Document:

Lease between the Registrant and the Scottish Provident Institution

 Exhibit 10.12 
 18 October 2000 
 THE SCOTTISH PROVIDENT INSTITUTION 

SYNAXIA NETWORKS LIMITED 
  

 
 LEASE 

of premises at 

Queensgate House Waterside Park 
 Bracknell Berkshire 
  

 
 We hereby certify this to be a
true copy of the original. 
 FRESHFIELDS BRUCKHAUS DERINGER 

 Contents 

 

					
	 Clause
	  	Page	 
	 INTERPRETATION
	  	 	1	  
		
	 Definitions
	  	 	1	  
	 Construction
	  	 	4	  
		
	 DEMISE AND RENTS
	  	 	5	  
		
	 RENT REVIEW
	  	 	6	  
		
	 TENANT’S COVENANTS
	  	 	6	  
		
	 LANDLORD’S COVENANTS
	  	 	6	  
		
	 PROVISOS
	  	 	6	  
		
	 RECORD OF WHETHER A NEW
TENANCY
	  	 	7	  
		
	 THE FIRST SCHEDULE
	  	 	7	  
		
	 Part I The Estate
	  	 	7	  
	 Part II The Demised Premises
	  	 	7	  
	 Part III Rights granted
	  	 	7	  
	 Services
	  	 	7	  
		
	 THE THIRD SCHEDULE
	  	 	10	  
	 Tenant’s Covenants
	  	 	10	  
	 Pay rents
	  	 	10	  
	 Insurance
	  	 	10	  
	 Pay outgoings
	  	 	10	  
	 Repair
	  	 	11	  
	 Decoration maintenance and cleaning
	  	 	12	  
	 Yield up
	  	 	12	  
	 Permit entry for Landlord and others
	  	 	13	  
	 Remedy wants of repair and entry for Landlord on default
	  	 	14	  
	 Letting and dealing boards
	  	 	14	  
	 Notices
	  	 	14	  
	 Statutory requirements
	  	 	15	  
	 Alterations
	  	 	16	  
	 Signs
	  	 	18	  
	 Dangerous and deleterious substances
	  	 	18	  
	 Fire precautions
	  	 	18	  
	 Securing unoccupied premises
	  	 	19	  
	 Loading
	  	 	19	  
	 Use
	  	 	19	  

					
	 Insurers’ requirements
	  	 	19	  
	 Notify damage by Insured Risks
	  	 	20	  
	 Prevent encroachments
	  	 	20	  
	 Alienation
	  	 	20	  
	 Underletting
	  	 	22	  
	 Register devolutions
	  	 	25	  
	 Compensation
	  	 	25	  
	 Defective premises
	  	 	26	  
	 Indemnify Landlord
	  	 	26	  
	 Costs
	  	 	26	  
	 Value Added Tax
	  	 	27	  
	 Comply with title matters
	  	 	27	  
	 Notify matters affecting Guarantor’s covenants
	  	 	27	  
	 Use of common areas
	  	 	28	  
	 Refuse regulation
	  	 	28	  
	 Regulations
	  	 	28	  
		
	 THE FOURTH SCHEDULE
	  	 	28	  
	 Landlord’s Covenants
	  	 	28	  
	 Quiet enjoyment
	  	 	28	  
	 Insurance
	  	 	28	  
	 Repair of Services
	  	 	29	  
	 Repair of Estate Road
	  	 	29	  
	 Repair of Landscaped Areas and Car Parks
	  	 	30	  
		
	 THE FIFTH SCHEDULE
	  	 	30	  
		
	 Provisos Agreements and Declarations
	  	 	30	  
	 Forfeiture
	  	 	30	  
	 Notices
	  	 	31	  
	 Determination on destruction
	  	 	32	  
	 Landlord to have insurance moneys on frustration
	  	 	32	  
	 Double insurances
	  	 	32	  
	 Interest on unpaid rents and other moneys
	  	 	32	  
	 Non-acquisition of easements
	  	 	33	  
	 Refusal of rent when breach exists
	  	 	33	  
	 Tenant’s covenants fully enforceable
	  	 	33	  
	 Warranty disclaimer
	  	 	33	  
	 Exclusion of liability
	  	 	33	  
	 Enforcement of Landlord’s covenants
	  	 	34	  
	 Compensation exclusion
	  	 	34	  
	 Common areas
	  	 	34	  
	 Modification of Regulations
	  	 	34	  
	 Disputes with Adjoining Owners
	  	 	35	  
	 Requirement for Notice of Want of Repair
	  	 	35	  
	 Severability
	  	 	35	  
	 Governing Law and Jurisdiction
	  	 	35	  

  
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	 Contracts (Rights of Third Parties) Act 1999
	  	 	35	  
		
	 THE SIXTH SCHEDULE
	  	 	36	  
		
	 Regulations
	  	 	36	  

  
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 THIS LEASE is made on 18th October 2000 

BETWEEN 
 THE SCOTTISH PROVIDENT INSTITUTION whose head office is at P.O. Box 58 6 St. Andrew Square Edinburgh EH2 2YA (the Landlord); 

SYNAXIA NETWORKS LIMITED (registered number 3516646) whose registered office is at 6 Saint Andrew Street London EC4A 3LX (the
Tenant). 
 NOW THIS DEED WITNESSES as follows:

 INTERPRETATION 
 Definitions 
 1.1 In this Lease unless the context otherwise requires the
following expressions shall have the following meanings: 
 Authorised Guarantee Agreement means an authorised
guarantee agreement with respect to the performance by an assignee of the tenant’s covenants in this Lease to be entered into by the Tenant pursuant to paragraph 22.6 of the Third Schedule such agreement to be in accordance with the
provisions of section 16 of the Landlord and Tenant (Covenants) Act 1995 and subject thereto to be in such terms as the Landlord may reasonably require; 
 Base Rate means the base rate of Bank of Scotland from time to time ruling or if the same shall become incapable of determination such reasonable rate of interest as the Landlord may from
time to time specify in substitution therefor; 
 Basic Rent means the clear yearly rent of Three hundred and
thirty two thousand and five hundred pounds (£332,500) as increased from time to time pursuant to the Second Schedule; 
 COM Regulations means the Construction (Design and Management) Regulations 1994; 
 Car Parks means the areas shown coloured pink on the Plan; 

Conducting Media means sewers drains gutters rain water pipes watercourses telecommunications water gas electric mains and
other pipes wires cables ducts and any other conducting media of whatsoever nature; 
 Demised Premises means the
land and premises more particularly described in Part I of the First Schedule and any part thereof together with all buildings now or hereafter erected thereon all Conducting Media and Plant in through over under or upon the said premises all
additions alterations and improvements thereto and all fixtures and fittings therein (other than tenant’s and trade fixtures and fittings); 

 Estate means the land and buildings more particularly described in Part I
of the First Schedule of which the Demised Premises form part or such premises of greater or lesser extent as the Landlord may from time to time notify to the Tenant; 
 Estate Road means the road and pavements shown coloured yellow on the Plan; 
 Insured Risks means the risks of fire storm tempest flood lightning explosion and in peacetime aircraft and articles dropped therefrom riot civil commotion malicious damage terrorism impact
plant and machinery cover overflowing of tanks and bursting of pipes (except always such risks as cannot reasonably be insured on satisfactory terms or at a reasonable premium or as the insurers or underwriters have refused to insure) and such other
risks as the Landlord shall from time to time insure (subject in all cases to any excesses exclusions and limitations imposed by the insurers or underwriters); 
 Landlord includes the estate owner for the time being of the reversion immediately expectant on the Termination of the Term; 

Landlord’s Surveyor means any firm or person (including a chartered surveyor employed by the Landlord but not the
Surveyor) appointed by or acting for the Landlord to perform the function of a surveyor for any purpose under this Lease; 

Landscaped Areas means the areas shown coloured green on the Plan; 

this Lease means this Lease any licence or consent granted pursuant hereto and any variation hereof and any deed or
instrument made supplemental hereto; 
 Open Market Rent means the dear yearly rent at which the Demised Premises
might reasonably be expected to be let at the Relevant Review Date as a whole or (if the Demised Premises are then sub-let in part or parts for a period of five years after such Relevant Review Date and the aggregate rental value of such parts
(together with any parts which are not sub-let) is greater than the rental value of the Demised Premises as a whole) in the several parts in which the Demised Premises are then divided by a willing landlord to a willing tenant in the open market
with vacant possession and without fine or premium for a term equal to the contractual term granted by this Lease but commencing on the Relevant Review Date at the rate applicable after the expiry of any rent free or reduced rent period and/or after
the giving of any other inducement of such length or of such amount or nature as would be negotiated in the open market between the willing landlord and the willing tenant to enable the willing tenant to fit out assuming (if not a fact) that:

 (a) the Demised Premises and all rights appurtenant thereto and all buildings comprised therein are then in existence and if
damaged or destroyed are fully restored and reinstated and any rent cesser or rent abatement in accordance with this Lease does not apply; 
 (b) the willing tenant has received the benefit of such rent free or reduced rent period or other inducement to enable the willing tenant to fit out; 

(c) the Demised Premises enjoy all rights and services necessary for the beneficial use thereof; 

  
 -2-

 (d) all the covenants stipulations and conditions contained in this Lease on the part of
the Tenant have been duly and fully performed observed and complied with; 
 (e) no work has been carried out to the Demised
Premises during the Term or during any period of occupation by the Tenant or any undertenant or their respective predecessors in title prior to the date of this Lease which would diminish the letting value thereof; 

(f) the willing tenant is with others in the open market for the Demised Premises; 

(g) (notwithstanding any act omission or default of the Tenant or other circumstance) the Demised Premises are fit and ready for
immediate occupation and use and can lawfully be used for any use permitted by this Lease; 
 and on a lease which shall
otherwise contain the same terms and provisions in all respects as this Lease (other than the amount of the Basic Rent but including the provisions for review of the Basic Rent herein contained on the basis that such review will take place at five
yearly intervals) there being disregarded any effect on rent of: 
 (A) the fact that the Tenant or any lawful sub-tenant or
occupier or their respective predecessors in title has been in occupation of the Demised Premises; 
 (B) any goodwill attached
to the Demised Premises by reason of the carrying on thereat of the business of the Tenant or any lawful sub-tenant or occupier or their respective predecessors in such business; 

(C) any improvement lawfully carried out by the Tenant or any lawful sub-tenant or occupier at its own expense with the Landlord’s
written consent (where required) otherwise than in pursuance of an obligation to the Landlord or its predecessors in title; 

(D) all Statutory Rent Restrictions; 
 Perpetuity Period means the period beginning on the date hereof and expiring on the sooner of eighty years from the date hereof and the Termination of the Term; 

Plan means the plan or plans annexed hereto; 
 Planning Acts means the Town and Country Planning Act 1990 the Planning (Listed Buildings and Conservation Areas) Act 1990 the Planning (Hazardous Substances) Act 1990 the Planning
(Consequential Provisions) Act 1990 the Plan and Compensation Act 1991 the Local Government Planning and Land Act 1980 the Local Government (Miscellaneous Provisions) Act 1982 the Housing and Planning Act 1986 and any act for the time being in force
of a similar nature or any laws and regulations intended to control or regulate the construction demolition alteration or change of use of land or buildings or to preserve or protect the environment or the national heritage; 

Plant means plant equipment machinery apparatus and installations; 

  
 -3-

 Prescribed Rate means four per centum per annum above Base Rate compounded
with rests on the Rent Days such rate to apply as well after as before any judgment; 
 Regulations means the
regulations set out in the Sixth Schedule and any variations or additions thereto from time to time notified in writing to the Tenant and made by or on behalf of the Landlord for the proper management care or security of the Estate or the comfort
safety or convenience of occupants thereof or persons resorting thereto; 
 Rent Days mean
25 March 24 June 29 September and 25 December in each year and Relevant Rent Day shall be construed accordingly; 
 Review Date means 19 October 2005 and each successive fifth anniversary of such date during the Term and Relevant Review Date shall be construed accordingly; 

Review Period means the period between a Review Date and the next succeeding Review Date or the Termination of the Term (as
the case may be) and Relevant Review Period shall be construed accordingly; 
 Statutory Rent
Restrictions means restrictions imposed by any Act of Parliament which operate to impose any limitation whether in time or amount on the review of the Basic Rent and/or the collection of an increase in the Basic Rent; 

Surveyor means an independent chartered surveyor of recognised standing experienced in the valuation and letting of
premises so far as practicable of similar character or comparable to the Demised Premises in the locality thereof or if there are no such premises locally then in the same region as the Demised Premises or nationally (as the case may require);

 Tenant includes its successors in title and assigns and in the case of an individual his personal
representatives; 
 Term means the term hereby granted and shall include any extension holding over or
continuation thereof whether by statute agreement or otherwise; 
 Termination of the Term means the determination
of the Term whether by effluxion of time re-entry surrender or otherwise; 
 Value Added Tax means Value Added Tax
and any other tax replacing or supplementing the same from time to time. 
 Construction 

1.2 This Lease shall unless the context otherwise requires be construed on the basis that: 

(a) where the Tenant for the time being or any guarantor of this Lease comprises more than one person covenants and obligations assumed
by the Tenant or any such guarantor (as the case may be) shall be construed as made by all such persons jointly and severally; 

  
 -4-

 (b) the Term shall be deemed to commence for all purposes on the date of commencement
specified in clause 2; 
 (c) references (whether specific or general) to any Act of Parliament order instrument regulation
directive direction or plan shall be deemed also to refer to any statutory or other modification or re-enactment thereof from time to time in force and to include any requirement having the force of law in the United Kingdom and any subordinate
legislation order instrument regulation direction or plan from time to time in force made or issued thereunder or deriving validity therefrom or from any enactment repealed thereby or under any such modification or re-enactment; 

(d) any rights easements and privileges reserved to the Landlord under this Lease and the benefit of all other provisions which may be
exercised under this Lease by the Landlord shall also be for the benefit of and be exercisable by any superior landlord for the time being and any mortgagee of the Landlord and any provision requiring the consent or approval of the Landlord shall be
construed as being deemed to require also the consent or approval of any superior landlord or mortgagee where necessary and any indemnity given to the Landlord shall be deemed to extend to any superior landlord or mortgagee; 

(e) any covenant on the part of the Tenant not to do any act or thing shall include an obligation on the part of the Tenant not to permit
or suffer such act or thing; 
 (f) words denoting one gender include the other genders and words denoting persons include firms
and corporations and vice versa; 
 (g) clause and paragraph headings shall not affect the interpretation of this Lease;

 (h) the words including and include shall be deemed to be followed by the words without
limitation. 
 DEMISE AND RENTS 

2. In consideration of the rents hereby reserved and the covenants on the part of the Tenant and the conditions hereinafter contained the
Landlord HEREBY DEMISES unto the Tenant the Demised Premises TOGETHER WITH (but to the exclusion of all others) so far as the Landlord is able to grant the same the rights set out in
Part III of the First Schedule EXCEPTING AND RESERVING unto the Landlord and to all other persons from time to time entitled thereto the rights set out in Part IV of the First Schedule
TO HOLD the same unto the Tenant SUBJECT to all rights of light and air and all covenants easements rights and privileges (if any) affecting the Demised Premises including the rights covenants and other
matters more particularly contained or referred to in the Property and Charges Registers of title BK219351 and in the documents short particulars whereof are set out in Part V of the First Schedule for a term of fifteen years commencing on
19 October 2000 YIELDING AND PAYING therefor unto the Landlord without deduction set-off or counterclaim (except such as the Tenant may be required by law to deduct notwithstanding any stipulation to
the contrary): 
 2.1 Basic Rent: yearly during the Term and so in proportion for any period less than a year the Basic
Rent which shall be paid whether or not demanded in advance by equal 

  
 -5-

 
quarterly payments on each of the Rent Days except the first payment which shall be made on the 25 March 2001 in respect of the period from and including 1 June 2001 to (but excluding)
the next following Rent Day; 
 2.2 Road Rent: by way of further rent within 14 days of demand a due and fair proportion
(to be conclusively determined by the Landlord’s Surveyor) of (i) all sums incurred by the Landlord (whether by way of payment or incurred as a contribution) including any Value Added Tax or other similar tax thereon so far as the same is
irrecoverable by the Landlord or the person to whom the contribution is payable in the repair maintenance cleansing and when necessary resurfacing rebuilding and renewal (but not improvement) of the Estate Road and (ii) all administrative
charges and managing agents’ fees reasonably and properly incurred by the Landlord as aforesaid in connection therewith; 

2.3 Landscape Areas and Car Parks Rent: By way of further rent within 14 days of demand an amount equal to all sums incurred
by the Landlord including Value Added Tax or other similar tax thereon so far as the same is irrecoverable by the Landlord in the repair maintenance cleansing marking out and (when necessary) resurfacing rebuilding renewal and replacing of the
Landscaped Areas and Car Parks together with all administrative charges and managing agents’ fees incurred by the Landlord in connection therewith; 
 2.4 Insurance Rent: by way of further rent within 14 days of demand an amount equal to the cost of insurance incurred from time to time in respect of the Demised Premises and the other items
referred to in paragraph 1.2 of the Third Schedule; 
 2.5 Further Rent: by way of further rent all interest and other
amounts payable under and at the times set out in this Lease; 
 2.6 Value Added Tax: the Value Added Tax which is or may
be chargeable (by reason of an election of the Landlord or otherwise) in respect of the rents reserved by this Lease. 

RENT REVIEW 
 3. The Basic Rent shall be reviewed and (if appropriate) increased at the times and in the manner set out in the Second Schedule. 
 TENANT’S COVENANTS 
 4. The Tenant covenants with the Landlord in the manner set out in the Third Schedule. 
 LANDLORD’S COVENANTS 
 5. The Landlord covenants with the Tenant in the manner set out in the Fourth Schedule. 
 PROVISOS 
 6. It is agreed and declared in the
manner set out in the Fifth Schedule. 

  
 -6-

 RECORD OF WHETHER A
NEW TENANCY 
 7. It is hereby recorded that the tenancy created by this Lease
is a new tenancy within the meaning of section 1(3) of the Landlord and Tenant (Covenants) Act 1995. 
 DULY
DELIVERED AS A DEED on the date inserted on page 1 
 THE FIRST
SCHEDULE 
 Part I 
 The Estate 
 ALL THAT piece or parcel of land
at the north west side of Longshot Lane Bracknell in the County of Berkshire known as Waterside Park as the same is registered at H.M. Land Registry with absolute title under title number BK 219351 and is shown for identification edged in blue on
the Plan. 
 Part II 
 The Demised Premises 
 The land situated at Waterside Park Bracknell
Berkshire forming part of the Estate and known as Queensgate House for the purpose of identification only shown edged red on the Plan. 
 Part III 
 Rights granted 

The following rights (in common with the Landlord and all others now or hereafter entitled to the like rights) and subject to compliance
with the Regulations: 
 Access Ways 
 1. Ingress to and egress from the Demised Premises and the Car Parks at all times with or without vehicles over and along the Estate Road and over and along the Car Parks for ingress to and egress from
the parking spaces within the Car Parks and to make deliveries to the Demised Premises. 
 Part IV Documents referred to in
clause 2 [remainder illegible]. 
 Services 
 2. To use all drains sewers channels and watercourses and water gas and electric conduits mains pipes wires and cables or other conducting media and all or any other services now or hereafter during the
Perpetuity Period provided for the Demised Premises and laid in under or over the Estate or in under or over any other property across which the Landlord shall have rights to carry the same for the passage of surface water and sewage from and water
gas electricity and other services to and from the Demised Premises. 

  
 -7-

 (a) the Surveyor shall be appointed by the Landlord and the Tenant or in default of
agreement on such appointment by the President (or other the acting Chief Officer) for the time being of the Royal Institution of Chartered Surveyors on the written application of the Landlord or the Tenant; 

(b) the Surveyor shall invite the Landlord and the Tenant to submit to him within such time limits as he shall consider appropriate such
written representations and cross representations as to the amount of the Open Market Rent with such supporting evidence as they may respectively wish; 
 (c) the Surveyor will within two months after his appointment or within such extended period as the parties shall agree (acting reasonably) give to the Landlord and the Tenant written notice of the amount
of the Open Market Rent as determined by him and his determination shall be final and binding on the parties to this Lease; 

(d) if the Surveyor shall not have given notice of his determination within the period and in manner aforesaid or if for any reason it
becomes apparent that he will be unable to do so within such period the Landlord and the Tenant may agree upon or either of them (having first informed the other in writing) may apply for a new Surveyor to be appointed in his place (which procedure
may be repeated as many times as may be necessary) provided always that any such determination given by the Surveyor outside such time limit but prior to the appointment of a new Surveyor shall be valid and effective but if given thereafter shall be
null and void; 
 (e) the Surveyor’s fees or charges (including the costs of his appointment) shall be borne between the
Landlord and the Tenant in such proportions as the Surveyor shall determine or in the event that no determination is made equally between the Landlord and the Tenant. 
 3. In the case of determination by the Surveyor acting as an arbitrator the following provisions shall have effect: 
 (a) the Surveyor shall be appointed by the Landlord and the Tenant or in default of agreement on such appointment by the President (or other the acting Chief Officer) for the time being of the Royal
Institution of Chartered Surveyors on the written application of the Landlord or the Tenant; 
 (b) the arbitration shall be
conducted in accordance with the Arbitration Act 1996. 
 4. If the Open Market Rent has not been ascertained (by agreement or
determination) by any Relevant Review Date the Tenant shall pay to the Landlord until the date when the Open Market Rent has been ascertained as aforesaid the Basic Rent at the yearly rate payable for the period immediately preceding the Relevant
Review Date and upon the amount of the Basic Rent actually payable from the Relevant Review Date being ascertained the Tenant shall forthwith pay to the Landlord in respect of the period commencing on the Relevant Review Date and ending on the
Relevant Rent Day immediately following such ascertainment the amount by which the Open 

  
 -8-

 
Market Rent for such period exceeds the Basic Rent at the rate previously payable together with interest thereon at the Base Rate for the period commencing on the Relevant Review Date (or the
Relevant Rent Day upon which the relevant proportion of the same would have become due had the Open Market Rent been ascertained before the Relevant Review Date) and ending on the date of payment. 

5. Throughout any period during the Term that Statutory Rent Restrictions shall apply to prevent or prohibit either wholly or partially:

 (a) the operation of the above provisions for review of the Basic Rent then the Relevant Review Date or Dates shall be
postponed to take effect on the earliest date or dates thereafter upon which such review may occur and if there shall be a partial relaxation of the Statutory Rent Restrictions there shall be a further review of the Basic Rent on the earliest date
thereafter as aforesaid notwithstanding that the Basic Rent may have been increased partially on or since the original Relevant Review Date; 
 (b) the collection of any increase in the Basic Rent or any instalment or part thereof by the Landlord or the retention thereof at any time after collection then the collection of any increase or
increases in the Basic Rent shall be postponed to take effect on the earliest date or dates thereafter that such increase or increases may be collected and/or retained in whole or in part and on as many occasions as shall be required to ensure the
collection of the whole increase; 
 and until the Statutory Rent Restrictions shall be removed the Basic Rent shall be the maximum sum from
time to time permitted by the Statutory Rent Restrictions. 
 6. On each occasion that the Open Market Rent is ascertained
pursuant to this Schedule the Landlord and the Tenant shall complete a memorandum of the yearly amount of the Basic Rent payable under this Lease for the Relevant Review Period (the form of which memorandum is endorsed on this Lease and the
counterpart) and such memorandum shall be signed by or on behalf of the Landlord and Tenant respectively. 
 7. For the
avoidance of doubt it is declared that: 
 (a) the Basic Rent payable for any Review Period shall not be less than the amount of
the Basic Rent payable (or which but for Statutory Rent Restrictions or any rent cesser or rent abatement in accordance with this Lease would have been payable) for the period immediately preceding the commencement of such Review Period; 

(b) any agreement between or other memorandum in writing signed by or on behalf of the Landlord and the Tenant as to the amount of the
Open Market Rent as at any Review Date or the amount of the Basic Rent payable during any Review Period shall be valid and binding on the parties to this Lease notwithstanding the appointment of the Surveyor or any application for his appointment or
the failure in any manner to adhere to the foregoing procedures methods or timetables for review of the Basic Rent or determination of the Open Market Rent. 

  
 -9-

 THE THIRD SCHEDULE 

Tenant’s Covenants 
 Pay rents 
 1.1 To pay to the Landlord the Basic Rent and other rents
payable under this Lease at the times and in the manner as provided in this Lease without any deduction set-off or counterclaim except as aforesaid the Basic Rent and any Value Added Tax to be paid by means of a banker’s standing order or by
such other method as the Landlord may reasonably require. 
 Insurance 

1.2 To pay to the Landlord within 14 days of demand an amount equal to: 

(a) the cost incurred by the Landlord from time to time (without deduction of any agency or other commission paid or allowed to the
Landlord which the Landlord shall be entitled to retain) of insuring: 
 (i) the Demised Premises in accordance with the
provisions of paragraph 2.1 of the Fourth Schedule; 
 (ii) loss of any rent reserved by this Lease; and 

(iii) against property owner’s third party and public liabilities of the Landlord or relating to the Demised Premises including
those arising under the Defective Premises Act 1972; 
 (b) the cost incurred by the Landlord of obtaining from time to time a
professional valuation of the Demised Premises for insurance purposes and of settling any insurance claims provided that such valuations are carried out no more than once in any period of three years; 

(c) any applicable excess under any insurance policy effected by the Landlord for the purpose of this Lease in the event of any damage
to or destruction of the Demised Premises by any of the Insured Risks; 
 (d) the cost of insuring any fixtures or fittings
installed by the Tenant which have become part of the Demised Premises or any alterations to the Demised Premises of which the Tenant has given the Landlord written notice and which the Landlord has agreed to insure. 

Pay outgoings 
 2.1 To pay and discharge all existing and future rates taxes duties charges assessments impositions and outgoings whatsoever (whether parliamentary parochial local or of any other description) which are
now or may at any time hereafter be assessed charged levied or imposed or payable (a) in respect of the Demised Premises or (b) on or by any estate owner landlord tenant or occupier in aspect thereof (except (subject to paragraphs 27.4 and
28.1 of this Schedule) any tax payable by the Landlord as a direct result of the ownership of or a dealing by the Landlord with its reversionary interest in the Demised Premises or the receipt by the Landlord of the Basic Rent). 

  
 -10-

 2.2 To pay for all gas electricity and water consumed or used on or for the Demised Premises
and all standing charges and charges for meters and installation hire and maintenance in respect thereof and to observe all regulations and requirements of the relevant supply authorities and to pay for all telephone and other communication systems
serving the Demised Premises. 
 2.3 If the Demised Premises shall at any time during the Term be unoccupied for any period
during which the Tenant or any other person shall be entitled to claim or take the benefit of any relief from the payment of general rates or other outgoings and in consequence the amount of any claim to or benefit of similar relief which would
otherwise be available to the Landlord in respect of any period following the Termination of the Term if the Demised Premises were vacant shall or may be reduced or lost to pay to the Landlord on demand in respect of such period an amount equal to
the whole amount of the value to the Landlord of the claim or benefit which is not available to the Landlord and which would otherwise have been available to the Landlord in respect of the Demised Premises had the same been fully occupied throughout
the Term and left unoccupied thereafter (no account being taken of any period of actual occupation by any person after the Termination of the Term). 
 2.4 To pay on demand a fair proportion of the costs and expenses of making repairing maintaining rebuilding renewing replacing lighting insuring connecting and cleansing all Conducting Media boundary
walls fences party walls structures roads pavements open areas and other conveniences which shall at any time belong to or be used for the Demised Premises in common with other premises near or adjoining thereto the amount due in case of dispute to
be assessed by the Landlord’s Surveyor whose decision shall be final and binding on all parties except in the case of manifest error. 
 2.5 Not to agree or by default allow to be fixed the rateable value of the Demised Premises or any part thereof without the prior written consent of the Landlord such consent not to be unreasonably
withheld and to co-operate with the Landlord in any negotiations with the District Valuer or any appeal to the Court or to the Lands Tribunal in respect of the rateable value of the Demised Premises. 

Repair 

3. To keep in good and substantial repair and condition and as necessary in whole or in part rebuild replace and renew and keep clean and
properly maintained the Demised Premises (including the exterior and structure) and to replace from time to time all landlord’s fixtures fittings and appurtenances in the Demised Premises which may be or become beyond repair at any time during
the Term or at the Termination of the Term provided that there shall be excepted damage by any of the Insured Risks to the extent that the insurance of the Demised Premises effected by the Landlord has not been vitiated or prejudiced or payment of
the insurance moneys refused in whole or in part as a consequence of any act or default of the Tenant or any undertenant or their respective servants agents licensees or invitees. 

  
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 Decoration maintenance and cleaning 

4.1 As and whenever necessary and in any event as to the exterior of the Demised Premises in every third year of the Term and as to the
interior at intervals of not more than five years but not so as to require redecoration in the penultimate year of the Term and also as to both interior and exterior during the last year prior to or at the Termination of the Term to have prepared
and painted those parts of the Demised Premises usually painted with two coats at least of good quality paint and otherwise to have professionally treated or decorated all other parts of the Demised Premises requiring treatment for preservation and
protection. 
 4.2 To carry out such painting decoration or other treatment in a proper and workmanlike manner to the reasonable
satisfaction of the Landlord and in accordance with such reasonable directions in regard thereto as may from time to time be communicated to the Tenant by or on behalf of the Landlord and during the last year prior to or at the Termination of the
Term in colours tints and materials previously approved in writing by the Landlord. 
 4.3 Forthwith to replace all broken or
damaged glass in the Demised Premises with glass of the same colour tint and specification. 
 4.4 To clean all windows
(externally and internally) and window frames and other glass comprised in the Demised Premises as often as necessary but at least once in every month. 
 4.5 To procure that all electrical and mechanical Plant is properly and regularly serviced and maintained by qualified persons approved in writing by the Landlord such approval not to be unreasonably
withheld. 
 4.6 To repair maintain and renew when necessary all Car Park lights. 

Yield up 

5. To yield up the Demised Premises unto the Landlord at the Termination of the Term so painted treated repaired rebuilt cleansed
maintained amended and kept as aforesaid and otherwise as shall be in accordance with the covenants and conditions contained in or imposed by virtue of this Lease and the keys and all fixtures (other than tenant’s and trade fixtures) of every
kind in or upon the Demised Premises or which during the Term may be affixed or fastened to or upon the same and prior to the Termination of the Term to the reasonable satisfaction of the Landlord: 

5.1 in case any of the said fixtures shall be missing damaged destroyed or beyond repair forthwith to replace them with others of a
similar or more modern character and of no less value; and 
 5.2 unless released from compliance by written notice given by the
Landlord prior to the Termination of the Term to remove from the Demised Premises all tenant’s and trade fixtures and fittings and furniture and effects and signage and if any alterations have been made to the Demised Premises (whether during
the Term or during any period of occupation by the Tenant or any undertenant or their respective predecessors in title prior to the date of this Lease) to reinstate the Demised Premises to the condition in which the same were prior to the making of
such alterations; 

  
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 5.3 to make good any damage caused to the Demised Premises by any such reinstatement or
removal or the removal of any fixtures fittings furniture or effects; and 
 5.4 unless the same shall have been replaced in the
preceding two years and shall be in a reasonable condition at the Termination of the Term to replace the floor coverings laid in the office accommodation forming part of the Demised Premises with new floor coverings of the design style material and
quality as are fitted at the date hereof or as maybe otherwise approved in writing by the Landlord; 
 provided that if the
Tenant shall fail to leave the Demised Premises in all respects in the state and condition in which the same should be left the Tenant shall in addition to the proper costs of remedying the same pay to the Landlord by way of liquidated damages a sum
equal to the proportion of the rents reserved by this Lease at the rates applicable immediately prior to the Termination of the Term payable for the period from the Termination of the Term to the date on which the same shall or should have been
remedied the Landlord acting reasonably and expeditiously. 
 Permit entry for Landlord and others 

6. To permit the Landlord and others authorised by it with all necessary equipment at all times in case of emergency and otherwise at any
reasonable times or reasonable prior notice without interruption or interference to enter upon the Demised Premises for such period as shall be necessary: 
 6.1 to examine the Demised Premises to ensure that nothing has been done or omitted which constitutes or may be a breach or non-performance of any of the covenants contained in this Lease; 

6.2 to take schedules or inventories of the items to be yielded up at the Termination of the Term; 

6.3 to exercise any rights excepted and reserved to the Landlord and for any other purpose connected with the interest of the Landlord in
the Demised Premises or the disposal or charge thereof; 
 6.4 to enable the Landlord to comply with any of its covenants;

 6.5 to inspect and measure the Demised Premises and for all purposes connected with any intended or pending step under the
provisions of Part II of the Landlord and Tenant Act 1954 or the review of the Basic Rent hereunder; 
 6.6 to inspect and
execute repairs additions or alterations to or upon or maintain the Estate and any adjoining or neighbouring premises; 

  
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 6.7 to inspect maintain cleanse repair alter test renew replace lay and make connections to
the Conducting Media; 
 the person exercising such rights making good to the Tenant all physical damage to the Demised Premises thereby
occasioned. 
 Remedy wants of repair and entry for Landlord on default 

7.1 Forthwith to commence and diligently proceed to remedy repair and make good all breaches of covenant wants of repair and of decoration
and defects of which notice shall be given by the Landlord to the Tenant and which the Tenant shall be liable to remedy repair or make good and if the Tenant shall so fail to remedy repair and make good the matters prescribed in such notice within a
reasonable period to permit the Landlord and all persons authorised by the Landlord with or without equipment to enter into and stay upon the Demised Premises and remedy repair and make good the same at the expense of the Tenant (but so that any
other right or remedy of the Landlord under this Lease shall not thereby be prejudiced) and to pay on demand the costs and expenses thereof together with interest thereon at the Prescribed Rate from the respective dates of demand by the Landlord to
the date of reimbursement which amounts shall be a debt due from the Tenant to the Landlord and recoverable at the option of the Landlord by action or as rent in arrear. 
 7.2 To pay to the Landlord on demand all costs and expenses incurred by the Landlord after the Termination of the Term in repairing restoring painting or otherwise treating the Demised Premises so as to
put them into the state and condition required by the Tenant’s covenants together with interest thereon at the Prescribed Rate from the respective dates of demand by the Landlord to the date of reimbursement. 

Letting and dealing boards 
 8. To permit the Landlord and its servants and agents to enter upon the Demised Premises and affix and retain without interference in a conspicuous position (but not so as adversely to interfere with the
access of light and air to or the use and enjoyment of the Demised Premises in any material respect) notices for re-letting the same (if there is a possibility of the Term being determined) at any time during the last six months of the Term or
selling the Landlord’s interest in the Demised Premises at any time during the Term and to permit all persons with written authority from the Landlord or the Landlord’s agents at reasonable times of the day and following reasonable notice
to enter and view the Demised Premises without interruption. 
 Notices 

9.1 Immediately on becoming aware of the same by the Tenant of any notice or communication from a competent authority affecting the
Demised Premises or their to give to the Landlord a copy thereof and in any event when the Tenant first becomes aware of the service of such notice or of any circumstances likely to lead to service of such a notice to give to the Landlord full
particulars of such notice or circumstances and to make or join in making such objection or representation against in respect of the same as the Landlord may reasonably require. 

  
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 Statutory requirements 

10.1 At the expense of the Tenant to comply with all present and future Acts of Parliament relating to the Demised Premises or their use
or the employment of persons therein and to obtain the Landlord’s approval (such approval not to be unreasonably withheld) for and execute at the Tenant’s own expense any work required to be carried out in or to the Demised Premises
whether such work is required to be carried out by the owner or the occupier or any other person. 
 10.2 Not at any time to do
or omit on or about the Demised Premises any act or thing by reason of which the Landlord may under any such Acts incur or have imposed upon it or become liable to pay any levy penalty damages compensation costs charges or expenses. 

10.3 To obtain all licences permissions and consents and to execute and do all works and things and to bear and pay all expenses required
or imposed by any such Acts in respect of any works carried out by the Tenant on the Demised Premises or of any user thereof or of the employment of any persons therein. 
 Planning 
 11.1 At the expense of the Tenant to comply with the provisions
and requirements of the Planning Acts and all licences consents permissions and conditions now or hereafter existing granted or imposed thereunder or under any enactment repealed thereby so far as the same are implemented and relate to or affect the
Demised Premises or any operations works acts or things now or hereafter carried out executed done or omitted thereon or the use thereof for any purpose. 
 11.2 So often as necessary at the expense of the Tenant to obtain from the Local Planning Authority or other competent authority all licences consents and permissions required under the Planning Acts for
any works to or operations on the Demised Premises or the institution or continuance of any use thereof but so that the Tenant shall not make any application for planning permission without the previous written consent of the Landlord such consent
not to be unreasonably withheld or delayed in the case of alterations or a change of use permitted by this Lease or in respect of which the Landlord’s consent is not to be unreasonably withheld. 

11.3 Notwithstanding any consent which may be granted by the Landlord not to carry out any works or any alteration or addition to the
Demised Premises or any change of use thereof (for which a planning permission needs to be obtained) before a planning permission therefor has been produced to and approved by the Landlord (such approval not to be unreasonably withheld or delayed in
the case of alterations or a change of use permitted by this Lease or in respect of which the Landlord’s consent is not to be unreasonably withheld) provided that the Landlord may refuse to express its approval on the grounds that the period
thereof or anything contained therein or omitted therefrom in the reasonable opinion of the Landlord would be or be likely to be (whether during the Term or following the Termination of the Term prejudicial to the Landlord’s interest in the
Demised Premises or any adjoining or neighbouring land and property belonging to the Landlord. 
 11.4 Unless the Landlord shall
otherwise direct to carry out before the Termination of the Term any works stipulated to be carried out to the Demised Premises by a date subsequent to 

  
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the Termination of the Term as a condition of any planning permission which may have been granted during the Term to or implemented by the Tenant, or any person deriving title under or through
the Tenant before or during the Term. 
 11.5 In any case where permission for any development has been granted subject to
conditions the Landlord shall be entitled as a condition of giving its consent to the permitted development to require the Tenant to provide security to the Landlord satisfactory to the Landlord for the compliance with such conditions and the
development shall not be commenced or the use instituted until such security shall have been provided to the satisfaction of the Landlord. 
 11.6 Not to do any thing on or with reference to the Demised Premises which may be grounds for or cause or lead to the compulsory acquisition thereof. 

11.7 Not to serve any purchase notice under the Planning Acts requiring any authority to purchase the interest of the Tenant in the
Demised Premises. 
 11.8 To produce on demand to the Landlord or as directed by it to any third party all such plans documents
and other evidence as the Landlord may reasonably require in order to satisfy itself that the provisions of the covenants contained in paragraphs 10 and 11 of this Schedule have been complied with. 

Alterations 
 12.1 Not to make any alterations or additions in or to the Demised Premises except (with the prior written consent of the Landlord which shall not be unreasonably withheld): 

(a) internal non-structural alterations or additions not involving any cutting maiming altering or injuring the Demised Premises; and

 (b) alterations required to comply with the provisions of paragraphs 10 and 11 of this Schedule; 

provided that it may be a condition of any such consent that the Tenant shall enter into such covenants with the Landlord with regard to the execution and
reinstatement of the works in such form as the Landlord may reasonably require. 
 12.2 Not to remove any fixtures (of whatever
kind) and fittings comprised in the Demised Premises except the Tenant’s trade fittings which do not on installation become Landlord’s fixtures or fittings unless the Tenant shall on such removal replace the same with fixtures and/or
fittings (as the case may be) of equal value and utility. 
 12.3 Not to make any alterations or additions to the electrical gas
water or telecommunications installations of the Demised Premises without the prior written consent of the Landlord (such consent not to be unreasonably withheld) and to procure that all such alterations or additions are carried out by suitably
qualified and skilled persons in accordance with regulations and standards of the relevant supply authority. 

  
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 12.4 To carry out and complete the work involved in all alterations to the Demised Premises
in accordance with the terms of all consents with materials of suitable good quality in a proper and workmanlike manner and to the reasonable satisfaction of the Landlord. 
 12.5 On completion of the installation of anything which shall become part of the Demised Premises forthwith to give to the Landlord written notice of the same stating the full cost of reinstatement
thereof. 
 12.6 Not to erect or affix to the exterior of the Demised Premises any aerials posts wires fittings or works for
telegraphic communication or other Plant nor to make any aperture in any wall nor to affix any machinery to the Demised Premises without the written consent of the Landlord such consent not to be unreasonably withheld or delayed. 

12.7 Not to interfere with any Conducting Media which now are or may hereafter be in or through the Demised Premises nor cause access
thereto to be or become more difficult than the same now is nor to cause the Conducting Media serving the Demised Premises to be overloaded or subjected to use in excess of that for which the same were designed or restrict the level of supply of
water air gas electricity or other services to other premises. 
 12.8 Where the CDM Regulations apply to any alterations
additions or other works to the Demised Premises: 
 (a) prior to commencement of any such works to make and serve a declaration
to the Health and Safety Executive to the effect that the Tenant shall act as the sole client in respect of such works for the purpose of the CDM Regulations (and supply a copy of the same to the Landlord); 

(b) to act as the sole client in respect of such works for the purposes of the CDM Regulations and to comply with all the obligations
imposed upon the client by the CDM Regulations; 
 (c) to procure that the Tenant’s planning supervisor (appointed from
time to time under the CDM Regulations) and the Tenant’s contractors and designers shall comply in all respects with the CDM Regulations; 
 (d) on completion of such works to supply to the Landlord’s Surveyor for retention by the Landlord a full and complete copy of the Health and Safety File for the works prepared in accordance with the
CDM Regulations and any code of practice or other guidance issued by any competent authority (the Health and Safety File) together with a royalty free irrevocable and non-exclusive copyright licence or licences to use and reproduce the
same for any purposes relating to the Demised Premises or any part thereof (which licences shall carry the right to grant sub-licences and shall be transferable to third parties). 

12.9 To produce and keep all Health and Safety Files relating to the Demised Premises in accordance with the CDM Regulations and
up-to-date and in good order and to supply on demand to the Landlord copies of the same together with a royalty free irrevocable and non-exclusive copyright licence or licences to use and reproduce the same for any purposes relating to

  
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the Demised Premises or any part thereof (which licences shall carry the right to grant sub-licences and shall be transferable to third parties) and at the Termination of the Term to forthwith
deliver to the Landlord all such Health and Safely Files. 
 12.10 If the Tenant or any other occupier of the Demised Premises
shall carry out any building work alteration change of use or any other development on or to the Demised Premises to indemnify the landlord against all liability whether immediate or consequential for any tax levy imposition or charge of whatsoever
nature for which the Landlord may be or become liable as a result of the same and also against any further liability to tax flowing from this indemnity or any payment pursuant to it and to repay to the Landlord on demand the amount thereof together
with interest at the Prescribed Rate from the date of payment by the Landlord to the date of such repayment all which sums in default of payment shall be recoverable at the option of the Landlord by action or as rent in arrear. 

Signs 

13.1 Not to affix to or display on the Demised Premises any sign boarding poster placard blind or advertisement which shall be visible
from the outside of the Demised Premises except with the prior written consent of the Landlord (such consent not to be unreasonably withheld or delayed) such means of identification and other signs bearing the corporate or trading name of the Tenant
and its corporate logo or any other permitted occupier of the Demised Premises and the nature of its business as shall be reasonably necessary in connection with the use and occupation of the Demised Premises for the time being the number position
size lettering design and materials of which shall first have been approved in writing by the Landlord such approval not to be unreasonably withheld. 
 Dangerous and deleterious substances 
 14. Not to keep on the Demised
Premises any substance of a dangerous corrosive combustible explosive radio-active volatile unstable or offensive nature or which might in any way damage the Demised Premises or the Conducting Media serving the same (except with the prior written
consent of the Landlord and after giving due notice to any insurers of the Demised Premises and subject to any requirements imposed by them (with which the Tenant shall comply) small quantities of inflammable materials used in connection with the
business carried on in the Demised Premises) or the keeping or use of which may contravene any Acts of Parliament nor to stop up or obstruct in any way or permit oil or grease or other deleterious or other substances that might cause damage to
health or the environment to enter by any means the Conducting Media serving the Demised Premises or any adjoining or neighbouring premises and in the event of such damage or obstruction forthwith to remedy the same and make good all damage to the
entire satisfaction of the Landlord. 
 Fire precautions 

15. At the expense of the Tenant to comply with all requirements and recommendations (whether legally enforceable or not) from time to
time of the appropriate authority in relation to fire precautions affecting the Demised Premises and to keep and maintain sufficient fire fighting and 

  
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extinguishing apparatus in and about the Demised Premises installed in compliance with such requirements and recommendations and with any legal requirements and open to inspection and maintained
to the reasonable satisfaction of the Landlord and not to obstruct the access to or means of working of the same. 
 Securing
unoccupied premises 
 16. Throughout any period during which the Demised Premises are closed for business or are unoccupied
(whether or not furnished) to keep the Demised Premises fully secured and to provide such caretaking and other arrangements as may be necessary to give the Demised Premises reasonable protection from vandalism theft or unlawful occupation and to pay
any additional insurance premiums arising therefrom. 
 Loading 

17. Not to impose on any part of the floors roof roof trusses ceilings or the structure of the Demised Premises any load or weight greater
than that which the same are designed or constructed to bear with due margin for safety nor by machinery or otherwise to cause or permit any undue vibration to or nuisance by noise or otherwise in the Demised Premises. 

Use 

18.1 Not to use the Demised Premises or any part thereof: 
 (a) for residential purposes or as sleeping accommodation; 
 (b) for any noisy
noxious offensive dangerous illegal or immoral purpose or for any auction political or public meeting entertainment or exhibition or for gambling; 
 (c) in a manner which would cause noxious polluting or contaminative substances to be spilled leaked emitted or deposited on in under or from the Demised Premises and to clean up and carry out any other
necessary remediation works arising from any such matter; 
 (d) in any way or for any purpose which may be an annoyance
nuisance damage disturbance or inconvenience to or prejudice the Landlord or the Estate or the owners or occupiers of any premises adjoining or near to the Demised Premises or the neighbourhood. 

18.2 Without prejudice to the generality of the foregoing not to use the Demised Premises otherwise than for a use or uses falling within
Class B1 of the Schedule to the Town and Country Planning (Use Classes) Order 1987 (but not including in this pretext any Order amending or replacing the same). 
 Insurers’ requirements 
 19.1 To carry out at the Tenant’s expense
such works and other precautions as may be required or recommended by any insurers of the Demised Premises in accordance with their directions and not to carry on upon the Demised Premises or any adjoining property controlled by

  
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the Tenant any trade business or activity or do or omit any act or thing on or in relation to the Demised Premises which may make void or voidable the policy of insurance of the Demised Premises
or of any adjoining or neighbouring premises belonging to the Landlord or render any increased or extra premium payable in such insurance. 
 19.2 To pay forthwith within 14 days of demand to the Landlord the whole of the amount (including professional and other fees and costs) which should have been recoverable under any insurance of the
Demised Premises or any adjoining or neighbouring premises of the Landlord rendered irrecoverable as a consequence of any act or default of the Tenant or any undertenant or their respective servants agents licensees or visitors. 

Notify damage by Insured Risks 
 20.1 To give immediate written notice to the Landlord on the Tenant becoming aware of any destruction of or damage to the Demised Premises stating whether and to what extent the same was brought about
directly or indirectly by any of the Insured Risks. 
 Prevent encroachments 

21.1 Not knowingly to permit any owner of any property adjoining or near the Demised Premises to acquire any rights of way light or air or
other privilege or easement or make any encroachment over against out of or upon the Demised Premises nor to give any acknowledgement that the Demised Premises enjoy any such rights by the consent of any third party and as soon as the Tenant shall
become aware thereof or of any act or thing which might result in the acquisition or making of any of the same to give immediate written notice thereof to the Landlord and to take such stops or action as may be reasonably required by the Landlord
for preventing any of the same from being acquired or made. 
 21.2 Not without obtaining the prior written consent of the
Landlord to stop up darken or obscure any windows or lights belonging to the Demised Premises. 
 Alienation 

Charges 

22.1 Not to charge the Demised Premises as a whole or in part. 
 Declarations of Trust 
 22.2 Not to hold the whole or any part of the
Demised Premises or this Lease on trust for another. 
 Assignments 

22.3 Not to assign the Demised Premises or this Lease in any part less than the whole. 

  
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 22.4 Not to assign the whole of the Demised Premises: 

(a) (if the Landlord shall reasonably so require) without obtaining from a guarantor or guarantors reasonably acceptable to the Landlord
a full guarantee of the covenants of the proposed assignee by deed in such form as shall be reasonably required by the Landlord; nor 
 (b) if the proposed assignee is a company which is in the same group of companies (within the meaning of section 42 of the Landlord and Tenant Act 1954) as the Tenant; nor 

(c) unless the Tenant has paid or provided security reasonably acceptable to the Landlord for all rents and other sums for which the
Tenant is or will remain under this Lease prior to the date of the assignment; nor 
 (d) if in the reasonable opinion of the
Landlord the proposed assignee is not of sufficient financial standing to enable it to pay the rents reserved from time to time by this Lease and otherwise perform the covenants on the part of the contained in this Lease; nor 

(e) unless (where the assignee or its guarantor (other than the guarantor required to provide an Authorised Guarantee Agreement) is a
company registered in England and Wales or in Scotland) the Tenant has produced to the Landlord audited accounts for either the assignee or its guarantor showing that for each of the three financial years immediately preceding the Tenant’s
application for consent to the proposed assignment: 
 (i) the net profits on ordinary activities after taxation of the assignee
or such guarantor (as the case may be) exceed an amount equal to three times the sum of the Basic Rent for those years; and 

(ii) the assignee’s or such guarantor’s (as the case may be) net current assets as revealed by the balance sheets in those
audited accounts are not less than three times the sum of the Basic Rent for those years; 
 Provided that if the Basic Rent is
in the course of review under this Lease then for the purposes of this paragraph the Basic Rent shall be deemed to be the amount stated in writing by the Landlord to the Tenant as being the Landlord’s reasonable opinion of the Open Market Rent
of the Demised Premises as at the Relevant Review Date; 
 And the assignee (or such guarantor (as the case may be)) shall have
produced to the Landlord a certificate signed by a director of the assignee (or of the guarantor (as the case may be)) that there has been no material adverse change in the financial performance and status of the assignee (or guarantor) since the
date of the most recent such audited accounts; 
 And in this paragraph audited accounts means accounts prepared
on a consistent basis and the historical convention and complying in all respects with the requirements of all relevant laws then in force and with all applicable accounting standards and generally accepted accounting principles of the United
Kingdom then in force and certified by the auditors of the assignee or guarantor (as the case may be) as giving a true and fair view of the state of affairs of the assignee or guarantor (as the case may be) and its profits for the period under
review; nor 

  
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 (f) where the proposed assignee is not resident in the United Kingdom of Great Britain and
Northern Ireland. 
 22.5 Not to assign or transfer the whole of the Demised Premises otherwise than in accordance with nor
without in each and every such case first complying with the foregoing provisions and subject to having complied with them and subject to paragraph 22.6 of this Schedule not without obtaining the prior written consent of the Landlord which
consent shall not be unreasonably withheld. 
 22.6 The Landlord and the Tenant agree that for the purposes of section 19(1A) of
the Landlord and Tenant Act 1927 the Landlord may give its consent to an assignment subject to conditions that: 
 (a) the
Tenant by deed enters into an Authorised Guarantee Agreement; 
 (b) any guarantor whose guarantee is subsisting immediately
before the assignment enters into a guarantee with the Landlord in such form as the Landlord may reasonably require of the Tenant’s obligations under the Authorised Guarantee Agreement; 

(c) the assignment shall not take place until any requisite consent of any superior landlord or mortgagee has been obtained and any
lawfully imposed conditions of such consent satisfied; 
 (d) the Tenant obtains from the assignee a covenant by deed with the
Landlord to pay the Basic Rent and all other rents reserved by this Lease and to observe and perform all the covenants on the part of the Tenant and the conditions contained in this Lease from the date of the deed of transfer or deed of assignment
of the Demised Premises until such time as the assignee shall be released pursuant to section 5 of the Landlord and Tenant (Covenants) Act 1995. 
 Underletting 
 22.7 Not to underlet any part or parts of the Demised
Premises so as to permit more than four underlettings or five occupancies of the Demised Premises at any one time (the Tenant counting as one occupancy). 
 22.8 Not to underlet the Demised Premises or any part thereof: 
 (a) at a rent
payable more than two quarters in advance; 
 (b) other than on terms which shall contain provisions for review of the rent
thereby reserved at such intervals no less frequent than shall be normal in the market for similar property at the time of the grant thereof having regard to the terms of the proposed underlease; 

  
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 (c) at a rent less than the open market rental reasonably obtainable in the open market
without fine premium or other consideration for the whole or part of the Demised Premises so underlet; 
 (d) unless the
underlessee shall be prohibited from sub-underletting the whole or any part of the premises so underlet; 
 (e) other than on
terms which shall incorporate such provisions as are necessary to ensure that any such underlease is consistent with and in all respects no less than the provisions of this Lease; 

(f) unless the form of underlease is first approved by the Landlord (such approval not to be unreasonably withheld or delayed);

 (g) unless the property to be underlet falls wholly within the Demised Premises as comprised within this Lease and does not
include any property or any right over any property which is not demised by this Lease. 
 22.9 (a) Not to underlet the whole of
the Demised Premises at a rent less than the Basic Rent for the time being payable under this Lease unless the Landlord shall otherwise agree (such agreement not to be unreasonably withheld if the proposed rent is the open market rental reasonably
available in the open market without fine premium or other consideration); 
 (b) Not to underlet part only of the Demised
Premises at u rent less than such proportion of the Basic Rent for the time being payable under this Lease as the net lettable floor area of the part of the Demised Premises to be underlet bears to the net lettable floor area of the whole of the
Demised Premises (such proportion in case of dispute to be conclusively determined at the expense of the Tenant by the Landlord’s Surveyor) unless the Landlord shall otherwise agree (such agreement not to be unreasonably withheld if the
proposed rent is the best rack rental reasonably available in the open market without fine premium or other consideration). 

22.10 Not to underlet the Demised Premises without obtaining from the underlessee: 

(a) a covenant by deed with the Landlord that the underlessee will throughout the term granted by the underlease: 

(i) (in the case of an underletting of the whole of the Demised Premises) observe and perform all the covenants and conditions on the
part of the tenant contained in this Lease (other than the covenant to pay the Basic Rent) and the underlease; 
 (ii) (in the
case of an underletting of part only of the Demised Premises) observe and perform all the covenants and conditions on the part of the tenant contained in this Lease (other than the covenant to pay the Basic Rent) so far as the same relate to the
underlet premises and in the underlease; 
 (iii) not assign part only of the premises demised by the underlease; 

  
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 (iv) not sub-let or part with possession or occupation of the whole or any part of the
premises demised by the underlease; 
 (v) not assign the whole of the premises demised by the underlease except in a manner and
on terms permitted or required by this paragraph 22 and by the terms of the underlease being terms in accordance with the provisions of this paragraph 22 nor without first obtaining the written consent of the Landlord under this Lease
which consent shall (subject to compliance with such requirements) not be unreasonably withheld; 
 (b) a covenant from the
underlessee in the underlease (which covenant the Tenant shall enforce) in the terms of paragraphs 22.10(a)(iii) (iv) and (v) of this Schedule; 
 (c) an agreement in the underlease between the underlessor and the underlessee in the same terms as paragraphs 22.3 22.4 22.5 and 22.6 of this Schedule but with respect to the premises demised by and the
basic and other rents reserved by the underlease. 
 22.11 Not to underlet the whole or any part of the Demised Premises without
ensuring that the underlease shall contain an agreement authorised by an Order of a court of competent jurisdiction excluding in relation to the tenancy to be created by such underlease the provisions of sections 24 to 28 inclusive of the Landlord
and Tenant Act 1954. 
 22.12 Not to underlet the whole or any part of the Demised Premises otherwise than in accordance with
nor without in each and every such case first complying with the foregoing provisions and subject thereto not without obtaining the prior written consent of the Landlord which consent shall not be unreasonably withheld. 

22.13 Not at any time during the Term to be a party or privy to an agreement or arrangement for commutation in whole or in part of the
rent reserved by any underlease in consideration of the payment of a lump sum or any other consideration. 
 22.14 Not upon a
review of the rent reserved by any underlease (which the Tenant shall procure is reviewed in accordance with its terms): 
 (a)
to agree the amount of any such reviewed rent; or 
 (b) to make any representations to any third party appointed to determine
such reviewed rent; 
 without (in each case) the prior written consent of the Landlord (such consent not to be unreasonably withheld or
delayed). 
 22.15 Not at any time expressly or by implication to waive any breach of covenant or obligation by any underlessee
or any assignee of any underlease nor vary the terms of any permitted underlease nor accept a surrender of nor forfeit any underlease in any such case without the prior written consent of the Landlord (such consent not to be unreasonably withheld or
delayed). 

  
 -24-

 22.16 Not to take any step (whether before or after the granting of any underlease) which
would prevent the Landlord exercising any statutory right which the Landlord may at any time have in respect of any underlease whether in relation to the power to collect underlease rents or otherwise. 

Sharing Occupation 
 22.17 Not to part with or share possession or occupation of the Demised Premises or any part thereof other than in a manner permitted by this paragraph 22. 

22.18 Subject to the Tenant giving not less than 14 days’ prior written notice to the Landlord of the identity of the company and of
the part of the Demised Premises affected (if less than the whole) the Tenant may share occupation of the Demised Premises or the relevant part thereof with a company within the same group of companies (within the meaning of section 42 of the
Landlord and Tenant Act 1954) as the Tenant: 
 (a) for so long only as such company shall remain within such group; 

(b) on terms whereby such company is not given exclusive occupation of the Demised Premises or any part thereof and no relationship of
landlord and tenant is created; and 
 (c) provided that any rent or other payment received by the Landlord from any such
company shall be deemed to have been paid by such company as agent for the Tenant. 
 Disclosure of Information

 22.19 Upon every application for consent required by this paragraph 22 to disclose to the Landlord such information
including as to the terms proposed as the Landlord may reasonably require. 
 Register devolutions 

23. Within one month of every assignment transfer underlease or charge affecting the Demised Premises or any devolution of the estate of
the Tenant therein or this Lease or of any derivative interest and every surrender thereof or the commencement or termination of any sharing of the Demised Premises or part thereof to give notice in writing to the Landlord and to provide the
Landlord with a certified copy of such assignment transfer underlease or charge or the Probate of the Will or Letters of Administration or other instrument document or evidence of such devolution or surrender or sharing and to pay to the Landlord a
reasonable registration fee of not less than twenty-five pounds plus Value Added Tax thereon. 
 Compensation 

24. To pay or procure the payment to the Landlord of the due and proper proportion of any compensation paid to the Tenant or payable as a
consequence of any notice served on or application refused by any governmental or local authority in respect of the Demised Premises or the use thereof. 

  
 -25-

 Defective premises 

25. Forthwith upon becoming aware of the same to give notice in writing to the Landlord of any defect in the Demised Premises which would
or might give rise to an obligation on the Landlord to do or refrain from doing any act or thing in order to comply with the duty of care imposed on the Landlord pursuant to the Defective Premises Act 1972 and at all times to display and maintain
all notices (including the wording thereof) which the Landlord may from time to time require to be displayed at the Demised Premises. 
 Indemnify Landlord 
 26. To pay and make good to the Landlord and to keep
the Landlord fully and effectually indemnified against all loss costs claims demands liability damage actions and expenses whatsoever incurred or sustained by the Landlord directly or indirectly as a consequence of or in connection with any breach
non-performance or non-observance of any of the covenants and conditions on the part of the Tenant contained or implied in this Lease or the use of the Demised Premises by the Tenant or any permitted occupier or their respective servants agents
licensees or visitors or the exercise of any rights granted by this Lease and such indemnity shall be without prejudice to any rights or remedies of the Landlord under this Lease in respect of any breach non-performance or non-observance of any
covenant or condition. 
 Costs 
 27. To pay within 14 days of demand: 
 27.1 all reasonable and proper legal costs
and other costs and professional fees and disbursements incurred by the Landlord in connection with or incidental to: 
 (a) any
application made by the Tenant for a consent licence or approval (whether the same be granted withdrawn or lawfully refused or proffered subject to any lawful qualification or condition); and 

(b) the negotiation and preparation of any Authorised Guarantee Agreement; and 

(c) the consideration of any proposal (including plans and specifications) for and the inspection supervision and approval or otherwise
of any works on the Demised Premises or any change in the use thereof; 
 27.2 all expenses including solicitors’ costs and
surveyors’ fees incurred by the Landlord in contemplation of or incidental to or arising from the preparation and service of: 
 (a) a notice under section 146 of the Law of Property Act 1925 or of proceedings under sections 146 and 147 of that Act notwithstanding that in any such case forfeiture is avoided otherwise than by relief
granted by the court; and 

  
 -26-

 (b) any notice whether served on the Tenant or any other person required to be served by
virtue of the Landlord and Tenant (Covenants) Act 1995 in connection with any breach of the covenants or conditions on the part of the Tenant contained in this Lease or otherwise pursuant to the Landlord and Tenant (Covenants) Act 1995; 

27.3 all proper expenses including solicitors’ costs surveyors’ fees and bailiffs’ costs and commission incurred by the
Landlord in connection with or incidental to any breach non-performance or non-observance of any of the covenants or conditions on the part of the Tenant contained in this Lease or in contemplation of the enforcement thereof including the service of
all notices relating to and schedules of dilapidations and wants of repair or decoration to the Demised Premises and any negotiations in respect thereof and whether served during the Term or after the Termination of the Term (but relating in all
cases to such wants of repair or decoration that accrued not later than the Termination of the Term) or the levy of distress; 

27.4 all Value Added Tax incurred by the Landlord on or included in any amount reimbursable by the Tenant to the Landlord under this
Lease to the extent not recoverable by the Landlord as an input. 
 Value Added Tax 

28.1 Where any payment due under or by virtue of this Lease is a payment on which Value Added Tax is or may be chargeable (by reason of an
election of the Landlord or otherwise) to pay the amount of such tax in respect of the payment at the rate applicable to that payment. 
 28.2 To ensure that at all times the use of the Demised Premises is for a purpose or purposes such that it will not result in any election by the Landlord to waive exemption for Value Added Tax being
disapplied or restricted. 
 Comply with title matters 

29. Not to breach any of the covenants conditions and provisions affecting the Demised Premises including insofar as the same are still
subsisting and capable of being enforced those contained or referred to in the Property and Charges Register of title BK219351 and in the documents referred to in Part V of the First Schedule and to keep the Landlord fully and effectually
indemnified from and against all costs claims demands and liabilities arising from any future breach non-performance or non-observance thereof. 
 Notify matters affecting Guarantor’s covenants 
 30. To give to the
Landlord such advance written notice as may be reasonably practicable of any circumstances or occurrence which may tend materially to diminish the value to the Landlord of the covenants on the part of any guarantor contained in this Lease in order
to enable suitable further arrangements satisfactory to the Landlord to be agreed and made for reviewing without delay or immediately restoring the status quo or its equivalent and to make or cause such arrangements including without prejudice to
the generality of the foregoing the provision of further or substituted guarantors acceptable to the Landlord to be made in such manner as may reasonably be required by the Landlord. 

  
 -27-

 Use of common areas 

31.1 Not at any time during the Term to cause or permit any damage to or obstruction to the Estate Road or Car Parks and not to park
vehicles on the Estate Road. 
 31.2 Not by any act or default to cause or permit the drains pipes conduits ducts cables wires
and other conducting media conveying services to the Demised Premises or those within the Demised Premises to be overloaded or subjected to use in excess of that for which the same were designed or which may restrict the level of supply of water gas
or electricity to other parts of the Estate. 
 31.3 Not except in any emergency to carry out or permit to be carried out in the
Car Parks or on the Estate Roads any repairs to or replacement of parts in or overhauls to or test of any vehicle. 
 Refuse
regulation 
 32. To retain all trade and other refuse upon the Demised Premises in a neat and tidy condition and in proper
receptacles and to make adequate arrangements for the frequent removal of such refuse from the Demised Premises. 

Regulations 
 33. To observe and conform to the Regulations and use all reasonable endeavours to procure that all persons resorting to the Demised Premises observe and conform to the same. 

THE FOURTH SCHEDULE 
 Landlord’s Covenants 
 Quiet enjoyment 

1.1 The Tenant paying the Basic Rent and other rents and charges payable under this Lease and performing and observing the several
covenants and stipulations on the part of the Tenant contained in this Lease may peaceably and quietly hold and enjoy the Demised Premises during the Term without any lawful interruption or disturbance from or by the Landlord or any person
rightfully claiming under or in trust for it. 
 Insurance 

2.1 At all times during the Term to insure (unless such insurance shall be prevented or vitiated by the act or default of the Tenant or
any undertenant or their respective servants agents licensees or visitors): 

  
 -28-

 (a) the Demised Premises other than plate and other fixed glass for such amount as the
Landlord shall from time to time be advised by the Landlord’s Surveyor as being equal to the full cost of reinstatement thereof (or such greater amount as the Tenant may reasonably request in writing from time to time) together with
architects’ and other professional fees costs of demolition and site clearance (due allowance being made for possible increases in building costs) and any work which may be required by virtue of any Act of Parliament against loss or damage by
the Insured Risks appropriate thereto; and 
 loss of Basic Rent for five years or such longer period as the Landlord shall reasonably determine
at the yearly rate payable under this Lease and for such additional amounts in respect of rent prospectively payable on review as the Landlord shall reasonably require; 
 [Illegible] insurance office or underwriters of repute upon the usual terms and conditions [illegible] by them for such insurance and through such agency as the Landlord shall [illegible] Provided Always
that the Landlord shall not be under any obligation to insure fixtures or fittings installed by the Tenant which have become part of the Demised Premises or any alterations to the Demised Premises unless the Tenant shall have [illegible] to the
Landlord written notice of the same and of the full cost of reinstatement thereof and the Landlord has agreed with the Tenant to effect the insurance thereof. 
 In case of damage to or destruction of the Demised Premises by any of the [illegible] Risks and save to the extent that the policy of insurance shall have been [illegible] or payment of the policy moneys
refused as a consequence of any act or fault of the Tenant or of any undertenant or their respective servants agents licensees or visitors and subject to receipt of all insurance moneys to make application [illegible] necessary consents and
approvals and forthwith to expend all moneys received [illegible] of such insurance (other than in respect of loss of any rent reserved by this [illegible]) in rebuilding reinstating and making good (as the case may be) the Demised Premises with all
reasonable speed when it is lawful so to do (except fixtures and [illegible] therein in respect of which the Tenant has not given written notice of the installation thereof as herein provided or which the Landlord has not agreed to insure)
[illegible] up any deficiency from the Landlord’s own funds and in case of rebuilding or substantial reinstatement this covenant by the Landlord shall be satisfied if the Landlord provides in the premises so rebuilt or reinstated accommodation
as convenient and commodious as is reasonably practicable but not necessarily identical to the Demised Premises as the same existed prior to such damage or destruction. 
 Repair of Services 
 Subject to compliance by the Tenant with paragraph 2.4
of the Third Schedule to repair replace renew and clean in a good and workmanlike manner the Conducting [illegible] in and under the Estate until they are taken over by the Local Authority or appropriate statutory undertaking. 

Repair of Estate Road 
 Subject to the payment by the Tenant of the Road Rent to keep repaired maintained cleansed and when necessary resurfaced rebuilt and renewed the Estate Road. 

  
 -29-

 Repair of Landscaped Areas and Car Parks 

Subject to the payment by the Tenant of the Landscaped Areas and Car Parks Tenant to keep the Landscaped Areas and the Car Parks well
cultivated and tended (as appropriate) and clean and tidy and as and when necessary to repair maintain resurface [illegible] out replant rebuild renew and repair the same. 
 THE FIFTH SCHEDULE 
 Provisos Agreements and Declarations 

Forfeiture 
 1. This Lease is made on the express condition that if and whenever: 
 (a) the
Basic Rent or any other rents and charges reserved or made payable under this Lease or any part thereof respectively shall be unpaid for twenty-one days after becoming due (whether formally or legally demanded or not); 

(b) there shall be a breach or non-performance or non-observance of any of the covenants or agreements on the part of the Tenant or
stipulations or conditions contained in this Lease imposed on the Tenant; 
 (c) the Tenant or any person who shall from time
to time have guaranteed to the Landlord the performance of the covenants on the part of the Tenant and conditions imposed on it under this Lease being a company shall go into liquidation (other than a voluntary liquidation of a solvent company for
the purpose of amalgamation or reconstruction) or have a winding-up petition or petition for an administration order made against it or have a winding-up or administration order made against it or be unable to pay its debts within the meaning of
section 123 of the Insolvency Act 1986 or shall enter into a composition with its creditors or a scheme of arrangement of its affairs or have an administrator or an administrative receiver or a receiver or manager appointed over all or any part of
its undertaking or assets or being an individual shall have a bankruptcy order or an interim order made against him or enter into a composition with his creditors or scheme of arrangement of his affairs or have an interim receiver appointed in
respect of his property; 
 (d) the Tenant in any case shall suffer any distress or execution to be levied on the Demised
Premises or their contents; 
 (e) any proceedings or events are instituted or occur outside the jurisdiction of the courts of
England which have an analogous effect to any referred to in this paragraph; 
 then and in any such case the Landlord or its agents may at any
time thereafter and notwithstanding the waiver or implied waiver of any previous right of re-entry arising under this Lease re-enter upon the Demised Premises or any part of them in the name of the whole whereupon the Term shall absolutely cease and
determine but without prejudice to any rights or remedies which may then have 

  
 -30-

 
accrued to the Landlord in respect of arrears of rent or other breach or non-performance or non-observance of any condition covenant or agreement on the part of the Tenant contained in this Lease
or otherwise. 
 Notices 
 2.1 All notices (other than any notice to be served pursuant to sections 8 10 or 17 of the Landlord and Tenant (Covenants) Act 1995) to be given under this Lease shall be in writing and section 196 of the
Law of Properly Act 1925 as amended by the Recorded Delivery Service Act 1962 shall apply to the service of all such notices and in case of any notice to be served on the Tenant such notice shall also be duly served if left at the Demised Premises
or sent to the last known address of the Tenant. 
 2.2 Notices in connection with this Lease to be served pursuant to sections
8 10 or 17 of the Landlord and Tenant (Covenants) Act 1995 shall be served in accordance with that Act and consequently section 23 of the Landlord and Tenant Act 1927 shall apply to such notices. 

Suspension of rent 
 3.1 If during the Term the Demised Premises shall be destroyed or so damaged by any of the Insured Risks as to be unfit for occupation and use then (provided the Tenant shall have duly carried out its
obligations under clause 2.2 of this Lease and the insurance of the Demised Premises or for loss of any rent reserved by this Lease shall not have been vitiated or payment of the policy moneys refused in whole or in part as a consequence of any act
or default of the Tenant or any undertenant or their respective servants agents licensees or visitors and subject to the payment by the Tenant to the Landlord of an amount equal to any applicable excess under the relevant policy of insurance) the
Basic Rent or a fair and just proportion thereof according to the nature and extent of the damage shall be suspended as from the date of such destruction or damage until the period for which the Landlord has insured loss of Basic Rent for the
Demised Premises has expired or until the Demised Premises have been rebuilt or reinstated (whichever is the shorter period) and any dispute as to the extent proportion or period of such suspension shall be determined by a single arbitrator to be
appointed by the Landlord and the Tenant or (if they cannot agree on such appointment) by the President or other the acting chief officer for the time being of the Royal Institution of Chartered Surveyors in accordance with the Arbitration Act 1996.

 3.2 The Landlord shall have the right at any time within the three months following the destruction of the Demised Premises
(or such longer period as shall be agreed in writing between the Landlord and Tenant before the expiry of such period) and suspension of rent or a proportion thereof determined under the above provision by notice in writing served on the Tenant to
determine the Term and upon service of such notice this Lease shall absolutely determine but such determination will take place without prejudice to any rights then subsisting under this Lease between the parties which shall include but without
prejudice to the generality of the foregoing any rights of the Landlord to unpaid rent or under the covenant to pay to the Landlord as required by paragraph 6 of this Schedule the proceeds of any insurance effected by the Tenant or the other
covenants by the Tenant and the conditions herein contained and any rights of the Tenant to the return of a proportionate part of the rental payment outstanding at the time of the suspension of rent as above. 

  
 -31-

 Determination on destruction 

4. If at the expiration of three years calculated from the date upon which the Demised Premises shall have been destroyed or so damaged by
any of the Insured Risks as to render them unfit for occupation and use (or such longer period as shall be agreed in writing between the Landlord and the Tenant before the expiry of such period) the Landlord shall have been unable to obtain all
necessary consents and approvals for the rebuilding replacement and/or reinstatement of the Demised Premises then (unless otherwise agreed in writing between the Landlord and the Tenant prior to the expiration of such period) this Lease shall
determine on written notice by either party to the other except (in the case of determination by the Tenant) if the insurance of the Demised Premises has been vitiated or prejudiced by or payment of the policy moneys refused in whole or in part as a
consequence of any act or default of the Tenant or any undertenant or their respective servants agents licensees or visitors Provided always that such determination will take place without prejudice to any and all rights then subsisting between the
parties to this Lease. 
 Landlord to have insurance moneys on frustration 

5. If this Lease shall determine under the provisions of paragraph 3.2 or 4 of this Schedule or the Landlord shall not have completed
the rebuilding replacement or reinstatement of the Demised Premises following destruction or damage by any of the Insured Risks at the Termination of the Term then and in either such case all moneys payable or to become payable under any insurance
effected pursuant to the Landlord’s covenant in this Lease in that respect shall be paid to the Landlord for its own use and benefit. 
 Double insurances 
 6. If at any time the Tenant is entitled to the benefit
of any insurance of the Demised Premises which shall cause the Landlord’s insurers to refuse to make payment in full then the Tenant shall pay or procure that there be paid to the Landlord for its own use and benefit all moneys received or to
be received by virtue of such insurance. 
 Interest on unpaid rents and other moneys 

7. If the Basic Rent and any Value Added Tax payable thereon shall not be paid to the Landlord within seven days of the Relevant Rent Day
(whether or not demanded) or any other rents or amounts payable by the Tenant to the Landlord under this Lease shall not be paid within seven days of the date of demand or other due date the Tenant shall pay to the Landlord with any such sums (but
without prejudice to any other rights or remedies of the Landlord) interest thereon at the Prescribed Rate calculated on a day-to-day basis from the date on which the same became due and payable down to the date of payment by the Tenant. 

  
 -32-

 Non-acquisition of easements 

8. The Tenant shall not by implication of law or otherwise be entitled to any estate or any right privilege or easement (except as
expressly granted by this Lease) nor shall the Tenant by virtue or in respect of the Demised Premises or this Lease be deemed to have acquired or to be entitled nor shall it during the Term acquire or become entitled by length of enjoyment
prescription or any other means to any such estate right privilege or easement. 
 Refusal of rent when breach exists

 9. If the Landlord shall refuse to accept the Basic Rent or any other rents or amounts payable by the Tenant to the
Landlord under this Lease in order to avoid a waiver of any right which the Landlord may have to forfeit this Lease or re-enter the Demised Premises by reason of any breach of covenant by the Tenant or otherwise then notwithstanding any tender of
the same by the Tenant such sums shall bear interest to be paid by the Tenant at the Prescribed Rate calculated on a day-to-day basis from the date on which the same became due and payable down to the date upon which payment shall be accepted by the
Landlord or earlier forfeiture or re-entry. 
 Tenant’s covenants fully enforceable 

10. Each of the Tenant’s covenants contained in this Lease shall remain in full force both at law and in equity notwithstanding that
the Landlord may have waived or released temporarily or permanently revocably or irrevocably or otherwise any similar covenant affecting other premises adjoining or near to the Demised Premises or have waived any prior breach of any covenant on the
part of the Tenant. 
 Warranty disclaimer 
 11. The Tenant acknowledges that no representation or warranty has been given prior to the date hereof or is given or implied by this Lease that the use now or hereafter proposed by the Tenant for the
Demised Premises is or will be or will remain a use which does not constitute a breach of the Planning Acts or will not require planning permission and that no consent which the Landlord may give to any change of use shall be taken as including any
such representation or warranty and the Term and the Basic Rent and other rents or amounts payable to the Landlord under this Lease shall not (save to the extent provided in paragraph 3 of this Schedule) determine by reason of any changes
modifications or restrictions of the use of or access to the Demised Premises or by the same being or becoming impracticable or prohibited for any reason. 
 Exclusion of liability 
 12. Save to the extent to which the Landlord shall
be covered by insurance the Landlord shall not be liable to the Tenant (except as expressly provided in this Lease) or any other person in respect of: 
 (a) any damage suffered by the Tenant or any undertenant or occupier or their respective servants agents or visitors by reason of any defect in the Demised Premises; 

  
 -33-

 (b) any injury death damage destruction whether to person property or goods or financial or
consequential loss due directly or indirectly to or caused by any act neglect omission or default of any other occupier for the time being of the Demised Premises (or their respective; servants agents or visitors) or any person authorised by the
Landlord to enter the Demised Premises; 
 (c) any loss damage nuisance interference or annoyance suffered during the carrying
out of inspections repairs decorations additions alterations or other works whether structural or otherwise which may appear to the Landlord to be necessary or desirable to the Demised Premises. 

Enforcement of Landlord’s covenants 
 13. The covenants on the part of the Landlord contained in or obligations on its part implied by this Lease shall be binding in full on the owner of the reversion expectant on the Termination of the Term
but shall not be enforceable against any person who has owned such reversion after he shall have parted with all interest therein. 
 Compensation exclusion 
 14. Subject to section 38(2) of the Landlord and
Tenant Act 1954 neither the Tenant nor any assignee or underlessee (whether immediate or derivative) of the Term or of the Demised Premises shall be entitled on quitting the Demised Premises to any compensation under section 37 of such Act.

 Common areas 
 15. Notwithstanding anything contained in these Presents the Landlord shall not be liable to the Tenant nor shall the Tenant have any claim against the Landlord in respect of any temporary disruption to
the Estate Road Landscaped Areas or Car Parks by reason of necessary repair or maintenance or by reason of damage thereto or destruction thereof by fire water Act of God or other cause beyond the Landlord’s control or by reason of the exercise
of rights granted by a Deed dated 13th June 1986 and made between the Landlord (1) Wyndham Investments Limited (2) Bracknell Wine Company Limited (3) Gordon Lester Bollingbroke Foulger and Peter Foulger (4) and Waterside
Park Limited (5) PROVIDED ALWAYS that the Landlord shall use its best endeavours to keep such disruption to a minimum and to ensure that reasonable access to the Demised Premises is available
at all times. 
 Modification of Regulations 
 16. The Landlord shall be at liberty to facilitate the better regulation management care and security of the Estate and the buildings thereon and the comfort safety and convenience of the occupants
thereof and all other persons resorting thereto to alter and modify the Regulations from time to time at its discretion and by notice in writing to the Tenant but shall not be under any obligation to institute proceedings to enforce compliance
therewith unless it thinks fit so to do. 

  
 -34-

 Disputes with Adjoining Owners 

17. Any dispute arising between the Tenant and tenants or occupiers of adjoining or neighbouring premises belonging to the Landlord about
any easement right or privilege in favour of or affecting the Demised Premises or the premises adjoining or near the Demised Premises shall be decided by the Landlord’s Surveyor (whose decision including as to costs shall be binding upon the
Tenant who shall submit to and abide by such decision). 
 Requirement for Notice of Want of Repair 

18. Notwithstanding anything contained or implied in this Lease the Landlord shall not be under any liability in respect of any want of
maintenance or repair unless the Landlord shall have received actual notice of the want of maintenance or repair and shall thereafter have failed to remedy the same as soon as reasonably practicable. 

Severability 
 19. If any provision of this Lease is held to be invalid or unenforceable then such provision shall (so far as invalid or unenforceable) be given no effect and shall be deemed not to be included in this
Lease but without invalidating any of the remaining provisions of this Lease. 
 Governing Law and Jurisdiction

 20.1 This Lease shall be governed by and interpreted in accordance with English law. 

20.2 The parties give the courts of England exclusive jurisdiction to settle any dispute (including claims for set-off and counterclaims)
which may arise in connection with the validity effect interpretation or performance of or the legal relationships established by this Lease or otherwise arising in connection with this Lease. 

20.3 The agreement contained in paragraph 20.2 of this Schedule is included for the benefit of the Landlord and accordingly
notwithstanding the exclusive agreement in paragraph 16.2 the Landlord shall retain the right to bring proceedings in any other court which has jurisdiction by virtue of the Convention on Jurisdiction and the Enforcement of Judgments signed on
27 September 1968 (as from time to time amended and extended). 
 Contracts (Rights of Third Parties) Act 1999

 21. A person who is not a party to this Lease shall have no right under the Contracts (Rights of Third Parties) Act 1999
to enforce any of its terms. 

  
 -35-

 THE SIXTH SCHEDULE 

Regulations 
 1. Once monthly to wipe down and clean all external signs including directional and light fittings. 
 2. Every six months to clean out any petrol interceptors traps and gullies exclusively serving the Demised Premises and annually rod through and clean all drains exclusively serving the Demised Premises.

 3. To wash down and disinfect all external rubbish areas once a month. 

4. Not to park vehicles on the Estate Road. 

 

			
		 	 (EXECUTED as a DEED under (THE COMMON SEAL of THE (SCOTTISH PROVIDENT (INSTITUTION attested by:

		
	 	 	  

[Illegible]

		 	Authorised Signatory
		
		 	  

[Illegible]

		 	Authorised Signatory

  
 -36-

 MEMORANDUM 
 Subject to the provisions of the Second Schedule to the within written Lease it has [illegible] between the Landlord and the Tenant that the Basic Rent of £332,500 (three hundred and thirty two
pounds and five hundred pounds) per annum first [illegible] by clause 2 of the within written Lease shall be increased to £            
(                     pounds) per annum as from the      day of
             Two Hundred and
                                        .

 [            ] by
                                         
                                       )

 [            ] behalf of the
                                         
                       ) 

Landlord/Tenant
                                         
                               ) 

MEMORANDUM 
 Subject to the provisions of the Second Schedule to the within written Lease it has [illegible] agreed between the Landlord and the Tenant that the Basic Rent of
             (                     pounds) per annum first reserved by
[illegible] of the within written Lease shall be increased to £            
(                     pounds) per annum as from the      day of
             Two Hundred and
                                        .

 [Illegible] by
                                         
                                   ) 

[Illegible] behalf of the
                                         
                   ) 
 Landlord/Tenant
                                         
                             ) 

  
 -37-Loan and Security Agreement

 Exhibit 10.13 
 LOAN AND SECURITY AGREEMENT 
 THIS LOAN AND SECURITY
AGREEMENT (this “Agreement”) dated as of the Effective Date between GOLD HILL CAPITAL 2008, LP (“Lender”), and BLUEARC CORPORATION, a Delaware corporation (“Borrower”),
provides the terms on which Lender shall lend to Borrower and Borrower shall repay Lender. The parties agree as follows: 
 1            ACCOUNTING AND OTHER TERMS 
 Accounting terms not defined in this Agreement shall be construed following GAAP. Calculations and determinations must be made following GAAP. Capitalized terms not otherwise defined in this Agreement
shall have the meanings set forth in Section 13. All other terms contained in this Agreement, unless otherwise indicated, shall have the meaning provided by the Code to the extent such terms are defined therein. 

2            LOAN AND TERMS OF PAYMENT

 2.1        Promise to Pay. Borrower hereby unconditionally
promises to pay Lender the outstanding principal amount of all Credit Extensions and accrued and unpaid interest thereon and any applicable fees as and when due in accordance with this Agreement. 

2.1.1    Growth Capital Advances. 

    (a)        Availability. Subject to the terms and
conditions of this Agreement, Lender agrees to lend to Borrower from time to time prior to the Growth Capital Commitment Termination Date, one advance (the “Growth Capital Advance”) in an aggregate amount not to exceed the Growth
Capital Loan Commitment. When repaid, the Growth Capital Advance may not be re-borrowed. Lender’s obligation to lend hereunder shall terminate on the Growth Capital Commitment Termination Date. For purposes of this Section, Borrower shall
request the Growth Capital Advance be made on or before ten (10) Business Days after the Effective Date. 

    (b)        Repayment. For the Growth Capital
Advance, Borrower shall make monthly payments of interest only commencing on the first day of the month following the month in which the Funding Date occurs with respect to such Growth Capital Advance and continuing thereafter on the first day of
each successive calendar month during the Growth Capital Interest Only Period. Commencing on the Growth Capital Amortization Date and continuing thereafter on the first day of each successive calendar month during the Growth Capital Repayment Period
(each a “Growth Capital Scheduled Payment Date”), Borrower shall make thirty (30) equal monthly payments of principal and interest which would fully amortize the outstanding Growth Capital Advance as of the Growth Capital
Amortization Date over the Growth Capital Repayment Period (each a “Growth Capital Scheduled Payment Date”). All unpaid principal and accrued interest is due and payable in full on the Growth Capital Maturity Date with respect to
such Growth Capital Advance. A Growth Capital Advance may only be prepaid in accordance with Section 2.1.1(e). 
     (c)        Final Payment. On the Growth Capital Maturity Date with respect to the Growth Capital Advance, Borrower shall pay, in
addition to the outstanding principal, accrued and unpaid interest, and all other amounts due on such date with respect to such Growth Capital Advance, an amount equal to the Final Payment. 

    (d)        Mandatory Prepayment Upon an
Acceleration. If the Growth Capital Advance is accelerated following the occurrence of an Event of Default, Borrower shall immediately pay to Lender an amount equal to the sum of: (i) all unpaid Growth Capital Scheduled Payments (with
respect to the Growth Capital Advance due prior to the next such Growth Capital Scheduled Payment Date), (ii) all remaining Growth Capital Scheduled Payments (including principal and interest) to become due, (iii) the Final Payment, and
(iv) all other sums, if any, that shall have become due and payable, including interest at the Default Rate with respect to any past due amounts. 
     (e)        Permitted Prepayment of Loans. Borrower shall have the option to prepay all, but not less than all, of the Growth Capital
Advance advanced by Lender under this Agreement, provided Borrower (i) delivers 

 
written notice to Lender of its election to prepay the Growth Capital Advance at least five (5) Business Days prior to such prepayment, and (ii) pays, on the date of such prepayment
(A) all unpaid Growth Capital Scheduled Payments (with respect to the Growth Capital Advance due prior to the next such Growth Capital Scheduled Payment Date), (B) all remaining Growth Capital Scheduled Payments (including principal and
interest) to become due, (C) the Final Payment, and (D) all other sums, if any, that shall have become due and payable, including interest at the Default Rate with respect to any past due amounts. Notwithstanding the foregoing, Borrower
acknowledges and agrees that prior to prepaying the Growth Capital Advance pursuant to this Section, Borrower shall need to first obtain the written consent of Silicon Valley Bank to such prepayment. 

2.2         Payment of Interest on the Credit Extensions. 

    (a)         Interest Rate. Subject to
Section 2.2(b), the principal amount outstanding under the Growth Capital Advance shall accrue interest, which interest shall be payable monthly, at a fixed per annum rate equal to twelve percent (12%). 

    (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 2.2(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 Lender. 
     (c)         Intentionally
omitted. 
     (d)         360-Day Year.
Interest shall be computed on the basis of a 360-day year for the actual number of days elapsed. 

    (e)         ACH Payments. Borrower shall
separately set up an ACH payment structure in favor of Lender, satisfactory to Lender. 

    (f)         Payments. Unless otherwise provided,
interest is payable monthly on the first (1st) calendar day of each month. Payments of principal and/or interest received after 12:00 p.m. Pacific time are considered received at the opening of business on the next Business Day. When a
payment is due on a day that is not a Business Day, the payment is due the next Business Day and additional fees or interest, as applicable, shall continue to accrue. 

2.3         Fees. Borrower shall pay to Lender: 

    (a)         Loan Fee. A fully earned,
non-refundable loan fee of Thirty Seven Thousand Five Hundred Dollars ($37,500) has been paid to Lender; and 

    (b)         Lender Expenses. All Lender Expenses
(including reasonable attorneys’ fees and expenses for documentation and negotiation of this Agreement) incurred through and after the Effective Date, when due. 

3             CONDITIONS OF LOANS 

3.1         Conditions Precedent to Initial Credit Extension.
Lender’s obligation to make the initial Credit Extension is subject to the condition precedent that Borrower shall consent to or shall have delivered, in form and substance satisfactory to Lender, such documents, and completion of such other
matters, as Lender may reasonably deem necessary or appropriate, including, without limitation: 

    (a)         duly executed original signatures to the Loan
Documents to which it is a party; 
     (b)        
a duly executed original signature to the Warrant; 

    (c)         duly executed original signatures to the
Control Agreements required by Section 6.6(b); 

  
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     (d)        
its Operating Documents and good standing certificates of Borrower certified by the Secretary of State of the States of Delaware and California 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 Lender shall request, accompanied by written evidence (including any UCC termination statements) that the Liens
indicated in any such financing statements either constitute Permitted Liens or have been or, in connection with the initial Credit Extension, will be terminated or released; 

    (g)         the Perfection Certificate executed by
Borrower; 
     (h)         a copy of its Amended
and Restated Investors’ Rights Agreement and any amendments thereto; 
     (i)
        evidence satisfactory to Lender that the insurance policies required by Section 6.5 hereof are in full force and effect, together with appropriate evidence showing lender loss payable
and/or additional insured clauses or endorsements in favor of Lender; and 
     (j)
        payment of the fees and Lender Expenses then due as specified in Section 2.3 hereof. 
 3.2        Conditions Precedent to all Credit Extensions. Lender’s obligation to make each Credit Extension, including the initial Credit Extension, is
subject to the following: 
     (a)        except
as otherwise provided in Section 3.4(a), timely receipt of an executed Payment/Advance Form; 

    (b)        the representations and warranties in
Section 5 shall be true in all material respects on the date of the Payment/Advance Form and on the Funding Date of each Credit Extension; provided, however, that such materiality qualifier shall not be applicable to any representations
and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material
respects as of such date, and no Event of Default shall have occurred and be continuing or result from the Credit Extension. Each Credit Extension is Borrower’s representation and warranty on that date that the representations and warranties in
Section 5 remain true in all material respects; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof;
and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date; and 

    (c)        in Lender’s sole discretion, there has
not been any material impairment in the general affairs, management, results of operation, financial condition or the prospect of repayment of the Obligations, or there has not been any material adverse deviation by Borrower from the most recent
business plan of Borrower presented to and accepted by Lender. 

3.3        Covenant to Deliver. 

Borrower agrees to deliver to Lender each item required to be delivered to Lender under this Agreement as a condition to
any Credit Extension. Borrower expressly agrees that a Credit Extension made prior to the receipt by Lender of any such item shall not constitute a waiver by Lender of Borrower’s obligation to deliver such item, and any such Credit Extension in
the absence of a required item shall be made in Lender’s sole discretion. 

  
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 3.4         Procedures for
Borrowing. 
     (a)         Growth Capital
Advance. To obtain the Growth Capital Advance, Borrower must notify Lender by facsimile or telephone by 12:00 p.m. Pacific Time at least ten (10) Business Days prior to the date the Growth Capital Advance is to be made. If such
notification is by telephone, Borrower must promptly confirm the notification by delivering to Lender a completed Payment/Advance Form in the form attached as Exhibit B. On the Funding Date, Lender shall transfer to Borrower’s
deposit account, as designated on the Payment/Advance Form, an amount equal to the amount of the Growth Capital Advance. Lender may make the Growth Capital Advance under this Agreement based on instructions from a Responsible Officer or his or her
designee. Lender may rely on any telephone notice given by a person whom such Lender believes is a Responsible Officer or designee. Borrower shall indemnify Lender for any loss Lender suffers due to such reliance. 

4             CREATION OF SECURITY INTEREST 

4.1         Grant of Security Interest. Borrower hereby grants Lender, to
secure the payment and performance in full of all of the Obligations, a continuing security interest in, and pledges to Lender, 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 the Lien of SVB and other
Permitted Liens). If Borrower shall acquire a commercial tort claim, Borrower shall promptly notify Lender in a writing signed by Borrower of the general details thereof and grant to Lender in such writing a security interest therein and in the
proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to Lender. 
 If this Agreement is terminated, Lender’s Lien in the Collateral shall continue until the Obligations (other than inchoate indemnity obligations) are repaid in full in cash. Upon payment in full in
cash of the Obligations and at such time as Lender’s obligation to make Credit Extensions has terminated, Lender shall, at Borrower’s sole cost and expense, release its Liens in the Collateral and all rights therein shall revert to
Borrower. 
 Lender agrees that the Liens granted to it hereunder in Third Party Equipment shall be subordinate
(or released upon request of the applicable equipment lender or lessor) to the Liens in Third Party Equipment of future lenders providing equipment financing and equipment lessors for Third Party Equipment; provided that such Liens are confined
solely to the equipment so financed and the proceeds thereof and are permitted under paragraph (c) of the definition of Permitted Liens. “Third Party Equipment” means the Equipment financed or acquired falling within the definition of
paragraph (c) of the definition of Permitted Liens. Notwithstanding the foregoing, the Obligations hereunder shall not be subordinate in right of payment to any obligations to other equipment lenders or equipment lessors and Lender’s
rights and remedies hereunder shall not in any way be subordinate to the rights and remedies of any such lenders or equipment lessors (except with respect to the Third Party Equipment only). So long as no Event of Default has occurred, Lender agrees
to execute and deliver such agreements and documents as may be reasonably requested by Borrower from time to time which set forth the lien subordination (or, if applicable, lien release) described in this Section 4.1 and are reasonably
acceptable to Lender. Lender shall have no obligation to execute any agreement or document which would impose obligations, restrictions or lien priority on Lender which are less favorable to Lender than those described in this
Section 4.1. 
 4.2         Authorization to File
Financing Statements. Borrower hereby authorizes Lender to file financing statements, without notice to Borrower, with all appropriate jurisdictions to perfect or protect Lender’s interest or rights hereunder, including a notice of the
negative pledge on intellectual property substantially in the form of Exhibit A. 
 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 

  
 -4-

 
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 Lender a completed certificate signed by Borrower, entitled “Perfection Certificate.” Borrower represents and warrants to Lender that, unless changed pursuant to a notification to Lender pursuant to Section 7.2:
(a) Borrower’s exact legal name is that indicated on the Perfection Certificate and on the signature page hereof; (b) Borrower is an organization of the type and is organized in the jurisdiction set forth in the Perfection
Certificate; (c) the Perfection Certificate accurately sets forth Borrower’s organizational identification number 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). If Borrower is not now a Registered Organization but later becomes one, Borrower shall promptly notify Lender of such occurrence and provide Lender with Borrower’s organizational identification number. 

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 their property or assets may be bound or affected, (iv) require any action by,
filing, registration, or qualification with, or Governmental Approval from, any Governmental Authority (except such Governmental Approvals which have already been obtained and are in full force and effect and UCC-1 financing statement filings) 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 reasonably be expected to have
a material adverse effect on Borrower’s business. 
 5.2
        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 described in the Perfection Certificate delivered to Lender in connection herewith, or of which Borrower has given Lender notice and taken such actions as are
necessary to give Lender a perfected security interest therein. 
 The Collateral (excluding Collateral with an
aggregate book value not in excess of Two Hundred Fifty Thousand Dollars ($250,000)) is not in the possession of any third party bailee (such as a warehouse) except as otherwise provided in the Perfection Certificate or as permitted pursuant to
Section 7.2 and as otherwise permitted by the last sentence of this paragraph. 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 (excluding Collateral with an aggregate book value not in excess of Two Hundred Fifty Thousand Dollars
($250,000)) to a bailee, then Borrower will first receive the written consent of Lender and such bailee must execute and deliver a bailee agreement in form and substance satisfactory to Lender in its sole discretion. 

5.3         Intentionally omitted. 

5.4         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 involving more than Five Hundred Thousand Dollars ($500,000). 

5.5         No Material Deviation in Financial Statements. All
consolidated financial statements for Borrower and any of its Subsidiaries delivered to Lender fairly present in all material respects Borrower’s consolidated financial condition and Borrower’s consolidated results of operations. There has
not been any material deterioration in Borrower’s consolidated financial condition since the date of the most recent financial statements submitted to Lender. 

  
 -5-

 5.6         Solvency. The
fair salable value of Borrower’s assets (including goodwill minus disposition costs) exceeds the fair value of its liabilities; Borrower is 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. 
 5.7
        Regulatory Compliance. Borrower is not an “investment company” or a company “controlled” by an “investment company” under the Investment Company Act of 1940, as
amended. Borrower is not engaged as one of its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of Governors). Borrower has complied in all material respects with the Federal Fair
Labor Standards Act. Neither Borrower nor any of its Subsidiaries is a “holding company” or an “affiliate” of a “holding company” or a “subsidiary company” of a “holding company” as each term is
defined and used in the Public Utility Holding Company Act of 2005. 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 Governmental Authorities that are
necessary to continue their respective businesses as currently conducted, except where the failure to do so would not reasonably be expected to cause a material impairment in the general affairs, management, results of operation, financial condition
or the prospect of repayment of the Obligations of Borrower. 
 5.8
        Subsidiaries; Investments. Borrower does not own any stock, partnership interest or other equity securities except for Permitted Investments. 

5.9         Tax Returns and Payments; Pension Contributions. Borrower has
timely filed all material required tax returns and reports, and Borrower has timely paid all material foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower. Borrower may defer payment of any contested
taxes, provided that Borrower (a) in good faith contests its obligation to pay the taxes by appropriate proceedings promptly and diligently instituted and conducted, (b) notifies Lender in writing of the commencement of, and any material
development in, the proceedings, (c) posts bonds or takes any other steps required to prevent the governmental authority levying such contested taxes from obtaining a Lien upon any of the Collateral that is other than a “Permitted
Lien.” Borrower is unaware of any claims or adjustments proposed for any of Borrower’s prior tax years which could result in additional taxes becoming due and payable by Borrower. Borrower has paid all amounts necessary to fund all present
pension, profit sharing and deferred compensation plans in accordance with their terms, and Borrower has not withdrawn from participation in, and has not permitted partial or complete termination of, or permitted the occurrence of any other event
with respect to, any such plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 

5.10         Use of Proceeds. Borrower shall use the proceeds of the
Credit Extensions solely as working capital and to fund its general business requirements and not for personal, family, household or agricultural purposes. 
 5.11         Full Disclosure. No written representation, warranty or other statement of Borrower in any certificate or written statement given to Lender, as
of the date such representation, warranty, or other statement was made, taken together with all such written certificates and written statements given to Lender, contains any untrue statement of a material fact or omits to state a material fact
necessary to make the statements contained in the certificates or statements not misleading (it being recognized by Lender that the projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are not viewed as
facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results). 
 6             AFFIRMATIVE COVENANTS 
 Borrower shall do all of the following: 

  
 -6-

 6.1         Government
Compliance. 
       (a)
        Maintain its and all its Subsidiaries’ legal existence (except as permitted by Section 7.3) 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. 
       (b)         Use commercially reasonably efforts to obtain all of the Governmental Approvals necessary for the performance by
Borrower of its obligations under the Loan Documents to which it is a party and the grant of a security interest to Lender in all of its property. Borrower shall promptly provide copies of any such obtained Governmental Approvals to Lender.

 6.2         Financial Statements, Reports, Certificates.

       (a)         Deliver to Lender:
(i) as soon as available, but no later than thirty (30) days after the last day of each month, a company prepared consolidated balance sheet and income statement covering Borrower’s consolidated operations for such month certified by
a Responsible Officer and in a form acceptable to Lender; (ii) as soon as available, but no later than one hundred eighty (180) days after the last day of Borrower’s fiscal year, audited consolidated financial statements prepared
under GAAP, consistently applied, together with an unqualified opinion on the financial statements from an independent certified public accounting firm acceptable to Lender in its reasonable discretion; (iii) annual financial projections
approved by Borrower’s Board of Directors consistent in form and detail with those provided to Borrower’s venture capital investors as soon as available, but no later than thirty (30) days after the approval thereof by Borrower’s
Board of Directors and no less frequently than annually; (iv) within five (5) days of delivery, copies of all statements, reports and notices made available to Borrower’s security holders or to any holders of Subordinated Debt;
(v) in the event that Borrower becomes subject to the reporting requirements under the Securities Exchange Act of 1934, as amended, within five (5) days of 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; (vi) a prompt report of any legal actions pending or threatened against Borrower or any of its Subsidiaries that could result in damages or costs to
Borrower or any of its Subsidiaries of Five Hundred Thousand Dollars ($500,000) or more; and (vii) other financial information reasonably requested by Lender. 

    (b)         Within thirty (30) days after the last
day of each month, deliver to Lender with the monthly financial statements, a duly completed Compliance Certificate signed by a Responsible Officer. 
     (c)         Allow Lender to audit or inspect Borrower’s Collateral at Borrower’s expense. Such audits or inspections shall be
conducted no more often than once every twelve (12) months unless an Event of Default has occurred and is continuing. 
     (d)         Deliver to Lender a copy of every 409 evaluation report as to Borrower’s capital stock Borrower’s receives after the
Effective Date within thirty (30) days after Borrower’s receipt thereof. 

    (e)         So long as Borrower is not subject to the
reporting requirements under the Securities Exchange Act of 1934, as amended, within thirty (30) days after Borrower completes any private equity financing/sale of its capital stock, deliver to Lender a copy of Borrower’s certificate of
incorporation, as amended by such equity financing/sale, and a list of the venture capital investors and strategic investors participating in such equity financing/sale. 

6.3         Inventory; Returns. Keep all Inventory in good and marketable
condition, free from material defects. Returns and allowances between Borrower and its Account Debtors shall follow Borrower’s customary practices as they exist at the Effective Date. Borrower must promptly notify Lender of all returns,
recoveries, disputes and claims that involve more than Two Hundred Fifty Thousand Dollars ($250,000). 

  
 -7-

 6.4         Taxes; Pensions.
Timely file, and require each of its Subsidiaries to timely file, all material required tax returns and reports and timely pay, and require each of its Subsidiaries to timely file, all material 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 5.9 hereof, and shall deliver to Lender, 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. 

6.5         Insurance. Keep its business and the Collateral insured for
risks and in amounts standard for companies in Borrower’s industry and location and as Lender may reasonably request. Insurance policies shall be in a form, with companies, and in amounts that are satisfactory to Lender. All property policies
shall have a lender’s loss payable endorsement showing Lender as lender loss payee and waive subrogation against Lender, and all liability policies shall show, or have endorsements showing, Lender as an additional insured. All policies (or the
loss payable and additional insured endorsements) shall provide that the insurer shall endeavor to give Lender at least twenty (20) days notice before canceling, amending, or declining to renew its policy. At Lender’s request, Borrower
shall deliver certified copies of policies and evidence of all premium payments. Notwithstanding the foregoing, so long as no Event of Default has occurred and is continuing, Borrower shall have the option of applying the proceeds of any casualty
policy toward the replacement or repair of destroyed or damaged property; provided that any such replaced or repaired property (i) shall be of equal or like value as the replaced or repaired Collateral and (ii) shall be deemed Collateral
in which Lender has been granted a first priority security interest (subject to the Lien of SVB and other Permitted Liens). After the occurrence and during the continuance of an Event of Default, all proceeds payable under such casualty policy
shall, at the option of Lender, be payable to Lender on account of the Obligations or to SVB as to the obligations under the SVB Loan Facility and Lender has agreed by a separate agreement with SVB how to share any such insurance proceeds. If
Borrower fails to obtain insurance as required under this Section 6.5 or to pay any amount or furnish any required proof of payment to third persons and Lender, Lender may make all or part of such payment or obtain such insurance
policies required in this Section 6.5, and take any action under the policies Lender deems prudent. 
 6.6
        Operating Accounts. 

      (a)         Maintain an ACH payment structure
in favor of Lender, satisfactory to Lender. 
       (b)
        Provide Lender five (5) days prior written notice before establishing any Collateral Account. For each Collateral Account that Borrower at any time maintains, Borrower shall cause the applicable
bank or financial institution at or with which any Collateral Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Lender’s Lien in such Collateral
Account in accordance with the terms hereunder. The provisions of the previous sentence shall not apply to deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of
Borrower’s employees and identified to Lender by Borrower as such. 
 6.7
        Protection of Intellectual Property Rights. Borrower shall: (a) protect, defend and maintain the validity and enforceability of its material intellectual property; (b) promptly advise
Lender in writing of material infringements of its material intellectual property; and (c) not allow any intellectual property material to Borrower’s business to be abandoned, forfeited or dedicated to the public without Lender’s
written consent. 
 6.8         Litigation Cooperation. From the
date hereof and continuing through the termination of this Agreement, make available to Lender, without expense to Lender, Borrower and its officers, employees and agents and Borrower’s books and records, to the extent that Lender may deem them
reasonably necessary to prosecute or defend any third-party suit or proceeding instituted by or against Lender with respect to any Collateral or relating to Borrower. 

6.9         Right to Invest. Grant to Lender or its Affiliates a right
(but not an obligation) to purchase up to Two Hundred Fifty Thousand Dollars ($250,000) in Borrower’s next round of private equity financing on the same terms, conditions and pricing offered to its lead investors (and Lender or its Affiliates
shall enter into and be subject to the same documentation as such lead investors). Borrower shall give Lender written notice of the private equity financing, as early as practicable, which notice shall (a) identify the investors participating
in such private equity financing and contain the terms, conditions and pricing of the private equity financing, and (b) be delivered to Lender’s address set 

  
 -8-

 
forth in Section 10 hereof. If Borrower does not give Lender at least fifteen (15) Business Days written notice prior to the initial closing of such financing and Lender does not
participate in the initial closing, then this right to invest in such financing may be exercised by Lender (or its Affiliates) in a subsequent closing no later than thirty (30) days after the initial closing of such financing and Borrower shall
give Lender at least fifteen (15) Business Days written notice prior to this subsequent closing. The right granted hereunder shall survive the termination of this Agreement. 

6.10         Further Assurances. Execute any further instruments and take
further action as Lender reasonably requests to perfect or continue Lender’s Lien in the Collateral or to effect the purposes of this Agreement. 
 7              NEGATIVE COVENANTS 
 Borrower shall not do any of the following without Lender’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; (c) in connection with Permitted Liens and
Permitted Investments; (d) of non-exclusive licenses for the use of the property of Borrower or its Subsidiaries in the ordinary course of business; (e) exclusive licenses of intellectual property that could not result in a legal transfer
of title of the licensed property but that may be exclusive as to a geographic area, field of use or a limited period of time; and (f) Transfers of other property having an aggregate book value not to exceed Five Hundred Thousand Dollars
($500,000) in any fiscal year so long as no Event of Default has occurred and is continuing or would exist after giving effect to any such Transfer. 
 7.2         Changes in Business, Management, Ownership, 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 or incidental thereto; (b) liquidate or dissolve; or (c) (i) have a change in Borrower’s Chief Executive Officer
unless a new Chief Executive Officer or an interim Chief Executive Officer is approved by the Borrower’s Board of Directors, including the Directors who are not employees of Borrower at the time of such approval, within one hundred twenty
(120) days of the date of termination of the Chief Executive Officer, or (ii) prior to a Positive M&A Event, have a change in the director on Borrower’s Board of Directors designated by Crosslink Venture Partners, L.P.
(“Crosslink”) unless the replacement director is a partner, principal or member of Crosslink, or (iii) prior to a Positive M&A Event, have a change in the director on Borrower’s Board of Directors designated by
Morgenthaler Venture Partners, L.P. (“Morgenthaler”) unless the replacement director is a partner, principal or member of Morgenthaler, or (iv) prior to a Positive M&A Event, have a change in the director on Borrower’s
Board of Directors designated by Meritech Venture Partners, L.P. (“Meritech”) unless the replacement director is a partner, principal or member of Meritech, or (v) enter into any transaction or series of related transactions in
which the stockholders of Borrower who were not stockholders immediately prior to the first such transaction own more than 49% of the voting stock of Borrower immediately after giving effect to such transaction or related series of such transactions
(other than by the sale of Borrower’s equity securities in a public offering or to venture capital investors or strategic investors). A “Positive M&A Event” means either (i) an initial public offering of
Borrower’s common stock, or (ii) a merger or acquisition of Borrower consented to by Lender in writing for the purposes of Section 7.3. Borrower shall not, without contemporaneous written notice to Lender: (1) add any new
offices or business locations, including warehouses (unless such new offices or business locations contain less than Two Hundred Fifty Thousand Dollars ($250,000) 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, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person, except: (i) a Subsidiary may merge or
consolidate into another Subsidiary or into Borrower; (ii) Borrower or a Subsidiary may acquire the assets of a Subsidiary that has dissolved; and (iii) acquisitions of a Person so long as (1) the total consideration including cash
and the value of any non-cash consideration (other than capital stock of Borrower) for all such transactions does not in the aggregate exceed One Million Dollars ($1,000,000) in any fiscal year, (2) such transactions are not otherwise
prohibited by Section 7 of this 

  
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Agreement, (c) no Event of Default has occurred and is continuing or would exist after giving effect to such transactions, and (d) Borrower is the surviving legal entity or Borrower is
the parent of the surviving legal entity. 
 7.4
        Indebtedness. Create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness. 

7.5         Encumbrance. (a) Create, incur, allow, or suffer any Lien
on any of its property, or assign or convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens; (b) permit any Collateral not to be subject to the first
priority security interest granted herein (other than the Lien of SVB and other Permitted Liens); or (c) enter into any agreement, document, instrument or other arrangement (except with or in favor of Lender or SVB) with any Person which
prohibits or has the effect of prohibiting Borrower from assigning, mortgaging, pledging, granting a security interest in or upon, or encumbering any of Borrower’s intellectual property, except: (i) as is otherwise permitted in
Section 7.1 hereof and the definition of “Permitted Lien” herein, and (ii) with respect to intellectual property licenses where Borrower is the licensee, the underlying intellectual property under such license is not owned
by Borrower and such license prohibits or conditions the assignment of, or the granting of a security interest in, the license or the underlying intellectual property. 

7.6         Maintenance of Collateral Accounts. Maintain any Collateral
Account except pursuant to the terms of Section 6.6 hereof. 
 7.7
        Distributions; Investments. (a) Pay any dividends or make any distribution or payment or redeem, retire or purchase any capital stock provided that (i) Borrower may convert any of its
convertible securities into other securities pursuant to the terms of such convertible securities or otherwise in exchange thereof, (ii) Borrower may pay dividends solely in common stock and make payments in cash for any fractional shares upon
such conversion or in connection with the exercise or conversion of warrants or other securities in an aggregate amount not to exceed Twenty Five Thousand Dollars ($25,000); and (iii) Borrower may repurchase the stock of former employees or
consultants pursuant to stock repurchase agreements so long as an Event of Default does not exist at the time of such repurchase and would not exist after giving effect to such repurchase, provided such repurchase does not exceed in the aggregate of
Two Hundred Fifty Thousand Dollars ($250,000) per fiscal year; or (b) make any Investment other than Permitted Investments, or permit any of its Subsidiaries to do so. 

7.8         Transactions with Affiliates. Enter into or permit to exist
any material transaction with any Affiliate of Borrower, except for: (i) transactions with Subsidiaries that are not otherwise prohibited under this Agreement, (ii) 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, (iii) customary indemnification, fees, expenses and compensation arrangements
including employee benefits not otherwise prohibited by Section 7 of this Agreement paid or reimbursed to directors, officers or employees who are Affiliates, and (iv) transactions permitted under Section 7.7.

 7.9         Subordinated Debt. (a) Make or permit any
payment on any Subordinated Debt, except under the terms of the subordination, intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any document relating to the Subordinated Debt
which would increase the amount thereof or adversely affect the subordination thereof to Obligations owed to Lender. 
 7.10         Compliance. Become an “investment company” or a company controlled by an “investment company”, under the Investment Company
Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds of 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 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 

  
 -10-

 
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 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 Growth Capital 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); 
 8.2        Covenant Default. 

    (a)        Borrower fails or neglects to perform any
obligation in Sections 6.2 or 6.6 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 any other covenants set forth in subsection (a) above; 

8.3        Intentionally omitted. 

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 Lender or any Lender 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 material part of its business; 

8.5         Insolvency. (a) Borrower shall fail to pay its debts
(including trade debts) as they become due; (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 or any Guarantor 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 Five Hundred Thousand Dollars ($500,000) or that could have a material adverse effect on Borrower’s or any
Guarantor’s business; 

  
 -11-

 8.7        SVB Loan
Agreement. There is an event of default (beyond any applicable cure period) in the SVB Loan Agreement; 

8.8        Judgments. One or more judgments, orders, or decrees for the
payment of money in an amount, individually or in the aggregate, of at least Five Hundred Thousand Dollars ($500,000) (not covered by independent third-party insurance as to which liability has been accepted by such insurance carrier) shall be
rendered against Borrower and 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); 
 8.9        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 Lender or to induce Lender to enter this Agreement or any Loan Document, and such
representation, warranty, or other statement is incorrect in any material respect when made; 

8.10      Subordinated Debt. A default or breach occurs under any agreement between
Borrower and any creditor of Borrower that signed a subordination, intercreditor, or other similar agreement with Lender, or any creditor that has signed such an agreement with Lender breaches any terms of such agreement; or 

8.11      Lien Priority. There is a material impairment in the priority of
Lender’s security interest in the Collateral. 

9           LENDER’S RIGHTS AND REMEDIES 

9.1        Rights and Remedies. While an Event of Default occurs and
continues Lender may, without notice or demand, do any or all of the following: 

    (a)        declare all Obligations immediately due and
payable (but if an Event of Default described in Section 8.5 occurs all Obligations are immediately due and payable without any action by Lender); 
     (b)        stop advancing money or extending credit for Borrower’s benefit under this Agreement or under any other agreement between
Borrower and Lender; 
     (c)        settle or
adjust disputes and claims directly with Account Debtors for amounts on terms and in any order that Lender considers advisable, notify any Person owing Borrower money of Lender’s security interest in such funds, and verify the amount of such
account; 
     (d)        make any payments and do
any acts it considers necessary or reasonable to protect the Collateral and/or its security interest in the Collateral. Borrower shall assemble the Collateral if Lender requests and make it available as Lender designates. Lender may enter premises
where the Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase, contest, or compromise any .Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Borrower
grants Lender a license to enter and occupy any of its premises, without charge, to exercise any of Lender’s rights or remedies; 
     (e)        apply to the Obligations any (i) balances and deposits of Borrower it holds, or (ii) any amount held by Lender owing to
or for the credit or the account of Borrower; 

    (f)        ship, reclaim, recover, store, finish,
maintain, repair, prepare for sale, advertise for sale, and sell the Collateral. Lender is hereby granted a non-exclusive, royalty-free license or other right to use, without charge, 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 Lender’s exercise of its rights under this Section, Borrower’s rights under all licenses and all franchise agreements inure to Lender’s benefit; 

  
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 (g)        place a “hold”
on any account maintained with Lender 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; 

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

 (i)        exercise all rights and remedies available to Lender under
the Loan Documents or at law or equity, including all remedies provided under the Code (including disposal of the Collateral pursuant to the terms thereof). 
 9.2        Power of Attorney. Borrower hereby irrevocably appoints Lender as its lawful attorney-in-fact, exercisable upon the occurrence and during the
continuance of an Event of Default, to: (a) endorse Borrower’s name on any checks or other forms of payment or security; (b) sign Borrower’s name on any invoice or bill of lading for any Account or drafts against Account Debtors;
(c) settle and adjust disputes and claims about the Accounts directly with Account Debtors, for amounts and on terms Lender determines reasonable; (d) make, settle, and adjust all claims under Borrower’s insurance policies;
(e) pay, contest or settle any Lien, charge, encumbrance, security interest, and adverse claim in or to the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and (f) transfer the
Collateral into the name of Lender or a third party as the Code permits, Borrower hereby appoints Lender as its lawful attorney-in-fact to sign Borrower’s name on any documents necessary to perfect or continue the perfection of Lender’s
security interest in the Collateral regardless of whether an Event of Default has occurred until all Obligations have been satisfied in full and Lender is under no further obligation to make Credit Extensions hereunder. Lender’s foregoing
appointment as Borrower’s attorney in fact, and all of Lender’s rights and powers, coupled with an interest, are irrevocable until all Obligations have been fully repaid and performed and Lender’s obligation to provide Credit
Extensions terminates. 
 9.3        Protective Payments. If
Borrower fails to obtain the insurance called for by Section 6.5 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, Lender may obtain such
insurance or make such payment, and all amounts so paid by Lender are Lender Expenses and immediately due and payable, bearing interest at the then highest applicable rate, and secured by the Collateral. Lender will make reasonable efforts to
provide Borrower with notice of Lender obtaining such insurance at the time it is obtained or within a reasonable time thereafter. No payments by Lender are deemed an agreement to make similar payments in the future or Lender’s waiver of any
Event of Default. 
 9.4        Application of Payments and
Proceeds. Borrower shall have no right to specify the order or the accounts to which Lender shall allocate or apply any payments required to be made by Borrower to Lender or otherwise received by Lender 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, Lender 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 Lender shall determine in its sole discretion. Any surplus shall be paid to Borrower or other Persons legally entitled
thereto; Borrower shall remain liable to Lender for any deficiency. If Lender, in its good faith business judgment, directly or indirectly enters into a deferred payment or other credit transaction with any purchaser at any sale of Collateral,
Lender shall have the option, exercisable at any time, of either reducing the Obligations by the principal amount of the purchase price or deferring the reduction of the Obligations until the actual receipt by Lender of cash therefor. 

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

9.6        No Waiver; Remedies Cumulative. Lender’s failure, at any
time or times, to require strict performance by Borrower of any provision of this Agreement or any other Loan Document shall not waive, affect, or diminish any right of Lender thereafter to demand strict performance and compliance herewith or
therewith. No waiver 

  
 -13-

 
hereunder shall be effective unless signed by Lender and then is only effective for the specific instance and purpose for which it is given. Lender’s rights and remedies under this Agreement
and the other Loan Documents are cumulative. Lender has all rights and remedies provided under the Code, by law, or in equity. Lender’s exercise of one right or remedy is not an election, and Lender’s waiver of any Event of Default is not
a continuing waiver. Lender’s delay in exercising any remedy is not a waiver, election, or acquiescence. 

9.7        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 Lender 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. Lender 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:     BlueArc Corporation

		  	 50 Rio Robles Drive

		  	 San Jose, CA 95134

		  	 Attn: Rick Martig, CFO

		  	 Fax: (408) 576-5741

		  	 Email: rmartig@bluearc.com

		
	 If to Lender:
	  	 Gold Hill Capital 2008, LP

		  	 One Almaden Blvd., Suite 630

		  	 San Jose, CA 95113

		  	 Attn: Glenn Marasigan

		  	 Fax: (408) 200-7841

		  	 Email: gmarasigan@goldhillcapital.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 Lender 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 Lender from bringing suit or taking other legal action
in any other jurisdiction to realize on the Collateral or any other security for the Obligations, or to enforce a judgment or other court order in favor of Lender. 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 LENDER 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

  
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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        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 Lender’s prior written consent (which may be granted or withheld in Lender’s discretion).
Lender 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, Lender’s obligations, rights, and benefits under this Agreement and the other
Loan Documents. 
 12.2        Indemnification. Borrower agrees
to indemnify, defend and hold Lender and its directors, officers, employees, agents, attorneys, or any other Person affiliated with or representing Lender (each, an “Indemnified Person”) harmless against: (a) all obligations,
demands, claims, and liabilities (collectively, “Claims”) asserted by any other party in connection with the transactions contemplated by the Loan Documents; and (b) all losses or Lender Expenses incurred, or paid by such
Indemnified Person from, following, or arising from transactions between Lender 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. 
 12.3        Time of Essence. Time is of
the essence for the performance of all Obligations in this Agreement. 

12.4        Severability of Provisions. Each provision of this Agreement
is severable from every other provision in determining the enforceability of any provision. 

12.5        Correction of Loan Documents. Lender may correct patent errors
and fill in any blanks in this Agreement and the other Loan Documents consistent with the agreement of the parties. 
 12.6        Amendments in Writing; Integration. All amendments to this Agreement must be in writing and signed by both Lender and Borrower. This Agreement
and the Loan Documents represent the entire agreement about 

  
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this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject
matter of this Agreement and the Loan Documents merge into this Agreement and the Loan Documents. 

12.7        Counterparts. This Agreement may be executed in any number of
counterparts and by different parties on separate counterparts, each of which, when executed and delivered, are an original, and all taken together, constitute one Agreement. 

12.8        Survival. All covenants, representations and warranties made
in this Agreement continue in full force until this Agreement has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this
Agreement) have been satisfied. The obligation of Borrower in Section 12.2 to indemnify Lender shall survive until the statute of limitations with respect to such claim or cause of action shall have run. 

12.9        Confidentiality. All financial information (other than any
such information contained periodic reports filed by Borrower with the Securities and Exchange Commission) disclosed by the Borrower to Lender in writing and together with all other written information disclosed by Borrower to Lender that is marked
“Confidential” shall be considered confidential for purposes hereof. In handling any confidential information, Lender shall exercise the same degree of care that it exercises for its own proprietary information, but disclosure of
information may be made: (a) to Lender’s Subsidiaries or Affiliates; (b) to prospective transferees or purchasers of any interest in the Credit Extensions (provided, however, Lender 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 Lender’s regulators or as otherwise required in connection with
Lender’s examination or audit; (e) as Lender considers appropriate in exercising remedies under the Loan Documents; and (f) to third-party service providers of Lender so long as such service providers have executed a confidentiality
agreement with Lender with terms no less restrictive than those contained herein. Confidential information does not include information that either: (i) is in the public domain or in Lender’s possession when disclosed to Lender, or becomes
part of the public domain after disclosure to Lender; or (ii) is disclosed to Lender by a third party, if Lender does not know that the third party is prohibited from disclosing the information. 

Lender may use confidential information for any purpose, including, without limitation, for the development of client
databases, reporting purposes, and market analysis, so long as Lender does not disclose Borrower’s identity or the identity 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. 

12.10      Attorneys’ Fees, Costs and Expenses. In any action or proceeding
between Borrower and Lender arising out of or relating to the Loan Documents, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and other costs and expenses incurred, in addition to any other relief to which it
may be entitled. 

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. 

“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. 

  
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 “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 Resolutions” are, with respect to any Person, those resolutions substantially in the form
attached hereto as Exhibit C. 
 “Business Day” is any day that is not a Saturday,
Sunday or a day on which Lender is closed. 
 “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) 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. 

“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, Lender’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. 
 “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 D. 
 “Contingent
Obligation” is, for any Person, any direct or indirect liability, contingent or not, of that Person for (a) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly
guaranteed, endorsed, co-made, discounted or sold with recourse by that Person, or for which that Person is directly or indirectly liable; (b) any obligations for undrawn letters of credit for the account of that Person; and (c) all
obligations from any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or
commodity prices; but “Contingent Obligation” does not include endorsements in the ordinary course of business. The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent
Obligation is made or, if not determinable, the maximum reasonably anticipated liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement.

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

  
 -17-

 “Credit Extension” is any Growth Capital Advance or any
other extension of credit by Lender for Borrower’s benefit. 
 “Default Rate” is defined
in Section 2.2(b). 
 “Deposit Account” is any “deposit account” as
defined in the Code with such additions to such term as may hereafter be made. 
 “Dollars,”
“dollars” and “$” each mean lawful money of the United States. 

“Effective Date” is the date Lender executes and delivers this Agreement as indicated on the signature
page hereof. 
 “Equipment” is all “equipment” as defined in the Code with such
additions to such term as may hereafter be made, and includes without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing. 

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

“Event of Default” is defined in Section 8. 

“Final Payment” is a payment (in addition to and not a substitution for the regular monthly payments of
principal plus accrued interest) due on the earlier of (a) the Growth Capital Maturity Date or (b) the acceleration of such Growth Capital Advance, equal to the Loan Amount for such Growth Capital Advance multiplied by the Final Payment
Percentage. 
 “Final Payment Percentage” is, for each Growth Capital Advance, two percent
(2.0%). 
 “Foreign Subsidiary” means a Subsidiary not organized under the laws of the United
States or any state or territory thereof or the District of Columbia. 
 “Funding Date” is any
date on which a Credit Extension is made to or on account of Borrower which shall be a Business Day. 

“GAAP” is generally accepted accounting principles set forth in the opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other Person as may be approved by a significant
segment of the accounting profession, which are applicable to the circumstances as of the date of determination. 
 “General Intangibles” is all “general intangibles” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes
without limitation, all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished, any patents, trademarks, service marks and, to the
extent permitted under applicable law, any applications therefor, whether registered or not, any trade secret rights, including any rights to unpatented inventions, payment intangibles, royalties, contract rights, goodwill, franchise agreements,
purchase orders, customer lists, route lists, telephone numbers, domain names, claims, income and other tax refunds, security and other deposits, options to purchase or sell real or personal property, rights in all litigation presently or hereafter
pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and business interruption insurance), payments of insurance and rights to payment of any kind. 

“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. 

  
 -18-

 “Governmental Authority” is any nation or government, any
state or other political subdivision thereof, any agency, authority, instrumentality, regulatory body, court, central Lender 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. 
 “Growth Capital
Advance” is defined in Section 2.1.1. 
 “Growth Capital Amortization
Date” means, for the Growth Capital Advance, February 1, 2010; provided, however, if Borrower has presented evidence satisfactory to Lender that Borrower has achieved at least Seventy Four Million Seven Hundred Thousand
Dollars ($74,700,000) in revenue for Borrower’s fiscal year-end 2010, then the “Growth Capital Amortization Date” shall be, for each Growth Capital Advance, August 1, 2010. 

“Growth Capital Commitment Termination Date” is the earlier to occur of (a) ten (10) Business
Days after the Effective Date, or (b) an Event of Default. 
 “Growth Capital Interest Only
Period” means, for the Growth Capital Advance, the period of time commencing on its Funding Date through the day before the Growth Capital Amortization Date. 

“Growth Capital Loan Commitment” is Seven Million Five Hundred Thousand Dollars ($7,500,000).

 “Growth Capital Maturity Date” is, for the Growth Capital Advance, its 30th Growth Capital
Scheduled Payment Date. 
 “Growth Capital Repayment Period” is, for the Growth Capital
Advance, a period of time equal to thirty (30) consecutive months. 
 “Growth Capital Scheduled
Payment” is defined in Section 2.1.1. 
 “Growth Capital Scheduled Payment
Date” is defined in Section 2.1.1. 
 “Guarantor” is any present or future
guarantor of the Obligations. 
 “Indebtedness” is (a) indebtedness for borrowed money or
the deferred price of property or services, such as reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations,
and (d) Contingent Obligations. 
 “Indemnified Person” is defined in
Section 12.2. 
 “Insolvency Proceeding” is any proceeding by or against any Person
under the United States Bankruptcy Code, or any other bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or
other relief. 
 “Inventory” is all “inventory” as defined in the Code in effect on
the date hereof with such additions to such term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products, including without
limitation such inventory as is temporarily out of Borrower’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above. 

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

  
 -19-

 “Lender 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. 
 “Lien” is a claim,
mortgage, deed of trust, levy, charge, pledge, security interest or other encumbrance of any kind, whether voluntarily incurred or arising by operation of law or otherwise against any property. 

“Loan Amount” in respect of each Growth Capital Advance is the original principal amount of such Growth
Capital Advance. 
 “Loan Documents” are, collectively, this Agreement, the Warrant, the
Perfection Certificate, any note, or notes or guaranties executed by Borrower or any Guarantor, and any other present or future agreement between Borrower any Guarantor and/or for the benefit of Lender in connection with this Agreement, all as
amended, restated, or otherwise modified. 
 “Obligations” are Borrower’s obligation to
pay when due any debts, principal, interest, Lender Expenses and other amounts Borrower owes Lender 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 Borrower assigned to Lender, and the performance of Borrower’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. 

“Payment/Advance Form” is that certain form attached hereto as Exhibit B. 

“Perfection Certificate” is defined in Section 5.1. 

“Permitted Indebtedness” is: 

(a)        Borrower’s Indebtedness to Lender 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 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 Thirteen
Million Five Hundred Thousand Dollars ($13,500,000) secured by Permitted Liens consisting of (i) Indebtedness in an aggregate principal amount not to exceed Twelve Million Five Hundred Thousand Dollars ($12,500,000) to Silicon Valley Bank, and
(ii) Indebtedness in an aggregate principal amount not to exceed One Million Five Hundred Thousand Dollars ($1,500,000) secured by the Liens described in clause (c) of the definition of Permitted Liens; 

(g)        other Indebtedness not exceeding Two Hundred Fifty Thousand Dollars
($250,000) in the aggregate outstanding at any time: 

  
 -20-

 (h)        inter-company
Indebtedness that otherwise constitutes an Investment allowed under clauses (a), (f) or (j) of the definition of Permitted Investments; and 
 (i)        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. 

“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 Lender; 

(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 Lender 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 One Million Five Hundred Thousand Dollars ($1,500,000) in the aggregate in any calendar month; 
 (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; and 

(j)        Other Investments in an amount not exceeding Two Hundred Fifty
Thousand Dollars ($250,000) in the aggregate. 
 “Permitted Liens” are: 

(a)        Liens existing on the Effective Date and shown on the Perfection
Certificate, Liens in favor of Silicon Valley Bank or Liens 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 (including capital leases) (i) on Equipment
acquired or held by Borrower incurred for financing the acquisition of the Equipment securing no more than One Million Five Hundred Thousand 

  
 -21-

 
Dollars ($1,500,000) in the aggregate amount outstanding, or (ii) existing on Equipment when acquired, if the Lien is confined to the property and improvements and the proceeds of the
Equipment; 
 (d)        Liens of carriers, warehousemen, suppliers, or
other Persons that are possessory in nature arising in the ordinary course of business so long as such Liens attach only to Inventory and which are not delinquent or remain payable without penalty or which are being contested in good faith and by
appropriate proceedings which proceedings have the effect of preventing the forfeiture or sale of the property subject thereto; 
 (e)        Liens to secure payment of workers’ compensation, employment insurance, old-age pensions, social security and other like obligations incurred in the
ordinary course of business (other than Liens imposed by ERISA); 

(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 Lender a security interest in the underlying property unless such security interest has been released pursuant to the terms of Section 4.1; 

(h)        licenses of intellectual property permitted under
Section 7.1(d) and (e); 
 (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; and 
 (j)        Liens in favor of other financial institutions securing the customary fees and expenses of such institutions arising in connection with Borrower’s
deposit accounts or investment accounts held at such institutions, provided that Lender has a perfected security interest in the amounts held in such deposit and/or securities accounts in to the extent required by Section 6.6(b).

 “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. 

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

“Subordinated Debt” is indebtedness incurred by Borrower subordinated to all of Borrower’s now or
hereafter indebtedness to Lender (pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Lender entered into between Lender and the other creditor), on terms acceptable to Lender. 

  
 -22-

 “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. 

“SVB Loan Facility” means the Second Amended and Restated Loan and Security Agreement between Silicon
Valley Bank and Borrower dated as of on or about March 30, 2009, as it may be amended from time to time. 

“Transfer” is defined in Section 7.1. 

“Warrant” is that certain Warrant to Purchase Stock dated the Effective Date executed by Borrower in
favor of Lender. 
 [Signature page follows.] 

  
 -23-

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

			
	 BORROWER:

 
	 	
	 BLUEARC CORPORATION

 

			
	 By
	 	 /s/ Rick Martig

		
	 Name:
	 	 Rick Martig

		
	 Title:
	 	 CFO

			
	  
 LENDER:

 
	 	
	 GOLD HILL CAPITAL 2008, LP

	 By: Gold Hill Capital 2008, LLC, General
Partner

			
	  
 By
	 	 /s/ Rob Helm

		
	 Name:
	 	 Rob Helm

		
	 Title:
	 	 Managing
Director

  

											
	 Effective Date:
	 	
March 30                           
                  ,
	 	 2009
	  		  			

  
  
  

[Signature page to Loan and Security Agreement] 

 EXHIBIT A 

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

 All goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to
payment of money, leases, license agreements, franchise agreements, General Intangibles (except as provided below), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic),
cash, deposit accounts, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter
acquired, wherever located; and all Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and
replacements, products, proceeds and insurance proceeds of any or all of the foregoing. 
 Notwithstanding the
foregoing, the Collateral does not include any of the following, whether now owned or hereafter acquired: (a) more than 65% of the presently existing and hereafter arising issued and outstanding shares of capital stock owned by Borrower of any
Foreign Subsidiary which shares entitle the holder thereof to vote for directors or any other matter, or (b) any intellectual property, including without limitation, any copyright rights, copyright applications, copyright registrations and like
protections in each work of authorship and derivative work, whether published or unpublished, any patents, patent applications and like protections, including improvements, divisions, continuations, renewals, reissues, extensions, and
continuations-in-part of the same, trademarks, service marks and, to the extent permitted under applicable law, any applications therefor, whether registered or not, and the goodwill of the business of Borrower connected with and symbolized thereby,
know-how, operating manuals, trade secret rights, rights to unpatented inventions, and any claims for damage by way of any past, present, or future infringement of any of the foregoing; provided, however, the Collateral shall include all Accounts,
license and royalty fees and other revenues, proceeds, or income arising out of or relating to any of the foregoing. 
 Pursuant to the terms of a certain negative pledge arrangement with Lender, Borrower has agreed: (a) not to encumber any of its copyright rights, copyright applications, copyright registrations and
like protections in each work of authorship and derivative work, whether published or unpublished, any patents, patent applications and like protections, including improvements, divisions, continuations, renewals, reissues, extensions, and
continuations-in-part of the same, trademarks, service marks and, to the extent permitted under applicable law, any applications therefor, whether registered or not, and the goodwill of the business of Borrower connected with and symbolized thereby,
know-how, operating manuals, trade secret rights, rights to unpatented inventions, and any claims for damage by way of any past, present, or future infringement of any of the foregoing, without Lender’s prior written consent, and (b) not
to enter into any agreement, document, instrument or other arrangement (except with or in favor of Lender) with any Person or entity which directly or indirectly prohibits or has the effect of prohibiting Borrower from assigning, mortgaging,
pledging, granting a security interest in or upon, or encumbering any of Borrower’s intellectual property, without Lender’s prior written consent. 

   EXHIBIT B 
   Loan Payment/Advance Request Form 
  

			
	   Fax To:
	  	Date:                     

 

   LOAN
ADVANCE:                                        
                BLUEARC CORPORATION 
   Also
Complete Outgoing Wire Request section below for the funds from this loan advance to go through an outgoing wire. 
   To
Account
#                                         
                                
                             (Deposit Account # and Bank name)

   Amount of Growth Capital Advance
$                                         
                
  

					
		 	 All Borrower’s representations and warranties in the Loan and Security Agreement are true, correct and complete in all material respects on the date of the
request for an advance; 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. Borrower agrees to repay this Growth Capital Advance pursuant to the terms of the Loan and Security
Agreement.
	 	

  

											
		 	Authorized Signature:	 	  
	 	        Phone Number:	  	  
	  	
		 	Print Name/Title:	 	  
	 		  		  	
		 		 		 		  		  	

  

   OUTGOING WIRE REQUEST: 
   Complete only if all or a portion of funds from the loan advance above is to be wired. 
  

											
		 	 Beneficiary Name:
	 	  
	 	        Amount of Wire: $	  	  
	  	
		 	 Beneficiary Lender:
	 	  
	 	        Account Number:	  	  
	  	
		 	City and State:	 	  
	 		  		  	
				
		 	Beneficiary Lender Transit (ABA) #:
                                         
   	 	        Beneficiary Lender Code (Swift, Sort, Chip. etc.):
                	  	
		 		 		 	                (For International Wire Only)	  	

  

											
		 	 Intermediary Lender:
	 	  
	 	     Transit (ABA) #:	  	  
	  	

  

							
		 	For Further Credit to:	 	  
	  	
				
		 	Special Instruction:	 	  
	  	

  

											
		 	Authorized Signature:	 	  
	 	    Phone Number:	  	  
	  	

  

											
		 	Print Name/Title:	 	  
	 		  		  	
		 		 		 		  		  	

 EXHIBIT C 
 BORROWING RESOLUTIONS 
 CORPORATE BORROWING CERTIFICATE 

 

									
	 BORROWER:
	 	 BlueArc Corporation                
	 	DATE:	 	  
	 	

 LENDER: Gold Hill Capital 2008, LP 

I hereby certify as follows, as of the date set forth above: 

 

	 	1.	 I am the Secretary, Assistant Secretary or other officer of the Borrower. My title is as set forth below. 

 

	 	2.	 Borrower’s exact legal name is set forth above. Borrower is a corporation existing under the laws of the State of Delaware.

  

	 	3.	 Attached hereto are true, correct and complete copies of Borrower’s Articles/Certificate of Incorporation (including amendments), as filed with
the Secretary of State of the state in which Borrower is incorporated as set forth in paragraph 2 above. Such Articles/Certificate of Incorporation have not been amended, annulled, rescinded, revoked or supplemented, and remain in full force and
effect as of the date hereof. 

  

	 	4.	 The following resolutions were duly and validly adopted by Borrower’s Board of Directors at a duly held meeting of such directors (or pursuant
to a unanimous written consent or other authorized corporate action). Such resolutions are in full force and effect as of the date hereof and have not been in any way modified, repealed, rescinded, amended or revoked, and Lender may rely on them
until Lender receives written notice of revocation from Borrower. In addition, these resolutions were approved by the requisite number of holders of Borrower’s preferred stock, as set forth in Borrower’s Articles/Certificate of
Incorporation. 

 RESOLVED, that any one of the following officers or employees of
Borrower, whose names, titles and signatures are below, may act on behalf of Borrower: 
  

							
	 Name
	 	 Title
	 	 Signature
	 	 Authorized
 to Add
or
 Remove
 Signatories

	  
	 	  
	 	  
	 	
	  
	 	  
	 	  
	 	
	  
	 	  
	 	  
	 	
	  
	 	  
	 	  
	 	

 RESOLVED FURTHER, that any one of the persons designated above with
a checked box beside his or her name may, from time to time, add or remove any individuals to and from the above list of persons authorized to act on behalf of Borrower. 

RESOLVED FURTHER, that such individuals may, on behalf of Borrower: 

Borrow Money. Borrow money from Gold Hill Capital 2008, LP (“Lender”). 

Execute Loan Documents. Execute any loan documents Lender requires. 

Grant Security. Grant Lender a security interest in any of Borrower’s assets. 

  

 Negotiate Items. Negotiate or discount all drafts, trade acceptances,
promissory notes, or other indebtedness in which Borrower has an interest and receive cash or otherwise use the proceeds. 
 Issue Warrants. Issue warrants for Borrower’s capital stock. 
 Further Acts. Designate other individuals to request advances, pay fees and costs and execute other documents or agreements (including documents or agreement that waive Borrowers right to a jury
trial) they believe to be necessary to effectuate such resolutions. 
 RESOLVED FURTHER, that all acts
authorized by the above resolutions and any prior acts relating thereto are ratified. 
  

	 	5.	 The persons listed above are Borrower’s officers or employees with their titles and signatures shown next to their names.

  

			
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

*** If the Secretary, Assistant Secretary or other certifying officer executing above is designated by the resolutions
set forth in paragraph 4 as one of the authorized signing officers, this Certificate must also be signed by a second authorized officer or director of Borrower. 

I, the
                                         
        of Borrower, hereby certify as to paragraphs 1 through 5 

                         
                   [print title] 
 above, as of the date set forth above. 
  

			
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  
 -2-

 EXHIBIT D 
 COMPLIANCE CERTIFICATE 
  

			
	 TO: GOLD HILL CAPITAL 2008, LP
 FROM: BLUEARC CORPORATION
	  	Date:                     

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

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

 

					
	 Reporting Covenant
	 	Required	  	Complies
	 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 projections
	 	 Within 30 days after Board approval but
no less frequently than annually
	  	 Yes No

	 409 evaluation
	 	 Within 30 days of receipt by Borrower
	  	 Yes No

	 Most recent certificate of
incorporation,
as amended, and list of venture capital
 and strategic investors in round
	 	 Within 30 days after private equity financing
	  	 
	 10-Q, 10-K and 8-K
	 	 Within 5 days after filing with SEC
	  	 Yes No

Since the last Compliance Certificate Borrower has delivered, has Borrower changed: (i) the address of its chief
executive office, (ii) its legal name, or (iii) its state of incorporation? If so, please give details is: 

                      
                                         
                                         
                                . 

The following are the exceptions with respect to the certification above: (If no exceptions exist, state “No exceptions to
note.”) 
  

	
	  
 
	  

	  

									
	 BLUEARC CORPORATION
	 		 	 LENDER USE ONLY

					
	 By:
	 	  
	 		 	 Received by:
	  	  

	 Name:
	 	  
	 		 		  	 AUTHORIZED SIGNER

	 Title:
	 	  
	 		 	 Date:
	  	  

									
					
		 		  		 	 Verified:
	  	  

		 		  		 		  	 AUTHORIZED SIGNER

					
		 		  		 	 Date:
	  	  

				
		 		  		 	 Compliance Status: Yes     No

  
 -2-

 FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT 

THIS FIRST AMENDMENT to Loan and Security Agreement (this “Amendment”) is entered into this
     day of April, 2010, by and between Gold Hill Capital 2008, LP (“Lender”) and BlueArc Corporation, a Delaware corporation (“Borrower”) whose address is 50 Rio Robles Drive, San Jose,
California 95134. 
 RECITALS 

A.        Lender and Borrower have entered into that certain Loan and
Security Agreement dated as of March 30, 2009 (as the same may from time to time be further amended, modified, supplemented or restated, the “Loan Agreement”). 

B.        Lender has extended credit to Borrower for the purposes
permitted in the Loan Agreement. 
 C.        Borrower has
requested that Lender amend the Loan Agreement to (i) restructure the payments due on the Growth Capital Advances, and (iii) make certain other revisions to the Loan Agreement as more fully set forth herein. 

D.        Lender 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.        Amendments to Loan Agreement. 

  2.1        Section 2.1.1 (b) (Repayment).
Section 2.1.1(b) is amended in its entirety and replaced with the following: 
 (b) Repayment.
Commencing January 1, 2010 and on the first day of each successive month during the Growth Capital Interest Only Period, Borrower shall make monthly payments of accrued interest only on the Growth Capital Advance. Promptly after the First
Amendment Effective Date, Lender shall refund to Borrower the principal portion of the February 1, 2010 and March 1, 2010 payments that Borrower had made to Lender before the First Amendment Effective Date. 

Commencing on the Growth Capital Amortization Date and continuing thereafter on the first day of each successive month
thereafter through the Growth Capital Maturity Date (each, a “Growth Capital Scheduled Payment Date”), Borrower shall make thirty (30) equal monthly payments of principal and interest (each, a “Growth Capital Scheduled
Payment”) which would fully amortize the outstanding Growth Capital Advance. 
 All unpaid principal
and unpaid accrued interest is due and payable in full on the Growth Capital Maturity Date. The Growth Capital Advance may only be prepaid in accordance with Sections 2.1.1(d) and 2.1.1(e). 

  
 1 

 If Borrower fails to meet a Performance Trigger, the Growth Capital Advance shall
immediately amortize which is reflected in the definition of “Growth Capital Amortization Date.” Borrower shall advise Lender of Borrower’s compliance or noncompliance with the Performance Triggers on or before the end of each
relevant quarter and certify such results with the next then-due Compliance Certificate. 

  2.2        Section 13 (Definitions). The following terms and their
respective definitions are added in Section 13.1 in proper alphabetical order: 
 “EBITDA” shall
mean (a) Net Income, plus (b) Interest Expense, plus (c) to the extent deducted in the calculation of Net Income, depreciation expense and amortization expense, plus (d) income tax expense. 

“First Amendment” means the First Amendment to Loan and Security Agreement dated as of the First Amendment Effective
Date between Borrower and Lender. 
 “First Amendment Effective Date” means the date the First Amendment
becomes effective. 
 “First Amendment Warrant” means the Warrant to Purchase Stock issued by Borrower to
Lender dated the First Amendment Effective Date. 
 “First Performance Trigger” Borrower has not recorded
losses of EBITDA in excess of Three Million Dollars ($3,000,000) for the first quarter ending April 30, 2010. 

“Fourth Performance Trigger” Borrower has recorded EBITDA in excess of $0 for the fourth quarter ending January 31,
2011. 
 “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 Borrower, 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). 
 “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.

 “Performance Trigger” means any of the First Performance Trigger, Second Performance Trigger, Third
Performance Trigger and the Fourth Performance Trigger. 
 “Second Performance Trigger” Borrower has not
recorded losses of EBITDA in excess of Two Million Five Hundred Thousand Dollars ($2,500,000) for the second quarter ending July 31, 2010. 
 “Third Performance Trigger” Borrower has not recorded losses of EBITDA in excess of One Million Seven Hundred Fifty Thousand Dollars ($1,750,000) for the third quarter ending
October 31, 2010. 
   2.3        Section 13
(Definitions). The following terms and their respective definitions set forth in Section 13.1 are amended in their entirety and replaced with the following: 

“Growth Capital Advance Maturity Date” is the earlier of: (i) September 1, 2013, or
(ii) the thirtieth (30th) Growth Capital
Scheduled Payment Date. 
 “Growth Capital Amortization Date” means, for the Growth Capital Advance,
April 1, 2011; provided, however, (i) if Borrower does not meet the First Performance Trigger, the “Growth 

  
 2 

 
Capital Amortization Date” shall be May 1, 2010; (ii) if Borrower meets the First Performance Trigger but does not meet the Second Performance Trigger, the “Growth Capital
Amortization Date” shall be August 1, 2010; (iii) if Borrower meets the First Performance Trigger and the Second Performance Trigger but does not meet the Third Performance Trigger, the “Growth Capital Amortization Date”
shall be November 1, 2010; and (iv) if Borrower meets the First Performance Trigger, the Second Performance Trigger and the Third Performance Trigger but does not meet the Fourth Performance Trigger, the “Growth Capital Amortization
Date” shall be February 1, 2011. 

  2.4        Exhibit D (Compliance Certificate). Exhibit
D, the Compliance Certificate, is amended in its entirety and replaced with Exhibit A to the First Amendment. 

3.   Limitation of Amendments. 

3.1        The amendments set forth in Section 2 above are
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 Lender 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. 

4.   Representations and Warranties. To induce Lender to enter into this Amendment, Borrower
hereby represents and warrants to Lender 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 Lender
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; 
 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 

  
 3 

 
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.        Fees. Borrower shall pay to Lender:  

5.1        Restructuring Fee. Borrower shall pay Lender a fully
earned, non-refundable restructuring fee of Thirty Seven Thousand Five Hundred Dollars ($37,500) (the “Restructuring Fee”) which shall be due and payable on the First Amendment Effective Date. 

5.2        Lender Expenses. All Lender Expenses (including
reasonable attorneys’ fees and reasonable expenses for documentation and negotiation of this Amendment) incurred through and after the date of this Amendment, when due. 

6.        No Defenses; General Release. Borrower by its execution of this
Amendment, hereby declares that it has no set-offs, counterclaims, defenses or other causes of action against Lender arising out of the Credit Extensions, the modification of the Credit Extensions, any documents mentioned herein or otherwise; and,
to the extent any such setoffs, counterclaims, defenses or other causes of action may exist, whether known or unknown, such items are hereby waived by Borrower. As of the date hereof, for valuable consideration, the receipt of which is hereby
acknowledged, Borrower hereby, for itself, its officers, its employees, affiliates, partners, agents, successors, administrators and assigns, releases, acquits and forever discharges Lender, its past or present directors, managers, officers,
employees, agents, affiliates, attorneys, shareholders, successors and assigns (“Released Parties”), and each of them, separately and collectively, of and from any and all claims, actions, causes of action, counterclaims,
liabilities, suits, debts, offsets, setoffs, losses, liens, demands, rights, obligations, damages, costs, attorneys’ fees, interest, loss of service, expenses and compensation, known or unknown, fixed or contingent, and defenses of every nature
and kind whatsoever (“Claims”), which Borrower might have had in the past, or now has, including, without limitation, any Claims relating to and in any way connected with: the Loan Agreement or the other Loan Documents as in effect
prior to the date of this Amendment, all related agreements thereto, and the lending relationship between Borrower and the Released Parties as of the date hereof, except for claims arising under this Amendment, the transactions contemplated hereby,
and/or arising from the Loan Agreement and/or the other Loan Documents from and after the date of this Amendment. 
 Furthermore, Borrower further agrees never to commence, aid or participate in, either directly or indirectly (except to the extent required by order or legal process issued by a court or governmental
agency of competent jurisdiction) any legal action, defense or other proceeding based in whole or in part hereof on the foregoing released claims. 
 Borrower expressly understands and acknowledges that it is possible that unknown losses or Claims exist or that present losses or Claims may have been understated in amount or severity, and it explicitly
took that into account in determining the consideration to be given for this release, and a portion of said consideration and the mutual covenants contained herein, having been bargained for between the parties with the knowledge of the possibility
of such unknown Claims, were given in exchange for a full accord, satisfaction and discharge of all such Claims. Consequently, in furtherance of this general release, Borrower acknowledges and waives the benefits of California Civil Code section
1542 (and all similar ordinances and statutory, regulatory, or judicially created laws or rules of any jurisdiction) which provides: 
 A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY
AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 

  
 4 

 Borrower agrees that the agreements contained herein are intended to be in full satisfaction
of any alleged injuries or damages of Borrower. Borrower has consulted with legal counsel prior to signing this release or has had an opportunity to obtain such counsel and knowingly chose not to do so, and executes such release voluntarily with the
intention of fully and finally extinguishing all disputes between the parties hereto. Borrower acknowledges that it is relying on no written or oral agreement, representation or understanding of any kind made by Lender or any employee, attorney or
agent of Lender. 
 7.        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. 
 8.        Effectiveness. This Amendment shall be deemed effective upon the occurrence of all of the following (the “First Amendment Effective
Date”): 
 (a)        the due execution and delivery to Lender
of this Amendment by each party hereto; 
 (b)        Borrower shall
have delivered its duly executed original signature to the First Amendment Warrant in the form provided by Lender; 
 (c)        Borrower shall have paid the Restructuring Fee and Lender Expenses then due; 

(d)        Lender shall have received certified copies, dated as of a recent
date, of financing statement searches, as Lender shall request, accompanied by written evidence (including any UCC termination statements) that the Liens indicated in any such financing statements either constitute Permitted Liens or have been
terminated or released; and 
 (e)        Lender shall have received
good standing certificates of Borrower certified by the Secretary of State of the States of California and Delaware as of a date no earlier than thirty (30) days prior to the date of this Amendment. 

9.        Amendments in Writing; Integration. This Amendment is a Loan
Document. This Amendment 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 Amendment and the Loan Documents merge into this Amendment and the Loan Documents. 
 10.        Governing Law; Venue. The provisions of Section 11 of the Loan Agreement apply to this Amendment. 

[SIGNATURE PAGE FOLLOWS] 

  
 5 

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

									
	 LENDER
	 		  	 BORROWER

			
	 Gold Hill Capital 2008, LP
	 		  	 BlueArc Corporation

	 By:
	 	 Gold Hill Capital 2008, LLC,

General Partner
	 		  		  	

									
					
		 		 		  	 By:
	  	
		 		 		  	 Name:
	  	 /s/ Rick Martig

	 By:
	 		 		  	 Title: 
	  	 CFO

	 Name:
	 	 /s/ Rob Helm
	 		  		  	
	 Title: 
	 	 Managing Director
	 		  		  	

  
 6 

 EXHIBIT D 

COMPLIANCE CERTIFICATE 
  

					
	 TO:      GOLD HILL CAPITAL 2008, LP
	 		  	 Date:
                                         
           

	FROM:    BLUEARC CORPORATION	 		  	

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

					
	Reporting Covenant	  	Required	  	      
      Complies            
	  	  	  	  	  
	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 projections	  	 Within 30 days after Board approval
 but no less frequently than annually
	  	Yes    No
	409 evaluation	  	Within 30 days of receipt by Borrower	  	Yes    
No
	Most recent certificate of incorporation, as amended, and list of venture capital and
strategic investors in round	  	Within 30 days after private equity financing	  	 
	10-Q, 10-K and 8-K	  	Within 5 days after filing with SEC	  	Yes    No

Since the last Compliance Certificate Borrower has delivered, has Borrower changed: (i) the address of its chief executive office, (ii) its
legal name, or (iii) its state of incorporation? If so, please give details is: 

                         
                                         
                                         
                                 . 

 

					
	Performance Triggers	  	      
      Complies            
	  	 	  	  	  
	First Performance Trigger	 	EBITDA > ($3,000,000) for quarter ending April 30, 2010	  	Yes    
No
	Second Performance Trigger	 	EBITDA > ($2,500,000) for quarter ending July 31, 2010	  	Yes    No
	Third Performance Trigger	 	EBITDA > ($1,750,000) for quarter ending October 31, 2010	  	Yes    
No
	Fourth Performance Trigger        
    	 	EBITDA > $0 for quarter ending January 31, 2011	  	Yes    No

The following Performance Trigger analysis and information set forth in Schedule 1 attached hereto are true and accurate as of the date of this
Certificate. 

  
 7 

 The following are the exceptions with respect to the certification above: (If no exceptions exist, state
“No exceptions to note.”) 
  
  

 
  
  

 
  

					
	  
 	 	  	 	  

  

									
		 	 BLUEARC CORPORATION
	  	LENDER USE ONLY	 	
				
		 	 By:
                                         
                   
	  	 Received by:
                                         
                                   
	 	
		 	 Name:
                                         
              
	  		  	                 AUTHORIZED SIGNER
	 	
		 	 Title:
                                         
                
	  	 Date:
                                         
                                         
       
	 	
				
		 		  	 Verified:
                                         
                                         
  
	 	
		 		  		  	                 AUTHORIZED SIGNER
	 	
		 		  	 Date:
                                         
                                         
        
	 	
					
		 		  	 Compliance Status:
	  	
                              
      Yes    No
	 	

  
 8 

 Schedule 1 to Compliance Certificate 

Performance Triggers of Borrower 
 In the event of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern. 
 Dated:                      

 

	I.	 EBITDA  

Required:             See chart below 

 

			
	 	 	Performance
Triggers
	 First Performance
Trigger
	 	 EBITDA > ($3,000,000) for quarter ending April 30,
2010

	 Second Performance
Trigger
	 	 EBITDA > ($2,500,000) for quarter ending July 31,
2010

	 Third Performance
Trigger
	 	 EBITDA > ($1,750,000) for quarter ending October 31,
2010

	 Fourth Performance
Trigger
	 	 EBITDA > $0 for quarter ending January 31,
2011

 Actual: 
  

							
	A.	  	 Net Income of Borrower for quarter
	  	 	$                  	  
			
	B.	  	 To the extent included in the determination of Net Income
	  			
			
		  	 1.      The provision for income taxes for quarter
	  	 	$                  	  
			
		  	 2.      Depreciation expense for quarter
	  	 	$                  	  
			
		  	 3.      Amortization expense for quarter
	  	 	$                  	  
			
		  	 4.      Net Interest Expense for quarter
	  	 	$                  	  
			
		  	 5.      All other charges which are both non-cash and non-recurring for
quarter
	  	 	$                  	  
			
		  	 6.      All non-cash income for quarter
	  	 	$                  	  
			
		  	 7.      The sum of lines 1 through 5 minus line 6
	  	 	$                  	  
			
	C.	  	 EBITDA (line A plus line B.7)
	  			
		  		  	 	 	 

 Is line C equal to or greater than corresponding Performance Trigger? 

                 No, not in
compliance
                                         
                        Yes, in compliance 

  
 9 

 SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT 

THIS SECOND AMENDMENT to Loan and Security Agreement (this “Amendment”) is entered into this 26th day of January,
2011 (the “Second Amendment Effective Date”) by and between Gold Hill Capital 2008, LP (“Lender”) and BlueArc Corporation, a Delaware corporation (“Borrower”) whose address is 50 Rio Robles Drive,
San Jose, California 95134. 
 RECITALS 

A.        Lender and Borrower have entered into that certain Loan and Security Agreement dated as
of March 30, 2009, as amended by that certain First Amendment to Loan and Security Agreement dated as of April     , 2010 (as the same may from time to time be further amended, modified, supplemented or restated,
the “Loan Agreement”). 
 B.        Lender has extended credit to
Borrower for the purposes permitted in the Loan Agreement. 
 C.        Borrower has
requested that Lender amend the Loan Agreement to (i) restructure the payments due on the Growth Capital Advances, and (iii) make certain other revisions to the Loan Agreement as more fully set forth herein. 

D.        Lender 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.      Amendments to
Loan Agreement. 
 2.1        Section 2.1.1 (b) (Repayment).
Section 2.1.1(b) is amended in its entirety and replaced with the following: 

(b)        Repayment. Commencing January 1, 2011 and on the first day of each
successive month during the Growth Capital Interest Only Period, Borrower shall make monthly payments of accrued interest only on the Growth Capital Advance. 
 Commencing on the Growth Capital Amortization Date and continuing thereafter on the first day of each successive month thereafter through the Growth Capital Maturity Date (each, a “Growth Capital
Scheduled Payment Date”), Borrower shall make thirty (30) equal 

 
monthly payments of principal and interest (each, a “Growth Capital Scheduled Payment”) which would fully amortize the outstanding Growth Capital Advance. 

All unpaid principal and unpaid accrued interest is due and payable in full on the Growth Capital Maturity Date. The Growth Capital
Advance may only be prepaid in accordance with Sections 2.1.1(d) and 2.1.1(e). 
 If Borrower fails to meet a
Performance Trigger, the Growth Capital Advance shall amortize in accordance with the definition of “Growth Capital Amortization Date.” Borrower shall advise Lender of Borrower’s compliance or noncompliance with the relevant
Performance Trigger on or before the end of the third week after the end of each relevant quarter and certify such results with the next then-due Compliance Certificate. To the extent that Borrower fails to meet a Performance Trigger and Borrower
made an interest-only payment on the Growth Amortization Date rather than the first Growth Capital Scheduled Payment, Borrower, on the then next Growth Capital Scheduled Payment Date, shall pay the incremental principal and interest portion of the
first Growth Capital Scheduled Payment in addition to making the second Growth Capital Scheduled Payment on the second Growth Capital Scheduled Payment Date. 
 2.2        Section 2.2(a) (Interest Rate). Section 2.2(a) is amended in its entirety and replaced with the following: 

(a)        Interest Rate. Subject to Section 2.2(b), the principal amount
outstanding under the Growth Capital Advance shall accrue interest, which interest shall be payable monthly, at a fixed per annum rate equal to: 
 (i)        from the Funding Date through December 31, 2010, twelve percent (12%); 
 (ii)       from January 1, 2011 through December 31, 2011, eleven percent (11%); and 
 (iii)      from January 1, 2012 and thereafter: 
   (1)        if Borrower has not fully satisfied each Performance Trigger, eleven percent (11%); or 

  (2)        if Borrower has fully satisfied each Performance Trigger, nine and
one-half percent (9.5%). 
   2.3       Section 13 (Definitions). The
following terms and their respective definitions are added in Section 13.1 in proper alphabetical order: 
 “Second
Amendment” means the Second Amendment to Loan and Security Agreement dated as of the Second Amendment Effective Date between Borrower and Lender. 
 “Second Amendment Effective Date” is defined in the Second Amendment. 

  
 -2-

 “Second Amendment Warrant” means the Warrant to Purchase Stock issued by
Borrower to Lender dated the Second Amendment Effective Date. 
 2.4        
Section 13 (Definitions). The following terms and their respective definitions set forth in Section 13.1 are amended in their entirety and replaced with the following: 

“First Performance Trigger” Borrower’s EBITDA shall be greater than negative Two Million Seven Hundred Fifty
Thousand Dollars ($2,750,000) for the fiscal quarter ending April 30, 2011. 
 “Growth Capital Advance Maturity
Date” is the earlier of: (i) June 1, 2014, or (ii) the thirtieth (30th) Growth Capital Scheduled Payment Date. 
 “Growth Capital
Amortization Date” means, for the Growth Capital Advance, January 1, 2012; provided, however, (i) if Borrower does not meet the First Performance Trigger, the “Growth Capital Amortization Date” shall be
May 1, 2011; (ii) if Borrower meets the First Performance Trigger but does not meet the Second Performance Trigger, the “Growth Capital Amortization Date” shall be August 1, 2011; and (iii) if Borrower meets the First
Performance Trigger and the Second Performance Trigger but does not meet the Third Performance Trigger, the “Growth Capital Amortization Date” shall be November 1, 2011. 

“Performance Trigger” means any of the First Performance Trigger, Second Performance Trigger and the Third Performance
Trigger. 
 “Second Performance Trigger” Borrower’s EBITDA shall be greater than negative Two Million
Dollars ($2,000,000) for the fiscal quarter ending July 31, 2011. 
 “Third Performance Trigger”
Borrower’s EBITDA shall be greater than negative One Million Dollars ($1,000,000) for the fiscal quarter ending October 31, 2011. 
 2.5         Exhibit D (Compliance Certificate). Exhibit D, the Compliance Certificate, is amended in its entirety and replaced with Exhibit A
to the Second Amendment. 
 3.      Limitation of Amendments. 

3.1        The amendments set forth in Section 2 above are 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 Lender 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-

 4.      Representations and Warranties. To induce
Lender to enter into this Amendment, Borrower hereby represents and warrants to Lender 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 previously delivered to Lender 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 material 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; 

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.      Fees.
Borrower shall pay to Lender: 
 5.1        Second Amendment Restructuring Fee.
Borrower shall pay Lender a fully earned, non-refundable restructuring fee of Thirty Seven Thousand Five Hundred Dollars ($37,500) (the “Second Amendment Restructuring Fee”) which shall be due and payable on the Second Amendment
Effective Date. 

  
 -4-

 5.2        Lender Expenses. All Lender
Expenses (including reasonable attorneys’ fees and reasonable expenses for documentation and negotiation of this Amendment) incurred through and after the date of this Amendment, when due. 

6.      First Amendment Warrant. The parties agree that Borrower met the several performance
triggers defined in the First Amendment Warrant and, accordingly, the “Number of Shares” under the First Amendment Warrant is 174,371. 
 7.      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. 
 8.      Effectiveness. This Amendment shall be deemed effective as
of the Second Amendment Effective Date upon the occurrence of all of the following: 

(a)        the due execution and delivery to Lender of this Amendment by each party hereto;

 (b)        Borrower shall have delivered its duly executed original signature to the
Second Amendment Warrant in the form provided by Lender; and 
 (c)        Borrower
shall have paid the Second Amendment Restructuring Fee and Lender Expenses then due. 

9.      Amendments in Writing; Integration. This Amendment is a Loan Document. This Amendment 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 Amendment and the Loan Documents merge into this Amendment and the Loan Documents. 

10.    Governing Law; Venue. The provisions of Section 11 of the Loan Agreement apply to this Amendment.

 [SIGNATURE PAGE FOLLOWS] 

  
 -5-

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

									
	 LENDER
	 		 	BORROWER
			
	 Gold Hill Capital 2008, LP
	 		 	BlueArc Corporation
	 By:  Gold Hill Capital 2008, LLC,
	 		 		 	
	         General Partner
	 		 		 	
			
	 By:  /s/ Rob Helm
	 		 	By:  /s/ Rick Martig
	 Name:
	 	 Rob Helm
	 		 	Name:	 	 Rick Martig

	 Title:
	 	 Partner
	 		 	Title:	 	 CFO

 EXHIBIT D 
 COMPLIANCE CERTIFICATE 
  

			
	 TO:        GOLD HILL CAPITAL 2008, LP
 FROM:  BLUEARC CORPORATION
	  	Date:
                                    

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

							
	
Reporting Covenant
	 	 	  	Required	  	Complies
	 	 	 	 
	 	 		  		  	 
	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 projections	 	 	  	Within 30 days after Board approval but no less frequently than annually	  	 Yes No

	409 evaluation	 	 	  	Within 30 days of receipt by Borrower	  	 Yes No

	Most recent certificate of incorporation, as amended, and list of venture capital and strategic
investors in round	 	 	  	Within 30 days after private equity financing	  	 
	10-Q, 10-K and 8-K	 	 	  	Within 5 days after filing with SEC	  	 Yes No

Since the last Compliance Certificate Borrower has delivered, has Borrower changed: (i) the address of its chief executive office, (ii) its
legal name, or (iii) its state of incorporation? If so, please give details is: 

                      
                                         
                                         
                                     . 

 

					
	 	  	Performance Triggers	  	Complies
	 First Performance Trigger
	  	 EBITDA > ($2,750,000) for quarter ending April 30, 2011
	  	Yes No
	 Second Performance Trigger
	  	 EBITDA > ($2,000,000) for quarter ending July 31, 2011
	  	Yes No
	 Third
Performance Trigger
	  	 EBITDA > ($1,000,000) for quarter ending October 31, 2011
	  	Yes No

The following Performance Trigger analysis and information set forth in Schedule 1 attached hereto are true and accurate as of the date of this
Certificate. 

 The following are the exceptions with respect to the certification above: (If no exceptions
exist, state “No exceptions to note.”) 
  
  

 
  
  

 
  

							
		 	 BLUEARC CORPORATION
	 	LENDER USE ONLY
			
		 	 By:
                                         
                   
	 	 Received by:
                                         
                                         
      

		 	 Name:
                                         
              
	 		  	
                            AUTHORIZED
SIGNER

		 	 Title:
                                         
                
	 	 Date:
                                         
                                         
                   

			
		 		 	 Verified:
                                         
                                         
              

		 		 		  	
                            AUTHORIZED
SIGNER

		 		 	 Date:
                                         
                                         
                    

				
		 		 	 Compliance Status:
	  	
                              
                  Yes    No

  
 -2-

 Schedule I to Compliance Certificate 

Performance Triggers of Borrower 
 In the event of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern. 
 Dated:
                                     

I.                EBITDA 

Required:                 See chart below 

 

			
	 	  	Performance Triggers
	 First Performance Trigger
	  	EBITDA > ($2,750,000) for quarter ending April 30, 2011
	 Second Performance Trigger
	  	EBITDA > ($2,000,000) for quarter ending July 31, 2011
	 Third
Performance Trigger
	  	EBITDA > ($1,000,000) for quarter ending
October 31, 2011

 Actual: 
  

					
	A.	  	Net Income of Borrower for quarter	  	 $                  

			
	B.	  	 To the extent included in the determination of Net Income
	  	
			
		  	 1.      The provision for income taxes for quarter
	  	 $                  

			
		  	 2.      Depreciation expense for quarter
	  	 $                  

			
		  	 3.      Amortization expense for quarter
	  	 $                  

			
		  	 4.      Net Interest Expense for quarter
	  	 $                  

			
		  	 5.      R&D tax credits for quarter
	  	 $                  

			
		  	 6.      Stock based compensation for quarter
	  	 $                  

			
		  	 7.      Mark to market of warrants for quarter
	  	 $                  

			
		  	 8.      All other charges which are non-cash for quarter
	  	 $                  

			
		  	 9.      All non-cash income for quarter
	  	 $                  

			
	 10.
	  	The sum of lines 1 through 8 minus line 9	  	 $                  

 

	C.	EBITDA (line A plus line B.10) 

 Is line C equal
to or greater than corresponding Performance Trigger? 

                 No, not in
compliance
                                         
                        Yes, in compliance

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