or responsibilities (including reporting responsibilities) from that which applied to Executive on the date of this Agreement, and
(B) the Executive’s employment with the Company is subsequently terminated within 24 months following a Change in Control (whether by the Company or the Executive) for any reason other than as specified in Section 3.1(a), the
Executive shall be entitled to receive the benefits provided in Section 3.1(b), provided that the amounts provided for in Sections 3.1(b)(i) and (ii) will be paid in a single lump sum cash payment by the Company to the Executive within
five days after the later of the Termination Date or the Change in Control (or, if later, upon the provision of a Full Release by the Executive pursuant to Section 3.1(b)(i) and the expiration of any applicable revocation period within such
period as the Company may require, but not in excess of 60 days following the later of the Termination Date or the Change in Control, taking into account any applicable period for revocation), subject to Section 18. 
 3.3 Except as otherwise noted herein, the compensation to be paid to the Executive pursuant to Sections 3.1(a), 3.1(b)(i) and 3.1(b)(ii) of this
Agreement (whether by reason of Section 3.1(c) or Section 3.2) will be in lieu of any similar severance or termination compensation (i.e., compensation based directly on the Executive’s annual salary or annual salary and bonus) to
which the Executive may be entitled under any other Company severance or termination agreement, plan, program, policy, practice or arrangement. With respect to any other compensation and benefit to be paid or provided to the Executive pursuant to
this Section 3, the Executive will have the right to receive such compensation or benefit as herein provided or, if determined by the Executive to be more advantageous to the Executive, similar compensation or benefits to which the Executive
may be entitled under any other Company severance or termination agreement, plan, program, policy, practice or arrangement. The Executive’s entitlement to any compensation or benefits of a type not provided in this Agreement will be determined
in accordance with the Company’s employee benefit plans and other applicable programs, policies and practices as in effect from time to time. 
 SECTION 4. Notice of Termination. 
 Following a Change in Control, any purported termination of the
Executive’s employment by the Company will be communicated by a Notice of Termination to the Executive. For purposes of this Agreement, no such purported termination will be effective without such Notice of Termination. 
 SECTION 5. Excise Tax Adjustments. 
 5.1
In the event Executive becomes entitled to receive the benefits provided pursuant to Sections 3.1(b) or 3.2 herein, and the Company determines that such benefits (the “Total Payments”) will be subject to the tax (the “Excise
Tax”) imposed by Section 4999 of the Code, or any similar tax that may hereafter be imposed, the Company shall compute the “Net After-Tax Amount,” and the “Reduced Amount,” and shall adjust the Total
Payments as described below. The Net After-Tax Amount shall mean the present value of all amounts payable to the Executive hereunder, net of all federal income, excise and employment taxes imposed on the Executive by reason of such payments. The
Reduced Amount shall mean the largest aggregate amount of the Total 

  

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Payments that if paid to the Executive would result in the Executive receiving a Net After-Tax Amount that is equal to or greater than the Net After-Tax
Amount that the Executive would have received if the Total Payments had been made. If the Company determines that there is a Reduced Amount, the Total Payments will be reduced to the Reduced Amount. Such reduction shall be made by the Company with
respect to benefits in the order and in the amounts suggested by the Executive, except to the extent that the Company determines that a different reduction or set of reductions would significantly reduce the costs or administrative burdens of the
Company. 
 5.2 For purposes of determining whether the Total Payments will be subject to the Excise Tax and the amounts of such Excise Tax
and for purposes of determining the Reduced Amount and the Net After-Tax Amount: 
 (a) Any other payments or benefits received or to be
received by the Executive in connection with a Change in Control of the Company or the Executive’s termination of employment (whether pursuant to the terms of this Agreement or any other plan, arrangement, or agreement with the Company, or with
any individual, entity, or group of individuals or entities (individually and collectively referred to in this subsection (a) as “Persons”) whose actions result in a change in control of the Company or any Person affiliated
with the Company or such Persons) shall be treated as “parachute payments” within the meaning of Section 280G(b)(2) of the Code, and all “excess parachute payments” within the meaning of Section 280G(b)(1)
of the Code shall be treated as subject to the Excise Tax, unless in the opinion of a tax advisor selected by the Company and reasonably acceptable to the Executive (“Tax Counsel”), such other payments or benefits (in whole or in
part) should be treated by the courts as representing reasonable compensation for services actually rendered (within the meaning of Section 280G(b)(4)(B) of the Code), or otherwise not subject to the Excise Tax; 
 (b) The amount of the Total Payments that shall be treated as subject to the Excise Tax shall be equal to the lesser of (i) the total amount of the
Total Payments; or (ii) the amount of excess parachute payments within the meaning of Section 280G(b)(1) of the Code (after applying clause (a) above); 
 (c) In the event that the Executive disputes any calculation or determination made by the Company, the matter shall be determined by Tax Counsel, the fees and expenses of which shall be borne solely by the Company;
and 
 (d) The Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation in the calendar
year in which the Gross-Up Payment is to be made, and state and local income taxes at the highest marginal rate of taxation in the state and locality of the Executive’s residence on the effective date of employment, net of the maximum reduction
in federal income taxes which could be obtained from deduction of such state and local taxes, taking into account the reduction in itemized deduction under Section 68 of the Code. 
  

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 SECTION 6. Covenants of the Executive. 
 During the Continuation Period following any Change in Control pursuant to which the Executive receives the benefits pursuant to Section 3.1(b)(iii),
the Executive covenants and agrees as follows: 
 (a) the Executive agrees to comply with his or her obligations under the any Inventions,
Copyright and Confidentiality Agreement that he or she entered into with the Company; and 
 (b) the Executive acknowledges that the
Executive has knowledge of confidential and proprietary information concerning the current salary, benefits, skills, and capabilities of Company employees and that it would be improper for the Executive to use such Company proprietary information in
any manner adverse to the Company’s interests. The Executive agrees that he or she will not recruit or solicit for employment, directly or indirectly, any employee of the Company during the Continuation Period. 
 SECTION 7. Successors; Binding Agreement. 
 This Agreement will be binding upon and will inure to the benefit of the Company and its Successors, and the Company will require any Successors to expressly assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession or assignment had taken place. Neither this Agreement nor any right or interest hereunder will be assignable or transferable by the Executive or by the Executive’s
beneficiaries or legal representatives, except by will or by the laws of descent and distribution. This Agreement will inure to the benefit of and be enforceable by the Executive’s legal representatives. 
 SECTION 8. Fees and Expenses. 
 The
Company will pay as they become due all legal fees and related expenses (including the costs of experts) incurred by the Executive, in good faith, in (a) contesting or disputing, any such termination of employment and (b) seeking to obtain
or enforce any right or benefit provided by this Agreement or by any other plan or arrangement maintained by the Company under which the Executive is or may be entitled to receive benefits. If the dispute is resolved by a final decision of an
arbitrator pursuant to Section 15 in the favor of the Company, the Executive shall reimburse the Company for all such legal fees and related expenses (including costs of experts) paid by the Company on behalf of the Executive. 
 SECTION 9. Notice. 
 For the purposes of
this Agreement, notices and all other communications provided for in the Agreement (including the Notice of Termination) will be in writing and will be deemed to have been duly given when personally delivered or sent by certified mail, return
receipt requested, postage prepaid, addressed to the respective addresses last given by each party to the other, provided that all notices to the Company will be directed to the attention of the Board with a copy to the Secretary of the Company. All
notices and communications will be deemed to have been received on the date of delivery thereof or on the third business day after the mailing thereof, except that notice of change of address will be effective only upon receipt. 
  

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 SECTION 10. Dispute Concerning Termination. 
 If prior to the Date of Termination (as determined without regard to this Section 10), the party receiving the Notice of Termination notifies the
other party that a dispute exists concerning the termination, the Date of Termination shall be extended until the earlier of (i) the date on which the Term ends or (ii) the date on which the dispute is finally resolved, either by mutual
written agreement of the parties or by a final judgment, order or decree of an arbitrator or a court of competent jurisdiction (which is not appealable or with respect to which the time for appeal therefrom has expired and no appeal has been
perfected); provided, however, that the Date of Termination shall be extended by a notice of dispute given by the Executive only if such notice is given in good faith and the Executive pursues the resolution of such dispute with reasonable
diligence. 
 SECTION 11. Compensation During Dispute. 
 If a purported termination occurs following a Change in Control and during the Term and the Date of Termination is extended in accordance with Section 10 hereof, the Company shall continue to pay the Executive
the full compensation in effect when the notice giving rise to the dispute was given (including, but not limited to, salary) and continue the Executive as a participant in all compensation, benefit and insurance plans in which the Executive was
participating when the Notice of Termination was given, until the Date of Termination, as determined in accordance with Section 10 hereof. Amounts paid under this Section 11 are in addition to all other amounts due under this Agreement and
shall not be offset against or reduce any other amounts due under this Agreement or otherwise. 
 SECTION 12. Nonexclusivity of Rights.

 Nothing in this Agreement will prevent or limit the Executive’s continuing or future participation in any benefit, bonus, incentive or
other plan or program provided by the Company for which the Executive may qualify, nor will anything herein limit or reduce such rights as the Executive may have under any other agreements with the Company (except for any severance or termination
provision included in any Employment Agreement covering the Executive, which in circumstances under which amounts become payable under Section 3.1(b) hereof shall be deemed superseded completely by this Agreement and of no further force and
effect). Amounts which are vested benefits or which the Executive is otherwise entitled to receive under any plan or program of the Company will be payable in accordance with such plan or program, except as specifically modified by this Agreement.

  

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 SECTION 13. No Set-Off. 
 The Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder will not be affected
by any circumstances, including any right of set-off, counterclaim, recoupment, defense or other right which the Company may have against the Executive or others. 
 SECTION 14. Miscellaneous. 
 No provision of this Agreement may be modified, waived or discharged unless such
waiver, modification or discharge is agreed to in writing and signed by the Executive and the Company. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party will be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreement or representation, oral or otherwise, express or implied, with
respect to the subject matter hereof has been made by either party which is not expressly set forth in this Agreement. 
 SECTION 15. Governing
Law and Binding Arbitration. 
 This Agreement will be governed by and construed and enforced in accordance with the laws of the State
of Delaware without giving effect to the conflict of laws principles thereof. All disputes relating to this Agreement, including its enforceability, shall be resolved by final and binding arbitration before an arbitrator appointed by the Judicial
Arbitration and Mediation Service (JAMS), with the arbitration to be held in San Diego, California. Judgment upon the award may be entered in any court having jurisdiction thereof. 
 SECTION 16. Severability. 
 The
provisions of this Agreement will be deemed severable and the invalidity or unenforceability of any provision will not affect the validity or enforceability of the other provisions hereof. 
 SECTION 17. Entire Agreement. 
 This
Agreement constitutes the entire agreement between the parties hereto and supersedes all prior agreements, if any, understandings and arrangements, oral or written, between the parties hereto with respect to severance protection in connection with a
Change in Control. 
 SECTION 18. Section 409A. 
 18.1 Notwithstanding any provision to the contrary in this Agreement, the Company shall delay the commencement of payments or benefits coverage to which the Executive would otherwise become entitled under the
Agreement in connection with his or her termination of employment until the earlier of (i) the expiration of the six-month period measured from the date of the Executive’s “separation from service” with the Company (as
such term is defined in Treasury Regulations issued under Section 409A of the Code) or (ii) the 

  

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date of the Executive’s death, if and only if the Company in good faith determines that the Executive is a “specified employee” within
the meaning of that term under Code Section 409A at the time of such separation from service and that such delayed commencement is otherwise required in order to avoid a prohibited distribution under Section 409A(a)(2) of the Code. Upon
the expiration of the applicable Code Section 409A(a)(2) deferral period, all payments and benefits deferred pursuant to this Section 18 (whether they would have otherwise been payable in a single sum or in installments in the absence of
such deferral) shall be paid or reimbursed to the Executive in a lump sum, and any remaining payments and benefits due under the Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein. 

18.2 The provisions of this Agreement which require commencement of payments or benefits coverage subject to Section 409A upon a termination of
employment shall be interpreted to require that the Executive have a “separation from service” with the Company (as such term is defined in Treasury Regulations issued under Code Section 409A). 
 18.3 The provisions of this Section 18 are intended to assure that any benefits provided to Executive hereunder shall comply with Code
Section 409A and this Agreement shall be interpreted consistent with such section in all respects. 
 IN WITNESS WHEREOF, the
undersigned have executed the above agreement as of the date set forth first above. 
  

			
	 MEDICINOVA, INC.,

	 a Delaware corporation

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 EXECUTIVE

	
	  

	 [name]

  

 13Amended and Restated Loan and Security Agreement

 EXHIBIT 10.1 
 Customer No. 
 Loan No. 
  

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

 This SECOND AMENDED AND RESTATED LOAN AND
SECURITY AGREEMENT (“Agreement”) is entered into as of the 14th day of September, 2007, by and between RBC CENTURA BANK (“Bank”) and
COMPUTER SOFTWARE INNOVATIONS, INC. (“Borrower”). 
 RECITALS 
 This Agreement amends and restates the Amended and Restated Loan and Security Agreement between Bank and Borrower dated as of January 2, 2007 (the
“Original Agreement”) as set forth hereinafter, and does not constitute a new loan or a novation of the Original Agreement. 
 Borrower wishes to obtain additional credit from time to time from Bank, and Bank desires to extend such additional 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; 

  

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(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; and (ix) the Loan Documents shall be subject to the terms and conditions of this Agreement, and in the event of a conflict between the terms and conditions of this Agreement and the terms and conditions of the
Loan Documents, the terms and conditions of this Agreement shall prevail, except that the terms of the Promissory Notes shall prevail with respect to any payment obligations of Borrower to Bank. 
 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 or has made available to Borrower the following Credit Facilities and Credit
Extensions thereunder: Revolving Facility, Equipment Facility, and Real Estate 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. 
 (i)
General. At any time from the date hereof through the Revolving Maturity Date, Bank agrees to make advances (“Advance” or “Advances”) to Borrower to fund short-term working capital and for general corporate purposes of
Borrower – and not for any other purpose. Unless otherwise agreed, Bank will make Advances on a daily basis, provided that the aggregate amount of outstanding Advances shall not exceed at any time (i) the lesser of (A) the available
amount under the Revolving Facility 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.

 (ii) Making Advances. Advances will be made every Business Day to Borrower, so long as they are supported by the Borrowing Base
and no Event of Default has occurred, is continuing, or will result in an Event of Default following the Advance. Each Advance shall be conclusively deemed to have been made at the request of and for the benefit of Borrower (A) when credited to
any deposit account of Borrower maintained with Bank; or (B) when advanced in accordance with the instructions of an authorized person. Bank, at its option, may set a cutoff time, after which all requests for Advances will be treated as having
been requested on the next succeeding Business Day. Not later than 2:00 p.m. (Eastern time) on the date on which Borrower’s request for an Advance is deemed to have been made, Bank shall make the Advance available to Borrower in immediately
available funds by crediting the amount thereof to Borrower’s account with Bank. 
 (iii) Loan Account. Bank shall maintain on
its books a record of account in which Bank shall make entries for each Advance and such other debits and credits as shall be appropriate in connection with the Revolving Facility. Bank shall provide Borrower with periodic statements of
Borrower’s account, which statements shall be considered to be correct and conclusively binding on Borrower unless Borrower notifies Bank to the contrary within thirty (30) days after Borrower’s receipt of any such statement which
Borrower deems to be incorrect. 
 (b) Equipment Facility. Bank has made a term loan to Borrower, evidenced by that certain
Commercial Promissory Note dated January 2, 2007, in the principal amount of Eight Hundred Thousand and No/100ths Dollars ($800,000.00). This Equipment Facility is fully funded as of the date of this Agreement. 
 (c) Real Estate Facility. Bank has made a term loan to Borrower, evidenced by that certain Commercial Promissory Note dated February 9,
2007, in the principal amount of Four Hundred Eighty-Six Thousand and No/100ths Dollars ($486,000.00). This Real Estate Facility is fully funded as of the date of this Agreement. 
  

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 2.2 [Intentionally Omitted]. 
 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 upon written or oral notice from Bank. 
 2.4 Charging of Payments. Upon the occurrence and during the continuation of an Event of Default hereunder, 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 and (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, upon the occurrence and during the continuation of an Event of Default, also charge all payments required to be made on any of the Obligations against the Revolving
Facility. If Bank charges the aforementioned payments against the Revolving Facility, 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) Commitment Fee.
None. 
 (b) Bank Expenses. On the Closing Date, Borrower shall pay to Bank all Bank Expenses incurred through the Closing Date,
including Bank’s legal fees, 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 impose any additional Bank Expenses upon Bank with respect to the Obligations, then Borrower agrees to pay to Bank the amount of such additional Bank Expenses 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 

  

 Page 3 of 27 

 
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 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. 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. In the case of any
Advances under the Revolving Facility, Bank shall have received, as and when required, a completed Loan Payment/Advance Request Form in form presented by and acceptable to Bank. 
 (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 each Credit Extension as though made at and as of each such date (provided, however, that those representations and warranties expressly referring to another date shall be true, correct
and complete as of such date), and no Event of Default shall have occurred and be continuing, or would exist after giving effect to such Credit Extension. 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. 
  

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 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 obligations under the Loan Documents. Except as to Permitted Liens or as Bank may
have otherwise consented hereunder or in other Loan Documents, 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, to the extent that such perfection and priority can be attained by the filing of financing statements with the Delaware Secretary of State and, with respect to Accounts where the account debtor
is the United States, a State, or any department, agency or instrumentality of the United States or a State, to the extent of compliance with the Federal Assignment of Claims Act of 1940, as amended, or with any similar and applicable state or local
law. 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 (except to the extent any such prior agreements are amended and/or restated by this Agreement). 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,
the terms and conditions of this Agreement shall prevail. 
 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. 
 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 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. Upon reasonable prior notice to Borrower, 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 and during the continuation of 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 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) to dispose of any Collateral constituting Accounts and to convert any Collateral constituting Accounts into other forms of Collateral. However, 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 an Event of Default is continuing, 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 any time 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 obligation 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 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 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, except for those jurisdictions where the failure to be so qualified would not be reasonably expected to 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 without limiting the foregoing with respect to compliance with all Requirements of Law, Borrower shall remain in material compliance
with and each of its Subsidiaries shall remain in material compliance with (i) the Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter
V, as amended) and any other enabling legislation or executive order relating thereto, and (ii) the Uniting And Strengthening America By Providing Appropriate Tools Required To Intercept And Obstruct Terrorism (USA Patriot Act of 2001).
Borrower 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. 
  

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 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) Beginning with
the quarter ended September 30, 2007, and as soon as available, but in any event within forty-five (45) days after the end of each quarter, Borrower shall deliver to Bank an unaudited consolidated balance sheet and a statement of income,
cash flow and retained earnings prepared in accordance with GAAP, consistently applied, covering Borrower’s consolidated operations during such period and for the corresponding quarter of the prior year, in a form acceptable to Bank.

 (ii) Beginning with the fiscal year ending December 31, 2007, 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 prepared in accordance with GAAP, consistently applied, by an approved CPA. 
 (b) Within twenty-five (25) days after the last day of each month so long as any amounts remain outstanding under the Revolving Facility, and
within ten (10) days prior to any borrowing under the Revolving Facility, Borrower shall deliver to Bank a Borrowing Base Certificate dated and signed by a Responsible Officer, together with an Accounts Receivable aging report, each in form
acceptable to Bank. 
 (c) Within thirty (30) days after the beginning of each fiscal year of Borrower, Borrower shall deliver to Bank
a detailed annual budget, and Borrower shall notify Bank of each material change to or deviation from such budget within five (5) Business Days after Borrower’s board of directors has approved such change or deviation. 
 (d) 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. 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
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. 
  

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 6.7 Primary Depository. Borrower shall maintain its primary operating, depository and lockbox (if
any) accounts with Bank. 
 6.8 Financial Covenants. Borrower shall maintain, as of the last day of each calendar year 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) Debt Service Coverage Ratio. As measured on December 31, 2007 and annually on the same day thereafter, a Debt Service Coverage Ratio of
not less than 1.20 to 1.0. 
 (b) Funded Debt to EBITDA. As measured on December 31, 2007 and annually on the same day
thereafter, a ratio of Funded Debt to EBITDA of not greater than 2.50 to 1.0; provided that Bank will not unreasonably withhold a waiver of this covenant in the event that Borrower consummates the acquisition of another business which has been
approved in advance by Bank. 
 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,
(i) the filing of “claims” under insurance policies and (ii) protecting, defending and maintain the validity and enforceability of the Trademarks, Patents and Copyrights. 
 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 reasonably 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 respect to both Borrower and Borrower’s Subsidiaries, by operation of law or otherwise) any of the Collateral, other than Permitted Transfers. 
 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, without the prior written consent of Bank, which consent shall not be unreasonably withheld. 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. For purposes hereof, “Change in Control” shall mean a majority of Nancy K. Hedrick, Thomas P. Clinton, William J. Buchanan, and Beverly N. Hawkins no longer being employed by Borrower as
executive officers of Borrower. 
 7.3 Mergers or Acquisitions; New Subsidiary. 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. 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 Bank. 
  

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 7.4 Indebtedness. Borrower shall not create, incur, assume or be or remain liable with respect to
any Indebtedness, or permit any Subsidiary so to do, other than Permitted Indebtedness. 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 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.

 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. Except in the absence of an Event of Default and as would not result in an Event of Default hereunder, or as consented to in writing by Bank, 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. 
 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. 
 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 Borrower’s historical practices. 
 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. Except for scheduled payments of interest and/or principal on any Subordinated Debt
to the stockholders of Borrower, 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. 
  

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 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 Foreign
Corrupt Practices. Borrower shall not use any part of or all of the Credit Extensions, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political
office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended. 
 7.18 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. 
 7.19 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. 
 8.1 Default Of Payment Obligations. The occurrence of any event of default or default condition under any Obligation regarding a payment due from
Borrower, 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. Other than a
default described in Section 8.1, Borrower fails to perform or satisfy any obligation under Section 6 or violates any covenant under 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; 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 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. 
 8.4 Material Adverse Effect. Any change in Borrower’s business or financial condition, 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, which individually or in the aggregate has or would reasonably be expected to have a Material Adverse Effect. 
  

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 8.5 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). 
 8.6 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). 
 8.7 Other Agreements. The occurrence of a default in any agreement to which Borrower is a party with a third person or persons that could have a
Material Adverse Effect. 
 8.8 Subordinated Debt. Borrower makes any payment on account of Subordinated Debt, except to the extent
the payment is allowed hereunder or under any subordination agreement entered into with Bank. 
 8.9 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. 
 8.10 Receivership. The application for the
appointment of a receiver for Borrower that is not dismissed, stayed or terminated within thirty (30) days. 
 8.11 Dissolution.
The dissolution or termination of existence of Borrower. 
 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). 
  

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 (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, including, modifying, in its sole discretion, any intellectual property security agreement entered into between Borrower
and Bank without first obtaining Borrower’s approval of or signature to such modification by amending Exhibits A and B thereof, as appropriate, to include reference to any right, title and interest in any Copyrights, Patents and
Trademarks acquired by Borrower after the execution hereof and transferring the Intellectual Property Collateral into the name of Bank or a third person to the extent permitted under the Code. 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 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 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, in 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; and (ii) 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 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. 
  

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 (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. 
 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 receipt requested, or by facsimile to Borrower or to Bank, as the case may
be, at their respective addresses as set forth below. 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. 
 Borrower: 
 Computer Software Innovations, Inc. 
 900 East Main Street, Suite T 
 Easley, South Carolina 29640 
 Attn: David Dechant 
 Bank: 
 RBC Centura Bank 
 531 South Main Street 
 Greenville, South Carolina 29601 
 Attn: Charles Arndt, S.V.P. 
 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. 
  

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 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 governed by and construed in accordance with the substantive laws of the State of South Carolina, excluding, however, the conflict of law provisions thereof, and except to the extent that
the Code of another jurisdiction is applicable to the Collateral. 
 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. 
 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 and other information in Bank’s possession relative to 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. 
  

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 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 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, and including the
Commitment Letter, are merged into this Agreement and the Loan Documents. 
  

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 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 Amendment and Restatement. This
Agreement amends and restates in its entirety, the Amended and Restated Loan and Security Agreement between Borrower and Bank dated as of January 2, 2007. This Agreement does not extinguish the indebtedness outstanding in connection therewith,
nor is it intended to constitute a novation with respect to the indebtedness outstanding thereunder. 
 12.15 Waiver of Default.
Notwithstanding any other provision of this Agreement, the following events or occurrences shall not constitute an Event of Default hereunder, or under any other Loan Document: 
 (a) Any currently existing or continuing default by Borrower under its Subordinated Debt obligations. 
 (b) The conversion of Borrower’s preferred stock and/or the exercise of Borrower’s warrants issued to Barron Partners LP (“Barron”)
and/or Barron’s sale of any of shares of Borrower’s stock, even if such event(s) would result in a Change of Control; and 
 (c)
Borrower’s inability to provide Bank with a first-priority, perfected Lien on the Collateral, including the Intellectual Property Collateral or Software Products, as a result of Requirements of Law that provide for perfecting and/or evidencing
a security interest other than by a filing of a Financing Statement pursuant to the Code; provided, however, that this waiver shall not limit Bank’s ability to require Borrower to cooperate in perfecting a security interest in Collateral
acquired in the future. 
 [THE NEXT PAGE IS THE SIGNATURE PAGE] 
  

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

									
	COMPUTER SOFTWARE INNOVATIONS, INC.	 		 	Witness:
				
	By:	 	 /s/ David Dechant
	 		 	 /s/ Wendy Knorr
  

	Print Name:	 	 David Dechant
	 		 	Print Name:	 	 Wendy Knorr

	Title:	 	 CFO
	 		 		 	

  

									
	RBC CENTURA BANK	 		 	Witness:
				
	By:	 	 /s/ Charles M. Arndt
	 		 	 /s/ Seann G. Tzouvelekas
  

	Print Name:	 	 Charles M. Arndt
	 		 	Print Name:	 	 Seann G. Tzouvelekas

	Title:	 	 Mkt. Exec.
	 		 		 	

  

 Page 18 of 27 

 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 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 (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 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 Second Amended and Restated 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 reasonable out of pocket costs and expenses 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. 
 “Borrower” means Computer Software Innovations, 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 eighty percent (80%) of Eligible
Accounts plus fifty percent (50%) of Eligible Inventory (with a maximum borrowing ability against Eligible Inventory of $1,000,000.00), 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 South 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. 
  

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 “Change in Control” shall mean (i) 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; and/or (ii) a majority of Nancy K. Hedrick, Thomas P. Clinton, William J. Buchanan, and Beverly N. Hawkins no longer being employed by Borrower as executive officers of Borrower

 “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. 
 “CMLTD” means Current Maturities of Long Term Debt as generally defined by GAAP, but excluding principal owing under the Subordinated Debt. 
 “Code” means the Uniform Commercial Code as in effect, from time to time, in the State of South Carolina, except to the extent that the Code of another
jurisdiction is applicable to the Collateral. 
 “Collateral” means the property and property rights described on Exhibit B and all
Negotiable Collateral and Intellectual Property Collateral to the extent not described on Exhibit B. 
 “Commitment” means the letter
dated September 10, 2007 under which Bank committed to enter into this Agreement with Borrower. 
 “Contingent Obligation” or
“Contingent Liability” 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 obligation 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. 
 “Credit Extension” means each Advance or other extension of credit or financing by Bank for the benefit of Borrower hereunder. 
 “Credit Facilities” is a reference to the credit facilities available under this Agreement and can include one or more of the Revolving Facility, the Equipment Facility and the Real Estate Facility.

 “Debt Service Coverage Ratio” means EBITDA plus non-recurring special items, divided by CMLTD, plus Interest Expense. 
 “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”. 
 “EBITDA” means the total of (i) net income from continuing operations (excluding extraordinary gains or losses), and to the extent deducted in
determining net income (ii) Interest Expense, (iii) income taxes, (iv) depreciation, depletion and amortization expenses. 
 “Eligible
Accounts” means only those Accounts that are within the meaning of the term “account” as defined under the Code that are in existence, 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. 

  

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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; excepting, however, e-rate accounts which shall remain eligible until payment has remained outstanding one hundred twenty (120) days after the invoice date; (ii) Accounts subject to any security
interest or encumbrance ranking or capable of ranking in priority to the security interest of the Bank therein; (iii) 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, 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; (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 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; (viii) 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 (ix) Accounts the collection of which Bank reasonably determines after 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. 
 “Eligible Inventory” means finished goods, as defined under the Code, which are owned and held for sale by Borrower in the ordinary course of Borrower’s business. 
 “Equipment Facility” means the Credit Extension for equipment financing in the principal amount of $800,000.00. 
 “Event of Default” has the meaning assigned in Section 8. 
 “Funded Debt” means, at any time, all obligations for borrowed money which bear interest or to which interest is imputed plus, without duplication, all obligations for the deferred payment of the purchase of property, all
Capitalized Lease obligations and all Indebtedness. 
 “GAAP” means generally accepted accounting principles and practices in effect from
time to time as promulgated by the American Institute of Certified Public Accountants. 
 “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, (e) all indebtedness under agreements relating to derivatives transactions (e.g. interest rate swaps, caps, floors or collar transactions, or other similar transactions
made pursuant to an International Swap Dealers Association, Inc. Master Agreement or similar agreement), and (f) 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, extensions generally with its creditors, or proceedings seeking reorganization, arrangement or other relief. 
 “Intellectual Property Collateral” 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; 

  

 Page 21 of 27 

 
(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. 
 “Interest Expense” means the total of the costs of advances outstanding under Indebtedness including (i) interest charges, (ii) capitalized interest, (iii) the interest
component of Capitalized Leases, (iv) fees payable in respect of letters of credit and letters of guarantee, and (v) discounts incurred and fees payable in respect of bankers’ acceptances. 
 “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. 
 “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, including, without limitation, indebtedness under agreements relating to derivatives transactions (e.g. interest rate swaps, caps, floors or collar transactions, or other similar transactions made pursuant to an
International Swap Dealers Association, Inc. Master Agreement or similar agreement), 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. 
 “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 to and approved by Bank; (iii) Subordinated Debt; and
(iv) Indebtedness contained in Borrower’s annual budget submitted to and approved by Bank. 
 “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 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 

  

 Page 22 of 27 

 
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; (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 non-exclusive licensing of technology, the development of technology or the providing of technical support. 
 “Permitted Liens” means the following: (i) any Liens existing on the Closing Date and disclosed to and approved by Bank 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 (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. 
 “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. 
 “Real Estate Facility” means the
Credit Extension for real estate financing in the principal amount of $486,000.00. 
 “Requirement of Law” means as to any person, 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 President, the Executive Vice-President, and the Chief Financial Officer of Borrower. 
 “Revolving Facility” means a revolving
line of credit and Credit Extensions thereon, in a principal amount not to exceed $7,000,000.00. 
 “Revolving Maturity Date” means
June 30, 2009. 
 “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. 
  

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 “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. 
  

 Page 24 of 27 

 EXHIBIT B 
  

			
	DEBTOR:	  	COMPUTER SOFTWARE INNOVATIONS, 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-extracted collateral, cash proceeds, chattel paper, commercial tort claims, deposit accounts, documents, equipment, farm products, fixtures, financial assets,
general intangibles, goods, instruments, inventory, investment property, letter of credit rights, letters of credit, money, non-cash proceeds, proceeds, intellectual property, software, supporting obligations and other personal property, both now
existing and hereafter existing, acquired and arising, owned by Borrower and in which Borrower has any property rights and benefits, of whatsoever kind and description, wheresoever located and inclusive of property in Borrower’s constructive
possession and control, property in Borrower’s actual possession and control and property in the possession and control of a third person for and on behalf of Borrower; and, without limiting the foregoing but in furtherance thereof, the
following now existing and hereafter acquired and arising property and property rights and benefits, together with all replacements, substitutions, additions, accessions, products and proceeds thereof and of anything described herein;

  

	(ii)	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 South Carolina and the Uniform Commercial Code of any
other jurisdiction applicable to the Collateral) 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, investment property, 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 the 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 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, computer source codes, computer programs embedded in goods that consist solely of the medium in which the program is embedded and
other computer programs and supporting information (collectively, the “Software Products”), and all common law and statutory copyrights and copyright registrations, applications for registration, now existing and hereafter arising, United
States and foreign, obtained and to be obtained on or in connection with the Software Products, and any parts thereof and any underlying and component elements of the Software Products, together with the right to copyright and all rights to renew
and extend such copyrights and the right (but not the obligation) of Bank to sue in its own name and in the name of Borrower for past, present and future infringements of copyright; 

  

 Page 25 of 27 

	(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; 

  

	(vi)	all now existing and hereafter arising copyrights, trademarks, service marks, trade names and service names and the goodwill associated therewith; 

  

	(vii)	all now existing and hereafter arising (a) patents and patent applications filed in the United States Patent and Trademark Office or any similar office of any foreign
jurisdiction, and interests under patent license agreements, including, without limitation, the inventions and improvements described and claimed therein; (b) licenses pertaining to any patent whether Borrower is licensor or licensee;
(c) income, royalties, damages, payments, accounts and accounts receivable now due and those hereafter arising and due under and with respect thereto, including, without limitation, damages and payments for past, present and future
infringements thereof; (d) the right (but not the obligation) to sue for past, present and future infringements thereof; (e) rights corresponding thereto throughout the world in all jurisdictions in which such patents have been issued or
applied for; and (f) the reissues, divisions, continuations, renewals, extensions and continuations-in-part with any of the foregoing (all of the foregoing patents and applications and interests under patent license agreements, together with
the items described in clauses (a) through (f) in this paragraph are sometimes herein individually and collectively referred to as the “Patents”); 

  

	(viii)	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; 

  

	(ix)	All general intangibles (as such term is defined in Article 9 of the Uniform Commercial Code in effect from time to time in the State of South Carolina and the Uniform Commercial
Code of any other jurisdiction applicable to the Collateral) of Borrower, whether now existing or hereafter owned, acquired or arising , or in which Borrower now has or hereafter acquires any rights, and, to the extent not included in the term
general intangibles as so defined after ascribing a broad meaning thereto, all now existing and hereafter acquired things in action, payment intangibles, rights to payment of loan funds not evidenced by chattel paper or an instrument, contract
rights, causes of action, business records, inventions, designs, patents, patent applications, software, trademarks, trademark registrations and applications therefor, goodwill, trade names, trade secrets, trade processes, copyrights, copyright
registrations and applications therefor, licenses, permits, franchises, customer lists, computer programs, all claims under guaranties and other supporting obligations, tax refund claims, claims under letters-of-credit and all letter-of-credit
rights, rights and claims against carriers and shippers, leases, claims under insurance policies, condemnation proceeds, all rights to indemnification and all other intangible personal property of every kind and nature, together with the proceeds of
all of the general intangibles and other property and property rights described hereinabove; and 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. 

  

	(x)	 All equipment (as such term is defined in Article 9 of the Uniform Commercial Code in effect from time to time in the State of South Carolina and the Uniform
Commercial Code of any other jurisdiction applicable to the Collateral) of Borrower, whether now existing or hereafter owned, acquired or arising, or in which Borrower now has or hereafter acquires any rights, including, without limitation,
equipment now in Borrower’s possession and control, equipment in transit, equipment in storage and equipment hereafter acquired by way of replacement, substitution, addition or otherwise, and, to the extent not included in the term equipment as
so defined after ascribing a broad meaning thereto, all now existing and hereafter acquired furniture, furnishings, fixtures (including, without limitation, those located at, upon or about, or attached to, the real estate described herein),
machinery, parts, supplies, apparatus, appliances, patterns, molds, dies, blueprints, fittings and computer systems and related hardware and software of every 

  

 Page 26 of 27 

	 	 
description, together with (i) the proceeds and products of all of the equipment and other property and property rights described hereinabove,
including, without limitation, insurance proceeds and condemnation proceeds, (ii) all books and records, abstracts of title, leases and all other contracts and agreements relating thereto or used in connection therewith and (iii) 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; and 

 

	(xi)	All inventory (as such term is defined in Article 9 of the Uniform Commercial Code in effect from time to time in the State of South Carolina and the Uniform Commercial Code of any
other jurisdiction applicable to the Collateral) owned by Borrower and all inventory in which Borrower has any rights (including, without limitation, rights to grant a security interest in inventory owned by other persons), both now existing and
hereafter owned, acquired and arising, including, without limitation, inventory in transit, inventory in the constructive possession and control of Borrower, inventory in the actual possession and control of Borrower and inventory held by others for
Borrower’s account; and, to the extent not included in the term inventory as so defined after ascribing a broad meaning thereto, all now existing and hereafter acquired goods manufactured or acquired for sale or lease, and any piece goods, raw
materials, as extracted collateral, work in process and finished merchandise, component materials, and all supplies, goods, incidentals, office supplies, packaging materials and any and all items used or consumed in the operation of the business of
Borrower or which may contribute to the finished product or to the sale, promotion and shipment thereof by Borrower and by others on the account of Borrower, together with (i) the proceeds and products of all of the inventory and other property
and property rights described hereinabove, (ii) all additions and accessions thereto and replacements and substitutions therefore, (iii) all documents related thereto and (iv) 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. 

  

 Page 27 of 27

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