Document:

Loan and Security Agreement dated 3/31/2003

 EXHIBIT 10.17 
  
 Silicon Valley Bank 
  
 Loan and Security Agreement 
  

	Borrower:	  	Atheros Communications, Inc.
	Address:	  	 529 Almanor Avenue
 Sunnyvale,
California 94085

		
	Date:	  	March         , 2003

  
 THIS LOAN AND SECURITY
AGREEMENT is entered into on the above date between SILICON VALLEY BANK (“Silicon”), whose address is 3003 Tasman Drive, Santa Clara, California 95054 and the borrower(s) named above (jointly and severally, the “Borrower”),
whose chief executive office is located at the above address (“Borrower’s Address”). The Schedule to this Agreement (the “Schedule”) shall for all purposes be deemed to be a part of this Agreement, and the same is an
integral part of this Agreement. (Definitions of certain terms used in this Agreement are set forth in Section 8 below.) 
  
 1. LOANS. 
  
 1.1 Loans. Silicon will make loans to Borrower (the “Loans”), in amounts determined by Silicon in its good faith business
judgment, up to the amounts (the “Credit Limit”) shown on the Schedule, provided no Default or Event of Default has occurred and is continuing, and subject to deduction of Reserves for accrued interest and such other Reserves as Silicon
deems proper from time to time in its good faith business judgment. 
  
 1.2 Interest. All Loans and all other monetary Obligations shall bear interest at the rate shown on the Schedule, except where expressly set forth to the contrary in this Agreement. Interest shall be payable monthly, on the
last day of the month. Interest may, in Silicon’s discretion, be charged to Borrower’s loan account, and the same shall thereafter bear interest at the same rate as the other Loans. Silicon may, in its discretion, charge interest to
Borrower’s Deposit Accounts maintained with Silicon. Regardless of the amount of Obligations that may be outstanding from time to time, Borrower shall pay Silicon minimum monthly interest during the term of this Agreement in the amount set
forth on the Schedule (the “Minimum Monthly Interest”). 
  
 1.3 Overadvances. If at any time or for any reason the total of all outstanding Loans and all other monetary Obligations exceeds the Credit Limit (an “Overadvance”), Borrower shall immediately pay the amount of the
excess to Silicon, without notice or demand. Without limiting Borrower’s obligation to repay to Silicon the amount of any Overadvance, Borrower agrees to pay Silicon interest on the outstanding amount of any Overadvance, on demand, at the
Default Rate. 
  
 1.4 Fees. Borrower shall pay
Silicon the fees shown on the Schedule, which are in addition to all interest and other sums payable to Silicon and are not refundable. 
  
 1.5 Loan Requests. To obtain a Loan, Borrower shall make a request to Silicon by facsimile or telephone. Loan requests received after 12:00
Noon will not be considered by Silicon until the next Business Day. Silicon may rely on any telephone request for a Loan given by a person whom Silicon believes in good faith is an authorized representative of Borrower, and Borrower will indemnify
Silicon for any loss Silicon suffers as a result of that reliance. 
  
 1.6 Letters of Credit. At the request of Borrower, Silicon may, in its good faith business judgment, issue or arrange for the issuance of letters of credit for the account of Borrower, in each case in form and substance
satisfactory to Silicon in its sole discretion (collectively, “Letters of Credit”). The aggregate face amount of all Letters of Credit from time to time outstanding shall not exceed the amount shown on the Schedule (the “Letter of
Credit Sublimit”), and shall be reserved against Loans which would otherwise be available hereunder, and in the event at any time there are insufficient Loans available to Borrower for such reserve, Borrower shall deposit and maintain with
Silicon cash collateral in an amount at all times equal to such deficiency, which shall be held as Collateral for all purposes of this Agreement. Borrower shall pay all 

  

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bank charges (including charges of Silicon) for the issuance of Letters of Credit, together with such additional fee as Silicon’s letter of credit
department shall charge in connection with the issuance of the Letters of Credit. Any payment by Silicon under or in connection with a Letter of Credit shall constitute a Loan hereunder on the date such payment is made. Each Letter of Credit shall
have an expiry date no later than thirty days prior to the Maturity Date. Borrower hereby agrees to indemnify and hold Silicon harmless from any loss, cost, expense, or liability, including payments made by Silicon, expenses, and reasonable
attorneys’ fees incurred by Silicon arising out of or in connection with any Letters of Credit. Borrower agrees to be bound by the regulations and interpretations of the issuer of any Letters of Credit guarantied by Silicon and opened for
Borrower’s account or by Silicon’s good faith interpretations of any Letter of Credit issued by Silicon for Borrower’s account. Borrower understands that Letters of Credit may require Silicon to indemnify the issuing bank for certain
costs or liabilities arising out of claims by Borrower against such issuing bank. Borrower hereby agrees to indemnify and hold Silicon harmless with respect to any loss, cost, expense, or liability incurred by Silicon under any Letter of Credit as a
result of Silicon’s indemnification of any such issuing bank. Borrower agrees to execute and deliver Silicon’s standard documentation relating to any Letters of Credit. The provisions of this Loan Agreement, as it pertains to Letters of
Credit, the aforementioned Letter of Credit documentation, and any other Loan Documents relating to Letters of Credit are cumulative. 
  
 2. SECURITY INTEREST. To secure the payment and performance of all of the Obligations when due, Borrower hereby grants to Silicon a security interest in all
of the following (collectively, the “Collateral”): all right, title and interest of Borrower in and to all of the following, whether now owned or hereafter arising or acquired and wherever located: all Accounts; all Inventory; all
Equipment; all Deposit Accounts; all General Intangibles (including without limitation all Intellectual Property); all Investment Property; all Other Property; and any and all claims, rights and interests in any of the above, and all guaranties and
security for any of the above, and all substitutions and replacements for, additions, accessions, attachments, accessories, and improvements to, and proceeds (including proceeds of any insurance policies, proceeds of proceeds and claims against
third parties) of, any and all of the above, and all Borrower’s books relating to any and all of the above; provided that the Collateral shall not include the Intellectual Property unless Borrower fails to meet the Quick Ratio Test set forth in
the Schedule. Notwithstanding the fact that the Collateral does not include the Intellectual Property unless Borrower fails to meet the Quick Ratio Test set forth in the Schedule, the Collateral includes all proceeds of Intellectual Property,
including, without limitation, all Accounts and payment intangibles. In the event Borrower at any time fails to meet the Quick Ratio Test, then, at all times thereafter, the Collateral shall include the Intellectual Property. Borrower shall
concurrently execute and deliver an Intellectual Property Security Agreement in favor of Silicon, but the same will provide that it is not effective unless and until Borrower fails to meet the Quick Ratio Test. Notwithstanding the foregoing, if a
judicial authority (including a U.S. Bankruptcy Court) holds that a security interest in the underlying Intellectual Property is necessary to have a security interest in such items that are proceeds of the Intellectual Property, then in such
circumstance, the Collateral shall automatically, and effective as of the date hereof, include the Intellectual Property to the extent necessary to permit perfection of Bank’s security interest in such proceeds, including, without limitation,
proceeds consisting of Accounts and General Intangibles. 
  
 3.
REPRESENTATIONS, WARRANTIES AND COVENANTS OF BORROWER. 
  
 In order to induce Silicon to enter into this Agreement and to make Loans, Borrower represents and warrants to Silicon as follows, and Borrower covenants that the following representations will continue to be true, and that Borrower will at
all times comply with all of the following covenants, throughout the term of this Agreement and until all Obligations have been paid and performed in full: 
  
 3.1 Corporate Existence and Authority. Borrower is and will continue to be, duly organized, validly existing and in good standing under the
laws of the jurisdiction of its incorporation. Borrower is and will continue to be qualified and licensed to do business in all jurisdictions in which any failure to do so would result in a Material Adverse Change. The execution, delivery and
performance by Borrower of this Agreement, and all other documents contemplated hereby (i) have been duly and validly authorized, (ii) are enforceable against Borrower in accordance with their terms (except as enforcement may be limited by equitable
principles and by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to creditors’ rights generally), and (iii) do not violate Borrower’s articles or certificate of incorporation, or Borrower’s by-laws, or any
law or any material agreement or instrument which is binding upon Borrower or its property, and (iv) do not constitute grounds for acceleration of any material indebtedness or obligation under any agreement or instrument which is binding upon
Borrower or its property. 
  
 3.2 Name; Trade Names and
Styles. The name of Borrower set forth in the heading to this Agreement is its correct name. Listed in the Representations are all prior names of Borrower and all of Borrower’s present and prior trade names. Borrower shall give Silicon
30 days’ prior written notice before changing its name or doing business under any other name. Borrower has complied, and will in the future comply, in all material respects, with all laws relating to the conduct of 

  

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business under a fictitious business name, except where the failure to so comply would not reasonably be expected to result in a Material Adverse Change.

  
 3.3 Place of Business; Location of Collateral.
The address set forth in the heading to this Agreement is Borrower’s chief executive office. In addition, Borrower has places of business and Collateral is located only at the locations set forth in the Representations. Borrower will
give Silicon at least 30 days prior written notice before opening any additional place of business, changing its chief executive office, or moving any of the Collateral to a location other than Borrower’s Address or one of the locations set
forth in the Representations, except that Borrower may maintain sales offices in the ordinary course of business at which not more than a total of $100,000 fair market value of Equipment is located. 
  
 3.4 Title to Collateral; Perfection; Permitted Liens.

  
 (a) Borrower is now, and will at all times in
the future be, the sole owner of all the Collateral, except for items of Equipment which are leased to Borrower. The Collateral and all Intellectual Property (whether or not included in the Collateral) now is and will at all times remain free and
clear of any and all liens, charges, security interests, encumbrances and adverse claims, except for Permitted Liens. Silicon now has, and will continue to have, a first-priority perfected and enforceable security interest in all of the Collateral,
subject only to the Permitted Liens, and Borrower will at all times defend Silicon and the Collateral against all claims of others. 
  
 (b) Borrower has set forth in the Representations all of Borrower’s Deposit Accounts (except that the Representations inadvertently
omitted a Deposit Account maintained by a subsidiary of Borrower in Taiwan), and Borrower will give Silicon five Business Days advance written notice before establishing any new Deposit Accounts and will cause the institution where any such new
Deposit Account is maintained to execute and deliver to Silicon a control agreement in form sufficient to perfect Silicon’s security interest in the Deposit Account and otherwise satisfactory to Silicon in its good faith business judgment.
Nothing herein limits any requirements which may be set forth in the Schedule as to where Deposit Accounts will be maintained. 
  
 (c) In the event that Borrower shall at any time after the date hereof have any commercial tort claims against others, which it is
asserting or intends to assert, and in which the potential recovery exceeds $100,000, Borrower shall promptly notify Silicon thereof in writing and provide Silicon with such information regarding the same as Silicon shall request (unless providing
such information would waive the Borrower’s attorney-client privilege). Such notification to Silicon shall constitute a grant of a security interest in the commercial tort claim and all proceeds thereof to Silicon, and Borrower shall execute
and deliver all such documents and take all such actions as Silicon shall request in connection therewith. 
  
 (d) None of the Collateral now is or will be affixed to any real property in such a manner, or with such intent, as to become a fixture.
Borrower is not and will not become a lessee under any real property lease pursuant to which the lessor may obtain any rights in any of the Collateral and no such lease now prohibits, restrains, impairs or will prohibit, restrain or impair
Borrower’s right to remove any Collateral from the leased premises. Whenever any Collateral is located upon premises in which any third party has an interest, Borrower shall, whenever requested by Silicon, use its best efforts to cause such
third party to execute and deliver to Silicon, in form acceptable to Silicon, such waivers and subordinations as Silicon shall specify in its good faith business judgment. Borrower will keep in full force and effect, and will comply with all
material terms of, any lease of real property where any of the Collateral now or in the future may be located. 
  
 3.5 Maintenance of Collateral. Borrower will maintain the Collateral in good working condition (ordinary wear and tear excepted), and
Borrower will not use the Collateral for any unlawful purpose. Borrower will immediately advise Silicon in writing of any material loss or damage to the Collateral. 
  
 3.6 Books and Records. Borrower has maintained and will maintain at Borrower’s Address complete and
accurate books and records, comprising an accounting system in accordance with GAAP. 
  
 3.7 Financial Condition, Statements and Reports. All financial statements now or in the future delivered to Silicon have been, and will be, prepared in conformity with GAAP and now and in the future will
fairly present the results of operations and financial condition of Borrower, in accordance with GAAP, at the times and for the periods therein stated. Between the last date covered by any such statement provided to Silicon and the date hereof,
there has been no Material Adverse Change. 
  
 3.8 Tax
Returns and Payments; Pension Contributions. Borrower has timely filed, and will timely file, all required tax returns and reports, and Borrower has timely paid, and will timely pay, all foreign, federal, state and local taxes, assessments,
deposits and contributions now or in the future owed by Borrower. Borrower may, however, defer payment of any contested taxes, provided that Borrower (i) in good faith contests Borrower’s obligation to pay the taxes by appropriate proceedings
promptly and diligently instituted and conducted, (ii) notifies Silicon in writing of the commencement of, and any material development in, the proceedings, and (iii) posts bonds or takes any other steps required to keep the contested 

  

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taxes from becoming a lien upon any of the Collateral. Borrower is unaware of any claims or adjustments proposed for any of Borrower’s prior tax years
which could result in additional taxes becoming due and payable by Borrower. Borrower has paid, and shall continue to pay all amounts necessary to fund all present and future pension, profit sharing and deferred compensation plans in accordance with
their terms, and Borrower has not and will not withdraw from participation in, permit partial or complete termination of, or permit the occurrence of any other event with respect to, any such plan which could reasonably be expected to result in any
liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 
  
 3.9 Compliance with Law. Borrower has, to the best of its knowledge, complied, and will comply, in all material respects, with all
provisions of all foreign, federal, state and local laws and regulations applicable to Borrower, including, but not limited to, those relating to Borrower’s ownership of real or personal property, the conduct and licensing of Borrower’s
business, and all environmental matters. 
  
 3.10
Litigation. There is no claim, suit, litigation, proceeding or investigation pending or (to best knowledge of Borrower’s executive officers) threatened against or affecting Borrower in any court or before any governmental agency (or any
basis therefor known to Borrower) which could reasonably be expected to result, either separately or in the aggregate, in any Material Adverse Change. Borrower will promptly inform Silicon in writing of any claim, proceeding, litigation or
investigation in the future threatened or instituted against Borrower involving any single claim of $250,000 or more, or involving $500,000 or more in the aggregate. 
  
 3.11 Use of Proceeds. All proceeds of all Loans shall be used solely for lawful business purposes. Borrower is
not purchasing or carrying any “margin stock” (as defined in Regulation U of the Board of Governors of the Federal Reserve System) and no part of the proceeds of any Loan will be used to purchase or carry any “margin stock” or to
extend credit to others for the purpose of purchasing or carrying any “margin stock.” 
  
 4. ACCOUNTS. 
  
 4.1 Representations Relating to Accounts. Borrower represents and warrants to Silicon as follows: Each Account with respect to which Loans are requested by Borrower shall, on the date each Loan is requested and made, (i)
represent an undisputed bona fide existing unconditional obligation of the Account Debtor created by the sale, delivery, and acceptance of goods or the rendition of services, or the non-exclusive licensing of Intellectual Property, in the ordinary
course of Borrower’s business, and (ii) meet the Minimum Eligibility Requirements set forth in Section 8 below. 
  
 4.2 Representations Relating to Documents and Legal Compliance. Borrower represents and warrants to Silicon as follows: All statements made
and all unpaid balances appearing in all invoices, instruments and other documents evidencing the Accounts are and shall be true and correct in all material respects and all such invoices, instruments and other documents and all of Borrower’s
books and records are and shall be genuine and in all respects what they purport to be. All sales and other transactions underlying or giving rise to each Account shall comply in all material respects with all applicable laws and governmental rules
and regulations. To the best of Borrower’s knowledge, all signatures and endorsements on all documents, instruments, and agreements relating to all Accounts are and shall be genuine, and all such documents, instruments and agreements are and
shall be legally enforceable in accordance with their terms. 
  
 4.3 Schedules and Documents relating to Accounts. Borrower shall deliver to Silicon transaction reports and schedules of collections, as provided in the Schedule, on Silicon’s standard forms; provided, however, that
Borrower’s failure to execute and deliver the same shall not affect or limit Silicon’s security interest and other rights in all of Borrower’s Accounts, nor shall Silicon’s failure to advance or lend against a specific Account
affect or limit Silicon’s security interest and other rights therein. If requested by Silicon, Borrower shall furnish Silicon with copies (or, at Silicon’s request, originals) of all contracts, orders, invoices, and other similar
documents, and all shipping instructions, delivery receipts, bills of lading, and other evidence of delivery, for any goods the sale or disposition of which gave rise to such Accounts, and Borrower warrants the genuineness of all of the foregoing.
Borrower shall also furnish to Silicon an aged accounts receivable trial balance as provided in the Schedule. In addition, Borrower shall deliver to Silicon, on its request, the originals of all instruments, chattel paper, security agreements,
guarantees and other documents and property evidencing or securing any Accounts, in the same form as received, with all necessary indorsements, and copies of all credit memos. 
  
 4.4 Collection of Accounts. Whether or not an Event of Default has occurred, Borrower shall
direct all Account Debtors to remit all proceeds of Accounts and General Intangibles to a lockbox account, as Silicon may specify, pursuant to a lockbox agreement in such form as Silicon may specify. Within one Business Day after receipt by Silicon
of such proceeds in the lockbox account in immediately available funds, Silicon shall deposit the same into Borrower’s operating account at Silicon, unless (i) a Default or an Event of Default has occurred and is continuing, or (ii) the Asset
Based Terms are in effect (as provided in the Schedule). If an Event of Default has occurred and is continuing, or if the Asset Based Terms are in effect, Borrower shall hold all payments on, and proceeds of, Accounts in trust for Silicon, and
Borrower shall 

  

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immediately deliver all such payments and proceeds to Silicon in their original form, duly endorsed, to be applied to the Obligations in such order as
Silicon shall determine. 
  
 4.5. Remittance of Proceeds.
All proceeds arising from the disposition of any Collateral shall be delivered, in kind, by Borrower to Silicon in the original form in which received by Borrower not later than the following Business Day after receipt by Borrower, to be
applied to the Obligations in such order as Silicon shall determine; provided that, if no Default or Event of Default has occurred and is continuing, Borrower shall not be obligated to remit to Silicon the proceeds of the sale of worn out or
obsolete Equipment disposed of by Borrower in good faith in an arm’s length transaction for an aggregate purchase price of $100,000 or less (for all such transactions in any fiscal year). Borrower agrees that it will not commingle proceeds of
Collateral with any of Borrower’s other funds or property, but will hold such proceeds separate and apart from such other funds and property and in an express trust for Silicon. Nothing in this Section limits the restrictions on disposition of
Collateral set forth elsewhere in this Agreement. 
  
 4.6
Disputes. Borrower shall notify Silicon promptly of all disputes or claims relating to Accounts on the regular reports provided to Silicon. Borrower shall not forgive (completely or partially), compromise or settle any Account for less than
payment in full, or agree to do any of the foregoing, except that Borrower may do so, provided that: (i) Borrower does so in good faith, in a commercially reasonable manner, in the ordinary course of business, and in arm’s length transactions,
which are reported to Silicon on the regular reports provided to Silicon; (ii) no Default or Event of Default has occurred and is continuing; and (iii) taking into account all such discounts, settlements and forgiveness, the total outstanding Loans
will not exceed the Credit Limit. 
  
 4.7 Returns.
Provided no Event of Default has occurred and is continuing, if any Account Debtor returns any Inventory to Borrower, Borrower shall promptly determine the reason for such return and promptly issue a credit memorandum to the Account Debtor in the
appropriate amount. In the event any attempted return occurs after the occurrence and during the continuance of any Event of Default, Borrower shall hold the returned Inventory in trust for Silicon, and immediately notify Silicon of the return of
the Inventory. 
  
 4.8 Verification. Silicon may,
from time to time, verify directly with the respective Account Debtors the validity, amount and other matters relating to the Accounts, by means of mail, telephone or otherwise, either in the name of Borrower or Silicon or such other name as Silicon
may choose. Such verifications shall be done in accordance with Silicon’s normal practice. 
  
 4.9 No Liability. Silicon shall not be responsible or liable for any shortage or discrepancy in, damage to, or loss or destruction of, any
goods, the sale or other disposition of which gives rise to an Account, or for any error, act, omission, or delay of any kind occurring in the settlement, failure to settle, collection or failure to collect any Account, or for settling any Account
in good faith for less than the full amount thereof, nor shall Silicon be deemed to be responsible for any of Borrower’s obligations under any contract or agreement giving rise to an Account. Nothing herein shall, however, relieve Silicon from
liability for its own gross negligence or willful misconduct. 
  
 5.
ADDITIONAL DUTIES OF BORROWER. 
  
 5.1 Financial and
Other Covenants. Borrower shall at all times comply with the financial and other covenants set forth in the Schedule. 
  
 5.2 Insurance. Borrower shall, at all times insure all of the tangible personal property Collateral and carry such other business insurance,
with insurers reasonably acceptable to Silicon, in such form and amounts as Silicon may reasonably require and that are customary and in accordance with standard practices for Borrower’s industry and locations, and Borrower shall provide
evidence of such insurance to Silicon. All such insurance policies shall name Silicon as an additional loss payee, and shall contain a lenders loss payee endorsement in form reasonably acceptable to Silicon. Upon receipt of the proceeds of any such
insurance, Silicon shall apply such proceeds in reduction of the Obligations as Silicon shall determine in its good faith business judgment, except that, provided no Default or Event of Default has occurred and is continuing, Silicon shall release
to Borrower insurance proceeds with respect to Equipment totaling less than $250,000, which shall be utilized by Borrower for the replacement of the Equipment with respect to which the insurance proceeds were paid. Silicon may require reasonable
assurance that the insurance proceeds so released will be so used. If Borrower fails to provide or pay for any insurance, Silicon may, but is not obligated to, obtain the same at Borrower’s expense. Borrower shall promptly deliver to Silicon
copies of all material reports made to insurance companies. 
  
 5.3 Reports. Borrower, at its expense, shall provide Silicon with the written reports set forth in the Schedule, and such other written reports with respect to Borrower (including budgets, sales projections, operating plans
and other financial documentation), as Silicon shall from time to time specify in its good faith business judgment. 
  

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 5.4 Access to Collateral, Books and Records. At reasonable times, and on one Business
Day’s notice, Silicon, or its agents, shall have the right to inspect the Collateral, and the right to audit and copy Borrower’s books and records. Silicon shall take reasonable steps to keep confidential all information obtained in any
such inspection or audit, but Silicon shall have the right to disclose any such information to its auditors, regulatory agencies, and attorneys, and pursuant to any subpoena or other legal process. The foregoing inspections and audits shall be at
Borrower’s expense and the charge therefor shall be $750 per person per day (or such higher amount as shall represent Silicon’s then current standard charge for the same), plus reasonable out-of-pocket expenses. The parties contemplate
that such audits will be performed no more frequently than once in any fiscal year of the Borrower while the Non-Asset Based Terms are in effect and no more frequently than three times in any fiscal year of the Borrower while the Asset Based Terms
are in effect, but nothing herein restricts Silicon’s right to conduct such audits more frequently if (i) Silicon believes that it is advisable to do so in Silicon’s good faith business judgment, or (ii) Silicon believes in good faith that
a Default or Event of Default has occurred and is continuing. In the event Borrower and Silicon schedule an audit more than 10 days in advance, and Borrower seeks to reschedule the audit with less than 5 days written notice to Silicon, then (without
limiting any of Silicon’s rights or remedies), Borrower shall pay Silicon a cancellation fee of $500 plus any out-of-pocket expenses incurred by Silicon, to compensate Silicon for the anticipated costs and expenses of the cancellation.

  
 5.5 Negative Covenants. Except as may be
permitted in the Schedule, Borrower shall not, without Silicon’s prior written consent (which shall be a matter of its good faith business judgment), do any of the following: 
  
 (i) merge or consolidate with another corporation or entity, unless, concurrently this Agreement is terminated and all
Obligations are paid and performed in full, which payment may be made without prepayment fee or penalty (but the Final Payment related to the Equipment Loans shall not be deemed a prepayment fee or penalty); 
  
 (ii) acquire any assets, except in the ordinary course of business;

  
 (iii) enter into any other transaction outside the ordinary
course of business, except that Borrower may do the following outside the ordinary course of business if it does not involve Borrower paying or transferring money or assets totaling more than $200,000 for all of the following in any fiscal year of
Borrower: acquisitions of assets outside the ordinary course of business, and joint ventures and strategic alliances; 
  
 (iv) sell or transfer any Collateral, except for the sale of finished Inventory in the ordinary course of Borrower’s business, the sale of obsolete
or unneeded Equipment in the ordinary course of business, and the non-exclusive licensing of Intellectual Property; 
  
 (v) store any Inventory or other Collateral with any warehouseman or other third party, except for (A) Inventory which, in the ordinary course of business
is located outside the United States, and (B) Inventory of not more than $300,000 in any one United States location; 
  
 (vi) sell any Inventory on a sale-or-return, guaranteed sale, consignment, or other contingent basis, in excess of $200,000 in any fiscal year of Borrower
(and any such sales shall not result in Eligible Accounts); 
  
 (vii) make any loans of any money or other assets in an amount in excess of a total of $250,000 at any time outstanding in addition to the amounts shown on Schedule 2; 
  
 (viii) create, incur, assume, or be liable for any Indebtedness, other than Permitted Indebtedness; 
  
 (ix) guarantee or otherwise become liable with respect to the obligations of
another party or entity, in an amount in excess of a total of $250,000 for all such guarantees at any time outstanding; 
  
 (x) pay or declare any dividends on Borrower’s stock (except for dividends payable solely in stock of Borrower); 
  
 (xi) redeem, retire, purchase or otherwise acquire, directly or indirectly,
any of Borrower’s stock, except that Borrower may repurchase stock from officers and employees leaving the Borrower for a total consideration for all such purchases of not more than $500,000 in any fiscal year, if at the time such purchase is
made, no Default or Event of Default has occurred and is continuing; 
  
 (xii) make any change in Borrower’s capital structure which would result in a Material Adverse Change; or 
  
 (xiii) engage, directly or indirectly, in any business other than the businesses currently engaged in by Borrower or reasonably related thereto;

  
 (xiv) dissolve or elect to dissolve, 
  
 (xv) make any Investment other than a Permitted Investment. 
  

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 Transactions permitted by the foregoing provisions of this Section are only permitted if no Default or Event of
Default would occur as a result of such transaction. 
  
 5.6
Litigation Cooperation. Should any third-party suit or proceeding be instituted by or against Silicon with respect to any Collateral or relating to Borrower, Borrower shall, without expense to Silicon, make available Borrower and its
officers, employees and agents and Borrower’s books and records, to the extent that Silicon may deem them reasonably necessary in order to prosecute or defend any such suit or proceeding. 
  
 5.7 Further Assurances. Borrower agrees, at its expense, on
request by Silicon, to execute all documents and take all actions, as Silicon, may, in its good faith business judgment, deem necessary or useful in order to perfect and maintain Silicon’s perfected first-priority security interest in the
Collateral (subject to Permitted Liens), and in order to fully consummate the transactions contemplated by this Agreement. 
  
 6. TERM OF REVOLVING LOAN FACILITY AND TERM OF AGREEMENT. 
  
 6.1 Term of Revolving Loan Facility. The period during which Revolving Loans (as defined in the Schedule) will be made (the “Revolving
Loan Period”) shall be from the date of this Agreement to the Revolving Loan Maturity Date set forth in the Schedule, unless sooner terminated in accordance with the terms of this Agreement. On and after the Revolving Loan Maturity Date or any
earlier termination of this Agreement, no further Revolving Loans will be made. On the Revolving Loan Maturity Date or on any earlier termination of this Agreement, Borrower shall pay in full all outstanding Revolving Loans and any accrued and
unpaid interest thereon. 
  
 6.2 Early Termination of
Revolving Loan Facility at Borrower’s Option. The Revolving Loan Period may be terminated prior to the Revolving Loan Maturity Date by Borrower, effective three business days after written notice of termination is given by Borrower to
Silicon. 
  
 6.3 Term of Agreement. The term of this
Agreement shall be from the date of this Agreement to the later of the following (the “Maturity Date”): (i) the termination of the Revolving Loan Period, or (ii) the date the last installment of principal on the Equipment Loans is due. On
the Maturity Date or on any earlier termination of this Agreement Borrower shall pay in full all Loans and all other outstanding Obligations, and notwithstanding any termination of this Agreement all of Silicon’s security interests and all of
Silicon’s other rights and remedies shall continue in full force and effect until payment and performance in full of all Obligations.  
  
 6.4 Early Termination of Agreement. This Agreement may be terminated prior to the Maturity Date as follows: (i) by Borrower, effective three
business days after written notice of termination is given to Silicon; or (ii) by Silicon at any time after the occurrence of an Event of Default, without notice, effective immediately. 
  
 6.5 Payment of Obligations. On the Maturity Date or on any earlier effective date of termination, Borrower
shall pay and perform in full all outstanding Loans and other Obligations, whether evidenced by installment notes or otherwise, and whether or not all or any part of such Obligations are otherwise then due and payable. Without limiting the
generality of the foregoing, if on the Maturity Date, or on any earlier effective date of termination, there are any outstanding Letters of Credit issued by Silicon or issued by another institution based upon an application, guarantee, indemnity or
similar agreement on the part of Silicon, then on such date Borrower shall provide to Silicon cash collateral in an amount equal to 105% of the face amount of all such Letters of Credit plus all interest, fees and cost due or to become due in
connection therewith (as estimated by Silicon in its good faith business judgment), to secure all of the Obligations relating to said Letters of Credit, pursuant to Silicon’s then standard form cash pledge agreement. Notwithstanding any
termination of this Agreement, all of Silicon’s security interests in all of the Collateral and all of the terms and provisions of this Agreement shall continue in full force and effect until all Obligations have been paid and performed in
full; provided that Silicon may, in its sole discretion, refuse to make any further Loans after termination. No termination shall in any way affect or impair any right or remedy of Silicon, nor shall any such termination relieve Borrower of any
Obligation to Silicon, until all of the Obligations have been paid and performed in full. Upon payment and performance in full of all the Obligations and termination of this Agreement, Silicon shall promptly terminate its financing statements with
respect to the Borrower and deliver to Borrower such other documents as may be required to fully terminate Silicon’s security interests. 
  
 7. EVENTS OF DEFAULT AND REMEDIES. 
  
 7.1 Events of Default. The occurrence of any of the following events shall constitute an “Event of Default” under this Agreement,
and Borrower shall give Silicon immediate written notice thereof: 
  
 (a) Any warranty, representation, statement, report or certificate made or delivered to Silicon by Borrower or any of Borrower’s officers, employees or agents, now or in the future, shall be untrue or misleading
in a material respect when made or deemed to be made; or 
  

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	Silicon Valley Bank	 	Loan and Security Agreement
	

  

 (b) Borrower shall fail to pay when due any Loan or any interest thereon or any other
monetary Obligation within five days after the date due, provided that said five-day cure period shall not apply during any period that the Asset Based Terms are in effect; or 
  
 (c) the total Loans and other Obligations outstanding at any time shall exceed the Credit Limit; or

  
 (d) Borrower shall fail to comply with any of
the financial covenants set forth in the Schedule, or shall fail to perform any other non-monetary Obligation which by its nature cannot be cured, or shall fail to permit Silicon to conduct an inspection or audit as specified in Section 5.4 hereof;
or 
  
 (e) Borrower shall fail to perform any
other non-monetary Obligation, which failure is not cured within five Business Days after the date due; or 
  
 (f) any levy, assessment, attachment, seizure, lien or encumbrance (other than a Permitted Lien) is made on all or any part of the
Collateral which is not fully bonded against or cured within 10 days after the occurrence of the same; or 
  
 (g) any default or event of default occurs under any obligation in excess of $100,000 secured by a Permitted Lien, which is not cured
within any applicable cure period or waived in writing by the holder of the Permitted Lien; or 
  
 (h) Borrower breaches any material contract or obligation, which has resulted or may reasonably be expected to result in a Material
Adverse Change; or 
  
 (i) Dissolution,
termination of existence, insolvency or business failure of Borrower; or appointment of a receiver, trustee or custodian, for all or any part of the property of, assignment for the benefit of creditors by, or the commencement of any proceeding by
Borrower under any reorganization, bankruptcy, insolvency, arrangement, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction, now or in the future in effect; or 
  
 (j) the commencement of any proceeding against Borrower or
any guarantor of any of the Obligations under any reorganization, bankruptcy, insolvency, arrangement, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction, now or in the future in effect, which is not cured by the
dismissal thereof within 45 days after the date commenced; or 
  
 (k) revocation or termination of, or limitation or denial of liability upon, any guaranty of the Obligations or any attempt to do any of the foregoing, or commencement of proceedings by any guarantor of any of the
Obligations under any bankruptcy or insolvency law; or 
  
 (l) revocation or termination of, or limitation or denial of liability upon, any pledge of any certificate of deposit, securities or other property or asset of any kind pledged by any third party to secure any or all of the Obligations, or
any attempt to do any of the foregoing, or commencement of proceedings by or against any such third party under any bankruptcy or insolvency law; or 
  
 (m) Borrower makes any payment on account of any indebtedness or obligation which has been subordinated to the Obligations other than as
permitted in the applicable subordination agreement, or if any Person who has subordinated such indebtedness or obligations terminates or in any way limits his subordination agreement; or 
  
 (n) there shall be a change in the record or beneficial
ownership of an aggregate of more than 45% of the outstanding shares of stock of Borrower, in one or more transactions, compared to the ownership of outstanding shares of stock of Borrower in effect on the date hereof, without the prior written
consent of Silicon (which shall not be unreasonably withheld); or 
  
 (o) Borrower shall generally not pay its debts as they become due, or Borrower shall conceal, remove or transfer any part of its property, with intent to hinder, delay or defraud its creditors, or make or suffer any
transfer of any of its property which may be fraudulent under any bankruptcy, fraudulent conveyance or similar law; or 
  
 (p) a Material Adverse Change shall occur. 
  
 Silicon may cease making any Loans hereunder during any of the above cure periods, and thereafter if an Event of Default has occurred and is continuing. 
  
 7.2 Remedies. Upon the occurrence and during the continuance of
any Event of Default, and at any time thereafter, Silicon, at its option, and without notice or demand of any kind (all of which are hereby expressly waived by Borrower), may do any one or more of the following: (a) Cease making Loans or otherwise
extending credit to Borrower under this Agreement or any other Loan Document; (b) Accelerate and declare all or any part of the Obligations to be immediately due, payable, and performable, notwithstanding any deferred or installment payments allowed
by any instrument evidencing or relating to any Obligation; (c) Take possession of any or all of the Collateral wherever it may be found, and for that 

  

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	Silicon Valley Bank	 	Loan and Security Agreement
	

  

 
purpose Borrower hereby authorizes Silicon without judicial process to enter onto any of Borrower’s premises without interference to search for, take
possession of, keep, store, or remove any of the Collateral, and remain on the premises or cause a custodian to remain on the premises in exclusive control thereof, without charge for so long as Silicon deems it necessary, in its good faith business
judgment, in order to complete the enforcement of its rights under this Agreement or any other agreement; provided, however, that should Silicon seek to take possession of any of the Collateral by court process, Borrower hereby irrevocably waives:
(i) any bond and any surety or security relating thereto required by any statute, court rule or otherwise as an incident to such possession; (ii) any demand for possession prior to the commencement of any suit or action to recover possession
thereof; and (iii) any requirement that Silicon retain possession of, and not dispose of, any such Collateral until after trial or final judgment; (d) Require Borrower to assemble any or all of the Collateral and make it available to Silicon at
places designated by Silicon which are reasonably convenient to Silicon and Borrower, and to remove the Collateral to such locations as Silicon may deem advisable; (e) Complete the processing, manufacturing or repair of any Collateral prior to a
disposition thereof and, for such purpose and for the purpose of removal, Silicon shall have the right to use Borrower’s premises, vehicles, hoists, lifts, cranes, and other Equipment and all other property without charge; (f) Sell, lease or
otherwise dispose of any of the Collateral, in its condition at the time Silicon obtains possession of it or after further manufacturing, processing or repair, at one or more public and/or private sales, in lots or in bulk, for cash, exchange or
other property, or on credit, and to adjourn any such sale from time to time without notice other than oral announcement at the time scheduled for sale. Silicon shall have the right to conduct such disposition on Borrower’s premises without
charge, for such time or times as Silicon deems reasonable, or on Silicon’s premises, or elsewhere and the Collateral need not be located at the place of disposition. Silicon may directly or through any affiliated company purchase or lease any
Collateral at any such public disposition, and if permissible under applicable law, at any private disposition. Any sale or other disposition of Collateral shall not relieve Borrower of any liability Borrower may have if any Collateral is defective
as to title or physical condition or otherwise at the time of sale; (g) Demand payment of, and collect any Accounts and General Intangibles comprising Collateral and, in connection therewith, Borrower irrevocably authorizes Silicon to endorse or
sign Borrower’s name on all collections, receipts, instruments and other documents, to take possession of and open mail addressed to Borrower and remove therefrom payments made with respect to any item of the Collateral or proceeds thereof,
and, in Silicon’s good faith business judgment, to grant extensions of time to pay, compromise claims and settle Accounts and the like for less than face value; (h) Offset against any sums in any of Borrower’s general, special or other
Deposit Accounts with Silicon against any or all of the Obligations. All reasonable attorneys’ fees, expenses, costs, liabilities and obligations incurred by Silicon with respect to the foregoing shall be added to and become part of the
Obligations, shall be due on demand, and shall bear interest at a rate equal to the highest interest rate applicable to any of the Obligations. Without limiting any of Silicon’s rights and remedies, from and after the occurrence and during the
continuance of any Event of Default, the interest rate applicable to the Obligations shall be increased by an additional four percent per annum (the “Default Rate”). 
  
 7.3 Standards for Determining Commercial Reasonableness. Borrower and Silicon agree that a sale or other
disposition (collectively, “sale”) of any Collateral which complies with the following standards will conclusively be deemed to be commercially reasonable: (i) Notice of the sale is given to Borrower at least ten days prior to the sale,
and, in the case of a public sale, notice of the sale is published at least five days before the sale in a newspaper of general circulation in the county where the sale is to be conducted; (ii) Notice of the sale describes the collateral in general,
non-specific terms; (iii) The sale is conducted at a place designated by Silicon, with or without the Collateral being present; (iv) The sale commences at any time between 8:00 a.m. and 6:00 p.m; (v) Payment of the purchase price in cash or by
cashier’s check or wire transfer is required; (vi) With respect to any sale of any of the Collateral, Silicon may (but is not obligated to) direct any prospective purchaser to ascertain directly from Borrower any and all information concerning
the same. Silicon shall be free to employ other methods of noticing and selling the Collateral, in its discretion, if they are commercially reasonable. 
  
 7.4 Power of Attorney. Upon the occurrence and during the continuance of any Event of Default, without limiting Silicon’s other rights
and remedies, Borrower grants to Silicon an irrevocable power of attorney coupled with an interest, authorizing and permitting Silicon (acting through any of its employees, attorneys or agents) at any time, at its option, but without obligation,
with or without notice to Borrower, and at Borrower’s expense, to do any or all of the following, in Borrower’s name or otherwise, but Silicon agrees that if it exercises any right hereunder, it will do so in good faith and in a
commercially reasonable manner: (a) Execute on behalf of Borrower any documents that Silicon may, in its good faith business judgment, deem advisable in order to perfect and maintain Silicon’s security interest in the Collateral, or in order to
exercise a right of Borrower or Silicon, or in order to fully consummate all the transactions contemplated under this Agreement, and all other Loan Documents; (b) Execute on behalf of Borrower, any invoices relating to any Account, any draft against
any Account Debtor and any notice to any Account Debtor, any proof of claim in bankruptcy, any Notice of Lien, claim of mechanic’s, materialman’s or other lien, or assignment or satisfaction of mechanic’s, materialman’s or other
lien; (c) Take control in any manner of any cash or non-cash items of payment or proceeds of Collateral; endorse the name of Borrower upon any instruments, or documents, evidence of payment or Collateral that may come into Silicon’s 

  

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	Silicon Valley Bank	 	Loan and Security Agreement
	

  

 
possession; (d) Endorse all checks and other forms of remittances received by Silicon; (e) Pay, contest or settle any lien, charge, encumbrance, security
interest and adverse claim in or to any of the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; (f) Grant extensions of time to pay, compromise claims and settle Accounts and General
Intangibles for less than face value and execute all releases and other documents in connection therewith; (g) Pay any sums required on account of Borrower’s taxes or to secure the release of any liens therefor, or both; (h) Settle and adjust,
and give releases of, any insurance claim that relates to any of the Collateral and obtain payment therefor; (i) Instruct any third party having custody or control of any books or records belonging to, or relating to, Borrower to give Silicon the
same rights of access and other rights with respect thereto as Silicon has under this Agreement; and (j) Take any action or pay any sum required of Borrower pursuant to this Agreement and any other Loan Documents. Any and all reasonable sums paid
and any and all reasonable costs, expenses, liabilities, obligations and attorneys’ fees incurred by Silicon with respect to the foregoing shall be added to and become part of the Obligations, shall be payable on demand, and shall bear interest
at a rate equal to the highest interest rate applicable to any of the Obligations. In no event shall Silicon’s rights under the foregoing power of attorney or any of Silicon’s other rights under this Agreement be deemed to indicate that
Silicon is in control of the business, management or properties of Borrower. 
  
 7.5 Application of Proceeds. All proceeds realized as the result of any sale of the Collateral shall be applied by Silicon first to the reasonable costs, expenses, liabilities, obligations and
attorneys’ fees incurred by Silicon in the exercise of its rights under this Agreement, second to the interest due upon any of the Obligations, and third to the principal of the Obligations, in such order as Silicon shall determine in its sole
discretion. Any surplus shall be paid to Borrower or other persons legally entitled thereto; Borrower shall remain liable to Silicon for any deficiency. If, Silicon, in its good faith business judgment, directly or indirectly enters into a deferred
payment or other credit transaction with any purchaser at any sale of Collateral, Silicon shall have the option, exercisable at any time, in its good faith business judgment, of either reducing the Obligations by the principal amount of purchase
price or deferring the reduction of the Obligations until the actual receipt by Silicon of the cash therefor. 
  
 7.6 Remedies Cumulative. In addition to the rights and remedies set forth in this Agreement, Silicon shall have all the other rights and
remedies accorded a secured party under the California Uniform Commercial Code and under all other applicable laws, and under any other instrument or agreement now or in the future entered into between Silicon and Borrower, and all of such rights
and remedies are cumulative and none is exclusive. Exercise or partial exercise by Silicon of one or more of its rights or remedies shall not be deemed an election, nor bar Silicon from subsequent exercise or partial exercise of any other rights or
remedies. The failure or delay of Silicon to exercise any rights or remedies shall not operate as a waiver thereof, but all rights and remedies shall continue in full force and effect until all of the Obligations have been fully paid and performed.

  
 8. DEFINITIONS. As used in this Agreement, the following terms
have the following meanings: 
  
 “Account Debtor”
means the obligor on an Account. 
  
 “Accounts”
means all present and future “accounts” as defined in the California Uniform Commercial Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all accounts receivable
and other sums owing to Borrower. 
  
 “Affiliate”
means, with respect to any Person, a relative, partner, shareholder, director, officer, or employee of such Person, or any parent or subsidiary of such Person, or any Person controlling, controlled by or under common control with such Person.

  
 “Business Day” means a day on which Silicon
is open for business. 
  
 “Code” means the
Uniform Commercial Code as adopted and in effect in the State of California from time to time. 
  
 “Collateral” has the meaning set forth in Section 2 above. 
  
 “Contingent Obligation” is, for any Person, any direct or indirect liability, contingent or not, of that Person for (i) any indebtedness,
lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed, endorsed, co made, discounted or sold with recourse by that Person, or for which that Person is directly or indirectly liable;
(ii) any obligations for undrawn letters of credit for the account of that Person; and (iii) all obligations from any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement
designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent Obligation” does not include endorsements in the ordinary course of business. The amount of a Contingent
Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably anticipated liability for it determined by the Person in good faith; but the amount
may not exceed the maximum of the obligations under the guarantee or other support arrangement. 
  

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	Silicon Valley Bank	 	Loan and Security Agreement
	

  

 “continuing” and “during the continuance of” when used with
reference to a Default or Event of Default means that the Default or Event of Default has occurred and has not been either waived in writing by Silicon or cured within any applicable cure period. 
  
 “Default” means any event which with notice or passage of
time or both, would constitute an Event of Default. 
  
 “Default Rate” has the meaning set forth in Section 7.2 above. 
  
 “Deposit Accounts” means all present and future “deposit accounts” as defined in the California Uniform Commercial Code in effect on the date hereof with such additions to such term as may
hereafter be made, and includes without limitation all general and special bank accounts, demand accounts, checking accounts, savings accounts and certificates of deposit. 
  
 “Eligible Accounts” means Accounts and General Intangibles arising in the ordinary course of
Borrower’s business from the sale of goods or the rendition of services, or the non-exclusive licensing of Intellectual Property, which Silicon, in its good faith business judgment, shall deem eligible for borrowing. Without limiting the fact
that the determination of which Accounts are eligible for borrowing is a matter of Silicon’s good faith business judgment, the following (the “Minimum Eligibility Requirements”) are the minimum requirements for a Account to be
an Eligible Account: (i) the Account must not be outstanding for more than 90 days from its invoice date (the “Eligibility Period”), (ii) the Account must not represent progress billings, or credit balances, or be due under a
fulfillment or requirements contract with the Account Debtor, (iii) the Account must not be subject to any contingencies (including Accounts arising from sales on consignment, guaranteed sale or other terms pursuant to which payment by the Account
Debtor may be conditional), (iv) the Account must not be owing from an Account Debtor with whom Borrower has any dispute (whether or not relating to the particular Account), (v) the Account must not be owing from an Affiliate of Borrower, (vi) the
Account must not be owing from an Account Debtor which is subject to any insolvency or bankruptcy proceeding, or whose financial condition is not acceptable to Silicon, or which, fails or goes out of a material portion of its business, (vii) the
Account must not be owing from the United States or any department, agency or instrumentality thereof (unless there has been compliance, to Silicon’s satisfaction, with the United States Assignment of Claims Act), (viii) the Account must not be
owing from an Account Debtor located outside the United States or Canada, except for (A) Accounts owing from D-Link, Intel and Sony which do not total more than 50% of total Eligible Accounts, and (B) Accounts pre-approved by Silicon in its
discretion in writing, which Silicon will consider on a case by case basis, and (C) Accounts backed by a letter of credit satisfactory to Silicon and advised through Silicon, or FCIA insured satisfactory to Silicon and naming Silicon as
beneficiary), (ix) the Account must not be owing from an Account Debtor to whom Borrower is or may be liable for goods purchased from such Account Debtor or otherwise (but, in such case, the Account will be deemed not eligible only to the extent of
any amounts owed by Borrower to such Account Debtor), (x) while the Asset-Based Terms are in effect, the Account will not be deemed Eligible to the extent of any deferred revenue which represents a potential offset to the Account. Accounts owing
from one Account Debtor will not be deemed Eligible Accounts to the extent they exceed 25% of the total Accounts outstanding, provided that in the case of Accounts owing from D-Link (and other Account Debtors approved for a higher percentage by
Silicon, in writing, on a case by case basis in its good faith business judgment) said percentage shall be 35%. In addition, if more than 50% of the Accounts owing from an Account Debtor are outstanding for a period longer than their Eligibility
Period (without regard to unapplied credits) or are otherwise not eligible Accounts, then all Accounts owing from that Account Debtor will be deemed ineligible for borrowing. Silicon may, from time to time, in its good faith business judgment,
revise the Minimum Eligibility Requirements, upon written notice to Borrower. 
  
 “Equipment” means all present and future “equipment” as defined in the California Uniform Commercial Code in effect on the date hereof with such additions to such term as may hereafter be
made, and includes without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing. 
  
 “Event of Default” means any of the events set forth in Section 7.1 of this Agreement. 
  
 “GAAP” means generally accepted accounting principles
consistently applied. 
  
 “General Intangibles”
means all present and future “general intangibles” as defined in the California Uniform Commercial Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all
Intellectual Property, payment intangibles, royalties, contract rights, goodwill, franchise agreements, purchase orders, customer lists, route lists, telephone numbers, domain names, claims, income tax refunds, security and other deposits, options
to purchase or sell real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and business interruption
insurance), payments of insurance and rights to payment of any kind. 
  
 “good faith business judgment” means honesty in fact and good faith (as defined in Section 1201 of the Code) in the exercise of Silicon’s business judgment. 
  

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	Silicon Valley Bank	 	Loan and Security Agreement
	

  

 “including” means including (but not limited to). 
  
 “Indebtedness” is (a) indebtedness for borrowed money or the
deferred price of property or services, such as reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations and (d)
Contingent Obligations. 
  
 “Intellectual
Property” means all present and future (a) copyrights, copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work thereof, whether published or unpublished, (b)
trade secret rights, including all rights to unpatented inventions and know-how, and confidential information; (c) mask work or similar rights available for the protection of semiconductor chips; (d) patents, patent applications and like protections
including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same; (e) trademarks, servicemarks, trade styles, and trade names, whether or not any of the foregoing are
registered, and all applications to register and registrations of the same and like protections, and the entire goodwill of the business of Borrower connected with and symbolized by any such trademarks; (f) computer software and computer software
products; (g) designs and design rights; (h) technology; (i) all claims for damages by way of past, present and future infringement of any of the rights included above; (j) all licenses or other rights to use any property or rights of a type
described above. 
  
 “Inventory” means all
present and future “inventory” as defined in the California Uniform Commercial Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all merchandise, raw materials,
parts, supplies, packing and shipping materials, work in process and finished products, including without limitation such inventory as is temporarily out of Borrower’s custody or possession or in transit and including any returned goods and any
documents of title representing any of the above. 
  
 “Investment” is any beneficial ownership of (including stock, partnership interest or other securities) any Person, or any loan, advance or capital contribution to any Person. 
  
 “Investment Property” means all present and future
investment property, securities, stocks, bonds, debentures, debt securities, partnership interests, limited liability company interests, options, security entitlements, securities accounts, commodity contracts, commodity accounts, and all financial
assets held in any securities account or otherwise, and all options and warrants to purchase any of the foregoing, wherever located, and all other securities of every kind, whether certificated or uncertificated. 
  
 “Loan Documents” means, collectively, this Agreement, the
Representations, and all other present and future documents, instruments and agreements between Silicon and Borrower, including, but not limited to those relating to this Agreement, and all amendments and modifications thereto and replacements
therefor. 
  
 “Material Adverse Change” means any
of the following: (i) a material adverse change in the business, operations, or financial or other condition of the Borrower, or (ii) a material impairment of the prospect of repayment of any portion of the Obligations; or (iii) a material
impairment of the value or priority of Silicon’s security interests in the Collateral. 
  
 “Obligations” means all present and future Loans, advances, debts, liabilities, obligations, guaranties, covenants, duties and indebtedness at any time owing by Borrower to Silicon, whether evidenced
by this Agreement or any note or other instrument or document, or otherwise, whether arising from an extension of credit, opening of a letter of credit, banker’s acceptance, loan, guaranty, indemnification or otherwise, whether direct or
indirect (including, without limitation, those acquired by assignment and any participation by Silicon in Borrower’s debts owing to others), absolute or contingent, due or to become due, including, without limitation, all interest, charges,
expenses, fees, attorney’s fees, expert witness fees, audit fees, letter of credit fees, collateral monitoring fees, closing fees, facility fees, minimum interest charges and any other sums chargeable to Borrower under this Agreement or under
any other Loan Documents. 
  
 “Other Property”
means the following as defined in the California Uniform Commercial Code in effect on the date hereof with such additions to such term as may hereafter be made, and all rights relating thereto: all present and future “commercial tort
claims” (including without limitation any commercial tort claims identified in the Representations), “documents”, “instruments”, “promissory notes”, “chattel paper”, “letters of credit”,
“letter-of-credit rights”, “fixtures”, “farm products” and “money”; and all other goods and personal property of every kind, tangible and intangible, whether or not governed by the California Uniform
Commercial Code. 
  
 “Permitted Indebtedness” is:
(a) Borrower’s indebtedness to Silicon under this Agreement or any other Loan Document; (b) Indebtedness existing on the Closing Date and shown on Schedule 2; (c) Subordinated Debt; (d) Indebtedness to trade creditors incurred in the ordinary
course of business; (e) Indebtedness secured by Permitted Liens, (f) indebtedness to employees for expense advances and other indebtedness to employees in the ordinary course of business, and (g) taxes not yet due. 
  

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	Silicon Valley Bank	 	Loan and Security Agreement
	

  

 “Permitted Investments” are: (a) Investments shown on Schedule 2 and existing on the
Closing Date; and (b) (i) marketable direct obligations issued or unconditionally guaranteed by the United States or its agency or any State maturing within 1 year from its acquisition, (ii) commercial paper maturing no more than 1 year after its
creation and having the highest rating from either Standard & Poor’s Corporation or Moody’s Investors Service, Inc., and (iii) Silicon’s certificates of deposit issued maturing no more than 1 year after issue, (iv) Investments
made in marketable securities in accordance with the Borrower’s written investment policy in effect from time to time, which has been approved by the Board of Directors of Borrower, (v) Investments in wholly-owned subsidiaries of Borrower, in
an amount not to exceed $300,000 total for all subsidiaries, in any fiscal year of Borrower. 
  
 “Permitted Liens” means the following: (i) purchase money security interests in specific items of Equipment; (ii) leases of specific items of Equipment; (iii) liens for taxes not yet payable; (iv)
additional security interests and liens consented to in writing by Silicon, which consent may be withheld in its good faith business judgment; (v) security interests being terminated substantially concurrently with this Agreement; (vi) liens of
materialmen, mechanics, warehousemen, carriers, or other similar liens arising in the ordinary course of business and securing obligations which are not delinquent; (vii) liens incurred in connection with the extension, renewal or refinancing of the
indebtedness secured by liens of the type described above in clauses (i) or (ii) above, provided that any extension, renewal or replacement lien is limited to the property encumbered by the existing lien and the principal amount of the indebtedness
being extended, renewed or refinanced does not increase; (viii) Liens in favor of customs and revenue authorities which secure payment of customs duties in connection with the importation of goods; (ix) banker’s liens, rights of setoff and
similar liens; (x) deposits for workers compensation insurance, leases, utilities and the like; (xi) liens shown on Schedule 2 hereto and existing at the date hereof. Silicon will have the right to require, as a condition to its consent under
subparagraph (iv) above, that the holder of the additional security interest or lien sign an intercreditor agreement on Silicon’s then standard form, acknowledge that the security interest is subordinate to the security interest in favor of
Silicon, and agree not to take any action to enforce its subordinate security interest so long as any Obligations remain outstanding, and that Borrower agree that any uncured default in any obligation secured by the subordinate security interest
shall also constitute an Event of Default under this Agreement. 
  
 “Person” means any individual, sole proprietorship, partnership, joint venture, trust, unincorporated organization, association, corporation, government, or any agency or political division thereof, or any other entity.

  
 “Representations” means the written
Representations and Warranties provided by Borrower to Silicon referred to in the Schedule. 
  
 “Reserves” means, as of any date of determination, such amounts as Silicon may from time to time establish and revise in its good faith business judgment, reducing the amount of Loans, Letters of
Credit and other financial accommodations which would otherwise be available to Borrower under the lending formula(s) provided in the Schedule: (a) to reflect events, conditions, contingencies or risks which, as determined by Silicon in its good
faith business judgment, do or may adversely affect (i) the Collateral or any other property which is security for the Obligations or its value (including without limitation any increase in delinquencies of Accounts), (ii) the assets, business or
prospects of Borrower or any Guarantor, or (iii) the security interests and other rights of Silicon in the Collateral (including the enforceability, perfection and priority thereof); or (b) to reflect Silicon’s good faith belief that any
collateral report or financial information furnished by or on behalf of Borrower or any Guarantor to Silicon is or may have been incomplete, inaccurate or misleading in any material respect; or (c) in respect of any state of facts which Silicon
determines in good faith constitutes an Event of Default or may, with notice or passage of time or both, constitute an Event of Default. 
  
 Other Terms. All accounting terms used in this Agreement, unless otherwise indicated, shall have the meanings given to such terms in accordance
with GAAP, consistently applied. All other terms contained in this Agreement, unless otherwise indicated, shall have the meanings provided by the Code, to the extent such terms are defined therein. 
  
 9. GENERAL PROVISIONS. 
  
 9.1 Interest Computation. In computing interest on the
Obligations, all checks, wire transfers and other items of payment received by Silicon (including proceeds of Accounts and payment of the Obligations in full) shall be deemed applied by Silicon on account of the Obligations on the Business Day after
receipt by Silicon of immediately available funds, but, for purposes of the foregoing, any such funds received after 12:00 Noon on any day shall be deemed received on the next Business Day, and any funds received while the Asset Based Terms are in
effect shall be deemed applied by Silicon on account of the Obligations two Business Days after receipt by Silicon of immediately available funds. Silicon shall not, however, be required to credit Borrower’s account for the amount of any item
of payment which is unsatisfactory to Silicon in its good faith business judgment, and Silicon may charge Borrower’s loan account for the amount of any item of payment which is returned to Silicon unpaid. 
  

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	Silicon Valley Bank	 	Loan and Security Agreement
	

  

 9.2 Application of Payments. All payments with respect to the Obligations may be
applied, and in Silicon’s good faith business judgment reversed and re-applied, to the Obligations, in such order and manner as Silicon shall determine in its good faith business judgment. 
  
 9.3 Charges to Accounts. Silicon may, in its discretion,
require that Borrower pay monetary Obligations in cash to Silicon, or charge them to Borrower’s Loan account, in which event they will bear interest at the same rate applicable to the Loans. Silicon may also, in its discretion, charge any
monetary Obligations to Borrower’s Deposit Accounts maintained with Silicon. Silicon shall use commercially reasonable efforts to give Borrower notice of any such charge, but Silicon shall have no liability for any inadvertent failure to do so.

  
 9.4 Monthly Accountings. Silicon shall provide
Borrower monthly with an account of advances, charges, expenses and payments made pursuant to this Agreement. Absent manifest error, such account shall be deemed correct, accurate and binding on Borrower and an account stated (except for reverses
and reapplications of payments made and corrections of errors discovered by Silicon), unless Borrower notifies Silicon in writing to the contrary within 60 days after such account is rendered, describing the nature of any alleged errors or
omissions. 
  
 9.5 Notices. All notices to be given
under this Agreement shall be in writing and shall be given either personally or by reputable private delivery service or by regular first-class mail, or certified mail return receipt requested, addressed to Silicon or Borrower at the addresses
shown in the heading to this Agreement, or at any other address designated in writing by one party to the other party. Notices to Silicon shall be directed to the Commercial Finance Division, to the attention of the Division Manager or the Division
Credit Manager. Notices to Borrower shall be directed to the attention of the Vice President of Administration and Controller of Borrower. All notices shall be deemed to have been given upon delivery in the case of notices personally delivered, or
at the expiration of one Business Day following delivery to the private delivery service, or two Business Days following the deposit thereof in the United States mail, with postage prepaid. 
  
 9.6 Severability. Should any provision of this Agreement be
held by any court of competent jurisdiction to be void or unenforceable, such defect shall not affect the remainder of this Agreement, which shall continue in full force and effect. 
  
 9.7 Integration. This Agreement and such other written agreements, documents and instruments as may be
executed in connection herewith are the final, entire and complete agreement between Borrower and Silicon and supersede all prior and contemporaneous negotiations and oral representations and agreements, all of which are merged and integrated in
this Agreement. There are no oral understandings, representations or agreements between the parties which are not set forth in this Agreement or in other written agreements signed by the parties in connection herewith. 
  
 9.8 Waivers; Indemnity. The failure of Silicon at any time or
times to require Borrower to strictly comply with any of the provisions of this Agreement or any other Loan Document shall not waive or diminish any right of Silicon later to demand and receive strict compliance therewith. Any waiver of any default
shall not waive or affect any other default, whether prior or subsequent, and whether or not similar. None of the provisions of this Agreement or any other Loan Document shall be deemed to have been waived by any act or knowledge of Silicon or its
agents or employees, but only by a specific written waiver signed by an authorized officer of Silicon and delivered to Borrower. Borrower waives the benefit of all statutes of limitations relating to any of the Obligations or this Agreement or any
other Loan Document, and Borrower waives demand, protest, notice of protest and notice of default or dishonor, notice of payment and nonpayment, release, compromise, settlement, extension or renewal of any commercial paper, instrument, account,
General Intangible, document or guaranty at any time held by Silicon on which Borrower is or may in any way be liable, and notice of any action taken by Silicon, unless expressly required by this Agreement. Borrower hereby agrees to indemnify
Silicon and its affiliates, subsidiaries, parent, directors, officers, employees, agents, and attorneys, and to hold them harmless from and against any and all claims, debts, liabilities, demands, obligations, actions, causes of action, penalties,
costs and expenses (including reasonable attorneys’ fees), of every kind, which they may sustain or incur based upon or arising out of any of the Obligations, or any relationship or agreement between Silicon and Borrower, or any other matter,
relating to Borrower or the Obligations; provided that this indemnity shall not extend to damages proximately caused by the indemnitee’s own gross negligence or willful misconduct. Notwithstanding any provision in this Agreement to the
contrary, the indemnity agreement set forth in this Section shall survive any termination of this Agreement and shall for all purposes continue in full force and effect. 
  
 9.9 No Liability for Ordinary Negligence. Neither Silicon, nor any of its directors, officers, employees,
agents, attorneys or any other Person affiliated with or representing Silicon shall be liable for any claims, demands, losses or damages, of any kind whatsoever, made, claimed, incurred or suffered by Borrower or any other party through the ordinary
negligence of Silicon, or any of its directors, officers, employees, agents, attorneys or any other Person affiliated with or representing Silicon, but nothing herein shall relieve Silicon from liability for its own gross negligence or willful
misconduct. 
  

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	Silicon Valley Bank	 	Loan and Security Agreement
	

  

 9.10 Amendment. The terms and provisions of this Agreement may not be waived or
amended, except in a writing executed by Borrower and a duly authorized officer of Silicon. 
  
 9.11 Time of Essence. Time is of the essence in the performance by Borrower of each and every obligation under this Agreement. 
  
 9.12 Attorneys Fees and Costs. Borrower shall reimburse Silicon for all reasonable attorneys’ fees and
all filing, recording, search, title insurance, appraisal, audit, and other reasonable costs incurred by Silicon, pursuant to, or in connection with, or relating to this Agreement (whether or not a lawsuit is filed), including, but not limited to,
any reasonable attorneys’ fees and costs Silicon incurs in order to do the following: prepare and negotiate this Agreement and all present and future documents relating to this Agreement; obtain legal advice in connection with this Agreement or
Borrower; enforce, or seek to enforce, any of its rights; prosecute actions against, or defend actions by, Account Debtors; commence, intervene in, or defend any action or proceeding; initiate any complaint to be relieved of the automatic stay in
bankruptcy; file or prosecute any probate claim, bankruptcy claim, third-party claim, or other claim; examine, audit, copy, and inspect any of the Collateral or any of Borrower’s books and records; protect, obtain possession of, lease, dispose
of, or otherwise enforce Silicon’s security interest in, the Collateral; and otherwise represent Silicon in any litigation relating to Borrower. In satisfying Borrower’s obligation hereunder to reimburse Silicon for attorneys fees,
Borrower may, for convenience, issue checks directly to Silicon’s attorneys, Levy, Small & Lallas, but Borrower acknowledges and agrees that Levy, Small & Lallas is representing only Silicon and not Borrower in connection with this
Agreement. If either Silicon or Borrower files any lawsuit against the other predicated on a breach of this Agreement, the prevailing party in such action shall be entitled to recover its reasonable costs and attorneys’ fees, including (but not
limited to) reasonable attorneys’ fees and costs incurred in the enforcement of, execution upon or defense of any order, decree, award or judgment. All attorneys’ fees and costs to which Silicon may be entitled pursuant to this Paragraph
shall immediately become part of Borrower’s Obligations, shall be due on demand, and shall bear interest at a rate equal to the highest interest rate applicable to any of the Obligations. 
  
 9.13 Benefit of Agreement. The provisions of this Agreement
shall be binding upon and inure to the benefit of the respective successors, assigns, heirs, beneficiaries and representatives of Borrower and Silicon; provided, however, that Borrower may not assign or transfer any of its rights under this
Agreement without the prior written consent of Silicon, and any prohibited assignment shall be void. No consent by Silicon to any assignment shall release Borrower from its liability for the Obligations. 
  
 9.14 Joint and Several Liability. If Borrower consists of more
than one Person, their liability shall be joint and several, and the compromise of any claim with, or the release of, any Borrower shall not constitute a compromise with, or a release of, any other Borrower. 
  
 9.15 Limitation of Actions. Any claim or cause of action
by Borrower against Silicon, its directors, officers, employees, agents, accountants or attorneys, based upon, arising from, or relating to this Loan Agreement, or any other Loan Document, or any other transaction contemplated hereby or thereby or
relating hereto or thereto, or any other matter, cause or thing whatsoever, occurred, done, omitted or suffered to be done by Silicon, its directors, officers, employees, agents, accountants or attorneys, shall be barred unless asserted by Borrower
by the commencement of an action or proceeding in a court of competent jurisdiction by the filing of a complaint within two year after the first act, occurrence or omission upon which such claim or cause of action, or any part thereof, is based, and
the service of a summons and complaint on an officer of Silicon, or on any other person authorized to accept service on behalf of Silicon, within thirty (30) days thereafter. Borrower agrees that such two-year period is a reasonable and sufficient
time for Borrower to investigate and act upon any such claim or cause of action. The two-year period provided herein shall not be waived, tolled, or extended except by the written consent of Silicon in its sole discretion. This provision shall
survive any termination of this Loan Agreement or any other Loan Document. 
  
 9.16 Paragraph Headings; Construction. Paragraph headings are only used in this Agreement for convenience. Borrower and Silicon acknowledge that the headings may not describe completely the subject
matter of the applicable paragraph, and the headings shall not be used in any manner to construe, limit, define or interpret any term or provision of this Agreement. This Agreement has been fully reviewed and negotiated between the parties and no
uncertainty or ambiguity in any term or provision of this Agreement shall be construed strictly against Silicon or Borrower under any rule of construction or otherwise. 
  
 9.17 Governing Law; Jurisdiction; Venue. This Agreement and all acts and transactions hereunder and all rights
and obligations of Silicon and Borrower shall be governed by the laws of the State of California. As a material part of the consideration to Silicon to enter into this Agreement, Borrower (i) agrees that all actions and proceedings relating directly
or indirectly to this Agreement shall, at Silicon’s option, be litigated in courts located within California, and that the exclusive venue therefor shall be Santa Clara County; (ii) consents to the jurisdiction and venue of any such court and

  

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	Silicon Valley Bank	 	Loan and Security Agreement
	

  

 
consents to service of process in any such action or proceeding by personal delivery or any other method permitted by law; and (iii) waives any and all
rights Borrower may have to object to the jurisdiction of any such court, or to transfer or change the venue of any such action or proceeding. 
  
 9.18 Mutual Waiver of Jury Trial. BORROWER AND SILICON EACH HEREBY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING
BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO, THIS AGREEMENT OR ANY OTHER PRESENT OR FUTURE INSTRUMENT OR AGREEMENT BETWEEN SILICON AND BORROWER, OR ANY CONDUCT, ACTS OR OMISSIONS OF SILICON OR BORROWER OR ANY OF THEIR DIRECTORS, OFFICERS,
EMPLOYEES, AGENTS, ATTORNEYS OR ANY OTHER PERSONS AFFILIATED WITH SILICON OR BORROWER, IN ALL OF THE FOREGOING CASES, WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE. 
  

	Borrower:	 	 	 	Silicon:
			
	 ATHEROS COMMUNICATIONS, INC.
	 	 	 	SILICON VALLEY BANK
					
	By	 	/s/ Craig Barratt      	 	 	 	By	 	/s/ Teresa Li      
	 	
	 	 	 	 	

	 	 	President or Vice President	 	 	 	Title	 	VP & Relationship Manager
	 	 	 	 	 	 	 	

  

	 	 	 	 	 
					
	By	 	 	 	 	 	 	 	 
	 	
	 	 	 	 	 	 
	 	 	Secretary or Ass’t Secretary	 	 	 	 	 	 

  

 -16- 

 Silicon Valley Bank 
  
 Schedule to 
  
 Loan and Security Agreement 
  
 Borrower: Atheros Communications, Inc. 
 Address:    529 Almanor Avenue 
                     Sunnyvale, California 94085 
  
 Date:          March
        , 2003 
  
 This
Schedule forms an integral part of the Loan and Security Agreement between Silicon Valley Bank and the above-borrower of even date. 
  

  

	1. CREDIT LIMIT	  	 
	    (Section 1.1):	  	 (a)     Revolving Loans. Loans (the “Revolving Loans”) consisting of Non-Formula
Loans or Accounts Loans, as defined below, but Borrower may not have both Non-Formula Loans and Accounts Loans outstanding at the same time.

		
	 	  	 (1)     Non-Formula Loans. Loans (the “Non-Formula Loans”) in a total principal
amount at any time outstanding not to exceed $2,000,000.

		
	 	  	 If, as of the end of any month, Borrower fails to meet the Quick Ratio Test (as defined below in subsection (3)), then Borrower shall repay in full
all outstanding Non-Formula Loans, and thereafter Borrower may not borrow or have outstanding any Non-Formula Loans. Subject to the other terms and conditions hereof, Borrower may repay the Non-Formula Loans with the proceeds of available Account
Loans.

		
	 	  	 (2)     Accounts Loans. Loans (the “Accounts Loans”) in an amount not to exceed the
lesser of:

		
	 	  	 (A)    $8,000,000 (the “Maximum Revolving Line”) at any one time outstanding;
or

		
	 	  	 (B)     80% (the “Advance Rate”) of the amount of Borrower’s Eligible Accounts
(as defined in Section 8 above).

  

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	Silicon Valley Bank	 	Schedule to Loan and Security Agreement
	

  

	 	 	 Silicon may, from time to time, modify the Advance Rate, in its good faith business judgment, upon notice to the Borrower, based on changes in
collection experience with respect to Accounts or other issues or factors relating to the Accounts or other Collateral.

		
	 	 	 (3)     Quick Ratio Test. As used in this Agreement, “Quick Ratio Test” means that
Borrower’s Adjusted Quick Ratio as of the end of every month during the term of this Agreement shall be not less than 1.10 to 1.00. As used in this Agreement, “Adjusted Quick Ratio” means the ratio of (i) the total of Borrower’s
unrestricted cash and cash equivalents and Borrower’s Accounts, to (ii) an amount equal to Borrower’s current liabilities plus the amount of all outstanding, non-cash secured Letters of Credit, minus Borrower’s deferred
revenue.

		
	 	 	 (4)     Reserve for Equipment Loans. Without limiting any of the other provisions of this
Agreement relating to Reserves, in the event the Borrower fails to meet the Quick Ratio Test as of the end of any month, then, at all times thereafter, there shall be reserved, from Revolving Loans otherwise available to Borrower, an amount equal to
the unpaid principal balance of the Equipment Loans (as defined below) from time to time outstanding, and if, for any reason, there are not sufficient Revolving Loans otherwise available to Borrower for such reserve, Borrower shall repay the
outstanding Revolving Loans in an amount sufficient so that there can be reserved from Revolving Loans otherwise available to Borrower an amount equal to the unpaid principal balance of the Equipment Loans. If for any reason, even after paying in
full all outstanding Revolving Loans, there are not sufficient Revolving Loans otherwise available to Borrower to reserve therefrom an amount equal to the unpaid principal balance of the Equipment Loans, then Borrower shall provide cash collateral
to Silicon in an amount equal to the unpaid principal balance of the Equipment Loans from time to time outstanding.

  

 -2- 

	Silicon Valley Bank	 	Schedule to Loan and Security Agreement
	

  

	 	 	 (b)     Equipment Loans. Loans (the “Equipment Loans”) in a total amount not to
exceed the lesser of (i) a total of $2,000,000 or (ii) 100% of the net purchase price of new or used Equipment purchased by Borrower and acceptable to Silicon in its good faith business judgment and in which Silicon has a
first-priority perfected security interest. Equipment Loans shall be subject to the following terms:

		
	 	 	 (1)     The “net purchase price” of Equipment means the purchase price thereof, as shown on
the applicable invoice, net of all charges for taxes, freight, delivery, insurance, set-up, training, manuals, fees, service charges and other similar items (subject to subsection (4) below)

		
	 	 	 (2)     Equipment Loans shall be made in disbursements of not less than $200,000 each. No more
than nine disbursements of Equipment Loans will be made.

		
	 	 	 (3)     The initial disbursement of Equipment Loans may be based on Equipment purchased by Borrower on
or after October 1, 2002. Other disbursements of Equipment Loans shall be based on Equipment purchased by Borrower within 90 days prior to the date of disbursement of the Equipment Loan.

		
	 	 	 (4)     A maximum of 30% of each Equipment Loan may be used for the purchase of transferable software
licenses, leasehold improvements and other soft costs, including sales tax, freight and installation expenses.

		
	 	 	 (5)     Following December 31, 2003, no further Equipment Loans shall be made.

		
	 	 	 (6)     Each Equipment Loan shall be repaid by the Borrower to Silicon in 36 equal monthly payments of
principal, commencing on the first day of the first month following the date the Equipment Loan is disbursed and continuing until the earlier of the following dates (the “Equipment Loan Maturity Date”): (i) the date the Equipment Loans
have been paid in full or (ii) the date this Agreement terminates by its terms or is terminated, as provided in this Agreement. On the Equipment Loan Maturity Date, the entire unpaid principal balance of the Equipment Loans, plus all accrued and
unpaid interest thereon, shall be due and payable. Equipment Loans may not be repaid and reborrowed.

		
	 	 	 (7)     On each Equipment Loan Maturity Date, Borrower shall pay Silicon, in addition to all other
payments and all fees and charges a final payment equal to 3.5% of the total original principal amount of each Equipment Loan made hereunder (the “Final Payment”). Said payment shall be fully earned on the date of each Equipment
Loan.

  

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	Silicon Valley Bank	 	Schedule to Loan and Security Agreement
	

  

	 	  	(c) Loans. “Loans” as used herein shall include all Non-Formula Loans, all Accounts Loans and all Equipment Loans.
		
	Sublimits—Overall Limit	  	The total of the Letter of Credit Sublimit, the Foreign Exchange Contract Sublimit and the Cash Management Sublimit (collectively, the “Sublimits”) shall not exceed the
total Revolving Loans available to Borrower hereunder (the “Overall Sublimit”).
		
	 Letter of Credit Sublimit
 (Section
1.6):
	  	The Overall Sublimit.
		
	Cash Management Services and Reserves; Cash Management Sublimit:	  	The Overall Sublimit.
		
	 	  	Borrower may use Accounts Loans available hereunder, up to the Cash Management Sublimit above for Silicon’s Cash Management Services (as defined below), including, merchant
services, business credit card, ACH and other services identified in the cash management services agreement related to such service (the “Cash Management Services”). Silicon may, in its sole discretion, reserve against Accounts Loans which
would otherwise be available hereunder such sums as Silicon shall determine in its good faith business judgment in connection with the Cash Management Services, and Silicon may charge to Borrower’s Loan account, any amounts that may become due
or owing to Silicon in connection with the Cash Management Services. Borrower agrees to execute and deliver to Silicon all standard form applications and agreements of Silicon in connection with the Cash Management Services, and, without limiting
any of the terms of such applications and agreements, Borrower will pay all standard fees and charges of Silicon in connection with the Cash Management Services. The Cash Management Services shall terminate on the Maturity Date.
		
	 Foreign Exchange
 Contract
Sublimit:
	  	The Overall Sublimit.
		
	 	  	Borrower may enter into foreign exchange forward contracts with Silicon, on its standard forms, under which Borrower commits to purchase from or sell to Silicon a set amount of
foreign currency more than one business day after the contract date (the “FX Forward Contracts”); provided that (1) at the time the FX Forward Contract is entered into Borrower has Accounts Loans available to it under this Agreement in an
amount at least equal to 10% of the amount of the FX Forward Contract; (2) the total FX Forward Contracts at any one time

  

 -4- 

	Silicon Valley Bank	 	Schedule to Loan and Security Agreement
	

  

	 	  	outstanding may not exceed 10 times the amount of the Foreign Exchange Contract Sublimit set forth above. Silicon shall have the right to withhold, from the Accounts Loans
otherwise available to Borrower under this Agreement, a reserve (which shall be in addition to all other reserves) in an amount equal to 10% of the total FX Forward Contracts from time to time outstanding, and in the event at any time there are
insufficient Accounts Loans available to Borrower for such reserve, Borrower shall deposit and maintain with Silicon cash collateral in an amount at all times equal to such deficiency, which shall be held as Collateral for all purposes of this
Agreement. Silicon may, in its discretion, terminate the FX Forward Contracts at any time that an Event of Default occurs and is continuing. Borrower shall execute all standard form applications and agreements of Silicon in connection with the FX
Forward Contracts, and without limiting any of the terms of such applications and agreements, Borrower shall pay all standard fees and charges of Silicon in connection with the FX Forward Contracts.
	
	

		
	 2. INTEREST.
  
 Interest Rate (Section 1.2):
	  	 
		
	 	  	(a) Revolving Loans. The Revolving Loans shall bear interest at a rate equal to the “Prime Rate” in effect from time to time, plus 1.50% per annum, provided that;
if at any time the Borrower does not meet the Quick Ratio Test, then the interest rate thereafter shall be a rate equal to the Prime Rate in effect from time to time, plus 1.75% per annum.
		
	 	  	(b) Equipment Loans. The Equipment Loans shall bear interest at a rate equal to the Prime Rate in effect from time to time, plus 1.50% per annum.
		
	 	  	(c) Calculation. All interest shall be calculated on the basis of a 360-day year for the actual number of days elapsed. “Prime Rate” means the rate announced from
time to time by Silicon as its “prime rate”, provided that in no event shall the Prime Rate be less than 4.25% per annum. Borrower acknowledges that the Prime Rate is a base rate upon which other rates charged by Silicon are based, and it
is not necessarily the best rate available at Silicon. The interest rate applicable to the Obligations shall change on each date there is a change in the Prime Rate.

  

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	Silicon Valley Bank	 	Schedule to Loan and Security Agreement
	

  

	

	3. FEES (Section 1.4):	  	 
		
	 Loan Fee:
	  	$47,000, payable concurrently herewith.
		
	 Collateral Monitoring
	  	 
	 Fee:
	  	If the Asset Based Terms are in effect at any time during a month, Borrower shall pay Silicon a Collateral Monitoring Fee of $750 for such month, payable in arrears, provided that
if the Streamline Provisions are in effect throughout such month no Collateral Monitoring Fee shall be charged for such month.
		
	 Unused Line Fee:
	  	In the event, during any portion of any month in which the Asset Based Terms are in effect, the average daily principal balance of the Revolving Loans outstanding during such
period is less than the amount of the Maximum Revolving Line, Borrower shall pay Silicon an unused line fee (the “Unused Line Fee”) in an amount equal to 0.25% per annum on the difference between the amount of the Maximum Revolving Line
and the average daily principal balance of the Revolving Loans outstanding during such period, computed on the basis of a 360-day year, which Unused Line Fee shall be computed and paid quarterly, in arrears, on the first day of the following
calendar quarter.
	  

		
	 4. REVOLVING LOAN
 MATURITY
DATE
     (Section 6.1):
	  	364 days from the date hereof.
	  

	 5. FINANCIAL COVENANTS
     (Section 5.1):
	  	 
		
	 	  	Borrower shall comply with each of the following covenants. Compliance shall be determined as of the end of each month, except as otherwise specifically provided
below:
		
	 Minimum Tangible
 Net Worth:
	  	Borrower shall maintain a Tangible Net Worth of not less than $7,000,000, plus (i) 25% of all consideration received after the date hereof for equity securities and subordinated
debt of the Borrower, plus (ii) 50% of the Borrower’s net income in each fiscal quarter ending after the date hereof. Increases in the Minimum Tangible Net Worth Covenant based on consideration received for equity securities and subordinated
debt of the Borrower shall be effective as of the end of the month in which such consideration is received, and shall continue effective thereafter. Increases in the Minimum Tangible Net Worth Covenant based on net income shall be effective on the
last day of the fiscal quarter in which said net income is realized, and shall continue

  

 -6- 

	Silicon Valley Bank	 	Schedule to Loan and Security Agreement
	

  

	 	  	effective thereafter. Increases in the Minimum Tangible Net Worth Covenant based on net income shall be effective on the last day of the fiscal quarter in which said net income is
realized, and shall continue effective thereafter. In no event shall the Minimum Tangible Net Worth Covenant be decreased.
		
	 Definitions.
	  	For purposes of the foregoing financial covenants, the following term shall have the following meaning:
		
	 	  	“Tangible Net Worth” shall mean the excess of total assets over total liabilities, determined in accordance with GAAP, with the following adjustments:
		
	 	  	 (A) there shall be excluded from assets: (i) notes, accounts receivable and other obligations owing to Borrower from its officers or other
Affiliates, (ii) minority investments in subsidiaries or other entities, and (iii) all assets which would be classified as intangible assets under GAAP, including without limitation goodwill, licenses, patents, trademarks, trade names, copyrights,
capitalized software and organizational costs, licenses and franchises;

		
	 	  	 (B) there shall be excluded from liabilities: all indebtedness which is subordinated to the Obligations under a subordination agreement in form
specified by Silicon or by language in the instrument evidencing the indebtedness which Silicon agrees in writing is acceptable to Silicon in its good faith business judgment.

	  

		
	 6. REPORTING.
     (Section 5.3):
	  	 
		
	 	  	Borrower shall provide Silicon with the following:
		
	 	  	 (1)     Monthly accounts receivable agings, aged by invoice date, within fifteen days after the end of
each month, except that reports under this Section 6(1) need not be provided for a month if throughout such month Non-Formula Loans were outstanding or were available under this Agreement.

		
	 	  	 (2)     Monthly accounts payable agings, aged by invoice date, and outstanding or held check
registers, if any, within fifteen days after the end of each month, except that reports under this Section 6(2) need not be provided for a month if throughout such month Non-Formula Loans were outstanding or were available under this
Agreement.

  

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	Silicon Valley Bank	 	Schedule to Loan and Security Agreement
	

  

	 	  	 (3)     If the Asset Based Terms are in effect at any time during a month, monthly reconciliations of
accounts receivable agings (aged by invoice date), transaction reports, and general ledger, within fifteen days after the end of such month.

		
	 	  	 (4)     Monthly unaudited financial statements, as soon as available, and in any event within thirty
days after the end of each month.

		
	 	  	 (5)     Monthly Compliance Certificates, within thirty days after the end of each month, in such form
as Silicon shall reasonably specify (which shall include a statement and calculation as to compliance with the Quick Ratio Test) signed by the Chief Executive Officer, or the Chief Financial Officer, or the Vice President of Administration and
Controller of Borrower, certifying that as of the end of such month Borrower was in full compliance with all of the terms and conditions of this Agreement, and setting forth calculations showing compliance with the financial covenants set forth in
this Agreement and such other information as Silicon shall reasonably request, including, without limitation, a statement that at the end of such month there were no held checks.

		
	 	  	 (6)     Annual operating budgets (including income statements, balance sheets and cash flow
statements, by month) for the upcoming fiscal year of Borrower prior to the end of each fiscal year of Borrower.

		
	 	  	 (7)     Annual financial statements, as soon as available, and in any event within 120 days following
the end of Borrower’s fiscal year, certified by, and with an unqualified opinion of, independent certified public accountants acceptable to Silicon.

	  

		
	7. BORROWER INFORMATION:	  	 
		
	 	  	Borrower represents and warrants that the information set forth in the Representations and Warranties of the Borrower dated February 11, 2003, previously submitted to Silicon (the
“Representations”) is true and correct as of the date hereof.
	  

		
	8. ASSET BASED TERMS.	  	 
		
	 	  	 (a)    “Asset Based Terms”. As used herein, “Asset Based Terms” means the
following provisions:

		
	 	  	 (1)     Schedules and Documents relating to Accounts. Borrower shall deliver to Silicon weekly
transaction

  

 -8- 

	Silicon Valley Bank	 	Schedule to Loan and Security Agreement
	

  

	 	 	 reports, Loan requests, schedules of Accounts, and schedules of collections, all on Silicon’s standard forms.

		
	 	 	 (2)     Collateral Control. All payments received in the lockbox account referred to in Section
4.4 of the Loan Agreement shall be applied by Silicon to the outstanding Revolving Loans. Borrower shall hold all payments on, and proceeds of, Accounts and all other Collateral in trust for Silicon, and Borrower shall immediately deliver all such
payments and proceeds to Silicon in their original form, duly endorsed, to be applied to the Obligations in such order as Silicon shall determine. Borrower agrees that it will not commingle such payments and proceeds with any of Borrower’s
other funds or property, but will hold such payments and proceeds separate and apart from such other funds and property and in an express trust for Silicon.

		
	 	 	 Terms of this Agreement without the Asset Based Terms are referred to as the “Non-Asset Based Terms”.

		
	 	 	 (b)     Putting Asset Based Terms Into Effect. In the event that the Borrower does not meet the
Quick Ratio Test at any time, then the Asset Based Terms shall thereafter be effective upon written notice from Silicon to the Borrower at any time. Once the Asset Based Terms are effective, the Borrower may not transfer back to the Non-Asset Based
Terms, except with the written agreement of Silicon, which shall be a matter of its good faith business judgment.

		
	 	 	 (c)     Streamline Provisions. If at the date the Asset Based Terms go into effect there are no
Revolving Loans or Equipment Loans outstanding, then the following provisions (the “Streamline Provisions”) shall apply:

		
	 	 	 (1)     Borrower will not be required to provide Silicon with weekly reporting of transactions and
schedules of Accounts and collections (as called for by Section 8(a)(1) of this Schedule). Borrower shall, however, provide Silicon with monthly transaction reports including sales, collections and memo journals for each month within 15 days after
the end of each month.

		
	 	 	 (2)     During the Streamline Period, no Loans will be made.

		
	 	 	 (3)     Notwithstanding the fact that no Loans will be outstanding during the Streamline Period, the
Unused Line Fee shall be effective during the Streamline Period.

  

 -9- 

	Silicon Valley Bank	 	Schedule to Loan and Security Agreement
	

  

		
	 	  	 (d)     Termination of Streamline Provisions. If Borrower wishes to terminate the Streamline
Provisions in order to obtain Loans, Borrower may do so, provided no Default or Event of Default has occurred and is continuing, by giving Silicon written notice at least 30 days before the Streamline Provisions are to terminate, together with such
information relating to the Accounts and other Collateral as Silicon shall specify, in order to permit Silicon to complete an audit with respect to Borrower satisfactory to Silicon. Upon any termination of the Streamline Provisions, Borrower will,
then and thereafter, provide Silicon with the weekly reporting of transactions and schedules of Accounts and collections, as called for by Section 8(a)(1) of this Schedule. Notwithstanding the foregoing, and without limiting its other rights and
remedies, if any Default or Event of Default has occurred and is continuing, Silicon may terminate the Streamline Provisions immediately on notice to Borrower.

	  

		
	9. ADDITIONAL PROVISIONS	  	 
		
	 	  	 (a)     Banking Relationship. Borrower shall at all times maintain its primary banking
relationship and a meaningful portion of its investment accounts with Silicon. As to any Deposit Accounts and investment accounts maintained with another institution, Borrower shall cause such institution, within 30 days after the date of this
Agreement, to enter into a control agreement in form acceptable to Silicon in its good faith business judgment in order to perfect Silicon’s first-priority security interest in said Deposit Accounts and investment accounts.

		
	 	  	 (b)     Subordination of Inside Debt. All present and future indebtedness of Borrower to its
officers, directors and shareholders (“Inside Debt”) shall, at all times, be subordinated to the Obligations pursuant to a subordination agreement on Silicon’s standard form, except for Inside Debt totaling not more than $100,000 at
any time outstanding. Borrower represents and warrants that there is no Inside Debt presently outstanding, totaling not more than $100,000 outstanding. Prior to incurring any Inside Debt in the future, Borrower shall cause the person to whom such
Inside Debt will be owed to execute and deliver to Silicon a subordination agreement on Silicon’s standard form.

		
	 	  	 (c)     Right to Invest. Borrower hereby grants to Silicon and its affiliates the right to
invest up to a total of $750,000 in Borrower’s next round of equity financing (the “Next Equity Financing”) on the same terms, conditions and pricing offered to the investors in the Next Equity Financing. Borrower shall provide
Silicon with at least thirty (30) days prior written notice

  

 -10- 

	Silicon Valley Bank	 	Schedule to Loan and Security Agreement
	

  

	 	 	 of the contemplated closing of the Next Equity Financing (such notice being an “Equity Notice”). The Equity Notice shall contain the
terms, conditions and pricing of such Subsequent Equity Financing and the Equity Notice and shall be delivered to Silicon at 3003 Tasman Drive HG 180, Santa Clara, California 95054, to the attention of General Counsel. Silicon and its affiliates
shall have the right in their sole discretion to participate in the Next Equity Financing and nothing herein shall be construed as creating an obligation on Silicon or its affiliates to so participate.

		
	 	 	 (d)     Domestic Subsidiaries. Borrower represents and warrants that it does not have any
subsidiaries organized under the laws of any state in the United States, other than Atheros India, LLC, a Delaware limited liability company, and Atheros Communications International, LLC, a Delaware limited liability company, (the “Domestic
Subs”), and that the Domestic Subs do not, and will not, throughout the term of this Agreement, have any Intellectual Property or any assets located in the United States, without Silicon’s prior written consent (which consent may be
conditioned on the Domestic Subs executing and delivering to Silicon continuing guaranties with respect to the Obligations on Silicon’s standard form, and security agreements granting Silicon first-priority security interests in all of their
assets to secure said guaranties).

  

	 Borrower:
  
 ATHEROS COMMUNICATIONS, INC.
	 	 	 	 Silicon:
  
 SILICON VALLEY BANK

					
	 By
	 	 	 	 	 	 By
	 	 
	 	
	 	 	 	 	

	 	 	President or Vice President	 	 	 	 Title
	 	 
	 	 	 	 	 	 	 	

  

					
	 By
	 	 	 	 	 	 	 	 
	 	
	 	 	 	 	 	 
	 	 	Secretary or Ass’t Secretary	 	 	 	 	 	 

  

 -11- 

 Schedule 2 to 
  
 Loan and Security Agreement 
  

Existing Investments which are Permitted Investments: 
  
 Borrower’s present account at Morgan Stanley, which respect to which a control agreement in form and substance acceptable to Silicon is being concurrently executed
and delivered. 
  
 Existing Indebtedness which is Permitted Indebtedness:

  
 None 
  
 Existing loans permitted under Section 5.5(vii): 
  
 Notes receivable presently outstanding in connection with the early exercise of stock options for the purchase of stock of Borrower in the amount of approximately
$186,000 and notes receivable presently outstanding in connection with transactions other than the exercise of stock options in the amount of approximately $24,000. 
  
 Existing Liens which are Permitted Liens: 
  
 Liens on specific items of equipment in favor of Comdisco and GATX Ventures, Inc. (“GATX”), and the Lien of GATX in deposit account number 8800054866 maintained
by Borrower with Silicon containing an amount not to exceed $500,000.Equipment Loan and Security Agreement, dated 9/2001

 EXHIBIT 10.18 
  
 EQUIPMENT LOAN AND SECURITY AGREEMENT 
  
 Dated as of September _, 2001 
  
 between 
  
 GATX VENTURES, INC. 
 3687 Mt. Diablo Blvd., Suite 200 
 Lafayette, California 94549 
  
 as Lender 
  
 and 
  
 ATHEROS COMMUNICATIONS, INC. 
 a Delaware corporation 
 529 Almanor Avenue 
 Sunnyvale, CA 94085 
  
 as Borrower 
  
 CREDIT AMOUNT: $3,000,000 
  

	Repayment Period:	 	33 months	 	Maximum Number of Fundings:	 	monthly
				
	Final Payment Percentage:	 	6%	 	Treasury Note Maturity:	 	30 months
				
	Minimum Funding Amount:	 	$100,000	 	Loan Margin: 545 basis points	 	 

  
 Commitment Termination
Date: September 30, 2002 
  
 Eligible Equipment: New and used manufacturing
equipment, computer equipment, office equipment and furnishings, laboratory and test equipment. 
  
 The defined terms and information set forth on this cover page are a part of the Equipment Loan and Security Agreement, dated as of the date first
written above (this “Agreement”), entered into by and between GATX VENTURES, INC. (“Lender”) and ATHEROS COMMUNICATIONS, INC. (“Borrower”) set forth above. The terms and conditions of this Agreement agreed to between
Lender and Borrower are as follows: 

 1.01. Certain Definitions. Unless otherwise indicated in this Agreement or any other Operative
Document, the following terms, when used in this Agreement or any other Operative Document, shall have the following respective meanings: 
  
 “Account Collateral” has the meaning given to such term in Section 5.01. 
  
 “Account Control Agreement” means an agreement acceptable to
Lender which perfects via control Lender’s security interest in the Account Collateral. 
  
 “All-in-Rate” means the per annum rate of interest at which the Scheduled Payments and the Final Payment amortize the Loan. 
  
 “Business Day” shall mean any day other than a Saturday, Sunday or public holiday under the laws of
California or other day on which banking institutions are authorized or obligated to close in California. 
  
 “Claim” has the meaning given to that term in Section 10.03. 
  
 “Code” means the Uniform Commercial Code as adopted and in effect in the State of California, as amended
from time to time, provided that if by reason of mandatory provisions of law, the creation and/or perfection or the effect of perfection or non-perfection of the security interest in any Collateral is governed by the Uniform Commercial Code as in
effect in a jurisdiction other than California, the term “Code” shall also mean the Uniform Commercial Code as in effect from time to time in such jurisdiction for purposes of the provisions hereof relating to such creation, perfection or
effect of perfection or non-perfection. 
  
 “Collateral” has the meaning given to that term in Section 5.01(a). 
  
 “Commitment Termination Date” shall mean the date specified on the cover page of this Agreement. 
  
 “Credit Amount” shall mean the maximum amount that Lender is
committed to lend (if the conditions specified in Schedule 3 are satisfied), which amount is set forth following such term on the cover page of this Agreement. 
  

“Default” shall mean any event which with the passing of time or the giving of notice or both would become an Event of Default
hereunder. 
  
 “Default Rate” shall mean the per
annum rate of interest equal to five percent (5%) over the rate at which the Loan Rate and Final Payment amortize the Loan. 
  
 “Disclosure Schedule” shall mean Schedule 2 attached hereto. 
  
 “Eligible Equipment” shall mean, to the extent acceptable to Lender, Equipment of the types listed
following such term on the cover page of this Agreement; provided that Eligible Equipment 
  

 2 

 shall not include Equipment placed in service more than 90 days prior to the date of any Loan Terms Schedule; provided
further, for the first Loan only (so long as the Funding Date of the first Loan is on or before September 15, 2001) Eligible Equipment shall include Equipment placed in service on or after January 1, 2001. 
  
 “Environmental Law” shall mean the Resource Conservation and
Recovery Act of 1987, the Comprehensive Environmental Response, Compensation and Liability Act, and any other federal, state or local statute, law, ordinance, code, rule, regulation, order or decree (in each case having the force of law) regulating
or imposing liability or standards of conduct concerning any Hazardous Material, as now or at any time hereafter in effect. 
  
 “Equipment” has the meaning given to that term in Section 5.01(a). 
  
 “Equipment Collateral” has the meaning given to such term in Section 5.01. 
  
 “Equity Securities” shall mean (a) all common stock,
preferred stock, participations, shares, partnership interests or other equity interest in and of Borrower (regardless of how designated and whether or not voting or non-voting) and (b) all warrants, options and other rights to acquire any of the
foregoing. 
  
 “Event of Default” has the meaning
given to that term in Section 9.01. 
  
 “Event of
Loss” has the meaning given to that term in Section 6.01(e). 
  
 “Final Payment” shall mean, with respect to each Loan, a payment (in addition to the regular monthly payment of principal and accrued interest on the Loan) due on the Maturity Date for such Loan equal
to the Loan Amount for such Loan at such time multiplied by the Final Payment Percentage. 
  
 “Final Payment Percentage” means the percentage set forth following such term on the cover page of this Agreement. 
  
 “Funding Date” shall mean any date on which a Loan is made to or on account of Borrower under this
Agreement. 
  
 “Good Faith Deposit” has the
meaning given in Section 2.04(d). 
  
 “Hazardous
Material” means any hazardous, dangerous or toxic constituent material, pollutant, waste or other substance, whether solid, liquid or gaseous, which is regulated by any federal, state or local governmental authority. 
  
 “Indebtedness” shall mean, with respect to Borrower or any
Subsidiary, the aggregate amount of, without duplication, (a) all obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (c) all obligations of

  

 3 

 such Person to pay the deferred purchase price of property or services (excluding trade payables aged less than 180
days), (d) all capital lease obligations of such Person, (e) all obligations or liabilities of others secured by a lien on any asset of such Person, whether or not such obligation or liability is assumed, (f) all obligations or liabilities of others
guaranteed by such Person; and (g) any other obligations or liabilities which are required by GAAP to be shown as debt on the balance sheet of such Person. Unless otherwise indicated, the term “Indebtedness” shall include all
Indebtedness of Borrower and the Subsidiaries. 
  
 “Interim Payment” shall mean, which respect to each Loan, an amount equal to the initial Loan Amount multiplied by the All-in-Rate multiplied by the quotient of (i) the number of days from (and including) the Funding Date
of such Loan to (but not including) the first Payment Date with respect to such Loan, divided by (ii) 360. 
  
 “Landlord Consent” shall mean a consent in the form of Exhibit B or such other form as Lender may agree to accept. 
  
 “Lien” shall mean any voluntary or involuntary security
interest, pledge, bailment, lease, mortgage, hypothecation, conditional sales and title retention agreements, charge, claim, encumbrance or other lien in favor of any Person. 
  
 “Loan” shall mean each advance by Lender to Borrower under this Agreement. 
  
 “Loan Amount” shall mean, as of any date, with respect to
each Loan, the original principal amount of such Loan less the aggregate of all Stated Costs of Equipment with respect to which prepayments of such Loan have been made pursuant to Section 6.01(e) hereunder. 
  
 “Loan Factor” shall mean, with respect to each Loan, the
amount set forth as a percentage with respect to such Loan in the applicable Loan Terms Schedule, calculated using the Loan Rate applicable to such Loan. 
  
 “Loan Margin” shall mean the number of basis points set forth following such term on the cover page of this Agreement. 
  
 “Loan Rate” shall mean, with respect to each Loan, the per
annum rate of interest (based on a year of twelve 30-day months) equal to the sum of (a) the U.S. Treasury note rate of a term equal to the Treasury Note Maturity as quoted in the Wall Street Journal on the date the Loan Terms Schedule for such Loan
is prepared, plus (b) the applicable Loan Margin. 
  
 “Loan Terms Schedule” shall mean, with respect to each Loan, a schedule in the form of Schedule 1 hereto, duly completed to set forth the terms applicable to such Loan. 
  
 “Loan Value” means with respect to each Loan, an amount
equal to the sum of all remaining unpaid Scheduled Payments and the Final Payment discounted to the relevant date at a rate of five percent (5%) per annum, but shall not exceed the Loan Amount for such Loan; the “relevant date” 

 

 4 

 shall be the Payment Date on which payment of such amount is to be made, or if such date is not a Payment Date, on the
Payment Date immediately succeeding such date. 
  
 “Maturity Date” shall mean, with respect to each Loan, the earlier of (a) the last Business Day of the Repayment Period applicable to such Loan or (b) the date of acceleration of such Loan by Lender following an Event of
Default. 
  
 “Maximum Number of Fundings” shall
mean the maximum number of fundings under this Agreement specified on the cover page of this Agreement. 
  
 “Minimum Funding Amount” shall mean the dollar amount specified on the cover page of this Agreement. 
  
 “Obligations” has the meaning given to that term in
Section 5.01. 
  
 “Operative Documents”
shall mean this Agreement, the Warrant, the Landlord Consent(s), the Service Provider’s Consent(s) and all other documents, instruments and agreements (including Loan Terms Schedules) executed and delivered in connection herewith or therewith
or in respect of the closing of the transactions contemplated hereby or thereby. 
  
 “Payment Date” has the meaning given to that term in Section 2.04(a). 
  
 “Permitted Liens” shall mean (a) the Lien created by this Agreement; (b) Liens on the Equipment Collateral for fees, taxes, levies,
imposts, duties or other governmental charges of any kind which are not yet delinquent or which are being contested in good faith by appropriate proceedings which suspend the collection thereof (provided, however, that such proceedings
do not involve any substantial danger of the sale, forfeiture or loss of any item of Equipment and that Borrower has adequately bonded such Lien or reserves sufficient to discharge such Lien have been provided on the books of Borrower); and (c)
carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other similar Liens arising in the ordinary course of business which are not delinquent or remain payable without penalty or which are being contested in
good faith and by appropriate proceedings (provided, however, that such appropriate proceedings do not involve any substantial danger of the sale, forfeiture or loss of any item of Collateral and that Borrower has adequately bonded
such Lien or reserves sufficient to discharge such Lien have been provided on the books of Borrower). 
  
 “Person” shall mean and include an individual, a partnership, a corporation, a business trust, a joint stock company, a limited liability
company, an unincorporated association or other entity and any domestic or foreign national, state or local government, any political subdivision thereof, and any department, agency, authority or bureau of any of the foregoing. 
  
 “Pledged Account” has the meaning given to that term in
Section 5.01. 
  
 “Repayment Period” shall
mean the period beginning on the first Payment Date and 
  

 5 

 continuing for the number of calendar months or quarters set forth following such term on the cover page of this
Agreement. 
  
 “Scheduled Payments” has the
meaning given to that term in Section 2.04(a). 
  
 “Service Provider’s Consent” shall mean a consent in the form of Exhibit A or such other form as Lender may agree to accept. 
  
 “Soft Costs” Amounts to finance tenant improvements, computer software, equipment specially designed or
manufactured for Borrower, sales tax, freight, installation, and any other intangible costs. 
  
 “Stated Cost” shall mean, with respect to each item of Equipment one hundred percent (100%) of the purchase price of Eligible Equipment or Soft Cost; provided, however for the first Loan only (so long
as the Funding Date of the first Loan is on or before September 15, 2001) Equipment placed in service on or after January 1, 2001 and after 90 days before the Funding Date of the first Loan shall have a Stated Cost of eighty-five percent (85%) of
the purchase price of such Equipment. 
  
 “Stipulated Loss
Value” shall mean, with respect to each item of Equipment, the Loan Value multiplied by the Stated Cost. 
  
 “Subsidiary” shall mean any corporation of which a majority of the outstanding capital stock entitled to vote for the election of
directors (otherwise than as the result of a default) is owned by Borrower directly or indirectly through Subsidiaries. 
  
 “Term” shall mean the period from and after the date hereof until the payment or satisfaction in full of all Obligations under this
Agreement and the other Operative Documents. 
  
 “Treasury
Note Maturity” shall mean the period of months set forth following such term on the cover page of this Agreement. 
  
 “Used Equipment” shall mean all Eligible Equipment which is not New Equipment. 
  
 “Warrant” shall mean a warrant to purchase securities of
Borrower substantially in the form of Exhibit C. 
  
 1.02.
Headings. Headings in this Agreement and each of the other Operative Documents are for convenience of reference only and are not part of the substance hereof or thereof. 
  
 1.03. Plural Terms. All terms defined in this Agreement or any other Operative Document in the singular form shall
have comparable meanings when used in the plural form and vice versa. 
  
 1.04. Construction. This Agreement is the result of negotiations among, and has been 
  

 6 

 reviewed by, Borrower and Lender and their respective counsel. Accordingly, this Agreement shall be deemed to be the
product of all parties hereto, and no ambiguity shall be construed in favor of or against Borrower or Lender. 
  
 1.05. Entire Agreement. This Agreement, together with the terms set forth in each Loan Terms Schedule and each of the other Operative Documents,
taken together, constitute and, contain the entire agreement of Borrower and Lender and, with regard to their respective subject matters, supersede any and all prior agreements, term sheets, negotiations, correspondence, understandings and
communications among the parties, whether written or oral, with respect to their respective subject matters. Borrower acknowledges that it is not relying on any representation or agreement made by Lender or any employee, agent or attorney of Lender,
other than the specific agreements set forth in this Agreement and the Operative Documents. 
  
 1.06. Other Interpretive Provisions. References in this Agreement to “Articles,” “Sections,” “Exhibits,” “Schedules” and “Annexes” are to articles, sections,
exhibits, schedules and annexes herein and hereto unless otherwise indicated. References in this Agreement and each of the other Operative Documents to any document, instrument or agreement shall include (a) all exhibits, schedules, annexes and
other attachments thereto, (b) all documents, instruments or agreements issued or executed in replacement thereof, and (c) such document, instrument or agreement, or replacement or predecessor thereto, as amended, modified and supplemented from time
to time and in effect at any given time. The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement or any other Operative Document shall refer to this Agreement or such other
Operative Document, as the case may be, as a whole and not to any particular provision of this Agreement or such other Operative Document, as the case may be. The words “include” and “including” and words of similar import when
used in this Agreement or any other Operative Document shall not be construed to be limiting or exclusive. Unless otherwise indicated in this Agreement or any other Operative Document, all accounting terms used in this Agreement or any other
Operative Document shall be construed, and all accounting and financial computations hereunder or thereunder shall be computed, in accordance with generally accepted accounting principles as in effect in the United States of America from time to
time. The terms and conditions set forth in each Loan Terms Schedule are incorporated herein by this reference. 
  
 2.01 Credit Facility. On the terms and subject to the conditions hereof and relying upon the representations and warranties herein set forth as and
when made or deemed to be made, Lender agrees to lend to Borrower, from time to time (but not to exceed once per calendar month) prior to the Commitment Termination Date, the Loans; provided, however, that the aggregate original
principal amount of the Loans shall not exceed the Credit Amount at any time; provided, further, that the aggregate original principal amount of any Loan relating to the financing of Eligible Equipment shall not exceed the
aggregate Stated Costs of the items of Eligible Equipment being financed with such Loan; provided, further, that the aggregate principal amount of all Loans relating to Soft Costs shall not exceed thirty percent (30%) of all
Loans. If repaid or prepaid, the principal of the Loans may not be re-borrowed. 
  

 7 

 2.02. Use of Proceeds; the Loans and the Loan Terms Schedule. 
  
 (a) Use of Proceeds. The proceeds of the Loans shall be used solely
for the purchase of, or reimbursement to Borrower of the Stated Cost of Eligible Equipment and Soft Costs as set forth in Section 2.01. 
  
 (b) The Loans and the Loan Terms Schedule. The obligation of Borrower to repay the aggregate unpaid principal amount of and interest on and to make
the Final Payments on the Loans, or to pay the Stipulated Loss Value applicable to each Loan, shall be evidenced by the Loan Terms Schedule. 
  
 2.03. Procedure for Making Loans. 
  
 (a) Loan Terms Schedule. Whenever Borrower desires that Lender make a Loan, Borrower shall deliver to Lender the requested Funding Date and a list
of the Equipment proposed to be financed by such Loan and request that Lender prepare a Loan Terms Schedule for such Loan at least twenty (20) days prior to the requested Funding Date. Lender’s obligation to make the initial Loan shall be
subject to the satisfaction of the conditions set forth in Sections 8.01 and 8.02. Lender’s obligation to make each subsequent Loan shall be subject to the satisfaction of the conditions set forth in Section 8.02. 
  
 (b) Loan Rate. Each Loan Terms Schedule shall establish the Loan Rate
applicable to that Loan. The Loan Rate shall not be subject to change in the absence of manifest error or upon the written agreement of Borrower and Lender. All computations of interest on Loans shall be based on a year of twelve 30-day months. If
Borrower pays interest on any Loan which is determined to be in excess of the then legal maximum rate, then that portion of each interest payment representing an amount in excess of the then legal maximum rate shall be deemed a payment of principal
and applied against the principal of the applicable Loan. 
  
 (c)
Loan Factor and Loan Value Calculation. Each Loan Terms Schedule shall establish the Loan Factor and Loan Values with respect to such Loan. The Loan Factor shall be calculated in a manner to fully amortize the Loan over the Repayment Period
applicable to such Loan in equal periodic installments. The Loan Factor and Loan Values applicable to each Loan shall be conclusive in the absence of manifest error. 
  
 (d) Disbursement. Subject to the receipt by Lender of a Loan Terms Schedule duly executed by Borrower and the
satisfaction of the conditions set forth in Sections 8.01 and 8.02 with respect to the initial Loan and the satisfaction of the conditions set forth in Section 8.02 with respect to each subsequent Loan, Lender shall disburse such Loan
by wire transfer to Borrower unless otherwise directed in writing by Borrower. 
  
 (e) Termination of Commitment to Lend. Notwithstanding anything to the contrary in the Operative Documents, Lender’s obligation to lend the undisbursed portion of the Credit Amount to Borrower hereunder
shall terminate on the earlier of (i) the occurrence of any Event of Default 
  

 8 

 hereunder and (ii) the Commitment Termination Date. 
  
 2.04 Other Payment Terms. 
  
 (a) Principal and Interest Payments On Payment Dates. Borrower shall make payments of principal and accrued interest for each Loan (collectively,
“Scheduled Payments”), commencing on the date set forth on the Loan Terms Schedule applicable to such Loan and continuing thereafter during the Repayment Period on the first day of each calendar month (each a “Payment
Date”), in an amount equal to the Loan Factor multiplied by the Loan Amount for such Loan as of such Payment Date. The first and last Scheduled Payment of each Loan shall be due on the Funding Date. The Loans may not be prepaid except: (i)
in the circumstances set forth in Section 6.01(e), (ii) if the Loans are accelerated following the occurrence of an Event of Default or otherwise (other than following an Event of Loss) in which case, Borrower shall immediately pay to Lender
the amounts specified in Section 9.02, (iii) as set forth in Section 2.04(h), and (iv) as set forth in Section 7.01(b). 
  
 (b) Interim Payment. Unless the Funding Date for a Loan is a Payment Date, Borrower shall pay to Lender the Interim Payment payable with respect to
such Loan on the Funding Date of such Loan. 
  
 (c) Final
Payment. Unless a Loan is prepaid in full in accordance with Section 2.04 (a), on the Maturity Date with respect to such Loan, Borrower shall pay, in addition to any remaining unpaid principal and accrued interest and all other amounts
previously due with respect to such Loan, an amount equal to the Final Payment with respect to such Loan. 
  
 (d) Good Faith Deposit; Facility Fee. 
  
 (i) Borrower has paid a good faith deposit in the amount of Fifteen Thousand Dollars ($15,000) (the “Good Faith Deposit”). The
Good Faith Deposit shall be applied first to Lender’s expenses in connection with due diligence and the preparation, negotiation, and documentation of the Agreement and the other Operative Documents and funding of Loans hereunder. (It is agreed
that Lender’s in-house legal fee for the negotiation and documentation of the Agreement and the other Operative Documents shall be Four Thousand Dollars ($4,000).) The balance of the Good Faith Deposit shall be applied to the next Scheduled
Payment due under each Loan on a pro rata basis following the determination of Lender’s expenses. If a Loan is not made, the remaining balance of the Good Faith Deposit shall be retained by Lender. 
  
 (ii) Facility Fee. Borrower shall pay concurrently
with its execution and delivery of this Agreement a facility fee in the amount of Fifteen Thousand Dollars ($15,000) (the “Facility Fee”). The Facility Fee shall be retained by Lender and be deemed fully earned upon receipt. 
  
 (e) Place and Manner. Borrower shall make all payments due to Lender
in lawful money of the United States at the address for payments and in the manner specified in Section 10.05(a). 
  
 (f) Date. Whenever any payment due hereunder shall fall due on a day other than a 
  

 9 

 Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall be
included in the computation of interest or fees, as the case may be. 
  
 (g) Default Rate. If either (i) any amounts required to be paid by Borrower under this Agreement or the other Operative Documents (including principal or interest payable on any Loan, any fees or other amounts) remain unpaid after
such amounts are due, subject to any applicable grace period, or (ii) an Event of Default has occurred and is continuing, Borrower shall pay interest on the aggregate, outstanding principal balance hereunder from the date due or from the date of the
Event of Default, as applicable, until such past due amounts are paid in full or until all Events of Defaults are cured, as applicable, at a per annum rate equal to the Default Rate. All computations of such interest shall be based on a year of
twelve 30-day months. 
  
 (h) Optional Prepayment. Upon ten
(10) Business Days’ prior written notice to Lender, Borrower may, at its option, at any time after March 30, 2003, prepay all, and not less than all, of the Loans in full by paying to Lender an amount equal to (i) all accrued and unpaid
Scheduled Payments with respect to each Loan due prior to the date of prepayment; (ii) any accrued and unpaid interest; (iii) the Loan Value of each Loan, and (iv) all other sums, if any, that shall have become due and payable hereunder. 

 
 3.01. Representations and Warranties. Except as set forth on Annex
C to Schedule No. 1 hereto, Borrower makes the following representations and warranties to Lender as of the date hereof and again on each Funding Date: 
  
 (a) Organization and Qualification. Borrower is a corporation duly organized, validly existing and in good standing under the laws of its state of
incorporation and is duly qualified to do business in the state(s) in which the Equipment will be located. 
  
 (b) Authority. Borrower has all necessary corporate power, authority and legal right and has obtained all approvals and consents and has given all
notices necessary to execute and deliver this Agreement and the other Operative Documents and to perform the terms hereof and thereof. Borrower has all requisite corporate power and authority to own and operate its properties and to carry on its
businesses as now conducted. 
  
 (c) Conflict with Other
Instruments, etc. Neither the execution and delivery of any Operative Document to which Borrower is a party nor the consummation of the transactions therein contemplated nor compliance with the terms, conditions and provisions thereof will
conflict with or result in a breach of any of the terms, conditions or provisions of the charter or the bylaws of Borrower or, to its knowledge, any law or any regulation, order, writ, injunction or decree of any court or governmental
instrumentality or any material agreement or instrument to which Borrower is a party or by which it or any of its properties is bound or to which it or any of its properties is subject, or constitute a default thereunder or result in the creation or
imposition of any Lien, other than Permitted Liens. 
  
 (d)
Title to Properties. Borrower has good and marketable title to all Equipment which 
  

 10 

 constitutes or will constitute Collateral, free and clear of all Liens, other than Permitted Liens. 
  
 (e) Authorization, Governmental Approvals, etc. The execution and
delivery by Borrower of each Operative Document, the granting of the security interest in the Collateral, the issuance of the Warrant, the issuance of the securities into which the Warrant is exercisable, the issuance of any securities into which
the securities issuable upon exercise of the Warrant are convertible, and the performance of the obligations herein and therein contemplated have each been duly authorized by all necessary action on the part of Borrower. No authorization, consent,
approval, license or exemption of, and no registration, qualification, designation, declaration or filing with, or notice to, any Person is, was or will be necessary to (i) the valid execution and delivery of any Operative Document to which Borrower
is a party, (ii) the performance of Borrower’s obligations under any Operative Document, or (iii) the granting of the security interest in the Collateral. The Operative Documents have been or will be duly executed and delivered and constitute
or will constitute legal, valid and binding obligations of Borrower, enforceable in accordance with their respective terms, except as the enforceability thereof may be limited by bankruptcy, insolvency or other similar laws of general application
relating to or affecting the enforcement of creditors’ rights or by general principles of equity. 
  
 (f) Litigation. There are no actions, suits, proceedings or investigations pending or, to the knowledge of Borrower, threatened against or
affecting Borrower, or the business or any property or asset owned by it, before any court or governmental department, agency or instrumentality which if adversely determined might have a material adverse effect on the financial condition, business
or operations of Borrower. 
  
 (g) Disclosure. Neither any
Operative Document nor any other agreement, document or certificate furnished by Borrower to Lender, including, without limitation, historical financial statements, contains any untrue statement of a material fact or omits to state a material fact
necessary in order to make the statements contained herein and therein not misleading. There is no fact known to Borrower which materially adversely affects, or which could in the future materially adversely affect, its ability to perform its
obligations under the Operative Documents to which it is a party. 
  
 (h) Security Interest. Assuming the proper filing of one or more financing statement(s) identifying the Equipment Collateral with the proper state and/or local authorities, and the execution and delivery of an Account Control
Agreement with respect to Account Collateral, the security interests in the Collateral granted to Lender pursuant to this Agreement (i) constitute and will continue to constitute first priority security interests (except to the extent any other
Permitted Lien existing on the date of this Agreement may create any priority to Lender’s Lien under this Agreement) and (ii) are and will continue to be superior and prior to the rights of all other creditors of Borrower (except to the extent
of such Permitted Liens). 
  
 (i) Name; Executive Offices.
Borrower’s name, the principal place of business and chief executive office of Borrower, state of incorporation, Tax EIN Number and Corporate Number, and the office where Borrower will keep the Collateral and all records and files regarding the
Collateral, is set forth accurately on the cover page of this Agreement or the Disclosure Schedule. 
  

 11 

 (j) No Material Adverse Effect. No event has occurred and no condition exists which could
reasonably be expected to have a material adverse effect on the financial condition, business or operations of Borrower since December 31, 2000. 
  
 4.01. Furnishing Reports. Borrower shall furnish to Lender: 
  
 (a) Financial Statements. So long as Borrower is not subject to the reporting requirements of Sections 12 or 15 of
the Securities and Exchange Act, as amended, promptly as they are available, unaudited monthly (but in any event within forty-five (45) days of month-end) and audited annual financial statements (but in any event within one hundred twenty (120) days
of year-end) of Borrower and such other financial information as Lender may reasonably request from time to time. From and after such time as Borrower becomes a publicly reporting company, promptly as they are available and in any event: (i) at the
time of filing of Borrower’s Form 10-K with the Securities and Exchange Commission after the end of each fiscal year of Borrower, the financial statements of Borrower filed with such Form 10-K; and (ii) at the time of filing of Borrower’s
Form 10-Q with the Securities and Exchange Commission after the end of each of the first three fiscal quarters of Borrower, the financial statements of Borrower filed with such Form 10-Q. 
  
 (b) Notice of Event of Loss. As soon as possible, and in any event within fifteen (15) days thereafter, notice in
writing in reasonable detail of any Event of Loss. 
  
 (c)
Notice of Defaults. As soon as possible, and in any event within five (5) Business Days after the discovery of a Default or Event of Default provide Lender with an officer’s certificate of Borrower setting forth the facts relating to or
giving rise to such Default or Event of Default and the action which Borrower proposes to take with respect thereto. 
  
 (d) Miscellaneous. Such other information as Lender may reasonably request from time to time in connection with a Funding Date or otherwise.

  
 5.01. Grant of Security Interest. 
  
 (a) Grant. Borrower, in order to secure the payment of the principal,
interest and Final Payment due with respect to the Loans made pursuant to this Agreement, all other sums due under and in respect hereof and of the other Operative Documents, including fees, charges, expenses and attorneys’ fees and costs and
the performance and observance by Borrower of all other terms, conditions, covenants and agreements herein and in the other Operative Documents (all such amounts and obligations being herein sometimes called the “Obligations”), does
hereby grant to Lender and its successors and assigns, a security interest in and to the Collateral. Collateral shall mean and include all right, title, interest, claims and demands of Borrower in and to all of the Equipment Collateral and Account
Collateral. 
  
 The “Equipment
Collateral” shall mean all right, title, interest, claims and demands of Borrower in and to each and every item of goods (and embedded computer programs and 
  

 12 

 supporting information included within the definition of “goods” under the Code), equipment,
fixtures or personal property which is financed with or is designated as collateral for a Loan on and after the date of this Agreement by designating such goods, equipment, fixtures and personal property on Annex A to each Loan Terms
Schedule, whether now owned or hereafter acquired, together with all substitutions, renewals or replacements of and additions, improvements, accessions, replacement parts and accumulations to any and all of such goods, equipment, fixtures or
personal property (collectively, the “Equipment”), together with all proceeds thereof, including, without limitation, insurance, condemnation, requisition or similar payments, and all proceeds from sales, renewals, releases or other
dispositions thereof. Notwithstanding the foregoing, the Equipment Collateral shall not include Soft Costs that consist of any software, license or contract right to the extent that: (a) the grant of a security interest therein is prohibited by
applicable law, or (b) the grant of a security interest therein is prohibited by the terms of such software, license or contract right and such prohibition is enforceable by applicable law. 
  
 The “Account Collateral” shall mean all
right, title, interest, claims and demands of Borrower in and to the deposit account bearing Account Number 8800054866 maintained by Borrower with Silicon Valley Bank (the “Pledged Account”), together with all proceeds, increases
and products of the foregoing or replacements thereof or substitutions therefore. 
  
 The security interest herein granted shall constitute a first priority security interest upon the proper filing of one or more financing statements identifying the Collateral with the proper state and/or local authorities. 
  
 (b) After-Acquired Property. All Equipment which is financed through
Loans shall ipso facto, and without any further conveyance, assignment or act on the part of Borrower or Lender, become and be subject to the security interest herein granted as fully and completely as though specifically described
herein. The definition of the term “Equipment” shall be deemed amended on each Funding Date to incorporate all property financed with, or which will constitute Collateral for, the Loan advanced on such Funding Date. Any failure to formally
amend such definition shall not affect the grant by Borrower to Lender of the security interest in such Collateral pursuant to this Section 5.01. This Agreement and the other documents in connection herewith may be supplemented and amended
from time to time, as required by Lender, to reflect the additional Collateral subject to the security interest granted pursuant to this Section 5.01. 
  
 5.02. Duration of Security Interest . Subject to Section 5.06 herein, Lender’s security interest in the Collateral shall continue until
the payment in full and the satisfaction of all Obligations, whereupon such security interest shall terminate; provided, however, that if any item of Collateral is subject to an Event of Loss, then following the prepayment of the Loan
with respect to such item pursuant to Section 6.01(e), Lender shall release its security interest in such item of Collateral. Lender shall execute such further documents and take such further actions as may be necessary to effect the release
and/or termination contemplated by this Sections 5.02 and 5.06, including duly executing and delivering termination statements for filing in all relevant jurisdictions. 
  

 13 

 5.03. Possession of Equipment Collateral. So long as no Event of Default has occurred and is
continuing, Borrower shall remain in full possession, enjoyment and control of the Equipment Collateral (except only as may be otherwise required by Lender for perfection of its security interest therein) and to manage, operate and use the same and
each part thereof with the rights and franchises appertaining thereto; provided, however, that the possession, enjoyment, control and use of the Equipment Collateral shall at all times be subject to the observance and performance of
the terms of this Agreement. 
  
 5.04. Markings on the
Collateral. If requested at any time by Lender, Borrower shall place in a conspicuous location on each item of Collateral a notice (to be supplied by Lender) which reads as follows: 
  
 “GATX Ventures, Inc., Lienholder”. 
  
 Such notice shall not be removed (or if removed or damaged such notice shall be replaced) until the security interest in favor of Lender in
such item of Collateral is terminated pursuant to this Agreement. 
  
 5.05 Delivery of Additional Documentation Required. Borrower shall from time to time execute and deliver to Lender, at the request of Lender, all financing statements and other documents Lender may reasonably request, in form
satisfactory to Lender, to perfect and continue Lender’s perfected security interests in the Collateral and in order to consummate fully all of the transactions contemplated under the Loan Documents. 
  
 5.06 Release of Security Interest in Account Collateral. Lender shall
release its security interest in the Account Collateral on or after September 30, 2002 if (i) Borrower’s net income, as determined in accordance with GAAP and as shown in the financial statements delivered to Lender pursuant to this Agreement
is greater than Zero Dollars ($0.00) for one fiscal quarter, (ii) Borrower demonstrates to the reasonable satisfaction of Lender exercised in good faith that Borrower reasonably expects its net income to be greater than Zero Dollars ($0.00) on a
going forward basis, and (iii) no Event of Default has occurred and is continuing. 
  
 6.01. Affirmative Covenants. 
  
 (a) Payment of Taxes, etc. Borrower shall pay and discharge all taxes, assessments and governmental charges or levies imposed upon it or upon its income or profits, or upon any properties belonging to it, prior to the date on which
penalties attach thereto, and all lawful claims which, if unpaid, might become a Lien upon any of its properties; provided that there shall be no requirement to pay any such tax, assessment, charge, levy or claim (i) which is being contested
in good faith and by appropriate proceedings or which presents no risk of seizure, forfeiture, levy or other event which could jeopardize any Collateral and (ii) for which payment in full is bonded or reserved in Borrower’s financial
statements. 
  
 (b) Inspection Rights. Borrower shall, at
any reasonable time and from time to time, permit 
  

 14 

 Lender or any of its agents or representatives to inspect the Equipment, to examine and make copies of and abstracts from
the records and books of account of, and visit the properties of, Borrower and to discuss the affairs, finances and accounts of Borrower with any of its officers or directors relating in each case to Lender’s capacity as lender and secured
party hereunder and with respect to the Collateral. 
  
 (c)
Use; Maintenance. (i) Borrower shall, at its expense, make all necessary site preparations and cause the Equipment Collateral to be operated in accordance with any applicable manufacturer’s manuals or instructions. So long as no Default
or Event of Default has occurred and is continuing, Borrower shall have the right to quietly possess and use the Collateral as provided herein without interference by Lender. (ii) Borrower shall, at its expense, maintain the Equipment Collateral in
good condition, reasonable wear and tear excepted, and comply in all material respects with all laws, rules and regulations to which the use and operation of the Equipment Collateral may be or become subject. Such obligation shall extend to repair
and replacement of any partial loss or damage to the Equipment Collateral, regardless of the cause. If maintenance is mandated by manufacturer, Borrower shall obtain and keep in effect, at all times during the Term maintenance service contracts with
suppliers approved by Lender, which approval shall not be unreasonably withheld. All parts furnished in connection with such maintenance or repair shall immediately become part of the Equipment Collateral. All such maintenance, repair and
replacement services shall be immediately paid for and discharged by Borrower with the result that no Lien will attach to the Equipment Collateral. All parts or accessories attached to or made part of the Equipment Collateral shall be new,
fabricated or rebuilt and in any case shall be consistent with the applicable specifications, if any, prescribed by the manufacturer of the affected Equipment Collateral. 
  
 (d) Insurance. Unless such provisions are amended pursuant to the terms of any Loan Terms Schedule: 
  
 (i) Borrower shall, obtain and maintain for the Term, at its
own expense, (x) “all risk” insurance against loss or damage to the Equipment Collateral, (y) commercial general liability insurance (including contractual liability, products liability and completed operations coverages) reasonably
satisfactory to Lender, and (z) such other insurance against such other risks of loss and with such terms, as shall in each case be reasonably satisfactory to or reasonably required by Lender (as to carriers, amounts and otherwise). The amount of
the “all risk” insurance shall be the greater of (x) the replacement value of the Equipment Collateral (as new) or (y) the Loan Value of the Loan Amount applicable to each Loan. Such amounts shall be determined to Lender’s reasonable
satisfaction as of each anniversary date of this Agreement and the appropriate amount of coverage shall be put in effect on the next succeeding renewal or inception date of such insurance. 
  
 (ii) The deductible with respect to “all-risk”
insurance required by clause (x) above and product liability insurance required by clause (y) above shall not exceed $25,000; otherwise there shall be no deductible with respect to any insurance required to be maintained hereunder. The amount of
commercial general liability insurance (other than products liability coverage and completed operations insurance) required by clause (y) above shall be at least $4,000,000 per occurrence. The amount of the products liability and completed
operations insurance required by 
  

 15 

 clause (y) above shall be at least $5,000,000 per occurrence. Each “all risk” policy shall: (x) name Lender as
sole loss payee with respect to the Equipment, (y) provide for each insurer’s waiver of its right of subrogation against Lender, and (z) provide that such insurance (A) shall not be invalidated by any action of, or breach of warranty by,
Borrower of a provision of any of its insurance policies, and (B) shall waive set-off, counterclaim or offset against Lender. Each liability policy shall (w) name Lender as an additional insured and (x) provide that such insurance shall have
cross-liability and severability of interest endorsements (which shall not increase the aggregate policy limits of Borrower’s insurance). All insurance policies shall (y) provide that Borrower’s insurance shall be primary without a right
of contribution of Lender’s insurance, if any, or any obligation on the part of Lender to pay premiums of Borrower, and (z) shall contain a clause requiring the insurer to give Lender at least 30 days’ prior written notice of its
cancellation (other than cancellation for non-payment for which 10 days’ notice shall be sufficient). Borrower shall on or prior to the first Funding Date and prior to each policy renewal, furnish to Lender certificates of insurance or other
evidence satisfactory to Lender that such insurance coverage is in effect. 
  
 (e) Loss; Damage; Destruction and Seizure. (i) Borrower shall bear the risk of the Equipment Collateral being lost, stolen, destroyed, damaged or seized by a governmental authority for any reason whatsoever at
any time until the expiration or termination of the Term. (ii) Except as set forth in Section 6.01(e)(iii), if during the Term any item of Equipment is lost, stolen, destroyed, damaged or seized by a governmental authority for a period equal
to at least the remainder of the Term (an “Event of Loss”), then Lender shall receive from the proceeds of insurance maintained pursuant to Section 6.01(d), from any award paid by the seizing governmental authority or, to the
extent not received from the proceeds of insurance or award or both, from Borrower, on or before the Payment Date next succeeding such Event of Loss, an amount equal to the sum of (x) all accrued and unpaid Scheduled Payments with respect to such
Loan due prior to or on the next such Payment Date, (y) a prepayment in an amount equal to the Stipulated Loss Value of each affected item of Equipment Collateral and (z) all other sums, if any, that shall have become due and payable hereunder with
respect to such Loan, including interest at the Default Rate with respect to any past due amounts. On the date of receipt by Lender of the amount specified above with respect to each such item of Equipment Collateral subject to an Event of Loss, the
provisions of this Agreement shall terminate as to such Equipment Collateral. Any proceeds of insurance maintained by Borrower pursuant to Section 6.01(d) and received by Borrower shall be paid to Lender promptly upon their receipt by
Borrower. If any proceeds of insurance or awards received from governmental authorities are in excess of the amount owed under this Section 6.01(e), Lender shall promptly remit to Borrower the amount in excess of the amount owed to Lender.
(iii) So long as no Event of Default has occurred and is continuing, any proceeds of insurance maintained pursuant to Section 6.01(d) received by Lender or Borrower with respect to an item of Equipment Collateral the repair of which is
practicable shall, at the election of Borrower, be applied either to the repair or replacement of such Equipment Collateral or, upon Lender’s receipt of evidence of the repair or replacement of the Equipment Collateral reasonably satisfactory
to Lender, to the reimbursement of Borrower for the cost of such repair or replacement. All replacement parts and equipment acquired by Borrower in replacement of Equipment Collateral pursuant to this Section 6.01(e)(iii) shall immediately
become part of the Equipment Collateral upon acquisition by Borrower. Borrower shall take such actions and provide such documentation as may be reasonably requested by Lender to protect and preserve 
  

 16 

 Lender’s first priority security interest and otherwise to avoid any impairment of Lender’s rights under the
Operative Documents, in connection with such repair or replacement. In the event that any proceeds of insurance received by Lender are in excess of the amount required to repair and replace Equipment Collateral pursuant to this Section
6.01(e)(iii) and Lender has a first priority security interest in such repaired or replaced Equipment Collateral, then Lender shall promptly remit to Borrower the excess proceeds of insurance that Lender received with respect to such Equipment
Collateral. 
  
 (f) Equity Investment Right. Borrower shall
permit Lender, at Lender’s option, to purchase up to Three Hundred Thousand Dollars ($300,000) of Borrower’s equity securities in Borrower’s next private equity round on the same terms and conditions as the lead investor in such
private equity round. Borrower shall give Lender thirty (30) days notice of such round. 
  
 (g) Pledged Account. Borrower shall maintain at least Five Hundred Thousand Dollars ($500,000) in the Pledged Account at all times until Lender releases its security interest in the Pledged Account in
accordance with Section 5.06, and until such time Borrower: (1) shall not use the Pledged Account as a checking account or otherwise, and (2) covenants that Silicon Valley Bank shall have no applicable right of setoff or other Lien except as
set forth in Section 6 of the Account Control Agreement; provided, however, Borrower may withdraw interest accrued on the cash in the Pledged Account or have such interest automatically deposited into another account of Borrower so long as $500,000
is maintained in the Pledged Account pursuant to this Section and Section 5.06. In furtherance of Section 6.01(g)(2) herein, Borrower may request in writing on a quarterly basis that Lender deliver to Borrower an instruction letter
that Borrower will deliver to Silicon Valley Bank substantially in the form attached hereto as Exhibit E. So long as no Event of Default has occurred and is continuing, Lender shall deliver such letter to Borrower no later than five (5) business
days after receiving such request. 
  
 7.01. Negative
Covenants. So long as the Loans or other amounts hereunder remain outstanding, Borrower shall not: 
  
 (a) Name; Chief Executive Office. During the continuance of this Agreement, change its name, chief executive office or principal place of business
without thirty (30) days prior written notice to Lenders. 
  
 (b)
Extraordinary Transactions; Restructure. (i) Dispose of any material assets or assets in the aggregate material to Borrower or incur any indebtedness not in the ordinary and usual course of Borrower’s business; (ii) make or suffer any
material adverse change in Borrower’s financial condition or any material adverse change in Borrower’s operations; (iii) cause, permit, or suffer any material change in Borrower’s ownership by merger or otherwise, provided, however,
if Lender does not consent to such transaction (such consent at Lender’s sole discretion) then Borrower may prepay all of the Loans prior to or concurrently with such transaction in the amount set forth in Section 2.04(h); (iv) engage in
any business other than the business currently engaged in by Borrower or reasonably related thereto; or (v) suspend operation of Borrower’s business. 
  

 17 

 (c) Equipment Collateral Control. Subject to its rights under Section 5, (i) terminate,
waive or release any material right with respect to any Equipment Collateral or remove any item of Equipment Collateral from Borrower’s facility located at the address set forth on the cover page of this Agreement or the applicable Loan Terms
Schedule, provided however, that Equipment Collateral shall not (A) be located at more than three locations in the United States (other than Collateral that: (1) consists of computer and test equipment in the temporary possession of Borrower’s
employees or Borrower’s vendors in the ordinary course of business, (2) is temporarily located elsewhere for thirty (30) days or less, and (3) the aggregate original costs of such Collateral does not exceed $50,000), and (B) be located outside
of the United States, or (ii) affix or attach or permit to be affixed or attached to any item of Equipment Collateral any other item of property owned by Borrower or any other lender, lessor or financing party which is not readily identifiable or
separable without any damage to such item of Equipment Collateral, without Lender’s prior written consent. 
  
 (d) Liens. Create, incur, assume or suffer to exist any Lien of any kind upon the Collateral, whether now owned or hereafter acquired, except
Permitted Liens. 
  
 (e) Other Dispositions of Collateral.
Convey, sell, lease or otherwise dispose of all or any part of the Collateral to any Person, except for Equipment in which Lender shall have released its security interest pursuant to Section 5.02. 
  
 8.01. Closing. At the time of execution and delivery of this
Agreement, Borrower shall have duly executed and/or delivered to Lender the items set forth in Part I of Schedule 3. 
  
 8.02. Other Conditions. The obligation of Lender to make each Loan shall be subject to the execution and/or delivery to Lender of each of the items
set forth in Part I of Schedule 3 and the satisfaction of by Borrower of each condition set forth in Part II of Schedule 3. 
  
 8.03. Covenant to Deliver. Borrower agrees (not as a condition but as a covenant) to deliver to Lender each item required to be delivered to Lender
as a condition to each Loan, if such Loan is advanced. Borrower expressly agrees that the extension of such Loan prior to the receipt by Lender of any such item shall not constitute a waiver by Lender of Borrower’s obligation to deliver such
item. 
  
 9.01 Events of Default. An “Event of
Default” shall mean the occurrence of one or more of the following described events: 
  
 (a) Borrower shall (i) default in the payment of principal of, or interest on, or fail to make the Final Payment on any Loan within three (3) Business Days of when the same is due, or (ii) default in the payment of
any expense or other amount payable hereunder or thereunder for five (5) Business Days after receipt of written notice from Lender that the same is due; or 
  
 (b) any representation or warranty made herein or on a Funding Date by Borrower in any Operative Document, or any certificate or financial statement
furnished pursuant to the provisions of 
  

 18 

 any Operative Document, shall prove to have been false or misleading in any material respect as of the time made or
furnished; or 
  
 (c) Borrower shall default in the performance of
any covenant, agreement or obligation (other than a covenant, agreement or obligation referred to in Section 9.01(a) or Section 9.01(e)) contained in any Operative Document (other than the Warrant) and Borrower shall fail to cure
within thirty (30) days after the occurrence of such default, or 
  
 (d) Borrower shall have breached the terms of the Warrant; or. 
  
 (e) Borrower fails to maintain the insurance coverage required under Section 6.01(d) or breaches any provision of Section 7.01; or 
  
 (f) any Operative Document shall in any material respect ceases to be, or Borrower shall assert that any Operative Document is not, a legal, valid and
binding obligation of Borrower enforceable in accordance with its terms; or 
  
 (g) one or more events of default exist under any agreements of Borrower which consist of the failure to pay any Indebtedness at maturity in an aggregate amount in excess of one hundred thousand dollars ($100,000) or
which result in a right by such third party or parties, whether or not exercised, to accelerate the maturity of the Indebtedness of Borrower in an aggregate amount in excess of one hundred thousand dollars ($100,000) or one or more events of default
shall exist under any financing agreement with Lender or any of Lender’s affiliates; or 
  
 (h) a material impairment of the prospect of repayment of any portion of the Obligations owing to Lender or a material impairment of the value or priority of Lender’s security interests in the Collateral; or

  
 (i) any material portion of Borrower’s assets is
attached, seized, subjected to writ or distress warrant, or is levied upon, or comes into possession of any trustee, receiver or Person acting in a similar capacity and such attachment, seizure, writ or distress warrant or levy has not been removed,
discharged or rescinded within twenty (20) days, or if Borrower is enjoined, restrained, or in any way prevented by court order from continuing to conduct all or any material part of its business affairs, or if a judgment or other claim becomes a
lien or encumbrance upon any material part of its business affairs, or if a notice of lien, levy, or assessment is filed of record with respect to any of Borrower’s assets by the United States Government, or any department, agency or
instrumentality thereof, or by any state, county, municipal, or governmental agency, and the same is not paid within twenty (20) days after Borrower receives notice thereof, provided that none of the foregoing shall constitute an Event of Default
where such action or event is stayed or an adequate bond has been posted pending a good faith contesting by Borrower; or 
  
 (j) a proceeding shall have been instituted in a court of competent jurisdiction seeking a decree or order for relief in respect of Borrower in an
involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or for the appointment of a 
  

 19 

 receiver, liquidator, assignee, custodian, trustee (or similar official) of Borrower or for any substantial part of its
property, or for the winding-up or liquidation of its affairs, and such proceeding shall remain undismissed or unstayed and in effect for a period of sixty (60) consecutive days or such court shall enter a decree or order granting the relief sought
in such proceeding; or 
  
 (k) Borrower shall commence a voluntary
case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, shall consent to the entry of an order for relief in an involuntary case under any such law, or shall consent to the appointment of or taking
possession by a receiver, liquidator, assignee, trustee, custodian (or other similar official) of Borrower or for any substantial part of its property, or shall make a general assignment for the benefit of creditors, or shall fail generally to pay
its debts as they become due, or shall take any corporate action in furtherance of any of the foregoing. 
  
 9.02. Consequences of Event of Default. (a) If an Event of Default specified under clauses (a) through (i) of Section 9.01
shall occur and be continuing, Lender may (i) declare the Loan Value of the Loan Amount of each Loan and all other liabilities of Borrower hereunder and under the other Operative Documents to be immediately due and payable, without presentment,
demand, protest or further notice of any kind, all of which are hereby expressly waived, and (ii) terminate its commitment to make Loans hereunder and terminate any commitment to advance money or extend credit to or for the benefit of Borrower
pursuant to any other agreement or commitment extended by Lender to Borrower. (b) If an Event of Default specified under clause (j) or (k) of Section 9.01 shall occur, then immediately and without notice (i) the Loan Value of the Loan Amount
of each Loan and all other liabilities of Borrower hereunder and under the other Operative Documents shall automatically become due and payable, without presentment, demand, protest or notice of any kind, all of which are hereby expressly waived,
and (ii) Lender’s commitment hereunder to make the Loans and any other commitment of Lender to Borrower to advance money or extend credit pursuant to any other agreement or commitment shall be terminated. 
  
 9.03. Rights Regarding Collateral. Borrower agrees that when any Event
of Default has occurred and is continuing, Lender shall have the rights, options, duties and remedies of a secured party as permitted by law and, in addition to and without limiting the foregoing, Lender may exercise any one or more or all, and in
any order, of the remedies herein set forth, including the following: (a) Lender, personally or by agents or attorneys, shall have the right (subject to compliance with any applicable mandatory legal requirements) to require Borrower to assemble the
Collateral and make it available to Lender at a place designated by Lender or to take immediate possession of the Collateral, or any portion thereof, and for that purpose may pursue the same wherever it may be found, and may enter any of premises of
Borrower, with or without notice, demand, process of law or legal procedure, to the extent permitted by applicable law, and search for, take possession of, remove, keep and store the same, or use and operate or lease the same until sold; (b) Lender
may, if at the time such action may be lawful and always subject to compliance with any mandatory legal requirements, either with or without taking possession and either before or after taking possession, without instituting any legal proceedings
whatsoever, having first given notice of such sale by registered or certified mail to Borrower once at least ten (10) days prior to the date of 
  

 20 

 such sale, and having first given any other notice which may be required by law, sell and dispose of the Collateral, or
any part thereof, at a private sale or at public auction, to the highest bidder, in one lot as an entirety or in separate lots, and either for cash or on credit and on such terms as Lender may determine, and at any place (whether or not it be the
location of the Collateral or any part thereof) designated in the notice referred to above. To the extent permitted by applicable law, any such sale or sales may be adjourned from time to time by announcement at the time and place appointed for such
sale or sales, or for any such adjourned sale or sales, without further published notice, and Borrower, Lender or its successors or assigns as to the Loans, or of any interest therein, may bid and become the purchaser at any such sale; (c) Lender
may proceed to protect and enforce this Agreement and the other Operative Documents by suit or suits or proceedings in equity, at law or in bankruptcy, and whether for the specific performance of any covenant or agreement herein contained or in
execution or aid of any power herein granted; or for foreclosure hereunder, or for the appointment of a receiver or receivers for any real property security or any part thereof, or for the recovery of judgment for the Obligations or for the
enforcement of any other proper, legal or equitable remedy available under applicable law; (d) With respect to any of Borrower’s owned premises, Borrower hereby grants Lender a license to enter into possession of such premises and to occupy the
same, without charge, for up to one hundred twenty (120) days in order to exercise any of Lender’s rights or remedies provided herein, at law, in equity, or otherwise; and (e) Lender and its agents and any purchasers at or after foreclosure are
hereby granted an irrevocable, perpetual, fully paid, royalty-free license or other right, solely pursuant to the provisions of this Section 9.04; to use, without charge, Borrower’s intellectual property, including without limitation,
labels, patents, copyrights, rights of use of any name, trade secrets, trade names, trademarks, service marks, and advertising matter, or any property of a similar nature, now or at any time hereafter owned or acquired by Borrower or in which
Borrower now or at any time hereafter has any rights; provided, however, that such license shall only be exercisable in connection with the disposition of Collateral upon Lender’s exercise of its remedies hereunder. 
  
 9.04. Waiver by Borrower. Upon the occurrence of an Event of Default,
to the extent permitted by law, Borrower covenants that it will not at any time insist upon or plead, or in any manner whatsoever claim or take any benefit or advantage of, any stay or extension law now or at any time hereafter in force, nor claim,
take nor insist upon any benefit or advantage of or from any law now or hereafter in force providing for the valuation or appraisement of the Collateral or any part thereof prior to any sale or sales thereof to be made pursuant to any provision
herein contained, or to the decree, judgment or order of any court of competent jurisdiction; nor, after such sale or sales, claim or exercise any right under any statute now or hereafter made or enacted by any state or otherwise to redeem the
property so sold or any part thereof, and, to the full extent legally permitted, except as to rights expressly provided herein, hereby expressly waives for itself and on behalf of each and every Person, except decree or judgment creditors of
Borrower, acquiring any interest in or title to the Collateral or any part thereof subsequent to the date of this Agreement, all benefit and advantage of any such law or laws, and covenants that it will not invoke or utilize any such law or laws or
otherwise hinder, delay or impede the execution of any power herein granted and delegated to Lender, but will suffer and permit the execution of every such power as though no such power, law or laws had been made or enacted. 
  

 21 

 9.05. Effect of Sale. Any sale, whether under any power of sale available to Lender or by virtue
of judicial proceedings, shall operate to divest all right, title, interest, claim and demand whatsoever, either at law or in equity, of Borrower in and to the property sold, and shall be a perpetual bar, both at law and in equity, against Borrower,
its successors and assigns, and against any and all persons claiming the property sold or any part thereof under, by or through Borrower, its successors or assigns. 
  
 9.06. Application of Collateral Proceeds. The proceeds and/or avails of the Collateral, or any part thereof, and the
proceeds and the avails of any remedy hereunder (as well as any other amounts of any kind held by Lender at the time of, or received by Lender after, the occurrence of an Event of Default hereunder) shall be paid to and applied as follows: (a)
First, to the payment of reasonable costs and expenses, including all amounts expended to preserve the value of the Collateral, of foreclosure or suit, if any, and of such sale and the exercise of any other rights or remedies, and of all
proper fees, expenses, liability and advances, including reasonable legal expenses and attorneys’ fees, incurred or made hereunder by Lender; (b) Second, to the payment to Lender of the amount then owing or unpaid on the Loan for
Scheduled Payments and the Loan Value of the Loan Amount with respect to each Loan, and in case such proceeds shall be insufficient to pay in full the whole amount so due, owing or unpaid upon the Loans, then first, to the unpaid interest
thereon, second, to unpaid principal thereof and third to the remaining balance of the Loan Value of the Loan Amount with respect to each Loan; (c) Third, to the payment of other amounts then payable to Lender under any of the
Operative Documents; and (d) Fourth, to the payment of the surplus, if any, to Borrower, its successors and assigns, or to whomsoever may be lawfully entitled to receive the same. 
  
 9.07. Reinstatement of Rights. If Lender shall have proceeded to enforce any right under this Agreement or any other
Operative Document by foreclosure, sale, entry or otherwise, and such proceedings shall have been discontinued or abandoned for any reason or shall have been determined adversely, then and in every such case (unless otherwise ordered by a court of
competent jurisdiction), Lender shall be restored to its former position and rights hereunder with respect to the property subject to the security interest created under this Agreement. 
  
 10.01. Modifications, Amendments or Waivers. The provisions of any Operative Document may be modified, amended or
waived only by a written instrument signed by the parties thereto. 
  
 10.02. No Implied Waivers; Cumulative Remedies; Writing Required. No delay or failure of Lender in exercising any right, power or remedy hereunder shall affect or operate as a waiver thereof; nor shall any single or partial exercise
thereof or any abandonment or discontinuance of steps to enforce such a right, power or remedy preclude any further exercise thereof or of any other right, power or remedy. The rights and remedies hereunder of Lender are cumulative and not exclusive
of any rights or remedies which it would otherwise have. Any waiver, permit, consent or approval of any kind or character on the part of Lender of any breach or default under this Agreement or any such waiver of any provision or condition of this
Agreement must be in writing and shall be effective only in the specified instance and to the extent specifically set forth in such writing. 
  

 22 

 10.03. Expenses; Indemnification. Borrower agrees upon demand to pay or reimburse Lender for all
liabilities, obligations and reasonable out-of-pocket expenses, including reasonable fees and expenses of counsel for Lender, from time to time arising in connection with the enforcement or collection of sums due under the Operative Documents.
Borrower shall indemnify, reimburse and hold Lender, each of Lender’s partners, and each of their respective successors, assigns, agents, officers, directors, shareholders, servants, agents and employees (collectively, the “Indemnified
Parties”) harmless from and against all liabilities, losses, damages, actions, suits, demands, claims of any kind and nature (including claims relating to environmental discharge, cleanup or compliance), all costs and expenses whatsoever to
the extent they may be incurred or suffered by such indemnified party in connection therewith (including reasonable attorneys’ fees and expenses), fines, penalties (and other charges of applicable governmental authorities), licensing fees
relating to any item of Collateral, damage to or loss of use of property (including consequential or special damages to third parties or damages to Borrower’s property), or bodily injury to or death of any person (including any agent or
employee of Borrower) (each, a “Claim”), directly or indirectly relating to or arising out of the use of the proceeds of the Loans, including acquisition, use, ownership, operation, possession, control, storage, return or condition
of any item of Equipment financed by a Loan or constituting Collateral (regardless of whether such item of Equipment is at the time in the possession of Borrower), the falsity of any representation or warranty of Borrower or Borrower’s failure
to comply with the terms of this Agreement or any other Operative Document during the Term. The foregoing indemnity shall cover, without limitation, (i) any Claim in connection with a design or other defect (latent or patent) in any item of
Equipment financed by a Loan or constituting Collateral, (ii) any Claim for infringement of any patent, copyright, trademark or other intellectual property right, (iii) any Claim resulting from the presence on or under or the escape, seepage,
leakage, spillage, discharge, emission or release of any Hazardous Materials from any item of Equipment financed by a Loan or constituting Collateral, including any Claims asserted or arising under any Environmental Law, or (iv) any Claim for
negligence or strict or absolute liability in tort; provided, however, that Borrower shall not indemnify Lender or any Indemnified Party for any liability incurred by Lender or any Indemnified Party as a result of Lender’s or any
Indemnified Party’s gross negligence or willful misconduct. Such indemnities shall continue in full force and effect, notwithstanding the expiration or termination of this Agreement. Upon Lender’s written demand, Borrower shall assume and
diligently conduct, at its sole cost and expense, the entire defense of Lender, each of its partners, and each of their respective, agents, employees, directors, officers, shareholders, successors and assigns against any indemnified Claim described
in this Section 10.03. Borrower shall not settle or compromise any Claim against or involving Lender without first obtaining Lender’s written consent thereto, which consent shall not be unreasonably withheld. 
  
 10.04. Waivers. (a) Borrower shall give Lender written notice within
one (1) year of any responsible officer of Borrower obtaining knowledge of the occurrence of any claim or cause of action it believes it has, or may seek to assert to allege against Lender whether such claim is based in law or equity, arising under
or related to this Agreement or any of the other Operative Documents or to the transactions contemplated hereby or thereby, or any act or omission to act by Lender with respect hereto or thereto, and that if it shall fail to give such notice to
Lender with regard to any such 
  

 23 

 claim or cause of action, Borrower shall be deemed to have waived, and shall be forever barred from bringing or asserting
such claim or cause of action in any suit, action or proceeding in any court or before any governmental agency or authority or any arbitrator. (b) NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT OR ANYWHERE ELSE, BORROWER AGREES
THAT IT SHALL NOT SEEK FROM LENDER UNDER ANY THEORY OF LIABILITY (INCLUDING ANY THEORY IN TORTS), ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES 
  
 10.05. Notices; Payments. (a) All notices and other communications given to or made upon any party hereto in connection with this Agreement shall
be in writing (including telexed, telecopied or telegraphic communication) and mailed (by certified or registered mail), telexed, telegraphed, telecopied, sent by overnight courier or delivered to the respective parties, as follows: 
  

	 Borrower:
	 	 Atheros Communications, Inc.
 529 Almanor
Avenue
 Sunnyvale, California 94085
 Fax: (408)
773-9906
 Ph: (408) 773-5200

		
	 Lender:    
	 	 GATX VENTURES, INC.
 3687 Mt. Diablo Blvd.,
Suite 200
 Lafayette, California 94549
 Attn: Contract
Administration
 Fax: (925) 258-6020
 Ph: (925)
258-6000

  
 or in accordance with any subsequent
written direction from either party to the other. All such notices and other communications shall, except as otherwise expressly herein provided, be effective when received; or in the case of delivery by messenger or overnight delivery service, when
left at the appropriate address. 
  
 (b) Unless Lender specifies
otherwise in writing, all payments shall be made: 
  
 by check to: 
  

	 Bank of America
 P.O. Box 198592

Atlanta, Georgia 30384-8592
 Credit: GATX Capital
Corporation

  
 Or by
wire transfer to: 
  

	Bank of America

  

 24 

	 ABA No. 111000012
 Dallas, Texas
75202-2911
 Credit: GATX Capital Corporation
 Account No.
3750878673
 Reference: Atheros Communications, Inc. Invoice

  
 10.06.
Termination. This Agreement shall terminate on the latest Maturity Date; provided, however, that the termination of this Agreement shall not affect any of the rights and remedies of Lender hereunder (including, without
limitation, the security interests granted to Lender), it being understood and agreed that all such rights and remedies shall continue in full force and effect until payment of all amounts owed to Lender under or in connection with the Operative
Documents, whether on account of principal, interest, fees or otherwise. 
  
 10.07. Severability. If any provision of any Operative Document is held invalid or unenforceable to any extent or in any application, the remainder of such Operative Document and all other Operative Documents,
or the application of such provision to different Persons or circumstances or in different jurisdictions, shall not be affected thereby. 
  
 10.08. Survival. All representations, warranties, covenants and agreements of Borrower contained herein or made in writing in connection herewith
shall survive the execution and delivery of the Operative Documents, the making of Loans hereunder, and the granting of security. 
  
 10.09. Governing Law. This Agreement, the other Operative Documents and the rights and obligations of the parties hereto and thereto shall be
governed by and construed and enforced in accordance with the laws of the State of California. Any action to enforce this Agreement against Borrower may be brought in California or, with regard to Collateral, may also be brought wherever such
Collateral is located. 
  
 10.10. Relationship of Parties.
Borrower and Lender acknowledge, understand and agree that the relationship between the Borrower and Lender is, and at all time shall remain solely that of a borrower and lender. Lender shall not under any circumstances be construed to be a partner
or joint venturer of Borrower or any of its Affiliates; nor shall Lender under any circumstances be deemed to be in a relationship of confidence or trust or a fiduciary relationship with Borrower or any of its Affiliates, or to owe any fiduciary
duty to Borrower or any of its Affiliates. Lender does not undertake or assume any responsibility or duty to Borrower or any of its Affiliates to select, review, inspect, supervise, pass judgment upon or otherwise inform the Borrower or any of its
Affiliates of any matter in connection with its or their Property, any Collateral held by any Lender or the operations of Borrower or any of its Affiliates. Borrower and each of its Affiliates shall rely entirely on their own judgment with respect
to such matters, and any review, inspection, supervision, exercise of judgment or supply of information undertaken or assumed by Lender in connection with such matters is solely for the protection of Lender and neither Borrower nor any Affiliate is
entitled to rely thereon. 
  
 10.11. Successors and
Assigns. This Agreement and the other Operative Documents shall 
  

 25 

 be binding upon and inure to the benefit of Lender, Borrower and their respective successors and permitted assigns,
except that Borrower may not assign or transfer its rights hereunder or any interest herein without the prior written consent of Lender. Lender may assign its interests or sell to any other financial entity (a “Participant”)
participation interests in Lender’s rights under this Agreement and the other Operative Documents. Lender may disclose the Operative Documents and any other financial or other information relating to Borrower or any Subsidiary to any potential
Participant, provided that such Participant agrees to protect the confidentiality of such documents and information using the same measures that it uses to protect its own confidential information. 
  
 10.12. Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto on separate counterparts, each of which, when so executed and delivered, shall be an original, but all such counterparts shall together constitute one and the same instrument. 
  
 10.13. Further Assurances; Power of Attorney. Borrower will, at its
own expense, from time to time do, execute, acknowledge and deliver all and every further acts, deeds, conveyances, transfers and assurances, and all financing and continuation statements and similar notices, reasonably necessary or proper for the
perfection of the security interest being herein provided for in the Collateral, whether now owned or hereafter acquired. Borrower does hereby irrevocably appoint Lender, the true and lawful attorney-in-fact of Borrower with full power of
substitution, for it and in its name to execute any UCC financing statements or UCC financing statement amendments as to Collateral in any applicable jurisdiction, and generally to use its name in the exercise of all powers hereby conferred on
Lender with full power of substitution. The power and authority hereby given and granted to Lender shall be deemed coupled with an interest and not revocable by any party. 
  
 10.14. Power of Attorney Upon Default. Borrower does hereby irrevocably appoint Lender (which appointment is coupled
with an interest), the true and lawful attorney-in-fact of Borrower with full power of substitution, for it and in its name (a) to perform (but Lender shall not be obligated to and shall incur no liability to Borrower or any third party for failure
to perform) any act which Borrower is obligated by this Agreement to perform, (b) to ask, demand, collect, receive, receipt for, sue for, compound and give acquittance for any and all rents, issues, profits, avails, distributions, income, payment
draws and other sums in which a security interest is granted under Section 5.01 with full power to settle, adjust or compromise any claim thereunder as fully as if Lender were Borrower itself, (c) to receive payment of and to endorse the name
of Borrower to any items of Collateral (including checks, drafts and other orders for the payment of money) that come into Lender’s possession or under Lender’s control, (d) to make all demands, consents and waivers, or take any other
action with respect to, the Collateral, (e) in Lender’s discretion, to file any claim or take any other action or institute proceedings, either in its own name or in the name of Borrower or otherwise, which Lender may reasonably deem necessary
or appropriate to protect and preserve the right, title and interest of Lender in and to the Collateral, and (f) to otherwise act with respect thereto as though Lender were the outright owner of the Collateral; provided, however, that
the power of attorney herein granted shall be exercisable only upon the occurrence and during the continuation of an Event of Default. Borrower agrees to reimburse Lender upon demand for all reasonable costs and expenses, including attorneys’
fees and expenses, which Lender may incur while acting as 
  

 26 

 Borrower’s attorney in fact hereunder, all of which costs and expenses are included within the Obligations.

  
 10.15. Confidentiality. All information (other than
periodic reports filed by Borrower with the Securities and Exchange Commission) disclosed by Borrower to Lender in writing or through inspection pursuant to this Agreement shall be considered confidential. Lender agrees to use the same degree of
care to safeguard and prevent disclosure of such confidential information as Lender uses with its own confidential information, but in any event no less than a reasonable degree of care. Lender shall not disclose such information to any third party
(other than Lender’s or Lender’s partner’s attorneys and auditors subject to the same confidentiality obligation set forth herein) and shall use such information only for purposes of evaluation of its investment in Borrower and the
exercise of Lender’s rights and the enforcement of their remedies under this Agreement and the other Operative Agreements. The obligations of confidentiality shall not apply to any information that (a) was known to the public prior to
disclosure by Borrower under this Agreement, (b) becomes known to the public through no fault of Lender, (c) is disclosed to Lender by a third party having a legal right to make such disclosure, or (d) is independently developed by Lender.

  

 27 

 IN WITNESS WHEREOF, the parties hereto, by their officers thereunto duly authorized, have executed this
Agreement as of the day and year first above written. 
  

	ATHEROS COMMUNICATIONS, INC.
		
	By:	 	 
	 	

	Name:	 	 
	 	

	Title:	 	 
	 	

	
	GATX VENTURES, INC.
		
	By:	 	 /s/    Robert D. Pomeroy, Jr.

	 	

	Name:	 	 Robert D. Pomeroy, Jr.

	 	

	Title:	 	 Senior Vice President

	 	

  

 28 

 IN WITNESS WHEREOF, the parties hereto, by their officers thereunto duly authorized, have executed this
Agreement as of the day and year first above written. 
  

	ATHEROS COMMUNICATIONS, INC.
		
	By:	 	 /s/    Richard A. Redelfs

	 	

	Name:	 	 Richard A. Redelfs

	 	

	Title:	 	 Pres. & CEO

	 	

	
	GATX VENTURES, INC.
		
	By:	 	 
	 	

	Name:	 	 
	 	

	Title:	 	 
	 	

  

 29 

 SCHEDULES 
  
 1 Loan Terms Schedule 
 2 Disclosure Schedule

 3 Conditions Precedent 
  
 EXHIBITS 
  
 A Service Provider’s Consent 
 B Landlord Consent 
 C Warrant 
 D Form of Legal Opinion

 E Form of Instruction Letter 
  

 30 

 SCHEDULE 1 
  
 LOAN TERMS SCHEDULE NO. 
  
 This Loan Terms Schedule No.      (this “Schedule”), dated as of
                , 200  , is part of the Loan and Security Agreement, dated as of September     , 2001 (the “Loan Agreement”),
between GATX VENTURES, INC. (“Lender”) and ATHEROS COMMUNICATIONS, INC. (“Borrower”) and is incorporated therein by reference. The terms used in this Schedule shall have the meanings given to them in the Loan Agreement unless
otherwise defined herein. 
  

	1.	The following terms are applicable to the Loan described by this Schedule: 

  
 Loan Funding Date:                 , 200  

  
 Initial Loan Amount:
$             
  
 Loan Rate:         % 
  
 Loan Factor:         % 
  
 Original Scheduled Payment Amount*:
$                 
  
 Date of Second Scheduled Payment:                 ,
200   
 [First and last Scheduled Payment due on Funding Date.] 
  
 Number of payments: 33 
  

	2.	Borrower shall pay to Lender an Interim Payment in the amount of $            . The Interim Payment is due and payable on
the Loan Funding Date. 

  

	3.	The Final Payment with respect to the Loan described in this Loan Terms Schedule is equal to six percent (6%) of the Loan Amount then in effect, and payable on the Maturity Date of
the Loan,                     , 200   (assuming the Maturity Date is the last Business Day of the Repayment Period applicable to the Loan).

  

	4.	Borrower certifies that the proceeds of the Loan requested hereby will be used for the purposes described in Section 2.02(a) of the Loan Agreement and that the Equipment
being financed with or which serves as Collateral for such Loan is listed on Annex A hereto, which Annex A shall automatically be deemed to be included in and amend the definition of “Collateral” and “Equipment
Collateral” under the Loan Agreement as if such Annex A were set forth in full therein, and the Loan Agreement is hereby ratified, approved and confirmed. Borrower hereby confirms that it has granted and does further grant to Lender a
security interest in such Collateral and Equipment Collateral including the Equipment specifically described on Annex A hereto. 

	*	The amount of each Scheduled Payment will change if the Loan Amount changes. 

	5.	The Loan proceeds should be disbursed as follows: 

  

	 Disbursement from Lender:
	  	 	 	  	 	  	 
	 Loan Amount
	  	$	                	  	 	  	 
	 Less:
	  	 	 	  	 	  	 
	 Interim Payment
	  	$	 	  	 	  	 
	 First and last payment in Advance
	  	$	 	  	 	  	 
				
	 Net Proceeds due from Lender:
	  	$	 	  	 	  	 

  

	6.	The proceeds of the Loan should be wire transferred to Borrower as follows: 

  

	 Bank
Name:                                       
                                        
                                        
                                     
 

	
	 Bank
Address:                                      
                                        
                                        
                                   

	
	 Account
No.:                                       
                                        
                                        
                                    

	
	 Routing No. (if
any):                                       
                                        
                                        
                     

	
	 For Account
of:                                       
                                        
                                        
                               

	
	 Attention:                                     
                                        
                                        
                                        
    

  

	7.	Borrower certifies that (a) the foregoing information is true and correct; (b) except as set forth in the Schedule of Exceptions attached hereto as Annex C, the representations and
warranties made by Borrower in Section 3 of the Loan Agreement and in the other Operative Documents are true and correct on the date hereof; (c) Borrower is in compliance with the covenants and the requirements contained in Sections 4, 6
and 7 of the Loan Agreement; and (d) all conditions contained in Section 8 of the Loan Agreement to the making of the Loan described in this Loan Terms Schedule have been satisfied or waived. 

  

	8.	This Loan Terms Schedule is being delivered in California. 

  

	9.	This Loan Terms Schedule may be executed in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together
constitute one and the same instrument. 

  

	9.	All payments with respect to the Loan described on this Schedule shall be made to Lender as set forth in Section 10.05(b) of the Loan Agreement, unless otherwise indicated in
a writing signed by Lender. 

 This Loan Terms Schedule is hereby duly executed by the parties hereto as of the date first written
above. 
  

	GATX VENTURES, INC.
		
	By	 	 
	 	

		
	Name	 	 
	 	

		
	Title	 	 
	 	

	
	ATHEROS COMMUNICATIONS, INC.
		
	By	 	 
	 	

		
	Name	 	 
	 	

		
	Title	 	 
	 	

	 Borrower’s address for notices:

		
	 	 	 
	

		
	 	 	 
	

	
	 Attention:                                     
                                        
      

  

 ANNEX A 
 TO 
 LOAN TERMS SCHEDULE 
  
 The Equipment being financed with or which serves as collateral for the Loan described on the Loan Terms Schedule to which
this Annex A is attached is listed below. 
  
 Equipment
Collateral 

 ANNEX B 
 TO 
 LOAN TERMS SCHEDULE 
  
 Loan Values 
  

	 Payment No.

	  	Payment Date

	  	Loan Value*

	 1
	  	 	  	 
	 2
	  	 	  	 
	 3
	  	 	  	 
	 4
	  	 	  	 
	 ...
	  	 	  	 
	 32
	  	 	  	 
	 33
	  	 	  	 

  

	 	•	Each Loan Value percentage assumes payment of all Scheduled Payments due on or before the indicated Payment Date. 

 ANNEX C 
 TO 
 LOAN TERMS SCHEDULE 
  
 Schedule of Exceptions 

 SCHEDULE 2 
 DISCLOSURE SCHEDULE 
  
 The following are
exceptions to the representations and warranties of Atheros Communications, Inc. (referred herein as “Atheros” or the “Company”) contained in the Equipment Loan and Security Agreement by and among Atheros and GATX Ventures, Inc.
(the “Lender”) (the “Loan Agreement”) and should be considered an integral part of the Loan Agreement. The section numbers in this Disclosure Schedule correspond to the section numbers in the Loan Agreement; provided, however,
that any information disclosed in this Loan Agreement under any section number or in any schedule provided by Atheros shall be deemed disclosed and incorporated into any other sections or schedule under the Loan Agreement where such disclosure would
be appropriate, whether or not repeated under any section number where such disclosure might be deemed appropriate so long as it is clear from the express language of the disclosure that such disclosure is appropriate under such section where such
disclosure has not been repeated. Any terms defined in the Loan Agreement shall have the same meaning when used in this Disclosure Schedule as when used in the Loan Agreement, unless the context otherwise requires. Notwithstanding any materiality
qualifications in any of Atheros’ representations or warranties in the Loan Agreement, for administrative ease, certain items have been included herein which are not considered by Atheros to be material to the business, assets, results of
operations, prospects or affairs of Atheros. The inclusion of any item hereunder shall not be deemed to be an admission by Atheros that such item is material to the business, assets, results of operations, prospects or affairs of Atheros, nor shall
it be deemed an admission of an obligation or liability to any third party. 
  
 Section 3.01(e) 
  
 The Company does not
currently have authorized shares of Series D Preferred Stock to allow the exercise of the Warrant into shares of the Company’s Series D Preferred Stock in accordance with the terms of the Warrant. 
  
 Section 3.01(f) 
  
 In September 2000, Wi-LAN Inc. (“Wi-LAN”) approached the Company with respect to Wi-LAN’s United States
Patent No. 5,282,222 and Canadian Patent No. 2,064,975. Wi-LAN alleges any user or manufacturer of wideband OFDM products, particularly those in compliance with the IEEE 802.11(a) standard should take these patents into account. The Company
researched the issues related to Wi-LAN’s offer, including the validity and breadth of the above-mentioned patents’ claims, and has determined no license is needed to commercialize the Atheros products or to implement the IEEE802.11(a)
standard. In sum, the Company strongly believes that there is no merit to Wi-LAN’s allegations and no need to license the above-mentioned patents. 
  
 Section 3.01(i) 
  
 The name of the Company’s Chief Executive Officer is Richard A. Redelfs. The Company’s Tax EIN Number is 77-0485570 and the Company’s
Corporate Number is 2897679. The Collateral and all records and files regarding the Collateral will be kept at the Company’s principal headquarters located at 529 Almanor Avenue, Sunnyvale, California 94085. 

 SCHEDULE 3 
  
 CONDITIONS PRECEDENT 
  
 PART I: 
  
 At the time of execution and delivery of this Agreement, there shall also have been duly executed and delivered to Lender: 
  

	 	(a)	The Warrant issued to Lender; 

  

	 	(b)	Copies, certified by the Secretary, Assistant Secretary or Chief Financial Officer of Borrower as of the closing date, of Borrower’s charter documents and bylaws and of all
documents evidencing corporate action taken by Borrower authorizing the execution, delivery and performance of the Operative Documents to which Borrower is a party, including an incumbency certificate, in form and substance satisfactory to Lender
and its counsel; 

  

	 	(c)	Good standing certificate from Borrower’s state of incorporation and the state in which Borrower’s principal place of business is located, together with certificates of
the applicable governmental authorities that Borrower is in compliance with the franchise tax laws of each such state, each dated as of a recent date; 

  

	 	(d)	Evidence of the insurance coverage required by Section 6.01(d) of this Agreement; 

  

	 	(e)	A legal opinion as to matters covered in Exhibit D, in form and substance satisfactory to Lender and its counsel; 

  

	 	(f)	All necessary consents of shareholders and other third parties with respect to the execution, delivery and performance of this Agreement, the Warrant and the other Operative
Documents; 

  

	 	(g)	Delivery of the Facility Fee; 

  

	 	(h)	An Account Control Agreement for the Account Collateral, in the form reasonably satisfactory to Lender; 

  

	 	(i)	All other documents as Lender shall have reasonably requested. 

  
 PART II 
  
 On or prior to the Funding Date of each Loan, each of the items set forth in Part I of this Schedule 3 shall have been delivered to Lender and the following conditions shall have been satisfied or waived by
Lender: 
  

	 	(a)	Borrower shall have provided to Lender, with respect to the Equipment which is intended to be financed with the proceeds of the Loan to be made on such Funding

	 	 	Date, such invoices, bills of sale, receipts, agreements, cancelled checks, and other documents as Lender shall reasonably request to evidence the ownership by Borrower of, the
payment in full of the purchase price of such Equipment, each in form and substance reasonably satisfactory to Lender; and, except with the prior written consent of Lender which shall not be unreasonably withheld, all such Equipment shall be
Eligible Equipment and acceptable to Lender as to value and type; 

  

	 	(b)	Lender shall have received duly executed Form UCC-1 Financing Statements or other documents and Borrower shall have taken such actions, if any, as Lender shall reasonably determine
are necessary or desirable to perfect and protect its security interest in the Collateral; 

  

	 	(c)	Borrower shall have provided to Lender such documents, instruments and agreements, including amendments to previously filed financing statements terminating “after acquired
property” clauses which encompass the Equipment, as Lender shall reasonably request to evidence the perfection and priority of the security interests granted to Lender pursuant to Section 5; 

  

	 	(d)	No Event of Default or Default shall have occurred and be continuing; 

  

	 	(e)	A Landlord Consent, from the owner of each building in which Collateral is anticipated to be located; 

  

	 	(f)	A Service Provider’s Consent, from each third party service provider at which Collateral is anticipated to be located; 

  

	 	(g)	Estoppel Letter in form satisfactory to Lender from any existing lender with blanket lien on equipment that acknowledges that Lender has a first priority security interest in the
Collateral and such existing lender terminates its Lien in the Collateral; 

  

	 	(h)	Borrower shall have duly executed and delivered to Lender a Loan Terms Schedule prepared by Lender; 

  

	 	(i)	In Lender’s sole discretion, there shall not have occurred any material adverse change in the general affairs, management, results of operations, condition (financial or
otherwise) or prospects of Borrower, whether or not arising from transactions in the ordinary course of business, and there shall not have occurred since the date first written on the cover page of this Agreement any material adverse deviation by
Borrower from the business plan of Borrower presented to and not disapproved by Lender; 

  
  

	 	(j)	The representations and warranties contained in this Agreement and the other Operative Documents to which Borrower is a party, as modified by any Schedule of Exceptions attached to
the applicable Loan Terms Schedule as Annex C, shall be true and correct in all material respects as if made on such Funding Date and the items listed on such Schedule of Exceptions shall be reasonably acceptable to Lender; 

 

	 	(k)	Each of the Operative Documents remains in full force and effect; 

	 	(l)	Except with the prior consent of Lender which shall not be unreasonably withheld, (i) the amount of the requested Loan shall not be less than the Minimum Funding Amount; (ii) the
amount of the requested Loan when aggregated with the amounts of all Loans previously funded shall not exceed the Credit Amount, and (iii) the funding of the requested Loan when aggregated with the number of previous fundings of Loans shall not
exceed the Maximum Number of Fundings; 

  

	 	(m)	The Funding Date of the requested Loan shall not be later than the Commitment Termination Date; and 

  

	 	(n)	Any other condition set forth in the applicable Loan Terms Schedule. 

 EXHIBIT A 
  
 SERVICE PROVIDER’S WAIVER AND CONSENT 
  
 THIS SERVICE PROVIDER’S WAIVER AND CONSENT (this “Waiver”), dated as of
                , 200    , is executed by and between
                 (“Service Provider”) and GATX VENTURES, INC. (“Lender”) pursuant to that certain Equipment Loan and Security Agreement dated as of
September     , 2001 (the “Loan Agreement”) between Lender and ATHEROS COMMUNICATIONS, INC. (“Borrower”). 
  
 RECITALS 
  
 A. Service provider is the lessee of real property commonly known as                  the (“Premises”). Service Provider
provides certain services to                  and in connection with such provision of services Service Provider will maintain on the Premises certain equipment (the
“Equipment”) which is collateral security for certain loans made by Lender to Borrower. 
  
 B. It is a condition to the making of such loans that Borrower deliver to Lender this Service Provider’s Waiver and Consent. 
  
 AGREEMENT 
  
 NOW, THEREFORE, in consideration of the above recitals and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Service
Provider and Lender hereby agree as follows: 
  
 1. Waiver and Consent.
Service Provider hereby consents to the location of the Equipment on the Premises and does irrevocably waive, disclaim and relinquish and assign to Lender any and all rights to impose, receive assert or enforce any lien, encumbrance, charge security
interest, ownership interest, claim or demand of any kind against or involving the Equipment, whether arising by common law, statute or consensually. Service Provider further agrees that (a) neither the Equipment nor any item thereof shall become
part of, or otherwise be or become a fixture attached to, the Premises, notwithstanding the manner of the Equipment’s annexation, the Equipment’s adaptability to the uses and purposes for which the Premises are used, and the intentions of
the party making the annexation; (b) the Equipment (or any item thereof) may be repossessed by Lender; and (c) in connection with such repossession or otherwise, Lender, and any of its agents and employees, may subject to Service Provider’s
Rules and Regulations that require among other things, that Lender be accompanied at all times by a representative of Service Provider, enter upon the premises for the purposes of preparing for transport, disassembling, dismantling, loading and/or
removing the Equipment (or any item thereof). 
  
 2. Miscellaneous. This
Waiver and all rights hereby granted to Lender hereunder shall remain in effect so long as there are any obligations owing by Borrower under the Loan Agreement or any present or future agreement between Borrower and Lender which involves the
Equipment. All the terms and provisions of this Waiver shall be binding on and inure to the benefit of the respective successors and assigns of Service Provider and Lender. The rights and benefits of this Waiver may be assigned or transferred by
Lender or to third parties who may become 

 a lender directly or indirectly to Borrower. This Waiver shall be governed by and construed in accordance with the laws
of the State of California. 
  
 IN WITNESS WHEREOF, Service
Provider and Lender have executed this Waiver as of the date and year first written above. 
  

	 LENDER:
	 	 	 	 SERVICE PROVIDER:

			
	 GATX VENTURES, INC.
	 	 	 	 
					
	By:	 	 	 	 	 	By:	 	 
	 	
	 	 	 	 	

					
	Name:	 	 	 	 	 	Name:	 	 
	 	
	 	 	 	 	

					
	Title:	 	 	 	 	 	Title:	 	 
	 	
	 	 	 	 	

 EXHIBIT B 
  
 LANDLORD CONSENT 
  
 RECORDING REQUESTED BY 
 AND WHEN RECORDED RETURN TO: 
 GATX Ventures, Inc. 
 3687 Mount Diablo Blvd., Suite 200 
 Lafayette, CA 94549 
  
 CONSENT
TO REMOVAL OF PERSONAL PROPERTY 
  
 KNOW ALL PERSONS BY THESE PRESENTS:

  
 (a) The undersigned has an interest as owner and landlord in the following
described real property (the “Real Property”): 
  
 That
certain real property in the County of [                ], State of [                ],
described as: 
  
 SEE ATTACHMENT 1 ATTACHED HERETO FOR FULL LEGAL DESCRIPTION,

 commonly known as [street address]. 
  
 (b) Atheros Communications, Inc., a Delaware corporation (“Borrower”), has entered into or will enter into an Equipment Loan and Security Agreement with GATX
Ventures, Inc. (collectively, “Lender”) dated as of September     , 2001 (as amended and supplemented from time to time, the “Loan Agreement”). 
  
 (c) Lender, as a condition to entering into the Loan Agreement, requires that the undersigned consent to the removal by Lender of the
equipment and other assets covered by the Loan Agreement (hereinafter called “Equipment”) from the Real Property, no matter how it is affixed thereto, and to the other matters set forth below. 
  
 NOW, THEREFORE, for good and sufficient consideration, receipt of which is
hereby acknowledged, the undersigned consents to the placing of the Equipment on the Real Property, and agrees with Lender as follows: 
  
 1. The undersigned waives and releases each and every right which undersigned now has, under laws of the State of
[                ] or by virtue of the lease for the Real Property now in effect, to levy or distrain upon for rent, in arrears, in advance or both, or to claim or
assert title to the Equipment that is already on said Real Property, or may hereafter be delivered or installed thereon. 
  
 2. The Equipment shall be considered to be personal property and shall not be considered part of the Real Property regardless of whether or by what means it is or may
become attached or affixed to the Real Property. 
  
 3. The undersigned will
permit Lender, or its agent or representative, to enter upon the Real 

 Property for the purpose of exercising any right they may have under the terms of the Loan Agreement or otherwise,
including, without limitation, the right to remove the Equipment; provided, however, that if Lender, in removing the Equipment damages any improvements of the undersigned on the Real Property, Lender will, at its expense, cause same to he repaired.

  
 4. This agreement shall be binding upon the heirs, successors and assigns of
the undersigned and shall inure to the benefit of Lender and its respective successors and assigns. 
  
 IN WITNESS WHEREOF, the undersigned has executed this instrument at                         ,
this          day of                 , 2001. 
  

	 
	

	
	OWNER/LESSOR
		
	By:	 	 
	 	

		
	Title:	 	 
	 	

  
 The foregoing Consent must be
acknowledged before a Notary Public. 

 ATTACHMENT 1 
  
 LEGAL DESCRIPTION OF PREMISES 
  

[To Be Provided By Tenant] 

			
	State of	 	                                      
                                      	 	)
			
	 	 	 	 	)
			
	County of	 	                                      
                                      	 	)

  
 On
                , 200   before me, the undersigned, personally appeared
                        , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s)
whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the instrument. 
  
 WITNESS my hand and official seal. 
  
 Signature
                                        
                          (Seal) 
  

			
	State of	 	                                      
                                      	 	)
			
	 	 	 	 	)
			
	County of	 	                                      
                                      	 	)

  
 On
                , 200   before me, the undersigned, personally appeared
                        , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s)
whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the instrument. 
  
 WITNESS my hand and official seal. 
  
 Signature
                                        
                          (Seal) 

 EXHIBIT C 
  
 WARRANT 

 EXHIBIT D 
  

ITEMS TO BE COVERED BY OPINION OF BORROWER’S COUNSEL 
  
 The opinions hereafter expressed are subject to the following qualifications: 
  
 (a) We assume the genuineness of all signatures on original documents, the authenticity and completeness of all documents submitted to us as originals, the conformity to
original documents of all copies submitted to us and the due execution and delivery of all documents (except as to due execution and delivery by the Company) where due execution and delivery are a prerequisite to the effectiveness thereof;

  
 (b) We express no opinion as to the effect of applicable bankruptcy,
insolvency, reorganization, moratorium or other similar federal or state laws affecting the rights of creditors; 
  
 (c) We express no opinion as to the effect of rules of law governing specific performance, injunctive relief or other equitable remedies (regardless of whether any such
remedy is considered in a proceeding at law or in equity). 
  
 Based on and
subject to the foregoing, we are of the opinion that: 
  
 1. Borrower is a
corporation, duly organized, validly existing and in good standing under the laws of the State of Delaware, and is duly qualified and authorized to do business in [all material foreign jurisdictions and where Collateral is located]. 
  
 2. Borrower has the full corporate power, authority and legal right, and has obtained all
necessary approvals, consents and given all notices to execute and deliver the Loan Documents and perform the terms thereof. 
  
 3. The Operative Documents have been duly authorized, executed and delivered by Borrower and constitute valid, legal and binding agreements, enforceable against Borrower
in accordance with their terms. 
  
 4. To our knowledge, there is no action, suit,
audit, investigation, proceeding or patent claim pending or threatened against Borrower in any court or before any governmental commission, agency, board or authority which might have a material adverse effect on the business, condition or
operations of Borrower or the ability of Borrower to perform its obligations under the Operative Documents. 
  
 10. The Shares issuable pursuant to exercise or conversion of the Warrants have been duly authorized and reserved for issuance by Borrower and, when issued in accordance with the terms thereof, will be validly issued,
fully paid and nonassessable. 
  
 11. The shares of Common Stock issuable upon
conversion of the Shares have been duly authorized and reserved and, when issued in accordance with the terms of Borrower’s Certificate of Incorporation, as amended, will be validly issued, fully paid and nonassessable. 
  

 1 

 7. The rights, preferences, privileges and restrictions granted to or imposed upon Borrower’s Series B Preferred
Stock and the holders thereof are as set forth in Borrower’s Certificate of Incorporation, as amended to the Date of Grant, a true and complete copy of which has been delivered to Lenders. 
  
 8. The execution, delivery and performance of the Operative Documents are not, and the
issuance of the Shares upon exercise of the Warrants in accordance with the terms thereof will not be, inconsistent with Borrower’s Certificate of Incorporation, as amended, or Bylaws, do not and will not contravene any law, governmental rule
or regulation, judgment or order applicable to Borrower, and do not and will not conflict with or contravene any provision of, or constitute a default under, any indenture, mortgage, contract or other agreement or instrument of which Borrower is a
party or by which it is bound or require the consent or approval of, the giving of notice to, the registration or filing with or the taking of any action in respect of or by, any federal, state or local government authority or agency or other
person, except for the filing of notices pursuant to federal and state securities laws, which filings will be effected by the time required thereby. 
  

 2 

 EXHIBIT E 
  

[DATE] 
  
 Silicon Valley Bank 
 3003 Tasman Drive 
 Santa Clara, CA 95054 
 Attn: Meg Piper 
  
 Re: Deposit Account Number 8800054866 (the “Deposit Account”) 
  
 Dear Ms. Piper: 
  
 Pursuant to the Notice of Exclusive Control dated September     , 2001 (the “Notice”) that was delivered to you pursuant to the Deposit Account Control Agreement (the “Control
Agreement”), dated September     , 2001, by and among Silicon Valley Bank (“Bank”), Atheros Communications, Inc. (“Customer”), and GATX Ventures, Inc. (“Creditor”), Creditor hereby instructs you
to deposit all interest earned on the Deposit Account to date into Customer’s deposit account with Bank, account number 3300100813. 
  
 Please contact the undersigned at 925-258-6000 with any questions. 
  
 Please acknowledge your receipt of this letter by faxing your signature to the undersigned at 925-258-6020. 
  

	 GATX Ventures, Inc. 

		
	By:	 	 
	 	

	 	 	 
	 Name:
	 	 
	 	

	 Title:
	 	 
	 	

  
 Acknowledged and
Received: 
  

	 Atheros Communications, Inc.
	 	 	 	 Silicon Valley Bank

					
	By:	 	 	 	 	 	By:	 	 
	 	
	 	 	 	 	

	Name:	 	 	 	 	 	 Name:
	 	 
	 	
	 	 	 	 	

	Title:	 	 	 	 	 	 Title:
	 	 
	 	
	 	 	 	 	

  

 3

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