Document:

Second Amended and Restated Loan and Security Agreement - Silicon Valley Bank

 Exhibit 10.10 
 Execution Version 
 SECOND AMENDED AND RESTATED LOAN
AND SECURITY AGREEMENT 
 This SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this
“Agreement”) dated as of June 26, 2009 between SILICON VALLEY BANK, a California corporation (“Bank”), and FORCE10 NETWORKS, INC., formerly known as Turin Networks, Inc., a Delaware corporation
(“Parent”), CARRIER ACCESS CORPORATION, a Delaware corporation, (“CAC”), and TITAN1 ACQUISITION CORP., formerly known as Force10 Networks, Inc., a Delaware corporation (“Titan1”,
together with Parent and CAC, collectively, jointly and severally “Borrower”), provides the terms on which Bank shall lend to Borrower and Borrower shall repay Bank. The parties agree as follows: 
 WHEREAS, Parent, CAC and Bank previously entered into an Amended and Restated Loan and Security Agreement, dated as of March 26, 2008,
as amended by that certain First Loan Modification Agreement, dated as of June 17, 2008, that certain Second Loan Modification Agreement, dated as of July 1, 2008, that certain Third Loan Modification Agreement, dated as of August 21,
2008, and that certain Fourth Loan Modification Agreement, dated as of March 26, 2009 (such agreement as amended up to but not including the date hereof, the “Original Loan Agreement”), pursuant to which Bank made loans to
Parent and CAC. 
 WHEREAS, Borrower has requested that Bank (i) provide financing to Borrower, and (ii) make certain
changes to the Original Loan Agreement, and Bank has agreed with such requests in accordance with the terms and conditions of this Agreement. 
 WHEREAS, Borrower and Bank intend by this Agreement to amend and restate the Original Loan Agreement in its entirety. Without limiting the generality of the foregoing, the parties hereto intend that this
Agreement (i) shall evidence Borrower’s indebtedness under the Original Loan Agreement, (ii) shall reaffirm the grant by Borrower of the Liens in the Collateral, (iii) is entered into in substitution for, and not in payment of,
the indebtedness of Borrower under the Original Loan Agreement, and (iv) shall not constitute a novation of Borrower’s indebtedness which was evidenced by the Original Loan Agreement. 
 NOW, THEREFORE, in consideration of the mutual conditions and agreements set forth in this Agreement, and for good and valuable
consideration, the receipt of which is hereby acknowledged, Borrower and Bank hereby agree to amend and restate the Original Loan Agreement 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 unless otherwise indicated in this Agreement. 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 and to deduction of Reserves, Bank shall make Advances not exceeding the Availability Amount. Amounts borrowed hereunder may
be repaid and, prior to the Revolving Line Maturity Date, reborrowed, subject to the applicable terms and conditions precedent herein; provided that (x) Revolving Advances made in

 
excess of the Borrowing Base pursuant to clause (ii) of the definition of Availability Amount (the “Nonformula Advances”) may only be made during the last nine
(9) Business Days of each quarter, commencing with the quarter ending June 30, 2009, and only if Borrower’s Net Cash is equal to or exceeds the Asset-Based Threshold at all times during such nine (9) Business Day period;
provided further that (x) Borrower shall repay any and all Nonformula Advances on or before the tenth (10th) Business Day after the applicable date of advance, or immediately if Borrower’s Net Cash is below the Asset-Based
Threshold at any time while such Nonformula Advance is outstanding, and (y) Borrower shall pay a minimum of five (5) Business Days’ interest on each and every Nonformula Advance, regardless of whether Borrower repays such Nonformula
Advance prior to the fifth (5th) Business Day following the date of advance. 
 (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 aggregate amount available to be used for the issuance of Letters of Credit may not
exceed (i) the lesser of (A) $5,000,000 or (B) the Availability Amount. 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. 
  

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 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 Five Hundred Thousand Dollars ($500,000) (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 amount
otherwise available for Credit Extensions under the Revolving Line shall be reduced by an amount equal to ten percent (10%) of each outstanding FX Forward Contract (the “FX Reduction Amount”). Any amounts needed to fully
reimburse Bank will be treated as Advances under the Revolving Line and will accrue interest at the interest rate applicable to Advances. 
 2.1.4 Cash Management Services Sublimit. As part of the Revolving Line, Borrower may use up to the lesser of (i) $5,000,000 or (ii) the Availability Amount, 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 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. 
 2.1.5 Term Loan B. 
 (a) Bank previously made the Term Loan B to Parent pursuant to the Original Loan Agreement. The aggregate principal amount outstanding under the Term Loan B as of the date of this Agreement is $3,472,222.32. The terms and conditions of the
Original Loan Agreement relating to the Term Loan B shall continue to apply to the Term Loan B. In case of conflict, the terms of this Agreement apply. 
 (b) Subject to Section 2.3(b), Borrower shall repay the Term Loan B in equal monthly installments of principal (each, a “Term Loan B Payment”), each in an amount equal to
$138,888.89 plus interest thereon, commencing on the last day of the month following the draw thereof. On the Term Loan B Maturity Date Borrower shall pay the entire unpaid principal balance of the Term Loan B plus all accrued but unpaid interest
thereon. 
 2.1.6 Term Loan C. 
 (a) Provided that no Event of Default has occurred and is continuing and subject to the other terms and conditions hereof, Bank shall make a new term loan available to Borrower (the “Term Loan
C”) in the amount of $5,000,000 upon Borrower’s written request therefor after Borrower’s receipt of not less than $20,000,000 in proceeds of Equity Financing on or before September 30, 2009 (the “Term Loan C Advance
Date”). 
 (b) Bank shall fund the Term Loan C on or before the end of the next Business Day following Borrower’s
written request therefor made in accordance with the terms and conditions of this Section 2.1.6. On October 1, 2009, Bank’s obligation to make the Term Loan C shall immediately terminate unless Bank has received Borrower’s
written request therefor prior to such date in accordance with the terms and conditions of this Section 2.1.6. 
 (c) Borrower shall repay the Term Loan C in equal monthly installments of principal (each, a “Term Loan C Payment”), each in an amount equal to $138,888.89 plus interest thereon, commencing on the last day of the month
following the draw thereof. On the Term Loan C Maturity Date Borrower shall pay the entire unpaid principal balance of the Term Loan C plus all accrued but unpaid interest thereon. 
  

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 2.1.7 Prepayment. Borrower may prepay the Term Loan B or the Term Loan C in whole or
in part at any time without premium or penalty. Partial prepayments of the Term Loan B or the Term Loan C shall be applied toward principal payments owing under this Section 2 in inverse order of maturity. 
 2.2 Overadvances. If, at any time, the sum of (a) the outstanding principal amount of any Advances (including any amounts used
for Cash Management Services but not including the Nonformula Advances), plus (b) the face amount of any outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve), plus (c) the FX
Reduction Amount (such sum being an “Overadvance”) exceeds the lesser of either the Revolving Line or the Borrowing Base, Borrower shall immediately pay to Bank in cash such Overadvance. Without limiting Borrower’s obligation
to repay Bank any amount of the Overadvance, Borrower agrees to pay Bank interest on the outstanding amount of any Overadvance, on demand, at the Default Rate. 
 2.3 Payment of Interest on the Credit Extensions. 
 (a) Interest
Rate. 
 (a) Revolving Advances. Subject to Section 2.3(b), Revolving Advances accrue
interest at the greater of (a) five percent (5.0%), and (b) the Prime Rate in effect from time to time, plus the applicable margin as set forth in the table below: 
  

			
	 Net Cash
	  	 Margin

	Greater than or equal to $17,500,000	  	Prime Rate + 1.0%
	Greater than or equal to $10,000,000 but less than $17,500,000	  	Prime Rate + 1.5%
	Less than $10,000,000	  	Prime Rate + 2.0%

 (b) Term Loan B. Bank previously made the Term Loan B to
Parent pursuant to the Original Loan Agreement. Subject to Section 2.3(b) of this Agreement, the Term Loan B accrues interest at the Prime Rate in effect from time to time, plus one percent (1.0%) per annum. 
 (c) Term Loan C. Subject to Section 2.3(b), the Term Loan C accrues interest at the greater of
(a) six percent (6.0%) per annum, and (b) the Prime Rate in effect from time to time, plus two percent (2.0%) per annum. 
 (b) Default Rate. Immediately upon the occurrence and during the continuance of an Event of Default, Obligations shall bear interest at a rate per annum which is five percentage points above the
rate that is otherwise applicable thereto (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) Adjustment
to Interest Rate. Changes to the interest rate of any Credit Extension based on changes to the Prime Rate shall be effective on the effective date of any change to the Prime Rate and to the extent of any such change. 
  

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 (d) 360-Day Year. Interest shall be computed on the basis of a 360-day year for the
actual number of days elapsed. 
 (e) Debit of Accounts. Bank may debit any of Borrower’s deposit accounts,
including the Designated Deposit Account, for principal and interest payments or any other amounts Borrower owes Bank when due. These debits shall not constitute a set-off. 
 (f) Payment; Interest Computation; Float Charge. Interest on the Advances is payable monthly on the last calendar day of each month.
In computing interest on the Obligations, all payments received after 12:00 p.m. Pacific time on any day shall be deemed received on the next Business Day. All payments received on any day when Borrower’s Net Cash is below the Asset-Based
Threshold shall be subject to a “float” charge in an amount equal to one (1) Business Day’s interest, at the interest rate applicable to the Loans. Said float charge is not included in interest for purposes of computing Minimum
Monthly Interest (if any) under this Agreement. The float charge for each month shall be payable on the last day of the month. Bank shall not, however, be required to credit Borrower’s account for the amount of any item of payment which is
unsatisfactory to Bank in its good faith business judgment, and Bank may charge Borrower’s Designated Deposit Account for the amount of any item of payment which is returned to Bank unpaid. 
 2.4 Fees. Borrower shall pay to Bank: 
 (a) Commitment Fee. 
 (a) A fully earned, nonrefundable
commitment fee for the Revolving Advance in the amount of $125,000 per year, due and payable in advance on the Effective Date and each anniversary thereof; provided that the commitment fee due on the Effective Date will be prorated based on a
$75,000 fee received on March 26, 2009. 
 (b) A fully earned, nonrefundable commitment fee for the Term
Loan C in the amount of $25,000, due and payable in advance on the Effective Date. 
 (b) Unused Revolving Line Fee. A
fee (the “Unused Revolving Line Facility Fee”), payable monthly, in arrears, on a calendar year basis, in an amount equal to 0.375 percent (0.375%) per annum of the average unused portion of the Revolving Line, as determined by
Bank. The unused portion of the Revolving Line, for the purposes of this calculation, shall include amounts reserved under the Cash Management Services Sublimit for products provided and under the Foreign Exchange Sublimit for FX Forward Contracts.
Borrower shall not be entitled to any credit, rebate or repayment of any Unused Revolving Line Facility Fee previously earned by Bank pursuant to this Section notwithstanding any termination of the Agreement, or suspension or termination of
Bank’s obligation to make loans and advances hereunder; 
 (c) Audit Fee. Bank’s customary fees for audits
(currently $850 per day per person), plus all out-of-pocket expenses; 
 (d) Letter of Credit Fee. Bank’s customary
fees and expenses for the issuance or renewal of Letters of Credit, including, without limitation, a Letter of Credit Fee of one and one-quarter percent (1.25%) per annum of the face amount of each Letter of Credit issued, payable in advance
upon the issuance, each anniversary of the issuance, and the renewal, if any, of such Letter of Credit by Bank; and 
 (e)
Collateral Handling Fee. A monthly Collateral handling fee in the amount of $500, due and payable on the last day of each month, if Borrower’s Net Cash is below the Asset-Based Threshold at any time while any Obligations are outstanding.

  

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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 Borrower, as applicable, shall consent to or have delivered, in form and
substance satisfactory to Bank, such documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate, including, without limitation: 
 (a) duly executed original signatures to this Agreement and the Loan Documents; 
 (b) duly executed original signature to the Warrant and to the Amended and Restated Warrants; 
 (c) a Transaction
Report, evidencing the availability of all Revolving Advances (if any) being funded; 
 (d) Operating Documents and a good
standing certificate for each of Borrower certified by the Secretary of State (or applicable governing body) of each entity’s state of organization, as of a date no earlier than thirty (30) days prior to the Effective Date; 
 (e) duly executed original signatures to the completed Borrowing Resolutions for Borrower; 
 (f) certified copies, dated as of a recent date, of financing statement searches, as Bank shall request, accompanied by written evidence
(including any UCC termination statements) that the Liens indicated in any such financing statements either constitute Permitted Liens or have been or, in connection with the initial Credit Extension, will be terminated or released; 
 (g) the Perfection Certificates executed by each Borrower; 
 (h) a copy of Parent’s duly executed Investors’ Rights Agreement and any amendments thereto; 
 (i) evidence satisfactory to Bank that the insurance policies required by Section 6.7 hereof are in full force and effect, together with appropriate evidence showing loss payable
and/or additional insured clauses or endorsements in favor of Bank; and 
 (j) payment of 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) except as
otherwise provided in Section 3.4, timely receipt of an executed Transaction Report; 
 (b) the representations and
warranties in Section 5 shall be true in all material respects on the date of the Transaction Report 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

  

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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 Conditions Subsequent to all Credit Extensions. Bank’s
obligations to make each Credit Extension is further subject to the following: 
 (a) completion by Bank of the collateral audit
for Titan1 within ninety (90) days of the Effective Date; 
 (b) Borrower shall have delivered duly executed original
signatures to the Control Agreements within sixty (60) days of the Effective Date; provided that a Control Agreement for Borrower’s deposit accounts maintained at Bank of America, N.A. is not required, so long as the amount of cash
on deposit in Borrower’s deposit accounts maintained at Bank of America, N.A. does not exceed $200,000 in the aggregate at any time; and 
 (c) Borrower shall have delivered within thirty (30) days of the Effective Date original certificates representing (i) 65% of all outstanding capital stock, of any class, (or other equity
interests) of Force10 International, Ltd., a company organized and existing under the laws of the Cayman Islands, (ii) 100% of all outstanding capital stock, of any class, of each domestic Subsidiary of Borrower, and (iii) 65% of all
outstanding capital stock, of any class of each Material Subsidiary of Borrower, together, in each case, with related stock powers, duly executed in blank. 
 3.4 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 a Credit Extension made 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 Credit Extension in the absence of a required item shall be made in Bank’s sole discretion. 
 3.5 Procedures for Borrowing. Subject to the prior satisfaction of all other applicable conditions to the making of an Advance set forth in this Agreement, to obtain an Advance (other than Advances
under Sections 2.1.2, 2.1.3 or 2.1.4), Borrower shall notify Bank (which notice shall be irrevocable) by electronic mail, facsimile, or telephone by 12:00 p.m. Pacific time on the Funding Date of the Advance. Together with such
notification, Borrower must promptly deliver to Bank by electronic mail or facsimile a completed Transaction Report executed by a Responsible Officer or his or her designee. Bank shall credit Advances to the Designated Deposit Account. Bank may make
Advances under this Agreement based on instructions from a Responsible Officer or his or her designee or without instructions if the Advances 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. 
  

	 	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 shall acquire a commercial tort claim in which the potential
recovery exceeds $50,000 per claim

  

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or an aggregate of $100,000 per year, Borrower shall promptly notify Bank in a writing signed by Borrower 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. 
 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.

 4.2 Authorization to File Financing Statements. Borrower hereby authorizes Bank to file financing statements, without
notice to Borrower, 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 or any other Person, shall be deemed to violate the
rights of Bank under the Code. Such financing statements may indicate the Collateral as “all assets of the Debtor” or words of similar effect, or as being of an equal or lesser scope, or with greater detail, all in Bank’s discretion.

  

	 	5	REPRESENTATIONS AND WARRANTIES 

 Borrower represents and warrants as follows: 
 5.1 Due Organization,
Authorization; Power and Authority. Borrower is duly existing and in good standing as a Registered Organization in its jurisdiction of formation and is qualified and licensed to do business and is in good standing in any jurisdiction in which
the conduct of its business or its ownership of property requires that it be qualified except where the failure to do so could not reasonably be expected to have a material adverse effect on Borrower’s business. In connection with this
Agreement, Borrower has delivered to Bank completed certificates each signed by Borrower, respectively, entitled “Perfection Certificate”. Borrower represents and warrants to Bank that (a) Borrower’s exact legal name is
that indicated on the Perfection Certificate and on the signature page hereof; (b) Borrower is an organization of the type, and is organized in the jurisdiction, set forth in the Perfection Certificate; (c) Borrower is a Registered
Organization and the Perfection Certificate accurately sets forth Borrower’s organizational identification number or accurately states that Borrower has none; (d) the Perfection Certificate accurately sets forth Borrower’s place of
business, or, if more than one, its chief executive office as well as Borrower’s mailing address (if different than its chief executive office); (e) Borrower (and each of its predecessors) has not, in the past five (5) years, changed
its jurisdiction of formation, organizational structure or type, or any organizational number assigned by its jurisdiction; and (f) all other information set forth on the Perfection Certificate pertaining to Borrower and each of its
Subsidiaries is accurate and complete (it being understood and agreed that Borrower may from time to time update certain information in the Perfection Certificate after the Effective Date to the extent permitted by one or more specific provisions in
this Agreement). 
 The execution, delivery and performance by Borrower of the Loan Documents to which it is a party have been
duly authorized, and do not (i) conflict with any of Borrower’s organizational documents, (ii) contravene, conflict with, constitute a default under or violate any material Requirement of Law, (iii) contravene, conflict or
violate any applicable order, writ, judgment, injunction, decree, determination or award of any Governmental Authority by which Borrower or any its Subsidiaries or any of its property or assets may be bound or affected, (iv) require any action
by, filing, registration, or qualification with, or Governmental Approval from, any Governmental Authority (except such Governmental Approvals which have already been obtained and are in full force and effect) or (v) constitute an event
of default under any material agreement by which Borrower is bound. Borrower is not in default under any agreement to which it is a party or by which it is bound in which the default could have a material adverse effect on Borrower’s business.

  

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 5.2 Capital Stock and Ownership. The Capital Stock of the Borrower and each of
its Subsidiaries has been duly authorized and validly issued and is fully paid and non assessable. Schedule 5.2 correctly sets forth the ownership interest of each Borrower and each of its Subsidiaries as of the Effective Date. 
 5.3 Collateral. 
 Borrower has good title to, has rights in, and the power to transfer each item of the Collateral upon which it purports to grant a Lien hereunder, free and clear of any and all Liens except Permitted Liens. Borrower has no deposit accounts
other than the deposit accounts with Bank, the deposit accounts, if any, described in the Perfection Certificate delivered to Bank in connection herewith, or of which Borrower has given Bank notice and taken such actions as are necessary to give
Bank a perfected security interest therein. The Accounts are bona fide, existing obligations of the Account Debtors. 
 The
Collateral is not in the possession of any third party bailee (such as a warehouse) except as otherwise provided in the Perfection Certificate. None of the components of the Collateral shall be maintained at locations other than as provided in the
Perfection Certificate or as permitted pursuant to Section 7.2. In the event that Borrower, after the date hereof, intends to store or otherwise deliver any portion of the Collateral to a bailee, then Borrower will first receive the
written consent of Bank and such bailee must execute and deliver a bailee agreement in form and substance satisfactory to Bank in its sole discretion. 
 All Inventory is in all material respects of good and marketable quality, free from material defects. 
 Borrower is the sole owner of its intellectual property, except for exclusive licenses for certain OEM customers and non-exclusive licenses granted to its customers in the ordinary course of business. To
the best of Borrower’s knowledge, each patent is valid and enforceable and no part of the intellectual property has been judged invalid or unenforceable, in whole or in part, and to the best of Borrower’s knowledge, no claim has been made
that any part of the intellectual property violates the rights of any third party except to the extent such claim could not reasonably be expected to have a material adverse effect on Borrower’s business. 
 5.4 Accounts Receivable; Inventory. 
 (a) For each Account with respect to which Advances are requested, on the date each Advance is requested and made, such Account shall be an Eligible Account. 
 (b) All statements made and all unpaid balances appearing in all invoices, instruments and other documents evidencing the Eligible Accounts
are and shall be true and correct and all such invoices, instruments and other documents, and all of Borrower’s Books are genuine and in all respects what they purport to be. Whether or not an Event of Default has occurred and is continuing,
Bank may notify any Account Debtor owing Borrower money of Bank’s security interest in such funds and verify the amount of such Eligible Account. All sales and other transactions underlying or giving rise to each Eligible Account shall comply
in all material respects with all applicable laws and governmental rules and regulations. Borrower has no knowledge of any actual or imminent Insolvency Proceeding of any Account Debtor whose accounts are Eligible Accounts in any Transaction Report.
To the best of Borrower’s knowledge, all signatures and endorsements on all documents, instruments, and agreements relating to all Eligible Accounts are genuine, and all such documents, instruments and agreements are legally enforceable in
accordance with their terms. 
 (c) For any item of Inventory consisting of Eligible Inventory in any Transaction Report, such
Inventory (i) consists of finished goods, in good, new, and salable condition, which is not perishable, returned, consigned, obsolete, not sellable, damaged, or defective, and is not comprised of demonstrative

  

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or custom inventory, works in progress, packaging or shipping materials, or supplies; (ii) meets all applicable governmental standards; (iii) has been manufactured in compliance with
the Fair Labor Standards Act; (iv) is not subject to any Liens, except the first priority Liens granted or in favor of Bank under this Agreement or any of the other Loan Documents; and (v) is located at the locations identified by Borrower
in the Perfection Certificate where it maintains Inventory (or any location permitted under Section 7.2). 
 5.5
Litigation. There are no actions or proceedings pending or, to the knowledge of the Responsible Officers, threatened in writing by or against Borrower or any of its Subsidiaries which involve or could reasonably be expected to involve more than
Five Hundred Thousand Dollars ($500,000). 
 5.6 No Material Deviation in Financial Statements. All consolidated
financial statements for Borrower and any of its Subsidiaries delivered to Bank fairly present in all material respects Borrower’s consolidated financial condition and Borrower’s consolidated results of operations. There has not been any
material deterioration in Borrower’s consolidated financial condition since the date of the most recent financial statements submitted to Bank. 
 5.7 Solvency. The fair salable value of Borrower’s assets (including goodwill minus disposition costs) exceeds the fair value of its liabilities; Borrower is not left with unreasonably small
capital after the transactions in this Agreement; and Borrower is able to pay its debts (including trade debts) as they mature. 
 5.8 Regulatory Compliance. Borrower is not an “investment company” or a company “controlled” by an “investment company” under the Investment Company Act of 1940, as amended. Borrower is not engaged as
one of its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of Governors). Borrower has complied in all material respects with the Federal Fair Labor Standards Act. Neither Borrower
nor any of its Subsidiaries is a “holding company” or an “affiliate” of a “holding company” or a “subsidiary company” of a “holding company” as each term is defined and used in the Public Utility
Holding Company Act of 2005. Borrower has not violated any laws, ordinances or rules, the violation of which could reasonably be expected to have a material adverse effect on its business. None of Borrower’s or any of its Subsidiaries’
properties or assets has been used by Borrower or any 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 have obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all Government Authorities that are necessary to continue their respective businesses as currently
conducted. 
 5.9 Subsidiaries; Investments. Borrower does not own any stock, partnership interest or other equity
securities except for Permitted Investments. 
 5.10 Tax Returns and Payments; Pension Contributions. Borrower has timely
filed all required tax returns and reports, or extensions thereof, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower. Borrower may defer payment of any contested taxes,
provided that Borrower (a) in good faith contests its obligation to pay the taxes by appropriate proceedings promptly and diligently instituted and conducted, (b) notifies 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”. Borrower is unaware of any claims or adjustments proposed for any of Borrower’s prior tax years which could result in additional taxes becoming due and payable by Borrower. Borrower has paid all amounts necessary to fund all present
pension, profit sharing and deferred compensation plans in accordance with their terms, and Borrower has not withdrawn from participation in, and has not permitted partial or complete termination

  

 -10- 

 
of, or permitted the occurrence of any other event with respect to, any such plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension
Benefit Guaranty Corporation or its successors or any other governmental agency. 
 5.11 Use of Proceeds. Borrower shall
use the proceeds of the Credit Extensions solely as working capital and to fund its general business requirements and not for personal, family, household or agricultural purposes. 
 5.12 Full Disclosure. No written representation, warranty or other statement of Borrower in any certificate or written statement
given to Bank, as of the date such representation, warranty, or other statement was made, taken together with all such written certificates and written statements given 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 (it being recognized by Bank that the projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are
not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results). 
  

	 	6	AFFIRMATIVE COVENANTS 

 Borrower shall do all of the following: 
 6.1 Government Compliance. Maintain its and all its
Subsidiaries’ legal existence and good standing in their respective jurisdictions of formation and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect on
Borrower’s business or operations. Borrower shall comply, and have each Subsidiary comply, with all laws, ordinances and regulations to which it is subject, noncompliance with which could have a material adverse effect on Borrower’s
business. 
 6.2 Financial Statements, Reports, Certificates. 
 (a) Provide Bank with the following: 
 (a) monthly, within thirty (30) days after the end of each month, or weekly if Borrower’s Net Cash is below the Asset-Based Threshold and any Obligations are outstanding, a Transaction Report
(and any schedules related thereto) in the form attached hereto as Exhibit B, signed by a Responsible Officer; 
 (b) within thirty (30) days after the end of each month, (A) monthly accounts receivable agings, aged by invoice date, (B) monthly accounts payable agings, aged by invoice date, and outstanding or held check registers, if
any, and (C) monthly reconciliations of accounts receivable agings (aged by invoice date), transaction reports and general ledger; 
 (c) as soon as available, and in any event within thirty (30) days after the end of each month, monthly unaudited financial statements; 
 (d) within thirty (30) days after the end of each month a monthly Compliance Certificate signed by a Responsible
Officer, certifying that as of the end of such month, Borrower was in full compliance with all of the terms and conditions of this Agreement, and setting forth calculations showing compliance with the financial covenants set forth in this Agreement
and such other information as Bank shall reasonably request, including, without limitation, a statement that at the end of such month there were no held checks; 
 (e) within sixty (60) days after the end of each fiscal year of Borrower, (A) annual operating budgets (including
income statements, balance sheets and cash flow statements, by

  

 -11- 

 
month) for the upcoming fiscal year of Borrower, and (B) annual financial projections for the following fiscal year (on a quarterly basis) as approved by Borrower’s board of directors,
together with any related business forecasts used in the preparation of such annual financial projections; 
 (f)
as soon as available, and in any event within 120 days following the end of Borrower’s fiscal year, annual financial statements certified by, and with an unqualified opinion of, independent certified public accountants acceptable to Bank; and

 (b) In the event that Borrower becomes subject to the reporting requirements under the Securities Exchange Act of 1934, as
amended, provide the Bank within five (5) days after filing, all reports on Form 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission or a link thereto on Borrower’s or another website on the Internet. 
 (c) Provide prompt written notice of (i) the registration of any application filed by Borrower in the United States Patent Trademark
Office for a patent, or to register a trademark or service mark or (ii) the registration of any copyright, including any subsequent ownership right of Borrower in or to any copyright, patent or trademark not previously disclosed in writing to
Bank. 
 (d) Bank may conduct a field examination two times per year, or more frequently if a Default or Event of Default has
occurred or is continuing. 
 6.3 Accounts Receivable. 
 (a) Schedules and Documents Relating to Accounts. Deliver to Bank transaction reports and schedules of collections, as provided
in Section 6.2, on Bank’s standard forms; provided however, that Borrower’s failure to execute and deliver the same shall not affect or limit Bank’s Lien and other rights in all of Borrower’s Accounts, nor
shall Bank’s failure to advance or lend against a specific Account affect or limit Bank’s Lien and other rights therein. If requested by Bank, Borrower shall furnish Bank with copies (or, at Bank’s request, originals) of all
contracts, orders, invoices, and other similar documents, and all shipping instructions, delivery receipts, bills of lading, and other evidence of delivery, for any goods the sale or disposition of which gave rise to such Accounts. In addition,
Borrower shall deliver to Bank, on its request, the originals of all instruments, chattel paper, security agreements, guarantees and other documents and property evidencing or securing any Accounts, in the same form as received, with all necessary
indorsements, and copies of all credit memos. 
 (b) Disputes. Promptly notify Bank of all disputes or claims relating to
Accounts. Borrower may forgive (completely or partially), compromise, or settle any Account for less than payment in full, or agree to do any of the foregoing so long as (i) Borrower does so in good faith, in a commercially reasonable manner,
in the ordinary course of business, in arm’s-length transactions, and reports the same to Bank in the regular reports provided to Bank; (ii) no Default or Event of Default has occurred and is continuing; and (iii) after taking into
account all such discounts, settlements and forgiveness, the total outstanding Advances (including any amounts used for Cash Management Services but not including any Nonformula Advances) will not exceed the lesser of either the Revolving Line or
the Borrowing Base. 
 (c) Collection of Accounts. Direct all Accounts to a lockbox account or such other “blocked
account” as Bank may specify, pursuant to a blocked account agreement. If Borrower’s Net Cash is equal to or exceeds the Asset-Based Threshold, the lockbox will be swept nightly to Borrower’s primary operating account with Bank. If
Borrower’s Net Cash is below the Asset-Based Threshold, all proceeds of the Accounts shall be applied to the Obligations pursuant to the terms of Section 9.4 hereof and when the outstanding balance on the Obligations is zero (0),
the lockbox funds will be promptly transferred to Borrower’s primary operating account with Bank. 
  

 -12- 

 (d) Returns. Provided no Event of Default has occurred and is continuing, if
any Account Debtor returns any Inventory to Borrower, Borrower shall promptly (i) determine the reason for such return, (ii) issue a credit memorandum to the Account Debtor in the appropriate amount, and (iii) provide a copy of such
credit memorandum to Bank, upon request from Bank. In the event any attempted return occurs after the occurrence and during the continuance of any Event of Default, Borrower shall hold the returned Inventory in trust for Bank, and immediately
notify Bank of the return of the Inventory. 
 (e) Verification. Bank may, from time to time, verify directly with
the respective Account Debtors the validity, amount and other matters relating to the Accounts, either in the name of Borrower or Bank or such other name as Bank may choose. 
 (f) No Liability. Bank shall not be responsible or liable for any shortage or discrepancy in, damage to, or loss or
destruction of, any goods, the sale or other disposition of which gives rise to an Account, or for any error, act, omission, or delay of any kind occurring in the settlement, failure to settle, collection or failure to collect any Account, or for
settling any Account in good faith for less than the full amount thereof, nor shall Bank be deemed to be responsible for any of Borrower’s obligations under any contract or agreement giving rise to an Account. Nothing herein shall, however,
relieve Bank from liability for its own gross negligence or willful misconduct. 
 6.4 Remittance of Proceeds. Except as
otherwise provided in Section 6.3(c), deliver, in kind, all proceeds arising from the disposition of any Collateral to Bank in the original form in which received by Borrower not later than three (3) Business Days after receipt by
Borrower, to be applied to the Obligations pursuant to the terms of Section 9.4 hereof; provided that, if no Default or Event of Default has occurred and is continuing, Borrower shall not be obligated to remit to Bank the proceeds
of the sale of worn out or obsolete Equipment disposed of by Borrower in good faith in an arm’s length transaction for an aggregate purchase price of $500,000 or less (for all such transactions in any fiscal year). Borrower agrees that it will
not commingle proceeds of Collateral with any of Borrower’s other funds or property, but will hold such proceeds separate and apart from such other funds and property and in an express trust for Bank. Nothing in this Section limits the
restrictions on disposition of Collateral set forth elsewhere in this Agreement. 
 6.5 Taxes; Pensions. Timely file, and
require each of its Subsidiaries to timely file, all required tax returns and reports and timely pay, and require each of its Subsidiaries to timely pay, all foreign, federal, state and local taxes, assessments, deposits and contributions owed by
Borrower and each of its Subsidiaries, except for deferred payment of any taxes contested pursuant to the terms of Section 5.10 hereof, and shall deliver to Bank, on demand, appropriate certificates attesting to such payments, and pay
all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms. 
 6.6 Access to Collateral; Books and Records; Verification of Accounts. 
 (a) At reasonable times, on three
(3) Business Day’s notice (provided no notice is required if an Event of Default has occurred and is continuing), Bank, or its agents, shall have the right to inspect the Collateral and the right to audit and copy Borrower’s Books.
The foregoing inspections and audits shall be at Borrower’s expense, and the charge therefor shall be $850 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. In the event Borrower and Bank schedule an audit more than ten (10) days in advance, and Borrower cancels or seeks to reschedules the audit with less than ten (10) days written notice to Bank, then (without limiting
any of Bank’s rights or remedies), Borrower shall pay Bank a fee of $1,000 plus any out-of-pocket expenses incurred by Bank to compensate Bank for the anticipated costs and expenses of the cancellation or rescheduling. 
  

 -13- 

 (b) Bank may, from time to time, verify directly with the respective Account Debtors the
validity, amount and other matters relating to the Accounts, by means of mail, telephone or otherwise, either in the name of Borrowers or Bank or such other name as Bank may choose. Bank or its designee may, at any time, notify Account Debtors that
Bank has a security interest in the Accounts and, after the occurrence and during the continuation of an Event of Default, that payment on the Accounts is to be made directly to Bank. 
 6.7 Insurance. Keep its business and the Collateral insured for risks and in amounts standard for companies in Borrower’s
industry and location and as Bank may reasonably request. Insurance policies shall be in a form, with companies, and in amounts that are satisfactory to Bank. All property policies shall have a lender’s loss payable endorsement showing Bank as
an additional loss payee and waive subrogation against Bank, and all liability policies shall show, or have endorsements showing, Bank as an additional insured. All policies (or the loss payable and additional insured endorsements) shall provide
that the insurer shall endeavor to give Bank at least twenty (20) days notice before canceling, or declining to renew its policy. At Bank’s request, Borrower shall deliver certified copies of policies and evidence of all premium payments.
In an Event of Default, proceeds payable under any property policy shall, at Bank’s option, be payable to Bank on account of the Obligations. If Borrower fails to obtain insurance as required under this Section 6.7 or to pay any
amount or furnish any required proof of payment to third persons and Bank, Bank may, upon substantially concurrent notice to Borrower, make all or part of such payment or obtain such insurance policies required in this Section 6.7, and
take any reasonable and prudent action under the policies. 
 6.8 Operating Accounts. 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 Bank’s Affiliates. For each Collateral Account that Borrower 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 employees and identified to Bank by Borrower as such. In addition, Borrower shall not be required to provide Bank with signed account control agreements for their deposit accounts maintained at Bank of
America, N.A. so long as the aggregate amount of cash on deposit in such deposit accounts does not exceed $200,000 at any time. 
 6.9 Financial Covenants. 
 Maintain at all times, to be tested as of the last day of each month, unless
otherwise noted, on a consolidated basis with respect to Borrower and its Subsidiaries: 
 (a) Quick Ratio. A Quick Ratio
of at least 1.70 to 1.0. 
 (b) EBITDA. Maintain, measured as of the end of each of the following fiscal quarters, EBITDA
of at least: 
  

					
	 Quarterly Period Ended
	  	Minimum EBITDA	 
	June, 30, 2009	  	$	(14,800,000	) 
	September 30, 2009	  	$	(8,100,000	) 
	December 31, 2009	  	$	(7,300,000	) 
	March 31,2009	  	$	(3,900,000	) 
	June 30, 2010	  	$	(1,900,000	) 
	September 30, 2010	  	$	500,000	  
	Thereafter	  	 	TBD	  

  

 -14- 

 (c) Equity Financing. Borrower shall be in receipt of the net proceeds of the Equity
Financing, in an amount not less than $10,000,000 on or before June 30, 2009, and an additional amount not less than $10,000,000 on or before September 30, 2009, for a total aggregate amount of not less than
$20,000,000 on or before September 30, 2009. 
 6.10 Protection of Intellectual Property Rights. Borrower shall:
(a) protect, defend and maintain the validity and enforceability of its intellectual property necessary to conduct its business; (b) promptly advise Bank in writing of material infringements of its intellectual property; and (c) not
allow any intellectual property material to Borrower’s business to be abandoned, forfeited or dedicated to the public without Bank’s written consent. 
 6.11 Litigation Cooperation. From the date hereof and continuing through the termination of this Agreement, make available to Bank, without expense to Bank, Borrower and its 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.

 6.12 Further Assurances. 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 do any of the following without Bank’s prior written consent: 
 7.1 Dispositions.
Convey, sell, lease, transfer or otherwise dispose of (collectively, “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, except for Transfers (a) of Inventory in the ordinary
course of business; (b) of worn-out or obsolete Equipment; and (c) in connection with Permitted Liens and Permitted Investments. 
 7.2 Changes in Business, Management, Control, or Business Locations. (a) Engage in or permit any of its Subsidiaries to engage in any business other than the businesses currently engaged in by
Borrower and such Subsidiary, as applicable, or reasonably related thereto; (b) liquidate or dissolve; or (c) (i) have a change in management or (ii) permit or suffer any Change in Control. Borrower shall not, without at least
thirty (30) days prior written notice to Bank: (1) add any new offices or business locations, including warehouses (unless such new offices or business locations contain less than One Hundred Thousand Dollars ($100,000) in Borrower’s
assets or property), (2) change its jurisdiction of organization, (3) change its organizational structure or type, (4) change its legal name, or (5) change any organizational number (if any) assigned by its jurisdiction of
organization. 
 7.3 Mergers or Acquisitions. Merge or consolidate, or permit any of its Subsidiaries to merge or
consolidate, with any other Person unless such Borrower or Subsidiary is the surviving entity, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person. A Subsidiary may
merge or consolidate into another Subsidiary or into Borrower. 
  

 -15- 

 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, allow, or suffer any Lien
on any of the Collateral, 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, or permit any Collateral not to be subject to the first priority
security interest granted herein. 
 7.6 Maintenance of Collateral Accounts. Maintain any Collateral Account except
pursuant to the terms of Section 6.8 hereof. 
 7.7 Distributions; Investments. (a) Pay any
dividends or make any distribution or payment or redeem, retire or purchase any capital stock, other than Permitted Distributions, or (b) directly or indirectly make any Investment other than Permitted Investments, or permit any of its
Subsidiaries to do so. 
 7.8 Transactions with Affiliates. Directly or indirectly enter into or permit to exist any
material transaction with any Affiliate of Borrower, except for transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm’s
length transaction with a non-affiliated Person. 
 7.9 Subordinated Debt. (a) Make or permit any payment on any
Subordinated Debt, except under the terms of the subordination, intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any document relating to the Subordinated Debt which would
increase the amount thereof or adversely affect the subordination thereof to Obligations owed to Bank. 
 7.10
Compliance. Become an “investment company” or a company controlled by an “investment company”, under the Investment Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase
or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds of 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 business, or permit any of its Subsidiaries to do so; withdraw or permit any domestic 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, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other
governmental agency. 
  

	 	8	EVENTS OF DEFAULT 

 Any one of the following shall constitute an event of default (an “Event of Default”) under this Agreement: 
 8.1 Payment Default. Borrower fails to (a) make any payment of principal or interest on any Credit Extension on or before its due date, or (b) pay any other Obligations within three (3) Business Days after such
Obligations are due and payable (which three (3) day grace period shall not apply to payments due on the Revolving Line Maturity Date). 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); 
  

 -16- 

 8.2 Covenant Default. 
 (a) Borrower fails or neglects to perform any obligation in Sections 6.2, 6.3, 6.4, 6.5, 6.7, 6.8, 6.9, 6.12 or violates any
covenant in Section 7; or 
 (b) Borrower fails or neglects to perform, keep, or observe any other term, provision,
condition, covenant or agreement contained in this Agreement or any Loan Documents, and as to any default (other than those specified in this Section 8) under such other term, provision, condition, covenant or agreement that can be cured, has
failed to cure the default within ten (10) days after the occurrence thereof; provided however, that if the default cannot by its nature be cured within the ten (10) day period or cannot after diligent attempts by Borrower be cured
within such ten (10) day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional 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 cure the default shall not be deemed an Event of Default (but no Credit Extensions shall 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; Levy; Restraint on Business. (a) (i) The
service of process seeking to attach, by trustee or similar process, any funds of Borrower or of any entity under control of Borrower (including a Subsidiary) on deposit with Bank or any Bank Affiliate, or (ii) a notice of lien, levy, or
assessment is filed against any of Borrower’s assets by any government agency, and the same under subclauses (i) and (ii) hereof are not, within ten (10) days after the occurrence thereof, discharged or stayed (whether through
the posting of a bond or otherwise); provided however, no Credit Extensions shall be made during any ten (10) day cure period; and (b) (i) any material portion of Borrower’s assets is attached, seized, levied on, or comes
into possession of a trustee or receiver, or (ii) any court order enjoins, restrains, or prevents Borrower from conducting any part of its business; 
 8.5 Insolvency. (a) Borrower is unable to pay its debts (including trade debts) as they become due or otherwise becomes insolvent; (b) Borrower begins an Insolvency Proceeding; or
(c) an Insolvency Proceeding is begun against Borrower and not dismissed or stayed within thirty (30) days (but no Credit Extensions shall be made while of any of the conditions described in clause (a) exist and/or until any
Insolvency Proceeding is dismissed); 
 8.6 Other Agreements. There is a default in any agreement to which Borrower is a
party with a third party or parties resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess of Two Hundred Thousand Dollars ($200,000) or that could have a
material adverse effect on Borrower’s business; 
 8.7 Judgments. One or more judgments, orders, or decrees for the
payment of money in an amount, individually or in the aggregate, of at least One Hundred Thousand Dollars ($100,000) (not covered by independent third-party insurance as to which liability has been accepted by such insurance carrier) shall be
rendered against Borrower and shall remain unsatisfied, unvacated, or unstayed for a period of ten (10) days after the entry thereof (provided that no Credit Extensions will be made prior to the satisfaction, vacation, or stay of such judgment,
order, or decree); 
 8.8 Misrepresentations. Borrower or any Person acting for Borrower makes any representation,
warranty, or other statement now or later in this Agreement, any Loan Document or in any writing delivered to Bank or to induce Bank to enter this Agreement or any Loan Document, and such representation, warranty, or other statement is incorrect in
any material respect when made. 
  

 -17- 

	 	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) deposit 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 Forward 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 money of Bank’s security interest in such funds, and verify the amount of such account; 
 (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 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 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 it holds, or (ii) any
amount held by Bank owing to or for the credit or the account of Borrower; 
 (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 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 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 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 name on any checks or other forms of payment or security; (b) sign Borrower’s name

  

 -18- 

 
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 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 Bank as its lawful
attorney-in-fact to sign Borrower’s name on any documents necessary to perfect or continue the perfection of Bank’s security interest in the Collateral 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 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 Protective Payments. If Borrower fails to obtain the insurance called for by Section 6.7 or fails to pay any premium thereon or fails to pay any other amount which Borrower 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 interest at the then highest applicable rate, and secured by the
Collateral. Bank will make reasonable efforts to provide Borrower 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. 
 9.4 Application of Payments and Proceeds. Borrower shall
have no right to specify the order or the accounts to which Bank shall allocate or apply any payments required to be made by Borrower to Bank or otherwise received by Bank under this Agreement when any such allocation or application is not specified
elsewhere in this Agreement. If an Event of Default has occurred and is continuing or if Borrower’s Net Cash is below the Asset-Based Threshold, Bank may apply any funds in its possession, whether from Borrower 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 by credit to
the Designated Deposit Account or to other Persons legally entitled thereto; Borrower 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. 
 9.5 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 bears all risk of loss, damage or destruction of the Collateral. 
 9.6 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.

  

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 9.7 Reserves. 
 (a) Without limiting the right of Bank to cease making Advances on an Event of Default, Bank shall have the right, from time to time and upon
reasonable notice to Borrower, to establish and deduct the Reserves from the amount of Advances, Letters of Credit and other financial accommodations under the lending formula(s) provided in the Agreement. In exercising its rights under this
Section 9.7, Bank shall act in a commercially reasonable manner and deal with Borrowers fairly and in good faith. 
 (b) Notwithstanding the foregoing, at any time Borrower’s Net Cash is below the Asset-Based Threshold, Bank shall establish and deduct from the amount of Advances, Letters of Credit and other financial accommodations under the lending
formula provided in the Agreement a reserve in the amount of fifty percent (50%) of any amounts outstanding under the Term Loan B and the Term Loan C. 
 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 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 mailing or electronic mail address or facsimile number by giving the other party written notice thereof in accordance with the terms of this
Section 10. 
  

			
	If to Borrower:	  	c/o Force10 Networks, Inc.
		  	350 Holger Way.
		  	San Jose, CA 95134-1362
		  	Attn: Leah Maher
		  	Fax: (408) 571-3550
		  	Email: lmaher@force10networks.com
		
	If to Bank:	  	Silicon Valley Bank
		  	185 Berry Street
		  	Lobby 1, Suite 3000
		  	San Francisco, CA 94107
		  	Attn: Mike Meier
		  	Fax: (415) 856-0810
		  	Email: mmeier@svb.com

  

	 	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

  

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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 FULLEST 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. 
  

	 	12	GENERAL PROVISIONS 

 12.1 Termination Prior to Revolving Line Maturity Date. This Agreement may be terminated prior to the Revolving Line Maturity Date by Borrower, effective three (3) Business Days after written notice of termination is given to
Bank. Notwithstanding any such termination, Bank’s lien and security interest in the Collateral shall continue until Borrower fully satisfies its Obligations. If such termination is at Borrower’s election or at Bank’s election due to
the occurrence and continuance of an

  

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Event of Default, Borrower shall pay to Bank, in addition to the payment of any other expenses or fees then-owing, a termination fee in an amount equal to $250,000; provided that such fee
shall be waived upon the occurrence of an Initial Public Offering with proceeds of not less than $75,000,000; and provided further that no termination fee shall be charged if the credit facility hereunder is replaced with a new facility from
another division of Silicon Valley Bank. 
 12.2 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, 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.

 12.3 Indemnification. Borrower agrees to indemnify, defend and hold Bank and its directors, officers, employees,
agents, attorneys, or Affiliates of the Bank (each, an “Indemnified Person”) 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 such Indemnified Person from, following, or arising from transactions between Bank and Borrower (including reasonable
attorneys’ fees and expenses), except for Claims and/or losses directly caused by such Indemnified Person’s gross negligence or willful misconduct. 
 12.4 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 Correction of Loan Documents. Bank may correct patent errors and fill in any blanks in this Agreement and the other Loan
Documents consistent with the agreement of the parties; provided that Bank shall provide Borrower corrected copies of any such documents promptly thereafter. . 
 12.7 Amendments in Writing; Integration. All amendments to this Agreement must be in writing and 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. 
 12.8 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. 
 12.9 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 12.3 to indemnify Bank shall survive until the statute of limitations with respect to such claim or cause of action shall have run. 
 12.10 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

  

 -22- 

 
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; (e) as Bank considers appropriate in exercising
remedies under the Loan Documents; and (f) to third-party service providers of Bank so long as such service providers have executed a confidentiality agreement with Bank with terms no less restrictive than those contained herein. 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. 
 Bank may use confidential
information for any purpose, including, without limitation, for the development of client databases, reporting purposes, and market analysis, so long as Bank does not disclose Borrower’s identifying information or the identifying information of
any person associated with Borrower unless otherwise expressly permitted by this Agreement. The provisions of the immediately preceding sentence shall survive the termination of this Agreement. 
 12.11 Attorneys’ Fees, Costs and Expenses. In any action or proceeding between Borrower and Bank arising out of or relating to
the Loan Documents, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and other costs and expenses incurred, in addition to any other relief to which it may be entitled. 
 12.12 Joint and Several Liability. Each Borrower agrees that it is jointly and severally, directly and primarily liable to Bank for
payment, performance and satisfaction in full of the Obligations and that such liability is independent of the duties, obligations, and liabilities of the other Borrower. Bank may bring a separate action or actions on each, any, or all of the
Obligations against any Borrower, whether action is brought against the other Borrowers or whether the other Borrowers are joined in such action. In the event that any Borrower fails to make any payment of any obligation on or before the due date
thereof, the other Borrowers immediately shall cause such payment to be made or each of such obligations to be made or each of such Obligations to be performed, kept, observed, or fulfilled. 
  

	 	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. 
 “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. 
 “Amended and Restated Warrants” means collectively (a) that certain Amended and Restated Warrant of Parent issued to
Bank on June 26, 2009 for $150,000 shares of Series A Preferred Stock of

  

 -23- 

 
Parent, (b) that certain Amended and Restated Warrant of Parent issued to Bank on June 26, 2009 for 250.3704 shares of Series A Preferred Stock of Parent, (c) that certain Amended
and Restated Warrant of Parent issued to Bank on June 26, 2009 for 72.7229 shares of Series A Preferred Stock of Parent, and (d) that certain Amended and Restated Warrant of Parent issued to Bank on June 26, 2009 for $350,000 shares
of Series A Preferred Stock of Parent. 
 “Asset-Based Threshold” is $10,000,000. 
 “Availability Amount” is the lesser of (i) the Revolving Line, minus the sum of (1) the then-outstanding
principal balance of all Revolving Advances, (2) all amounts then outstanding under the Cash Management Services Sublimit, (3) the Foreign Exchange Sublimit, and (4) the face amount of all outstanding Letters of Credit (including all
amounts then utilized under drawn but unreimbursed Letters of Credit); or (ii) the sum of the Borrowing Base plus (A) $5,000,000 minus (B) the sum of (l) the then-outstanding balance of all Revolving Advances, (2) all
amounts then outstanding under the Cash Management Services Sublimit, (3) the Foreign Exchange Sublimit, and (4) the face amount of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit). 
 “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, amending, 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. 
 “Borrower” is defined in the preamble hereof 
 “Borrower’s Books” are all Borrower’s books and records including ledgers, federal and state tax returns, records regarding Borrower’s assets or liabilities, the
Collateral, business operations or financial condition, and all computer programs or storage or any equipment containing such information. 
 “Borrowing Base” is 80% of Borrower’s Eligible Accounts as determined by Bank from Borrower’s most recent Transaction Report and confirmed by a satisfactory field examination,
provided however, that Bank may lower or increase the percentage of Borrower’s Eligible Accounts that make up the Borrowing Base after performing an audit of Borrower’s Collateral; and provided further that Bank may further
reduce the Borrowing Base in its good faith business judgment upon written notice to the Borrower based on adverse changes in collection experience with respect to Accounts or other issues or factors relating to Accounts or other Collateral.

 “Borrowing Resolutions” are, 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 that is not a Saturday, Sunday or a day on
which Bank is closed. 
 “CAC” has the meaning set forth in the Recitals hereof. 
  

 -24- 

 “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. 
 “Change in Control” means any event, transaction, or occurrence as a result of which (a) any “person” (as
such term is defined in Sections 3(a)(9) and 13(d)(3) of the Securities Exchange Act of 1934, as an amended (the “Exchange Act”)), other than a trustee or other fiduciary holding securities under an employee benefit plan of
Borrower, is or becomes a beneficial owner (within the meaning Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of Borrower, representing twenty-five percent (25%) or more of the combined voting power of
Borrower’s then outstanding securities; or (b) during any period of twelve consecutive calendar months, individuals who at the beginning of such period constituted the Board of Directors of Borrower (together with any new directors whose
election by the Board of Directors of Borrower was approved by a vote of at least two-thirds of the directors then still in office who either were directions at the beginning of such period or whose election or nomination for election was previously
so approved) cease for any reason other than death or disability to constitute a majority of the directors then in office. 
 “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 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
Borrower described on Exhibit A. 
 “Collateral Account” is any Deposit Account, Securities Account, or
Commodity Account. 
 “Committed Availability” means, as the date of determination, an amount equal to the
Revolving Line minus all outstanding Credit Extensions. 
 “Commodity Account” is any “commodity
account” as defined in the Code with such additions to such term as may hereafter be made. 
 “Compliance
Certificate” is that certain certificate in the form attached hereto as Exhibit C. 
 “Contingent
Obligation” is, for any Person, any direct or indirect liability, contingent or not, of that Person for (a) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation 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

  

 -25- 

 
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. 
 “Control Agreement” is any control agreement entered into among
the depository institution at which Borrower maintains a Deposit Account or the securities intermediary or commodity intermediary at which Borrower maintains a Securities Account or a Commodity Account, Borrower, and Bank pursuant to which Bank
obtains control (within the meaning of the Code) over such Deposit Account, Securities Account, or Commodity Account. 
 “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. 
 “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” is Borrower’s deposit account, account number
3300425662, maintained with Bank. 
 “Dollars,” “dollars” and “$” each mean
lawful money of the United States. 
 “Domestic Subsidiary” means a Subsidiary organized under the laws of the
United States or any state or territory thereof or the District of Columbia. 
 “EBITDA” shall mean
(a) Pro-Forma Net Income, plus (b) Interest Expense, plus (c) to the extent deducted in the calculation of Pro-Forma Net Income, income tax expense, plus (d) depreciation expense and amortization expense, plus (e) non-cash
stock compensation expense, plus (f) non-cash inventory adjustment expense during fiscal year 2009. 
 “Effective
Date” is the date Bank executes this Agreement as indicated on the signature page hereof. 
 “Eligible
Accounts” means Accounts which arise in the ordinary course of Borrower’s business that meet all Borrower’s representations and warranties in Section 5.4. Bank reserves the right at any time after the Effective Date to
adjust any of the criteria set forth below and to establish new criteria in its good faith business judgment. Eligible Accounts shall not include: 
 (a) Accounts that the Account Debtor has not paid within ninety (90) days of invoice date regardless of invoice payment period terms; 
 (b) Accounts owing from an Account Debtor, fifty percent (50%) or more of whose Accounts have not been paid within ninety
(90) days of invoice date; 
 (c) Accounts owing from an Account Debtor which does not have its principal place of business
in the United States or Canada unless such Accounts are Eligible Foreign Accounts, provided that the aggregate of all such Eligible Foreign Accounts shall not exceed 25% of the Borrowing Base; 
 (d) Accounts owing from an Account Debtor to the extent that Borrower is indebted or obligated in any manner to the Account Debtor (as
creditor, lessor, supplier or otherwise — sometimes called “contra” accounts, accounts payable, customer deposits or credit accounts), with the exception of customary credits, adjustments and/or discounts given to an Account Debtor by
Borrower in the ordinary course of its business; 
  

 -26- 

 (e) Accounts for which the Account Debtor is Borrower’s Affiliate, officer, employee,
or agent; 
 (f) Accounts with credit balances over ninety (90) days from invoice date; 
 (g) Accounts owing from an Account Debtor, including Affiliates, whose total obligations to Borrower exceed twenty-five (25%) of all
Accounts, (or 40% in the case of Accounts owing by Ciena Corporation, or 35% in the case of Accounts owing by AT&T/Cingular) for the amounts that exceed that percentage, unless Bank approves in writing; 
 (h) Accounts owing from an Account Debtor which is a United States government entity or any department, agency, or instrumentality thereof
unless Borrower has assigned its payment rights to Bank and the assignment has been acknowledged under the Federal Assignment of Claims Act of 1940, as amended, unless Bank approves of such account in writing; 
 (i) Accounts for demonstration or promotional equipment, or in which goods are consigned, or sold on a “sale guaranteed”,
“sale or return”, “sale on approval”, or other terms if Account Debtor’s payment may be conditional; 
 (j) Accounts owing from an Account Debtor that has not been invoiced or where goods or services have not yet been rendered to the Account Debtor (sometimes called memo billings or pre-billings); 
 (k) Accounts subject to contractual arrangements between Borrower and an Account Debtor where payments shall be scheduled or due according
to completion or fulfillment requirements where the Account Debtor has a right of offset for damages suffered as a result of Borrower’s failure to perform in accordance with the contract (sometimes called contracts accounts receivable, progress
billings, milestone billings, or fulfillment contracts); 
 (l) Accounts owing from an Account Debtor the amount of which may be
subject to withholding based on the Account Debtor’s satisfaction of Borrower’s complete performance (but only to the extent of the amount withheld; sometimes called retainage billings); 
 (m) Accounts subject to trust provisions, subrogation rights of a bonding company, or a statutory trust; 
 (n) Accounts owing from an Account Debtor that has been invoiced for goods that have not been shipped to the Account Debtor unless Bank,
Borrower, and the Account Debtor have entered into an agreement acceptable to Bank in its sole discretion wherein the Account Debtor acknowledges that (i) it has title to and has ownership of the goods wherever located, (ii) a bona fide
sale of the goods has occurred, and (iii) it owes payment for such goods in accordance with invoices from Borrower (sometimes called “bill and hold” accounts); 
 (o) Accounts subject to chargebacks or others payment deductions taken by an Account Debtor (but only to the extent the chargeback is
determined invalid and subsequently collected by Borrower); 
 (p) Accounts in which the Account Debtor disputes liability or
makes any claim (but only up to the disputed or claimed amount), or if the Account Debtor is subject to an Insolvency Proceeding, or becomes insolvent, or goes out of business; and 
  

 -27- 

 (q) Accounts for which Bank in its good faith business judgment determines collection to be
doubtful. 
 “Eligible Foreign Accounts” means Accounts arising in the ordinary course of a Borrower’s
business from an Account Debtor that does not have its principal place of business in the United States but are otherwise Eligible Accounts that are (a) covered by credit insurance satisfactory to Bank, less any deductible; (b) supported
by letter(s) of credit acceptable to Bank; or (c) that Bank approves in writing; provided that Eligible Foreign Accounts shall include Accounts owing from Cable & Wireless, CERN, IBM, Mitsubishi (including Mitsubishi
International Corp., Sanmina, Tata Communications, Telcel, and Tellabs. 
 “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. 
 “Equity Financing” is the receipt by Borrower of new equity capital upon such terms and
conditions satisfactory to Bank. 
 “ERISA” is the Employee Retirement Income Security Act of 1974, and its
regulations. 
 “Event of Default” is defined in Section 8. 
 “Final Payment Fee” is defined in Section 2.1.5. 
 “Foreign Currency” means lawful money of a country other than the United States. 
 “Foreign Subsidiary” means any Subsidiary which is not a Domestic Subsidiary. 
 “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 Reduction Amount” 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,

  

 -28- 

 
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. 
 “Governmental Approval” is any consent, authorization, approval, order, license, franchise, permit, certificate,
accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority. 
 “Governmental Authority” is any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any self-regulatory organization. 
 “Indebtedness” is (a) indebtedness for borrowed money or the deferred price of property or services, such as
reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations, and (d) Contingent Obligations. 
 “Indemnified Person” is defined in Section 12.3. 
 “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. 
 “Interest Expense” means for any fiscal period, interest expense (whether cash or non-cash) determined in accordance with
GAAP for the relevant period ending on such date, including, in any event, interest expense with respect to any Credit Extension and other Indebtedness of Borrowers and their Subsidiaries, including, without limitation or duplication, all
commissions, discounts, or related amortization and other fees and charges with respect to letters of credit and bankers’ acceptance financing and the net costs associated with interest rate swap, cap, and similar arrangements, and the interest
portion of any deferred payment obligation (including leases of all types). 
 “Inventory” is all
“inventory” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials,
work in process and finished products, including without limitation such inventory as is temporarily out of Borrower’s custody or possession or in transit and including any returned goods and any documents of title representing any of the
above. 
 “Investment” is any beneficial ownership interest in any Person (including stock, partnership
interest or other securities), and any loan, advance or capital contribution to any Person. 
 “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). 
 “Lien” is a claim, mortgage, deed of trust, levy, charge, pledge, security interest or other encumbrance of any kind,
whether voluntarily incurred or arising by operation of law or otherwise against any property. 
  

 -29- 

 “Loan Documents” are, collectively, this Agreement, the Warrant, the
Perfection Certificates, any note, or notes, pledge or guaranties executed by Borrower, and any other present or future agreement between Borrower and/or for the benefit of Bank in connection with this Agreement, all as amended, restated, or
otherwise modified. 
 “Material Adverse Change” is (a) a material impairment in the perfection or
priority of Bank’s Lien in the Collateral or in the value of such Collateral; (b) a material adverse change in the business, operations, or condition (financial or otherwise) of Borrower; or (c) a material impairment of the prospect
of repayment of any portion of the Obligations. 
 “Material Subsidiary” means any foreign Subsidiary having at
any time on a stand-alone basis assets in excess of 10% of Parent’s consolidated assets, or 25% Parent’s consolidated assets when taken together with all Subsidiaries, or revenues in excess of 10% of Parent’s consolidated gross
revenues, or 25% of Parent’s consolidated gross revenues when taken together with all Subsidiaries. 
 “Net
Income” means, as calculated on a consolidated basis for Borrower and its Subsidiaries for any period as at any date of determination, the net profit (or loss), after provision for taxes, of Borrower and its Subsidiaries for such period
taken as a single accounting period. 
 “Net Cash” means the sum of (i) unrestricted cash and cash
equivalents held in accounts with Bank or Bank’s affiliates, minus (ii) the aggregate amount outstanding under any Credit Extension provided by Bank. 
 “Nonformula Advances” is defined in Section 2.1.1(a.) 
 “Obligations” are any Credit Party’s obligation to pay when due any debts, principal, interest, Bank Expenses and other amounts any Credit Party owes Bank now or later, whether under this Agreement, the Loan Documents,
or otherwise, including, without limitation, all obligations relating to letters of credit (including reimbursement obligations for drawn and undrawn 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 any Credit Party assigned to Bank, and the performance of any Credit Party’s duties under the Loan Documents. 
 “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. 
 “Overadvance” is defined in Section 2.2. 
 “Perfection Certificate” is defined in Section 5.1. 
 “Permitted Distributions” are: 
 (a) purchases of capital stock from former employees, consultants and directors pursuant to repurchase agreements or other similar agreements in an aggregate amount not to exceed $500,000 in any fiscal
year provided that at the time of such purchase no Default or Event of Default has occurred and is continuing; 
 (b)
distributions or dividends consisting solely of Parent’s capital stock; 
 (c) purchases for value of any rights
distributed in connection with any stockholder rights plan; 
  

 -30- 

 (d) purchases of capital stock or options to acquire such capital stock with the proceeds
received from a substantially concurrent issuance of capital stock or convertible securities; 
 (e) purchases of capital stock
pledged as collateral for loans to employees; 
 (f) purchases of capital stock in connection with the exercise of stock options
or stock appreciation rights by way of cashless exercise or in connection with the satisfaction of withholding tax obligations; 
 (g) purchases of fractional shares of capital stock arising out of stock dividends, splits or combinations or business combinations; and 
 (h) the settlement or performance of such Person’s obligations under any equity derivative transaction, option contract or similar transaction or combination of transactions. 
 “Permitted Indebtedness” is: 
 (a) Borrower’s Indebtedness to Bank under this Agreement and the other Loan Documents; 
 (b) Indebtedness existing on the Effective Date and shown on the Perfection Certificate; 
 (c) Subordinated Debt; 
 (d) unsecured Indebtedness to trade creditors and with respect to surety bonds and similar
obligations incurred in the ordinary course of business; 
 (e) Indebtedness incurred as a result of endorsing negotiable
instruments received in the ordinary course of business; 
 (f) Indebtedness in an aggregate principal amount not to exceed
$500,000 secured by Permitted Liens; 
 (g) Indebtedness of Borrower to any Subsidiary and Contingent Obligations of any
Subsidiary with respect to obligations of Borrower (provided that the primary obligations are not prohibited hereby), and Indebtedness of any Subsidiary to Borrower, in an aggregate principal amount not to exceed $500,000 or any other
Subsidiary and Contingent Obligations of any Subsidiary with respect to obligations of any other Subsidiary (provided that the primary obligations are not prohibited hereby); 
 (h) other Indebtedness not otherwise permitted by Section 7.4 not exceeding $250,000 in the aggregate outstanding at any time;

 (i) Guarantees of real property lease obligations of subsidiaries; 
 (j) Indebtedness secured by Purchase Money Liens in an aggregate amount up to $3,000,000 for all such Indebtedness, reduced on a Dollar for
Dollar basis by all principal payments made on such Indebtedness; and 
 (k) extensions, refinancings, modifications, amendments
and restatements of any items of Permitted Indebtedness (a) through (h) above, provided that the principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon Borrower or its
Subsidiary, as the case may be. 
  

 -31- 

 “Permitted Investments” are: 
 (a) Investments shown on the Perfection Certificate and existing on the Effective Date; 
 (b)(i) Cash Equivalents, and (ii) any Investments permitted by Borrower’s investment policy, as amended from time to time,
provided that such investment policy (and any such amendment thereto) has been approved by Bank; 
 (c) Investments consisting
of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of Borrower; 
 (d) Investments consisting of deposit accounts in which Bank has a perfected security interest; 
 (e) Investments
accepted in connection with Transfers permitted by Section 7.1; 
 (f) Investments of Subsidiaries in or to other
Subsidiaries or Borrower and Investments by Borrower in Subsidiaries not to exceed $500,000 in the aggregate in any fiscal year; 
 (g) Investments consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary course of business, and (ii) loans to employees, officers or directors relating to the purchase
of equity securities of Borrower or its Subsidiaries pursuant to employee stock purchase plans or agreements approved by Borrower’s Board of Directors; 
 (h) Investments (including debt obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with,
customers or suppliers arising in the ordinary course of business; 
 (i) Investments consisting of notes receivable of, or
prepaid royalties and other credit extensions, to customers and suppliers who are not Affiliates, in the ordinary course of business; provided that this paragraph (i) shall not apply to Investments of Borrower in any Subsidiary; 
 (j) 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 $500,000 in the aggregate in any fiscal year; and 
 (k) other Investments not otherwise permitted by Section 7.7 not exceeding $500,000 in the aggregate outstanding at any time.

 “Permitted Liens” are: 
 (a) Liens existing on the Effective Date and shown on the Perfection Certificate or arising under this Agreement and the other Loan Documents; 
 (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 its Books, provided that no notice of any such Lien has been filed or recorded under the Internal Revenue Code of 1986, as amended, and the Treasury Regulations adopted thereunder; 
 (c) Purchase Money Liens securing the Indebtedness described in clause (j) of the definition of Permitted Indebtedness set forth above;

 (d) Liens of carriers, warehousemen, suppliers, or other Persons that are possessory in nature arising in the ordinary course
of business so long as such Liens attach only to Inventory, securing liabilities in the aggregate amount not to exceed $500,000 and which are not delinquent or remain payable without penalty or which are being contested in good faith and by
appropriate proceedings which proceedings have the effect of preventing the forfeiture or sale of the property subject thereto; 
  

 -32- 

 (e) Liens to secure payment of workers’ compensation, employment insurance, old-age
pensions, social security and other like obligations incurred in the ordinary course of business (other than Liens imposed by ERISA); 
 (f) Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (c), but any extension, renewal or replacement Lien must be limited to the property encumbered by the
existing Lien and the principal amount of the indebtedness may not increase; 
 (g) leases or subleases of real property granted
in the ordinary course of business, and leases, subleases, non-exclusive licenses or sublicenses of property (other than real property or intellectual property) granted in the ordinary course of Borrower’s business, if the leases,
subleases, licenses and sublicenses do not prohibit granting Bank a security interest; 
 (h) non-exclusive license of
intellectual property granted to third parties in the ordinary course of business; 
 (i) Liens arising from attachments or
judgments, orders, or decrees in circumstances not constituting an Event of Default under Sections 8.4 and 8.7; 
 (j) Liens in favor of other financial institutions arising in connection with Borrower’s deposit and/or securities accounts held at such institutions, provided that Bank has a perfected security interest in the amounts held in such
deposit and/or securities accounts; and 
 (k) other Liens not described above arising in the ordinary course of business and
not having or not reasonably likely to have a material adverse effect on Borrower and its Subsidiaries taken as a whole and not having any priority over the Lien in favor of Bank. 
 “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. 
 “Pro-Forma Net Income” means Net Income calculated based on pro-forma revenues from shipments of inventory. 
 “Purchase Money Lien” means a Lien on any item of Equipment acquired or held by Borrower incurred for financing the
acquisition of the Equipment; provided that (i) such Lien attached only to that item of Equipment and (ii) the purchase-money obligation secured by such item of Equipment does not exceed one hundred percent (100%) of the
purchase price of such item of Equipment. 
 “Quick Ratio” is, on any date, Borrower’s consolidated,
unrestricted cash and Cash Equivalents maintained in accounts with Bank, plus billed accounts receivable, divided by the aggregate of all Obligations, plus accounts payable. 
 “Registered Organization” is any “registered organization” as defined in the Code with such additions to such
term as may hereafter be made. 
 “Requirement of Law” is as to any Person, the organizational or governing
documents of such Person, and any law (statutory or common), treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to
which such Person or any of its property is subject. 
  

 -33- 

 “Reserves” means, as of any date of determination, such amounts as Bank may
from time to time establish and revise in its good faith business judgment, reducing the amount of Advances and other financial accommodations which would otherwise be available to Borrower (a) to reflect events, conditions, contingencies or
risks which, as determined by Bank in its good faith business judgment, do or may adversely affect (i) the Collateral or any other property which is security for the Obligations or its value (including without limitation any increase in
delinquencies of Accounts), (ii) the assets, business or prospects of Borrower, or (iii) the security interests and other rights of Bank in the Collateral (including the enforceability, perfection and priority thereof); or (b) to
reflect Bank’s good faith belief that any collateral report or financial information furnished by or on behalf of Borrower to Bank is or may have been incomplete, inaccurate or misleading in any material respect; or (c) in respect of any
state of facts which Bank determines in good faith constitutes an Event of Default or may, with notice or passage of time or both, constitute an Event of Default; or (d) in accordance with Section 9.7. 
 “Responsible Officer” is any of the Chief Executive Officer, President, Chief Financial Officer and Controller of Borrower.

 “Revolving Line” is an Advance or Advances in an amount equal to Twenty Five Million Dollars ($25,000,000).

 “Revolving Line Maturity Date” is June 26, 2011. 
 “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 50.0% of the voting stock or other equity
interests (in the case of Persons other than corporations) is owned or controlled directly or indirectly by such Person or one or more of Affiliates of such Person. 
 “Term Loan B” is a term loan in the original principal amount of $5,000,000 advanced in a single advance on June 26, 2008. 
 “Term Loan B Maturity Date” is May 31, 2011. 
 “Term Loan B Payment” is defined in Section 2.1.5. 
 “Term Loan C” is defined in Section 2.1.6. 
 “Term Loan C Advance Date” is defined in Section 2.1.6. 
 “Term Loan C Maturity Date” is June 29, 2012. 
 “Term Loan C Payment” is defined in Section 2.1.6. 
 “Titan1” has the meaning set forth in the Recitals hereof. 
  

 -34- 

 “Transaction Report” is that certain report of transactions and schedule of
collections in the form attached hereto as Exhibit B. 
 “Transfer” is defined in
Section 7.1. 
 “Unused Revolving Line Facility Fee” is defined in Section 2.4(b).

 “Warrant” is that certain Warrant to Purchase Stock dated as of the dated here of executed by Borrower in
favor of Bank. 
 [Signature page follows] 
  

 -35- 

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

			
	FORCE10 NETWORKS, INC.,
	 (formerly known as Turin Networks, Inc.)
 a Delaware corporation

		
	By:	 	 /s/ William Zerella

	Name:	 	  

	Title:	 	 CFO

	
	 CARRIER ACCESS CORPORATION,
 a Delaware corporation

		
	By:	 	 /s/ William Zerella

	Name:	 	 William Zerella

	Title:	 	 Treasurer

	
	TITAN1 ACQUISITION CORP.,
	 (formerly known as Force10 Networks, Inc.)
 a Delaware corporation

		
	By:	 	 /s/ William Zerella

	Name:	 	 William Zerella

	Title:	 	 Treasurer

	
	BANK:
	
	SILICON VALLEY BANK
		
	By	 	 /s/ Mike Meier

	Name:	 	 Mike Meier

	Title:	 	 Relationship Manager

			
	Effective Date:	 	 June 26, 2009

  

 1Form of Warrant to Purchase Common Stock of Registrant

 Exhibit 10.11 
 THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS AND MAY NOT BE TRANSFERRED OR OTHERWISE
DISPOSED OF UNLESS IT HAS BEEN REGISTERED UNDER SUCH ACT AND ALL SUCH OTHER APPLICABLE LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE. 
 WARRANT TO PURCHASE COMMON STOCK 
 OF 
 TURIN NETWORKS, INC. 
  

					
	W-    	 		 	Date:                 

 Reference is hereby made to that certain Series E Preferred Stock Purchase Agreement of even date herewith by and among Turin Networks,
Inc., a Delaware corporation (the “Company”), and the signatories thereto (the “Purchase Agreement”). Capitalized terms not otherwise defined herein shall have the meaning ascribed thereto in the Purchase Agreement.
Pursuant to Section 1.3 or Section 2.2 of the Purchase Agreement, the Holder is entitled to this Warrant. 
 This
warrant certificate (this “Warrant”) certifies that, for value received,
                             or its permitted assigns or transferees (the “Holder”), is
entitled, subject to the terms and conditions hereinafter set forth, to purchase, at the Warrant Exercise Price (as defined below), as such may be adjusted from time to time or at any time, in whole or in part, at or before 11:59 P.M. (PST) on the
tenth anniversary of the Issue Date set forth below (the “Expiration Date”) but not thereafter,                  shares of Common Stock (as adjusted
pursuant to Section 6 hereof) (the “Warrant Stock”) of the Company. Said number of shares of Warrant Stock shall be subject to adjustment as hereinafter provided. For purposes of this Warrant, “Issue Date”
shall mean January 16, 2003. 
 1.         Exercise Price. The Warrant shall
initially be exercisable at a price equal to $             per share (as adjusted pursuant to Section 6 hereof) (the “Warrant Exercise Price”). The Warrant Exercise
Price shall be subject to adjustment as hereinafter provided. 
 2.         Exercise
of Warrant. The Warrant may be exercised in whole or in part by presentation and surrender of this Warrant, properly endorsed with the Form of Election to Purchase (attached hereto as Exhibit A) duly executed by the Holder, at the
principal office of the Company, or such other office as the Company may from time to time designate in writing to the Holder, accompanied by payment of the purchase price for the Warrant Stock to be purchased. Upon the proper exercise of this
Warrant, the Company shall promptly, but no later than ten (10) business days after receipt of the Form of Election to Purchase and such payment, issue one or more certificates evidencing the number of shares of Warrant Stock so purchased
together with new Warrants of like tenor representing in the aggregate the right to purchase that

 
number of shares of Warrant Stock with respect to which the Warrant shall not then have been exercised. 
 3.         Reservation of Stock. The Company covenants and agrees that: (a) so long as this Warrant is outstanding, it shall reserve and keep available
out of Company’s authorized but unissued shares of capital stock, solely for the purpose of issuing such shares upon the exercise of the Warrant, the full number of shares of Warrant Stock deliverable to holder upon the exercise hereof; and
(b) all shares of Warrant Stock delivered upon proper exercise of this Warrant shall be validly issued and outstanding and fully paid and nonassessable shares of capital stock. The Company shall pay all taxes and other governmental charges that
may be imposed in respect of the issue or delivery of this Warrant and all Warrant Stock issuable upon exercise of this Warrant; provided, the Company shall not be obligated to pay any income and/or capital gains taxes imposed on the Holder as a
result of exercise of this Warrant and/or the transfer of the Warrant Stock by the Holder. 
 4.         Transferability and Securities Laws. No transfer of this Warrant, any of the rights contained herein or any of the Warrant Stock issued upon any conversion hereof, may be effected
unless a registration under the Securities Act is effective therefor or an opinion is obtained from counsel for the Holder acceptable to Company, or from Company’s counsel, at the sole expense of the Holder, to the effect that such registration
is not required, or if Company consents thereto. Any transfer, attempted transfer or other disposition in violation of the foregoing restriction shall be deemed null and void and of no binding effect. In addition, (i) the Holder shall not
transfer all or any portion of the Warrant Stock issued upon exercise of this Warrant to any person or entity (other than to an affiliate of the Holder) on or before the thirty-fifth (35th) day following the exercise of this Warrant, and
(ii) the Holder shall not transfer this Warrant (other than to an affiliate of the Holder) without the prior written consent of the Company. 
 5.         Investor Representations. By acceptance of this Warrant, the Holder hereby restates and incorporates the representations to the Company set forth
in Section 4 of the Purchase Agreement as if set forth in full herein. In addition, the Holder confirms that the Holder is not entitled to any rights as a stockholder of the Company with respect to any shares issuable hereunder until an
exercise of this Warrant is effected as described above; and that the Company may affix the following legend (in addition to any other legend(s), if any, required by applicable state corporate and/or securities laws) to certificates for the Warrant
Stock: 
 “THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS AND MAY NOT
BE TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS IT HAS BEEN REGISTERED UNDER SUCH ACT AND ALL SUCH OTHER APPLICABLE LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE.” 
 Any legend shall be removed by the Company from any certificate evidencing the Warrant Stock or any other security delivered pursuant to this warrant; provided the Holder delivers to the Company an
opinion by counsel, reasonably satisfactory to the Company, that a registration

  

 2 

 
statement under the Securities Act of 1933, as amended, is at that time in effect with respect to the legended security or that such security can be freely transferred in a public sale without
such a registration statement being in effect. 
 6.         Adjustment of Warrant
Exercise Price and Number and Type of Shares of Stock. 
 (a)     Adjustment for Share Splits and
Combinations. If the Company at any time or from time to time after the date of this Warrant (the “Issue Date”) effects a subdivision of the Company’s Common Stock (the “Underlying Shares”), the Warrant
Exercise Price then in effect immediately before that subdivision shall be proportionately decreased and the number of Underlying Shares issuable upon any exercise hereof shall be proportionally increased, and conversely, if the Company at any time
or from time to time after the Issue Date combines the outstanding Underlying Shares into a smaller number of shares, the Warrant Exercise Price then in effect immediately before the combination shall be proportionately increased and the number of
Underlying Shares issuable upon any exercise hereof shall be proportionally decreased. Any adjustment under this Section 6(a) shall become effective at the close of business on the date such subdivision or combination becomes effective.

 (b)     Adjustment for Certain Dividends and Distributions. If the Company at any time or from
time to time after the Issue Date makes, or fixes a record date for the determination of holders of Underlying Shares entitled to receive, a dividend or other distribution payable in additional Underlying Shares, then and in each such event the
Warrant Exercise Price then in effect shall be decreased as of the time of such issuance or, in the event such record date is fixed, as of the close of business on such record date, by multiplying the Warrant Exercise Price then in effect by a
fraction (1) the numerator of which is the total number of Underlying Shares issued and outstanding immediately prior to the time of such issuance or the close of business on such record date, and (2) the denominator of which shall be the
total number of Underlying Shares issued and outstanding immediately prior to the time of such issuance or the close of business on such record date plus the number of Underlying Shares issuable in payment of such dividend or distribution, and the
number of Underlying Shares issuable upon any exercise of this Warrant shall be increased as of the time of such issuance, or in the event such record date is fixed, as of the close of business on such record date, by multiplying the number of
shares issuable upon any exercise of this Warrant at such time by a fraction (1) the numerator of which shall be the total number of Underlying Shares issued and outstanding immediately prior to the time of such issuance or the close of
business on such record date plus the number of Underlying Shares issuable in payment of such dividend or distribution, and (2) the denominator of which shall be the total number of Underlying Shares issued and outstanding immediately prior to
the time of such issuance or the close of business on such record date; provided, however, that if such record date is fixed and such dividend is not fully paid or if such distribution is not fully made on the date fixed therefor, the Warrant
Exercise Price and the number of Underlying Shares issuable upon any exercise of this Warrant shall be recomputed accordingly as of the close of business on such record date and thereafter the Warrant Exercise Price shall be adjusted pursuant to
this subsection (b) as of the time of actual payment of such dividends or distributions. 
 (c)    
Distributions and Other Dividends. In the event the Company makes, or fixes a record date for the determination of holders of Common Stock entitled to receive, a

  

 3 

 
dividend or other distribution payable in securities of the Company (other than Common Stock as adjusted pursuant to Section 6(b)) or in other assets or property of the Company, then and in
each such event provision shall be made so that the Holder shall receive upon exercise thereof, in addition to the number of shares of Common Stock receivable thereupon, the amount of securities of the Company or other assets or property of the
Company which it would have received had this Warrant been exercised for such Common Stock on the record date of such dividend or distribution and had it thereafter, during the period from such record date to and including the date of exercise of
this Warrant, retained such securities or other assets or property of the Company receivable by them as aforesaid during such period, subject to all other adjustments called for hereunder. 
 (d)     Adjustment for Reclassification, Exchange and Substitution. In the event that at any time or from time
to time after the Issue Date, the Common Stock or other securities issuable upon exercise of this Warrant are changed into the same or a different number of shares of any class or classes of stock, whether by recapitalization, reclassification or
otherwise (other than a subdivision or combination of shares or stock dividend or a reorganization, merger, consolidation or sale of assets, provided for elsewhere in this Section 6), then and in any such event the Holder of this Warrant shall
have the right thereafter to exercise this Warrant into the kind and amount of stock and other securities and property receivable upon such recapitalization, reclassification or other change, by holders of the maximum number of Common Shares or
other such securities for which this Warrant could have been exercised immediately prior to such recapitalization, reclassification or change, all subject to further adjustment as provided herein. In any such case, appropriate adjustment shall be
made in the application of the provisions of this Section 6 with respect to the rights of the Holder of this Warrant after such recapitalization, reclassification or other transaction to the end that the provisions of this Section 6
(including adjustment of the Warrant Exercise Price then in effect and the number of shares purchasable upon exercise of this Warrant) shall be applicable after that event and be as nearly equivalent as may be practicable. 
 (e)     Reorganizations, Mergers, Consolidations or Transfers of Assets. 
  

	 	i.	 If at any time or from time to time after the Issue Date there is a capital reorganization of the Warrant Stock or other securities issuable upon
exercise of Warrants (other than a recapitalization, subdivision, combination, reclassification or exchange of shares provided for elsewhere in this Section 6) or a merger, consolidation or binding share exchange of the Company with or into
another entity, or the transfer of all or substantially all of the Company’s properties and assets to any other entity, then, as a part of such capital reorganization, merger, consolidation, exchange or transfer (each a “Capital
Transaction”), provision shall be made so that the Holder of this Warrant shall thereafter be entitled to receive upon exercise of this Warrant the number of shares of stock or other securities, cash or property to which a holder of the
number of Common Shares or other securities deliverable upon exercise of this Warrant would have been entitled on such capital reorganization, merger, consolidation, exchange or transfer in

  

 4 

	 	 
respect of such Common Shares or other securities. In any such case, appropriate adjustment shall be made in the application of the provisions of this Section 6 with respect to the rights of
the Holder of this Warrant after the capital reorganization, merger, consolidation, exchange or transfer to the end that the provisions of this Section 6 (including adjustment of the Warrant Exercise Price then in effect and the number of
shares purchasable upon exercise of this Warrant) shall be applicable after that event and be as nearly equivalent as may be practicable. Upon the consummation of a Capital Transaction, the successor (if other than the Company) resulting from such
transaction or the entity acquiring such assets or other appropriate entity shall assume, by written instrument, the obligation to deliver to the Holder of this Warrant such securities, cash or other property as, in accordance with the foregoing
provisions, such Holder may be entitled to purchase and the other obligations of this Warrant. 

  

	 	ii.	Notwithstanding Section 7(e)(i), if the Buyout Conditions (defined below) are satisfied, the Company shall have the right to require the Holder to exchange this
Warrant for the Buyout Consideration (defined below). In the event the Company elects to exercise its rights under this Section 6(e)(ii), the Company shall provide the Holder written notice (the “Buyout Notice”) no later than
five (5) business days prior to any shareholder vote or shareholder consent that is taken with respect to the Capital Transaction. The Buyout Notice shall set forth whether the Buyout Consideration shall be settled in cash or Qualifying Shares
(defined below). In the event the Company has properly elected to exercise its rights under this Section 6(e)(i), the Company will deliver to the Holder the Buyout Consideration within two (2) business days after the consummation of the
Capital Transaction. Upon receipt of the Buyout Consideration, the Holder will deliver this Warrant for cancellation to the Company at the address specified in the Buyout Notice. 

  

	 	iii.	As used herein, “Buyout Conditions” shall mean a Capital Transaction in which (1) there is a Change of Control, and (2) the surviving
corporation and/or acquiring entity has requested in writing that the Company exercise its rights under Section 6(e)(ii) of this Warrant. 

  

	 	iv.	As used herein, “Change of Control” shall mean a bona fide Capital Transaction with a third party in which the shareholders of the Company immediately
prior to such transaction will not beneficially own at least 50% of the voting capital stock of the surviving entity immediately after such transaction. 

  

 5 

	 	v.	As used herein, “Buyout Consideration” shall mean (1) if the consideration is to consist of cash, the amount of cash in United States Dollars that
is equal to the Black Scholes Buyout Value or (2) the number of Qualifying Shares that is equal to the Black Scholes Buyout Value divided by the Qualifying Share Price. 

  

	 	vi.	As used herein, “Black Scholes Buyout Value” shall mean the value of this warrant calculated pursuant to the commonly accepted Black Scholes Model used
to determine the value of options to acquire capital stock of an issuer as determined in accordance with this Section 6(e)(vi). For purposes of this Agreement, the electronic Black Scholes Model derived from the Journal of Accountancy published
in 1996 shall be the method of calculation of the Black Scholes Value. The Buyout Notice shall include the Company’s estimate of the Black Scholes Buyout Value. Within five (5) business days after receipt of the estimate of the Black
Scholes Buyout Value in the Buyout Notice, Holder will deliver a statement to the Company indicating their agreement or disagreement with the Company’s estimate of the Black Scholes Buyout Value. If holders of at least 50% of the warrants
issued pursuant to the Purchase Agreement (a “Majority of Holders”) agrees with the estimate of the Black Scholes Buyout Value as set forth in the Buyout Notice or do not send written notice (a “Value Disagreement
Notice”) to the Company within such five (5) day period after receipt of the estimate of the Black Scholes Buyout Value in the Buyout Notice, the amounts set forth on the Buyout Notice shall be deemed final for purposes of this
Section 6(e)(vi). If the Majority of Holders deliver a Value Disagreement Notice, Holder and the Company will work in good faith to attempt to resolve the disagreements. If a Majority of Holders and the Company are unable to resolve their
disagreements, Holder and the Company will submit the dispute to a nationally recognized independent investment bank or an independent accountant with experience in determining such matters (the “Independent Bank”), in each case
reasonably acceptable to the Majority of the Holders or if no Independent Bank is reasonably acceptable to the Majority of Holders, the Independent Bank selected by the Company. The determination of the Black Scholes Buyout Value by the Independent
Bank shall be final and binding on both Holder and the Company. The costs and expenses of the Independent Bank shall be borne pro rata by Holder and other holders that submit the dispute to the Independent Bank. The Buyout Notice shall make specific
references to the five (5) day time period and shall expressly state the consequences of failing to send the Value Disagreement Notice within such five (5) day period. 

  

 6 

	 	vii.	As used herein, “Qualifying Share” shall mean a share of stock of the surviving entity in a Capital Transaction; provided, such stock shall only be a
Qualified Share (and the Buyout Consideration shall only be payable in Qualified Shares) if such stock is (1) listed for trading on the Nasdaq National Market, the New York Stock Exchange, the American Stock Exchange or a major foreign stock
exchange and (2) upon receipt of such a share by the Holder, such share shall be freely tradable by the Holder without restriction or limitation of any kind (other than limitations and restrictions generally applicable to all holders of such
stock). 

  

	 	viii.	As used herein, “Qualifying Share Price” shall mean the average closing price per share of a Qualified Share for the thirty (30) day period prior
to the issuance of a Qualified Share in accordance with this Warrant. 

 (f)    
Fractional Shares. No fractional shares of Warrant Stock shall be issuable by the Company upon any exercise hereof, and, in 1ieu thereof, the Company shall make the payment of cash equal to any fraction of a share to which the holder is
entitled with the value thereof to be reasonably determined in good faith by the Board of Directors of the Company. 
 (g)     Full and Partial Exercises. It is understood that the adjustments of the Warrant Exercise Price and aggregate numbers of shares of Warrant Stock shall not apply to any rights which have been exercised
previously or to the shares purchased pursuant to such exercise. If any partial exercise(s) of the rights herein is (or are) made, then the adjustment provisions herein shall be applied to the rights which remain unexercised when the event which
causes the adjustment occurs. 
 7.         Rights of the Holders. The Holder
shall not be entitled to vote or receive dividends with respect to, nor be deemed the holder of, capital stock or any other securities of the Company which may at any time be issuable on the exercise hereof for any purpose, nor shall anything
contained herein be construed to confer upon any holder of this Warrant, as such, any of the rights of a shareholder of the Company or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting
thereof, or to give or withhold consent to any corporate action (whether upon any recapitalization, issue of capital stock, reclassification of stock, change of par value, consolidation, merger, conveyance or otherwise) until this Warrant shall have
been exercised and any voting shares issuable hereunder shall have become deliverable as provided herein. 
 8.         Miscellaneous. 
 (a)    
Modification. This Warrant and any term hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by the party against whom enforcement of such change, waiver, discharge or termination is sought.

 (b)     Incorporation by Reference. Sections 7.2, 7.3, 7.5, 7.6, 7.9 and 7.10 of the
Purchase Agreement are incorporated by reference herein. 
  

 7 

 (c)     Number and Gender. Whenever used herein, the singular
number shall include the plural and the plural the singular, and the use of any gender shall be applicable to all genders. 
 (d)     Entire Agreement. This Warrant and other documents delivered pursuant hereto constitute the full and entire understanding and agreement among the parties with regard to the subjects hereof and thereof and
supersede any prior agreements (including any memorandum of understanding or letters of intent) between the parties regarding the subject matter hereof. 
 (e)     Attorneys’ Fees. If any action at law or in equity (including arbitration) 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. 
 (f)     Regulatory Compliance. Exercise or conversion of this Warrant is subject to compliance by the Holder with all applicable filing requirements, and expiration of all
applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”). The Company will cooperate with the Holder in making all applicable filing under the HSR Act. In the event
approval under the HSR Act is not obtained by or prior to the Expiration Date, the Expiration Date shall be extended for the period in which the Holder makes a good faith effort to obtain such approval. 
 (g)     No Impairment. The Company will not, by amendment of its Certificate of Incorporation, or through any
reorganization, recapitalization, 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
hereunder by the Company, but will at all times in good faith assist in the carrying out of all obligations under this Warrant and in the taking of all such actions as may be necessary or appropriate in order to protect the rights granted to the
Holder under this Warrant. 
 (h)     Right to Notice. In the event that the Company shall take a
record of the holders of its Common Stock (or other stock or securities at the time deliverable upon the exercise of this Warrant) for the purpose of (i) entitling or enabling them to receive any dividend or other distribution, or to receive
any right to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right; (ii) any capital reorganization of the Company, any reclassification of the Common Stock of the Company, any
consolidation or merger of the Company with or into another corporation (other than a consolidation or merger in which the Company is the surviving entity and its Common Stock is not converted into or exchanged for any other securities or property),
or any transfer of all or substantially all of the assets of the Company; or (iii) the voluntary or involuntary dissolution, liquidation or winding-up of the Company, then and in each such case, the Company will mail or cause to be mailed to
the Holder a notice specifying, as the case may be, (x) the record date for such dividend, distribution or right, and the amount and character of such dividend, distribution or right, or (y) the effective date on which such reorganization,
reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up is to take place, and the time, if any is to be fixed, as of which the holders of record of Common Stock (or such other stock or securities at the time

  

 8 

 
deliverable upon the exercise of this Warrant) shall be entitled to exchange their shares of Common Stock (or such other stock or securities) for securities or other property deliverable upon
such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up. Such notice shall be mailed at least ten days prior to the record date or effective date for the event specified in such notice.

 (i)     Notices. Except as otherwise expressly provided herein, any notice required or permitted
hereunder shall be given in writing and it or any certificates or other documents delivered hereunder shall be deemed effectively given or delivered (as the case may be) upon personal delivery (professional courier permissible) by facsimile (with
written confirmation of receipt) or when mailed by registered or certified United States mail, three (3) business days after deposit in the United States mail. Such certificates, documents or notice may be personally delivered or sent to the
following address: (i) if to the Holder, to the address listed on the signature page hereto or to such other address which the Holder shall have given notice pursuant hereto to the Company, or, (ii) if to the Company, to Turin Networks,
Inc., 1415 N. McDowell Blvd., Petaluma, CA 94954, Facsimile: (707) 792-4949, Attention: Mr. Henry Wasik, President, or to such other address of which the Company shall have given notice pursuant hereto. 
  
 (This space intentionally left blank) 
  

 9 

 IN WITNESS WHEREOF, the undersigned has executed this Warrant as of the date set forth
above. 
  

									
		 		 	 TURIN NETWORKS, INC.,
     a Delaware corporation

					
		 		 		 	By:	 	 
		 		 		 	Name: 	 	 
		 		 		 	Title:	 	 
			
	Acknowledged and Accepted:	 		 	
			
	[NAME OF WARRANT HOLDER]	 		 	
					
	By:	 	 	 		 		 	
	Name: 	 	 	 		 		 	
	Title:	 	 	 		 		 	

									
					
	Address: 	 	 	 		 		 	
		 	 	 		 		 	
		 	 	 		 		 	

  

 10 

 EXHIBIT A 
 Form of Election to Purchase 
                     , 20     
 Turin Networks, Inc. 
 1415 N. McDowell Blvd. 
 Petaluma, CA 94954 
 The
undersigned, the Holder of the attached Warrant, (1) hereby irrevocably elects to exercise the right of purchase represented by this Warrant for, and to purchase thereunder,
                     full shares of Common Stock of Turin Networks, Inc., provided for therein, (2) makes payment in full of the purchase price
of such shares, (3) requests that certificates for such shares be issued to the Holder as follows: 
  

					
		  	 	  	
		  	(Print Name)	  	
			
		  	 	  	
			
		  	 	  	
		  	(Print Address)	  	

 and (4) if said number of shares shall not be all the shares purchasable thereunder, requests that a new
Warrant for the unexercised portion of this Warrant be issued in the name of and delivered to the Holder as follows: 
  

					
		  	 	  	
		  	(Print Name)	  	
			
		  	 	  	
			
		  	 	  	
		  	(Print Address)	  	

 Sincerely

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