Document:

Third Amendment to Loan and Security Agreement

 Exhibit 10.7.3 
 THIRD AMENDMENT TO 
 LOAN AND SECURITY AGREEMENT 

THIS THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into this 6th day of July,
2011, by and between SILICON VALLEY BANK, a California corporation (“Bank”) and AUDIENCE, INC., a California corporation (“Borrower”). 
 RECITALS 

A.      Bank and Borrower have entered into that certain Loan and Security Agreement
dated as of July 31, 2009 (as the same has been amended, modified, supplemented or restated, the “Loan Agreement”). 
 B.      Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement. 

C.      Borrower has requested that Bank amend the Loan Agreement to make certain
revisions to the Loan Agreement as more fully set forth herein. 

D.      Bank has agreed to so amend certain provisions of the Loan Agreement, but
only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below. 
 AGREEMENT 
 NOW, THEREFORE, in consideration
of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows: 

1.      Definitions.    Capitalized terms used but not defined
in this Amendment shall have the meanings given to them in the Loan Agreement. 

2.      Amendment to Loan Agreement. 

2.1      Section 2.1.1 (Financing of Accounts). 

(i)      Section 2.1.1 of the Loan Agreement is amended by deleting clauses
(a) through (e) thereof in their entirety and replacing them with the following: 

(a)      Availability.    Subject to the terms
of this Agreement, Borrower may request that Bank finance Eligible Accounts. At all times that Borrower is Borrowing Base Eligible, Borrower may request that Bank finance Eligible Accounts on an aggregate basis by extending credit to Borrower in an
amount equal to the result of the Advance Rate multiplied by the aggregate face amount of all Eligible Accounts. At all times when Borrower is not Borrowing Base Eligible, Bank may, in its good faith business discretion, finance Eligible Accounts by
extending credit to Borrower in an 

  

 
amount equal to the result of the Advance Rate multiplied by the face amount of a specific Eligible Account. Bank may, in its sole discretion, change the percentage of the Advance Rate for a
particular Eligible Account on a case by case basis. When Bank finances Eligible Accounts (an “Account Advance”) each such Eligible Account becomes a “Financed Receivable.” 

(b)      Purchase Order Advance
Availability.    Subject to the terms of this Agreement, at all times that Borrower is Borrowing Base Eligible, Borrower may request that Bank finance specific Eligible Purchase Orders, Bank may, in its good faith business
discretion, finance such Eligible Purchase Orders by extending credit to Borrower in an amount equal to the result of the Advance Rate multiplied by the face amount of the Eligible Purchase Orders (the “Purchase Order Advance”).
Bank may, in its sole discretion, change the percentage of the Advance Rate for a particular Eligible Purchase Order on a case by case basis. When Bank makes a Purchase Order Advance, the Eligible Purchase Order becomes a “Financed
Receivable”. 
 (c)      Maximum
Advances.    The aggregate face amount of all Financed Receivables outstanding at any time may not exceed the Facility Amount. The aggregate amount of all Purchase Order Advances outstanding at any time may not exceed the
Purchase Order Sublimit. At any time, (i) the sum of outstanding Purchase Order Advances plus outstanding Account Advances plus outstanding Non-Formula Advances may not exceed (ii) Ten Million Dollars ($10,000,000). 

(d)      Borrowing Procedure.    Borrower will
deliver to Bank (i) an Invoice Transmittal or Borrowing Base Certificate for each Eligible Account it offers and for each Non-Formula Advance it requests and (ii) a Purchase Order Transmittal for each Eligible Purchase Order it offers. In
addition, for each Advance, Borrower will deliver to Bank a Notice of Borrowing executed by a Responsible Officer which Notice of Borrowing must be received by Bank prior to 12:00 p.m. Pacific time, (x) at least three (3) Business Days
prior to the requested Funding Date, in the case of LIBOR Advances, and (y) on the requested Funding Date, in the case of Prime Rate Advances, specifying: (1) the amount of the Advance; (2) the requested Funding Date; (3) whether
the Advance is to be comprised of LIBOR Advances or Prime Rate Advances; and (4) the duration of the Interest Period applicable to any such LIBOR Advances included in such notice; provided that if the Notice of Borrowing shall fail to specify
the duration of the Interest Period for any Advance comprised of LIBOR Advances, such Interest Period shall be one (1) month. Bank may rely on information set forth in or provided with the Invoice Transmittal, Borrowing Base Certificate,
Purchase Order Transmittal and Notice of Borrowing. Borrower will indemnify Bank for any loss Bank suffers due to such reliance. 
 (e)      End of Borrowing Base Eligible Status.    Upon Borrower ceasing to be Borrowing Base Eligible, (i) Borrower shall deliver to Bank, as
soon as possible, but in no event more than one (1) Business Day after Borrower is no longer Borrowing Base Eligible, an Invoice Transmittal and advance request in the form attached hereto as Exhibit D containing detailed invoice
reporting, signed by a Responsible Officer together with a current accounts receivable aging and a copy of each 

  
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invoice, all in accordance with Section 6.2 hereof, (ii) all LIBOR Advances shall be converted into Prime Rate Advances in accordance with the provisions of Section 2.7(d) of this
Agreement, and (iii) if the outstanding principal amount of any Account Advance exceeds the Advance Rate multiplied by the face amount of such Account Advance (as determined by Bank), Borrower shall immediately pay to Bank the excess and, in
connection with same, hereby irrevocably authorizes Bank to debit any account of Borrower maintained by Borrower with Bank or any of Bank’s Affiliates for the amount of such excess. In addition, Borrower shall, upon the earlier of ninety
(90) days after the date of the applicable Purchase Order or the conversion of the applicable Purchase Order into an invoice, repay each Purchase Order Advance and the unpaid interest thereon. 

(ii)      Section 2.1.1 of the Loan Agreement is amended by adding the following
immediately after clause (i) as clause (j): 

(a)      Non-Formula Advances. 

(i)      Availability.    Subject to the terms
and conditions of this Agreement, at all times that Borrower is Borrowing Base Eligible, Bank shall make Non-Formula Advances not exceeding Two Million Dollars ($2,000,000). Non-Formula Advances may be repaid and, prior to the Maturity Date,
reborrowed, subject to the applicable terms and conditions precedent herein. 

(ii)      Termination;    Repayment.  
    The Non-Formula Advances terminate on the Maturity Date, when the principal amount of all Non-Formula Advances and the unpaid interest thereon shall be immediately due and payable. In addition, upon Borrower ceasing to be
Borrowing Base Eligible, Borrower shall immediately repay the principal amount of all Non-Formula Advances and the unpaid interest thereon. 
 2.2      Section 2.2.3  (Finance Charges).    Section 2.2.3 of the Loan Agreement is amended by deleting it in its entirety and
replacing it with the following: 
 2.2.3  Finance Charges. 

(a)      Finance Charge Rates. 

(i)      Computation.    In computing Finance
Charges on the Obligations under this Agreement, all Collections received by Bank shall be deemed applied by Bank on account of the Obligations on the day of Bank’s receipt of the Collections. 

(ii)      Account Finance Charge.    At all
times that Borrower is Borrowing Base Eligible, Borrower will pay a finance charge (the “Account Finance Charge”) on the outstanding principal balance of the Account Advances at a per annum rate equal to the Applicable Rate. At all
other times, Borrower will pay a Account Finance Charge on the total outstanding gross face amount of Financed Receivables consisting of Eligible Accounts equal to the Applicable Rate with respect to Account Advances divided by 360
multiplied by the number of days each such Financed Receivable is outstanding multiplied by the outstanding Financed Receivable Balance with respect to the Account Advances. 

(ii)      Purchase Order Finance
Charge.    Borrower will pay a finance charge (the “Purchase Order Finance Charge”) on the outstanding Purchase Order Advances which is equal to the Applicable Rate with respect to Purchase Order Advances
divided by 360 multiplied by the number of days each such Financed Receivable is outstanding multiplied by the outstanding Financed Receivable Balance with respect to the Purchase Order Advances. 

  
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 (iii)      Non-Formula
Finance Charge.    Borrower will pay a finance charge (the “Non-Formula Finance Charge”, and together with the Account Finance Charge and the Purchase Order Finance Charge, the “Finance
Charge”) on the outstanding principal balance of the Non-Formula Advances at a per annum rate equal to the Applicable Rate. 
 (iv)      Adjustments to Applicable Rate.    All changes to the Applicable Rate which arise due to a change in the Borrower’s Adjusted Quick
Ratio shall become effective on the first day of the Subject Month after the Testing Month in which the change in Borrower’s Adjusted Quick Ratio occurs (e.g. if Borrower’s Adjusted Quick Ratio for the month ending August 31, 2011
triggers a change in the Applicable Rate, such change in the Applicable Rate would become effective on October 1, 2011). 
 (b)      Payment.    Pursuant to the terms hereof, Finance Charges shall be paid in arrears on each Interest Payment Date. In addition, Finance
Charges shall also be paid on the date of any prepayment of any Advance pursuant to this Agreement for the portion of any Advance so prepaid and upon payment (including prepayment) in full thereof. 

(c)      Default Rate.    During the existence
of an Event of Default, the Applicable Rate will increase an additional five percent (5.0%) per annum effective immediately upon the occurrence and continuation of such Event of Default. 

2.3      Section 2.2.4   (Collateral Handling
Fee).    Section 2.2.4 of the Loan Agreement is amended by deleting it in its entirety and replacing it with the following: 

2.2.4    Collateral Handling Fee.    If
Borrower’s Net Cash, tested as of the last day of each Reconciliation Period, is greater than or equal to One Dollar ($1.00), Borrower will not pay any Collateral Handling Fee (as hereinafter defined) in the Reconciliation Period which is two
(2) calendar months after the Reconciliation Period in which Borrower’s Net Cash is tested. For all other Reconciliation Periods, Borrower will pay to Bank a Collateral Handling Fee equal to two tenths of one percent (0.2%) per month of
the Financed Receivable Balance for each Financed Receivable outstanding based upon a 360 day year (the “Collateral Handling Fee”). This fee is charged on a daily basis which is equal to the Collateral Handling Fee divided by 30,
multiplied by the 

  
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number of days each such Financed Receivable is outstanding, multiplied by the outstanding Financed Receivable Balance. The Collateral Handling Fee is payable when the Advance made based on such
Financed Receivable is payable in accordance with Section 2.3 hereof. In computing Collateral Handling Fees under this Agreement, all Collections received by Bank shall be deemed applied by Bank on account of the Obligations on the same
Business Day of receipt of the Collections. During the existence of an Event of Default, the Collateral Handling Fee will increase an additional one half of one percent (0.50%) effective immediately upon such Event of Default. 

2.4      Section 2.2.7  (Adjustment to Interest
Rate).    Section 2.2.7 of the Loan Agreement is amended by deleting it in its entirety and replacing it with the following: 

2.2.7    Adjustment to Interest Rate.    Changes
to the interest rate of any Prime Rate Advance 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. The interest rate applicable to each LIBOR Advance shall
be determined in accordance with Section 2.8(a) hereunder. Subject to Sections 2.8 and 2.9, such rate shall apply during the entire Interest Period applicable to such LIBOR Advance, and interest calculated thereon shall be payable on the
Interest Payment Date applicable to such LIBOR Advance. 

2.5      Section 2.3.1  (Repayment).    
Section 2.3.1 of the Loan Agreement is amended by deleting it in its entirety and replacing it with the following: 
 2.3.1    Repayment. 
 (a)      Account Advances and Purchase Order Advances.    Borrower will repay each Account Advance and Purchase Order Advance on the earliest of
(a) the date on which payment is received of the Financed Receivable with respect to which the Advance was made, (b) the date on which the Financed Receivable is no longer an Eligible Account or Eligible Purchase Order, (c) the date
on which any Adjustment is asserted to the Financed Receivable (but only to the extent of the Adjustment if the Financed Receivable remains otherwise an Eligible Account or Eligible Purchase Order), (d) the date on which there is a breach of
any warranty or representation set forth in Section 5.3 with respect to such Financed Receivable, or a breach of any covenant in this Agreement or (e) the Maturity Date (including any early termination). Each payment will also include all
accrued Finance Charges and Collateral Handling Fees with respect to such Advance and all other amounts then due and payable hereunder. Notwithstanding the foregoing, at any time that Borrower is Borrowing Base Eligible, Borrower will repay each
Account Advance and Purchase Order Advance on the earliest of (a) the date on which there is a breach of any warranty or representation set forth in Section 5.3, (b) the Maturity Date (including any early termination), or (c) to
the extent required under Section 2.1.1(e). 

(b)      Non-Formula Advance.    Borrower will
repay each Non-Formula Advance on the Maturity Date (including any early termination). 

  
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 2.6      Section 2 (Loan and Terms of
Payment). Section 2 of the Loan Agreement is amended by adding the following immediately after Section 2.5 as Sections 2.6 through 2.9: 

2.6      General Provisions Relating to the Advances. Each Advance
shall, at Borrower’s option in accordance with the terms of this Agreement, be either in the form of a Prime Rate Advance or a LIBOR Advance. Borrower shall pay interest accrued on the Advances at the rates and in the manner set forth in
Section 2.2.3. 
 2.7      Conversion and Continuation
Elections. 
 (a)      So long as (i) no Event of
Default exists; (ii) Borrower shall not have sent any notice of termination of this Agreement; and (iii) Borrower shall have complied with such customary procedures as Bank has established from time to time for Borrower’s requests for
LIBOR Advances, Borrower may, upon irrevocable written notice to Bank: 

(1)      elect to convert on any Business Day if Borrower is Borrowing
Base Eligible, Account Advances which are Prime Rate Advances into LIBOR Advances; or 

(2)      elect to continue on any Interest Payment Date any LIBOR Advances
maturing on such Interest Payment Date. 
 (b)      Borrower
shall deliver a Notice of Conversion/Continuation in accordance with Section 10 to be received by Bank prior to 12:00 p.m. Pacific time at least three (3) Business Days in advance of the Conversion Date or Continuation Date, if any
Advances are to be converted into or continued as LIBOR Advances specifying the: 

(1)      proposed Conversion Date or Continuation Date; 

(2)      aggregate amount of the Advances to be converted or continued;

 (3)      nature of the proposed conversion or continuation;
and 
 (4)      duration of the requested Interest Period.

 (c)      If upon the expiration of any Interest Period
applicable to any LIBOR Advances, Borrower shall have timely failed to select a new Interest Period to be applicable to such LIBOR Advances, Borrower shall be deemed to have elected to convert such LIBOR Advances into Prime Rate Advances.

 (d)      Any LIBOR Advances shall, at Bank’s option,
convert into Prime Rate Advances in the event that (i) an Event of Default shall exist, or (ii) the aggregate principal amount of the Prime Rate Advances which have been previously converted to LIBOR Advances, or the aggregate principal
amount of existing LIBOR 

  
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Advances continued, as the case may be, at the beginning of an Interest Period shall at any time during such Interest Period exceed the maximum amount of Advances set forth in
Section 2.1.1(c). Borrower agrees to pay Bank, upon demand by Bank (or Bank may, at its option, charge any account Borrower maintains with Bank) any amounts required to compensate Bank for any loss (including loss of anticipated profits), cost,
or expense incurred by Bank, as a result of the conversion of LIBOR Advances to Prime Rate Advances pursuant to this Section 2.7(d) or 2.1.1(e). 

(e)      Notwithstanding anything to the contrary contained herein, Bank
shall not be required to purchase United States Dollar deposits in the London interbank market or other applicable LIBOR market to fund any LIBOR Advances, but the provisions hereof shall be deemed to apply as if Bank had purchased such deposits to
fund the LIBOR Advances. 
 2.8       Special Provisions
Governing LIBOR Advances. Notwithstanding any other provision of this Agreement to the contrary, the following provisions shall govern with respect to LIBOR Advances as to the matters covered: 

(a)      Determination of Applicable Interest
Rate.    As soon as practicable on each Interest Rate Determination Date, Bank shall determine (which determination shall, absent manifest error in calculation, be final, conclusive and binding upon all parties) the interest
rate that shall apply to the LIBOR Advances for which an interest rate is then being determined for the applicable Interest Period and shall promptly give notice thereof (in writing or by telephone confirmed in writing) to Borrower. 

(b)      Inability to Determine Applicable Interest
Rate.    In the event that Bank shall have determined (which determination shall be final and conclusive and binding upon all parties hereto), on any Interest Rate Determination Date with respect to any LIBOR Advance, that by
reason of circumstances affecting the London interbank market adequate and fair means do not exist for ascertaining the interest rate applicable to such Advance on the basis provided for in the definition of LIBOR, Bank shall on such date give
notice (by facsimile or by telephone confirmed in writing) to Borrower of such determination, whereupon (i) no Advances may be made as, or converted to, LIBOR Advances until such time as Bank notifies Borrower that the circumstances giving rise
to such notice no longer exist, and (ii) any Notice of Borrowing or Notice of Conversion/Continuation given by Borrower with respect to LIBOR Advances in respect of which such determination was made shall be deemed to be rescinded by Borrower
or, at Borrower’s option, a request by Borrower for a Prime Rate Advance. 

(c)      Compensation for Breakage or Non-Commencement of Interest
Periods.    Borrower shall compensate Bank, upon written request by Bank (which request shall set forth the manner and method of computing such compensation), for all losses, expenses, unrealized gains and liabilities
(including any interest paid by Bank to lenders of funds borrowed by it to make or carry its LIBOR Advances, any loss, expense or liability incurred by Bank in connection with the liquidation or re-employment of such funds, and, in the case of
complete or partial principal payments or conversions of 

  
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LIBOR Advances prior to the last day of the applicable Interest Period, any amount by which (i) the additional interest which would have been payable on the amount so prepaid or converted
had it not been paid or converted until the last day of the applicable Interest Period exceeds (ii) the interest which would have been recoverable by Bank by placing the amount so received on deposit in the certificate of deposit markets, the
offshore currency markets, or United States Treasury investment products, as the case may be, for a period starting on the date on which it was so paid or converted and ending on the last day of such Interest Period at the interest rate determined
by Bank in its reasonable discretion), if any, that Bank may incur: (x) if for any reason (other than a default by Bank or due to any failure of Bank to fund LIBOR Advances due to impracticability or illegality under Sections 2.9(c) and
2.9(d)) a borrowing or a conversion to or continuation of any LIBOR Advance does not occur on a date specified in a Notice of Borrowing or a Notice of Conversion/Continuation, as the case may be, or (y) if for any reason (including voluntary or
mandatory prepayment or acceleration) any complete or partial principal payment or any conversion of any of Borrower’s LIBOR Advances occurs on a date prior to the last day of an Interest Period applicable to that Advance. Bank’s
determination as to such amount shall be conclusive absent manifest error. Borrower shall immediately notify Borrower’s account officer at Bank if any of the situations described in (y) above occur. 

(d)      Assumptions Concerning Funding of LIBOR
Advances.      Calculation of all amounts payable to Bank under this Section 2.8 and under Section 2.9 shall be made as though Bank had actually funded each of its relevant LIBOR Advances through the
purchase of a Eurodollar deposit bearing interest at the rate obtained pursuant to the definition of LIBOR Rate in an amount equal to the amount of such LIBOR Advance and having a maturity comparable to the relevant Interest Period; provided,
however, that Bank may fund each of its LIBOR Advances in any manner it sees fit and the foregoing assumptions shall be utilized only for the purposes of calculating amounts payable under this Section 2.8 and under Section 2.9. 

(e)      LIBOR Advances After Default.    After
the occurrence and during the continuance of an Event of Default, (i) Borrower may not elect to have an Advance be made or continued as, or converted to, a LIBOR Advance after the expiration of any Interest Period then in effect for such
Advance and (ii) subject to the provisions of Section 2.8(c), any Notice of Conversion/Continuation given by Borrower with respect to a requested conversion/continuation that has not yet occurred shall, at Bank’s option, be deemed to
be rescinded by Borrower and be deemed a request to convert or continue Advances referred to therein as Prime Rate Advances. 
 2.9        Additional Requirements/Provisions Regarding LIBOR Advances. 

(a)      Borrower shall pay Bank, upon demand by Bank, from time to time
such amounts as Bank may determine to be necessary to compensate it for any costs incurred by Bank that Bank determines are attributable to its making or maintaining of any amount receivable by Bank hereunder in respect of any LIBOR Advances
relating thereto (such increases in costs and reductions in amounts receivable being herein called “Additional Costs”), in each case resulting from any Regulatory Change which: 

  
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 (i)      changes the basis of
taxation of any amounts payable to Bank under this Agreement in respect of any LIBOR Advances (other than changes which affect taxes measured by or imposed on the overall net income of Bank by the jurisdiction in which Bank has its principal
office); 
 (ii)      imposes or modifies any reserve, special
deposit or similar requirements relating to any extensions of credit or other assets of, or any deposits with, or other liabilities of Bank (including any LIBOR Advances or any deposits referred to in the definition of LIBOR); or 

(ii)      imposes any other condition affecting this Agreement (or any of
such extensions of credit or liabilities). 
 Bank will notify Borrower of any event occurring
after the Effective Date which will entitle Bank to compensation pursuant to this Section 2.9(a) as promptly as practicable after it obtains knowledge thereof and determines to request such compensation. Bank will furnish Borrower with a
statement setting forth the basis and amount of each request by Bank for compensation under this Section 2.9(a). Determinations and allocations by Bank for purposes of this Section 2.9(a) of the effect of any Regulatory Change on its costs
of maintaining its obligations to make LIBOR Advances, of making or maintaining LIBOR Advances, or on amounts receivable by it in respect of LIBOR Advances, and of the additional amounts required to compensate Bank in respect of any Additional
Costs, shall be conclusive absent manifest error. 
 (b)      If
Bank shall determine that the adoption or implementation of any applicable law, rule, regulation, or treaty regarding capital adequacy, or any change therein, or any change in the interpretation or administration thereof by any governmental
authority, central bank, or comparable agency charged with the interpretation or administration thereof, or compliance by Bank (or its applicable lending office) with any request or directive regarding capital adequacy (whether or not having the
force of law) of any such authority, central bank, or comparable agency, has or would have the effect of reducing the rate of return on capital of Bank or any person or entity controlling Bank (a “Parent”) as a consequence of its
obligations hereunder to a level below that which Bank (or its Parent) could have achieved but for such adoption, change, or compliance (taking into consideration policies with respect to capital adequacy) by an amount deemed by Bank to be material,
then from time to time, within five (5) days after demand by Bank, Borrower shall pay to Bank such additional amount or amounts as will compensate Bank for such reduction. A statement of Bank claiming compensation under this Section 2.9(b)
and setting forth the additional amount or amounts to be paid to it hereunder shall be conclusive absent manifest error. 
 (c)      If, at any time, Bank, in its sole and absolute discretion, determines that (i) the amount of LIBOR Advances for periods equal to the corresponding Interest
Periods are not available to Bank in the offshore currency 

  
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interbank markets, or (ii) LIBOR does not accurately reflect the cost to Bank of lending the LIBOR Advances, then Bank shall promptly give notice thereof to Borrower. Upon the giving of such
notice, Bank’s obligation to make the LIBOR Advances shall terminate; provided, however, LIBOR Advances shall not terminate if Bank and Borrower agree in writing to a different interest rate applicable to LIBOR Advances. 

(d)      If it shall become unlawful for Bank to continue to fund or
maintain any LIBOR Advances, or to perform its obligations hereunder, upon demand by Bank, Borrower shall prepay the LIBOR Advances in full with accrued interest thereon and all other amounts payable by Borrower hereunder (including, without
limitation, any amount payable in connection with such prepayment pursuant to Section 2.8(c)(y). Notwithstanding the foregoing, to the extent a determination by Bank as described above relates to a LIBOR Advance then being requested by Borrower
pursuant to a Notice of Borrowing or a Notice of Conversion/Continuation, Borrower shall have the option, subject to the provisions of Section 2.8(c), to (i) rescind such Notice of Borrowing or Notice of Conversion/Continuation by giving
notice (by facsimile or by telephone confirmed in writing) to Bank of such rescission on the date on which Bank gives notice of its determination as described above, or (ii) modify such Notice of Borrowing or Notice of Conversion/Continuation
to obtain a Prime Rate Advance or to have outstanding Advances converted into or continued as Prime Rate Advances by giving notice (by facsimile or by telephone confirmed in writing) to Bank of such modification on the date on which Bank gives
notice of its determination as described above. 
 2.7      Section 6.7
(Financial Covenants).    Section 6.7 of the Loan Agreement is amended by deleting it in its entirety and replacing it with “Reserved.” 

2.8       Section 13 (Definitions). 

(i)      The following terms and their respective definitions set forth in
Section 13.1 are amended in their entirety and replaced with the following: 

“Advance” is either an Account Advance, Non-Formula Advance or a Purchase Order
Advance, as applicable. 
 “Applicable Rate” means: 

(a)      with respect to Account Advances, (i) at all times the
Borrower is Borrowing Base Eligible, the LIBOR Rate plus one and three quarters of one percent (1.75%), and (ii) at all other times, the Prime Rate plus thirty-five hundredths of one percent (0.35%); 

(b)      with respect to Purchase Order Advances, the Prime Rate; and

 (c)      with respect to Non-Formula Advances, the LIBOR Rate
plus one and three quarters of one percent (1.75%). 

  
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 “Borrowing Base Eligible” means each
Subject Month for which Borrower’s Adjusted Quick Ratio, tested as of the last day of the immediately preceding Testing Month, was greater than or equal to 1.25:1.00. At any time that Borrower’s Adjusted Quick Ratio is less than 1.25:1.00,
Borrower will not be Borrowing Base Eligible until such time as Bank confirms that Borrower’s Adjusted Quick Ratio was greater than or equal to 1.25:1.00 as of the last day of the immediately preceding Testing Month. 

“Facility Amount” is Twelve Million Five Hundred Thousand Dollars ($12,500,000.00).

 “Maturity Date” is July 6, 2013. 

“Prime Rate” is the “prime rate” of interest, as published from time to time
by The Wall Street Journal in the “Money Rates” section of its Western Edition newspaper. 
 “Purchase Order Sublimit” is Two Million Dollars ($2,000,000). 
 (ii)      Clause (m) of the definition of “Eligible Accounts” is hereby deleted in its entirety and replaced with the following: 

(m)      Accounts owing from an Account Debtor, including Affiliates,
whose total obligations to Borrower exceed thirty-five percent (35%) of all Accounts (except for Accounts owing from Foxconn for which such percentage shall be seventy percent (70%)), for the amounts that exceed that percentage, unless Bank
approves in writing; 
 (iii)      The definition of “Net Cash
Threshold” is deleted in its entirety. 
 (iv)      The following terms
and their respective definitions are hereby added to Section 13.1 of the Loan Agreement as follows: 
 “Continuation Date” means any date on which Borrower continues a LIBOR Advance into another Interest Period. 

“Conversion Date” means any date on which Borrower converts a Prime Rate Advance to a
LIBOR Advance, 
 “Interest Payment Date” means: 

(a)      with respect to any LIBOR Advance, the last day of each Interest
Period applicable to such LIBOR Advance; and 
 (b)      with
respect to Prime Rate Advances: 
 (i)      for Finance Charges
owing with respect to Account Advances and Purchase Order Advances, (A) at all times that Borrower is Borrowing Base Eligible, the first (1st) calendar day of each month, and (B) at all other times, the date the corresponding Financed Receivable is
payable in accordance with Section 2.3 hereof; 

  
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(ii)      for Finance Charges owing with respect to
Non-Formula Advances, the first (1st) calendar day of
each month; and 
 (iii)      for all Finance Charges at all
times, each date a Prime Rate Advance is converted into a LIBOR Advance to the extent of the amount converted to a LIBOR Advance. 
 “Interest Period” means, as to any LIBOR Advance, the period commencing on the date of such LIBOR Advance, or on the conversion/continuation date on which the LIBOR Advance is converted
into or continued as a LIBOR Advance, and ending on the date that is 1, 2 or 3 months thereafter, in each case as Borrower may elect in the applicable Notice of Borrowing or Notice of Conversion/Continuation; provided, however, that
(a) no Interest Period with respect to any LIBOR Advance shall end later than the Maturity Date, (b) the last day of an Interest Period shall be determined in accordance with the practices of the LIBOR interbank market as from time to time
in effect, (c) if any Interest Period would otherwise end on a day that is not a Business Day, that Interest Period shall be extended to the following Business Day unless, in the case of a LIBOR Advance, the result of such extension would be to
carry such Interest Period into another calendar month, in which event such Interest Period shall end on the preceding Business Day, (d) any Interest Period pertaining to a LIBOR Advance that begins on the last Business Day of a calendar month
(or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period, and (e) interest shall
accrue from and include the first Business Day of an Interest Period but exclude the last Business Day of such Interest Period. 
 “Interest Rate Determination Date” means each date for calculating the LIBOR for purposes of determining the interest rate in respect of an Interest Period. The Interest Rate
Determination Date shall be the second Business Day prior to the first day of the related Interest Period for a LIBOR Advance. 
 “LIBOR” means, for any Interest Rate Determination Date with respect to an Interest Period for any Advance to be made, continued as or converted into a LIBOR Advance, the rate of interest
per annum determined by Bank to be the per annum rate of interest at which deposits in United States Dollars are offered to Bank in the London interbank market (rounded upward, if necessary, to the nearest 0.0001%) in which Bank customarily
participates at 11:00 a.m. (local time in such interbank market) two (2) Business Days prior to the first day of such Interest Period for a period approximately equal to such Interest Period and in an amount approximately equal to the amount of
such Advance. 
 “LIBOR Advance” means a Credit Extension that bears interest
based at the LIBOR Rate. 

  
 12 

 “LIBOR Rate” means, for each Interest
Period in respect of LIBOR Advances comprising part of the same Advances, an interest rate per annum (rounded upward, if necessary, to the nearest 0.0001%) equal to LIBOR for such Interest Period divided by one (1) minus
the Reserve Requirement for such Interest Period. 
 “Notice of Borrowing”
means a notice given by Borrower to Bank in accordance with Section 2.1.1(d), substantially in the form of Exhibit E, with appropriate insertions. 

“Notice of Conversion/Continuation” means a notice given by Borrower to Bank in
accordance with Section 2.7, substantially in the form of Exhibit F, with appropriate insertions. 
 “Prime Rate Advance” means a Credit Extension that bears interest based at the Prime Rate Rate. 

“Regulatory Change” means, with respect to Bank, any change on or after the date of
this Agreement in United States federal, state, or foreign laws or regulations, including Regulation D, or the adoption or making on or after such date of any interpretations, directives, or requests applying to a class of lenders including
Bank, of or under any United States federal or state, or any foreign laws or regulations (whether or not having the force of law) by any court or governmental or monetary authority charged with the interpretation or administration thereof.

 “Reserve Requirement” means, for any Interest Period, the average maximum
rate at which reserves (including any marginal, supplemental, or emergency reserves) are required to be maintained during such Interest Period under Regulation D against “Eurocurrency liabilities” (as such term is used in
Regulation D) by member banks of the Federal Reserve System. Without limiting the effect of the foregoing, the Reserve Requirement shall reflect any other reserves required to be maintained by Bank by reason of any Regulatory Change against
(a) any category of liabilities which includes deposits by reference to which the LIBOR Rate is to be determined as provided in the definition of LIBOR or (b) any category of extensions of credit or other assets which include Advances.

 “Subject Month” is the month which is two (2) calendar months after
any Testing Month. 
 “Testing Month” is any month with respect to which Bank
has tested Borrower’s Adjusted Quick Ratio. 
 2.9      Notice of
Borrowing. The form of Notice of Borrowing attached hereto as Exhibit E is hereby added to the Loan Agreement as Exhibit E thereto. 
 2.10    Notice of Conversion/Continuation. The form of Notice of Conversion/Continuation attached hereto as Exhibit F is hereby added to the Loan Agreement as
Exhibit F thereto. 

  
 13 

 3.      Limitation of Amendment.

 3.1      The amendments set forth in Section 2, above, is effective
for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise
prejudice any right or remedy which Bank may now have or may have in the future under or in connection with any Loan Document. 
 3.2      This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and
agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect. 
 3.3      In addition to those Events of Default specifically enumerated in the Loan Documents, the failure to comply with the terms of any covenant or agreement
contained herein shall constitute an Event of Default and shall entitle the Bank to exercise all rights and remedies provided to the Bank under the terms of any of the other Loan Documents as a result of the occurrence of the same. 

4.      Representations and Warranties. To induce Bank to enter into this Amendment,
Borrower hereby represents and warrants to Bank as follows: 

4.1      Immediately after giving effect to this Amendment (a) the
representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are
true and correct as of such date), and (b) no Event of Default has occurred and is continuing; 

4.2      Borrower has the power and authority to execute and deliver this Amendment
and to perform its obligations under the Loan Agreement, as amended by this Amendment; 

4.3      The organizational documents of Borrower delivered to Bank on the Effective
Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect; 
 4.4      The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this
Amendment, have been duly authorized; 
 4.5      The execution and
delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower,
(b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the
organizational documents of Borrower; 

  
 14 

 4.6      The execution and delivery by
Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or
registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; and 

4.7      This Amendment has been duly executed and delivered by Borrower and is the
binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application
and equitable principles relating to or affecting creditors’ rights. 

5.      Counterparts. This Amendment may be executed in any number of counterparts
and all of such counterparts taken together shall be deemed to constitute one and the same instrument. 

6.      Effectiveness. This Amendment shall be deemed effective upon (a) the
due execution and delivery to Bank of this Amendment by each party hereto, and (b) payment of Bank’s legal fees and expenses in connection with the negotiation and preparation of this Amendment. 

[Signature page follows.] 

  
 15 

 IN WITNESS
WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first written above. 
  

			
	 BANK

	
	 SILICON VALLEY BANK

		
	 By:
	 	 /s/    Teresa
Li

			
	 Name:
	 	 Terisa Li

			
	 Title:
	 	 Sr. Relationship Manager

  

			
	 BORROWER

	
	 AUDIENCE, INC.

		
	 By:
	 	 /s/    James L.
Lau

			
	 Name:
	 	 James L. Lau

			
	 Title:
	 	 CFO

  
 [Signature Page to Third Amendment
to Loan and Security Agreement] 

 EXHIBIT B 

SPECIALTY FINANCE DIVISION 
 Compliance Certificate 
 I, an authorized officer of
AUDIENCE, INC. (“Borrower”) certify under the Loan and Security Agreement (the “Agreement”) between Borrower and Silicon Valley Bank (“Bank”) as follows (all capitalized terms used herein shall have the meaning set
forth in the Agreement): 
 Borrower represents and warrants for each Financed Receivable: 

Each Financed Receivable is an Eligible Account. 
 Borrower is the owner with legal right to sell, transfer, assign and encumber such Financed Receivable; 
 The correct amount is on the Invoice Transmittal and is not disputed; 
 Payment is
not contingent on any obligation or contract and Borrower has fulfilled all its obligations as of the Invoice Transmittal date; 

Each Financed Receivable is based on an actual sale and delivery of goods and/or services rendered, is due to Borrower, is not past due
or in default, has not been previously sold, assigned, transferred, or pledged and is free of any liens, security interests and encumbrances other than Permitted Liens; 
 There are no defenses, offsets, counterclaims or agreements for which the Account Debtor may claim any deduction or discount; 
 It reasonably believes no Account Debtor with respect to a Financed Receivable is insolvent or subject to any Insolvency Proceedings; 

It has not filed or had filed against it Insolvency Proceedings and does not anticipate any filing; 

Bank has the right to endorse and/ or require Borrower to endorse all payments received on Financed Receivables and all proceeds of
Collateral. 
 No representation, warranty or other statement of Borrower in any certificate or written statement given to Bank
contains any untrue statement of a material fact or omits to state a material fact necessary to make the statement contained in the certificates or statement not misleading. 
 Additionally, Borrower represents and warrants as follows: 
 Borrower and
each Subsidiary is duly existing and in good standing in its state of formation and qualified and licensed to do business in, and in good standing in, any state in which the conduct 

 
of its business or its ownership of property requires that it be qualified except where the failure to do so could not reasonably be expected to cause a Material Adverse Change. The execution,
delivery and performance of the Loan Documents have been duly authorized, and do not conflict with Borrower’s organizational documents, nor constitute an event of default under any material agreement by which Borrower is bound. Borrower is not
in default under any agreement to which or by which it is bound in which the default could reasonably be expected to cause a Material Adverse Change. 
 Borrower has good title to the Collateral, free of Liens except Permitted Liens. All inventory is in all material respects of good and marketable quality, free from material defects. 

Borrower is not an “investment company” or a company “controlled” by an “investment company” under the
Investment Company Act of 1940, as amended. 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 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. Borrower has not violated any laws, ordinances or rules, the violation of which could reasonably be expected to cause a Material Adverse
Change. None of Borrower’s or any Subsidiary’s 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 Subsidiary has timely filed all required tax returns and paid, or made adequate provision to pay, all material taxes, except those being contested in good faith with adequate reserves
under GAAP. Borrower and each Subsidiary has obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all government authorities that are necessary to continue its business as currently
conducted except where the failure to obtain or make such consents, declarations, notices or filings would not reasonably be expected to cause a Material Adverse Change. 

 

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

	 	 	 
	 	  	 	  	 
	 Reporting Covenant
	  	
Required
	  	 Complies

	 	 	 
	 	  	 	  	 
	 Monthly financial statements with Compliance Certificate
	  	 Monthly within 30 days
	  	Yes No
	
Annual financial statement (CPA Audited) + CC
	  	 FYE within 180 days
	  	Yes No
	 Annual financial projections
	  	 Within 10 days after Board
approval
	  	Yes No
	 A/R & A/P Agings
	  	 Monthly within 30 days
	  	Yes No
	 Deferred Revenue report and sell-through report
	  	 Upon Bank’s request
	  	Yes No

					
	 
	
Performance Pricing

	 	  		  	 
	 Account Advances
	  	 	  	 
	 Adjusted Quick Ratio
3 1.25:1.00
	  	 LIBOR + 1.75% (net)
	  	Yes No
	 Adjusted Quick Ratio
£ 1.25:1.00
	  	 Prime + 0.35% (gross)
	  	Yes No
	 Net Cash < $1.00
	  	
Collateral Handling Fee of 0.2% (gross)
	  	Yes No
	 	 	 
	 	  	 	  	 
	 Purchase Order Advances
	  	 	  	 
	 At all times
	  	 Prime Rate (gross)
	  	Yes No
	 	 	 
	 	  	 	  	 
	 Non-Formula Advances
	  	 	  	 
	 At all times
	  	 Prime + 0.35% (net)
	  	Yes No

 All representations and warranties in the Agreement are true and correct in all material respects on this
date, and Borrower represents that there is no existing Event of Default. 
  

			
	 Sincerely,

	
	 AUDIENCE, INC.

		
		 	  

Signature

		
		 	  

Title

		
		 	  

Date

 EXHIBIT E 

FORM OF NOTICE OF BORROWING 
 AUDIENCE, INC. 
 Date:
                         
  

	 To:
	 SILICON VALLEY BANK 

	     
	 3003 Tasman Drive 

	     
	 Santa Clara, CA 95054 

	     
	 Attention: Corporate Services Department 

  

	 RE:
	 Loan and Security Agreement dated as of July 31, 2009 (as amended, modified, supplemented or restated from time to time, the “Loan
Agreement”), by and between AUDIENCE, INC.(“Borrower”), and Silicon Valley Bank (the “Bank”) 

 Ladies and Gentlemen: 
 The undersigned refers to the Loan
Agreement, the terms defined therein and used herein as so defined, and hereby gives you notice irrevocably, pursuant to Section 2.1.1(d) of the Loan Agreement, of the borrowing of an Advance. 

The Funding Date, which shall be a Business Day, of the requested borrowing is
                    . 
 The aggregate amount of the requested borrowing is $                    . 

The requested Advance shall consist of $            
of Prime Rate Advances and $             of LIBOR Advances. 
 The duration of the Interest Period for the LIBOR Advances included in the requested Advance shall be              months. 

The undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the date
of the proposed Advance before and after giving effect thereto, and to the application of the proceeds therefrom, as applicable: 
 (a) all representations and warranties of Borrower contained in the Loan Agreement are true, accurate and complete in all material respects as of the date hereof; provided, however, that such
materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof, and provided, further that those representations and warranties expressly referring to a
specific date shall be true, accurate and complete in all material respects as of such date; 

(b) no Default or Event of Default has occurred and is continuing, or would result from such
proposed Advance; and 
 (c) the requested Advance will not cause the aggregate principal
amount of the outstanding Advances to exceed, as of the designated Funding Date, the maximum amounts set forth in Section 2.1.1(c) of the Loan Agreement. 

			
	 BORROWER
	  	 AUDIENCE, INC.

  

			
	 By:
	 	 

 
			
	 Name:
	 	 

 
			
	 Title:
	 	 

 For internal Bank use only 

 

							
	LIBOR Pricing Date	  	LIBOR	  	LIBOR Variance	  	Maturity Date
	 	  	 	  	___%	  	 
	 	  	 	  	  	 

 EXHIBIT F 

FORM OF NOTICE OF CONVERSION/CONTINUATION 
 AUDIENCE, INC. 

Date:                    

  

	 To:
	 SILICON VALLEY BANK 

	     
	 3003 Tasman Drive 

	     
	 Santa Clara, CA 95054 

	     
	 Attention: Corporate Services Department 

  

	 RE:
	 Loan and Security Agreement dated as of July 31, 2009 (as amended, modified, supplemented or restated from time to time, the “Loan
Agreement”), by and between AUDIENCE, INC.(“Borrower”), and Silicon Valley Bank (the “Bank”) 

 Ladies and Gentlemen: 
 The undersigned refers to the Loan
Agreement, the terms defined therein being used herein as therein defined, and hereby gives you notice irrevocably, pursuant to Section 2.7 of the Loan Agreement, of the [conversion] [continuation] of the Advances specified herein, that:

 1.     The date of the [conversion] [continuation] is
                    , 20__. 
 2.     The aggregate amount of the proposed Advances to be [converted] is
$                     or [continued] is
$                    . 
 3.     The Advances are to be [converted into] [continued as] [LIBOR] Advances. 
 4.     The duration of the Interest Period for the LIBOR Advances included in the [conversion] [continuation] shall be
             months. 
 The undersigned, on
behalf of Borrower, hereby certifies that the following statements are true on the date hereof, and will be true on the date of the proposed [conversion] [continuation], before and after giving effect thereto and to the application of the proceeds
therefrom: 
 (a)      all representations and warranties of
Borrower stated in the Loan Agreement are true, accurate and complete in all material respects as of the date hereof; and 
 (b)      no Default or Event of Default has occurred and is continuing, or would result from such proposed [conversion] [continuation]. 

[Signature page follows.] 

			
	 BORROWER
	  	 AUDIENCE, INC.

  

			
	 By:
	 	 

 
			
	 Name:
	 	 

 
			
	 Title:
	 	 

 For internal Bank use only 

 

							
	LIBOR Pricing Date	  	LIBOR	  	LIBOR Variance	  	Maturity Date
	 	  	 	  	___%Severance Agreement

 Exhibit 10.8 
 AUDIENCE, INC. 
 SEVERANCE AGREEMENT 

This Severance Agreement (the “Agreement”) is made and entered into by and between Lloyd Watts,
Ph.D. (“Executive”) and Audience, Inc., a Delaware corporation (the “Company”), effective as of August 30, 2011 (the “Effective Date”). 

RECITALS 
 1.        Executive is a founder of the Company and will be transitioning into the role as Chief Scientist. 

2.        The Board of Directors of the Company (the
“Board”) believes that it is in the best interests of the Company and its shareholders (i) to assure that the Company will have the continued dedication and objectivity of Executive and (ii) to provide Executive
with an incentive to continue Executive’s employment and to motivate Executive to maximize the value of the Company for the benefit of its shareholders. 
 3.        The Board believes that it is imperative to provide Executive with certain severance benefits upon Executive’s termination of employment under
certain circumstances. These benefits will provide Executive with enhanced financial security and incentive and encouragement to remain with the Company. 
 4.        Certain capitalized terms used in the Agreement are defined in Section 6 below. 

AGREEMENT 
 NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties hereto agree as follows: 
 1.        Term of Agreement. This Agreement will terminate upon the date that all of the obligations of the parties hereto with respect to this Agreement
have been satisfied. 
 2.        At-Will Employment. The Company
and Executive acknowledge that Executive’s employment is and will continue to be at-will, as defined under applicable law. If Executive’s employment terminates for any reason, Executive will not be entitled to any payments, benefits,
damages, awards or compensation other than as provided by this Agreement, the payment of accrued but unpaid wages or other compensation, as required by law, as may otherwise be available in accordance with the Company’s established employee
plans, and any unreimbursed reimbursable expenses, and this Agreement supercedes all prior agreements or arrangements relating to the same. 

  

 3.      Severance Benefits. 

(a)      Termination without Cause or Resignation for Good Reason. If the Company
terminates Executive’s employment with the Company without Cause or if Executive resigns from such employment for Good Reason, then subject to Section 4, Executive will receive the following: 

(i)      Accrued Compensation. The Company will pay Executive all accrued but
unpaid vacation, expense reimbursements, wages, and other benefits due to Executive under any Company-provided plans, policies, and arrangements. 
 (ii)      Severance Payment. Executive will be paid continuing payments of severance pay at a rate equal to Executive’s base salary rate, as then in effect, for
six (6) months from the date of such termination of employment, to be paid periodically in accordance with the Company’s normal payroll policies. 
 (iii)      Extended Post-Termination Exercise Period. Notwithstanding any other provision in any applicable equity compensation plan and/or individual stock option
agreement, Executive’s outstanding and vested stock options as of the Executive’s termination of employment date will remain exercisable until the earlier of: (x) the (2) year anniversary of Executive’s termination of
employment date; or (y) the one (1) year anniversary of the effective date of the first registration statement that is filed by the Company and declared effective pursuant to Section 12(g) of the Securities Exchange Act of 1934, as
amended, with respect to any class of the Company’s securities; provided, however, that the post-termination exercise period for any individual stock option will not extend beyond the earlier of its original maximum term or the tenth
(10th) anniversary of the original date of grant. Executive understands that to the extent any of his currently outstanding stock options qualify as “incentive stock options” under Section 422 of the Internal Revenue Code of
1986, as amended, the extending of the post-termination exercise periods thereof is a modification of such incentive stock options, may disqualify his stock options as incentive stock options and may result in Executive having nonstatutory stock
options. Executive represents that he has had the opportunity to consult with any tax advisors Executive deems advisable in connection with the execution of this Agreement and that Executive is not relying on the Company for any tax advice.

 (b)      Voluntary Resignation; Termination for Cause. If
Executive’s employment with the Company terminates voluntarily by Executive (other than for Good Reason), then Executive will not be entitled to receive severance or other benefits except for (i) those (if any) as may then be established
under the Company’s then existing severance and benefits plans and practices or pursuant to other written agreements with the Company, and (ii) the Extended Post-Termination Exercise Period set forth in Section 3(a)(iii) above. If
Executive’s employment with the Company is terminated for Cause by the Company, then Executive will not be entitled to receive severance or other benefits except for those (if any) as may then be established under the Company’s then
existing severance and benefits plans and practices or pursuant to other written agreements with the Company. 

  
 -2-

 (c)        Disability; Death.
If the Company terminates Executive’s employment as a result of Executive’s Disability, or Executive’s employment terminates due to his or her death, then Executive will not be entitled to receive any other severance or other
benefits, except for (i) those (if any) as may then be established under the Company’s then existing written severance and benefits plans and practices or pursuant to other written agreements with the Company, and (ii) the Extended
Post-Termination Exercise Period set forth in Section 3(a)(iii) above. 

(d)        Exclusive Remedy. In the event of a termination of
Executive’s employment as set forth in Section 3(a) of this Agreement, the provisions of Section 3 are intended to be and are exclusive and in lieu of any other rights or remedies to which Executive or the Company otherwise may be
entitled, whether at law, tort or contract, in equity, or under this Agreement (other than the payment of accrued but unpaid wages, as required by law, and any unreimbursed reimbursable expenses). Executive will be entitled to no benefits,
compensation or other payments or rights upon a termination of employment other than those benefits expressly set forth in Section 3 of this Agreement. 
 4.      Conditions to Receipt of Severance 
 (a)        Release of Claims Agreement. The receipt of any severance payments or benefits (other than the accrued benefits set forth in either
Sections 3(a)(i)) pursuant to this Agreement is subject to Executive signing and not revoking a separation agreement and release of claims in a form acceptable to the Company (the “Release”), which must become effective
and irrevocable no later than the sixtieth (60th) day following Executive’s termination of employment (the “Release Deadline”). If the Release does not become effective and irrevocable by the Release Deadline,
Executive will forfeit any right to severance payments or benefits under this Agreement. In no event will severance payments or benefits be paid or provided until the Release actually becomes effective and irrevocable. 

(b)        Confidential Information and Invention Assignment Agreements.
Executive’s receipt of any payments or benefits under Section 3 (other than the accrued benefits set forth in either Sections 3(a)(i)) will be subject to Executive continuing to comply with the terms of the At Will Employment,
Confidentiality Information, Invention Assignment, and Arbitration Agreement dated March 25th, 2004, between the Company and Executive, as such agreement may be amended from time to time. 

(c)    Section 409A. 

(i)        Notwithstanding anything to the contrary in this Agreement, no
severance pay or benefits to be paid or provided to Executive, if any, pursuant to this Agreement that, when considered together with any other severance payments or separation benefits, are considered deferred compensation under Section 409A
of the Internal Revenue Code of 1986, as amended (the “Code”), and the final regulations and any guidance promulgated thereunder (“Section 409A”) (together, the “Deferred
Payments”) will be paid or otherwise provided until Executive has a “separation from service” within the meaning of Section 409A. Similarly, no severance payable to Executive, if any, pursuant to this Agreement that
otherwise would be exempt from Section 409A pursuant to Treasury Regulation Section 1.409A-1 (b)(9) will be payable until Executive has a “separation from service” within the meaning of Section 409A. 

  
 -3-

 (ii)        It is intended that
none of the severance payments under this Agreement will constitute “Deferred Payments” but rather will be exempt from Section 409A as a payment that would fall within the “short-term deferral period” as
described in Section 4(e)(iv) below or resulting from an involuntary separation from service as described in Section 4(c)(v) below. However, any severance payments or benefits under this Agreement that would be considered Deferred Payments
will be paid on, or, in the case of installments, will not commence until, the sixtieth (60th) day following Executive’s separation from service, or, if later, such time as required by Section 4(c)(iii). Except as required by
Section 4(c)(iii), any installment payments that would have been made to Executive during the sixty (60) day period immediately following Executive’s separation from service but for the preceding sentence will be paid to Executive on
the sixtieth (60th) day following Executive’s separation from service and the remaining payments shall be made as provided in this Agreement. 
 (iii)        Notwithstanding anything to the contrary in this Agreement, if Executive is a “specified employee” within the meaning of Section 409A at
the time of Executive’s termination (other than due to death), then the Deferred Payments, if any, that are payable within the first six (6) months following Executive’s separation from service, will become payable on the first
payroll date that occurs on or after the date six (6) months and one (1) day following the date of Executive’s separation from service. All subsequent Deferred Payments, if any, will be payable in accordance with the payment schedule
applicable to each payment or benefit. Notwithstanding anything herein to the contrary, if Executive dies following Executive’s separation from service, but before the six (6) month anniversary of the separation from service, then any
payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of Executive’s death and all other Deferred Payments will be payable in accordance with the payment schedule
applicable to each payment or benefit. Each payment and benefit payable under this Agreement is intended to constitute a separate payment under Section 1.409A-2(b)(2) of the Treasury Regulations. 

(iv)        Any amount paid under this Agreement that satisfies the requirements
of the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations will not constitute Deferred Payments for purposes of clause (i) above. 

(v)        Any amount paid under this Agreement that qualifies as a payment made
as a result of an involuntary separation from service pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations that does not exceed the Section 409A Limit (as defined below) will not constitute Deferred Payments for purposes of
clause (i) above. 
 (vi)        The foregoing provisions are
intended to comply with the requirements of Section 409A so that none of the severance payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be
interpreted to so comply. The Company and Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional
tax or income recognition before actual payment to Executive under Section 409A. 

  
 -4-

 5.      Limitation on Payments. In the
event that the severance and other benefits provided for in this Agreement or otherwise payable to Executive (i) constitute “parachute payments” within the meaning of Section 280G of the Code, and (ii) but for this
Section 5, would be subject to the excise tax imposed by Section 4999 of the Code, then Executive’s benefits under Section 3 will be either: 
  

	 	 (a)
	 delivered in full, or 

  

	 	 (b)
	 delivered as to such lesser extent which would result in no portion of such benefits being subject to excise tax under Section 4999 of the
Code, 

 whichever of the foregoing amounts, taking into account the applicable federal, state and local
income taxes and the excise tax imposed by Section 4999, results in the receipt by Executive on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under
Section 4999 of the Code. If a reduction in severance and other benefits constituting “parachute payments” is necessary so that benefits are delivered to a lesser extent, reduction will occur in the following order: (i) reduction
of cash payments; (ii) cancellation of awards granted “contingent on a change in ownership or control” (within the meaning of Code Section 280G), (iii) cancellation of accelerated vesting of equity awards;
(iv) reduction of employee benefits. In the event that acceleration of vesting of equity award compensation is to be reduced, such acceleration of vesting will be cancelled in the reverse order of the date of grant of Executive’s equity
awards. 
 Unless the Company and Executive otherwise agree in writing, any determination required under this
Section 5 will be made in writing by the Company’s independent public accountants or such other person or entity to which the parties mutually agree (the “Firm”), whose determination will be conclusive and binding
upon Executive and the Company. For purposes of making the calculations required by this Section 5, the Firm may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations
concerning the application of Sections 280G and 4999 of the Code. The Company and Executive will furnish to the Firm such information and documents as the Firm may reasonably request in order to make a determination under this Section. The
Company will bear all costs the Firm may incur in connection with any calculations contemplated by this Section 5. 
 6.      Definition of Terms. The following terms referred to in this Agreement will have the following meanings: 

 

	 	 (a)
	 Cause. “Cause” will mean: 

(i)      the Executive commits a crime involving dishonesty, breach of trust, or physical harm
to any person; 
 (ii)     the Executive willingly engages in conduct that is in bad
faith and injurious to the Company, including but not limited to, misappropriation of trade secrets, fraud or embezzlement; 

  
 -5-

 (iii)     the Executive commits a material breach
of this Agreement or any other written agreement with the Company; 
 (iv)     the
Executive willfully refuses to implement or follow a lawful policy or directive of the Company; or 

(b)        Disability. “Disability” means that
Executive has been unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than
twelve (12) months. Alternatively, Executive will be deemed disabled if determined to be totally disabled by the Social Security Administration. Termination resulting from Disability may only be effected after at least thirty
(30) days’ written notice by the Company of its intention to terminate Executive’s employment. In the event that Executive resumes the performance of substantially all of Executive’s duties hereunder before the termination of
Executive’s employment becomes effective, the notice of intent to terminate based on Disability will automatically be deemed to have been revoked. 
 (c)        Good Reason. “Good Reason” shall mean Executive’s voluntary termination, within thirty (30) days following the
expiration of any Company cure period (discussed below) following, without Executive’s consent: 

(i)     a material reduction by the Company of Executive’s then-current annual base
salary, except to the extent the base salaries of all other executives of the Company are similarly reduced; 

(ii)     following Executive’s transition to the position of Chief Scientist, a material
reduction of Executive’s duties, authority or responsibilities, provided that any reduction in duties, authority or responsibilities resulting solely from the Company being acquired by and made a part of a larger entity shall not be considered
a material reduction; or 
 (iii)     a material change in the geographic location of
Executive’s principal workplace; provided, that a relocation of less than fifty (50) miles from Mountain View, California will not be considered a material change in geographic location 

Executive may not resign for Good Reason without first providing the Company with written notice within ninety (90) days of the
initial existence of the condition that you believe constitutes “Good Reason” specifically identifying the acts or omissions constituting the grounds for Good Reason and a reasonable cure period of not less than thirty (30) days
following the date of such notice. 
 (d)        Section 409A
Limit. “Section 409A Limit” will mean two (2) times the lesser of: (i) Executive’s annualized compensation based upon the annual rate of pay paid to Executive during the Executive’s taxable year
preceding the Executive’s taxable year of Executive’s termination of employment as determined under, and with such adjustments as are set forth in, Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service
guidance issued with respect thereto; or (ii) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which Executive’s employment is terminated. 

  
 -6-

 7.      Successors. 

(a)      The Company’s Successors. Any successor to the Company (whether direct
or indirect and whether by purchase, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets will assume the obligations under this Agreement and agree expressly to perform the
obligations under this Agreement in the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession. For all purposes under this Agreement, the term “Company” will include
any successor to the Company’s business and/or assets which executes and delivers the assumption agreement described in this Section 7(a) or which becomes bound by the terms of this Agreement by operation of law. 

(b)      Executive’s Successors. The terms of this Agreement and all rights of
Executive hereunder will inure to the benefit of, and be enforceable by, Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 

8.        Notice. 

(a)      General. Notices and all other communications contemplated by this
Agreement will be in writing and will be deemed to have been duly given when sent electronically or personally delivered when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid or when delivered by a private
courier service such as UPS, DHL or Federal Express that has tracking capability. In the case of Executive, notices will be sent to the e-mail address or addressed to Executive at the home address, in either case which Executive most recently
communicated to the Company in writing. In the case of the Company, electronic notices will be sent to the e-mail address of the Chief Executive Officer and the General Counsel and mailed notices will be addressed to its corporate headquarters, and
all notices will be directed to the attention of its Chief Executive Officer and General Counsel. 

(b)      Notice of Termination. Any termination by the Company for Cause or by
Executive for Good Reason will be communicated by a notice of termination to the other party hereto given in accordance with Section 8(a) of this Agreement. Such notice will indicate the specific termination provision in this Agreement relied
upon, will set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination under the provision so indicated, and will specify the termination date (which will be not more than ninety (90) days after the
giving of such notice). 

  
 -7-

 9.        Resignation. Upon
the termination of Executive’s employment for any reason, Executive will be deemed to have resigned from all officer and/or director positions held at the Company and its affiliates voluntarily, without any further required action by Executive,
as of the end of Executive’s employment and Executive, at the Board’s request, will execute any documents reasonably necessary to reflect Executive’s resignation. 

10.        Miscellaneous Provisions. 

(a)      No Duty to Mitigate. Executive will not be required to mitigate the amount
of any payment contemplated by this Agreement, nor will any such payment be reduced by any earnings that Executive may receive from any other source. 
 (b)      Waiver. No provision of this Agreement will be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed
by Executive and by an authorized officer of the Company (other than Executive). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party will be considered a waiver of any
other condition or provision or of the same condition or provision at another time. 

(c)      Headings. All captions and section headings used in this Agreement are for
convenient reference only and do not form a part of this Agreement. 

(d)      Entire Agreement. This Agreement constitutes the entire agreement of the
parties hereto and supersedes in their entirety all prior representations, understandings, undertakings or agreements (whether oral or written and whether expressed or implied) of the parties with respect to the subject matter hereof, including all
prior agreements purporting to amend options held by Executive and all prior agreements providing for severance or other compensation to Executive upon termination or resignation of his employment with the Company. No waiver, alteration, or
modification of any of the provisions of this Agreement will be binding unless in writing and signed by duly authorized representatives of the parties hereto and which specifically mention this Agreement. 

(e)      Choice of Law. The validity, interpretation, construction and performance
of this Agreement will be governed by the laws of the State of California (with the exception of its conflict of laws provisions). Any claims or legal actions by one party against the other arising out of the relationship between the parties
contemplated herein (whether or not arising under this Agreement) will be commenced or maintained in any state or federal court located in the jurisdiction where Executive resides, and Executive and the Company hereby submit to the jurisdiction and
venue of any such court 
 (f)      Severability. The invalidity or
unenforceability of any provision or provisions of this Agreement will not affect the validity or enforceability of any other provision hereof, which will remain in full force and effect. 

(g)      Withholding. All payments made pursuant to this Agreement will be subject
to withholding of applicable income, employment and other taxes. 

  
 -8-

 (h)      Effect of this Agreement.
Executive understands that to the extent any Options qualified as incentive stock options under the Internal Revenue Code of 1986, as amended, the amendment to the Options to extend the post-termination exercise periods thereof may disqualify the
Options as incentive stock options and may result in Executive having non-qualified stock options. Executive further understands that in any event an incentive stock option converts into a non-qualified stock option three (3) months and one
(1) day after the Executive’s termination of employment with the Company. Executive represents that Executive has consulted with any tax consultants Executive deems advisable in connection with the execution of this Agreement and that
Executive is not relying on the Company for any tax advice. 

(i)      Counterparts. This Agreement may be executed in counterparts, each of
which will be deemed an original, but all of which together will constitute one and the same instrument. 

  
 -9-

 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the
case of the Company by its duly authorized officer, as of the day and year set forth below. 
  

							
	 COMPANY
	 		 	 AUDIENCE, INC.

				
		 		 	 BY:
	 	 /s/ Peter Santos        

				
		 		 	 Title:
	 	 President & CEO

				
		 		 	 Date:
	 	 9.9.11

  

							
	 EXECUTIVE
	 		 	 By:
	 	 /s/ Lloyd Watts         

				
		 		 	 Title:
	 	 Chief Technology Officer

				
		 		 	 Date:
	 	 Sept 9/2011

  
 -10-

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