Document:

exv4w4

 

Exhibit 4.4

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS (“BLUE SKY LAWS”) AND MAY NOT BE
OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS REGISTERED THEREUNDER OR EXEMPT FROM
REGISTRATION.

WARRANT TO PURCHASE SHARES OF PREFERRED STOCK OF

Aruba, Inc. a Delaware corporation

(the “Company”)

located at:

180 Great Oaks Blvd., Suite B

 San Jose, CA 95119

Issuance Date: July 31, 2003

     1. Right to Acquire Securities.

     1.1 Price, Quantity and Term.

          (a) Grant. Subject to the terms and conditions hereinafter set forth, this Warrant certifies
that for value received Costella Kirsch Venture Partners I, L.P. and its registered assigns
(collectively, “Holder”), are entitled at any time, and from time to time, before Expiration (as
defined below), to purchase from Company up to that number of shares of Preferred Stock of the
Company equal to $25,000 (the “Exercise Quantity”) divided by the Exercise Price (defined below) as
constituted on the Warrant Issue Date (the “Preferred Stock”). The series of Preferred Stock for
which this Warrant is exercisable shall be (i) Series A Preferred Stock of the Company (“Series A
Preferred Stock”) in the event that the Exercise Price is based on the Series A Preferred Stock
price or (ii) the next series of Preferred Stock of the Company issued and sold by the Company in
an equity financing following the Issuance Date (the “Next Series Preferred Stock”) in the event
that the Exercise Price is based on the Next Series Preferred Stock price. As used herein,
“Warrant Shares” refers to the shares of Preferred Stock purchasable upon exercise of this Warrant,
as adjusted from time to time pursuant to the provisions of this Warrant, and the shares of any
class of securities resulting from any reclassifications of the Preferred Stock, including any
conversion thereof to Common Stock, or from any applicable event described in Section 3.
References to “Common Stock” include any present or future class of Company’s capital stock whose
holders are not limited to a fixed percentage or sum with respect to dividends or liquidation
proceeds, unless the context otherwise requires.

          (b) Exercise Price. The purchase price per share for the Preferred Stock, as adjusted from
time to time pursuant to Section 3 hereof (the “Exercise Price”), shall be either (i) $0.667 (as
adjusted from time to time pursuant to Section 3 hereof) (which is equal to the per share price at
which the Company has issued Series A Preferred Stock) or (ii) the per share price at which the
Company issues Next Series Preferred Stock, whichever of (i) or (ii) would result in the issuance
of a greater number of shares of Common Stock upon exercise of this Warrant (as determined on an
as-converted basis at the time of exercise of this Warrant). This Warrant shall be exercisable for
Series A Preferred Stock, at a purchase price per share equal to $0.667 (as adjusted from time to
time pursuant to Section 3 hereof), upon any exercise of this Warrant prior to the issuance by the
Company of Next Series Preferred Stock.

          (c)
Expiration. This Warrant shall expire (“Expiration”) at 5:00 p.m., Los Angeles time, on
the seventh anniversary of the Issuance Date; provided, however, that in the event of the closing
of the acquisition of the Company (“Acquisition”) by another company that is publicly traded on a
securities exchange or through the Nasdaq National Market by means of merger, consolidation or
other transaction or series of related transactions, resulting in the transfer of 50% or more of
the outstanding voting power of the Company and pursuant to which the per share gross proceeds to
be distributed to the Company’s stockholders equals or exceeds three (3) times the Exercise Price
(such amount calculated based on the number of shares of Common Stock, assuming the exercise and
conversion of all then-outstanding

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exercisable and convertible securities outstanding immediately prior to the closing of the
Acquisition), this Warrant shall, on the date of such event, be deemed to be exercised in full in
the manner set forth in Section 1.3(b). In the event of a proposed Acquisition, the Company shall
notify the holder of the Warrant at least twenty (20) days prior to the consummation of such
Acquisition. Any exercise of this Warrant made in conjunction with a proposed Acquisition may be
made conditional on the actual closing of such Acquisition. Notwithstanding the foregoing, this
Warrant shall automatically be converted into Warrant Shares prior to Expiration pursuant to
Section 1.3(b) hereof, without any action by Holder, immediately before Expiration.

     1.2 Right to Exercise.

          (a) Notice. Holder may exercise all or a portion of this Warrant at any time, and from time to
time, before Expiration, by delivering a written notice of exercise (a form of which is attached
hereto as Exhibit A) to Company, specifying (i) the number of Warrant Shares to be purchased, (ii)
the proposed registered holders of Warrant Shares and any Related Warrants (as defined in Section
7), and (iii) a date of exercise determined by Holder (the “Exercise Date”) not more than twenty
business days after such notice.

          (b) Exercise. On the Exercise Date, (i) Holder will present to Company this Warrant and a
check for the aggregate Exercise Price of the Warrant Shares purchased and (ii) as soon as
practicable after the Exercise Date, Company will give Holder (A) certificate(s) for the Warrant
Shares issuable upon such exercise; (B) any cash and non-cash consideration, including securities,
to which Holder is entitled with respect to the Warrant Shares (collectively, “Other
Consideration”) and, if applicable, (C) a Related Warrant (as defined in Section 7) representing
the unexercised portion hereof.

     1.3 Right to Convert.

          (a) Notice. Holder may require Company to convert all or a portion of this Warrant into
Warrant Shares without payment by Holder of any money or other consideration (the “Conversion
Right”) at any time, and from time to time, before Expiration, by delivering a written notice of
exercise to Company (a form of which is attached hereto as Exhibit A), specifying (i) the
proportion of this Warrant to be converted into Warrant Shares (the “Converted Portion”), (ii) the
proposed registered holders of Warrant Shares and any Related Warrants and (iii) a date of
conversion determined by Holder (the “Conversion Date”) not more than twenty business days
thereafter.

          (b) Conversion. On the Conversion Date, Holder will surrender this Warrant and Company will
give Holder (i) certificate(s) for that number of Warrant Shares as determined using the following
formula:

	 	 	 	 	 	 	 
	 

	 	X =
	 	Y (A - B)
	 	 
	 

	 	 	 	A	 	 

	 	 	 
	Where

	 	X = The number of shares of Warrant Shares to be issued to the Holder.
	 
	 	 
	 

	 	Y = The number of Converted Portion Warrant Shares this Warrant
is exercisable for (at the date of such calculation)
	 
	 	 
	 

	 	A = The Fair Market Value (as defined below) of one Warrant
Share (at the date of such calculation).
	 
	 	 
	 

	 	B = The Exercise Price (as adjusted to the date of such calculation);

(ii) any Other Consideration and, if applicable, (iii) a Related Warrant representing the
unconverted portion hereof.

          1.4 Fair Market Value. Fair Market Value of a share of Preferred Stock is the Fair Market
Value of a share of Common Stock multiplied by the number of shares of Common Stock into which

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Preferred
Stock may then be converted. “Fair Market Value” of a share of Common Stock as of a
particular date means: (a) if traded on an exchange or quoted on the NASDAQ National Market System,
then the prior trading day’s closing price, (b) if conversion or exercise is on a date from the
filing of, through to the effective date of, the registration statement for an underwritten public
offering registered under the Securities Act, the initial public offering price (before deducting
commissions, discounts or expenses) per share sold in such offering, (c) if listed by the National
Daily Quotation Service “Pink Sheets,” then the average of the most-recently reported bid and ask
prices and (d) otherwise, the price, not less than book value, determined in good faith and in such
reasonable manner as prescribed by a majority of Company’s Directors who are not Company officers
or employees (the “Outside Directors”); provided, however, that Company will notify Holder of such
price within ten business days following receipt of Holder’s notice of exercise.

     1.5 Authorization. Company will at all times reserve and keep available out of its authorized
but unissued capital stock, and will take all such action and obtain all such permission necessary
to enable Company lawfully to issue, the full number of Warrant Shares deliverable upon exercise
or conversion hereof or deliverable upon any permitted conversion into Common Stock of the Warrant
Shares, as such number may be adjusted from time to time. Company will not create a Warrant Share
with a par value higher than the applicable Exercise Price.

     2. Registration Rights. The Company agrees that upon the earlier of (x) when the Company
next amends its Investors’ Rights Agreement, dated April 19, 2002, by and among the Company and
certain of its stockholders (the “Investors’ Rights Agreement”), or (y) when the Company
consummates its initial public offering, the Holder shall become a
party to the Investors’
Rights Agreement and the Warrant Shares or, if the Shares are convertible into common stock of the
Company, such common stock, shall be deemed to be “Registrable Securities” and Holder shall be
deemed to be a “Holder,” as such terms are defined in the Investors’ Rights Agreement;
provided, however, that Holder shall not be entitled to participate in any request for
registration submitted to the Company as an Initiating Holder, as such term is defined in Section
1.2(a) of the Investors’ Rights Agreement. In addition, the rights contained in Section 2 of the
Investors’ Rights Agreement shall not apply to Holder. The provisions set forth in the Investors’
Right Agreement or similar agreement relating to the above in effect as of the Issue Date may not
be amended, modified or waived without the prior written consent of Holder unless such amendment,
modification or waiver affects all other shares of the same series and class as the Shares granted
to the Holder. Notwithstanding anything to the contrary in the Rights Agreement, all registration
rights of Holder shall be fully and completely transferable with this Warrant and the Warrant
Shares; provided that such transfer takes place in compliance with Section 7.3 herein. Company
shall grant no person or entity other than Holder any rights of first refusal with respect to the
purchase, sale or other disposition of this Warrant or the Warrant Shares.

     3. Adjustments.
The Exercise Price, the  Exercise Quantity and the number of shares of
Common Stock issuable upon conversion of the Preferred Stock will be adjusted from time to time as
provided herein and by law.

     3.1 Capitalization.

          (a) Subdivision or Combination. If Company subdivides or combines, by
reclassification, stock split or dividend, or otherwise, the number of Warrant Shares outstanding
into a greater or lesser number, simultaneously in each such case the Exercise Price and the
Exercise Quantity shall both be proportionately adjusted.

          (b) Capitalization. If Company recapitalizes, reorganizes or reclassifies its capital stock,
this Warrant shall thereafter be exercisable for or convertible into those shares of stock, other
securities or property which a Holder of the Exercise Quantity of Warrant Shares would have
received upon exercise or conversion of this Warrant, as adjusted according to the terms hereof.

          (c) Distributions. If Company declares, pays or distributes any cash or property dividends
on, or rights to acquire, capital stock, or evidences of its indebtedness or assets to holders of
shares of its capital stock, Holder shall, without additional cost, be entitled to receive upon
conversion or exercise, in

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addition to the Warrant Shares, the cash, property, evidences of indebtedness and rights which
Holder could have received had Holder been a record holder of Warrant Shares on the record dates
for any such event.

          (d) Merger, Consolidation, or Liquidation.

               (i) If (A) Company (x) consolidates with or merges into another entity and is not
the survivor, (y) receives notice that a purchase, tender or exchange offer has been made to the
holders of more than 50% of the Company’s outstanding Common Stock (on an as-converted basis), or
(z) sells or conveys substantially all of its property, and (B) in connection therewith, shares of
stock, other securities, or property, or cash (collectively, “Merger Consideration”) are issuable
or deliverable in exchange for Company’s capital stock, then (A) Company will give Holder 20 days
prior written notice of the consummation of such transaction and (B) Holder may thereafter acquire
immediately prior to the closing of such transaction in lieu of the Exercise Quantity of Warrant
Shares the Merger Consideration which Holder could have received had Holder then exercised this
Warrant in its entirety pursuant to Section 1.3 (b) hereof.

               (ii) Unless (x) Holder has earlier exercised or converted this Warrant, or (y) this
Warrant has terminated pursuant to Section 1.1(c), or (z) Holder has opted to exchange this
Warrant for Merger Consideration pursuant to Section 3.1(d)(i) above, Company will, prior to the
consummation of any such transaction described in Section 3.1(d)(i) above, cause any successor
entity upon consolidation, merger, conveyance of substantially all of Company’s assets, or voting
securities exchange to assume by written instrument, in form and substance satisfactory to Holder,
Company’s obligations hereunder.

     3.2 Notice of Adjustment. Whenever events require adjustment to the Exercise Price or
Exercise Quantity, Company will, at its expense, promptly prepare and mail to Holder a
certificate of its chief financial officer calculating the adjusted Exercise Price and Exercise
Quantity and fully setting forth in reasonable detail the relevant facts.

     4. Notice of Certain Events. In the event (a “Notice Event”): (a) Company authorizes the
distribution to all holders of any class of its capital stock evidences of its indebtedness or
assets where all other holders of the Company’s capital stock have the right to receive the notice
described below; (b) of any capital reorganization or reclassification of the Warrant Shares or
Company’s Common Stock, other than a subdivision or combination of the outstanding Common Stock and
other than a change in par value of the Common Stock where all other holders of the Company’s
capital stock have the right to receive the notice described below; (c) of any consolidation or
merger to which Company is a party and for which approval of any of Company’s stockholders is
required, other than a consolidation or merger in which Company is the continuing corporation and
that does not result in any reclassification or change of the Warrant Shares or Common Stock
outstanding; (d) of the conveyance or transfer of substantially all of Company’s properties and
assets; or (e) of Company’s voluntary or involuntary dissolution, liquidation or winding-up; then
Company will send by certified mail to Holder, at least 20 days (or 10 days in any case specified
in clause (a) above) prior to the applicable record or effective date hereinafter specified, a
notice stating the dates as of which (x) the holders of capital stock of record to be entitled to
receive any such rights, warrants or distributions are to be determined, (y) such Notice Event is
expected to become effective, and (z) it is expected that holders of Warrant Shares or Common Stock
of record will be entitled to exchange or sell their Warrant Shares or Common Stock for securities
or other property, if any, deliverable upon such Notice Event.

     5. Financial Reporting. Company will deliver to Holder: (a) audited financial statements for
each fiscal year within 180 days after such year ends; and (b) unaudited financial statements for
each fiscal quarter within 45 days after such quarter ends.

     6. Record Holder. This Warrant will be deemed to have been exercised or converted, as
appropriate, and Holder will be the record holder of the Warrant Shares issued thereupon,
immediately before the close of business on the Exercise Date or Conversion Date, as applicable.
Company may deem and treat the registered holder as the absolute owner hereof for all purposes,
notwithstanding any notice to the contrary. Other than as set forth herein, this Warrant does not
give Holder rights as a Company stockholder.

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     7. Securities Law Matters; Transfers.

     7.1 Securities Act Representations and Warranties of Holder. Holder is experienced in
evaluating start-up companies such as the Company, and has such knowledge and experience in
financial and business matters that such Holder is capable of evaluating the merits and risks of
such Holder’s investment in the Company, and has the ability to bear the economic risks of the
investment. Holder is acquiring the Warrant, and upon exercise or conversion hereof would acquire
the Warrant Shares, and upon conversion, if any, of the Warrant Shares would acquire the shares of
the Company’s Common Stock issuable upon such conversion (the Warrant, Warrant Shares, and such
shares of Common Stock issuable upon conversion of the Warrant Shares collectively the
“Securities”), for investment for such Holder’s own account and not with the view to, or for resale
in connection with, any distribution thereof. If not an individual, the Holder also represents
that the Holder has not been formed for the specific purpose of acquiring the Securities. The
Holder has received or has had full access to all the information it considers necessary or
appropriate to make an informed investment decision with respect to the acquisition of this Warrant
and its underlying securities. The Holder further has had an opportunity to ask questions and
receive answers from the Company regarding the terms and conditions of the offering of this Warrant
and its underlying securities and to obtain additional information (to the extent the Company
possessed such information or could acquire it without unreasonable effort or expense) necessary to
verify any information furnished to the Holder or to which the Holder has access. Holder
understands that the Securities have not been registered under the Securities Act by reason of a
specific exemption therefrom which depends upon, among other things, the bona fide nature of the
investment intent as expressed herein. Holder further represents that it does not have any
contract, undertaking, agreement or arrangement with any person to sell, transfer or grant
participation to any third person with respect to any of the Securities. Holder understands and
acknowledges that the issuance of Securities has not been and will not be registered under the
Securities Act, in reliance upon an exemption from the registration requirements of the Securities
Act. Such Holder acknowledges that the Securities must be held indefinitely unless subsequently
registered under the Securities Act or an exemption from such registration is available. Holder
is aware of the provisions of Rule 144 promulgated under the Securities Act which permit limited
resale of shares purchased in a private placement subject to the satisfaction of certain
conditions. Holder covenants that, in the absence of an effective registration statement covering
the Securities in question, such Holder will sell, transfer, or otherwise dispose of the
Securities only in a manner consistent with such Holder’s representations and covenants set forth
in this paragraph. Holder understands that no public market now exists for any of the Securities
issued by the Company, and that there can be no guarantee that a public market will ever exist for
any of the Securities. Holder is an “accredited Holder” as defined in Rule 501 of Regulation D
promulgated under the Securities Act. Holder’s address indicated on the signature page hereto
sets forth, in the case of individuals, the state in which such Holder resides or, in the case of
entities, the state of Holder’s principal place of business.

     7.2 Market Stand-Off Provision. Holder hereby agrees that it will not, without the prior
written consent of the managing underwriter, during the period commencing on the date of the final
prospectus relating to the Company’s initial public offering and ending on the date specified by
the Company and the underwriter (such period not to exceed one
hundred eighty (180) days) (i) lend,
offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option
or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or
dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into
or exercisable or exchangeable for Common Stock (whether such shares or any such securities are
then owned by the Holder or are thereafter acquired), or (ii) enter into any swap or other
arrangement that transfers to another, in whole or in part, any of the economic consequences of
ownership of the Common Stock, whether any such transaction described in clause (i) or (ii) above
is to be settled by delivery of Common Stock or such other securities, in cash or otherwise. The
foregoing provisions of this Section 7.2 shall apply only to the Company’s initial public offering
of equity securities, and shall not apply to the sale of any shares to an underwriter pursuant to
an underwriting agreement. The underwriters in connection with the Company’s initial public
offering are intended third party beneficiaries of this Section 7.2 and shall have the right, power
and authority to enforce the provisions hereof as though they were a party hereto. In order to
enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to
the Securities until the end of such period.

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     7.3 Transfer and Exchange. This Warrant and the Warrant Shares issuable upon exercise of this
Warrant (and the securities issuable, directly or indirectly, upon conversion of the Warrant
Shares, if any) may not be transferred or assigned in whole or in part without compliance with
applicable federal and state securities laws by the transferor and the transferee (including,
without limitation, the delivery of investment representation letters and legal opinions
reasonably satisfactory to the Company, as reasonably requested by the Company). The Company shall
not require Holder to provide an opinion of counsel if the transfer is to any affiliate of Holder
or if there is no material question as to the availability of current information as referenced in
Rule 144(c), Holder represents that it has complied with Rule 144(d) and (e) in reasonable detail,
the selling broker represents that it has complied with Rule 144(f), and the Company is provided
with a copy of Holder’s notice of proposed sale. Provided Holder complies with this Section 7.3,
Holder may transfer all or a portion hereof on Company’s books maintained for such purpose. Company
will issue and deliver Related Warrants to Holder with respect to the untransferred portion, and to
transferee, who thereupon will also become a Holder, with respect to the transferred portion.
Holder may exchange or subdivide this Warrant into Related Warrants for the same aggregate number
of Warrant Shares, with each new Related Warrant to represent the right to purchase that portion of
the Exercise Quantity of Warrant Shares designated by Holder. “Related Warrant” means a new Warrant
identical hereto (except for Exercise Quantity and as provided in Section 2(b)) issued to Holder or
its transferee in accordance with the terms hereof. Subject to the provisions of Section 7.3, and
upon providing Company with written notice, Holder may transfer all or part of this Warrant or the
Warrant Shares issuable upon exercise of this Warrant (or the securities issuable, directly or
indirectly, upon conversion of the Shares, if any) to any affiliate of Holder, or to any other
transferee by providing to She Company notice of the portion of the Warrant being transferred with
the name, address and taxpayer identification number of the transferee and surrendering this
Warrant to the Company for reissuance to the transferee(s) (and Holder if applicable). The Company
may refuse to transfer this Warrant to any person who directly competes with the Company unless the
Company’s stock is publicly traded.

     8. Miscellaneous.

     8.1 Warrant Value. The value of this Warrant on the date hereof is $100.

     8.2 Warrant Register. The Company will maintain a register containing the names and addresses
of the Holders of this Warrant.

     8.3 Replacement of Warrants. Upon receipt of evidence reasonably satisfactory to the Company
of the loss, theft, destruction or mutilation of this Warrant and (in the case of loss, theft or
destruction) upon delivery of an indemnity agreement (with surety if reasonably required) in an
amount reasonably satisfactory to the Company, or (in the case of mutilation) upon surrender and
cancellation of this Warrant, the Company will issue, in lieu thereof, a new Warrant of like tenor.

     8.4 Fractional Shares. If a fractional Warrant Share would be issuable upon exercise or
conversion, Company will instead pay in cash a sum equal to the product of such fraction and a full
Warrant Share’s Fair Market Value, provided that the product is at least $5.00.

     8.5 Entire Agreement. This Warrant constitutes the entire agreement between the parties with
respect to its subject matter and may only be modified in writing. Each provision hereof is
severable from every other provision when determining legal enforceability. The terms and
conditions hereof will inure to the benefit of and be binding upon the parties’ respective
successors and assigns, except as expressly provided otherwise herein. This Warrant has been
entered into in Menlo Park, California and is governed by California law.

     8.6 Notices. All notices will be in writing and delivered personally, by telefacsimile
confirmed by letter, or by reliable nationally-recognized overnight courier, postage paid at
Company’s expense, addressed, until further notice, (a) if to Holder, to Holder’s address and fax
of record, attention of Holder, (b) if to Company, to Company’s Office, Attention: Corporate
Secretary, or (c) if to a holder of a Related Warrant or Warrant Shares, to the most recent address
of which said holder has notified Company, and are effective upon receipt.

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     8.7
Waivers and Amendments. Holder’s remedies hereunder, by law or otherwise, are cumulative
and not exclusive. Holder’s delay or omission to exercise any right or remedy does not impair or
waive the same. A waiver of one breach or default does not waive any other breach or default. Any
waiver, permit, consent or approval is effective only to the extent specifically written. Any term
of this Warrant may be amended or waived only by an instrument in writing signed by the party
against which enforcement of the amendment or waiver is sought.

     8.8
Legends. This Warrant and the Warrant Shares (and the securities issuable, directly or
indirectly, upon conversion of the Shares, if any) shall be imprinted with a legend in
substantially the following form:

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
OR UNDER ANY APPLICABLE STATE LAWS, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE
TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THERE OF UNDER SUCH ACT AND AN
EXEMPTION UNDER APPLICABLE STATE LAW OR PURSUANT TO RULE 144 OR AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION AND ITS COUNSEL THAT SUCH
REGISTRATION IS NOT REQUIRED

     IN WITNESS WHEREOF, Company has caused this Warrant to be signed by its duly authorized
officer and issued as of the Issuance Date.

Effective Date of Warrant: June 30, 2003

	 	 	 	 	 
	COMPANY: Aruba,
Inc.

180 Great Oaks Blvd., Suite B, San Jose, CA 95119	 	 
	 
	 	 	 	 
	By: 

Print Name:

	 	/s/ Pankaj Manglik
 

Pankaj Manglik
	 	 
	Title:

	 	CEO	 	 
	 
	 	 	 	 
	ACCEPTED AND AGREED:

	 	 
	 
	 	 	 	 
	WARRANTHOLDER: Costella Kirsch Venture Partners I, L.P.;

Address: 873 Santa Cruz Ave., Suite 207; Menlo Park, CA 94025
	 
	 	 	 	 
	By: 

Print Name:

	 	/s/ Richard F. Ginn
 

Richard F. Ginn
	 	 
	Title:

	 	Member of the G.P.	 	 

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EXHIBIT A

WARRANT CONVERSION EXERCISE AND ASSIGNMENT FORM

CONVERSION OR EXERCISE FORM

The undersigned hereby irrevocably elects to exercise [check where applicable]

                          the Conversion Right set forth in the Warrant to the extent of that number of Warrant
Shares
(as defined in the Warrant) into which _______% of the Warrant may be converted,

                         
 the Warrant to the extent of purchasing                      Warrant Shares, and hereby tenders $                     in
payment of the exercise price thereof,

to occur
on                     .

ASSIGNMENT FORM

     FOR
VALUE RECEIVED, Holder hereby sells, assigns and transfers unto
                     [name] of                      [address] its right
to purchase                      Warrant Shares and does hereby irrevocably constitute and appoint
                    
attorney, to transfer the same on Company’s books, with full power of substitution in
the premises.

INSTRUCTIONS FOR REGISTRATION

	 	 	 	 	 	 	 	 	 	 	 
	OF STOCK OR
TRANSFER	 	 	 	OF RELATED
WARRANT	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name

	 	 	 	 	 	Name	 	 	 	 
	Address

	 	 

	 	 	 	Address
	 	 

	 	 
	Signature

	 	 

	 	 	 	Signature
	 	 

	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 

SIGNATURE OF HOLDER

	 	 	 	 	 	 	 
	 	 	Date:                                                            , 200_.	 	 
	 
	 	 	 	 	 	 
	 

	 	Signature	 	 	 	 
	 

	 	

Name
	 	 

	 	 
	 

	 	
Address
	 	 

	 	 
	 

	 	 	 	 

	 	 

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THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS (“BLUE SKY LAWS”) AND MAY NOT BE
OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS REGISTERED THEREUNDER OR EXEMPT FROM
REGISTRATION.

WARRANT TO PURCHASE SHARES OF PREFERRED STOCK OF

Aruba, Inc. a Delaware corporation

(the “Company”)

located at:

180 Great Oaks Blvd., Suite B 

San Jose, CA 95119

Issuance Date: July 31, 2003

     1. Right to Acquire Securities.

     1.1 Price, Quantity and Term.

          (a) Grant. Subject to the terms and conditions hereinafter set forth, this Warrant certifies
that for value received Costella Kirsch Venture Partners I,
L.P. and its registered assigns
(collectively, “Holder”), are entitled at any time, and from time to time, before Expiration (as
defined below), to purchase from Company up to that number of shares of Preferred Stock of the
Company equal to $75,000 (the “Exercise Quantity”) divided by the Exercise Price (defined below)
as constituted on the Warrant Issue Date (the “Preferred Stock”). The series of Preferred Stock
for which this Warrant is exercisable shall be (i) the next series of Preferred Stock of the
Company issued and sold by the Company in an equity financing following the Issuance Date (the
“Next Series Preferred Stock”) or (ii) Series A Preferred stock if the Company has not issued Next
Series Preferred Stock by the time of exercise of this Warrant. As used herein, “Warrant Shares”
refers to the shares of Preferred Stock purchasable upon exercise of
this Warrant, as adjusted
from time to time pursuant to the provisions of this Warrant, and the shares of any class of
securities resulting from any reclassifications of the Preferred Stock, including any conversion
thereof to Common Stock, or from any applicable event described in Section 3. References to
“Common Stock” include any present or future class of Company’s capital stock whose holders are
not limited to a fixed percentage or sum with respect to dividends or liquidation proceeds, unless
the context otherwise requires.

          (b)
Exercise Price. The purchase price per share for the Preferred Stock, as adjusted from
time to time pursuant to Section 3 hereof (the “Exercise Price”), shall be equal to either (i) the
price per share at which the Next Series Preferred Stock is issued if the Warrant is exercisable
for the Next Series Preferred Stock pursuant to Section 1.1(a)
hereof or (ii) $0.667 (as adjusted
from time to time pursuant to Section 3 hereof) if the Warrant is exercisable for Series A
Preferred Stock pursuant to Section 1.1(a) hereof. The Warrant shall be exercisable for Series A
Preferred Stock, at a purchase price of $0.667 (as adjusted from time to time pursuant to Section
3 hereof) upon exercise of this Warrant prior to the issuance of the Next Series Preferred Stock.

          (c)
Expiration. This Warrant shall expire (“Expiration”) at 5:00 p.m., Los Angeles time, on
the seventh anniversary of the Issuance Date; provided, however, that in the event of the closing
of the acquisition of the Company (“Acquisition”) by another company that is publicly traded on a
securities exchange or through the Nasdaq National Market by means of merger, consolidation or
other transaction or series of related transactions, resulting in the transfer of 50% or more of
the outstanding voting power of the Company and pursuant to which the per share gross proceeds to
be distributed to the Company’s stockholders equals or exceeds three (3) times the Exercise Price
(such amount calculated based on the number of shares of Common Stock, assuming the exercise and
conversion of all then-outstanding exercisable and convertible securities outstanding immediately
prior to the closing of the Acquisition), this Warrant shall, on the date of such event, be deemed
to be exercised in full in the manner set forth in

1

 

Section 1.3(b). In the event of a proposed Acquisition, the Company shall notify the holder of the
Warrant at least twenty (20) days prior to the consummation of such Acquisition. Any exercise of
this Warrant made in conjunction with a proposed Acquisition may be made conditional on the actual
closing of such Acquisition. Notwithstanding the foregoing, this Warrant shall automatically be
converted into Warrant Shares prior to Expiration pursuant to Section 1.3(b) hereof, without any
action by Holder, immediately before Expiration.

     1.2 Right to Exercise.

          (a) Notice. Holder may exercise all or a portion of this Warrant at any time, and from time to
time, before Expiration, by delivering a written notice of exercise (a form of which is attached
hereto as Exhibit A) to Company, specifying (i) the number of Warrant Shares to be purchased, (ii)
the proposed registered holders of Warrant Shares and any Related Warrants (as defined in Section
7), and (iii) a date of exercise determined by Holder (the “Exercise Date”) not more than twenty
business days after such notice.

          (b) Exercise. On the Exercise Date, (i) Holder will present to Company this Warrant and a
check for the aggregate Exercise Price of the Warrant Shares purchased and (ii) as soon as
practicable after the Exercise Date, Company will give Holder (A) certificate(s) for the Warrant
Shares issuable upon such exercise; (B) any cash and non-cash consideration, including securities,
to which Holder is entitled with respect to the Warrant Shares (collectively, “Other
Consideration”) and, if applicable, (C) a Related Warrant (as defined in Section 7) representing
the unexercised portion hereof.

     1.3 Right to Convert.

          (a) Notice. Holder may require Company to convert all or a portion of this Warrant into
Warrant Shares without payment by Holder of any money or other consideration (the “Conversion
Right”) at any time, and from time to time, before Expiration, by delivering a written notice of
exercise to Company (a form of which is attached hereto as Exhibit A), specifying (i) the
proportion of this Warrant to be converted into Warrant Shares (the “Converted Portion”), (ii) the
proposed registered holders of Warrant Shares and any Related Warrants and (iii) a date of
conversion determined by Holder (the “Conversion Date”) not more than twenty business days
thereafter.

          (b) Conversion. On the Conversion Date, Holder will surrender this Warrant and Company will
give Holder (i) certificate(s) for that number of Warrant Shares as determined using the following
formula:

	 	 	 	 	 	 	 
	 

	 	X =
	 	Y(A - B)
	 	 
	 

	 	 	 	A	 	 

	 	 	 
	Where

	 	X = The number of shares of Warrant
Shares to be issued to the Holder.
	 
	 	 
	 

	 	Y = The number of Converted Portion Warrant Shares this Warrant
is exercisable for (at the date of such calculation)
	 
	 	 
	 

	 	A = The Fair Market Value (as defined below) of one Warrant
Share (at the date of such calculation).
	 
	 	 
	 

	 	B = The Exercise Price (as adjusted to the date of such calculation);

(ii) any Other Consideration and, if applicable, (iii) a Related Warrant representing the
unconverted portion hereof.

     1.4 Fair Market Value. Fair Market Value of a share of Preferred Stock is the Fair Market
Value of a share of Common Stock multiplied by the number of shares of Common Stock into which
Preferred Stock may then be converted. “Fair Market Value” of a share of Common Stock as of a
particular date means: (a) if traded on an exchange or quoted on the NASDAQ National Market System,
then the prior

2

 

trading day’s closing price, (b) if conversion or exercise is on a date from the filing of,
through to the effective date of, the registration statement for an underwritten public offering
registered under the Securities Act, the initial public offering price (before deducting
commissions, discounts or expenses) per share sold in such offering, (c) if listed by the National
Daily Quotation Service “Pink Sheets,” then the average of the most-recently reported bid and ask
prices and (d) otherwise, the price, not less than book value, determined in good faith and in
such reasonable manner as prescribed by a majority of Company’s Directors who are not Company
officers or employees (the “Outside Directors”); provided, however, that Company will notify
Holder of such price within ten business days following receipt of Holder’s notice of exercise.

     1.5 Authorization. Company will at all times reserve and keep available out of its authorized
but unissued capital stock, and will take all such action and obtain all such permission necessary
to enable Company lawfully to issue, the full number of Warrant Shares deliverable upon exercise or
conversion hereof or deliverable upon any permitted conversion into Common Stock of the Warrant
Shares, as such number may be adjusted from time to time. Company will not create a Warrant Share
with a par value higher than the applicable Exercise Price.

     2. Registration Rights. The Company agrees that upon the earlier of (x) when the Company
next amends its Investors’ Rights Agreement, dated April 19, 2002, by and among the Company and
certain of its stockholders (the “Investors’ Rights Agreement”), or (y) when the Company
consummates its initial public offering, the Holder shall become a
party to the Investors’
Rights Agreement and the Warrant Shares or, if the Shares are convertible into common stock of the
Company, such common stock, shall be deemed to be “Registrable Securities” and Holder shall be
deemed to be a “Holder,” as such terms are defined in the Investors’ Rights Agreement;
provided, however, that Holder shall not be entitled to participate in any request for
registration submitted to the Company as an Initiating Holder, as such term is defined in Section
1.2(a) of the Investors’ Rights Agreement. In addition, the rights contained in Section 2 of the
Investors’ Rights Agreement shall not apply to Holder. The provisions set forth in the Investors’
Right Agreement or similar agreement relating to the above in effect as of the Issue Date may not
be amended, modified or waived without the prior written consent of Holder unless such amendment,
modification or waiver affects all other shares of the same series and class as the Shares granted
to the Holder. Notwithstanding anything to the contrary in the Rights Agreement, all registration
rights of Holder shall be fully and completely transferable with this Warrant and the Warrant
Shares; provided that such transfer takes place in compliance with
Section 7.3 herein. Company
shall grant no person or entity other than Holder any rights of first refusal with respect to the
purchase, sale or other disposition of this Warrant or the Warrant
Shares.

     3. Adjustments. The Exercise Price, the Exercise Quantity and the number of shares of Common
Stock issuable upon conversion of the Preferred Stock will be adjusted from time to time as
provided herein and by law.

     3.1 Capitalization.

          (a) Subdivision or Combination. If Company subdivides or combines, by
reclassification, stock split or dividend, or otherwise, the number of Warrant Shares outstanding
into a greater or lesser number, simultaneously in each such case the Exercise Price and the
Exercise Quantity shall both be proportionately adjusted.

          (b) Capitalization. If Company recapitalizes, reorganizes or reclassifies its capital stock,
this Warrant shall thereafter be exercisable for or convertible into those shares of stock, other
securities or property which a Holder of the Exercise Quantity of Warrant Shares would have
received upon exercise or conversion of this Warrant, as adjusted
according to the terms hereof.

          (c) Distributions. If Company declares, pays or distributes any cash or property dividends
on, or rights to acquire, capital stock, or evidences of its indebtedness or assets to holders of
shares of its capital stock, Holder shall, without additional cost, be entitled to receive upon
conversion or exercise, in addition to the Warrant Shares, the cash, property, evidences of
indebtedness and rights which Holder could have received had Holder been a record holder of Warrant
Shares on the record dates for any such event.

3

 

          (d)
Merger, Consolidation, or Liquidation.

               (i) If (A) Company (x) consolidates with or merges into another entity and is not
the survivor, (y) receives notice that a purchase, tender or exchange offer has been made to the
holders of more than 50% of the Company’s outstanding Common Stock (on an as-converted basis), or
(z) sells or conveys substantially all of its property, and (B) in connection therewith, shares of
stock, other securities, or property, or cash (collectively, “Merger Consideration”) are issuable
or deliverable in exchange for Company’s capital stock, then (A) Company will give Holder 20 days
prior written notice of the consummation of such transaction and (B) Holder may thereafter acquire
immediately prior to the closing of such transaction in lieu of the Exercise Quantity of Warrant
Shares the Merger Consideration which Holder could have received had Holder then exercised this
Warrant in its entirety pursuant to Section 1.3(b) hereof.

               (ii) Unless (x) Holder has earlier exercised or converted this Warrant, or (y) this
Warrant has terminated pursuant to Section 1.1 (c), or (z) Holder has opted to exchange this
Warrant for Merger Consideration pursuant to Section 3.1(d)(i) above, Company will, prior to the
consummation of any such transaction described in Section 3.1(d)(i) above, cause any successor
entity upon consolidation, merger, conveyance of substantially all of Company’s assets, or voting
securities exchange to assume by written instrument, in form and substance satisfactory to Holder,
Company’s obligations hereunder.

     3.2 Notice of Adjustment. Whenever events require adjustment to the Exercise Price or
Exercise Quantity, Company will, at its expense, promptly prepare and mail to Holder a certificate
of its chief financial officer calculating the adjusted Exercise Price and Exercise Quantity and
fully setting forth in reasonable detail the relevant facts.

     4. Notice of Certain Events. In the event (a “Notice Event”): (a) Company authorizes the
distribution to all holders of any class of its capital stock evidences of its indebtedness or
assets where all other holders of the Company’s capital stock have the right to receive the notice
described below; (b) of any capital reorganization or classification of the Warrant Shares or
Company’s Common Stock, other than a subdivision or combination of the outstanding Common Stock and
other than a change in par value of the Common Stock where all other holders of the Company’s
capital stock have the right to receive the notice described below; (c) of any consolidation or
merger to which Company is a party and for which approval of any of Company’s stockholders is
required, other than a consolidation or merger in which Company is the continuing corporation and
that does not result in any reclassification or change of the Warrant Shares or Common Stock
outstanding; (d) of the conveyance or transfer of substantially all of Company’s properties and
assets; or (e) of Company’s voluntary or involuntary dissolution, liquidation or winding-up; then
Company will send by certified mail to Holder, at least 20 days (or 10 days in any case specified
in clause (a) above) prior to the applicable record or effective date hereinafter specified, a
notice stating the dates as of which (x) the holders of capital stock of record to be entitled to
receive any such rights, warrants or distributions are to be determined, (y) such Notice Event is
expected to become effective, and (z) it is expected that holders of Warrant Shares or Common Stock
of record will be entitled to exchange or sell their Warrant Shares or Common Stock for securities
or other property, if any, deliverable upon such Notice Event.

     5. Financial
Reporting. Company will deliver to Holder: (a) audited financial statements for
each fiscal year within 180 days after such year ends; and (b) unaudited financial statements for
each fiscal quarter within 45 days after such quarter ends.

     6. Record
Holder. This Warrant will be deemed to have been exercised or converted, as
appropriate, and Holder will be the record holder of the Warrant Shares issued thereupon,
immediately before the close of business on the Exercise Date or Conversion Date, as applicable.
Company may deem and treat the registered holder as the absolute owner hereof for all purposes,
notwithstanding any notice to the contrary. Other than as set forth herein, this Warrant does not
give Holder rights as a Company stockholder.

     7. Securities Law Matters; Transfers.

4

 

     7.1 Securities Act Representations and Warranties of Holder. Holder is experienced in
evaluating start-up companies such as the Company, and has such knowledge and experience in
financial and business matters that such Holder is capable of evaluating the merits and risks of
such Holder’s investment in the Company, and has the ability to bear the economic risks of the
investment. Holder is acquiring the Warrant, and upon exercise or conversion hereof would acquire
the Warrant Shares, and upon conversion, if any, of the Warrant Shares would acquire the shares of
the Company’s Common Stock issuable upon such conversion (the Warrant, Warrant Shares, and such
shares of Common Stock issuable upon conversion of the Warrant Shares collectively the
“Securities”), for investment for such Holder’s own account and not with the view to, or for resale
in connection with, any distribution thereof. If not an individual, the Holder also represents
that the Holder has not been formed for the specific purpose of acquiring the Securities. The
Holder has received or has had full access to all the information it considers necessary or
appropriate to make an informed investment decision with respect to the acquisition of this Warrant
and its underlying securities. The Holder further has had an opportunity to ask questions and
receive answers from the Company regarding the terms and conditions of the offering of this Warrant
and its underlying securities and to obtain additional information (to the extent the Company
possessed such information or could acquire it without unreasonable effort or expense) necessary to
verify any information furnished to the Holder or to which the Holder has access. Holder
understands that the Securities have not been registered under the Securities Act by reason of a
specific exemption therefrom which depends upon, among other things, the bona fide nature of the
investment intent as expressed herein. Holder further represents that it does not have any
contract, undertaking, agreement or arrangement with any person to sell, transfer or grant
participation to any third person with respect to any of the Securities. Holder understands and
acknowledges that the issuance of Securities has not been and will not be registered under the
Securities Act, in reliance upon an exemption from the registration requirements of the Securities
Act. Such Holder acknowledges that the Securities must be held indefinitely unless subsequently
registered under the Securities Act or an exemption from such registration is available. Holder
is aware of the provisions of Rule 144 promulgated under the Securities Act which permit limited
resale of shares purchased in a private placement subject to the satisfaction of certain
conditions. Holder covenants that, in the absence of an effective registration statement
covering the Securities in question, such Holder will sell, transfer, or otherwise dispose of the
Securities only in a manner consistent with such Holder’s representations and covenants set forth
in this paragraph. Holder understands that no public market now exists for any of the Securities
issued by the Company, and that there can be no guarantee that a public market will ever exist for
any of the Securities. Holder is an “accredited Holder” as defined in Rule 501 of Regulation D
promulgated under the Securities Act. Holder’s address indicated on the signature page hereto
sets forth, in the case of individuals, the state in which such Holder resides or, in the case of
entities, the state of Holder’s principal place of business.

     7.2 Market Stand-Off Provision. Holder hereby agrees that it will not, without the prior
written consent of the managing underwriter, during the period commencing on the date of the final
prospectus relating to the Company’s initial public offering and ending on the date specified by
the Company and the underwriter (such period not to exceed one
hundred eighty (180) days) (i) lend,
offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option
or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or
dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into
or exercisable or exchangeable for Common Stock (whether such shares or any such securities are
then owned by the Holder or are thereafter acquired), or (ii) enter into any swap or other
arrangement that transfers to another, in whole or in part, any of the economic consequences of
ownership of the Common Stock, whether any such transaction described in clause (i) or (ii) above
is to be settled by delivery of Common Stock or such other securities, in cash or otherwise. The
foregoing provisions of this Section 7.2 shall apply only to the Company’s initial public offering
of equity securities, and shall not apply to the sale of any shares to an underwriter pursuant to
an underwriting agreement. The underwriters in connection with the Company’s initial public
offering are intended third party beneficiaries of this Section 7.2 and shall have the right, power
and authority to enforce the provisions hereof as though they were a party hereto. In order to
enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to
the Securities until the end of such period.

     7.3 Transfer and Exchange. This Warrant and the Warrant Shares issuable upon exercise of this
Warrant (and the securities issuable, directly or indirectly, upon conversion of the Warrant
Shares, if

5

 

any) may not be transferred or assigned in whole or in part without compliance with applicable
federal and state securities laws by the transferor and the transferee (including, without
limitation, the delivery of investment representation letters and legal opinions reasonably
satisfactory to the Company, as reasonably requested by the Company). The Company shall not require
Holder to provide an opinion of counsel if the transfer is to any affiliate of Holder or if there
is no material question as to the availability of current information as referenced in Rule 144(c),
Holder represents that it has complied with Rule 144(d) and (e) in reasonable detail, the selling
broker represents that it has complied with Rule 144(f), and the Company is provided with a copy of
Holder’s notice of proposed sale. Provided Holder complies with this Section 7.3, Holder may
transfer all or a portion hereof on Company’s books maintained for such purpose. Company will issue
and deliver Related Warrants to Holder with respect to the untransferred portion, and to
transferee, who thereupon will also become a Holder, with respect to the transferred portion.
Holder may exchange or subdivide this Warrant into Related Warrants for the same aggregate number
of Warrant Shares, with each new Related Warrant to represent the right to purchase that portion of
the Exercise Quantity of Warrant Shares designated by Holder. “Related Warrant” means a new Warrant
identical hereto (except for Exercise Quantity and as provided in Section 2(b)) issued to Holder
or its transferee in accordance with the terms hereof. Subject to the provisions of Section 7.3, and
upon providing Company with written notice, Holder may transfer all or part of this Warrant or the
Warrant Shares issuable upon exercise of this Warrant (or the securities issuable, directly or
indirectly, upon conversion of the Shares, if any) to any affiliate of Holder, or to any other
transferee by providing to the Company notice of the portion of the Warrant being transferred with
the name, address and taxpayer identification number of the transferee and surrendering this
Warrant to the Company for reissuance to the transferee(s) (and Holder if applicable). The Company
may refuse to transfer this Warrant to any person who directly competes with the Company unless the
Company’s stock is publicly traded.

     8. Miscellaneous.

     8.1 Warrant Value. The value of this Warrant on the date hereof is $ 100.

     8.2 Warrant Register. The Company will maintain a register containing the names and addresses
of the Holders of this Warrant.

     8.3 Replacement of Warrants. Upon receipt of evidence reasonably satisfactory to the Company
of the loss, theft, destruction or mutilation of this Warrant and (in the case of loss, theft or
destruction) upon delivery of an indemnity agreement (with surety if reasonably required) in an
amount reasonably satisfactory to the Company, or (in the case of mutilation) upon surrender and
cancellation of this Warrant, the Company will issue, in lieu
thereof, a new Warrant of like tenor.

     8.4 Fractional Shares. If a fractional Warrant Share would be issuable upon exercise or
conversion, Company will instead pay in cash a sum equal to the product of such fraction and a full
Warrant Share’s Fair Market Value, provided that the product is at least $ 5.00.

     8.5 Entire Agreement. This Warrant constitutes the entire agreement between the parties with
respect to its subject matter and may only be modified in writing. Each provision hereof is
severable from every other provision when determining legal enforceability. The terms and
conditions hereof will inure to the benefit of and be binding upon the parties’ respective
successors and assigns, except as expressly provided otherwise herein. This Warrant has been
entered into in Menlo Park, California and is governed by California law.

     8.6 Notices. All notices will be in writing and delivered personally, by telefacsimile
confirmed by letter, or by reliable nationally-recognized overnight courier, postage paid at
Company’s expense, addressed, until further notice, (a) if to Holder, to Holder’s address and fax
of record, attention of Holder, (b) if to Company, to Company’s Office, Attention: Corporate
Secretary, or (c) if to a holder of a Related Warrant or Warrant Shares, to the most recent address
of which said holder has notified Company, and are effective upon receipt.

6

 

     8.7 Waivers and Amendments. Holder’s remedies hereunder, by law or otherwise, are
cumulative and not exclusive. Holder’s delay or omission to exercise any right or remedy does not
impair or waive the same. A waiver of one breach or default does not waive any other breach or
default. Any waiver, permit, consent or approval is effective only to the extent specifically
written. Any term of this Warrant may be amended or waived only by an instrument in writing signed
by the party against which enforcement of the amendment or waiver is sought.

     8.8 Legends. This Warrant and the Warrant Shares (and the securities issuable, directly or
indirectly, upon conversion of the Shares, if any) shall be imprinted with a legend in
substantially the following form:

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
OR UNDER ANY APPLICABLE STATE LAWS, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE
TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THERE OF UNDER SUCH ACT AND AN
EXEMPTION UNDER APPLICABLE STATE LAW OR PURSUANT TO RULE 144 OR AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION AND ITS COUNSEL THAT SUCH
REGISTRATION IS NOT REQUIRED

     IN WITNESS WHEREOF, Company has caused this Warrant to be signed by its duly authorized
officer and issued as of the Issuance Date.

Effective
Date of Warrant: June 30, 2003

	 	 	 	 	 
	COMPANY: Aruba, Inc.

180 Great Oaks Blvd., Suite B, San Jose, CA 95119	 	 
	 
	 	 	 	 
	By: 

Print Name:

	 	/s/ Pankaj Manglik
 

Pankaj Manglik
	 	 
	Title:

	 	CEO	 	 
	 
	 	 	 	 
	ACCEPTED AND AGREED:	 	 
	 
	 	 	 	 
	WARRANTHOLDER: Costella Kirsch Venture Partners I, L.P.;

Address: 873 Santa Cruz Ave., Suite 207; Menlo Park, CA 94025	 	 
	 
	 	 	 	 
	By: 

Print Name:

	 	/s/ Richard F. Ginn
 

Richard F. Ginn
	 	 
	Title:

	 	Member of the G.P.	 	 

7

 

EXHIBIT
A

WARRANT
CONVERSION, EXERCISE AND ASSIGNMENT FORM

CONVERSION OR EXERCISE FORM 

     The undersigned hereby irrevocably elects to exercise [check where applicable]

     ___
the Conversion Right set forth in the Warrant to the extent of that number of Warrant Shares
(as defined in the Warrant) into which ___% of the Warrant may be converted,

     ___
the
Warrant to the extent of purchasing ___ Warrant Shares, and
hereby tenders $___ in
payment of the exercise price thereof,

to occur
on
                    .

ASSIGNMENT FORM

     FOR VALUE RECEIVED, Holder hereby sells, assigns and transfers
unto
                                        
[name] of                                       
   [address] its right
to purchase ___ Warrant Shares and does hereby irrevocably constitute and
appoint
                    
attorney, to transfer the same on Company’s books, with full power of
substitution in
the premises.

INSTRUCTIONS FOR REGISTRATION

	 	 	 	 	 	 	 	 	 	 	 
	OF STOCK OR
TRANSFER	 	 	 	OF RELATED WARRANT	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name

	 	 	 	 	 	Name	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	Address

	 	 	 	 	 	Address	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	Signature

	 	 	 	 	 	Signature	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 

SIGNATURE OF HOLDER

	 	 	 	 	 	 	 
	 

	 	Date:
	 	                                        , 200_.	 	 
	 
	 	 	 	 	 	 
	 

	 	Signature	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Address	 	 	 	 
	 

	 	 	 	 

	 	 

8

 

THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE STATE SECURITIES
LAWS (“BLUE SKY LAWS”) AND MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED UNLESS REGISTERED THEREUNDER OR EXEMPT FROM
REGISTRATION.

WARRANT TO PURCHASE SHARES OF PREFERRED STOCK OF

Aruba, Inc. a Delaware corporation

(the “Company”)

located at:

180 Great Oaks Blvd., Suite B

San Jose, CA 95119

Issuance Date: July 31, 2003

     1. Right to Acquire Securities.

     1.1 Price, Quantity and Term.

          (a) Grant. Subject to the terms and conditions hereinafter set forth, this Warrant
certifies that for value received Costella Kirsch Venture Partners I, L.P. and its registered
assigns (collectively, “Holder”), are entitled at any time, and from time to time, before
Expiration (as defined below), to purchase from Company up to that number of shares of Preferred
Stock of the Company equal to $25,000 (the “Exercise Quantity”) divided by the Exercise Price
(defined below) as constituted on the Warrant Issue Date (the “Preferred Stock”). The series of
Preferred Stock for which this Warrant is exercisable shall be (i) Series A Preferred Stock of the
Company (“Series A Preferred Stock”) in the event that the Exercise Price is based on the Series A
Preferred Stock price or (ii) the next series of Preferred Stock of the Company issued and sold by
the Company in an equity financing following the Issuance Date (the “Next Series Preferred Stock”)
in the event that the Exercise Price is based on the Next Series Preferred Stock price. As used
herein, “Warrant Shares” refers to the shares of Preferred Stock purchasable upon exercise of this
Warrant, as adjusted from time to time pursuant to the provisions of this Warrant, and the shares
of any class of securities resulting from any reclassifications of the Preferred Stock, including
any conversion thereof to Common Stock, or from any applicable event described in Section 3.
References to “Common Stock” include any present or future class of Company’s capital stock whose
holders are not limited to a fixed percentage or sum with respect to dividends or liquidation
proceeds, unless the context otherwise requires.

          (b) Exercise price. The purchase price per share for the Preferred Stock, as adjusted from
time to time pursuant to Section 3 hereof (the “Exercise
Price”), shall be either (i) $0.667 (as
adjusted from time to time pursuant to Section 3 hereof) (which is equal to the per share price at
which the Company has issued Series A Preferred Stock) or (ii) the per share price at which the
Company issues Next Series Preferred Stock, whichever of (i) or (ii) would result in the issuance
of a greater number of shares of Common Stock upon exercise of this Warrant (as determined on an
as-converted basis at the time of exercise of this Warrant). This Warrant shall be exercisable
for Series A Preferred Stock, at a purchase price per share equal to $0.667 (as adjusted from time
to time pursuant to Section 3 hereof), upon any exercise of this Warrant prior to the issuance by
the Company of Next Series Preferred Stock.

          (c) Expiration. This Warrant shall expire (“Expiration”) at 5:00 p.m., Los Angeles time, on
the seventh anniversary of the Issuance Date; provided, however, that in the event of the closing
of the acquisition of the Company (“Acquisition”) by another company that is publicly traded on a
securities exchange or through the Nasdaq National Market by means of merger, consolidation or
other transaction or series of related transactions, resulting in the transfer of 50% or more of
the outstanding voting power of the Company and pursuant to which the per share gross proceeds to
be distributed to the Company’s stockholders equals or exceeds three (3) times the Exercise Price
(such amount calculated based on the number of shares of Common Stock, assuming the exercise and
conversion of all then-outstanding

1

 

exercisable and convertible securities outstanding immediately
prior to the closing of the Acquisition), this Warrant shall, on the date of such event, be deemed
to be exercised in full in the manner set forth in
Section 1.3(b). In the event of a proposed Acquisition, the Company shall notify the holder of the
Warrant at least twenty (20) days prior to the consummation of such Acquisition. Any exercise of
this Warrant made in conjunction with a proposed Acquisition may be made conditional on the actual
closing of such Acquisition. Notwithstanding the foregoing, this Warrant shall automatically be
converted into Warrant Shares prior to Expiration pursuant to Section 1.3(b) hereof, without any
action by Holder, immediately before Expiration.

     1.2 Right to Exercise.

          (a) Notice. Holder may exercise all or a portion of this Warrant at any time, and from
time to time, before Expiration, by delivering a written notice of exercise (a form of which is
attached hereto as Exhibit A) to Company, specifying (i) the number of Warrant Shares to be
purchased, (ii) the proposed registered holders of Warrant Shares and any Related Warrants (as
defined in Section 7), and (iii) a date of exercise determined by Holder (the “Exercise Date”) not
more than twenty business days after such notice.

          (b) Exercise. On the Exercise Date, (i) Holder will present to Company this Warrant and a
check for the aggregate Exercise Price of the Warrant Shares purchased and (ii) as soon as
practicable after the Exercise Date, Company will give Holder
(A) certificate(s) for the Warrant
Shares issuable upon such exercise; (B) any cash and non-cash consideration, including securities,
to which Holder is entitled with respect to the Warrant Shares (collectively, “Other
Consideration”) and, if applicable, (C) a Related Warrant (as defined in Section 7) representing
the unexercised portion hereof.

     1.3 Right to Convert.

          (a) Notice. Holder may require Company to convert all or a portion of this Warrant
into Warrant Shares without payment by Holder of any money or other consideration (the “Conversion
Right”) at any time, and from time to time, before Expiration, by delivering a written notice of
exercise to Company (a form of which is attached hereto as Exhibit A), specifying (i) the
proportion of this Warrant to be converted into Warrant Shares (the “Converted Portion”), (ii) the
proposed registered holders of Warrant Shares and any Related Warrants and (iii) a date of
conversion determined by Holder (the “Conversion Date”) not more than twenty business days
thereafter.

          (b) Conversion. On the Conversion Date, Holder will surrender this Warrant and Company
will give Holder (i) certificate(s) for that number of Warrant Shares as determined using the
following formula:

	 	 	 	 	 
	 

	 	 	 	X = Y (A - B) 

	 

	 	 	 	A
 
	Where

	 	X =
	 	The number of shares of Warrant
Shares to be issued to the Holder.
	 	 
	 

	 	Y =
	 	The number of Converted Portion Warrant Shares this Warrant is exercisable for (at the date of
such calculation)
	 	 
	 

	 	A =
	 	The Fair Market Value (as defined below) of one Warrant Share (at the date of such
calculation).
	 	 
	 

	 	B =
	 	The Exercise Price (as adjusted to the date of such calculation);

(ii) any Other Consideration and, if applicable, (iii) a Related Warrant representing the
unconverted portion hereof.

     1.4
Fair Market Value. Fair Market Value of a share of Preferred Stock is the Fair Market Value of
a share of Common Stock multiplied by the number of shares of Common Stock into which

2

 

Preferred
Stock may then be converted. “Fair Market Value” of a share of Common Stock as of a particular date
means: (a) if traded on an exchange or quoted on the NASDAQ National Market System, then the prior
trading day’s closing price, (b) if conversion or exercise is on a date from the filing of, through
to the effective date of, the registration statement for an underwritten public offering registered
under the Securities Act, the initial public offering price (before deducting commissions,
discounts or expenses) per share sold in such offering, (c) if listed by the National Daily
Quotation Service “Pink Sheets,” then the average of the most-recently reported bid and ask prices
and (d) otherwise, the price, not less than book value, determined in good faith and in such
reasonable manner as prescribed by a majority of Company’s Directors who are not Company officers
or employees (the “Outside Directors”); provided, however, that Company will notify Holder of such
price within ten business days following receipt of Holder’s notice of exercise.

     1.5 Authorization. Company will at all times reserve and keep available out of its authorized but
unissued capital stock, and will take all such action and obtain all such permission necessary to
enable Company lawfully to issue, the full number of Warrant Shares deliverable upon exercise or
conversion hereof or deliverable upon any permitted conversion into Common Stock of the Warrant
Shares, as such number may be adjusted from time to time. Company will not create a Warrant Share
with a par value higher than the applicable Exercise Price.

     2. Registration Rights. The Company agrees that upon the earlier of (x) when the
Company next amends its Investors’ Rights Agreement, dated April 19, 2002, by and among the Company
and certain of its stockholders (the “Investors’ Rights Agreement”), or (y) when the
Company consummates its initial public offering, the Holder shall become a party to the
Investors’ Rights Agreement and the Warrant Shares or, if the Shares are convertible into common
stock of the Company, such common stock, shall be deemed to be “Registrable Securities” and Holder
shall be deemed to be a “Holder,” as such terms are defined in the Investors’ Rights Agreement;
provided, however, that Holder shall not be entitled to participate in any request for
registration submitted to the Company as an Initiating Holder, as such term is defined in Section
1.2(a) of the Investors’ Rights Agreement. In addition, the rights contained in Section 2 of the
Investors’ Rights Agreement shall not apply to Holder. The provisions set forth in the Investors’
Right Agreement or similar agreement relating to the above in effect as of the Issue Date may not
be amended, modified or waived without the prior written consent of Holder unless such amendment,
modification or waiver affects all other shares of the same series and class as the Shares granted
to the Holder. Notwithstanding anything to the contrary in the Rights Agreement, all registration
rights of Holder shall be fully and completely transferable with this Warrant and the Warrant
Shares; provided that such transfer takes place in compliance with
Section 7.3 herein. Company
shall grant no person or entity other than Holder any rights of first refusal with respect to the
purchase, sale or other disposition of this Warrant or the Warrant
Shares.

     3. Adjustments. The Exercise Price, the Exercise Quantity and the number of shares of
Common Stock issuable upon conversion of the Preferred Stock will be adjusted from time to time as
provided herein and by law.

     3.1 Capitalization.

          (a) Subdivision or Combination. If Company subdivides or combines, by
reclassification, stock split or dividend, or otherwise, the number of Warrant Shares outstanding
into a greater or lesser number, simultaneously in each such case the Exercise Price and the
Exercise Quantity shall both be proportionately adjusted.

          (b) Capitalization. If Company recapitalizes, reorganizes or reclassifies its capital
stock, this Warrant shall thereafter be exercisable for or convertible into those shares of stock,
other securities or property which a Holder of the Exercise Quantity of Warrant Shares would have
received upon exercise or conversion of this Warrant, as adjusted
according to the terms hereof.

          (c) Distributions. If Company declares, pays or distributes any cash or property
dividends on, or rights to acquire, capital stock, or evidences of its indebtedness or assets to
holders of shares of its capital stock, Holder shall, without additional cost, be entitled to
receive upon conversion or exercise, in

3

 

addition to the Warrant Shares, the cash, property,
evidences of indebtedness and rights which Holder could have received had Holder been a record
holder of Warrant Shares on the record dates for any such event.

          (d) Merger, Consolidation, or Liquidation.

               (i) If (A) Company (x) consolidates with or merges into another entity and is not
the survivor, (y) receives notice that a purchase, tender or exchange offer has been made to the
holders of more than 50% of the Company’s outstanding Common Stock (on an as-converted basis), or
(z) sells or conveys substantially all of its property, and (B) in connection therewith, shares of
stock, other securities, or property, or cash (collectively, “Merger Consideration”) are issuable
or deliverable in exchange for Company’s capital stock, then (A) Company will give Holder 20 days
prior written notice of the consummation of such transaction and (B) Holder may thereafter acquire
immediately prior to the closing of such transaction in lieu of the Exercise Quantity of Warrant
Shares the Merger Consideration which Holder could have received had Holder then exercised this
Warrant in its entirety pursuant to Section 1.3(b) hereof.

               (ii) Unless (x) Holder has earlier exercised or converted this Warrant, or (y) this
Warrant has terminated pursuant to Section 1.1(c), or (z) Holder has opted to exchange this
Warrant for Merger Consideration pursuant to Section 3.1(d)(i) above, Company will, prior to the
consummation of any such transaction described in Section 3.1(d)(i) above, cause any successor
entity upon consolidation, merger, conveyance of substantially all of Company’s assets, or voting
securities exchange to assume by written instrument, in form and substance satisfactory to Holder,
Company’s obligations hereunder.

     3.2 Notice of Adjustment. Whenever events require adjustment to the Exercise Price or Exercise
Quantity, Company will, at its expense, promptly prepare and mail to Holder a certificate of its
chief financial officer calculating the adjusted Exercise Price and Exercise Quantity and fully
setting forth in reasonable detail the relevant facts.

     4. Notice of Certain Events. In the event (a “Notice Event”): (a) Company authorizes
the distribution to all holders of any class of its capital stock evidences of its indebtedness or
assets where all other holders of the Company’s capital stock have the right to receive the notice
described below; (b) of any capital reorganization or reclassification of the Warrant Shares or
Company’s Common Stock, other than a subdivision or combination of the outstanding Common Stock and
other than a change in par value of the Common Stock where all other holders of the Company’s
capital stock have the right to receive the notice described below; (c) of any consolidation or
merger to which Company is a party and for which approval of any of Company’s stockholders is
required, other than a consolidation or merger in which Company is the continuing corporation and
that does not result in any reclassification or change of the Warrant Shares or Common Stock
outstanding; (d) of the conveyance or transfer of substantially all of Company’s properties and
assets; or (e) of Company’s voluntary or involuntary dissolution, liquidation or winding-up; then
Company will send by certified mail to Holder, at least 20 days (or 10 days in any case specified
in clause (a) above) prior to the applicable record or effective date hereinafter specified, a
notice stating the dates as of which (x) the holders of capital stock of record to be entitled to
receive any such rights, warrants or distributions are to be determined, (y) such Notice Event is
expected to become effective, and (z) it is expected that holders of Warrant Shares or Common Stock
of record will be entitled to exchange or sell their Warrant Shares or Common Stock for securities
or other property, if any, deliverable upon such Notice Event.

     5. Financial Reporting. Company will deliver to Holder: (a) audited financial statements
for each fiscal year within 180 days after such year ends; and (b) unaudited financial statements
for each fiscal quarter within 45 days after such quarter ends.

     6. Record Holder. This Warrant will be deemed to have been exercised or converted, as
appropriate, and Holder will be the record holder of the Warrant Shares issued thereupon,
immediately before the close of business on the Exercise Date or Conversion Date, as applicable.
Company may deem and treat the registered holder as the absolute owner hereof for all purposes,
notwithstanding any notice to the contrary. Other than as set forth herein, this Warrant does not
give Holder rights as a Company stockholder.

4

 

     7. Securities Law Matters; Transfers.

     7.1 Securities Act Representations and Warranties of Holder. Holder is experienced in
evaluating start-up companies such as the Company, and has such knowledge and experience in
financial and business matters that such Holder is capable of evaluating the merits and risks of
such Holder’s investment in the Company, and has the ability to bear the economic risks of the
investment. Holder is acquiring the Warrant, and upon exercise or conversion hereof would acquire
the Warrant Shares, and upon conversion, if any, of the Warrant Shares would acquire the shares of
the Company’s Common Stock issuable upon such conversion (the Warrant, Warrant Shares, and such
shares of Common Stock issuable upon conversion of the Warrant Shares collectively the
“Securities”), for investment for such Holder’s own account and not with the view to, or for resale
in connection with, any distribution thereof. If not an individual, the Holder also represents
that the Holder has not been formed for the specific purpose of acquiring the Securities. The
Holder has received or has had full access to all the information it considers necessary or
appropriate to make an informed investment decision with respect to the acquisition of this Warrant
and its underlying securities. The Holder further has had an opportunity to ask questions and
receive answers from the Company regarding the terms and conditions of the offering of this Warrant
and its underlying securities and to obtain additional information (to the extent the Company
possessed such information or could acquire it without unreasonable effort or expense) necessary to
verify any information furnished to the Holder or to which the Holder has access. Holder
understands that the Securities have not been registered under the Securities Act by reason of a
specific exemption therefrom which depends upon, among other things, the bona fide nature of the
investment intent as expressed herein. Holder further represents that it does not have any
contract, undertaking, agreement or arrangement with any person to sell, transfer or grant
participation to any third person with respect to any of the Securities. Holder understands and
acknowledges that the issuance of Securities has not been and will not be registered under the
Securities Act, in reliance upon an exemption from the registration requirements of the Securities
Act. Such Holder acknowledges that the Securities must be held indefinitely unless subsequently
registered under the Securities Act or an exemption from such registration is available. Holder
is aware of the provisions of Rule 144 promulgated under the Securities Act which permit limited
resale of shares purchased in a private placement subject to the satisfaction of certain
conditions. Holder covenants that, in the absence of an effective registration statement
covering the Securities in question, such Holder will sell, transfer, or otherwise dispose of the
Securities only in a manner consistent with such Holder’s representations and covenants set forth
in this paragraph. Holder understands that no public market now exists for any of the Securities
issued by the Company, and that there can be no guarantee that a public market will ever exist for
any of the Securities. Holder is an “accredited Holder” as defined in Rule 501 of Regulation D
promulgated under the Securities Act. Holder’s address indicated on the signature page hereto
sets forth, in the case of individuals, the state in which such Holder resides or, in the case of
entities, the state of Holder’s principal place of business.

     7.2 Market Stand-Off Provision. Holder hereby agrees that it will not, without the
prior written consent of the managing underwriter, during the period commencing on the date of the
final prospectus relating to the Company’s initial public offering and ending on the date specified
by the Company and the underwriter (such period not to exceed one
hundred eighty (180) days) (i)
lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any
option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer
or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible
into or exercisable or exchangeable for Common Stock (whether such shares or any such securities
are then owned by the Holder or are thereafter acquired), or (ii) enter into any swap or other
arrangement that transfers to another, in whole or in part, any of the economic consequences of
ownership of the Common Stock, whether any such transaction described in clause (i) or (ii) above
is to be settled by delivery of Common Stock or such other securities, in cash or otherwise. The
foregoing provisions of this Section 7.2 shall apply only to the Company’s initial public offering
of equity securities, and shall not apply to the sale of any shares to an underwriter pursuant to
an underwriting agreement. The underwriters in connection with the Company’s initial public
offering are intended third party beneficiaries of this Section 7.2 and shall have the right, power
and authority to enforce the provisions hereof as though they were a party hereto. In order to
enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to
the Securities until the end of such period.

5

 

     7.3 Transfer and Exchange. This Warrant and the Warrant Shares issuable upon exercise of
this Warrant (and the securities issuable, directly or indirectly, upon conversion of the Warrant
Shares, if
any) may not be transferred or assigned in whole or in part without compliance with applicable
federal and state securities laws by the transferor and the transferee (including, without
limitation, the delivery of investment representation letters and legal opinions reasonably
satisfactory to the Company, as reasonably requested by the Company). The Company shall not require
Holder to provide an opinion of counsel if the transfer is to any affiliate of Holder or if there
is no material question as to the availability of current information as referenced in Rule 144(c),
Holder represents that it has complied with Rule 144(d) and (e) in reasonable detail, the selling
broker represents that it has complied with Rule 144(f), and the Company is provided with a copy of
Holder’s notice of proposed sale. Provided Holder complies with this Section 7.3, Holder may
transfer all or a portion hereof on Company’s books maintained for such purpose. Company will issue
and deliver Related Warrants to Holder with respect to the untransferred portion, and to
transferee, who thereupon will also become a Holder, with respect to the transferred portion.
Holder may exchange or subdivide this Warrant into Related Warrants for the same aggregate number
of Warrant Shares, with each new Related Warrant to represent the right to purchase that portion of
the Exercise Quantity of Warrant Shares designated by Holder. “Related Warrant” means a new Warrant
identical hereto (except for Exercise Quantity and as provided in Section 2(b)) issued to Holder
or its transferee in accordance with the terms hereof. Subject to the provisions of Section 7.3, and
upon providing Company with written notice, Holder may transfer all or part of this Warrant or the
Warrant Shares issuable upon exercise of this Warrant (or the securities issuable, directly or
indirectly, upon conversion of the Shares, if any) to any affiliate of Holder, or to any other
transferee by providing to the Company notice of the portion of the Warrant being transferred with
the name, address and taxpayer identification number of the transferee and surrendering this
Warrant to the Company for reissuance to the transferee(s) (and Holder if applicable). The Company
may refuse to transfer this Warrant to any person who directly competes with the Company unless the
Company’s stock is publicly traded.

     8.
Miscellaneous.

     8.1 Warrant Value. The value of this Warrant on the date hereof is $100.

     8.2 Warrant Register. The Company will maintain a register containing the names and
addresses of the Holders of this Warrant.

     8.3 Replacement of Warrants. Upon receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and (in the case of loss,
theft or destruction) upon delivery of an indemnity agreement (with surety if reasonably required)
in an amount reasonably satisfactory to the Company, or (in the case of mutilation) upon surrender
and cancellation of this Warrant, the Company will issue, in lieu thereof, a new Warrant of like
tenor.

     8.4 Fractional Shares. If a fractional Warrant Share would be issuable upon exercise or
conversion, Company will instead pay in cash a sum equal to the product of such fraction and a full
Warrant Share’s Fair Market Value, provided that the product is at least $5.00.

     8.5 Entire Agreement. This Warrant constitutes the entire agreement between the parties
with respect to its subject matter and may only be modified in writing. Each provision hereof is
severable from every other provision when determining legal
enforceability. The terms and
conditions hereof will inure to the benefit of and be binding upon the parties’ respective
successors and assigns, except as expressly provided otherwise herein. This Warrant has been
entered into in Menlo Park, California and is governed by California law.

     8.6 Notices. All notices will be in writing and delivered personally, by telefacsimile
confirmed by letter, or by reliable nationally-recognized overnight courier, postage paid at
Company’s expense, addressed, until further notice, (a) if to Holder, to Holder’s address and fax
of record, attention of Holder, (b) if to Company, to Company’s Office, Attention: Corporate
Secretary, or (c) if to a holder of a Related Warrant or Warrant Shares, to the most recent address
of which said holder has notified Company, and are effective upon receipt.

6

 

     8.7 Waivers and Amendments. Holder’s remedies hereunder, by law or otherwise,
are cumulative and not exclusive. Holder’s delay or omission to exercise any right or remedy does
not impair or -waive the same. A waiver of one breach or default does not waive
any other breach or default. Any waiver,
permit, consent or approval is effective only to the extent specifically written. Any term of this
Warrant may be amended or waived only by an instrument in writing signed by the party against which
enforcement of the amendment or waiver is sought.

     8.8 Legends. This Warrant and the Warrant Shares (and the securities issuable, directly
or indirectly, upon conversion of the Shares, if any) shall be imprinted with a legend in
substantially the following form:

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR UNDER ANY
APPLICABLE STATE LAWS, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE
REGISTRATION THERE OF UNDER SUCH ACT AND AN EXEMPTION UNDER APPLICABLE STATE LAW OR PURSUANT TO
RULE 144 OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION AND ITS COUNSEL THAT
SUCH REGISTRATION IS NOT REQUIRED

     IN WITNESS WHEREOF, Company has caused this Warrant to be signed by its duly authorized officer and
issued as of the Issuance Date.

Effective Date of Warrant: June 30, 2003

COMPANY: Aruba, Inc.

180 Great Oaks Blvd., Suite B, San Jose, CA 95119

	 	 	 	 	 
	By:
	 	 	 	 
	Print Name:

	 	 

	 	 
	Title:

	 	 

	 	 
	 

	 	 

	 	 

ACCEPTED AND AGREED:

WARRANTHOLDER: Costella Kirsch Venture Partners I, L.P.;

Address: 873 Santa Cruz Ave., Suite 207; Menlo Park, CA 94025

	 	 	 	 	 
	By:
	 	 	 	 
	Print Name:

	 	 

	 	 
	Title:

	 	 

	 	 
	 

	 	 

	 	 

7

 

EXHIBIT
A

WARRANT
CONVERSION, EXERCISE AND ASSIGNMENT FORM

CONVERSION OR EXERCISE FORM 

     The undersigned hereby irrevocably elects to exercise [check where
applicable]

     ___
the Conversion Right set forth in the Warrant to the extent
of that number of Warrant Shares (as defined in the Warrant) into which______ %
of the Warrant may be converted, 

     ___the Warrant to the
extent of purchasing ______
Warrant Shares, and hereby tenders $___ in payment of the exercise price
thereof, 

to occur on ___.

ASSIGNMENT FORM

     FOR VALUE RECEIVED, Holder hereby sells, assigns and transfers unto                                          [name]
of                                                              [address] its right to purchase______ Warrant Shares and does
hereby irrevocably
constitute and
appoint                                          attorney, to transfer the same on Company’s books, with full power of substitution in the premises.

INSTRUCTIONS FOR REGISTRATION

	 	 	 	 	 	 	 	 	 	 	 
	OF STOCK OR
TRANSFER	 	OF RELATED WARRANT
	 
	 	 	 	 	 	 	 	 	 	 
	Name

	 	 	 	Name	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 	 	 
	Address

	 	 	 	Address	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Signature

	 	 	 	Signature	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

SIGNATURE OF HOLDER 

	 	 	 	 	 	 	 	 	 
	 

	 	Date:
	 	 	,	200_.	 	 
	 

	 	 	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Signature	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Name	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Address	 	 	 	 	 	 
	 	 	 	 	 	 	 

8exv4w5

 

Exhibit
4.5

STOCK ISSUANCE AGREEMENT

          THIS STOCK ISSUANCE AGREEMENT (the “Agreement”) is made as of the 15th day of July, 2005, by
and among Aruba Wireless Networks, Inc., a Delaware corporation (the “Company”), and Microsoft
Corporation, a Washington corporation (“Microsoft”).

RECITALS

          WHEREAS, the Company and Microsoft have entered into that certain Microsoft Vendor Program
Agreement of even date herewith (the “Vendor Program Agreement”); and

          WHEREAS, to induce Microsoft to enter into and as a condition of the Vendor Program
Agreement, the Company has agreed to provide certain additional consideration to Microsoft in the
event of an initial public offering of the Company, or, if the Company is sold to another party
prior to such an initial public offering, upon such sale.

          NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein and in
the Vendor Program Agreement, the parties hereto agree as follows:

	1.	 	IPO Shares. Subject to the provisions of Section 3 below, the Company agrees that, upon
the Company’s firmly underwritten initial public offering of the Company’s common
stock (the “IPO”) registered under the Securities Act of 1933, as amended (the “Act”),
the Company shall issue to Microsoft a number of shares of the Company’s common
stock (the “IPO Shares”) calculated as follows: (1) if the IPO occurs prior to the three-
year anniversary of this Agreement (the “Final Calculation Date”), by dividing
$3,500,000 by the actual per share public offering price of the Company’s common stock
in such IPO (the “IPO Price”), or (2) if the IPO occurs on or after the Final Calculation
Date, by dividing the lesser of (i) $3,500,000 and (ii) the aggregate amount of the
Company’s products purchased by Microsoft pursuant to the Vendor Program Agreement
(the “Total Purchase Amount”) as of the Final Calculation Date by the IPO Price. When
issued, the IPO Shares shall be deemed to be fully paid and nonassessable. To the extent
any shareholders of the Company have shares of Common Stock registered for sale in the
IPO or in any subsequent underwritten offering of the Company’s common stock in the
12 months following the IPO, Microsoft shall be entitled to include a minimum of 50% of
the IPO Shares in such offering. Except as provided in the foregoing, the IPO Shares
shall be subject to the standard restrictions applicable to a private placement of securities
under applicable state and federal securities laws, and such other restrictions on
transferability as may be required by the Company’s underwriters and applicable to all of
the Company’s shareholders in connection with such IPO. Notwithstanding the
foregoing, the IPO Shares shall only be issued in the event that such IPO occurs prior to a
Change in Control (as defined below).
	 
	2.	 	Change in Control Right.

	 	(a)	 	Subject to the provisions of Section 4 below, the Company agrees
that, upon the consummation of a Change in Control (as defined
below), the Company shall

 

 

	 	 	 	pay Microsoft from the aggregate proceeds of such Change in Control (the
“Merger Consideration”) an amount (the “Change of Control Payment”) equal to the
following: (1) if the Change of Control occurs prior to the Final Calculation
Date, the Change of Control Payment shall be $5,000,000, or (2), if the Change of
Control occurs on or after the Final Calculation Date, the Change of Control
Payment shall equal the lesser of (x) $5,000,000 and (y) the Total Purchase Amount
as of the date of the Final Calculation Date. Notwithstanding the foregoing, the
Company shall only make the Change in Control Payment if the consummation of such
Change in Control occurs prior to the Company’s IPO.
	 
	 	(b)	 	For purposes of this Agreement, “Change in Control” shall mean (i) the sale,
transfer or other disposition of all or substantially all of the Company’s assets,
(ii) the consummation of a merger or consolidation of the Company with or into
another entity (except a merger or consolidation in which the holders of capital
stock of the Company immediately prior to such merger or consolidation
continue to hold at least 50% of the voting power of the capital stock of this
corporation or the surviving or acquiring entity), or (iii) the closing of the
transfer (whether by merger, consolidation or otherwise), in one transaction or a
series of related transactions, to a person or group of affiliated persons (other
than an underwriter of the Company’s securities), of the Company’s securities
if, after such closing, such person or group of affiliated persons would hold at
least 50% of the outstanding voting stock of the Company.
	 
	 	(c)	 	In the event that the Merger Consideration is not entirely cash proceeds, the
Company, in its sole discretion, can elect to pay the Change in Control Payment
out of cash or non-cash proceeds from the Merger Consideration in the same
proportion as paid to the Company’s other shareholders. The fair market value
of non-cash Merger Consideration shall be determined in good faith by the
Company’s Board of Directors and shall be the same as determined for the
Company’s other shareholders.

	3.	 	IPO Shares Escrow Arrangements.

	 	(a)	 	If the IPO occurs prior to the Final Calculation Date, then (i) if the Total
Purchase Amount as of the date of the IPO is less than $2,000,000, all of the
IPO Shares shall be placed into escrow, upon terms and conditions and with an
escrow agent reasonably acceptable to both Microsoft and the Company (the
“IPO Escrow”), or (ii) if the Total Purchase Amount is $2,000,000 or greater as
of the date of the IPO, a number of IPO Shares equal to the lesser of (x)
$3,500,000 and (y) the Total Purchase Amount as of the date of the IPO divided
by the IPO Price shall be delivered to Microsoft by the Company, and the
remaining IPO Shares, if any, shall be placed into the IPO Escrow.
	 
	 	(b)	 	Following the date of the IPO, if, pursuant to Section 3(a)(i) above, no IPO
Shares are delivered to Microsoft on the date of the IPO, but at a future date
prior to the Final Calculation Date, the Total Purchase Amount exceeds

 

 

	 	 	 	$2,000,000, the escrow agent shall promptly release to Microsoft from the
IPO Escrow that number of IPO Shares calculated by dividing $2,000,000 by the IPO
Price.
	 
	 	(c)	 	On the Final Calculation Date, the escrow agent shall (x) if the Total
Purchase Amount as of the Final Calculation Date is less than $2,000,000, release
all of the IPO Shares to the Company, (y) if the Total Purchase Amount as of the
Final Calculation Date is greater than $2,000,000, but less than $3,500,000, release
to Microsoft that number of IPO Shares calculated by subtracting the number
of shares, if any, released pursuant to Section 3(b) above from the quotient obtained
by dividing the Total Purchase Amount as of the Final Calculation Date by the IPO
Price, with the remaining IPO Shares released to the Company, or (z) if the Total
Purchase Amount as of the Final Calculation Date is greater than $3,500,000, release
all of the IPO Shares to Microsoft.

	4.	 	Change of Control Payment Escrow Arrangements.

	 	(a)	 	If a Change of Control occurs prior to the Final Calculation Date, then (i) if the
Total Purchase Amount as of the date of the Change of Control is less than
$2,000,000, all of the Change of Control Payment shall be placed into escrow,
upon terms and conditions and with an escrow agent reasonably acceptable to
both Microsoft and the Company (the “Change of Control Escrow”), or (ii) if
the Total Purchase Amount is $2,000,000 or greater as of the date of the Change
of Control, an amount equal to the lesser of (x) $5,000,000 and (y) the Total
Purchase Amount as of the date of the Change of Control shall be paid to
Microsoft by the Company, and the remaining Change of Control Amount, if
any, shall be placed into the Change of Control Escrow.
	 
	 	(b)	 	Following the date of the Change of Control, if, pursuant to Section 4(a)(i)
above, no Change of Control Payment is delivered to Microsoft on the date of
the Change of Control, but at a future date prior to the Final Calculation Date,
the Total Purchase Amount exceeds $2,000,000, the escrow agent shall
promptly release $2,0000,000 to Microsoft from the Change of Control Escrow.
	 
	 	(c)	 	On the Final Calculation Date, the escrow agent shall (x) if the Total Purchase
Amount as of the Final Calculation Date is less than $2,000,000, release all of
the Change of Control Amount in the escrow to the Company, (y) if the Total
Payment Amount as of the Final Calculation Date is greater than $2,000,000,
but less than $5,000,000, release to Microsoft an amount equal to the difference
between the Total Purchase Amount as of the Final Calculation Date and the
amount, if any, released pursuant to Section 4(b) above, with the remaining
Change of Control Payment released to the Company, or (z) if the Total
Purchase Amount as of the Final Calculation Date is greater than $5,000,000,
release all of the Change of Control Payment to Microsoft.

	5.	 	Entire Agreement; Amendments and Waivers. This Agreement (including the exhibits
hereto) constitutes the full and entire understanding and agreement between the parties

 

 

	 	 	with regard to the subjects hereof. Any term of this Agreement may be amended and the
observance of any term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively) only with the written consent of (i)
the Company and (ii) Microsoft. Any amendment or waiver effected in accordance with this
Section 5 shall be binding upon each holder of the rights set forth in this Agreement, each
future holder of such rights, and the Company.
	 
	6.	 	Governing Law. This Agreement shall be governed by and construed under the laws of
the State of California as applied to agreements among California residents entered into
and to be performed entirely within California.
	 
	7.	 	Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the
same instrument.
	 
	8.	 	Titles and Subtitles. The titles and subtitles used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this
Agreement.
	 
	9.	 	Severability. If one or more provisions of this Agreement are held to be unenforceable
under applicable law, such provision shall be excluded from this Agreement and the
balance of the Agreement shall be interpreted as if such provision were so excluded and
shall be enforceable in accordance with its terms.
	 
	10.	 	Notices. All notices and other communications required or permitted hereunder shall be
in writing, shall be effective when given, and shall in any event be deemed to be given (a)
five (5) days after deposit with the U.S. Postal Service or other applicable postal service,
if delivered by first class mail, postage prepaid, (b) upon delivery, if delivered by hand,
(c) one business day after the business day of deposit with Federal Express or similar
overnight courier, freight prepaid, or (d) one day after the business day of delivery by
facsimile transmission, if deliverable by facsimile transmission, with copy by first class
mail, postage prepaid, and shall be addressed, as set forth on the signature pages hereto,
or at such other address as such party may designate by ten (10) days’ advance written
notice to the other parties hereto.

 

 

          In Witness Whereof, the undersigned have executed this Stock Issuance Agreement
as of the date first above written.

	 	 	 	 	 
	 	ARUBA WIRELESS NETWORKS, INC.

 	 
	 	By:  	/s/ Don LeBeau
 	 
	 	 	Don LeBeau, Chief Executive Officer 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	Address:  	 	1322 Crossman Ave.

Sunnyvale, CA 94089
	 
	 

	 	 	 	 	 
	 	MICROSOFT CORPORATION

 	 
	 	By:  	Ron Markezich 	 
	 	 	Name:  	Ron Markezich 	 
	 	 	Title:  	CIO, VP 	 
	 

	 	 	 	 	 
	 	Address:  	 	1 Microsoft Way

Redmond, WA 98052

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