Document:

Atheros Technology License Agreement - Atheros Communications

 Exhibit 10.8 
 Confidential Treatment Requested. Confidential portions of this document have been redacted and have been 
 separately filed with the Commission. 
 ATHEROS
TECHNOLOGY LICENSE AGREEMENT 
  
  

							
	 	 	 	 
	Atheros Communications, Inc.	 	 	  	Meru Networks, Inc.	  	 
	 	 		 
	By: /s/ Gary Szilagyi	 	 	  	By: /s/ Travis K. Tom	  	 
	 	 		 
	Name: Gary Szilagyi	 	 	  	Name: Travis K. Tom	  	 
	 	 	 
	Title:VP Sales	 	 	  	Title: Sr. Director, Business Operations
	 	 		 
	Date: 8/20/09	 	 	  	Date: August 7, 2009	  	 
	 	 
	 Principal Place of Business:
  
 5480 Great
America Parkway
 Santa Clara, CA 95054
	  	 Principal Place of Business:

  
 894 Ross Drive
 Sunnyvale, CA 94089

	 
	Effective Date of this
License Agreement: August 7, 2009 (“Effective Date”)

 This Technology License Agreement
(“License” or “Agreement”) is made and entered into as of the Effective Date by and between Atheros Communications, Inc. (“Atheros” or “we” or “us”),
and the licensee identified above (“Licensee” or “you”). The parties, intending to be legally bound, agree as follows: 
 1. DEFINITIONS 
 “Atheros Competitor” means a person or
entity that designs, develops, manufactures or markets any integrated circuit, device or software that provides baseband, media access control (MAC-layer) or radio-frequency front-end functionality for wireless communications using unlicensed radio
spectrum. 
 “Component” means a semiconductor product sold under an Atheros label or manufactured under license
from Atheros. 
 “Designated Equipment” means equipment that incorporates one or more Components. 
 “Development Hardware” means Components and boards listed on the price list in Exhibit A, or on our then-current
Development Hardware price list: (i) that are purchased by you directly from us for use solely in developing Designated Equipment and Your Software, and (ii) that will not be resold, either on a stand-alone basis or in or with other
equipment. 
 “Effective Date” is defined in the signature block above. 
 “Excluded Code” means files and groups of files that are governed by a separate (e.g., signed or click-wrapped terms, or
terms provided within the file itself and acknowledged through use of the file) license agreement. Software licensed by you under the GPL, BSD or other open source licenses is Excluded Code unless agreed by us otherwise in writing. 
 “Intellectual Property Rights” means patents, trademarks, tradenames, service marks, mask works, copyrights, and
applications for any of the foregoing, know-how, confidential information, trade secrets and any other similar rights throughout the world. 
 “License Term” means: (i) for the Modules listed in Exhibit A, for all other Modules that you acquire from Atheros during the Term and for which you are not required to pay a
separate license fee, and for Updates to the foregoing Modules: the Term; and (ii) for Modules and Upgrades for which you pay us a separate license fee, and for Updates to such Modules and Upgrades: the initial term (“Initial License
Term”) of such license specified by us at the time of such purchase, and any Renewal License Term of that license. 
 Each Initial License Term will automatically renew, without an additional license fee, for successive one year periods (each: a “Renewal License Term”), until and unless one of the parties provides the other a notice
of non-renewal at least 90 days prior to the end of a then-current License Term. 
 “Licensed Technology” means
each and all of the following provided to you during the Term: (i) Reference Designs, (ii) Our Software, (iii) the Technical Documentation, and (iv) Atheros end user documentation. 
 “Module” means each and all of the following: (i) the software file or group of files listed in Section 6 of
Exhibit A, and (ii) any different software file or group of files (excluding Reference Designs) that you download, with authorization, from an Atheros server or that Atheros otherwise provides to you during the Term. “Module”
excludes and does not mean Excluded Code. 
 “Object Code” means an object or binary (machine-readable) version
of an item of Our Software or Your Software. 
  

  

					
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 “Our Software” means each and all of the following: (i) a Module,
(ii) an Update obtained from us during a Support Term for which you have paid the applicable fees pursuant to Section 8.3 (Renewal, Support Fees), and (iii) an Upgrade for which you pay a separate license fee to us, and that is not
governed by a separate written (e.g. signed or click-wrap) license agreement. 
 “Reference Design” means the
Gerber files and other computer code provided to you by Atheros during the Term that provide a reference design for boards incorporating a Component. 
 “Source Code” means the source (human readable) version of an item of Our Software or Your Software. 
 “Support Term” means the first year of the Initial Term designated on Exhibit A, and each annual extension of that Support Term for which the requisite annual support fee has been paid.

 “Technical Documentation” means documentation, of Our Software or of a Reference Design, that we provide to
you during the Term, other than end user documentation of Our Software. 
 “Term” means the Initial Term
designated on Exhibit A, and any Renewal Term. The Initial Term will automatically renew, without an additional license fee, for successive one year periods (each: a “Renewal Term”), until and unless one of the parties
provides the other a notice of non-renewal at least 90 days prior to the end of a then-current Term. 
 “Update”
means a version of a Module (released after the date you first obtain the Module) that we make generally available during the License Term of that Module, without additional charge, to all customers that have purchased support services from us.

 “Upgrade” means a version of a Module (released after the date you first obtain the Module) that we make
available during the License Term of that Module, and that is not an Update. 
 “Your Documentation” means any
documentation, of Our Software or Your Software, supplied by you to your customers. 
 “Your Software” means
each and all of the following: (i) any change to Our Software developed by or for you under this License, and (ii) other software developed by or for you under this License using any application programming interfaces in Our Software.

 2. PERMITTED USES AND RESTRICTIONS. 
 2.1. General. Our Software and Reference Designs are licensed, not sold, to you, for use only as permitted by this License. We reserve all rights not expressly granted to you. The rights granted
below in Section 2.2 are non-exclusive, and are limited to our and our licensors’ Intellectual Property Rights in Our Software and Reference Designs. 
 2.2. Grant. Subject to the terms and conditions of this License: 
 2.2.1. Source Code. During the License Term of a Module, you may: 
 (i) use, copy and
modify the Source Code of that Module, solely to develop Your Software for use in or with Designated Equipment, to generate Object Code of Our Software for use as permitted in Section 2.2.2 (Object Code), and to develop Designated Equipment;

 (ii) use, copy and modify the Source Code of Your Software that was developed pursuant to clause
(i) above to generate Object Code of Your Software for use as permitted in Section 2.2.2 (Object Code), and to develop Designated Equipment; and 
 (iii) sublicense your rights under (i) and (ii) to a person or entity that is not an Atheros Competitor (a “contractor”) solely to enable the contractor to perform development
services solely for you, provided the contractor agrees in writing to: (a) abide by all the provisions of this License applicable to such Source Code, including restrictions on the disclosure and use of the code, and (b) return to you or
destroy all copies of any provided Source Code. You agree to enforce such terms in a manner similar to that which you use to protect your own source code and most confidential information. 
 2.2.2. Object Code. During the License Term of a Module, you may: (i) use the Object Code of that Module,
and of Your Software developed using that Module or developed for use with that Module, only when embedded in Designated Equipment or as a driver of a Component, and (ii) manufacture, have manufactured, import, offer to sell and sell
(directly and indirectly) Designated Equipment incorporating such Object Code. You may sublicense the rights under (i) of this Section 2.2.2 only to end users of the Designated Equipment, pursuant to a binding software license agreement
meeting the requirements set forth in Exhibit B. 
 2.2.3. Reference Designs. During the Term, you
may use, copy and modify the Reference Designs solely to develop, manufacture and have manufactured, and support, Designated Equipment. 
  

  

					
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 2.2.4. Documentation, Branding. During the Term, you may:

 (i) use and copy Technical Documentation solely in connection with the development, manufacture and support of
Designated Equipment; and 
 (ii) subject to the requirements of this Section 2.2.4 (Documentation,
Branding), modify the Atheros end user documentation we supply to you by incorporating all or any portion of it into Your Documentation, and distribute (directly and indirectly) Your Documentation to purchasers of Designated Equipment. 

Other than to list a Component as an ingredient of Designated Equipment, Your Documentation and Designated Equipment may
not be branded with our name or brand without our prior written permission. You must delete from Your Documentation all references to Atheros being the contact for technical support. You may use a third-party fulfillment house to produce Your
Documentation, provided you are responsible for ensuring such third party’s compliance with the terms of this License. 
 2.3. No Open Source. In your exercise of the rights granted under this License, you will not take any action or enter any agreement that would result in any contractual requirement that we or you make available to a third party any
of the Source Code of Our Software.  
 2.4. Restrictions. Each copy of Our Software must include all copyright
and other proprietary notices contained on the original copy of that software. Each copy of Your Software must include a copyright or other notice sufficient to protect our Intellectual Property Rights in Our Software from which Your Software was
derived. 
 Except to the extent permitted in this Section 2 (Permitted Used and Restrictions) or by applicable law, you
may not (and may not allow anyone else to): (i) copy, decompile, decrypt, reverse engineer, disassemble, modify, or create derivative works of any Licensed Technology or Development Hardware, or attempt to reconstruct or discover any Source
Code or underlying ideas or algorithms of Our Software, (ii) remove, alter or obscure any product identification, copyright or other intellectual property notices embedded within or on the Licensed Technology or any Development Hardware, or
(iii) publish, disclose, sell, rent, lease, lend, distribute, sublicense or provide Licensed Technology or any Development Hardware to any third party. 
 2.5. Delivery. Licensed Technology will be made available to you in electronic format for download, using a user authorization mechanism (i.e., password). You may provide the authorization
mechanism only to your employees on a need-to-know basis. 
 3. INTELLECTUAL PROPERTY 
 3.1. Ownership, Covenant. We are and will be the sole owner of all right, title and interest, including all the Intellectual Property
Rights, in and to the Licensed Technology, and all modifications, enhancements, updates, upgrades and derivative works thereof made by or for us. Subject to Atheros’ ownership in the Licensed Technology, you will be the sole owner of all right,
title and interest, including all the Intellectual Property Rights, in and to Your Software and Your Documentation, and all derivative works thereof made by or for you. You irrevocably covenant and agree that you will, and that you will take all
commercially reasonable steps to, require that any permitted transferee of your right, title and interest in and to any of Your Software (each a “Transferee”) does, not assert, commence, assist, advise or prosecute any claim, action
or proceeding of any kind, against us, or any of our licensees or transferees or any sublicensee of any of the foregoing, alleging that the reproduction, modification, display, performance, use, sale, offer to sell, importation, distribution or
other exploitation of any of our products or software, or of any derivative work or modified version thereof, infringes or violates any of your or your Transferee’s Intellectual Property Rights in Your Software; and you hereby irrevocably and
unconditionally waive your right to assert, commence or prosecute any such claim, action or proceeding. 
 3.2. Feedback.
You agree that any feedback or ideas you provide to us regarding any Licensed Technology or any suggested improvements thereto (together: the “Feedback”) will be the exclusive property of Atheros. To the extent you own any rights in
the Feedback, you agree to assign and hereby do assign to us all right, title and interest in and to the Feedback. You agree to perform all acts reasonably requested by us to perfect and enforce such rights. We will reimburse you for direct out of
pocket costs incurred in complying with our requests. 
 3.3. Notices. You agree to include on Your Documentation, all
copyright, proprietary and other Intellectual Property Rights notices reasonably requested by us in writing. 
 3.4.
Notification of Unauthorized Use. You will promptly notify us if you become aware of any unauthorized use of the Licensed Technology or violation or threatened violation of our Intellectual Property Rights therein. You agree to cooperate with us
and render such assistance as we may reasonably request to identify, halt and/or prevent any violation of the provisions of this License. 
 3.5. Announcement. Except as required to satisfy legal disclosure and financial reporting requirements, neither party may use the name of the other party in any news release, public announcement,
advertisement or other form of publicity without the prior written consent of the other party. 
  

  

					
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 4. FEES, PAYMENTS, TAXES 
 4.1. Fees. You agree to pay to us: (i) the license fees set forth in Exhibit A for Our Software listed in Section 5 of
Exhibit A, (ii) the then-current license fee, if any, of any other Module or Update you obtain under this Agreement; (iii) the support fees described in Section 8 (Support), and (iv) the hardware fees described in Section 5
(Supply of Components and Development Hardware). 
 4.2. Payments. Payments will be due within 30 days of invoice date.
All prices are stated, and all payments must be made, in U.S. dollars. Late payments shall accrue interest at a rate of 12% per year or a lesser amount required by law. 
 4.3. Taxes. All fees are exclusive of, and you are responsible for, any taxes, tariffs, duties and other government-imposed charges
resulting from the license, sale, provision or use of Our Technology or of any product or service under this License (except for taxes based on our net income) and any penalties, interest and collection or withholding costs associated with any of
the foregoing items. You agree to pay our fees without deduction for withholding taxes or other assessments required or imposed by any taxing authorities, and to pay all such withholding taxes and assessments. You further agree promptly to furnish
us with a certificate evidencing payment of each such tax or assessment. When we have the legal obligation to pay or collect such taxes or fees, you agree to pay such amounts unless you provide us a valid tax exemption certificate. You agree to
reimburse us for any fines, penalties, taxes and other charges, including expenses incurred by us, due to your submission of invalid tax-related information. 
 5. SUPPLY OF COMPONENTS AND DEVELOPMENT HARDWARE 
 5.1. Supply of
Components. You may order Components from us (or, in our discretion, from our wholly-owned subsidiary, Atheros Technology Ltd., a Bermuda corporation), at the then-current Component list prices or such price as is quoted to you in a written
price quote. All orders are subject to acceptance, and will be governed by the terms of Exhibit C. Those terms may be modified or supplemented only as provided in Exhibit C. The terms and conditions appearing on any purchase order, invoice or other
document submitted by either party will not apply to your order, except for name(s) of product(s) ordered, quantity, requested shipment date and delivery destination. 
 Subject to our prior written consent, which consent may be provided via email, you may authorize third parties such as contract manufacturers to order Components on your behalf. You may not reveal pricing
to the third party, and you guarantee payment and compliance by such third party under and with the provisions of Exhibit C. 
 5.2. Development Hardware. During the Term, you may order a reasonable quantity of Development Hardware, at the prices set forth on the then-current Development Hardware Price List. All orders are subject to acceptance, and will be
governed by the terms of Exhibit C, except that the provisions of this Agreement that explicitly reference Development Hardware will take precedence over any contrary or additional provisions of Exhibit C related to the same subject matter.

 6. THIRD PARTY RIGHTS 
 6.1. Third Party Software Supplied. Our Software may include software licensed from third parties (“Third Party Software”). Third Party Software is subject to the license terms and
disclaimers (together: “Terms”) provided by the licensor. Third Party Software will be identified in a Read Me or Credits file or folder accompanying such software. NOTWITHSTANDING ANY OTHER PROVISION OF THIS LICENSE, YOUR USE OF
EACH ITEM OF THIRD PARTY SOFTWARE IS GOVERNED BY ITS APPLICABLE TERMS, AND WE ASSUME NO RESPONSIBILITY FOR, AND MAKE NO WARRANTY WITH RESPECT TO, THIRD PARTY SOFTWARE. 
 6.2. Third Party Software Required to be Obtained by You. You may need to obtain software from third parties to use or for use with Our Software. For example, you may need to obtain ethernet source
code from National Semiconductor, or a runtime license and development seats for VxWorks. It is your responsibility to ensure you obtain and pay for any such required third party software. 
 6.3. Published Standards. Royalty Obligations. You understand and acknowledge that third parties may claim that a royalty or other
fee is due to them as a result of the adherence of Our Software or Your Software to published standards. Any such fees are your sole responsibility. 
 7. WARRANTIES, INDEMNITY 
 7.1. Disclaimer of Warranty. The Licensed Technology is provided AS IS, with
all faults. We support Our Software as set forth in Section 8.2 (Support Services). 
 7.2. Development Hardware
Warranty. We warrant solely to you that for 30 days after delivery to you (“Hardware Warranty Period”), each item of Development Hardware will be operative. If you give us written notice that an item of Development Hardware is
non-operative within the Hardware Warranty Period, we will, at our sole option, replace the non-operative item or refund the purchase price of that item (or if that item was provided on a bundled basis without separate charge, then the price of such
item as set forth in Exhibit A). 
 7.3. Warranty Disclaimer and Limited Remedies. SECTION 7.2 STATES YOUR EXCLUSIVE
REMEDY AND OUR ENTIRE LIABILITY FOR ANY BREACH OF WARRANTY. We make no warranty or representation that any Licensed Technology or Development Hardware will meet your requirements or work in combination with any hardware or applications software
provided by third parties,

  

  

					
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that the operation of Our Software will be uninterrupted or error-free, or that any defects in any Licensed Technology will be corrected. EXCEPT AS EXPLICITLY SET FORTH IN SECTION 7.2, WE
DISCLAIM ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY, NONINFRINGEMENT AND FITNESS FOR A PARTICULAR PURPOSE. NO ORAL OR WRITTEN INFORMATION OR ADVICE GIVEN BY US OR ANY OF OUR EMPLOYEES OR REPRESENTATIVES WILL CREATE A
WARRANTY. 
 7.4. Intellectual Property Indemnity. 
 7.4.1. By Us. Provided the requirements of Section 7.4.3 (Conditions) are met, we will, at our expense,
defend (or at our option, settle) any suit brought against you, and will pay all damages and costs (including reasonable attorneys’ fees) (together: “Damages”) finally awarded against you, to the extent based on a claim that
Our Software directly infringes any duly issued United States, Japan or European Union patent or Berne Convention copyright, or misappropriates any trade secret right of any third party. 
 Notwithstanding the foregoing, we will have no liability or obligation with respect to claims or Damages arising from:
(i) Your Software (to the extent it differs from Our Software), Third Party Software or a modification to or derivative work of Our Software not made by us; (ii) the combination or use of Our Software with anything other than a Component;
(iii) compliance with your design requirements or specifications or those of your customer, (iv) the use of other than the then-current release of Our Software, to the extent that such other than the then current release is infringing and
from the day that we advised you that use of a prior version reasonably could be infringing, or (v) your continuation of allegedly infringing activity after being notified thereof and provided a non-infringing version (each, an
“Excluded Claim”). 
 If the use of Our Software is enjoined, or we believe a claim of
infringement is likely, we may, at our sole option and expense: (i) procure for you the right to continue using Our Software as licensed herein; (ii) provide you functionally equivalent, non-infringing software; or (iii) if neither of
the foregoing is commercially reasonable, terminate the license to the affected software and refund a portion of the license fee you paid for that software (if any) (amortizing that fee on a straight-line basis over its License Term). 
 THIS SECTION 7.4.1 STATES OUR ENTIRE RESPONSIBILITY AND LIABILITY, AND YOUR EXCLUSIVE REMEDY, FOR ANY ACTUAL OR ALLEGED
INFRINGEMENT OR MISAPPROPRIATION OF ANY THIRD PARTY RIGHTS ARISING WITH RESPECT TO OUR SOFTWARE AND ANY OTHER ITEMS, PRODUCTS OR SERVICES PROVIDED HEREUNDER. 
 7.4.2. By You. Provided the requirements of Section 7.4.3 (Conditions) are met, you will, at your expense,
defend (or at your option, settle) any suit brought against us, and will pay all Damages finally awarded against us, to the extent based on an Excluded Claim. THIS SECTION 7.4.2 STATES YOUR ENTIRE RESPONSIBILITY AND LIABILITY, AND OUR EXCLUSIVE
REMEDY, FOR ANY ACTUAL OR ALLEGED INFRINGEMENT OR MISAPPROPRIATION OF ANY THIRD PARTY RIGHTS ARISING WITH RESPECT TO YOUR SOFTWARE OR ANY EXCLUDED CLAIM. 
 7.4.3. Conditions. As a condition to receiving the indemnification and defense specified above, the indemnified party must: (i) promptly notify the indemnifying party of any actual or
threatened suit, claim or proceeding on which indemnity is or may be sought, (ii) give the indemnifying party sole control, through counsel of its choice, of the defense and settlement of the claim, and (iii) at the indemnifying
party’s expense, reasonably cooperate in the defense and settlement of the claim and provide the indemnifying party all information, assistance and authority requested to enable it to defend of settle the claim. 
 8. SUPPORT 
 8.1.
Training. No training is provided under this Agreement. 
 8.2. Support Services. During the Support Term, subject to
the provisions of this Section 8.2, we will provide to you, at no additional charge, Updates of Our Software and Technical Documentation, and the other support services described below. 
 8.2.1. Error Correction. You may inform us of Errors in Our Software by sending e-mail to
support@Atheros.com. We will use reasonable commercial efforts to respond to such reports within two (2) business days, and to correct any documented, reproducible Error, to provide an acceptable work-around, or correct errors in the
documentation. “Error” means a problem that causes Our Software not to operate substantially in conformance with its Technical Documentation. 
 8.2.2. Limitations. Atheros will not support Your Software. You have sole responsibility for providing
technical support to, and you assume any and all warranty obligations to, your customers (at any tier) with respect to Our Software, Your Software and Designated Equipment. You have no authority to obligate us in any way under any warranty you may
provide. 
  

  

					
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 8.2.3. Additional Support Services Location Option.
Support services will be provided only to the site listed on Exhibit A, Section 4. Subject to our consent, you may purchase support services for additional location(s) (“Additional Support Services Location(s)”) at which Our
Software, Reference Designs and Development Hardware will be used by executing an amendment to this License and paying our then-current fees for such Additional Support Services Location(s) for each year for which you request such support. We will
deliver to you, at the Additional Support Services Location(s), at no additional charge, one test and software development board. 
 8.2.4. Support of Back Revs of Our Software. Migration to the then-current release of Our Software may be required for continued support. 
 8.2.5. No Support for Excluded Code, Even if Provided to You by Us, our Partner, Agent or Contractor.
You may now possess or may receive, from us, from our contractor or agent, or from another party or source, Excluded Code that functions or is intended to function with our Components, but which is not licensed under this Agreement. Excluded
Code, even if owned and controlled by us, will not be supported by us and is in no way warranted, indemnified or otherwise endorsed by us under this Agreement. 
 8.3. Renewal, Support Fees. Support services will be provided to you without charge during the first year following the Effective Date. Thereafter, the Support Term will automatically extend for
successive annual periods, until one of the parties provides the other a notice of non-renewal of support services at least 90 days prior to the end of the then-current Support Term. You agree to pay for annual support services after the first
anniversary of the Effective Date. The fee for each year of support services may be increased by Atheros in its sole discretion, but will not exceed 106% of the support fee for the prior year. For purposes of this calculation, the first year support
fee is set forth on Exhibit A. 
 Each annual invoice for support services will be rendered approximately 30 days before the end
of the then-current Support Term. Payment is due within 30 days of the invoice date. Failure to timely pay the fee shall terminate the Support Term. 
 9. LIMITATION OF LIABILITY 
 9.1. Limited Remedies, Damages Exclusion. Notwithstanding any other
provision of this Agreement: 
 (i) Our total, cumulative liability arising from or in connection with this License or any item
or service ordered or provided hereunder will be limited to the aggregate amounts of fees paid by you under this Agreement. 
 (ii) Except with respect to breaches of Section 12 (Confidentiality), in no event will either party be liable for incidental, consequential, indirect, special or punitive damages or lost revenue, data or profits (all collectively:
“indirect damages”), arising from or in connection with this License or any product or service ordered or provided hereunder. 
 The limitations on and disclaimers of remedies, warranties and damages set forth in this License will apply regardless of: (a) whether any specified remedy fails of its essential purpose, (b) the form of action (e.g., contract,
tort, statute, or other legal theory) and (c) whether we were advised of the possibility of such damages or such damages were foreseeable. These limitations and disclaimers reflect the parties’ reasonable allocation of the risks associated
with any performance or non-performance under this License, and are included in this License as a material inducement for us to enter into this License. 
 9.2. High Risk Applications. The Licensed Technology is not designed or warranted for use with chips other than Components, and it and the Components are not warranted by us for use in developing,
or for incorporation into, products or services used in applications or environments requiring fail-safe performance, such as in the operation of nuclear facilities, aircraft navigation or communication systems, air traffic control, life support
machines, surgically implanted devices, weapons systems, or other applications, devices or systems in which the failure of a Component or of Our Software or Your Software could lead directly to death, personal injury, or severe physical or
environmental damage (“High Risk Activities”). Notwithstanding any other provision of this License, you assume all risk of such uses, and if you or your customers at any tier use or permit the use of any such item(s) in connection
with High Risk Activities, you agree to indemnify, defend and hold us harmless from all claims, expenses and liability arising as a result of such use. 
 10. TERM, TERMINATION 
 10.1. Term. Unless earlier terminated
pursuant to this Section 10, this License will continue for the Term. 
 10.2. Termination for Cause. This License
and all licenses granted hereby will automatically terminate upon any breach by you of a provision of Sections 2.2.1 (Source Code), 2.2.3 (Reference Designs), 2.3 (No Open Source), 2.4 (Restrictions), or 12 (Confidentiality). In addition, this
License and all licenses granted hereby may be terminated by either Party if the other party breaches any provision of this License and fails to remedy such breach within 30 days of receipt of written notice. 
 10.3. Bankruptcy. We may terminate this License immediately upon written notice upon the occurrence of any

  

  

					
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one of the following events: (i) a receiver is appointed for either you or your property; (ii) you become insolvent or admit in writing your inability to pay your debts as they become
due, (iii) you make a general assignment for the benefit of your creditors; (iv) you commence, or have commenced against you, proceedings under any bankruptcy, insolvency or debtor’s relief law, which proceedings are not dismissed
within 60 days; or (v) you are liquidated, dissolved or cease to do business. 
 11. EFFECT OF TERMINATION/EXPIRATION 
 11.1. Return of Materials. On any termination or expiration of this License, except as provided in Section 11.2 (Retention
of Copies, Sell-Off), you agree immediately to cease all use of, and destroy, all copies (including backup copies) of the Licensed Technology, including all tangibles incorporating any such items (but excluding Designated Equipment), and promptly to
certify to us in writing that you have done so. 
 11.2. Retention of Copies, Sell-Off. Unless this License is terminated
automatically or by us for cause pursuant to Section 10.2 (Termination for Cause), you may: (a) retain copies of the Licensed Technology solely for use in supporting customers that purchased Designated Equipment prior to the expiration or
termination of this License, and (b) sell inventory of Designated Equipment that has already been manufactured or is in process on, and up to 120% of the amount of Designated Equipment for which you have received forecasts from your customers
by, the date of expiration or termination . 
 11.3. Survival. Termination or expiration of this License will not affect
Object Code sublicenses granted to purchasers of Designated Equipment pursuant to Section 2.2.2 (Object Code) prior to expiration or termination, each of which will remain in effect in accordance with its terms. In addition, the parties’
rights and obligations under the following provisions will survive any termination or expiration of this License: Sections 2.4 (Restrictions), 3 (Intellectual Property), 4 (Fees, Payments, Taxes), 6 (Third Party Rights), 7.3 (Warranty
Disclaimer and Limited Remedies), 7.4 (Intellectual Property Indemnity), 9 (Limitation of Liability), 11 (Effect of Termination/Expiration), 12 (Confidentiality) and 13 (General) and, with respect to Development Hardware, the
provisions of Exhibit C that survive termination of that Agreement, and the last sentence of Section 5.2 (Development Hardware). 
 12.
CONFIDENTIALITY 
 12.1. Definition. “Confidential Information” means: (i) any information
disclosed by us to you, either directly or indirectly, during the Term, by any means (whether in writing, orally or visually, or by permitting inspection of tangible objects (including without limitation documents, prototypes, samples, plant and
equipment)), provided such information is designated as “Confidential”, “Proprietary” or some similar designation at the time of disclosure; and (ii) the Licensed Technology, whether or not so designated. Confidential
Information does not, however, include any information that you demonstrate: (a) is legally and publicly available, other than through a breach of your obligations under this Section 12, (b) you received, without an obligation of
confidentiality, from a third party that was entitled so to disclose it, or (c) is independently developed by you without use of or reference to Confidential Information. Nothing in this License will prevent you from disclosing Confidential
Information to the extent you are required by law to disclose such Confidential Information, provided you gives us prompt written notice of that requirement prior to such disclosure and cooperate with our efforts to obtain an order protecting the
information from public disclosure. 
 12.2. Non-use and Non-disclosure. You agree not to disclose Confidential
Information other than to those of your employees and contractors who have a need to know to exercise the rights and licenses granted to you herein, and not to use Confidential Information other than in the exercise of such rights and licenses, or
to determine whether and on what terms to purchase Components from us. You agree that prior to any disclosure by you of Confidential Information to an employee or contractor, you will have entered into a written non-disclosure agreement with such
person, containing terms at least as strict as those contained in this Section 12. You may not reverse engineer, disassemble or decompile any prototypes, software or other tangible objects that embody Confidential Information and that are
provided hereunder. 
 12.3. Maintenance of Confidentiality. You agree to take reasonable measures to protect the secrecy
of and avoid the unauthorized disclosure or use of Confidential Information, including at least those measures that you take to protect your own most highly confidential information. You may not make any copies of Confidential Information except as
expressly permitted by Section 2.2 (Grant) or as approved by us in advance, in writing. You must reproduce all proprietary right notices on any such approved copies, in the same manner in which such notices were set forth in or on the original.

 12.4. Return of Confidential Information. Except as provided in Section 11.2 (Retention of Copies, Sell-Off), you
agree promptly to return to us or destroy, at our request, all copies of Confidential Information, in whatever form or media, and to certify to us in writing that you have done so. 
 12.5. Remedies. You agree that any violation or threatened violation of any provision of this Section 12 will cause us
irreparable injury, entitling us to injunctive relief in addition to all legal remedies. 
 12.6. Announcement. Neither
party will disclose, advertise or publish the terms or conditions of this License without the written consent of the other party, except (i) as may be required by law and (ii) to its professional advisors and to investors or potential
investors who are under an obligation of confidentiality at least as restrictive as that contained in this Section 12. 
  

  

					
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 13. GENERAL 
 13.1. Notices. All notices and consents required or permitted under this License must be in writing and sent, if to us, to the address listed in the signature block above to the attention of Legal
Department, and if to you, to the address listed on Exhibit A under Legal or, if none, the address listed in the signature block above; or to such other address as is specified by notice from time to time. Any notice of non-performance, termination
or non-renewal must be sent by nationally (or, if applicable, internationally) recognized overnight courier or by certified mail, return receipt requested. All other notices and consents may be sent as provided above or by fax or e-mail (if to us,
to 408-773-9909 or legal@atheros.com) with a confirmation of receipt. Notices will be deemed given and received on receipt (except that faxes and e-mails received on a non-business day (according to the recipient’s business calendar) will be
deemed received on the next business day). If a notice cannot be received because the recipient has moved and failed to notify the sender of its change of address, or because the recipient is out of business, then a notice will be deemed received
when sent. 
 13.2. Entire Agreement. This License, together with its Exhibit(s), constitutes the complete, exclusive and
final expression of the parties’ agreement and supersedes all prior and contemporaneous understandings, proposals, representations or communications, oral or written, relating to the subject matter hereof except for the non-disclosure agreement
entered into between the parties as of January 23, 2009. 
 13.3. Governing Law, Exclusive Jurisdiction and Venue.
This License will be governed by and construed in accordance with the laws of the State of California without regard to its conflict of laws provisions. The provisions of the UN Convention on Contracts for the International Sale of Goods will not
apply. Subject to the provisions of Section 13.4 (Arbitration), each party hereby: (i) agrees that any action, suit or proceeding (“Action”) that arises, in whole or in part, under or in connection with this License will
be brought in the United States District Court for the Northern District of California San Jose Branch or the Superior or Municipal Courts of the State of California, Santa Clara County; and (ii) irrevocably and unconditionally consents and
submits to the jurisdiction of all such courts for purposes of any such Action, and irrevocably and unconditionally waives any objection (such as inconvenient forum) to the laying of venue of any Action in any such court. 
 13.4. Arbitration. All disputes, claims, and controversies between the parties arising out of or related to this License or the
breach hereof will be settled by arbitration, The arbitration will be conducted by one arbitrator appointed pursuant to the applicable procedures of JAMS and conducted under its then-current Comprehensive Arbitration Rules and Procedures. The
arbitrator will issue an award in support of his or her decision within 120 days of the selection of the arbitrator, stating the legal and factual basis for the decision and the reasoning leading to such decision. The decision and award of the
arbitrator will be final and binding and judgment on the award so rendered may be entered in any court having jurisdiction thereof. The arbitration will be held in Santa Clara County, California, and the award will be deemed to be made in
California. Both parties will share the costs of the arbitration equally, except that each party will bear its own costs and expenses, including attorney’s fees, witness fees, travel expenses, and preparation costs. 
 Notwithstanding any other provision of this Agreement, a party may seek injunctive relief (or any other provisional remedy) from any court
having jurisdiction over the parties and the subject matter of the dispute. 
 Within 30 days after the filing of the response
to the arbitration demand, each party will provide the other with copies of all documents that are likely to bear significantly on their respective claims and defenses. 
 The arbitrator will allow the parties to engage in other discovery, including depositions, unless the arbitrator determines that the likely benefit of the proposed discovery is outweighed by the burden
and expense of the proposed discovery, taking into account the amount in controversy, the importance of the issues at stake in the arbitration, the importance of the proposed discovery in resolving those issues, and the parties’ desire to seek
justice while minimizing the time and expense of arbitrating their dispute. The arbitrator’s decisions regarding discovery will be final and conclusive. 
 This agreement to arbitrate and any award rendered by the arbitrator will be enforceable under California law and Title 9 of the United States Code, to the extent applicable. All questions concerning the
arbitrability of a dispute (including whether the parties have agreed to arbitrate the dispute) will also be decided by arbitration, and this agreement to arbitrate applies notwithstanding any claim that all or any part of this agreement is void,
voidable or unenforceable for any reason. Neither party will have the right to appeal the arbitrator’s decision. 
 Each
party hereby submits to the jurisdiction of all duly constituted courts of the State of California and the United States District Court for the Northern District of California for the purpose of enforcement of this agreement to arbitrate and any
awards rendered by such arbitration; provided that this sentence does not limit the right of either party to enforce any award in any proper forum. 
 13.5. No Assignment. Your rights and obligations under this License are personal, and may not be assigned or transferred, voluntarily, by operation of law or otherwise, without our prior written
consent, which consent will not be unreasonably withheld if the proposed transfer occurs in connection with the sale of substantially all of your assets or outstanding voting securities to a third party that is not an Atheros Competitor. Any attempt
assignment or transfer without our consent will be void. 
  

  

					
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 13.6. Government Authorization. You are responsible for all governmental
authorizations and approvals relating to this License. You represent and warrant that as of the Effective Date and throughout the Term, you are and will remain in compliance with all applicable governmental laws, rules and regulations necessary for
you to enter into this License and execute your obligations under this License including, without limitation, any governmental authorization necessary for you to contract with a foreign party. You represent and warrant to us that you are fully
knowledgeable regarding and will be responsible for any applicable governmental regulatory compliance matter affecting the design, manufacture or distribution of Your Software or of Designated Equipment. Distribution of Your Software or Designated
Equipment with, or for use with, a product that is not in compliance with a country’s spectrum use regulations shall be a material breach of this Agreement, and you hereby indemnify Atheros for damages resulting from any such use or
distribution. 
 13.7. Export Law Assurances. You may not download, use, transfer, export or re-export any Licensed
Technology or any product or derivative work thereof, or any Confidential Information, except as authorized by United States law and the laws of the jurisdiction in which the Licensed Technology was obtained. In particular, but without limitation,
Licensed Technology and derivative works thereof may not be, downloaded, used, exported or re-exported (a) in or to (or by or to a national or resident of) any country then under U.S. economic embargo, or (b) to any person or entity on the
U.S. Treasury Department’s list of Specially Designated Nationals or on the U.S. Department of Commerce’s Denied Persons List or Entity List. By downloading or using Licensed Technology, you represent and warrant that you are not located
in, under control of, or a national or resident of any such country or on any such list. 
 13.8. Records and Audit.
During the Term and for six months thereafter, we will have the right at reasonable times no more than once per year, directly or through its representative, upon a minimum of 14 days written notice setting forth the period under review, to review
your books and records regarding your adherence to the Intellectual Property Rights provisions of this License. 
 13.9.
Amendment, Waiver, Remedies. No amendment or modification of this License is binding unless signed by you and an officer of Atheros. The observance of any provision of this License may be waived (either generally or in a particular instance)
only by the written consent of the party or parties adversely affected by such waiver. No failure of a party to enforce its rights under this License will be deemed a waiver. A waiver will be narrowly construed to apply solely to the specific
instance to which such waiver is directed. Except as expressly stated herein to the contrary, the exercise of any right or remedy provided in this License will be without prejudice to the right to exercise any other right or remedy provided by law
or equity. 
 13.10. Severability. If any provision of this License or portion thereof is found to be invalid, illegal or
unenforceable, such provision will be limited or eliminated to the minimum extent necessary and this License will otherwise remain in full force and effect. In addition, the parties agree to substitute for the limited or eliminated provision a new
provision that effects, as nearly as possible, the original intent of the parties. 
 13.11. Counterparts, Fax
Signatures. This License may be executed in two counterparts, both of which will be deemed an original, but all of which together will constitute one and the same instrument. Facsimile signatures will be considered original signatures.

 13.12. Mutual Negotiations. Each provision of this License will be fairly interpreted and construed in accordance with
its provisions and without any strict interpretation or construction in favor of or against either party. 
 13.13. Choice of
Language. The original of this License is in English. You waive any right to have this License written in any other language, regardless of whether your country of incorporation is English speaking. 
 13.14. No Third Party Beneficiaries. No provision of this Agreement is intended or will be construed to confer upon or give to any
person or entity other than you and us any rights, remedies or other benefits under or by reason of this License. 
 END BODY OF
AGREEMENT. 
 EXHIBITS BEGIN ON NEXT PAGE 
  

  

					
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 Exhibit A 
 1. YOUR CONTACTS. 
  

			
	LEGAL
	Name	  	Travis K. Tom
	  
 Address
  
	  	  
 894 Ross Drive, Sunnyvale, CA 94089
  

	Telephone	  	408-215-5396
	Fax	  	 
	Email	  	ttom@merunetworks.com
	SHIPPING
	Name	  	 
	  
 Address
  
	  	 
	Telephone	  	 
	Fax	  	 
	Email	  	 
	BILLING

	Name	  	 
	  
 Address
  
	  	 
	Telephone	  	 
	Fax	  	 
	Email	  	 
	TECHNICAL/DEVELOPMENT
	Name	  	 
	  
 Address
  
	  	 
	Telephone	  	 
	Fax	  	 
	Email	  	 
	QUALITY/PROCUREMENT
	Name	  	 
	  
 Address
  
	  	 
	Telephone	  	 
	Fax	  	 
	Email	  	 

  

  

					
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	2.	INITIAL TERM OF LICENSE. Beginning on the Effective Date and continuing for [***]. 

  

	3.	LICENSE TYPE. General Purpose 

  

	4.	SUPPORT SERVICE SITE. Support services are offered only to a single site. You may have several development locations, of which one must be designated as the site
to which Atheros will deliver support services. 

  

			
	Support Service Site Address	  	Same as Technical/Development Address unless this block
modified. If no Technical/Development Address provided, then same as signature block address on page 1.

  

	5.	FEES. 

  

				
	 Item
	 	Fees	 
	 Software
License Fee
	 	[***	] 
	 Annual
Support Fee
	 	[***	] 
	 Total
Fees
	 	[***	] 

  

	6.	LICENSED TECHNOLOGY. Atheros will deliver to You: 

  

	 	6.1.	Reference Designs, Technical Documentation and Software Modules 

 These items are provided without additional charge. In addition, you may elect to purchase Development Hardware separately. 
  

					
	  	  	Documentation	  	Modules
	SW	  	 Programmer’s Guide
  
 MAC/Baseband Processor Data Sheet(s)
  
 User’s Guide
  
 Test plan
  
 User’s Guide as required for test
  
 EEPROM Device Configuration Guide
	  	 AP Driver: Source & Object
Code
  
 NDIS Driver: Source & Object Code
  
 ART (Atheros Radio Test): Source & Object Code
  
 LinkMon and/or ACU Source
  
 AP Board Support Package (BSP)
  
  
 Embedded Modules
(if applicable):
  
 ART (Atheros Radio Test): Host
processor Source & Embedded Firmware Object Code
  
 STA : Host processor Sample Application Source & Embedded Firmware Object Code
  
 Board Support Package (BSP – integrated on device ROM)
  
 SDIO stack and driver binaries

	HW	  	 Test plan
 ART Diagnostic SW Binary Code
 ART Documentation
	  	 

  

  

					
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	 	 	 RF Front-end WLAN Data Sheet(s)

 MAC/Baseband Processor Data Sheet(s)
 Reference Guide(s)
 Schematic(s)
 BOM/AVL(s)
 Layout Diagrams
 Regulatory Compliance Guide
 Sample Manufacturing Test Flow
 EEPROM Device Configuration Guide
	 	 

 Development Hardware Prices (subject to change without notice): 
 These prices apply only to Development Hardware. Atheros reserves the right to limit the quantity of Development Hardware that may be
purchased. Refer to Part Numbers (available separately from Atheros sales staff) to order. 
  

								
	Part	  	Description	  	ID	  	Price
	 RF or MAC/BB Chip
	  	 One MAC/BB chip or one RF chip from multi-chip solution
	  	Chip	  	$	37.50
	 Single Chip Solution
	  	 Single-chip MAC/BB/RF solution
	  	Chip	  	$	75.00
	 AP Reference Board
	  	 Access Point Integrated Reference or Development Board
	  	API	  	$	500.00
	 Client Reference Board
	  	 Cardbus, MiniPCI or other Cleint Reference or Development Board
	  	BCB	  	$	300.00
	 Embedded Reference Board
	  	 Embedded WLAN Integrated Reference or Development Board
	  	EBI	  	$	2,000.00

  

  

					
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 EXHIBIT B 
 MINIMUM TERMS OF END USER LICENSE AGREEMENT 
 Your End User License
Agreement will include terms at least as restrictive of Atheros’ liabilities and at least as protective of Atheros’ rights as the following: 
  

	1.	License Grant and Restrictions. [Licensee] grants End User a non-exclusive license to use the software program and related documentation (“Software”)
only in conjunction with [name of a product containing an Atheros Wireless LAN Chipset (“Product”)]. This Software is protected by copyright laws and international copyright treaties, as well as other intellectual property laws and
treaties. The Software is licensed, not sold. Title does not pass to End User. There is no implied license, right or interest granted in any copyright, patent, trade secret, trademark, invention or other intellectual property right.

  

	2.	No Reverse Engineering. End User will not decompile, disassemble or otherwise reverse engineer the Software. If End User is a European Union resident,
information necessary to achieve interoperability with other programs is available upon request. 

  

	3.	Termination. Upon any violation of any of the provisions of this Agreement, End User’s rights to use the Software will automatically terminate and End User
will be obligated to destroy all copies of the Software. End User may terminate this Agreement at any time by destroying the Software. 

 [Licensee]’S SUPPLIERS MAKE NO WARRANTIES, EXPRESS OR IMPLIED, AND WILL NOT BE LIABLE TO YOU UNDER ANY LEGAL THEORY FOR ANY INDIRECT OR CONSEQUENTIAL DAMAGESARISING IN CONNECTION WITH THE PRODUCT OR
ANY SOFTWARE. 
  

	4.	Export. The Software may only be operated, exported or re-exported in compliance with all applicable laws and export regulations of the United States and the
country in which End User obtained them. The Software is specifically subject to the U.S. Export Administration Regulations. End User may not export, directly or indirectly, the Software or technical data licensed hereunder or the direct product
thereof to any country, individual or entity for which the United States Government or any agency thereof, at the time of export, requires an export license or other government approval, without first obtaining such license or approval.

  

  

					
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 EXHIBIT C 
 Standard Terms and Conditions of Sale for Components 
  

	1.	Scope. These Terms and Conditions of Sale together with those appearing on the face of this form (if any) (“Agreement”) apply to sales of semiconductor
products (“Components”) by Atheros Communications, Inc. or Atheros Technology Ltd., as applicable (“Atheros”) to buyer (“Buyer”). Atheros and Buyer may be referred to herein as “Party” when referred to
individually and “Parties” when referred to collectively. “Components” refers only to hardware, chips and chipsets. Any software, reference designs, developer’s kits, and documentation have been separately licensed under the
Atheros Non-Exclusive Technology License Agreement (“Technology License Agreement”) mutually executed either (a) by Atheros Communications, Inc. and Buyer where Buyer is a licensee of Atheros Communications, Inc.
(“Licensee”) for Licensee’s use in integrating the Components as part of products developed by or for Licensee (“Licensee Products”), or (b) between Atheros Communications, Inc. and a Licensee of Atheros Communications,
Inc. who authorizes Buyer to purchase Components from Atheros for use in integrating the Components as part of Buyer’s manufacture of Licensee Products of such Licensee. In the case of (b), use of the term “Buyer” in this Agreement
shall be deemed to mean Licensee, unless the context indicates that such change would be improper. Buyer certifies to Atheros that it is authorized to purchase Components from Atheros pursuant to such Technology License Agreement and will indemnify
and hold harmless Atheros from any and all liabilities, costs, damages, expenses relating to breach of the foregoing certification. 

  

	2.	Orders 

  

	2.1	Rescheduling and Cancellation. Atheros will promptly notify Buyer if any order or part of an order cannot be filled or if there will be any delays in delivery.
Atheros will use all reasonable efforts to ship and deliver on indicated dates but will not be liable for failure to do so. Alternatively, should Atheros find that the delivery date agreed on cannot be met, Atheros shall notify Buyer in writing,
stating the cause of the delay and an estimated delivery date. For non-custom products, Buyer may reschedule orders accepted by Atheros and scheduled for delivery, subject to the following limitations: 

  

			
	Days until Atheros scheduled shipment of an order	  	Limits on order reschedules and
cancellations
	61 – 90	  	 Rescheduling for a period of up to 90 days
later than the original scheduled ship date. One reschedule per order only. Rescheduled orders may not be subsequently cancelled; OR
 Cancellation of up to 20% of original order.

	31 – 60	  	 Rescheduling for a period of up to 60 days
later than the original scheduled ship date. One reschedule per order only. Rescheduled orders may not be subsequently cancelled ; OR
  
 Cancellation of up to 15% of original order.

	30	  	No cancellations or reschedules.

  

	2.2	Purchase Order. This Agreement takes precedence over Buyer’s additional or different terms and conditions which may be included on Buyer’s purchase
order or Atheros’s invoice or otherwise, to which notice of objection is hereby given, and any inconsistent or additional terms in such form will be of no effect. Any changes to this Agreement must be specifically agreed to in writing by
Atheros and Buyer. 

  

	2.3	Acceptance. Orders shall be subject to written acceptance by Atheros and delivery schedules established in accordance with Component availability and
Buyer’s credit status. If Atheros chooses to obsolete any Components, it shall give at least ninety (90) days advance notice to Buyer. Buyer may place orders during the notification period for shipment no later than ninety (90) days
after the obsolescence date. 

  

	3.	Delivery; Title 

  

	3.1	Delivery. Components will be delivered Ex Works (Incoterms 2000), Atheros’ designated factory dock or distribution center dock. Buyer will pay all costs
relating to transportation, delivery, duties and insurance. Buyer will provide Atheros with shipping instructions on its order and if it fails to do so, Atheros will determine the carrier and means of transportation and will ship the Components and
invoice Buyer for the freight charges . Buyer shall notify Atheros in writing of any shortage in any shipment within thirty (30) days after Buyer’s receipt of such shipment. All shipments shall be directed to a Buyer operated receiving
location. 

  

	3.2	Risk of Loss. Risk of loss for the Components shall pass from Atheros to Buyer at the Atheros shipping point, and Buyer will bear the risk of loss after the
shipping point and will be solely responsible for filing claims relating to any lost or damaged goods. 

  

  

					
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	3.3	Title. Title to the Components shall pass to Buyer as follows: 

 For Components Delivered Outside of United States: Atheros reserves title in the Components until paid for in full, for the purpose of protecting Atheros’ right to receive payment under the
laws of various countries. This reservation of title does not affect Buyer’s ability to transfer title to the Components in the ordinary course of its business. 
 For Components Delivered within the United State). Title to the Components shall pass from Atheros to Buyer at the Atheros shipping point. 3.4 Exporter and Importer of Record. For
international shipments, Buyer or its properly authorized agent or freight forwarder shall be exporter of record from the United States. Buyer shall be the importer of record and is responsible for fulfilling quota terms, obtaining import licenses,
paying import license or permit fees, duties and customs fees, and any other governmental or import taxes or fees, and preparing and submitting all required documentation in connection with importing the Components. With respect to any need by Buyer
to export any Product, Atheros will take all reasonable steps to cooperate with Buyer in any reasonable manner in order to effect compliance with all applicable export regulations. 
  

	4.	Returns. No Components may be returned except under warranty or due to shipment error by Atheros. All returns must be made in accordance with Atheros’
then-current Return Material Authorization (RMA) procedures or such other procedures as are expressly agreed to in writing by an authorized representative of Atheros (“Atheros RMA Procedures”). Atheros shall have no responsibility or
liability for returns not made in accordance with such Atheros RMA Procedures. 

  

	5.	Prices; Payment; Taxes; Rebates 

  

	5.1	Prices. Pricing is stated in a written price quote from the designated Atheros Account Manager (or a designated substitute) to Buyer. Atheros may change its
prices at any time. All prices are in U.S. dollars. 

  

	5.2	Payment. Provided that Buyer receives written approval of the extension of credit terms from Atheros’ credit department, payment terms are net thirty
(30) days from the date of invoice unless otherwise specified in writing from Atheros. Buyer must give Atheros written notice of any discrepancies among the purchase order, the invoice, and the Components received, within thirty (30) days
after receipt of the Components or the invoice, whichever occurs later. Payment is not conditioned upon the Components meeting any acceptance testing procedures or criteria. If there is any dispute as to a part of a shipment, Buyer will pay for the
undisputed part of that shipment. All payments to Atheros shall be in U.S. dollars, free of any restrictions or withholdings. Atheros reserves the right to require payment in advance by wire transfer, confirmed irrevocable letter of credit, or such
other means as are acceptable to Atheros. 

  

	5.3	Interest. Atheros may charge Buyer interest on any delinquent balance, computed on a daily basis for each day that the payment is delinquent, at the lesser of
(a) eighteen percent (18%) per annum or (b) the maximum rate permitted by law. 

  

	5.4	Taxes. Buyer is responsible for payment of all taxes of every kind imposed in connection with the sale to Buyer of Components or which Atheros may incur in
respect of this Agreement (except for taxes imposed on Atheros’ net income) and any penalties, interest and collection or withholding costs associated with any of the foregoing items. All such amounts are in addition to other amounts payable
hereunder. If Buyer is required to withhold any taxes or fees from amounts due to Atheros under this Agreement, then Buyer agrees to increase the payment to Atheros so that, after payment of all taxes and fees, Buyer will have paid to Atheros the
total amount due to Atheros as if no taxes or fees were withheld. Buyer may provide Atheros with a tax exemption certificate acceptable to the taxing authorities in lieu of paying certain taxes; however, Buyer shall reimburse Atheros for any
fines, penalties, taxes and other charges, including expenses incurred by Atheros, due to Buyer’s submission of invalid information. 

  

	5.5	 Rebates. If a rebate applies, the payment of any such rebate will be subject to the following terms: (i) by the first day of each calendar month,
Buyer shall submit to Atheros a consumption report stating the number of Components purchased and received by Buyer from its board supplier (or, if applicable, directly from Atheros) during the immediately preceding month, together with supporting
documentation acceptable to Atheros in its discretion; (ii) as soon as practicable after the beginning of each calendar quarter, Buyer and Atheros will cooperate in good faith to agree upon the rebate amount for the previous quarter, based on
the above monthly consumption reports and supporting documentation delivered by Buyer for such quarter, and Buyer shall issue an invoice to Atheros for such agreed-upon rebate amount; (iii) if Buyer is a direct customer of Atheros, Buyer must
deliver to Atheros the above monthly information and a mutually agreed-upon invoice for the rebate amount as provided above, no later than 180 days after Atheros has delivered to Buyer the Components to which such rebate amount applies; (iv) if
Buyer has purchased Components from a board supplier, Buyer must

  

  

					
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deliver to Atheros the above monthly information and a mutually agreed-upon invoice for the rebate amount as provided above, no later than 180 days after the board supplier has delivered to Buyer
the Components to which such rebate amount applies; and (v) rebates are only payable with respect to Components for which Atheros has received payment from Buyer or Buyer’s board supplier, as applicable. 

  

	6.	No License; Markings. Buyer acknowledges and agrees that the sale to Buyer of the Components does not convey any license expressly or by implication, to, and
Buyer shall not, manufacture, reverse engineer, duplicate, or otherwise reproduce any of the Components or any part thereof. Buyer will not remove, alter or obfuscate any patent markings on the Components or otherwise cause any patent on the
Components to become ineffective under applicable patent laws. 

  

	7.	No Support or Other Services. Buyer acknowledges that no installation, training, education, or any other support or other services are contracted for or
purchased hereunder unless specifically agreed to in writing by Atheros. If Atheros offers or gives technical advice or performs any training in connection with the use of any Components, such advice or training will be provided only as an
accommodation to Buyer, and Atheros has no responsibilities whatsoever for the content or use of such advice or for any damages that may result from the use, support, maintenance, servicing or alteration of the Components by an Atheros
representative. 

  

	8.	Limited Warranty 

  

	8.1	Component Warranty. Atheros warrants that the Components will substantially conform to the features specified in its then-current datasheet, as it may be amended
by Atheros from time to time, for a period of ninety (90) days from the date of shipment. Atheros warrants that all Components sold by Atheros to Buyer under the terms of this Agreement will be free from defects in workmanship and materials
under normal use and service for one (1) year from the date of shipment by Atheros. If a Component does not operate as warranted during the applicable warranty period, and provided that Buyer notifies Atheros promptly within the warranty period
and complies with the Atheros RMA Procedures, Atheros shall, in its sole discretion (a) deliver to Buyer an equivalent Component to replace such defective Component at its expense or (b) if replacement is not feasible, refund or issue a
credit to Buyer (at Atheros’ sole discretion) in the amount of the purchase price paid for the defective Component. Replacement Components are warranted for ninety (90) days or the balance of the original warranty period, whichever is
longer. 

  

	8.2	Warranties Exclusive. 

  

	8.2.1	Sole Remedy. BUYER’S SOLE REMEDY FOR BREACH OF THE EXPRESS WARRANTY ABOVE SHALL BE REPLACEMENT OR REFUND OR CREDIT (AT ATHEROS’ SOLE DISCRETION) OF THE
PURCHASE PRICE AS SPECIFIED ABOVE, AT ATHEROS’ OPTION. TO THE FULLEST EXTENT ALLOWED BY LAW, THE WARRANTY AND REMEDIES SET FORTH IN THIS AGREEMENT ARE EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES OR CONDITIONS, EXPRESS OR IMPLIED, EITHER IN
FACT OR BY OPERATION OF LAW, STATUTORY OR OTHERWISE, INCLUDING BUT NOT LIMITED TO WARRANTIES, TERMS OR CONDITIONS OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, SATISFACTORY QUALITY, CORRESPONDENCE WITH DESCRIPTION, NON-INFRINGEMENT, AND
ACCURACY OF INFORMATION GENERATED, ALL OF WHICH ARE EXPRESSLY DISCLAIMED. ATHEROS’ WARRANTIES HEREIN RUN ONLY TO BUYER AND ARE NOT EXTENDED TO ANY THIRD PARTIES, WHICH FOR THE AVOIDANCE OF DOUBT, INCLUDES ANY AGENTS OR RESELLERS OF LICENSEE
PRODUCTS OR END USERS. ATHEROS NEITHER ASSUMES NOR AUTHORIZES ANY OTHER PERSON TO ASSUME FOR IT ANY OTHER LIABILITY IN CONNECTION WITH THE SALE, INSTALLATION, MAINTENANCE OR USE OF THE COMPONENTS. 

  

	8.2.2	No Atheros Defect. ATHEROS SHALL NOT BE LIABLE UNDER THIS WARRANTY IF ITS TESTING AND EXAMINATION DISCLOSE THAT THE ALLEGED DEFECT IN THE COMPONENT DOES NOT
EXIST OR WAS CAUSED BY BUYER’S, END USER’S OR ANY THIRD PERSON’S MISUSE, NEGLIGENCE, IMPROPER INSTALLATION OR IMPROPER TESTING, ATTEMPTS TO REPAIR OR USE BEYOND THE RANGE OF THE INTENDED USE, OR BY ACCIDENT, FIRE, LIGHTNING OR OTHER
HAZARD OR ANY OTHER CAUSE BEYOND ATHEROS’ CONTROL. 

  

	8.3	Buyer Responsibilities. Buyer acknowledges and agrees that Buyer is solely responsible for the selection of the Components, their ability to achieve the results
Buyer intends, their use with any hardware, software, peripherals or any system, and the performance that Buyer, Buyer’s customers and end users obtain from using them. Buyer alone shall assume any and all warranty obligations with customers
and end users for each Licensee Product that incorporates the Components, and Buyer has no authority to obligate Atheros in any way under each such warranty. 

  

  

					
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 ATHEROS TECHNOLOGY LICENSE AGREEMENT 
  
  

	9.	Intellectual Property Indemnity 

  

	9.1	Defense by Atheros. ATHEROS SHALL, AT IS OWN EXPENSE, DEFEND OR SETTLE ANY SUIT OR PROCEEDING (“CLAIM”) THAT IS INSTITUTED AGAINST BUYER TO THE EXTENT
THAT SUCH CLAIM ALLEGES THAT ANY COMPONENT SOLD BY ATHEROS HEREUNDER INFRINGES ANY DULY ISSUED PATENT OR COPYRIGHT UNDER THE LAW OF THE UNITED STATES, CHINA, JAPAN, KOREA, AUSTRALIA, NEW ZEALAND, CANADA, MEXICO, RUSSIA, THE EUROPEAN UNION OR ANY OF
THE COUNTRIES IN EASTERN EUROPE, AND LATIN AMERICA. AND SHALL PAY ALL DAMAGES AWARDED THEREIN AGAINST BUYER OR AGREED UPON IN SETTLEMENT BY ATHEROS; PROVIDED THAT BUYER (a) GIVES ATHEROS IMMEDIATE NOTICE IN WRITING OF ANY SUCH CLAIM OR THREAT
THEREOF, (b) PERMITS ATHEROS SOLE CONTROL, THROUGH COUNSEL OF ATHEROS’ CHOICE, TO DEFEND AND/OR SETTLE SUCH CLAIM AND (c) GIVES ATHEROS ALL THE NEEDED INFORMATION, ASSISTANCE AND AUTHORITY, AT ATHEROS’ EXPENSE, TO ENABLE ATHEROS
TO DEFEND OR SETTLE SUCH CLAIM. 

  

	9.2	When Not Applicable. The above provision shall not apply to and Atheros shall have no liability or obligation for any infringement arising from: (a) any
modification, servicing or addition made to the Component by anyone other than Atheros, (b) the use of the Component as a part of or in combination with any devices, parts or software not provided by Atheros to the extent such combination
itself or any such device, part or software not provided by Atheros gives rise to the infringement, (c) the use of such Component to practice any method or process which does not occur wholly within the Component to the extent such method or
process occurring outside the Component gives rise to the infringement, (d) compliance with Buyer’s design requirements or specifications, (e) Buyer’s use or sale of such Component after notice from Atheros that Buyer should
cease use of the Component due to such Claim, or (f) any implementation of a Component other than in a Licensee Product. 

  

	9.3	Atheros Options. If the use or sale of any Component purchased from Atheros is enjoined, or in the event Atheros in good faith believes that a permanent
injunction is more likely than not to be issued , Atheros may, at its sole option and expense: (a) procure for Buyer the right to use or sell such Component; (b) substitute a functionally equivalent, non-infringing unit of the Component;
(c) modify such Component so that it no longer infringes but is substantially equivalent in functionality; or (d) if none of the foregoing is commercially feasible, take back such Component and refund or issues a credit (at Atheros’
sole discretion) the purchase price paid by Buyer for such Component at 100% for the first 6 months after delivery and thereafter depreciated over the subsequent three (3) year period using the straight line method. Atheros shall in no event be
obligated to accept new orders for Components that are or may be subject to a claim of infringement covered under this Article. 

  

	9.4	Sole Remedy. THIS ARTICLE STATES ATHEROS’ TOTAL RESPONSIBILITY AND LIABILITY, AND BUYER’S SOLE REMEDY, FOR ANY ACTUAL OR ALLEGED INFRINGEMENT OR
MISAPPROPRIATION OF ANY INTELLECTUAL PROPERTY RIGHT FOR ANY COMPONENTS DELIVERED HEREUNDER OR ANY PART THEREOF AND IS IN LIEU OF AND REPLACES ANY AND ALL OTHER EXPRESS, IMPLIED OR STATUTORY WARRANTIES OR CONDITIONS REGARDING INFRINGEMENT AND
MISAPPROPRIATION. 

  

	10.	Limitation of Liability 

  

	10.1	No Consequential Damages. EXCEPT FOR THE PARTIES’ RESPECTIVE INDEMNITY OBLIGATIONS UNDER THIS AGREEMENT AND EXCEPT FOR DAMAGES RESULTING FROM BUYER’S
BREACH OF ARTICLE 6, IN NO EVENT, REGARDLESS OF THEORY (WHETHER BASED ON BREACH OF CONTRACT, TORT INCLUDING NEGLIGENCE, PRODUCT LIABILITY, OR OTHERWISE), SHALL EITHER PARTY BE LIABLE FOR INCIDENTAL, CONSEQUENTIAL, INDIRECT, SPECIAL OR
PUNITIVE DAMAGES OF ANY KIND, OR FOR LOSS OF REVENUE, LOSS OF BUSINESS, LOSS OF DATA OR ANY OTHER DAMAGES THAT ARE NOT DIRECT, ARISING OUT OF OR IN CONNECTION WITH THE SALE, INSTALLATION, USE, PERFORMANCE, FAILURE OR INTERRUPTION OF THE PRODUCTS
PROVIDED HEREUNDER. THESE DISCLAIMERS OF LIABILITY WILL NOT BE AFFECTED IF ANY REMEDY PROVIDED HEREIN FAILS OF ITS ESSENTIAL PURPOSE. 

  

  

					
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 ATHEROS TECHNOLOGY LICENSE AGREEMENT 
  
  

	10.2	Maximum Liability. EXCEPT FOR DAMAGES RESULTING FROM BUYER’S BREACH OF ARTICLE 6, EACH PARTY’S MAXIMUM LIABILITY FOR DAMAGES HEREUNDER SHALL NOT
EXCEED THE LESSER OF THE TOTAL PURCHASE PRICE PAYABLE BY BUYER TO ATHEROS OVER THE TWELVE (12) MONTHS IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO THE LIABILITY, FOR THE TYPE OF COMPONENT(S) WHICH PERTAIN TO THE DAMAGES CLAIMED, OR ONE
MILLION DOLLARS ($1,000,000). THESE DISCLAIMERS OF LIABILITY WILL NOT BE AFFECTED IF ANY REMEDY PROVIDED HEREIN FAILS OF ITS ESSENTIAL PURPOSE. 

  

	10.3	Special Applications. The Components are not designed and are not warranted to be suitable for use in applications involving the risk of personal injury or death
or the destruction of property, medical life support devices, or similar applications (“Special Applications”). Use of any Atheros product in a Special Application without the express written approval of Atheros is prohibited and ATHEROS
SHALL NOT BE LIABLE FOR ANY DAMAGES ASSOCIATED WITH SUCH USE. Buyer assumes any and all risks associated with the use of the Components in Special Applications and shall indemnify, defend, and hold Atheros harmless from any third-party claims
arising out of or related to the use of the Components in any such Special Applications. 

  

	11.	Export Compliance. Buyer agrees not to export, either directly or indirectly, the Components or technical data without first obtaining any required license or
other approval from the U.S. Department of Commerce or any other agency or department of the United States Government. If Buyer exports any Components or technical data from the United States or re-exports it from a foreign destination, Buyer shall
ensure that the export/re-export or import of the Components and technical data is in compliance with all laws, regulations, orders or other restrictions of the United States and the appropriate foreign government. With respect to any need by Buyer
to export any Product, Atheros will take all reasonable steps to cooperate with Buyer in any reasonable manner in order to effect compliance with all applicable export regulations. Atheros may require Buyer to execute a Letter of Assurance on
an annual basis or more frequently when required and may require details on the end user or end use application when necessary in order to comply with U.S. export license requirements. 

  

	12.	General 

  

	12.1	Force Majeure. Neither party shall be liable to the other party for any alleged loss or damages resulting from delays in performance (including loss or damages
resulting from delivery of the Components being delayed) resulting from acts of Buyer, acts of civil or military authority, governmental priorities, earthquake, fire, flood, epidemic, quarantine, energy crisis, unavailability of supplies, strike,
labor trouble, war, riot, accident, shortage, delay in transportation, or any other causes beyond Atheros’ reasonable control. 

  

	12.2	Entire Agreement. This Agreement is the complete, final and exclusive statement of the terms of the agreement between the Parties, and supersedes all prior
understandings, writings, proposals, representations or communications, oral or written, relating to the subject matter hereof, but does not supersede the Technology License Agreement or any other signed agreement. 

  

	12.3	Notices. Notices shall be given in writing by recognized overnight courier, certified mail return receipt requested, or by fax provided that a confirmation of
receipt is obtained. All notices shall be deemed to have been given and received on the earlier of actual delivery (except that faxes sent on a non-business day will be deemed received on the next business day) or three (3) days from the date
of postmark. 

  

	12.4	Assignment. Buyer shall not assign its order or any interest in or any rights hereunder without the prior written consent of Atheros, which consent shall not be
unreasonably withheld. 

  

	12.5	Waiver. A waiver of any default hereunder or of any of the terms and conditions of this Agreement shall not be deemed to be a continuing waiver or a waiver of
any other default or of any other term or condition, but shall apply solely to the instance to which such waiver is directed. 

  

	12.6	 Arbitration. All disputes, claims, and controversies between the Parties arising out of or related to this Agreement or the breach hereof
(except for breach of any obligation of confidentiality; infringement, misappropriation, or misuse of any intellectual property right, or any other claim where interim relief from the court is sought to prevent serious and irreparable injury to one
of the Parties or to others) shall be settled by arbitration. The arbitration shall be conducted by one arbitrator appointed pursuant to the applicable procedures of JAMS and conducted under its then-current Comprehensive Arbitration Rules and
Procedures. The arbitrator shall issue an award in support of his or her decision within 120 days of the selection of the arbitrator, stating the legal and factual basis for the decision and the reasoning leading to such decision. The arbitrator
shall be prohibited from awarding damages or remedies in excess of those allowed by the provisions of this Agreement. The decision and award of the arbitrator shall be final and binding and judgment on the award so rendered may be entered in any
court having jurisdiction thereof. The arbitration shall be held in Santa Clara County, California, and the award shall be deemed to be made in California. Both Parties will share the costs of the

  

  

					
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 ATHEROS TECHNOLOGY LICENSE AGREEMENT 
  
  

	 	 
arbitration equally, except that each Party shall bear its own costs and expenses, including attorney’s fees, witness fees, travel expenses, and preparation costs.

  

	12.7	Governing Law and Venue. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH, AND ALL DISPUTES HEREUNDER SHALL BE GOVERNED BY, THE LAWS OF THE STATE OF
CALIFORNIA, IRRESPECTIVE OF ANY PRINCIPLES OR RULES OF CONFLICT OF LAWS. Subject to the Arbitration provision above, the Superior Court of Santa Clara County and/or the United States District Court for the Northern District of California shall have
exclusive jurisdiction and venue over all controversies in connection herewith. The United Nations Convention on Contracts for the International Sale of Goods is hereby excluded in its entirety from application to this Agreement.

  

	12.8	Attorney’s Fees. With the exception of the Arbitration provision above, in any action to enforce this Agreement, the prevailing Party shall be
entitled to recover all court costs and reasonable legal fees incurred. 

  

	12.9	Choice of Language. The original of this Agreement is in English and Buyer waives any right to have it written in any other language. 

 

	12.10	Survival. The following provisions shall survive the termination of this Agreement or the relationship between Atheros and Buyer: Articles: 3.3 Title, 3.4
Exporter and Importer of Record; 4. Returns; 5. Prices; Payment; Taxes, 6. No License; Markings, 8. Limited Warranty, 9. Intellectual Property Indemnity, 10. Limitation of Liability, 11. Export Compliance and 12. General.

  

  

					
		 	CONFIDENTIAL	 	
	Version 3.1 - Approved Jan. 1, 2006	 		 	Page 19 of 19Lease Agreement - Castroville Industrial Partners, LLC

 Exhibit 10.4 
 LEASE AGREEMENT 
 THIS LEASE, is made as of the
December 30, 2009, by and between Castroville Industrial Partners, LLC (“Landlord”) and Diedrich Coffee, Inc. (“Tenant”). 
 1. Description of Premises. In consideration of the rents, covenants and agreements set forth herein, Landlord hereby leases to Tenant the premises (the “Leased Premises”) commonly
known as Suites A and B consisting of approximately 62,184 sq. ft. located in an approximately 72,584 sq. ft. building (the “ Building”) located at: 
 10383 Ocean Mist Parkway 
 Castroville, CA 95012 
 The Leased Premises shall include access to and use of the loading areas, parking areas and
driveways, and is more specifically described on the diagram attached hereto as Exhibit A. Landlord agrees, at its sole cost and expense, to remodel the Leased Premises to meet Tenant’s specifications as outlined in the Tenant/Landlord
Work Letter attached hereto as Exhibit B (the “Tenant Improvements”). 
 2. Term. The term of
this Lease (the “Term”) shall be for a period of six (6) years commencing on the date (the “Commencement Date”) on which the Leased Premises are Substantially Complete (as defined hereinafter); provided, however, if
the Leased Premises have not been Substantially Completed on or before June 1, 2010, this Lease shall terminate and Landlord shall immediately return the Security Deposit (as defined hereinafter) to Tenant. The Leased Premises shall be deemed
“Substantially Complete” on the earliest of the date on which: (a) the Tenant Improvements have been completed or (b) Tenant first occupies all or any portion of the Leased Premises. 
 3. Rent. Tenant agrees to pay rent as follows: 
 (a) Monthly Rental. Beginning on the Commencement Date, the “Monthly Rental” shall be:
Forty-Five Thousand Three Hundred Ninety Four Dollars and 32 Cents ($45,394.32) per month payable on the first (1st
) day of each month. In the event the Commencement Date is other than the first (1st) day of a calendar month, the Monthly Rental for the partial first calendar month and last calendar month of the
Term will be prorated on a daily basis based on the number of days in the month. 
 (b) Annual Consumer Price Index
Increase during Initial Term. On the first anniversary of the Commencement Date and annually on each anniversary thereafter during the Term, the Monthly Rental for each year shall be increased (but not decreased) by 3% or the increase
in the Consumer Price Index for all Urban Consumers for the San Francisco – Oakland – San Jose metropolitan area (1982-84=100), as published by the U.S. Department of Labor, Bureau of Labor Statistics, whichever is less. 

 If the index is discontinued or revised during the Term, such other government index or
computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the index had not been discontinued or revised. 
 (c) Annual Consumer Price Index Increase during Extended Term. In the event that the Tenant exercises the option to
extend the term of this Lease as provided in Paragraph 39, the Monthly Rental for each year during the Extended Term (as hereinafter defined) shall be increased (but not decreased) by 3% or the increase in the Consumer Price Index for all Urban
Consumers for the San Francisco – Oakland – San Jose metropolitan area (1982-84=100), as published by the U.S. Department of Labor, Bureau of Labor Statistics, whichever is less. 
 If the index is discontinued or revised during the Extended Term, such other government index or computation with which it is replaced shall
be used in order to obtain substantially the same result as would be obtained if the index had not been discontinued or revised. 
 (d) Late Charge. Tenant acknowledges that late payment by Tenant to Landlord of rent will cause Landlord to incur costs not contemplated by this Lease, the exact amount of such cost being extremely difficult and impracticable
to fix. Such costs include, without limitation, processing and accounting charges, and late charges that may be imposed on Landlord by the terms of any encumbrance and note secured by any encumbrance covering the Leased Premises. Therefore, if any
installment of rent due from Tenant is not received by Landlord within 10 days after its due date, Tenant shall pay to Landlord an additional sum of five percent (5%) of the overdue rent as a late charge. By initialing in the place provided
below, the parties agree that this late charge represents a fair and reasonable estimate of the costs that Landlord will incur by reason of late payment by Tenant. Acceptance of any late charge shall not constitute a waiver of Tenant’s Default
(as hereinafter defined) with respect to the overdue amount, or prevent Landlord from exercising any of the other rights and remedies available to Landlord. Checks returned by the bank for insufficient funds are deemed as late rent and shall incur
an additional charge of $25.00. 
 Landlord:
                             Tenant:
                     
 (e) Security Deposit. On December 15, 2009, Tenant paid Landlord a deposit (the “Deposit”) in the amount of Forty Five Thousand Three Hundred Ninety Four Dollars and 32 Cents ($45,394.32) pursuant to that
certain Expression of Interest-Proposal to Lease dated December 14, 2009. Upon execution of this Lease, Landlord shall hold the Deposit as security (the “Security Deposit”) for performance by Tenant of its obligations under this
Lease. If Tenant is in Default, Landlord can use the Security Deposit, or any portion of it, to cure the Default or to compensate Landlord for all damage sustained by Landlord resulting from Tenant’s Default. Tenant shall immediately on demand
pay to Landlord a sum equal to the portion of the Security Deposit expended or applied by Landlord as provided in this Paragraph so as to maintain the Security Deposit in the sum initially deposited with Landlord. If Tenant is not in Default at the
expiration or termination of this Lease, Landlord shall promptly return the Security Deposit to Tenant. Landlord’s obligations with respect to the Security Deposit are those of a debtor and not a trustee. Landlord can maintain the Security
Deposit separate and apart from Landlord’s general funds or can commingle the Security Deposit with Landlord’s general and other funds. Landlord shall not be required to pay Tenant interest on the Security Deposit. 
  

 2 

 4. Personal Property Taxes. As additional rent, Tenant shall pay before
delinquency all taxes, assessments, license fees, and other charges (“taxes”) that are levied and assessed against Tenant’s personal property installed or located in or on the Leased Premises, and that become payable during the Term
and any renewals or extensions thereof. On demand by Landlord, Tenant shall furnish Landlord with satisfactory evidence of these payments. 
 5. Real Property Taxes. Landlord shall be responsible for the payment of real property taxes and general and special assessments levied and assessed against the Building and land of which
the Leased Premises are a part. 
 6. Utilities and Other Expenses. Tenant shall pay before delinquent all charges
made for gas; electricity, telephone, garbage and any similar utility supplied to the Leased Premises at utility company rates. Landlord shall pay all sewer charges related to the Leased Premises. 
 7. Use. The Leased Premises are to be used for storage, roasting, grinding, flavoring, packaging and distribution of coffee
and associated products and any other use allowed by law. Tenant agrees to restrict its use to such purposes, and not to use, or permit the use of, the Leased Premises for any other purpose without first obtaining the consent in writing of
Landlord, or of Landlord’s authorized agent, which shall not be unreasonably withheld, delayed or conditioned. 
 8.
Signs. Tenant agrees that it will not construct or place or permit to be constructed or placed, signs, awnings, marquees, or other structures projecting from the exterior of the Leased Premises without Landlord’s prior written
consent thereto, which shall not be unreasonably withheld, delayed or conditioned. No such sign shall be painted directly on the Building but shall be attached in such a manner that it can be removed for the purpose of painting the Building’s
exterior surface. Tenant further agrees to remove signs, displays, advertisements or decorations it has placed, or permitted to be placed, on the Leased Premises, which, in Landlord’s reasonable opinion, are offensive or otherwise
objectionable. If Tenant fails to remove such signs, displays, advertisements or decorations within thirty (30) days after receiving written notice to remove the same from Landlord, Landlord reserves the right to enter the Leased Premises and
remove them, at Tenant’s expense. 
 9. Representations by Landlord. Neither Landlord nor any agent or
employee of Landlord has made any representations or promises with respect to the Leased Premises or the Building except as expressly set forth in this Lease and any attached Exhibits. 
 10. Maintenance and Repairs. 
 10.1 Maintenance by Landlord. Landlord shall, at its own cost and expense, maintain in good condition, repair and in compliance with all applicable laws (including without limitation,
building codes), the structural elements of the Building and the building systems. It shall be Landlord’s responsibility to keep the building systems operational. For purposes of this section, “structural elements” shall mean the
roof, exterior walls, (including painting of the entire Building and excepting window glass), bearing walls, structural supports, and foundation of the Building and the “building systems” shall mean the systems for electricity, plumbing,
sewer, water drainage,

  

 3 

 
lighting, heating, air conditioning and ventilation. Notwithstanding anything in this section to the contrary, Tenant shall promptly reimburse Landlord for the cost of any repairs made pursuant
to this section required due to the negligence of Tenant or its employees, agents, or subtenants, if any. Landlord and its agents shall have the right to enter the Leased Premises at all reasonable times (and at any time during an emergency) for the
purpose of inspecting them or to make any repairs required to be made by Landlord under this Lease. 
 10.2 Maintenance by
Tenant. Except as provided elsewhere in this Lease, Tenant shall, at its own cost and expense, perform or cause to be performed all ordinary repair and maintenance of the Leased Premises, so that the Leased Premises are in good order and
repair and in as safe and clean condition as when received by Tenant from Landlord, reasonable wear and tear excepted. Tenant’s obligation to repair shall specifically include routine, ordinary repairs to the heating, ventilation, and air
conditioning systems, interior walls, floor coverings, ceilings, paved driveways, parking areas and glass windows for the Leased Premises, except that Tenant’s obligation shall not include (i) major repairs to the structural elements of
the Building or building systems as defined in section 10.1 above, (ii) major repairs to the paved driveways or the parking areas (including, without limitation, resurfacing and/or re-slurring the paved driveways or the parking areas), or
(iii) capital improvements required by any government entity, law, ordinance or regulation. Tenant shall keep the parking lot, the garbage area and the general area around the Leased Premises, reasonably free of debris and garbage from
Tenant’s business. 
 11. Waste, Alterations. Tenant shall not commit, or allow to be committed, any waste on
the Leased Premises, or nuisance, nor shall it use or allow the Leased Premises to be used for an unlawful purpose. Tenant shall not make any alterations to the Leased Premises without Landlord’s consent, which shall not be unreasonably
withheld, delayed or conditioned. Any alterations made shall remain on and be surrendered with the Leased Premises on expiration or termination of this Lease, except that Landlord can elect at any time beginning thirty (30) days before
expiration of the Term (or any renewals or extensions thereof) to require Tenant to remove any alterations that Tenant has made to the Leased Premises. If Landlord so elects, Tenant shall, at its own cost and expense, remove such alteration before
the last day of the Term (or any renewals or extensions thereof) or within thirty (30) days after notice of election is given, whichever is later. 
 If Tenant makes any alterations to the Leased Premises as provided in this Paragraph in excess of $500, the alterations shall not be commenced until five (5) days after Landlord has received notice
from Tenant stating the date the installation of the alterations is to commence so that Landlord can post and record an appropriate Notice of Non-Responsibility. 
 12. Tenant’s Equipment. Tenant shall not install any other equipment of any kind or nature whatsoever which will or may necessitate any changes, replacements or additions to, or in the
use of, the water system, heating system, plumbing system, or electrical system of the Leased Premises or the Building without first obtaining the prior written consent of Landlord, which shall not be unreasonably withheld, delayed or conditioned.
In connection with Tenant’s roasting activities, it is understood and agreed that Tenant will need to pierce the roof to install ventilation devices and Landlord hereby approves Tenant’s installation of such devices. 
  

 4 

 13. Abandonment of Premises, Trade Fixtures. Tenant shall not abandon the
Leased Premises at any time during the Term and any renewals or extensions thereof; and if Tenant shall abandon or surrender said premises, or be dispossessed by process of law, or otherwise, any personal property belonging to Tenant and left on the
Leased Premises shall be deemed to be abandoned, except such property as may have been mortgaged to Landlord. 
 14.
Removal of Trade Fixtures of Tenant at End of Term. Tenant may remove all furniture, trade fixtures (described as floor coverings, window coverings and wall covering), and equipment installed on the Leased Premises by Tenant and the same
shall be removed by Tenant at the expiration or termination of this Lease, provided that the same may be removed without damage to the Building, and if damage is caused by such removal, Tenant agrees to repair such damage at Tenant’s own cost
forthwith. 
 15. Public Liability and Property Damage Insurance. 
 (a) Liability Insurance. Tenant shall, at its own cost and expense, procure and maintain during the Term and any renewals or
extensions thereof a policy of comprehensive public liability insurance and property damage insurance issued by an insurance company reasonably acceptable to Landlord and insuring Landlord against loss or liability caused by or connected with
Tenant’s occupation and use of the Leased Premises under this Lease an amount of not less than $1,000,000 for bodily injury liability and property damage liability in any one accident or occurrence. If Tenant shall fail to procure and maintain
said insurance within ten (10) days after Tenant’s receipt of written notice, Landlord may, but shall not be required to, procure and maintain the same at the expense of Tenant. 
 The insurance required under this Paragraph shall be issued by a responsible insurance company or companies authorized to do business in
California and shall be in a form reasonably satisfactory to Landlord. Tenant shall, upon Landlord’s request of the date of this Lease, deposit with Landlord a certificate showing that insurance to be in full force and effect. 
 (b) Insurance on Tenant’s Personal Property. Tenant shall, during the Term and any renewals or extensions thereof,
maintain at Tenant’s own cost and expense an insurance policy issued by a reputable company authorized to conduct insurance business in California insuring for their full insurable value all fixtures and equipment and, to the extent possible,
all merchandise that is, at any time during the Term and any renewals or extensions thereof, in or on the Leased Premises against damage or destruction by fire, theft, or the elements. 
 (c) Cancellation Requirements. Each of the insurance policies shall be in a form reasonably satisfactory to Landlord and shall
carry an endorsement that, before changing or canceling any policy, the issuing insurance company shall give Landlord at least 30 days’ prior written notice. Certificates of all such insurance policies shall be delivered to Landlord.

 16. Insurance. Landlord shall, at its sole cost and expense, obtain and maintain in force on the Building and
other improvements of which the Leased Premises are a part a policy of standard fire and extended coverage risk insurance, with vandalism and malicious mischief endorsements, with Landlord as insured, in amounts and in form satisfactory to Landlord,
which

  

 5 

 
may also include, at Landlord’s option, rental continuation, earthquake, flood, demolition, increased cost of construction due to changes in building codes, and other coverages Landlord
deems prudent or as may be required under the terms of any mortgage or deed of trust at any time encumbering the Building. Any proceeds of insurance shall be payable to Landlord and used for repair and reconstruction of the Building and the other
improvements of which the Leased Premises are a part, if Landlord is obligated under this Lease to repair or reconstruct, subject to any requirements as to the disposition of the proceeds that may be imposed by the beneficiary under any mortgage or
deed of trust at any time encumbering the Building. 
 17. Intentionally Omitted. 
 18. Insurance Risk. Tenant agrees not to use the Leased Premises in any manner, even in its use for the purposes for which the
Leased Premises are leased, that will increase risks covered by insurance on the Building so as to increase the rate of insurance on the Leased Premises, or to cause cancellation of any insurance policy covering the Building. Tenant further agrees
not to keep on the Leased Premises, or permit to be kept, used or sold thereon, anything prohibited by the policy of fire insurance covering the Leased Premises. Tenant agrees to comply with all requirements of the insurers applicable to the Leased
Premises necessary to keep in force the fire, extended coverage and public liability insurance covering the Leased Premises and the Building, at its own expense and at no cost to Landlord. 
 19. Compliance with Laws. Tenant further agrees that it will not conduct or operate any business upon said premises in
violation of any of the laws of the United States of America, or the State of California, or any ordinances of the county or city in which the Leased Premises are located, or in violation of laws, regulations or orders of any federal, state, county
or local agency or office, and any such violation on the part of the Tenant shall constitute a breach of the Lease at Landlord’s option. 
 20. Right of Re-Entry. It is understood and agreed that Landlord and its agents and employees shall have the right with reasonable advance notice to Tenant to enter upon said Leased Premises
at all times reasonable to inspect the same to see that no damage has been or is done and to protect any and all rights of Landlord and to post such reasonable notices as Landlord may desire to protect the rights of Landlord. 
 21. No Assignment. Tenant agrees not to assign or sublease this Lease, in whole or in part, nor sublet any portion of the
Leased Premises without the prior written consent of Landlord, which consent shall not be unreasonably withheld, delayed or conditioned. The giving of written consent to any assignment of this Lease shall not, however, release Tenant herein of its
primary obligation under the terms of this Lease. In the event of an assignment or sublease, Tenant shall provide the assignment documents prepared by Tenant’s attorney to Landlord for review by Landlord’s attorney and shall pay all of
Landlord’s reasonable attorney’s fees in connection with any such review, not to exceed Five Hundred Dollars ($500.00). Notwithstanding the above, Tenant may without Landlord’s consent sublease or assign this Lease to Tenant’s
parent corporation or to any affiliate of Tenant or its parent. 
  

 6 

 22. Default. 
 (a) Tenant’s Default. The occurrence of any of the following shall constitute a “Default” by Tenant:

 (1) failure to pay rent when due, if the failure continues for ten (10) days after written notice has been given
to Tenant from Landlord; 
 (2) abandonment of the Leased Premises; or 
 (3) failure to perform any other provision of this Lease if the failure to perform is not cured within thirty (30) days after
notice has been received by Tenant from Landlord. If the Default cannot reasonably be cured within thirty (30) days, Tenant shall not be in Default of this Lease if Tenant commences to cure the Default within the thirty (30) day period and
diligently and in good faith continues to cure the Default. 
 Notices given under this paragraph shall specify the alleged
Default and the applicable lease provisions, and shall demand that Tenant perform the provisions of this Lease or pay the rent that is in arrears, as the case may be, within the applicable period of time, or pursuant to applicable law, quit the
Leased Premises. No such notice shall be deemed forfeiture or a termination of this Lease unless Landlord so elects in the notice. 
 (b) Landlord’s Remedies. Landlord shall have the following remedies if Tenant commits a Default. These remedies are not exclusive; they are cumulative in addition to any remedies now or later allowed by law. 

(1) Tenant’s Right to Possession Not Terminated. Landlord can continue this Lease in full force and effect, and this
Lease will continue in effect as long as Landlord does not terminate Tenant’s right to possession, and Landlord shall have the right to collect rent when due. During the period Tenant is in Default, Landlord can, pursuant to applicable law,
enter the Leased Premises and shall make its best efforts to relet them, or any part of them, to third parties for Tenant’s account. Tenant shall be liable immediately to Landlord for reasonable costs Landlord incurs in reletting the Leased
Premises, including brokers’ commissions, expenses of repairing the Leased Premises required by the reletting, and like costs. Reletting can be for a period shorter or longer than the remaining term of this Lease. Tenant shall pay to Landlord
that rent due under this Lease on the dates the rent is due, less the rent Landlord receives from any reletting. No act by Landlord allowed by this paragraph shall terminate this Lease unless Landlord notifies Tenant that Landlord elects to
terminate this Lease. After Tenant’s Default and for as long as Landlord does not terminate Tenant’s right to possession of the Leased Premises, if Tenant obtains Landlord’s consent, Tenant shall have the right to assign or sublet its
interest in this Lease, but Tenant shall not be released from liability. Landlord’s consent to a proposed assignment or subletting shall not be unreasonably withheld, delayed or conditioned. 
 If Landlord elects to relet the Leased Premises as provided in this Paragraph, rent that Landlord receives from reletting shall be applied
to the payment of: 
  

 7 

 First, any indebtedness from Tenant to Landlord other than rent due from Tenant; 

Second, reasonable costs, including for maintenance, required under this Lease to be done by Tenant, which Landlord incurred in
reletting. 
 Third, rent due and unpaid under this Lease. After deducting the payments referred to in this Paragraph, any sum
remaining from the rent Landlord receives from reletting shall be held by Landlord and applied in payment of future rent as rent becomes due under this Lease. In no event shall Tenant be entitled to any excess rent received by Landlord. If, on the
date rent is due under this Lease, the rent received from the reletting is less than the rent due on that date, Tenant shall pay to Landlord, in additional to the remaining rent due, all costs for maintenance required under this Lease to be done by
Tenant, which Landlord incurred that remain after applying the rent received from the reletting as provided in this Paragraph. 
 (2) Termination of Tenant’s Right to Possession. Landlord can terminate Tenant’s right to possession of the Leased Premises at any time subject to applicable law. No act by Landlord other than giving notice to Tenant
shall terminate this Lease. Acts of maintenance, efforts to relet the Leased Premises or the appointment of a receiver on Landlord’s initiative to protect Landlord’s interest under this Lease shall not constitute a termination of
Tenant’s right to possession. On termination of this Lease pursuant to this Paragraph, Landlord has the right to recover from Tenant: 
 (A) The worth, at the time of the award, of the unpaid rent that had been earned at the time of termination of this Lease; 
 (B) The worth, at the time of the award, of the amount by which the unpaid rent that would have been eared after the date of
termination of this Lease until the time of award exceeds the amount of the loss of rent that Tenant proves could have been reasonably avoided; 
 (C) The worth, at the time of the award, of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of the loss of rent that Tenant proves could
have been reasonably avoided; and 
 (D) Any other amount and court costs, as reasonable compensation to Landlord as
determined by the court for all detriment proximately caused by Tenant’s Default. 
 “The worth, at the time of the
award,” as used in (A) and (B) of this paragraph, is to be computed by allowing interest at the maximum rate an individual is permitted by law to charge. “The worth, at the time of the award,” as referred to in (c) of
this paragraph, is to be computed by discounting the amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the award, plus 1%. 
 (3) Landlord’s Right to Cure Tenant’s Default. Landlord, at any time after Tenant commits a Default, can take reasonable actions to cure the Default at Tenant’s cost. If
Landlord at any time, by reason of Tenant’s Default, pays any sum or does any act that requires the

  

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payment of any reasonable sum, the reasonable sum paid by Landlord shall be due immediately from Tenant to Landlord at the time the reasonable sum is paid, and if paid at a later date shall bear
interest at the maximum rate an individual is permitted by law to charge from the date the reasonable sum is paid by Landlord until Landlord is reimbursed by Tenant. The reasonable sum, together with interest on it, shall be additional rent.

 23. Posting. Landlord reserves the right to place “For Sale” signs on the Leased Premises at any time
during this Lease, or “For lease” or “For Rent” signs on the Leased Premises at any time within sixty (60) days of expiration of this Lease. Tenant agrees to permit Landlord to do such posting, so long as such posting does
not unreasonably interfere with Tenant’s business. 
 24. Condemnation. If any part of the Leased Premises
shall be taken or condemned for a public or quasi-public use, and a part thereof remains which in Tenant’s judgment is still usable, this Lease, as to the part so taken, shall terminate as of the date title shall vest in the condemnor, and the
rent payable hereunder shall be adjusted so that the Tenant shall be required to pay for the remainder of the term only such portion of such rent as the value of the part remaining after the condemnation bears to the value of the entire Leased
Premises at the date of condemnation, said value to be determined by Tenant; but in such event Landlord or Tenant have the option to terminate this Lease as of the date when title to the part so condemned vests in the condemnor. If all the Lease
Premises or such part thereof, is to be taken or condemned so that there does not remain a portion susceptible for use hereunder, this Lease shall thereupon terminate. If a part or all of the Leased Premises be taken or condemned, all compensation
awarded upon such condemnation or taking shall go to Landlord and Tenant shall have no claim thereto, and Tenant hereby irrevocably assigns and transfers to Landlord any right to compensation or damages to which Tenant may become entitled during the
Term and any renewals or extensions thereof by reason of the condemnation of all, or a part, of the Leased Premises; provided, however, Tenant shall have the right to make claims for any leasehold improvements, relocation or related expenses.

 25. Damage to Premises. It is agreed that if the Leased Premises are partially or wholly damaged or destroyed
by fire, earthquake or other casualty, or be so damaged thereby as to render the Leased Premises untenantable in Tenant’s determination, Tenant shall give immediate written notice thereof to said Landlord, and this Lease may, at the option of
Landlord or Tenant be terminated by Landlord or Tenant, giving the other Party written notice of such termination within ten (10) days after Tenant’s notice of damage or destruction is delivered to Landlord. In the event Landlord or Tenant
does not terminate this Lease pursuant to this Paragraph, Landlord shall, at its own cost and expense and with reasonable diligence, restore the Leased Premises and repair the damage thus caused by fire, earthquake, or other casualty, and during
such reconstruction the Tenant agree to pay such rental as may be equitable, based on the extent to which the Leased Premises may be used by Tenant, and the total amount of rental provided to be paid under the terms of this Lease. Notwithstanding
the above, if such restoration/repair is not completed within ninety (90) days after the date of damage, Tenant shall have the right to terminate this Lease. 
 26. Brokers. Each Party represents that it has not had dealings with any real estate broker, finder or other person, with respect to this Lease in any manner. 
  

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 27. Holding Over to be Month-to-Month Tenancy at Renewed Rental. Holding over
by Tenant with or without consent of Landlord after termination of this Lease shall be treated as a tenancy from month-to-month at a monthly rental, payable in advance, of an amount which constitutes a 25% increase over the Monthly Rental in effect
at the termination of this Lease. This provision shall not be construed as giving Tenant any right to so hold over. 
 28.
Waiver. The waiver by Landlord of a breach or any term, covenant or condition contained in this Lease shall not be treated as a waiver of such term, covenant or condition, or as a waiver of a future breach of the same of any other term,
covenant or condition contained in this Lease. The acceptance of rent by Landlord shall not be treated as a waiver of a previous breach by Tenant of any term, covenant or condition of this Lease, other than a failure of Tenant to pay the particular
rental so accepted, regardless of Landlord’s knowledge of a previous breach at the time of acceptance of rent. 
 29.
Notices. Any notice to be given to either Party by the other shall be in writing and shall be served either personally or sent by prepaid, certified mail, return receipt requested addressed as follows: 
  

					
		 	Tenant :	  	 Diedrich Coffee, Inc.
 11480
Commercial Parkway
 Castroville, CA 95012
 831-632-8222

			
		 	Landlord:	  	Castroville Industrial Partners, LLC
		 		  	 19065 Portola Drive
 Salinas,
CA 93908

 Or such Party’s other address as it may provide. Notice shall be deemed communicated upon
receipt of a delivery or upon receipt of notice of refusal if mailed as provided in this paragraph. 
 30. Attorney Fees
and Costs. It is mutually understood and agreed by and between the Parties that if a suit is brought by Landlord against the Tenant to recover any rent or for breach of any agreement or condition contained herein to be performed by Tenant or
any summary action is brought by Landlord for the forfeiture of this Lease or to recover possession of the Leased Premises, or if either party should bring action to enforce any of the provisions of this Lease, reasonable attorney’s fees and
costs as fixed by the court for commencing or prosecuting said action shall be allowed to be awarded to the prevailing Party. 
 31. Waiver of Subrogation. The Parties release each other, and their respective authorized representatives, from any claims for damage to any person or to the Leased Premises and the Building and other improvements of which
the Leased Premises are a part that are caused by or result from risks insured against under any insurance policies required under this Lease to be carried by the Parties at the time of any such damage. 
 Each Party shall cause each insurance policy obtained by it to provide that the insurance company waives all rights of recovery by way of
subrogation against either Party in connection with

  

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any damage covered by any policy. Neither Party shall be liable to the other for damage caused by fire or any of the risks insured against under any insurance policy required to be carried under
this Lease. If any insurance policy cannot be obtained with a waiver of subrogation, or is obtainable only by the payment of an additional premium charge above that charged by insurance companies issuing policies without waiver of subrogation, the
Party undertaking to obtain the insurance shall notify the other Party of this fact. The other Party shall have a period of 10 days after receiving the notice either to place the insurance with a company that is reasonably satisfactory to the other
Party and that will carry the insurance with a waiver of subrogation, or to agree to pay the additional premium if such a policy is obtainable at additional cost. If the insurance cannot be obtained or the Party who desires a waiver of subrogation
refuses to pay the additional premium charged, the other Party is relieved of the obligation to obtain a waiver of subrogation rights with respect to the particular insurance involved. 
 32. Hazardous Materials / Indemnification. As used in this Lease, “Hazardous Substances or Waste” are those
materials defined by Environmental Laws as such. “Environmental Laws” shall include, but not be limited to, each and every federal, state and local law, statute, code, ordinance, regulation, rule or other requirement of governmental
authorities having jurisdiction over the Leased Premises (including, but not limited to, consent decrees and judicial or administrative orders), relating to the environment, including but not limited to, those applicable for the storage, treatment,
disposal, handling and release of any Hazardous Substance or Waste, all as amended or modified from time to time. 
 Landlord
represents and warrants to Tenant that: (i) no Hazardous Substances or Waste are present, or were installed, exposed, released or discharged in, on or under the Building or the Leased Premises and (ii) the Leased Premises have been used
and operated in compliance with all Environmental Laws. Landlord further represents that it shall, to the extent it is within its reasonable control: (a) maintain and operate the Leased Premises in compliance with all Environmental Laws, and
(b) comply (or cause the compliance) with all orders issued thereunder. 
 Landlord shall indemnify, protect and hold
harmless Tenant and each of Tenant’s directors, officers, employees, agents, successors and assigns, from and against any and all claims, liabilities, penalties, fines, judgments, forfeitures, losses, costs or expenses (including reasonable
attorney’s fees, consultants fees and experts fees) for the death of or injury to any person or damage to any property, or adverse effects on the environment, arising from or caused in whole or in part, directly or indirectly, by: (i) the
presence in, on or under the Building or the Leased Premises; or the discharge or release, in or from the Building or the Leased Premises, of any Hazardous Substances or Waste unless such presence, discharge or release is caused by Tenant’s
activities on or under the Building or in the Leased Premises; (ii) Landlord’s failure to comply with Environmental Laws; (iii) material breach by Landlord of its warranties, representations, agreements or covenants contained in this
Lease; (iv) any grossly negligent or willful act or omission of Landlord relating (directly or indirectly) to this Lease, the tenancy created under this Lease or the Leased Premises; and (v) any violation of CERCLA or any other
Environmental Laws now in effect or hereinafter enacted, by Landlord or Landlord’s subcontractor and their respective officers, directors, agents and employees. For the purposes of this indemnity the acts or omissions of Landlord or its
permittees, whether or not they are negligent, intentional, willful or unlawful, shall be attributable to Landlord, and

  

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Landlord’s obligations shall survive the expiration of the Term and any renewals or extensions thereof. 
 Tenant shall indemnify, protect and hold harmless Landlord and each of Landlord’s partners, directors, officers, employees, agents, successors and assigns from and against any and all claims,
liabilities, penalties, fines, judgments, forfeitures, losses, costs or expenses (including reasonable attorney’s fees, consultants fees and experts fees) for the death of or injury to any person or damage to any property, or adverse effects on
the environment, arising from or caused in whole or in part, directly or indirectly, by (i) the presence in, on or under the Building or the Leased Premises in violation of any applicable Environmental Laws; or the discharge or release, in or
from the Building or the Leased Premises, of any Hazardous Substances or Waste provided such presence, discharge or release is caused by Tenant’s activities on or under the Building or in the Leased Premises in violation of any applicable
Environmental Laws; (ii) material breach by Tenant of its warranties, representations, agreements or covenants contained in this Lease; (iii) any grossly negligent or willful act or omission of Tenant relating (directly or indirectly) to
this Lease, the tenancy created under this Lease or the Leased Premises; and (iv) any violation of CERCLA or any other Environmental Laws now in effect or hereinafter enacted, by Tenant or Tenant’s subcontractor and their respective
officers, directors, agents and employees. For the purposes of this indemnity the acts or omissions of Tenant or its permittees, whether or not they are negligent, intentional, willful or unlawful, shall be attributable to Tenant, and Tenant’s
obligation shall survive the expiration of the Term and any renewals or extensions thereof. 
 It is understood and agreed that
if Landlord or Tenant is involuntarily made a party defendant to any litigation concerning this Lease or the Leased Premises, or concerning any mechanic’s liens or materialman’s liens, then Landlord and Tenant shall protect, defend and
hold harmless the other from all loss or damage by reason thereof, including reasonable attorney’s fees so incurred by the other in such litigation and all taxable court costs. 
 33. Amendment of Lease. This Lease may be amended by an agreement in writing of the Parties at any time during the Term and
any renewals or extensions thereof. 
 34. Subordination. This Lease is and shall be subordinate to any
encumbrance now of record or recorded after the date of this Lease affecting the Building, other improvements, and land of which the Leased Premises are a part. Such subordination is effective without any further act of Tenant. Tenant shall from
time to time on request from Landlord execute and deliver any documents or instruments that may be reasonably required by a lender to effectuate any subordination. 
 35. Right to Estoppel Certificates. Each Party, within 30 days after notice from the other Party, shall execute and deliver to the other Party, in recordable form, a certificate stating that
this Lease is unmodified and in full force and effect, or in full force and effect as modified, and stating the modifications. The certificate also shall state the amount of the Monthly Rental, the dates to which the rent has been paid in advance,
and the amount of any security deposit or prepaid rent. Failure to deliver the certificate within 30 days shall be conclusive upon the Party failing to deliver the certificate for the benefit of the Party requesting the certificate and any successor
to the

  

 12 

 
Party requesting the certificate, that this Lease is in full force and effect and has not been modified except as may be represented by the Party requesting the certificate. 
 36. ADA Compliance. Landlord represents and warrants that the Building, other improvements and land of which the Leased
Premises are a part (as of the Commencement Date) shall be in conformance with the requirements of the Americans with Disabilities Act and all regulations issued by the U.S. Attorney General or other authorized agencies under the authority of the
Americans with Disabilities Act (“ADA Laws”). Landlord shall reimburse and indemnify Tenant for any expenses incurred because of the failure of the Building, other improvements and land of which the Leased Premises are a part to conform
with the ADA Laws, including the costs of making any alterations, renovations or accommodations required by the ADA laws, or any governmental enforcement agency, or any court, any and all fines, civil penalties, and damages awarded against Tenant
resulting from a violation or violations of the ADA Laws, and all reasonable legal expenses incurred in defending claims made under the ADA Laws, including reasonable attorney’s fees, so long as it is not caused by Tenant’s specific use or
Tenant’s required interior improvements. 
 37. General Provisions. 
 (a) Time of Essence. Time is of essence of each provision of this Lease. 
 (b) Benefit and Burden. The provisions of this Lease shall be binding upon, and shall inure to the benefit of, the Parties and
each of their respective representatives, successors and assigns. Landlord may freely and fully assign their interest hereunder. 
 (c) Rent Payable in U.S. Money. Rent and all other sums payable under this Lease must be paid in lawful money of the United States of America. 
 (d) California Law. This Lease shall be construed and interpreted in accordance with the laws of the State of California. 
 (e) Integrated Agreement; Modification. This Lease contains all the agreements of the Parties and cannot be amended or
modified except by a written agreement. 
 (f) Singular and Plural. When required by the context of this Lease, the
singular shall include the plural. 
 (g) Joint and Several Obligations. “Party” shall mean Landlord or
Tenant and “Parties” shall mean Landlord and Tenant; and if more than one person or entity is Landlord or Tenant, the obligations imposed on that party shall be joint and several. 
 (h) Severability. The unenforceability, invalidity or illegality of any provision shall not render the other provisions
unenforceable, invalid or illegal. 
 38. Quiet Enjoyment. Provided Tenant is not in Default, Landlord covenants
and agrees that Tenant shall have the right to peaceable possession and quiet enjoyment of and access to

  

 13 

 
the Leased Premises, without any hindrance from Landlord, its agents, successors, guests, invitees, licensees or persons claiming be or through Landlord. Landlord agrees to take all reasonable
and necessary steps in order to provide the Tenant with the peaceable possession and quiet enjoyment of the Leased Premises. 
 39. Renewal Option. Provided Tenant is not in Default hereunder, Tenant shall have the right to renew this Lease for three additional periods of five years (“Extended Term”) commencing at the expiration of the
Term by giving written notice to Landlord at least 180 days prior to the expiration of the original term. The Monthly Rental for the each year of the extended term shall be increased annually as dictated by Paragraph 3(c) of this Lease. 

40. Exhibits. The following Exhibits are attached to this Lease and the provisions of each Exhibit are incorporated herein
by reference: 
 Exhibit A 
 Exhibit B 
 [Signature page follows.] 
  

 14 

 IN WITNESS WHEREOF, the Parties have caused this Lease to be executed as of the date first
above written. 
  

									
	Landlord: Castroville Industrial Partners, LLC	 		 	Tenant: Diedrich Coffee, Inc.
			
	 /s/ Paul Johnson
	 		 	 /s/ Sean McCarthy

	Name:	 	Paul Johnson	 		 	Name:	 	Sean McCarthy
	Title:	 	Partner	 		 	Title:	 	CFO

 [Signature Page to Lease Agreement] 

 EXHIBIT A 
 DIAGRAM OF LEASED PREMISES 
 (See attached.) 
 Exhibit A 

 EXHIBIT B 
 TENANT/LANDLORD WORK LETTER 
 (See attached.) 
 Exhibit B

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