Document:

Lease Agreement, dated November 1, 2007

 Exhibit 10.38 
 Ref. No. /

_____________ 
 Tenancy Agreement 
 

 
 An Agreement made the First day of November, 2007 between the Landlord and the Tenant as more particularly described
in Schedule I. 
 

 
 The Landlord shall let and the Tenant shall take the Premises for the Term and at the Rent as more particularly
described in Schedule I and both parties agree to observe and perform the terms and conditions as follows :-

:- 
  

	1.	The Tenant shall pay to the Landlord the Rent in advance on the first day each and every calendar month during the Term. If the Tenant shall fail to pay the Rent within 7 days from
the due date, the Landlord shall have right to institute appropriate action to recover the Rent and all costs, expenses and other outgoings so incurred by the Landlord in relation to such action shall be a debt owed by the Tenant to the Landlord and
shall be recoverable in full by the Landlord. 

 

 
  

	2.	The Tenant shall not make any alteration and / or additions to the Premises without the prior written consent of the Landlord, which consent shall not be unreasonably withheld.

 

 
  

	3.	The Tenant shall not assign, transfer, sublet or part with the possession of the Premises or any part thereof to any other person. This tenancy shall be personal to the Tenant named
herein. 

 

 
  

	4.	The Tenant shall comply with all ordinances, regulations and rules of Hong Kong and shall observe and perform the covenants; terms and conditions of the Deed of Mutual Covenant and
Sub-Deed of Mutual Covenant (if any) relating to the Premises. The Tenant shall not contravene any negative or restrictive covenants contained in the Government Lease(s) under which the Premises are held from the Government.

 

 
  

	5.	The Tenant shall during the Term pay and discharge all charges in respect of water, electricity, gas and telephone and other similar charges payable in respect of the premises.

 

 
  

	6.	The Tenant shall during the Term keep the interior of the Premises in good and tenantable repair and condition (fair wear and tear and damage caused by inherent defects excepted)
and shall deliver up vacant possession of the Premises in the same repair and condition on the expiration or sooner determination of this Agreement. 

 

 
  

	7.	 The Tenant shall pay to the Landlord the Security Deposit set out in Schedule I for the due observance and performance of the terms and conditions herein contained
and on his part to be observed and performed. Provided that there is no antecedent breach of any of the terms and conditions herein contained, the Landlord shall refund the Security Deposit to the Tenant without 30 days from the date of delivery of
vacant possession of the Premises to the Landlord or settlement of any outstanding payment owed by the Tenant to the Landlord, whichever is later. If the Rent and/or any charges payable by the Tenant hereunder or any part thereof shall be unpaid for
seven (7) days after the same shall become payable (whether legally demanded or not) or if the Tenant shall commit a breach of any of the terms and conditions herein contained, it shall be lawful for the Landlord at any time thereafter to
re-enter the Premises whereupon this Agreement shall absolutely determine and the Landlord may deduct any loss or damage suffered by the Landlord as a result of the Tenant’s breach from the Security 

  

 Page 1 

 

 
  

 Page 2 

 Ref. No. /

:_____________ 
 Schedule I 
 

 
  

					
	The Premises	 	:	  	UNIT 6 ON 10TH FLOOR ENTERPRISE SQUARE THREE
	

	 		  	NO. 39 WANG CHIU ROAD KOWLOON
			
	The Landlord	 	:	  	SOET EMBROIDERY THREAD LIMITED
	

	 		  	Whose address / registered office is situate at

			
		 		  	 
			
		 		  	 
			
	 Telephone No./
 

	 	 :
	  	 
			
	The Tenant	 	:	  	ANDA NETWORKS ( HONG KONG) LIMITED
	

	 		  	Whose address / registered office is situate at

			
		 		  	 
			
		 		  	 
			
	Term	 	:	  	From 01/12/2007 to 30/11/2009 (both days inclusive)
	

	 		  	

                        

                        

			
	 Rent
 

	 	 :
	  	 HK$40,500 per month
 

			
	 Security Deposit
 

	 	:	  	 HK$81,000
 

 Schedule II 
 

 
 1. User

 
 The Tenant shall not use or permit to be used the Premises or any part thereof for any purpose other than for
Commercial purpose only. [P.S - please select one item: e.g. residential / commercial / office / shop / industrial] 
 

 
 2. Miscellaneous Payment 
 

 
  

	a)	The Tenant shall be responsible for the following payments payable in respect of the Premises during the Term:- 

 

 
  

					
	 *(a)  Management fee
 

	  	: $5,548	  	(at current rate) (per month) (subject to revision from time to time)
		  		  	

			
	 *(b)  Air-Conditioning Charges
 

	  	: __________________	  	 (at current rate) (per month) (subject to revision from time to time)
 

			
	 *(c)  Government Rates
 

	  	: $4,800	  	(subject to actual amount demanded by the Government
		  	:	  	

			
	 *(d)  Government Rent
 

	  	:$2,880	  	(subject to actual amount demanded by the Government
		  	:	  	

  

 Page 3 

 Ref. No. /

:_____________ 
  

	b)	The Landlord shall be responsible for the following payments in respect of the Premises during the Term: 

 

 : 
 [Intentionally Deleted] 
 *
delete where inapplicable 
 

 
  

	3.	Rent Free Period

 

 The Tenant shall be entitled to a rent free period from the 01/12/2007 to 14/12/2007 (both days inclusive)
provided that the Tenant shall be responsible for the charges of Government Rent, Government Rates, management fees, water, electricity, gas, telephone and other outgoings payable in respect of Premises during such rent free period. 
 

 14

 01/12/2007

14/12/2007,

 
 4. Break Clause

 
 [Intentionally Deleted] 
 5. Others

 
  

							
	A.	 	

	 	01/12/2007	 	

		 	

				
	B.	 	

	 	01/12/2007	 	

		 	 

 

  

 

 
 The parties acknowledge that this Tenancy Agreement is only a proposed proforma Tenancy Agreement provided by Midland
Realty for the parties’ reference and that is should only be adopted by both parties after they have studied this proforma Tenancy Agreement thoroughly and have considered that it is applicable to their relevant tenancy transaction. 

 

 Page 4Fifth Amendment to Loan and Security Agreement

 Exhibit 10.39 
 FIFTH AMENDMENT TO LOAN AND SECURITY AGREEMENT 
 This Fifth Amendment to Loan and Security Agreement
(this “Amendment”) is entered into as of August 31, 2007, by and between Greater Bay Venture Banking, a division of Greater Bay Bank, N.A. (“Bank”) and ANDA NETWORKS, INC. (“Borrower”). 
 RECITALS 
 Borrower and Bank are
parties to that certain Loan and Security Agreement dated as of September 3, 2004, as amended (the “Agreement”). Borrower and Bank desire to amend certain provisions of the Agreement, all in accordance with the terms of this
Amendment. 
 NOW, THEREFORE, the parties agree as follows: 
 1. Amendments to Agreement. The Agreement is hereby amended as follows: 
 (a) Section 6.9 is amended to read as follows: 
 6.9 Profitability/Loss. 
 For each fiscal quarter of the Borrower beginning with the fiscal quarter ending on September 30, 2007, Borrower shall have achieved
a minimum net profit of at least eighty percent (80%) of the projected net profit for such quarter as set forth in Borrower’s financial plan previously delivered to Bank and attached hereto as Exhibit F. 
 (b) Exhibit E is deleted and replaced with Exhibit E attached hereto. 
 (c) Exhibit F is deleted and replaced with Exhibit F attached hereto. 
 2. Conditions Precedent to Effectiveness. This Amendment shall become effective only upon: 
 (a) receipt by the Bank of the following (each of which shall be in form and substance satisfactory to Bank): 
 (i) counterparts of this Amendment duly executed on behalf of the Borrower and the Bank; 
 (ii) copies of resolutions of the Board of Directors or other authorizing documents of Borrower, authorizing the execution and delivery of
this Amendment; 
 (b) Bank shall have received an amount equal to all Bank Expenses incurred in connection with this
Amendment; and 
 (c) completion of such other matters and delivery of such other agreements, documents and certificates as
Bank may reasonably request. 
 3. Representation and Warranties. Borrower represents and warrants that the Representations and
Warranties contained in the Agreement are true and correct as of the date of this Amendment, and that after giving effect to this Amendment, no Event of Default has occurred and is continuing. 
 4. MISCELLANEOUS. 
 (a) Successors and Assigns. This Amendment shall be binding upon and shall inure to the benefit of Borrower and Bank and their respective successors and assigns; provided, however, that the foregoing shall not authorize any
assignment by Borrower of its rights or duties hereunder. 
  

 1 

 (b) Entire Agreement. This Amendment and the Loan Documents contain the entire
agreement of the parties hereto and supersede any other oral or written agreements or understandings. 
 (c) Course of
Dealing; Waivers. No course of dealing on the part of Bank or its officers, nor any failure or delay in the exercise of any right by Bank, shall operate as a waiver thereof, and any single or partial exercise of any such right shall not preclude
any later exercise of any such right. Bank’s failure at any time to require strict performance by Borrower of any provision shall not affect any right of Bank thereafter to demand strict compliance and performance. Any suspension or waiver of a
right must be in writing signed by an officer of Bank. 
 (d) Legal Effect. All references in the Loan Documents to
“Venture Banking Group, a division of Greater Bay Bank N.A.” shall mean and refer to Greater Bay Venture Banking, a division of Greater Bay Bank, N.A. Except as amended by this Amendment, the Loan Documents remain in full force and effect.
If any provision of this Amendment conflicts with applicable law, such provision shall be deemed severed from this Amendment, and the balance of this Amendment shall remain in full force and effect. Unless otherwise defined, all capitalized terms in
this Amendment shall have the meaning set forth in the Agreement. 
 (e) Counterparts. This Amendment may be executed
in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument. 
 IN
WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above written. 
  

			
	ANDA NETWORKS, INC.
		
	By	 	 
		
	Title	 	 
	
	GREATER BAY VENTURE BANKING, A DIVISION OF GREATER BAY BANK, N.A.
		
	By	 	 
		
	Title	 	 

  

 2 

 EXHIBIT E 
 COMPLIANCE CERTIFICATE 
 TO:           GREATER BAY VENTURE BANKING,
A DIVISION OF GREATER BAY BANK, N.A. 
 FROM:    ANDA NETWORKS, INC. 
 The undersigned authorized officer of ANDA NETWORKS, INC. hereby certifies that in accordance with the terms and conditions of the Loan and Security
Agreement between Borrower and Bank (the “Agreement”), (i) Borrower is in complete compliance for the period ending
                         with all required covenants except as noted below and (ii) all representations and
warranties of Borrower stated in the Agreement are true and correct in all material respects as of the date hereof. Attached herewith are the required documents supporting the above certification. The Officer further certifies that these are
prepared in accordance with Generally Accepted Accounting Principles (GAAP) and are consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The Officer expressly acknowledges that no borrowings
may be requested by Borrower at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that such compliance is determined not just at the date this certificate is delivered. 
 Please indicate compliance status by circling Yes/No under “Complies” column. 
  

									
	 Reporting Covenant
	  	 Required
	  	 	 	 	  	Complies
	Monthly financial statements	  	Monthly within 30 days	  		 	Yes	  	No
	Annual (CPA Audited)	  	FYE within 180 days	  		 	Yes	  	No
	10-Q, 10-K and 8-K	  	Within 5 days after filing with SEC	  		 	Yes	  	No
	Borrowing Base Certificate	  	Monthly within 20 days (if an Advance is outstanding)	  		 	Yes	  	No
	A/R & A/P Agings & Backlog report	  	Monthly within 20 days	  		 	Yes	  	No
	A/R Audit	  	Annually	  		 	Yes	  	No
					
	 Financial Covenant
	  	 Required
	  	Actual	 	 	  	Complies
	Maintain on a monthly basis (unless otherwise noted):	  		  		 		  	
	Minimum Liquidity Ratio 1	  	1.50:1.0	  	_____:1.0	 	Yes	  	No
	Profitability/Loss (Quarterly)	  	$ ___________2	  	$___________	 	Yes	  	No

  

	 1
	 “Liquidity Ratio” means, as of any date for which it is tested, the
ratio of (a) an amount equal to (i) unrestricted cash and cash equivalents maintained with Bank, plus (ii) net, billed accounts receivable of Borrower, excluding Accounts that the account debtor has failed to pay within ninety
(90) days of invoice date, to (b) the aggregate amount of all outstanding Obligations. 

  

	 2
	 For each fiscal quarter of the Borrower beginning with the fiscal quarter ending
on September 31, 2007, Borrower shall have achieved a minimum net profit of at least eighty percent (80%) of the projected net profit for such quarter as set forth in Borrower’s financial plan previously delivered to Bank and attached
hereto as Exhibit F. 

  

					
	Comments Regarding Exceptions: See Attached.	  	BANK USE ONLY
			
		  	Received by:	 	 
	Sincerely,	  		 	 AUTHORIZED SIGNER

		  	Date:	 	 
			
	 	  	Verified:	 	 
	SIGNATURE	  		 	 AUTHORIZED SIGNER

			
	 	  	Date:	 	 
	TITLE	  		 	
			
	 	  	Compliance Status	 	                 Yes
            No

	DATE	  		 	
		  		 	

  

 3 

 EXHIBIT F 
 BORROWER’S FINANCIAL PLAN DATED                 , 2007 
 (see attached) 
  

 4 

 CORPORATE RESOLUTIONS TO BORROW 
  

			
	Borrower:	  	ANDA NETWORKS, INC.

 I, the undersigned Secretary or Assistant Secretary of ANDA NETWORKS, INC. (the
“Corporation”), HEREBY CERTIFY that the Corporation is organized and existing under and by virtue of the laws of the State of Delaware. 
 I FURTHER CERTIFY that the Certificate of Incorporation and Bylaws previously delivered to Greater Bay Venture Banking, a division of Greater Bay Bank, N.A. (the “Bank”) remain in full force and effect and have not been amended,
restated or modified. 
 I FURTHER CERTIFY that at a meeting of the Directors of the Corporation duly called and held, at which a quorum was
present and voting (or by other duly authorized corporate action in lieu of a meeting), the following resolutions were adopted. 
 BE IT
RESOLVED, that any one (1) of the following named officers, employees, or agents of this Corporation, whose actual signatures are shown below: 
  

					
	 NAMES
	  	 POSITION
	  	 ACTUAL SIGNATURES

			
	 _____________________________________
	  	 ___________________________________
	  	 ___________________________________

			
	 _____________________________________
	  	 ___________________________________
	  	 ___________________________________

			
	 _____________________________________
	  	 ___________________________________
	  	 ___________________________________

			
	 _____________________________________
	  	 ___________________________________
	  	 ___________________________________

 acting for and on behalf of this Corporation and as its act and deed be, and they hereby are, authorized and
empowered: 
 Borrow Money. To borrow from time to time from Greater Bay Venture Banking, a division of Greater Bay Bank, N.A., on
such terms as may be agreed upon between the officers, employees, or agents and Bank, such sum or sums of money as in their judgment should be borrowed. 
 Execute Documents. To execute and deliver to Bank the Fifth Amendment to Loan and Security Agreement dated as of August 31, 2007, (the “Amendment”), and also to execute and deliver to Bank one or
more renewals, extensions, modifications, refinancings, consolidations, or substitutions for one or more of the notes, or any portion of the notes. 
 Grant Security. To grant a security interest to Bank in the Collateral described in the Loan Agreement, which security interest shall secure all of the Corporation’s Obligations, as described in the Loan Agreement. 

Negotiate Items. To draw, endorse, and discount with Bank all drafts, trade acceptances, promissory notes, or other evidences of
indebtedness payable to or belonging to the Corporation or in which the Corporation may have an interest, and either to receive cash for the same or to cause such proceeds to be credited to the account of the Corporation with Bank, or to cause such
other disposition of the proceeds derived therefrom as they may deem advisable. 
 Letters of Credit; Foreign Exchange. To execute
letters of credit applications, foreign exchange agreements and other related documents pertaining to Bank’s issuance of letters of credit and foreign exchange contracts. 
 Further Acts. In the case of lines of credit, to designate additional or alternate individuals as being authorized to request advances
thereunder, and in all cases, to do and perform such other acts and things, to pay any and all fees and costs, and to execute 

  

 1 

 and deliver such other documents and agreements as they may in their discretion deem reasonably necessary or proper in
order to carry into effect the provisions of these Resolutions. 
 BE IT FURTHER RESOLVED, that any and all acts authorized pursuant to these
resolutions and performed prior to the passage of these resolutions are hereby ratified and approved, that these Resolutions shall remain in full force and effect and Bank may rely on these Resolutions until written notice of their revocation shall
have been delivered to and received by Bank. Any such notice shall not affect any of the Corporation’s agreements or commitments in effect at the time notice is given. 
 I FURTHER CERTIFY that the officers, employees, and agents named above are duly elected, appointed, or employed by or for the Corporation, as the case
may be, and occupy the positions set forth opposite their respective names; that the foregoing Resolutions now stand of record on the books of the Corporation; and that the Resolutions are in full force and effect and have not been modified or
revoked in any manner whatsoever. 
 IN WITNESS WHEREOF, I have hereunto set my hand on August 31, 2007 and attest that the signatures
set opposite the names listed above are their genuine signatures. 
  

			
	CERTIFIED TO AND ATTESTED BY:
		
	X	 	 
		 	

  

 2

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