Document:

EX-10.1

 Exhibit 10.1 

SECURITIES PURCHASE AGREEMENT 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
		
	 ARTICLE I DEFINITIONS
	  	 	1	  
			
	 1.1
	 	 Definitions
	  	 	1	  
		
	 ARTICLE II PURCHASE AND SALE
	  	 	7	  
			
	 2.1
	 	 Closing
	  	 	7	  
	 2.2
	 	 Closing Deliveries
	  	 	7	  
		
	 ARTICLE III REPRESENTATIONS AND WARRANTIES
	  	 	8	  
			
	 3.1
	 	 Representations and Warranties of the Company
	  	 	8	  
	 3.2
	 	 Representations, Warranties and Covenants of the Investors
	  	 	21	  
		
	 ARTICLE IV ADDITIONAL AGREEMENTS
	  	 	23	  
			
	 4.1
	 	 Transfer Restrictions
	  	 	23	  
	 4.2
	 	 Furnishing of Information
	  	 	24	  
	 4.3
	 	 Integration
	  	 	24	  
	 4.4
	 	 Form D; Blue Sky Filings
	  	 	24	  
	 4.5
	 	 Public Disclosure
	  	 	24	  
	 4.6
	 	 Acknowledgement
	  	 	25	  
	 4.7
	 	 Commercially Reasonable Efforts
	  	 	25	  
	 4.8
	 	 Use of Proceeds
	  	 	25	  
	 4.9
	 	 Listing of Common Stock
	  	 	25	  
	 4.10
	 	 Section 16
	  	 	26	  
	 4.11
	 	 Rights Offering
	  	 	26	  
	 4.12
	 	 Indemnification of Investors
	  	 	26	  
	 4.13
	 	 Board Observer
	  	 	27	  
		
	 ARTICLE V CONDITIONS
	  	 	28	  
			
	 5.1
	 	 Conditions to the Obligations of Each Party to Perform its Obligations under this Agreement
	  	 	28	  
	 5.2
	 	 Additional Conditions to the Obligations of the Company
	  	 	29	  
	 5.3
	 	 Additional Conditions to the Obligations of the Investors
	  	 	29	  
		
	 ARTICLE VI REGISTRATION RIGHTS
	  	 	31	  
			
	 6.1
	 	 Certain Definitions
	  	 	31	  
	 6.2
	 	 Mandatory Registration
	  	 	31	  
	 6.3
	 	 Piggyback Registration
	  	 	34	  
	 6.4
	 	 Expenses of Registration
	  	 	36	  
	 6.5
	 	 Obligations of the Company
	  	 	36	  
	 6.6
	 	 Other Registration Rights
	  	 	39	  
	 6.7
	 	 Indemnification
	  	 	39	  
	 6.8
	 	 Information by ALU Part
	  	 	42	  
	 6.9
	 	 Transfer of Registration Rights
	  	 	42	  
	 6.10
	 	 Rule 144 Reporting
	  	 	42	  
	 6.11
	 	 Termination of Registration Rights
	  	 	42	  

  
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	 ARTICLE VII MISCELLANEOUS
	  	 	42	  
			
	 7.1
	 	 Termination
	  	 	42	  
	 7.2
	 	 Fees and Expenses
	  	 	43	  
	 7.3
	 	 Entire Agreement
	  	 	43	  
	 7.4
	 	 Amendments; Waivers
	  	 	43	  
	 7.5
	 	 Notices
	  	 	43	  
	 7.6
	 	 Construction
	  	 	44	  
	 7.7
	 	 Successors and Assigns
	  	 	44	  
	 7.8
	 	 Persons Entitled to Benefit of Agreement
	  	 	44	  
	 7.9
	 	 Governing Law; Venue; Waiver of Jury Trial
	  	 	44	  
	 7.10
	 	 Execution
	  	 	45	  
	 7.11
	 	 Survival
	  	 	45	  
	 7.12
	 	 Severability
	  	 	45	  
	 7.13
	 	 Replacement of Certificate
	  	 	45	  
	 7.14
	 	 Remedies
	  	 	45	  
	 7.15
	 	 Adjustments in Share Numbers and Prices
	  	 	46	  
	 7.16
	 	 Independent Nature of Investors’ Obligations and Rights
	  	 	46	  

  
 ii 

 SECURITIES PURCHASE AGREEMENT 

THIS SECURITIES PURCHASE AGREEMENT (this “Agreement”) is dated as of September 29, 2014, by and between Ikanos
Communications, Inc., a Delaware corporation (the “Company”), Alcatel-Lucent Participations, S.A (“ALU Part”), and Tallwood III, L.P., a Delaware limited partnership (“Tallwood III”), Tallwood III
Partners, L.P., a Delaware limited partnership (“Tallwood III Partners”), and Tallwood III Associates, L.P., a Delaware limited partnership (“Tallwood III Associates”) (collectively, the “TWVC
Funds”). ALU Part and the TWVC Funds are together hereinafter referred to as the “Investors” and each individually, an “Investor”). 

BACKGROUND 
 A. The
Company and the Investors are executing and delivering this Agreement in reliance upon the exemption from registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506
of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the Securities Act. 

B. The Investors wish to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, an aggregate
of thirty nine million six hundred thirty four thousand one hundred forty four (39,634,144) shares (the “Common Shares”) of common stock, par value $0.001 per share, of the Company (“Common Stock”). 

C. Concurrently with the execution and delivery of this Agreement, the Company, the TWVC Funds and Tallwood III Annex, L.P. are
amending that certain Stockholder Agreement dated as of April 21, 2009 by and between the Company, the TWVC Funds and Tallwood III Annex, L.P. by entering into an Amended and Restated Stockholder Agreement (the “Stockholder
Agreement”).  
 D. Concurrently with the execution and delivery of this Agreement, the Company is entering into a
Standby Purchase Agreement substantially in the form attached hereto as Exhibit A (the “TWVC Standby Purchase Agreement”), pursuant to which the TWVC Funds will agree to purchase up to twenty seven million four hundred
thirty nine thousand twenty three (27,439,023) shares of Common Stock resulting from any unexercised subscription rights in a rights offering (the “Rights Offering”) to be conducted by the Company.  

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the
receipt and adequacy of which are hereby acknowledged, the Company and the Investors agree as follows: 
 ARTICLE I 

DEFINITIONS 
 1.1
Definitions. In addition to the terms defined elsewhere in this Agreement, the following terms have the meanings indicated: 

“Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is
controlled by or is under common control with a Person, as such terms are used in and construed under Rule 144 under the Securities Act. 

  
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 “Agreement” has the meaning set forth in the Preamble. 

“Alcatel-Lucent Loan Agreement” means the Loan and Security Agreement, dated as of September 29, 2014, by and between
Alcatel-Lucent USA and the Company. 
 “ALU Part Observer” has the meaning set forth in Section 4.13. 

“Alcatel-Lucent USA” means Alcatel-Lucent USA, Inc., a Delaware corporation. 

“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in the City of New York are
authorized or required by law to remain closed. 
 “Capitalization Date” means September 26, 2014. 

“Closing” means the closing of the purchase and sale of the Common Shares pursuant to Section 2.1. 

“Closing Date” means the date and time of the Closing and shall be the date and time that is mutually agreed to by the
Company and the Investors, but no later than three Business Days following the satisfaction or waiver of the conditions to the obligations of the parties hereto in Article V. 

“Code” means the Internal Revenue Code of 1986, as amended. 

“Common Shares” has the meaning set forth in the Preamble. 

“Common Stock” has the meaning set forth in the Preamble. 

“Company” has the meaning set forth in the Preamble. 

“Company Board” means the board of directors of the Company. 

“Company Capital Stock” means Common Stock, Company Preferred Stock and any other shares of capital stock, voting securities
or other ownership interest, if any, of the Company. 
 “Company Charter Documents” means the certificate of incorporation
and bylaws of the Company, each as amended to date. 
 “Company ESPP” means the Company’s Amended and Restated 2004
Employee Stock Purchase Plan. 
 “Company Options” means any options to purchase shares of Common Stock outstanding under
any of the Company Stock Plans. 

  
 2 

 “Company Plan” means (i) any and all “employee benefit
plans” (within the meaning of Section 3(3) of ERISA, and (ii) any other employee benefit or compensation plans, policies or agreements, including any bonus, incentive, stock-based compensation, deferred compensation, supplemental
executive retirement, employment, termination, severance, retention, non-competition, compensation or change in control arrangements to which the Company or any Company Subsidiary are a party or which are
sponsored by the Company or any Company Subsidiary for the benefit of any current or former director or officer of the Company or any Company Subsidiary. 

“Company Preferred Stock” means shares of preferred stock, par value $0.001 per share, of the Company. 

“Company Restricted Stock” means any restricted stock outstanding under any of the Company Stock Plans. 

“Company Restricted Stock Units” means any restricted stock units for Common Stock outstanding under any of the
Company Stock Plans. 
 “Company Stock Plans” means (i) the Company’s 1999 Stock Plan, as amended,
(ii) the Company’s 2004 Equity Incentive Plan, as amended, (iii) the Company ESPP, (iv) the Dorados 2004 Amended and Restated Stock Option Plan, as amended, (v) the Company’s Notice and Grant of Stock Options and Stock
Option Agreement for Omid Tahernia, and (vi) the Company’s 2014 Stock Incentive Plan. 
 “Company
Stockholders” means holders of shares of Common Stock in their respective capacities as such. 
 “Company
Subsidiary” means any direct or indirect Subsidiary of the Company. 
 “Contingent Obligation” has
the meaning set forth in Section 3.1(y). 
 “Contract” means any written, oral or other agreement,
contract, subcontract, settlement agreement, lease, sublease, instrument, note, bond, mortgage, indenture, warranty, purchase order, license, sublicense, assignment or other legally binding instrument, commitment, arrangement or understanding of any
kind or character. 
 “Copyrights” has the meaning set forth in the definition of Intellectual Property
Rights. 
 “DGCL” means the General Corporation Law of the State of Delaware. 

“Eligible Market” means any of the New York Stock Exchange, the American Stock Exchange, The Nasdaq Global Select
Market, The Nasdaq Global Market or The Nasdaq Capital Market. 
 “Employee” means any current or former
employees of the Company or the Company Subsidiaries. 
 “Environmental Laws” has the meaning set forth in
Section 3.1(bb). 

  
 3 

 “ERISA” means the Employee Retirement Income Security Act of 1974, as
amended. 
 “ERISA Affiliate” means each Company Subsidiary and any other person or entity under common
control with the Company or any Company Subsidiaries within the meaning of Section 414(b), (c), (m) or (o) of the Code and the regulations issued thereunder. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“FINRA” means the Financial Industry Regulatory Authority, Inc. 

“GAAP” has the meaning set forth in Section 3.1(g). 

“Governmental Entity” means any supranational, national, state, municipal, local or foreign government, any
instrumentality, subdivision, court, administrative agency or commission or other governmental authority or instrumentality. 

“Hazardous Materials” has the meaning set forth in Section 3.1(bb). 

“knowledge of the Company,” “knowledge” or “the Company’s knowledge” means with
respect to any matter in question, the actual knowledge after discussions with employees responsible for the applicable subject matter of the matter in question of the Chief Executive Officer, the Chief Financial Officer, General Counsel,
Controller, the Senior Vice President and General Manager, the Vice President of Operations and Corporate Quality, the Vice President of Worldwide Sales and the Vice President of Marketing of the Company. 

“Indebtedness” has the meaning set forth in Section 3.1(y). 

“Insider” means any Investor that is a director, executive officer, other officer of the Company or a beneficial owner of 20%
or more of the Company’s outstanding voting equity prior to the Closing Date. 
 “Insolvent” has the meaning
set forth in Section 3.1(h)(ii).  
 “Investor Party” has the meaning set forth in Section
4.12. 
 “Investors” has the meaning set forth in the Preamble. 

“Leased Real Property” means all of the premises currently leased, subleased or licensed by or from the Company or its
Subsidiaries. 
 “Legal Requirements” means any federal, state, local, municipal, foreign or other law,
statute, constitution, principle of common law, resolution, ordinance, code, order, edict, decree, rule, regulation, ruling or requirement issued, enacted, adopted, promulgated, implemented or otherwise put into effect by or under the authority of
any Governmental Entity. 
 “Liabilities” means any liability, obligation or commitment of any kind (whether
accrued, absolute, contingent, matured, unmatured or otherwise). 

  
 4 

 “Liens” means any material pledges, liens, charges, encumbrances and
security interests of any kind or nature whatsoever, other than Permitted Liens. 
 “Material Adverse Effect”
means any result, occurrence, change, event, circumstance, fact or effect (each, an “Effect”) that, individually or in the aggregate with any such other Effects (regardless of whether or not such Effect constitutes a breach of the
representations and warranties made by the Company in this Agreement), is or is reasonably likely to be materially adverse to the business, results of operations, condition (financial or otherwise), assets or prospects of the Company and the Company
Subsidiaries, taken as a whole, provided that in determining whether a Material Adverse Effect has occurred, there shall be excluded any Effect on the Company and the Company Subsidiaries relating to or arising in connection with
(i) changes in Legal Requirements or the adoption or amendment of financial accounting standards by the Financial Accounting Standards Board (provided that such conditions do not have a materially disproportionate impact on the Company
and the Company Subsidiaries, taken as a whole), (ii) the declaration by the United States of a national emergency or war, or the occurrence of any other calamity or crisis, in each case, arising after the date hereof (including any act of
terrorism) (provided that such conditions do not have a materially disproportionate impact on the Company and the Company Subsidiaries, taken as a whole), (iii) general business or economic conditions (provided that such
conditions do not have a materially disproportionate impact on the Company and the Company Subsidiaries, taken as a whole), (iv) conditions generally affecting the industry in which the Company and the Company Subsidiaries operate
(provided that such conditions do not have a materially disproportionate impact on the Company and the Company Subsidiaries, taken as a whole), (v) any failure by the Company to meet any internal projections or analyst estimates (but not
the underlying reasons for the failure to meet any internal projections or analyst estimates), and (vi) any action taken by the Company at the written request of the Investors or that the Investors consent to in writing. 

“Material Permits” has the meaning set forth in Section 3.1(u). 

“Order” has the meaning set forth in Section 5.1(a). 

“Permitted Liens” means (i) Liens disclosed on the consolidated balance sheet of such Person included in the most
recent annual or quarterly report filed by such Person with the SEC prior to the date of this Agreement; (ii) Liens for Taxes, either not yet delinquent or which are being contested in good faith by appropriate proceedings and, in each case,
for which appropriate reserves have been established in accordance with GAAP; (iii) Liens of carriers, warehousemen, mechanics and materialmen and other like Liens arising in the ordinary course of business consistent with past practice for
sums not yet due and payable and which are not material to the Company’s business; (iv) pledges or deposits to secure obligations under workers’ compensation laws or similar legislation or to secure public or statutory obligations;
(v) pledges and deposits to secure the performance of bids, trade contracts, leases, surety and appeal bonds, performance bonds and other obligations of a similar nature, in each case in the ordinary course of business consistent with past
practice; and (vi) Liens that do not materially interfere with the value or the current and continued use or operation of the property subject thereto and Liens against the landlord’s or owner’s interest in any Leased Real Property,
except to the extent caused by the Company or any of the Company Subsidiaries. 

  
 5 

 “Person” means any individual or corporation, partnership, trust,
incorporated or unincorporated association, joint venture, limited liability company, or joint stock company. 

“Preemptive Rights” has the meaning set forth in Section 3.1(e). 

“Purchase Price” has the meaning set forth in Section 2.1. 

“Regulation D” has the meaning set forth in the Preamble. 

“Rights Offering” has the meaning set forth in the Preamble. 

“Rule 144” means Rule 144 promulgated by the SEC pursuant to the Securities Act, as such Rules may be amended from time to
time, or any similar rule or regulation adopted by the SEC having substantially the same effect as such Rule. 
 “Rule
506” has the meaning set forth in Section 3.1(o).  
 “SEC” has the meaning set forth in
the Preamble. 
 “SEC Reports” has the meaning set forth in Section 3.1(g). 

“Securities Act” has the meaning set forth in the Preamble. 

“Short Sales” has the meaning set forth in Section 3.2(k).  

“Stockholder Agreement” has the meaning set forth in the Preamble. 

“Subsidiary” means with respect to any Person (i) a corporation of which fifty percent (50%) or more of
the combined voting power of the outstanding voting stock of which is owned, directly or indirectly, by such Person or by one of more other Subsidiaries of such Person or by such Person and one or more other Subsidiaries thereof; (ii) a
partnership of which such Person, or one or more other Subsidiaries of such Person or such Person and one or more other Subsidiaries thereof, directly or indirectly, is the general partner and has the power to direct the policies, management and
affairs of such partnership; (iii) a limited liability company of which such Person or one or more other Subsidiaries of such Person or such Person and one or more other Subsidiaries thereof, directly or indirectly, is the managing member and
has the power to direct the policies, management and affairs of such company; or (iv) any other Person (other than a corporation, partnership or limited liability company) in which such Person, or one or more other Subsidiaries of such Person
or such Person and one or more other Subsidiaries thereof, directly or indirectly, has at least a majority ownership and power to direct the policies, management and affairs thereof. 

“Subsidiary Charter Documents” means the certificate of incorporation and bylaws, or like organizational documents of
each of the Company Subsidiaries.  
 “Tax” means any and all U.S. federal, state, local and non-U.S. taxes,
including taxes based upon or measured by gross receipts, income, profits, sales, use and occupation, and value added, ad valorem, transfer, franchise, withholding, payroll, recapture, employment, social

  
 6 

 
security, unemployment, disability, excise, real property, personal property, alternative or add-on minimum or estimated tax or other tax of any kind whatsoever, together with all interest,
penalties and additions imposed with respect to such amounts, whether disputed or not. 
 “Tax Returns” means U.S.
federal, state, local and non-U.S. returns, estimates, information statements and reports (including amendments thereto) relating to any and all Taxes. 

“Trading Day” means (i) any day on which the Common Stock is listed or quoted or traded on its primary Trading
Market, (ii) if the Common Stock is not then listed or quoted or traded on its primary Trading Market, any date on which the Common Stock is listed or quoted or traded on any other Eligible Market (or any respective successor thereto), or
(iii) if trading ceases to occur on any Eligible Market (or any respective successor thereto), any Business Day. 

“Trading Market” means The Nasdaq Capital Market or any other Eligible Market or any national securities exchange,
market or trading or quotation facility on which the Common Stock is then listed or quoted. 
 “Transaction
Documents” means this Agreement, the schedules and exhibits attached hereto, the Stockholder Agreement and the TWVC Standby Purchase Agreement.  

“Transfer Agent” means American Stock Transfer & Trust Company or any successor transfer agent for the
Company. 
 “TWVC Standby Purchase Agreement” has the meaning set forth in the Preamble. 

ARTICLE II 
 PURCHASE AND SALE

 2.1 Closing. Subject to the terms and conditions set forth in this Agreement, at the Closing the Company shall issue and sell to
the Investors, and the Investors shall purchase from the Company, the Common Shares at an aggregate purchase price of sixteen million two hundred fifty thousand nine hundred ($16,250,000) (the “Purchase Price”), with the number of
Common Shares and the amount of the Purchase Price as set forth opposite each Investor’s name on Exhibit B hereto. The date and time of the Closing shall be 9:00 a.m., Pacific Time, or such other time as may be mutually agreed upon
by the Company and the Investors, on the Closing Date. The Closing shall take place at the offices of the Company’s counsel in Palo Alto, California. 

2.2 Closing Deliveries. 

(a) At the Closing, the Company shall deliver or cause to be delivered to each Investor a stock certificate evidencing such
number of Common Shares as set forth opposite such Investor’s name on Exhibit B hereto, registered in the name of such Investor. 

(b) At the Closing, each Investor shall deliver or cause to be delivered to the Company the amount of the Purchase Price set
forth opposite such Investor’s name on Exhibit B hereto under the heading “Purchase Price” in United States dollars and in immediately available funds, by wire transfer to an account designated in writing to the Investors by
the Company at least three Business Days prior to the Closing Date. 

  
 7 

 ARTICLE III 

REPRESENTATIONS AND WARRANTIES 

3.1 Representations and Warranties of the Company. The Company hereby represents and warrants to the Investors as of the date hereof
and as of the Closing Date (except for the representations and warranties that speak as of a specific date, which shall be made as of such date) as follows: 

(a) Subsidiaries. The Company has no subsidiaries other than those listed on Schedule 3.1(a) hereto and
the Company does not own or have any right or obligation (by law, contract or otherwise) to make any investment or otherwise acquire, directly or indirectly, any outstanding capital stock of, or other equity interest in, any Person. The Company
owns, directly or indirectly, all of the capital stock or comparable equity interests of each Company Subsidiary free and clear of any Lien and all the issued and outstanding shares of capital stock or comparable equity interest of each Company
Subsidiary are duly authorized, validly issued and are fully paid, non-assessable and free of Preemptive Rights. 

(b) Organization and Qualification. Each of the Company and the Company Subsidiaries is an entity duly organized,
validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (except, in the case of good standing, for entities organized under the laws of any jurisdiction that does not recognize such concept),
with the requisite corporate power and authority to own and use its properties and assets and to carry on its business as currently conducted. The Company has made available to the Investors a true and correct copy of the Company Charter Documents
and Subsidiary Charter Documents, and each such instrument is in full force and effect. Neither the Company nor any Company Subsidiary is in violation of any of the provisions of its Company Charter Documents or Subsidiary Charter Documents, as the
case may be. The Company and the Company Subsidiaries are duly qualified to do business and are in good standing (except for entities organized under the laws of any jurisdiction that does not recognize such a concept) as a foreign corporation or
other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would not have or
reasonably be expected to result in a Material Adverse Effect. 
 (c) Authorization; Enforcement. 

(i) The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by each of the Transaction Documents to which it is a party and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of each of the Transaction Documents to which it is a party by the Company and the
consummation by it of the transactions contemplated hereby and thereby have 

  
 8 

 
been duly authorized by all necessary corporate action on the part of the Company and no further consent or action is required by the Company, the Company Board or the Company Stockholders. Each
of the Transaction Documents to which it is a party has been (or upon delivery will be) duly executed by the Company and is, or when delivered in accordance with the terms hereof, will constitute, the valid and binding obligation of the Company
enforceable against the Company in accordance with its terms, except as may be limited by (A) applicable bankruptcy, insolvency, reorganization or other laws of general application relating to or affecting the enforcement of creditors rights
generally, and (B) the effect of rules of law governing the availability of specific performance and other equitable remedies. 

(ii) At meetings duly called and held of the Company Board and a duly constituted special committee of the Company Board (the
“Special Committee”), prior to the execution of this Agreement, at which all directors of the Company or committee members, as the case may be, except as set forth on Schedule 3.1 (c), were present and voting in favor,
the Company Board or the Special Committee duly adopted resolutions (A) declaring that this Agreement, the other Transaction Documents, the issuance and sale of the Common Shares as provided herein and the other transactions contemplated hereby
and thereby are advisable and in the best interests of the Company Stockholders, (B) approving the Transaction Documents and the transactions contemplated hereby and thereby and (C) taking all actions necessary so that the restrictions on
business combination and stockholder vote requirements contained in Section 203 of the DGCL will not apply with respect to or as a result of the Transaction Documents and the transactions contemplated hereby and thereby. No other “control
share acquisition,” “fair price,” “moratorium” or other anti-takeover law applies to the Transaction Documents and the transactions contemplated hereby and thereby. 

(d) No Conflicts; Required Filings and Consents. 

(i) The execution, delivery and performance of the Transaction Documents to which it is a party by the Company and the
consummation by the Company of the transactions contemplated hereby and thereby do not, and will not, (A) conflict with or violate any provision of the Company Charter Documents or Subsidiary Charter Documents, (B) result in any breach of,
conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, materially affect the rights or obligations of the Company or any Company Subsidiary under, materially alter the rights or
obligations of any third party under, give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, or result in the creation of a Lien on any of the properties or assets of the
Company or a Company Subsidiary pursuant to, any Contract to which the Company or any Company Subsidiary is a party or by which any property or asset of the Company or any Company Subsidiary is bound, or affected or (C) assuming that all
consents, filings, approvals, authorizations and other actions as described herein have been obtained or made, result in a violation of any Legal 

  
 9 

 
Requirement or Order to which the Company or a Company Subsidiary is subject (including, assuming the accuracy of the representations and warranties of the Investors set forth in
Section 3.2 hereof, federal and state securities laws and regulations and the rules and regulations of any self-regulatory organization to which the Company or its securities are subject, including all applicable Trading Markets), or by
which any property or asset of the Company or a Company Subsidiary is bound or affected. 
 (ii) No consent, approval, Order
or authorization of, or registration, declaration or filing with any Governmental Entity is required to be obtained or made by the Company in connection with the execution and delivery of the Transaction Documents, the performance by the Company of
the Transaction Documents or the transactions contemplated hereby and thereby, except for such consents, approvals, Orders, authorizations, registrations, declarations and filings as may be required under applicable federal, foreign and state
securities (or related) laws, the rules and regulations of any self-regulatory organization to which the Company or its securities are subject, including all applicable Trading Markets. 

(e) Preemptive Rights. The Common Shares are duly authorized and, when issued and paid for in accordance with the
Transaction Documents, will be duly and validly issued, fully paid and non-assessable, free and clear of all Liens and will not be subject to preemptive or similar rights (“Preemptive Rights”). 

(f) Capitalization. 

(i) The authorized capital stock of the Company consists of 200,000,000 shares of Common Stock and 1,000,000 shares of Company
Preferred Stock. As of the Capitalization Date, (A) 99,283,662 shares of Common Stock were issued and outstanding, (B) 572,764 shares of Common Stock were held by the Company as treasury shares, and (C) one share of Company Preferred
Stock was issued and outstanding. Except as set forth on Schedule 3.1(f), since the close of business on the Capitalization Date, the Company has not issued or authorized the issuance of any shares of capital stock of the Company other than
pursuant to the exercise or vesting of equity awards granted under a Company Stock Plan or pursuant to the purchase of shares under the Company ESPP. No shares of Common Stock are owned or held by any Subsidiary of the Company. All outstanding
shares of Company Common Stock are, and all shares of Company Common Stock which may be issued as contemplated or permitted by this Agreement or under a Company Stock Plan will be, when issued pursuant to the respective terms thereof, duly
authorized, validly issued, fully paid, non-assessable and not subject to any Preemptive Rights. 
 (ii) (B) As of the
Capitalization Date, the Company has reserved 25,160,005 shares of Common Stock for issuance under the Company Stock Plans. As of the Capitalization Date, there were outstanding Company Options to purchase 18,181,486 shares of Common Stock with
a weighted average exercise 

  
 10 

 
price of $1.33, of which Company Options to purchase 11,188,747 shares of Common Stock were exercisable and Company Options to purchase 11,188,747 shares of Common Stock were vested. As of the
Capitalization Date, there were 6,978,519 Company Restricted Stock Units and no shares of Company Restricted Stock. 
 (iii)
Except as set forth in this Section 3.1(f), there are no outstanding (A) shares of Company Capital Stock, (B) securities of the Company convertible into or exchangeable for shares of Company Capital Stock and
(C) securities, options, warrants, rights, contracts, understandings or similar obligations to which the Company is bound obligating the Company to issue, deliver or sell, or cause to be issued, delivered or sold, additional shares of Company
Capital Stock or voting debt or any securities convertible into such securities, or obligating the Company to issue, grant, extend or enter into any such security, option, warrant, right, contract, understanding or obligation. Other than the Company
Restricted Stock and Company Restricted Stock Units set forth in this Section 3.1(f), there are no outstanding restricted shares, restricted stock units, stock appreciation rights or similar securities or rights that provide economic
benefits based, directly or indirectly, on the value or price of, any Company Capital Stock. 
 (iv) All outstanding shares
of Common Stock, all outstanding Company Options, Company Restricted Stock and Company Restricted Stock Units have been issued and granted in compliance in all material respects with all applicable Legal Requirements. There are not any outstanding
Contracts obligating the Company to repurchase, redeem or otherwise acquire any shares of Company Capital Stock. Except as set forth in the Stockholder Agreement, as amended on the date hereof, there are no voting agreements, voting trusts,
irrevocable proxies, rights plans or anti-takeover plans with respect to any shares of Company Capital Stock. Except as set forth in the Stockholder Agreement, as amended on the date hereof, there are no contractual obligations or commitments of any
character restricting the transfer of, or requiring the registration for sale of, any shares of Company Capital Stock. No further approval or authorization of any stockholder or the board of directors is required for the issuance and sale of the
Common Shares. 
 (g) SEC Reports; Financial Statements. 

(i) Since January 1, 2013, the Company has timely filed all registration statements, reports, schedules, forms, statements
and other documents required to be filed by it under the Securities Act and the Exchange Act. Such registration statements, reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities Act and
the Exchange Act, together with any materials filed or furnished by the Company, whether or not any such documents were required, being collectively referred to herein as the “SEC Reports” and, together with this Agreement, the
“Disclosure Materials”. As of their respective filing dates, the SEC Reports filed by the Company complied, or will comply (if filed subsequent to the date hereof and prior to the 

  
 11 

 
Closing Date), in all material respects with the requirements of the Securities Act, the Exchange Act and the rules and regulations of the SEC promulgated thereunder, and any successor rules or
regulations thereto, and none of the SEC Reports, when filed by the Company, contained, or will contain (if filed subsequent to the date hereof and prior to the Closing Date), any untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case except to the extent corrected by an SEC Report filed subsequently
but prior to the date hereof (or, in the case of SEC Reports filed subsequent to the date hereof but prior to the Closing Date, except to the extent corrected by an SEC Report filed prior to the Closing Date). The financial statements of the Company
included in the SEC Reports comply, or will comply (if included in SEC Reports filed subsequent to the date hereof and prior to the Closing Date), in all material respects with applicable accounting requirements and the rules and regulations of the
SEC with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved
(“GAAP”), except as may be otherwise specified in such financial statements, the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP or may be condensed or summary statements,
and fairly present in all material respects the consolidated financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the
case of unaudited statements, to normal, immaterial, year-end audit adjustments. 
 (ii) There are no outstanding or
unresolved comments received by the Company from the SEC. 
 (h) No Changes; Undisclosed Liabilities. 

(i) Since the date of the latest audited financial statements included within the SEC Reports, (i) there has been no
event, occurrence or development that has had or that would reasonably be expected to result in a Material Adverse Effect, (ii) the Company and the Company Subsidiaries have not incurred any material Liabilities other than (A) trade
payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s consolidated financial statements pursuant to GAAP or required to be
disclosed in filings made with the SEC, (iii) the Company has not altered its method of accounting or changed its auditors, except as disclosed in its SEC Reports, (iv) other than as contemplated by the Rights Offering, the Company has not
declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of Company Capital Stock and (v) the Company has not issued any equity
securities to any officer, director or Affiliate of the Company or any Company Subsidiary. 

  
 12 

 (ii) The Company has not taken any steps to seek protection pursuant to any
bankruptcy law nor does the Company have any knowledge or reason to believe that its creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact which would reasonably lead a creditor to do so. The Company is
not as of the date hereof, and after giving effect to the transactions contemplated hereby to occur at the Closing, will not be Insolvent. For purposes of this Section 3.1(h), “Insolvent” means (i) the present fair
saleable value of the Company’s assets is less than the amount required to pay the Company’s total Indebtedness, (ii) the Company is unable to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and
liabilities become absolute and matured, (iii) the Company intends to incur or believes that it will incur debts that would be beyond its ability to pay as such debts mature or (iv) the Company has unreasonably small capital with which to
conduct the business in which it is engaged as such business is now conducted and is proposed to be conducted. 
 (i)
Absence of Litigation. There is no action, suit, claim, or proceeding, inquiry or investigation, before or by any Governmental Entity pending or, to the knowledge of the Company, threatened against or affecting the Company or any of the
Company Subsidiaries or their respective properties or assets that has had or would reasonably be expected to have a Material Adverse Effect or that would be required to be disclosed in any report, statement, form or other document required to be
filed under the Securities Act or the Exchange Act. Neither the Company nor any Company Subsidiary nor any property or asset of the Company or any Company Subsidiary is subject to any Order or similar written agreement with any Governmental
Authority that has had or would reasonably be expected to have a Material Adverse Effect or that would be required to be disclosed in any report, statement, form or other document required to be filed under the Securities Act or the Exchange Act.

 (j) Contracts; Compliance. 

(i) Each material Contract to which the Company or a Company Subsidiary is a party or by which any of their respective
properties and assets is bound is valid, is in full force and effect and is enforceable against each party thereto in accordance with the express terms thereof, except as such enforceability may be limited by (i) applicable bankruptcy,
insolvency, reorganization or other laws of general application relating to or affecting the enforcement of creditors rights generally, and (ii) the effect of rules of law governing the availability of specific performance and other equitable
remedies. Neither the Company nor any Company Subsidiary, nor to the Company’s knowledge, the other parties thereto is in default under, in breach or in violation of (and no event has occurred that has not been waived that, with notice or lapse
of time or both, would result in a breach, a violation or a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received written notice of a claim that it has breached, is in default under or that it is in
violation of, any material Contract to which it is a party or by which it or any of its properties and assets is bound (whether or not such default or violation has been waived). 

(ii) Neither the Company nor any Company Subsidiary, (A) is in violation of any Order of any arbitrator or Governmental
Entity, or (B) is or has been in violation of any Legal Requirements in any material respect. 

  
 13 

 (k) Title to Assets; Real Property. The Company and the Company
Subsidiaries (i) have good and marketable title in fee simple to all real property owned by them, and (ii) have good and marketable title in all personal property owned by them, in each case of (i) and (ii) free and clear of all
Liens, except for Permitted Liens. The Leased Real Property are held by the Company and the Company Subsidiaries, as applicable, under valid, subsisting and enforceable leases with which the Company and the Company Subsidiaries are in compliance in
all material respects. 
 (l) No General Solicitation. Neither the Company, nor any of its Affiliates, nor any Person
acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of the Common Shares. 

(m) No Integration. Neither the Company nor any of its Affiliates nor, any Person acting on the Company’s behalf
has, directly or indirectly, at any time within the past six months, made any offer or sale of any security or solicitation of any offer to buy any security under circumstances that would (i) eliminate the availability of the exemption from
registration under Regulation D under the Securities Act in connection with the offer and sale by the Company of the Common Shares as contemplated hereby or (ii) cause the offering of the Common Shares pursuant to the Transaction Documents to
be integrated with prior offerings by the Company for purposes of the Securities Act or any applicable stockholder approval provisions, including under the rules and regulations of any Trading Market. Neither the Company nor any of its Affiliates
nor any Person acting on the Company’s behalf has offered or sold or will offer or sell any securities, or has taken or will take any other action, which would reasonably be expected to subject the offer, issuance or sale of the Common Shares,
as contemplated hereby, to the registration provisions of the Securities Act. 
 (n) Investment Company Status. The
Company is not an Affiliate of, and is not, and after giving effect to the issuance and sale of the Common Shares, will not be required to be registered as an “investment company” within the meaning of the Investment Company Act of 1940,
as amended. 
 (o) Rule 506 Compliance. Assuming the accuracy of the representations and warranties of the Investors
set forth in Section 3.2 hereof, none of the Insiders is subject to any “bad actor” disqualification specified in Rule 506(d) of Regulation D, and the Insiders have complied with the “bad actor” disclosure
requirements set forth in Rule 506(e) of Regulation D. The Company is not disqualified from relying on Rule 506 of Regulation D under the Securities Act (“Rule 506”) for any of the reasons stated in Rule 506(d) in connection with
the issuance and sale of the Common Shares to the Investor pursuant to this Agreement. 

  
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 (p) Private Placement. Assuming the accuracy of the representations and
warranties of the Investors contained in Section 3.2 and the compliance by the Investors with the provisions set forth herein, the issuance and sale of the Common Shares in the manner contemplated by the Transaction Documents is exempt
from the registration requirements of the Securities Act. 
 (q) Listing and Maintenance Requirements. The Company is
listed on The Nasdaq Capital Market. Except as set forth on Schedule 3.1(q), the Company has not, in the twelve months preceding the date hereof, received written notice from The Nasdaq Capital Market to the effect that the Company is
not in compliance with the listing or maintenance requirements of such Trading Market. Except as set forth on Schedule 3.1(q), the Company is in compliance, in all material respects, with the listing and maintenance requirements of The
Nasdaq Capital Market. Trading in the Common Stock has not been suspended by the SEC or The Nasdaq Capital Market. The Company has received written confirmation from The Nasdaq Capital Market that the Company has been granted a second period of one
hundred and eighty (180) days to regain compliance with the continued listing rule of The Nasdaq Capital Market which requires an issuer to maintain a bid price for its stock of at least one dollar ($1.00). 

(r) Registration Rights. Except as set forth in the Stockholder Agreement, and in accordance with the terms of this
Agreement, the Company has not granted or agreed to grant to any Person any rights (including “piggy-back” registration rights) to have any securities of the Company registered with the SEC or any other governmental authority. 

(s) Intellectual Property Rights. 

(i) “Intellectual Property Rights” shall mean any or all of the following: (i) patents and applications
and registrations therefor and all reissues, divisions, renewals, extensions, provisionals, substitutions, continuations and continuations-in-part thereof and foreign counterparts thereto (“Patents”); (ii) copyrights (whether
or not registered), copyrights registrations and applications therefor, and all other rights corresponding thereto in any works of authorship (including software and firmware) throughout the world including moral and economic rights of authors and
inventors, however denominated and regardless of medium of fixation or means of expression (“Copyrights”); (iii) rights in industrial designs and any registrations and applications therefor; (iv) mask work rights and
registrations and applications for registration or renewal; (v) trade names, logos, trade dress, slogans, common law trademarks and service marks, trademark and service mark registrations and applications therefor and all goodwill associated
therewith (“Trademarks”); (vi) trade secrets, business, technical and know-how information, non-public information, and confidential information and rights to limit the use or disclosure thereof by any Person including
databases and data collections and all rights therein (“Trade Secrets”); (vii) domain names and domain name registrations; and (viii) any similar or equivalent rights to any of the foregoing (as applicable) in any
jurisdiction worldwide. 

  
 15 

 (ii) Neither the Company nor any Company Subsidiaries has received written notice
challenging the validity, enforceability or scope of any Intellectual Property Rights owned by the Company or a Company Subsidiary (“Company IP”). The Company and the Company Subsidiaries own all right, title and interest in and to
the Company IP free and clear of all Liens. Each registered Trademark, registered Copyright and each Patent (collectively, “Registered IP”) is valid and enforceable. The Company and the Company Subsidiaries are current in their
filing requirements as necessary to perfect and maintain their respective Registered IP in accordance with applicable Legal Requirements. 

(iii) The Company and each of the Company Subsidiaries own or possess sufficient rights to use all Intellectual Property Rights
necessary to conduct their businesses as currently conducted, including the design, manufacture, license and sale of all products currently under development or in production. To the knowledge of the Company, and except as alleged on Schedule
3.1(s), the conduct of the Company and the Company Subsidiaries as currently conducted does not infringe, misappropriate or violate the Intellectual Property Rights of any third party. Except as set forth on Schedule 3.1(s), neither the
Company nor any Company Subsidiary has received any formal written notice from any person alleging infringement, misappropriation or other violation of the Intellectual Property Rights of any third party. 

(iv) The Company has made available to the Investors all material licenses to Intellectual Property Rights (other than licenses
granted by the Company or a Company Subsidiary in the ordinary course of business or licenses to the Company or a Company Subsidiary for “off-the-shelf” software or technology that are generally commercially available on standard terms) to
which Company or any Company Subsidiary is a party, pursuant to which (i) the Company or such Company Subsidiary grants a license or other right to use any Company IP or (ii) any third party licenses or otherwise grants rights to the
Company or a Company Subsidiary to use any Intellectual Property Rights owned by such third party (collectively, the “Intellectual Property Agreements”). 

(v) Neither the execution, delivery, or performance of this Agreement nor the consummation of any of the transactions or
agreements contemplated by this Agreement will, with or without notice or the lapse of time, result in, or give any other person the right or option to cause or declare (i) a loss of, or Lien on, any of the Intellectual Property Rights owned by
the Company or a Company Subsidiary; (ii) a breach of, termination of, or acceleration or modification of any right or obligation under any Intellectual Property Agreement; or (iii) the release, disclosure, or delivery of any Company IP to
any escrow agent or other person. 
 (vi) The Company and each of the Company Subsidiaries has taken reasonable measures to
protect and preserve the confidentiality of the Trade Secrets owned by the Company or a Company Subsidiary that the Company wishes to maintain as confidential information and all other confidential and proprietary information of the Company and the
Company Subsidiaries, including requiring all persons having access thereto to execute written non-disclosure agreements. 

  
 16 

 (t) Insurance. The Company and the Company Subsidiaries are insured by
insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the same or similar businesses and location in which the Company and the Company Subsidiaries are engaged. All of the
material insurance policies of the Company and the Company Subsidiaries are in full force and effect, no notice of cancellation has been received with respect thereto, there is no existing default or event which, with the giving of notice or lapse
of time or both, would constitute a default, by any insured thereunder and neither the Company nor any Company Subsidiary has any reason to believe that it will be unable to renew its insurance coverage on substantially the same terms as and when
such coverage expires as may be necessary to continue its business without a significant increase in cost. 
 (u)
Regulatory Permits. The Company and the Company Subsidiaries possess all material certificates, authorizations and permits issued by the appropriate Governmental Entities and non-governmental entities necessary to conduct their respective
businesses (“Material Permits”), and each Material Permit is in full force and effect, except where the failure to possess such permits does not have or would not reasonably be expected to have a Material Adverse Effect. Neither the
Company nor any Company Subsidiary has received any written notice of proceedings relating to the revocation or modification of any Material Permit. 

(v) Internal Controls; Disclosure Controls. The Company and the Company Subsidiaries maintain a system of internal
control over financial reporting (as such term is defined in Rule 13a-15 of the General Rules and Regulations under the Exchange Act) to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with GAAP and includes those policies and procedures that (i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the
assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures of the Company are being made only in
accordance with authorizations of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could
have a material effect on the financial statements of the Company. Since January 1, 2013, there have been no significant changes in the Company’s internal control over financial reporting. The Company maintains disclosure controls and
procedures (as such term is defined in Rule 13a-15 of the General Rules and Regulations under the Exchange Act) that comply with the requirements of the Exchange Act; such disclosure controls and procedures have been designed to ensure that
(i) information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and
(ii) information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s 

  
 17 

 
management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
Such disclosure controls and procedures are effective in all material respects. Since the Company’s certifying officers evaluated the effectiveness of the disclosure controls and procedures of the Company as of the end of the period covered by
the most recently filed periodic report under the Exchange Act, there have been no changes in the Company’s internal control over financial reporting that have materially affected or are reasonably likely to materially affect, the
Company’s internal control over financial reporting. 
 (w) Sarbanes-Oxley Act. The Company is in compliance in
all material respects with applicable requirements of the Sarbanes-Oxley Act of 2002 and applicable rules and regulations promulgated by the SEC thereunder. 

(x) Foreign Corrupt Practices. Neither the Company nor any Company Subsidiaries nor any director or officer of the
Company or any Company Subsidiaries nor, to the knowledge of the Company, any agent, employee or other Person acting on behalf of the Company or any Company Subsidiaries has, in the course of its actions for, or on behalf of, the Company
(i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or
employee from corporate funds; (iii) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or any other applicable U.S. or foreign anti-bribery or anti-corruption laws; or (iv) made any
unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or employee. 

(y) Indebtedness. Except as set forth on Schedule 3.1(y), neither the Company nor any Company Subsidiaries
(i) has any outstanding Indebtedness (as defined below) or (ii) is a party to any Contract relating to any Indebtedness. For purposes of this Agreement: (x) “Indebtedness” of any Person means, without duplication
(A) all indebtedness for borrowed money, (B) all obligations issued, undertaken or assumed as the deferred purchase price of property or services (other than trade payables entered into in the ordinary course of business), (C) all
reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar instruments, (D) all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in
connection with the acquisition of property, assets or businesses, (E) all indebtedness created or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to any property or
assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property), (F) all monetary obligations
under any leasing or similar arrangement which, in connection with GAAP, consistently applied for the periods covered thereby, is classified as a capital lease, (G) all indebtedness referred to in clauses (A) through (F) above secured
by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any mortgage, lien, pledge, charge, security interest or other encumbrance upon or in any property or assets

  
 18 

 
(including accounts and contract rights) owned by any Person, even though the Person which owns such assets or property has not assumed or become liable for the payment of such indebtedness, and
(H) all Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred to in clauses (A) through (G) above; and (y) “Contingent Obligation” means, as to any Person, any direct or
indirect liability, contingent or otherwise, of that Person with respect to any indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring such liability, or the primary effect
thereof, is to provide assurance to the obligee of such liability that such liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will be protected (in whole or in
part) against loss with respect thereto. 
 (z) Employee Relations. (i) Neither the Company nor any Company
Subsidiaries is a party to any collective bargaining agreement with any labor organization, trade union or works counsel; (ii) the Company has not received written notice that any labor representation question presently exists, and, to the
Company’s knowledge, no petition concerning representation under the National Labor Relations Act, as amended, or other labor or employment law is pending or, to the Company’s knowledge, threatened and (iii) neither the Company nor
any Company Subsidiaries, to the Company’s knowledge, employs any member of a union. The Company believes that its relations with its employees are accurately disclosed in all material respects in the SEC Reports. Except as disclosed in the SEC
Reports, since January 1, 2013 no executive officer of the Company or any of the Company Subsidiaries (as defined in Rule 501(f) of the Securities Act) has notified in writing the Company or any such Company Subsidiary that such officer intends
to leave the Company or any such Company Subsidiary or otherwise terminate such officer’s employment with the Company or any such Company Subsidiary. 

(aa) Labor Matters. The Company and the Company Subsidiaries are in compliance in all material respects with all
federal, state, local and foreign laws and regulations respecting labor, employment and employment practices and benefits, terms and conditions of employment and wages and hours. 

(bb) Environmental Laws. Except as would not reasonably be expected to have a Material Adverse Effect, the Company and
its Subsidiaries (i) are in compliance in all material respects with any and all Environmental Laws (as hereinafter defined), (ii) have received all permits, licenses or other approvals required of them under applicable Environmental Laws
to conduct their respective businesses and (iii) are in compliance in all material respects with all terms and conditions of any such permit, license or approval. The term “Environmental Laws” means all federal, state, local or
foreign laws relating to pollution or protection of human health or the environment (including ambient air, surface water, groundwater, land surface or subsurface strata), including laws relating to emissions, discharges, releases or threatened
releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into the environment, or otherwise relating to the manufacture, processing, distribution, use,
treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations
issued, entered, promulgated or approved thereunder. 

  
 19 

 (cc) Tax Matters. The Company and each of its Subsidiaries have timely
filed all income and other material Tax Returns required to be filed by any of them and have timely paid all Taxes required to be paid (whether or not shown on such Tax Returns), and the unpaid Taxes of the Company and the Company Subsidiaries did
not, as of the date of the most recent SEC Report, exceed the reserve for Tax liabilities set forth on the face of the balance sheets (rather than in any notes thereto) contained in the such SEC Reports. No material deficiencies for any Taxes have
been asserted, assessed or proposed in writing against the Company or any of the Company Subsidiaries, and there are no pending or, to the knowledge of the Company, threatened audits, assessments or other actions for or relating to any material
liability in respect of Taxes of the Company or the Company Subsidiaries. 
 (dd) Regulation M Compliance. The Company
has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale
or resale of any of the Common Shares, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of, any of the Common Stock, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to
purchase any other securities of the Company. 
 (ee) Employee Benefits, ERISA. 

(i) True and complete copies of each of the material Company Plans, amendments thereto and all related service agreements,
summaries and summary plan descriptions have been made available to the Investors. Each Company Plan has been administered in accordance with its terms in all material respects, and the Company and each of the Company Subsidiaries and their
respective ERISA Affiliates has in all material respects met its obligations (if any) of ERISA, the Code and other applicable federal, state and foreign laws and the regulations thereunder. 

(ii) None of the Company, any ERISA Affiliate, or any of their respective predecessors has contributed to, contributes to, has
been required to contribute to, or otherwise participated in or participates in or in any way has any material liability, directly or indirectly with respect to (A) any plan subject to Section 412 of the Code, Section 302 of ERISA or
Title IV of ERISA, including any “multiemployer plan” (within the meaning of Sections 3(37) or 4001(a)(3) of ERISA or Section 414(f) of the Code) or any single employer pension plan (within the meaning of Section 4001(a)(15) of
ERISA) that is subject to Sections 4063, 4064 or 4069 of ERISA or Section 413(c) of the Code that covered or has covered any Employee; or (B) any plan or arrangement that provides for post-employment medical, life insurance or other
welfare-type benefits (other than health continuation coverage required by Section 4980B of the Code and Title I, Subtitle B, Part 6 of ERISA or otherwise as required by law). 

  
 20 

 (ff) No Fee to the TWVC Funds. Other than as provided in
Section 7.2, there is no fee or other compensation payable by the Company to the TWVC Funds in connection with the purchase by the TWVC Funds of Common Shares hereunder or the purchase by the TWVC Funds of shares of Common Stock pursuant
to the TWVC Standby Purchase Agreement or in the Rights Offering conducted by the Company, and no such fee or other compensation shall be paid by the Company to the TWVC Funds. 

3.2 Representations, Warranties and Covenants of the Investors. Each Investor, severally and not jointly, hereby represents, warrants
and covenants to the Company as of the date hereof and as of the Closing Date (except for the representations and warranties that speak as of a specific date, which shall be made as of such date) as follows: 

(a) Organization; Authority. Such Investor is an entity duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization with the requisite corporate, partnership or other power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to carry out its obligations
hereunder and thereunder. The purchase by such Investor of Common Shares hereunder has been duly authorized by all necessary corporate, partnership or other action on its part. This Agreement has been duly executed and delivered by such Investor and
constitutes the valid and binding obligation of such Investor, enforceable against it in accordance with its terms, except as may be limited by (i) applicable bankruptcy, insolvency, reorganization or other laws of general application relating
to or affecting the enforcement of creditors rights generally, and (ii) the effect of rules of law governing the availability of specific performance and other equitable remedies. 

(b) No Public Sale or Distribution. Such Investor is acquiring the Common Shares for its own account and not with a view
towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered under the Securities Act or under an exemption from such registration and in compliance with applicable federal and state
securities laws, and such Investor does not have a present arrangement to effect any distribution of the Common Shares to or through any person or entity; provided, however, that by making the representations herein, any such Investor
does not agree to hold any of the Common Shares for any minimum or other specific term and reserves the right to dispose of the Common Shares at any time in accordance with or pursuant to a registration statement or an exemption under the Securities
Act. 
 (c) Investor Status. At the time such Investor was offered the Common Shares, it was, and at the date hereof
it is an “accredited Investor” as defined in Rule 501(a) under the Securities Act. Such Investor is not a registered broker dealer registered under Section 15(a) of the Exchange Act, or a member of FINRA or an entity engaged in the
business of being a broker dealer. Except as otherwise disclosed in writing to the Company on or prior to the date of this Agreement, such Investor is not affiliated with any broker dealer registered under Section 15(a) of the Exchange Act, or
a member of FINRA or an entity engaged in the business of being a broker dealer. 

  
 21 

 (d) Experience of the Investor. Such Investor, either alone or together
with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Common Shares and has so evaluated the merits
and risks of such investment. Such Investor understands that it must bear the economic risk of this investment in the Common Shares indefinitely, and is able to bear such risk and is able to afford a complete loss of such investment. 

(e) Access to Information. Such Investor acknowledges that it has reviewed the Disclosure Materials and has been
afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Common Shares and the merits and risks of
investing in the Common Shares, and (ii) access to information about the Company and the Company Subsidiaries and their respective financial condition, results of operations, business, properties, management and prospects sufficient to enable
it to evaluate its investment. Neither such inquiries nor any other investigation conducted by or on behalf of such Investor or its representatives or counsel shall modify, amend or affect such Investor’s right to rely on the truth, accuracy
and completeness of the Disclosure Materials and the Company’s representations and warranties contained in the Transaction Documents. 

(f) No Governmental Review. Such Investor understands that no United States federal or state agency or any other
government or governmental agency has passed on or made any recommendation or endorsement of the Common Shares or the fairness or suitability of the investment in the Common Shares nor have such authorities passed upon or endorsed the merits of the
offering of the Common Shares. 
 (g) No Conflicts. The execution, delivery and performance by such Investor of this
Agreement and the consummation by such Investor of the transactions contemplated hereby will not (i) result in a violation of the organizational documents of such Investor or (ii) conflict with, or constitute a default (or an event which
with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any Contract to which such Investor is a party, or (iii) result in a violation of any
Legal Requirements (including federal and state securities laws) applicable to such Investor, except in the case of clauses (ii) and (iii) above, for such violations that do not otherwise affect the ability of Investors to consummate the
transactions contemplated hereby. 
 (h) Restricted Securities. Such Investor understands that the Common Shares are
characterized as “restricted securities” under the U.S. federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such laws and applicable regulations such
securities may be resold without registration under the Securities Act only in certain limited circumstances. 

  
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 (i) Availability of Funds. On the Closing Date, such Investor will have
immediately available funds in cash that will be sufficient to fulfill its obligations under Article II. 
 (j)
Brokers or Finders. There is no investment banker, broker, finder or other intermediary that has been retained by, or is authorized to act on behalf of, such Investor or any of its Affiliates, or any of their respective officers or directors
in their capacity as officers or directors, who might be entitled to any banking, broker’s, finder’s or similar fee or commission in connection with the transactions contemplated by this Agreement. 

(k) Prohibited Transactions. Such Investor does not own, directly or indirectly, and no Person acting on behalf of or
pursuant to any understanding with such Investor owns, any securities, including any derivatives, of the Company. Such Investor covenants that neither it nor any Person acting on its behalf or pursuant to any understanding with such Investor will
engage, directly or indirectly, in any Short Sales involving the Company’s securities. “Short Sales” include, without limitation, all “short sales” as defined in Rule 200 promulgated under Regulation SHO under the
Exchange Act and all types of direct and indirect stock pledges, forward sale contracts, options, puts, calls, short sales, swaps, derivatives and similar arrangements (including on a total return basis), and sales and other transactions through
non-U.S. broker-dealers or foreign regulated brokers. 
 ARTICLE IV 

ADDITIONAL AGREEMENTS 
 4.1
Transfer Restrictions. 
 (a) Each Investor severally covenants that the Common Shares will only be disposed of
pursuant to an effective registration statement under, and in compliance with the requirements of, the Securities Act or pursuant to an available exemption from the registration requirements of the Securities Act, and in compliance with any
applicable state securities laws. Notwithstanding the foregoing, the Company hereby consents to and agrees to register on the books of the Company and with its Transfer Agent any transfer of the Common Shares by an Investor to an Affiliate of such
Investor, provided that the transferee certifies to the Company that it is an “accredited investor” as defined in Rule 501(a) under the Securities Act and provided that such Affiliate does not request any removal of any existing
legends on any certificate evidencing the Common Shares. 
 (b) The Investors agree that the following legend shall be
imprinted on any certificate evidencing any of the Common Shares: 
 THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN 

  
 23 

 
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS. 
 In addition, if any Investor is an Affiliate of the
Company, certificates evidencing the Common Shares issued to such Investor shall bear a customary “affiliates” legend. 

The legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of the
Common Shares upon which it is stamped or issue to such holder by electronic delivery at the applicable balance account of The Depository Trust Company, if, unless otherwise required by state securities laws, (i) such Common Shares are
registered for resale under the Securities Act, (ii) in connection with a sale, assignment or other transfer, such holder provides the Company with an opinion of counsel, the form and substance of which opinion shall be reasonably acceptable to
the Company, that the sale, assignment or transfer of the Common Shares may be made without registration under the applicable requirements of the Securities Act or (iii) such holder provides the Company with reasonable assurance that the Common
Shares can be sold, assigned or transferred pursuant to Rule 144 of the Securities Act (if the transferor is not an Affiliate of the Company) or have been sold under Rule 144. 

4.2 Furnishing of Information. Until the date that all of the Investors owning Common Shares sell all of the Common Shares, the Company
shall use its best efforts to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act. The Company further
covenants that it will take such further action as any holder of Common Shares may reasonably request to satisfy the provisions of this Section 4.2. 

4.3 Integration. The Company shall not, and shall use its commercially reasonably efforts to ensure that no Affiliate thereof shall,
sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Common Shares in a manner that would require
the registration under the Securities Act of the sale of the Common Shares to the Investors or that would be integrated with the offer or sale of the Common Shares for purposes of the rules and regulations of any Trading Market. 

4.4 Form D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Common Shares as required under Regulation
D and to provide a copy thereof, promptly upon request of any of the Investors. The Company shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify the Common Shares for, sale
to the Investors at the Closing under applicable securities or “Blue Sky” laws of the states of the United States, and shall provide evidence of such actions promptly upon request of the Investors. 

4.5 Public Disclosure. Without limiting any other provision of this Agreement, the Investors and the Company will consult with each
other before issuing, and provide each other 

  
 24 

 
the reasonable opportunity to review and comment upon, and agree on, any press release with respect to this Agreement and the transactions contemplated hereby and will not issue any such press
release prior to such review, except as may be required by law or any listing agreement with or rule of any applicable national or regional securities exchange or market. 

4.6 Acknowledgement. Each Investor hereunder acknowledges its primary responsibilities under the Securities Act and accordingly will
not sell or otherwise transfer the Common Shares or any interest therein without complying with the requirements of the Securities Act. While a registration statement relating to the Common Shares remains effective, each Investor hereunder may sell
the Common Shares in accordance with the plan of distribution contained in the registration statement (if it is selling such securities pursuant to the registration statement) and, if it does so, it will comply therewith and with the related
prospectus delivery requirements unless an exemption therefrom is available. Each Investor, severally and not jointly with the other Investors, agrees that if it is notified by the Company in writing at any time that such registration statement
registering the resale of the Common Shares is not effective or that the prospectus included in such registration statement no longer complies with the requirements of Section 10 of the Securities Act, the Investor will refrain from selling
such Common Shares until such time as the Investor is notified by the Company that such registration statement is effective or such prospectus is compliant with Section 10 of the Exchange Act, unless such Investor is able to, and does, sell
such Common Shares pursuant to an available exemption from the registration requirements of Section 5 of the Securities Act. 
 4.7
Commercially Reasonable Efforts. Upon the terms and subject to the conditions set forth in this Agreement, each of the Investors and the Company shall use commercially reasonable efforts to take, or cause to be taken, all actions, and to do,
or cause to be done, and to assist and cooperate with the other party or parties hereto in doing, all things reasonably necessary, proper or advisable under applicable Legal Requirements to consummate and make effective, in the most expeditious
manner practicable, the transactions contemplated by this Agreement, including using commercially reasonable efforts to: (i) cause the conditions to the issuance of the Common Shares pursuant to this Agreement set forth in Article V to be
satisfied; (ii) obtain all necessary actions or non-actions, waivers, consents, approvals, orders and authorizations from Governmental Entities and make all necessary registrations, declarations and filings with Governmental Entities; and
(iii) execute or deliver any additional instruments reasonably necessary to consummate the transactions contemplated by, and to fully carry out the purposes of, this Agreement. The Company and the Investors shall cooperate with one another
(x) in determining whether any action by or in respect of, or filing with, any Governmental Entity is required, or any actions, consents, approvals or waivers are required to be obtained from parties to any material Contracts, in connection
with the consummation of the transactions contemplated by this Agreement and (y) in taking such reasonable actions or making any such filings, furnishing information required in connection therewith and seeking timely to obtain any such
actions, consents, approvals or waivers. 
 4.8 Use of Proceeds. The Company shall use the net proceeds from the sale of the Common
Shares for general working capital purposes. 
 4.9 Listing of Common Stock. Throughout the period during which any Registration
Statement required by Article VI hereof is effective, the Company will not voluntarily terminate 

  
 25 

 
its status as an issuer required to file reports under the Exchange Act even if the Exchange Act or the rules and regulations thereunder would permit such termination. The Company hereby agrees
to use commercially reasonable efforts to maintain the listing of its Common Stock on the Nasdaq Capital Market, and to cause all of the Common Shares to be listed on the Nasdaq Capital Market as soon as practicable following the Closing Date. The
Company further agrees, if the Company applies to have the Common Stock traded on any national securities exchange other than the Nasdaq Capital Market, it will include in such application all of the Common Shares, and will take such other action as
is necessary to cause all of the Common Shares to be listed on such other national securities exchange as promptly as possible. 
 4.10
Section 16. The Company agrees that it will not, prior to the date that is six (6) months from (i) the Closing Date with respect to ALU Part and (ii) the closing of the sale of Common Stock to the TWVC Funds pursuant to the
TWVC Standby Purchase Agreement with respect to the TWVC Funds, consummate a merger or other consolidation that could result in short swing liability under Section 16 of the Exchange Act for ALU Part or the TWVC Funds, respectively; provided,
however, that the foregoing shall not preclude the Company from entering into a definitive agreement with respect to such merger or other business combination. 

4.11 Rights Offering. The Company agrees that promptly following the Closing, it shall file a Form S-1 and promptly following
effectiveness of such Form S-1, commence the Rights Offering for Persons that were Company stockholders of record on the business day immediately prior to the date of this Agreement. 

4.12 Indemnification of Investors. Subject to the provisions of this Section 4.12, the Company will indemnify and hold each
Investor and its directors, officers, stockholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each
Person who controls such Investor (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, stockholders, agents, members, partners or employees (and any other Persons with a
functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such controlling persons (each, an “Investor Party”) harmless from any and all losses, liabilities,
obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Investor Party may suffer or incur as a
result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against the Investor
Parties in any capacity, or any of them or their respective Affiliates, by any third party who is not an Affiliate of such Investor Party (including for these purposes a derivative action brought on behalf of the Company by any third party who is
not an Affiliate of such Investor Party), arising out of or resulting from the execution, delivery, performance or enforcement of any of the Transaction Documents (unless such action is based upon a breach of such Investor Party’s
representations, warranties or covenants under the Transaction Documents or any agreements or understandings such Investor Party may have with any such third party or any material violations by such Investor Party of state or federal securities laws
or any conduct by such Investor Party which constitutes fraud, gross negligence, willful misconduct or malfeasance). If any action shall be brought against any Investor Party in respect of which indemnity may be sought pursuant to this

  
 26 

 
Agreement, such Investor Party shall promptly notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably
acceptable to the Investor Party; provided that the failure to deliver written notice to the Company shall not relieve the Company of any liability to the Investor Party under this Section 4.12, except to the extent that the Company is
materially and adversely prejudiced. Neither the Company nor any Investor Party shall settle any such action without the consent of the applicable Investor Parties or the Company, as the case may be, which consent shall not be unreasonably withheld,
conditioned or delayed. Any Investor Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Investor Party except to
the extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action
there is, in the reasonable opinion of counsel, a material conflict on any material issue between the position of the Company and the position of such Investor Party, in which case the Company shall be responsible for the reasonable fees and
expenses of no more than one such separate counsel for each of the TWVC Funds, collectively, on the one hand, and ALU Part, on the other hand. In the event that the Company does not elect to assume the defense of any action against any Investor
Party in respect of which indemnity may be sought hereunder, then such Investor Party shall have the right to assume the defense of such action with counsel of its own choosing. The indemnification required by this Section 4.12 shall be made by
periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or are incurred. The indemnity agreements contained herein shall be in addition to (x) any cause of action or similar
right of any Investor Party against the Company or others, and (y) any liabilities the Company may be subject to pursuant to law. 

4.13 Board Observer. ALU Part shall be entitled to have one representative attend all meetings of the Company Board and each committee
of the Company Board as an observer, but such observer shall have no voting rights (the “ALU Part Observer”). The Company shall provide the ALU Part Observer with notice of all meetings of the Company Board and each committee of the
Company Board and all written materials distributed to the members of the Company Board and the members of each committee of the Company Board, in each case at the same time and in the same manner as such notices and materials are provided to
members of the Company Board and members of the committees of the Company Board; provided, however, that ALU Part may request that the Company cease providing material non-public information to the ALU Part Observer at any time; and provided
further, that the Company reserves the right to exclude the ALU Part Observer from access to any of such materials or meetings or portions thereof if and to the extent that in the good faith judgment of a majority of the directors of the Company (or
the majority of the subject Board committee) after obtaining the advice of counsel, (i) such exclusion is reasonably necessary to preserve the Company’s attorney-client privilege; (ii) ALU Part has a business or financial interest
(other than by reason of its interest as a stockholder of the Company) that would reasonably be expected to pose a conflict of interest for ALU Part and, if the ALU Part Observer were a member of the Company Board rather than an observer, it would
be advisable under applicable law for the ALU Part Observer to recuse himself or herself due to such conflict of interest; (iii) such access or sharing of information with the ALU Part Observer would reasonably be expected to cause substantial
harm to the Company’s business; or (iv) such access or sharing of information would result in disclosure of confidential information to the ALU Part Observer regarding ALU Part’s competitors, including

  
 27 

 
without limitation, such competitor’s product road maps, terms of sale and contractual or other arrangements. Any ALU Part Observer shall agree to hold in confidence any information provided
to him or her in accordance with the terms of a confidentiality agreement to be entered into that is reasonably satisfactory to the Company and such ALU Part Observer, it being understood that any information provided to the ALU Part Observer may be
provided to directors, officers and employees of ALU Part and its Affiliates who have a business need to know such information and an obligation to hold such information in confidence in accordance with an enforceable non-disclosure agreement
between the Company and ALU Part or one of its Affiliates, currently, the Master Non-Disclosure Agreement No. 7035948 effective as of July 19, 2007 between the Company and Compagnie Financiere Alcatel-Lucent, an Affiliate of ALU Part (the
“MNDA”), and ALU Part further agrees that it, or one of its Affiliates will enter into a subordinate disclosure agreement with the Company covering the subject matter of this Section 4.13. The Company agrees that it will
indemnify the ALU Part Observer for any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of
investigation that the ALU Part Observer may suffer or incur as a result of or relating to, and advance expenses to the ALU Part Observer in connection with, any actions, suits, or proceedings brought against the ALU Part Observer, or to which the
ALU Part Observer is otherwise made a party or witness, by reason of the fact that he or she is the ALU Part Observer; provided, however, that nothing in this Section 4.13 shall obligate the Company to pay any amounts (i) in the
event the ALU Part Observer commits a tortious act; or (ii) in the event of a breach by ALU Part or the ALU Part Observer of the obligations contained in this Section 4.13. The Company shall reimburse the ALU Part Observer for
expenses incurred in connection with attendance at Company Board or committee meetings in accordance with the Company’s travel policy. The rights of ALU Part with respect to this Section 4.13 shall apply until the earlier of
(i) (a) the consolidation or merger of the Company with or into another Person (unless the Company is the surviving corporation and the shareholders of the Company prior to such merger or consolidation continue to hold immediately
thereafter a majority of the Company’s voting stock), (b) the purchase, tender or offer that is accepted by the holders of more than 50% of the outstanding shares of the Company’s voting stock, or (c) the consummation of a stock
purchase agreement or other business combination with another Person whereby the Person acquires more than 50% of the outstanding shares of the Company’s voting stock, or (ii) such time as ALU Part ceases to hold at least 4,878,048 of the
Common Shares purchased from the Company pursuant to this Agreement (subject to stock splits, recapitalization and the like); provided, however, that ALU Part may determine to forego its right to an observer at any time prior thereto, at which time
the Company shall no longer have an obligation to provide notices of meetings or written materials related thereto. 
 ARTICLE V 

CONDITIONS 
 5.1 Conditions to
the Obligations of Each Party to Perform its Obligations under this Agreement. The respective obligations of each party to this Agreement shall be subject to the satisfaction at or prior to the Closing Date of the following conditions: 

(a) No Order. No Governmental Entity of competent jurisdiction shall have enacted, issued, promulgated, enforced or
entered any statute, rule, regulation, executive 

  
 28 

 
order, decree, injunction, judgment, ruling or any other order (each, an “Order”) which (i) is in effect and (ii) has the effect of preventing or making the issuance of
the Common Shares pursuant to the Transaction Documents illegal. 
 5.2 Additional Conditions to the Obligations of the Company. The
obligation of the Company to consummate and effect the issuance of the Common Shares under the Transaction Documents shall be subject to the satisfaction at or prior to the Closing Date of each of the following conditions, any of which may be
waived, in writing, exclusively by the Company: 
 (a) Representations and Warranties. The representations and
warranties of the Investors set forth in this Agreement shall be true and correct in all material respects on and as of the Closing Date except for those representations and warranties which address matters only as of a particular date, which
representations shall be true and correct in all material respects as of such particular date. 
 (b) Agreements and
Covenants. The Investors shall have performed or complied in all material respects with its agreements and covenants required by this Agreement to be performed or complied with by Investors at or prior to the Closing Date. 

(c) “Bad Actor” Certifications. Each Insider shall have provided to the Company a Rule 506 Disqualification
Event Certificate in the form of Exhibit C hereto on or prior to the Closing Date. 
 (d) Officer’s
Certificate. The Company shall have received a certificate of the Investors, validly executed for and on behalf of the Investors and in its name by a duly authorized officer thereof, certifying that the conditions set forth in
Section 5.2(a) and Section 5.2(b) have been satisfied. 
 (e) Proceedings. There shall not be pending
any suit or litigation challenging or seeking to restrain or prohibit the consummation of any of the transactions contemplated by the Transaction Documents, including the issuance of the Common Shares. 

(f) Purchase Price. The Investors shall have paid the purchase price to the Company in accordance with
Section 2.2(b). 
 (g) Termination. This Agreement shall not have been terminated as to the Company in
accordance with Section 7.1. 
 (h) Additional Agreements. The TWVC Standby Purchase Agreement and the amended
Stockholder Agreement shall have been executed and delivered to the Company. 
 5.3 Additional Conditions to the Obligations of the
Investors. The obligations of the Investors to consummate and effect the issuance of the Common Shares under the Transaction Documents shall be subject to the satisfaction at or prior to the Closing Date of each of the following conditions, any
of which may be waived, in writing, exclusively by the Investors: 
 (a) Representations and Warranties. The
representations and warranties of the Company set forth in this Agreement shall be true and correct in all material respects on and as of the Closing Date, except for those representations and warranties which address matters only as of a particular
date, which representations and warranties shall be true and correct in all material respects as of such particular date. 

  
 29 

 (b) Agreements and Covenants. The Company shall have performed or complied
in all material respects with its agreements and covenants required by this Agreement to be performed or complied with by it at or prior to the Closing Date. 

(c) “Bad Actor” Certifications. Each Insider shall have provided to the Company a Rule 506 Disqualification
Event Certificate in the form of Exhibit C hereto on or prior to the Closing Date. 
 (d) Officer’s
Certificate. The Investors shall have received a certificate of the Company, validly executed for and on behalf of the Company and in its name by a duly authorized officer thereof, certifying that the conditions set forth in
Section 5.3(a), Section 5.3(b) and Section 5.3(e) have been satisfied. 
 (e) Material
Adverse Effect. Since the date of this Agreement, there shall not have occurred a Material Adverse Effect. 
 (f)
Proceedings. There shall not be pending any suit or litigation challenging or seeking to restrain or prohibit the consummation of any of the transactions contemplated by the Transaction Documents, including the issuance of the Common Shares.

 (g) Nasdaq; Trading. The Company shall have filed with Nasdaq a true and complete Notification Form: Listing of
Additional Shares covering the Common Shares. No stop order or suspension of trading shall have been imposed by Nasdaq or the SEC or any other Governmental Entity with respect to public trading in the Common Stock. 

(h) Certified Resolutions. The Investors shall have received a certificate of the Company, validly executed for and on
behalf of the Company and in its name by a duly authorized officer thereof, certifying the resolutions duly adopted by the Company Board or a duly authorized committee thereof authorizing the execution, delivery and performance of this Agreement,
the other Transaction Documents, and the transactions contemplated hereby and thereby, including the issuance and sale of the Common Shares. 

(i) Legal Opinion. The Company shall have delivered an opinion of its legal counsel, in form and substance reasonably
satisfactory to the Investors. 
 (j) Termination. This Agreement shall not have been terminated as to the Company in
accordance with Section 7.1. 

  
 30 

 ARTICLE VI 

REGISTRATION RIGHTS 
 The Company
hereby grants to ALU Part the registration rights set forth in this Article VI, with respect to the Registrable Securities (as defined below) owned by ALU Part. For the avoidance of doubt, this Article VI shall not be applicable to the TWVC
Funds. 
 6.1 Certain Definitions. As used in this Article VI: 

“Effective Date” means the date that the Shelf Registration Statement has been declared effective by the SEC. 

“Effectiveness Deadline” means the date no later than 120 days after the Closing Date. 

“Filing Deadline” means the date no later than 60 days after the Closing Date. 

“Registrable Securities” means (a) any Common Shares issued to ALU Part pursuant to this Agreement, (b) any Warrant
Shares, and (c) any Common Stock subsequently issued or issuable with respect to any such securities upon any recapitalization, stock dividend or other distribution with respect to any Common Stock, stock split or similar event, until the
earlier of (I) the date on which all Registrable Securities have been sold and (II) the date on which all Registrable Securities are eligible to be sold to the public pursuant to Rule 144 (or any successor provision) without volume or manner of
sale restrictions. 
 “Shelf Registration Statement” means the registration statement on Form S-1 (unless the Company is
then eligible to register for resale the Registrable Securities on Form S-3, in which case such registration shall be on a registration statement on Form S-3) filed by the Company under the Securities Act covering the Registrable Securities.
References to the Shelf Registration Statement shall include any Prospectus. 
 “Prospectus” means the prospectus included
in any Shelf Registration Statement, all amendments and supplements to such prospectus, including post-effective amendments, and all other material incorporated by reference in such prospectus. 

“register”, “registered” and “registration” refer to a registration effected by filing with
the SEC the Shelf Registration Statement in compliance with the Securities Act, and the declaration or ordering by the SEC of the effectiveness of the Shelf Registration Statement. 

“Warrant Shares” means the shares of Common Stock issuable upon exercise of the Warrant. 

“Warrant” means the warrant to purchase shares of Common Stock issued to ALU Part pursuant to that certain Loan and Security
Agreement dated as of the date hereof by and between the Company and Alcatel-Lucent USA. 
 6.2 Mandatory Registration. (a) The
Company shall prepare, and, as soon as practicable, but in no event later than the Filing Deadline, file with the SEC the Shelf Registration Statement covering the resale of all of the Registrable Securities for an offering to

  
 31 

 
be made on a continuous basis pursuant to Rule 415 under the Securities Act. The Company shall use its commercially reasonable efforts to have the Shelf Registration Statement declared effective
by the SEC as soon as practicable, but in no event later than the Effectiveness Deadline. The Company shall use its reasonable efforts to file with the SEC in accordance with Rule 424 under the Securities Act the final prospectus to be used in
connection with sales pursuant to the Shelf Registration Statement by 9:30 a.m. on the Business Day following the Effective Date, but in any case no later than the deadline required by Rule 424. 

(b) Suspension of Filing or Registration. If the Company shall furnish to ALU Part a certificate signed by the Chief
Executive Officer or Chief Financial Officer of the Company, stating that the filing, effectiveness or continued use of the Shelf Registration Statement would (i) in the good faith judgment of the Company Board, unreasonably impede, delay or
otherwise interfere with any pending or contemplated material acquisition, corporate reorganization, involving the Company (each, a “Material Transaction”), (ii) based upon advice from the Company’s investment banker or
financial advisor, materially adversely affect any pending or contemplated financing, offering or sale of any class of securities by the Company, or (iii) in the good faith judgment of the Company Board require disclosure of material non-public
information (other than information relating to an event described in clause (i) or (ii) of this subsection (b)) which, if disclosed at such time, would be materially harmful to the interests of the Company and its stockholders;
provided, however, that in the case of a Suspension (as defined below) pursuant to clause (i) or (ii) above, the Suspension shall earlier terminate upon the completion or abandonment of the relevant securities offering or
sale, financing, or Material Transaction unless the Suspension is also permitted for a different reason under clauses (i) or (ii), and provided, further, that in the case of a Suspension pursuant to clause (ii) above, the
Company shall give written notice of its determination to suspend the Shelf Registration Statement and the Suspension shall earlier terminate upon public disclosure by the Company or public admission by the Company of such material non-public
information or such time as such material non-public information shall be publicly disclosed without breach by ALU Part of the next sentence of this subsection (b), then the Company shall have a period of not more than 30 days in any ninety
(90) day period or ninety (90) days in any twelve (12) month period (or such longer period as ALU Part shall consent to in writing) within which to delay the filing or effectiveness of the Shelf Registration Statement or, in the case
of a Shelf Registration Statement that has been declared effective, to suspend the use by ALU Part of the Shelf Registration Statement (in each case, a “Suspension”). In the case of a Suspension that occurs after the effectiveness
of the Shelf Registration Statement, ALU Part agrees to suspend use of the applicable Prospectus in connection with any sale or purchase of, or offer to sell or purchase, Registrable Securities, upon receipt of the notice referred to above. The
Company shall immediately notify ALU Part upon the termination of any Suspension, and (i) in the case that the Shelf Registration Statement has not been declared effective, shall promptly thereafter file the Shelf Registration Statement and use
its reasonable best efforts to have the Shelf Registration Statement declared effective under the Securities Act and (ii) in the case of an effective Shelf Registration Statement, shall amend or supplement the Prospectus, if necessary, so it
does not contain any untrue statement or omission and furnish to ALU Part such numbers of copies of the Prospectus as so amended or supplemented as ALU Part may reasonably request. The Company may only exercise its right to a Suspension once in any
twelve-month period. 

  
 32 

 (c) The Company shall use its commercially reasonable efforts to take all actions
reasonably necessary to ensure that the transactions contemplated herein are effected as so contemplated in Section 6.2(a) hereof, and to submit to the SEC, within two (2) Business Days after the Company learns that no review of the
Shelf Registration Statement will be made by the staff of the SEC or that the staff has no further comments on the Shelf Registration Statement, as the case may be, a request for acceleration of effectiveness (or post-effective amendment, if
applicable) of the Shelf Registration Statement to a time and date not later than 48 hours after the submission of such request. 

(d) Any reference herein to a Shelf Registration Statement or prospectus as of any time shall be deemed to include any document
incorporated, or deemed to be incorporated, therein by reference as of such time and any reference herein to any post-effective amendment to a Shelf Registration Statement as of any time shall be deemed to include any document incorporated, or
deemed to be incorporated, therein by reference as of such time. Any reference to a prospectus as of any time shall include any supplement thereto, preliminary prospectus, or any free writing prospectus in respect thereof. 

(e) In connection with the filing of the Shelf Registration Statement, the Company shall prepare and file with the SEC within
the time periods specified in Section 6.2(a), the Shelf Registration Statement and which shall register all of the Registrable Securities for resale by ALU Part in accordance with such method or methods of disposition as may be specified
by ALU Part and use reasonable efforts to cause the Shelf Registration Statement to become effective as soon as reasonably practicable but in any case within the time periods specified in Section 6.2(a). 

(e) In connection with the registration, the Company may require ALU Part, to furnish to the Company such information regarding
ALU Part, including, without limitation, its intended method of distribution of Registrable Securities as may be required in order to comply with the Securities Act. ALU Part agrees to notify the Company as promptly as practicable of any inaccuracy
or change in information previously furnished by ALU Part to the Company or of the occurrence of any event in either case that could cause the prospectus to contain an untrue statement of a material fact regarding ALU Part or its intended method of
disposition of such Registrable Securities or omits to state any material fact regarding ALU Part or its intended method of disposition of such Registrable Securities required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing, and promptly to furnish to the Company any additional information required to correct and update any previously furnished information or required so that such prospectus shall not contain, with
respect to ALU Part or the disposition of such Registrable Securities, an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the
circumstances then existing. If ALU Part fails to provide to the Company any information required to be provided pursuant to this Section 6.2 after ALU Part became aware of the inaccuracy, omission or required change, the Company may
suspend the use of the Shelf Registration Statement and the Prospectus contained therein until such time as ALU Part provides the required information to the Company. 

  
 33 

 6.3 Piggyback Registration. 

(a) Company Registration. If at any time or from time to time the Company shall determine to register any of its equity
securities, either for its own account or for the account of security holders (other than (i) in a registration relating solely to employee benefit plans, (ii) a registration on Form S-4 or S-8 (or such other similar successor forms then
in effect under the Securities Act), (iii) a registration pursuant to which the Company is offering to exchange its own securities, (iv) a registration statement relating solely to dividend reinvestment or similar plans, or (v) a
resale shelf registration statement relating solely to debt securities of the Company that are convertible into Common Stock and the underlying shares of Common Stock, the Company will: 

(i) promptly (but in no event less than 20 days before the effective date of the relevant Registration Statement) give to ALU
Part written notice thereof; and 
 (ii) include in such registration (and any related qualification under state securities
laws or other compliance), and in any underwriting involved therein, all the Registrable Securities specified in a written request or requests, made within 10 days after receipt of such written notice from the Company, by ALU Part, except as set
forth in Section 6.2(b) below. 
 (b) Underwriting. If the registration of which the Company gives notice
is for a registered public offering involving an underwriting, the Company shall so advise ALU Part as a part of the written notice given pursuant to Section 6.3(a)(i). In such event the right of ALU Part to registration pursuant to this
Section 6.3 shall be conditioned upon ALU Part’s participation in such underwriting and the inclusion of ALU Part’s Registrable Securities in the underwriting to the extent provided herein in subject to the limitations
expressed in Section 6.2. ALU Part shall, together with the Company and the other parties distributing their securities through such underwriting, enter into an underwriting agreement in customary form with the underwriter or
underwriters selected for such underwriting by the Company. Notwithstanding any other provision of this Section 6.3, if the underwriter determines that marketing factors require a limitation of the number of shares to be underwritten,
the underwriter may limit the number of Registrable Securities to be included in the registration and underwriting, subject to the terms of this Section 6.3. The Company shall so advise all holders of the Company’s securities that
would otherwise be registered and underwritten pursuant hereto, and the number of shares of such securities, including Registrable Securities, that may be included in the registration and underwriting shall be allocated first to the Company and
second to ALU Part and any other holders with registration rights on a pro rata basis based on the total number of securities subject to registration rights held by such Persons. No such reduction shall (i) reduce the securities being offered
by the Company for its own account to be included in the registration and underwriting, or (ii) subject to the limitations expressed in Section 6.2, reduce the amount of securities of ALU Part and the

  
 34 

 
TWVC Funds included in the registration below thirty percent (30%) of the total amount of securities included in such registration. No securities excluded from the underwriting by reason of
the underwriter’s marketing limitation shall be included in such registration. For the avoidance of doubt, nothing in this Section 6.3(b) is intended to diminish the number of securities to be included by the Company in the
underwriting. 
 (c) Market Stand Off. In the event the Company files a Piggyback Registration Statement pursuant to
this Section 6.3 for an underwritten offering, ALU Part hereby agrees that, upon the request of the underwriters, during the period ending on the date that is ninety (90) days after the date of the final prospectus relating to such
Piggyback Registration Statement or such other period as may be reasonably requested by an underwriter to accommodate regulatory restrictions on (1) the publication or other distribution of research reports and (2) analyst recommendations
and opinions, including, but not limited to, the restrictions contained in FINRA Rule 2711(f)(4) (or any successor provisions or amendments thereto), ALU Part will not, without the prior written consent of the underwriter, directly or indirectly,
(1) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of any Registrable Securities,
(2) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Registrable Securities or (3) engage in any short selling of the Common Stock or securities
convertible into or exercisable or exchangeable for Common Stock. The foregoing shall not apply to (a) the sale of any Registrable Securities to an underwriter pursuant to an underwriting agreement; (b) any transfers to any stockholder,
partner or member of, or owner of a similar equity interest in ALU Part, as the case may be, if, in any such case, such transfer is not for value; and (c) any transfer made by ALU Part (i) in connection with the sale or other bona fide
transfer in a single transaction of all or substantially all of ALU Part’s or any of ALU Part’s Affiliate’s capital stock, partnership interests, membership interests or other similar equity interests, as the case may be, or all or
substantially all of its assets, in any such case not undertaken for the purpose of avoiding the restrictions hereunder or (ii) to another corporation, partnership, limited liability company or other business entity so long as the transferee is
an affiliate and such transfer is not for value; provided, however, transfers pursuant to clauses (b) and (c)(ii), any such transferees shall agree in writing to be bound by this Section 6.3(c). The underwriters in connection with
such registration are intended third party beneficiaries of this Section 6.3(c) and shall have the right, power, and authority to enforce the provisions hereof as though they were a party hereto. ALU Part further agrees to execute such
agreements as may be reasonably requested by the underwriters in connection with such registration that are consistent with this Section 6.3(c) or that are necessary to give further effect thereto. The foregoing provisions of this
Section 6.3(c) shall be applicable to ALU Part only if all officers and directors of the Company and all stockholders owning more than 5% of the Company’s outstanding Common Stock, at the time the Company provides written notice of
an underwritten registered public offering pursuant to Section 6.3(a)(i), are subject to the same restrictions. Any discretionary waiver or termination of the restrictions of any similar agreement or restriction pertaining to other
stockholders by the Company or the underwriters shall apply pro rata to ALU Part, based on the number of shares subject to such agreements. 

(d) Right to Terminate Registration. The Company shall have the right to terminate or withdraw any registration
initiated by it under this Section 6.3 prior to the effectiveness of such registration whether or not ALU Part has elected to include securities in such registration. 

  
 35 

 6.4 Expenses of Registration. All expenses incurred in connection with all registrations
effected pursuant to Section 6.2, including all registration, SEC, stock exchange, filing and qualification fees (including state securities law fees and expenses), printing expenses, messenger and delivery expenses, escrow fees, accounting
fees, fees and disbursements of counsel for and independent public accountants of the Company, fees and expenses of all Persons retained by the Company and fees and disbursements of one special counsel for ALU Part (not to exceed $50,000) shall be
paid by the Company; provided, however, that the Company shall not be required to pay stock transfer taxes or underwriters’ discounts or selling commissions relating to Registrable Securities. 

6.5 Obligations of the Company. In effecting the registration of the Registrable Securities under this Article VI, the Company shall,
as expeditiously as reasonably possible: 
 (a) prepare and file with the SEC such amendments and supplements to the Shelf
Registration Statement (including without limitation, any required post-effective amendments) and the Prospectus included therein as may be necessary to effect and maintain the effectiveness of the Shelf Registration Statement and as may be required
by the applicable rules and regulations of the SEC and the instructions applicable to the form of the Shelf Registration Statement; 

(b) prepare and file with the SEC the registration statement required pursuant to Section 6.3 (the “Piggyback
Registration Statement,” and, together with the Shelf Registration Statement, the “Registration Statements” and, each individually a “Registration Statement”) and such amendments and supplements to the
Registration Statements (including without limitation, any required post-effective amendments) and the Prospectus included therein as may be necessary to effect and maintain the effectiveness of the Registration Statements and as may be required by
the applicable rules and regulations of the SEC and the instructions applicable to the form of the Registration Statements and to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by the
Registration Statements in accordance with the intended methods of disposition by sellers thereof set forth in such Registration Statement 

(c) comply with the provisions of the Securities Act with respect to the disposition of all of the Registrable Securities
covered by the Shelf Registration Statements in accordance with the intended methods of disposition by ALU Part provided for in the Registration Statements; 

(d) provide ALU Part and its legal counsel (“Legal Counsel”) a reasonable opportunity to participate in the
preparation of the Shelf Registration Statements, each prospectus included therein or filed with the SEC and each amendment or supplement thereto (but not including any documents incorporated by reference), in each case subject

  
 36 

 
to customary confidentiality restrictions, and give reasonable consideration to any comments Legal Counsel provides with respect to the Registration Statements or amendment or supplement thereto.
The Company shall furnish to Legal Counsel copies of any correspondence from the SEC or the staff of the SEC to the Company or its representatives relating to the Registration Statements; 

(e) keep the Shelf Registration Statement current and continuously effective pursuant to Rule 415 at all times until such date
the Registrable Securities registered pursuant to the Shelf Registration Statement are no longer Registrable Securities; 

(f) the Registration Statements shall not contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein, or necessary to make the statements therein not misleading; 
 (g) furnish to ALU Part such
numbers of copies of a prospectus, including all exhibits thereto and documents incorporated by reference therein and a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as they may
reasonably request in order to facilitate the disposition of Registrable Securities owned by them; 
 (h) in the event of any
underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing underwriter(s) of such offering. If ALU Part participates in such underwriting, it shall also enter
into and perform its obligations under such an agreement; 
 (i) promptly notify ALU Part (A) when the Registration
Statement or the Prospectus included therein or any Prospectus amendment or supplement or post-effective amendment has been filed, and, with respect to the Registration Statements or any post-effective amendment, when the same has become effective,
(B) of any comments by the SEC with respect thereto or any request by the SEC for amendments or supplements to the Registration Statements or prospectus or for additional information (the Company shall respond to such comments and requests from
the SEC as promptly as reasonably possible), (C) of the issuance by the SEC of any stop order suspending the effectiveness of the Registration Statements or the initiation or threatening of any proceedings for that purpose, (D) of the
receipt by the Company of any notification with respect to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose, or (E) if at any time
when a prospectus is required to be delivered under the Securities Act, that the Registration Statement, prospectus, prospectus amendment or supplement or post-effective amendment does not conform in all material respects to the applicable
requirements of the Securities Act and the rules and regulations of the SEC thereunder or contains an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein
not misleading in light of the circumstances then existing (the Company shall use its commercially reasonable efforts to promptly prepare a supplement or amendment to the Registration Statement to conform to such requirements or to correct such
untrue statement or omission, and deliver such number of copies of such supplement or amendment to the selling Investor as the selling Investor may reasonably request).; 

  
 37 

 (j) use its reasonable efforts to prevent the issuance of any stop order
suspending the effectiveness of any Registration Statement or of any order preventing or suspending the use of any preliminary or final prospectus and, if any such order is issued, to obtain the withdrawal of any such order as soon as practicable;

 (k) in the case of an underwritten offering, make available for inspection, at the Company’s headquarters during
normal business hours, by ALU Part, any underwriter participating in any distribution pursuant to such registration, and any attorney, accountant or other agent retained by ALU Part or underwriter, all financial and other records, pertinent
corporate documents and properties of the Company, as such parties may reasonably request, and cause the Company’s officers, directors and employees to supply all information reasonably requested by ALU Part, underwriter, attorney, accountant
or agent in connection with the Shelf Registration Statement; 
 (l) use its reasonable efforts to register or qualify, and
cooperate with ALU Part, the underwriters, if any, and their respective counsel, in connection with the registration or qualification of such Registrable Securities for offer and sale under the securities or “blue sky” laws of each state
and other jurisdiction of the United States as ALU Part or underwriters, if any, or their respective counsel reasonably request in writing, and do any and all other things reasonably necessary or advisable to keep such registration or qualification
in effect for such period as required by Section 6.2(a), as applicable; provided that the Company shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified or take any action which
would subject it to taxation or general service of process in any such jurisdiction where it is not then so subject; 
 (m)
notify ALU Part and underwriters, if any, of any pending proceeding against the Company under Section 8A of the Securities Act in connection with the offering of the Registrable Securities. 

(n) in the case of an underwritten offering, obtain for delivery to the underwriters, if any, an opinion or opinions from
counsel for the Company, dated the effective date of the Registration Statement or, in the event of an underwritten offering, the date of the closing under the underwriting agreement, in customary form, scope and substance, which opinions shall be
reasonably satisfactory to such underwriters and their respective counsel; 
 (o) in the case of an underwritten offering,
obtain for delivery to the Company and the underwriters, a cold comfort letter from the Company’s independent certified public accountants in customary form and covering such matters of the type customarily covered by cold comfort letters as
managing underwriter or underwriters reasonably request, dated the date of execution of the underwriting agreement and brought down to the closing under the underwriting agreement; 

  
 38 

 (p) comply with all requirements of The Nasdaq Capital Market with regard to the
issuance of the Common Shares and use its reasonable efforts to list the Registrable Securities covered by the Registration Statement with The Nasdaq Capital Market or any securities exchange on which the Common Stock is then listed; 

(q) provide and cause to be maintained a transfer agent and registrar for all Registrable Securities covered by the applicable
Registration Statement from and after a date not later than the effective date of the Registration Statement; 
 (r)
cooperate with ALU Part and the underwriters, if any, to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold, such certificates to be in such denominations and registered in such names as ALU
Part or the managing underwriters may request at least two Business Days prior to any sale of Registrable Securities; 
 (s)
in the event the Company becomes eligible to use a registration statement on Form S-3 for the resale of the Registrable Securities, the Company shall file a post-effective amendment to amend the Shelf Registration Statement to a registration
statement on Form S-3; 
 (t) use its reasonable efforts to comply with all applicable securities laws and make available to
ALU Part, as soon as reasonably practicable, an earnings statement satisfying the provisions of Section 11(a) of the Securities Act and the rules and regulations promulgated thereunder; and 

(u) enter into and perform customary agreements and take such other commercially reasonable actions as are prudent and
reasonably required in order to expedite or facilitate the disposition of the Registrable Securities 
 6.6 Other Registration
Rights. ALU Part acknowledges that the Company has granted registration rights to the TWVC Funds pursuant to the Stockholder Agreement. The Company agrees that it shall not, after the date hereof, grant to any other Person rights related to the
registration of any of the Company’s securities that are superior to, or more expansive than, those granted to ALU Part hereunder until such time as ALU Part has sold all of its Registrable Securities. 

6.7 Indemnification. For the avoidance of doubt, the indemnification provisions set forth in this Section 6.7 only apply to those
matters set forth in Article 6. All other Articles and Sections of the Agreement shall be governed by Section 4.12, except for indemnification rights related to the ALU Part Observer that are covered by Section 4.13. 

(a) Indemnification by the Company. To the extent permitted by law, the Company shall, and it hereby agrees to,
indemnify and hold harmless ALU Part, each of ALU Part’s officers, directors, employees, partners and agents, each Person controlling ALU Part, and each person who participates as a placement or sales agent or as an underwriter in any offering
or sale of the Registrable Securities, against any losses, claims, damages or liabilities (or actions or proceedings in respect thereof) (collectively, “Claims”) arising out of or are based upon (i) any untrue statement or
alleged untrue 

  
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statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document
incorporated by reference therein, (iii) any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not
misleading, (iv) any violation or alleged violation by the Company of any federal, state or common law rule or regulation applicable to the Company in connection with any such registration, qualification or compliance or (v) any failure to
register or qualify Registrable Securities in any state where the Company or its agents have affirmatively undertaken or agreed that the Company will undertake such registration or qualification on behalf of ALU Part, and the Company shall, and it
hereby agrees to, promptly reimburse each Investor or any such agent or underwriter for any legal or other out-of-pocket expenses reasonably incurred by them in connection with investigating or defending any such Claims, provided,
however, that the Company shall not be liable to any such person in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission made in such registration
statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with written information furnished to the Company by ALU Part or any agent, underwriter or representative of ALU Part expressly for
use in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, or by ALU Part’s failure to furnish the Company, upon request, with the information with respect to ALU Part, or any agent, underwriter
or representative of ALU Part, or ALU Part’s intended method of distribution, that is the subject of the untrue statement or omission or if the Company shall sustain the burden of proving that ALU Part or such agent or underwriter sold
securities to the person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable prospectus (excluding any documents incorporated by reference therein) or of the applicable
prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Company had previously furnished copies thereof to ALU Part or such agent or underwriter, and such prospectus corrected such untrue
statement or alleged untrue statement or omission or alleged omission made in such registration statement. 
 (b)
Indemnification by ALU Part. To the extent permitted by law, ALU Part shall, and hereby agrees to (i) indemnify and hold harmless the Company, its directors, officers, employees and each Person controlling the Company and each
underwriter, its partners, officers, directors, employees and each Person controlling such underwriter in any offering or sale of Registrable Securities, against any Claims to which the Company, its directors, officers, employees and each Person
controlling the Company may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue
statement of a material fact contained in such registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or arise out of or are based upon any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements therein not misleading, in each case only to the extent that such untrue statement or alleged untrue statement or omission or alleged omission was made

  
 40 

 
in reliance upon and in conformity with written information furnished to the Company by ALU Part or any agent, underwriter, or representative (as the case may be) expressly for use therein, and
(ii) will promptly reimburse the Company for any legal or out of pocket expenses reasonably incurred by the Company in connection with investigating or defending any such Claim; provided that in no event shall any indemnification and
reimbursement obligations under this Section 6.7(b) exceed the gross proceeds from the offering received by ALU Part, net of any underwriter discounts or placement agent fees and it is understood and agreed that the indemnification
obligations of ALU Part pursuant to any underwriting agreement entered into in connection with any registration statement shall be limited to the obligations contained in this Section 6.7(b). 

(c) Each party entitled to indemnification under this Section 6.7 (the “Indemnified Party”) shall
give notice to the party required to provide such indemnification (the “Indemnifying Party”) of any Claim as to which indemnification may be sought promptly after such Indemnified Party has actual knowledge thereof, and shall permit
the Indemnifying Party to assume the defense of any such claim or any litigation resulting therefrom; provided that counsel for the Indemnifying Party, who shall conduct the defense of such Claim, shall be subject to approval by the
Indemnified Party (whose approval shall not be unreasonably withheld) and the Indemnified Party may participate in such defense at the Indemnifying Party’s expense if (i) representation of such Indemnified Party would be inappropriate due
to actual or potential differing interests between such Indemnified Party and any other party represented by such counsel in such proceeding or (ii) the Indemnifying Party shall have failed to promptly assume the defense of such proceeding; and
provided further that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Article VI, except to the extent that such failure to give
notice shall materially adversely affect the Indemnifying Party in the defense of any such Claim. No Indemnifying Party, in the defense of any such claim or litigation, may, without the consent of each Indemnified Party, consent to entry of any
judgment or enter into any settlement unless such settlement includes an unconditional release of such Indemnified Party from all liabilities on claims that are the subject matter of such Claim. 

(d) In order to provide for just and equitable contribution in case indemnification is unavailable to an Indemnified Party (by
reason of legal prohibition or otherwise), the Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Claim in such proportion as is
appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions which resulted in such Claim, as well as any other relevant equitable considerations. The relative fault of such Indemnifying
Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of material fact or omission or alleged omission to state a material fact, has been
made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and such party’s relative intent, knowledge, access to information and opportunity to correct or prevent such actions; provided,
however, that, in any case, (i) ALU Part will not be required to contribute any amount in excess of the public offering price of all securities offered by it pursuant to the Shelf Registration Statement

  
 41 

 
(less all underwriting fees and discounts), and (ii) no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to
contribution from any Person who was not guilty of such fraudulent misrepresentation. 
 (e) The indemnity and contribution
agreements contained herein are in addition to any liability that the Indemnifying Party may have to the Indemnified Parties and shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Party or
any officer, director or controlling Person of such Indemnified Party and shall survive the transfer of the Registrable Securities. 
 6.8
Information by ALU Part. ALU Part shall furnish to the Company such information regarding ALU Part and the distribution proposed by ALU Part as the Company may reasonably request in writing and as shall be required in connection with any
registration, qualification or compliance referred to in this Article 6.8. 
 6.9 Transfer of Registration Rights. The rights
contained in Section 6.2 hereof to cause the Company to register the Registrable Securities, and the other rights set forth in this Article VI, may be assigned or otherwise conveyed by ALU Part to any transferee of the Registrable
Securities if the transfer was permitted under Section 4.1. 
 6.10 Rule 144 Reporting. With a view to making available
to ALU Part the benefits of certain rules and regulations of the SEC that may permit the sale of the Registrable Securities to the public without registration, the Company agrees to use its commercially reasonable efforts to: 

(a) make and keep current public information available, within the meaning of Rule 144 or any similar or analogous rule
promulgated under the Securities Act; and 
 (b) file with the SEC, in a timely manner, all reports and other documents
required of the Company under the Securities Act and Exchange Act; 
 (c) as long as ALU Part owns any Registrable
Securities, furnish in writing upon such Investor’s written request a written statement by the Company that it has complied with the reporting requirements of Rule 144 and of the Securities Act and Exchange Act; and 

(d) undertake any additional actions reasonably necessary to maintain the availability of the use of Rule 144. 

6.11 Termination of Registration Rights. The rights of ALU Part under Article VI hereof shall terminate on the date when there
no longer remaining any Registrable Securities; provided that Section 6.4 and Section 6.8 shall survive such termination. 

ARTICLE VII 
 MISCELLANEOUS

 7.1 Termination. This Agreement may be terminated by the Company or any Investor, by written notice to the other parties, if the
Closing has not been consummated by the 

  
 42 

 
third Business Day following the date of this Agreement; provided, however, that the right to terminate this Agreement shall not be available to any Person whose failure to comply
with its obligations under this Agreement has been the cause of or resulted in the failure of the Closing to occur on or before such time, and provided further that no such termination will affect the right of any party to sue for any breach by the
other party (or parties) and shall not affect any provisions hereof that expressly survive termination in accordance with the terms hereof. 

7.2 Fees and Expenses. Except as expressly set forth in the Transaction Documents or the Alcatel-Lucent Loan Agreement to the contrary,
each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement
and the transactions contemplated hereby; provided that the Company shall pay all (a) reasonable costs and expenses of ALU Part and its Affiliates associated with the negotiation, preparation, due diligence and administration of the
Transaction Documents and, prior to the funding date thereunder, the Alcatel-Lucent Loan Agreement, and each of the documents related thereto up to a cumulative maximum of $300,000; (b) reasonable costs and expenses of Alcatel-Lucent USA
associated with the administration of the Alcatel-Lucent Loan Agreement following the funding date thereunder, including, without limitation, any costs and expenses incurred in connection with the perfection of the collateral set forth in the
Alcatel-Lucent Loan Agreement and held outside of the United States, and any costs of collection incurred by Alcatel-Lucent USA (including reasonable attorneys’ fees and expenses); and (c) reasonable costs and expenses of the TWVC Funds
associated with the negotiation, preparation, due diligence and administration of the Transaction Documents and each of the documents related thereto up to a cumulative maximum of $300,000. The Company shall pay all Transfer Agent fees in connection
with the sale and issuance of the securities. 
 7.3 Entire Agreement. The Transaction Documents (and the Alcatel-Lucent Loan
Agreement for purposes of Section 7.2 only), together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and
understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules. At or after the Closing, and without further consideration, the Company will execute and
deliver to the Investors such further documents as may be reasonably requested in order to give practical effect to the intention of the parties under the Transaction Documents. 

7.4 Amendments; Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of
an amendment, by the Company and each of the Investors. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default
or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right. 

7.5 Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in
writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile or email at the facsimile number or email address specified in this Section prior to

  
 43 

 
6:30 p.m. (Pacific Time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile or email at the facsimile
number or email address specified in this Section on a day that is not a Trading Day or later than 6:30 p.m. (Pacific Time) on any Trading Day, (c) the Trading Day following the date of deposit with a nationally recognized overnight courier
service, or (d) upon actual receipt by the party to whom such notice is required to be given. The addresses, facsimile numbers and email addresses for such notices and communications are those set forth on the signature pages hereof, or such
other address or facsimile number as may be designated in writing hereafter, in the same manner, by any such Person. 
 7.6
Construction. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. The language used in this Agreement will be deemed to be the
language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. 
 7.7
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the
prior written consent of the Investors. An Investor may not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Company, except that such Investor may transfer or assign its rights and obligations
under this Agreement, in whole or in part, to one or more of their respective Affiliates at any time; provided that such transfer or assignment will not relieve such Investor of any of its obligations hereunder. 

7.8 Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of and be binding upon the Company and the
Investors and their respective successors and permitted assigns. Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any person, other than those persons mentioned in the preceding sentence or otherwise
explicitly mentioned in this Agreement, any legal or equitable right, remedy or claim under or in respect of this Agreement, or any provisions herein contained, this Agreement and all conditions and provisions hereof being intended to be and being
for the sole and exclusive benefit of such persons and for the benefit of no other person. 
 7.9 Governing Law; Venue; Waiver of Jury
Trial. THE CORPORATE LAWS OF THE STATE OF DELAWARE SHALL GOVERN ALL ISSUES CONCERNING THE RELATIVE RIGHTS OF THE COMPANY AND ITS STOCKHOLDERS. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS AGREEMENT
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE. THE COMPANY AND THE INVESTORS HEREBY IRREVOCABLY SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN NEW CASTLE COUNTY FOR THE
ADJUDICATION OF ANY DISPUTE BROUGHT BY THE COMPANY OR ANY INVESTORS HEREUNDER, IN CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS),
AND HEREBY IRREVOCABLY WAIVE, AND AGREE NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING BROUGHT BY THE 

  
 44 

 
COMPANY OR THE INVESTORS, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, OR THAT SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY, AFTER CONSULTING OR
HAVING HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL, EACH KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE IRREVOCABLY, ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS ARISING OUT OF OR RELATING TO THIS
AGREEMENT (INCLUDING WITH RESPECT TO THE ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS) AND SUCH PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. 

7.10 Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one
and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is
delivered by facsimile transmission or email attachment, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or
email-attached signature page were an original thereof. 
 7.11 Survival. The representations and warranties of the Company contained
herein shall survive the Closing. The covenants of the Company and the Investors contained in this Agreement shall terminate on the Closing Date; provided, that the covenants that by their terms are required to be performed in whole or in part
following the Closing Date shall survive the Closing Date. 
 7.12 Severability. If any provision of this Agreement is prohibited by
law or otherwise held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree
upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement. 

7.13 Replacement of Certificate. If any certificate or instrument evidencing any Company Shares is mutilated, lost, stolen or
destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction and the execution by the holder thereof of a customary lost certificate affidavit of that fact and an agreement to indemnify and hold harmless the Company for any losses in connection
therewith. The applicants for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance of such replacement Company Shares. 

7.14 Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages,
each of the Investors and the Company will be entitled to seek specific performance under the Transaction Documents. The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any

  
 45 

 
breach of obligations described in the foregoing sentence and hereby agrees to waive in any action for specific performance of any such obligation (other than in connection with any action for
temporary restraining order) the defense that a remedy at law would be adequate. 
 7.15 Adjustments in Share Numbers and Prices. In
the event of any stock split, subdivision, dividend or distribution payable in shares of Common Stock (or other securities or rights convertible into, or entitling the holder thereof to receive directly or indirectly shares of Common Stock),
combination or other similar recapitalization or event occurring after the date hereof and prior to the Closing, each reference in any Transaction Document to a number of shares or a price per share shall be amended to appropriately account for such
event. 
 7.16 Independent Nature of Investors’ Obligations and Rights. The obligations of each Investor under any Transaction
Document are several and not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the performance of the obligations of any other Investor under any Transaction Document. The decision of each Investor
to purchase Common Shares pursuant to this Agreement has been made by such Investor independently of any other Investor and independently of any information, materials, statements or opinions as to the business, affairs, operations, assets,
properties, liabilities, results of operations, condition (financial or otherwise) or prospects of the Company which may have been made or given by any other Investor or by any agent or employee of any other Investor, and no Investor or any of its
agents or employees shall have any liability to any other Investor (or any other person) relating to or arising from any such information, materials, statements or opinions. Nothing contained herein or in any Transaction Document, and no action
taken by any Investor pursuant thereto, shall be deemed to constitute the Investors as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert or as a
group with respect to such obligations or the transactions contemplated by the Transaction Document. Each Investor acknowledges that no other Investor has acted as agent for such Investor in connection with making its investment hereunder and that
no other Investor will be acting as agent of such Investor in connection with monitoring its investment hereunder. Each Investor shall be entitled to independently protect and enforce its rights, including without limitation the rights arising out
of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Investor to be joined as an additional party in any proceeding for such purpose. 

[SIGNATURE PAGES TO FOLLOW] 

  
 46 

 IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly
executed by their respective authorized signatories as of the date first indicated above. 
  

					
	IKANOS COMMUNICATIONS, INC.
		
	By:	 	 /s/ Omid Tahernia

		 	Name:	 	Omid Tahernia
		 	Title:	 	President & Chief Executive Officer
	
	Address for Notice:
	
	Ikanos Communications, Inc.
	47669 Fremont Blvd.
	Fremont, CA 94538
	Facsimile No.: (510) 979-0500
	Telephone No.: (510) 979-0400
	Attn: General Counsel
	
	with a copy (which shall not constitute notice) to:
	
	Pillsbury Winthrop Shaw Pittman LLP
	2550 Hanover Street
	Palo Alto, CA 94304
	Facsimile No.: (650) 233-4545
	Telephone No.: (650) 233-4537
	Attn: Jorge A. del Calvo

 COMPANY SIGNATURE PAGE 

 IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly
executed by their respective authorized signatories as of the date first indicated above. 
  

					
	ALCATEL-LUCENT PARTICIPATIONS, S.A
		
	By:	 	 /s/    Remi
Thomas        

		
	Its:	 	 Head of M&A Corporate Development

	
	Address for Notice:
	
	Alcatel-Lucent Participations, S.A
	Address:	 	148/152 route de la Reine
		 	92100 Boulogne-Billancourt
		 	France
	Telephone No.: +33 (0) 1 55 14 10 10
	Attention: Anit Jain (M&A Department)
	
	with a copy to (which shall not constitute notice) to:
	
	Winston & Strawn LLP
	Address:	 	200 Park Avenue
		 	New York, New York 10166
	Telephone No.: 212-294-6721
	Attention: Robert J. Rawn

 INVESTOR SIGNATURE PAGE 

 IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly
executed by their respective authorized signatories as of the date first indicated above. 
  

					
	TALLWOOD III, L.P.
	 TALLWOOD III PARTNERS, L.P.

TALLWOOD III ASSOCIATES, L.P.

	
	By: Tallwood III Management, LLC
	Its General Partner
		
	By:	 	 /s/ George Pavlov

		 	Managing Member
	
	Address for Notice:
	
	Tallwood Venture Capital
	Facsimile No.: (650) 473-6755
	Telephone No.: (650) 473-6750
	
	with a copy to (which shall not constitute notice) to:
	
	Latham & Watkins LLP
	Address:	 	140 Scott Drive
		 	Menlo Park, California 94025
	Telephone No.: 650-463-2606
	Attention: Christopher L. Kaufman

 Exhibit A 

TWVC Standby Purchase Agreement 

 Exhibit B 
  

									
	 Investor
	  	No. of Shares	 	  	Purchase Price	 
			
	 Alcatel-Lucent Participations, S.A
	  	 	12,195,121	  	  	$	4,999,999.61	  
			
	 Tallwood III, L.P.
	  	 	24,188,597	  	  	$	9,917,324.77	  
			
	 Tallwood III Partners, L.P.
	  	 	3,063,018	  	  	$	1,255,837.38	  
			
	 Tallwood III Associates, L.P.
	  	 	187,408	  	  	$	 76,837.28	  

  
 51EX-10.2

 Exhibit 10.2 

LOAN AND SECURITY AGREEMENT 
 This
LOAN AND SECURITY AGREEMENT (this “Agreement”) dated as of September 29, 2014 (the “Effective Date”), between
ALCATEL-LUCENT USA, INC., a Delaware corporation (“Lender”), and IKANOS COMMUNICATIONS,
INC., a Delaware corporation (“Borrower”), provides the terms on which Lender shall lend to Borrower and Borrower shall repay Lender. The parties agree as follows: 

 

	1	ACCOUNTING AND OTHER TERMS 

 Accounting terms not defined in this Agreement shall be construed
following GAAP. Calculations and determinations must be made following GAAP. Capitalized terms not otherwise defined in this Agreement shall have the meanings set forth in Section 13. All other terms contained in this Agreement, unless
otherwise indicated, shall have the meaning provided by the Code to the extent such terms are defined therein. 
  

	2	LOAN AND TERMS OF PAYMENT 

 2.1 Promise to Pay. Borrower hereby
unconditionally promises to pay Lender the outstanding principal amount of the Loan, including all accrued PIK Interest, as and when due in accordance with this Agreement. 

2.2 The Loan. 
 (a)
Availability. Subject to the terms and conditions set forth herein, Lender agrees to make the Loan to Borrower on the Funding Date in an aggregate amount (the “Original Principal Amount”) not to exceed $10,000,000; provided
that, (i) the Borrower shall have the option to reduce the Original Principal Amount on a dollar-for-dollar basis for each Dollar of gross proceeds received by the Borrower in the Rights Offering in excess of $5,000,000, excluding any
investment by Taurus in the Rights Offering and (ii) such Original Principal Amount shall be reduced automatically on a dollar-for-dollar basis for each Dollar of gross proceeds received by the Borrower in the Rights Offering in excess of
$15,000,000, excluding any investment by Taurus in the Rights Offering (e.g. if the gross proceeds received by the Borrower in the Rights Offering are equal to $20,000,000, the Original Principal Amount shall be reduced automatically to $5,000,000);
provided, however, that, except as provided in Section 2.2(b), the Original Principal Amount shall not be reduced to an amount less than $1,000,000. Any amount of the Loan repaid or prepaid may not be reborrowed. The proceeds of the Loan shall
be used by the Borrower exclusively for development of Chipsets to be produced by Borrower pursuant to and under the terms of the Commercial Agreement. 

(b) Termination of Loan Commitment. The commitment of the Lender to make the Loan shall be terminated (i) at the option of either
party to this Agreement if the all of the Transactions shall not have been consummated on or prior to March 31, 2015 or (ii) if Borrower shall have received gross proceeds from the Rights Offering in an amount equal to or greater than
$25,000,000 (excluding any investment by Taurus in the Rights Offering). 
 2.3 Interest. 

(a) Rate of Interest. Subject to the provisions of Section 2.3(c) below, the outstanding principal amount of the Loan shall
bear interest at a rate equal to nine and one-half percent (9.50%) per annum, computed on the basis of a 365/366-day year for the actual number of days elapsed. 

(b) Payment of Interest. Interest shall be paid as follows: 

(i) On each Interest Payment Date, interest shall be paid in arrears in-kind, by capitalizing and adding such interest to the
unpaid principal amount of the Loan (such capitalized interest, “PIK Interest”). 
 (ii) All PIK Interest
so added shall be treated as principal amount of the Loan for all purposes of this Agreement. Following any such increase in the principal amount of the Loan, interest will accrue on such increased amount. Interest shall accrue from and
including the Funding Date (or the payment of any PIK Interest) to but excluding the date of any prepayment or repayment thereof. 
 (c)
Default Rate. Upon the occurrence and during the continuance of an Event of Default, at the option of the Lender upon written notice to Borrower, the PIK Interest shall be increased to twelve percent (12.00%) per annum (the
“Default Rate”). 

 2.4 Lender Expenses. Borrower shall pay to Lender (a) all reasonable costs and
expenses of Lender associated with the negotiation, preparation, due diligence and pre-Funding Date administration of the Loan Documents and all other documents executed in connection with the Loan in an amount not to exceed $300,000 (inclusive of
expenses incurred in connection with the ALU PIPE Investment), on the Effective Date, and (b) all reasonable costs and expenses of Lender associated with the post-Funding Date administration of the Loan, including without limitation any costs
and expenses incurred in connection with the perfection of the Intellectual Property Collateral held outside of the United States, and any costs of collection incurred by the Lender (including reasonable attorneys’ fees and expenses). 

2.5 Repayment of Loan. 

(a) Payments in Chipsets. Notwithstanding anything in this Section to the contrary, Borrower may elect to repay principal and accrued
PIK Interest on the Loan (including the November 30, 2016 mandatory payment required under Section 2.5(d)) by delivery to Lender or an Affiliate of Lender of Chipsets produced by Borrower under the Commercial Agreement as follows
(or pursuant to such other notice or proceeds application protocols as may be mutually agreed between the Borrower and the Lender): (i) Lender or an Affiliate of Lender, as applicable, shall accept such Chipsets, (ii) Borrower shall issue
a written notice to Lender or such Affiliate of Lender, as applicable, in the case of a notice to Lender, instructing it to apply the invoice amount to the Loan, and in the case of a notice to such Affiliate of Lender, instructing it to pay the
invoice amount directly to Lender for application to the Loan, (iii) Lender shall apply invoice amount for such Chipsets to reduce the outstanding principal amount of the Loan or accrued PIK Interest, as applicable, on a dollar-for-dollar basis
so long as the price for such Chipsets quoted on the Borrower’s invoice complies with the terms of the Commercial Agreement. 
 (b)
Voluntary Payments in Cash. Borrower may, at its option from time to time upon not less than three (3) days prior written notice to Lender, repay principal and accrued PIK Interest on the Loan, provided that the amount of any such
prepayment is at least $100,000 and in integral multiples of $25,000 above $100,000. 
 (c) Mandatory Prepayments from Sale of
Collateral. Within one (1) Business Day after the occurrence of any sale or disposition by Borrower or any Material Subsidiary of (i) Intellectual Property Collateral of Borrower or any of its Material Subsidiaries and
(ii) subject to the terms of the Intercreditor Agreement, any other Collateral, Borrower shall make a prepayment of the Loan in an amount equal to 100% of the cash proceeds received by Borrower and/or any of such Material Subsidiaries (net of
reasonable and documented expenses, taxes and repayment of directly related Indebtedness) from such sale or disposition. 
 (d)
Mandatory Payments. To the extent not otherwise paid earlier as provided herein, the Borrower shall repay the aggregate principal amount of the Loan outstanding on the following dates in the respective amounts set forth opposite such
dates (which amounts may be reduced as a result of the application of prepayments of the Loan): 
  

			
	 Date
	  	 Amount

		
	November 30, 2016	  	An amount equal to 15.0% of the outstanding principal balance of the Loan (including PIK Interest accrued and unpaid to date).
		
	November 30, 2017	  	The remaining aggregate principal amount of the Loan, including all accrued PIK Interest, outstanding on such date; provided that such remaining amount shall be paid by the Borrower in cash.

 (e) Cash Payments Generally. Except as otherwise expressly provided herein, all payments in cash
by Borrower shall be made to an account designated in writing by Lender to Borrower and shall be made in immediately available funds, no later than 1:00 p.m. (New York time) on the dates specified herein. Any payment received by Lender later than
1:00 p.m. (New York time), shall be deemed to have been received on the following Business Day and any applicable interest or fee shall continue to accrue until such following Business Day. 

  
 -2- 

 2.6 Loan Account. Lender, shall record on its books and records the amount of the Loan
made, the interest rate applicable, all payments of principal and PIK Interest thereon and the principal balance thereof from time to time outstanding. Such record shall, absent manifest error, be conclusive evidence of the amount of the Loan made
by the Lender to Borrower and the PIK Interest and payments thereon. Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any amount owing with respect to the
Loan or provide the basis for any claim against Lender. 
  

	3	CONDITIONS OF LOAN 

 3.1 Conditions Precedent to Effectiveness of this
Agreement. The effectiveness of this Agreement is subject to the condition precedent that Lender shall have received, in form and substance satisfactory to Lender, such documents, and completion of such other matters, as Lender may reasonably
deem necessary or appropriate, including, without limitation: 
 (a) duly executed original signatures to the Loan Documents (and the
deliverables required under each Loan Document); 
 (b) duly executed original signatures to the completed Borrowing Resolutions for
Borrower; 
 (c) Borrower’s Operating Documents and a good standing certificate of Borrower certified by the Secretary of State of the
State of Delaware as of a date no earlier than thirty (30) days prior to the Effective Date; 
 (d) certified copies, dated as of a
recent date, of financing statement searches and/or business profile searches, as Lender shall request, accompanied by written evidence (including any UCC termination statements) that the Liens indicated in any such financing statements either
constitute Permitted Liens or have been or, in connection with the effectiveness of this Agreement, will be terminated or released; 
 (e)
a definitive binding term sheet relating to the Commercial Agreement and the Collaboration Agreement between the Borrower and Lender (or an Affiliate of Lender) in connection with the development, production and delivery of the Chipsets, together
with the duly executed original signatures thereto; 
 (f) (i) a commitment letter from SVB providing for an amendment of the SVB Credit
Facility and (ii) the execution and delivery of the Intercreditor Agreement, together with the duly executed original signatures thereto; 

(g) definitive documentation relating to the $5,000,000 “PIPE” investment by Alcatel-Lucent Participations, S.A., an Affiliate of
the Lender to the Borrower (the “ALU PIPE Investment”); 
 (h) definitive documentation relating to the “PIPE”
investment by Taurus to the Borrower (the “Taurus PIPE Investment” and together with the ALU PIPE Investment, the “PIPE Investments”) and a backstop commitment by Taurus with respect to the Rights Offering in an
aggregate amount of $22,500,000, together with the duly executed original signatures thereto; 

  
 -3- 

 (i) Borrower shall have issued to Lender or to an Affiliate of Lender, as directed by Lender,
warrants having a term of three (3) years (the “Warrants”), which Warrants shall entitle Lender or such Affiliate of Lender to purchase 3,157,894 shares of common stock of the Borrower (the “Warrant Issuance”);
provided that up to 50% of such Warrants shall be subject to cancellation in the event that the Original Principal Amount of the Loan is reduced pursuant to Section 2.2(a) or the commitment of the Lender to make the Loan is terminated
pursuant to Section 2.2(b) and the number of shares subject to cancellation shall be proportionate to the reduction of such Original Principal Amount (e.g. if the Original Principal Amount is reduced to $5,000,000, then 25.0% of such
Warrants shall be subject to cancellation); 
 (j) customary legal opinions from counsel to Borrower dated as of the Effective Date; and

 (k) payment of the Lender expenses then due as specified in Section 2.4(a) hereof. 

3.2 Conditions Precedent to the Loan. Lender’s obligation to make the Loan, is subject to the following conditions precedent:

 (a) the execution and delivery of the Commercial Agreement and the Collaboration Agreement, together with all documents required in
connection thereto; 
 (b) the closing of the Rights Offering; and 

(c) the execution and delivery of an amendment to the SVB Credit Facility loan documents reasonably required by Lender in connection with the
Transactions, on terms satisfactory to Lender; 
 (d) Taurus shall have funded new investments to the Borrower through the Taurus PIPE
Investment, the Rights Offering or other form of investment acceptable to the Lender in an aggregate amount of at least $22,500,000; 
 (e)
except as otherwise provided in Section 3.4(a), timely receipt of an executed Notice of Borrowing; 
 (f) the representations
and warranties in this Agreement shall be true, accurate, and complete in all material respects on the Funding Date; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are
qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects only as of such date, and
no Event of Default shall have occurred and be continuing or result from the Loan; and 
 (g) Ikanos Technology shall have transferred to
Borrower its right, title, and interest to at least eighty percent (80%) (determined by value pursuant to a metric to be agreed by Borrower and Lender within thirty (30) days after the Effective Date) of the Intellectual Property
registrations owned by Ikanos Technology on the Effective Date and listed on Schedule 5.3. 
 (h) in Lender’s sole discretion,
there has not been a Material Adverse Change. 
 3.3 Covenant to Deliver. Borrower agrees to deliver to Lender each item required to
be delivered to Lender under this Agreement as a condition precedent to the Loan. Borrower expressly agrees that the funding of the 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, and the making of the Loan in the absence of a required item shall be in Lender’s sole discretion. 

3.4 Procedures for Borrowing. 

(a) Subject to the prior satisfaction of all other applicable conditions to the making of the Loan set forth in this Agreement, the Loan
shall be made upon the Borrower’s irrevocable written notice delivered to Lender 

  
 -4- 

 
in the form of a Notice of Borrowing, executed by a Responsible Officer of the Borrower or his or her designee. Such Notice of Borrowing must be received by Lender prior to 12:00 p.m. New York
Time at least one (1) Business Day prior to the Funding Date. 
 (b) The proceeds of the Loan will then be made available to Borrower
on the Funding Date by Lender by wire transfer to such account as Borrower may instruct in the Notice of Borrowing. 
  

	4	CREATION OF SECURITY INTEREST 

 4.1 Grant of Security Interest. Borrower
hereby grants Lender, to secure the prompt payment and performance in full of all of the Obligations of Borrower, a continuing security interest in, and pledges to Lender, the Collateral described on Exhibit A hereto, wherever located, whether now
owned or hereafter acquired or arising, and all proceeds and products thereof. Notwithstanding the foregoing, at all times, the Collateral shall include all proceeds of all Intellectual Property of Borrower (whether acquired upon the sale, lease,
license, exchange or other disposition of such Intellectual Property) and all other rights arising out of such Intellectual Property. 

4.2 Priority of Security Interest. Borrower represents, warrants, and covenants that the security interest granted herein is and shall
at all times continue to be (i) a first priority perfected security interest in all present and future Intellectual Property of Borrower and its Material Subsidiaries, from the date hereof and continuing through the termination or expiration of
this Agreement, and (ii) a second priority perfected security interest in all other Collateral (in each case, subject only to Permitted Liens). If a Credit Party shall acquire a commercial tort claim involving an amount in excess of $50,000,
Borrower shall promptly notify Lender in a writing signed by Borrower and the applicable Credit Party of the general details thereof and grant to Lender in such writing a security interest therein and in the proceeds thereof, all upon the terms of
this Agreement, with such writing to be in form and substance reasonably satisfactory to Lender. 
 If this Agreement is terminated, Lender’s
Lien in the applicable Collateral shall continue until the Obligations (other than inchoate indemnity obligations) are repaid in full in cash. Upon payment in full in cash of the Obligations and at such time as Lender’s obligation to make the
Loan to Borrower has terminated, Lender shall, at Borrower’s sole cost and expense, release its Liens in the Collateral and all rights therein shall revert to the Credit Parties. 

4.3 Authorization to File Financing Statements. The Credit Parties hereby authorize Lender to file financing statements and/or
statements containing particulars of charges, without notice to the Credit Parties, with all appropriate jurisdictions to perfect or protect Lender’s interest or rights hereunder, including a notice that any disposition of the Collateral, by
the Credit Parties or any other Person, shall be deemed to violate the rights of Lender under the Code. Such financing statements may indicate the Collateral as “all assets of the Debtor” or words of similar effect, or as being of an equal
or lesser scope, or with greater detail, all in Lender’s discretion. 
  

	5	REPRESENTATIONS AND WARRANTIES 

 Borrower represents and warrants as follows: 

5.1 Due Organization, Authorization; Power and Authority. Borrower is duly existing and in good standing as a Registered Organization
in the State of Delaware and is qualified and licensed to do business and is in good standing in any jurisdiction in which the conduct of its business or its ownership of property requires that it be qualified except where the failure to do so could
not reasonably be expected to cause a Material Adverse Change. Each other Credit Party is duly existing and in good standing in its jurisdiction of formation and is qualified and licensed to do business and is in good standing in any jurisdiction in
which the conduct of its business or its ownership of property requires that it be qualified except where the failure to do so could not reasonably be expected to cause a Material Adverse Change. In connection with this Agreement, Borrower has
delivered to Lender (or will deliver by the date specified in Section 6.15(a)) a completed certificate signed by Borrower, entitled “Perfection Certificate”. Following the delivery of such Perfection Certificate, Borrower represents
and warrants to Lender that (a) Borrower’s exact legal name is that indicated on the Perfection Certificate and on the signature page hereof; (b) Borrower is an organization of the type and is organized in the jurisdiction set forth
in the Perfection Certificate; (c) the Perfection Certificate accurately sets forth Borrower’s organizational identification number; (d) except as set 

  
 -5- 

 
forth in written notice provided to Lender, as specified in Section 7.2(b) hereof, after the date of this Agreement, the Perfection Certificate accurately sets forth the Borrower’s
place of business, or, if more than one, its chief executive office as well as the Borrower’s mailing address (if different than its chief executive office); (e) Borrower (and each of its predecessors) has not, in the past five
(5) years, changed its jurisdiction of formation, organizational structure or type, or any organizational number assigned by its jurisdiction; and (f) all other information set forth on the Perfection Certificate pertaining to Borrower and
each of its Subsidiaries is accurate and complete (it being understood and agreed that Borrower may from time to time update certain information in the Perfection Certificate after the Effective Date to the extent permitted by one or more specific
provisions in this Agreement). 
 The execution, delivery and performance by each Credit Party of the Loan Documents to which such Credit Party is a party
have been duly authorized, and do not (i) conflict with any of such Credit Party’s organizational or constitutional documents, (ii) contravene, conflict with, constitute a default under or violate any material Requirement of Law,
(iii) contravene, conflict or violate any applicable order, writ, judgment, injunction, decree, determination or award of any Governmental Authority by which such Credit Party or any of such Credit Party’s Subsidiaries or any of their
property or assets may be bound or affected, (iv) require any action by, filing, registration, or qualification with, or Governmental Approval from, any Governmental Authority (except such Governmental Approvals which have already been obtained
and are in full force and effect) and or (v) constitute an event of default under any material agreement by which any Credit Party is bound. The Credit Parties are not in default under any agreement to which they, or any one of them, are a
party or by which they, or any one of them, are bound in which the default could reasonably be expected to cause a Material Adverse Change. 

5.2 Collateral Generally. Each Credit Party has good title to, has rights in, and the power to transfer each item of the Collateral
upon which it purports to grant a Lien hereunder, free and clear of any and all Liens except Permitted Liens. The Credit Parties have no deposit accounts other than the deposit accounts described in the Perfection Certificate delivered to Lender in
connection herewith, or of which Borrower has given Lender notice and taken such actions as are necessary to give Lender a perfected security interest therein.  

The Collateral is not in the possession of any third party bailee (such as a warehouse) except as otherwise provided in the Perfection Certificate or as set
forth in written notice provided to Lender, as specified in Section 7.2(b) hereof, after the date of this Agreement. Except for (a) testing Equipment and Inventory maintained in the ordinary course of the Credit Parties’ business at
third party test houses and (b) Equipment and Inventory with an aggregate value of $250,000 which by its very nature is intended to be used, and in the ordinary course of business is used, at locations other than any Credit Party’s place
of business (such as laptop computers, marketing and trade show materials, cell phones, demonstration materials, materials made available to potential customers for proof-of concept trials, and co-location equipment), none of the components of the
Collateral shall be maintained at locations other than as provided in the Perfection Certificate or as permitted pursuant to Section 7.2. 
 All
Inventory is in all material respects of good and marketable quality. 
 5.3 Intellectual Property Collateral. 

(a) All of the Intellectual Property Collateral registered in the United States of America is owned by the Borrower. Schedule 5.3 sets
forth a complete and correct list of all Intellectual Property owned by Borrower and its Subsidiaries. 
 (b) Each Credit Party is the sole
owner of the Intellectual Property which it owns or purports to own except for (a) non-exclusive licenses granted to its customers in the ordinary course of business, (b) over-the-counter software that is commercially available to the
public, and (c) material Intellectual Property licensed to a Credit Party and noted on such Credit Party’s Perfection Certificate, except as set forth in a written notice provided to Lender, as specified in Section 6.8(b) hereof,
after the date of this Agreement. Each Patent which a Credit Party owns or purports to own and which is material to a Credit Party’s business is valid and enforceable, and no part of the Intellectual Property which a Credit Party owns or
purports to own and which is material to a Credit Party’s business has been judged invalid or unenforceable, in whole or in part. To the best of the Borrower’s knowledge, no claim has been made that any part of the Intellectual Property
violates the rights of any third party except to the extent such claim would not reasonably be expected to have caused a Material Adverse Change. 

(c) Except as noted on the Perfection Certificate or to the extent the Borrower has given Lender written notice, as specified in
Section 6.8(b) hereof, no Credit Party is a party to, nor is any Credit Party bound by, any Restricted License. 

  
 -6- 

 5.4 Litigation. Except as disclosed in the Perfection Certificate or as set forth in a
notice provided to Lender after the date of this Agreement, there are no actions or proceedings pending or, to the knowledge of a Responsible Officer of the Borrower, threatened in writing by or against any or all of the Credit Parties, involving
more than, individually or in the aggregate, $500,000. 
 5.5 Financial Statements; Financial Condition. All consolidated
financial statements for Borrower and any of its Subsidiaries delivered to Lender fairly present in all material respects Borrower’s consolidated financial condition and Borrower’s consolidated results of operations. There has not been any
material deterioration in Borrower’s consolidated financial condition since the date of the most recent financial statements submitted to Lender 

5.6 Solvency. The fair salable value of Borrower’s assets (including goodwill minus disposition costs) exceeds the fair value of
its liabilities; Borrower is left with unreasonably small capital after the transactions in this Agreement; and Borrower is able to pay its debts (including trade debts) as they mature. 

5.7 Regulatory Compliance. Borrower is not an “investment company” or a company “controlled” by an “investment
company” under the Investment Company Act of 1940, as amended. Borrower is not engaged as one of its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of Governors). Borrower
has complied in all material respects with the Federal Fair Labor Standards Act. Neither Borrower nor any of its Subsidiaries is a “holding company” or an “affiliate” of a “holding company” or a “subsidiary
company” of a “holding company” as each term is defined and used in the Public Utility Holding Company Act of 2005. No Credit Party has violated any laws, ordinances or rules, the violation of which could reasonably be expected to
cause a Material Adverse Change. No Credit Party’s properties or assets have been used by any Credit Party or, to the best of Borrower’s knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any
hazardous substance other than legally. The Credit Parties have obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all Government Authorities that are necessary to continue their
respective businesses as currently conducted.  
 5.8 Subsidiaries; Investments. No Credit Party owns any stock, partnership
interest or other equity securities except for Permitted Investments. 
 5.9 Tax Returns and Payments; Pension Contributions.
Borrower has timely filed, and has caused each Subsidiary to timely file, all required tax returns and reports, and Borrower has timely paid, and has caused each Subsidiary to timely pay, all foreign, federal, state and local taxes, assessments,
deposits and contributions owed by Borrower. Borrower may defer payment of any contested taxes, provided that Borrower (a) in good faith contests its obligation to pay the taxes by appropriate proceedings promptly and diligently instituted and
conducted, (b) notifies Lender in writing of the commencement of, and any material development in, the proceedings, (c) posts bonds or takes any other steps required to prevent the governmental authority levying such contested taxes from
obtaining a Lien upon any of the Collateral that is other than a “Permitted Lien”. Borrower is unaware of any claims or adjustments proposed for any of Borrower’s prior tax years which could result in additional taxes becoming due and
payable by Borrower. Borrower has paid all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, and Borrower has not withdrawn from participation in, and has not permitted
partial or complete termination of, or permitted the occurrence of any other event with respect to, any such plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty
Corporation or its successors or any other governmental agency. 
 5.10 Use of Proceeds. Borrower shall use the proceeds of the Loan
exclusively for development of Chipsets produced by Borrower pursuant to and under the terms of the Commercial Agreement. 
 5.11
Designation of Indebtedness under this Agreement as Senior Indebtedness. All principal of, interest (including all interest accruing after the commencement of any Insolvency Proceeding, whether or not a claim for post-petition interest is
allowable as a claim in any such proceeding), and all fees, costs, expenses and other amounts accrued or due under this Agreement constitute “Designated Senior Indebtedness” under the terms of any indenture to which Borrower is a party.

  
 -7- 

 5.12 Full Disclosure. No written representation, warranty or other statement of any Credit
Party in any certificate or written statement given to Lender, as of the date such representation, warranty, or other statement was made, taken together with all such written certificates and written statements given to Lender, contains any untrue
statement of a material fact or omits to state a material fact necessary to make the statements contained in the certificates or statements not misleading (it being recognized by Lender that the projections and forecasts provided by Borrower in good
faith and based upon reasonable assumptions are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results). 

5.13 Definition of “Knowledge.” For purposes of the Loan Documents, whenever a representation or warranty is made to
Borrower’s knowledge or awareness, to the “best of” Borrower’s knowledge, or with a similar qualification, knowledge or awareness means the actual knowledge, after reasonable investigation, of the Responsible Officers of
Borrower. 
  

	6	AFFIRMATIVE COVENANTS 

 Borrower shall do, and shall cause any other Credit Party to do, all of
the following: 
 6.1 Government Compliance. 

(a) Maintain its and all its Subsidiaries’ legal existence and good standing in their respective jurisdictions of formation and maintain
qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to cause a Material Adverse Change. Borrower shall comply, and cause each Subsidiary to comply, with all laws, ordinances and regulations to which any
of them are subject, noncompliance with which could cause a Material Adverse Change. 
 (b) Obtain all of the Governmental Approvals
necessary for the performance by the Credit Parties of their obligations under the Loan Documents and the grant of security interests to Lender in the Collateral. Borrower shall promptly provide copies of any such obtained Governmental Approvals to
Lender. 
 6.2 Financial Statements, Reports, Certificates. Deliver to Lender: 

(a) Monthly Financial Statements. As soon as available, but no later than thirty (30) days after the last day of each month,
company prepared consolidated and consolidating balance sheets and income statements covering the consolidated operations of Borrower’s for such month certified by a Responsible Officer of Borrower and in a form acceptable to Lender (the
“Monthly Financial Statements”); 
 (b) Monthly Compliance Certificate. Within thirty (30) days after the last
day of each month, and together with the Monthly Financial Statements, a duly completed Compliance Certificate signed by a Responsible Officer 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 Lender shall reasonably request. Such Compliance Certificate shall also
be due annually together with the delivery of the Annual Financial Statements; 
 (c) Annual Audited Financial Statements. As soon
as available, but no later than ninety (90) days after the last day of Borrower’s fiscal year, audited consolidated financial statements prepared under GAAP, consistently applied, together with an unqualified opinion on the financial
statements from an independent certified public accounting firm acceptable to Lender in its reasonable discretion (the “Annual Financial Statements”); 

(d) Other Statements. Within five (5) days of delivery, copies of all statements, reports and notices made available to
Borrower’s security holders or to any holders of Subordinated Debt; 

  
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 (e) SEC Filings. 

(i) Borrower. As soon as available, but in any event no later than five (5) days after filing with the U.S. Securities Exchange
Commission, Borrower’s reports on Forms 10-K, 10-Q, and 8-K. Borrower’s reports on Forms 10-K, 10-Q, and 8-K required to be delivered pursuant to this Section 6.2(e)(i) shall be deemed to have been delivered on the date on
which Borrower posts such report or provides a link thereto on Borrower’s or another website on the Internet; provided, that the foregoing does not relieve the Borrower from providing paper copies of the Compliance Certificates required by
Section 6.2(b). 
 (ii) Other Credit Parties. In the event that a Credit Party other than Borrower is subject to the
reporting requirements under the Exchange Act, within five (5) days of filing, copies of all periodic and other reports, proxy statements and other materials filed by such Credit Party with the SEC, any Governmental Authority succeeding to any
or all of the functions of the SEC or with any national securities exchange, or distributed to its shareholders, as the case may be. Documents required to be delivered pursuant to the terms hereof (to the extent any such documents are included in
materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date on which such Credit Party posts such documents, or provides a link thereto, on such Credit Party’s
or Borrower’s website on the Internet; provided, that the foregoing does not relieve the Borrower from providing paper copies of the Compliance Certificates required by Section 6.2(b). 

(f) Legal Action Notice. A prompt report of any legal actions pending or threatened in writing against any Credit Party that could be
reasonably expected to result in damages or costs to a Credit Party of, individually or in the aggregate, $500,000 or more; 
 (g)
Intellectual Property Notice. Prompt written notice of (i) any material change in the composition of the Intellectual Property of Borrower and its Material Subsidiaries, (ii) the registration of any copyright, and
(iii) any Credit Party’s knowledge of an event that could reasonably be expected to materially and adversely affect the proceeds, revenue or income arising from or related to the Intellectual Property; 

(h) Board Projections. Within forty-five (45) days after the last day of Borrower’s fiscal year, annual financial
projections for the following fiscal year (for each fiscal quarter in such year, including quarterly projected balance sheets, income statements, and cash flow statements) as approved by Borrower’s board of directors covering the consolidated
operations of Borrower and its Subsidiaries, together with any related business forecasts used in the preparation of such annual financial projections; and 

(i) Other Information. Promptly upon the reasonable request by Lender, budgets, sales projections, operating plans, and other
information regarding the operations, business affairs, or financial condition of Borrower or any Subsidiary of Borrower or the parties compliance with the terms of the Loan Documents. 

6.3 Maintenance of Properties, Permits, Etc. (i) Maintain, preserve and protect all of its material properties and equipment
necessary in the operation of its business in good working order, repair and condition, ordinary wear and tear and casualty or condemnation excepted, and make all necessary renewals, replacements, modifications, improvements, upgrades, extensions
and additions thereof or thereto in accordance with prudent industry practice, (ii) take all reasonable action to maintain all rights, privileges, permits, licenses and franchises necessary or desirable in the normal conduct of its business,
except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Change, and (iii) preserve or renew all of its registered patents, trademarks, service marks and copyrights, the non-preservation of which
could reasonably be expected to have a Material Adverse Change. 
 6.4 Taxes; Pensions; Withholding. Timely file, and require each of
its Subsidiaries to timely file, all required tax returns and reports and timely pay, and require each of its Subsidiaries to timely pay, all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower and any
Subsidiary, except for deferred payment of any taxes contested pursuant to the terms of Section 5.9 hereof, and shall deliver to Lender, on its reasonable demand, appropriate certificates attesting to such payments, and pay all amounts
necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms. 

  
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 In the event any payments are received by Lender from Ikanos Singapore pursuant to this Agreement, such payments
will be made subject to applicable withholding for any taxes, levies, fees, deductions, withholding, restrictions or conditions of any nature whatsoever. Notwithstanding the foregoing, if at any time any Governmental Authority, applicable law,
regulation or international agreement requires Ikanos Singapore to make any such deduction or withholding from any such payment or other sum payable hereunder to Lender, the amount due from Ikanos Singapore with respect to such payment or other sum
payable hereunder will be increased to the extent necessary to ensure that, after the making of such required deduction or withholding, Lender receives a net sum equal to the sum which it would have received had no deductions or withholding been
required, and Ikanos Singapore shall pay the full amount deducted or withheld to the relevant Governmental Authority to the extent that Lender does not have sufficient credits to offset the amount deducted or withheld. Ikanos Singapore shall
promptly furnish Lender with proof satisfactory to Lender indicating that Ikanos Singapore has made such withholding payment; provided, however, that Ikanos Singapore need not make any withholding payment if the amount or validity of such
withholding payment is contested in good faith by appropriate proceedings and as to which payment in full is bonded or reserved against by Ikanos Singapore. The agreements and obligations of Ikanos Singapore contained in this provision shall survive
the termination of this Agreement. 
 6.5 Insurance. Keep their business and the Collateral insured for risks and in amounts standard
for companies in Borrower’s industry and location and as Lender may reasonably request. Insurance policies shall be in a form, with companies, and in amounts that are satisfactory to Lender. All property policies shall have a lender’s loss
payable endorsement showing Lender as the lender loss payee and waive subrogation against Lender. All liability policies shall show, or have endorsements showing, Lender as an additional insured. All policies (or the loss payable and additional
insured endorsements) shall provide that the insurer shall give Lender at least twenty (20) days notice before canceling, amending, or declining to renew its policy. At Lender’s request, Borrower shall deliver certified copies of policies
and evidence of all premium payments. Subject to the Intercreditor Agreement, proceeds payable under any policy shall, at Lender’s option, be payable to Lender on account of the Obligations. If Borrower fails to obtain insurance as required
under this Section 6.5 or to pay any amount or furnish any required proof of payment, Lender may make all or part of such payment or obtain such insurance policies required in this Section 6.5, and take any action under the
policies Lender deems prudent. 
 6.6 Operating Accounts. For each Collateral Account that Borrower at any time maintains, Borrower
shall cause the applicable bank or financial institution at or with which any Collateral Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect
Lender’s Lien in such Collateral Account in accordance with the terms hereunder which Control Agreement may not be terminated without the prior written consent in each instance (which consent may be granted, granted upon conditions or withheld
in Lender’s sole discretion) of Lender; provided that the foregoing requirement shall be deemed to have been satisfied with respect to any Collateral Account which is maintained with SVB or which is subject to a Control Agreement in favor of
SVB. The provisions of the previous sentence shall not apply to deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of Borrower’s employees and identified to Lender by
Borrower as such. 
 6.7 Use of Proceeds. Borrower shall use the proceeds of the Loan exclusively for development of Chipsets
to be produced by Borrower pursuant to and under the terms of the Commercial Agreement 
 6.8 Financial Covenant. Borrower
shall maintain, to be tested as of the last day of each fiscal month, unless otherwise noted, on a consolidated basis with respect to Borrower and all of its Subsidiaries: 

(a) Adjusted Quick Ratio. An Adjusted Quick Ratio of not less than 1.20 to 1.00. 

6.9 Protection and Registration of Intellectual Property Rights. 

(a) (i) Protect, defend and maintain the validity and enforceability of the Credit Parties’ Intellectual Property; (ii) promptly
advise Lender in writing of material infringements of its Intellectual Property; and (iii) not allow any Intellectual Property material to a Credit Party’s business to be abandoned, forfeited or dedicated to the public without
Lender’s written consent. 

  
 -10- 

 (b) Provide written notice to Lender within ten (10) days of entering or becoming bound by
any Restricted License (other than over-the-counter software that is commercially available to the public). Borrower shall take such steps as Lender reasonably requests to obtain the consent of, or waiver by, any person whose consent or waiver is
necessary for (i) any such Restricted License to be deemed “Collateral” and for Lender to have a security interest in it that might otherwise be restricted or prohibited by law or by the terms of any such Restricted License, whether
now existing or entered into in the future, after giving effect to the anti-assignment provisions contained in Article 9 of the New York Commercial Code, and (ii) Lender to have the ability in the event of a liquidation of any Collateral to
dispose of such Collateral in accordance with Lender’s rights and remedies under this Agreement, the Intercreditor Agreement and the other Loan Documents. 

6.10 Litigation Cooperation. From the date hereof and continuing through the termination of this Agreement, Borrower shall make
available to Lender, without expense to Lender, Borrower, Borrower’s officers, employees and agents, and the Borrower’s Books, to the extent that Lender may deem them reasonably necessary to prosecute or defend any third-party suit or
proceeding instituted by or against Lender with respect to any Collateral or relating to Borrower. 
 6.11 Access to Collateral; Books
and Records. At reasonable times, on one (1) Business Day’s notice (provided no notice is required if an Event of Default has occurred and is continuing), Lender, or its agents, shall have the right to, and the Credit Parties shall
allow Lender (or its agents) to, inspect the Collateral and audit and copy the Borrower’s Books. The foregoing inspections and audits shall be at Borrower’s expense. 

6.12 Designated Senior Indebtedness. Designate all principal, all interest (including all interest accruing after the commencement of
any Insolvency Proceeding, whether or not a claim for post-petition interest is allowable as a claim in any such proceeding), and all fees, costs, expenses and other amounts accrued or due under this Agreement as “Designated Senior
Indebtedness”, or such similar term, in any future Subordinated Debt incurred by Borrower after the date hereof, with the same or similar rights as generally granted to Lender as a holder of “Designated Senior Indebtedness.”

 6.13 Further Assurances. Execute any further instruments and take further action as Lender reasonably requests to perfect or
continue Lender’s Lien in the Collateral or to effect the purposes of this Agreement. Deliver to Lender, within five (5) days after the same are sent or received, copies of all correspondence, reports, documents and other filings with any
Governmental Authority regarding compliance with or maintenance of Governmental Approvals or Requirements of Law or that could reasonably be expected to have a material effect on any of the Governmental Approvals or otherwise on the operations of
any Credit Party. 
 6.14 Material Subsidiaries. For any Subsidiary not previously identified as a Borrower or Guarantor
hereunder and upon request by Lender, Borrower shall promptly cause any such Subsidiary determined by Lender to be a material Subsidiary (each a “Material Subsidiary” or collectively the “Material
Subsidiaries”) to become a Borrower or Guarantor hereunder, as selected by Lender, and to grant to Lender (i) a first priority perfected security in Intellectual Property owned by such Subsidiary and (ii) a second priority
perfected security interest in all other assets owned by such Subsidiary, to secure such obligation; provided that, in the case of foreign Subsidiaries, the duties and obligations imposed under this Section 6.14 in connection with such
foreign Subsidiary becoming a Borrower or Guarantor, as the case may be, shall not exceed those imposed on existing foreign Borrowers or foreign Guarantors, as applicable, unless such additional duties and obligations would not have a material
adverse tax consequence on Borrower. For the avoidance of doubt, any Guarantor shall be deemed to constitute a Material Subsidiary for purposes of this Agreement. 

6.15 Post-Closing Covenants. 

(a) Within five (5) Business Days of the Effective Date, the Borrower shall deliver to Lender the Perfection Certificate of Borrower,
together with the duly executed original signatures thereto; 
 (b) Within fifteen (15) days of the Effective Date, the Borrower shall
deliver to Lender an updated Schedule 5.3, which shall disclose the owner of each Intellectual Property registration listed therein; 

  
 -11- 

 (c) Within thirty (30) days of the Effective Date, the Borrower shall deliver evidence
satisfactory to Lender that the insurance policies required by Section 6.5 hereof are in full force and effect, together with appropriate evidence showing lender loss payable and/or additional insured clauses or endorsements in favor of
Lender; and 
 (d) Within ninety (90) days of the Effective Date, (i) the Borrower shall cause Ikanos Technology to transfer
right, title, and interest in all of Ikanos Technology’s Intellectual Property to Borrower or (ii) Lender’s first priority security interest in all Intellectual Property Collateral held outside of the United States shall be validly
perfected in each applicable jurisdiction. 
  

	7	NEGATIVE COVENANTS 

 Borrower shall not do any of the following without
Lender’s prior written consent in each instance (which consent may be granted, granted upon conditions or withheld in Lender’s sole discretion): 

7.1 Dispositions. Convey, sell, lease, transfer, assign, or otherwise dispose of (collectively, “Transfer”), or permit
any of its Subsidiaries to Transfer, all or any part of its business or property, except for Transfers (a) that are Permitted Transfers, (b) of Inventory in the ordinary course of business; (c) of
worn-out, obsolete, or surplus Equipment; (d) in connection with Permitted Liens and Permitted Investments; and (e) by Non-Loan Parties of their property to a Credit Party, so long as such Transfers
are made (i) in exchange for reasonably equivalent value and (ii) in an arm’s length transaction on fair and reasonable terms.  

7.2 Changes in Business, Management, Ownership, Control, or Business Locations. 

(a) (i) Engage in or permit any Credit Party to engage in any business other than the businesses currently engaged in by Borrower and such
Credit Party, as applicable, or reasonably related thereto; (ii) liquidate or dissolve (except for liquidations or dissolutions of Non-Loan Parties in connection with Permitted Acquisitions); and (iii) suffer, or permit any Credit Party to
suffer, any Change in Control. 
 (b) Without at least thirty (30) days prior written notice to Lender: (1) add any new offices
or business locations, including warehouses (unless such new offices or business locations contain less than $500,000 in Borrower’s assets or property) or deliver any portion of the Collateral valued, individually or in the aggregate, in excess
of $500,000 to a bailee at a location other than to a bailee and at a location already disclosed in the Perfection Certificate, (2) change its jurisdiction of organization, (3) change its organizational structure or type, (4) change
its legal name, or (5) change any organizational number (if any) assigned by its jurisdiction of organization. If Borrower intends to deliver any portion of the Collateral valued, individually or in the aggregate, in excess of $500,000 to a
bailee, and Lender and such bailee are not already parties to a bailee agreement governing both the Collateral and the location to which Borrower intends to deliver the Collateral, then Borrower will first receive the prior written consent of
Lender, in each instance (which consent may be granted, granted upon conditions or withheld in Lender’s sole discretion), and will use their best efforts to have such bailee execute and deliver a bailee agreement in form and substance
satisfactory to Lender in its reasonable sole discretion. 
 7.3 Mergers or Acquisitions. Merge or consolidate, or permit any of its
Subsidiaries to merge, amalgamate, or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person, except for Permitted Acquisitions. A
Subsidiary may merge or consolidate into another Subsidiary or into Borrower.  
 7.4 Indebtedness. Create, incur, assume, or
be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness. 
 7.5 Encumbrance. 

(a) Create, incur, allow, or suffer any Lien on any of its property, or assign or convey any right to receive income, including the sale of
any Accounts, or permit any Credit Party to do so, except for Permitted Liens, permit any Collateral not to be subject to the first or second priority security interest, as applicable, granted herein; 

  
 -12- 

 (b) grant any license or sublicense of any rights under or with respect to any Intellectual
Property, other than pursuant to non-exclusive license agreements entered into with customers or suppliers of Borrower and its Subsidiaries in the ordinary course of business consistent with past practice; or 

(c) enter into any agreement, document, instrument or other arrangement (except with or in favor of Lender or SVB) with any Person which
directly or indirectly prohibits or has the effect of prohibiting any Credit Party from assigning, mortgaging, pledging, granting a security interest in or upon, or encumbering any Credit Party’s Intellectual Property, except as is otherwise
permitted in Section 7.1 hereof and the definition of “Permitted Liens” herein. 
 7.6 Maintenance of Collateral
Accounts. Maintain any Collateral Account except pursuant to the terms of Section 6.6 hereof. 
 7.7
Distributions; Investments. (a) Pay any dividends or make any distribution or payment or redeem, retire or purchase any capital stock; provided that (i) Borrower may make Permitted Distributions, (ii) Borrower may convert any of
its convertible securities into other securities pursuant to the terms of such convertible securities or otherwise in exchange thereof, and (iii) Ikanos Singapore may pay dividends or make distributions to Borrower; or (b) except for
Permitted Acquisitions, directly or indirectly acquire or own any Person, or make any Investment other than Permitted Investments, or permit any Credit Party to do so. 

7.8 Transactions with Affiliates. Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of
Borrower, except for (a) Permitted Transfers and (b) transactions that are in the ordinary course of Borrower’s business and upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm’s
length transaction with a non-affiliated Person.  
 7.9 Subordinated Debt. (a) Make or permit any payment on any
Subordinated Debt, except under the terms of the subordination, intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any document relating to the Subordinated Debt which would
increase the amount thereof or adversely affect the subordination thereof to Obligations owed to Lender. 
 7.10 Compliance.
Become an “investment company” or a company controlled by an “investment company”, under the Investment Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase or carry margin
stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds of the Loan for that purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited
Transaction, as defined in ERISA, to occur; fail to comply with the Federal Fair Labor Standards Act or violate any other law or regulation, if the violation could reasonably be expected to cause a Material Adverse Change, or permit any Credit Party
to do so; withdraw or permit any Credit Party to withdraw from participation in, permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation
plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 

 

	8	EVENTS OF DEFAULT 

 Any one of the following shall constitute an event of default
(an “Event of Default”) under this Agreement: 
 8.1 Payment Default. Borrower fails to (a) make any payment of
principal or interest on the Loan within three (3) Business Days after such payment is due, or (b) pay any other Obligations within three (3) Business Days after such Obligations are due and payable (which three (3) Business Day
cure period shall in either case not apply to payments due on the Maturity Date). During the cure period, the failure to make or pay any payment specified under clause (a) or (b) hereunder is not an Event of Default; 

  
 -13- 

 8.2 Covenant Default. 

(a) Borrower fails or neglects to perform any obligation in Sections 3.4, 6.2, 6.4, 6.5, 6.6, 6.7,
6.8, 6.9, 6.10, 6.11, 6.12 or violates any covenant in Section 7; or 
 (b) Borrower fails
or neglects to perform, keep, or observe any other term, provision, condition, covenant or agreement contained in this Agreement or any other Loan Document, and as to any default (other than those specified in this Section 8) under such
other term, provision, condition, covenant or agreement that can be cured and which Borrower is diligently attempting to cure, has failed to cure the default within thirty (30) days after the occurrence thereof. Cure periods provided under this
section shall not apply, among other things, to financial covenants or any other covenants set forth in clause (a) above; 
 8.3
Material Adverse Change. A Material Adverse Change occurs; 
 8.4 Attachment; Levy; Restraint on Business. 

(a) (i) The service of process seeking to attach, by trustee or similar process, any funds of Borrower or of any entity under the
control of Borrower (including a Subsidiary) maintained with Lender or any Lender Affiliate, or (ii) a notice of lien or levy is filed against any of Borrower’s assets by any government agency, and the same under subclauses (i) and
(ii) hereof are not, within thirty (30) days after the occurrence thereof, discharged or stayed (whether through the posting of a bond or otherwise); or 

(b) (i) any material portion of Borrower’s assets are attached, seized, levied on, or come into possession of a trustee or
receiver, or (ii) any court order enjoins, restrains, or prevents Borrower from conducting any material part of its business; 
 8.5
Insolvency (a) Borrower is unable to pay its debts (including trade debts) as they become due or otherwise becomes insolvent; (b) Borrower begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against Borrower
and not dismissed or stayed within thirty (30) days; 
 8.6 Other Agreements. There is (1) any default by Borrower of its
obligations under the Warrants or (2) under any agreement to which Borrower or any Guarantor is a party with a third party or parties, (a) any default resulting in a right by such third party or parties, whether or not exercised, to
accelerate the maturity of (i) the Indebtedness under the SVB Credit Facility or (ii) any other Indebtedness in an amount individually or in the aggregate in excess of $500,000; or (b) any default by Borrower or a Guarantor, the
result of which could cause a Material Adverse Change; provided, however, that an Event of Default under this Section 8.6 caused by the occurrence of a default under such Warrants or other agreement shall be cured for purposes of this
Agreement if and when such default under such Warrants or other agreement has been definitively cured or waived, no right of acceleration under such Warrants or other agreement, or threat of a Material Adverse Change, remains, and Borrower has
provided to Lender evidence of the foregoing reasonably satisfactory to Lender;  
 8.7 Judgments. One or more final
judgments, orders, or decrees for the payment of money in an amount, individually or in the aggregate, of at least $500,000 (not covered by independent third-party insurance as to which liability has been accepted by such insurance carrier) shall be
rendered against Borrower and the same are not, within ten (10) days after the entry thereof, discharged or execution thereof stayed or bonded pending appeal, or such judgments are not discharged prior to the expiration of any such stay;

 8.8 Misrepresentations. Borrower or any Person acting for Borrower makes any representation, warranty, or other statement now
or later in any Loan Document or in any writing delivered to Lender or to induce Lender to enter into any Loan Document, and such representation, warranty, or other statement is incorrect in any material respect when made; 

8.9 Subordinated Debt. Any document, instrument, or agreement evidencing any Subordinated Debt shall for any reason be revoked or
invalidated or otherwise cease to be in full force and effect, any Person shall be in breach thereof or contest in any manner the validity or enforceability thereof or deny that it has any further liability or obligation thereunder, or the
Obligations shall for any reason be subordinated or shall not have the priority contemplated by this Agreement;  

  
 -14- 

 8.10 Guaranty. (a) Any guaranty of any Obligations terminates or ceases for any
reason to be in full force and effect; (b) any Guarantor does not perform any obligation or covenant under any guaranty of the Obligations; (c) any circumstance described in Sections 8.4, 8.5, 8.7, or 8.8 occurs
with respect to any Guarantor, (d) the liquidation, winding up, or termination of existence of any Guarantor; or (e) a Material Adverse Change occurs with respect to any Guarantor; or 

8.11 Governmental Approvals. Any Governmental Approval shall have been (a) revoked, rescinded, suspended, modified in an adverse
manner or not renewed in the ordinary course for a full term or (b) subject to any decision by a Governmental Authority that designates a hearing with respect to any applications for renewal of any of such Governmental Approval or that could
result in the Governmental Authority taking any of the actions described in clause (a) above, and such decision or such revocation, rescission, suspension, modification or non-renewal (i) has, or could reasonably be expected to have, a
Material Adverse Change, or (ii) adversely affects the legal qualifications of Borrower or any of its Subsidiaries to hold such Governmental Approval in any applicable jurisdiction and such revocation, rescission, suspension, modification or
non-renewal could reasonably be expected to affect the status of or legal qualifications of Borrower or any of its Subsidiaries to hold any Governmental Approval in any other jurisdiction. 

 

	9	LENDER’S RIGHTS AND REMEDIES 

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

(b) stop advancing money or extending credit for any Credit Party’s benefit under this Agreement or under any other agreement between
one or more Credit Parties and Lender; 
 (c) subject to the terms of the Intercreditor Agreement, settle or adjust disputes and claims
directly with Account Debtors for amounts on terms and in any order that Lender considers advisable, notify any Person owing Borrower money of Lender’s security interest in such funds, and verify the amount of such account; 

(d) make any payments and do any acts it considers necessary or reasonable to protect the Collateral and/or its security interest in the
Collateral. Borrower, subject to the terms of the Intercreditor Agreement, shall assemble the Collateral if Lender requests and make it available as Lender designates. Lender may enter premises where the Collateral is located, take and maintain
possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Borrower grants Lender a license to enter and occupy any of
its premises, without charge, to exercise any of Lender’s rights or remedies; 
 (e) (i) subject to the terms of the Intercreditor
Agreement, apply to the Obligations of Borrower (A) any balances and deposits Borrower holds, or (B) any amount held by Lender owing to or for the credit or the account of Borrower and (ii) set off any amounts due to a Credit Party on
invoices under the Commercial Agreement against the Obligations; 
 (f) subject to the terms of the Intercreditor Agreement, ship, reclaim,
recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell the Collateral. Lender is hereby granted a non-exclusive, royalty-free license or other right to use, without charge, the Credit Parties’ labels, Patents,
Copyrights, mask works, rights of use of any name, trade secrets, trade names, Trademarks, and advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any
Collateral and, in connection with Lender’s exercise of its rights under this Section 9, each Credit Party’s rights under all licenses and all franchise agreements inure to Lender’s benefit; 

  
 -15- 

 (g) subject to the terms of the Intercreditor Agreement, deliver a notice of exclusive control,
any entitlement order, or other directions or instructions pursuant to any Control Agreement or similar agreements providing control of any Collateral; 

(h) demand and receive a copy of Borrower’s Books; and 

(i) subject to the terms of the Intercreditor Agreement, exercise all rights and remedies available to Lender under the Loan Documents or at
law or equity, including all remedies provided under the Code (including disposal of the Collateral pursuant to the terms thereof). 

9.2 Power of Attorney. Borrower hereby irrevocably appoints Lender as its lawful attorney-in-fact, exercisable upon the occurrence and
during the continuance of an Event of Default, to: (a) endorse Borrower’s name on any checks or other forms of payment or security; (b) sign Borrower’s name on any invoice or bill of lading for any Account or drafts against
Account Debtors; (c) settle and adjust disputes and claims about the Accounts directly with Account Debtors, for amounts and on terms Lender determines reasonable; (d) make, settle, and adjust all claims under Borrower’s insurance
policies; (e) pay, contest or settle any Lien, charge, encumbrance, security interest, and adverse claim in or to the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and
(f) transfer the Collateral into the name of Lender or a third party as the Code permits. Borrower hereby appoints Lender as its lawful attorney-in-fact to sign Borrower’s name on any documents necessary to perfect or continue the
perfection of Lender’s security interest in the Collateral regardless of whether an Event of Default has occurred until all Obligations have been satisfied in full and Lender is under no further obligation to make the Loan hereunder.
Lender’s foregoing appointment as Borrower’s attorney in fact, and all of Lender’s rights and powers, are coupled with an interest and are irrevocable until all Obligations have been fully repaid and performed and Lender’s
obligation to make the Loan has terminated. 
 9.3 Protective Payments. If Borrower fails to obtain the insurance called for
by Section 6.5 or fails to pay any premium thereon within five (5) Business Days or fails to pay any other amount which Borrower is obligated to pay under this Agreement or any other Loan Document, Lender may obtain such insurance
or make such payment, and all amounts so paid by Lender are immediately due and payable, bearing interest at the then highest rate applicable to the Obligations, and secured by the Collateral. Lender will make reasonable efforts to provide Borrower
with notice of Lender obtaining such insurance at the time it is obtained or within a reasonable time thereafter. No payments by Lender are deemed an agreement to make similar payments in the future or Lender’s waiver of any Event of
Default. 
 9.4 Application of Payments and Proceeds Upon Event of Default. Subject to the terms of the Intercreditor
Agreement, if an Event of Default has occurred and is continuing, Lender may apply any funds in its possession, whether from Borrower’s account balances, payments, proceeds realized as the result of any collection of Accounts or other
disposition of the Collateral, or otherwise, to the Obligations of Borrower in such order and manner as Lender shall determine in its sole discretion. Any surplus shall be paid to Borrower or to other Persons legally entitled thereto; Borrower shall
remain liable to Lender for any deficiency. If Lender, 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, Lender shall have the option,
exercisable at any time, of either reducing the Obligations by the principal amount of the purchase price or deferring the reduction of the Obligations until the actual receipt by Lender of cash therefor. 

9.5 Lender’s Liability for Collateral. So long as Lender complies with reasonable practices regarding the safekeeping of the
Collateral in the possession or under the control of Lender, Lender shall not be liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the
Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other Person. Borrower bears all risk of loss, damage or destruction of the Collateral. 

9.6 No Waiver; Remedies Cumulative. Lender’s failure, at any time or times, to require strict performance by one or more Credit
Parties of any provision of this Agreement or any other Loan Document shall not waive, affect, or diminish any right of Lender to demand strict performance and compliance herewith or therewith from any other Credit Party or at a later time to demand
strict performance and compliance herewith or therewith from all Credit Parties. No waiver hereunder shall be effective unless signed by the party granting the 

  
 -16- 

 
waiver and then is only effective for the specific instance and purpose for which it is given. Both parties’ rights and remedies under this Agreement and the other Loan Documents are
cumulative. Lender and Credit Parties each have all rights and remedies provided under the Code, by law, or in equity. Lender’s or Credit Parties’ exercise of one right or remedy is not an election and shall not preclude such party from
exercising any other remedy under this Agreement or other remedy available at law or in equity, and Lender’s waiver of any Event of Default is not a continuing waiver. Lender’s or Credit Parties’ delay in exercising any remedy is not
a waiver, election, or acquiescence. 
 9.7 Demand Waiver. Each Credit Party waives demand, notice of default or dishonor, notice of
payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees held by Lender on which such Credit Party is liable.

 9.8 Borrower Liability. Each Credit Party waives (a) any right to require Lender to: (i) proceed against any other
Credit Party or any other person; (ii) proceed against or exhaust any security; or (iii) pursue any other remedy. Lender may exercise or not exercise any right or remedy it has against any Credit Party or any security it holds
(including the right to foreclose by judicial or non-judicial sale) without affecting any Credit Party’s liability. Notwithstanding any other provision of this Agreement or other related document, each Credit Party irrevocably waives all
rights that it may have at law or in equity (including, without limitation, any law subrogating such Credit Party to the rights of Lender under this Agreement) to seek contribution, indemnification or any other form of reimbursement from any other
Credit Party, or any other Person now or hereafter primarily or secondarily liable for any of the Obligations, for any payment made by a Credit Party with respect to the Obligations in connection with this Agreement or otherwise and all rights that
it might have to benefit from, or to participate in, any security for the Obligations as a result of any payment made by a Credit Party with respect to the Obligations in connection with this Agreement or otherwise. Any agreement providing for
indemnification, reimbursement or any other arrangement prohibited under this Section 9.8 shall be null and void. If any payment is made to a Credit Party in contravention of this Section 9.8, such Credit Party, subject
to the terms of the Intercreditor Agreement, shall hold such payment in trust for Lender and such payment shall be promptly delivered to Lender for application to the Obligations, whether matured or unmatured. 

 

	10	NOTICES 

 All notices, consents, requests, approvals, demands, or other
communication by any party to this Agreement or any other Loan Document must be in writing and shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of actual receipt and three (3) Business Days after
deposit in the U.S. mail, first class, registered or certified mail return receipt requested, with proper postage prepaid; (b) upon transmission, when sent by electronic mail; (c) one (1) Business Day after deposit with a reputable
overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and sent to the address or email address indicated below. Lender or Borrower may
change their mailing or electronic mail address by giving the other party written notice thereof in accordance with the terms of this Section 10. 

  
 -17- 

 
			
	If to Borrower:	  	Ikanos Communications, Inc.
		  	47669 Fremont Boulevard
		  	Fremont, CA 94538
		  	Attn: Chief Financial Officer
		  	Email: dbencala@ikanos.com
		
		  	with a copy to:
		
		  	Ikanos Communications, Inc.
		  	47669 Fremont Boulevard
		  	Fremont, CA 94538
		  	Attn: General Counsel
		  	Email: legal@ikanos.com
		
	If to Lender:	  	Alcatel-Lucent USA Inc.
		  	7B-505
		  	600-700 Mountain Ave.
		  	P.O. Box 636
		  	Murray Hill, NJ 07974-0636
		  	Attn: Lenny Floria, Treasurer
		  	Email: len.floria@alcatel-lucent.com
		
		  	with a copy to:
		
		  	Winston & Strawn LLP
		  	200 Park Avenue
		  	New York, NY 10166
		  	Attention: John Kalyvas, Esq.
		  	Email: jkalyvas@winston.com

  

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

 Unless
otherwise specified in a particular Loan Document, New York law governs the Loan Documents without regard to principles of conflicts of law. Credit Parties and Lender each submit to the exclusive jurisdiction of the State and Federal courts in New
York County, New York; provided, however, that nothing in this Agreement shall be deemed to operate to preclude Lender from bringing suit or taking other legal action in any other jurisdiction to realize on the Collateral or any other security for
the Obligations, or to enforce a judgment or other court order in favor of Lender. Each Credit Party expressly submits and consents in advance to such jurisdiction in any action or suit commenced in any such court, and each Credit Party hereby
waives any objection that it may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such court. Each Credit Party
hereby waives personal service of the summons, complaints, and other process issued in such action or suit and agrees that service of such summons, complaints, and other process may be made by registered or certified mail addressed to such Credit
Party at the address for Borrower set forth in, or subsequently provided by Borrower in accordance with, Section 10 of this Agreement and that service so made shall be deemed completed upon the earlier to occur of a Borrower’s
actual receipt thereof or three (3) days after deposit in the U.S. mails, proper postage prepaid. 
 TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, LENDER AND EACH CREDIT PARTY EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH
OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR EACH PARTY TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL. 

  
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	12	GENERAL PROVISIONS 

 12.1 Successors and Assigns. This Agreement binds and
is for the benefit of the successors and permitted assigns of each party. No Credit Party may assign this Agreement or any rights or obligations under it without Lender’s prior written consent, in each instance (which consent may be granted,
granted upon conditions or withheld in Lender’s sole discretion). Lender has the right, without the consent of or notice to Borrower, to sell, transfer, assign, negotiate, or grant participation in all or any part of, or any interest in,
Lender’s obligations, rights, and benefits under this Agreement and the other Loan Documents. 
 12.2 Indemnification.
The Credit Parties, jointly and severally, agree to indemnify, defend and hold Lender and its directors, officers, employees, agents, attorneys, or any other Person affiliated with or representing Lender (each, an “Indemnified
Person”) harmless against: (a) all obligations, demands, claims, and liabilities (collectively, “Claims”) claimed or asserted by any other party in connection with the transactions contemplated by the Loan Documents;
and (b) all losses or expenses in any way suffered, incurred, or paid by such Indemnified Person as a result of, following from, consequential to, or arising from transactions between Lender and one or more Credit Parties (including reasonable
attorneys’ fees and expenses), except for Claims and/or losses directly caused by such Indemnified Person’s gross negligence or willful misconduct. 

12.3 Time of Essence. Time is of the essence for the performance of all Obligations in this Agreement. 

12.4 Severability of Provisions. Each provision of this Agreement is severable from every other provision in determining the
enforceability of any provision. 
 12.5 Correction of Loan Documents. Lender may correct obvious errors and fill in any
blanks in the Loan Documents consistent with the agreement of the parties and with the written consent of Borrower. 
 12.6
Amendments in Writing; Waiver; Integration. No purported amendment or modification of any Loan Document, or waiver, discharge or termination of any obligation under any Loan Document, shall be enforceable or admissible unless, and only to the
extent, expressly set forth in a writing signed by the party against which enforcement or admission is sought. Without limiting the generality of the foregoing, no oral promise or statement, nor any action, inaction, delay, failure to require
performance or course of conduct shall operate as, or evidence, an amendment, supplement or waiver or have any other effect on any Loan Document. Any waiver granted shall be limited to the specific circumstance expressly described in it, and shall
not apply to any subsequent or other circumstance, whether similar or dissimilar, or give rise to, or evidence, any obligation or commitment to grant any further waiver. The Loan Documents represent the entire agreement about this subject matter and
supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of the Loan Documents merge into the Loan Documents. 

12.7 Counterparts. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each
of which, when executed and delivered, is an original, and all taken together, constitute one Agreement. 
 12.8 Survival. All
covenants, representations and warranties made in this Agreement continue in full force until this Agreement has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by
their terms, are to survive the termination of this Agreement) have been paid in full and satisfied. The obligation of the Credit Parties in Section 12.2 to indemnify Lender shall survive until the statute of limitations with respect to
such claim or cause of action shall have run. 
 12.9 Confidentiality. In handling any confidential information, Lender shall
exercise the same degree of care that it exercises for its own proprietary information, but disclosure of information may be made: (a) to Lender’s Subsidiaries or Affiliates (such Subsidiaries and Affiliates, together with Lender,
collectively, “Lender Entities”); 

  
 -19- 

 
(b) to prospective transferees or purchasers of any interest in the Loan (provided, however, Lender shall use its best efforts to obtain any prospective transferee’s or purchaser’s
agreement to the terms of this provision); (c) as required by law, regulation, subpoena, or other order; (d) to Lender’s regulators or as otherwise required in connection with Lender’s examination or audit; (e) as Lender
considers appropriate in exercising remedies under the Loan Documents; and (f) to third-party service providers of Lender so long as such service providers have executed a confidentiality agreement with Lender with terms no less restrictive
than those contained herein. Confidential information does not include information that is either: (i) in the public domain or in Lender’s possession when disclosed to Lender, or becomes part of the public domain after disclosure to
Lender; or (ii) disclosed to Lender by a third party if Lender does not know that the third party is prohibited from disclosing the information. 

The Lender Entities may use confidential information for reporting purposes and the development and distribution of databases and market
analysis so long as such confidential information is aggregated and anonymized prior to distribution unless otherwise expressly permitted by Borrower. The provisions of the immediately preceding sentence shall survive the termination of
this Agreement. 
 12.10 Attorneys’ Fees, Costs and Expenses. In any action or proceeding between one or more Credit Parties and
Lender arising out of or relating to the Loan Documents, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and other costs and expenses incurred, in addition to any other relief to which it may be entitled.

 12.11 Electronic Execution of Documents. The words “execution,” “signed,” “signature” and words
of like import in any Loan Document shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity and enforceability as a manually executed signature or the
use of a paper-based recordkeeping systems, as the case may be, to the extent and as provided for in any applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act. 

12.12 Captions. The headings used in this Agreement are for convenience only and shall not affect the interpretation of this
Agreement. 
 12.13 Construction of Agreement. The parties mutually acknowledge that they and their attorneys have
participated in the preparation and negotiation of this Agreement. In cases of uncertainty this Agreement shall be construed without regard to which of the parties caused the uncertainty to exist. 

12.14 Relationship. The relationship of the parties to this Agreement is determined solely by the provisions of this Agreement. The
parties do not intend to create any agency, partnership, joint venture, trust, fiduciary or other relationship with duties or incidents different from those of parties to an arm’s-length contract. 

12.15 Third Parties. Nothing in this Agreement, whether express or implied, is intended to: (a) confer any benefits, rights or
remedies under or by reason of this Agreement on any persons other than the express parties to it and their respective permitted successors and assigns; (b) relieve or discharge the obligation or liability of any person not an express party to
this Agreement; or (c) give any person not an express party to this Agreement any right of subrogation or action against any party to this Agreement. 
  

	13	DEFINITIONS 

 13.1 Definitions. As used in the Loan Documents, the word
“shall” is mandatory, the word “may” is permissive, the word “or” is not exclusive, the words “includes” and “including” are not limiting, the singular includes the plural, numbers denoting amounts
that are set off in parenthesis are negative, the words “share” and “shareholder,” in the context of equity ownership, shall be synonymous with “stock” and “stockholder.” As used in this Agreement, the
following terms have the following meanings: 
 “Account” is any “account” as defined in the Code with such additions to
such term as may hereafter be made, and includes, without limitation, all accounts receivable and other sums owing to a Credit Party. 

  
 -20- 

 “Account Debtor” is any “account debtor” as defined in the Code with such additions to
such term as may hereafter be made. 
 “Adjusted Quick Ratio” shall mean the ratio of (1) unrestricted cash, Cash Equivalents,
and short-term investments at SVB and up to $3,000,000 in cash from Borrower’s India subsidiary plus gross domestic and international Accounts divided by (2) total Current Liabilities, other than deferred revenue, plus all Indebtedness
incurred under the SVB Credit Facility.  
 “Affiliate” is, with respect to any Person, each other Person that owns or
controls directly or indirectly the Person, any Person that controls or is controlled by or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any Person that is a limited
liability company, that Person’s managers and members. 
 “Agreement” is defined in the preamble hereof. 

“ALU PIPE Investment” is defined in Section 3.1. 

“Annual Financial Statements” is defined in Section 6.2(c). 

“Borrower” is defined in the preamble hereof. 

“Borrower’s Books” are all of Borrower’s books and records including ledgers, federal and state tax returns, records
regarding Borrower’s assets or liabilities, the Collateral, business operations or financial condition, and all computer programs or storage or any equipment containing such information. 

“Borrowing Resolutions” are, with respect to any Person, those resolutions adopted by such Person’s Board of Directors and
delivered by such Person to Lender approving the Loan Documents to which such Person is a party and the transactions contemplated thereby, together with a certificate in form and substance satisfactory to Lender executed by its Secretary on behalf
of such Person. At a minimum, such certificate must include a certification that (a) such Person has the authority to execute, deliver, and perform its obligations under each of the Loan Documents to which it is a party, (b) attached as an
exhibit to such certificate is a true, correct, and complete copy of the resolutions then in full force and effect authorizing and ratifying the execution, delivery, and performance by such Person of the Loan Documents to which it is a party,
(c) the name(s) of the Person(s) authorized to execute the Loan Documents on behalf of such Person, together with a sample of the true signature(s) of such Person(s), are provided and (d) Lender may conclusively rely on such certificate
unless and until such Person shall have delivered to Lender a further certificate canceling or amending such prior certificate. 
 “Business
Day” is any day that is not a Saturday, Sunday or other day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close. 

“Capital Lease Obligations” shall mean all monetary obligations of a person under any leasing or similar arrangement which, in
accordance with GAAP, is classified as a capital lease. 
 “Cash Equivalents” means (a) marketable direct obligations issued
by, or unconditionally guaranteed by, the United States, or any state government or issued by any agency thereof, in each case maturing within one (1) year from the date of acquisition; (b) certificates of deposit, time deposits,
eurodollar time deposits or overnight bank deposits having maturities of one (1) year or less from the date of acquisition issued by any commercial bank organized under the laws of the United States or any state thereof; (c) commercial
paper of an issuer rated at least A by S&P or by Moody’s, or carrying an equivalent rating by a nationally recognized rating agency if both of the two named rating agencies cease publishing ratings of commercial paper issuers generally, and
maturing within one year from the date of acquisition; (d) repurchase obligations entered into with any commercial bank satisfying the requirements of clause (b) of this definition; (e) securities with maturities of one (1) year
or less from the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United States, by any political subdivision or taxing authority of any such state, commonwealth or territory or by any foreign government,
the securities of which state, commonwealth, territory, political subdivision, taxing authority or foreign government (as 

  
 -21- 

 
the case may be) are rated at least A by S&P or by Moody’s; (f) securities with maturities of one (1) year or less from the date of acquisition backed by standby letters of
credit issued by any commercial bank; and (g) money market funds that are rated AA by S&P or Aa by Moody’s or carrying an equivalent rating by a nationally recognized rating agency and shares of money market mutual or similar funds
which invest exclusively in assets satisfying the requirements of any of clauses (a) through (g) of this definition. 
 “Change in
Control” means, with respect to any Person, any event, transaction, or occurrence as a result of which (a) any “person” (as such term is defined in Sections 3(a)(9) and 13(d)(3) of the Exchange Act), other than a trustee or
other fiduciary holding securities under an employee benefit plan of such Person or a Person who holds equity interests in such “person” on the date of this Agreement, is or becomes a beneficial owner (within the meaning Rule 13d-3
promulgated under the Exchange Act), directly or indirectly, of securities of Borrower, representing 25% or more of the combined voting power of such Person’s then outstanding securities; (b) during any period of twelve consecutive
calendar months, individuals who at the beginning of such period constituted the Board of Directors of such Person (together with any new directors whose election by the Board of Directors of such Person was approved by a vote of not less than
two-thirds of the directors then still in office who either were directions at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason other than death or disability to constitute a
majority of the directors then in office, or (c) Borrower ceases to own 100% of Ikanos Singapore. 
 “Chipset” means the Ultra
Broadband chips developed and produced by Borrower as specified in the Commercial Agreement. 
 “Code” is the Uniform Commercial Code, as
the same may, from time to time, be enacted and in effect in the State of New York; provided, that, to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently in different Articles of
the Code, the definition of such term contained in Article 9 shall govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority of, or remedies with respect to,
Lender’s Lien on any Collateral is governed by the Uniform Commercial Code in effect in a jurisdiction other than the State of New York, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such
other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority, or remedies and for purposes of definitions relating to such provisions. 

“Collaboration Agreement” means that certain Collaboration Agreement to be entered on or before the Funding Date between the Borrower
and the Lender relating to the Chipsets. 
 “Collateral” is any and all properties, rights and assets of Borrower described
on Exhibit A. 
 “Collateral Account” is any Deposit Account, Securities Account, or Commodity Account. 

“Commercial Agreement” means that certain Commercial Agreement to be entered on or before the Funding Date between the Borrower and
the Lender relating to Borrower’s delivery of the Chipsets to Lender or an Affiliate of Lender. 
 “Commodity Account” is any
“commodity account” as defined in the Code with such additions to such term as may hereafter be made. 
 “Compliance
Certificate” is that certain certificate in the form attached hereto as Exhibit C. 
 “Contingent Obligation” is,
for any Person, any direct or indirect liability, contingent or not, of that Person for (a) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation, in each case, directly or indirectly
guaranteed, endorsed, co-made, discounted or sold with recourse by that Person, or for which that Person is directly or indirectly liable; (b) any obligations for undrawn letters of credit for the account
of that Person; and (c) all obligations from any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates,
currency exchange rates or commodity prices; but “Contingent Obligation” does not include endorsements in 

  
 -22- 

 
the ordinary course of business. The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not
determinable, the maximum reasonably anticipated liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement. 

“Control Agreement” is any control agreement entered into among the depository institution at which Borrower maintains a Deposit
Account or the securities intermediary or commodity intermediary at which Borrower maintains a Securities Account or a Commodity Account, Borrower, and Lender (or SVB, acting as bailee for Lender pursuant to the terms of the Intercreditor Agreement)
pursuant to which Lender or SVB, as applicable, obtains control (within the meaning of the Code) over such Deposit Account, Securities Account, or Commodity Account. 

“Copyrights” means any and all copyrights and derivative work thereof (whether or not registered), copyrights registrations and applications
therefor, and all other rights corresponding thereto in any works of authorship (including software and firmware) throughout the world including moral and economic rights of authors and inventors, however denominated and regardless of medium of
fixation or means of expression. 
 “Credit Party” means Borrower and each Guarantor. 

“Current Liabilities” means the aggregate amount of the Credit Parties’ Total Liabilities that mature within one (1) year. For the
purposes of this definition, Current Liabilities will exclude any Indebtedness incurred under this Agreement or otherwise owing from Borrower or its Affiliates to Lender. 

“Default Rate” is defined in Section 2.2(c). 

“Deposit Account” is any “deposit account” as defined in the Code with such additions to such term as may hereafter be made. 

“Dollars,” “dollars” or use of the sign “$” means only lawful money of the United States and not any
other currency, regardless of whether that currency uses the “$” sign to denote its currency or may be readily converted into lawful money of the United States. 

“Domestic Subsidiary” is a Subsidiary organized under the laws of the United States or any state or territory thereof or the District
of Columbia. 
 “Effective Date” is defined in the preamble hereof. 

“Equipment” is all “equipment” as defined in the Code with such additions to such term as may hereafter be made, and includes
without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing. 

“ERISA” is the Employee Retirement Income Security Act of 1974, and its regulations. 

“Event of Default” is defined in Section 8.  

“Exchange Act” is the Securities Exchange Act of 1934, as amended. 

“Foreign Currency” means lawful money of a country other than the United States. 

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

“GAAP” is generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other Person as may be approved by a significant segment of the accounting
profession, which are applicable to the circumstances as of the date of determination. 

  
 -23- 

 “General Intangibles” is all “general intangibles” as defined in the Code in effect on
the date hereof with such additions to such term as may hereafter be made, and includes without limitation, all Intellectual Property, claims, income and other tax refunds, security and other deposits, payment intangibles, contract rights, 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. 
 “Governmental Approval” is any consent, authorization, approval,
order, license, franchise, permit, certificate, accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority. 

“Governmental Authority” is any nation or government, any state or other political subdivision thereof, any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any self-regulatory
organization. 
 “Guarantor” is any present or future guarantor of the Obligations. 

“Ikanos Singapore” is Ikanos Communications (Singapore) Private Limited, (registration no. 200702041W), a company incorporated under
the laws of Singapore. 
 “Ikanos Technology” is Ikanos Technology Ltd., a Cayman Islands company. 

“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. 

“Indemnified Person” is defined in Section 12.2. 

“Insolvency Proceeding” is any proceeding by or against any Person under the United States Bankruptcy Code, or any other bankruptcy or
insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief. 

“Intellectual Property” means all right, title, and interest in and to the following: (a) Copyrights, Trademarks, Trade Secrets and
Patents; (b) any and all industrial designs and any registrations and applications therefor; (c) any and all source code; (d) mask work rights and registrations and applications for registration or renewal; (e) domain names and
domain name registrations; (f) any similar or equivalent rights to any of the foregoing (as applicable) in any jurisdiction worldwide; (g) any and all design rights which may be available to a Credit Party; (h) Intellectual Property
Claims; and (i) all amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents or, as applicable, any of the other foregoing described Intellectual Property. 

“Intellectual Property Claims” means all right, title, and interest in and to any and all claims for damages by way of past, present
and future infringement of any of the items listed in (a) through (g) of the definition of Intellectual Property, with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the Intellectual
Property rights identified above and in items (a) through (g) of the definition of Intellectual Property. 
 “Intellectual
Property Collateral” means all Collateral consisting of Intellectual Property. 
 “Intercreditor Agreement” means
that certain Intercreditor Agreement dated as of the date hereof, between SVB and Lender, and consented to by Borrower and Ikanos Singapore. 

“Interest Payment Date” means the last Business Day of each fiscal quarter and the Maturity Date. 

  
 -24- 

 “Inventory” is all “inventory” as defined in the Code in effect on the date hereof
with such additions to such term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products, including without limitation such
inventory as is temporarily out of Borrower’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above. 

“Investment” is any beneficial ownership interest in any Person (including stock, partnership interest or other securities), and any
loan, advance or capital contribution to any Person. 
 “Lender” is defined in the preamble hereof. 

“Lender Entities” is defined in Section 12.9. 

“Lien” is a claim, mortgage, deed of trust, levy, charge, pledge, security interest or other encumbrance of any kind, whether
voluntarily incurred or arising by operation of law or otherwise against any property. 
 “Loan” means the extension of credit by
Lender to the Borrower pursuant to Section 2.2. 
 “Loan Documents” are, collectively, this Agreement, the Intercreditor
Agreement, the Perfection Certificate, any note, or notes or guaranties executed by Borrower or any Guarantor, and any other present or future agreement between Borrower any Guarantor and/or for the benefit of Lender in connection with this
Agreement, all as amended, restated, or otherwise modified. For the avoidance of doubt, the Commercial Agreement, the Collaboration Agreement and the documents relating to the Rights Offering, the Warrant Issuance and each of the PIPE Investments
shall not constitute Loan Documents. 
 “Material Adverse Change” is (a) a material impairment in the perfection or
priority of Lender’s Lien in the Collateral or in the value of such Collateral provided by Borrower or a Guarantor; (b) a material adverse change in, or material adverse effect on, the business, operations, assets, properties, liabilities
(actual or contingent), condition (financial or otherwise), or prospects of the Credit Parties, taken as a whole; (c) a material impairment of the rights and remedies of Lender under any loan documentation, or of the ability of any Credit Party
to perform its obligations under any loan documentation to which it is a party; or (d) a material adverse effect upon the legality, validity, binding effect, or enforceability against any Credit Party of any loan documentation to which it is a
party. 
 “Material Subsidiary” is defined in Section 6.14. 

“Maturity Date” is the day that is the third anniversary of the Funding Date (or, if such day is not a Business Day, the next preceding
Business Day). 
 “Monthly Financial Statements” is defined in Section 6.2(a). 

“Non-Loan Parties” means all Affiliates of the Credit Parties other than Borrower or any Guarantor. 

“Notice of Borrowing” means a notice given by Borrower to Lenders in accordance with Section 3.4, substantially in the form of
Exhibit B, with appropriate insertions. 
 “Obligations” are the Credit Parties’ obligations to pay when due any debts,
principal, interest (including for the avoidance of doubt, the PIK interest), Lender expenses and other amounts any Credit Party owes Lender now or later, whether under this Agreement, the other Loan Documents, or otherwise, including, without
limitation, interest accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of Borrower assigned to Lender, and to perform all of each Credit Party’s duties under the Loan Documents. 

“Operating Documents” are, for any Person, such Person’s formation documents and/or certificate of incorporation, as certified
with the Secretary of State of such Person’s state of formation on a date that is no earlier than thirty (30) days prior to the Effective Date, and, (a) if such Person is a corporation, its bylaws or memorandum and articles of
association in current form, (b) if such Person is a limited liability company, its limited liability company agreement (or similar agreement), and (c) if such Person is a partnership, its partnership agreement (or similar agreement), each
of the foregoing with all current amendments or modifications thereto. 

  
 -25- 

 “Original Principal Amount” is defined in Section 2.2. 

“Patents” means all patents, patent applications, registrations therefor and like protections, including, without limitation, improvements,
divisions, continuations, provisionals, substitutions, renewals, reissues, extensions, continuations-in-part thereof and all foreign counterparts of the same. 

“Payment” means all checks, wire transfers, and other items of payment received by Lender (including proceeds of Accounts and payment of the
Obligations in full) for credit to Borrower’s outstanding amount on the Loan or other Obligations or, if the balance of the outstanding amount of the Loan has been reduced to zero, for credit to a Borrower’s deposit account. 

“Perfection Certificate” is defined in Section 5.1. 

“Permitted Acquisition” means an acquisition by Borrower, a Guarantor, or a Non-Loan Party of all of the outstanding capital stock of Persons
that are not Affiliates or of assets not owned by Affiliates constituting an ongoing business or line of business, but only if all of the following conditions are fulfilled: 
  

	 	(a)	Borrower shall have provided Lender not less than thirty (30) days written notice of such acquisition; 

  

	 	(b)	the acquired Person or ongoing business or line of business is engaged in business activities primarily conducted within the United States and in business activities which the acquiring Person is permitted to engage in
pursuant to Section 7.2 or a line of business reasonably related thereto; 

  

	 	(c)	if the acquisition is by Borrower or a Guarantor, any applicable Person so acquired becomes a Borrower or Guarantor under the Loan Documents; 

 

	 	(d)	prior to entering into an acquisition, Borrower shall have demonstrated to Lender’s satisfaction that Borrower shall be in pro forma compliance with the covenants and agreements set forth in this Agreement
(including those in Section 6.7) for the four fiscal quarters succeeding the acquisition, it being understood that such covenants shall be determined on a pro forma basis; 

 

	 	(e)	no Event of Default has occurred or is continuing before giving effect to such acquisition and no Event of Default or Material Adverse Change could reasonably be expected to be caused by such acquisition; and

  

	 	(f)	immediately after giving effect to any such acquisition, Borrower shall have a Liquidity Ratio of not less than 1.30 to 1.00. 

“Permitted Distributions” means: 
  

	 	(a)	purchases of capital stock of Borrower from former employees, consultants and directors pursuant to repurchase agreements or other similar agreements in an aggregate amount not to exceed $100,000 in any fiscal year,
provided that at the time of such purchase no Event of Default has occurred and is continuing; 

  

	 	(b)	distributions or dividends consisting solely of Borrower’s capital stock; 

  

	 	(c)	purchases for value of any rights distributed in connection with any stockholder rights plan of Borrower; 

  
 -26- 

	 	(d)	purchases of capital stock of Borrower or options to acquire such capital stock with the proceeds received from a substantially concurrent issuance of capital stock or convertible securities of Borrower;

  

	 	(e)	purchases of capital stock of Borrower pledged as collateral for loans to employees; 

  

	 	(f)	purchases of capital stock of Borrower in connection with the exercise of stock options or stock appreciation rights by way of cashless exercise or in connection with the satisfaction of withholding tax obligations;

  

	 	(g)	purchases of fractional shares of capital stock of Borrower arising out of stock dividends, splits or combinations or business combinations; and 

 

	 	(h)	the settlement or performance of such Person’s obligations under any equity derivative transaction, option contract or similar transaction or combination of transactions. 

“Permitted Indebtedness” is: 
  

	 	(a)	Borrower’s Indebtedness to Lender under this Agreement and the other Loan Documents; 

  

	 	(b)	Any Credit Party’s Indebtedness under the SVB Credit Facility. 

  

	 	(c)	Indebtedness (other than Indebtedness to any officer, director, or shareholder of Borrower) existing on the Effective Date and shown on the Perfection Certificate; 

 

	 	(d)	Subordinated Debt; 

  

	 	(e)	unsecured Indebtedness to trade creditors incurred in the ordinary course of business; 

  

	 	(f)	Indebtedness incurred as a result of endorsing negotiable instruments received in the ordinary course of business; 

  

	 	(g)	Indebtedness (other than Indebtedness to any officer, director, or shareholder of Borrower) secured by Liens permitted under clauses (a) and (c) of the definition of “Permitted Liens” hereunder;

  

	 	(h)	Indebtedness consisting of Capital Lease Obligations in an aggregate amount not to exceed $500,000 at any time; 

  

	 	(i)	Indebtedness of Borrower to any Subsidiary and Contingent Obligations of any Subsidiary with respect to obligations of Borrower (provided that the primary obligations are not prohibited hereby), and Indebtedness of any
Subsidiary to Borrower in an aggregate principal amount not to exceed $500,000 or any other Subsidiary and Contingent Obligations of any Subsidiary with respect to obligations of any other Subsidiary (provided that the primary obligations are not
prohibited hereby); 

  

	 	(j)	other unsecured Indebtedness (other than Indebtedness to any officer, director, or shareholder of Borrower) in an aggregate amount not to exceed $250,000 at any time; and 

 

	 	(k)	extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness specified in (b) above, provided that the principal amount thereof is not increased or the terms thereof
are not modified to impose more burdensome terms upon Borrower or its Subsidiaries, as the case may be. 

  
 -27- 

 “Permitted Investments” are: 

 

	 	(a)	Investments (including, without limitation, Subsidiaries) existing on the Effective Date and shown on the Perfection Certificate; 

  

	 	(b)	Investments consisting of Cash Equivalents; 

  

	 	(c)	Investments consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of Borrower’s business; 

 

	 	(d)	Investments consisting of deposit accounts in which Lender has a perfected security interest; 

  

	 	(e)	Investments accepted in connection with Transfers otherwise permitted by Section 7.1; 

  

	 	(f)	Investments consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary course of business, and (ii) loans to employees, officers or directors relating
to the purchase of equity securities of Borrower or its Subsidiaries pursuant to employee stock purchase plans or agreements approved by Borrower’s Board of Directors; 

 

	 	(g)	Investments (including debt obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or
suppliers arising in the ordinary course of business; 

  

	 	(h)	Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who are not Affiliates, in the ordinary course of business; provided that this paragraph
(h) shall not apply to Investments of Borrower in any Subsidiary; 

  

	 	(i)	Investments by a Credit Party in a Subsidiary of a Credit Party in an amount not to exceed $1,000,000 in the aggregate in any fiscal year; and 

 

	 	(j)	other Investments in an amount not to exceed $250,000 per fiscal year. 

 “Permitted
Liens” are: 
  

	 	(a)	Liens existing on the Effective Date and shown on the Perfection Certificate or arising under this Agreement and the other Loan Documents or under the SVB Credit Facility; 

 

	 	(b)	Liens for taxes, fees, assessments or other government charges or levies, either (i) not due and payable or (ii) being contested in good faith and for which Borrower maintains adequate reserves on its Books,
provided that no notice of any such Lien has been filed or recorded under the Internal Revenue Code of 1986, as amended, and the Treasury Regulations adopted thereunder; 

 

	 	(c)	purchase money Liens (i) on Equipment acquired or held by Borrower incurred for financing the acquisition of the Equipment securing no more than $250,000 in the aggregate amount outstanding, or (ii) existing
on Equipment when acquired, if the Lien is confined to the property and improvements and the proceeds of the Equipment; 

  

	 	(d)	Liens of carriers, warehousemen, suppliers, or other Persons that are possessory in nature arising in the ordinary course of business so long as such Liens attach only to Inventory, securing liabilities in the aggregate
amount not to exceed $250,000 and which are not delinquent or remain payable without penalty or which are being contested in good faith and by appropriate proceedings which proceedings have the effect of preventing the forfeiture or sale of the
property subject thereto; 

  

	 	(e)	Liens to secure payment of workers’ compensation, employment insurance, old-age pensions, social security and other like obligations incurred in the ordinary course of business (other than Liens imposed by ERISA);

  
 -28- 

	 	(f)	leases or subleases of real property granted in the ordinary course of Borrower’s business (or, if referring to another Person, in the ordinary course of such Person’s business), and leases, subleases,
non-exclusive licenses or sublicenses of personal property (other than Intellectual Property) granted in the ordinary course of Borrower’s business (or, if referring to another Person, in the ordinary course of such Person’s business),
if the leases, subleases, licenses and sublicenses do not prohibit granting Lender a security interest therein; 

  

	 	(g)	non-exclusive licenses of Intellectual Property granted to third parties in the ordinary course of business; 

  

	 	(h)	Liens arising from attachments or judgments, orders, or decrees in circumstances not constituting an Event of Default under Sections 8.4 and 8.7; 

 

	 	(i)	Liens in favor of other financial institutions arising in connection with Borrower’s permitted deposit and/or securities accounts held at such institutions, provided that Lender has a perfected security interest in
the amounts held in such deposit and/or securities accounts; and 

  

	 	(j)	Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (c), but any extension, renewal or replacement Lien must be limited to the property
encumbered by the existing Lien and the principal amount of the indebtedness may not increase. 

 “Permitted
Transfers” are any of the following: 
  

	 	(a)	Transfers to Borrower; 

  

	 	(b)	Transfers of Inventory and Accounts from Ikanos Technology to Ikanos Singapore in the ordinary course of Ikanos Technology’s business; 

 

	 	(c)	Transfers of funds made in the ordinary course of the Borrower’s business to Subsidiaries for the purpose of funding payroll and other ordinary course expenses; and 

 

	 	(d)	Transfers of assets other than Intellectual Property during any fiscal year with a fair market value not in excess of $500,000 in the aggregate for all such Transfers. 

“Person” means an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust,
unincorporated association, joint venture, Governmental Authority or other entity of whatever nature. 
 The term “rate of
exchange” shall include any premiums, taxes and costs of exchange payable in connection with the purchase of or conversion into a relevant currency and shall be determined by the Lender in accordance with its normal procedures. 

“PIPE Investments” is defined in Section 3.1. 

“Registered Organization” is any “registered organization” as defined in the Code with such additions to such term as may hereafter
be made. 
 “Requirement of Law” is as to any Person, the organizational or governing documents of such Person, and any law (statutory or
common), treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is
subject. 
 “Responsible Officer” means any of the following officers of Borrower: the Chief Executive Officer, President, Chief
Financial Officer and Controller of Borrower. 

  
 -29- 

 “Restricted License” is any material license or other agreement with respect to which one
or more Credit Parties are the licensee (a) that prohibits or otherwise restricts a Credit Party from granting a security interest in such Credit Party’s interest in such license or agreement or any other property, or (b) for which a
default under or termination of could interfere with the Lender’s right to sell any Collateral. 
 “Rights Offering”
means the rights offering to be conducted by the Borrower to the Borrower’s stockholders existing as of the day immediately preceding the Effective Date, pursuant to a Registration Statement on Form S-1. 

“SEC” shall mean the U.S. Securities and Exchange Commission, any successor thereto, and any analogous Governmental Authority. 

“Securities Account” is any “securities account” as defined in the Code with such additions to such term as may hereafter be made.

 “Subordinated Debt” is indebtedness incurred by one or more Credit Parties subordinated to all of each such Credit Party’s
Obligations to Lender (pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Lender entered into between Lender and the other creditor), on terms acceptable to Lender. 

“Subsidiary” is, as to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock or other
ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such
corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person. Unless the context otherwise requires, each
reference to a Subsidiary herein shall be a reference to a Subsidiary of Borrower or a Guarantor. 
 “SVB” means Silicon Valley Bank, a
California corporation. 
 “SVB Credit Facility” means the revolving credit facility extended to Borrower and Ikanos Singapore by
SVB pursuant to the terms of that certain Loan and Security Agreement dated as of January 14, 2011, between Borrower, Ikanos Singapore and SVB, as amended, amended and restated or otherwise modified after the date of this Agreement. 

 “Taurus” means, collectively, Tallwood III, L.P., Tallwood III Partners, L.P. and Tallwood III Associates, L.P. 

“Taurus PIPE Investment” is defined in Section 3.1. 

“Total Liabilities” is on any day, obligations that should, under GAAP, be classified as liabilities on Borrower’s consolidated
balance sheet, including all Indebtedness and current portion of Subordinated Debt permitted by Lender to be paid by Borrower, but excluding all other Subordinated Debt. 

“Trademarks” means any trademark and service mark rights (including, without limitation, trade names, logos, trade dress and slogans),
whether registered or not, applications to register and registrations of the same and like protections, and the entire goodwill of the business of one or more Credit Parties connected with and symbolized by such trademarks and/or service marks. 

“Trade Secrets” means any trade secrets, trade secret rights, business, technical and know-how information, non-public information
(including, without limitation, any rights to unpatented inventions), and confidential information, each including databases and data collections and all rights therein, and rights to limit the use or disclosure thereof by any Person. 

“Transactions” means, collectively, the closing and consummation of each of: (a) the financing contemplated by this Agreement;
(b) the ALU PIPE Investment; (c) the Taurus PIPE Investment; (d) the Warrant Issuance; (e) the Rights Offering and (f) the due execution and delivery of the Commercial Agreement and the Collaboration Agreement. 

  
 -30- 

 “Transfer” is defined in Section 7.1. 

“Warrant Issuance” means the issuance of the Warrants as described in Section 3.1. 

“Warrants” is defined in Section 3.1. 

[Remainder of page intentionally left blank - signature page follows.] 

  
 -31- 

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

			
	BORROWER:
	
	IKANOS COMMUNICATIONS, INC., a Delaware corporation
		
	By	 	 /s/    Omid
Tahernia        

	Name:	 	 Omid Tahernia

	Title:	 	 President & Chief Executive Officer

	
	LENDER:
	
	ALCATEL-LUCENT USA, INC.
		
	By	 	 /s/    Fred
Ludtke        

	Name:	 	 Fred Ludtke

	Title:	 	 VP, M&A

 [Signature page to Loan and Security Agreement] 

 EXHIBIT A - COLLATERAL DESCRIPTION 

The Collateral consists of all of Borrower’s right title and interest in and to the following personal property: 

All goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, license
agreements, franchise agreements, General Intangibles, Intellectual Property, commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, fixtures, letters
of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and 

all Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions
for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing. 

 EXHIBIT B – FORM OF NOTICE OF BORROWING 

IKANOS COMMUNICATIONS, INC. 

Date:                      

 

	TO:	ALCATEL-LUCENT USA, INC. 

 7B-505 

600-700 Mountain Ave. 
 P.O. Box
636 
 Murray Hill, NJ 07974-0636 

Attn: Lenny Floria, Treasurer 
  

	RE:	Loan and Security Agreement dated as of September 29, 2014 (as amended, modified, supplemented or restated from time to time, the “Loan Agreement”), between IKANOS
COMMUNICATIONS, INC. (“Borrower”), and ALCATEL-LUCENT USA, INC. (“Lender”) 

Ladies and Gentlemen: 
 The undersigned refer to the Loan
Agreement, the terms defined therein and used herein as so defined, and hereby give you notice irrevocably, pursuant to Section 3.4(a) of the Loan Agreement, of the borrowing of the Loan. 

1. The Funding Date, which shall be a Business Day, of the requested borrowing is
                    . 
 2. The Original Principal
Amount is $        . 
 The undersigned hereby certify that the following statements are true on the date hereof,
and will be true on the Funding Date before and after giving effect thereto, and to the application of the proceeds therefrom, as applicable: 
  

	a)	all representations and warranties of Borrower contained in the Loan Agreement are true, accurate and complete in all material respects as of the date hereof; [provided, however, that such materiality qualifier shall
not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true,
accurate and complete in all material respects as of such date]; and 

  

	b)	no Default or Event of Default has occurred and is continuing, or would result from the funding of the Loan. 

[Signature page follows] 

							
		  	BORROWER:                        	 	IKANOS COMMUNICATIONS, INC.
				
		  		 	By:	 	  

		  		 	Name:	 	  

		  		 	Title:	 	  

 EXHIBIT C - COMPLIANCE CERTIFICATE 

 

					
	TO:	  	ALCATEL-LUCENT USA, INC. (“Lender”)	  	Date:                    
			
	FROM:	  	IKANOS COMMUNICATIONS, INC.	  	

 The undersigned authorized officers of IKANOS COMMUNICATIONS, INC.
(“Borrower”) certifies that under the terms and conditions of the Loan and Security Agreement between Borrower and Lender (the “Loan Agreement”), (1) Borrower is in complete compliance for the period ending
                     with all required covenants except as noted below, (2) there are no Events of Default, (3) all representations and
warranties in the Loan Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are
qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date,
(4) Borrower, and each of its Subsidiaries, have timely filed all required tax returns and reports, and Borrower and each of its Subsidiaries have timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions
owed by a Borrower or Subsidiary, except as otherwise permitted pursuant to the terms of Section 5.9 of the Loan Agreement, and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid
employee payroll or benefits of which Borrower has not previously provided written notification to Lender. Attached are the required documents supporting the certification. The undersigned certify that these are prepared in accordance with GAAP
consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance
with any of the terms of the Loan Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Loan Agreement. 

Please indicate compliance status by circling Yes/No under “Complies” column. 

 

									
	 Reporting Covenants
	  	 Required
	  	 	  	 Complies
	 
	Monthly Financial Statements	  	Monthly, within 30 days	  	 	Yes    No	  
	Compliance Certificate	  	Monthly, within 30 days and annually together with delivery of Audited Annual Financial Statements	  	 	Yes    No	  
	Board Projections	  	Annual, within 45 days of Borrower FYE	  	 	Yes    No	  
	Audited Annual Financial Statements	  	Annual, within 90 days of Borrower FYE	  	 	Yes    No	  
	10-Q, 10-K and 8-K	  	Within 5 days after filing with SEC	  	 	Yes    No	  
				
	 Financial Covenant
	  	 Required
	  	 Actual
	  	 Complies
	 
	 Maintain at all times, tested as indicated:
	  		  			
	 Adjusted Quick Ratio (Monthly)
	  	        3 1.20:1.00	  	        :1.00	  	 	Yes    No	  

 The following financial covenant analyses and information set forth in Schedule 1 attached hereto are true and accurate
as of the date of this Certificate. 
 The following are the exceptions with respect to the certification above: (If no exceptions exist, state “No
exceptions to note.”) 
  
  

 
  
  

 
  

			
	IKANOS COMMUNICATIONS, INC.
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

 Schedule 1 to Compliance Certificate 

Financial Covenants of Borrower 

In the event of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern. 

Dated:                      

I. Adjusted Quick Ratio (Section 6.7(a)) 
 Required:
             At least 1.20:1.00 
 Actual: 

 

							
	 A.
	  	 Unrestricted cash, Cash Equivalents, and short-term investments at SVB and up to $3,000,000 in cash from Borrower’s India
Subsidiary
	  	$	            	  
			
	 B.
	  	 Gross domestic and international balance sheet A/R
	  	$	            	  
			
	 C.
	  	 Sum of Line A + Line B
	  	$	            	  
			
	 D.
	  	 All obligations of the Credit Parties that mature within one (1) year that should, under GAAP, be classified as liabilities on
Borrower’s consolidated balance sheet, including all Indebtedness and current portion of Subordinated Debt permitted by SVB to be paid by Borrower, but excluding all other Subordinated Debt, all deferred revenue and all Indebtedness incurred
under the Loan Agreement or otherwise owing from Borrower or its Affiliates to Lender.
	  	$	            	  
			
	 E.
	  	 Indebtedness incurred under the SVB Credit Facility
	  	$	            	  
			
	 F.
	  	 Sum of Line D + Line E
	  	$	            	  
			
	 G.
	  	 Adjusted Quick Ratio (Line C divided by Line F)
	  			

 Is Line G at least 1.20:1:00?
                                        No, not
in compliance
                                        Yes, in
compliance 

 Schedule 5.3 

Intellectual Property

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