Document:

exv4w2

 

Exhibit 4.2

ARUBA WIRELESS NETWORKS, INC.

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

Initial Closing: September 6, 2005

Subsequent Closing: September 30, 2005

Second Subsequent Closing: September 30, 2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	1. Registration Rights
	 	 	1	 
	 
	 	 	 	 
	1.1 Definitions
	 	 	1	 
	 
	 	 	 	 
	1.2 Request for Registration
	 	 	2	 
	 
	 	 	 	 
	1.3 Company Registration
	 	 	4	 
	 
	 	 	 	 
	1.4 Form S-3 Registration
	 	 	5	 
	 
	 	 	 	 
	1.5 Obligations of the Company
	 	 	6	 
	 
	 	 	 	 
	1.6 Information from Holder
	 	 	8	 
	 
	 	 	 	 
	1.7 Expenses of Registration
	 	 	9	 
	 
	 	 	 	 
	1.8 Delay of Registration
	 	 	9	 
	 
	 	 	 	 
	1.9 Indemnification
	 	 	9	 
	 
	 	 	 	 
	1.10 Reports Under the 1934 Act
	 	 	11	 
	 
	 	 	 	 
	1.11 Assignment of Registration Rights
	 	 	12	 
	 
	 	 	 	 
	1.12 Limitations on Subsequent Registration Rights
	 	 	12	 
	 
	 	 	 	 
	1.13
“Market Stand-Off” Agreement
	 	 	13	 
	 
	 	 	 	 
	1.14 Termination of Registration Rights
	 	 	14	 
	 
	 	 	 	 
	2. Covenants of the Company
	 	 	14	 
	 
	 	 	 	 
	2.1 Delivery of Financial Statements
	 	 	14	 
	 
	 	 	 	 
	2.2 Inspection
	 	 	15	 
	 
	 	 	 	 
	2.3 Termination of Covenants
	 	 	15	 
	 
	 	 	 	 
	2.4 Right of First Offer
	 	 	15	 
	 
	 	 	 	 
	2.5 Proprietary Information and Inventions Agreements
	 	 	17	 
	 
	 	 	 	 
	2.6 Employee Agreements
	 	 	17	 
	 
	 	 	 	 
	2.7 Compensation Committee
	 	 	17	 
	 
	 	 	 	 
	2.8 Qualified Small Business Stock Status
	 	 	17	 
	 
	 	 	 	 
	2.9 Observer Rights
	 	 	17	 
	 
	 	 	 	 
	2.10 Director Meetings
	 	 	19	 
	 
	 	 	 	 
	3. Miscellaneous
	 	 	19	 
	 
	 	 	 	 
	3.1 Successors and Assigns
	 	 	19	 
	 
	 	 	 	 
	3.2 Governing Law
	 	 	19	 
	 
	 	 	 	 
	3.3 Counterparts
	 	 	19	 
	 
	 	 	 	 
	3.4 Titles and Subtitles
	 	 	19	 
	 
	 	 	 	 
	3.5 Notices
	 	 	19	 
	 
	 	 	 	 
	3.6 Expenses
	 	 	19	 
	 
	 	 	 	 
	3.7 Entire Agreement; Amendments and Waivers
	 	 	19	 
	 
	 	 	 	 
	3.8 Severability
	 	 	20	 
	 
	 	 	 	 
	3.9 Aggregation of Stock
	 	 	21	 
	 
	 	 	 	 
	3.10 Additional Investors
	 	 	21	 
	 
	 	 	 	 
	3.11 Amendment and Restatement of Prior Agreement
	 	 	21	 

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AMENDED AND RESTATED

INVESTORS’ RIGHTS AGREEMENT

          THIS AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT (the “Agreement”) is made as of the 6th
day of September, 2005, by and among Aruba Wireless Networks, Inc., a Delaware corporation (the
“Company”), and the investors listed on Schedule A hereto, each of which is herein referred
to as an “Investor.”

RECITALS

          WHEREAS, certain of the Investors (the “Existing Investors”) hold shares of the Company’s
Series A Preferred Stock (the “Series A Preferred Stock”) and/or Series B Preferred Stock (the
“Series B Preferred Stock”) and/or Series C Preferred Stock (the “Series C Preferred Stock”) and/or
shares of Common Stock issued upon conversion thereof, and possess registration rights, information
rights, rights of first offer and other rights pursuant to an Amended and Restated Investors’
Rights Agreement dated as of June 24, 2004 by and among the Company and such Existing Investors
(the “Prior Agreement”);

          WHEREAS, the Prior Agreement may be amended, and any provision therein waived, with the
consent of the Company and the holders of a majority of the outstanding Registrable Securities (as
such term is defined in the Prior Agreement);

          WHEREAS, the Existing Investors as holders of a majority of the outstanding Registrable
Securities (as such term is defined in the Prior Agreement) of the Company desire to amend and
restate the Prior Agreement and to accept the rights created pursuant hereto in lieu of the rights
granted to them under the Prior Agreement; and

          WHEREAS, certain Investors are parties to the Series D Preferred Stock Purchase Agreement of
even date herewith by and among the Company and certain of the Investors (the “Series D
Agreement”), which provides that as a condition to the closing of the sale of the Series D
Preferred Stock (the “Series D Preferred Stock” and, collectively with the Series A Preferred
Stock, the Series B Preferred Stock and the Series C Preferred Stock, the “Preferred Stock”), this
Agreement must be executed and delivered by such Investors, Existing Investors holding a majority
of the outstanding Registrable Securities (as such term is defined in the Prior Agreement) of the
Company and the Company.

          NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, the
Existing Investors and the Company hereby agree that the Prior Agreement shall be superseded and
replaced in its entirety by this Agreement, and the parties hereto further agree as follows:

          1. Registration Rights. The Company covenants and agrees as follows:

               1.1 Definitions. For purposes of this Section 1:

                    (a) The term “Act” means the Securities Act of 1933, as amended.

 

 

                    (b) The term “Form S-3” means such form under the Act as in effect on the date hereof or any
registration form under the Act subsequently adopted by the SEC that permits inclusion or
incorporation of substantial information by reference to other documents filed by the Company with
the SEC.

                    (c) The term “Holder” means any person owning or having the right to acquire Registrable
Securities or any assignee thereof in accordance with Section 1.11 hereof.

                    (d) The term “Initial Offering” means the Company’s first firm commitment underwritten public
offering of its Common Stock pursuant to a registration statement on Form S-1 (or any successor
registration form) under the Act, with gross offering proceeds of not less than $20,000,000 in the
aggregate.

                    (e) The term “1934 Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated thereunder.

                    (f) The terms “register,” “registered,” and “registration” refer to a registration effected by
preparing and filing a registration statement or similar document in compliance with the Act, and
the declaration or ordering of effectiveness of such registration statement or document.

                    (g) The term “Registrable Securities” means (i) the Common Stock issuable or issued upon
conversion of the Preferred Stock, and (ii) any Common Stock of the Company issued as (or issuable
upon the conversion or exercise of any warrant, right or other security that is issued as) a
dividend or other distribution with respect to, or in exchange for, or in replacement of, the
shares referenced in (i) above, excluding in all cases, however, any Registrable Securities sold by
a person in a transaction in which his rights under this Section 1 are not assigned.

                    (h) The number of shares of “Registrable Securities” outstanding shall be determined by the
number of shares of Common Stock outstanding that are, and the number of shares of Common Stock
issuable pursuant to then exercisable or convertible securities that are, Registrable Securities.

                    (i) The term “Rule 144” shall mean Rule 144 under the Act.

                    (j) The term “Rule 144(k)” shall mean subsection (k) of Rule 144 under the Act.

                    (k) The term “SEC” shall mean the Securities and Exchange Commission.

               1.2 Request for Registration.

                    (a) Subject to the conditions of this Section 1.2, if the Company shall receive at any time
after the earlier of (i) three (3) years after the date of this Agreement or (ii) six (6) months
after the effective date of the Initial Offering, a written request

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from the Holders of fifty percent (50%) or more of the Registrable Securities then outstanding (for purposes of this Section
1.2, the “Initiating Holders”) that the Company file a registration statement under the Act
covering the registration of Registrable Securities with an anticipated aggregate offering price of
at least $10,000,000, then the Company shall, within ten (10) days of the receipt thereof, give
written notice of such request to all Holders, and subject to the limitations of this Section 1.2,
use all commercially reasonable efforts to effect, as soon as practicable, the registration under
the Act of all Registrable Securities that the Holders request to be registered in a written
request received by the Company within twenty (20) days of the mailing of the Company’s notice
pursuant to this Section 1.2(a).

                    (b) If the Initiating Holders intend to distribute the Registrable Securities covered by their
request by means of an underwriting, they shall so advise the Company as a part of their request
made pursuant to this Section 1.2 and the Company shall include such information in the written
notice referred to in Section 1.2(a). In such event the right of any Holder to include its
Registrable Securities in such registration shall be conditioned upon such Holder’s participation
in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting
(unless otherwise mutually agreed by a majority in interest of the Initiating Holders and such
Holder) to the extent provided herein. All Holders proposing to distribute their securities
through such underwriting shall enter into an underwriting agreement in customary form with the
underwriter or underwriters selected for such underwriting by the Company (which underwriter or
underwriters shall be reasonably acceptable to a majority in interest of the Initiating Holders).
Notwithstanding any other provision of this Section 1.2, if the underwriter advises the Company
that marketing factors require a limitation of the number of securities underwritten (including
Registrable Securities), then the Company shall so advise all Holders of Registrable Securities
that would otherwise be underwritten pursuant hereto, and the number of shares that may be included
in the underwriting shall be allocated to the Holders of such Registrable Securities on a pro rata
basis based on the number of Registrable Securities held by all such Holders (including the
Initiating Holders). In no event shall any Registrable Securities be excluded from such
underwriting unless all other securities are first excluded. Any Registrable Securities excluded
or withdrawn from such underwriting shall be withdrawn from the registration.

                    (c) The Company shall not be required to effect a registration pursuant to this Section 1.2:

                         (i) in any particular jurisdiction in which the Company would be required to execute a general
consent to service of process in effecting such registration, unless the Company is already subject to service in such jurisdiction and except
as may be required under the Act; or

                         (ii) after the Company has effected two (2) registrations pursuant to this Section 1.2, and
such registrations have been declared or ordered effective; or

                         (iii) during the period starting with the date sixty (60) days prior to the Company’s good
faith estimate of the date of the filing of, and ending on a date one hundred eighty (180) days
following the effective date of, a Company-initiated registration

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subject to Section 1.3 below, provided that the Company is actively employing in good faith all commercially reasonable efforts
to cause such registration statement to become effective; or

                         (iv) if the Initiating Holders propose to dispose of Registrable Securities that may be
registered on Form S-3 pursuant to Section 1.4 hereof; or

                         (v) if the Company shall furnish to Holders requesting a registration statement pursuant to
this Section 1.2, a certificate signed by the Company’s Chief Executive Officer or Chairman of the
Board stating that in the good faith judgment of the Board of Directors of the Company, it would be
seriously detrimental to the Company and its stockholders for such registration statement to be
effected at such time, in which event the Company shall have the right to defer such filing for a
period of not more than one hundred twenty (120) days after receipt of the request of the
Initiating Holders, provided that such right shall be exercised by the Company not more than once
in any twelve (12)-month period.

               1.3 Company Registration.

                    (a) If the Company proposes to register (including for this purpose a registration effected
pursuant to Section 1.2 or by the Company for stockholders other than the Holders) any of its stock
or other securities under the Act in connection with the public offering of such securities (other
than a registration relating solely to the sale of securities to participants in a Company stock
plan, a registration relating to a corporate reorganization or transaction under Rule 145 of the
Act, a registration on any form that does not include substantially the same information as would
be required to be included in a registration statement covering the sale of the Registrable
Securities, or a registration in which the only Common Stock being registered is Common Stock
issuable upon conversion of debt securities that are also being registered), the Company shall, at
such time, promptly give each Holder written notice of such registration. Upon the written request
of each Holder given within twenty (20) days after mailing of such notice by the Company in
accordance with Section 3.5, the Company shall, subject to the provisions of Section 1.3(c), use
all commercially reasonable efforts to cause to be registered under the Act all of the Registrable
Securities that each such Holder has requested to be registered.

                    (b) Right to Terminate Registration. The Company shall have the right to terminate or
withdraw any registration initiated by it under this Section 1.3 prior to the effectiveness of such
registration whether or not any Holder has elected to include securities in such registration. The expenses of such withdrawn registration shall be borne by the
Company in accordance with Section 1.7 hereof.

                    (c) Underwriting Requirements. In connection with any offering involving an
underwriting of shares of the Company’s capital stock, the Company shall not be required under this
Section 1.3 to include any of the Holders’ securities in such underwriting unless they accept the
terms of the underwriting as agreed upon between the Company and the underwriters selected by it
(or by other persons entitled to select the underwriters) and enter into an underwriting agreement
in customary form with such underwriters, and then only in such quantity as the underwriters
determine in their sole discretion will not jeopardize the success of the offering by the Company.
If the total amount of securities,

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including Registrable Securities, requested by stockholders to
be included in such offering exceeds the amount of securities sold other than by the Company that
the underwriters determine in their sole discretion is compatible with the success of the offering,
then the Company shall be required to include in the offering only that number of such securities,
including Registrable Securities, that the underwriters determine in their sole discretion will not
jeopardize the success of the offering. In no event shall any Registrable Securities be excluded
from such offering unless all other stockholders’ securities are first excluded. In the event that
the underwriters determine that less than all of the Registrable Securities requested to be
registered can be included in such offering, then the Registrable Securities that are included in
such offering shall be apportioned pro rata among the selling Holders based on the number of
Registrable Securities held by all selling Holders or in such other proportions as shall mutually
be agreed to by all such selling Holders. Notwithstanding the foregoing, in no event shall the
amount of securities of the selling Holders included in the offering be reduced below twenty-five
percent (25%) of the total amount of securities included in such offering, unless such offering is
the initial public offering of the Company’s securities, in which case the selling Holders may be
excluded if the underwriters make the determination described above and no other stockholder’s
securities are included. For purposes of the preceding sentence concerning apportionment, for any
selling stockholder that is a Holder of Registrable Securities and that is a venture capital or
other investment fund, partnership or corporation, the affiliated venture capital or other
investment funds, partners, retired partners and stockholders of such Holder, or the estates and
family members of any such partners and retired partners and any trusts for the benefit of any of
the foregoing persons shall be deemed to be a single “selling Holder,” and any pro rata reduction
with respect to such “selling Holder” shall be based upon the aggregate amount of Registrable
Securities owned by all such related entities and individuals.

               1.4 Form S-3 Registration. In case the Company shall receive from the Holders of at
least fifty percent (50%) of the Registrable Securities (for purposes of this Section 1.4, the
“Initiating Holders”) a written request or requests that the Company effect a registration on Form
S-3 and any related qualification or compliance with respect to all or a part of the Registrable
Securities owned by such Holder or Holders, the Company shall:

                    (a) promptly give written notice of the proposed registration, and any related qualification
or compliance, to all other Holders; and

                    (b) use all commercially reasonable efforts to effect, as soon as practicable, such
registration and all such qualifications and compliances as may be so requested and as would permit
or facilitate the sale and distribution of all or such portion of such Holders’ Registrable
Securities as are specified in such request, together with all or such portion of the Registrable
Securities of any other Holders joining in such request as are specified in a written request given
within fifteen (15) days after receipt of such written notice from the Company, provided, however,
that the Company shall not be obligated to effect any such registration, qualification or
compliance, pursuant to this section 1.4:

                         (i) if Form S-3 is not available for such offering by the Holders;

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                         (ii) if the Holders, together with the holders of any other securities of the Company entitled
to inclusion in such registration, propose to sell Registrable Securities and such other securities
(if any) at an aggregate price to the public (net of any underwriters’ discounts or commissions) of
less than $3,000,000;

                         (iii) if the Company shall furnish to Holders requesting a registration statement pursuant to
this Section 1.4, a certificate signed by the Company’s Chief Executive Officer or Chairman of the
Board stating that in the good faith judgment of the Board of Directors of the Company, it would be
seriously detrimental to the Company and its stockholders for such registration statement to be
effected at such time, in which event the Company shall have the right to defer such filing for a
period of not more than one hundred twenty (120) days after receipt of the request of the
Initiating Holders, provided that such right shall be exercised by the Company not more than once
in any twelve (12)-month period;

                         (iv) if the Company has, within the twelve (12) month period preceding the date of such
request, already effected two (2) registrations on Form S-3 for the Holders pursuant to this
Section 1.4; or

                         (v) in any particular jurisdiction in which the Company would be required to qualify to do
business or to execute a general consent to service of process in effecting such registration,
qualification or compliance.

                    (c) If the Initiating Holders intend to distribute the Registrable Securities covered by their
request by means of an underwriting, they shall so advise the Company as a part of their request
made pursuant to this Section 1.4 and the Company shall include such information in the written
notice referred to in Section 1.4(a). The provisions of Section 1.2(b) shall be applicable to such
request (with the substitution of Section 1.4 for references to Section 1.2).

                    (d) Subject to the foregoing, the Company shall file a registration statement covering the
Registrable Securities and other securities so requested to be registered as soon as practicable
after receipt of the request or requests of the Initiating Holders. Registrations effected
pursuant to this Section 1.4 shall not be counted as requests for registration or registrations
effected pursuant to Sections 1.2 or 1.3, respectively.

               1.5 Obligations of the Company. Whenever required under this Section 1 to effect the
registration of any Registrable Securities, the Company shall, as expeditiously as reasonably
possible:

                    (a) prepare and file with the SEC a registration statement with respect to such Registrable
Securities and use all commercially reasonable efforts to cause such registration statement to
become effective, and, upon the request of the Holders of a majority of the Registrable Securities
registered thereunder, keep such registration statement effective for a period of up to one hundred
twenty (120) days or, if earlier, until the distribution contemplated in the Registration Statement
has been completed;

                    (b) prepare and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection with such

6

 

registration statement as may be
necessary to comply with the provisions of the Act with respect to the disposition of all
securities covered by such registration statement;

                    (c) furnish to the Holders such numbers of copies of a prospectus, including a preliminary
prospectus, in conformity with the requirements of the Act, and such other documents as they may
reasonably request in order to facilitate the disposition of Registrable Securities owned by them;

                    (d) use all commercially reasonable efforts to register and qualify the securities covered by
such registration statement under such other securities or Blue Sky laws of such jurisdictions as
shall be reasonably requested by the Holders, provided that the Company shall not be required in
connection therewith or as a condition thereto to qualify to do business or to file a general
consent to service of process in any such states or jurisdictions;

                    (e) in the event of any underwritten public offering, enter into and perform its obligations
under an underwriting agreement, in usual and customary form, with the managing underwriter of such
offering;

                    (f) notify each Holder of Registrable Securities covered by such registration statement at any
time when a prospectus relating thereto is required to be delivered under the Act of the happening
of any event as a result of which the prospectus included in such registration statement, as then
in effect, includes an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein not misleading in the
light of the circumstances then existing;

                    (g) cause all such Registrable Securities registered pursuant to this Section 1 to be listed
on a national exchange or trading system and on each securities exchange and trading system on
which similar securities issued by the Company are then listed;

                    (h) provide a transfer agent and registrar for all Registrable Securities registered pursuant
hereunder and a CUSIP number for all such Registrable Securities, in each case not later than the
effective date of such registration; and

                    (i) use its best efforts to furnish, at the request of any Holder requesting registration of
Registrable Securities pursuant to this Section 1, on the date that such Registrable Securities are
delivered to the underwriters for sale in connection with a
registration pursuant to this Section 1, if such securities are being sold through underwriters, or
if such securities are not being sold through underwriters, on the date that the registration
statement with respect to such securities becomes effective, (i) an opinion, dated such date, of
the counsel representing the Company for the purposes of such registration, in form and substance
as is customarily given to underwriters in an underwritten public offering, addressed to the
underwriters and to the Holders requesting registration of Registrable Securities and (ii) a letter
dated such date, from the independent certified public accountants of the Company, in form and
substance as is customarily given by independent certified public accountants to underwriters in an
underwritten public offering and reasonably satisfactory to the Holders of a majority of the
Registrable Securities being registered, addressed to the underwriters, if any, and to the Holders
requesting registration of Registrable Securities.

7

 

          Notwithstanding the provisions of this Section 1, the Company shall be entitled to defer, for
a period of one hundred twenty (120) days (but not more than once in any twelve (12) month period),
the filing, effectiveness or use of, or trading under, any registration statement if the Company
shall determine (and shall provide a certificate of the Company’s Chief Executive Officer
confirming such determination) that any such filing or the sale of any securities pursuant to such
registration statement would:

                         (i) in the good faith judgment of the Board of Directors of the Company, materially impede,
delay or interfere with any material pending or proposed financing, acquisition, corporate
reorganization or other similar transaction involving the Company for which the Board of Directors
of the Company has authorized negotiations;

                         (ii) in the good faith judgment of the Board of Directors of the Company, materially adversely
impair the consummation of any pending or proposed material offering or sale of any class of
securities by the Company; or

                         (iii) in the good faith judgment of the Board of Directors of the Company, require disclosure
of material nonpublic information that, if disclosed at such time, would be materially harmful to
the interests of the Company and its stockholders; provided, however, that during
any period referenced in the immediately preceding subsections (i) and (ii) above and this
subsection (iii), all executive officers and directors of the Company are also prohibited from
selling securities of the Company (or any security of any of the Company’s subsidiaries or
affiliates).

          In the event of the suspension of effectiveness of any registration statement pursuant to this
Section 1.5, the applicable time period during which such registration statement is to remain
effective shall be extended by that number of days equal to the number of days during which the
effectiveness of such registration statement was suspended.

          If the Company shall exercise its deferral right under this Section 1.5, such deferral (i)
shall be counted for the purposes of determining whether such right has been exercised under
Section 1.2(c)(v) during any twelve (12)-month period if such registration was initiated pursuant
to Section 1.2 or (ii) shall be counted for the purposes of determining whether such right has been
exercised under Section 1.4(b)(iii) during any twelve (12)-month period if
such registration was initiated pursuant to Section 1.4. Such deferral right under this
Section 1.5 shall not be utilized by the Company during any twelve (12)-month period if a deferral
right has already been exercised by the Company pursuant to Section 1.2(c)(v) (during any
applicable twelve (12)-month period), provided that such registration was initiated pursuant to
Section 1.2. In addition, such deferral right under this Section 1.5 shall not be utilized by the
Company during any twelve (12)-month period if a deferral right has already been exercised by the
Company pursuant to Section 1.4(b)(iii) (during any applicable twelve (12)-month period), provided
that such registration was initiated pursuant to Section 1.4.

               1.6 Information from Holder. It shall be a condition precedent to the obligations of
the Company to take any action pursuant to this Section 1 with respect to the Registrable
Securities of any selling Holder that such Holder shall furnish to the Company such information
regarding itself, the Registrable Securities held by it, and the intended method of

8

 

disposition of such securities as shall be reasonably required to effect the registration of such Holder’s
Registrable Securities.

               1.7 Expenses of Registration. All0 expenses other than underwriting discounts and
commissions incurred in connection with registrations, filings or qualifications pursuant to
Sections 1.2, 1.3 and 1.4, including (without limitation) all registration, filing and
qualification fees, printers’ and accounting fees, fees and disbursements of counsel for the
Company and the reasonable fees and disbursements of one counsel for the selling Holders (not to
exceed $25,000) shall be borne by the Company. Notwithstanding the foregoing, the Company shall
not be required to pay for any expenses of any registration proceeding begun pursuant to Section
1.2 or Section 1.4 if the registration request is subsequently withdrawn at the request of the
Holders of a majority of the Registrable Securities to be registered (in which case all
participating Holders shall bear such expenses pro rata based upon the number of Registrable
Securities that were to be included in the withdrawn registration), unless, in the case of a
registration requested under Section 1.2, the Holders of a majority of the Registrable Securities
agree to forfeit their right to one demand registration pursuant to Section 1.2 and provided,
however, that if at the time of such withdrawal, the Holders have learned of a material adverse
change in the condition, business, or prospects of the Company from that known to the Holders at
the time of their request and have withdrawn the request with reasonable promptness following
disclosure by the Company of such material adverse change, then the Holders shall not be required
to pay any of such expenses and shall retain their rights pursuant to Section 1.2 or 1.4.

               1.8 Delay of Registration. No Holder shall have any right to obtain or seek an
injunction restraining or otherwise delaying any such registration as the result of any controversy
that might arise with respect to the interpretation or implementation of this Section 1.

               1.9 Indemnification. In the event any Registrable Securities are included in a
registration statement under this Section 1:

                    (a) To the extent permitted by law, the Company will indemnify and hold harmless each Holder,
the partners, officers, directors and stockholders of each Holder, legal counsel and accountants
for each Holder, any underwriter (as defined in the Act) for such Holder and each person, if any, who controls such Holder or underwriter within
the meaning of the Act or the 1934 Act, against any losses, claims, damages or liabilities (joint
or several) to which they may become subject under the Act, the 1934 Act, any other federal
securities law, any state securities laws or any rule or regulation promulgated under the Act,
insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out
of or are based upon any of the following statements, omissions or violations (collectively a
“Violation”): (i) any untrue statement or alleged untrue statement of a material fact contained in
such registration statement, including any preliminary prospectus or final prospectus contained
therein or any amendments or supplements thereto, (ii) the omission or alleged omission to state
therein a material fact required to be stated therein, or necessary to make the statements therein
not misleading, or (iii) any violation or alleged violation by the Company of the Act, the 1934
Act, any state securities laws or any rule or regulation promulgated under the Act; the 1934 Act or
any state securities laws, and the Company will reimburse each such Holder, underwriter,

9

 

controlling person or other aforementioned person for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss, claim, damage,
liability or action as such expenses are incurred; provided, however, that the indemnity agreement
contained in this subsection l.9(a) shall not apply to amounts paid in settlement of any such loss,
claim, damage, liability or action if such settlement is effected without the consent of the
Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any
such case for any such loss, claim, damage, liability or action to the extent that it arises out of
or is based upon a Violation that occurs in reliance upon and in conformity with written
information furnished expressly for use in connection with such registration by any such Holder,
underwriter, controlling person or other aforementioned person; provided further, however, that the
foregoing indemnity agreement with respect to any preliminary prospectus shall not inure to the
benefit of any Holder or underwriter or other aforementioned person, or any person controlling such
Holder or underwriter, from whom the person asserting any such losses, claims, damages or
liabilities purchased shares in the offering, if a copy of the most current prospectus was not sent
or given by or on behalf of such Holder or underwriter or other aforementioned person to such
person, if required by law so to have been delivered, at or prior to the written confirmation of
the sale of the shares to such person, and if the prospectus (as so amended or supplemented) would
have cured the defect giving rise to such loss, claim, damage or liability.

                    (b) To the extent permitted by law, each selling Holder will indemnify and hold harmless the
Company, each of its directors, each of its officers who has signed the registration statement,
each person, if any, who controls the Company within the meaning of the Act, legal counsel and
accountants for the Company, any underwriter, any other Holder selling securities in such
registration statement and any controlling person of any such underwriter or other Holder, against
any losses, claims, damages or liabilities (joint or several) to which any of the foregoing persons
may become subject, under the Act, the 1934 Act, any other federal securities law, any state
securities laws or any rule or regulation promulgated under the Act, the 1934 Act, any other
federal securities law, or any state securities laws, insofar as such losses, claims, damages or
liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each
case to the extent (and only to the extent) that such Violation occurs in reliance upon and in
conformity with written information furnished by such Holder expressly for use in connection with
such registration; and each such Holder will reimburse any person intended to be indemnified
pursuant to this subsection l.9(b) for any legal or other expenses
reasonably incurred by such person in connection with investigating or defending any such
loss, claim, damage, liability or action as such expenses are incurred; provided, however, that the
indemnity agreement contained in this subsection l.9(b) shall not apply to amounts paid in
settlement of any such loss, claim, damage, liability or action if such settlement is effected
without the consent of the Holder (which consent shall not be unreasonably withheld), and provided
that in no event shall any indemnity under this subsection l.9(b) exceed the net proceeds from the
offering received by such Holder.

                    (c) Promptly after receipt by an indemnified party under this Section 1.9 of notice of the
commencement of any action (including any governmental action), such indemnified party will, if a
claim in respect thereof is to be made against any indemnifying party under this Section 1.9,
deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying
party shall have the right to participate in and, to

10

 

the extent the indemnifying party so desires,
jointly with any other indemnifying party similarly noticed, to assume the defense thereof with
counsel mutually satisfactory to the parties; provided, however, that an indemnified party
(together with all other indemnified parties that may be represented without conflict by one
counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid
by the indemnifying party, if representation of such indemnified party by the counsel retained by
the indemnifying party would be inappropriate due to actual or potential differing interests
between such indemnified party and any other party represented by such counsel in such proceeding.
The failure to deliver written notice to the indemnifying party within a reasonable time of the
commencement of any such action, if prejudicial to its ability to defend such action, shall relieve
such indemnifying party of liability to the indemnified party under this Section 1.9 to the extent
of such prejudice, but the omission so to deliver written notice to the indemnifying party will not
relieve it of any liability that it may have to any indemnified party otherwise than under this
Section 1.9.

                    (d) If the indemnification provided for in this Section 1.9 is held by a court of competent
jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim,
damage or expense referred to herein, then the indemnifying party, in lieu of indemnifying such
indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified
party as a result of such loss, liability, claim, damage or expense in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the one hand and of the
indemnified party on the other in connection with the statements or omissions that resulted in such
loss, liability, claim, damage or expense, as well as any other relevant equitable considerations;
provided, however, that no contribution by any Holder, when combined with any amounts paid by such
Holder pursuant to Section 1.9(b), shall exceed the net proceeds from the offering received by such
Holder. The relative fault of the indemnifying party and of the indemnified party shall be
determined by reference to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access
to information, and opportunity to correct or prevent such statement or omission.

                    (e) Notwithstanding the foregoing, to the extent that the provisions on indemnification and
contribution contained in the underwriting agreement entered
into in connection with the underwritten public offering are in conflict with the foregoing
provisions, the provisions in the underwriting agreement shall control.

                    (f) The obligations of the Company and Holders under this Section 1.9 shall survive the
completion of any offering of Registrable Securities in a registration statement under this Section
1, and otherwise.

               1.10 Reports Under the 1934 Act. With a view to making available to the Holders the
benefits of Rule 144 and any other rule or regulation of the SEC that may at any time permit a
Holder to sell securities of the Company to the public without registration or pursuant to a
registration on Form S-3, the Company agrees to:

11

 

                    (a) make and keep public information available, as those terms are understood and defined in
Rule 144, at all times after the effective date of the Initial Offering;

                    (b) take such action, including the voluntary registration of its Common Stock under Section
12 of the Exchange Act, as is necessary to enable the Holders to utilize Form S-3 for the sale of
their Registrable Securities, such action to be taken as soon as practicable after the end of the
fiscal year in which the first registration statement filed by the Company for the offering of its
securities to the general public is declared effective;

                    (c) file with the SEC in a timely manner all reports and other documents required of the
Company under the Act and the 1934 Act; and

                    (d) furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith
upon request (i) a written statement by the Company that it has complied with the reporting
requirements of Rule 144 (at any time after ninety (90) days after the effective date of the first
registration statement filed by the Company), the Act and the 1934 Act (at any time after it has
become subject to such reporting requirements), or that it qualifies as a registrant whose
securities may be resold pursuant to Form S-3 (at any time after it so qualifies), (ii) a copy of
the most recent annual or quarterly report of the Company and such other reports and documents so
filed by the Company, and (iii) such other information as may be reasonably requested in availing
any Holder of any rule or regulation of the SEC that permits the selling of any such securities
without registration or pursuant to such form.

               1.11 Assignment of Registration Rights. The rights to cause the Company to register
Registrable Securities pursuant to this Section 1 may be assigned (but only with all related
obligations) by a Holder to a transferee or assignee of such securities that (i) is an affiliate of
a Holder or a subsidiary, parent, partner, limited partner, retired partner, member, retired member
or stockholder of a Holder, (ii) is a Holder’s family member or trust for the benefit of an
individual Holder, or (iii) after such assignment or transfer, holds at least 375,000 shares of
Registrable Securities (subject to appropriate adjustment for stock splits, stock dividends,
combinations and other recapitalizations) (or if the transferring Holder owns less than 375,000
shares of such securities, then all Registrable Securities held by the transferring Holder),
provided: (a) the Company is, within a reasonable time after such transfer, furnished with written notice of the
name and address of such transferee or assignee and the securities with respect to which such
registration rights are being assigned; (b) such transferee or assignee agrees in writing to be
bound by and subject to the terms and conditions of this Agreement, including, without limitation,
the provisions of Section 1.13 below; and (c) such assignment shall be effective only if
immediately following such transfer the further disposition of such securities by the transferee or
assignee is restricted under the Act.

               1.12 Limitations on Subsequent Registration Rights. From and after the date of this
Agreement, the Company shall not, without the prior written consent of the Holders of a majority of
the outstanding Registrable Securities, enter into any agreement with any holder or prospective
holder of any securities of the Company that would allow such holder or prospective holder (a) to
include such securities in any registration filed under Section 1.2, Section 1.3 or Section 1.4
hereof, unless under the terms of such agreement, such holder or

12

 

prospective holder may include such securities in any such registration only to the extent that the inclusion of such securities
will not reduce the amount of the Registrable Securities of the Holders that are included or (b) to
demand registration of their securities.

               1.13 “Market Stand-Off” Agreement.

                    (a) Each Holder hereby agrees that it will not, without the prior written consent of the
managing underwriter, during the period commencing on the date of the final prospectus relating to
the Company’s Initial Offering and ending on the date specified by the Company and the managing
underwriter (such period not to exceed one hundred eighty (l80) days) (i) lend, offer, pledge,
sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to
sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly
or indirectly, any shares of Common Stock or any securities convertible into or exercisable or
exchangeable for Common Stock or (ii) enter into any swap or other arrangement that transfers to
another, in whole or in part, any of the economic consequences of ownership of the Common Stock,
whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of
Common Stock or such other securities, in cash or otherwise. The foregoing provisions of this
Section 1.13 (W) shall apply only to the Company’s initial public offering of equity securities,
(X) shall not apply to the sale of any shares to an underwriter pursuant to an underwriting
agreement or to any shares registered in the Initial Offering or purchased in the after market or
any other shares or other securities purchased after the Initial Offering that are not otherwise
subject to similar restrictions, and (Y) shall only be applicable to the Holders if all officers
and directors and greater than one percent (1%) stockholders of the Company enter into similar
agreements, provided that if any such persons or entities are released from the restrictions of
such agreements, all Holders shall be similarly released, pro rata, based on the number of shares
subject to such agreements. The underwriters in connection with the Company’s Initial Offering are
intended third party beneficiaries of this Section 1.13 and shall have the right, power and
authority to enforce the provisions hereof as though they were a party hereto. Each Holder further
agrees to execute such agreements as may be reasonably requested by the underwriters in the
Company’s Initial Offering that are consistent with this Section 1.13 or that are necessary to give
further effect thereto.

          In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions
with respect to the Registrable Securities of each Holder (and the shares or securities of every
other person subject to the foregoing restriction) until the end of such period.

                    (b) Each Holder agrees that a legend reading substantially as follows shall be placed on all
certificates representing all Registrable Securities of each Holder (and the shares or securities
of every other person subject to the restriction contained in this Section 1.13):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A LOCK-UP PERIOD OF UP
TO 180 DAYS AFTER THE EFFECTIVE DATE OF THE ISSUER’S REGISTRATION STATEMENT FILED
UNDER THE ACT, AS AMENDED, AS SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE
ORIGINAL HOLDER OF THESE SECURITIES,

13

 

A COPY OF WHICH MAY BE OBTAINED AT THE ISSUER’S
PRINCIPAL OFFICE. SUCH LOCK-UP PERIOD IS BINDING ON TRANSFEREES OF THESE SHARES.

               1.14 Termination of Registration Rights. No Holder shall be entitled to exercise any
right provided for in this Section 1 (a) after five (5) years following the consummation of the
Initial Offering, (b) as to any Holder, such earlier time after the Initial Offering at which such
Holder (i) can sell all shares held by it in compliance with Rule 144(k) or (ii) holds one percent
(1%) or less of the Company’s outstanding Common Stock and all Registrable Securities held by such
Holder (together with any affiliate of the Holder with whom such Holder must aggregate its sales
under Rule 144) can be sold in any three (3)-month period without registration in compliance with
Rule 144.

          2. Covenants of the Company.

               2.1 Delivery of Financial Statements. The Company shall, upon request, deliver to
each Investor (or transferee of an Investor) that holds at least 375,000 shares of Registrable
Securities (subject to appropriate adjustment for stock splits, stock dividends, combinations and
other recapitalizations) (a “Major Investor”):

                    (a) as soon as practicable, but in any event within ninety (90) days after the end of each
fiscal year of the Company, an income statement for such fiscal year, a balance sheet of the
Company and statement of stockholders’ equity as of the end of such year, and a statement of cash
flows for such year, such year-end financial reports to be in reasonable detail, prepared in
accordance with generally accepted accounting principles (“GAAP”), and audited and certified by
independent public accountants of nationally recognized standing selected by the Company;

                    (b) as soon as practicable, but in any event within forty-five (45) days after the end of each
of the first three (3) quarters of each fiscal year of the Company, an unaudited income statement,
statement of cash flows for such fiscal quarter and an unaudited balance sheet as of the end of
such fiscal quarter.

                    (c) within thirty (30) days of the end of each month, an unaudited income statement and
statement of cash flows and balance sheet for and as of the end of such month, in reasonable
detail;

                    (d) as soon as practicable, but in any event at least thirty (30) days prior to the end of
each fiscal year, a budget and business plan for the next fiscal year, prepared on a monthly basis,
including balance sheets, income statements and statements of cash flows for such months and, as
soon as prepared, any other budgets or revised budgets prepared by the Company;

                    (e) with respect to the financial statements called for in subsections (b) and (c) of this
Section 2.1, an instrument executed by the Chief Financial Officer or President of the Company
certifying that such financials were prepared in accordance with GAAP consistently applied with
prior practice for earlier periods (with the exception of footnotes that may be required by GAAP)
and fairly present the financial condition of the

14

 

Company and its results of operation for the
period specified, subject to year-end audit adjustment, provided that the foregoing shall not
restrict the right of the Company to change its accounting principles consistent with GAAP, if the
Board of Directors determines that it is in the best interest of the Company to do so; and

                    (f) such other information relating to the financial condition, business or corporate affairs
of the Company as the Major Investor may from time to time request, provided, however, that the
Company shall not be obligated under this subsection (f) or any other subsection of Section 2.1 to
provide information that it deems in good faith to be a trade secret or similar confidential
information.

               2.2 Inspection. The Company shall permit each Major Investor, at such Major
Investor’s expense, to visit and inspect the Company’s properties, to examine its books of account
and records and to discuss the Company’s affairs, finances and accounts with its officers, all at
such reasonable times as may be requested by the Major Investor; provided, however, that the
Company shall not be obligated pursuant to this Section 2.2 to provide access to any information
that it reasonably considers to be a trade secret or similar confidential information.

               2.3 Termination of Covenants. The covenants set forth in Sections 2.1, 2.2, 2.5 and
2.6 shall terminate and be of no further force or effect (a) upon the consummation of the Company’s
Initial Offering or (b) when the Company first becomes subject to the periodic reporting
requirements of Sections 12(g) or 15(d) of the 1934 Act, whichever event shall first occur. The
Covenants set forth in Sections 2.7, 2.8 and 2.9 shall terminate and be of no further force or
effect upon the consummation of the Company’s Initial Offering.

               2.4 Right of First Offer. Subject to the terms and conditions specified in this
Section 2.4, the Company hereby grants to each Major Investor a right of first offer with respect
to future sales by the Company of its Shares (as hereinafter defined). For purposes of this
Section 2.4, the term “Major Investor” includes any general partners and affiliates of a Major
Investor. A Major Investor shall be entitled to apportion the right of first offer hereby granted
it among itself and its partners and affiliates in such proportions as it deems appropriate.

          Each time the Company proposes to offer any shares of, or securities convertible into or
exchangeable or exercisable for any shares of, any class of its capital stock (“Shares”), the
Company shall first make an offering of such Shares to each Major Investor in accordance with the
following provisions:

                    (a) The Company shall deliver a notice in accordance with Section 3.5 (“Notice”) to the Major
Investors stating (i) its bona fide intention to offer such Shares, (ii) the number of such Shares
to be offered, and (iii) the price and terms upon which it proposes to offer such Shares.

                    (b) By written notification received by the Company within twenty (20) calendar days after
receipt of the Notice, each Major Investor may elect to purchase or obtain, at the price and on the
terms specified in the Notice, up to that portion of such Shares that equals the proportion that
the number of shares of Common Stock issued and held, or

15

 

issuable upon conversion and exercise of
all convertible or exercisable securities then held by such Major Investor, bears to the total
number of shares of Common Stock of the Company then outstanding (assuming full conversion and
exercise of all convertible and exercisable securities then outstanding). Such purchase shall be
completed at the same closing as that of any third party purchasers or at an additional closing
thereunder. The Company shall promptly, in writing, inform each Major Investor that purchases all
the shares available to it (each, a “Fully-Exercising Investor”) of any other Major
Investor’s failure to do likewise. During the 10-day period commencing after receipt of such
information, each Fully-Exercising Investor shall be entitled to obtain that portion of the Shares
for which Major Investors were entitled to subscribe but which were not subscribed for by the Major
Investors that is equal to the proportion that the number of shares of Common Stock issued and
held, or issuable upon conversion and exercise of all convertible or exercisable securities then
held, by such Fully-Exercising Investor bears to the total number of shares of Common Stock then
outstanding (assuming full conversion and exercise of all convertible or exercisable securities
then outstanding).

                    (c) If all Shares that Major Investors are entitled to obtain pursuant to subsection 2.4(b)
are not elected to be obtained as provided in subsection 2.4(b) hereof, the Company may, during the
ninety (90) day period following the expiration of the period provided in subsection 2.4(b) hereof,
offer the remaining unsubscribed portion of such Shares to any person or persons at a price not
less than that, and upon terms no more favorable to the offeree than those, specified in the
Notice. If the Company does not enter into an agreement for the sale of the Shares within such
period, or if such agreement is not consummated within sixty (60) days of the execution thereof,
the right provided hereunder shall be deemed to be revived and such Shares shall not be offered
unless first reoffered to the Major Investors in accordance herewith.

                    (d) The right of first offer in this Section 2.4 shall not be applicable to (i) the issuance
or sale of shares of Common Stock (or options therefor) to employees, directors, consultants and
other service providers pursuant to plans or agreements approved by the Company’s Board of
Directors; (ii) the issuance of securities pursuant the Company’s Initial Offering, (iii) the
issuance of securities pursuant to the conversion or exercise of convertible or exercisable
securities, (iv) the issuance of securities in connection with a bona fide business acquisition of
or by the Company, whether by merger, consolidation, sale of assets, sale or exchange of stock or
otherwise, (v) the issuance and sale of Series D Preferred Stock pursuant to the Series D
Agreement, (vi) the issuance of stock, warrants or other securities to banks or similar financial
institutions, provided such issuances are for other than primarily equity financing purposes or
(vii) the issuance of stock, warrants or other securities in connection with strategic
transactions, provided such issuances are for other than primarily equity financing purposes. In
addition to the foregoing, the right of first offer in this Section 2.4 shall not be applicable
with respect to any Major Investor and any subsequent offering of Shares if (i) at the time of such
offering, the Major Investor is not an “accredited investor,” as that term is then defined in Rule
501(a) of the Act and (ii) such offering of Shares is otherwise being offered only to accredited
investors.

                    (e) The rights provided in this Section 2.4 may not be assigned or transferred by any Major
Investor; provided, however, that a Major Investor that is a venture

16

 

capital or other investment
fund may assign or transfer such rights to an affiliated venture capital or other investment fund.

                    (f) The covenants set forth in this Section 2.4 shall terminate and be of no further force or
effect upon the consummation of the Company’s Initial Offering.

               2.5 Proprietary Information and Inventions Agreements. The Company shall require all
employees and consultants with access to confidential information to execute and deliver at the
commencement of such person’s relationship with the Company a Proprietary Information and
Inventions Agreement or a Consulting Agreement (as applicable), in substantially the forms approved
by the Company’s Board of Directors.

               2.6 Employee Agreements. Unless approved by the Board of Directors of the Company, all
future employees of the Company who shall purchase, or receive options to purchase, shares of the
Company’s Common Stock following the date hereof shall be required to execute stock purchase or
option agreements providing for (i) vesting of shares over a four-year period with the first 25% of
such shares vesting following twelve (12) months of continued employment or services, and the
remaining shares vesting in equal monthly installments over the following 36 months thereafter and
(ii) a 180-day lockup period in connection with the Company’s initial public offering. The Company
shall retain a right of first refusal on transfers until the Company’s initial public offering and
the right to repurchase unvested shares at cost.

               2.7 Compensation Committee. The compensation for the officers and other key
management of the Company will be determined by a compensation committee of the Board of Directors,
which committee shall include the two (2) members of the Board of Directors nominated by the holders of Series A
Preferred Stock.

               2.8 Qualified Small Business Stock Status. The Company shall submit to the Internal
Revenue Service, and upon request shall submit to the Investors, any reports that may be required
under Section 1202(d)(1)(C) of the Code and any related Treasury Regulations. In addition, within
ten (10) days after any Investor has delivered to the Company a written request therefor, the
Company shall deliver to such Investor a written statement informing the Investor whether, in the
Company’s good-faith judgment after a reasonable investigation, such Investor’s interest in the
Company constitutes “qualified small business stock” as defined in Section 1202(c) of the Code, or
would constitute “qualified small business stock,” if determination of whether stock constitutes
“qualified small business stock” were made by taking into account the modifications set forth in
Section 1045(b)(4) of the Code. Notwithstanding the foregoing, the Company shall incur no
liability to the Investors (or otherwise) as a result of having furnished such written statement
(including in the event that such written statement is inaccurate in any respect) provided that
such written statement is provided in good faith. The Company’s obligation to furnish a written
statement pursuant to this Section 2.9 shall continue notwithstanding the fact that a class of the
Company’s stock may be traded on an established securities market.

               2.9 Observer Rights.

17

 

                    (a) As long as Trinity Ventures VIII, L.P. and its affiliates (“Trinity Ventures”) own not
less than fifty percent (50%) of the shares of Series B Preferred Stock it originally purchased
pursuant to the Series B Preferred Stock Purchase Agreement, dated as of August 4, 2003, between
the Company and each of the other parties thereto, the Company shall invite a representative of
Trinity Ventures to attend all meetings of its Board of Directors in a nonvoting observer capacity
and, in this respect, shall give such representative copies of all notices, minutes, consents and
other materials that it provides to its directors; provided, however, that such representative
shall agree to hold in confidence and trust and to act in a fiduciary manner with respect to all
information so provided; and, provided further, that the Company reserves the right to withhold any
information and to exclude such representative from any meeting or portion thereof if access to
such information or attendance at such meeting could adversely affect the attorney-client privilege
between the Company and its counsel or would result in disclosure of trade secrets to such
representative or if such Investor or its representative is or is affiliated with a direct
competitor of the Company. The Company agrees to reimburse such representative for its reasonable
expenses incurred in connection with attending meetings of the Board of Directors.

                    (b) As long as WK Technology Fund and its affiliates (“WK Technology Fund”) own not less than
fifty percent (50%) of the shares of Series C Preferred Stock it originally purchased pursuant to
the Series C Preferred Stock Purchase Agreement, dated as of June 24, 2004, between the Company and
each of the other parties thereto, the Company shall invite a representative of WK Technology Fund
to attend all meetings of its Board of Directors in a nonvoting observer capacity and, in this
respect, shall give such representative copies of all notices, minutes, consents and other
materials that it provides to its directors; provided, however, that such representative shall
agree to hold in confidence and trust and to act in a fiduciary manner with respect to all information so provided; and, provided
further, that the Company reserves the right to withhold any information and to exclude such
representative from any meeting or portion thereof if access to such information or attendance at
such meeting could adversely affect the attorney-client privilege between the Company and its
counsel or would result in disclosure of trade secrets to such representative or if such Investor
or its representative is or is affiliated with a direct competitor of the Company. The Company
agrees to reimburse such representative for its reasonable expenses incurred in connection with
attending meetings of the Board of Directors.

                    (c) As long as Artis Capital Management, LLC and its affiliates (“Artis”) own not less than
fifty percent (50%) of the shares of Series D Preferred Stock it originally purchased pursuant to
the Series D Agreement, the Company shall invite a representative of Artis to attend all meetings
of its Board of Directors in a nonvoting observer capacity and, in this respect, shall give such
representative copies of all notices, minutes, consents and other materials that it provides to its
directors; provided, however, that such representative shall agree to hold in confidence and trust
and to act in a fiduciary manner with respect to all information so provided; and, provided
further, that the Company reserves the right to withhold any information and to exclude such
representative from any meeting or portion thereof if access to such information or attendance at
such meeting could adversely affect the attorney-client privilege between the Company and its
counsel or would result in disclosure of trade secrets to such representative or if such Investor
or its representative is or is affiliated with

18

 

a direct competitor of the Company. The Company
agrees to reimburse such representative for its reasonable expenses incurred in connection with
attending meetings of the Board of Directors.

               2.10 Director Meetings. Unless otherwise determined by the Board of Directors, the
Board of Directors shall meet at least once per month at such times to be determined by the Board
of Directors.

          3. Miscellaneous.

               3.1 Successors and Assigns. Except as otherwise provided herein, the terms and
conditions of this Agreement shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties (including transferees of any shares of Registrable
Securities). Nothing in this Agreement, express or implied, is intended to confer upon any party
other than the parties hereto or their respective successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as expressly provided in
this Agreement.

               3.2 Governing Law. This Agreement shall be governed by and construed under the laws of
the State of California as applied to agreements among California residents entered into and to be
performed entirely within California.

               3.3 Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

               3.4 Titles and Subtitles. The titles and subtitles used in this Agreement are used
for convenience only and are not to be considered in construing or interpreting this Agreement.

               3.5 Notices. All notices and other communications given or made pursuant hereto shall
be in writing and shall be deemed effectively given: (i) upon personal delivery to the party to be
notified, (ii) when sent by confirmed facsimile if sent during normal business hours of the
recipient; if not, then on the next business day, (iii) five (5) days after having been sent by
registered or certified mail, return receipt requested, postage prepaid, or (iv) one (1) day after
deposit with a nationally recognized overnight courier, specifying next day delivery, with written
verification of receipt. All communications shall be sent to the respective parties at the
addresses set forth on the signature pages attached hereto (or at such other addresses as shall be
specified by notice given in accordance with this Section 3.5).

               3.6 Expenses. If any action at law or in equity is necessary to enforce or interpret
the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees,
costs and necessary disbursements in addition to any other relief to which such party may be
entitled.

               3.7 Entire Agreement; Amendments and Waivers. This Agreement (including the Exhibits
hereto, if any) constitutes the full and entire understanding and agreement among the parties with
regard to the subjects hereof and thereof. Any term of this Agreement (other than Section 2.1,
Section 2.2, Section 2.3 and Section 2.4) may be amended and the

19

 

observance of any term of this Agreement may be waived (either generally or in a
particular instance and either retroactively or prospectively) only with the written consent of the
Company and the holders of a majority of the Registrable Securities; provided, however,
that (a) the written consent of Trinity Ventures shall be necessary for any amendment or waiver of
Section 2.9(a) (but only for so long as Trinity Ventures has an observation right pursuant to
Section 2.9(a)); provided further, that the immediately preceding clause (a) shall be
amended only with the written consent of Trinity Ventures; (b) the written consent of WK Technology
Fund shall be necessary for any amendment or waiver of Section 2.9(b) (but only for so long as WK
Technology Fund has an observation right pursuant to Section 2.9(b)); provided further,
that the immediately preceding clause (b) shall be amended only with the written consent of WK
Technology Fund; and (c) the written consent of Artis shall be necessary for any amendment or
waiver of Section 2.9(c) (but only for so long as Artis has an observation right pursuant to
Section 2.9(c)); provided further, that the immediately preceding clause (c) shall be
amended only with the written consent of Artis. The provisions of Section 2.1, Section 2.2,
Section 2.3 and Section 2.4 may be amended or waived (either generally or in a particular instance
and either retroactively or prospectively) only with the written consent of the Company and the
holders of a majority of the Registrable Securities that are held by Major Investors.
Notwithstanding the foregoing, (i) in the event that any amendment or waiver adversely affects the
obligations or rights of the holders of Series B Preferred Stock in a different manner than the
other Holders, such amendment or waiver shall also require the written consent of the holders of at
least 66 2/3 % (sixty-six and two-thirds percent) of the then outstanding shares of Series B
Preferred Stock (voting as a separate class); provided, however, that the immediately
preceding clause shall be amended only with the written consent of the holders of at least
66 2/3 % (sixty-six and two-thirds percent) of the then outstanding shares of Series B
Preferred Stock (voting as a separate class); (ii) in the event that any amendment or waiver
adversely affects the obligations or rights of the holders of Series C Preferred Stock in a
different manner than the other Holders, such amendment or waiver shall also require the written
consent of the holders of at least 66 2/3 % (sixty-six and two-thirds percent) of the then
outstanding shares of Series C Preferred Stock (voting as a separate class); provided,
however, that the immediately preceding clause shall be amended only with the written consent
of the holders of at least 66 2/3 % (sixty-six and two-thirds percent) of the then
outstanding shares of Series C Preferred Stock (voting as a separate class); and (iii) in the event
that any amendment or waiver adversely affects the obligations or rights of the holders of Series D
Preferred Stock in a different manner than the other Holders, such amendment or waiver shall also
require the written consent of the holders of at least 66 2/3 % (sixty-six and two-thirds
percent) of the then outstanding shares of Series D Preferred Stock (voting as a separate class);
provided, however, that the immediately preceding clause shall be amended only with the
written consent of the holders of at least 66 2/3 % (sixty-six and two-thirds percent) of
the then outstanding shares of Series D Preferred Stock (voting as a separate class). Any
amendment or waiver effected in accordance with this paragraph shall be binding upon each holder of
any Regist
rable Securities, each future holder of all such Registrable Securities, and the Company.

          3.8 Severability. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, such provision(s) shall be excluded from this Agreement and the
balance of the Agreement shall be interpreted as if such provision(s) were so excluded and shall be
enforceable in accordance with its terms.

20

 

          3.9 Aggregation of Stock. All shares of Registrable Securities held or acquired by
affiliated entities (including affiliated venture capital or other investment funds) or persons
shall be aggregated together for the purpose of determining the availability of any rights under
this Agreement.

          3.10 Additional Investors. Notwithstanding Section 3.7, no consent shall be necessary
to add additional Investors as signatories to this Agreement, provided that such Investors have
purchased Series D Preferred Stock pursuant to the subsequent closing provisions of Section 1.3 of
the Series D Agreement.

          3.11 Amendment and Restatement of Prior Agreement. Upon the effectiveness of this
Agreement, the Prior Agreement shall be amended and restated and be of no further force and effect,
and shall be superseded and replaced in its entirety by this Agreement.

21

 

          IN WITNESS WHEREOF, the parties have executed this Amended and Restated Investors’ Rights
Agreement as of the date first above written.

	 	 	 	 	 
	 

	 	 	 	ARUBA WIRELESS NETWORKS, INC.
	 
	 	 	 	 
	 
	 	 	 	/s/
Don LeBeau
	 

	 	 	 	 
	 

	 	 	 	By: Don LeBeau, President and Chief Executive Officer
	 
	 	 	 	 
	 

	 	Address:
	 	1322 Crossman Ave.
	 

	 	 	 	Sunnyvale, CA 94089-1113

SIGNATURE PAGE TO ARUBA WIRELESS NETWORKS, INC.

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

	 	 	 	 	 
	 	INVESTOR:

	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 
	 	Address:  	 	 
	 	 	 	 

SIGNATURE PAGE TO ARUBA WIRELESS NETWORKS, INC.

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

SCHEDULE A

Investors

Investor

Adria Orr

Alex Liu

Alvin Orr

Amy Liu

Angie Yee

Ardmore Ventures

Artis Microcap Fund, L.P.

Artis Microcap Master Fund, L.P.

Artis Technology 2X Ltd.

Artis Technology 2X, L.P.

Artis Technology Partners Ltd.

Artis Technology Partners, L.P.

Artis Technology Qualified 2X, L.P.

Artis Technology Qualified Partners, L.P.

Bernard Liu

CLEF Fund II, L.P.

CLEF, LP

Costella Kirsch Venture Partners I, L.P. (An

“Investor” only for purposes of Section 1 of

this Agreement, and specifically not for

Section 2 of this Agreement)

D. Orr Management Company, LLC

Dominic P. Orr Living Trust

Focus Ventures III, LP

François Bellini

FV Investors III, LP

G&H Partners

Itochu Corporation

John H. Cayton

Karyn Mashima

Kirby Family Foundation

Kishore Seshadri

Lighthouse Capital Partners IV, L.P. (An

“Investor” only for purposes of Section 1 of

this Agreement, and specifically not for

Section 2 of this Agreement)

Lorraine Chow

Lory Hopkins

Lucille Woo

Lucy Orr

 

 

Mak Kit-Ying

Matrix Partners VII, L.P.

Melvin Orr

Mike Kirby

Mitsui & Co., Ltd.

Mitsui Comtek Corp.

Moonlight LLC

MVC Global Japan Fund II

Nancy and Andrew Kessler Living Trust

Newton Management LLC

Praia Grande Ventures L.P.

Ruth Orr

Sequoia Capital Growth Fund III

Sequoia Capital X

Sequoia Capital X Principals Fund

Sequoia Technology Partners X

Six Rivers Group Limited

Susan Chiu

Take Sugimoto

Technology Ventures I Venture Capital
Investment Limited Partnership

The Board of Trustees of the Leland Stanford
Junior University (SEVF II)

The Kolluri Living Trust dated 11/05/1999,
Trustee Krishna Swaroop Kolluri

Trinity Ventures VII, L.P.

Trinity Ventures VIII, L.P.

Trinity VII Side-by-Side Fund, L.P.

Trinity VIII Entrepreneurs’ Fund, L.P.

Trinity VIII Side-by-Side Fund, L.P.

Vivien Li

Walter Foss

Watanabe Susumu

Weston & Co. VII LLC

WK Global Investment II Limited

WK Global Investment III Limited

WK Global Investment Limited

WK Technology Fund

WK Technology Fund IV

WK Technology Fund V

WK Technology Fund VI

WK Technology Fund VII

WK Technology Fund VIII

Wong Chat Shumexv4w3

 

Exhibit
4.3

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933
ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR TRANSFERRED UNLESS SUCH SALE
OR TRANSFER IS IN ACCORDANCE WITH THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS OR
SOME OTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS IS
AVAILABLE WITH RESPECT THERETO.

PREFERRED STOCK PURCHASE WARRANT

			
	Warrant No. A-1
	 	Number of Shares: 144,303

Series A Preferred Stock

Aruba Wireless Networks, Inc.

Effective as of March 3, 2003

Void after March 3, 2010

     1. Issuance. This Preferred Stock Purchase Warrant (the “Warrant”) is issued to
Lighthouse Capital Partners IV, L.P. by Aruba Wireless Networks, Inc., a Delaware
corporation (hereinafter with its successors called the “Company”).

     2. Purchase Price; Number of Shares. The registered holder of this Warrant (the “Holder”),
commencing on the date hereof, is entitled upon surrender of this Warrant with the subscription
form annexed hereto duly executed, at the principal office of the Company, to purchase from the
Company, at a price per share of $0.667 (the “Purchase Price”), 144,303 fully paid and
nonassessable shares of the Company’s Series A Preferred Stock, $0.0001 par value (the “Preferred
Stock”).

Until such time as this Warrant is exercised in full or expires, the Purchase Price and the
securities issuable upon exercise of this Warrant are subject to adjustment as hereinafter
provided. The person or persons in whose name or names any certificate representing shares of
Preferred Stock is issued hereunder shall be deemed to have become the holder of record of the
shares represented thereby as at the close of business on the date this Warrant is exercised with
respect to such shares, whether or not the transfer books of the Company shall be closed.

     3. Payment of Purchase Price. The Purchase Price may be paid (i) in cash or by check, (ii) by
the surrender by the Holder to the Company of any promissory notes or other obligations issued by
the Company, with all such notes and obligations so surrendered being credited against the Purchase
Price in an amount equal to the principal amount thereof plus accrued interest to the date of
surrender, or (iii) by any combination of the foregoing.

     4. Net Issue Election. Notwithstanding any provisions herein to the contrary, if the fair
market value of one share of the Company’s Preferred Stock is greater than the Purchase Price (at
the date of calculation as set forth below), the Holder may elect to receive, without the payment
by the Holder of any additional consideration, shares of Preferred Stock equal to the value of this
Warrant or any portion hereof by the surrender of this Warrant or such portion to the Company, with
the net issue election notice annexed hereto duly executed, at the principal office of the Company.
Thereupon, the Company shall issue to the Holder such number of fully paid and nonassessable
shares of Preferred Stock as is computed using the following formula:

1.

 

X= Y(A-B)

A

	 	 	 	 	 	 	 	 	 
	 

	 	where:
	 	X
	 	=
	 	the number of shares of Preferred Stock to be issued to the Holder pursuant to
this Section 4.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Y
	 	=
	 	the number of shares of Preferred Stock covered by this
Warrant in respect of which the net issue election is made pursuant to this
Section 4.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	A
	 	=
	 	the Fair Market Value (defined below) of one share of
Preferred Stock, as determined at the time the net issue election is made
pursuant to this Section 4.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	B
	 	=
	 	the Purchase Price in effect under this Warrant at the time
the net issue election is made pursuant to this Section 4.

          “Fair Market Value” of a share of Preferred Stock (or fully paid and nonassessable shares of
the Company’s common stock, $0.0001 par value (the “Common Stock”) if the Preferred Stock has been
automatically converted into Common Stock) as of the date that the net issue election is made (the
“Determination Date”) shall mean:

          (i) If the net issue election is made in connection with and contingent upon the closing of
the sale of the Company’s Common Stock to the public in a public offering pursuant to a
Registration Statement under the 1933 Act (a “Public Offering”), and if the Company’s Registration
Statement relating to such Public Offering (“Registration Statement”) has been declared effective
by the Securities and Exchange Commission, then the initial “Price to Public” specified in the
final prospectus with respect to such offering multiplied by the number of shares of Common Stock
into which each share of Preferred Stock is then convertible.

          (ii) If the net issue election is not made in connection with and contingent upon a Public
Offering, then as follows:

               (a) If traded on a securities exchange or the Nasdaq National Market, the fair market value of
the Common Stock shall be deemed to be the average of the closing or last reported sale prices of
the Common Stock on such exchange or market over the five day period ending five trading days prior
to the Determination Date, and the fair market value of the Preferred Stock shall be deemed to be
such fair market value of the Common Stock multiplied by the number of shares of Common Stock into
which each share of Preferred Stock is then convertible;

               (b) If otherwise traded in an over-the-counter market, the fair market value of the Common
Stock shall be deemed to be the average of the closing ask prices of the Common Stock over the five
day period ending five trading days prior to the Determination Date, and the fair market value of
the Preferred Stock shall be deemed to be such fair market value of the Common Stock multiplied by
the number of shares of Common Stock into which each share of Preferred Stock is then convertible;
and

               (c) If there is no public market for the Common Stock, then fair market value shall be
determined in good faith by the Company’s Board of Directors.

     5. Partial Exercise. This Warrant may be exercised in part, and the Holder shall be entitled
to receive a new warrant, which shall be dated as of the date of this Warrant, covering the number
of shares in respect of which this Warrant shall not have been exercised.

     6. Fractional Shares. In no event shall any fractional share of Preferred Stock be issued
upon any exercise of this Warrant. If, upon exercise of this Warrant in its entirety, the Holder
would, except as provided in

2.

 

this Section 6, be entitled to receive a fractional share of Preferred Stock, then the Company
shall issue the next higher number of full shares of Preferred Stock, issuing a full share with
respect to such fractional share.

     7. Expiration Date; Automatic Exercise. This Warrant shall expire upon the earlier of (i) the
close of business on March 3, 2010, (ii) three (3) years following the closing of the initial
Public Offering of the Company or (iii) upon the closing of a sale of all or substantially all of
the Company’s assets, or the merger or consolidation of the Company with or into another
corporation (other than a merger or consolidation for the principle purpose of changing the
domicile of the Company) that results in the transfer of fifty percent (50%) or more of the
outstanding voting power of the Company (collectively a “Merger”) where the sole consideration
issued to stockholders of the Company is cash and shall be void thereafter (the “Expiration Date”).
Notwithstanding the term of this Warrant fixed pursuant to this Section 7 and provided Holder has
received advance notice of at least twenty (20) days and has not earlier converted, this Warrant
shall automatically be converted pursuant to Section 4 hereof, without any action by Holder upon a
Merger where the consideration issued to the stockholders of the Company is stock, except to the
extent assumed by the successor corporation (or parent thereof) in connection with such Merger. In
the event that any outstanding warrants to purchase equity securities of the Company are assumed,
this Warrant shall also be similarly assumed. Notwithstanding anything to the contrary in this
Warrant, the Holder may rescind any exercise of its purchase rights after such notice of
termination of the proposed transaction if the exercise was otherwise precipitated by such proposed
Merger. In the event of such rescission, this Warrant will continue to be exercisable on the same
terms and conditions. and shall be void thereafter (the “Expiration Date”). Notwithstanding the
foregoing, this Warrant shall automatically be deemed to be exercised in full pursuant to the
provisions of Section 4 hereof, without any further action on behalf of the Holder, immediately
prior to the time this Warrant would otherwise expire pursuant to this Section 7. Notwithstanding
the foregoing, in the event the Warrant would automatically be deemed to be exercised pursuant to
this Section 7, the Company shall not be required to surrender the certificate representing the
Shares until such time as the Holder surrenders the Warrant.

     8. Reserved Shares; Valid Issuance. The Company covenants that it will at all times from and
after the date hereof reserve and keep available such number of its authorized shares of Preferred
Stock and Common Stock free from all preemptive or similar rights therein, as will be sufficient to
permit, respectively, the exercise of this Warrant in full and the conversion into shares of Common
Stock of all shares of Preferred Stock receivable upon such exercise. The Company further
covenants that such shares as may be issued pursuant to such exercise and/or conversion will, upon
issuance, be duly and validly issued, fully paid and nonassessable and free from all taxes, liens
and charges with respect to the issuance thereof.

     9. Stock Splits and Dividends. If after the date hereof the Company shall subdivide the
Preferred Stock, by split-up or otherwise, or combine the Preferred Stock, or issue additional
shares of Preferred Stock in payment of a stock dividend on the Preferred Stock, the number of
shares of Preferred Stock issuable on the exercise of this Warrant shall forthwith be
proportionately increased in the case of a subdivision or stock dividend, or proportionately
decreased in the case of a combination, and the Purchase Price shall forthwith be proportionately
decreased in the case of a subdivision or stock dividend, or proportionately increased in the case
of a combination.

     10. Adjustments for Diluting Issuances. The other antidilution rights applicable to the
Preferred Stock and the Common Stock of the Company are set forth in the Amended and Restated
Certificate of Incorporation, as amended from time to time (the “Certificate”), a true and complete
copy in its current form which is attached hereto as Exhibit A. Such rights shall not be restated,
amended or modified in any manner which affects the Holder differently than the holders of
Preferred Stock without such Holder’s prior written consent. The Company shall promptly provide
the Holder hereof with any restatement, amendment or modification to the Certificate promptly after
the same has been made.

     11. Mergers and Reclassifications. If after the date hereof the Company shall enter into any
Reorganization (as hereinafter defined), then, as a condition of such Reorganization, lawful
provisions shall be made, and duly executed documents evidencing the same from the Company or its
successor shall be delivered to the Holder, so that the Holder shall thereafter have the right to
purchase, at a total price not to exceed that payable upon the exercise of this Warrant in full,
the kind and amount of shares of stock and other securities and property receivable upon such
Reorganization by a holder of the number of shares of Preferred Stock which might have been

3.

 

purchased by the Holder immediately prior to such Reorganization, and in any such case appropriate
provisions shall be made with respect to the rights and interest of the Holder to the end that the
provisions hereof (including without limitation, provisions for the adjustment of the Purchase
Price and the number of shares issuable hereunder and the provisions relating to the net issue
election) shall thereafter be applicable in relation to any shares of stock or other securities and
property thereafter deliverable upon exercise hereof. For the purposes of this Section 11, the
term “Reorganization” shall include without limitation any reclassification, capital reorganization
or change of the Preferred Stock (other than as a result of a subdivision, combination or stock
dividend provided for in Section 9 hereof), or any consolidation of the Company with, or merger of
the Company into, another corporation or other business organization (other than a merger in which
the Company is the surviving corporation and which does not result in any reclassification or
change of the outstanding Preferred Stock), or any sale or conveyance to another corporation or
other business organization of all or substantially all of the assets of the Company.

     12. Certificate of Adjustment. Whenever the Purchase Price is adjusted, as herein provided,
the Company shall promptly deliver to the Holder a certificate of the Company’s chief financial
officer setting forth the Purchase Price after such adjustment and setting forth a brief statement
of the facts requiring such adjustment.

     13. Notices of Record Date, Etc. In the event of:

          (a) any taking by the Company of a record of the holders of any class of securities for the
purpose of determining the holders thereof who are entitled to receive any dividend or other
distribution, or any right to subscribe for, purchase, sell or otherwise acquire or dispose of any
shares of stock of any class or any other securities or property, or to receive any other right;

          (b) any reclassification of the capital stock of the Company, capital reorganization of the
Company, consolidation or merger involving the Company, or sale or conveyance of all or
substantially all of its assets; or

          (c) any voluntary or involuntary dissolution, liquidation or winding-up of the Company;

then in each such event the Company will provide or cause to be provided to the Holder a written
notice thereof. Such notice shall be provided at least twenty (20) business days prior to the date
specified in such notice on which any such action is to be taken.

     14. Representations, Warranties and Covenants. This Warrant is issued and delivered by the
Company and accepted by each Holder on the basis of the following representations, warranties and
covenants made by the Company:

          (a) The Company has all necessary authority to issue, execute and deliver this Warrant and to
perform its obligations hereunder. This Warrant has been duly authorized issued, executed and
delivered by the Company and is the valid and binding obligation of the Company, enforceable in
accordance with its terms.

          (b) The shares of Preferred Stock issuable upon the exercise of this Warrant have been duly
authorized and reserved for issuance by the Company and, when issued in accordance with the terms
hereof, will be validly issued, fully paid and nonassessable.

          (c) The issuance, execution and delivery of this Warrant do not, and the issuance of the
shares of Preferred Stock upon the exercise of this Warrant in accordance with the terms hereof
will not, (i) violate or contravene the Company’s Certificate or by-laws, or any law, statute,
regulation, rule, judgment or order applicable to the Company, (ii) violate, contravene or result
in a breach or default under any contract, agreement or instrument to which the Company is a party
or by which the Company or any of its assets are bound or (iii) require the consent or approval of
or the filing of any notice or registration with any person or entity.

          (d) As long as this Warrant is, or any shares of Preferred Stock issued upon exercise of this
Warrant or any shares of Common Stock issued upon conversion of such shares of Preferred Stock are,
issued and

4.

 

outstanding, the Company will provide to the Holder the financial and other information described
in that certain Loan and Security Agreement No. 352040201 between the Company and Lighthouse
Capital Partners IV, L.P. dated as of March 3, 2003.

          (e) So long as this Warrant has not terminated, Holder shall be entitled to receive such
financial and other information as the Holder would be entitled to receive under the Rights
Agreement applicable to the Preferred Stock if Holder were a holder of that number of shares
issuable upon full exercise of this Warrant.

          (f) As of the date hereof, the authorized capital stock of the Company consists of (i)
45,000,000 shares of Common Stock, of which 4,943,997 shares are issued and outstanding and 144,303
shares are reserved for issuance upon the exercise of this Warrant with respect to Common Stock and
the conversion of the Preferred Stock into Common Stock if this Warrant is exercised with respect
to Preferred Stock, and (ii) 14,700,000 shares of Series A Preferred Stock, of which 14,262,748 are
issued and outstanding shares. Attached hereto as Exhibit B is a capitalization table summarizing
the capitalization of the Company. Once per calendar quarter, the Company will provide Holder with
a current capitalization table indicating changes, if any, to the number of outstanding shares of
common stock and preferred stock.

     15. Registration Rights. Upon the earlier of (x) when the Company next amends its Investors’
Rights Agreement, dated as of April 19, 2002, as it may be amended from time to time (the “Rights
Agreement”), or (y) when the Company consummates its initial public offering, the Company will
grant to the Holder all the rights of a “Holder” under the Company’s Rights Agreement, including,
without limitation, the registration rights contained therein, and agrees to amend the Rights
Agreement so that (i) the shares of Common Stock issuable upon conversion of the shares of
Preferred Stock issuable upon exercise of this Warrant shall be “Registrable Securities,” and (ii)
the Holder shall be a “Holder” and an “Investor” for the purposes of Section 1 of such Rights
Agreement.

     16. No Stockholder Rights. Except as provided in this Warrant, the Holder will not have any
rights as a stockholder of the Company until the exercise of this Warrant.

     17. Amendment. The terms of this Warrant may be amended, modified or waived only with the
written consent of the Holder and the Company.

     18. Representations and Covenants of the Holder. This Warrant has been entered into by the
Company in reliance upon the following representations and covenants of the Holder, which by its
execution hereof the Holder hereby confirms:

          (a) Investment Purpose. The right to acquire Preferred Stock or the Preferred Stock issuable
upon exercise of the Holder’s rights contained herein will be acquired for investment and not with
a view to the sale or distribution of any part thereof, and the Holder has no present intention of
selling or engaging in any public distribution of the same except pursuant to a registration or
exemption.

          (b) Accredited Investor. Holder is an “accredited investor” within the meaning of the
Securities and Exchange Rule 501 of Regulation D, as presently in effect.

          (c) Private Issue. The Holder understands (i) that the Preferred Stock issuable upon exercise
of the Holder’s rights contained herein is not registered under the 1933 Act or qualified under
applicable state securities laws on the ground that the issuance contemplated by this Warrant will
be exempt from the registration and qualifications requirements thereof, and (ii) that the
Company’s reliance on such exemption is predicated on the representations set forth in this Section
18.

          (d) Financial Risk. The Holder has such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of its investment and has the ability
to bear the economic risks of its investment.

5.

 

          (e) Disclosure of Information. The Holder acknowledges that it has received all the
information it considers necessary or appropriate for deciding whether to acquire the Preferred
Stock or the Preferred Stock issuable upon exercise. The Holder further represents that it has had
an opportunity to ask questions and receive answers from the Company regarding the terms and
conditions of the offering of the Preferred Stock or the Preferred Stock issuable upon exercise.

          (f) Authorization. Holder represents that it has full power and authority to enter
into this Warrant. This Warrant constitutes the Holder’s valid and legally binding obligation,
enforceable in accordance with its terms, except as may be limited by (i) applicable bankruptcy,
insolvency, reorganization, or similar laws relating to or affecting the enforcement of creditors’
rights and (ii) laws relating to the availability of specific performance, injunctive relief or
other equitable remedies.

          (g) Market Stand-Off Provision. The Holder hereby agrees that it will not, without the prior
written consent of the managing underwriter, during the period commencing on the date of the final
prospectus relating to the Company’s Initial Public Offering and ending on the date specified by
the Company and the underwriter (such period not to exceed one hundred eighty (180) days) (i) lend,
offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option
or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or
dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into
or exercisable or exchangeable for Common Stock (whether such shares or any such securities are
then owned by the Holder or are thereafter acquired), or (ii) enter into any swap or other
arrangement that transfers to another, in whole or in part, any of the economic consequences of
ownership of the Common Stock, whether any such transaction described in clause (i) or (ii) above
is to be settled by delivery of Common Stock or such other securities, in cash or otherwise. The
foregoing provisions of this Section 18(g) shall apply only to the Company’s initial public
offering of equity securities, and shall not apply to the sale of any shares to an underwriter
pursuant to an underwriting agreement. The underwriters in connection with the Company’s initial
public offering are intended third party beneficiaries of this Section 18(g) and shall have the
right, power and authority to enforce the provisions hereof as though they were a party hereto. In
order to enforce the foregoing covenant, the Company may impose stop transfer instructions with
respect to the Preferred Stock or the Preferred Stock issuable upon exercise until the end of such
period.

     19. Notices, Transfers, Etc.

          (a) Any notice or written communication required or permitted to be given to the Holder may be
given by certified mail or delivered to the Holder at the address most recently provided by the
Holder to the Company.

          (b) Subject to compliance with applicable federal and state securities laws (including,
without limitation, the deliver of investment representation letters and legal opinions reasonably
requested by the Company) and upon written notice to the Company, this Warrant may be transferred
by the Holder with respect to any or all of the shares purchasable hereunder to an affiliate of
Holder, or to any other transferee by providing to the Company notice of the portion of the Warrant
being transferred with the name, address and taxpayer identification number of the transferee and
surrendering this Warrant to the Company for reissuance to the transferee(s) (and Holder if
applicable). The Company shall not require Holder to provide an opinion of counsel if the transfer
is to an affiliate of Holder or if there is any other affiliate of Holder or if there is no
material question as to the availability of current information as referenced in Rule 144(c),
Holder represents that it has complied with Rule 144(d) and (e) in reasonable detail, the selling
broker represents that it has complied with Rule 144(f), and the Company is provided with a copy of
Holder’s notice of proposed sale. Upon surrender of this Warrant to the Company, together with the
assignment notice annexed hereto duly executed, for transfer of this Warrant as an entirety by the
Holder, the Company shall issue a new warrant of the same denomination to the assignee. Upon
surrender of this Warrant to the Company, together with the assignment hereof properly endorsed, by
the Holder for transfer with respect to a portion of the shares of Preferred Stock purchasable
hereunder, the Company shall issue a new warrant to the assignee, in such denomination as shall be
requested by the Holder hereof, and shall issue to such Holder a new warrant covering the number of
shares in respect of which this Warrant shall not have been transferred. Notwithstanding the
foregoing, the Holder shall not be permitted to transfer this Warrant (i) to more than ten (10)

6.

 

persons or entities or (ii) to a direct competitor of the Company (as defined in good faith by
the Company’s Board or Directors).

          (c) In case this Warrant shall be mutilated, lost, stolen or destroyed, the Company shall
issue a new warrant of like tenor and denomination and deliver the same (i) in exchange and
substitution for and upon surrender and cancellation of any mutilated Warrant, or (ii) in lieu of
any Warrant lost, stolen or destroyed, upon receipt of an affidavit of the Holder or other evidence
reasonably satisfactory to the Company of the loss, theft or destruction of such Warrant

     20. No Impairment. Unless otherwise consented to pursuant to the terms of this Warrant, the
Company will not, by amendment of its Certificate or through any reclassification, capital
reorganization, consolidation, merger, sale or conveyance of assets, dissolution, liquidation,
issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance of
performance of any of the terms of this Warrant, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such action as may be necessary or
appropriate in order to protect the rights of the Holder.

     21. Governing Law. The provisions and terms of this Warrant shall be governed by and
construed in accordance with the internal laws of the State of California without giving effect to
its principles regarding conflicts of laws.

     22. Successors and Assigns. This Warrant shall be binding upon the Company’s successors and
assigns and shall inure to the benefit of the Holder’s successors, legal representatives and
permitted assigns.

     23. Business Days. If the last or appointed day for the taking of any action required or the
expiration of any rights granted herein shall be a Saturday or Sunday or a legal holiday in
California, then such action may be taken or right may be exercised on the next succeeding day
which is not a Saturday or Sunday or such a legal holiday.

     24. Qualifying Public Offering. If the Company shall effect a firm commitment underwritten
public offering of shares of Common Stock which results in the conversion of the Preferred Stock
into Common Stock pursuant to the Company’s Certificate in effect immediately prior to such
offering, then, effective upon such conversion, this Warrant shall change from the right to
purchase shares of Preferred Stock to the right to purchase shares of Common Stock, and the Holder
shall thereupon have the right to purchase, at a total price equal to that payable upon the
exercise of this Warrant in full, the number of shares of Common Stock which would have been
receivable by the Holder upon the exercise of this Warrant for shares of Preferred Stock
immediately prior to such conversion of such shares of Preferred Stock into shares of Common Stock,
and in such event appropriate provisions shall be made with respect to the rights and interest of
the Holder to the end that the provisions hereof (including, without limitation, the provisions for
the adjustment of the Purchase Price and of the number of shares purchasable upon exercise of this
Warrant and the provisions relating to the net issue election) shall thereafter be applicable to
any shares of Common Stock deliverable upon the exercise hereof.

     25. Value. The Company and the Holder agree that the value of this Warrant on the date of
grant is $100.

	 	 	 	 	 	 	 
	Dated: March 10, 2003	 	Aruba Wireless Networks, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Pankaj Manglik
 

	 	 
	 	 	Name: Pankaj Manglik	 	 
	 	 	Title: CEO	 	 

7.

 

Subscription

	 	 	 	 	 
	To: 
	 	 	 	 
	 

	 

	 	 
	 
	 	 	 	 
	Date: 
	 	 	 
	 

	 	 

	 	 

The
undersigned hereby subscribes for
              
            
             
  shares of Preferred Stock covered by this
Warrant. The certificate(s) for such shares shall be issued in the name of the undersigned or as
otherwise indicated below:

	 	 	 
	 

Signature

	 	 
	 
	 	 
	 

Name for Registration

	 	 
	 
	 	 
	 

Mailing Address

	 	 

1.

 

Net Issue Election Notice

	 	 	 	 	 	 	 	 	 	 	 
	To: 

	 	 	 	 	Date: 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 

The undersigned hereby elects under Section 4 to surrender the right to purchase shares of
Preferred Stock pursuant to this Warrant. The certificate(s) for such shares issuable upon such
net issue election shall be issued in the name of the undersigned or as otherwise indicated below:

	 	 	 
	 

Signature

	 	 
	 
	 	 
	 

Name for Registration

	 	 
	 
	 	 
	 

Mailing Address

	 	 

1.

 

Assignment

For value received   
             
           
             
  hereby sells, assigns and transfers unto   
             
           
             
   
             
           
             
   

 

 

[Please print or typewrite name and address of Assignee]

 

the within Warrant, and
does hereby irrevocably constitute and appoint      
          
         
          
         
          
       its attorney to
transfer the within Warrant on the books of the
within named Company with full power of substitution on the premises.

	 	 	 	 	 
	Dated:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 
	 

Signature

	 	 
	 
	 	 
	 

Name for Registration

	 	 
	 
	 	 
	In the Presence of:
	 	 
	 
	 	 
	 

	 	 

1.

 

Exhibit C

RECORDING REQUESTED BY

AND WHEN RECORDED RETURN TO:

Lighthouse Capital Partners IV, L.P.

500 Drake’s Landing Road

Greenbrae, CA 94904-3011

Attn.: Contract Administration

CONSENT TO REMOVAL OF PERSONAL PROPERTY

KNOW ALL PERSONS BY THESE PRESENTS:

     (a) The undersigned has an interest as owner and landlord in that certain real property (the
“Real Property”) in the County of Santa Clara, State of California, described as: See Exhibit 1
Attached Hereto For Full Legal Description, and commonly known as 180 Great Oaks Blvd., Suite B,
San Jose, California (Parcel No.                    ).

     (b) ARUBA WIRELESS NETWORKS, INC., a Delaware corporation (“Borrower”), has entered into or
will enter into a Loan and Security Agreement No. 352040201 with LIGHTHOUSE CAPITAL PARTNERS IV,
L.P. (“Lender”) (as amended and supplemented from time to time, the “Agreement”).

     (c) Lender, as a condition to entering into the Agreement, requires that the undersigned
consent to the removal by Lender of the equipment and other assets covered by the Agreement
(hereinafter the “Equipment”) from the Real Property, no matter how it is affixed thereto, and to
the other matters set forth below.

NOW, THEREFORE, for good and sufficient consideration, receipt of which is hereby acknowledged,
the undersigned consents to the placing of the Equipment on the Real Property, and agrees with
Lender as follows:

     1. The undersigned waives and releases each and every right which undersigned now has, under
the laws of the State of California or by virtue of the lease for the Real Property now in effect, to levy
or distrain upon for rent, in arrears, in advance or both, or to claim or assert title to the
Equipment that is already on said Real Property, or may hereafter be delivered or installed
thereon.

     2. The Equipment shall be considered to be personal property and shall not be considered part
of the Real Property regardless of whether or by what means it is or may become attached or affixed
to the Real Property.

     3. The undersigned will permit Lender, or its agent or representative, to enter upon the Real
Property for the purpose of exercising any right it may have under the terms of the Lease Agreement
or otherwise, including, without limitation, the right to remove the Equipment; provided, however,
that if Lender, in removing the Equipment damages any improvements of the undersigned on the Real
Property, Lender will, at its expense, cause same to be repaired, normal wear and tear excepted.
The right of Lender to enter the Real Property shall not terminate until thirty (30) days after
Lender receives written notice from the undersigned of the termination of the Lease.

     4. This agreement shall be binding upon the heirs, successors and assigns of the undersigned
and shall inure to the benefit of Lender and its successors and assigns.

1

 

IN WITNESS
WHEREOF, the undersigned has executed this instrument
this                     day of                                      ,                 
    .

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	LANDLORD	 	 	 	 	 	Notarial Acknowledgment required.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:  	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Company Name:	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 
	Street Address:	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 
	City, State, Zip:	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 
	Phone:
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Fax:
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	E-mail:  	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 

Attach Legal Description of the Real Property

2

 

Exhibit D

LOAN AGREEMENT SUPPLEMENT NO.01

     LOAN
AGREEMENT SUPPLEMENT
NO.       , dated
                                 (“Supplement”), to the Loan and Security
Agreement No. 352040201 dated as of March 3, 2003 (the
“Agreement”) by and between ARUBA WIRELESS
NETWORKS, INC., a Delaware corporation (the “Borrower”), and LIGHTHOUSE CAPITAL PARTNERS IV, L.P.
(the “Lender”).

     Capitalized terms used herein but not otherwise defined herein are used with the respective
meanings given to such terms in the Agreement.

     The amount being advanced under this Supplement is $                     . The Loan Commencement Date is
                    . The Funding Date shall be the date the amount to be advanced hereunder is disbursed to the
Borrower and shall be set forth in the Summary of Loan Agreement Supplement.

     Attached
as Annex A hereto is a list of equipment added to the Collateral financed under the
Agreement. This Collateral is located
at:                    .

     Attached
as Annex B hereto is the Stipulated Loan Value Table which sets forth the schedule
of Stipulated Loan Values with respect to the Loan.

     Attached
as Annex C hereto is the Summary of Loan Agreement Supplement.

     Borrower hereby certifies that (a) the foregoing information is true and correct and
authorizes Lender to endorse in its books and records, the Loan Factor applicable to the Loan
contemplated in this Loan Agreement Supplement and the principal amount set forth in the Summary
of Loan Agreement Supplement; (b) the representations and warranties made by Borrower in Section 5
of the Loan Agreement and in the other Loan Documents are true and correct on the date hereof and
will be true and correct on the Funding Date; (c) Borrower has met or will by the Funding Date
(except to the extent they relate specifically to any earlier date, in which case such
representations and warranties shall continue to have been true and correct as of such date) meet
all conditions set forth in Section 3 of the Loan Agreement; (d) Borrower is now, and on the
Funding Date will be, in compliance with the covenants and the requirements contained in Sections
6 and 7 of the Loan Agreement; and (e) no Default or Event of Default has occurred and is
continuing under the Loan Agreement.

     This Supplement is being delivered in the State of California.

     This Supplement may be executed by Borrower and Lender in separate counterparts, each of
which when so executed and delivered shall be an original, but all such counterparts shall
together constitute but one and the same instrument.

     IN WITNESS WHEREOF, Borrower and Lender have caused this Supplement to be duly executed and
delivered as of this day and year first above written.

	 	 	 	 	 	 	 	 	 
	BORROWER:	 	 	 	LENDER:
	 
	 	 	 	 	 	 	 	 
	ARUBA WIRELESS NETWORKS, INC.	 	 	 	LIGHTHOUSE CAPITAL PARTNERS IV, L.P.
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:
	 	LIGHTHOUSE MANAGEMENT
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	PARTNERS IV, L.L.C., its general partner
	Name:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 
	 

	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Annex A- List of Collateral	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 
	Annex
B — Stipulated Loan Value

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 
	Annex C — Summary of Loan Agreement Supplement
	 	 	 	 	 	 

 

 

Annex A

     The following represent further specific descriptions of the Collateral:

List of Collateral

 

 

Annex B

STIPULATED LOAN VALUE TABLE

TO

LOAN AGREEMENT SUPPLEMENT NO.
        

To LOAN AND SECURITY AGREEMENT NO. 352040201, dated March 3, 2003 (“Agreement”),

by and between LIGHTHOUSE CAPITAL PARTNERS W, L.P., a Delaware limited partnership (“Lends”),

and ARUBA WIRELESS NETWORKS, INC., a Delaware corporation
(“Borrower”).

(All capitalized terms not otherwise defined herein shall have the meanings given to such terms in
the Agreement.)

     Stipulated Loan Value. The Stipulated Loan Value for each item of Equipment is the Stated Cost
for the item(s) multiplied by Stipulated Loan Value Percentage for the appropriate Payment Number.

	 	 	 	 	 	 	 
	 	 	Stipulated	 	 	 	Stipulated
	Rent	 	Loss	 	Rent	 	Loss
	Payment	 	Value	 	Payment	 	Value
	Number	 	Percentage	 	Number	 	Percentage
	1-4
	 	112.00%	 	22	 	60.83%
	5
	 	109.16%	 	23	 	57.99%
	6
	 	106.31%	 	24	 	55.14%
	7
	 	103.47%	 	25	 	52.30%
	8
	 	100.63%	 	26	 	49.46%
	9
	 	97.79%	 	27	 	46.61%
	10
	 	94.94%	 	28	 	43.77%
	11
	 	92.10%	 	29	 	40.93%
	12
	 	89.26%	 	30	 	38.09%
	13
	 	86.41%	 	31	 	35.24%
	14
	 	83.57%	 	32	 	32.40%
	15
	 	80.73%	 	33	 	29.56%
	16
	 	77.89%	 	34	 	26.71%
	17
	 	75.04%	 	35	 	23.87%
	18
	 	72.20%	 	36	 	21.03%
	19
	 	69.36%	 	37	 	18.19%
	20
	 	66.51%	 	38	 	15.34%
	21
	 	63.67%	 	39 and thereafter	 	12.50%

 

			
	*	 	Each Stipulated Loan Value amount assumes payment of all Scheduled Payments due on or
before the indicated Payment Date.

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Borrower’s Initials:

	 	 	 	 	 	Lender’s Initials:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

 

 

Annex C

SUMMARY
OF LOAN AGREEMENT SUPPLEMENT NO.
         ; to

LOAN AND SECURITY AGREEMENT NO. 352040201 dated March 3, 2003 (“Agreement”),

by and between LIGHTHOUSE CAPITAL PARTNERS IV, L.P.
(“Lender”) and 
ARUBA WIRELESS
NETWORKS, INC., a Delaware corporation (“Borrowed”)

(All capitalized terms not otherwise defined herein shall have the meanings given to such terms in
the Agreement.)

	 	 	 	 	 
	Funding Date:

	 	 	 	                             , 200            
	 
	 	 	 	 
	Loan Commencement Date:

	 	 	 	                             , 200            
	 
	 	 	 	 
	Original Loan Amount:

	 	 	 	$                                               
	 
	 	 	 	 
	Interim Payment:

	 	 	 	$                                               
	 
	 	 	 	 
	Loan Factor:

	 	 	 	Months 1-3:                                               %
	 
	 	 	 	 
	 

	 	 	 	Months 4-39:                                               %
	 
	 	 	 	 
	Scheduled Payments*:

	 	 	 	3 payments of $                    each,
payable monthly in advance, followed by 36 payments of
$                     each, payable monthly in advance.

	Final Payment*:	 	An additional amount equal to the Final Payment Percentage multiplied by
the original Loan Amount then in effect, shall be paid on the Maturity Date with respect to
such Loan.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 
	 	 	LIGHTHOUSE CAPITAL PARTNERS IV, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	LIGHTHOUSE MANAGEMENT	 	 
	 

	 	 	 	PARTNERS IV, L.L.C., its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

Exhibit E

ANCILLARY DOCUMENTS

Officer’s Certificate

Insurance Request form

 

 

ArubaWireless
Networks, Inc.

OFFICER’S CERTIFICATE

     The
undersigned,                                    , hereby certifies that:

     1. He/She
is the duly elected and acting
                                   
of Aruba Wireless Networks, Inc.,
a Delaware corporation (the “Company”).

     2. That on the date hereof, each person listed below holds the office in the Company
indicated opposite his or her name and that the signature appearing thereon is the genuine
signature of each such person:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	NAME

	 	 	 	 	 	OFFICE
	 	 	 	 	 	SIGNATURE
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

     3. Attached
hereto as Exhibit A is a true and correct copy of the Amended and Restated
Certificate of Incorporation of the Company, as amended, as in effect as of the date hereof.

     4. Attached
hereto as Exhibit B is a true and correct copy of the Bylaws of the Company, as
amended, as in effect as of the date hereof.

     5. Attached
hereto as Exhibit C is a copy of the resolutions of the Board of Directors of the
Company authorizing and approving the Company’s execution, delivery and performance of a loan
facility with Lighthouse Capital Partners IV, L.P.

     IN
WITNESS WHEREOF, the undersigned has executed this Officer’s Certificate on                     .

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	ArubaWireless Networks, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

     I,
the
                                   
of the Company, do hereby certify that
          is the duly
qualified, elected and acting
                                    of the Company and that the above signature is his or her
genuine signature.

     IN
WITNESS WHEREOF, the undersigned has executed and delivered this Officer’s Certificate on                     .

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	ArubaWireless Networks, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

EVIDENCE OF INSURANCE

	RE:	 	Loan and Security Agreement No. 352040201
(“Agreement”)

Please submit the attached Certificate of Insurance to your Insurance Broker as soon as possible.

Please note that the Certificate of Insurance is required prior to funding.

 

 

	 	 	 
	To:

	 	Broker: Please prepare a Certificate of Insurance as described and
	From: Aruba Wireless Networks, Inc.

	 	send to Certificate Holder via fax and regular mail below.

	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	CERTIFICATE OF INSURANCE

	 	 	 	 	DATE (MM/DD/YY	 
	 	 	 	 	 	 
	 	PRODUCER	 	 	THIS CERTIFICATE IS ISSUED AS A MATTER OF
INFORMATION ONLY AND CONFERS NO RIGHTS UPON
THE CERTIFICATE HOLDER. THIS CERTIFICATE
DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE
AFFORDED BY THE POLICIES BELOW.	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	 	 	 	INSURERS AFFORDING COVERAGE
	 
	 	 	 	 	 	 
	 	INSURED	 	 	INSURER A:	 
	 	 	 	 	 	 
	 	 	 	 	INSURER B:	 
	 	 	 	 	 	 
	 	Aruba Wireless Networks, Inc.	 	 	INSURER C:	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 

     COVERAGES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY
PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER
DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAYBE ISSUED OR MAY PERTAIN. THE INSURANCE
AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF
SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	INSR	 	 	 	 	 	 	 	 	EFFECTIVE	 	 	EXPIRATION DATE	 	 	 	 
	 	I.TR	 	 	TYPE OF INSURANCE	 	 	POLICY NUMBER	 	 	DATE(MM/DD/YY)	 	 	(MM/DD/YY)	 	 	LIMITS	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	X GENERAL LIABILITY
	 	 	 	 	 	 	 	 	 	 	 	EACH OCCURRENCE
	 	 	$2,000,000 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	COMMERCIAL GENERAL LIABILITY
	 	 	 	 	 	 	 	 	 	 	 	FIRE DAMAGE (Any one
fire)
	 	 	$included 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	CLAIMS MADE    X OCCUR
	 	 	 	 	 	 	 	 	 	 	 	MED EXP (Any one
Person)
	 	 	$10,000 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	PERSONAL &ADV INJURY
	 	 	$1,000,000 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	A

	 	 	GEN’L AGGREGATE LIMIT
APPLIES PER
	 	 	 	 	 	 	 	 	 	 	 	GENERAL AGGREGATE
	 	 	$2,000,000 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	POLICY     PROJECT     LOC
	 	 	 	 	 	 	 	 	 	 	 	PRODUCTS-COM/OP AGG
	 	 	$2,000,000 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	AUTOMOBILE LIABILITY

ANY AUTO
	 	 	 	 	 	 	 	 	 	 	 	COMBINED SINGLE LIMIT

(Ea accident)
	 	 	$ 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	ALL OWNED AUTOS

SCHEDULED AUTOS
	 	 	 	 	 	 	 	 	 	 	 	BODILY INJURY

(Per person)
	 	 	$ 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	HIRED AUTOS

NON OWNED AUTOS
	 	 	 	 	 	 	 	 	 	 	 	BODILY INJURY

(Per accident)
	 	 	$ 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	PROPERTY DAMAGE

(Per accident
	 	 	$ 	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	OTHER THAN     EA OCC
	 	 	$ 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	AUTOONLY     AGG
	 	 	$ 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	EXCESS LIABILITY
	 	 	 	 	 	 	 	 	 	 	 	EACH OCCURRENCE	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	OCCUR CLAIMS MADE
	 	 	 	 	 	 	 	 	 	 	 	AGGREGATE	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	DEDUCTIBLE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$ 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	A

	 	 	RETENTION $
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$ 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$ 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	

A

	 	 	OTHER

Business Personal Properly
	 	 	 	 	 	 	 	 	 	 	 	

Limit: $1,750,000
	 	 	“All Risk” of Direct
Physical Loss or
Damage( Subject to
Policy Exclusions &
Terms)	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL
PROVISIONS

	 
	 	Lighthouse Capital Partners is named as Additional Insured and Loss Payee.

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	

CERTIFICATE HOLDER

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Lighthouse
Capital Partners
 500
Drake’s Landing Road

Greenbrae, CA. 94904-3011

Attn: Contract Administration

Fax: 415-925-3387 Phone: 415-464-5900	 	 	SHOULD ANY OF THE ABOVE
DESCRIBED POLICIES BE CANCELLED
BEFORE THE EXPIRATION DATE
THEREOF, THE ISSUING INSURER
WILL ENDEAVOR TOMAIL 30 DAYS
WRITTEN NOTICE TO THE
CERTIFICATE HOLDER NAMED TO THE
LEFT. BUT FAILURE TO DO SO SHALL
IMPOSE NO OBLIGATION OR
LIABILITY OF ANY KIND UPON
THE INSURER, ITS AGENTS OR
REPRESENTATIVES.	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

SCHEDULE 1

EXISTING LIENS

[TO BE PROVIDED BY BORROWER]

 

 

SCHEDULE 2

SUBSIDIARIES

[TO BE PROVIDED BY BORROWER]

 

 

THIS WARRANT AND THE SECURITIES ISSUED UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS, AND
MAY NOT BE SOLD OR TRANSFERRED UNLESS SUCH SALE OR TRANSFER IS IN ACCORDANCE WITH THE REGISTRATION
REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS OR SOME OTHER EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS IS AVAILABLE WITH RESPECT THERETO.

PREFERRED STOCK PURCHASE WARRANT

			
	 	 	 
	Warrant No. B-3
	 	Number of Shares: 41,667

Series B Preferred Stock

Aruba Wireless Networks, Inc.

Effective as of May 18, 2004

Void after May 18, 2011

     1. Issuance. This Preferred Stock Purchase Warrant (the “Warrant”) is issued to
Lighthouse Capital Partners IV, L.P. (“Lighthouse”) by Aruba Wireless Networks,
Inc., a Delaware corporation (hereinafter with its successors called the “Company”). All
capitalized terms used herein, but not defined herein, shall have the meaning ascribed to such
terms under that certain Loan and Security Agreement No.3522 between Company and Lighthouse of even
date herewith (the “Agreement”).

     2. Purchase Price; Number of Shares. The registered holder of this Warrant (the “Holder”),
commencing on the date hereof, is entitled upon surrender of this Warrant with the subscription
form annexed hereto duly executed, at the principal office of the Company, to purchase from the
Company, at a price per share of $1.20 (the “Purchase Price”), 41,667 fully paid and nonassessable
shares of the Company’s Series B Preferred Stock, $0.0001 par value (the “Preferred Stock”).

Until such time as this Warrant is exercised in full or expires, the Purchase Price and the
securities issuable upon exercise of this Warrant are subject to adjustment as hereinafter
provided. The person or persons in whose name or names any certificate representing shares of
Preferred Stock is issued hereunder shall be deemed to have become the holder of record of the
shares represented thereby as at the close of business on the date this Warrant is exercised with
respect to such shares, whether or not the transfer books of the Company shall be closed.

     3. Payment of Purchase Price. The Purchase Price may be paid (i) in cash or by check, (ii) by
the surrender by the Holder to the Company of any promissory notes or other obligations issued by
the Company, with all such notes and obligations so surrendered being credited against the Purchase
Price in an amount equal to the principal amount thereof plus accrued interest to the date of
surrender, or (iii) by any combination of the foregoing.

     4. Net Issue Election. The Holder may elect to receive, without the payment by the Holder of
any additional consideration, shares of Preferred Stock equal to the value of this Warrant or any
portion hereof by the surrender of this Warrant or such portion to the Company, with the net issue
election notice annexed hereto duly executed, at the principal office of the Company. Thereupon,
the Company shall issue to the Holder such number of fully paid and nonassessable shares of
Preferred Stock as is computed using the following formula:

1.

 

	 	 	 	 	 	 	 
	 

	 	X=
	 	Y(A-B)
	 	 
	 

	 	 	 	A	 	 

	 	 	 	 	 
	where:

	 	X =
	 	the number of shares of Preferred Stock to be issued to the Holder pursuant to
this Section 4.
	 
	 	 	 	 
	 

	 	Y =
	 	the number of shares of Preferred Stock in respect of which
the net issue election is made pursuant to this Section 4.
	 
	 	 	 	 
	 

	 	A =
	 	the Fair Market Value (defined below) of one share of
Preferred Stock, as determined at the time the net issue election is made
pursuant to this Section 4.
	 
	 	 	 	 
	 

	 	B =
	 	the Purchase Price in effect under this Warrant at the time
the net issue election is made pursuant to this Section 4.

          “Fair Market Value” of a share of Preferred Stock (or fully paid and nonassessable shares of
the Company’s common stock, $0.0001 par value (the “Common Stock”) if the Preferred Stock has been
automatically converted into Common Stock) as of the date that the net issue election is made (the
“Determination Date”) shall mean:

          (i) If the net issue election is made in connection with and contingent upon the closing of
the sale of the Company’s Common Stock to the public in a public offering pursuant to a
Registration Statement under the 1933 Act (a “Public Offering”), and if the Company’s Registration
Statement relating to such Public Offering (“Registration Statement”) has been declared effective
by the Securities and Exchange Commission, then the initial “Price to Public” specified in the
final prospectus with respect to such offering multiplied by the number of shares of Common Stock
into which each share of Preferred Stock is then convertible.

          (ii) If the net issue election is not made in connection with and contingent upon a Public
Offering, then as follows:

               (a) If traded on a securities exchange or the Nasdaq National Market, the fair market value of
the Common Stock shall be deemed to be the average of the closing or last reported sale prices of
the Common Stock on such exchange or market over the five day period ending five trading days prior
to the Determination Date, and the fair market value of the Preferred Stock shall be deemed to be
such fair market value of the Common Stock multiplied by the number of shares of Common Stock into
which each share of Preferred Stock is then convertible;

               (b) If otherwise traded in an over-the-counter market, the fair market value of the Common
Stock shall be deemed to be the average of the closing ask prices of the Common Stock over the five
day period ending five trading days prior to the Determination Date, and the fair market value of
the Preferred Stock shall be deemed to be such fair market value of the Common Stock multiplied by
the number of shares of Common Stock into which each share of Preferred Stock is then convertible;
and

               (c) If there is no public market for the Common Stock, then fair market value shall be
determined in good faith by the Company’s Board of Directors.

     5. Partial Exercise. This Warrant may be exercised in part, and the Holder shall be entitled
to receive a new warrant, which shall be dated as of the date of this Warrant, covering the number
of shares in respect of which this Warrant shall not have been exercised.

     6. Fractional Shares. In no event shall any fractional share of Preferred Stock be issued
upon any exercise of this Warrant, but in lieu of any such fractional shares the Company shall make
a cash payment therefor on the basis of the Purchase Price.

2.

 

     7. Expiration Date; Automatic Exercise. This Warrant shall expire on the first to occur of
(i)the close of business on May 18, 2011, and (ii) the third anniversary of the initial Public
Offering of the Company’s securities, and shall be void thereafter (the “Expiration Date”).
Notwithstanding the foregoing, this Warrant shall automatically be deemed to be exercised in full
pursuant to the provisions of Section 4 hereof, without any further action on behalf of the Holder,
immediately prior to the time this Warrant would otherwise expire pursuant to the preceding
sentence. Notwithstanding the term of this Warrant fixed pursuant to this Section 7 and provided
Holder has received advance notice of at least twenty (20) days and has not earlier converted, this
Warrant shall automatically be converted pursuant to Section 4 hereof, without any action by
Holder, upon the closing of a sale of all or substantially all of the Company’s assets, or the
merger or consolidation of the Company with or into another corporation (other than a merger or
consolidation for the principal purpose of changing the domicile of the Company) that results in
the transfer of fifty percent (50%) or more of the outstanding voting power of the Company (a
"Merger”), except to the extent assumed by the successor corporation (or parent thereof) in
connection with such Merger. In the event that any outstanding warrants to purchase equity
securities of the Company are assumed, this Warrant shall also be similarly assumed.
Notwithstanding anything to the contrary in this Warrant, the holder may rescind any exercise of
its purchase rights after any notice of termination of the proposed transaction if the exercise of
this Warrant occurred after the Company notified the Holder that the Merger was proposed or if the
exercise was otherwise precipitated by such proposed Merger. In the event of such rescission, this
Warrant will continue to be exercisable on the same terms and conditions. Notwithstanding the
foregoing, in the event the Warrant is automatically deemed to be exercised pursuant to this
Section 7, the Company shall not be required to surrender the certificate representing the
Preferred Stock until such time as the Holder surrenders the Warrant.

     8. Reserved Shares; Valid Issuance. The Company covenants that it will at all times from and
after the date hereof reserve and keep available such number of its authorized shares of Preferred
Stock and Common Stock free from all preemptive or similar rights therein, as will be sufficient to
permit, respectively, the exercise of this Warrant in full and the conversion into shares of Common
Stock of all shares of Preferred Stock receivable upon such exercise. The Company further
covenants that such shares as may be issued pursuant to such exercise and/or conversion will, upon
issuance, be duly and validly issued, fully paid and nonassessable and free from all taxes, liens
and charges with respect to the issuance thereof.

     9. Stock Splits and Dividends. If after the date hereof the Company shall subdivide the
Preferred Stock, by split-up or otherwise, or combine the Preferred Stock, or issue additional
shares of Preferred Stock in payment of a stock dividend on the Preferred Stock, the number of
shares of Preferred Stock issuable on the exercise of this Warrant shall forthwith be
proportionately increased in the case of a subdivision or stock dividend, or proportionately
decreased in the case of a combination, and the Purchase Price shall forthwith be proportionately
decreased in the case of a subdivision or stock dividend, or proportionately increased in the case
of a combination.

     10. Adjustments for Diluting Issuances. The antidilution rights applicable to the Preferred
Stock of the Company are set forth in the Company’s Certificate of Incorporation, as amended from
time to time (the “Articles”), a true and complete current copy of which is attached hereto as
Exhibit A. The Company shall promptly provide the Holder hereof with any restatement, amendment or
modification to the Articles promptly after the same has been made.

     11. Mergers and Reclassifications. If after the date hereof the Company shall enter into any
Reorganization (as hereinafter defined), then, as a condition of such Reorganization, lawful
provisions shall be made, and duly executed documents evidencing the same from the Company or its
successor shall be delivered to the Holder, so that the Holder shall thereafter have the right to
purchase, at a total price not to exceed that payable upon the exercise of this Warrant in full,
the kind and amount of shares of stock and other securities and property receivable upon such
Reorganization by a holder of the number of shares of Preferred Stock which might have been
purchased by the Holder immediately prior to such Reorganization, and in any such case appropriate
provisions shall be made with respect to the rights and interest of the Holder to the end that the
provisions hereof (including without limitation, provisions for the adjustment of the Purchase
Price and the number of shares issuable hereunder and the provisions relating to the net issue
election) shall thereafter be applicable in relation to any shares of stock or other securities and
property thereafter deliverable upon exercise hereof. For the purposes of this Section 11, the
term “Reorganization” shall include without limitation any reclassification, capital reorganization
or change of the

3.

 

Preferred Stock (other than as a result of a subdivision, combination or stock dividend provided
for in Section 9 hereof), or any consolidation of the Company with, or merger of the Company into,
another corporation or other business organization (other than a merger in which the Company is the
surviving corporation and which does not result in any reclassification or change of the
outstanding Preferred Stock and other than any Merger that results in the automatic exercise of
this Warrant pursuant to Section 7 hereof), or any sale or conveyance to another corporation or
other business organization of all or substantially all of the assets of the Company.

     12. Certificate of Adjustment. Whenever the Purchase Price is adjusted, as herein provided,
the Company shall promptly deliver to the Holder a certificate of the Company’s chief financial
officer setting forth the Purchase Price after such adjustment and setting forth a brief statement
of the facts requiring such adjustment.

     13. Notices of Record Date, Etc. In the event of:

          (a) any taking by the Company of a record of the holders of any class of securities for the
purpose of determining the holders thereof who are entitled to receive any dividend or other
distribution, or any right to subscribe for, purchase, sell or otherwise acquire or dispose of any
shares of stock of any class or any other securities or property, or to receive any other right;

          (b) any reclassification of the capital stock of the Company, capital reorganization of the
Company, consolidation or merger involving the Company, or sale or conveyance of all or
substantially all of its assets; or

          (c) any voluntary or involuntary dissolution, liquidation or winding-up of the Company;

then in each such event the Company will provide or cause to be provided to the Holder a written
notice thereof. Such notice shall be provided at least twenty (20) business days prior to the date
specified in such notice on which any such action is to be taken.

     14. Representations, Warranties and Covenants. This Warrant is issued and delivered by the
Company and accepted by the Holder on the basis of the following representations, warranties and
covenants made by the Company:

          (a) The Company has all necessary authority to issue, execute and deliver this Warrant and to
perform its obligations hereunder. This Warrant has been duly authorized issued, executed and
delivered by the Company and is the valid and binding obligation of the Company, enforceable in
accordance with its terms, except as may be limited by (i) applicable bankruptcy, insolvency,
reorganization, or similar laws relating to or affecting the enforcement of creditors’ rights and
(ii) laws relating to the availability of specific performance, injunctive relief or other
equitable remedies.

          (b) The shares of Preferred Stock issuable upon the exercise of this Warrant have been duly
authorized and reserved for issuance by the Company and, when issued in accordance with the terms
hereof, will be validly issued, fully paid and nonassessable.

          (c) The issuance, execution and delivery of this Warrant do not, and the issuance of the
shares of Preferred Stock upon the exercise of this Warrant in accordance with the terms hereof
will not, (i) violate or contravene the Company’s Articles or by-laws, or any law, statute,
regulation, rule, judgment or order applicable to the Company, (ii) violate, contravene or result
in a breach or default under any contract, agreement or instrument to which the Company is a party
or by which the Company or any of its assets are bound or (iii) require the consent or approval of
or the filing of any notice or registration with any person or entity (other than any applicable
consents, approvals or securities laws filings, which will be obtained or filed in a timely
manner).

          (d) So long as this Warrant has not terminated, Holder shall be entitled to receive such
financial and other information as the Holder would be entitled to receive under Section 2.1 of the
Amended and Restated Investor Rights Agreement (the “Amended Rights Agreement”) applicable to the
Preferred Stock if Holder

4.

 

were a holder of that number of shares issuable upon full exercise of this Warrant; provided the
rights under this Section 14(d) shall terminate upon the initial Public Offering of the Company’s
securities.

          (e) So long as this Warrant has not terminated, Holder shall be entitled to receive such
financial and other information as the Holder would be entitled to receive under the Stock Purchase
Agreement applicable to the Preferred Stock if Holder were a holder of that number of shares
issuable upon full exercise of this Warrant.

          (f) As of the date hereof, the authorized capital stock of the Company consists of (i)
55,000,000 shares of Common Stock, of which 8,891,051 shares are issued and outstanding, (ii)
14,444,551 shares of Series A Preferred Stock, of which 14,262,748 are issued and outstanding
shares and (iii) 19,000,000 shares of Series B Preferred Stock, of which 18,333,333 are issued and
outstanding. Attached hereto as Exhibit B is a capitalization table summarizing the capitalization
of the Company. Once per calendar quarter, the Company will provide Holder with a current summary
capitalization table indicating changes, if any, to the number of outstanding shares of common
stock and preferred stock.

     15. Registration Rights. As soon as reasonably practicable, the Company shall cause the
Holder to become party to the Company’s Amended Rights Agreement, such that Holder shall be
entitled to all rights and privileges under Section 1 only of the Amended Rights Agreement as a
“Holder” and “Investor” thereunder and the Preferred Stock issuable upon exercise of this Warrant
(and Common Stock issued upon conversion of such Preferred Stock) shall be “Registrable
Securities,” under the Amended Rights Agreement.

     16. Amendment. The terms of this Warrant may be amended, modified or waived only with the
written consent of the Holder and the Company.

     17. Representations and Covenants of the Holder. This Warrant has been entered into by the
Company in reliance upon the following representations and covenants of the Holder, which by its
execution hereof the Holder hereby confirms:

          (a) Authorization. The Holder represents that it has full power and authority to enter into
this Warrant. This Warrant constitutes the Holder’s valid and legally binding obligation,
enforceable in accordance with its terms, except as may be limited by (i) applicable bankruptcy,
insolvency, reorganization, or similar laws relating to or affecting the enforcement of creditors’
rights and (ii) laws relating to the availability of specific performance, injunctive relief or
other equitable remedies.

          (b) Investment Purpose. This Warrant and the Preferred Stock issuable upon exercise of the
Warrant is and will be acquired for investment and not with a view to the sale or distribution of
any part thereof, and the Holder has no present intention of selling or engaging in any public
distribution of the same except pursuant to a registration or exemption.

          (c) Accredited Investor. Holder is an “accredited investor” within the meaning of the
Securities and Exchange Rule 501 of Regulation D, as presently in effect.

          (d) Private Issue. The Holder understands (i) that the Preferred Stock issuable upon exercise
of the Holder’s rights contained herein is not registered under the 1933 Act or qualified under
applicable state securities laws on the ground that the issuance contemplated by this Warrant will
be exempt from the registration and qualifications requirements thereof, and (ii) that the
Company’s reliance on such exemption is predicated on the representations set forth in this Section
17.

          (e) Financial Risk. The Holder has such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of its investment and has the ability
to bear the economic risks of its investment.

5.

 

     18. Notices, Transfers, Etc.

          (a) All notices and other communications given or made pursuant hereto shall be in writing and
shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b)
when sent by confirmed electronic mail or facsimile if sent during normal business hours of the
recipient, and if not so confirmed, then on the next business day, (c) five (5) days after having
been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one
(1) day after deposit with a nationally recognized overnight courier, specifying next day delivery,
with written verification of receipt. All communications shall be sent to the respective parties
at the following addresses (or at such other addresses as shall be specified by notice given in
accordance with this Section 18): If to the Company:

Aruba Wireless Networks, Inc.

180 Great Oaks Boulevard

San Jose, CA 95119

Attention: Duston Williams

If to Holder:

Lighthouse Capital Partners IV, L.P.

500 Drake’s Landing Road

Greenbrae, CA 94904-3011

Attn: Contract Administration

          (b) Subject to compliance with applicable federal and state securities laws, this Warrant may
be transferred by the Holder with respect to any or all of the shares purchasable hereunder. Upon
surrender of this Warrant to the Company, together with the assignment notice annexed hereto duly
executed, for transfer of this Warrant as an entirety by the Holder, the Company shall issue a new
warrant of the same denomination to the assignee. Upon surrender of this Warrant to the Company,
together with the assignment hereof properly endorsed, by the Holder for transfer with respect to a
portion of the shares of Preferred Stock purchasable hereunder, the Company shall issue a new
warrant to the assignee, in such denomination as shall be requested by the Holder hereof, and shall
issue to such Holder a new warrant covering the number of shares in respect of which this Warrant
shall not have been transferred.

          (c) In case this Warrant shall be mutilated, lost, stolen or destroyed, the Company shall
issue a new warrant of like tenor and denomination and deliver the same (i) in exchange and
substitution for and upon surrender and cancellation of any mutilated Warrant, or (ii) in lieu of
any Warrant lost, stolen or destroyed, upon receipt of an affidavit of the Holder or other evidence
reasonably satisfactory to the Company of the loss, theft or destruction of such Warrant

     19. No Impairment. The Company will not, by amendment of its Articles or through any
reclassification, capital reorganization, consolidation, merger, sale or conveyance of assets,
dissolution, liquidation, issue or sale of securities or any other voluntary action, avoid or seek
to avoid the observance of performance of any of the terms of this Warrant, but will at all times
in good faith assist in the carrying out of all such terms and in the taking of all such action as
may be necessary or appropriate in order to protect the rights of the Holder.

     20. No Voting or Dividend Rights. Nothing contained in this Warrant shall be construed as
conferring upon the Holder hereof the right to vote or to consent or to receive notice as a
stockholder of the Company or any other matters or any rights whatsoever as a stockholder (except
as provided herein) of the Company. No dividends (except a stock dividend) or interest shall be
payable or accrued in respect of this Warrant or the interest represented hereby or the shares
purchasable hereunder, until, and only to the extent that, this Warrant shall have been exercised.

     21. Governing Law. The provisions and terms of this Warrant shall be governed by and
construed in accordance with the internal laws of the State of California without giving effect to
its principles regarding conflicts of laws.

6.

 

     22. Successors and Assigns. This Warrant shall be binding upon the Company’s successors and
assigns and shall inure to the benefit of the Holder’s successors, legal representatives and
permitted assigns.

     23. Business Days. If the last or appointed day for the taking of any action required or the
expiration of any rights granted herein shall be a Saturday or Sunday or a legal holiday in
California, then such action may be taken or right may be exercised on the next succeeding day
which is not a Saturday or Sunday or such a legal holiday.

     24. Conversion to Common Stock. If prior to the exercise in full of this Warrant, all of the
Preferred Stock shall have been converted into Common Stock pursuant to the Company’s Articles in
effect immediately prior to such conversion, then, effective upon such conversion, this Warrant
shall be exercisable only for shares of Common Stock, and the Holder shall thereupon have the right
to purchase, at a total price equal to that payable upon the exercise of this Warrant in full, the
number of shares of Common Stock which would have been receivable by the Holder if the Holder had
exercised this Warrant for shares of Preferred Stock immediately prior to such conversion of such
shares of Preferred Stock into shares of Common Stock, and in such event appropriate provisions
shall be made with respect to the rights and interest of the Holder to the end that the provisions
hereof (including, without limitation, the provisions for the adjustment of the Purchase Price and
of the number of shares purchasable upon exercise of this Warrant and the provisions relating to
the net issue election) shall thereafter be applicable to any shares of Common Stock deliverable
upon the exercise hereof.

     25. Market Stand-Off. The Holder hereby agrees that, to the extent requested by the Company
or an underwriter of securities of the Company and provided all officers and directors of Company
enter into similar agreements, it shall not sell or otherwise transfer or dispose of any Preferred
Stock or Common Stock (other than to donees or partners of the Holder who agree to be similarly
bound) for up to one hundred eighty (180) days following the effective date of a registration
statement of the Company filed under the Securities Act; provided, however, that such agreement
shall be applicable only to the first such registration statement of the Company which covers
securities to be sold on its behalf to the public in an underwritten offering but not to Common
Stock sold pursuant to such registration statement. In order to enforce the foregoing covenant,
the Company shall have the right to place restrictive legends on the certificates representing the
Preferred Stock issuable upon exercise of this Warrant (and Common Stock issued upon conversion of
such Preferred Stock) and to impose stop transfer instructions with respect to such Preferred Stock
and Common Stock.

7.

 

     26. Value. The Company and the Holder agree that the value of this Warrant on the date of
grant is $100.

     Dated: May 18, 2004

	 	 	 	 	 
	 	 	Aruba Wireless Networks, Inc.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Duston Williams
	 

	 	 	 	 
	 

	 	Name:
	 	Duston Williams
	 

	 	Title:
	 	CFO

Agreed and Accepted:

Lighthouse Capital Partners IV, L.P.

By: Lighthouse Management Partners IV, L.L.C.,

      its general partner

By:  /s/ Thomas Conneely             

Name: Thomas Conneely

Title: Vice President

8.

 

Subscription

To:                                         

Date:                                         

The undersigned hereby represents and warrants that the Representations and Warranties in Section
17 hereof are true and correct as of the date hereof. The undersigned
hereby subscribes for _________ shares of Preferred Stock covered by this Warrant. The certificate(s) for such
shares shall be issued in the name of the undersigned or as otherwise indicated below:

                                                            

Signature

                                                            

Name for Registration

                                                            

Mailing Address

1.

 

Net Issue Election Notice

			
	 	 	 
	To:                                         
	 	Date:                                         

The undersigned hereby elects under Section 4 to surrender the right to purchase shares of
Preferred Stock pursuant to this Warrant.

Net Exercise the attached Warrant with respect to __________ shares of Preferred Stock.

The undersigned hereby represents and warrants that the Representations and Warranties in Section
17 hereof are true and correct as of the date hereof. The certificate(s) for such shares issuable
upon such net issue election shall be issued in the name of the undersigned or as otherwise
indicated below:

                                                            

Signature

                                                            

Name for Registration

                                                            

Mailing Address

1.

 

Assignment

For value received  
            
           
            
     hereby sells, assigns and transfers unto  
            
           
            
           
     
            
              
    

 

 

[Please print or typewrite name and address of Assignee]

 

the within Warrant, and does hereby irrevocably constitute and
appoint            
            
             
     its attorney to transfer the within Warrant on the books of the
within named Company with full power of substitution on the premises.

	 	 	 	 	 
	Dated:

	 	 	 	 
	 

	 	

 	 	 
	 
	 	 	 	 
	 	 	 
	Signature	 	 
	 
	 	 	 	 
	 	 	 
	Name for Registration	 	 
	 
	 	 	 	 
	In the Presence of:	 	 
	 
	 	 	 	 
	 	 	 

1.

 

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933
ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR TRANSFERRED UNLESS SUCH SALE
OR TRANSFER IS IN ACCORDANCE WITH THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS OR
SOME OTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS IS
AVAILABLE WITH RESPECT THERETO.

PREFERRED STOCK PURCHASE WARRANT

			
	Warrant No. B-4
	 	Number of Shares: 222,222
	 
	 	Series B Preferred Stock

Aruba Wireless Networks, Inc.

Effective as of May 18, 2004

Void after May 18, 2011

     1. Issuance. This Preferred Stock Purchase Warrant (the “Warrant”) is issued to
Lighthouse Capital Partners IV, L.P. (“Lighthouse”) by Aruba Wireless Networks,
Inc., a Delaware corporation (hereinafter with its successors called the “Company”). All
capitalized terms used herein, but not defined herein, shall have the meaning ascribed to such
terms under that certain Loan and Security Agreement No.3522 between Company and Lighthouse of even
date herewith (the “Agreement”).

     2. Purchase Price; Number of Shares. The registered holder of this Warrant (the “Holder”),
commencing on the date hereof, is entitled upon surrender of this Warrant with the subscription
form annexed hereto duly executed, at the principal office of the Company, to purchase from the
Company, at a price per share of $1.20 (the “Purchase Price”), 222,222 fully paid and nonassessable
shares of the Company’s Series B Preferred Stock, $0.0001 par value (the “Preferred Stock”).

Until such time as this Warrant is exercised in full or expires, the Purchase Price and the
securities issuable upon exercise of this Warrant are subject to adjustment as hereinafter
provided. The person or persons in whose name or names any certificate representing shares of
Preferred Stock is issued hereunder shall be deemed to have become the holder of record of the
shares represented thereby as at the close of business on the date this Warrant is exercised with
respect to such shares, whether or not the transfer books of the Company shall be closed.

     3. Payment of Purchase Price. The Purchase Price may be paid (i) in cash or by check, (ii) by
the surrender by the Holder to the Company of any promissory notes or other obligations issued by
the Company, with all such notes and obligations so surrendered being credited against the Purchase
Price in an amount equal to the principal amount thereof plus accrued interest to the date of
surrender, or (iii) by any combination of the foregoing.

     4. Net Issue Election. The Holder may elect to receive, without the payment by the Holder of
any additional consideration, shares of Preferred Stock equal to the value of this Warrant or any
portion hereof by the surrender of this Warrant or such portion to the Company, with the net issue
election notice annexed hereto duly executed, at the principal office of the Company. Thereupon,
the Company shall issue to the Holder such number of fully paid and nonassessable shares of
Preferred Stock as is computed using the following formula:

1.

 

X= Y(A-B)

     A

	 	 	 	 	 	 	 
	 

	 	where:
	 	X =
	 	the number of shares of Preferred Stock to be issued to the Holder pursuant to
this Section 4.
	 
	 	 	 	 	 	 
	 

	 	 	 	Y =
	 	the number of shares of Preferred Stock covered by this
Warrant in respect of which the net issue election is made pursuant to this
Section 4.
	 
	 	 	 	 	 	 
	 

	 	 	 	A =
	 	the Fair Market Value (defined below) of one share of
Preferred Stock, as determined at the time the net issue election is made
pursuant to this Section 4.
	 
	 	 	 	 	 	 
	 

	 	 	 	B =
	 	the Purchase Price in effect under this Warrant at the time
the net issue election is made pursuant to this Section 4.

               “Fair Market Value” of a share of Preferred Stock (or fully paid and nonassessable shares of
the Company’s common stock, $0.0001 par value (the “Common Stock”) if the Preferred Stock has been
automatically converted into Common Stock) as of the date that the net issue election is made (the
“Determination Date”) shall mean:

               (i) If the net issue election is made in connection with and contingent upon the closing of
the sale of the Company’s Common Stock to the public in a public offering pursuant to a
Registration Statement under the 1933 Act (a “Public Offering”), and if the Company’s Registration
Statement relating to such Public Offering (“Registration Statement”) has been declared effective
by the Securities and Exchange Commission, then the initial “Price to Public” specified in the
final prospectus with respect to such offering multiplied by the number of shares of Common Stock
into which each share of Preferred Stock is then convertible.

               (ii) If the net issue election is not made in connection with and contingent upon a Public
Offering, then as follows:

                    (a) If traded on a securities exchange or the Nasdaq National Market, the fair market value of
the Common Stock shall be deemed to be the average of the closing or last reported sale prices of
the Common Stock on such exchange or market over the five day period ending five trading days prior
to the Determination Date, and the fair market value of the Preferred Stock shall be deemed to be
such fair market value of the Common Stock multiplied by the number of shares of Common Stock into
which each share of Preferred Stock is then convertible;

                    (b) If otherwise traded in an over-the-counter market, the fair market value of the Common
Stock shall be deemed to be the average of the closing ask prices of the Common Stock over the five
day period ending five trading days prior to the Determination Date, and the fair market value of
the Preferred Stock shall be deemed to be such fair market value of the Common Stock multiplied by
the number of shares of Common Stock into which each share of Preferred Stock is then convertible;
and

                    (c) If there is no public market for the Common Stock, then fair market value shall be
determined in good faith by the Company’s Board of Directors.

     5. Partial Exercise. This Warrant may be exercised in part, and the Holder shall be entitled
to receive a new warrant, which shall be dated as of the date of this Warrant, covering the number
of shares in respect of which this Warrant shall not have been exercised.

     6. Fractional Shares. In no event shall any fractional share of Preferred Stock be issued
upon any exercise of this Warrant, but in lieu of such fractional shares the Company shall make a
cash payment therefor on the basis of the Purchase Price.

2.

 

     7. Expiration Date; Automatic Exercise. This Warrant shall expire on the earlier to occur of
(i) the close of business on May 18, 2011, and (ii) the third anniversary of the initial Public
Offering of the Company’s securities, and shall be void thereafter (the “Expiration Date”).
Notwithstanding the foregoing, this Warrant shall automatically be deemed to be exercised in full
pursuant to the provisions of Section 4 hereof, without any further action on behalf of the Holder,
immediately prior to the time this Warrant would otherwise expire pursuant to the preceding
sentence. Notwithstanding the term of this Warrant fixed pursuant to this Section 7 and provided
Holder has received advance notice of at least twenty (20) days and has not earlier converted, this
Warrant shall automatically be converted pursuant to Section 4 hereof, without any action by
Holder, upon the closing of a sale of all or substantially all of the Company’s assets, or the
merger or consolidation of the Company with or into another corporation (other than a merger or
consolidation for the principal purpose of changing the domicile of the Company) that results in
the transfer of fifty percent (50%) or more of the outstanding voting power of the Company (a
“Merger”), except to the extent assumed by the successor corporation (or parent thereof) in
connection with such Merger. In the event that any outstanding warrants to purchase equity
securities of the Company are assumed, this Warrant shall also be similarly assumed.
Notwithstanding anything to the contrary in this Warrant, the holder may rescind any exercise of
its purchase rights after any notice of termination of the proposed transaction if the exercise was
otherwise precipitated by such proposed Merger. In the event of such recission, this Warrant will
continue to be exercisable on the same terms and conditions. Notwithstanding the foregoing, in the
event the Warrant is automatically deemed to be exercised pursuant to this Section 7, the Company
shall not be required to surrender the certificate representing the Preferred Stock until such time
as the Holder surrenders the Warrant.

     8. Reserved Shares; Valid Issuance. The Company covenants that it will at all times from and
after the date hereof reserve and keep available such number of its authorized shares of Preferred
Stock and Common Stock, free from all preemptive or similar rights therein, as will be sufficient
to permit, respectively, the exercise of this Warrant in full and the conversion into shares of
Common Stock of all shares of Preferred Stock receivable upon such exercise. The Company further
covenants that such shares as may be issued pursuant to such exercise and/or conversion will, upon
issuance, be duly and validly issued, fully paid and nonassessable and free from all taxes, liens
and charges with respect to the issuance thereof.

     9. Stock Splits and Dividends. If after the date hereof the Company shall subdivide the
Preferred Stock, by split-up or otherwise, or combine the Preferred Stock, or issue additional
shares of Preferred Stock in payment of a stock dividend on the Preferred Stock, the number of
shares of Preferred Stock issuable on the exercise of this Warrant shall forthwith be
proportionately increased in the case of a subdivision or stock dividend, or proportionately
decreased in the case of a combination, and the Purchase Price shall forthwith be proportionately
decreased in the case of a subdivision or stock dividend, or proportionately increased in the case
of a combination.

     10. Adjustments for Diluting Issuances. The other antidilution rights applicable to the
Preferred Stock and the Common Stock of the Company are set forth in the Certificate of
Incorporation, as amended from time to time (the “Articles”), a true and complete copy of which, in
their current form, are attached hereto as Exhibit A. The Company shall promptly provide the
Holder hereof with any restatement, amendment or modification to the Articles promptly after the
same has been made.

     11. Mergers and Reclassifications. If after the date hereof the Company shall enter into any
Reorganization (as hereinafter defined), then, as a condition of such Reorganization, lawful
provisions shall be made, and duly executed documents evidencing the same from the Company or its
successor shall be delivered to the Holder, so that the Holder shall thereafter have the right to
purchase, at a total price not to exceed that payable upon the exercise of this Warrant in full,
the kind and amount of shares of stock and other securities and property receivable upon such
Reorganization by a holder of the number of shares of Preferred Stock which might have been
purchased by the Holder immediately prior to such Reorganization, and in any such case appropriate
provisions shall be made with respect to the rights and interest of the Holder to the end that the
provisions hereof (including without limitation, provisions for the adjustment of the Purchase
Price and the number of shares issuable hereunder and the provisions relating to the net issue
election) shall thereafter be applicable in relation to any shares of stock or other securities and
property thereafter deliverable upon exercise hereof. For the purposes of this Section 11, the
term “Reorganization” shall include without limitation any reclassification, capital reorganization
or change of the

3.

 

Preferred Stock (other than as a result of a subdivision, combination or stock dividend provided
for in Section 9 hereof), or any consolidation of the Company with, or merger of the Company into,
another corporation or other business organization (other than a merger in which the Company is the
surviving corporation and which does not result in any reclassification or change of the
outstanding Preferred Stock and other than any Merger that results in the automatic exercise of
this Warrant pursuant to Section 7 hereof), or any sale or conveyance to another corporation or
other business organization of all or substantially all of the assets of the Company.

     12. Certificate of Adjustment. Whenever the Purchase Price is adjusted, as herein provided,
the Company shall promptly deliver to the Holder a certificate of the Company’s chief financial
officer setting forth the Purchase Price after such adjustment and setting forth a brief statement
of the facts requiring such adjustment.

     13. Notices of Record Date, Etc. In the event of:

          (a) any taking by the Company of a record of the holders of any class of securities for the
purpose of determining the holders thereof who are entitled to receive any dividend or other
distribution, or any right to subscribe for, purchase, sell or otherwise acquire or dispose of any
shares of stock of any class or any other securities or property, or to receive any other right;

          (b) any reclassification of the capital stock of the Company, capital reorganization of the
Company, consolidation or merger involving the Company, or sale or conveyance of all or
substantially all of its assets; or

          (c) any voluntary or involuntary dissolution, liquidation or winding-up of the Company;

then in each such event the Company will provide or cause to be provided to the Holder a written
notice thereof. Such notice shall be provided at least twenty (20) business days prior to the date
specified in such notice on which any such action is to be taken.

     14. Representations, Warranties and Covenants. This Warrant is issued and delivered by the
Company and accepted by the Holder on the basis of the following representations, warranties and
covenants made by the Company:

          (a) The Company has all necessary authority to issue, execute and deliver this Warrant and to
perform its obligations hereunder. This Warrant has been duly authorized, issued, executed and
delivered by the Company and is the valid and binding obligation of the Company, enforceable in
accordance with its terms, except as may be limited by (i) applicable bankruptcy, insolvency,
reorganization, or similar laws relating to or affecting the enforcement of creditors’ rights and
(ii) laws relating to the availability of specific performance, injunctive relief or other
equitable remedies.

          (b) The shares of Preferred Stock issuable upon the exercise of this Warrant have been duly
authorized and reserved for issuance by the Company and, when issued in accordance with the terms
hereof, will be validly issued, fully paid and nonassessable.

          (c) The issuance, execution and delivery of this Warrant do not, and the issuance of the
shares of Preferred Stock upon the exercise of this Warrant in accordance with the terms hereof
will not, (i) violate or contravene the Company’s Articles or by-laws, or any law, statute,
regulation, rule, judgment or order applicable to the Company or (ii) violate, contravene or result
in a breach or default under any contract, agreement or instrument to which the Company is a party
or by which the Company or any of its assets are bound or (iii) require the consent or approval of
or the filing of any notice or registration with any person or entity (other than any applicable
consents, approvals or securities laws filings, which will be obtained or filed in a timely
manner).

          (d) So long as this Warrant has not terminated, Holder shall be entitled to receive such
financial and other information as the Holder would be entitled to receive under Section 2.1 of the
Amended and Restated Investor Rights Agreement (the “Amended Rights Agreement”) applicable to the
Preferred Stock if Holder

4.

 

Were a holder of that number of shares issuable upon full exercise of this Warrant; provided the
rights under this Section 14(d) shall terminate upon the initial Public Offering of the Company’s
securities.

          (e) So long as this Warrant has not terminated, Holder shall be entitled to receive such
financial and other information as the Holder would be entitled to receive under the Stock Purchase
Agreement applicable to the Preferred Stock if Holder were a holder of that number of shares
issuable upon full exercise of this Warrant.

          (f) As of the date hereof, the authorized capital stock of the Company consists of (i)
55,000,000 shares of Common Stock, of which 8,891,051 shares are issued and outstanding and (ii) 14,
444,551 shares of Series A Preferred Stock, of which 14,262,748 are issued and outstanding shares
and (iii) 19,000,000 shares of Series B Preferred Stock, of which 18,333,333 are issued and
outstanding. Attached hereto as Exhibit B is a capitalization table summarizing the capitalization
of the Company. Once per calendar quarter, the Company will provide Holder with a current
capitalization table indicating changes, if any, to the number of outstanding shares of common
stock and preferred stock.

     15. Registration Rights. As soon as reasonably practicable, the Company shall cause the
Holder to become party to the Company’s Amended Rights Agreement, such that Holder shall be
entitled to all rights and privileges under Section 1 only of the Amended Rights Agreement as a
“Holder” and “Investor” thereunder and the Preferred Stock issuable upon exercise of this Warrant
(and Common Stock issued upon conversion of such Preferred Stock) shall be “Registrable
Securities,” under the Amended Rights Agreement.

     16. Amendment. The terms of this Warrant may be amended, modified or waived only with the
written consent of the Holder and the Company.

     17. Representations and Covenants of the Holder. This Warrant has been entered into by the
Company in reliance upon the following representations and covenants of the Holder, which by its
execution hereof the Holder hereby confirms:

          (a) Authorization. The Holder represents that it has full power and authority to enter into
this Warrant. This Warrant constitutes the Holder’s valid and legally binding obligation,
enforceable in accordance with its terms, except as may be limited by (i) applicable bankruptcy,
insolvency, reorganization, or similar laws relating to or affecting the enforcement of creditors’
rights and (ii) laws relating to the availability of specific performance, injunctive relief or
other equitable remedies.

          (b) Investment Purpose. This Warrant and the Preferred Stock issuable upon exercise of the
Warrant is and will be acquired for investment and not with a view to the sale or distribution of
any part thereof, and the Holder has no present intention of selling or engaging in any public
distribution of the same except pursuant to a registration or exemption.

          (c) Accredited Investor. Holder is an “accredited investor” within the meaning of the
Securities and Exchange Rule 501 of Regulation D, as presently in effect.

          (d) Private Issue. The Holder understands (i) that the Preferred Stock issuable upon exercise
of the Holder’s rights contained herein is not registered under the 1933 Act or qualified under
applicable state securities laws on the ground that the issuance contemplated by this Warrant will
be exempt from the registration and qualifications requirements thereof, and (ii) that the
Company’s reliance on such exemption is predicated on the representations set forth in this Section
17.

          (e) Financial Risk. The Holder has such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of its investment and has the ability
to bear the economic risks of its investment.

5.

 

     18. Notices, Transfers, Etc.

          (a) All notices and other communications given or made pursuant hereto shall be in writing and
shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b)
when sent by confirmed electronic mail or facsimile if sent during normal business hours of the
recipient, and if not so confirmed, then on the next business day, (c) five (5) days after having
been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one
(1) day after deposit with a nationally recognized overnight courier, specifying next day
delivery, with written verification of receipt. All communications shall be sent to the respective
parties at the following addresses (or at such other addresses as shall be specified by notice
given in accordance with this Section 18): If to the Company:

Aruba Wireless Networks, Inc.

180 Great Oaks Boulevard

San Jose, CA 95119

Attention: Duston Williams

If to Holder:

Lighthouse Capital Partners IV, L.P.

500 Drake’s Landing Road

Greenbrae, CA 94904-3011

Attention: Contract Administration

          (b) Subject to compliance with applicable federal and state securities laws, this Warrant may
be transferred by the Holder with respect to any or all of the shares purchasable hereunder. Upon
surrender of this Warrant to the Company, together with the assignment notice annexed hereto duly
executed, for transfer of this Warrant as an entirety by the Holder, the Company shall issue a new
warrant of the same denomination to the assignee. Upon surrender of this Warrant to the Company,
together with the assignment hereof properly endorsed, by the Holder for transfer with respect to a
portion of the shares of Preferred Stock purchasable hereunder, the Company shall issue a new
warrant to the assignee, in such denomination as shall be requested by the Holder hereof, and shall
issue to such Holder a new warrant covering the number of shares in respect of which this Warrant
shall not have been transferred.

          (c) In case this Warrant shall be mutilated, lost, stolen or destroyed, the Company shall
issue a new warrant of like tenor and denomination and deliver the same (i) in exchange and
substitution for and upon surrender and cancellation of any mutilated Warrant, or (ii) in lieu of
any Warrant lost, stolen or destroyed, upon receipt of an affidavit of the Holder or other evidence
reasonably satisfactory to the Company of the loss, theft or destruction of such Warrant

     19. No Impairment. The Company will not, by amendment of its Articles or through any
reclassification, capital reorganization, consolidation, merger, sale or conveyance of assets,
dissolution, liquidation, issue or sale of securities or any other voluntary action, avoid or seek
to avoid the observance of performance of any of the terms of this Warrant, but will at all times
in good faith assist in the carrying out of all such terms and in the taking of all such action as
may be necessary or appropriate in order to protect the rights of the Holder.

     20. No Voting or Dividend Rights. Nothing contained in this Warrant shall be construed as
conferring upon the Holder hereof the right to vote or to consent or to receive notice as a
stockholder of the Company or any other matters or any rights whatsoever as a stockholder (except
as provided herein) of the Company. No dividends (except a stock dividend) or interest shall be
payable or accrued in respect of this Warrant or the interest represented hereby or the shares
purchasable hereunder, until, and only to the extent that, this Warrant shall have been exercised.

6.

 

     21. Governing Law. The provisions and terms of this Warrant shall be governed by and
construed in accordance with the internal laws of the State of California without giving effect to
its principles regarding conflicts of laws.

     22. Successors and Assigns. This Warrant shall be binding upon the Company’s successors and
assigns and shall inure to the benefit of the Holder’s successors, legal representatives and
permitted assigns.

     23. Business Days. If the last or appointed day for the taking of any action required or the
expiration of any rights granted herein shall be a Saturday or Sunday or a legal holiday in
California, then such action may be taken or right may be exercised on the next succeeding day
which is not a Saturday or Sunday or such a legal holiday.

     24. Conversion to Common Stock. If prior to the exercise in full of this Warrant, all of the
Preferred Stock shall have been converted into Common Stock pursuant to the Company’s Articles in
effect immediately prior to such conversion, then, effective upon such conversion, this Warrant
shall be exercisable only for shares of Common Stock, and the Holder shall thereupon have the right
to purchase, at a total price equal to that payable upon the exercise of this Warrant in full, the
number of shares of Common Stock which would have been receivable by the Holder if the Holder had
exercised this Warrant for shares of Preferred Stock immediately prior to such conversion of such
shares of Preferred Stock into shares of Common Stock, and in such event appropriate provisions
shall be made with respect to the rights and interest of the Holder to the end that the provisions
hereof (including, without limitation, the provisions for the adjustment of the Purchase Price and
of the number of shares purchasable upon exercise of this Warrant and the provisions relating to
the net issue election) shall thereafter be applicable to any shares of Common Stock deliverable
upon the exercise hereof.

     25. Market Stand-Off. The Holder hereby agrees that, to the extent requested by the company
or an underwriter of securities of the Company and provided all officers and directors and greater
than one percent (1%) stockholders of Company enter into similar agreements, it shall not sell or
otherwise transfer or dispose of any Preferred Stock or Common Stock (other than to donees or
partners of the Holder who agree to be similarly bound) for up to one hundred eight (180) days
following the effective date of a registration statement of the Company filed under the Securities
Act; provided, however, that such agreement shall be applicable only to the first such registration
statement of the Company which covers securities to be sold on its behalf to the public in an
underwritten offering but not to Common Stock sold pursuant to such registration statement. In
order to enforce the foregoing covenant, the Company shall have the right to place restrictive
legends on the certificates representing the Preferred Stock issuable upon exercise of this Warrant
(and Common Stock issuable upon conversion of such Preferred Stock) and to impose stop transfer
instructions with respect to such Preferred Stock and Common Stock.

7.

 

     26. Value. The Company and the Holder agree that the value of this Warrant on the date of
grant is $100.

	 	 	 	 	 	 	 
	     Dated:  May 18, 2004	 	Aruba Wireless Networks, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

	 	 	 	 	 
	Agreed and Accepted:	 	 
	 
	 	 	 	 
	Lighthouse Capital Partners IV, L.P.	 	 
	 
	 	 	 	 
	By:

	 	Lighthouse Management Partners IV, L.L.C.,

its general partner	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 

8.

 

Subscription

	 	 	 	 	 
	To:
	 	 	 	 
	 

	 	 

	 	 
	Date:
	 	 	 	 
	 

	 	 

	 	 

The undersigned hereby represents and warrants that Representations and Warranties in Section 17
hereof are true and correct as of the date hereof. The undersigned hereby subscribes for
                    
shares of Preferred Stock covered by this Warrant. The certificate(s) for such
shares shall be issued in the name of the undersigned or as otherwise indicated below:

	 	 	 
	 

Signature

	 	 
	 
	 	 
	 

Name for Registration

	 	 
	 
	 	 
	 

Mailing Address

	 	 

9.

 

Net Issue Election Notice

	 	 	 	 	 	 	 	 	 
	To:

	 	 	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 	 	 

The undersigned hereby elects under Section 4 to surrender the right to purchase shares of
Preferred Stock pursuant to this Warrant.

          Net
Exercise the attached Warrant with respect to                      shares of Preferred Stock.

The undersigned hereby represents and warrants that Representations and Warranties in Section 17
hereof are true and correct as of the date hereof. The certificate(s) for such shares issuable
upon such net issue election shall be issued in the name of the undersigned or as otherwise
indicated below:

	 	 	 
	 

Signature

	 	 
	 
	 	 
	 

Name for Registration

	 	 
	 
	 	 
	 

Mailing Address

	 	 

1.

 

Assignment

	 	 	 	 	 
	For value received

	 	 	 	hereby sells, assigns and transfers unto
	 

	 	 	 	 

 

 

 

 

[Please print or typewrite name and address of Assignee]

 

the within Warrant, and does hereby irrevocably constitute and appoint
                                        
its attorney to transfer the within Warrant on the books of the
within named Company with full power of substitution on the premises.

	 	 	 	 	 
	Dated:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 	 	 
	Signature
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	Name for Registration	 	 
	 
	 	 	 	 
	 	 	 
	Mailing Address	 	 
	 
	 	 	 	 
	In the Presence of:	 	 
	 
	 	 	 	 
	 	 	 

1.

 

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”),
OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR TRANSFERRED UNLESS SUCH SALE OR
TRANSFER IS IN ACCORDANCE WITH THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS OR
SOME OTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS IS
AVAILABLE WITH RESPECT THERETO.

PREFERRED STOCK PURCHASE WARRANT

			
	 	 	 
	Warrant No. C-1
	 	Number of Shares (As Determined Below)
	 
	 	Preferred Stock
	 	 	 

Aruba Wireless Networks, Inc. 

Effective as of May 18, 2004

Void after May 18, 2011

     1. Issuance. This Preferred Stock Purchase Warrant (the “Warrant”) is issued to
Lighthouse Capital Partners IV, L.P.  (“Lighthouse”) by Aruba Wireless Networks,
Inc., a Delaware corporation (hereinafter with its successors called the “Company”). All
capitalized terms used herein, but not defined herein, shall have the meaning ascribed to such
terms under that certain Loan and Security Agreement No. 3522 between Company and Lighthouse of even
date herewith (the “Agreement”).

     2. Purchase Price; Number of Shares. The registered holder of this Warrant (the “Holder”),
commencing on the date hereof, is entitled upon surrender of this Warrant with the subscription
form annexed hereto duly executed, at the principal office of the Company, to purchase from the
Company, at a price per share equal to the Purchase Price, that number of fully paid and
nonassessable shares of the Company’s Next Round Stock equal to Fifty Thousand Dollars ($50,000),
divided by the applicable Purchase Price.

In the event of the consummation by the Company of a Merger (as defined in Section 7) prior to the
consummation by the Company of the Next Round Financing (as defined below), the Holder shall have
the right, in substitution of the rights granted to Holder above in this Section 2, upon surrender
of this Warrant with the subscription form annexed hereto duly executed, at the principal office of
the Company, to purchase from the Company, at a purchase price per share equal to the Adjusted
Purchase Price, that number of shares of the Prior Preferred stock equal to Fifty Thousand Dollars
($50,000), divided by the Adjusted Purchase Price.

In addition to, and without limiting the foregoing, in the event the Company does not consummate a
Merger or the Next Round Financing on or before May 18, 2005, then the Holder shall have the right
on and after that date, upon surrender of this Warrant with the subscription form annexed hereto
duly executed, at the principal office of the Company, to purchase from the Company, at a price per
share equal to the Fair Market Value (on a per share basis as determined in Section 4 hereof) of
the Prior Preferred stock on the date of exercise of this Warrant, that number of shares of the
Prior Preferred Stock equal to Fifty Thousand Dollars ($50,000), divided by the Fair Market Value
(on a per share basis as determined in Section 4 hereof) of the Prior Preferred Stock on the date
of exercise of this Warrant.

In addition to other terms which may be defined herein, the following terms, as used in this
Warrant, shall have the following meanings:

          (i) “Adjusted Purchase Price” means the exercise price calculated as follows:

1

 

X(B) + Y(C)

X + Y

     X = The number of months (including fractional months) between (A) date of the closing of the
sale of the Prior Preferred Stock and (B) the first to occur of (i) the initial Revolving Advance,
or (ii) the date of the consummation of a Merger.

     Y = The number of months (including fractional months) between (A) the later of (i) the date
of the execution and delivery of the Agreement and (ii) the initial Revolving Advance, and (B) the
date of the consummation of a Merger.

     B = $1.20 (subject to adjustment, if any, under the Company’s Certificate of Incorporation).

     C = The value of the per share consideration paid (or to be paid) in such Merger with respect
to the Prior Preferred Stock (with the Merger consideration to be valued in accordance with the
provisions set forth in the Company’s Articles (as defined in Section 10).

          (ii) “Common Stock” means fully paid and nonassessable shares of the Company’s common stock,
$0.0001 par value.

          (iii) “Next Round Financing” means the Company’s next bona fide round of preferred stock
equity financing resulting in net aggregate proceeds to the Company in an amount equal to or in
excess of $5,000,000.00

          (iv) “Next Round Stock” means the series of the Company’s preferred equity securities issued
in connection with the Next Round Financing.

          (v) “Preferred Stock” means those shares of Next Round Stock or Prior Preferred Stock, as the
case may be, issued or issuable upon exercise of this Warrant.

          (vi) “Prior Preferred Stock” means the Company’s Series B Preferred Stock, $0.0001 par value
per share.

          (vii) “Purchase Price” means (i) in connection with the exercise of this Warrant with respect
to Next Round Stock, the lowest price per share paid by an investor for a share of Next Round Stock
in connection with the Next Round Financing or (ii) in connection with the exercise of this Warrant
with respect to the Prior Preferred Stock, the Adjusted Purchase Price.

          (viii) “Reorganization” has the meaning ascribed to such term in Section 11.

Until such time as this Warrant is exercised in full or expires, the Purchase Price and the
securities issuable upon exercise of this Warrant are subject to adjustment as hereinafter
provided. The person or persons in whose name or names any certificate representing shares of
Preferred Stock is issued hereunder shall be deemed to have become the holder of record of the
shares represented thereby as at the close of business on the date this Warrant is exercised with
respect to such shares, whether or not the transfer books of the Company shall be closed.

     3. Payment of Purchase Price. The Purchase Price may be paid (i) in cash or by check, (ii) by
the surrender by the Holder to the Company of any promissory notes or other obligations issued by
the Company, with all such notes and obligations so surrendered being credited against the Purchase
Price in an amount equal to the principal amount thereof plus accrued interest to the date of
surrender, or (iii) by any combination of the foregoing.

     4. Net Issue Election. The Holder may elect to receive, without the payment by the Holder of
any additional consideration, shares of Preferred Stock equal to the value of this Warrant or any
portion hereof by the surrender of this Warrant or such portion to the Company, with the net issue
election notice annexed hereto duly

2

 

executed, at the principal office of the Company. Thereupon, the Company shall issue to the
Holder such number of fully paid and nonassessable shares of Preferred Stock as is computed using
the following formula:

X= Y(A-B)

 A

	 	 	 	 	 	 	 	 	 
	 

	 	where:
	 	X
	 	=
	 	the number of shares of Preferred Stock to be issued to the Holder pursuant to
this Section 4.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Y
	 	=
	 	the number of shares of Preferred Stock in respect of which
the net issue election is made pursuant to this Section 4.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	A
	 	=
	 	the Fair Market Value (defined below) of one share of
Preferred Stock, as determined at the time the net issue election is made
pursuant to this Section 4.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	B
	 	=
	 	the Purchase Price in effect under this Warrant at the time
the net issue election is made pursuant to this Section 4.

“Fair Market Value” of a share of Preferred Stock (or Common Stock if the Preferred Stock has been
automatically converted into Common Stock) as of the date that the net issue election is made (the
“Determination Date”) shall mean:

     (i) If the net issue election is made in connection with and contingent upon the
closing of the sale of the Company’s Common Stock to the public in a public offering
pursuant to a Registration Statement under the 1933 Act (a “Public Offering”), and if the
Company’s Registration Statement relating to such Public Offering (“Registration Statement”)
has been declared effective by the Securities and Exchange Commission, then the initial
“Price to Public” specified in the final prospectus with respect to such offering multiplied
by the number of shares of Common Stock into which each share of Preferred Stock is then
convertible.

     (ii) If the net issue election is not made in connection with and contingent upon a
Public Offering, then as follows:

                    (a) If traded on a securities exchange or the Nasdaq National Market, the fair market value of
the Common Stock shall be deemed to be the average of the closing or last reported sale prices of
the Common Stock on such exchange or market over the five day period ending five trading days prior
to the Determination Date, and the fair market value of the Preferred Stock shall be deemed to be
such fair market value of the Common Stock multiplied by the number of shares of Common Stock into
which each share of Preferred Stock is then convertible;

                    (b) If otherwise traded in an over-the-counter market, the fair market value of the Common
Stock shall be deemed to be the average of the closing ask prices of the Common Stock over the five
day period ending five trading days prior to the Determination Date, and the fair market value of
the Preferred Stock shall be deemed to be such fair market value of the Common Stock multiplied by
the number of shares of Common Stock into which each share of Preferred Stock is then convertible;
and

                    (c) If there is no public market for the Common Stock, then fair market value shall be
determined in good faith by the Company’s Board of Directors.

     5. Partial Exercise. This Warrant may be exercised in part, and the Holder shall be entitled
to receive a new warrant, which shall be dated as of the date of this Warrant, covering the number
of shares in respect of which this Warrant shall not have been exercised.

3

 

     6. Fractional Shares. In no event shall any fractional share of Preferred Stock be issued
upon any exercise of this Warrant, but in lieu of such fractional shares the Company shall make a
cash payment therefore on the basis of the Purchase Price.

     7. Expiration Date; Automatic Exercise. This Warrant shall expire on the earlier to occur of
(i) the close of business on May 18, 2011, and (ii) the third anniversary of the initial Public
Offering of the Company’s securities, and shall be void thereafter (the “Expiration Date”).
Notwithstanding the foregoing, this Warrant shall automatically be deemed to be exercised in full
pursuant to the provisions of Section 4 hereof, without any further action on behalf of the Holder,
immediately prior to the time this Warrant would otherwise expire pursuant to the preceding
sentence. Notwithstanding the term of this Warrant fixed pursuant to this Section 7 and provided
Holder has received advance notice of at least twenty (20) days and has not earlier converted, this
Warrant shall automatically be converted pursuant to Section 4 hereof, without any action by
Holder, upon the closing of a sale of all or substantially all of the Company’s assets, or the
merger or consolidation of the Company with or into another corporation (other than a merger or
consolidation for the principal purpose of changing the domicile of the Company) that results in
the transfer of fifty percent (50%) or more of the outstanding voting power of the Company (a
“Merger”), except to the extent assumed by the successor corporation (or parent thereof) in
connection with such Merger. In the event that any outstanding warrants to purchase equity
securities of the Company are assumed, this Warrant shall also be similarly assumed.
Notwithstanding anything to the contrary in this Warrant, the holder may rescind any exercise of
its purchase rights after any notice of termination of the proposed transaction if the exercise was
otherwise precipitated by such proposed Merger. In the event of such recission, this Warrant will
continue to be exercisable on the same terms and conditions. Notwithstanding the foregoing, in the
event the Warrant is automatically deemed to be exercised pursuant to this Section 7, the Company
shall not be required to surrender the certificate representing the Preferred Stock until such time
as the Holder surrenders the Warrant.

     8. Reserved Shares; Valid Issuance. The Company covenants that it will at all times from and
after the date hereof reserve and keep available such number of its authorized shares of Prior
Preferred Stock and Common Stock, and will at all times after the Next Round Financing, reserve and
keep available such number of shares of Next Round Stock, free from all preemptive or similar
rights therein, as will be sufficient to permit, respectively, the exercise of this Warrant in full
and the conversion into shares of Common Stock of all shares of Preferred Stock receivable upon
such exercise. The Company further covenants that such shares as may be issued pursuant to such
exercise and/or conversion will, upon issuance, be duly and validly issued, fully paid and
nonassessable and free from all taxes, liens and charges with respect to the issuance thereof.

     9. Stock Splits and Dividends. If after the date hereof the Company shall subdivide the
Preferred Stock, by split-up or otherwise, or combine the Preferred Stock, or issue additional
shares of Preferred Stock in payment of a stock dividend on the Preferred Stock, the number of
shares of Preferred Stock issuable on the exercise of this Warrant shall forthwith be
proportionately increased in the case of a subdivision or stock dividend, or proportionately
decreased in the case of a combination, and the Purchase Price shall forthwith be proportionately
decreased in the case of a subdivision or stock dividend, or proportionately increased in the case
of a combination. For avoidance of doubt, “Preferred Stock” in this Section 9 means that series of
Preferred Stock for which this Warrant is exercised.

     10. Adjustments for Diluting Issuances. The antidilution rights applicable to the Prior
Preferred Stock of the Company are set forth in the Company’s Certificate of Incorporation, as
amended from time to time (the “Articles”), a true and complete copy of which is attached hereto as
Exhibit A. The Company shall promptly provide the Holder hereof with any restatement, amendment or
modification to the Articles promptly after the same has been made.

     11. Mergers and Reclassifications. If after the date hereof the Company shall enter into any
Reorganization (as hereinafter defined), then, as a condition of such Reorganization, lawful
provisions shall be made, and duly executed documents evidencing the same from the Company or its
successor shall be delivered to the Holder, so that the Holder shall thereafter have the right to
purchase, at a total price not to exceed that payable upon the exercise of this Warrant in full,
the kind and amount of shares of stock and other securities and property

4

 

receivable upon such Reorganization by a holder of the number of shares of Next Round Stock or, at
Holder’s option if the Next Round Financing has not closed, the Prior Preferred Stock which might
have been purchased by the Holder immediately prior to such Reorganization, and in any such case
appropriate provisions shall be made with respect to the rights and interest of the Holder to the
end that the provisions hereof (including without limitation, provisions for the adjustment of the
Purchase Price and the number of shares issuable hereunder and the provisions relating to the net
issue election) shall thereafter be applicable in relation to any shares of stock or other
securities and property thereafter deliverable upon exercise hereof. For the purposes of this
Section 11, the term “Reorganization” shall include without limitation any reclassification,
capital reorganization or change of the Preferred Stock (other than as a result of a subdivision,
combination or stock dividend provided for in Section 9 hereof), or any consolidation of the
Company with, or merger of the Company into, another corporation or other business organization
(other than a merger in which the Company is the surviving corporation and which does not result in
any reclassification or change of the outstanding Preferred Stock and other than any Merger that
results in the automatic exercise of this Warrant pursuant to Section 7 hereof), or any sale or
conveyance to another corporation or other business organization of all or substantially all of the
assets of the Company.

     12. Certificate of Adjustment. Whenever the Purchase Price is adjusted, as herein provided,
in accordance with the Company’s Certificate of Incorporation, the Company shall promptly deliver
to the Holder a certificate of the Company’s chief financial officer setting forth the Purchase
Price after such adjustment and setting forth a brief statement of the facts requiring such
adjustment.

     13. Notices of Record Date, Etc. In the event of:

          (a) any taking by the Company of a record of the holders of any class of securities for the
purpose of determining the holders thereof who are entitled to receive any dividend or other
distribution, or any right to subscribe for, purchase, sell or otherwise acquire or dispose of any
shares of stock of any class or any other securities or property, or to receive any other right;

          (b) any reclassification of the capital stock of the Company, capital reorganization of the
Company, consolidation or merger involving the Company, or sale or conveyance of all or
substantially all of its assets; or

          (c) any voluntary or involuntary dissolution, liquidation or winding-up of the Company;

then in each such event the Company will provide or cause to be provided to the Holder a written
notice thereof. Such notice shall be provided at least twenty (20) business days prior to the date
specified in such notice on which any such action is to be taken.

     14. Representations, Warranties and Covenants. This Warrant is issued and delivered by the
Company and accepted by each Holder on the basis of the following representations, warranties and
covenants made by the Company:

          (a) The Company has all necessary authority to issue, execute and deliver this Warrant and to
perform its obligations hereunder. This Warrant has been duly authorized, issued, executed and
delivered by the Company and is the valid and binding obligation of the Company, enforceable in
accordance with its terms, except as may be limited by (i) applicable bankruptcy, insolvency,
reorganization, or similar laws relating to or affecting the enforcement of creditors’ rights and
(ii) laws relating to the availability of specific performance, injunctive relief or other
equitable remedies.

          (b) The shares of Prior Preferred Stock issuable upon the exercise of this Warrant have been
duly authorized and reserved for issuance by the Company and, when issued in accordance with the
terms hereof, will be validly issued, fully paid and nonassessable. The shares of Next Round
Stock, when authorized, shall be duly authorized and reserved for issuance by Company and, when
issued in accordance with the terms hereof, will be validly issued, fully paid and nonassessable.

5

 

          (c) The issuance, execution and delivery of this Warrant do not, and the issuance of the
shares of Preferred Stock upon the exercise of this Warrant in accordance with the terms hereof
will not, (i) violate or contravene the Company’s Articles or by-laws, or any law, statute,
regulation, rule, judgment or order applicable to the Company or (ii) violate, contravene or result
in a breach or default under any contract, agreement or instrument to which the Company is a party
or by which the Company or any of its assets are bound or (iii) require the consent or approval of
or the filing of any notice or registration with any person or entity (other than any applicable
consents, approvals or securities laws filings, which will be obtained or filed in a timely
manner).

          (d) So long as this Warrant has not terminated, Holder shall be entitled to receive such
financial and other information as the Holder would be entitled to receive under Section 2.1 of the
Amended and Restated Investor Rights Agreement (the “Amended Rights Agreement”) applicable to the
Preferred Stock if Holder were a holder of that number of shares issuable upon full exercise of
this Warrant; provided the rights under this Section 14(d) shall terminate upon the initial Public
Offering of the Company’s securities.

          (e) So long as this Warrant has not terminated, Holder shall be entitled to receive such
financial and other information as the Holder would be entitled to receive under the Stock Purchase
Agreement applicable to the Prior Preferred Stock if Holder were a holder of that number of shares
issuable upon full exercise of this Warrant.

          (f) As of the date hereof, the authorized capital stock of the Company consists of (i)
55,000,000 shares of Common Stock, of which 8,891,051 shares are issued and outstanding and (ii) 14,
444,551 shares of Series A Preferred Stock, of which 14,262,748 are issued and outstanding shares
and (iii) 19,000,000 shares of Series B Preferred Stock, of which 18,333,333 are issued and
outstanding. Attached hereto as Exhibit B is a capitalization table summarizing the capitalization
of the Company. Once per calendar quarter, the Company will provide Holder with a current
capitalization table indicating changes, if any, to the number of outstanding shares of common
stock and preferred stock.

     15. Registration Rights. As soon as reasonably practicable, the Company shall cause the
Holder to become party to the Company’s Amended Rights Agreement, such that Holder shall be
entitled to all rights and privileges under Section 1 only of the Amended Rights Agreement as a
“Holder” and “Investor” thereunder and the Preferred Stock issuable upon exercise of this Warrant
(and Common Stock issued upon conversion of such Preferred Stock) shall be “Registrable
Securities,” under the Amended Rights Agreement.

     16. Amendment. The terms of this Warrant may be amended, modified or waived only with the
written consent of the Holder.

     17. Representations and Covenants of the Holder. This Warrant has been entered into by the
Company in reliance upon the following representations and covenants of the Holder, which by its
execution hereof the Holder hereby confirms:

          (a) Authorization. The Holder represents that it has full power and authority to enter into
this Warrant. This Warrant constitutes the Holder’s valid and legally binding obligation,
enforceable in accordance with its terms, except as may be limited by (i) applicable bankruptcy,
insolvency, reorganization, or similar laws relating to or affecting the enforcement of creditors’
rights and (ii) laws relating to the availability of specific performance, injunctive relief or
other equitable remedies.

          (b) Investment Purpose. This Warrant and the Preferred Stock issuable upon exercise of the
Warrant is and will be acquired for investment and not with a view to the sale or distribution of
any part thereof, and the Holder has no present intention of selling or engaging in any public
distribution of the same except pursuant to a registration or exemption.

          (c) Accredited Investor. Holder is an “accredited investor” within the meaning of the
Securities and Exchange Rule 501 of Regulation D, as presently in effect.

6

 

          (d) Private Issue. The Holder understands (i) that the Preferred Stock issuable upon exercise
of the Holder’s rights contained herein is not registered under the 1933 Act or qualified under
applicable state securities laws on the ground that the issuance contemplated by this Warrant will
be exempt from the registration and qualifications requirements thereof, and (ii) that the
Company’s reliance on such exemption is predicated on the
representations set forth in this Section 17.

          (e) Financial Risk. The Holder has such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of its investment and has the ability
to bear the economic risks of its investment.

     18. Notices, Transfers, Etc.

          (a) All notices and other communications given or made pursuant hereto shall be in writing and
shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b)
when sent by confirmed electronic mail or facsimile if sent during normal business hours of the
recipient, and if not so confirmed, then on the next business day, (c) five (5) days after having
been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one
(1) day after deposit with a nationally recognized overnight courier, specifying next day delivery,
with written verification of receipt. All communications shall be sent to the respective parties
at the following addresses (or at such other addresses as shall be specified by notice given in
accordance with this Section 18): If to the Company:

Aruba Wireless Networks, Inc.

180 Great Oaks Boulevard

San Jose, CA 95119

Attention: Duston Williams

If to Holder:

Lighthouse Capital Partner IV, L.P.

500 Drake’s Landing Road

Greenbrae, CA 94904-3011

Attn: Contract Administration

          (b) Subject to compliance with applicable federal and state securities laws, this Warrant may
be transferred by the Holder with respect to any or all of the shares purchasable hereunder. Upon
surrender of this Warrant to the Company, together with the assignment notice annexed hereto duly
executed, for transfer of this Warrant as an entirety by the Holder, the Company shall issue a new
warrant of the same denomination to the assignee. Upon surrender of this Warrant to the Company,
together with the assignment hereof properly endorsed, by the Holder for transfer with respect to a
portion of the shares of Preferred Stock purchasable hereunder, the Company shall issue a new
warrant to the assignee, in such denomination as shall be requested by the Holder hereof, and shall
issue to such Holder a new warrant covering the number of shares in respect of which this Warrant
shall not have been transferred.

          (c) In case this Warrant shall be mutilated, lost, stolen or destroyed, the Company shall
issue a new warrant of like tenor and denomination and deliver the same (i) in exchange and
substitution for and upon surrender and cancellation of any mutilated Warrant, or (ii) in lieu of
any Warrant lost, stolen or destroyed, upon receipt of an affidavit of the Holder or other evidence
reasonably satisfactory to the Company of the loss, theft or destruction of such Warrant.

     19. No Impairment. The Company will not, by amendment of its Articles or through any
reclassification, capital reorganization, consolidation, merger, sale or conveyance of assets,
dissolution, liquidation, issue or sale of securities or any other voluntary action, avoid or seek
to avoid the observance of performance of any of the terms of this Warrant, but will at all times
in good faith assist in the carrying out of all such terms and in the taking of all such action as
may be necessary or appropriate in order to protect the rights of the Holder.

7

 

     20. No Voting or Dividend Rights. Nothing contained in this Warrant shall be construed as
conferring upon the Holder hereof the right to vote or to consent or to receive notice as a
stockholder of the Company or any other matters or any rights whatsoever as a stockholder (except
as provided herein) of the Company. No dividends (except a stock dividend) or interest shall be
payable or accrued in respect of this Warrant or the interest represented hereby or the shares
purchasable hereunder, until, and only to the extent that, this Warrant shall have been exercised.

     21. Governing Law. The provisions and terms of this Warrant shall be governed by and
construed in accordance with the internal laws of the State of California.

     22. Successors and Assigns. This Warrant shall be binding upon the Company’s successors and
assigns and shall inure to the benefit of the Holder’s successors, legal representatives and
permitted assigns.

     23. Business Days. If the last or appointed day for the taking of any action required or the
expiration of any rights granted herein shall be a Saturday or Sunday or a legal holiday in
California, then such action may be taken or right may be exercised on the next succeeding day
which is not a Saturday or Sunday or such a legal holiday.

     24. Conversion to Common Stock. If prior to the exercise in full of this Warrant, all of the
Preferred Stock shall have been converted into Common Stock pursuant to the Company’s Articles in
effect immediately prior to such conversion, then, effective upon such conversion, this Warrant
shall be exercisable only for shares of Common Stock, and the Holder shall thereupon have the right
to purchase, at a total price equal to that payable upon the exercise of this Warrant in full, the
number of shares of Common Stock which would have been receivable by the Holder if the Holder had
exercised this Warrant for shares of Preferred Stock immediately prior to such conversion of such
shares of Preferred Stock into shares of Common Stock, and in such event appropriate provisions
shall be made with respect to the rights and interest of the Holder to the end that the provisions
hereof (including, without limitation, the provisions for the adjustment of the Purchase Price and
of the number of shares purchasable upon exercise of this Warrant and the provisions relating to
the net issue election) shall thereafter be applicable to any shares of Common Stock deliverable
upon the exercise hereof.

     25. Market Stand-Off. The Holder hereby agrees that, to the extent requested by the company
or an underwriter of securities of the Company and provided all officers and directors and greater
than one percent (1%) stockholders of Company enter into similar agreements, it shall not sell or
otherwise transfer or dispose of any Preferred Stock or Common Stock (other than to donees or
partners of the Holder who agree to be similarly bound) for up to one hundred eight (180) days
following the effective date of a registration statement of the Company filed under the Securities
Act; provided, however, that such agreement shall be applicable only to the first such registration
statement of the Company which covers securities to be sold on its behalf to the public in an
underwritten offering but not to Common Stock sold pursuant to such registration statement. In
order to enforce the foregoing covenant, the Company shall have the right to place restrictive
legends on the certificates representing the Preferred Stock issuable upon exercise of this Warrant
(and Common Stock issuable upon conversion of such Preferred Stock) and to impose stop transfer
instructions with respect to such Preferred Stock and Common Stock.

8

 

     26. Value. The Company and the Holder agree that the value of this Warrant on the date of
grant is $100.

	 	 	 	 	 
	     Dated: May 18,
2004

	 	Aruba Wireless Networks, Inc.
	 
	 

	 	By:
	 	/s/ Duston Williams
	 

	 	 	 	 
	 

	 	Name:
	 	Duston Williams
	 

	 	Title:
	 	CFO

Agreed and Accepted:

Lighthouse Capital Partners IV, L.P.

	 	 	 	 	 
	By:

	 	Lighthouse Management Partners IV, L.L.C.,

its general partner	 	 
	 
	 	 	 	 
	By: 

Name:

	 	/s/ Thomas Conneely
 

Thomas Conneely
	 	 
	Title:

	 	Vice President	 	 

9

 

Subscription

	 	 	 	 	 
	To:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 

	 	 

     The undersigned hereby represents and warrants that Representations and Warranties in Section 17
hereof are true and correct as of the date hereof. The undersigned hereby subscribes for
                                        
shares of Preferred Stock covered by this Warrant. The certificate(s) for such
shares shall be issued in the name of the undersigned or as otherwise indicated below:

	 	 	 
	 

Signature

	 	 
	 
	 	 
	 

Name for Registration

	 	 
	 
	 	 
	 

Mailing Address

	 	 

1.

 

Net Issue Election Notice

	 	 	 	 	 	 	 	 	 
	To:

	 	 	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 	 	 

The undersigned hereby elects under Section 4 to surrender the right to purchase shares of
Preferred Stock pursuant to this Warrant.

          Net
Exercise the attached Warrant with respect to                      shares of Preferred Stock.

The undersigned hereby represents and warrants that Representations and Warranties in Section 7
hereof are true and correct as of the date hereof. The certificate(s) for such shares issuable upon
such net issue election shall be issued in the name of the undersigned or as otherwise indicated
below:

	 	 	 
	 

Signature

	 	 
	 
	 	 
	 

Name for Registration

	 	 
	 
	 	 
	 

Mailing Address

	 	 

1.

 

Assignment

For value received                                                                  
                                    hereby sells, assigns and transfers unto

 

 

[Please print or typewrite name and address of Assignee]

 

the within Warrant, and does hereby irrevocably constitute and appoint
                                                             its attorney to transfer the within Warrant on the books of the
within named Company with full power of substitution on the premises.

	 	 	 	 	 
	Dated:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 
	 

Signature

	 	 
	 
	 	 
	 

Name for Registration

	 	 
	 
	 	 
	 

Mailing Address

	 	 

	 	 	 
	In the Presence of:
	 	 
	 
	 	 
	 

	 	 

1.

 

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933
ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR TRANSFERRED UNLESS SUCH SALE
OR TRANSFER IS IN ACCORDANCE WITH THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS OR
SOME OTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS IS
AVAILABLE WITH RESPECT THERETO.

PREFERRED STOCK PURCHASE WARRANT

      

			
	Warrant No. C-2
	 	Number of Shares (As Determined Below)
	 
	 	Preferred Stock

Aruba Wireless Networks, Inc.

 Effective as of May 18, 2004

Void after May 18, 2011

     1. Issuance. This Preferred Stock Purchase Warrant (the “Warrant”) is issued to
Lighthouse Capital Partners IV, L.P.  (“Lighthouse”) by Aruba Wireless Networks,
Inc., a Delaware corporation (hereinafter with its successors called the “Company”). All
capitalized terms used herein, but not defined herein, shall have the meaning ascribed to such
terms under that certain Loan and Security Agreement No. 3522 between Company and Lighthouse of even
date herewith (the “Agreement”).

  2. Purchase Price; Number of Shares. The registered holder of this Warrant (the “Holder”),
commencing on the date hereof, is entitled upon surrender of this Warrant with the subscription
form annexed hereto duly executed, at the principal office of the Company, to purchase from the
Company, at a price per share equal to the applicable Purchase Price, that number of fully paid and
nonassessable shares of the Company’s Next Round Stock equal to (A) One Hundred Thirty Three
Thousand Three Hundred Thirty Three Dollars and Thirty Three Cents ($133,333.33) plus (B) four
percent (4%) of the aggregate principal amount of the Working Capital Advances drawn during the
Second Borrowing Period, divided by (C) the applicable Purchase Price.

In the event of the consummation by the Company of a Merger (as defined in Section 7) prior to the
consummation by the Company of the Next Round Financing (as defined below), the Holder shall have
the right, in substitution of the rights granted to Holder in above in this Section 2, upon
surrender of this Warrant with the subscription form annexed hereto duly executed, at the principal
office of the Company, to purchase from the Company, at a price per share equal to the applicable
Purchase Price, that number of shares of the Prior Preferred Stock equal to (A) One Hundred Thirty
Three Thousand Three Hundred Thirty Three Dollars and Thirty Three Cents ($133,333.33) plus (B)
four percent (4%) of the aggregate principal amount of the Working Capital Advances drawn during
the Second Borrowing Period, divided by (C) the applicable Purchase Price.

In addition to, and without limiting the foregoing, in the event the Company does not consummate a
Merger or the Next Round Financing on or before May 18, 2005, then the Holder shall have the right
on and after that date, upon surrender of this Warrant with the subscription form annexed hereto
duly executed, at the principal office of the Company, to purchase from the Company, at price per
share equal to the Fair Market Value (on a per share basis as determined in Section 4 hereof) of
the Prior Preferred Stock on the date of exercise of this Warrant, that number of shares of the
Prior Preferred Stock equal to (A) One Hundred Thirty Three Thousand Three Hundred Thirty Three
Dollars and Thirty Three Cents ($133,333.33) plus (B) four percent (4%) of the aggregate principal
amount of the Working Capital Advances drawn during the Second Borrowing Period, divided by the
Fair Market Value (on a per share basis as determined in Section 4 hereof) of the Prior Preferred
Stock on the date of exercise of this Warrant.

 1.

 

In addition to other terms which may be defined herein, the following terms, as used in this
Warrant, shall have the following meanings:

                                 (i) “Adjusted Purchase Price” means the exercise price calculated as follows:

X(B) + Y(C)

X + Y

     X = The number of months (including fractional months) between (A) date of the last closing of
the sale of the Prior Preferred Stock and (B) the first to occur of (i) the initial Working Capital
Advance during the Second Borrowing Period, or (ii) the date of the consummation of a Merger.

     Y = The number of months (including fractional months) between (A) the later of (i) the date
of the execution and delivery of the Agreement and (ii) the initial Working Capital Advance during
the Second Borrowing Period, and (B) the first to occur of (i) the date of the consummation of the
sale of the Next Round Stock, (ii) the date of the consummation of a Merger.

     B = $1.20 (subject to adjustment, if any, under the Company’s Certificate of Incorporation).

     C = (A) The Next Round Price (subject to adjustment, if any, under the Company’s Certificate
of Incorporation, as amended), or, (B) if any portion of the Warrant is exercised in connection with
a Merger prior to the date of the consummation of the sale of the Next Round Stock, C shall equal
the value of the per share consideration paid (or to be paid) in such Merger with respect to the
Prior Preferred Stock (with the Merger consideration to be valued in accordance with the provisions
set forth in the Company’s Articles (as defined in Section 10).

               (ii) “Common Stock” means fully paid and nonassessable shares of the Company’s common stock,
$0.0001 par value.

               (iii) “Next Round Financing” means the Company’s next bona fide round of preferred stock
equity financing resulting in net aggregate proceeds to the Company in an amount equal to or in
excess of $5,000,000.00.

               (iv) “Next Round Stock” means the class or series of the Company’s preferred equity securities
issued in connection with the Next Round Financing.

               (v) “Preferred Stock” means those shares of Next Round Stock or Prior Preferred Stock, as the
case may be, issued or issuable upon exercise of this Warrant.

               (vi) “Prior Preferred Stock” means the Company’s Series B Preferred Stock, $0.0001 par value
per share.

               (vii) “Purchase Price” means (A) in connection with the exercise of this Warrant with respect
to Next Round Stock, (i) the lowest price per share paid by an investor for a share of Next Round
Stock in connection with the Next Round Financing if the sale of the Next Round Stock is
consummated before the initial Working Capital Advance during the Second Borrowing Period is made,
and (ii) the Adjusted Purchase Price if the sale of the Next Round Stock is consummated after the
initial Working Capital Advance during the Second Borrowing Period is made, or (B) in connection
with the exercise of this Warrant with respect to the Prior Preferred Stock in connection with a
Merger, the Adjusted Purchase Price.

               (viii) “Reorganization” has the meaning ascribed to such term in Section 11.

 2.

 

Until such time as this Warrant is exercised in full or expires, the Purchase Price and the
securities issuable upon exercise of this Warrant are subject to adjustment as hereinafter
provided. The person or persons in whose name or names any certificate representing shares of
Preferred Stock is issued hereunder shall be deemed to have become the holder of record of the
shares represented thereby as at the close of business on the date this Warrant is exercised with
respect to such shares, whether or not the transfer books of the Company shall be closed.

     3. Payment of Purchase Price. The Purchase Price may be paid (i) in cash or by check, (ii) by
the surrender by the Holder to the Company of any promissory notes or other obligations issued by
the Company, with all such notes and obligations so surrendered being credited against the Purchase
Price in an amount equal to the principal amount thereof plus accrued interest to the date of
surrender, or (iii) by any combination of the foregoing.

     4. Net Issue Election. The Holder may elect to receive, without the payment by the Holder of
any additional consideration, shares of Preferred Stock equal to the value of this Warrant or any
portion hereof by the surrender of this Warrant or such portion to the Company, with the net issue
election notice annexed hereto duly executed, at the principal office of the Company. Thereupon,
the Company shall issue to the Holder such number of fully paid and nonassessable shares of
Preferred Stock as is computed using the following formula:

X= Y(A-B)

 A 

	 	 	 	 	 	 	 
	 

	 	where:
	 	X =
	 	the number of shares of Preferred Stock to be issued to the Holder pursuant to
this Section 4.
	 
	 	 	 	 	 	 
	 

	 	 	 	Y =
	 	the number of shares of Preferred Stock in respect of which
the net issue election is made pursuant to this Section 4.
	 
	 	 	 	 	 	 
	 

	 	 	 	A =
	 	the Fair Market Value (defined below) of one share of
Preferred Stock, as determined at the time the net issue election is made
pursuant to this Section 4.
	 
	 	 	 	 	 	 
	 

	 	 	 	B =
	 	the Purchase Price in effect under this Warrant at the time
the net issue election is made pursuant to this Section 4.

“Fair Market Value” of a share of Preferred Stock (or Common Stock if the Preferred Stock has been
automatically converted into Common Stock $0.0001) as of the date that the net issue election is
made (the “Determination Date”) shall mean:

     (i) If the net issue election is made in connection with and contingent upon the
closing of the sale of the Company’s Common Stock to the public in a public offering
pursuant to a Registration Statement under the 1933 Act (a “Public Offering”), and if the
Company’s Registration Statement relating to such Public Offering (“Registration Statement”)
has been declared effective by the Securities and Exchange Commission, then the initial
“Price to Public” specified in the final prospectus with respect to such offering multiplied
by the number of shares of Common Stock into which each share of Preferred Stock is then
convertible.

     (ii) If the net issue election is not made in connection with and contingent upon a
Public Offering, then as follows:

               (a) If traded on a securities exchange or the Nasdaq National Market, the fair market value of
the Common Stock shall be deemed to be the average of the closing or last reported sale prices of
the Common Stock on such exchange or market over the five day period ending five trading days prior
to the Determination Date, and the fair market value of the Preferred Stock shall be deemed to be
such fair market value of the Common Stock multiplied by the number of shares of Common Stock into
which each share of Preferred Stock is then convertible;

 3.

 

               (b) If otherwise traded in an over-the-counter market, the fair market value of the Common
Stock shall be deemed to be the average of the closing ask prices of the Common Stock over the five
day period ending five trading days prior to the Determination Date, and the fair market value of
the Preferred Stock shall be deemed to be such fair market value of the Common Stock multiplied by
the number of shares of Common Stock into which each share of Preferred Stock is then convertible;
and

               (c) If there is no public market for the Common Stock, then fair market value shall be
determined in good faith by the Company’s Board of Directors.

     5. Partial Exercise. This Warrant may be exercised in part, and the Holder shall be entitled
to receive a new warrant, which shall be dated as of the date of this Warrant, covering the number
of shares in respect of which this Warrant shall not have been exercised.

     6. Fractional Shares. In no event shall any fractional share of Preferred Stock be issued
upon any exercise of this Warrant, but in lieu of any Purchase Price.

     7. Expiration Date; Automatic Exercise. This Warrant shall expire on the earlier to occur of
(i) the close of business on May 18, 2011, and (ii) the third anniversary of the initial Public
Offering of the Company’s securities, and shall be void thereafter (the “Expiration Date”).
Notwithstanding the foregoing, this Warrant shall automatically be deemed to be exercised in full
pursuant to the provisions of Section 4 hereof, without any further action on behalf of the Holder,
immediately prior to the time this Warrant would otherwise expire pursuant to the preceding
sentence. Notwithstanding the term of this Warrant fixed pursuant to this Section 7 and provided
Holder has received advance notice of at least twenty (20) days and has not earlier converted, this
Warrant shall automatically be converted pursuant to Section 4 hereof, without any action by
Holder, upon the closing of a sale of all or substantially all of the Company’s assets, or the
merger or consolidation of the Company with or into another corporation (other than a merger or
consolidation for the principal purpose of changing the domicile of the Company) that results in
the transfer of fifty percent (50%) or more of the outstanding voting power of the Company (a
“Merger”), except to the extent assumed by the successor corporation (or parent thereof) in
connection with such Merger. In the event that any outstanding warrants to purchase equity
securities of the Company are assumed, this Warrant shall also be similarly assumed.
Notwithstanding anything to the contrary in this Warrant, the holder may rescind any exercise of
its purchase rights after any notice of termination of the proposed transaction if the exercise was
otherwise precipitated by such proposed Merger. In the event of such recission, this Warrant will
continue to be exercisable on the same terms and conditions. Notwithstanding the foregoing, in the
event the Warrant is automatically deemed to be exercised pursuant to this Section 7, the Company
shall not be required to surrender the certificate representing the Preferred Stock until such time
as the Holder surrenders the Warrant.

     8. Reserved Shares; Valid Issuance. The Company covenants that it will at all times from and
after the date hereof reserve and keep available such number of its authorized shares of Prior
Preferred Stock and Common Stock, and will at all times after the Next Round Financing, reserve and
keep available such number of shares of Next Round Stock, free from all preemptive or similar
rights therein, as will be sufficient to permit, respectively, the exercise of this Warrant in full
and the conversion into shares of Common Stock of all shares of Preferred Stock receivable upon
such exercise. The Company further covenants that such shares as may be issued pursuant to such
exercise and/or conversion will, upon issuance, be duly and validly issued, fully paid and
nonassessable and free from all taxes, liens and charges with respect to the issuance thereof.

     9. Stock Splits and Dividends. If after the date hereof the Company shall subdivide the
Preferred Stock, by split-up or otherwise, or combine the Preferred Stock, or issue additional
shares of Preferred Stock in payment of a stock dividend on the Preferred Stock, the number of
shares of Preferred Stock issuable on the exercise of this Warrant shall forthwith be
proportionately increased in the case of a subdivision or stock dividend, or proportionately
decreased in the case of a combination, and the Purchase Price shall forthwith be proportionately
decreased in the case of a subdivision or stock dividend, or proportionately increased in the case
of a combination.

 4.

 

     For avoidance of doubt, “Preferred Stock” in this Section 9 means that series if Preferred
Stock for which this Warrant is exercised.

     10. Adjustments for Diluting Issuances. The antidilution rights applicable to the Prior
Preferred Stock of the Company are set forth in the Company’s Certificate of Incorporation, as
amended from time to time (the “Articles”), a true and complete copy of which is attached hereto as
Exhibit A. The Company shall promptly provide the Holder hereof with any restatement, amendment or
modification to the Articles promptly after the same has been made.

     11. Mergers and Reclassifications. If after the date hereof the Company shall enter into any
Reorganization (as hereinafter defined), then, as a condition of such Reorganization, lawful
provisions shall be made, and duly executed documents evidencing the same from the Company or its
successor shall be delivered to the Holder, so that the Holder shall thereafter have the right to
purchase, at a total price not to exceed that payable upon the exercise of this Warrant in full,
the kind and amount of shares of stock and other securities and property receivable upon such
Reorganization by a holder of the number of shares of Next Round Stock or, at Holder’s option if
the Next Round Financing has not closed, the Prior Preferred Stock which might have been purchased
by the Holder immediately prior to such Reorganization, and in any such case appropriate provisions
shall be made with respect to the rights and interest of the Holder to the end that the provisions
hereof (including without limitation, provisions for the adjustment of the Purchase Price and the
number of shares issuable hereunder and the provisions relating to the net issue election) shall
thereafter be applicable in relation to any shares of stock or other securities and property
thereafter deliverable upon exercise hereof. For the purposes of this Section 11, the term
“Reorganization” shall include without limitation any reclassification, capital reorganization or
change of the Preferred Stock (other than as a result of a subdivision, combination or stock
dividend provided for in Section 9 hereof), or any consolidation of the Company with, or merger of
the Company into, another corporation or other business organization (other than a merger in which
the Company is the surviving corporation and which does not result in any reclassification or
change of the outstanding Preferred Stock and other than any Merger that results in the automatic
exercise of this Warrant pursuant to Section 7 hereof), or any sale or conveyance to another
corporation or other business organization of all or substantially all of the assets of the
Company.

     12. Certificate of Adjustment. Whenever the Purchase Price is adjusted, as herein provided,
in accordance with the Company’s Certificate of Incorporation, the Company shall promptly deliver
to the Holder a certificate of the Company’s chief financial officer setting forth the Purchase
Price after such adjustment and setting forth a brief statement of the facts requiring such
adjustment.

     13. Notices of Record Date, Etc. In the event of:

          (a) any taking by the Company of a record of the holders of any class of securities for the
purpose of determining the holders thereof who are entitled to receive any dividend or other
distribution, or any right to subscribe for, purchase, sell or otherwise acquire or dispose of any
shares of stock of any class or any other securities or property, or to receive any other right;

          (b) any reclassification of the capital stock of the Company, capital reorganization of the
Company, consolidation or merger involving the Company, or sale or conveyance of all or
substantially all of its assets; or

          (c) any voluntary or involuntary dissolution, liquidation or winding-up of the Company;

then in each such event the Company will provide or cause to be provided to the Holder a written
notice thereof. Such notice shall be provided at least twenty (20) business days prior to the date
specified in such notice on which any such action is to be taken.

     14. Representations, Warranties and Covenants. This Warrant is issued and delivered by the
Company and accepted by each Holder on the basis of the following representations, warranties and
covenants made by the Company:

 5.

 

          (a) The Company has all necessary authority to issue, execute and deliver this Warrant and to
perform its obligations hereunder. This Warrant has been duly authorized, issued, executed and
delivered by the Company and is the valid and binding obligation of the Company, enforceable in
accordance with its terms, except as may be limited by (i) applicable bankruptcy, insolvency,
reorganization, or similar laws relating to or affecting the enforcement of creditors’ rights and
(ii) laws relating to the availability of specific performance, injunctive relief or other
equitable remedies.

          (b) The shares of Prior Preferred Stock issuable upon the exercise of this Warrant have been
duly authorized and reserved for issuance by the Company and, when issued in accordance with the
terms hereof, will be validly issued, fully paid and nonassessable. The shares of Next Round
Stock, when authorized, shall be duly authorized and reserved for issuance by Company and, when
issued in accordance with the terms hereof, will be validly issued, fully paid and nonassessable.

          (c) The issuance, execution and delivery of this Warrant do not, and the issuance of the
shares of Preferred Stock upon the exercise of this Warrant in accordance with the terms hereof
will not, (i) violate or contravene the Company’s Articles or by-laws, or any law, statute,
regulation, rule, judgment or order applicable to the Company or (ii) violate, contravene or result
in a breach or default under any contract, agreement or instrument to which the Company is a party
or by which the Company or any of its assets are bound or (iii) require the consent or approval of
or the filing of any notice or registration with any person or entity (other than any applicable
consents, approvals or securities laws filings, which will be obtained or filed in a timely
manner).

          (d) So long as this Warrant has not terminated, Holder shall be entitled to receive such
financial and other information as the Holder would be entitled to receive under Section 2.1 of the
Amended and Restated Investor Rights Agreement (the “Amended Rights Agreement”) applicable to the
Preferred Stock if Holder were a holder of that number of shares issuable upon full exercise of
this Warrant; provided the rights under this Section 14(d) shall terminate upon the initial Public
Offering of the Company’s securities.

          (e) So long as this Warrant has not terminated, Holder shall be entitled to receive such
financial and other information as the Holder would be entitled to receive under the Stock Purchase
Agreement applicable to the Prior Preferred Stock if Holder were a holder of that number of shares
issuable upon full exercise of this Warrant.

          (f) As of the date hereof, the authorized capital stock of the Company consists of (i)
55,000,000 shares of Common Stock, of which 8,891,051shares are issued and outstanding and (ii) 14,
444,551 shares of Series A Preferred Stock, of which 14,262,748 are issued and outstanding shares
and (iii) 19,000,000 shares of Series B Preferred Stock, of which 18,333,333 are issued and
outstanding. Attached hereto as Exhibit B is a capitalization table summarizing the capitalization
of the Company. Once per calendar quarter, the Company will provide Holder with a current
capitalization table indicating changes, if any, to the number of outstanding shares of common
stock and preferred stock.

     15. Registration Rights. As soon as reasonably practicable, the Company shall cause the
Holder to become party to the Company’s Amended Rights Agreement, such that Holder shall be
entitled to all rights and privileges under Section 1 only of the Amended Rights Agreement as a
“Holder” and “Investor” thereunder and the Preferred Stock issuable upon exercise of this Warrant
(and Common Stock issued upon conversion of such Preferred Stock) shall be “Registrable
Securities,” under the Amended Rights Agreement.

     16. Amendment. The terms of this Warrant may be amended, modified or waived only with the
written consent of the Holder and the Company.

     17. Representations and Covenants of the Holder. This Warrant has been entered into by the
Company in reliance upon the following representations and covenants of the Holder, which by its
execution hereof the Holder hereby confirms:

 6.

 

          (a) Authorization. The Holder represents that it has full power and authority to enter into
this Warrant. This Warrant constitutes the Holder’s valid and legally binding obligation,
enforceable in accordance with its terms, except as may be limited by (i) applicable bankruptcy,
insolvency, reorganization, or similar laws relating to or affecting the enforcement of creditors’
rights and (ii) laws relating to the availability of specific performance, injunctive relief or
other equitable remedies.

          (b) Investment Purpose. This Warrant and the Preferred Stock issuable upon exercise of the
Warrant is and will be acquired for investment and not with a view to the sale or distribution of
any part thereof, and the Holder has no present intention of selling or engaging in any public
distribution of the same except pursuant to a registration or exemption.

          (c) Accredited Investor. Holder is an “accredited investor” within the meaning of the
Securities and Exchange Rule 501 of Regulation D, as presently in effect.

          (d) Private Issue. The Holder understands (i) that the Preferred Stock issuable upon exercise
of the Holder’s rights contained herein is not registered under the 1933 Act or qualified under
applicable state securities laws on the ground that the issuance contemplated by this Warrant will
be exempt from the registration and qualifications requirements thereof, and (ii) that the
Company’s reliance on such exemption is predicated on the representations set forth in this Section
17.

          (e) Financial Risk. The Holder has such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of its investment and has the ability
to bear the economic risks of its investment.

     18. Notices, Transfers, Etc.

          (a) All notices and other communications given or made pursuant hereto shall be in writing and
shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b)
when sent by confirmed electronic mail or facsimile if sent during normal business hours of the
recipient, and if not so confirmed, then on the next business day, (c) five (5) days after having
been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one
(1) day after deposit with a nationally recognized overnight courier, specifying next day delivery,
with written verification of receipt. All communications shall be sent to the respective parties
at the following addresses (or at such other addresses as shall be specified by notice given in
accordance with this Section 18): If to the Company:

Aruba Wireless Networks, Inc.

180 Great Oaks Boulevard

San Jose, CA 95119

Attention: Duston Williams

If to Holder:

Lighthouse Capital Partners IV, L.P.

500 Drake’s Landing Road

Greenbrae, California 94904-3011

Attn: Contract Administration

          (b) Subject to compliance with applicable federal and state securities laws, this Warrant may
be transferred by the Holder with respect to any or all of the shares purchasable hereunder. Upon
surrender of this Warrant to the Company, together with the assignment notice annexed hereto duly
executed, for transfer of this Warrant as an entirety by the Holder, the Company shall issue a new
warrant of the same denomination to the assignee. Upon surrender of this Warrant to the Company,
together with the assignment hereof properly endorsed, by the Holder for transfer with respect to a
portion of the shares of Preferred Stock purchasable hereunder, the Company shall issue a new
warrant to the assignee, in such denomination as shall be requested by the Holder hereof,

 7.

 

and shall issue to such Holder a new warrant covering the number of shares in respect of which
this Warrant shall not have been transferred.

          (c) In case this Warrant shall be mutilated, lost, stolen or destroyed, the Company shall
issue a new warrant of like tenor and denomination and deliver the same (i) in exchange and
substitution for and upon surrender and cancellation of any mutilated Warrant, or (ii) in lieu of
any Warrant lost, stolen or destroyed, upon receipt of an affidavit of the Holder or other evidence
reasonably satisfactory to the Company of the loss, theft or destruction of such Warrant.

     19. No Impairment. The Company will not, by amendment of its Articles or through any
reclassification, capital reorganization, consolidation, merger, sale or conveyance of assets,
dissolution, liquidation, issue or sale of securities or any other voluntary action, avoid or seek
to avoid the observance of performance of any of the terms of this Warrant, but will at all times
in good faith assist in the carrying out of all such terms and in the taking of all such action as
may be necessary or appropriate in order to protect the rights of the Holder.

     20. No Voting or Dividend Rights. Nothing contained in this Warrant shall be construed as
conferring upon the Holder hereof the right to vote or to consent or to receive notice as a
stockholder of the Company or any other matters or any rights whatsoever as a stockholder (except
as provided herein) of the Company. No dividends (except a stock dividend) or interest shall be
payable or accrued in respect of this Warrant or the interest represented hereby or the shares
purchasable hereunder, until, and only to the extent that, this Warrant shall have been exercised.

     21. Governing Law. The provisions and terms of this Warrant shall be governed by and
construed in accordance with the internal laws of the State of California.

     22. Successors and Assigns. This Warrant shall be binding upon the Company’s successors and
assigns and shall inure to the benefit of the Holder’s successors, legal representatives and
permitted assigns.

     23. Business Days. If the last or appointed day for the taking of any action required or the
expiration of any rights granted herein shall be a Saturday or Sunday or a legal holiday in
California, then such action may be taken or right may be exercised on the next succeeding day
which is not a Saturday or Sunday or such a legal holiday.

     24. Conversion to Common Stock. If prior to the exercise in full of this Warrant, all of the
Preferred Stock shall have been converted into Common Stock pursuant to the Company’s Articles in
effect immediately prior to such conversion, then, effective upon such conversion, this Warrant
shall be exercisable only for shares of Common Stock, and the Holder shall thereupon have the right
to purchase, at a total price equal to that payable upon the exercise of this Warrant in full, the
number of shares of Common Stock which would have been receivable by the Holder if the Holder had
exercised this Warrant for shares of Preferred Stock immediately prior to such conversion of such
shares of Preferred Stock into shares of Common Stock, and in such event appropriate provisions
shall be made with respect to the rights and interest of the Holder to the end that the provisions
hereof (including, without limitation, the provisions for the adjustment of the Purchase Price and
of the number of shares purchasable upon exercise of this Warrant and the provisions relating to
the net issue election) shall thereafter be applicable to any shares of Common Stock deliverable
upon the exercise hereof.

     25. Market Stand-Off. The Holder hereby agrees that, to the extent requested by the company
or an underwriter of securities of the Company and provided all officers and directors and greater
than one percent (1%) stockholders of Company enter into similar agreements, it shall not sell or
otherwise transfer or dispose of any Preferred Stock or Common Stock (other than to donees or
partners of the Holder who agree to be similarly bound) for up to one hundred eight (180) days
following the effective date of a registration statement of the Company filed under the Securities
Act; provided, however, that such agreement shall be applicable only to the first such registration
statement of the Company which covers securities to be sold on its behalf to the public in an
underwritten offering but not to Common Stock sold pursuant to such registration statement. In
order to enforce the foregoing covenant, the Company shall have the right to place restrictive
legends on the certificates representing the Preferred Stock

 8.

 

issuable upon exercise of this Warrant (and Common Stock issuable upon
conversion of such Preferred Stock) and to impose stop transfer instructions with respect to such
Preferred Stock and Common Stock.

     26. Value. The Company and the Holder agree that the value of this Warrant on the date of
grant is $100.

     Dated: May 18, 2004

	 	 	 	 	 	 	 
	 	 	Aruba Wireless Networks, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Duston Williams	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Duston Williams	 	 
	 

	 	Title:
	 	CFO	 	 

Agreed and Accepted:

Lighthouse Capital Partners IV, L.P.

	 	 	 	 	 
	By:

	 	Lighthouse Management Partners IV, L.L.C.,	 	 
	 

	 	its general partner	 	 
	 
	 	 	 	 
	By:

	 	/s/ Thomas Conneely	 	 
	 

	 	 	 	 
	Name:

	 	Thomas Conneely	 	 
	Title:

	 	Vice President	 	 

 9.

 

Subscription

	 	 	 	 	 
	To:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 

The undersigned hereby represents and warrants that Representations and Warranties in Section 17
hereof are true and correct as of the date hereof. The undersigned hereby subscribes for
                    
shares of Preferred Stock covered by this Warrant. The certificate(s) for such
shares shall be issued in the name of the undersigned or as otherwise indicated below:

	 	 	 	 	 
	 	 	 	 	 
	Signature
	 	 	 	 
	 
	 	 	 	 
	 	 	 	 	 
	Name for Registration
	 	 	 	 
	 
	 	 	 	 
	 	 	 	 	 
	Mailing Address
	 	 	 	 

 10.

 

Net Issue Election Notice

	 	 	 	 	 	 	 	 	 
	To:

	 	 	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 	 	 

The undersigned hereby elects under Section 4 to surrender the right to purchase shares of
Preferred Stock pursuant to this Warrant.

     Net
Exercise the attached Warrant with respect to                      shares of Preferred Stock.

The undersigned hereby represents and warrants that Representations and Warranties in Section 17
hereof are true and correct as of the date hereof. The certificate(s) for such shares issuable
upon such net issue election shall be issued in the name of the undersigned or as otherwise
indicated below:

	 	 	 	 	 
	 	 	 	 	 
	Signature
	 	 	 	 
	 
	 	 	 	 
	 	 	 	 	 
	Name for Registration
	 	 	 	 
	 
	 	 	 	 
	 	 	 	 	 
	Mailing Address
	 	 	 	 

 1.

 

Assignment

	 	 	 	 	 	 	 
	For value received	 	 	 	hereby sells, assigns and transfers unto	 	 
	 	 	 	 	 	 	 

	 	 	 
	 

	 	 	 
	 
	[Please print or typewrite name and address of Assignee]

	 	 	 
	 

the within Warrant, and does hereby irrevocably constitute and appoint
                                                                                its
attorney to transfer the within Warrant on the books of the
within named Company with full power of substitution on the premises.

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	Signature	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	Name for Registration	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	Mailing Address	 	 	 	 
	 
	 	 	 	 	 	 
	In the Presence of:	 	 	 	 
	 
	 	 	 	 	 

 1.

 

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933
ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR TRANSFERRED UNLESS SUCH SALE
OR TRANSFER IS IN ACCORDANCE WITH THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS OR
SOME OTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS IS
AVAILABLE WITH RESPECT THERETO.

PREFERRED STOCK PURCHASE WARRANT

			
	 	 	 
	Warrant No. C-3
	 	Number of Shares (As Determined Below)
	 
	 	Preferred Stock

Aruba Wireless Networks, Inc. 

Effective as of May 18, 2004

Void after May 18, 2011

     1. Issuance. This Preferred Stock Purchase Warrant (the “Warrant”) is issued to
Lighthouse Capital Partners IV, L.P.  (“Lighthouse”) by Aruba Wireless Networks,
Inc., a Delaware corporation (hereinafter with its successors called the “Company”). All
capitalized terms used herein, but not defined herein, shall have the meaning ascribed to such
terms under that certain Loan and Security Agreement No. 3522 between Company and Lighthouse of even
date herewith (the “Agreement”).

     2. Purchase Price; Number of Shares. The registered holder of this Warrant (the “Holder”),
commencing on the date hereof, is entitled upon surrender of this Warrant with the subscription
form annexed hereto duly executed, at the principal office of the Company, to purchase from the
Company, at a price per share equal to the applicable Purchase Price, that number of fully paid and
nonassessable shares of the Company’s Next Round Stock equal to (A) One Hundred Thirty Three
Thousand Three Hundred Thirty Three Dollars and Thirty Three Cents ($133,333.33) plus (B) four
percent (4%) of the aggregate principal amount of the Working Capital Advances drawn during the
Third Borrowing Period, divided by (C) the applicable Purchase Price.

In the event of the consummation by the Company of a Merger (as defined in Section 7) prior to the
consummation by the Company of the Next Round Financing (as defined below), the Holder shall have
the right, in substitution of the rights granted to Holder above in this Section 2, upon surrender
of this Warrant with the subscription form annexed hereto duly executed, at the principal office of
the Company, to purchase from the Company, at a purchase price per share equal to the applicable
Purchase Price, that number of shares of the Prior Preferred stock equal to (A) One Hundred Thirty
Three Thousand Three Hundred Thirty Three Dollars and Thirty Three Cents ($133,333.33) plus (B)
four percent (4%) of the aggregate principal amount of the Working Capital Advances drawn during
the Third Borrowing Period, divided by (C) the applicable Purchase Price.

In addition to, and without limiting the foregoing, in the event the Company does not consummate a
Merger or the Next Round Financing on or before May 18, 2005, then the Holder shall have the right
on and after that date, upon surrender of this Warrant with the subscription form annexed hereto
duly executed, at the principal office of the Company, to purchase from the Company, at a price per
share equal to the Fair Market Value (on a per share basis as determined in Section 4 hereof) of
the Prior Preferred stock on the date of exercise of this Warrant, that number of shares of the
Prior Preferred Stock equal to (A) One Hundred Thirty Three Thousand Three Hundred Thirty Three
Dollars and Thirty Three Cents ($133,333.33) plus (B) four percent (4%) of the aggregate principal
amount of the Working Capital Advances drawn during the Third Borrowing Period, divided by the Fair
Market Value (on a per share basis as determined in Section 4 hereof) of the Prior Preferred Stock
on the date of exercise of this Warrant.

1.

 

In addition to other terms which may be defined herein, the following terms, as used in this
Warrant, shall have the following meanings:

                    (i) “Adjusted Purchase Price” means the exercise price calculated as follows:

	 	 	 	 	 
	 

	 	X(B) + Y(C)
	 	 
	 

	 	 	 	 
	 

	 	X + Y	 	 

     X = The number of months (including fractional months) between (A) date of the closing of the
sale of the Prior Preferred Stock and (B) the first to occur of (i) the later of the last Working
Capital Advance during the Second Borrowing Period or the first Working Capital Advance during the
Third Borrowing Period or (ii) the date of the consummation of a Merger.

     Y = The number of months (including fractional months) between (A) the later of (i) the date
of the execution and delivery of the Agreement and (ii) the initial Working Capital Advance during
the Third Borrowing Period, and (B) the first to occur of (i) the date of the consummation of the
sale of the Next Round Stock, (ii) the date of the consummation of a Merger.

     B = $1.20 (subject to adjustment, if any, under the Company’s Certificate of Incorporation).

     C = (A) The Next Round Price (subject to adjustment, if any, under the Company’s Certificate
of Incorporation as amended), or, (B) if any portion of the Warrant is exercised in connection with
a Merger prior to the date of the consummation of the sale of the Next Round of Stock, C shall
equal the value of the per share consideration to be valued in accordance with the provisions set
forth in the Company’s Articles (as defined in Section 10).

          (ii)
“Common Stock” means fully paid and nonassessable shares of the Company’s common stock,
$0.0001 par value.

          (iii) “Next Round Financing” means the Company’s next bona fide round of preferred stock
equity financing resulting in net aggregate proceeds to the Company in an amount equal to or in
excess of $5,000,000.00

          (iv) “Next Round Stock” means the class or series of the Company’s preferred equity securities
issued in connection with the Next Round Financing.

          (v) “Preferred Stock” means those shares of Next Round Stock or Prior Preferred Stock, as the
case may be, issued or issuable upon exercise of this Warrant.

          (vi) “Prior Preferred Stock” means the Company’s Series B Preferred Stock, $0.0001 par value
per share.

          (vii) “Purchase Price” means (A) in connection with the exercise of this Warrant with respect
to Next Round Stock, (i) the lowest price per share paid by an investor for a share of Next Round
Stock in connection with the Next Round Financing if the sale of the Next Round Stock is
consummated before the initial Working Capital Advance during the Third Borrowing Period is made,
and (ii) the Adjusted Purchase Price if the sale of the Next Round Stock is consummated after the
initial Working Capital Advance during the Third Borrowing Period is made, or (B) in connection
with the exercise of this Warrant with respect to the Prior Preferred Stock in connection with a
Merger, the Adjusted Purchase Price.

          (viii) “Reorganization” has the meaning ascribed to such term in Section 11.

2.

 

Until such time as this Warrant is exercised in full or expires, the Purchase Price and the
securities issuable upon exercise of this Warrant are subject to adjustment as hereinafter
provided. The person or persons in whose name or names any certificate representing shares of
Preferred Stock is issued hereunder shall be deemed to have become the holder of record of the
shares represented thereby as at the close of business on the date this Warrant is exercised with
respect to such shares, whether or not the transfer books of the Company shall be closed.

     3. Payment of Purchase Price. The Purchase Price may be paid (i) in cash or by check, (ii) by
the surrender by the Holder to the Company of any promissory notes or other obligations issued by
the Company, with all such notes and obligations so surrendered being credited against the Purchase
Price in an amount equal to the principal amount thereof plus accrued interest to the date of
surrender, or (iii) by any combination of the foregoing.

     4. Net Issue Election. The Holder may elect to receive, without the payment by the Holder of
any additional consideration, shares of Preferred Stock equal to the value of this Warrant or any
portion hereof by the surrender of this Warrant or such portion to the Company, with the net issue
election notice annexed hereto duly executed, at the principal office of the Company. Thereupon,
the Company shall issue to the Holder such number of fully paid and nonassessable shares of
Preferred Stock as is computed using the following formula:

	 	 	 	 	 	 	 
	 

	 	X=
	 	Y(A-B) 
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	A	 	 

	 	 	 	 	 	 	 
	 

	 	where:
	 	X =
	 	the number of shares of Preferred Stock to be issued to the Holder pursuant to
this Section 4.
	 
	 	 	 	 	 	 
	 

	 	 	 	Y =
	 	the number of shares of Preferred Stock in respect of which
the net issue election is made pursuant to this Section 4.
	 
	 	 	 	 	 	 
	 

	 	 	 	A =
	 	the Fair Market Value (defined below) of one share of
Preferred Stock, as determined at the time the net issue election is made
pursuant to this Section 4.
	 
	 	 	 	 	 	 
	 

	 	 	 	B =
	 	the Purchase Price in effect under this Warrant at the time
the net issue election is made pursuant to this Section 4.

“Fair Market Value” of a share of Preferred Stock (or Common Stock if the Preferred Stock has been
automatically converted into Common Stock) $0.0001 as of the date that the net issue election is
made (the “Determination Date”) shall mean:

     (i) If the net issue election is made in connection with and contingent upon the
closing of the sale of the Company’s Common Stock to the public in a public offering
pursuant to a Registration Statement under the 1933 Act (a “Public Offering”), and if the
Company’s Registration Statement relating to such Public Offering (“Registration Statement”)
has been declared effective by the Securities and Exchange Commission, then the initial
“Price to Public” specified in the final prospectus with respect to such offering multiplied
by the number of shares of Common Stock into which each share of Preferred Stock is then
convertible.

     (ii) If the net issue election is not made in connection with and contingent upon a
Public Offering, then as follows:

                     (a) If traded on a securities exchange or the Nasdaq National Market, the fair market value of
the Common Stock shall be deemed to be the average of the closing or last reported sale prices of
the Common Stock on such exchange or market over the five day period ending five trading days prior
to the Determination Date, and the fair market value of the Preferred Stock shall be deemed to be
such fair market value of the Common Stock multiplied by the number of shares of Common Stock into
which each share of Preferred Stock is then convertible;

3.

 

               (b) If otherwise traded in an over-the-counter market, the fair market value of the Common
Stock shall be deemed to be the average of the closing ask prices of the Common Stock over the five
day period ending five trading days prior to the Determination Date, and the fair market value of
the Preferred Stock shall be deemed to be such fair market value of the Common Stock multiplied by
the number of shares of Common Stock into which each share of Preferred Stock is then convertible;
and

               (c) If there is no public market for the Common Stock, then fair market value shall be
determined in good faith by the Company’s Board of Directors.

     5. Partial Exercise. This Warrant may be exercised in part, and the Holder shall be entitled
to receive a new warrant, which shall be dated as of the date of this Warrant, covering the number
of shares in respect of which this Warrant shall not have been exercised.

     6. Fractional Shares. In no event shall any fractional share of Preferred Stock be issued
upon any exercise of this Warrant, but in lieu of such fractional shares the Company shall make a
cash payment therefor on the basis of the Purchase Price.

     7. Expiration Date; Automatic Exercise. This Warrant shall expire on the earlier to occur of
(i) the close of business on May 18, 2011, and (ii) the third anniversary of the initial Public
Offering of the Company’s securities, and shall be void thereafter (the “Expiration Date”).
Notwithstanding the foregoing, this Warrant shall automatically be deemed to be exercised in full
pursuant to the provisions of Section 4 hereof, without any further action on behalf of the Holder,
immediately prior to the time this Warrant would otherwise expire pursuant to the preceding
sentence. Notwithstanding the term of this Warrant fixed pursuant to this Section 7 and provided
Holder has received advance notice of at least twenty (20) days and has not earlier converted, this
Warrant shall automatically be converted pursuant to Section 4 hereof, without any action by
Holder, upon the closing of a sale of all or substantially all of the Company’s assets, or the
merger or consolidation of the Company with or into another corporation (other than a merger or
consolidation for the principal purpose of changing the domicile of the Company) that results in
the transfer of fifty percent (50%) or more of the outstanding voting power of the Company (a
“Merger”), except to the extent assumed by the successor corporation (or parent thereof) in
connection with such Merger. In the event that any outstanding warrants to purchase equity
securities of the Company are assumed, this Warrant shall also be similarly assumed.
Notwithstanding anything to the contrary in this Warrant, the holder may rescind any exercise of
its purchase rights after any notice of termination of the proposed transaction if the exercise was
otherwise precipitated by such proposed Merger. In the event of such recission, this Warrant will
continue to be exercisable on the same terms and conditions. Notwithstanding the foregoing, in the
event the Warrant is automatically deemed to be exercised pursuant to this Section 7, the Company
shall not be required to surrender the certificate representing the Preferred Stock until such time
as the Holder surrenders the Warrant.

     8. Reserved Shares; Valid Issuance. The Company covenants that it will at all times from and
after the date hereof reserve and keep available such number of its authorized shares of Prior
Preferred Stock and Common Stock, and will at all times after the Next Round Financing, reserve and
keep available such number of shares of Next Round Stock, free from all preemptive or similar
rights therein, as will be sufficient to permit, respectively, the exercise of this Warrant in full
and the conversion into shares of Common Stock of all shares of Preferred Stock receivable upon
such exercise. The Company further covenants that such shares as may be issued pursuant to such
exercise and/or conversion will, upon issuance, be duly and validly issued, fully paid and
nonassessable and free from all taxes, liens and charges with respect to the issuance thereof.

     9. Stock Splits and Dividends. If after the date hereof the Company shall subdivide the
Preferred Stock, by split-up or otherwise, or combine the Preferred Stock, or issue additional
shares of Preferred Stock in payment of a stock dividend on the Preferred Stock, the number of
shares of Preferred Stock issuable on the exercise of this Warrant shall forthwith be
proportionately increased in the case of a subdivision or stock dividend, or proportionately
decreased in the case of a combination, and the Purchase Price shall forthwith be proportionately
decreased in the case of a subdivision or stock dividend, or proportionately increased in the case
of a combination.

4.

 

     For avoidance of doubt, “Preferred Stock” in this Section 9 means that series of Preferred
Stock for which this Warrant is exercised.

     10. Adjustments for Diluting Issuances. The antidilution rights applicable to the Prior
Preferred Stock of the Company are set forth in the Company’s Certificate of Incorporation, as
amended from time to time (the “Articles”), a true and complete copy of which is attached hereto as
Exhibit A. The Company shall promptly provide the Holder hereof with any restatement, amendment or
modification to the Articles promptly after the same has been made.

     11. Mergers and Reclassifications. If after the date hereof the Company shall enter into any
Reorganization (as hereinafter defined), then, as a condition of such Reorganization, lawful
provisions shall be made, and duly executed documents evidencing the same from the Company or its
successor shall be delivered to the Holder, so that the Holder shall thereafter have the right to
purchase, at a total price not to exceed that payable upon the exercise of this Warrant in full,
the kind and amount of shares of stock and other securities and property receivable upon such
Reorganization by a holder of the number of shares of Next Round Stock or, at Holder’s option if
the Next Round Financing has not closed, the Prior Preferred Stock which might have been purchased
by the Holder immediately prior to such Reorganization, and in any such case appropriate provisions
shall be made with respect to the rights and interest of the Holder to the end that the provisions
hereof (including without limitation, provisions for the adjustment of the Purchase Price and the
number of shares issuable hereunder and the provisions relating to the net issue election) shall
thereafter be applicable in relation to any shares of stock or other securities and property
thereafter deliverable upon exercise hereof. For the purposes of this Section 11, the term
“Reorganization” shall include without limitation any reclassification, capital reorganization or
change of the Preferred Stock (other than as a result of a subdivision, combination or stock
dividend provided for in Section 9 hereof), or any consolidation of the Company with, or merger of
the Company into, another corporation or other business organization (other than a merger in which
the Company is the surviving corporation and which does not result in any reclassification or
change of the outstanding Preferred Stock and other than any Merger that results in the automatic
exercise of this Warrant pursuant to Section 7 hereof), or any sale or conveyance to another
corporation or other business organization of all or substantially all of the assets of the
Company.

     12. Certificate of Adjustment. Whenever the Purchase Price is adjusted, as herein provided,
in accordance with the Company’s Certificate of Incorporation, the Company shall promptly deliver
to the Holder a certificate of the Company’s chief financial officer setting forth the Purchase
Price after such adjustment and setting forth a brief statement of the facts requiring such
adjustment.

     13. Notices of Record Date, Etc. In the event of:

               (a) any taking by the Company of a record of the holders of any class of securities for the
purpose of determining the holders thereof who are entitled to receive any dividend or other
distribution, or any right to subscribe for, purchase, sell or otherwise acquire or dispose of any
shares of stock of any class or any other securities or property, or to receive any other right;

               (b) any reclassification of the capital stock of the Company, capital reorganization of the
Company, consolidation or merger involving the Company, or sale or conveyance of all or
substantially all of its assets; or

               (c) any voluntary or involuntary dissolution, liquidation or winding-up of the Company;

then in each such event the Company will provide or cause to be provided to the Holder a written
notice thereof. Such notice shall be provided at least twenty (20) business days prior to the date
specified in such notice on which any such action is to be taken.

     14. Representations, Warranties and Covenants. This Warrant is issued and delivered by the
Company and accepted by each Holder on the basis of the following representations, warranties and
covenants made by the Company:

5.

 

               (a) The Company has all necessary authority to issue, execute and deliver this Warrant and to
perform its obligations hereunder. This Warrant has been duly authorized, issued, executed and
delivered by the Company and is the valid and binding obligation of the Company, enforceable in
accordance with its terms, except as may be limited by (i) applicable bankruptcy, insolvency,
reorganization, or similar laws relating to or affecting the enforcement of creditors’ rights and
(ii) laws relating to the availability of specific performance, injunctive relief or other
equitable remedies.

               (b) The shares of Prior Preferred Stock issuable upon the exercise of this Warrant have been
duly authorized and reserved for issuance by the Company and, when issued in accordance with the
terms hereof, will be validly issued, fully paid and nonassessable. The shares of Next Round
Stock, when authorized, shall be duly authorized and reserved for issuance by the Company and, when
issued in accordance with the terms hereof, will be validly issued, fully paid and nonassessable.

               (c) The issuance, execution and delivery of this Warrant do not, and the issuance of the
shares of Preferred Stock upon the exercise of this Warrant in accordance with the terms hereof
will not, (i) violate or contravene the Company’s Articles or by-laws, or any law, statute,
regulation, rule, judgment or order applicable to the Company or (ii) violate, contravene or result
in a breach or default under any contract, agreement or instrument to which the Company is a party
or by which the Company or any of its assets are bound or (iii) require the consent or approval of
or the filing of any notice or registration with any person or entity (other than any applicable
consents, approvals or securities laws filings, which will be obtained or filed in a timely
manner).

               (d) So long as this Warrant has not terminated, Holder shall be entitled to receive such
financial and other information as the Holder would be entitled to receive under Section 2.1 of the
Amended and Restated Investor Rights Agreement (the “Amended Rights Agreement”) applicable to the
Preferred Stock if Holder were a holder of that number of shares issuable upon full exercise of
this Warrant; provided the rights under this Section 14(d) shall terminate upon the initial Public
Offering of the Company’s securities.

               (e) So long as this Warrant has not terminated, Holder shall be entitled to receive such
financial and other information as the Holder would be entitled to receive under the Stock Purchase
Agreement applicable to the Prior Preferred Stock if Holder were a holder of that number of shares
issuable upon full exercise of this Warrant.

               (f) As of the date hereof, the authorized capital stock of the Company consists of (i)
55,000,000 shares of Common Stock, of which 8,891,051shares are issued and outstanding and (ii) 14,
444,551 shares of Series A Preferred Stock, of which 14,262,748 are issued and outstanding shares
and (iii) 19,000,000 shares of Series B Preferred Stock, of which 18,333,333 are issued and
outstanding. Attached hereto as Exhibit B is a capitalization table summarizing the capitalization
of the Company. Once per calendar quarter, the Company will provide Holder with a current
capitalization table indicating changes, if any, to the number of outstanding shares of common
stock and preferred stock.

     15. Registration Rights. As soon as reasonably practicable, the Company shall cause the
Holder to become party to the Company’s Amended Rights Agreement, such that Holder shall be
entitled to all rights and privileges under Section 1 only of the Amended Rights Agreement as a
“Holder” and “Investor” thereunder and the Preferred Stock issuable upon exercise of this Warrant
(and Common Stock issued upon conversion of such Preferred Stock) shall be “Registrable
Securities,” under the Amended Rights Agreement.

     16. Amendment. The terms of this Warrant may be amended, modified or waived only with the
written consent of the Holder and the Company.

     17. Representations and Covenants of the Holder. This Warrant has been entered into by the
Company in reliance upon the following representations and covenants of the Holder, which by its
execution hereof the Holder hereby confirms:

6.

 

          (a) Authorization. The Holder represents that it has full power and authority to enter into
this Warrant. This Warrant constitutes the Holder’s valid and legally binding obligation,
enforceable in accordance with its terms, except as may be limited by (i) applicable bankruptcy,
insolvency, reorganization, or similar laws relating to or affecting the enforcement of creditors’
rights and (ii) laws relating to the availability of specific performance, injunctive relief or
other equitable remedies.

          (b) Investment Purpose. This Warrant and the Preferred Stock issuable upon exercise of the
Warrant is and will be acquired for investment and not with a view to the sale or distribution of
any part thereof, and the Holder has no present intention of selling or engaging in any public
distribution of the same except pursuant to a registration or exemption.

          (c) Accredited Investor. Holder is an “accredited investor” within the meaning of the
Securities and Exchange Rule 501 of Regulation D, as presently in effect.

          (d) Private Issue. The Holder understands (i) that the Preferred Stock issuable upon exercise
of the Holder’s rights contained herein is not registered under the 1933 Act or qualified under
applicable state securities laws on the ground that the issuance contemplated by this Warrant will
be exempt from the registration and qualifications requirements thereof, and (ii) that the
Company’s reliance on such exemption is predicated on the representations set forth in this Section
17.

          (e) Financial Risk. The Holder has such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of its investment and has the ability
to bear the economic risks of its investment.

     18. Notices, Transfers, Etc.

          (a) All notices and other communications given or made pursuant hereto shall be in writing and
shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b)
when sent by confirmed electronic mail or facsimile if sent during normal business hours of the
recipient, and if not so confirmed, then on the next business day, (c) five (5) days after having
been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one
(1) day after deposit with a nationally recognized overnight courier, specifying next day delivery,
with written verification of receipt. All communications shall be sent to the respective parties
at the following addresses (or at such other addresses as shall be specified by notice given in
accordance with this Section 18): If to the Company:

Aruba Wireless Networks, Inc.

180 Great Oaks Boulevard

San Jose, CA 95119

Attention: Duston Williams

If to Holder:

Lighthouse Capital Partners IV, L.P.

500 Drake’s Landing Road

Greenbrae, CA 94904-3011

Attn: Contract Administration

          (b) Subject to compliance with applicable federal and state securities laws, this Warrant may
be transferred by the Holder with respect to any or all of the shares purchasable hereunder. Upon
surrender of this Warrant to the Company, together with the assignment notice annexed hereto duly
executed, for transfer of this Warrant as an entirety by the Holder, the Company shall issue a new
warrant of the same denomination to the assignee. Upon surrender of this Warrant to the Company,
together with the assignment hereof properly endorsed, by the Holder for transfer with respect to a
portion of the shares of Preferred Stock purchasable hereunder, the Company shall issue a new
warrant to the assignee, in such denomination as shall be requested by the Holder hereof,

7.

 

and shall issue to such Holder a new warrant covering the number of shares in respect of which
this Warrant shall not have been transferred.

          (c) In case this Warrant shall be mutilated, lost, stolen or destroyed, the Company shall
issue a new warrant of like tenor and denomination and deliver the same (i) in exchange and
substitution for and upon surrender and cancellation of any mutilated Warrant, or (ii) in lieu of
any Warrant lost, stolen or destroyed, upon receipt of an affidavit of the Holder or other evidence
reasonably satisfactory to the Company of the loss, theft or destruction of such Warrant.

     19. No Impairment. The Company will not, by amendment of its Articles or through any
reclassification, capital reorganization, consolidation, merger, sale or conveyance of assets,
dissolution, liquidation, issue or sale of securities or any other voluntary action, avoid or seek
to avoid the observance of performance of any of the terms of this Warrant, but will at all times
in good faith assist in the carrying out of all such terms and in the taking of all such action as
may be necessary or appropriate in order to protect the rights of the Holder.

     20. No Voting or Dividend Rights. Nothing contained in this Warrant shall be construed as
conferring upon the Holder hereof the right to vote or to consent or to receive notice as a
stockholder of the Company or any other matters or any rights whatsoever as a stockholder (except
as provided herein) of the Company. No dividends (except a stock dividend) or interest shall be
payable or accrued in respect of this Warrant or the interest represented hereby or the shares
purchasable hereunder, until, and only to the extent that, this Warrant shall have been exercised.

     21. Governing Law. The provisions and terms of this Warrant shall be governed by and
construed in accordance with the internal laws of the State of California.

     22. Successors and Assigns. This Warrant shall be binding upon the Company’s successors and
assigns and shall inure to the benefit of the Holder’s successors, legal representatives and
permitted assigns.

     23. Business Days. If the last or appointed day for the taking of any action required or the
expiration of any rights granted herein shall be a Saturday or Sunday or a legal holiday in
California, then such action may be taken or right may be exercised on the next succeeding day
which is not a Saturday or Sunday or such a legal holiday.

     24. Conversion to Common Stock. If prior to the exercise in full of this Warrant, all of the
Preferred Stock shall have been converted into Common Stock pursuant to the Company’s Articles in
effect immediately prior to such conversion, then, effective upon such conversion, this Warrant
shall be exercisable only for shares of Common Stock, and the Holder shall thereupon have the right
to purchase, at a total price equal to that payable upon the exercise of this Warrant in full, the
number of shares of Common Stock which would have been receivable by the Holder if the Holder had
exercised this Warrant for shares of Preferred Stock immediately prior to such conversion of such
shares of Preferred Stock into shares of Common Stock, and in such event appropriate provisions
shall be made with respect to the rights and interest of the Holder to the end that the provisions
hereof (including, without limitation, the provisions for the adjustment of the Purchase Price and
of the number of shares purchasable upon exercise of this Warrant and the provisions relating to
the net issue election) shall thereafter be applicable to any shares of Common Stock deliverable
upon the exercise hereof.

     25. Market Stand-Off. The Holder hereby agrees that, to the extent requested by the company
or an underwriter of securities of the Company and provided all officers and directors and greater
than one percent (1%) stockholders of Company enter into similar agreements, it shall not sell or
otherwise transfer or dispose of any Preferred Stock or Common Stock (other than to donees or
partners of the Holder who agree to be similarly bound) for up to one hundred eight (180) days
following the effective date of a registration statement of the Company filed under the Securities
Act; provided, however, that such agreement shall be applicable only to the first such registration
statement of the Company which covers securities to be sold on its behalf to the public in an
underwritten offering but not to Common Stock sold pursuant to such registration statement. In
order to enforce the foregoing covenant, the Company shall have the right to place restrictive
legends on the certificates representing the

8.

 

Preferred Stock issuable upon exercise of this Warrant (and Common Stock issuable upon conversion
of such Preferred Stock) and to impose stop transfer instructions with respect to such Preferred
Stock and Common Stock.

     26. Value. The Company and the Holder agree that the value of this Warrant on the date of
grant is $100.

	 	 	 	 	 	 	 
	     Dated: May 18,
2004	 	Aruba Wireless Networks, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Duston Williams	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	 Duston Williams	 	 
	 

	 	Title:
	 	CFO	 	 

Agreed and Accepted:

Lighthouse Capital Partners IV, L.P.

	 	 	 	 	 	 	 
	By:	 	Lighthouse Management Partners IV, L.L.C.,

its general partner
	 
	 	 	 	 	 	 
	By:

	 	/s/ Thomas Conneely	 	 	 	 
	 

	 	 	 	 	 	 
	Name:

	 	Thomas Conneely	 	 	 	 
	Title:

	 	Vice President	 	 	 	 

9.

 

Subscription

	 	 	 	 	 
	To:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 

The undersigned hereby represents and warrants that Representations and Warranties in Section 17
hereof are true and correct as of the date hereof. The undersigned hereby subscribes for
                     shares of Preferred Stock covered by this Warrant. The certificate(s) for such
shares shall be issued in the name of the undersigned or as otherwise indicated below:

	 	 	 	 	 
	 

Signature

	 	 	 	 
	 
	 	 	 	 
	 

Name for Registration

	 	 	 	 
	 
	 	 	 	 
	 

Mailing Address

	 	 	 	 

1.

 

Net Issue Election Notice

			
	 	 	 
	To:                                                             
	 	Date:                                        

The undersigned hereby elects under Section 4 to surrender the right to purchase shares of
Preferred Stock pursuant to this Warrant.

Net Exercise the attached Warrant with respect to                      shares of Preferred Stock.

The undersigned hereby represents and warrants that Representations and Warranties in Section 17
hereof are true and correct as of the date hereof. The certificate(s) for such shares issuable
upon such net issue election shall be issued in the name of the undersigned or as otherwise
indicated below:

	 	 	 	 	 
	 

Signature

	 	 	 	 
	 
	 	 	 	 
	 

Name for Registration

	 	 	 	 
	 
	 	 	 	 
	 

Mailing Address

	 	 	 	 

1.

 

Assignment

	 	 	 	 	 	 	 
	For value received	 	 	 	hereby sells, assigns and transfers unto	 	 
	 	 	 	 	 	 	 
	 

 

 

[Please print or typewrite name and address of Assignee]

 

the within Warrant, and does hereby irrevocably constitute and appoint
                                                             its attorney to transfer the within Warrant on the books of the
within named Company with full power of substitution on the premises.

	 	 	 	 	 
	Dated:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	Signature	 	 
	 
	 	 	 	 
	 	 	 
	Name for Registration	 	 
	 
	 	 	 	 
	 	 	 
	Mailing Address	 	 
	 
	 	 	 	 
	In the Presence of:
	 
	 	 	 	 
	 	 	 

1.

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