Document:

Amended and Restated Loan and Security Agreement - Silicon Valley Bank

 Exhibit 10.25 
 AMENDED AND RESTATED 
 LOAN AND SECURITY AGREEMENT 
 THIS AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (together with any schedule, annex, or exhibit attached hereto, as the same may be amended, restated, or
otherwise modified, this “Agreement”) is entered into on May 30, 2008 (the “Effective Date”) between and 3PAR INC., a Delaware corporation (“Borrower”), amends, restates, replaces and
supersedes in its entirety that certain Loan and Security Agreement dated as of June 30, 2005, as amended, between Bank and Borrower. Definitions of capitalized terms used in this Agreement are set forth in Section 13 below. The parties
agree as follows: 
  

	 	1.	ACCOUNTING AND OTHER TERMS 

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

	 	2.	LOAN AND TERMS OF PAYMENT 

 2.1. Promise
to Pay. Borrower hereby unconditionally promises to pay Bank the outstanding principal amount of all Credit Extensions and accrued and unpaid interest thereon as and when due in accordance with this Agreement. 
 2.1.1. Revolving Advances. 
 (a)
Availability. Subject to the terms and conditions of this Agreement, Bank shall make Advances not exceeding the Availability Amount. Amounts borrowed under the Revolving Line may be repaid and, prior to the Revolving Line Maturity Date,
reborrowed, subject to the applicable terms and conditions precedent herein. 
 (b) Termination; Repayment. The Revolving Line
terminates on the Revolving Line Maturity Date, when the principal amount of all Advances, the unpaid interest thereon, and all other Obligations relating to the Revolving Line shall be immediately due and payable. 
 2.1.2. Letters of Credit Sublimit. 
 (a) As part of the Revolving Line, Bank shall issue or have issued Letters of Credit for Borrower’s account. The face amount of outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit
Reserve) may not exceed the Availability Amount. Such aggregate amounts utilized hereunder shall at all times reduce the amount otherwise available for Advances under the Revolving Line. If, on the Revolving Line Maturity Date, there are any
outstanding Letters of Credit, then on such date Borrower shall provide to Bank cash collateral in an amount equal to 105% of the face amount of all such Letters of Credit plus all interest, fees, and costs due or to become due in connection
therewith (as estimated by Bank in its good faith business judgment), to secure all of the Obligations relating to said Letters of Credit. All Letters of Credit shall be in form and substance acceptable to Bank in its sole discretion and shall be
subject to the terms and conditions of Bank’s standard Application and Letter of Credit Agreement (the “Letter of Credit Application”). Borrower agrees to execute any further documentation in connection with the Letters of
Credit as Bank may reasonably request. Borrower further agrees to be bound by the regulations and interpretations of the issuer of any Letters of Credit guarantied by Bank and opened for Borrower’s account or by Bank’s interpretations of
any Letter of Credit issued by Bank for Borrower’s account, and Borrower understands and agrees that Bank shall not be liable for any error, negligence, or mistake, whether of omission or commission, in following Borrower’s instructions or
those contained in the Letters of Credit or any modifications, amendments, or supplements thereto. 

 (b) The obligation of Borrower to immediately reimburse Bank for drawings made under Letters of Credit
shall be absolute, unconditional, and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement, such Letters of Credit, and the Letter of Credit Application. 
 (c) Borrower may request that Bank issue a Letter of Credit payable in a Foreign Currency. If a demand for payment is made under any such Letter of
Credit, Bank shall treat such demand as an Advance to Borrower of the equivalent of the amount thereof (plus fees and charges in connection therewith such as wire, cable, SWIFT or similar charges) in Dollars at the then-prevailing rate of exchange
in San Francisco, California, for sales of the Foreign Currency for transfer to the country issuing such Foreign Currency. 
 (d) To guard
against fluctuations in currency exchange rates, upon the issuance of any Letter of Credit payable in a Foreign Currency, Bank shall create a reserve (the “Letter of Credit Reserve”) under the Revolving Line in an amount equal to
ten percent (10%) of the face amount of such Letter of Credit. The amount of the Letter of Credit Reserve may be adjusted by Bank from time to time to account for fluctuations in the exchange rate. The availability of funds under the Revolving
Line shall be reduced by the amount of such Letter of Credit Reserve for as long as such Letter of Credit remains outstanding. 
 2.1.3.
Foreign Exchange Sublimit. As part of the Revolving Line, Borrower may enter into foreign exchange contracts with Bank under which Borrower commits to purchase from or sell to Bank a specific amount of Foreign Currency (each, a “FX
Forward Contract”) on a specified date (the “Settlement Date”). FX Forward Contracts shall have a Settlement Date of at least one (1) FX Business Day after the contract date and shall be subject to a reserve of ten
percent (10%) of each outstanding FX Forward Contract in a maximum aggregate amount equal to $15,000,000 (the “FX Reserve”). The aggregate amount of FX Forward Contracts at any one time may not exceed ten (10) times the
amount of the FX Reserve. The obligations of Borrower relating to this section may not exceed the Availability Amount. 
 2.1.4. Cash
Management Services Sublimit. Borrower may use up to $15,000,000 (the “Cash Management Services Sublimit”) of the Revolving Line for Bank’s cash management services which may include merchant services, direct deposit of
payroll, business credit card, and check cashing services identified in Bank’s various cash management services agreements (collectively, the “Cash Management Services”). Any amounts Bank pays on behalf of Borrower or any
amounts that are not paid by Borrower for any Cash Management Services will be treated as Advances under the Revolving Line and will accrue interest at the interest rate applicable to Advances. The obligations of Borrower relating to this section
may not exceed the Availability Amount. 
 2.2. Prepayments. 
 (a) Overadvances. If, Borrower’s aggregate obligations under Sections 2.1.1, 2.1.2, 2.1.3 and 2.1.4 exceed the lesser of
the Committed Revolving Line, then, in Borrower must immediately pay Bank the excess. 
 (b) Each Credit Extension shall, at Borrower’s
option in accordance with the terms of this Agreement, be either in the form of a Prime Rate Credit Extension or a LIBOR Credit Extension; provided that in no event shall Borrower maintain at any time LIBOR Credit Extensions having more than
five (5) different Interest Periods. Borrower shall pay interest accrued on the Credit Extensions at the rates and in the manner set forth in Section 2.3(a). 
 2.3. Payment of Interest on the Credit Extensions. 
 (a) (i) Computation of Interest. Interest on the Credit Extensions and all fees payable hereunder shall be computed on the basis of a 360-day year and the actual number of days elapsed in the period during
which such interest accrues. In computing interest on any Credit Extension, the date of the making of such Credit Extension shall be included and the date of payment shall be excluded; provided, however, that if any Credit Extension is repaid
on the same day on which it is made, such day shall be included in computing interest on such Credit Extension. 
  

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 (ii) Advances. Subject to Section 2.3(b), each Advance shall bear interest on
the outstanding principal amount thereof from the date when made, continued or converted until paid in full at a rate per annum equal to the Prime Rate or the LIBOR Rate plus the LIBOR Rate Margin, as the case may be. Pursuant to the terms
hereof, interest on each Advance shall be paid in arrears on each Interest Payment Date. Interest shall also be paid on the date of any prepayment of any Advance pursuant to this Agreement for the portion of any Advance so prepaid and upon payment
(including prepayment) in full thereof. All accrued but unpaid interest on the Advances shall be due and payable on the Revolving Line Maturity Date. 
 (b) Default Interest. Except as otherwise provided in Section 2.3(a), after an Event of Default, Obligations shall bear interest five percent (5.00%) above the rate effective immediately before the
Event of Default (the “Default Rate”). Payment or acceptance of the increased interest rate provided in this Section 2.3(b) is not a permitted alternative to timely payment and shall not constitute a waiver of any Event
of Default or otherwise prejudice or limit any rights or remedies of Bank. 
 (c) Prime Rate Credit Extensions. Each change in the
interest rate of the Prime Rate Credit Extensions based on changes in the Prime Rate shall be effective on the effective date of such change and to the extent of such change. Bank shall use its best efforts to give Borrower prompt notice of any such
change in the Prime Rate; provided, however, that any failure by Bank to provide Borrower with notice hereunder shall not affect Bank’s right to make changes in the interest rate of the Prime Rate Credit Extensions based on changes in
the Prime Rate. 
 (d) LIBOR Credit Extensions. The interest rate applicable to each LIBOR Credit Extension shall be determined in
accordance with Section 3.6(a) hereunder. Subject to Sections 3.6 and 3.7, such rate shall apply during the entire Interest Period applicable to such LIBOR Credit Extension, and interest calculated thereon shall be payable
on the Interest Payment Date applicable to such LIBOR Credit Extension. 
 (e) Debit of Accounts. Bank may debit any of
Borrower’s deposit accounts, including the Designated Deposit Account, for principal and interest payments when due, or any other amounts Borrower owes Bank, when due. Bank shall promptly notify Borrower after it debits Borrower’s
accounts. These debits shall not constitute a set-off. 
 (f) Limitations on Interest Rates. Notwithstanding any provision in this
Agreement or any of the other Loan Documents, the total liability for payments in the nature of interest shall not exceed the applicable limits imposed by any applicable federal or state interest rate laws. If any payments in the nature of interest,
additional interest and other charges made hereunder or under any of the Loan Documents are held to be in excess of the applicable limits imposed by any applicable federal or state law, the amount held to be in excess shall be considered payment of
principal under the Credit Extensions and the indebtedness evidenced thereby shall be reduced by such amount in the inverse order of maturity so that the total liability for payments in the nature of interest, additional interest and other charges
shall not exceed the applicable limits imposed by any applicable federal or state interest rate laws. 
 2.4. Fees. Borrower shall pay
to Bank: 
 (a) Loan Fee. A fully earned, non-refundable loan fee equal to $10,000 on the Effective Date; 
 (b) Letter of Credit Fee. Bank’s customary fees and expenses for the issuance or renewal of Letters of Credit, including, without limitation,
any customary fronting fees for each Letter of Credit issued, upon the issuance, each anniversary of the issuance, and the renewal of such Letter of Credit; 
 (c) Letter of Credit Fee. A fee equal to 0.75% of the face amount of each issued Letter of Credit; and 
 (d) Bank Expenses. All Bank Expenses (including reasonable attorneys’ fees and expenses, plus expenses, for documentation and negotiation of this Agreement) incurred through and after the Effective Date, when due. 
  

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	 	3.	CONDITIONS OF LOANS 

 3.1. Conditions
Precedent to Initial Credit Extension. Bank’s obligation to make the initial Credit Extension is subject to the condition precedent that Bank shall have received, in form and substance reasonably satisfactory to Bank, such documents, and
completion of such other matters, as Bank may reasonably deem necessary or appropriate, including, without limitation: 
 (a) Borrower shall
have delivered duly executed original signatures to the Loan Documents to which it is a party; 
 (b) Borrower shall have delivered its
Operating Documents and a good standing certificate of Borrower certified by the Secretary of States of the State of Delaware and State of California as of a date no earlier than thirty (30) days prior to the Effective Date; 
 (c) Borrower shall have delivered duly executed original signatures to the completed Borrowing Resolutions for Borrower; 
 (d) Borrower shall have delivered the Perfection Certificate(s) executed by Borrower; 
 (e) An amendment to the increditor agreement by and among Bank and the agent and lenders under the Growth Capital Facility, in form and substance
satisfactory to Bank; 
 (f) Bank shall have received lien searches against Borrower satisfactory to Bank; and 
 (g) Borrower shall have paid the fees and Bank Expenses then due as specified in Section 2.4 hereof. 
 3.2. Conditions Precedent to all Credit Extensions. Bank’s obligations to make each Credit Extension, including the initial Credit Extension,
is subject to the following: 
 (a) for Advances under the Committed Revolving Line, timely receipt of a Notice of Borrowing; 
 (b) the representations and warranties in Section 5 shall be true in all material respects on the date of the Notice of Borrowing, and on the
Funding Date of each Credit Extension; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further
that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, and no Event of Default shall have occurred and be continuing or result from the Credit
Extension. Each Credit Extension is Borrower’s representation and warranty on that date that the representations and warranties in Section 5 remain true in all material respects; provided, however, that such materiality qualifier shall not
be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true,
accurate and complete in all material respects as of such date; and 
 (c) in Bank’s sole discretion, there has not been a Material
Adverse Change. 
 3.3. Covenant to Deliver. 
 Borrower agrees to deliver to Bank each item required to be delivered to Bank under this Agreement as a condition to any Credit Extension. Borrower expressly agrees that the extension of a Credit Extension prior to
the receipt by Bank of any such item shall not constitute a waiver by Bank of Borrower’s obligation to deliver such item, and any such extension in the absence of a required item shall be in Bank’s sole discretion. 
  

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 3.4. Procedures for Borrowing. 
 (a) Subject to the prior satisfaction of all other applicable conditions to the making of a Credit Extension set forth in this Agreement, each Credit
Extension shall be made upon Borrower’s irrevocable written notice delivered to Bank in the form of a Notice of Borrowing, each executed by a Responsible Officer of Borrower or his or her designee or without instructions if the Credit
Extensions are necessary to meet Obligations which have become due. Bank may rely on any telephone notice given by a person whom Bank believes is a Responsible Officer or designee. Borrower will indemnify Bank for any loss Bank suffers due to such
reliance. Such Notice of Borrowing must be received by Bank prior to 12:00 p.m. Pacific time, (i) at least three (3) Business Days prior to the requested Funding Date, in the case of LIBOR Credit Extensions, and (ii) at least one
(1) Business Day prior to the requested Funding Date, in the case of Prime Rate Credit Extensions, specifying: 
 (i) the
amount of the Credit Extension, which, if a LIBOR Credit Extension is requested, shall be in an aggregate minimum principal amount of $1,000,000 or in any integral multiple of $1,000,000 in excess thereof; 
 (ii) the requested Funding Date; 
 (iii) whether the Credit Extension is to be comprised of LIBOR Credit Extensions or Prime Rate Credit Extensions; and 
 (iv) the duration of the Interest Period applicable to any such LIBOR Credit Extensions included in such notice; provided that if the Notice of Borrowing shall fail to specify the duration of the Interest
Period for any Credit Extension comprised of LIBOR Credit Extensions, such Interest Period shall be one (1) month. 
 (b) The proceeds
of all such Credit Extensions will then be made available to Borrower on the Funding Date by Bank by transfer to the Designated Deposit Account and, subsequently, by wire transfer to such other account as Borrower may instruct in the Notice of
Borrowing. No Credit Extensions shall be deemed made to Borrower, and no interest shall accrue on any such Credit Extension, until the related funds have been deposited in the Designated Deposit Account. 
 3.5. Conversion and Continuation Elections. 
 (a) So long as (1) no Event of Default or Default exists; (2) Borrower shall not have sent any notice of termination of this Agreement; and (3) Borrower shall have complied with such customary procedures as Bank has
established from time to time for Borrower’s requests for LIBOR Credit Extensions, Borrower may, upon irrevocable written notice to Bank: 
 (i) elect to convert on any Business Day, Prime Rate Credit Extensions in an amount equal to $1,000,000 or any integral multiple of $1,000,000 in excess thereof into LIBOR Credit Extensions; 
 (ii) elect to continue on any Interest Payment Date any LIBOR Credit Extensions maturing on such Interest Payment Date (or any part
thereof in an amount equal to $1,000,000 or any integral multiple of $1,000,000 in excess thereof); provided, that if the aggregate amount of LIBOR Credit Extensions shall have been reduced, by payment, prepayment, or conversion of part
thereof, to be less than $1,000,000, such LIBOR Credit Extensions shall automatically convert into Prime Rate Credit Extensions, and on and after such date the right of Borrower to continue such Credit Extensions as, and convert such Credit
Extensions into, LIBOR Credit Extensions shall terminate; or 
 (iii) elect to convert on any Interest Payment Date any LIBOR
Credit Extensions maturing on such Interest Payment Date (or any part thereof in an amount equal to $1,000,000 or any integral multiple of $1,000,000 in excess thereof) into Prime Rate Credit Extensions. 
 (b) Borrower shall deliver a Notice of Conversion/Continuation in accordance with Section 10 to be received by Bank prior to 12:00 p.m.
Pacific time at least (i) three (3) Business Days in advance of the Conversion Date or Continuation Date, if any Credit Extensions are to be converted into or continued as LIBOR Credit 

  

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Extensions; and (ii) one (1) Business Day in advance of the Conversion Date, if any Credit Extensions are to be converted into Prime Rate Credit
Extensions, in each case specifying the: 
 (i) proposed Conversion Date or Continuation Date; 
 (ii) aggregate amount of the Credit Extensions to be converted or continued which, if any Credit Extensions are to be converted into or
continued as LIBOR Credit Extensions, shall be in an aggregate minimum principal amount of $1,000,000 or in any integral multiple of $1,000,000 in excess thereof; 
 (iii) nature of the proposed conversion or continuation; and 
 (iv) duration of the requested Interest Period. 
 (c) If upon the expiration of any Interest Period applicable to any LIBOR Credit Extensions, Borrower shall have timely failed to select a new Interest Period to be applicable to such LIBOR Credit Extensions, Borrower
shall be deemed to have elected to convert such LIBOR Credit Extensions into Prime Rate Credit Extensions. 
 (d) Any LIBOR Credit Extensions
shall, at Bank’s option, convert into Prime Rate Credit Extensions in the event that (i) an Event of Default or Default shall exist, or (ii) the aggregate principal amount of the Prime Rate Credit Extensions which have been previously
converted to LIBOR Credit Extensions, or the aggregate principal amount of existing LIBOR Credit Extensions continued, as the case may be, at the beginning of an Interest Period shall at any time during such Interest Period exceed the Revolving
Line. Borrower agrees to pay Bank, upon demand by Bank (or Bank may, at its option, charge the Designated Deposit Account or any other account Borrower maintains with Bank) any amounts required to compensate Bank for any loss (including loss of
anticipated profits), cost, or expense incurred by Bank, as a result of the conversion of LIBOR Credit Extensions to Prime Rate Credit Extensions pursuant to any of the foregoing. 
 (e) Notwithstanding anything to the contrary contained herein, Bank shall not be required to purchase United States Dollar deposits in the London
interbank market or other applicable LIBOR market to fund any LIBOR Credit Extensions, but the provisions hereof shall be deemed to apply as if Bank had purchased such deposits to fund the LIBOR Credit Extensions. 
 3.6. Special Provisions Governing LIBOR Credit Extensions. 
 Notwithstanding any other provision of this Agreement to the contrary, the following provisions shall govern with respect to LIBOR Credit Extensions as to the matters covered: 
 (a) Determination of Applicable Interest Rate. As soon as practicable on each Interest Rate Determination Date, Bank shall determine (which
determination shall, absent manifest error in calculation, be final, conclusive and binding upon all parties) the interest rate that shall apply to the LIBOR Credit Extensions for which an interest rate is then being determined for the applicable
Interest Period and shall promptly give notice thereof (in writing or by telephone confirmed in writing) to Borrower. 
 (b) Inability to
Determine Applicable Interest Rate. In the event that Bank shall have determined (which determination shall be final and conclusive and binding upon all parties hereto), on any Interest Rate Determination Date with respect to any LIBOR Credit
Extension, that by reason of circumstances affecting the London interbank market adequate and fair means do not exist for ascertaining the interest rate applicable to such Credit Extension on the basis provided for in the definition of LIBOR, Bank
shall on such date give notice (by facsimile or by telephone confirmed in writing) to Borrower of such determination, whereupon (i) no Credit Extensions may be made as, or converted to, LIBOR Credit Extensions until such time as Bank notifies
Borrower that the circumstances giving rise to such notice no longer exist, and (ii) any Notice of Borrowing or Notice of Conversion/Continuation given by Borrower with respect to Credit Extensions in respect of which such determination was
made shall be deemed to be rescinded by Borrower. 
  

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 (c) Compensation for Breakage or Non-Commencement of Interest Periods. Borrower shall compensate
Bank, upon written request by Bank (which request shall set forth the manner and method of computing such compensation), for all reasonable losses, expenses and liabilities, if any (including any interest paid by Bank to lenders of funds borrowed by
it to make or carry its LIBOR Credit Extensions and any loss, expense or liability incurred by Bank in connection with the liquidation or re-employment of such funds) such that Bank may incur: (i) if for any reason (other than a default by Bank
or due to any failure of Bank to fund LIBOR Credit Extensions due to impracticability or illegality under Sections 3.7(d) and 3.7(e)) a borrowing or a conversion to or continuation of any LIBOR Credit Extension does not occur on a date
specified in a Notice of Borrowing or a Notice of Conversion/Continuation, as the case may be, or (ii) if any principal payment or any conversion of any of its LIBOR Credit Extensions occurs on a date prior to the last day of an Interest Period
applicable to that Credit Extension. 
 (d) Assumptions Concerning Funding of LIBOR Credit Extensions. Calculation of all amounts
payable to Bank under this Section 3.6 and under Section 3.4 shall be made as though Bank had actually funded each of its relevant LIBOR Credit Extensions through the purchase of a Eurodollar deposit bearing interest at the
rate obtained pursuant to the definition of LIBOR Rate in an amount equal to the amount of such LIBOR Credit Extension and having a maturity comparable to the relevant Interest Period; provided, however, that Bank may fund each of its LIBOR
Credit Extensions in any manner it sees fit and the foregoing assumptions shall be utilized only for the purposes of calculating amounts payable under this Section 3.6 and under Section 3.4. 
 (e) LIBOR Credit Extensions After Default. After the occurrence and during the continuance of an Event of Default, (i) Borrower may not elect
to have an Credit Extension be made or continued as, or converted to, a LIBOR Credit Extension after the expiration of any Interest Period then in effect for such Credit Extension and (ii) subject to the provisions of
Section 3.6(c), any Notice of Conversion/Continuation given by Borrower with respect to a requested conversion/continuation that has not yet occurred shall be deemed to be rescinded by Borrower and be deemed a request to convert or
continue Credit Extensions referred to therein as Prime Rate Credit Extensions. 
 3.7. Additional Requirements/Provisions Regarding LIBOR
Credit Extensions. 
 (a) If for any reason (including voluntary or mandatory prepayment or acceleration), Bank receives all or part of
the principal amount of a LIBOR Credit Extension prior to the last day of the Interest Period for such Credit Extension, Borrower shall immediately notify Borrower’s account officer at Bank and, on demand by Bank, pay Bank the amount (if any)
by which (i) the additional interest which would have been payable on the amount so received had it not been received until the last day of such Interest Period exceeds (ii) the interest which would have been recoverable by Bank by placing
the amount so received on deposit in the certificate of deposit markets, the offshore currency markets, or United States Treasury investment products, as the case may be, for a period starting on the date on which it was so received and ending on
the last day of such Interest Period at the interest rate determined by Bank in its reasonable discretion. Bank’s determination as to such amount shall be conclusive absent manifest error. 
 (b) Borrower shall pay Bank, upon demand by Bank, from time to time such amounts as Bank may determine to be necessary to compensate it for any costs
incurred by Bank that Bank determines are attributable to its making or maintaining of any amount receivable by Bank hereunder in respect of any Credit Extensions relating thereto (such increases in costs and reductions in amounts receivable being
herein called “Additional Costs”), in each case resulting from any Regulatory Change which: 
 (i) changes
the basis of taxation of any amounts payable to Bank under this Agreement in respect of any Credit Extensions (other than changes which affect taxes measured by or imposed on the overall net income of Bank by the jurisdiction in which Bank has its
principal office); 
 (ii) imposes or modifies any reserve, special deposit or similar requirements relating to any extensions
of credit or other assets of, or any deposits with, or other liabilities of Bank (including any Credit Extensions or any deposits referred to in the definition of LIBOR); or 
 (iii) imposes any other condition affecting this Agreement (or any of such extensions of credit or liabilities). 
  

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 Bank will notify Borrower of any event occurring after the Effective Date which will entitle Bank to
compensation pursuant to this Section 3.7 as promptly as practicable after it obtains knowledge thereof and determines to request such compensation. Bank will furnish Borrower with a statement setting forth the basis and amount of each
request by Bank for compensation under this Section 3.7. Determinations and allocations by Bank for purposes of this Section 3.7 of the effect of any Regulatory Change on its costs of maintaining its obligations to make
Credit Extensions, of making or maintaining Credit Extensions, or on amounts receivable by it in respect of Credit Extensions, and of the additional amounts required to compensate Bank in respect of any Additional Costs, shall be conclusive absent
manifest error. 
 (c) If Bank shall determine that the adoption or implementation of any applicable law, rule, regulation, or treaty
regarding capital adequacy, or any change therein, or any change in the interpretation or administration thereof by any governmental authority, central bank, or comparable agency charged with the interpretation or administration thereof, or
compliance by Bank (or its applicable lending office) with any respect or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank, or comparable agency, has or would have the effect of
reducing the rate of return on capital of Bank or any person or entity controlling Bank (a “Parent”) as a consequence of its obligations hereunder to a level below that which Bank (or its Parent) could have achieved but for such
adoption, change, or compliance (taking into consideration policies with respect to capital adequacy) by an amount deemed by Bank to be material, then from time to time, within fifteen (15) days after demand by Bank, Borrower shall pay to Bank
such additional amount or amounts as will compensate Bank for such reduction. A statement of Bank claiming compensation under this Section 3.7(c) and setting forth the additional amount or amounts to be paid to it hereunder shall be
conclusive absent manifest error. 
 (d) If, at any time, Bank, in its sole and absolute discretion, determines that (i) the amount of
LIBOR Credit Extensions for periods equal to the corresponding Interest Periods are not available to Bank in the offshore currency interbank markets, or (ii) LIBOR does not accurately reflect the cost to Bank of lending the LIBOR Credit
Extensions, then Bank shall promptly give notice thereof to Borrower. Upon the giving of such notice, Bank’s obligation to make the LIBOR Credit Extensions shall terminate; provided, however, Credit Extensions shall not terminate if Bank
and Borrower agree in writing to a different interest rate applicable to LIBOR Credit Extensions. 
 (e) If it shall become unlawful for Bank
to continue to fund or maintain any LIBOR Credit Extensions, or to perform its obligations hereunder, upon demand by Bank, Borrower shall prepay the Credit Extensions in full with accrued interest thereon and all other amounts payable by Borrower
hereunder (including, without limitation, any amount payable in connection with such prepayment pursuant to Section 3.7(a)). Notwithstanding the foregoing, to the extent a determination by Bank as described above relates to a LIBOR
Credit Extension then being requested by Borrower pursuant to a Notice of Borrowing or a Notice of Conversion/Continuation, Borrower shall have the option, subject to the provisions of Section 3.6(c), to (i) rescind such Notice of
Borrowing or Notice of Conversion/Continuation by giving notice (by facsimile or by telephone confirmed in writing) to Bank of such rescission on the date on which Bank gives notice of its determination as described above, or (ii) modify such
Notice of Borrowing or Notice of Conversion/Continuation to obtain a Prime Rate Credit Extension or to have outstanding Credit Extensions converted into or continued as Prime Rate Credit Extensions by giving notice (by facsimile or by telephone
confirmed in writing) to Bank of such modification on the date on which Bank gives notice of its determination as described above. 
  

	 	4.	CREATION OF SECURITY INTEREST. 

 4.1.
Grant of Security Interest. Borrower hereby grants Bank, to secure the payment and performance in full of all of the Obligations, a continuing security interest in, and pledges to Bank, the Collateral, wherever located, whether now owned or
hereafter acquired or arising, and all proceeds and products thereof. Borrower represents, warrants, and covenants that the security interest granted herein is and shall at all times continue to be a first priority perfected security interest in the
Collateral (subject only to Permitted Liens that may have superior priority to Bank’s Lien under this Agreement). If Borrower or any Guarantor shall acquire a commercial tort claim, which it is asserting, Borrower shall, and shall cause such
Guarantor to, promptly notify Bank in a writing signed by Borrower or such Guarantor of the general details thereof and grant to Bank in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with
such writing to be in form and substance reasonably satisfactory to Bank. 
  

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 If this Agreement is terminated, Bank’s Lien in the Collateral shall continue until the Obligations
(other than inchoate indemnity obligations) are repaid in full in cash. Upon payment in full in cash of the Obligations and at such time as Bank’s obligation to make Credit Extensions has terminated, Bank shall, at Borrower’s sole cost and
expense, release its Liens in the Collateral and all rights therein shall revert to Borrower or Guarantors, as applicable. 
 Borrower has
agreed not to encumber any of its copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished, any patents, patent applications and like
protections, including improvements, divisions, continuations, renewals, reissues, extensions, and continuations-in-part of the same, trademarks, service marks and, to the extent permitted under applicable law, any applications therefor, whether
registered or not, and the goodwill of the business of Borrower connected with and symbolized thereby, know-how, operating manuals, trade secret rights, rights to unpatented inventions, and any claims for damage by way of any past, present, or
future infringement of any of the foregoing, without Bank’s prior written consent. 
 4.2. Authorization to File Financing
Statements. Borrower hereby authorizes, and shall cause each Guarantor to authorize, Bank to file financing statements, without notice to Borrower or any Guarantor, with all appropriate jurisdictions to perfect or protect Bank’s interest or
rights hereunder, including a notice that any disposition of the Collateral, by either Borrower, any Guarantor or any other Person, shall be deemed to violate the rights of Bank under the Code. 
  

	 	5.	REPRESENTATIONS AND WARRANTIES 

 Except as
otherwise provided below or as set forth in the Disclosure Schedule (which may be updated from time to time), Borrower represents and warrants as follows: 
 5.1. Due Organization and Authorization. Borrower and each of its Subsidiaries is duly existing and in good standing in its state of formation and qualified and licensed to do business in, and in good standing
in, any state in which the conduct of their business or its ownership of property requires that they be qualified, except where the failure to do so could not reasonably be expected to cause a Material Adverse Change. In connection with this
Agreement, Borrower has delivered, or has caused each Guarantor to deliver, to Bank completed Perfection Certificate[s] in form and substance satisfactory to Bank (each a “Perfection Certificate”). Borrower represents and warrants
to Bank that (a) Borrower’s and each Guarantor’s exact legal name is that indicated on the Perfection Certificates and on the signature pages thereof; (b) Borrower and each Guarantor are an organization of the type and are
organized in the jurisdictions set forth in the Perfection Certificates; (c) the Perfection Certificates accurately set forth Borrower’s and each Guarantor’s organizational identification numbers or accurately state that neither
Borrower nor such Guarantor has one; (d) the Perfection Certificates accurately set forth Borrower’s and such Guarantor’s places of business, or, if more than one, its respective chief executive office as well as Borrower’s and
such Guarantor’s mailing addresses (if different than its respective chief executive office); (e) Borrower and such Guarantor (and each of its respective predecessors) have not, in the past five (5) years, changed its respective state
of formation, organizational structure or type, or any organizational number assigned by its respective jurisdiction; and (f) all other information set forth on the Perfection Certificates pertaining to Borrower and each of its Subsidiaries is
accurate and complete. If neither Borrower nor any Guarantor is a Registered Organization but later becomes one, Borrower shall, and shall cause each Guarantor to promptly notify Bank of such occurrence and provide Bank with Borrower’s and such
Guarantor’s organizational identification numbers. 
 The execution, delivery and performance of the Loan Documents have been duly
authorized, and do not conflict with Borrower’s or any Guarantor’s organizational documents, nor constitute an event of default under any material agreement by which Borrower or any Guarantor is bound. Neither Borrower nor any Guarantor is
in default under any agreement to which it is a party or by which it is bound in which the default could reasonably be expected to have a material adverse effect on Borrower’s or such Guarantor’s business. 
 Each Loan Document has been duly executed and delivered by Borrower and each Guarantor that is a party thereto and is the legally valid and binding
obligation of Borrower and such Guarantor, enforceable against Borrower and such Guarantor in accordance with its respective terms, except as may be limited by bankruptcy, 

  

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insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to
enforceability (whether enforcement is sought in equity or at law). 
 5.2. Collateral. Borrower and each Guarantor have good title to
its Collateral, free of Liens except Permitted Liens. Neither Borrower nor any Guarantor has other Deposit Accounts, other than the Deposit Accounts described in the Disclosure Schedule. The Collateral is maintained at the locations set forth in the
Disclosure Schedule. The Collateral is not in the possession of any third party bailee (such as at a warehouse) unless the fair market value of the Collateral at such location is less than $1,000,000. Unless the fair market value of the Collateral
at such location is less than $1,000,000, in the event that Borrower or any Guarantor, after the date hereof, intends to store or otherwise deliver the Collateral to a bailee, then Borrower and such Guarantor shall receive the prior written consent
of Bank (such consent not to be unreasonably withheld), and such bailee must acknowledge in writing that the bailee is holding such Collateral for the benefit of Bank. All Inventory is in all material respects of good and marketable quality, free
from material defects. Borrower and Guarantors are the sole owner of its respective Intellectual Property, except for licenses granted to its customers in the ordinary course of business. To Borrower’s knowledge, each Patent is valid and
enforceable, and no material part of the Intellectual Property has been judged invalid or unenforceable, in whole or in part, and no claim has been made that any part of the Intellectual Property violates the rights of any third party except for any
such claim that would not be expected to result in a Material Adverse Change. 
 5.3. Intentionally Blank. 
 5.4. Litigation. There are no actions or proceedings pending or, to the knowledge of Borrower’s or any of its Subsidiaries’ Responsible
Officers, threatened by or against Borrower or any of its Subsidiaries in which an adverse decision could reasonably be expected to cause a Material Adverse Change. 
 5.5. No Material Deviation in Financial Statements. All consolidating financial statements for Borrower and its Subsidiaries delivered to Bank fairly present in all material respects Borrower’s
consolidated financial condition and Borrower’s and its Subsidiaries’ consolidated results of operations. There has not been any material deterioration in Borrower’s consolidated financial condition since the date of the most recent
financial statements submitted to Bank. 
 5.6. Solvency. The fair salable value of Borrower’s and each of its Subsidiaries’
assets (including goodwill minus disposition costs) exceeds the fair value of its liabilities; Neither Borrower nor any of its Subsidiaries is left with unreasonably small capital after the transactions in this Agreement; and Borrower and each of
its Subsidiaries are able to pay their debts (including trade debts) as they mature. 
 5.7. Regulatory Compliance. Neither Borrower
nor any of its Subsidiaries is an “investment company” or a company “controlled” by an “investment company” under the Investment Company Act. Neither Borrower nor any of its Subsidiaries is engaged as one of its
important activities in extending credit for margin stock (under Regulations T and U of the Federal Reserve Board of Governors). Borrower and each of its Subsidiaries have complied in all material respects with the Federal Fair Labor Standards Act.
Neither Borrower nor any of its Subsidiaries has violated any laws, ordinances or rules, the violation of which could reasonably be expected to cause a Material Adverse Change. None of Borrower’s or any of its Subsidiaries’ properties or
assets has been used by Borrower or its Subsidiary or, to the best of Borrower’s knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than legally. Borrower and each of its
Subsidiaries has generally timely filed all required tax returns and paid, or made adequate provision to pay, all material taxes, except those being contested in good faith with adequate reserves under GAAP. Borrower and each of its Subsidiaries has
obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all government authorities that are necessary to continue its business as currently conducted, except where the failure to do so
could not reasonably be expected to cause a Material Adverse Change. 
 5.8. Subsidiaries; Investments. Neither Borrower nor any of
its Subsidiaries owns any stock, partnership interest or other equity securities except for Permitted Investments. 
 5.9. Tax Returns and
Payments; Pension Contributions. Borrower and each of its Subsidiaries have timely filed all required tax returns and reports, and Borrower and each of its Subsidiaries have timely paid all 

  

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foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower or such Subsidiary. Borrower and each of its Subsidiaries
may defer payment of any contested taxes, provided that Borrower or such Subsidiary (a) in good faith contests its obligation to pay the taxes by appropriate proceedings promptly and diligently instituted and conducted, (b) notifies Bank
in writing of the commencement of, and any material development in, the proceedings, (c) posts bonds or takes any other steps required to prevent the governmental authority levying such contested taxes from obtaining a Lien upon any of the
Collateral that is other than a “Permitted Lien”. Neither Borrower nor any of its Subsidiaries is aware of any claims or adjustments proposed for any of Borrower’s or such Subsidiary’s prior tax years which could result in
additional taxes becoming due and payable by Borrower or such Subsidiary. Borrower and each of its Subsidiaries have paid all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their
terms, and neither Borrower nor any of its Subsidiaries have withdrawn from participation in, and has permitted partial or complete termination of, or permitted the occurrence of any other event with respect to, any such plan which could reasonably
be expected to result in any liability of Borrower or any of its Subsidiaries, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 
 5.10. Use of Proceeds. Borrower shall use the proceeds of the Advances for working capital and to fund its general business requirements.

 5.11. Full Disclosure. No written representation, warranty or other statement of Borrower or any of its Subsidiaries in any
certificate or written statement given to Bank pursuant to this Agreement (taken together with all such written certificates and written statements to Bank) contains any untrue statement of a material fact or omits to state a material fact necessary
to make the statements contained in the certificates or statements not misleading. Bank recognizes that the projections, forecasts, and business plans provided by Borrower or any of its Subsidiaries in good faith and based upon reasonable
assumptions are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected and forecasted results. 
  

	 	6.	AFFIRMATIVE COVENANTS 

 Borrower shall, and
shall cause each of its Subsidiaries to, do all of the following for so long as Bank has an obligation to lend or there are outstanding Obligations: 
 6.1. Government Compliance. 
 (a) Maintain its and all its Subsidiaries’ legal existence and
good standing in their jurisdictions of formation and maintain qualification in each jurisdiction in which the failure to so qualify could reasonably be expected to cause a Material Adverse Change; and 
 (b) Comply, and have each of its Subsidiaries comply, with all laws, ordinances and regulations to which it is subject, for which noncompliance could
have a material adverse effect on Borrower’s or such Subsidiary’s business or operations or would reasonably be expected to cause a Material Adverse Change. 
 6.2. Financial Statements, Reports, Certificates. 
 (a) Deliver to Bank: (i) Quarterly financial
statements, as soon as available, and in any event no later than 45 days following the end of Borrower’s fiscal quarter, (ii) as soon as available, but no later than the earlier of (A) five (5) days after filing with the
Securities Exchange Commission (“SEC”) or (B) 50 days after each fiscal quarter or 90 days after each fiscal year end, the Borrower’s 10K, 10Q, and 8K reports. Borrower’s 10K, 10Q, and 8K reports required to be delivered
pursuant to this clause (a) shall be deemed to have been delivered on the date on which Borrower posts such report or provides a link thereto on Borrower’s or another website on the Internet; provided, that Borrower shall provide paper
copies to Bank of the Compliance Certificates required by clause (c) below, (iii) a prompt report of any legal actions pending or threatened against Borrower or any of its Subsidiaries that could result in damages or costs to Borrower or
any of its Subsidiaries of $1,000,000 or more, or in which an adverse decision could reasonably be expected to cause a Material Adverse Change (collectively, “Material Litigation”), and (v) a cash balance report within
50 days following the end of Borrower’s fiscal quarter; 
  

 11 

 (b) Deliver to Bank, annual financial statements, as soon as available, and in any event no later than 90
days following the end of Borrower’s fiscal year, certified by, and with an unqualified opinion of, independent certified public accountants acceptable to Bank; 
 (c) Deliver to Bank, a Compliance Certificate, together with delivery of the financial statements referenced in clause (a) and (b) above, in such form as Bank shall reasonably specify, signed by the
Responsible Officer of Borrower, certifying that, as of the end of such period, Borrower was in full compliance with all of the terms and conditions of this Agreement, and setting forth calculations showing compliance with the financial covenants
set forth in this Agreement and such other information as Bank shall reasonably request; 
 (d) Deliver to Bank: annual operating budgets and
Board-approved projections (including income statements, balance sheets and cash flow statements, by month) for the upcoming fiscal year of Borrower as updated, but no later than forty-five (45) days after the end of the fiscal year; and

 (e) At reasonable times, and on one (1) Business Day’s notice, Bank, or its agents, shall have the right to inspect the
Collateral and the right to audit and copy Borrower’s Books. After the initial inspection and audit, such inspections and audits shall (at Bank’s discretion) occur semi-annually, unless an Event of Default exists. Bank shall take
reasonable steps to keep confidential all information obtained in any such inspection or audit, but Bank shall have the right to disclose any such information to its auditors, regulatory agencies, and attorneys, and pursuant to any subpoena or other
legal process. The foregoing inspections and audits shall be at Borrower’s expense and the charge therefor shall be $750 per person per day (or such higher amount as shall represent Bank’s then current standard charge for the same), plus
reasonable out-of-pocket expenses; provided that so long as no Event of Default has occurred and is continuing, Borrower shall not be required to pay such expenses more than twice per fiscal year. 
 6.3. Inventory. Keep all Inventory in good and marketable condition, and free from material defects. Returns and allowances between Borrower and
its Subsidiaries, on the one hand, and their respective account debtors, on the other, shall follow Borrower’s or such Subsidiaries’ customary practices as they exist at execution of this Agreement. 
 6.4. Tax Returns and Payments; Pension Contributions. Borrower, and each of its Subsidiaries, have timely filed, and will timely file, all
required material tax returns and reports, and Borrower and each of its Subsidiaries, have timely paid, and will timely pay, all foreign, federal, state and local taxes, assessments, deposits and contributions now or in the future owed by Borrower
or such Subsidiary, except, in each case, to the extent that non-compliance could not reasonably be expected to result in a Material Adverse Change. Notwithstanding the foregoing, Borrower or such Subsidiary may defer payment of any contested taxes,
provided that Borrower (a) in good faith contests Borrower’s or such Subsidiary’s obligation to pay the taxes by appropriate proceedings promptly and diligently instituted and conducted, (b) notifies Bank in writing of the
commencement of, and any material development in, the proceedings, and (c) posts bonds or takes any other steps required to keep the contested taxes from becoming a lien upon any of the Collateral. Neither Borrower nor any Subsidiary is unaware
of any claims or adjustments proposed for any of Borrower’s or such Subsidiary’s prior tax years which could result in additional taxes becoming due and payable by Borrower or such Subsidiary. Borrower and each Subsidiary have paid, and
shall continue to pay all amounts necessary to fund all present and future pension, profit sharing and deferred compensation plans in accordance with their terms, and neither Borrower nor any Subsidiary has or will withdraw from participation in,
permit partial or complete termination of, or permit the occurrence of any other event with respect to, any such plan which could reasonably be expected to result in any liability of Borrower or such Subsidiary, including any liability to the
Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 
 6.5. Insurance. Maintain, with financially
sound and reputable insurers, general business and casualty insurance in such amounts and against such liabilities and hazards as is customary for companies in Borrower’s and its Subsidiaries’ line of business. All property policies will
have a lender’s loss payable endorsement showing Bank as an additional loss payee and all liability policies will show the Bank as an additional insured and provide that the insurer must give Bank at least twenty (20) days notice before
canceling its policy. If an Event of Default has occurred and is continuing, proceeds payable under any policy covering the Collateral will, at Bank’s option, be payable to Bank on account of the Obligations. 
  

 12 

 6.6. Operating Accounts. 
 (a) Maintain its and its Subsidiaries’ primary domestic depository and operating accounts with Bank and Bank’s affiliates. 
 (b) Provide Bank five (5) days prior written notice before establishing any Collateral Account at or with any bank or financial institution other
than Bank or its Affiliates. In addition, for each Collateral Account that Borrower or any Guarantor at any time maintains, Borrower shall cause the applicable bank or financial institution (other than Bank) at or with which any Collateral Account
is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Bank’s Lien in such Collateral Account in accordance with the terms hereunder. The provisions of the
previous sentence shall not apply to deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of Borrower’s or any Guarantor’s employees and identified to Bank by
Borrower or such Guarantor as such. 
 6.7. Financial Covenants. 
 Borrower shall maintain as of the last day of each quarter, unless otherwise noted, on a consolidated basis with respect to Borrower and its
Subsidiaries: 
 (a) Tangible Net Worth. A Tangible Net Worth of at least $70,000,000 plus (i) 50% of any of all new net
issuances of equity proceeds received by Borrower plus (ii) 50% of quarterly profits of Borrower and its Subsidiaries. 
 (b) Quick
Ratio. A Quick Ratio of at least 1.25 to 1.0. 
 6.8. Protection of Intellectual Property Rights. Borrower shall, and shall cause
each of its Subsidiaries to: (a) protect, defend and maintain the validity and enforceability of its Intellectual Property; (b) promptly advise Bank in writing of material infringements of its Intellectual Property; and (c) not allow
any Intellectual Property material to Borrower’s or any Guarantor’s business to be abandoned, forfeited or dedicated to the public without Bank’s written consent. 
 6.9. Litigation Cooperation. From the date hereof and continuing through the termination of this Agreement, make available to Bank, without
expense to Bank, Borrower and each of its Subsidiaries and its respective officers, employees and agents and Borrower’s books and records, to the extent that Bank may deem them reasonably necessary to prosecute or defend any third-party suit or
proceeding instituted by or against Bank with respect to any Collateral or relating to Borrower or any such Subsidiary. 
 6.10. New
Subsidiaries. In the event that any Person becomes a Subsidiary of Borrower or any other existing Subsidiary (other than 3PAR Government Systems, Inc.), Borrower shall, and shall cause the new Subsidiary and the existing Subsidiary (other than
3PAR Government Systems, Inc.) to (a) concurrently with such Person becoming a Subsidiary cause such Subsidiary to guarantee all of the Obligations and to grant to Bank a first priority Lien (subject to Permitted Liens) in the Collateral by
delivering to Bank a Guarantee in form and substance satisfactory to Bank, and (b) take all such actions and execute and deliver, or cause to be executed and delivered, all such documents, instruments, agreements, and certificates necessary to
effectuate such Subsidiary becoming a Guarantor and to grant such Lien in the Collateral referenced above. If the new Subsidiary is a foreign Subsidiary in respect of which either (a) the pledge of all of the equity interest of such Subsidiary
as Collateral or (b) the guaranteeing by such Subsidiary of the Obligations, would, in the good faith judgment of the Borrower, result in material adverse tax consequences to the Borrower or such existing Subsidiary, then Borrower or such
existing Subsidiary shall pledge only sixty five percent (65%) of the ownership interests of such foreign Subsidiary and such foreign Subsidiary shall not be required to be Guarantor or grantor hereunder. 
 6.11. Designated Senior Indebtedness. Borrower shall designate all principal of, interest (including all interest accruing after the commencement
of any bankruptcy or similar proceeding, whether or not a claim for post-petition interest is allowable as a claim in any such proceeding), and all fees, costs, expenses and other amounts accrued or due under this Agreement as “Designated
Senior Indebtedness”, or such similar term, in any future 

  

 13 

 
Subordinated Debt incurred by Borrower after the date hereof, if such Subordinated Debt contains such term or similar term and if the effect of such
designation is to grant to Bank the same or similar rights as granted to Bank as a holder of “Designated Senior Indebtedness” under the Indenture. 
 6.12. Further Assurances. Borrower shall, and shall cause such Guarantor to, execute any further instruments and take further action as Bank reasonably requests to perfect or continue Bank’s Lien in the
Collateral or to effect the purposes of this Agreement. 
  

	 	7.	NEGATIVE COVENANTS 

 Borrower shall not, and
shall not permit any of its Subsidiaries to, do any of the following without Bank’s prior written consent, for so long as Bank has an obligation to lend or there are any outstanding Obligations: 
 7.1. Dispositions. Convey, sell, lease, transfer or otherwise dispose of (collectively “Transfer”), all or any material
part of its business or property, except for Transfers of (a) Inventory in the ordinary course of business; (b) licenses and similar arrangements for the use of the property of Borrower or its Subsidiaries in the ordinary course of
business; or (c) worn-out or obsolete Equipment. 
 7.2. Changes in Control, Business. (a) Engage in any business other than
the business currently engaged in by Borrower and its Subsidiaries or reasonably related thereto, or (b) have a Change in Control. Neither Borrower nor any Subsidiary will, without at least thirty (30) days prior written notice, relocate
its respective chief executive office, change its respective state of formation (including reincorporation), change its respective organizational number or name or add any new offices or business locations (such as warehouses) in which Borrower or
such Subsidiary maintains or stores over $1,000,000 of Collateral. 
 7.3. Mergers or Acquisitions. Merge or consolidate, or permit
any of its Subsidiaries to merge or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person; provided, however, Bank’s
consent to the foregoing shall not be required so long as Borrower (a) is the sole survivor upon the consummation of any transaction described hereunder, and (b) no Event of Default has occurred or is likely to occur as a result of such
transaction. A Subsidiary may merge or consolidate into another Subsidiary or into Borrower. 
 7.4. Indebtedness. Create, incur,
assume, or be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness. 
 7.5. Encumbrance.
Create, incur, or allow any Lien on any of its property, or assign or convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, permit any Collateral not to be
subject to the first priority security interest granted herein, or enter into any agreement, document, instrument or other arrangement (except with or in favor of Bank) with any Person which directly or indirectly prohibits or has the effect of
prohibiting Borrower or any Subsidiary from assigning, mortgaging, pledging, granting a security interest in or upon, or encumbering any of Borrower’s or any Subsidiary’s Intellectual Property, except as is otherwise permitted in
Section 7.1 hereof and the definition of “Permitted Lien” herein. 
 7.6. Maintenance of Collateral Accounts. Maintain
any Collateral Account except pursuant to the terms of Section 6.6(b) hereof. 
 7.7. Investments; Distributions. Directly or
indirectly acquire or own any Person, or make any Investment in any Person, other than Permitted Investments or as permitted pursuant to Section 7.3 hereof, or pay any dividends or make any distribution or payment or redeem, retire or
purchase any capital stock except for Permitted Distributions. 
 7.8. Transactions with Affiliates. Directly or indirectly
enter into or permit to exist any material transaction with any Affiliate of Borrower except for transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms that are no less favorable to Borrower or any
Subsidiary than would be obtained in an arm’s length transaction with a non-affiliated Person. 
  

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 7.9. Subordinated Debt. (a) Make or permit any payment on any Subordinated Debt, except under
the terms of the subordination, intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any document relating to the Subordinated Debt which would increase the amount thereof or
adversely affect the subordination thereof to Obligations owed to Bank. 
 7.10. Compliance. Become an “investment company”
or a company controlled by an “investment company”, under the Investment Company Act of 1940 or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of
Governors of the Federal Reserve System), or use the proceeds of any Credit Extension for that purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur; fail
to comply with the Federal Fair Labor Standards Act or violate any other law or regulation, if the violation could reasonably be expected to have a material adverse effect on Borrower’s or any Subsidiary’s business, or permit any of its
Subsidiaries to do so; withdraw or permit any Subsidiary to withdraw from participation in, permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred
compensation plan which could reasonably be expected to result in any liability of Borrower or any Subsidiary, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 
  

	 	8.	EVENTS OF DEFAULT 

 Any one of the following
shall constitute an event of default (an “Event of Default”) under this Agreement: 
 8.1. Payment Default. Borrower
fails to (a) make any payment of principal on any Credit Extension on its due date (including prepayments required under Section 2.2), (b) make any payment of interest on any Credit Extension on its due date within three (3) days
of its due date or (c) pay any other Obligations within ten (10) days after such Obligations are due and payable. During the cure period, the failure to cure the payment default is not an Event of Default (but no Credit Extension will be
made during the cure period); 
 8.2. Covenant Default. 
 (a) Borrower or any Guarantor fails or neglects to perform any obligation in Sections 6 or violates any covenant in Section 7; or 
 (b) Borrower or any Guarantor shall fail to perform any other non-monetary Obligation, which failure is not cured within ten (10) days after the date performance was to be rendered, provided, however, that if the
default cannot by its nature be cured within the ten day period or cannot after diligent attempts by Borrower or such Guarantor be cured within such ten day period, and such default is likely to be cured within a reasonable time, then Borrower or
such Guarantor shall have an additional reasonable period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, and within such reasonable time period the failure to have cured such default shall not be deemed
an Event of Default (provided that no Credit Extensions will be made during such cure period). Grace periods provided under this section shall not apply, among other things, to financial covenants or any other covenants set forth in subsection
(a) above; 
 8.3. Material Adverse Change. A Material Adverse Change occurs; 
 8.4. Attachment. If any material portion of Borrower’s assets is attached, seized, levied on, or comes into possession of a trustee or
receiver and the attachment, seizure or levy is not removed in ten (10) days, or if Borrower is enjoined, restrained, or prevented by court order from conducting a material part of its business or if a judgment or other claim becomes a Lien on
a material portion of Borrower’s assets, or if a notice of lien, levy, or assessment is filed against any material portion of Borrower’s assets by any government agency and is not paid within ten (10) days after Borrower receives
notice. These are not Events of Default if stayed or if a bond is posted pending contest by Borrower (but no Credit Extensions will be made while (a) the stay is in effect, or (b) Borrower contests the action, whichever is applicable);

  

 15 

 8.5. Insolvency. If Borrower becomes insolvent or if Borrower begins an Insolvency Proceeding or
an Insolvency Proceeding is begun against Borrower and is not dismissed or stayed within forty-five (45) days (but no Credit Extensions will be made before any Insolvency Proceeding is dismissed); 
 8.6. Other Agreements. If any event of default occurs under any Indebtedness in excess of $500,000 secured by a Permitted Lien, which is not cured
within any applicable cure period or waived in writing by the holder of the Permitted Lien; 
 8.7. Judgments. If a money judgment(s)
in the aggregate of at least $1,000,000 is rendered against Borrower and is unsatisfied and unstayed for ten (10) days (but no Credit Extensions will be made before the judgment is stayed or satisfied); 
 8.8. Misrepresentations. If Borrower or any Person acting for Borrower makes any material misrepresentation or material misstatement at the time
made now or later in any warranty or representation in this Agreement, any other Loan Document or in any writing delivered to Bank to induce Bank to enter this Agreement or any Loan Document; or 
 8.9. Subordinated Debt. A default or breach occurs under any agreement between Borrower and any creditor of Borrower that signed a subordination,
intercreditor, or other similar agreement with Bank, or any creditor that has signed such an agreement with Bank breaches any terms of such agreement; or 
 8.10. Guaranty. (a) Any guaranty of any Obligations terminates or ceases for any reason to be in full force and effect; (b) any Guarantor does not perform any obligation or covenant under any guaranty
of the Obligations; (c) any circumstance described in Sections 8.3, 8.4, 8.5, 8.6, 8.7, 8.8 or 8.9 occurs with respect to any Guarantor, (d) the liquidation, winding up, or termination of existence of any Guarantor; or (e) (i) a
material impairment in the perfection or priority of Bank’s Lien in the collateral provided by Guarantor or in the value of such collateral or (ii) a material adverse change in the general affairs, management, results of operation,
condition (financial or otherwise) or the prospect of repayment of the Obligations occurs with respect to any Guarantor. 
  

	 	9.	BANK’S RIGHTS AND REMEDIES 

 9.1.
Rights and Remedies. While an Event of Default occurs and continues Bank may, without notice or demand, do any or all of the following: 
 (a) declare all Obligations immediately due and payable (but if an Event of Default described in Section 8.5 occurs all Obligations are immediately due and payable without any action by Bank); 
 (b) stop advancing money or extending credit for Borrower’s benefit under this Agreement or under any other agreement between Borrower and Bank;

 (c) demand that Borrower (i) deposits cash with Bank in an amount equal to the aggregate amount of any Letters of Credit remaining
undrawn, as collateral security for the repayment of any future drawings under such Letters of Credit, and Borrower shall forthwith deposit and pay such amounts, and (ii) pay in advance all Letter of Credit fees scheduled to be paid or payable
over the remaining term of any Letters of Credit; 
 (d) terminate any FX Contracts; 
 (e) settle or adjust disputes and claims directly with Account Debtors for amounts on terms and in any order that Bank considers advisable, notify any
Person owing Borrower or any Guarantor money of Bank’s security interest in such funds, and verify the amount of such account; 
  

 16 

 (f) make any payments and do any acts it considers necessary or reasonable to protect the Collateral
and/or its security interest in the Collateral. Borrower shall, and shall cause each Guarantor to, assemble the Collateral if Bank requests and make it available as Bank designates. Bank may enter premises where the Collateral is located, take and
maintain possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Borrower grants, and shall cause each Guarantor to
grant to, Bank a license to enter and occupy any of its premises, without charge, to exercise any of Bank’s rights or remedies; 
 (g)
apply to the Obligations any (i) balances and deposits of Borrower or any Guarantor it holds, or (ii) any amount held by Bank owing to or for the credit or the account of Borrower or any Guarantor; 
 (h) ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell the Collateral. Bank is hereby granted a
non-exclusive, royalty-free license or other right to use, without charge, Borrower’s and Guarantors’ labels, patents, copyrights, mask works, rights of use of any name, trade secrets, trade names, trademarks, service marks, and
advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with Bank’s exercise of its rights under this Section,
Borrower’s and Guarantors’ rights under all licenses and all franchise agreements inure to Bank’s benefit; 
 (i) place a
“hold” on any account maintained with Bank and/or deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any Control Agreement or similar agreements providing control of any
Collateral; 
 (j) demand and receive possession of Borrower’s Books; and 
 (k) exercise all rights and remedies available to Bank under the Loan Documents or at law or equity, including all remedies provided under the Code
(including disposal of the Collateral pursuant to the terms thereof). 
 9.2. Power of Attorney. Borrower hereby irrevocably appoints,
and shall cause each Guarantor to appoint, Bank as its lawful attorney-in-fact, exercisable upon the occurrence and during the continuance of an Event of Default, to: (a) endorse Borrower’s or such Guarantor’s name on any checks or
other forms of payment or security; (b) sign Borrower’s or such Guarantor’s name on any invoice or bill of lading for any Account or drafts against Account Debtors; (c) settle and adjust disputes and claims about the Accounts
directly with Account Debtors, for amounts and on terms Bank determines reasonable; (d) make, settle, and adjust all claims under Borrower’s or such Guarantor’s insurance policies; (e) pay, contest or settle any Lien, charge,
encumbrance, security interest, and adverse claim in or to the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and (f) transfer the Collateral into the name of Bank or a third party as
the Code permits. Borrower hereby appoints, and shall cause each Guarantor to appoint, Bank as its lawful attorney-in-fact to sign Borrower’s or such Guarantor’s name on any documents necessary to perfect or continue the perfection of any
security interest regardless of whether an Event of Default has occurred until all Obligations have been satisfied in full and Bank is under no further obligation to make Credit Extensions hereunder. Bank’s foregoing appointment as
Borrower’s or such Guarantor’s attorney in fact, and all of Bank’s rights and powers, coupled with an interest, are irrevocable until all Obligations have been fully repaid and performed and Bank’s obligation to provide Credit
Extensions terminates. 
 9.3. Accounts Verification; Collection. Whether or not an Event of Default has occurred and is continuing,
Bank may notify any Person owing Borrower or any Guarantor money of Bank’s security interest in such funds and verify the amount of such account. After the occurrence of an Event of Default, any amounts received by Borrower or any Guarantor
shall be held in trust by Borrower or such Guarantor for Bank, and, if requested by Bank, Borrower shall, and shall cause each Guarantor to, immediately deliver such receipts to Bank in the form received from the Account Debtor, with proper
endorsements for deposit. 
 9.4. Protective Payments. If Borrower or any Guarantor fails to obtain the insurance called for by
Section 6.6 or fails to pay any premium thereon or fails to pay any other amount which Borrower or such Guarantor is obligated to pay under this Agreement or any other Loan Document, Bank may obtain such insurance or make such payment, and all
amounts so paid by Bank are Bank Expenses and immediately due and payable, bearing 

  

 17 

 
interest at the then highest applicable rate, and secured by the Collateral. Bank will make reasonable efforts to provide Borrower or such Guarantor with
notice of Bank obtaining such insurance at the time it is obtained or within a reasonable time thereafter. No payments by Bank are deemed an agreement to make similar payments in the future or Bank’s waiver of any Event of Default. 

9.5. Application of Payments and Proceeds. Unless an Event of Default has occurred and is continuing, Bank shall apply any funds in its
possession, whether from Borrower or any Guarantor account balances, payments, or proceeds realized as the result of any collection of Accounts or other disposition of the Collateral, first, to Bank Expenses, including without limitation, the
reasonable costs, expenses, liabilities, obligations and attorneys’ fees incurred by Bank in the exercise of its rights under this Agreement; second, to the interest due upon any of the Obligations; and third, to the principal of the
Obligations and any applicable fees and other charges, in such order as Bank shall determine in its sole discretion. Any surplus shall be paid to Borrower or other Persons legally entitled thereto; Borrower and Guarantors shall remain liable to Bank
for any deficiency. If an Event of Default has occurred and is continuing, Bank may apply any funds in its possession, whether from Borrower or any Guarantor account balances, payments, proceeds realized as the result of any collection of Accounts
or other disposition of the Collateral, or otherwise, to the Obligations in such order as Bank shall determine in its sole discretion. Any surplus shall be paid to Borrower or other Persons legally entitled thereto; Borrower and Guarantors shall
remain liable to Bank for any deficiency. If Bank, in its good faith business judgment, directly or indirectly enters into a deferred payment or other credit transaction with any purchaser at any sale of Collateral, Bank shall have the option,
exercisable at any time, of either reducing the Obligations by the principal amount of the purchase price or deferring the reduction of the Obligations until the actual receipt by Bank of cash therefor. 
 9.6. Bank’s Liability for Collateral. So long as Bank complies with reasonable banking practices regarding the safekeeping of the Collateral
in the possession or under the control of Bank, Bank shall not be liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or
(d) any act or default of any carrier, warehouseman, bailee, or other Person. Borrower and Guarantors bear all risk of loss, damage or destruction of the Collateral. 
 9.7. No Waiver; Remedies Cumulative. Bank’s failure, at any time or times, to require strict performance by Borrower of any provision of this Agreement or any other Loan Document shall not waive, affect,
or diminish any right of Bank thereafter to demand strict performance and compliance herewith or therewith. No waiver hereunder shall be effective unless signed by Bank and then is only effective for the specific instance and purpose for which it is
given. Bank’s rights and remedies under this Agreement and the other Loan Documents are cumulative. Bank has all rights and remedies provided under the Code, by law, or in equity. Bank’s exercise of one right or remedy is not an election,
and Bank’s waiver of any Event of Default is not a continuing waiver. Bank’s delay in exercising any remedy is not a waiver, election, or acquiescence. 
 9.8. Demand Waiver. Borrower waives demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal
of accounts, documents, instruments, chattel paper, and guarantees held by Bank on which Borrower is liable. 
  

	 	10.	NOTICES 

 All notices, consents, requests,
approvals, demands, or other communication (collectively, “Communication”) by any party to this Agreement or any other Loan Document must be in writing and shall be deemed to have been validly served, given, or delivered:
(a) upon the earlier of actual receipt and three (3) Business Days after deposit in the U.S. mail, first class, registered or certified mail return receipt requested, with proper postage prepaid; (b) upon transmission, when sent by
electronic mail or facsimile transmission; (c) one (1) Business Day after deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed to
the party to be notified and sent to the address, facsimile number, or email address indicated below. Bank or Borrower may change its address or facsimile number by giving the other party written notice thereof in accordance with the terms of this
Section 10. 
 If to Borrower:    3PAR Inc. 
                  4209 Technology Drive 

  

 18 

 
                   Fremont, CA 94538 
                    Attn:
                                     
                    Fax:
                                     
 If to Bank:             Silicon Valley Bank 
                    2400 Hanover Street 
                    Palo Alto, CA 94304 
                    Attn: Ray Aguilar 
                    Fax: (650) 320 0016 
  

	 	11.	CHOICE OF LAW, VENUE, JURY TRIAL WAIVER, AND JUDICIAL REFERENCE 

 California law governs the Loan Documents without regard to principles of conflicts of law. Borrower and Bank each submit to the exclusive jurisdiction of the State and Federal courts in Santa Clara County,
California; provided, however, that nothing in this Agreement shall be deemed to operate to preclude Bank from bringing suit or taking other legal action in any other jurisdiction to realize on the Collateral or any other security for the
Obligations, or to enforce a judgment or other court order in favor of Bank. Borrower expressly submits and consents in advance to such jurisdiction in any action or suit commenced in any such court, and Borrower hereby waives any objection that it
may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such court. Borrower hereby waives personal service of the
summons, complaints, and other process issued in such action or suit and agrees that service of such summons, complaints, and other process may be made by registered or certified mail addressed to Borrower at the address set forth in Section 10
of this Agreement and that service so made shall be deemed completed upon the earlier to occur of Borrower’s actual receipt thereof or three (3) days after deposit in the U.S. mails, proper postage prepaid. 
 TO THE EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR
BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED
THIS WAIVER WITH ITS COUNSEL. 
 WITHOUT INTENDING IN ANY WAY TO LIMIT THE PARTIES’ AGREEMENT TO WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL
BY JURY, if the above waiver of the right to a trial by jury is not enforceable, the parties hereto agree that any and all disputes or controversies of any nature between them arising at any time shall be decided by a reference to a private judge,
mutually selected by the parties (or, if they cannot agree, by the Presiding Judge of the Santa Clara County, California Superior Court) appointed in accordance with California Code of Civil Procedure Section 638 (or pursuant to comparable
provisions of federal law if the dispute falls within the exclusive jurisdiction of the federal courts), sitting without a jury, in Santa Clara County, California; and the parties hereby submit to the jurisdiction of such court. The reference
proceedings shall be conducted pursuant to and in accordance with the provisions of California Code of Civil Procedure §§ 638 through 645.1, inclusive. The private judge shall have the power, among others, to grant provisional relief,
including without limitation, entering temporary restraining orders, issuing preliminary and permanent injunctions and appointing receivers. All such proceedings shall be closed to the public and confidential and all records relating thereto shall
be permanently sealed. If during the course of any dispute, a party desires to seek provisional relief, but a judge has not been appointed at that point pursuant to the judicial reference procedures, then such party may apply to the Santa Clara
County, California Superior Court for such relief. The proceeding before the private judge shall be conducted in the same manner as it would be before a court under the rules of evidence applicable to judicial proceedings. The parties shall be
entitled to discovery which shall be conducted in the same manner as it would be before a court under the rules of discovery applicable to judicial proceedings. The private judge shall oversee discovery and may enforce all discovery rules and order
applicable to judicial proceedings in the same manner as a trial court judge. The parties agree that the selected or appointed private judge shall have the power to decide all issues in the action or proceeding, whether of fact or of law, and shall
report a statement of decision thereon pursuant to the California Code of Civil Procedure § 644(a). Nothing in this paragraph shall limit the right of any party at any time to exercise self-help remedies, foreclose against collateral, or obtain
provisional remedies. The private judge shall also determine all issues relating to the applicability, interpretation, and enforceability of this paragraph. 
  

 19 

	 	12.	GENERAL PROVISIONS 

 12.1. Successors and
Assigns. This Agreement binds and is for the benefit of the successors and permitted assigns of each party. Borrower may not assign this Agreement or any rights or obligations under it without Bank’s prior written consent (which may be
granted or withheld in Bank’s discretion). Bank has the right, without the consent of or notice to Borrower or any Guarantor, to sell, transfer, negotiate, or grant participation in all or any part of, or any interest in, Bank’s
obligations, rights, and benefits under this Agreement and the other Loan Documents. 
 12.2. Indemnification. Borrower agrees, and
shall cause each Guarantor to, indemnify, defend and hold Bank and its directors, officers, employees, agents, attorneys, or any other Person affiliated with or representing Bank harmless against: (a) all obligations, demands, claims, and
liabilities (collectively, “Claims”) asserted by any other party in connection with the transactions contemplated by the Loan Documents; and (b) all losses or Bank Expenses incurred, or paid by Bank from, following, or arising from
transactions between Bank and Borrower and/or any Guarantor (including reasonable attorneys’ fees and expenses), except for Claims and/or losses directly caused by Bank’s gross negligence or willful misconduct. 
 12.3. Limitation of Actions. Any claim or cause of action by Borrower or any Guarantor against Bank, its directors, officers, employees,
agents, accountants, attorneys, or any other Person affiliated with or representing Bank based upon, arising from, or relating to this Loan Agreement or any other Loan Document, or any other transaction contemplated hereby or thereby or relating
hereto or thereto, or any other matter, cause or thing whatsoever, occurred, done, omitted or suffered to be done by Bank, its directors, officers, employees, agents, accountants or attorneys, shall be barred unless asserted by Borrower or such
Guarantor by the commencement of an action or proceeding in a court of competent jurisdiction by (a) the filing of a complaint within one year from the earlier of (i) the date any of Borrower’s or such Guarantor’s officers or
directors had knowledge of the first act, the occurrence or omission upon which such claim or cause of action, or any part thereof, is based, or (ii) the date this Agreement is terminated, and (b) the service of a summons and complaint on
an officer of Bank, or on any other person authorized to accept service on behalf of Bank, within thirty (30) days thereafter. Borrower agrees, and shall cause each Guarantor to agree, that such one-year period is a reasonable and sufficient
time for Borrower and such Guarantor to investigate and act upon any such claim or cause of action. The one-year period provided herein shall not be waived, tolled, or extended except by the written consent of Bank in its sole discretion. This
provision shall survive any termination of this Loan Agreement or any other Loan Document. 
 12.4. Time of Essence. Time is of the
essence for the performance of all Obligations in this Agreement. 
 12.5. Severability of Provisions. Each provision of this
Agreement is severable from every other provision in determining the enforceability of any provision. 
 12.6. Amendments in Writing;
Integration. All amendments to this Agreement must be in writing signed by both Bank and Borrower. This Agreement and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All
prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Agreement and the Loan Documents merge into this Agreement and the Loan Documents. 
 12.7. Counterparts. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which,
when executed and delivered, are an original, and all taken together, constitute one Agreement. 
 12.8. Survival. All covenants,
representations and warranties made in this Agreement continue in full force until this Agreement has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their terms,
are to survive the termination of this Agreement) have been satisfied. The obligation of Borrower in Section 12.2 to indemnify Bank shall survive until the statute of limitations with respect to such claim or cause of action shall have run.

  

 20 

 12.9. Confidentiality. In handling any confidential information, Bank shall exercise the same
degree of care that it exercises for its own proprietary information, but disclosure of information may be made: (a) to Bank’s Subsidiaries or Affiliates; (b) to prospective transferees or purchasers of any interest in the Credit
Extensions (provided, however, Bank shall use commercially reasonable efforts to obtain such prospective transferee’s or purchaser’s agreement to the terms of this provision); (c) as required by law, regulation, subpoena, or other
order; (d) to Bank’s regulators or as otherwise required in connection with Bank’s examination or audit; and (e) as Bank considers appropriate in exercising remedies under this Agreement. Confidential information does not include
information that either: (i) is in the public domain or in Bank’s possession when disclosed to Bank, or becomes part of the public domain after disclosure to Bank; or (ii) is disclosed to Bank by a third party, if Bank does not know
that the third party is prohibited from disclosing the information. 
 12.10. Attorneys’ Fees, Costs and Expenses. In any action
or proceeding between Borrower and any Guarantor, on the one hand, and Bank on the other, arising out of or relating to the Loan Documents, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and other costs and
expenses incurred, in addition to any other relief to which it may be entitled. 
  

	 	13.	DEFINITIONS 

 13.1. Definitions. As
used in this Agreement, the following terms have the following meanings: 
 “Account” is any “account” as defined
in the Code with such additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other sums owing to Borrower. 
 “Account Debtor” is any “account debtor” as defined in the Code with such additions to such term as may hereafter be made. 
 “Quick Ratio” is, as of any date of determination, Borrower’s (a) Quick Assets divided by (b) Current Liabilities.

 “Advance” or “Advances” means an advance (or advances) under the Revolving Line. 
 “Affiliate” of any Person is a Person that owns or controls directly or indirectly the Person, any Person that controls or is controlled
by or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any Person that is a limited liability company, that Person’s managers and members. 
 “Agreement” is defined in the preamble hereof. 
 “Availability Amount” is (a) the Revolving Line minus (b) the amount of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit) plus an amount equal to the
Letter of Credit Reserves, minus (c) the FX Reserve, and minus (d) the outstanding principal balance of any Advances (including any amounts used for Cash Management Services). 
 “Bank” is defined in the preamble hereof. 
 “Bank Expenses” are all audit fees and expenses, costs, and expenses (including reasonable attorneys’ fees and expenses) for preparing, negotiating, administering, defending and enforcing the
Loan Documents (including, without limitation, those incurred in connection with appeals or Insolvency Proceedings) or otherwise incurred with respect to Borrower or any Guarantor. 
 “Bankruptcy-Related Defaults” is defined in Section 9.1. 
  

 21 

 “Borrower” is defined in the preamble hereof. 
 “Borrower’s Books” are all Borrower’s and Guarantors’ books and records including ledgers, federal and state tax returns,
records regarding Borrower’s and such Guarantor’s assets or liabilities, the Collateral, business operations or financial condition, and all computer programs or storage or any equipment containing such information. 
 “Borrowing Resolutions” are, with respect to any Person, those resolutions adopted by such Person’s Board of Directors and
delivered by such Person to Bank approving the Loan Documents to which such Person is a party and the transactions contemplated thereby, together with a certificate executed by its secretary on behalf of such Person certifying that (a) such
Person has the authority to execute, deliver, and perform its obligations under each of the Loan Documents to which it is a party, (b) that attached as Exhibit A to such certificate is a true, correct, and complete copy of the resolutions then
in full force and effect authorizing and ratifying the execution, delivery, and performance by such Person of the Loan Documents to which it is a party, (c) the name(s) of the Person(s) authorized to execute the Loan Documents on behalf of such
Person, together with a sample of the true signature(s) of such Person(s), and (d) that Bank may conclusively rely on such certificate unless and until such Person shall have delivered to Bank a further certificate canceling or amending such
prior certificate. 
 “Business Day” is any day other than a Saturday, Sunday or other day on which banking
institutions in the State of California are authorized or required by law or other governmental action to close, except that if any determination of a “Business Day” shall relate to a LIBOR Credit Extension, the term “Business
Day” shall also mean a day on which dealings are carried on in the London interbank market, and if any determination of a “Business Day” shall relate to an FX Forward Contract, the term “Business Day” shall mean a day on
which dealings are carried on in the country of settlement of the foreign (i.e., non-Dollar) currency.  
 “Capital
Lease” means with respect to any Person, any lease of any property (whether real, personal or mixed) by such Person as lessee that, in accordance with GAAP, would be required to be classified and accounted for as a capital lease on a
balance sheet of such Person. 
 “Capital Lease Obligation” means with respect to any Capital Lease of any Person,
the amount of the obligation of the lessee thereunder that, in accordance with GAAP, would appear on a balance sheet of such lessee in respect of such Capital Lease. 
 “Cash Equivalents” means (a) marketable direct obligations issued or unconditionally guaranteed by the United States or any agency
or any State thereof having maturities of not more than one (1) year from the date of acquisition; (b) commercial paper maturing no more than one (1) year after its creation and having the highest rating from either
Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc., (c) Bank’s certificates of deposit issued maturing no more than one (1) year after issue; and (d) money market funds at least ninety-five
percent (95%) of the assets of which constitute Cash Equivalents of the kinds described in clauses (a) through (c) of this definition. 
 “Cash Management Services” is defined in Section 2.1.4. 
 “Cash Management
Services Sublimit” is defined in Section 2.1.4. 
 ““Change in Control” is a transaction in
which any “person” or “group” (within the meaning of Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities
Exchange Act of 1934, as amended), directly or indirectly, of greater than 40% of the shares of all classes of stock then outstanding of Borrower ordinarily entitled to vote in the election of directors. 
 “Code” is the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in the State of California;
provided, that, to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently in different Articles or Divisions of the Code, the definition of such term contained in Article or Division 9
shall govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority of, or remedies with respect to, Bank’s Lien on any Collateral is governed by the Uniform
Commercial Code in effect in a jurisdiction other than the State of 

  

 22 

 
California, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes
on the provisions thereof relating to such attachment, perfection, priority, or remedies and for purposes of definitions relating to such provisions. 
 “Collateral” is any and all properties, rights and assets of the Borrower and Guarantors granted by the Borrower and each Guarantor to Lenders or arising under the Code, now, or in the future,
including, without limitation, the property described on Exhibit A. 
 “Collateral Account” is any Deposit Account,
Securities Account, or Commodity Account. 
 “Commodity Account” is any “commodity account” as defined in the Code
with such additions to such term as may hereafter be made. 
 “Communication” is defined in Section 10. 
 “Compliance Certificate” is that certain certificate in the form attached hereto as Exhibit D. 
 “Contingent Obligation” is, for any Person, any direct or indirect liability, contingent or not, of that Person for (a) any
indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed, endorsed, co-made, discounted or sold with recourse by that Person, or for which that Person is directly or
indirectly liable; (b) any obligations for undrawn letters of credit for the account of that Person; and (c) all obligations from any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement, or other
agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent Obligation” does not include endorsements in the ordinary course of business. The
amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably anticipated liability for it determined by the Person in good
faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement. 
 “Continuation Date” means any date on which Borrower elects to continue a LIBOR Credit Extension into another Interest Period. 
 “Control Agreement” is any control agreement entered into among the depository institution at which Borrower or any Guarantor maintains a Deposit Account or the securities intermediary or commodity
intermediary at which Borrower or any Guarantor maintains a Securities Account or a Commodity account, Borrower, such Guarantor and Bank pursuant to which Bank obtains control (within the meaning of the Code) over such Deposit Account, Securities
Account, or Commodity Account. 
 “Conversion Date” means any date on which Borrower elects to convert a Prime Rate Credit
Extension to a LIBOR Credit Extension or a LIBOR Credit Extension to a Prime Rate Credit Extension. 
 “Copyright”
means any of the following now owned or hereafter acquired or created (as a work for hire for the benefit of Borrower or any Guarantor) by Borrower or any Guarantor or in which Borrower or any Guarantor now holds or hereafter acquires or receives
any right or interest, in whole or in part: (a) any copyright, whether registered or unregistered, held pursuant to the laws of the United States or of any other country or foreign jurisdiction, (b) registration, application or recording
in the United States Copyright Office or in any similar office or agency of the United States or any other country or foreign jurisdiction, (c) any continuation, renewal or extension thereof, and (d) any registration to be issued in any
pending application, and shall include any right or interest in and to work protectable by any of the foregoing which are presently or in the future owned, created or authorized (as a work for hire for the benefit of Borrower or any Guarantor) or
acquired by Borrower or any Guarantor, in whole or in part. 
 “Credit Extension” is any Advance, Letter of Credit,
FX Forward Contract, amount utilized for Cash Management Services or any other extension of credit by Bank for Borrower’s benefit. 
  

 23 

 “Current Liabilities” means amounts that under GAAP should be included on that date as
current liabilities on Borrower’s consolidated balance sheet. 
 “Default” means any event which with notice or passage
of time or both, would constitute an Event of Default. 
 “Default Rate” is defined in Section 2.3(b). 
 “Deposit Account” is any “deposit account” as defined in the Code with such additions to such term as may hereafter be made.

 “Designated Deposit Account” means that certain deposit account maintained with Bank in the name of Borrower, account
number 3300172477. 
 “Disclosure Schedule” means the disclosure schedule attached hereto as Schedule A. 

“Dollars,” “dollars” and “$” each mean lawful money of the United States. 
 “Effective Date” is the date Bank executes this Agreement and as indicated on the signature page hereof. 
 “Equipment” is all “equipment” as defined in the Code with such additions to such term as may hereafter be made, and includes
without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing. 
 “ERISA” is the Employment Retirement Income Security Act of 1974, and its regulations. 
 “Event of
Default” is defined in Section 8. 
 “Foreign Currency” means lawful money of a country other than the United
States. 
 “Funding Date” is any date on which a Credit Extension is made to or on account of Borrower which shall be a
Business Day. 
 “FX Business Day” is any day when (a) Bank’s Foreign Exchange Department is conducting its normal
business and (b) the Foreign Currency being purchased or sold by Borrower is available to Bank from the entity from which Bank shall buy or sell such Foreign Currency. 
 “FX Forward Contract” is defined in Section 2.1.3. 
 “FX Reserve” is defined in Section 2.1.3. 
 “GAAP” is generally
accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or
in such other statements by such other Person as may be approved by a significant segment of the accounting profession, which are applicable to the circumstances as of the date of determination. 
 “General Intangibles” is all “general intangibles” as defined in the Code in effect on the date hereof with such additions to
such term as may hereafter be made, and includes without limitation, all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished, any
patents, trademarks, service marks and, to the extent permitted under applicable law, any applications therefor, whether registered or not, any trade secret rights, including any rights to unpatented inventions, payment intangibles, royalties,
contract rights, goodwill, franchise agreements, purchase orders, customer lists, route lists, telephone numbers, domain names, claims, income and other tax refunds, security and other deposits, options to purchase or sell real or personal property,
rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and business interruption insurance), payments of insurance and rights to
payment of any kind. 
  

 24 

 “Gold Hill” means Gold Hill Venture Lending 03, LP. 
 “Growth Capital Facility” means the growth capital loan made available to Borrower by Gold Hill and Silicon Valley Bank pursuant to a
Loan and Security Agreement by and among them dated June 30, 2005, as amended, restated and/or modified from time to time. 
 “Guarantor” is any present or future guarantor of the Obligations. 
 “Indebtedness” is
(a) indebtedness for borrowed money or the deferred price of property or services, such as reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar
instruments, (c) Capital Lease Obligations, and (d) Contingent Obligations. 
 “Insolvency Proceeding” is any
proceeding by or against any Person under the United States Bankruptcy Code, or any other bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking
reorganization, arrangement, or other relief. 
 “Intellectual Property” means any intellectual property, in any medium, of
any kind or nature whatsoever, now or hereafter owned or acquired or received by Borrower or any Guarantor or in which Borrower or any Guarantor now holds or hereafter acquires or receives any right or interest, and shall include, in any event, any
Copyright, Trademark, Patent, trade secret, customer list, Internet domain name (including any right related to the registration thereof), proprietary or confidential information, mask work, source, object or other programming code, invention
(whether or not patented or patentable), technical information, procedure, design, knowledge, know-how, software, data base, data, skill, expertise, recipe, experience, process, model, drawing, material or record, all claims for damages by way of
past, present and future infringement of any of the rights included above and all licenses or other rights to use any property or rights of a type described above. 
 “Interest Payment Date” means, with respect to any LIBOR Credit Extension or any Prime Rate Credit Extensions, the first (1st) day of each month (or, if the first day of the month does not fall
on a Business Day, then on the first Business Day following such date). 
 “Interest Period” means, as to any LIBOR Credit
Extension, the period commencing on the date of such LIBOR Credit Extension, or on the conversion/continuation date on which the LIBOR Credit Extension is converted into or continued as a LIBOR Credit Extension, and ending on the date that is one
(1), two (2) or three (3) months thereafter, in each case as Borrower may elect in the applicable Notice of Borrowing or Notice of Conversion/Continuation; provided, however, that (a) no Interest Period with respect to any
LIBOR Credit Extension shall end later than the Revolving Line Maturity Date, (b) the last day of an Interest Period shall be determined in accordance with the practices of the LIBOR interbank market as from time to time in effect, (c) if
any Interest Period would otherwise end on a day that is not a Business Day, that Interest Period shall be extended to the following Business Day unless, in the case of a LIBOR Credit Extension, the result of such extension would be to carry such
Interest Period into another calendar month, in which event such Interest Period shall end on the preceding Business Day, (d) any Interest Period pertaining to a LIBOR Credit Extension that begins on the last Business Day of a calendar month
(or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period, and (e) interest shall
accrue from and include the first Business Day of an Interest Period but exclude the last Business Day of such Interest Period. 
 “Interest Rate Determination Date” means each date for calculating the LIBOR for purposes of determining the interest rate in respect of an Interest Period. The Interest Rate Determination Date shall be the second Business
Day prior to the first day of the related Interest Period for a LIBOR Credit Extension. 
 “Inventory” is all
“inventory” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, 

  

 25 

 
packing and shipping materials, work in process and finished products, including without limitation such inventory as is temporarily out of Borrower’s
or any Guarantor’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above. 
 “Investment” is any beneficial ownership interest in any Person (including stock, partnership interest or other securities), and any loan, advance or capital contribution to any Person. 
 “Investment Property” means all present and future investment property, securities, stocks, bonds, debentures, debt securities,
partnership interests, limited liability company interests, options, security entitlements, securities accounts, commodity contracts, commodity accounts, and all financial assets held in any securities account or otherwise, and all options and
warrants to purchase any of the foregoing, wherever located, and all other securities of every kind, whether certificated or uncertificated. 
 “Letter of Credit” means a standby letter of credit issued by Bank or another institution based upon an application, guarantee, indemnity or similar agreement on the part of Bank as set forth in Section 2.1.2.

 “Letter of Credit Application” is defined in Section 2.1.2(a). 
 “Letter of Credit Reserve” has the meaning set forth in Section 2.1.2(d). 
 “LIBOR” means, for any Interest Rate Determination Date with respect to an Interest Period for any Credit Extension to be made,
continued as or converted into a LIBOR Credit Extension, the rate of interest per annum determined by Bank to be the per annum rate of interest at which deposits in United States Dollars are offered to Bank in the London interbank market (rounded
upward, if necessary, to the nearest 1/100th of one percent (0.01%)) in which Bank customarily participates at 12:00 p.m. (local time in such interbank market) two (2) Business Days prior to the first day of such Interest Period for a period
approximately equal to such Interest Period and in an amount approximately equal to the amount of such Credit Extension. 
 “LIBOR
Credit Extension” means a Credit Extension that bears interest based at the LIBOR Rate. 
 “LIBOR Rate” means, for
each Interest Period in respect of LIBOR Credit Extensions comprising part of the same Credit Extensions, an interest rate per annum (rounded upward to the nearest 1/16th of one percent (0.0625%)) equal to LIBOR for such Interest Period
divided by one (1) minus the Reserve Requirement for such Interest Period. 
 “LIBOR Rate Margin” is
2.00%. 
 “Lien” is a mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance. 
 “Loan Documents” are, collectively, this Agreement, the Disclosure Schedule, the Perfection Certificates, the IP Agreement, the
Subordination Agreement, any note, or notes or guaranties executed by Borrower or any Guarantor, and any other present or future agreement between Borrower any Guarantor and/or for the benefit of Bank in connection with this Agreement, all as
amended, restated, or otherwise modified; , provided, that for the avoidance of doubt, the term “Loan Documents” shall not include the Growth Capital Facility or any other documents executed in connection with such Growth Capital Facility.

 “Material Adverse Change” means any of the following: (a) a material adverse change in the business, operations, or
financial or other condition of the Borrower or any of its Subsidiaries, (b) a material impairment of the prospect of repayment of any portion of the Obligations, or (c) a material impairment of the priority of Bank’s security
interests in the Collateral. 
 “Material Litigation” has the meaning ascribed to it in Section 6.2(a) hereof.

 Notice of Borrowing” means a notice given by Borrower to Bank in accordance with Section 3.2(a), substantially in
the form of Exhibit B, with appropriate insertions. 
  

 26 

 “Notice of Conversion/Continuation” means a notice given by Borrower to Bank in
accordance with Section 3.5, substantially in the form of Exhibit C, with appropriate insertions. 
 “Obligations” are Borrower’s and/or Guarantors’ obligation to pay when due any debts, principal, interest, Bank Expenses and other amounts Borrower and/or Guarantors owe Bank now or later, whether under this
Agreement, the Loan Documents, or otherwise, including, without limitation, all obligations relating to letters of credit, cash management services, and foreign exchange contracts, if any, and including interest accruing after Insolvency Proceedings
begin and debts, liabilities, or obligations of Borrower and/or Guarantor assigned to Bank, and the performance of Borrower’s and/or Guarantors’ duties under the Loan Documents; Notwithstanding the foregoing, any obligations of Borrower to
Bank with respect to any warrants issued to Bank in connection with the transactions contemplated by this Agreement shall not be deemed to be “Obligations” hereunder. 
 “Other Property” means the following as defined in the Code in effect on the date hereof with such additions to such term as may
hereafter be made, and all rights relating thereto: all present and future “commercial tort claims” (including without limitation any commercial tort claims identified in the Representations), “documents”,
“instruments”, “promissory notes”, “chattel paper”, “letters of credit”, “letter-of-credit rights”, “fixtures”, “farm products” and “money”; and all other goods and
personal property of every kind, tangible and intangible, whether or not governed by the Code. 
 “Operating Documents” are,
for any Person, such Person’s formation documents, as certified with the Secretary of State of such Person’s state of formation on a date that is no earlier than 30 days prior to the Effective Date, and, (a) if such Person is a
corporation, its bylaws in current form, (b) if such Person is a limited liability company, its limited liability company agreement (or similar agreement), and (c) if such Person is a partnership, its partnership agreement (or similar
agreement), each of the foregoing with all current amendments or modifications thereto. 
 “Patent” means any of the
following now hereafter owned or acquired or received by Borrower or any Guarantor or in which Borrower or any Guarantor now holds or hereafter acquires or receives any right or interest: (a) letters patent and right corresponding thereto, of
the United States or any other country or other foreign jurisdiction, any registration and recording thereof, and any application for letters patent, and rights corresponding thereto, of the United States or any other country or other foreign
jurisdiction, including, without limitation, registrations, recordings and applications in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or any other country or other foreign
jurisdiction; (b) any reissue, continuation, continuation-in-part or extension thereof; (c) any petty patent, divisional, and patent of addition; and (d) any patent to issue in any such application. 
 “Perfection Certificates” is defined in Section 5.1. 
 “Permitted Distributions” means: 
 (a) purchases of capital stock from former employees,
consultants and directors pursuant to repurchase agreements or other similar agreements; 
 (b) distributions or dividends consisting solely
of Borrower’s capital stock; 
 (c) purchases for value of any rights distributed in connection with any stockholder rights plan; and

 (d) any Subsidiary may pay dividends or make distributions to Borrower or another Subsidiary. 
 “Permitted Indebtedness” is: 
 (a) Borrower’s Indebtedness to Bank under this Agreement or any other Loan Document, or any other Indebtedness to Bank; 
 (b)
Borrower’s Indebtedness to Bank and Gold Hill pursuant to the Growth Capital Facility; 
  

 27 

 (c) any Indebtedness existing on the date of this Agreement and shown on the Disclosure Schedule;

 (d) capitalized leases and purchase money Indebtedness secured by Permitted Liens not exceeding $750,000; 
 (e) refinanced Permitted Indebtedness, provided that the amount of such Indebtedness is not increased except by an amount equal to a reasonable premium
or other reasonable amount paid in connection with such refinancing and by an amount equal to any existing, but unutilized, commitment thereunder; 
 (f) Indebtedness of Borrower to any Subsidiary to the extent it is Subordinated Debt; Indebtedness of any Subsidiary to another Subsidiary; and Indebtedness of any Subsidiary to Borrower to the extent permitted under clause (g) of the
definition of Permitted Investments; 
 (g) Indebtedness under any performance, surety, statutory or appeal bonds or similar obligations
incurred in the ordinary course of business; 
 (h) Indebtedness to trade creditors incurred in the ordinary course of business; and

 (i) Other Indebtedness in an aggregate amount not to exceed $500,000 in aggregate principal amount outstanding at any time. 
 “Permitted Investments” are: 
 (a) Investments existing on the date of this Agreement and shown on the Disclosure Schedule; 
 (b) (i) marketable direct
obligations issued or unconditionally guaranteed by the United States or its agencies or any State maturing within one (1) year from its acquisition, (ii) commercial paper maturing no more than one (1) year after its creation and
having the highest rating from either Standard & Poor’s Corporation or Moody’s Investors Service, Inc., (iii) Bank’s certificates of deposit issued maturing no more than two (2) years after issue;
(iv) repurchase agreements having maturities of not more than 90 days; (v) money market accounts maintained with mutual funds having assets in excess of $1,000,000; (vi) tax exempt securities rated A or better by Moody’s or A+ or
better by Standard & Poors; (vii) mutual funds having at least 95% of their assets invested in the foregoing Investments, and (viii) other Investments permitted by Borrower’s investment policy that has been approved by its
board of directors (or a committee thereof) and Bank; 
 (c) Investments consisting of deposit and investment accounts in the name of
Borrower; 
 (d) Investments consisting of extensions of credit to Borrower’s or its Subsidiaries’ customers in the nature of
accounts receivable, prepaid royalties or notes receivable arising from the sale or lease of goods, provision of services or licensing activities of Borrower; 
 (e) Investments received in satisfaction or partial satisfaction of obligations owed by financially troubled obligors; 
 (f) Investments acquired in exchange for any other Investments in connection with or as a result of a bankruptcy, workout, reorganization or recapitalization; 
 (g) Investments of Subsidiaries in or to Borrower; Investments of Subsidiaries in or to other Subsidiaries. 
 (h) loans by Borrower to Subsidiaries in an aggregate amount not to exceed $1,000,000 in principal amount outstanding at any time; 
 (i) Investments consisting of (i) travel advances, employee relocation loans and other employee loans and advances in the ordinary course of
business not to exceed $500,000 and (ii) non-cash loans to employees, officers or directors relating to the purchase of equity securities of Borrower pursuant to employee stock purchase plans or arrangements approved by Borrower’s board of
directors; 
  

 28 

 (j) temporary advances to cover incidental expenses in the ordinary course of business; 
 (k) joint ventures or strategic alliances in the ordinary course of Borrower’s business consisting of the non-exclusive licensing of technology, the
development of technology or the providing of technical support, provided that any cash investments by Borrower do not exceed $1,000,000 in the aggregate in any fiscal year; and 
 (l) Other Investments in an aggregate amount not to exceed $500,000 in any fiscal year. 
 “Permitted Liens” are: 
 (a) (i) Liens existing on the Effective Date and shown on the Disclosure Schedule; (ii) Liens in favor of Bank arising under this Agreement or other Loan Documents or any other Lien in favor of Bank; and (iii) Liens in favor of
Bank and Gold Hill arising under the Growth Capital Facility; 
 (b) Liens for taxes, fees, assessments or other government charges or
levies, either not delinquent or being contested in good faith and for which Borrower maintains adequate reserves on Borrower’s Books, if they have no priority over any of Bank’s security interests; 
 (c) Liens (including with respect to capital leases) (i) on property (including accessions, additions, parts, replacements, fixtures, improvements
and attachments thereto, and the proceeds thereof) acquired or held by Borrower or its Subsidiaries incurred for financing such property (including accessions, additions, parts, replacements, fixtures, improvements and attachments thereto, and the
proceeds thereof), or (ii) existing on property (and accessions, additions, parts, replacements, fixtures, improvements and attachments thereto, and the proceeds thereof) when acquired, if the Lien is confined to such property (including
accessions, additions, parts, replacements, fixtures, improvements and attachments thereto, and the proceeds thereof) and the Indebtedness is Permitted Indebtedness; 
 (d) Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (c), but any extension, renewal or replacement Lien must be limited to the property
encumbered by the existing Lien and the principal amount of the indebtedness it secures may not increase; 
 (e) licenses or sublicenses
granted in the ordinary course of Borrower’s business and any interest or title of a licensor or under any license or sublicense, if the licenses and sublicenses permit granting Bank a security interest; 
 (f) leases or subleases granted in the ordinary course of Borrower’s or any of its Subsidiaries’ business, including in connection with
Borrower’s leased premises or leased property; 
 (g) carriers’, warehousemen’s, mechanics’, materialmen’s,
repairmen’s or other like Liens arising in the ordinary course of business which are not overdue for a period of more than 30 days or which are being contested in good faith and by appropriate proceeding if adequate reserves with respect
thereto are maintained on the books of the applicable Person; 
 (h) pledges or deposits in the ordinary course of business in connection
with workers’ compensation, unemployment insurance and other social security legislation; 
 (i) deposits to secure the performance of
bids, trade contracts (other than for borrowed money), contracts for the purchase of property, leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in each case, incurred in the ordinary
course of business and not representing an obligation for borrowed money; 
  

 29 

 (j) easements, rights-of-way, restrictions and other similar encumbrances affecting real property which
do not materially detract from the value of the property subject thereto or materially interfere with the ordinary conduct of the business of the applicable Person; 
 (k) statutory, common law or contractual Liens of depository institutions or institutions holding securities accounts (including rights of set-off) provided they are subordinate to Bank’s Liens pursuant to the
terms of a control agreement; 
 (l) Liens in favor of customs or revenue authorities arising as a matter of law to secure payment of customs
duties in connection with the importation of goods; 
 (m) Liens on insurance proceeds in favor of insurance companies granted solely to
secure financed insurance premiums. 
 (n) Liens arising from judgments, decrees or attachments in circumstances not constituting an Event of
Default; 
 (o) Liens securing Subordinated Debt; and 
 (p) Liens not otherwise permitted, provided that the amount of indebtedness secured by the Lien on the property is less than $500,000 and the Lien is confined to such property. 
 “Person” is any individual, sole proprietorship, partnership, limited liability company, joint venture, company, trust, unincorporated
organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency. 
 “Prime Rate” is Bank’s most recently announced “prime rate,” even if it is not Bank’s lowest rate. 
 “Prime Rate Credit Extension” means a Credit Extension that bears interest based at the Prime Rate. 
 “Quick Assets” is, on any date, Borrower’s consolidated, unrestricted cash and cash equivalents on deposit at Bank plus short and long term investments plus 100% of net billed accounts receivable. 
 “Quick Ratio” is, as of any date of determination, Borrower’s (a) Quick Assets divided by (b) Current Liabilities.

 “Registered Organization” is any “registered organization” as defined in the Code with such additions to such
term as may hereafter be made. 
 “Regulatory Change” means, with respect to Bank, any change on or after the date of this
Agreement in United States federal, state, or foreign laws or regulations, including Regulation D, or the adoption or making on or after such date of any interpretations, directives, or requests applying to a class of lenders including Bank, of or
under any United States federal or state, or any foreign laws or regulations (whether or not having the force of law) by any court or governmental or monetary authority charged with the interpretation or administration thereof. 
 “Reserve Requirement” means, for any Interest Period, the average maximum rate at which reserves (including any marginal, supplemental,
or emergency reserves) are required to be maintained during such Interest Period under Regulation D against “Eurocurrency liabilities” (as such term is used in Regulation D) by member banks of the Federal Reserve System. Without limiting
the effect of the foregoing, the Reserve Requirement shall reflect any other reserves required to be maintained by Bank by reason of any Regulatory Change against (a) any category of liabilities which includes deposits by reference to which the
LIBOR Rate is to be determined as provided in the definition of LIBOR or (b) any category of extensions of credit or other assets which include Credit Extensions. 
  

 30 

 “Responsible Officer” is any of the Chief Executive Officer, President, Chief Financial
Officer and Controller of Borrower or any Subsidiary. 
 “Revolving Line” is an Advance or Advances in an aggregate amount
of up to $15,000,000 outstanding at any time. 
 “Revolving Line Maturity Date” is May 29, 2009. 
 “Securities Account” is any “securities account” as defined in the Code with such additions to such term as may hereafter be
made. 
 “Settlement Date” is defined in Section 2.1.3. 
 “Subordinated Debt” is Indebtedness incurred by Borrower subordinated to all of Borrower’s now or hereafter Indebtedness to Bank
(pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Bank entered into between Bank and the other creditor), on terms acceptable to Bank. 
 “Subsidiary” means, with respect to any Person, any Person of which more than 50% of the voting stock or other equity interests is owned
or controlled, directly or indirectly, by such Person or one or more Affiliates of such Person. 
 “Tangible Net Worth” is,
on any date, the consolidated total assets of Borrower and its Subsidiaries minus (a) any amounts attributable to (i) goodwill, (ii) intangible items including unamortized debt discount and expense, patents, trade and service marks
and names, copyrights and research and development expenses except prepaid expenses, and (iii) reserves not already deducted from assets, minus (b) all liabilities of Borrower and its Subsidiaries, including Subordinated Debt plus
(c) 50% of any of all new net issuances of equity proceeds received by Borrower plus (d) 50% of quarterly profits of Borrower and its Subsidiaries. 
 “Trademark” means any of the following now or hereafter owned or acquired or received by Borrower or any Guarantor or in which Borrower or any Guarantor now holds or hereafter acquires or receives any
right or interest: (a) any trademark, trade name, corporate name, business name, trade style, service mark, logo, other source or business identifier, print or label on which any of the foregoing have appeared or appear, design or other general
intangibles of like nature, now existing or hereafter adopted or acquired, all registrations and recordings thereof, and any applications in connection therewith, including registration, recording and application in the United States Patent and
Trademark Office or in any similar office or agency of the United States, any State thereof or any other country or other foreign jurisdiction and (b) any reissue, extension or renewal of any of the foregoing. 
 “Transfer” is defined in Section 7.1. 
 [Signature page follows.] 
  

 31 

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

			
	BORROWER:
	
	3PAR INC.
		
	By	 	/s/ Adriel Lares
	Name:	 	Adriel Lares
	Title:	 	VP of Finance & CFO

  

			
	BANK:
	
	SILICON VALLEY BANK
		
	By	 	/s/ Tom Smith
	Name:	 	Tom Smith
	Title:	 	Managing Director
	Effective Date: May 30, 2008

 EXHIBIT A 
 The Collateral consists of all of Borrower’s right, title and interest in and to the following personal property: 
 All right, title and interest of Borrower in and to all of the following, whether now owned or hereafter arising or acquired and wherever located: all Accounts; all Inventory; all Equipment; all Deposit Accounts; all
General Intangibles (but excluding all Intellectual Property); all Investment Property; all Other Property; and any and all claims, rights and interests in any of the above, and all guaranties and security for any of the above, and all substitutions
and replacements for, additions, accessions, attachments, accessories, and improvements to, and proceeds (including proceeds of any insurance policies, proceeds of proceeds and claims against third parties) of, any and all of the above, and all
Borrower’s Books relating to any and all of the above. Notwithstanding the foregoing, the term “Collateral” shall not include and the grant of security interest herein shall not include more than 65% of the issued and outstanding
voting capital stock of any Subsidiary of Borrower that is incorporated or organized in a jurisdiction other than the United States or any state or territory thereof or the District of Columbia. 

 EXHIBIT B 
 FORM OF NOTICE OF BORROWING 
 3PAR INC. 
 Date: __________ 
  

	TO:	SILICON VALLEY BANK 

 3003 Tasman Drive 
 Santa Clara, CA 95054 
 Attention: Corporate Services Department 
  

	RE:	Amended and Restated Loan and Security Agreement dated as of May 30, 2008 (as amended, modified, supplemented or restated from time to time, the “Loan
Agreement”), by and between 3PAR Inc. (“Borrower”), and Silicon Valley Bank (the “Bank”) 

 Ladies
and Gentlemen: 
 The undersigned refers to the Loan Agreement, the terms defined therein and used herein as so defined, and hereby gives you
notice irrevocably, pursuant to Section 3.4(a) of the Loan Agreement, of the borrowing of a Credit Extension. 
 1. The
Funding Date, which shall be a Business Day, of the requested borrowing is             . 
 2. The aggregate amount of the requested borrowing is $            . 
 3. The requested Credit Extension shall consist of $             of Prime Rate
Credit Extensions and $             of LIBOR Credit Extensions. 
 4.
The duration of the Interest Period for the LIBOR Credit Extensions included in the requested Credit Extension shall be              months. 
 The undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the date of the proposed Credit Extension
before and after giving effect thereto, and to the application of the proceeds therefrom, as applicable: 
 (a) all
representations and warranties of Borrower contained in the Loan Agreement are true, accurate and complete in all material respects as of the date hereof; provided, however, that such materiality qualifier shall not be applicable to any
representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in
all material respects as of such date; 
 (b) no Default or Event of Default has occurred and is continuing, or would
result from such proposed Credit Extension; and 
 (c) the requested Credit Extension will not cause the aggregate
principal amount of the outstanding Advances to exceed, as of the designated Funding Date, (i) the Revolving Line minus (ii) the amount of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit), minus
(iii) the FX Reserve, and minus (iv) the aggregate outstanding Advances (including any amounts used for Cash Management Services). 
  

 2 

									
	BORROWER	 		 	3PAR INC.
					
		 		 		 	By:	 	 
		 		 		 	Name:	 	
		 		 		 	Title:	 	

 For internal Bank use only 
  

							
	 LIBOR Pricing Date
	 	 LIBOR
	 	 LIBOR Variance
	 	 Maturity Date

		 		 	____%	 	

  

 3 

 Sample Notice of Conversion/Continuation 
 EXHIBIT C 
 FORM OF NOTICE OF CONVERSION/CONTINUATION

 3PAR INC. 
 Date:                                      
   
  

	TO:	SILICON VALLEY BANK 

 3003 Tasman Drive 
 Santa Clara, CA 95054 
 Attention: 
  

	RE:	Amended and Restated Loan and Security Agreement dated as of May 30, 2008 (as amended, modified, supplemented or restated from time to time, the “Loan
Agreement”), by and between 3PAR Inc. (“Borrower”), and Silicon Valley Bank (the “Bank”) 

 Ladies
and Gentlemen: 
 The undersigned refers to the Loan Agreement, the terms defined therein being used herein as therein defined, and hereby
gives you notice irrevocably, pursuant to Section 3.5 of the Loan Agreement, of the [conversion] [continuation] of the Credit Extensions specified herein, that: 
 1. The date of the [conversion] [continuation] is
                , 20        . 
 2. The aggregate amount of the proposed Credit Extensions to be [converted] is $             or [continued] is
$            . 
 3. The Credit Extensions are to be
[converted into] [continued as] [LIBOR] [Prime Rate] Credit Extensions. 
 4. The duration of the Interest Period for the LIBOR Credit
Extensions included in the [conversion] [continuation] shall be              months. 
 The undersigned, on behalf of Borrower, hereby certifies that the following statements are true on the date hereof, and will be true on the date of the proposed [conversion] [continuation], before and after giving
effect thereto and to the application of the proceeds therefrom: 
 (a) all representations and warranties of Borrower
stated in the Loan Agreement are true, accurate and complete in all material respects as of the date hereof; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified
or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date; and 
 (b) no Default or Event of Default has occurred and is continuing, or would result from such proposed [conversion] [continuation].

 [Signature page follows.] 

									
	BORROWER	 		 	3PAR INC.
					
		 		 		 	By:	 	 
		 		 		 	Name:	 	
		 		 		 	Title:	 	

 For internal Bank use only 
  

							
	 LIBOR Pricing Date
	 	 LIBOR
	 	 LIBOR Variance
	 	 Maturity Date

		 		 	____%	 	

  

 EXHIBIT D 
 COMPLIANCE CERTIFICATE 
  

			
	 TO: SILICON VALLEY BANK
	  	Date: ____________

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

									
	 Reporting Covenant
	  	 Required
	  	 Complies
	  	 
	Quarterly unaudited financial statements and Compliance Certificate	  	(a) Quarterly financial statements, as soon as available, and in any event no later than 45 days following the end of Borrower’s fiscal quarter and (b) as soon as available, but no later
than the earlier of (i) five (5) days after filing with the Securities Exchange Commission (“SEC”) or (ii) 50 days after each fiscal quarter or 90 days after each fiscal year end, the Borrower’s 10K, 10Q, and 8K reports.	  	Yes	  	No	  	N/A
					
	Annual operating budgets and projections (including income statements, balance sheets, and cash flow statements, each of the foregoing, by month) for the upcoming fiscal year	  	As updated, but no later than 45 days after FYE	  	Yes	  	No	  	N/A
					
	Annual financial statements certified by, and with an unqualified opinion of, independent CPA	  	Annually, no later than 90 days following the end of Borrower’s fiscal year	  	Yes	  	No	  	N/A
					
	Material Litigation*	  	Prompt	  	Yes	  	No	  	N/A
					
	Cash balance report	  	No later than 50 days following the end of Borrower’s fiscal quarter	  	Yes	  	No	  	N/A

  

	*	If yes, attached is a summary of the Material Litigation not previously disclosed by Borrower or any of its Subsidiaries. 

  

							
	 Financial Covenant
	  	 Required
	  	Actual	  	Complies
	Maintain on an applicable Quarterly Basis:	  		  		  	
	Minimum Tangible Net Worth	  	$70MM plus 50% of new net equity proceeds and 50% of quarterly profits	  	$____	  	Yes    No
	Minimum Quick Ratio	  	1.25:1.00	  	_____:1.0	  	Yes    No

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

									
	3PAR INC.	 		 	BANK USE ONLY
					
	By:	 	 	 		 	Received by:	 	 
	Name:	 		 		 		 	AUTHORIZED SIGNER
	Title:	 		 		 	Date:	 	 
		 		 		 		 	

									
		 		 		 	Verified:	 	 
		 		 		 		 	AUTHORIZED SIGNER
		 		 		 	Date:	 	 
				
		 		 		 	Compliance Status:         Yes   No

  

 2 

 Schedule 1 to Compliance Certificate 
 Financial Covenants of Borrower 
 Dated:
                     
 I. Tangible Net
Worth (Section 6.7(a)) 
 Required: $70,000,000 plus 50% of new net equity proceeds since Effective Date plus 50% of quarterly profits since Effective
Date 
 Actual: 
  

						
	A.	  	Aggregate value of total assets of Borrower and its Subsidiaries	  	$	______
	B.	  	Aggregate value of liabilities of Borrower and its Subsidiaries (including all Subordinated Indebtedness)	  	$	______
	C.	  	Aggregate value of goodwill of Borrower and its Subsidiaries	  	$	______
	D.	  	Aggregate value of intangible assets of Borrower and its Subsidiaries such as unamortized debt discounts and expenses, patents, trademarks, copyrights and research and development expenses
except prepaid expenses	  	$	______
	E.	  	Aggregate value of any reserves not already deducted from assets	  	$	______
	F.	  	50% of new net equity proceeds received by Borrower since Effective Date	  	$	______
	G.	  	50% of quarterly profits of Borrower and its Subsidiaries since Effective Date	  	$	______
	H.	  	Tangible Net Worth (line A minus line B minus line C minus line D minus line E plus line F plus line G)	  	$	______

 Is line H equal to or greater than $70,000,000 plus 50% of new net equity proceeds since Effective Date plus 50%
of quarterly profits since Effective Date? 
 _______ No, not in compliance
                                         
                       _________ Yes, in compliance 
 II. Quick Ratio (Section 6.7(b)) 
 Required: 1.25:1.00 
 Actual: 
  

						
	A.	  	Aggregate value of the unrestricted cash and cash equivalents of Borrower and its Subsidiaries	  	$	______
	B.	  	Aggregate value of 100% of the net billed accounts receivable of Borrower and its Subsidiaries	  	$	______
	C.	  	Aggregate value of short and long term investments	  	$	______
	D.	  	Quick Assets (the sum of lines A, B and C)	  	$	______
	E.	  	Aggregate value of Current Liabilities of Borrower and its Subsidiaries	  	$	______
	F.	  	Quick Ratio (line D divided by line E)	  		

 Is line F equal to or greater than 1.25:1:00? 
  

			
	_______ No, not in compliance	  	________ Yes, in compliance

 SCHEDULE A 
 DISCLOSURE SCHEDULE 
  

 2Fourth Supplemental Indenture dated as of May 19, 2008

 Exhibit 10.1 
 FOURTH SUPPLEMENTAL INDENTURE 
 THIS FOURTH SUPPLEMENTAL INDENTURE (this “Fourth Supplemental
Indenture”) dated as of May 19, 2008, among VELOCITY EXPRESS CORPORATION, a Delaware corporation (the “Company”), and WILMINGTON TRUST, as successor to WELLS FARGO BANK, N.A. (the “Trustee”), to the
INDENTURE, dated as of July 3, 2006, among the Company, the guarantors party thereto and the Trustee, pursuant to which the Company has issued and there remains outstanding $78,205,000 in aggregate principal amount of 12.0% Senior Secured Notes
due 2010 (the “Notes”), as amended by the First Supplemental Indenture, dated as of August 17, 2006, the Second Supplemental Indenture, dated as of December 22, 2006 and the Third Supplemental Indenture dated as
July 25, 2007 (as so amended by the First Supplemental Indenture, the Second Supplemental Indenture, and the Third Supplemental Indenture, the “Indenture”). 
 RECITALS 
 WHEREAS, the Company wishes to amend the Indenture to,

 (1) waive the requirements of Section 2.01(b)(ii) of the Indenture in order to permit the issuance of additional Notes (the
“Additional Notes”), in an amount up to $7,820,000.00, on a pro rata basis, to Noteholders who consent to this Fourth Supplemental Indenture (the “Consenting Noteholders”); 
 (2) permit the Company, at its option, until September 18, 2008 to redeem any and all outstanding Notes at the One Time Redemption Price (as defined
below) and to decrease the interest rate on and after the redemption date on the outstanding Notes by 125 basis points for each $10 million dollars of Equity Sale Proceeds used to make such redemption; 
 (3) provide for the distribution of the proceeds from the sale of certain assets pursuant to Section 4.12 of the Indenture; 
 (4) permit the issuance of four (4) year warrants to Consenting Noteholders, on a pro rata basis, which enable the Consenting Noteholders to
purchase up to fifteen percent (15%) of the issued and outstanding Common Stock of the Company in the aggregate; 
 (5) waive and amend
under Section 4.16A of the Indenture relating to the Noteholders’ Refinancing and Defaulted Financing Options; 
 (6) waive
existing financial covenants and substitute new financial covenants; and 
 (7) permit the Required Holders to designate two board members;

 WHEREAS, in consideration for such amendments and waivers, the Company is consenting to increase the interest rate on the Notes
from thirteen percent (13%) to eighteen (18%) per year (subject to reduction as set forth in paragraph 2 of the Second Allonge to Note annexed hereto) and permitting at the Noteholders’ option, one-half of the PIK interest to be paid
in registered common shares of the Company at VWAP, as defined herein; 

 WHEREAS, Sections 8.02(a) of the Indenture provides that, with the consent of Noteholders of at
least fifty percent (50%) in aggregate principal amount of the Notes (the “Requisite Consents”), the Company and the Trustee shall be entitled to execute supplemental indentures adding any provisions to or changing in any
manner or eliminating any provision of the Indenture or any Security Document or modifying the rights of such Holders (with certain exceptions as provided in Section 8.02(b) of the Indenture not relevant to this Fourth Supplemental Indenture
since each Holder affected has consented); 
 WHEREAS, the Company has solicited consents from Noteholders to approve the amendments
to the Indenture set forth herein (the “Proposed Amendments”); 
 WHEREAS, the Company has received, in form
acceptable to the Trustee, and delivered to the Trustee, the Requisite Consents to effect the Proposed Amendments under the Indenture; and 
 WHEREAS, all things necessary to make this Fourth Supplemental Indenture a valid agreement of the Company in accordance with its terms have been done. 
 NOW, THEREFORE, in consideration of the premises, it is mutually covenanted and agreed, for the equal and proportionate benefit of all Noteholders, as follows: 
 ARTICLE I 
 AUTHORIZATIONS

 1.1. Effectiveness and Effect 
 (a) This Fourth Supplemental Indenture shall become binding upon execution and effective upon the (i) satisfaction of each of the conditions set forth in Article IV, (ii) receipt and delivery of the
Requisite Consents to the Company and the Trustee, (iii) execution of this Supplemental Indenture and the Second Allonge in the form attached hereto as Exhibit A by the Company and the Trustee, (iv) issuance by the Company of the
Additional Notes on a pro rata basis to the nearest $1,000 to Noteholders who consent to this Fourth Supplemental Indenture, and (v) except with the consent of holders of a majority in aggregate principal amount of the Notes, the
accuracy and completeness of all statements, representations and warranties made in connection with this Fourth Supplemental Indenture or in any document delivered in connection herewith. Upon execution and delivery of this Fourth Supplemental
Indenture, the Indenture shall be modified, amended and supplemented in accordance with this Fourth Supplemental Indenture, and all the terms and conditions of both shall be read together as though they constitute one instrument, except that, in the
case of conflict, the provisions of this Fourth Supplemental Indenture will control. In the case of a conflict between the terms and conditions contained in the Notes and those contained in the Indenture, as modified, amended and supplemented by
this Fourth Supplemental Indenture, the provisions of the Indenture, as modified, amended and supplemented by this Fourth Supplemental Indenture, shall control. Each of the Indenture, as modified, amended and supplemented by this Fourth Supplemental
Indenture, and the Notes as amended by the Second Allonge are hereby ratified and confirmed, in all respects, and shall remain in full force and effect and shall bind every Noteholder. 
  

 -2- 

 (b) The Section headings in the Fourth Supplemental Indenture have been inserted for convenience and
reference only, are not to be considered a part hereof or thereof and shall in no way modify or restrict any of the terms or provisions hereof or thereof. 
 (c) On and after the date hereof, all references to the Indenture in the Indenture or in any agreement, document or instrument delivered in connection therewith or pursuant thereto shall be deemed to refer to the
Indenture as modified, amended and supplemented by this Fourth Supplemental Indenture. 
 ARTICLE II 
 WAIVER AND CONSENT 
 2.1. The
Noteholders hereby waive the conditions precedent to the issuing of the additional notes in Section 2.01(b)(ii) of the Indenture and consent to the issuance pro rata (based on the principal amount of Notes held by each Consenting
Noteholder on May 19, 2008 divided by $78,205,000) to the Consenting Noteholders of up to an additional $7,820,000 of Notes due 2010, so that an aggregate of up to $86,025,000 principal amount of Notes may be outstanding. 
 ARTICLE III 
 AMENDMENTS TO INDENTURE

 3.1. Definitions. SECTION 1.01 of the Indenture “Definitions” is amended to include the following
additional definitions in alphabetical order: 
 “Acceptable Refinancing” has the meaning set forth in Section 4.16A.

 “Base Compensation” has the meaning set forth in Exhibit D. 
 “China Transaction” means net proceeds from the sale or licensing of the Company’s technology for use in China. 
 “Consenting Noteholders” has the meaning set forth in the Recitals to the Fourth Supplemental Indenture. 
 “Consolidated Adjusted EBITDA” means, for any period, an amount determined for Borrowers on a consolidated basis equal to
(i) the sum, without duplication, of the amounts for such period of (a) Consolidated Net Income, plus (b) Consolidated Interest Expense, plus (c) provisions for taxes based on income, plus (d) total
depreciation expense, plus (e) total amortization expense, plus (f) other non-cash items reducing Consolidated Net Income (including, without limitation, liabilities resulting from trade/barter transactions, but excluding any
such non-cash item to the extent that it represents an accrual or reserve for potential Cash items in any future period or amortization of a prepaid Cash item that was paid in a prior period), less (ii) the sum, without duplication of
the amounts for such period of (a) other non-cash items increasing Consolidated Net Income for such period (including, without limitation, gains resulting from trade/barter transactions, excluding any such non-cash item to the extent it
represents the reversal of an accrual or reserve for potential Cash item in any prior period), plus (b) interest income, plus (c) other non operating income. 
  

 -3- 

 “Disclosed Sale” shall mean the sale for at least fifteen million dollars ($15,000,000)
of the Company’s operations described in a letter to the Noteholders dated this date. 
 “Fourth Supplemental
Indenture” shall mean the Fourth Supplement dated as of May 19, 2008 among the Company, the Subsidiary Guarantors named therein and the Trustee. 
 “LTM EBITDA” means the Company’s Consolidated Adjusted EBITDA calculated for the most recently ended four fiscal quarters. 
 “Office Depot Litigation” shall mean that certain litigation between the Company and Office Depot, Inc. pending in Delaware Superior
Court for Kent County, Delaware. 
 “One Time Redemption Price” means the par value of the Notes, plus any and all accrued
and unpaid interest on such Notes to but excluding the Redemption Date. 
 “Payment Proceeds” has the meaning set forth in
Section 4.12 (b). 
 “PIK Interest” has the meaning set forth in the Second Allonge. 
 “Remaining Proceeds” has the meaning set forth in Section 4.12 (b). 
 “Scanner Amount” means an amount of money which a majority of the Board of Directors, with the consent of at least one of the Noteholder
Directors, determines is necessary or desirable for the Company to use to support its program to lease or acquire scanners; provided that such amount shall not exceed $5.0 million and is permitted to be incurred (and is incurred) pursuant to
Section 4.09(i). 
 “Trading Day” means (i) if the relevant stock or security is listed or admitted for trading on
The New York Stock Exchange, Inc., the Nasdaq Global Market, the Nasdaq Capital Market or any other national securities exchange, a day on which such exchange is open for business; (ii) if the relevant stock or security is quoted on a system of
automated dissemination of quotations of securities prices, a day on which trades may be effected through such system; or (iii) if the relevant stock or security is not listed or admitted for trading on any national securities exchange or
quoted on any system of automated dissemination of quotation of securities prices, a day on which the relevant stock or security is traded in a regular way in the over-the-counter market and for which a closing bid and a closing asked price for such
stock or security are available. 
 “Velocity Technology Sale” means any sale or license in a single transaction for at
least ten million dollars ($10,000,000) of the Company’s technology and standard operating procedures for use outside North America. 
 “VWAP” on a Trading Day means the greater of (i) the volume weighted average price of the Common Stock for such Trading Day and the previous four days (five day VWAP) as reported by Bloomberg Financial Markets or, if
Bloomberg Financial Markets is not then reporting such prices, by a comparable reporting service of national reputation selected by the Required Holders and reasonably satisfactory to the Company; and (ii) $.88, being the greater of the closing
price of the Common Stock on the Trading Date on which this Agreement is executed and delivered or the Trading Date immediately prior to the date of this Agreement. If VWAP cannot be calculated for the Common Stock on such Trading Day on any of the
foregoing bases, then the Company shall submit such calculation to an independent investment banking firm of 

  

 -4- 

 
national reputation reasonably acceptable to the Noteholders, and shall cause such investment banking firm to perform such determination and notify the
Company and the Investors of the results of determination no later than two (2) Business Days from the time such calculation was submitted to it by the Company. All such determinations shall be appropriately adjusted for any stock
dividend, stock split or other similar transaction during such period. 
 3.2 “Warrant” Definition. The definition of
“Warrant” in Section 1.01 of the Indenture is hereby amended and restated in its entirety as follows: 
 “Warrant” or “Warrants” means collectively each of those certain warrants (i) originally issued to the Initial Purchasers on the Issue Date together with the Notes as comprising the Units and
(ii) issued pursuant to the Fourth Supplemental Indenture. 
 3.3 Optional Redemption. Section 3.01 of the Indenture
(“Optional Redemptions”) is hereby amended to add a new Section 3.01(e) as follows: 
 3.01(e) At any time prior to
September 18, 2008, the Company may, at its option, on any one or more occasions, redeem any or all of the Notes against payment of the One-Time Redemption Price from any Equity Sale Proceeds. If the Company effects any redemption pursuant to
this paragraph, the interest rate on the Notes outstanding following such redemption will be decreased on and after the redemption date by one hundred and twenty five basis points (1.25%) for each $10 million in aggregate principal amount of
Notes actually redeemed pursuant to this paragraph; provided that the interest rate shall not be decreased to a rate of less than 13.0% per annum by reason of this paragraph. 
 3.4. Asset Sales. Section 4.12. of the Indenture (“Limitation on Asset Sales”) is hereby amended and restated in its
entirety as follows: 
 SECTION 4.12. Limitation on Asset Sales. 
 Pending the final application of any such Net Proceeds, the Company may temporarily reduce the revolving Indebtedness included among the Senior Facility Obligations or otherwise invest such Net Proceeds in Cash Equivalents. 
 (a) Any Net Proceeds from Asset Sales (other than Velocity Technology Sale and Disclosed Sale) that are not applied or invested as provided in the first
sentence of this Section, or otherwise used as a permanent reduction of the Senior Facility Obligations, will be deemed to constitute “Excess Proceeds”. The Company may, subject to the other terms of this Indenture, use any of the
Excess Proceeds equal to or less than $1,000,000 in the aggregate, for any purpose not prohibited by the Indenture. On any date that the aggregate amount of Excess Proceeds under this Indenture exceeds one million dollars ($1,000,000) (an
“Asset Sale Offer Trigger Date”), the Company will be required to make an offer to all Holders of Notes issued under this Indenture (an “Asset Sale Offer”) to purchase the maximum principal amount of Notes and, if the Company is
required to do so under the terms of any other Indebtedness on a pro rata basis with the Notes that may be purchased out of the Excess Proceeds, at a purchase price in cash in an amount equal to one hundred percent (100%) of the principal
amount thereof plus accrued and unpaid interest, if any, thereon, to the date of purchase in accordance with the procedures set out in this Indenture. To the extent that the aggregate amount of Notes (and any Other Indebtedness subject to such Asset
Sale Offer) tendered pursuant to such Asset Sale Offer is less than the Excess Proceeds, the Company may, subject to the other terms of this Indenture, 

  

 -5- 

 
use any remaining Excess Proceeds for any purpose not prohibited by this Indenture. If the aggregate principal amount of Notes surrendered by Holders thereof
in connection with any Asset Sale Offer exceeds the amount of Excess Proceeds, the Trustee shall select the Notes to be purchased on a pro rata basis; provided that no Note shall be repurchased in part if the remaining balance thereof would be less
than one thousand dollars ($1000). Upon completion of the offer to purchase made under this Indenture, the amount of Excess Proceeds that was the subject of such offer to purchase shall be reset at zero. 
 (b) 
 (i) One hundred percent (100%) of
the Net Proceeds of any recovery from the Office Depot Litigation, 
 (ii) one hundred percent (100%) of the Net Proceeds from the first
ten million dollars ($10,000,000) and seventy percent (70%) of Net Proceeds in excess of ten million dollars ($10,000,000) from any Velocity Technology Sale, and 
 (iii) one hundred percent (100%) of the Net Proceeds from the first ten million dollars ($10,000,000) and seventy percent (70%) of Net Proceeds in excess of ten million dollars ($10,000,000) from the
Disclosed Sale, the Net Proceeds described in clauses (i) (ii) and (iii) (the “Payment Proceeds”). 
 shall, to the extent required
by the Senior Facility Agent, be applied by the Company to permanently reduce the Senior Facility Obligations (a “Permanent Reduction”) with the remaining proceeds (the “Remaining Proceeds”) made available to the
Company. The Company may, subject to the other terms of this Indenture, use any of the Remaining Proceeds for any purpose not prohibited by this Indenture (other than a Restricted Payment). If the Senior Facility Agent does not require such
mandatory reduction or otherwise waives the application of any Payment Proceeds as a permanent reduction on the Senior Facility Obligations, the Company may use such Payment Proceeds for its scanner lease and purchase program (“Scanner
Use”) in an amount not to exceed the Scanner Amounts. To the extent any Payment Proceeds are not used as a Permanent Reduction or Scanner Use, the Company shall be required to use such Payment Proceeds to make an Asset Sale Offer to all
Holders of Notes issued under this Indenture to purchase the maximum principal amount of Notes and, if the Company is required to do so under the terms of any other Indebtedness on a pro rata basis with the Notes that may be purchased out of the
Payment Proceeds, at a purchase price in cash in an amount equal to one hundred percent 100% of the principal amount thereof plus accrued and unpaid interest, if any, thereon, to the date of purchase in accordance with the procedures set out in this
Indenture. To the extent that the aggregate amount of Notes (and any Other Indebtedness subject to such Asset Sale Offer) tendered pursuant to such Asset Sale Offer is less than the Payment Proceeds, the Company may, subject to the other terms of
this Indenture, use any of the Payment Proceeds for any purpose not prohibited by this Indenture. If the aggregate principal amount of Notes surrendered by Holders thereof in connection with any Asset Sale Offer exceeds the amount of Payment
Proceeds, the Trustee shall select Notes to be purchased on a pro rata basis; provided that no Note shall be repurchased in part if the remaining balance thereof would be less than $1,000. No reduction of the Senior Facility Obligations shall
adversely affect the ability of the Company to borrow the Scanner Amounts subject to the conditions for such borrowing in the definition thereof. 
  

 -6- 

 3.5. Refinancing and Defaulted Financing Options in Favor of Holders. Section 4.16A.
of the Indenture (“Refinancing and Defaulted Financing Options in Favor of Holders”) is hereby amended and restated in its entirety as follows: 
 SECTION 4.16A. Refinancing and Defaulted Financing Options in Favor of Holders. 
 The Noteholders hereby consent to any
refinancing of Senior Facility Obligations provided that (a) the amount to be refinanced does not exceed $11.5 million plus the Scanner Amount, (b) the rate of interest (not including any default rate or PIK interest) does not
exceed LIBOR plus 800 basis points (the “Acceptable Refinancing”) and (c) the final maturity date of any facility shall be the later of (i) the final maturity date of the Senior Facility Obligations or
(ii) May 31, 2010. In the event Company desires to refinance the Senior Facility Obligations in a manner other than an Acceptable Refinancing, then in that event, the Company shall afford the Noteholders, by delivery of written notice to
the Trustee (the “Refinancing Notice”) of such proposed refinancing (i) setting forth all of the material terms and conditions for such proposed refinancing; (ii) providing a reasonably detailed description of the
procedures to be followed by such Holders to exercise their rights under this Section 4.16A(a) and (iii) attaching or enclosing a copy of this Section 4.16A(a), and the Holders shall have, a five (5) day period (subject to
earlier termination effective immediately upon the Holders’ delivery of written notice to the Company indicating their intention not to pursue any such option) after receipt by the Holders of such notice (the “Refinance Option
Period”) during which the Holders shall have the right to provide such refinancing to the Company on substantially the same terms and conditions and in any event on terms and conditions at least as favorable to the Company as those set
forth in the Refinancing Notice. Each Noteholder who desires to participate in such refinancing shall deliver to the Company, prior to the end of the Refinance Option Period, a notice electing to participate in such refinancing and stating the
maximum principal amount of such refinancing such Noteholder is willing to fund. The Holders shall not be permitted to participate in such refinancing unless the Company receives during the Refinance Option Period notices from Holders electing to
fund an amount at least equal to the full amount of the refinancing described in the Refinancing Notice (a “Qualified Notice”) (which notice may be signed and delivered in counterparts). During the Refinance Option Period (and if
the Holders deliver a Qualified Notice, thereafter until the consummation of such refinancing), the Company shall provide such cooperation and information as such Holders that have delivered the Qualified Notice, or any of them, may reasonably
request in connection with their evaluation of such refinancing. If the Holders deliver a Qualified Notice, then the Holders who delivered such notice (the “Participating Holders”) shall enter into definitive documentation for such
facility with the Company and shall be prepared to fund any such facility pursuant to the terms thereof (subject to the terms and conditions for the closing of such financing), and such financing shall be provided by the respective Participating
Holders in proportion to the amount of financing or refinancing each of them committed to fund in the Qualified Notice or in such other proportion as such Holders shall agree. If the Holders fail to deliver a Qualified Notice during the Refinance
Option Period, then the Company may consummate such financing or refinancing during the forty-five (45) day period after the expiration of the Refinance Option Period on the terms and conditions described to the Holders in the Refinancing
Notice. If the Company does not consummate such financing or refinancing during such forty-five (45) day period or if the Company proposes to modify any material terms of such financing or refinancing, then the Company shall not consummate such
financing or refinancing without again following the procedures provided in this Section 4.16A(a). The rights provided by this Section 4.16A(a) shall apply to any subsequent Obligations of the Company and/or its Restricted Subsidiaries
incurred as a result of the entry into or later refinancing or replacement 

  

 -7- 

 
of the Senior Facility Documents as referred to in the first sentence of this Section 4.16A(a), and the rights of the Holders under this
Section 4.16A(a) as to any particular financing or refinancing shall not be affected by the failure of the Holders to exercise the right provided by this Section 4.16A(a) with respect to any preceding financing or refinancing. 

3.6 Conditions and Limitations Regarding Senior Facility Obligations. Section 4.16(c) of the Indenture (the “Conditions and
Limitations Regarding Senior Facility Obligations”) is hereby amended and restated in its entirety as follows: 
 (c) The Intercreditor
Agreement provides that the maximum amount of Senior Facility Obligations permitted thereunder shall be permanently reduced by all amounts applied from time to time to repay principal of the Senior Facility Obligations (other than pursuant to any
initial or subsequent refinancing in whole or in part), which are accompanied by a permanent reduction in the revolving credit commitment under the Senior Facility Agreement, and the Company and each Restricted Subsidiary agrees that as between the
Company and the Restricted Subsidiaries, on one hand, and the Trustee and the Noteholders, on the other hand, the amount of the Senior Facility Obligations that are permitted to be incurred under Section 4.09 and Section 4.16 shall be
permanently reduced by any such reduction in the maximum amount of Senior Facility Obligations permitted under the Intercreditor Agreement. 
 3.7. Financial Covenants. Sections 3.11, 4.21 and 4.22 of the Indenture are deleted. A new Section 4.21 “Financial Covenants” is added to the Indenture immediately following Section 4.20 and reads as
follows: 
 SECTION 4.21 Financial Covenants 
 The Company and its Restricted Subsidiaries shall maintain the financial covenants set forth on Exhibit B annexed hereto, which are made a part of the Indenture. 
 3.8. Consent of Noteholders. The lead in clause to Section 8.02(b) is amended and restated as follows: 
 (b) However, no modification or amendment may, without the consent of a two-thirds (2/3rds) majority of the Holders of the then outstanding balance of notes affected thereby, 
 3.9. Warrants. A new Article 13 “Warrants” is added to the Indenture immediately following Article 12 and reads as
follows: 
 ARTICLE 13 Warrants. 
 (a) The Company issued certain Common Stock Purchase Warrants to the Noteholders in connection with the original issuance of the Notes. The Company agrees to modify all Warrants held by Consenting Noteholders to have an exercise price of
$1.35 per share and to modify anti-dilution protections for issuances based on price pursuant to the Amendment Agreement annexed hereto as Exhibit E. 
 (b) As additional consideration for entering into this Fourth Supplemental Indenture, the Company agrees to issue to each Consenting Noteholder its pro rata share (based on the principal amount of Notes held by
each Consenting Noteholder on May 19, 2008 divided by $78,205,000) of four year Warrants to purchase 433,855 shares of the Common Stock of the Company (representing 15.0% of the issued and outstanding shares of Common Stock of the Company as of
the date hereof) on the terms and in the form of Exhibit F annexed hereto. 
  

 -8- 

 (c) Nasdaq. The issuance and amendment of the Warrants provided for in (a) and
(b) above, the issuance of the shares underlying such Warrants and the issuance of Common Stock in payment of PIK Interest under the terms of the Notes as amended by the allonge annexed hereto is subject to the filing of an additional listing
application for such shares with Nasdaq. The Company will promptly file such application after the date hereof and use commercially reasonable efforts to cause such shares to be approved for listing by Nasdaq as promptly as practical. If for any
reason Nasdaq does not agree to approve any or all of such shares for listing, the Company will either (i) schedule a meeting of shareholders and cause its shareholders to approve the issuance of such shares or (ii) issue to the Consenting
Noteholders the shares and/or warrants to purchase shares that are approved for listing and negotiate in good faith with the Consenting Noteholders to provide them with modified or alternative consideration which has reasonably equivalent value to
the shares or warrants which can not be issued without approval by the shareholders of the Company. 
 3.10. Directors. A new
Article 14 “Director” is added to the Indenture immediately following Article 13 and reads as follows: 
 ARTICLE 14
Director. 
 (a) The Required Holders (the “Director Designator”) shall have the right to designate up to two
directors (the “Noteholder Directors”) to be appointed to the Board promptly following such designation, and the Company shall cause such Noteholder Directors to be duly appointed or elected to the Board; provided,
however, that such directors must be (a) reasonably qualified to serve as a Board member and (b) agree to and be qualified to serve as a member of the audit committee of the Board, in full compliance with all SEC and Nasdaq
requirements for such service. The Company agrees not to seek to fill the current vacancy in the sixth Board seat. If the Director Designator agrees to filling the open vacancy (leaving a Board of six directors), only one of the designees need to
serve and be qualified for service on the Audit Committee (but must otherwise satisfy Nasdaq and SEC standards for service and independence). Each Noteholder Director shall be provided with reasonable and customary insurance and have the benefit of
customary indemnification and exculpation agreements with the Company. 
 (b) The Company agrees to cause (within five business days of the
date that a Noteholder Director becomes a director pursuant to paragraph (a) above) one of the Noteholder Directors to be engaged as a consultant to the Company pursuant to the terms of a consulting agreement containing terms and conditions
that are commercially reasonable to be mutually agreed upon by the Company and the Director Designator. 
 (c) In the event that either of
the Noteholder Directors resigns or is removed from office, the Company agrees to take all necessary actions to install, in lieu of such person, such new person on the Board as may be designated by the Director Designator, in accordance with Section
(a) above. 
 (d) Except for actions as may be taken by the Company’s preferred or common shareholders under existing agreements or
without the consent of the Company, the Company agrees not to take any action, whether at any annual or special meeting of the Company’s stockholders or in connection with any other to increase the size of the Board from its current size of six
members or reduce the size of the Board to less than two directors without the affirmative consent of the Director Designator. 
  

 -9- 

 (e) The Company agrees to take all actions necessary or advisable such that, the Director Designator is
permitted to designate a director to the Board, at least one Noteholder Director shall be a member of each committee of the Company’s Board and the Board of each Subsidiary of the Company (and each committee thereof). 
 3.11. Compensation. The Company makes the undertakings in Exhibit D “Compensation of Vincent Wasik”. 
 3.12. Senior Obligations. Section 4.09(i) is amended and restated in its entirety as follows: 
 “the incurrence or existence of no more than $11.5 million (plus the Scanner Amount) in aggregate principal amount of Indebtedness constituting, at
any time on or after the Issue Date (but only as and when permitted to be incurred thereafter in accordance with all applicable conditions and limitations contained in Section 4.16 (the “Applicable Facility Cap”), Senior Facility
Obligations, less, without duplication, (i) 50% of the aggregate amount of any repayments of term Indebtedness under Senior Facility Obligations, (ii) all repayments of revolving credit Indebtedness under such Senior Facility Obligations
effected with a corresponding commitment reduction under such Senior Facility Obligation, and (iii) 100% of the Net Proceeds of Asset Sales used to repay Indebtedness under Senior Facility Obligations; 
 3.13 Representations and Warranties. The Company makes the representations and warranties to the Company set forth in Exhibit C annexed
hereto. 
 ARTICLE IV 
 CONDITIONS PRECEDENT 
 4.1 Conditions Precedent. The effectiveness of the amendments to the Indenture contemplated by
Article III are subject to the following: 
 (a) delivery to the Noteholders and the Trustee of the Waiver and Eleventh Amendment in the form
of Exhibit G hereto (the “First Lien Amendment”), duly executed by the holders of the requisite principal amount of indebtedness thereunder, and the satisfaction of all conditions to effectiveness thereunder; and 
 (b) delivery to the Noteholders of a Perfection Certificate in the form attached hereto as Exhibit H and continued compliance with the provisions of this
Fourth Supplemental Indenture. 
 (c) delivery to the Trustee of (i) and Officer’s Certificate; (ii) and Opinion of Counsel;
and (iii) such other documents, certificates and consents as Trustee may reasonably request pursuant to the terms of the Indenture. 
  

 -10- 

 ARTICLE V 
 MISCELLANEOUS 
 5.1. Counterparts. This Fourth Supplemental Indenture may be executed in
several counterparts, each of which shall be an original and all of which shall constitute the same instrument. 
 5.2. Conflict with the
Trust Indenture Act. If any provision of this Fourth Supplemental Indenture limits, qualifies or conflicts with any provision of the Trust Indenture Act (the “TIA”) that is required under the TIA to be part of and govern any
provision of this Fourth Supplemental Indenture, the provision of the TIA shall control. If any provision of this Fourth Supplemental Indenture modifies or excludes any provision of the Fourth Supplemental Indenture that may be so modified or
excluded, the provision of the TIA shall be deemed to apply to the Indenture as so modified or to be excluded by this Fourth Supplemental Indenture, as the case may be. 
 5.3. Successor; Benefits of Fourth Supplemental Indenture, etc. All agreements of the Company in this Fourth Supplemental Indenture shall bind their respective successors. Nothing in this Fourth Supplemental
Indenture or the Notes, express or implied, shall give to any Person, other than the parties hereto and thereto and their respective successors hereunder or thereunder and the Holders of the Notes, any benefit of any legal or equitable right, remedy
or claim under the Indenture, this Fourth Supplemental Indenture or the Notes. 
 5.4. Certain Duties and Responsibilities of the
Trustee. In entering into this Fourth Supplemental Indenture, the Trustee shall be entitled to the benefit of every provision of the Indenture relating to the conduct or affecting the liability or affording protection to the Trustee, whether or
not elsewhere herein so provided. 
 5.5. Expenses. Notwithstanding anything set forth in the Indenture to the contrary, the Company
shall reimburse the Trustee for all reasonable out-of-pocket cost and expenses incurred in connection with this Fourth Supplemental Indenture. 
 5.6. Governing Law. The law of the State of New York shall govern and be used to construe this Fourth Supplemental Indenture. 
 5.7 Ratification. Except as specifically amended above, the Indenture is and shall continue to be in full force and effect and is hereby ratified and confirmed in all respects. Each Guarantor hereby acknowledges that it has read this
Fourth Supplemental Indenture and consents to the terms hereof and further confirms and agrees that, notwithstanding the effectiveness of this Supplemental Indenture, its obligations under its Guarantee shall not be impaired or affected and such
Guarantee is, and shall continue to be, in full force and effect and is hereby confirmed and ratified in all respects. 
 5.8 Further
Assurances. The Company and each of its subsidiaries agree that, from time to time upon the request of the Trustee or any Noteholder, it will promptly execute and deliver such further documents and do such other acts and things as the Trustee or
such Noteholder may request in order to affect the purposes of any Security Document. 
 [Signature page follows] 
  

 -11- 

 IN WITNESS WHEREOF, the parties have caused this Fourth Supplemental Indenture to be duly executed as of
the date first written above. 
  

			
	THE COMPANY
	
	VELOCITY EXPRESS CORPORATION

		
	By:	 	 /s/ Mark T. Carlesimo

		 	Mark T. Carlesimo
		 	Secretary and General Counsel

  

	
	THE SUBSIDIARY GUARANTORS
	
	VELOCITY EXPRESS, INC.
	
	VXP MID-WEST, INC.
	
	VELOCITY SYSTEMS FRANCHISING CORPORATION, INC.
	
	VELOCITY EXPRESS LEASING, INC.
	
	VXP LEASING MID-WEST, INC.
	
	CD&L, INC.
	
	CLAYTON/NATIONAL COURIER SYSTEMS, INC.
	
	CLICK MESSENGER SERVICE, INC.
	
	OLYMPIC COURIER SYSTEMS, INC.
	
	SECURITIES COURIER CORPORATION
	
	SILVER STAR EXPRESS, INC.

  

			
	By:	 	 /s/ Mark T. Carlesimo

	Name:	 	Mark T. Carlesimo
	Title:	 	Secretary
	
	THE TRUSTEE
	
	WILMINGTON TRUST COMPANY, as Trustee

		
	By:	 	 /s/ Suzanne MacDonald

	Name:	 	Suzanne MacDonald
	Title:	 	Vice President

  

 -12- 

 EXHIBIT A 
 SECOND ALLONGE TO NOTE 
 Second Allonge to one in the series of the 12.0% Senior Secured Notes
due 2010, dated as of July 3, 2006 (the “Note”) in the aggregate principal amount of $78,205,000, issued by VELOCITY EXPRESS CORPORATION. From and after the date of this Second Allonge: 
 1. The interest rate of the Note shall be 18% per annum effective as of the date hereof. 
 2. Notwithstanding the foregoing, if the Company effects a redemption of the Notes pursuant to Section 3.01(e) of the Indenture, then
the interest rate on the Note shall decrease effective on and after the date of redemption, by one hundred and twenty five basis points (1.25%) for every $10 million of aggregate principal amount of Notes actually redeemed by the Company;
provided that the interest rate shall not be decreased to a rate of less than 13.0% per annum by reason of this paragraph 
 3. The Company will pay interest hereon (except Defaulted Interest, which shall be payable to Persons who are registered Holders on any earlier date of written demand therefore) to the Persons who are registered
Holders at the close of business on May 31 or November 30 next preceding the Interest Payment Date (whether or not a Business Day). All interest payments in 2008 shall accrue and shall be paid on each Interest Payment Date by addition of
such amount to the principal amount outstanding under this Note (“PIK Interest”). Interest payments in 2009 shall accrue and be paid 50% in cash and 50% in PIK Interest on each Interest Payment Date. All interest payments in 2010
shall accrue and be paid in cash. At the option of the Noteholder on at least five (5) business days prior written notice, fifty percent (50%) of the PIK Interest may be paid in registered shares of Common Stock the Company based on the
VWAP measured as of the Interest Payment Date. The Company shall deliver such shares in payment of PIK Interest within ten (10) business days after the relevant Interest Payment Date. Holders must surrender Notes to a Paying Agent to collect
principal payments. The Company will pay principal and non PIK Interest in money of the United States of America that at the time of payment is legal tender for payment of public and private debts. Non PIK Interest may be paid by check mailed to the
Noteholder entitled thereto at the address indicated on the register maintained by the Registrar for the Notes. Notwithstanding the foregoing, no Holder shall be entitled to request that PIK Interest be paid in shares of Common Stock of the Company
if the receipt of such shares would cause the Holder to become a beneficial owner of 19.9% or more of the Common Stock of the Company. 
 Dated: June 6,
2008. 
  

			
	VELOCITY EXPRESS CORPORATION, as Issuer
		
	By:	 	 /s/ Mark T. Carlesimo

	Name:	 	Mark T. Carlesimo
	Title:	 	Secretary and General Counsel

  

 -13- 

 EXHIBIT B 
 FINANCIAL COVENANTS 
 A. Minimum Cash. 
 The Company and the Subsidiary Guarantors shall maintain at all times cash and Cash Equivalents which are subject to the perfected Lien created in favor
of the Trustee for the benefit of the Holders pursuant to the Security Documents (in each case, free of Liens other than (i) Security Document Liens as aforesaid, (ii) rights of setoff of the applicable depository bank or securities
intermediary, and (iii) the Senior Lien as, when and to the extent applicable pursuant to the Intercreditor Agreement) of not less than $3.0 million. 
 B. Minimum Cash and Accounts Receivable. 
 The Company and the Subsidiary Guarantors shall maintain at
all times cash, Cash Equivalents and Qualified Accounts Receivable which are subject to the perfected Lien created in favor of the Trustee for the benefit of the Holders pursuant to the Security Documents (in each case, free of Liens other than
(i) Security Document Liens as aforesaid, (ii) rights of setoff of the applicable depository bank or securities intermediary, and (iii) the Senior Lien as, when and to the extent applicable pursuant to the Subordination Agreement) of
not less than $26 million. 
 C. Minimum Quarterly EBITDA 
 The Company shall not fail to achieve LTM EBITDA, measured on a quarterly basis, of at least the required amount set forth in the following table for the
applicable period set forth opposite thereto: 
  

				
	 Applicable
Amount
	  	 Applicable Period

	$	(2,750,000)	  	Quarter ended June 2008
	$	(709,000)	  	Quarter ended September 2008
	$	3,257,000	  	Quarter ended December 2008
	$	6,894,000	  	Quarter ended March 2009
	$	8,260,000	  	Quarter ended June 2009
	$	9,182,000	  	Quarter ended September 2009
	$	10,260,000	  	Quarter ended December 2009
	$	10,260,000	  	Quarter ended March 2010

 The Company shall deliver to the Trustee
via and Officer’s Certificate and each Noteholder a detailed computation of its LTM EBITDA no later than the 30th calendar day following the
end of each fiscal quarter set forth above. Notwithstanding the forgoing, any Noteholder may elect by written notice to the Company to not receive such information until such information is publicly disclosed by the Company. 
 D. Driver Accounts Payable 
 The
Company and its Restricted Subsidiaries shall cause all amounts due to its independent contractor drivers to be paid on a timely basis in all material respects. 
  

 -14- 

 EXHIBIT C 
 REPRESENTATIONS 
 The Company represents and warrants to the Consenting Noteholders as follows: 
 (i) The Company has been duly incorporated and is validly existing as a corporation in good standing under the laws of its jurisdiction of incorporation
with corporate power and authority to own, lease and operate its properties and to conduct its business as described in the Company’s annual and periodic filings with the SEC and to execute, deliver and perform its obligations under the Fourth
Supplemental Indenture. The Company has all requisite corporate power and authority to make and consummate the Consent Solicitation in accordance with their terms. 
 (ii) The solicitation of the Consents and the consummation of the transactions contemplated in the Indenture Supplement have been duly authorized by all necessary corporate action on the part of the Company, except to
the extent that Nasdaq determines that shareholder approval is required for issuance of shares of its common stock in payment of the notes or upon issuance of the Warrants being issued or amended hereunder. 
 (iii) The Indenture Supplement has been duly authorized, executed and delivered by the Company. The Indenture constitutes, and the Indenture Supplement
when duly authorized, executed and delivered by the trustee thereunder, will constitute, a valid and binding obligation of the Company, enforceable against the Company in accordance with its terms. 
 (iv) The Notes have been duly authorized by the Company and constitute valid and binding obligations of the Company entitled to the benefits of the
Indenture (as amended by the Indenture Supplement), and enforceable against the Company in accordance with their terms. 
 (v) (A) The
solicitation of the Consents, (B) the effectuation of the Indenture Supplement, (C) the execution, delivery and performance by the Company of the Indenture Supplement, and (D) the consummation by the Company of the transactions
described in the Indenture Supplement and compliance with the terms herein or therein (all of the foregoing, collectively, the “Transactions”), in each case, (x) do not and will not result in any violation of the charter or
by-laws or similar organizational documents of the Company or any of its subsidiaries, (y) do not and will not conflict with, or result in a breach or violation of any of the terms or provisions of, or constitute an event of default (or an
event which with notice or lapse of time or both would become an event of default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, or result in the creation or imposition of any lien, charge or
encumbrance upon any property or assets of the Company or any of its subsidiaries under, (a) any contract, indenture, mortgage, lease or other agreement, known to such counsel, to which the Company or any of its subsidiaries is a party or by
which any of them may be bound or to which any of its properties or assets are bound or affected or (b) any existing applicable law, rule or regulation, or any judgment, order or decree known to such counsel of any government, governmental or
regulatory instrumentality or agency or court, domestic or foreign, having jurisdiction over the Company, any of its subsidiaries 

  

 -15- 

 
or any of their properties or assets and (2) complies and will comply in all material respects with all applicable laws, rules and regulations of any
government or governmental or regulatory instrumentality of agency, including, without limitation, the Exchange Act, state takeover laws and Regulations T, U and X promulgated by the Board of Governors of the Federal Reserve System. 
 (vi) None of the Transactions nor the execution, delivery and performance of the Indenture Supplement by the Company, and the consummation of the
transactions contemplated hereby, require or will require any consent of, approval of, waiver by, license or authorization from, or permit of, or other action by or filing or registration with or notification to, any governmental or regulatory
agency by the Company or any of its subsidiaries except for filings with the Securities and Exchange Commission, the Nasdaq Stock Market and any state securities filings. 
 (vii) To the best knowledge of the Company, no injunction, restraining order or denial of any application for approval has been issued or proceedings, litigation or investigation initiated or threatened with respect
to the Transactions by or before any governmental or regulatory agency, or any court. 
 (viii) Assuming that each of the Noteholders is an
institutional accredited investor, the securities of the Company being issued in the Transactions are not required to be registered pursuant to the Securities Act of 1933, as amended, and the rules and regulations of the Securities and Exchange
Commission thereunder. 
 (ix) The Security Documents create a valid security interest in favor of the Trustee and the Noteholders in the
Collateral in which each of the Company and its subsidiaries parties thereto has rights only as and when such rights are acquired and a valid security interest may be created under Article 9 of the New York. 
 (x) The Indenture Supplement does not, of itself, adversely affect the validity under the UCC of the security interest of the Trustee and the Noteholders
(the “Secured Party”) in that part of the collateral described in the Security Agreement in which the Grantors have rights in which a valid security interest may be created under Article 9 of the UCC (the “UCC
Collateral”) and after giving effect to the Indenture Supplement, Secured Party’s security interest in the UCC Collateral will be a valid security interest under Article 9 of the UCC to the same extent that it was a valid security
interest immediately before the effectiveness of the Indenture Supplement. 
 (xi) The Indenture Supplement does not, of itself, adversely
affect perfection of Secured Party’s security interest under the UCC in that part of the UCC Collateral in which, immediately before the effectiveness of the Indenture Supplement, Secured Party had a perfected security interest by virtue of the
filing of the Financing Statement in the Office of the Secretary of State of the State of Delaware (the “Filing Collateral”) and after giving effect to the Indenture Supplement, Secured Party’s security interest in such Filing
Collateral will be a perfected security interest under Article 9 of the UCC to the same extent that it was a perfected security interest immediately before the effectiveness of the Indenture Supplement. 
  

 -16- 

 (xii) For that part of the UCC Collateral that constitutes “certificated securities” within the
meaning of Section 8-102(a)(4) of the UCC (“the Pledged Securities”), the Indenture Supplement does not, of itself, adversely affect perfection of Secured Party’s security interest under the UCC in the Pledged Securities
and after giving effect to the Indenture Supplement, Secured Party’s security interest in such Pledged Securities will be a perfected security interest under Article 9 of the UCC to the same extent that it was a perfected security interest
immediately before the effectiveness of the Indenture Supplement. 
  

 -17- 

 EXHIBIT D 
 COMPENSATION 
 Vincent Wasik’s base compensation shall be $600,000 per annum (the “Base
Compensation”). Until either (i) the Notes are repaid or refinanced in their entirety in cash (or, with the consent of the Noteholders, other property) or acquired by the Company, or (ii) the Company’s LTM EBITDA exceeds $20
million, Mr. Wasik will not receive any additional compensation; provided however, upon the closing of a China Transaction and with the approval of at least one of the Noteholder Directors. Mr. Wasik may be paid such
reasonable additional compensation or fees as are approved by the Board (including the Noteholder Directors) at that time. For purposes of this clause, compensation to Mr. Wasik shall include compensation to Mr. Wasik’s affiliates but
does not include amounts reimbursed to an affiliate of Mr. Wasik for rent and other administrative expenses consistent with present practices, or with such modifications as are consented to by the Noteholder Director. 
  

 -18- 

 EXHIBIT E 
 AMENDMENT TO WARRANT FOR THE PURCHASE 
 OF 
 SHARES OF COMMON STOCK 
 This Amendment to Warrant, entered into as of this 19th day of
May, 2008, amends the terms of a Warrant for the Purchase of Shares of Common Stock issued on or about July 3, 2006 by Velocity Express Corporation to             , whose
address is              (“Holder”). The Warrant being amended by this Amendment to Warrant, as further described on Exhibit A, was originally issued by Velocity
Express Corporation, a Delaware corporation (the “Company”) in connection with an offering of Units, where each Unit was comprised of a Warrant and $1,000 aggregate principal amount of the Company’s 12% Senior Secured Notes due 2010
(the “Notes”). Immediately upon issuance, the Warrant became separately transferable from the Notes that, together with the Warrant, comprised one or more Units. 
 The Holder represents and warrants to the Company that, as of this date, it remains the beneficial owner record of the Notes and the Warrant described on
Exhibit A. The Holder as of this date has consented to the Company and the Trustee of the Indenture under which the Notes were issued entering into a Fourth Supplement Indenture (the “Fourth Supplemental Indenture”). This Amendment
to Warrant is being given to the Holder in partial consideration for its willingness to enter into the Fourth Supplemental Indenture. 
 Accordingly, the following provisions of the Warrant are amended hereby. 
 1. Reduction in Exercise Price. The Exercise
Price of the Warrant is reduced from the price set forth on Exhibit A to a price of $1.35 per share, subject to adjustment as provided in Section 12 of the original Warrant, as such Section 12 is modified hereby. 
 2. Modification of Certain Anti-Dilution Rights. Section 12 of the Warrant is hereby modified to delete in its entirety Section 12(b)
and replace it with a new Section 12(b) annexed hereto as Exhibit B. 
 3. Except as set forth herein, the Warrant shall remain
in full force and effect and shall represent the right to purchase that number of shares of Common Stock set forth on Exhibit A. This Amendment to Warrant may be executed in two or more counterparts, each of which shall constitute an
original, but all of which when taken together, shall constitute but one instrument, and shall become effective when one or more counterparts have been signed by each party hereto and delivered to the other parties. This Amendment to Warrant may
also be executed and delivered by a facsimile or pdf, which shall be deemed an original. 

 IN WITNESS WHEREOF, the parties have executed this Amendment to Warrant or caused their duly
authorized officers to execute Amendment to Warrant as of the date first above written. 
  

			
	VELOCITY EXPRESS CORPORATION
		
	By:	 	 
		 	Edward W. Stone, Chief Financial Officer
		
	[Holder]	 	
		
	By:	 	 

  

 -2- 

 EXHIBIT A 
 WARRANT 
  

							
	 Name and
 Address of

Holder
	 	 Warrant No
	 	 Exercise Price
	  	Number of Shares
Of Common Stock
Issuable Upon
Exercise of the
Warrant

 NOTES 
 Principal Amount Held: 
  

 -3- 

 Exhibit A 
 Adjustment of Exercise Price. If the Company, in any case not exempt under Section 12(a) of the Warrant, and not covered by Section 12(c) to (g) of the Warrant, shall issue or sell, or is, in
accordance with subsections (1) through (3) below, deemed to have issued or sold, any Additional Shares of Common Stock (as defined below) without consideration or for a consideration per share less than the Exercise Price in effect
immediately prior to the time of such issue or sale, then and in each such case (a “Trigger Issuance”) the then-existing Exercise Price shall be reduced, as of the close of business on the effective date of the Trigger Issuance, to a price
(but not less than $.88 per share, as such amount may be adjusted in accordance with Section 12(c) of the Warrant) determined as follows: 
  

					
	 Adjusted Exercise Price
	 	=	  	(A x B) + D
		 		  	 A + C

 where 
 “A” equals the number of shares of Common Stock outstanding, including Additional Shares of Common Stock deemed to be issued
hereunder, immediately preceding such Trigger Issuance; 
 “B” equals the Exercise Price in effect immediately
preceding such Trigger Issuance; 
 “C” equals the number of Additional Shares of Common Stock issued or deemed
issued hereunder as a result of the Trigger Issuance; and 
 “D” equals the aggregate consideration, if any,
received or deemed to be received by the Company upon such Trigger Issuance; 
 provided, however, that in no event shall the
Exercise Price after giving effect to such Trigger Issuance be greater than the Exercise Price in effect prior to such Trigger Issuance. 
 For purposes of this subsection , “Additional Shares of Common Stock” shall mean all shares of Common Stock issued by the Company or deemed to be issued pursuant to this subsection, other than Excluded Stock. “Excluded
Stock” means (A) capital stock, options or convertible securities issued to employees, officers or directors of the Company pursuant to any stock or option plan duly adopted by a majority of the non-employee members of the Board of
Directors of the Company or a majority of the members of a committee of non-employee directors established for such purpose, (B) shares of Common Stock issued upon the conversion or exercise of options or convertible securities or other rights
issued on or prior to the date hereof, provided that such securities have not been amended since the date hereof, (C) shares of Common Stock issued or issuable by reason of a dividend, stock split or other distribution on shares of Common Stock
and (D) the shares of Common Stock issuable upon the exercise of warrants issued to the holders of the Company’s 12% Senior Secured Notes Due 2010 (including this amended warrant and new warrants being issued to holders of such Notes on or
about the date of this amendment) and shares issued as payment-in–kind dividends with respect to any series of the Company’s Preferred Stock or in lieu of pay-in kind interest on any notes issued by the Company. 
  

 -4- 

 For purposes of this subsection , the following Sections (1) to (6) shall also be applicable:

 (1) Issuance of Rights or Options. In case at any time the Company shall in any manner grant (directly and not by assumption in a
merger or otherwise) any warrants or other rights to subscribe for or to purchase, or any options for the purchase of, Common Stock or any stock or security convertible into or exchangeable for Common Stock (such warrants, rights or options being
called “Options” and such convertible or exchangeable stock or securities being called “Convertible Securities”) whether or not such Options or the right to convert or exchange any such Convertible Securities are immediately
exercisable, and the price per share for which Common Stock is issuable upon the exercise of such Options or upon the conversion or exchange of such Convertible Securities (determined by dividing: (i) the sum (which sum shall constitute the
applicable consideration) of (x) the total amount, if any, received or receivable by the Company as consideration for the granting of such Options, plus (y) the aggregate amount of additional consideration payable to the Company upon the
exercise of all such Options, plus (z), in the case of such Options which relate to Convertible Securities, the aggregate amount of additional consideration, if any, payable upon the issue or sale of such Convertible Securities and upon the
conversion or exchange thereof, by (ii) the total maximum number of shares of Common Stock issuable upon the exercise of such Options or upon the conversion or exchange of all such Convertible Securities issuable upon the exercise of such
Options) shall be less than the Exercise Price in effect immediately prior to the time of the granting of such Options, then the total number of shares of Common Stock issuable upon the exercise of such Options or upon conversion or exchange of the
total amount of such Convertible Securities issuable upon the exercise of such Options shall be deemed to have been issued for such price per share as of the date of granting of such Options or the issuance of such Convertible Securities and
thereafter shall be deemed to be outstanding for purposes of adjusting the Exercise Price. Except as otherwise provided in subsection (3) no adjustment of the Exercise Price shall be made upon the actual issue of such Common Stock or of such
Convertible Securities upon exercise of such Options or upon the actual issue of such Common Stock upon conversion or exchange of such Convertible Securities. 
 (2) Issuance of Convertible Securities. In case the Company shall in any manner issue (directly and not by assumption in a merger or otherwise) or sell any Convertible Securities, whether or not the rights to
exchange or convert any such Convertible Securities are immediately exercisable, and the price per share for which Common Stock is issuable upon such conversion or exchange (determined by dividing: (i) the sum (which sum shall constitute the
applicable consideration) of (x) the total amount received or receivable by the Company as consideration for the issue or sale of such Convertible Securities, plus (y) the aggregate amount of additional consideration, if any, payable to
the Company upon the conversion or exchange thereof, by (ii) the total number of shares of Common Stock issuable upon the conversion or exchange of all such Convertible Securities) shall be less than the Exercise Price in effect immediately
prior to the time of such issue or sale, then the total maximum number of shares of Common Stock issuable upon conversion or exchange of all such Convertible Securities shall be deemed to have been issued for such price per share as of the date of
the issue or sale of such Convertible Securities and thereafter shall be deemed to be outstanding for purposes of adjusting the Exercise Price, provided that: (a) except as otherwise provided in subsection (3), no adjustment of the Exercise
Price shall be made upon the actual issuance of such Common Stock upon conversion or exchange of such Convertible Securities; and (b) no further adjustment of the Exercise Price shall be made by reason of the issue or sale of Convertible
Securities upon exercise of any Options to purchase any such Convertible Securities for which adjustments of the Exercise Price have been made pursuant to the other provisions of subsection . 
  

 -5- 

 (3) Change in Option Price or Conversion Rate. If: (i) the purchase price provided for in any
Right or Option referred to in subsection (l) hereof; (ii) the additional consideration, if any, payable upon the conversion or exchange of any Convertible Securities referred to in subsections (l) or (2); (iii) or the rate at
which Convertible Securities referred to in subsections (l) or (2) are convertible into Common Stock shall change at any time (each, a “Readjustment Event”) (including, but not limited to, changes under or by reason of provisions
designed to protect against dilution), the Exercise Price in effect at the time of such event shall forthwith be readjusted to the Exercise Price which would have been in effect had such Readjustment Event occurred at the time the Options or
Convertible Securities still outstanding were initially granted, issued or sold. Upon the termination of any Option for which any adjustment was made pursuant to this subsection 12(b) or any right to convert Convertible Securities for which any
adjustment was made pursuant to this subsection 12(b) (including without limitation upon the redemption or purchase for consideration of such Convertible Securities by the Company), and after five calendar days notice to the holder, the Exercise
Price then in effect hereunder shall forthwith be changed to the Exercise Price which would have been in effect at the time of such termination had such Option or Convertible Securities, to the extent outstanding immediately prior to such
termination, never been issued. 
 (4) Consideration for Stock. In case any shares of Common Stock, Options or Convertible Securities shall be issued
or sold for cash, the consideration received therefor shall be deemed to be the net amount received by the Company therefor, after deduction therefrom of any expenses incurred or any underwriting commissions or concessions paid or allowed by the
Company in connection therewith. In case any shares of Common Stock, Options or Convertible Securities shall be issued or sold for a consideration other than cash, the amount of the consideration other than cash received by the Company shall be
deemed to be the fair value of such consideration as determined in good faith by the Board of Directors of the Company, after deduction of any expenses incurred or any underwriting commissions or concessions paid or allowed by the Company in
connection therewith. In case any Options shall be issued in connection with the issue and sale of other securities of the Company, together comprising one integral transaction in which no specific consideration is allocated to such Options by the
parties thereto, such Options shall be deemed to have been issued for such consideration as determined in good faith by the Board of Directors of the Company. If Common Stock, Options or Convertible Securities shall be issued or sold by the Company
and, in connection therewith, other Options or Convertible Securities (the “Additional Rights”) are issued, then the consideration received or deemed to be received by the Company shall be reduced by the fair market value of the Additional
Rights (as determined using the Black-Scholes option pricing model or another method mutually agreed to by the Company and the holder). The Board of Directors of the Company shall respond promptly, in writing, to any inquiry by the holder as to the
fair market value of the Additional Rights. In the event that the Board of Directors of the Company and the holder are unable to agree upon the fair market value of the Additional Rights, the Company and the holder shall jointly select an appraiser
who is experienced in such matters. The decision of such appraiser shall be final and conclusive, and the cost of such appraiser shall be borne by the Company. 
  

 -6- 

 (5) Treasury Shares. The number of shares of Common Stock outstanding at any given time shall not
include shares owned or held by or for the account of the Company or any of its wholly-owned Subsidiaries, and the disposition of any such shares (other than the cancellation or retirement thereof) shall be considered an issue or sale of Common
Stock for the purpose of this Section . 
 (6) Floor Price. To comply with regulations of the Nasdaq Stock Market, no adjustment
hereunder shall cause the Exercise Price to be less than $.88 per share, as adjusted only for stock splits, stock combinations and stock dividends. 
  

 -7- 

 EXHIBIT F 
 THIS SECURITY AND THE WARRANT SHARES TO BE ISSUED UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY, THE WARRANT SHARES TO BE ISSUED UPON ITS
EXERCISE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
REGISTRATION. 
 THE TRANSFER OF THIS WARRANT IS RESTRICTED AS DESCRIBED HEREIN 
  

					
	 Dated: May 19, 2008
	  		  	 Void after the date
 specified in
Section 1

 VELOCITY EXPRESS CORPORATION 
 Warrant for the Purchase of Shares of Common Stock, 
 par value $0.004 per Share

  

			
	No.___________________	  	___________________ Shares

 THIS CERTIFIES that, for value received, [INVESTOR], and its registered assigns, whose address is
             (the “Holder”), is entitled to purchase from Velocity Express Corporation, a Delaware corporation (the “Company”), upon the terms and
conditions set forth herein,              (            ) shares (the “Warrant
Shares”) of the Company’s Common Stock, par value $0.004 per share (“Common Stock”), at an initial exercise price of $.88, subject to adjustment as provided in Section 12 (the “Exercise Price”).

 The Warrant Shares and the Exercise Price may be adjusted from time to time as provided in Section 12. The Warrant Shares are
entitled to the benefits, and subject to the obligations, set forth in the Registration Rights Agreement dated concurrently herewith by and among the Company, the initial Holder and the other parties named therein (the “Registration Rights
Agreement”). This is one of a series of warrants with like terms, initially exercisable for an aggregate of 433,855 shares of Common Stock equal to 15.0% of the issued and outstanding shares of Common Stock of the Company as of the date
hereof (collectively, the “Class of Warrants”). 
 This Warrant was originally issued by the Company in connection with an
amendment, dated May 19, 2008, of the Company’s 12% Senior Secured Notes Due 2010 (the “Notes”) in the original aggregate principal amount of $78,205,000, and an amendment of the Indenture pursuant to which such Notes were
issued. 

 1. Exercise Rights and Exercise Period. 
 (a) At the Option of the Holder. This Warrant may be exercised, subject to the provisions of Section 3, at the option of the Holder at the
Exercise Price at any time or from time to time during the period commencing on (i) June 9, 2008 and (ii) ending at 5:00 P.M. Eastern time on May 19, 2012 (the “Exercise Period”). The Company will deliver a
notice to the Holder promptly, and in any event within three (3) Business Days (as defined below) after this Warrant first becomes exercisable. An exercise of this Warrant at the option of the Holder shall be made in accordance with the
procedures set forth in Section 2. A Holder may not exercise this Warrant pursuant to this Section 1(a) after receipt of a Notice of Automatic Exercise pursuant to Section 3, other than with respect to Warrant Shares that are not
subject to such Notice of Automatic Exercise. 
 (b) Automatic Exercise. If at any time after the date hereof: 
 (i) the daily volume weighted average price of a share of Common Stock, as reported by Bloomberg (or, if Bloomberg terminates such
reporting, then using such other reporting system as the Board of the Directors of the Company may designate in good faith), on the Nasdaq Stock Market or, if the Common Stock ceases to be listed on the Nasdaq Stock Market, the primary national or
regional securities exchange or quotation system on which the Common Stock is then listed or quoted (the “Principal Market”) is equal to or exceeds $1.32 per share (as such price may be adjusted pursuant to Section 12, the
“Automatic Exercise Trading Threshold”) for twenty (20) of any thirty (30) consecutive trading-day period (the “Automatic Exercise Value Trigger”); 
 (ii) the Warrant Shares issuable upon the occurrence of the Automatic Exercise Value Trigger, as contemplated by Section 3, are
available for immediate resale without restriction by the Holder without registration (or pursuant to an effective registration statement) under the Securities Act of 1933, as amended (the “Securities Act”) on both (x) the date
the Automatic Exercise Value Trigger occurs and (y) the date the Notice of Automatic Exercise is delivered (as defined in, and delivered pursuant to, Section 3(a)) (the “Evaluation Dates”); 
 (iii) on each day during such thirty (30) trading-day period and on the Evaluation Dates, the Common Stock is designated for
quotation on the Principal Market and shall not have been suspended from trading on the Principal Market (other than suspensions of not more than two (2) trading days due to business announcements by the Company, which suspensions have been
lifted more than two (2) trading days prior to each of the Evaluation Dates); 
 (iv) delisting or suspension of the
Common Stock by the Principal Market shall not have been threatened or be pending on either of the Evaluation Dates, either (A) in writing by the Principal Market or (B) by reason of falling below the then effective minimum listing
maintenance requirements of the Principal Market; 
  

 -2- 

 (v) during such thirty (30) trading-day period and on each of the Evaluation Dates
there shall not have occurred (A) the public announcement of a pending, proposed or intended merger which has not been abandoned, terminated or consummated, (B) an Event of Default under (and as such term is defined in) the Indenture dated
July 3, 2006 related to the Notes, as amended or (C) an event that with the passage of time or giving of notice would constitute such an Event of Default; and 
 (vi) the Company shall have no knowledge on either of the Evaluation Dates of any fact that would cause (A) the registration
statement required pursuant to the Registration Rights Agreement not to be effective and available for the resale of all remaining Warrant Shares in accordance with the terms of the Registration Rights Agreement or (B) any Warrant Shares
issuable upon exercise of the Warrants not to be eligible for sale without restriction pursuant to Rule 144 and any applicable state securities laws, 
 then
this Warrant shall be deemed to be exercised automatically at the Exercise Price, to the extent and in accordance with the provisions of Section 3 and Section 7. 
 2. Procedure for Optional Exercise by the Holder; Effect of Exercise. With respect to an optional exercise pursuant to Section 1(a), this Warrant may be exercised, in whole or in part, by the Holder during
normal business hours on any Business Day (as defined below) during the Exercise Period by (i) the presentation and surrender of this Warrant to the Company at its principal office along with a duly executed notice of exercise, in the form
attached to this Warrant (the “Notice of Exercise”), specifying the number of Warrant Shares to be purchased and (ii) delivery of payment to the Company of the Exercise Price for the number of Warrant Shares specified in the
Notice of Exercise. 
 For purposes of this Warrant, “Business Day” means any day other than a Saturday, Sunday or other day on which
banking institutions in the city of New York, New York are required or authorized by law or other governmental action to be closed. 
 3. Procedure for
Automatic Exercise. 
 (a) Upon the occurrence of an Automatic Exercise Value Trigger (and if each of the conditions set forth in
Section 1(b)(ii) through (vi) are satisfied on such date) the Company will determine the amount of this Warrant to be automatically exercised as a result of an automatic exercise of this Warrant pursuant to Section 1(b) (assuming for
this purpose each of the conditions set forth in Section 1(b)(ii) through (vi) will be true on the date the Notice of Exercise is delivered) and within ten (10) Business Days after the occurrence of such Automatic Exercise Value
Trigger the Company shall deliver to the Holder a notice of automatic exercise (the “Notice of Automatic Exercise”) unless any of the conditions set forth in Section 1(b)(ii) through (vi) is not satisfied during such
period. 
 (b) Upon the occurrence of an Automatic Exercise Value Trigger, if each of the conditions set forth in Section 1(b)(ii)
through (vi) is also satisfied on such date, the Company will issue a press release to that effect within two (2) Business Days after the occurrence of such Automatic Exercise Value Trigger, but identifying the additional condition that
each of the 

  

 -3- 

 
conditions set forth in Section 1(b)(ii) through (vi) must be true on the date the Notice of Exercise is delivered. Such press release shall set
forth the number of shares of Common Stock issuable upon exercise in full of the Class of Warrants outstanding. The Notice of Automatic Exercise shall: (i) state that the conditions for an automatic exercise of this Warrant have been satisfied,
(ii) identify the number of Warrant Shares automatically exercised under this Warrant, (iii) identify the office of the Company to which this Warrant and the Exercise Price should be delivered and (iv) set forth payment instructions
for any Exercise Price paid in cash or in Notes. From and after the delivery of the Notice of Automatic Exercise: (I) the sole right of the Holder hereunder with respect to the portion of this Warrant automatically exercised shall be (to the
extent of such automatic exercise) to receive the Warrant Shares issuable upon such automatic exercise upon proper delivery of this Warrant and the Exercise Price to the Company, (II) the Company shall not be obligated to allow and register the
transfer of any Warrant or to permit any exercise at the option of the Holder with respect to any Warrant that has not been surrendered for automatic exercise in accordance with this Section 3 until the Holder has properly delivered this
Warrant and the Exercise Price for the Warrants subject to such automatic exercise and (III) the Warrant Shares issuable upon an automatic exercise of this Warrant will not be deemed to be outstanding until the Holder has properly delivered this
Warrant and the Exercise Price for the Warrants subject to such automatic exercise. The Holder may elect a cashless exercise with respect to the Warrant Shares to which any such automatic exercise applies by delivering a duly executed Notice of
Exercise specifying that cashless exercise will apply to such automatic exercise. 
 4. Payment of the Exercise Price. 
 (a) The Exercise Price may be paid by the Holder by delivery to the Company (i) of cash, paid by wire transfer of immediately available funds to a
bank account specified by the Company, or by certified or bank cashier’s check payable to the Company, (ii) tender of Notes duly endorsed for transfer to the Company or accompanied by appropriate assignment documentation (in the case of a
certificated Note) or designated by appropriate instructions to the Trustee for transfer (in the case of a global note) or (iii) a combination of such cash and Notes. If in connection with any exercise of this Warrant the principal amount of
Notes tendered in payment of the Exercise Price exceeds the aggregate Exercise Price for the Warrant Shares subject to such exercise of this Warrant, the Company will cause a Note for the amount of such excess to be delivered to the Holder by
delivery of a certificated Note (if the Notes tendered were certificated Notes) or by appropriate designation on a global note (if the Notes tendered were part of a global note) within five (5) Business Days after the related Warrant Shares are
deemed to be issued to the Holder pursuant to Section 6. 
 (b) For purposes of this Section 4, each Note delivered in payment of
the Exercise Price shall be deemed to have a value equal to 100% of the principal amount of such Note. The amount, if any, of (i) accrued but unpaid interest on each such Note to and including the date the Notice of Exercise is delivered to the
Company (with respect to an exercise at the option of the Holder pursuant to Section 1(a)) or the date the Notice of Automatic Exercise is delivered to the Holder (with respect to an exercise pursuant to Section 1(b)) and (ii) if the
Company has called such Note for redemption prior to the delivery of such Notice of Exercise or Notice of Automatic Exercise, as the case may be, the applicable premium over the principal amount of such Note, if 

  

 -4- 

 
any, that would be paid to the Holder if such Note delivered to the Company in payment of the Exercise Price was redeemed pursuant to such redemption call,
shall be paid to the Holder as provided in the Indenture dated as of July 3, 2006 between the Company and Wells Fargo Bank, N.A., as Trustee, related to the Notes, as amended. 
 5. Cashless Exercise. Notwithstanding any provision in this Warrant to the contrary, the Holder may exercise this Warrant, in whole or in part, by a cashless exercise by the presentation and surrender of this
Warrant to the Company at its principal office along with a duly executed Notice of Exercise specifying the number of Warrant Shares to be applied to such exercise. The number of Warrant Shares to be delivered upon exercise of this Warrant pursuant
to this Section 5 shall be computed using the following formula: 
 X = Y (B-A) 
 B 
 Where:      X =
the number of shares of Common Stock to be issued to the Holder. 
 Y = the number of Warrant Shares identified in the Notice of Exercise as
being applied to the subject exercise. 
 A = the Exercise Price on the date this Warrant and the properly executed Notice of Exercise are
delivered to the Company        for such exercise. 
 B = the volume weighted average price of one share of
Common Stock on the date the on the date this Warrant and the        properly executed Notice of Exercise are delivered to the Company for such exercise. 
 6. Effect of Exercise. 
 (a) Upon receipt by the
Company of (i) this Warrant, a Notice of Exercise and proper payment of the Exercise Price as provided in Section 2 and Section 4 (or a Notice of Exercise designating a cashless exercise as provided in Section 5) or
(ii) this Warrant and proper payment of the Exercise Price as provided in Section 3 and Section 4 (or a Notice of Exercise designating a cashless exercise as provided in Section 5), the Company agrees that such Warrant Shares
shall be deemed to be issued to the Holder or its designee as the record holder of such Warrant Shares as of the close of business on the date on which such receipt occurs, and the Holder or such designee shall be deemed to be the holder of record
of the Warrant Shares, notwithstanding that the stock transfer books of the Company may then be closed or that certificates representing such Warrant Shares shall not then be actually delivered to the Holder or its designee. As promptly as
practicable, and in any event within three (3) Business Days after such Warrant Shares are deemed issued, (i) provided that the Company’s transfer agent is then participating in the Depository Trust Company’s
(“DTC”) Fast Automated Securities Transfer Program, the Company will cause to be credited such aggregate number of such Warrant Shares to the balance account with DTC of the Holder or its designee through the Deposit Withdrawal
Agent Commission system, or (B) if the Company’s transfer agent is not then participating in the DTC Fast Automated Securities Transfer Program, the Company will issue and deliver to the address 

  

 -5- 

 
as specified in the Notice of Exercise or in a notice accompanying delivery of this Warrant to the Company pursuant to Section 3, as the case may be, a
stock certificate or certificates for the Warrant Shares issuable upon such exercise of this Warrant, registered in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder shall be entitled. The stock
certificate(s) so delivered shall be in any such denominations as may be reasonably specified by the Holder in the Notice of Exercise or in a notice accompanying delivery of this Warrant to the Company pursuant to Section 3, as the case may be.

 (b) The Company understands that a delay in the delivery of the certificates representing the Warrant Shares upon exercise of this Warrant
could result in economic loss to the Holder. As compensation to the Holder for such loss, the Company agrees to pay (as liquidated damages and not as a penalty) to the Holder, at the option of the Holder, either: (i) the amount of $100 per
Business Day after the third Business Day after the Holder has properly exercised this Warrant for each $10,000 of Common Stock (measured by the volume weighted average price of one share as of the date the Holder has properly exercised this Warrant
and pro rated for amounts other than $10,000), and continuing until the date on which the certificate representing such Warrant Shares are delivered to the Holder (or its designee) or (ii) the amount by which the Current Market Price of the
Warrant Shares (on the exercise date) subject to such exercise exceeds the aggregate Exercise Price for such Warrant Shares, whichever is greater. The Company shall pay any payments incurred under this Section 5(b) in immediately available
funds upon demand. Furthermore, in addition to any other remedies which may be available to the Holder, in the event that the Company fails for any reason to effect delivery as stated in Section 5a), the Holder will be entitled to revoke all or
part of the relevant notice of exercise by delivery of a notice to such effect to the Company, whereupon the Company and the Holder shall each be restored to their respective positions immediately prior to the delivery of such notice, except that
the liquidated damages described above shall be payable through the date notice of revocation is given to the Company. 
 (c) In addition to
any other rights available to the Holder, if the Company fails to make timely delivery in accordance with the provisions of Section 6(b) to the Holder of a certificate or certificates representing the Warrant Shares for which this Warrant has
been exercised, and if within three (3) Business Days thereafter the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Common Stock which the Holder
anticipated receiving upon such exercise (a “Buy-In”), then the Company shall pay in cash to the Holder (in addition to any remedies available to or elected by the Holder) the amount by which (i) the Holder’s total
purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (ii) the aggregate Current Market Price of the Common Stock for which such exercise was not timely honored (as in effect on the date
the Warrant Shares are deemed issued in accordance with Section 5(a)) together with interest thereon at a rate of fifteen percent (15%) per annum, accruing from such dated of deemed issue until such amount and any accrued interest thereon
is paid in full (which amount shall be paid as liquidated damages and not as a penalty). For example, if the Holder purchases shares of Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of
Warrant Shares having an aggregate Current Market Price of $10,000 on the date of exercise, the Company shall be required to pay the Holder $1,000, plus interest. The Holder shall provide the Company written notice indicating the amounts payable to
the Holder in respect of the Buy-In. 
  

 -6- 

 (d) Nothing herein shall limit a Holder’s right to pursue any other remedies available to it
hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing common shares upon exercise of the Warrant
as required pursuant to the terms hereof. 
 7. Limitation on Exercise. The Company shall not effect the exercise of this Warrant, and the Holder
shall not have the right to exercise this Warrant, to the extent that after giving effect to such exercise, such Holder (together with such Holder’s Affiliates (as defined below)) would beneficially own in excess of 4.99% (the “Maximum
Percentage”) of the shares of Common Stock outstanding immediately after giving effect to such exercise. For purposes of the preceding sentence, the aggregate number of shares of Common Stock beneficially owned by such Holder and its
Affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which the determination of such sentence is being made, but shall exclude shares of Common Stock which would be issuable (but have
not been issued or deemed issued) upon (i) exercise of the remaining, unexercised portion of this Warrant beneficially owned by such Holder and its Affiliates and (ii) exercise or conversion of the unexercised or unconverted portion of any
other securities of the Company beneficially owned by such Holder and its Affiliates (including, without limitation, any convertible notes or warrants) subject to a limitation on conversion or exercise analogous to the limitation contained herein.
Except as set forth in the preceding sentence, for purposes of this Section 7, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”). For purposes of this Warrant, in determining the number of outstanding shares of Common Stock issued by the Company, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (I) the Company’s
most recent Form 10-K, Form 10-Q, Current Report on Form 8-K or other public filing with the Securities and Exchange Commission, as the case may be, (II) a more recent public announcement by the Company or (III) any other notice by the Company
setting forth the number of shares of Common Stock outstanding. For any reason at any time, upon the written or oral request of the Holder, the Company shall within one Business Day confirm orally and in writing to the Holder the number of shares of
Common Stock then outstanding. By written notice to the Company, any Holder may from time to time increase or decrease the Maximum Percentage to any other percentage specified in such notice; provided that any such increase will not be
effective until the sixty-first (61st) day after such notice is delivered to the Company. 
 For purposes of this Warrant, “Affiliate”
means, with respect to any person or entity, any other person or entity directly or indirectly, through one or more intermediaries, controlling, controlled by or under direct or indirect common control with such specified person or entity, where
‘control’ means the power to manage or direct or cause the direction of the management and policies of such person or entity, directly or indirectly, whether through the ownership of voting stock, by contract or otherwise. 
 The limitations contained in this Section 7 shall apply to a successor Holder of this Warrant. 
  

 -7- 

 8. Partial Exercise. If this Warrant should be exercised in part only, the Company shall, upon surrender of this
Warrant for cancellation, execute and deliver a new Warrant evidencing the right of the Holder to purchase the balance of the Warrant Shares subject to purchase hereunder. 
 9. Registration of Warrants; Transfer of Warrants. Any Warrants issued upon the transfer or exercise in part of this Warrant shall be numbered and shall be registered in a Warrant Register maintained by the
Company or its designee as they are issued. The Company shall not be liable for any registration or transfer of Warrants which are registered or to be registered in the name of a fiduciary or the nominee of a fiduciary unless made with the actual
knowledge that a fiduciary or nominee is committing a breach of trust in requesting such registration or transfer, or with the knowledge of such facts that its participation therein amounts to bad faith. The Holder shall not be required to
physically surrender the Warrant upon exercise, unless the Holder is purchasing all the Warrant Shares obtainable upon exercise of the Warrant. If the Holder is purchasing the full amount of Warrant Shares obtainable upon exercise of the Warrant,
the Holder shall physically surrender the original copy of the Warrant (or a certificate of lost warrant, which shall not contain any indemnity provisions) to the Company promptly after such purchase. The Holder and the Company shall maintain
records showing the number of Warrant Shares purchased hereunder and the dates of such purchases or shall use such other method reasonably satisfactory to the Holder and the Company so as not to require physical surrender of the warrant upon
exercise The Holder, and any assignee, by acceptance of the warrant or any new warrant, acknowledge and agree that, by reason of the provisions of this Section 9, following exercise of any portion of the Warrant, the number of Warrant Shares
which may be purchased upon exercise may be less than the number of Warrant Shares on the face hereof. Upon any registration of transfer, the Company shall deliver a new Warrant or Warrants to the person or entity entitled thereto. Subject to
Section 7, this Warrant may be exchanged, at the option of the Holder, for another Warrant or other Warrants of different denominations, of like tenor and representing in the aggregate the right to purchase a like number of Warrant Shares, upon
surrender to the Company. 
 10.(a) Transfer Restricted Security. The Holder, as of the date of issuance of this Warrant, represents to the Company
that such Holder is acquiring this Warrant for the Holder’s own account, for investment purposes and not with a present view to the distribution thereof or of the Warrant Shares. 
 (b) Notice of Intention to Transfer; Conditions to Transfer. The Holder may not transfer this Warrant or any of the Warrant Shares prior to the
date which is six (6) months (or such shorter period as may be prescribed by Rule 144 under the Securities Act (or any successor provision) after the later of the original issue date of this Warrant (or any predecessor of this Warrant) or such
Warrant Share (or any predecessor of such Warrant Share, including this Warrant to the extent the holding period of this Warrant may be tacked thereto under the Securities Act) and the last date on which the Company or any of its Affiliates was the
owner of this Warrant or such Warrant Share (such period being the “Restriction Period”), except to: 
 (i)
the Company or any of its subsidiaries; 
  

 -8- 

 (ii) pursuant to a registration statement which has been declared effective under the
Securities Act; 
 (iii) for so long as this Warrant is eligible for resale under Rule 144A under the Securities Act, to a
person or entity the Holder reasonably believes is a “Qualified Institutional Buyer” as defined in Rule 144A that purchases for its own account or for the account of a Qualified Institutional Buyer to whom notice is given that the transfer
is being made in reliance on Rule 144A; 
 (iv) pursuant to offers and sales to non-U.S. Purchasers that occur outside the
United States within the meaning of Regulation S under the Securities Act, pursuant to Rule 904 of Regulation S; 
 (v) to an
institutional “accredited investor” within the meaning of subparagraph (a)(1), (2), (3) or (7) of Rule 501 under the Securities Act that is acquiring the Warrant for its own account, or for the account of such an institutional
accredited investor, for investment purposes and not with a view to, or for offer or sale in connection with, any distribution in violation of the Securities Act; or 
 (vi) pursuant to another available exemption from the registration requirements of the Securities Act and the securities laws of any other
jurisdiction, including any state of the United States, subject to the Company’s right, prior to any such transfer pursuant to the foregoing clauses (iv), (v) or (vi) to require the delivery of an opinion of counsel, certification or
other information reasonably satisfactory to the Company. 
 (c) Legend. During the applicable Restriction Period, this Warrant and
each certificate representing any Warrant Share issued upon exercise or exchange of this Warrant shall bear the following legend or an equivalent to such legend: 
 “THIS SECURITY HAS AND THE WARRANT SHARES TO BE ISSUED UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY, THE WARRANT SHARES TO BE ISSUED UPON
ITS EXERCISE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
REGISTRATION.” 
 The Holder understands that the Company may place, and may instruct any transfer agent or depository for the Warrant Shares to place,
a stop transfer notation in the securities records in respect of the Warrant Shares. 
 (d) Legend Removal. At the expiration of the
Restriction Period, or upon the sooner effectiveness of a registration statement covering all of the Warrant Shares, and when, in the opinion of counsel to the Company such restrictions are no longer required to assurance compliance with the
Securities Act, the Company shall remove the restrictive legend promptly upon the request of the holder of the Warrant Shares. 
  

 -9- 

 11. Reservation of Shares. The Company shall at all times during the Exercise Period reserve and keep available
out of its authorized and unissued Common Stock, solely for the purpose of providing for the exercise of the rights to purchase all Warrant Shares granted pursuant to this Warrant, no less than one hundred fifty percent (150%) of the number of
shares of Common Stock as shall then be issuable upon the exercise of this Warrant. The Company covenants that any and all Warrant Shares, as and when issuable in accordance with this Warrant against the Company’s receipt of the Exercise Price
or other specified consideration therefor, shall be validly issued, fully paid, non-assessable, and free of preemptive rights. 
 12. Adjustments. The
Exercise Price, the number of shares purchasable hereunder and the Automatic Exercise Trading Price Threshold are subject to adjustment from time to time as provided in this Section 12. 
 (a) Exempt Issues. No adjustment shall be made pursuant to this Section 12 with respect to any issue of Common Stock: 
 (i) upon conversion of shares of the Company’s Series M Convertible Preferred Stock, Series N Convertible Preferred Stock, Series O
Convertible Preferred Stock, Series P Convertible Preferred Stock or Series Q Convertible Preferred Stock, in each case at the exercise price in effect on May 19, 2008 (without giving any effect to the antidilution provisions thereof except to
the extent the same may be adjusted in a manner consistent with Section 12(c) of this Warrant regarding stock splits and dividends); 
 (ii) as payment of dividends in lieu of cash with respect to the Company’s Series M Convertible Preferred Stock, Series N Convertible Preferred Stock, Series O Convertible Preferred Stock, Series P Convertible
Preferred Stock or Series Q Convertible Preferred Stock, in each case to the extent specifically provided for under and strictly in accordance with the express terms existing, effective and applicable to the foregoing on and as of May 19, 2008;

 (iii)(A) upon the exercise of warrants outstanding or being issued or amended as of May 19, 2008 to purchase shares of
Common Stock (as the same may be adjusted in accordance with the antidilution provisions thereof, if any; provided, however, if any such antidilution provisions are based on the exercise price of such warrants instead of fair market value of
the securities or other property sold or distributed, then no such adjustment will be taken into account except to the extent the same may be adjusted in a manner consistent with Section 12(c) of this Warrant), in each case to the extent
specifically provided for under and strictly in accordance with the express terms existing, effective and applicable to the foregoing on and as of May 19, 2008; 
 (iv) upon the exercise of options or other rights to purchase shares of Common Stock outstanding as of May 19, 2008 under the
Company’s 1995 Stock Option Plan, 2000 Stock Option Plan,1996 Director Stock Option Plan, and 2004 Stock Option Plan, in each case to the extent specifically provided for under and strictly in accordance with the express terms existing,
effective and applicable to the foregoing on and as of May 19, 2008; or 
  

 -10- 

 (v) upon payment of Common Stock in lieu of interest on any outstanding notes of the
Company. 
 (b) Intentionally Omitted. 
 (c) Stock Splits and Dividends. In the event that the Company shall subdivide its outstanding shares of Common Stock into a greater number of shares, pay a dividend or make a distribution on its Common Stock in shares of Common Stock
or combine its outstanding shares of Common Stock into a smaller number of shares, the Exercise Price and the Automatic Exercise Trading Threshold in effect immediately prior thereto each shall be proportionately decreased in the case of a
subdivision or increased in the case of a combination. An adjustment made pursuant to this Section 12(c) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or
distribution and shall become effective immediately after the date of such subdivision or combination, as the case may be. Such adjustments shall be made successively whenever any event listed above in this Section 12(c) shall occur.

 (d) Distributions. In case the Company shall fix a payment date for the making of a distribution to all Holders of Capital Stock
(including any such distribution made in connection with a consolidation or merger in which the Company is the continuing corporation) of evidences of indebtedness or assets (other than dividends or distributions referred to in Section 12(c)),
the Exercise Price to be in effect after such payment date shall be determined by multiplying the Exercise Price in effect immediately prior to such payment date by a fraction, the numerator of which shall be the total number of shares of Common
Stock outstanding multiplied by the Current Market Price per share of Common Stock immediately prior to such payment date, less the Current Market Price of such assets or evidences of indebtedness so distributed, and the denominator of which shall
be the total number of shares of Common Stock outstanding multiplied by such Market Price per share of Common Stock immediately prior to such payment date. Such adjustment shall be made successively whenever such a payment date is fixed. 

(e) Reorganization or Reclassification. In the event of (i) any reclassification (including, without limitation, a reclassification
effected by means of an exchange or tender offer by the Company or any subsidiary) or change of outstanding Common Stock (other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of a
subdivision or combination), (ii) any consolidation, merger or combination of the Company with another corporation as a result of which holders of Common Stock shall be entitled to receive securities or other assets (including cash) with
respect to or in exchange for Common Stock or (iii) any sale or conveyance of the assets of the Company as, or substantially as, an entirety to any other corporation as a result of which holders of Common Stock shall be entitled to receive
securities or other assets (including cash) with respect to or in exchange for Common Stock, then: (I) the Company or the successor or purchasing corporation, as the case may be, shall execute and deliver to the Holder upon surrender of this
Warrant a supplemental warrant providing that the Holder shall have the right thereafter (until the expiration of this Warrant) to receive, upon full exercise of this Warrant, the kind and amount of shares of stock 

  

 -11- 

 
and/or other securities and/or property receivable upon such reclassification, consolidation, merger, combination, sale or conveyance by a holder of the
number of shares of Common Stock for which this Warrant might have been exercised immediately prior to such reclassification, consolidation, merger, combination, sale or conveyance; and (II) the Automatic Exercise Trading Threshold shall thereafter
be measured by reference to the Current Market Value of the kind and amount of shares of stock and/or other securities and/or property receivable with respect to one share of Common Stock upon such reclassification, consolidation, merger,
combination, sale or conveyance (instead of being measured by reference to the daily volume weighted average price of a share of Common Stock). The supplemental warrant referred to in clause (I) of the preceding sentence shall provide for
adjustments (without regard to limitations on the exerciseability of this Warrant) which shall be as nearly equivalent as practicable to the adjustments provided for in this Section 12. The above provision of this Section 12(e) shall
similarly apply to successive consolidations or mergers. 
 (f) Reductions by the Company. Anything in this Section 12 to the
contrary notwithstanding, the Company shall be entitled to make such reductions in the Exercise Price, in addition to those required by this Section 12, as it in its discretion shall determine to be advisable. 
 (g) Other Adjustments. In case any event shall occur as to which the other provisions of Section 12(c) to (f) are not strictly
applicable but as to which the failure to make any adjustment would not fairly protect the exercise rights represented by this Section 12 in accordance with the essential intent and principles hereof then, in each such case, the Holder and the
Company shall cooperate to agree upon an appropriate adjustment under this Section 12. If the Holder and the Company are unable to agree upon such an adjustment, the Company and the Holder shall jointly select an appraiser, who is experienced
in such matters. Upon receipt of such opinion, the Company will promptly mail a copy thereof to the Holder and shall make the adjustments described therein. The decision of such appraiser shall be final and conclusive, and the cost of such appraiser
shall be borne by the Company. 
 (h) Subsequent Adjustments. In the event that, as a result of an adjustment made pursuant to this
Section 12, Holders become entitled to receive any shares of Capital Stock of the Company other than shares of Common Stock, the number of such other shares so receivable upon the exercise of the Warrants shall be subject thereafter to
adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Warrant Shares contained herein. 
 (i) Calculations. All calculations under this Section 12 shall be made to the nearest four decimal points. 
 (j) Adjustment in Number of Securities. Upon each adjustment of the Exercise Price pursuant to the provisions of Section 12(c) or (d), the number of shares of Common Stock issuable upon exercise at
the adjusted Exercise Price of each Warrant shall be adjusted to the nearest full amount by multiplying a number equal to the Exercise Price in effect immediately prior to such adjustment by the number of shares of Common Stock issuable upon
exercise of Warrants immediately prior to such adjustment (without regard to limitations on the exerciseability of this Warrant) and dividing the product so obtained by the adjusted Exercise Price. 
  

 -12- 

 (k) Minimum Adjustment. No adjustment of the Exercise Price shall be made unless such adjustment
would require an increase or decrease of at least $0.01 in such price; provided that any adjustments which by reason of this Section 12(k) are not required to be made shall be carried forward and shall be made at the time of and together
with the next subsequent adjustment which, together with adjustments so carried forward, shall require an increase or decrease of at least $0.01 in the Exercise Price then in effect hereunder. 
 (l) No Impairment. The Company shall not, by amendment of its Certificate of Incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed under this Section 12 by the Company but will at
all times in good faith assist in the carrying out of all the provisions of this Section 12 and in the taking of all such action as may be necessary or appropriate in order to protect the exercise rights of the Holder against dilution or other
impairment, including without limitation taking all such action from time to time as may be necessary or appropriate to ensure that the par value per share of the Common Stock is at all times equal to or less than the Exercise Price in effect at
such time. 
 (m) Validity of Warrant Certificate. Irrespective of any adjustments or changes in the Exercise Price or the amount of
Warrant Securities purchasable upon exercise of Warrants, Warrant Certificates theretofore and thereafter issued shall continue to express the Exercise Price per share and the amount of Warrant Securities purchasable thereunder as of the date such
Warrant Certificates were originally issued; provided, the Holder shall be entitled to exercise Warrants represented by such Warrant Certificates after giving effect to each such adjustment and change, and such Warrant Certificate shall be
deemed to incorporate each such adjustment and change as if new Warrant Certificates reflecting each such adjustment and change had been issued to the Holders. 
  

	13.	[Intentionally Omitted]. 

  

	14.	Notices to Holders. 

 (a) After each adjustment of
the Exercise Price or the amount of Warrant Shares purchasable upon exercise of Warrants pursuant to Section 12, the Company will promptly prepare a certificate signed by the Chairman or President, and by the Treasurer or an Assistant Treasurer
or the Secretary or an Assistant Secretary, of the Company setting forth: (i) the Exercise Price, as so adjusted; (ii) the amount of Warrant Shares purchasable upon exercise of this Warrant after such adjustment; and (iii) a brief
statement of the facts accounting for such adjustment. The Company will promptly file such certificate with its records and cause a brief summary thereof to be delivered to each Holder. 
  

 -13- 

 (b) In the event: 
 (i) that the Company shall authorize the issuance to holders of shares of Common Stock of rights, options or warrants to subscribe for or
purchase shares of Common Stock or of any other subscription rights or warrants; 
 (ii) that the Company shall authorize the
distribution to holders of shares of Common Stock of cash, evidences of its indebtedness or assets; 
 (iii) of any
consolidation or merger to which the Company is a party and for which approval of any stockholders of the Company is required, or of the conveyance or transfer of the properties and assets of the Company substantially as an entirety, or of any
reclassification or change of Common Stock issuable upon exercise of the Warrants (other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of a subdivision or combination), or a tender
offer or exchange offer by the Company for shares of Common Stock; 
 (iv) of the voluntary or involuntary dissolution,
liquidation or winding up of the Company; or 
 (v) that the Company proposes to take any action which would require an
adjustment of the Exercise Price pursuant to Section 12; 
 then the Company shall cause to be delivered to the Holder, at least fifteen
(15) days prior to the applicable record date hereinafter specified, or promptly in the case of events for which there is no record date, a notice stating (x) the date as of which the holders of record of shares of Common Stock to be
entitled to receive any such rights, options, warrants or distribution are to be determined, (y) the initial expiration date set forth in any tender offer or exchange offer for shares of Common Stock, or (z) the date on which any such
consolidation, merger, conveyance, transfer, dissolution, liquidation or winding up is expected to become effective or consummated, and the date as of which it is expected that holders of record of shares of Common Stock shall be entitled to
exchange such shares for securities or other property, if any, deliverable upon such reclassification, consolidation, merger, conveyance, transfer, dissolution, liquidation or winding up. The failure to give the notice required by this
Section 14 or any defect therein shall not affect the legality or validity of any distribution, right, option, warrant, consolidation, merger, conveyance, transfer, dissolution, liquidation or winding up, or the vote upon any action.

 15. Transfer Taxes. The issuance of any shares or other securities upon the exercise of this Warrant, and the delivery of certificates or other
instruments representing such shares or other securities, shall be made without charge to the Holder for any tax or other charge in respect of such issuance. The Company shall not, however, be required to pay any tax which may be payable in respect
of any transfer involved in the issue and delivery of any certificate in a name other than that of the Holder and the Company shall not be required to issue or deliver any such certificate unless and until the person(s) or entity(ies) requesting the
issue thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been paid. 
  

 -14- 

 16. Loss or Mutilation of Warrant. Upon receipt of evidence satisfactory to the Company of the loss, theft,
destruction, or mutilation of this Warrant (and upon surrender of this Warrant if mutilated), and upon reimbursement of the Company’s reasonable incidental expenses, the Company covenants that it shall execute and deliver to the Holder a new
Warrant of like date, tenor, and denomination, in lieu of such warrant. 
 17. Obtaining Stock Exchange Listings. The Company shall from time to time
take all action which may be reasonably necessary so that the Warrant Shares, immediately upon their issuance upon the exercise of Warrants, will be listed on a principal securities exchange, automated quotation system or other market within the
United States of America, if any, on which other shares of Common Stock are then listed, if any. 
 18. No Rights as a Stockholder. The Holder shall
not have, solely on account of the Holder’s status as a holder of a Warrant, any rights of a stockholder of the Company, either at law or in equity, or to any notice of meetings of stockholders or of any other proceedings of the Company, except
as provided in this Warrant. 
 19. Miscellaneous. 
 (a) Notices. All notices, requests, consents and other communications hereunder shall be in writing, shall be mailed (i) if within domestic United States by first-class registered or certified airmail, or
nationally recognized overnight express courier, postage prepaid, or by facsimile, or (ii) if delivered from outside the United States, by International Federal Express (or comparable service) or facsimile, and shall be deemed given (A) if
delivered by first-class registered or certified mail domestic, three Business Days after so mailed, (B) if delivered by nationally recognized overnight carrier, one (1) Business Day after so mailed, (C) if delivered by International
Federal Express (or comparable service), two (2) Business Days after so mailed, (D) if delivered by facsimile, upon electric confirmation of receipt on the first Business Day after the transaction and shall be delivered as addressed as
follows: 
 (i) if to the Company, to: 
 Velocity Express Corporation 
 One Morningside Drive North 
 Building B – Suite 300 
 Westport, CT 06880 
 Attention: Chief Financial Officer 
 Telephone: (203) 349-4160 
 Telecopy: (203) 349-4198 
 (ii) if to the Holder, at such Holder’s address on the Warrant Register, or at such other address or addresses as may have been furnished to the Company in writing. 
  

 -15- 

 (iii) if the last or appointed day for the taking of any action or the expiration of any
right required or granted herein shall be a Saturday, Sunday or a legal holiday, then such action may be taken or such right may be exercised on the next succeeding day not a Saturday, Sunday or legal holiday. 
 (b) Successors. All the covenants and provisions of this Warrant by or for the benefit of the Company or the Holder shall bind and inure to the
benefit of their respective successors and assigns hereunder. The provisions of this warrant are intended to be for the benefit of all Holders from time to time of this Warrant and shall be enforceable by any such Holder or Holder of Warrant Shares.

 (c) Entire Agreement. This Warrant constitutes the entire agreement of the parties hereto and supersedes all prior written or oral
agreements, understandings and negotiations with respect to the subject matter hereof. 
 (d) Headings. The headings of the various
sections of this Warrant have been inserted for convenience of reference only and shall not be deemed to be part of this Warrant. 
 (e)
Severability. In case any provision contained in this Warrant should be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained in this Warrant shall not in any way be
affected or impaired thereby. 
 (f) Non-waiver and Expenses; Dispute Resolution Fees; Specific Performance. No delay or omission to
exercise any right, power, or remedy accruing to the Holder upon any breach or default of the Company under this Warrant shall impair any such right, power, or remedy of the Holder, nor shall it be construed to be a waiver of any such breach or
default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any
waiver, permit, consent, or approval of any kind or character on the part of the Holder of any breach or default under this Warrant, or any waiver on the part of the Holder of any provisions or conditions of this Warrant, must be in writing and
shall be effective only to the extent specifically set forth in such writing or as provided in this Warrant. All remedies, either under this Warrant or by law or otherwise afforded to the Holder, shall be cumulative and not alternative. If any
action at law or in equity is necessary to enforce or interpret the terms of this Warrant, the prevailing party shall be entitled to reasonable attorneys’ fees, costs, and disbursements in addition to any other relief to which such party may be
entitled. Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be
adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive the defense in any action for specific performance that a remedy at law would be adequate. 
 (g) Limitation of Liability. No provision hereof, in the absence of any affirmative action by Holder to exercise this Warrant or purchase Warrant
Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of Holder for the purchase price of any common shares or as a stockholder of the Company, whether such liability is asserted by the Company
or by creditors of the Company or other third parties. 
  

 -16- 

 (h) Governing Law. This Warrant shall be deemed to be a contract made under the laws of the State
of Delaware and for all purposes shall be construed in accordance with the internal laws of said State. 
 (i) Consent to Jurisdiction,
etc. 
 (i) EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE
EXCLUSIVE JURISDICTION OF THE NEW YORK SUPREME COURT IN THE CITY AND STATE OF NEW YORK AND ANY APPELLATE COURT THEREFROM OR THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND ANY APPELLATE COURT THEREFROM (COLLECTIVELY, THE
“NEW YORK COURTS”), IN ANY PROCEEDING ARISING OUT OF OR RELATING TO THIS WARRANT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT RELATING THERETO, AND EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH PROCEEDING MAY BE HEARD AND DETERMINED IN THE NEW YORK COURTS. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH PROCEEDING SHALL BE CONCLUSIVE AND MAY
BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. 
 (ii) EACH OF THE PARTIES
HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO SO, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY PROCEEDING ARISING OUT OF OR RELATING TO THIS WARRANT OR
THE TRANSACTIONS CONTEMPLATED HEREBY IN ANY OF THE NEW YORK COURTS. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH PROCEEDING IN ANY OF
THE NEW YORK COURTS. 
 (iii) EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY CONSENTS TO SERVICE OF PROCESS
IN THE MANNER PROVIDED FOR NOTICES IN SECTION 19(a). NOTHING IN THIS WARRANT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS WARRANT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. 
 (j) Interpretation. The language used in this Warrant shall be deemed to be the language chosen by the parties to express their mutual intent and
no rule of strict construction shall be applied against any party. 
  

 -17- 

 (k) Counterparts and Facsimiles. This Warrant may be executed in two or more counterparts, each of
which shall constitute an original, but all of which, when taken together, shall constitute but one instrument, and shall become effective when one or more counterparts have been signed by each party hereto and delivered to the other parties. This
Warrant may also be executed and delivered via facsimile, which shall be deemed an original. 
 [Signature page follows] 
  

 -18- 

									
	Dated:	 	May     , 2008	 		 	VELOCITY EXPRESS CORPORATION
					
		 		 		 	By:	 	 
		 		 		 		 	Edward W. Stone
		 		 		 		 	Chief Financial Officer

  

 -19- 

 FORM OF ASSIGNMENT 
 (To be executed by the registered holder if such holder desires to transfer the attached Warrant.) 
 FOR
VALUE RECEIVED,              hereby sells, assigns, and transfers unto              a Warrant to purchase
             shares of Common Stock, par value $0.004 per share, of Velocity Express Corporation (the “Company”), together with all right, title, and interest
therein, and does hereby irrevocably constitute and appoint              attorney to transfer such Warrant on the books of the Company, with full power of substitution. 

 

			
	Date
		
	By:	 	 
		 	Signature

 The signature on the foregoing Assignment must correspond to the name as written upon the face of
this Warrant in every particular, without alteration or enlargement or any change whatsoever. 
  

 -20- 

 NOTICE OF EXERCISE 
  

	To:	Velocity Express Corporation 

 One Morningside Drive North,

 Bldg. B, Suite 300 
 Westport,
Connecticut 06880 
 Attention: President 
 The
undersigned hereby exercises the accompanying Warrant to either (you must check a box): 
  ̈
Purchase              Warrant Shares covered by the accompanying Warrant and tenders payment herewith pursuant to Section 4 of the Warrant in the amount of
$             ; or 
  ̈ Effect a
non-cash exercise pursuant to Section 5 of the Warrant, and the undersigned elects to apply              Warrant Shares to such exercise; 
 and, in each case, requests that certificates for such securities be issued in the name of, and delivered to: 
 __________________________________________ 
 __________________________________________ 
 __________________________________________ 
 (Print Name, Address and Social Security 
 or Tax Identification Number)

 and, if such number of Warrant Shares shall not be all the Warrant Shares covered by the within Warrant, that a new Warrant for the balance of the Warrant
Shares covered by the within Warrant be registered in the name of, and delivered to, the undersigned at the address stated below. 
 If this Notice of
Exercise is delivered to elect cashless exercise with respect to Warrant Shares subject to an automatic exercise pursuant to Section 3 of the Warrant, check this box:   ̈ 
  

			
	Dated:
		
	By:	 	 
		 	Signature
		
	Address:	 	 

  

 -21-

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