Document:

Term Loan and Security Agreement

 Exhibit 10.5 
 TERM LOAN AND SECURITY AGREEMENT 
 This TERM LOAN
AND SECURITY AGREEMENT (this “Agreement”) dated as of November 30, 2007 (the “Effective Date”) among (a) SILICON VALLEY BANK, a California corporation with a loan production office located at 3979
Freedom Circle, Suite 600, Santa Clara, California 95054 (“SVB”), as agent (the “Agent”) and the Lenders listed on Schedule 1.1 and otherwise party hereto, including without limitation, SVB and GOLD HILL VENTURE
LENDING 03, L.P. (“Gold Hill”), and (b) MERU NETWORKS, INC., a Delaware corporation (“Borrower”), provides the terms on which Lenders shall lend to Borrower and Borrower shall repay Lenders. The
parties agree as follows: 
 1. ACCOUNTING AND OTHER TERMS 
 Accounting terms not defined in this Agreement shall be construed following GAAP. Calculations and determinations must be made following
GAAP, except as otherwise provided herein. Capitalized terms not otherwise defined in this Agreement shall have the meanings set forth in Section 13. All other terms contained in this Agreement, unless otherwise indicated, shall have the
meaning provided by the Code to the extent such terms are defined therein. 
 2. LOAN AND TERMS OF PAYMENT 
 2.1 Promise to Pay. Borrower hereby unconditionally promises to pay Lenders the outstanding principal amount of all Credit Extensions
and accrued and unpaid interest thereon as and when due in accordance with this Agreement. 
 2.1.1 Term Loan Facility. 

 (a) Availability. Subject to the terms and conditions of this Agreement, on, or within ten (10) days after, the
Effective Date, Lenders agree, severally and not jointly, to make one (1) Term Loan (the “Initial Term Loan”) available to Borrower in an amount of at least Five Million Dollars ($5,000,000.00), according to each Lender’s
pro-rata share of the Term Loan based upon the respective Commitment Percentage of each Lender. Thereafter, during the Draw Period, Lenders agree, severally and not jointly, to make additional Term Loans (the “Additional Term
Loans”) available to Borrower in an amount up to Fifteen Million Dollars ($15,000,000.00) less the amount of the Initial Term Loan, according to each Lender’s pro rata share of the Term Loan based upon the respective Commitment
Percentage of each Lender. For purposes of this section, the minimum amount of each Term Loan is One Million Dollars ($1,000,000.00). After repayment, no Term Loan may be re-borrowed. 
 (b) Interest Payments. Commencing on the first Payment Date of the month following the month in which each Funding Date occurs (or
commencing on the Funding Date if the Funding Date is the first calendar day of the month), Borrower shall make monthly payments of interest at the rate set forth in Section 2.2(a). 
 (c) Repayment. Commencing on the Amortization Date, and continuing on the Payment Date of each month thereafter, for each Term Loan,
Borrower shall make consecutive equal monthly payments of principal and interest, in arrears, as calculated by the Agent based upon: (1) the amount of the Term Loan multiplied by each Lender’s Commitment Percentage, (2) the effective
rate of interest, as determined in Section 2.2(a), and (3) a repayment schedule equal to thirty-six (36) months (the “Repayment Period”). All unpaid principal and accrued interest with respect to each Term Loan is due
and payable in full on the Term Loan Maturity Date with respect to such Term Loan. Payments received after 12:00 noon Eastern time are considered received at the opening of business on the next Business Day. A Term Loan may only be prepaid in
accordance with Sections 2.1.1(d) and 2.1.1(e). 
 (d) Mandatory Prepayment Upon an Acceleration. If the Term Loans are
accelerated following the occurrence of an Event of Default or otherwise, Borrower shall immediately pay

 
to Lenders an amount equal to the sum of: (i) all outstanding principal plus accrued and unpaid interest, (ii) the Prepayment Fee, (iii) the Final Payment, plus (iv) all other
sums, if any, that shall have become due and payable, including interest at the Default Rate with respect to any past due amounts. 
 (e) Permitted Prepayment of Loans. Borrower shall have the option to prepay all, but not less than all, of the Term Loans advanced by Lenders under this Agreement, provided Borrower (i) provides written notice to Agent of its
election to prepay the Term Loans at least thirty (30) days prior to such prepayment, and (ii) pays, on the date of such prepayment (A) all outstanding principal plus accrued and unpaid interest, (B) the Prepayment Fee,
(C) the Final Payment for each Term Loan, plus (D) all other sums, if any, that shall have become due and payable, including interest at the Default Rate with respect to any past due amounts. 
 2.2 Payment of Interest on the Credit Extensions. 
 (a) Interest Rate. Subject to Section 2.2(b), during the Interest Only Period, the principal amount outstanding for each Term Loan shall accrue interest at the floating per annum rate equal to
the greater of (i) three percentage points (3.0%) above the Prime Rate, and (ii) ten and three quarters of one percentage points (10.75%), which interest shall be payable monthly. Subject to Section 2.2(b), during the Repayment
Period, the principal amount outstanding for each Term Loan shall accrue interest at a fixed per annum rate equal to the greater of (i) three percentage points (3.0%) above the Prime Rate, and (ii) ten and three quarters of one
percentage points (10.75%), which shall be determined by Agent as of the Amortization Date. 
 (b) Default Rate.
Immediately upon the occurrence and during the continuance of an Event of Default, Obligations shall bear interest at a rate per annum which is five (5) percentage points above the rate effective immediately before the Event of Default (the
“Default Rate”). Payment or acceptance of the increased interest rate provided in this Section 2.2(b) is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or
limit any rights or remedies of Lenders and/or Agent. 
 (c) 360-Day Year. Interest shall be computed on the basis of a
360-day year for the actual number of days elapsed. 
 (d) Debit of Accounts. Agent may debit any of Borrower’s
deposit accounts, including the Designated Deposit Account, for principal and interest payments or any other amounts Borrower owes Lenders when due. These debits shall not constitute a set-off. 
 (e) Payments. Unless otherwise provided, interest is payable monthly on the Payment Date of each month. Payments of principal and/or
interest received after 12:00 noon Eastern time are considered received at the opening of business on the next Business Day. When a payment is due on a day that is not a Business Day, the payment is due the next Business Day and additional fees or
interest, as applicable, shall continue to accrue. 
 2.3 Fees. Borrower shall pay to Agent: 
 (a) Commitment Fee. A fully earned, non-refundable commitment fee of Seventy-Five Thousand Dollars ($75,000.00), on the Effective
Date; 
 (b) Prepayment Fee. The Prepayment Fee, when due hereunder. Notwithstanding the foregoing, the Prepayment Fee
shall not be due and payable if (A) the prepayment is made concurrently with or following the consummation of a Liquidity Event (as defined below), (B) in connection with such Liquidity Event, the Warrant Condition is met; 
 (c) Final Payment. The Final Payment, when due hereunder; 

 (d) Lenders’ Expenses. All Lenders’ Expenses (including reasonable
attorneys’ fees and expenses, plus expenses, for documentation and negotiation of this Agreement) incurred through and after the Effective Date, when due; and 
 (e) Prepayment Fee Refund. In the event the Lenders collect the Prepayment Fee from the Borrower in connection with a Liquidity Event and it is subsequently determined that the Warrant Condition
was satisfied, the Lenders will promptly refund the Prepayment Fee to the Borrower. 
 2.4 Additional Costs. If any new
law or regulation increases Agent’s and or Lender’s costs or reduces its income for any loan, Borrower shall pay the increase in cost or reduction in income or additional expense; provided, however, that Borrower shall not be liable for
any amount attributable to any period before sixty (60) days prior to the date Agent notifies Borrower of such increased costs. Agent and/or Lenders agree that they shall allocate any increased costs among their customers similarly affected in
good faith and in a manner consistent with Agent’s and/or Lender’s customary practice. Notwithstanding any term or condition contained in this Agreement or the other Loan Documents to the contrary, if Borrower prepays the Term Loans
pursuant to Section 2.1.1(e) within one hundred eighty (180) days after Agent or Lender requires Borrower to pay any amounts under this Section 2.4, the amount of the Prepayment Fee shall be reduced by the amount of any such payments
under this Section. 
 3. CONDITIONS OF LOANS 
 3.1 Conditions Precedent to Initial Credit Extension. Lenders’ obligation to make the initial Credit Extension is subject to the condition precedent that Agent shall have received, in form and
substance satisfactory to Agent, such documents, and completion of such other matters, as Agent may reasonably deem necessary or appropriate, including, without limitation: 
 (a) Duly executed original signatures to the Loan Documents to which it is a party; 
 (b) Duly executed original signatures to the Control Agreement[s]; 
 (c) Duly executed signatures to the VCOC Letter; 
 (d) Duly executed signatures Right to Invest Letter; 
 (e) Borrower shall have
delivered its Operating Documents and a good standing certificate of Borrower certified by the Secretary of State of the State of Delaware as of a date no earlier than thirty (30) days prior to the Effective Date; 
 (f) Duly executed original signatures to the completed Borrowing Resolutions for Borrower; 
 (g) Certified copies, dated as of a recent date, of financing statement searches, as Agent shall request, accompanied by written evidence
(including any UCC termination statements) that the Liens indicated in any such financing statements either constitute Permitted Liens or have been or, in connection with the initial Credit Extension, will be terminated or released. 
 (h) Borrower shall have delivered a landlord’s consent executed in favor of Agent; 
 (i) Borrower shall have delivered a legal opinion of Borrower’s counsel dated as of the Effective Date together with the duly executed
original signatures thereto; 

 (j) Borrower shall have delivered a copy of its Registration Rights Agreement and/or
Investors’ Rights Agreement, as applicable, and any amendments thereto; 
 (k) Borrower shall have delivered evidence
satisfactory to Agent that the insurance policies required by Section 6.5 hereof are in full force and effect, together with appropriate evidence showing loss payable and/or additional insured clauses or endorsements in favor of Lenders; and

 (l) Borrower shall have paid the fees and Lenders’ Expenses then due as specified in Section 2.3 hereof.

 3.2 Conditions Precedent to all Credit Extensions. Each Lender’s obligation to make each Credit Extension,
including the initial Credit Extension, is subject to the following: 
 (a) except as otherwise provided in Section 3.4,
timely receipt of an executed Payment/Advance Form; 
 (b) the representations and warranties in Section 5 shall be true
in all material respects on the date of the Payment/Advance Form and on the Funding Date of each Credit Extension; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are
qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, and no
Default or Event of Default shall have occurred and be continuing or result from the Credit Extension. Each Credit Extension is Borrower’s representation and warranty on that date that the representations and warranties in Section 5 remain
true in all material respects; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that
those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date; and 
 (c) there has not been a Material Adverse Change. 
 3.3 Covenant to
Deliver. Borrower agrees to deliver to Agent each item required to be delivered to Agent under this Agreement as a condition to any Credit Extension. Borrower expressly agrees that the extension of a Credit Extension prior to the receipt by
Agent of any such item shall not constitute a waiver by Agent of Borrower’s obligation to deliver such item, and any such extension in the absence of a required item shall be in Agent’s sole discretion. 
 3.4 Procedures for Borrowing. Subject to the prior satisfaction of all other applicable conditions to the making of a Term Loan set
forth in this Agreement, to obtain a Term Loan, Borrower must notify Agent by facsimile or telephone by 12:00 p.m. Eastern time ten (10) Business Days prior to the date the Term Loan is to be made. If such notification is by telephone, Borrower
must promptly confirm the notification by delivering to Agent a completed Payment/Advance Form. On the Funding Date, each Lender shall credit and/or transfer (as applicable) to Borrower’s deposit account, an amount equal to its Commitment
Percentage multiplied by the amount of the Term Loan. Each Lender may make Term Loans under this Agreement based on instructions from a Responsible Officer or his or her designee or without instructions if the Term Loans are necessary to meet
Obligations which have become due. Each Lender may rely on any telephone notice given by a person whom such Lender believes is a Responsible Officer or designee. 
 4. CREATION OF SECURITY INTEREST 
 4.1 Grant of Security
Interest. Borrower hereby grants to Agent, for the ratable benefit of Lenders, and to each Lender, to secure the payment and performance in full of all of the Obligations, a continuing security interest in, and pledges to Agent, for the ratable
benefit of Lenders, and to each Lender, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and

 
products thereof. Borrower represents, warrants, and covenants that the security interest granted herein is and shall at all times continue to be a first priority perfected security interest in
the Collateral (subject only to Permitted Liens that may have superior priority to Agent and/or Lenders’ Lien under this Agreement). If Borrower shall acquire a commercial tort claim, Borrower shall promptly notify Agent in a writing signed by
Borrower of the general details thereof and grant to Agent, for the ratable benefit of Lenders, and to each Lender, in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to
be in form and substance reasonably satisfactory to Agent. 
 If this Agreement is terminated, Agent’s and Lenders’
Lien in the Collateral shall continue until the Obligations (other than inchoate indemnity obligations) are repaid in full in cash. Upon payment in full in cash of the Obligations and at such time as Agent’s and Lenders’ obligation to make
Credit Extensions has terminated, Agent shall, at Borrower’s sole cost and expense, release its Liens in the Collateral and all rights therein shall revert to Borrower. 
 4.2 Authorization to File Financing Statements. Borrower hereby authorizes Agent to file financing statements, without notice to
Borrower, with all appropriate jurisdictions to perfect or protect Agent’s and Lenders’ interest or rights hereunder, which financing statements may indicate the Collateral as “all assets of the Debtor” or words of similar
effect, or as being of an equal or lesser scope, or with greater detail, all in Agent’s discretion, and may include a notice that any disposition of the Collateral, by either Borrower or any other Person, shall be deemed to violate the rights
of Lenders under the Code. 
 5. REPRESENTATIONS AND WARRANTIES 
 Borrower represents and warrants as follows: 
 5.1 Due Organization and Authorization. Borrower and each of its Subsidiaries are duly existing and in good standing as a Registered Organizations in their respective jurisdictions of formation and
are qualified and licensed to do business and are in good standing in any jurisdiction in which the conduct of their respective business or ownership of property requires that they be qualified except where the failure to do so could not reasonably
be expected to have a material adverse effect on Borrower’s business. Borrower has delivered to Agent a completed Perfection Certificate. Borrower represents and warrants to Agent and each Lender that: (a) Borrower’s exact legal name
is that indicated on the Perfection Certificate and on the signature page hereof; (b) Borrower is an organization of the type and is organized in the jurisdiction set forth in the Perfection Certificate; (c) the Perfection Certificate
accurately sets forth Borrower’s organizational identification number or accurately states that Borrower has none; (d) the Perfection Certificate accurately sets forth Borrower’s place of business, or, if more than one, its chief
executive office as well as Borrower’s mailing address (if different than its chief executive office); Borrower (and each of its predecessors) has not, in the past five (5) years, changed its jurisdiction of formation, organizational
structure or type, or any organizational number assigned by its jurisdiction; and (f) all other information set forth on the Perfection Certificate pertaining to Borrower and each of its Subsidiaries is accurate and complete. If Borrower is not
now a Registered Organization but later becomes one, Borrower shall promptly notify Agent of such occurrence and provide Agent with Borrower’s organizational identification number. 
 The execution, delivery and performance by Borrower of the Loan Documents to which it is a party have been duly authorized, and do not
(i) conflict with any of Borrower’s organizational documents, (ii) contravene, conflict with, constitute a default under or violate any material Requirement of Law, (iii) contravene, conflict or violate any applicable order,
writ, judgment, injunction, decree, determination or award of any Governmental Authority by which Borrower or any its Subsidiaries or any of their property or assets may be bound or affected, (iv) require any action by, filing, registration, or
qualification with, or approval from any Governmental Authority (except such approvals which have already been obtained and are in full force and effect), or (v) constitute an event of default under any material agreement by which Borrower is
bound. Borrower is not in default under any agreement to which it is a party or by which it is bound in which the default could have a material adverse effect on Borrower’s business. 

 5.2 Collateral. Borrower has good title to, has rights in, and the power to transfer
each item of the Collateral upon which it purports to grant a Lien hereunder, free and clear of any and all Liens except Permitted Liens. Borrower has no deposit accounts other than the deposit accounts with Agent, the deposit accounts, if any,
described in the Perfection Certificate delivered to Agent and Lenders in connection herewith, or of which Borrower has given Agent notice and taken such actions as are necessary to give Lenders a perfected security interest therein. 
 The Collateral is not in the possession of any third party bailee (such as a warehouse), except for Inventory in the United States, held by
Extron, 47550 Kato Rd., Fremont, CA 94538 (the “U.S. Fulfillment Center”), and Inventory outside the United States held by a foreign fulfillment center, which Borrower shall identify by written notice to Agent within 30 days after
the date it is selected by Borrower (the “Non-U.S. Fulfillment Center”). Within 60 days after the date hereof, Borrower shall cause the U.S. Fulfillment Center and the Non-U.S. Fulfillment Center to execute and deliver a Bailee
Agreement in the form previously provided by Hank to Borrower. 
 Except as hereafter disclosed to Agent in writing by Borrower,
and other than Collateral which by its very nature is intended to be used at places other than the Borrowers place of business (such as manufacturing test equipment, laptop computers, marketing materials, cell phones, and the like), none of the
components of the Collateral shall be maintained at locations other than as provided in the Perfection Certificate. 
 In the
event that Borrower, after the date hereof, intends to store or otherwise deliver any portion of the Collateral to a bailee, then Borrower will first receive the written consent of Agent and such bailee must acknowledge in writing that the bailee is
holding such Collateral for the benefit of Lenders, provided that such consent and acknowledgement shall not be required with respect to (i) Collateral having an aggregate value, for all locations in the United States, not exceeding the
Threshold Amount, or (ii) Collateral having an aggregate value, for all locations outside the United States, not exceeding $500,000. 
 All Inventory is in all material respects of good and marketable quality, free from material defects. 
 Borrower is the sole owner of its Intellectual Property, except for non-exclusive licenses granted to its customers in the ordinary course of business, and except for licenses granted to the Borrower by
third parties. Each Patent is valid and enforceable and no part of the Intellectual Property has been judged invalid or unenforceable, in whole or in part, and to the best of Borrower’s knowledge, no claim has been made that any part of the
Intellectual Property violates the rights of any third party except to the extent such claim is not reasonably expected to cause a Material Adverse Change. 
 Except as noted on the Perfection Certificate, Borrower is not a party to, nor is bound by, any license or other agreement with respect to which Borrower is licensee that prohibits or otherwise restricts
Borrower from granting a security interest in Borrower’s interest in such license or agreement or any other property. Borrower shall provide written notice to Agent within thirty (30) days of entering or becoming bound by any such license
or agreement which is reasonably likely to have a material impact on Borrower’s business or financial condition (other than over-the-counter software that is commercially available to the public). Borrower shall take such steps as Agent
requests to obtain the consent of, or waiver by, any person whose consent or waiver is necessary for all such licenses or contract rights to be deemed “Collateral” and for Agent and Lenders to have a security interest in it that might
otherwise be restricted or prohibited by law or by the terms of any such license or agreement (such consent or authorization may include a licensor’s agreement to a contingent assignment of the license to Agent if Agent determines that is
necessary in its good faith judgment), whether now existing or entered into in the future. 
 5.3 Litigation. Except for
the Previously Disclosed Matter, there are no actions or proceedings pending or, to the knowledge of Borrower’s Responsible Officers or legal counsel, threatened by or against Borrower or any Subsidiary in which an adverse decision could
reasonably be expected to cause a Material Adverse Change. 
  

 5.4 No Material Deterioration in Financial Statements. All consolidated financial
statements for Borrower and any of its Subsidiaries delivered to Agent fairly present in all material respects Borrower’s consolidated financial condition and Borrower’s consolidated results of’ operations (it being recognized and
agreed that, as to such financial statements which are unaudited, certain adjustments may in the future be necessary to bring the financials into conformity with generally acceptable accounting principles). There has not been any material
deterioration in Borrower’s consolidated financial condition since the date of the most recent financial statements submitted to Agent. 
 5.5 Solvency. Borrower is able to pay its debts (including trade debts) as they mature. 
 5.6 Regulatory Compliance. Borrower is not an “investment company” or a company “controlled” by an “investment company” under the Investment Company Act of 1940.
Borrower is not engaged as one of its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of Governors). Borrower has complied in all material respects with the Federal Fair Labor
Standards Act. Borrower has not violated any laws, ordinances or rules, the violation of which could reasonably be expected to cause a Material Adverse Change. None of Borrower’s or any Subsidiary’s properties or assets has been used by
Borrower or any Subsidiary or, to the best of Borrower’s knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than legally. Borrower and each Subsidiary have timely filed all
required tax returns and paid, or made adequate provision to pay, all material taxes, except those being contested in good faith with adequate reserves under GAAP. Borrower and each of its Subsidiaries have obtained all consents, approvals and
authorizations of, made all declarations or filings with, and given all notices to, all Government Authorities that are necessary to continue their respective businesses as currently conducted. 
 5.7 Subsidiaries; Investments. Borrower does not have any Subsidiaries, other than Meru Networks India Pvt. Ltd., an Indian company,
Meru Networks International, Inc., a Delaware corporation, and Meru Networks Japan KK, a Japanese company and other Subsidiaries organized with the prior written consent of Agent, and does not own any stock, partnership interest or other equity
securities in any other Person, except for Permitted Investments. 
 5.8 Tax Returns and Payments; Pension Contributions.
Borrower has timely filed all required tax returns and reports, and Borrower and its Subsidiaries have timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower. Borrower may defer payment of
any contested taxes, provided that Borrower (a) in good faith contests its obligation to pay the taxes by appropriate proceedings promptly and diligently instituted and conducted, (b) notifies Agent in writing of the commencement of, and
any material development in, the proceedings, (c) posts bonds or takes any other steps required to prevent the governmental authority levying such contested taxes from obtaining a Lien upon any of the Collateral that is other than a
“Permitted Lien”. Borrower is unaware of any claims or adjustments proposed for any of Borrower’s prior tax years which could result in additional taxes becoming due and payable by Borrower. Borrower has paid all amounts necessary to
fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, and Borrower has not withdrawn from participation in, and has not permitted partial or complete termination of, or permitted the occurrence of
any other event with respect to, any such plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency.

 5.9 Use of Proceeds. Borrower shall use the proceeds of the Credit Extensions solely to fund its general business
requirements and not for personal, family, household or agricultural purposes. 
 5.10 Full Disclosure. No written
representation, warranty or other statement of Borrower in any certificate or written statement given to Agent or any Lender, as of the date such representations, warranties, or other statements were made, taken together with all such written
certificates and written statements given to Agent or any Lender, contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained in the certificates or statements not misleading (it
being recognized by Agent that the projections and forecasts provided by Borrower in good faith and based

 
upon reasonable assumptions are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted
results). 
 6. AFFIRMATIVE COVENANTS 
 Borrower shall do all of the following: 
 6.1 Government Compliance.
Maintain its and all its Subsidiaries’ legal existence and good standing in their respective jurisdictions of formation and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to have a
material adverse effect on Borrower’s business or operations. Borrower shall comply, and have each Subsidiary comply, with all laws, ordinances and regulations to which it is subject, the noncompliance with which could have a material adverse
effect on Borrower’s business or operations or would reasonably be expected to cause a Material Adverse Change. 
 6.2
Financial Statements, Reports, Certificates. 
 (a) Deliver to Agent: (i) as soon as available, but no later than
thirty (30) days after the last day of each month, a company prepared consolidated balance sheet and income statement (prepared under GAAP except as provided in the footnotes to such consolidated balance sheet and income statement) covering
Borrower’s consolidated operations during the period certified by a Responsible Officer and in a form acceptable to Agent; (ii) as soon as available, but no later than one hundred eighty (180) days after the last day of
Borrower’s fiscal year, audited consolidated financial statements prepared under GAAP, consistently applied, together with an unqualified opinion on the financial statements from an independent certified public accounting firm acceptable to
Agent in its reasonable discretion; (iii) a prompt report of any legal actions pending or threatened against Borrower or any of its Subsidiaries that could reasonably be expected to result in damages or costs to Borrower or any of its
Subsidiaries in excess of the Threshold Amount; (iv) annually, thirty (30) days prior to Borrower’s fiscal year end, Board approved audited financial projections for the subsequent fiscal year commensurate with those provided to
venture capital investors and any material changes thereto; and (v) budgets, sales projections, operating plans and other financial information reasonably requested by Agent. 
 (b) Within thirty (30) days after the last day of each month, deliver to Agent with the monthly financial statements, a duly completed
Compliance Certificate signed by a Responsible Officer. 
 6.3 Inventory; Returns. Keep all Inventory in good and
marketable condition, free from material defects. Returns and allowances between Borrower and its Account Debtors shall follow Borrower’s customary practices as they exist at the Effective Date. Borrower must promptly notify Agent of all
returns, recoveries, disputes and claims that involve more than the Threshold Amount. 
 6.4 Taxes; Pensions. Make, and
cause each of its Subsidiaries to make, timely payment of all foreign, federal, state, and local taxes or assessments (other than taxes and assessments which Borrower is contesting pursuant to the terms of Section 5.8 hereof) and shall deliver
to Agent, on demand, appropriate certificates attesting to such payments, and pay all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms. 
 6.5 Insurance. Borrower shall at all times insure all of the tangible personal property Collateral and catty such other business
insurance, with insurers reasonably acceptable to Agent, in such form and amounts as Agent may reasonably require and that are customary and in accordance with standard practices for Borrowers industry and locations, and Borrower shall provide
evidence of such insurance to Agent. All such insurance policies shall name Agent as an additional loss payee, and shall contain a lenders loss payee endorsement in form reasonably acceptable to Agent. Upon receipt of the proceeds of any such
insurance insuring tangible personal property, Agent shall apply such proceeds in reduction of the Obligations as Agent shall determine in its good faith business judgment, except that, provided no Default 
  

 
or Event of Default has occurred and is continuing. Agent shall release to Borrower insurance proceeds with respect to Equipment totaling less than $200,000, which shall be utilized by Borrower
for the replacement of the Equipment with respect to which the insurance proceeds were paid. Agent may require reasonable assurance that the insurance proceeds so released will be so used. If Borrower fails to provide or pay for any insurance, Agent
may, but is not obligated to, obtain the same at Borrower’s expense. Borrower shall promptly deliver to Agent copies of all material reports made to insurance companies: Notwithstanding the foregoing or anything to the contrary contained
herein, Borrower may, so long as no Event of Default has occurred and is continuing, settle any claims under any business interruption insurance (except to the extent that the same covers damages to tangible personal property) and receive (without
any obligation to repay the Credit Extensions) proceeds thereof, so long as such proceeds are deposited in an investments account for which Agent has a control agreement as required hereunder. 
 6.6 Accounts. 
 (a) Maintain its and its Subsidiaries’ primary depository and operating accounts and securities and investment accounts with Agent. 
 (b) Borrower shall obtain Agent’s prior written consent to open any deposit or securities account opened by Borrower with any institution other than Agent. In addition, for each such account that
Borrower or Guarantor at any time opens or maintains, Borrower shall, at Agent’s request and option, pursuant to an agreement in form and substance acceptable to Agent, cause the depository bank or securities intermediary to agree that such
account is the collateral of Agent and Lenders pursuant to the terms hereunder. The provisions of the previous sentence shall not apply to deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to
or for the benefit of Borrower’s employees and identified to Agent by Borrower as such. 
 6.7 Intellectual Property
Rights. Borrower shall: (a) take reasonable steps to protect, defend and maintain the validity and enforceability of its intellectual property (b) promptly advise Agent in writing of material infringements of its intellectual property;
and (c) not allow any intellectual property material to Borrower’s business to be abandoned forfeited or dedicated to the public without Agent’s written consent, which will not be unreasonably withheld. If Borrower decides to register
any copyrights or mask works in the United States Copyright Office, Borrower shall: (x) provide Agent with written notice of such registration together with a copy of the application it filed with the United States Copyright Office (excluding
exhibits thereto) within 30 days after the filing of the same, on the Borrower’s monthly Compliance Certificate; (y) execute an intellectual property security agreement or such other documents as Agent may reasonably request to maintain
the perfection arid priority of Lenders’ security interest in the copyrights or mask works intended to be registered with the United States Copyright Office; and (a) record such intellectual property security agreement with the United
States Copyright Office contemporaneously with filing the copyright or mask work application(s) with the United States Copyright Office. Borrower shall promptly provide to Agent a copy of the application(s) filed with the United States Copyright
Office together with evidence of the recording of the intellectual property security agreement necessary for Lenders to maintain the perfection and priority of their security interest in such copyrights or mask works, Borrower shall provide written
notice to Agent of any application filed by Borrower in the United States Patent and Trademark Office for a patent or to register a trademark or service mark within 30 days after any such filing. 
 6.8 Litigation Cooperation. From the date hereof and continuing through the termination of this Agreement, make available to Agent,
without expense to Agent, Borrower and its officers, employees and agents and Borrower’s books and records, to the extent that Agent may deem them reasonably necessary to prosecute or defend any third-party suit or proceeding instituted by or
against Agent and/or any Lender with respect to any Collateral or relating to Borrower. 
 6.9 Further Assurances.
Execute any further instruments and take further action as Agent reasonably requests to perfect or continue Agent’s and Lenders’ security interest in the Collateral or to effect the purposes of this Agreement. 
  

 7. NEGATIVE COVENANTS 
 Borrower shall not do any of the following without Agent’s prior written consent: 
 7.1 Dispositions. Convey, sell, lease, transfer, assign, or otherwise dispose of (collectively, “Transfer”), or permit any
of its Subsidiaries to Transfer, all or any part of its business or property, except for Transfers (a) of Inventory in the ordinary course of business; (b) of worn-out or obsolete Equipment; (c) in connection with Permitted Liens and
Permitted Investments; and (d) Transfers consisting of non-exclusive licenses in the ordinary course of business. 
 7.2
Changes in Business, Management, Ownership, or Business Locations. (a) Engage in or permit any of its Subsidiaries to engage in any business other than the businesses currently engaged in by Borrower and such Subsidiary, as applicable, or
reasonably related thereto; (b) liquidate or dissolve: or (c) permit a change in the record or beneficial ownership of an aggregate of more than 50% of the outstanding shares of stock of Borrower, in one or more transactions, compared to
the ownership of outstanding shares of stock of Borrower in effect on the date hereof (other than by the issuance of Borrower’s equity securities (i) in a public offering or (ii) to venture capital investors so long as Borrower
identifies to Agent the venture capital investors prior to the closing of the transaction, or (iii) as a result of the issuance or exercise of stock options or other rights to acquire equip’ securities of the Company issued for equity
incentive compensation purposes to officers, directors or employees of the Borrower). Borrower shall not, without at least ten (10) Business Days prior written notice to Agent: (1) add any new offices or business locations, including
warehouses (unless such new offices or business locations contain assets and property of Borrower with an aggregate value of less than $200,000), (2) change its jurisdiction of organization, (3) change its organizational structure or type,
(4) change its legal name, or (5) change any organizational number assigned by its jurisdiction of organization. In the event Borrower requests the Lenders’ consent to a transaction which is not permitted by Section 7.2(c) above,
and Lenders, after a reasonable amount of time to review the same, decline to consent, then, in connection with such transaction, Borrower may terminate this Agreement without payment of the Prepayment Fee. 
 7.3 Mergers or Acquisitions. Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other Person,
or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person, except for (i) a merger of a Subsidiary of Borrower into another Subsidiary of Borrower or into Borrower, and
(ii) a merger where: (a) the total consideration, including cash and the value of any non-cash consideration, for all such transactions does not in the aggregate exceed $1,000,000 in any fiscal year of Borrower; (b) no Event of
Default has occurred and is continuing or would exist after giving effect to the merger or the transaction related to the merger; (c) there is no materials change to Borrower’s business; (d) Borrower is the surviving legal entity in
the merger or if Borrower is not the surviving legal entity, (i) the beneficial owners of at least 50% or more the combined voting power of the surviving entity were beneficial owners of Borrower immediately prior to the transaction, or
(ii) at least a majority of the Board of Directors of the surviving entity were directors of the Borrower immediately prior to the transaction or are by rights able to be appointed as directors by persons who were beneficial owners of the
Borrower immediately prior to the transaction, and (iii) such surviving legal entity will be bound to, in all respects and with the same force and effect, this Agreement, each Loan Document and the Obligations, and (iv) such surviving
legal entity takes all actions to effect the requirements of the preceding clause (iii); and (e) the merger does not result in an increase in the credit risk to Lenders, in its reasonable discretion (and in determining whether the proposed
merger would result in an increased credit risk, Lenders may consider, among other things, changes in Borrower’s management team, employee base, access to equity markets, venture capital supports, financial position and/or disposition of
intellectual property rights which may reasonably be anticipated as a results of the transaction). In the event Borrower requests Lenders’ consent to a merger, consolidation or acquisition which is not permitted by this Section 7.3 and
Lenders, after a reasonable amount of time to review the same, declines to consent, then, in connection with such merger, consolidation or acquisition, Borrower may terminate this Agreement without payment of the Prepayment Fee. 
 7.4 Indebtedness. Create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted
Indebtedness. 
  

 7.5 Encumbrance. Create, incur, or allow any Lien on any of its property, or assign
or convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, or permit any Collateral not to be subject to the first priority security interest granted herein, or
enter into any agreement, document, instrument or other arrangement (except with or in favor of Agent and Lenders) with any Person which directly or indirectly prohibits or has the effect of prohibiting Borrower or any Subsidiary from assigning,
mortgaging, pledging, granting a security interest in or upon, or encumbering any of Borrower’s or any Subsidiary’s intellectual property, except as is otherwise permitted in Section 7.1 hereof and the definition of “Permitted
Liens” herein. 
 7.6 Maintenance of Collateral Accounts. Maintain any Collateral Account except pursuant to the
terms of Section 6.6(b) hereof. 
 7.7 Distributions; Investments. (a) Directly or indirectly acquire or own
any Person or make any Investment other than Permitted Investments, or permit any of its Subsidiaries to do so; or (b) pay any dividends or make any distribution or payment or redeem, retire or purchase any capital stock, provided that
(i) Borrower may convert any of its convertible securities into other securities pursuant to the terms of such convertible securities or otherwise in exchange thereof, (ii) Borrower may pay dividends solely in common stock; and
(iii) Borrower may repurchase the stock of former officers, directors, employees or consultants pursuant to stock repurchase agreements so long as no Default or Event of Default has occurred and is continuing at the time of such repurchase and
would not exist after giving effect to such repurchase, provided such repurchase does not exceed in the aggregate $200,000 per fiscal year. 
 7.8 Transactions with Affiliates. Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower, except for transactions that are in the ordinary
course of Borrower’s business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm’s length transaction with a non-affiliated Person. 
 7.9 Subordinated Debt. (a) Make or permit any payment on any Subordinated Debt, except under the terms of the subordination,
intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any document relating to the Subordinated Debt which would increase the amount thereof or adversely affect the subordination
thereof to Obligations owed to Agent and/or Lenders. 
 7.10 Compliance. Become an “investment company” or a
company controlled by an “investment company”, under the Investment Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the
Board of Governors of the Federal Reserve System), or use the proceeds of any Credit Extension for that purpose; fail to meet the minimum funding requirements of ERISA or permit a Reportable Event or Prohibited Transaction, each as defined in ERISA,
to occur; fail to comply with the Federal Fair Labor Standards Act or violate any other law or regulation, if the violation could reasonably be expected to have a material adverse effect on Borrower’s business, or permit any of its Subsidiaries
to do so; withdraw or permit any Subsidiary to withdraw from participation in, permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation plan
which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 
 8. EVENTS OF DEFAULT 
 Any one of the following shall constitute an event of default (an “Event of Default”) under this Agreement: 
 8.1 Payment Default. Borrower fails to (a) make any payment of principal or interest on any Credit Extension on its due date, or (b) pay any other Obligations within five (5) Business Days after such Obligations are
due and payable (which five (5) Business Day grace period will not apply to payments

 
due on the Term Loan Maturity Date). During the cure period, the failure to cure the payment default is not an Event of Default (but no Credit Extension will be made during the cure period);

 8.2 Covenant Default. 
 (a) Borrower fails or neglects to perform any obligation in Sections 6.2 or 6.6, or violates any covenant in Section 7; or 
 (b) Borrower fails or neglects to perform, keep, or observe any other term, provision, condition, covenant or agreement contained in this
Agreement, any Loan Documents, and as to any default (other than those specified in this Section 8) under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the default within ten (10) days
after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or cannot after diligent attempts by Borrower be cured within such ten (10) day period, and such default is
likely to be cured within a reasonable time, then Borrower shall have an additional period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, and within such reasonable time period the failure to cure the
default shall not be deemed an Event of Default (but no Credit Extensions shall be made during such cure period). Grace periods provided under this Section shall not apply, among other things, to financial covenants or any other covenants set forth
in subsection (a) above; 
 8.3 Material Adverse Change. A Material Adverse Change occurs; 
 8.4 Attachment. (a) Any material portion of Borrower’s assets is attached, seized, levied on, or comes into possession of a
trustee or receiver and the attachment, seizure or levy is not removed in ten (10) days; (b) the service of process upon Agent or Borrower seeking to attach, by trustee or similar process, any funds of Borrower on deposit with Agent or
Agent’s Affiliate, or any entity under the control of Agent (including a subsidiary); (c) Borrower is enjoined, restrained, or prevented by court order from conducting any part of its business; (d) a judgment or other claim in excess
of $50,000 becomes a Lien on any portion of Borrower’s assets; or (e) a notice of lien, levy, or assessment is filed against any of Borrower’s assets by any government agency and not paid within ten (10) days after Borrower
receives notice. These are not Events of Default if stayed or if a bond is posted pending contest by Borrower within ten days after the date such events occur (but no Credit Extensions shall be made during the cure period); 
 8.5 Insolvency. (a) Borrower is unable to pay its debts (including trade debts) as they become due or otherwise becomes
insolvent; (b) Borrower begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against Borrower and not dismissed or stayed within thirty (30) days (but no Credit Extensions shall be made while of any of the
conditions described in clause (a) exist and/or until any Insolvency Proceeding is dismissed); 
 8.6 Other
Agreements. If there is a default in any agreement to which Borrower or any Guarantor is a party with a third party or parties resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any
Indebtedness in an amount in excess of One Hundred Thousand Dollars ($100,000.00) or that could result in a Material Adverse Change with respect to Borrower or any Guarantor; provided, however, that the Event of Default under this Section 8.6
caused by the occurrence of a default under such other agreement shall be cured or waived for purposes of this Agreement upon Agent receiving written notice from the party asserting such default of such cure or waiver of the delimit wider such other
agreement, if at the time of such cure or waiver under such other agreement (a) Agent has not declared an Event of Default under this Agreement and/or exercised any rights with respect thereto; (b) any such cure or waiver does not result
in an Event of Default under any other provision of this Agreement or any Loan Document; and (c) in connection with any such cure or waiver under such other agreement, the terms of any agreement with such third party are not modified or amended
in any manner which could in the good faith judgment of Agent be materially less advantageous to Borrower or any Guarantor; 
 8.7 Judgments. A judgment or judgments for the payment of money in an amount, individually or in the aggregate, of at least Fifty Thousand Dollars ($50,000.00) (not covered by

 
independent third-party insurance as to which liability has been accepted by the insurance carrier) shall be rendered against Borrower and shall remain unsatisfied and unstayed for a period of
ten (10) days after the entry thereof (provided that no Credit Extensions will be made prior to the satisfaction or stay of such judgment); 
 8.8 Misrepresentations. Borrower or any Person acting for Borrower makes any representation, warranty, or other statement now or later in this Agreement, any Loan Document or in any writing
delivered to Agent and/or Lenders or to induce Agent and/or Lenders to enter this Agreement or any Loan Document, and such representation, warranty, or other statement is incorrect in any material respect when made; 
 8.9 Subordinated Debt. A default or breach occurs under any agreement between Borrower and any creditor of Borrower that signed a
subordination, intercreditor, or other similar agreement with Agent and/or Lenders, or any creditor that has signed such an agreement with Agent and/or Lenders breaches any terms of such agreement; 
 8.10 Working Capital Loan Agreement. The occurrence of an Event of Default (as defined in the Working Capital Loan Agreement) under
the Working Capital Loan Agreement. 
 9. RIGHTS AND REMEDIES 
 9.1 Rights and Remedies. While an Event of Default occurs and continues Agent may, without notice or demand, do any or all of the
following: 
 (a) declare all Obligations immediately due and payable (but if an Event of Default described in Section 8.5
occurs all Obligations are immediately due and payable without any action by Agent and/or Lenders); 
 (b) stop advancing money
or extending credit for Borrower’s benefit under this Agreement or under any other agreement between Borrower and Agent and/or Lenders; 
 (c) demand that Borrower (i) deposits cash with Agent in an amount equal to the aggregate amount of any letters of credit that are outstanding but undrawn, as collateral security for the repayment of
any future drawings under such letters of credit, and Borrower shall forthwith deposit and pay such amounts, and (ii) pay in advance all letter of credit fees scheduled to be paid or payable over the remaining term of any letters of credit;

 (d) settle or adjust disputes and claims directly with Account Debtors for amounts on terms and in any order that Agent
considers advisable, notify any Person owing Borrower money of Agent’s and Lenders’ security interest in such hinds, and verify the amount of such account. Borrower shall collect all payments in trust for Agent and Lenders and, if
requested by Agent, immediately deliver the payments to Agent in the form received from the Account Debtor, with proper endorsements for deposit; 
 (e) make any payments and do any acts it considers necessary or reasonable to protect the Collateral and/or its security interest in the Collateral. Borrower shall assemble the Collateral if Agent
requests and make it available as Agent designates. Agent may enter premises where the Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or
superior to its security interest and pay all expenses incurred. Borrower grants Agent for the benefit of Lenders a license to enter and occupy any of its premises, without charge, to exercise any of Agent’s rights or remedies; 
 (f) apply to the Obligations any (i) balances and deposits of Borrower it holds, or (ii) any amount held by Agent or Lenders
owing to or for the credit or the account of Borrower; 

 (g) ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise
for sale, and sell the Collateral. Agent is hereby granted a non-exclusive, royalty-free license or other right to use, without charge, Borrower’s labels, patents, copyrights, mask works, rights of use of any name, trade secrets, trade names,
trademarks, service marks, and advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with Agent’s exercise of its rights
under this Section, Borrower’s rights under all licenses and all franchise agreements inure to Lenders’ benefit; 
 (h) place a “hold” on any account maintained with Agent or Lenders and/or deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any Control Agreement or similar agreements
providing control of any Collateral; 
 (i) demand and receive possession of Borrower’s Books; and 
 (j) exercise all rights and remedies available to Agent and/or Lenders under the Loan Documents or at law or equity, including all remedies
provided under the Code (including disposal of the Collateral pursuant to the terms thereof). 
 9.2 Power of Attorney.
Borrower hereby irrevocably appoints Agent as its lawful attorney-in-fact, exercisable upon the occurrence and during the continuance of an Event of Default, to: (a) endorse Borrower’s name on any checks or other forms of payment or
security; (b) sign Borrower’s name on any invoice or bill of lading for any Account or drafts against Account Debtors; (c) settle and adjust disputes and claims about the Accounts directly with Account Debtors, for amounts and on
terms Agent determines reasonable; (d) make, settle, and adjust all claims under Borrower’s insurance policies; (e) pay, contest or settle any Lien, charge, encumbrance, security interest, and adverse claim in or to the Collateral, or
any judgment based thereon, or otherwise take any action to terminate or discharge the same; and (f) transfer the Collateral into the name of Agent for the benefit of Lenders or a third party as the Code permits. Borrower hereby appoints Agent
as its lawful attorney-in-fact to sign Borrower’s name on any documents necessary to perfect or continue the perfection of Agent’s and Lenders’ security interest in the Collateral regardless of whether an Event of Default has occurred
until all Obligations have been satisfied in full and Agent and Lenders are under no further obligation to make Credit Extensions hereunder. Agent’s foregoing appointment as Borrower’s attorney in fact, and all of Agent’s rights and
powers, coupled with an interest, are irrevocable until all Obligations have been fully repaid and performed and Agent’s and Lenders’ obligation to provide Credit Extensions terminates. 
 9.3 Accounts Verification; Collection. Whether or not an Event of Default has occurred and is continuing, Agent may notify any Person
owing Borrower money of Agent’s and Lenders’ security interest in such funds and verify the amount of such account. After the occurrence of an Event of Default, any amounts received by Borrower shall be held in trust by Borrower for Agent
and Lenders, and, if requested by Agent, Borrower shall immediately deliver such receipts to Agent for the benefit of Lenders in the form received from the Account Debtor, with proper endorsements for deposit. 
 9.4 Protective Payments. If Borrower fails to obtain the insurance called for by Section 6.5 or fails to pay any premium thereon
or fails to pay any other amount which Borrower is obligated to pay under this Agreement or any other Loan Document, Agent may obtain such insurance or make such payment, and all amounts so paid by Agent are Lenders’ Expenses and immediately
due and payable, bearing interest at the then highest applicable rate charged by Agent, and secured by the Collateral. Agent will make reasonable efforts to provide Borrower with notice of Agent obtaining such insurance at the time it is obtained or
within a reasonable time• thereafter. No payments by Agent are deemed an agreement to make similar payments in the future or Agent’s or any Lender’s waiver of any Event of Default. 
 9.5 Application of Payments and Proceeds. Unless an Event of Default has occurred and is continuing, Agent and Lenders shall apply
any funds in their possession, whether from Borrower account balances, payments, or proceeds realized as the result of any collection of Accounts or other disposition of the Collateral, first, to Lenders’ Expenses, including without limitation,
the reasonable costs, expenses, liabilities, obligations and attorneys’ fees incurred by Agent and Lenders in the exercise of its rights under 
  

 
this Agreement; second, to the interest due upon any of the Obligations; and third, to the principal of the Obligations and any applicable fees and other charges, in such order as Agent shall
determine in its sole discretion. Any surplus shall be paid to Borrower or other Persons legally entitled thereto; Borrower shall remain liable to Agent and Lenders for any deficiency. If an Event of Default has occurred and is continuing, Agent and
Lenders may apply any funds in their possession, whether from Borrower account balances, payments, proceeds realized as the result of any collection of Accounts or other disposition of the Collateral, or otherwise, to the Obligations in such order
as Agent shall determine in its sole discretion. Any surplus shall be paid to Borrower or other Persons legally entitled thereto; Borrower shall remain liable to Agent and Lenders for any deficiency. If Agent and/or Lenders, in their good faith
business judgment, directly or indirectly enter into a deferred payment or other credit transaction with any purchaser at any sale of Collateral, Agent and each Lender shall have the option, exercisable at any time, of either reducing the
Obligations by the principal amount of the purchase price or deferring the reduction of the Obligations until the actual receipt by Agent of cash therefor. 
 9.6 Agent’s and Lenders’ Liability for Collateral. So long as Agent and Lenders comply with reasonable banking practices regarding the safekeeping of the Collateral in the possession or
under the control of Agent and Lenders, Agent and Lenders shall not be liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or
(d) any act or default of any carrier, warehouseman, bailee, or other Person. Borrower bears all risk of loss, damage or destruction of the Collateral. 
 9.7 No Waiver; Remedies Cumulative. Agent’s and/or any Lender’s failure, at any time or times, to require strict performance by Borrower of any provision of this Agreement or any other
Loan Document shall not waive, affect, or diminish any right of Agent and/or Lenders thereafter to demand strict performance and compliance herewith or therewith. No waiver hereunder shall be effective unless signed by Agent and each Lender and then
is only effective for the specific instance and purpose for which it is given. Agent’s and Lenders’ rights and remedies under this Agreement and the other Loan Documents are cumulative. Agent and Lenders have all rights and remedies
provided under the Code, by law, or in equity. Agent’s exercise of one right or remedy is not an election, and Agent’s waiver of any Event of Default is not a continuing waiver. Agent’s delay in exercising any remedy is not a waiver,
election, or acquiescence. 
 9.8 Demand Waiver. Borrower waives demand, notice of default or dishonor, notice of payment
and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees held by Agent on which Borrower is liable. 
 10. NOTICES 
 All
notices, consents, requests, approvals, demands, or other communication (collectively, “Communication”) by any party to this Agreement or any other Loan Document must be in writing and shall be deemed to have been validly served, given, or
delivered: (a) upon the earlier of actual receipt and three (3) Business Days after deposit in the U.S. mail, first class, registered or certified mail return receipt requested, with proper postage prepaid; (b) upon transmission, when
sent by electronic mail or facsimile transmission; (c) one (1) Business Day after deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be
addressed to the party to be notified and sent to the address, facsimile number, or email address indicated below. Either Lender, Agent, or Borrower may change its address or facsimile number by giving the other party written notice thereof in
accordance with the terms of this Section 10. 
  

			
	If to Borrower:	  	 MERU NETWORKS, INC.
 894
Ross Drive
 Sunnyvale, California 94089
 Attn: Mr. Paul Chopra
 Fax:
                                
 Email:
                            

			
	If to Agent or SVB:	  	 Silicon Valley Bank
 3979
Freedom Circle, Suite 600
 Santa Clara, California 95054
 Attn: Ms. Jean Lee
 Fax: (408) 654-5517
 Email: jlee@svb.com

		
	with a copy to:	  	 Riemer & Braunstein LLP
 Three Center Plaza
 Boston, Massachusetts 02108
 Attn: Charles W. Stavros, Esquire
 Fax: (617) 880-3441
 Email: cstavros@riemerlaw.com

		
	If to Gold Hill:	  	 Gold Hill Venture Lending 03, L.P.
 One Almaden Boulevard, Suite 630
 San Jose CA 95113
 Attn: Glenn Marasigan
 Fax: (408) 200-7841
 gmarasian @ goldhillcapital.com

 11. CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER. AND JUDICIAL REFERENCE 
 California law governs the Loan Documents without regard to principles of conflicts of law. Borrower, Lenders, and Agent each submit to the
exclusive jurisdiction of the State and Federal courts in California. NOTWITHSTANDING THE FOREGOING, AGENT SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST BORROWER OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION WHICH AGENT
DEEMS NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON THE COLLATERAL OR TO OTHERWISE ENFORCE AGENT’S OR LENDERS’ RIGHTS AGAINST BORROWER OR ITS PROPERTY. 
 TO THE EXTENT PERMITTED BY APPLICABLE LAW, BORROWER, LENDERS, AND AGENT EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN
DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL. 

 WITHOUT INTENDING IN ANY WAY TO LIMIT THE PARTIES’ AGREEMENT TO WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY, if the
above waiver of the right to a trial by jury is not enforceable, the parties hereto agree that any and all disputes or controversies of any nature between them arising at any time shall be decided by a reference to a private judge, mutually selected
by the parties (or, if they cannot agree, by the Presiding Judge of the Santa Clara County, California Superior Court) appointed in accordance with California Code of Civil Procedure Section 638 (or pursuant to comparable provisions of federal
law if the dispute falls within the exclusive jurisdiction of the federal courts), sitting without a jury, in Santa Clara County, California; and the parties hereby submit to the jurisdiction of such court. The reference proceedings shall be
conducted pursuant to and in accordance with the provisions of California Code of Civil Procedure §§ 638 through 645.1, inclusive. The private judge shall have the power, among others, to grant provisional relief, including without
limitation, entering temporary restraining orders, issuing preliminary and permanent injunctions and appointing receivers. All such proceedings shall be closed to the public and confidential and all records relating thereto shall be permanently
sealed. If during the course of any dispute, a party desires to seek provisional relief, but a

 
judge has not been appointed at that point pursuant to the judicial reference procedures, then such party may apply to the Santa Clara County, California Superior Court for such relief. The
proceeding before the private judge shall be conducted in the same manner as it would be before a court under the rules of evidence applicable to judicial proceedings. The parties shall be entitled to discovery which shall be conducted in the same
manner as it would be before a court under the rules of discovery applicable to judicial proceedings. The private judge shall oversee discovery and may enforce all discovery rules and order applicable to judicial proceedings in the same manner as a
trial court judge. The parties agree that the selected or appointed private judge shall have the power to decide all issues in the action or proceeding, whether of fact or of law, and shall report a statement of decision thereon pursuant to the
California Code of Civil Procedure § 644(a). Nothing in this paragraph shall limit the right of any party at any time to exercise self-help remedies, foreclose against collateral, or obtain provisional remedies. The private judge shall also
determine all issues relating to the applicability, interpretation, and enforceability of this paragraph. 
 12. GENERAL PROVISIONS

 12.1 Successors and Assigns. This Agreement binds and is for the benefit of the successors and permitted assigns of
each party. Borrower may not assign this Agreement or any rights or obligations under it without Agent’s prior written consent (which may be granted or withheld in Agent’s discretion). Lenders and Agent have the right, without the consent
of or notice to Borrower, to sell, transfer, assign, negotiate, or grant participation in all or any part of, or any interest in, Agent’s and! Lenders’ obligations, rights, and benefits under this Agreement and the other Loan Documents.

 12.2 Indemnification. Borrower agrees to indemnify, defend and hold Agent and Lenders and their respective directors,
officers, employees, agents, attorneys, or any other Person affiliated with or representing Agent or any Lender harmless against: (a) all obligations, demands, claims, and liabilities (collectively, “Claims”) asserted by any
other party in connection with the transactions contemplated by the Loan Documents; and (b) all losses or Lenders’ Expenses incurred, or paid by Lenders and/or Agent from, following, or arising from transactions between Lenders and
Borrower (including reasonable attorneys’ fees and expenses), except for Claims and/or losses directly caused by Lenders’ and/or Agent’s gross negligence or willful misconduct. 
 12.3 Time of Essence. Time is of the essence for the performance of all Obligations in this Agreement. 
 12.4 Severability of Provisions. Each provision of this Agreement is severable from every other provision in determining the
enforceability of any provision. 
 12.5 Amendments in Writing; Integration. All amendments to this Agreement must be in
writing signed by Agent, Lenders and Borrower. This Agreement and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations,
warranties, and negotiations between the parties about the subject matter of this Agreement and the Loan Documents merge into this Agreement and the Loan Documents. 
 12.6 Counterparts. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, is an original, and
all taken together, constitute one Agreement. 
 12.7 Survival. All covenants, representations and warranties made in
this Agreement continue in full force until this Agreement has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this
Agreement) have been satisfied. The obligation of Borrower in Section 12.2 to indemnify each Lender and Agent shall survive until the statute of limitations with respect to such claim or cause of action shall have run. 

 12.8 Confidentiality. In handling any confidential information, Agent and Lenders
shall exercise the same degree of care that they exercise for their own proprietary information, but disclosure of information may be made: (a) to Agent’s and Lenders’ Subsidiaries or Affiliates; (b) to prospective transferees or
purchasers of any interest in the Credit Extensions (provided, however, Agent and Lenders shall use commercially reasonable efforts to obtain such prospective transferee’s or purchaser’s agreement to the terms of this provision);
(c) as required by law, regulation, subpoena, or other order; (d) to Agent’s and Lenders’ regulators or as otherwise required in connection with Agent’s and Lenders’ examination or audit; and (e) as Agent considers
appropriate in exercising remedies under this Agreement. Confidential information does not include information that either: (i) is in the public domain or in Agent’s and/or Lenders’ possession when disclosed to Agent and/or Lenders,
or becomes part of the public domain after disclosure to Agent and/or Lenders; or (ii) is disclosed to Agent and/or Lenders by a third party, if Agent and/or Lenders does not know that the third party is prohibited from disclosing the
information. 
 12.9 Right of Set Off. Borrower hereby grants to Agent for the ratable benefit of Lenders, and to each
Lender, a lien, security interest and right of set off as security for all Obligations to Agent and each Lender, whether now existing or hereafter arising upon and against all deposits, credits, collateral and property, now or hereafter in the
possession, custody, safekeeping or control of Agent or any entity under the control of Agent (including an Agent subsidiary) or in transit to any of them. At any time after the occurrence and during the continuance of an Event of Default, without
demand or notice, Agent or Lenders, as appropriate, may set off the same or any part thereof and apply the same to any liability or obligation of Borrower even though unmatured and regardless of the adequacy of any other collateral securing the
Obligations. ANY AND ALL RIGHTS TO REQUIRE AGENT TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY
OF BORROWER ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED. 
 12.10 Attorneys’ Fees, Costs and Expenses.
In any action or proceeding between Borrower and Agent and/or Lenders arising out of or relating to the Loan Documents, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and other costs and expenses incurred, in
addition to any other relief to which it may be entitled. 
 12.11 Confirmations and Ratifications by Borrower.
(a) Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Representations and Warranties dated as of January 9, 2007, delivered by Borrower to Agent (the “Perfection
Certificate”), and acknowledges, confirms and agrees that the disclosures and information Borrower provided to Agent in the Perfection Certificate have not changed as of the date of this Agreement, except that Borrower has an additional
subsidiary, Meru Networks International, Inc., a Delaware corporation, and (b) Borrower hereby: (i) ratifies, confirms and reaffirms, all and singular, the terms and conditions of a certain Intellectual Property Security Agreement dated as
of January 29, 2007 between Borrower and Agent (“IP Agreement”), (ii) acknowledges, confirms and agrees that the IP Agreement contains an accurate and complete listing of all Intellectual Property Collateral as defined in
the IP Agreement and shall remain in full force and effect, (iii) confirms that the security interest granted therein by Borrower secures, among other things, the prompt and complete payment and performance of the Obligations. 
 13. DEFINITIONS 
 13.1 Definitions. As used in this Agreement, the following terms have the following meanings: 
 “Account” is any “account” as defined in the Code with such additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other sums owing to Borrower. 

“Account Debtor” is any “account debtor” as defined in the Code with such additions to such term as may
hereafter be made. 

 “Additional Term Loans” is defined in Section 2.1.1(a). 
 “Affiliate” of any Person is a Person that owns or controls directly or indirectly the Person, any Person that controls or
is controlled by or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any Person that is a limited liability company, that Person’s managers and members. 

“Agent” means, SVB, not in its individual capacity, but solely in its capacity as agent on behalf of and for the benefit
of the Lenders. 
 “Agreement” is defined in the preamble hereof. 
 “Amortization Date” is: (a) for the Initial Term Loan, July 1, 2008, and (b) for the Additional Term Loans,
(i) July 1, 2009, in the event that Borrower achieves at least seventy-five percent (75%) of its revenue plan through June 30, 2008, and (ii) July 1, 2008, in the event that Borrower fails to achieve at least
seventy-five percent (75%) of its revenue plan through June 30, 2008. 
 “Board” means
Borrower’s board of directors. 
 “Borrower” is defined in the preamble hereof. 
 “Borrower’s Books” are all Borrower’s books and records including ledgers, federal and state tax returns, records
regarding Borrower’s assets or liabilities, the Collateral, business operations or financial condition, and all computer programs or storage or any equipment containing such information. 
 “Borrowing Resolutions” are, with respect to any Person, those resolutions adopted by such Person’s Board of Directors
and delivered by such Person to Agent approving the Loan Documents to which such Person is a party and the transactions contemplated thereby, together with a certificate executed by its secretary on behalf of such Person certifying that
(a) such Person has the authority to execute, deliver, and perform its obligations under each of the Loan Documents to which it is a party, (b) that attached as Exhibit A to such certificate is a true, correct, and complete copy of the
resolutions then in full force and effect authorizing and ratifying the execution, delivery, and performance by such Person of the Loan Documents to which it is a party, (c) the name(s) of the Person(s) authorized to execute the Loan Documents
on behalf of such Person, together with a sample of the true signature(s) of such Person(s), and (d) that Agent and Lenders may conclusively rely on such certificate unless and until such Person shall have delivered to Agent a further
certificate canceling or amending such prior certificate. 
 “Business Day” is any day that is not a Saturday,
Sunday or a day on which Agent is closed. 
 “Cash Equivalents” are (a) marketable direct obligations
issued or unconditionally guaranteed by the United States or any agency or any State thereof having maturities of not more than one (1) year from the date of acquisition; (b) commercial paper maturing no more than one (1) year after
its creation and having the highest rating from either Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc., (c) Agent’s certificates of deposit issued maturing no more than one (1) year after issue,
and (d) money market funds at least ninety-five percent (95%) of the assets of which constitute Cash Equivalents of the kinds described in clauses (a) through (c) of this definition. 
 “Claims” are defined in Section 12.2. 
 “Code” is the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in the State of California; provided, that, to the extent that the Code is used to
define any term herein or in any Loan Document and such term is defined differently in different Articles or Divisions of the Code, the definition of such term contained in Article or Division 9 shall govern; provided further, that in the event
that, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority of, or remedies with respect to, Agent’s and Lenders’ Lien on any Collateral is governed by the Uniform

 
Commercial Code in effect in a jurisdiction other than the State of California, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other
jurisdiction solely for purposes on the provisions thereof relating to such attachment, perfection, priority, or remedies and for purposes of definitions relating to such provisions. 
 “Collateral” is any and all properties, rights and assets of Borrower described on Exhibit A. 
 “Collateral Account” is any Deposit Account, Securities Account, or Commodity Account. 
 “Commitment” is the outstanding amount of Obligations based on each Lender’s Commitment Percentage. 
 “Commitment Percentage” is set forth in Schedule 1.1, as amended from time to time. 
 “Commodity Account” is any “commodity account” as defined in the Code with such additions to such term as may
hereafter be made. 
 “Communication” is defined in Section 10. 
 “Compliance Certificate” is that certain certificate in the form attached hereto as Exhibit C. 
 “Contingent Obligation” is, for any Person, any direct or indirect liability, contingent or not, of that Person for
(a) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed, endorsed, co-made, discounted or sold with recourse by that Person, or for which that Person is
directly or indirectly liable; (b) any obligations for undrawn letters of credit for the account of that Person; and (c) all obligations from any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement,
or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent Obligation” does not include endorsements in the ordinary course of
business. The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably anticipated liability for it determined by the
Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement. 
 “Control Agreement” is any control agreement entered into among the depository institution at which Borrower maintains a Deposit Account or the securities intermediary or commodity intermediary at which Borrower maintains a
Securities Account or a Commodity Account, Borrower, and Agent pursuant to which Agent obtains control (within the meaning of the Code) for the benefit of Lenders over such Deposit Account, Securities Account, or Commodity Account. 
 “Credit Extension” is any Term Loan, or any other extension of credit by Lenders for Borrower’s benefit. 

“Default” is any event which with notice or passage of time or both, would constitute an Event of Default. 

“Default Rate” is defined in Section 2.2(b). 
 “Deposit Account” is any “deposit account” as defined in the Code with such additions to such term as may
hereafter be made. 
 “Designated Deposit Account” is Borrower’s deposit account, account number
3300345156 (routing number 121140399), maintained with Agent. 
 “Dollars,” “dollars” and
“$” each mean lawful money of the United States. 

 “Draw Period” is the period of time from the Effective Date through the
earliest to occur of (a) June 30, 2008, and (b) an Event of Default. 
 “Effective Date” is
defined in the preamble of this Agreement. 
 “Equipment” is all “equipment” as defined in the Code
with such additions to such term as may hereafter be made, and includes without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing. 
 “ERISA” is the Employee Retirement Income Security Act of 1974, and its regulations. 
 “Event of Default” is defined in Section 8. 
 “Final Payment” is, with respect to each Term Loan, a payment (in addition to and not a substitution for the regular
monthly payments of principal plus accrued interest) due on the earlier of (a) the Term Loan Maturity Date for such Term Loan, or (b) the acceleration of such Term Loan, equal to the amount of such Term Loan multiplied by the Final Payment
Percentage. 
 “Final Payment Percentage” is, for each Term Loan, two percent (2.0%). 
 “Funding Date” is any date on which a Credit Extension is made to or on account of Borrower which shall be a Business Day.

 “GAAP” is generally accepted accounting principles set forth in the opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other Person as may be approved by a significant
segment of the accounting profession, which are applicable to the circumstances as of the date of determination. 
 “General Intangibles” is all “general intangibles” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation, all copyright
rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished, any patents, trademarks, service marks and, to the extent permitted under applicable law,
any applications therefor, whether registered or not, any trade secret rights, including any rights to unpatented inventions, payment intangibles, royalties, contract rights, goodwill, franchise agreements, purchase orders, customer lists, route
lists, telephone numbers, domain names, claims, income and other tax refunds, security and other deposits, options to purchase or sell real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or
otherwise), insurance policies (including without limitation key man, property damage, and business interruption insurance), payments of insurance and rights to payment of any kind. 
 “Gold Hill” is defined in the preamble hereof. 
 “Governmental Authority” is any nation or government, any state or other political subdivision thereof, any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any
self-regulatory organization. 
 “Guarantor” is any present or future guarantor of the Obligations. 

“Indebtedness” is (a) indebtedness for borrowed money or the deferred price of property or services, such as
reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations, and (d) Contingent Obligations. 

 “Initial Term Loan” is defined in Section 2.1.1(a). 
 “Insolvency Proceeding” is any proceeding by or against any Person under the United States Bankruptcy Code, or any other
bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief. 
 “Interest Only Period” shall mean the period of time commencing on the Funding Date of a Term Loan and ending on the day
immediately preceding the applicable Amortization Date. 
 “Inventory” is all “inventory” as defined
in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished
products, including without limitation such inventory as is temporarily out of Borrower’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above. 
 “Investment” is any beneficial ownership interest in any Person (including stock, partnership interest or other
securities), and any loan, advance or capital contribution to any Person. 
 “IP Agreement” is defined in
Section 12.11. 
 “Lender” is any one of the Lenders. 
 “Lenders” shall mean the Persons identified on Schedule 1.1 hereto and each assignee that becomes a party to this Agreement
pursuant to Section 12.1. 
 “Lenders’ Expenses” are all audit fees and expenses, costs, and expenses
(including reasonable attorneys’ fees and expenses) of Agent and Lenders for preparing, negotiating, administering, defending and enforcing the Loan Documents (including, without limitation, those incurred in connection with appeals or
Insolvency Proceedings) or otherwise incurred with respect to Borrower. 
 “Lien” is a mortgage, lien, deed of
trust, charge, pledge, security interest or other encumbrance. 
 “Liquidity Event” means (i) the
Borrower’s initial public offering and sale of its securities pursuant to an effective registration statement under the Securities Act of 1933, as amended, (ii) the sale by Borrower of all or substantially all of its assets to an
unaffiliated purchaser, (iii) the merger of the Borrower with an unaffihiated entity where the holders of the Borrowers outstanding capital stock entitled to vote as of immediately prior to the consummation of such merger do not own at least a
majority of the outstanding capital stock or other equity interests entitled to vote as of immediately following the consummation of such merger, or (iv) any transaction or series of related transactions pursuant to which the holders of the
Borrower’s outstanding capital stock entitled to vote sell or otherwise transfer shares representing a majority of the outstanding combined voting power of the Borrower to one or more unaffiliated persons or entities. 
 “Loan Documents” are, collectively, this Agreement, the Working Capital Loan Agreement, the Warrant, the Perfection
Certificate, the IP Agreement, any note, or notes or guaranties executed by Borrower or any Guarantor, and any other present or future agreement between Borrower or any Guarantor and/or for the benefit of Agent and/or Lenders in connection with this
Agreement, all as amended, restated, or otherwise modified. 
 “Marketable Securities” means securities of a
class and series then listed for trading on a national securities exchange or quoted for trading on a national inter-dealer quotation system and which the holder of the Warrant could re-sell in their entirety without contractual or other restriction
in the three (3) month period immediately following the closing of the Sale Transaction either pursuant to an effective registration statement under the Securities Act of 1933, as amended or pursuant to Rule 144 promulgated thereunder.

 “Material Adverse Change” is (a) a material impairment in the
perfection or priority of any Lender’s or Agent’s Lien in the Collateral or in the value of such Collateral; (b) a material adverse change in the business, operations, or condition (financial or otherwise) of Borrower; or (c) a
material impairment of the prospect of repayment of any portion of the Obligations. 
 “Obligations” are
Borrower’s obligation to pay when due any debts, principal, interest, Lenders’ Expenses, the Final Payment, the Prepayment Fee, and other amounts Borrower owes Agent and/or Lenders now or later, whether under this Agreement, the Loan
Documents, the Working Capital Loan Agreement, or otherwise, including, without limitation, all obligations relating to letters of credit (including reimbursement obligations for drawn and undrawn letters of credit), cash management services, and
foreign exchange contracts, if any, and including interest accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of Borrower assigned to Agent and/or Lenders, and the performance of Borrower’s duties under the Loan
Documents. 
 “Operating Documents” are, for any Person, such Person’s formation documents, as certified
with the Secretary of State of such Person’s state of formation on a date that is no earlier than 30 days prior to the Effective Date, and, (a) if such Person is a corporation, its bylaws in current form, (b) if such Person is a
limited liability company, its limited liability company agreement (or similar agreement), and (c) if such Person is a partnership, its partnership agreement (or similar agreement), each of the foregoing with all current amendments or
modifications thereto. 
 “Payment/Advance Form” is that certain form attached hereto as Exhibit B.

 “Payment Date” is the first calendar day of each month. 
 “Perfection Certificate” is defined in Section 12.11. 
 “Permitted Indebtedness” is: 
 (a) Borrower’s indebtedness to Agent and/or Lenders under this Agreement or the Loan Documents; 
 (b) Subordinated Debt; 
 (c) unsecured Indebtedness to trade creditors incurred in
the ordinary course of business; 
 (d) Indebtedness incurred as a result of endorsing negotiable instruments received in the
ordinary course of business; 
 (e) Indebtedness secured by Permitted Liens; and 
 (f) extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness (a) through
(t) above, provided that the principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be. 
 “Permitted Investments” are: 
 (a) Investments shown on the Perfection Certificate and existing on the Effective Date; 

 (b) Cash Equivalents; 
 (c) Investments consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary
course of Borrower; 
 (d) Investments consisting of deposit accounts in which Lenders have a perfected security interest;

 (e) Investments accepted in connection with Transfers permitted by Section 7.1; 
 (f) Investments of Subsidiaries in Borrower and Investments by Borrower in Subsidiaries, provided that Borrower’s Investments in
Subsidiaries shall not exceed the lesser of ($4,500,000 for fiscal year 2007, $5,850,000 for fiscal year 2008, plus 20% per annum thereafter), or (ii) an amount reasonably necessary to fund current operating expenses of such Subsidiaries
(taking into account the income and assets of such Subsidiaries); 
 (g) Investments consisting of (i) travel advances and
employee relocation loans and other employee loans and advances in the ordinary course of business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of Borrower or its Subsidiaries pursuant to
employee stock purchase plans or agreements approved by Borrower’s Board of Directors; 
 (h) Investments (including debt
obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business; and

 (i) Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and
suppliers who are not Affiliates, in the ordinary course of business; provided that this paragraph shall not apply to In vestments of Borrower in any Subsidiary. 
 “Permitted Liens” are; 
 (a) Liens existing on the Effective
Date and shown on the Perfection Certificate or arising under this Agreement and the other Loan Documents; 
 (b) Liens for
taxes, fees, assessments or other government charges or levies, either not delinquent or being contested in good faith and for which Borrower maintains adequate reserves on its Books, if they have no priority over any of Lenders’ Liens;

 (c) purchase money Liens (i) on Equipment acquired after the date hereof by Borrower incurred for financing the
acquisition of the Equipment securing no more than $1,000,000 in the aggregate amount outstanding or (ii) existing on Equipment when acquired, if the Lien is confined to the property and improvements and the proceeds of the Equipment;

 (d) statutory Liens securing claims or demands of materialmen, mechanics, carriers, warehousemen, landlords and other
Persons imposed without action of such parties, provided, they have no priority over any of Lenders’ Lien and the aggregate amount of such Liens does not at any time exceed $50,000; 
 (e) Liens to secure payment of workers’ compensation, employment insurance, old-age pensions, social security and other like
obligations incurred in the ordinary course of business, provided, they have no priority over any of Lenders’ Liens and the aggregate amount of the indebtedness secured by such Liens does not at any time exceed $50,000; 

 (f) Liens incurred in the extension, renewal or refinancing of the indebtedness secured by
Liens described in (a) through (c), but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness may not increase; 
 (g) leases or subleases of real property granted in the ordinary course of business, and leases, subleases, non-exclusive licenses or
sublicenses of property (other than real property or intellectual property) granted in the. ordinary course of Borrower’s business, if the leases, subleases, licenses and sublicenses do not prohibit granting Lenders a security’ interest;

 (h) non-exclusive license of intellectual property granted to third parties in the ordinary course of business; and

 (i) Liens arising from judgments, decrees or attachments in circumstances not constituting an Event of Default under
Section 8.4 or 8.7. 
 “Person” is any individual, sole proprietorship, partnership, limited liability
company, joint venture, company, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency. 
 “Prepayment Fee” shall be an amount equal to: 
 (i) for a prepayment made on or after the Effective Date but on or prior to the date which is twelve (12) months after
the Amortization Date, three percent (3.0%) of the principal amount of the Terms Loans advanced; 
 (ii)
for a prepayment made after the date which is twelve (12) months after the Amortization Date, but on or prior to the date which is twenty-four (24) months after the Amortization Date, two percent (2.0%) of the principal amount of the
Terms Loans advanced; and 
 (iii) for a prepayment made after the date which is twenty-four (24) months
after the Amortization Date, but prior to the Term Loan Maturity Date, one percent (1.0%) of the principal amount of the Terms Loans advanced. 
 “Previously Disclosed Matter” is that certain case entitled Ujjal Kohli v. Neocarta Ventures LLP, et al., Santa Clara Superior Court, Case No. 1 07 CV 092847, filed in August
2007 by a shareholder of the Borrower against the Borrower and several of its directors and shareholders alleging breach of fiduciary duty and fraud relating to the Series B-l preferred stock financing of the Borrower completed in June 2005.

 “Prime Rate” is Agent’s most recently announced “prime rate,” even if it is not Agent’s
lowest rate. 
 “Registered Organization” is any “registered organization” as defined in the Code
with such additions to such term as may hereafter be made. 
 “Repayment Period” is defined in
Section 2.1.1(c). 
 “Requirement of Law” is as to any Person, the organizational or governing documents
of such Person, and any law (statutory or common), treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which
such Person or any of its property is subject. 

 “Responsible Officer” is any of the Chief Executive Officer, President,
Chief Financial Officer and Controller of Borrower. 
 “Sale Transaction” is defined in Section 2.3(b).

 “Schedule” is any attached schedule of exceptions. 
 “Securities Account” is any “securities account” as defined in the Code with such additions to such term as may
hereafter be made. 
 “Subordinated Debt” is indebtedness incurred by Borrower subordinated to all of
Borrower’s now or hereafter indebtedness to Agent and Lenders (pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Agent and Lenders entered into among Agent, Lenders and the other
creditor), on terms acceptable to Agent and Lenders. 
 “Subsidiary” is, with respect to any Person, any Person
of which more than 50% of the voting stock or other equity interests (in the case of Persons other than corporations) is owned or controlled, directly or indirectly, by such Person or one or more Affiliates of such Person. 
 “SVB” is defined in the preamble hereof. 
 “Term Loan” is, collectively, the Initial Term Loan and Additional Term Loans. 
 “Term Loan Maturity Date” is, for each Term Loan, the date which is thirty-five (35) months after the Amortization Date with respect to such Term Loan. 
 “Threshold Amount” means $200,000. 
 “Transfer” is defined in Section 7.1. 
 “Warrant” is, collectively, (a) that certain Warrant to Purchase Stock dated as of the Effective Date executed by Borrower in favor of SVB, and (b) that certain Warrant to Purchase Stock dated as of the Effective
Date executed by Borrower in favor of Gold Hill. 
 “Warrant Condition” means the satisfaction of all of the
following conditions: (x) the market value of one Share (as defined in the Warrant) as of immediately following the closing of the Liquidity Event is not less than four (4) times the then-effective Warrant Price (as defined in the Warrant)
(the “Required Warrant Value”), and (y) the holder of the Warrant could have received (based on the average of the closing prices of the Borrower’s Common Stock over a thirty (30) day period), at any time following
the closing of the Liquidity Event but prior to such holder’s exercise of the Warrant, cash consideration in respect of a sale of the Warrant or the Shares equal to at least the aggregate Required Warrant Value in respect of all Shares,
pursuant to a sale of such Shares (or the Warrant) under an effective registration statement under the Securities Act of 1933, as amended (the “Act”) or pursuant to Rule 144 promulgated thereunder or other applicable exemption from
registration under the Act. 
 “Required Warrant Value” is defined in the definition of “Warrant
Condition.” 
 “Working Capital Loan Agreement” is that certain Loan and Security Agreement between
Borrower and SVB dated as of January 29, 2007, as may be amended from time to time. 
 [Signature page follows.] 

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

			
	MERU NETWORKS, INC.
		
	By:	 	 /s/ Ihab Abu-Hakima

		
	Name:	 	 Ihab Abu-Hakima

		
	Title:	 	 CEO

	
	LENDERS:
	
	SILICON VALLEY BANK, as Agent and as a LENDER
		
	By:	 	 /s/ Jean Lee

		
	Name:	 	 Jean Lee

		
	Title:	 	 Relationship Manager

	
	GOLD HILL VENTURE LENDING 03, L.P., as LENDER
		
	By:	 	GOLD HILL VENTURE LENDING PARTNERS 03, LLC, as General Partner
		
	By:	 	 /s/ Sean Lynden

		
	Name:	 	 Sean Lynden

		
	Title:	 	 Partner

 [Signature page to Loan and Security Agreement] 

 Schedule 1.1 
 Lenders and Commitments 
  

					
	 Lender
	 	 Commitment
	 	 Commitment Percentage

	 Silicon Valley Bank
	 	$3,000,000.00	 	20.00%
			
	 Gold Hill Venture Lending 03, L.P.
	 	$12,000,000.00	 	80.00%
			
	 TOTAL
	 	$15,000,000.00	 	100.00%

 EXHIBIT A 
 The Collateral consists of all of Borrower’s right, title and interest in and to the following personal property: 
 All goods, Accounts (including health-care receivables) Equipment, Inventory, contract rights or rights to payment of money, leases, license
agreements, franchise agreements, General Intangibles, commercial tort claims documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash deposit accounts, fixtures, letters of credit rights (whether
or not the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and 
 All Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions
for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing. 

 EXHIBIT B 
 Loan Payment/Advance Request Form 
 Deadline
for same day processing is 12:00 E.S.T. 
  

			
	LOAN ADVANCE:	  	
		
	Complete Outgoing Wire Request section below if all or a portion of the funds from this loan advance are for an outgoing wire.	  	
		
	 From Account #
	  	To Account #
	 (Loan Account #)
	  	    (Deposit Account #)
		
	Amount of Term Loan $15,000,000	  	
		
	All Borrower’s representation and warranties in the Term Loan and Security Agreement are true, correct and complete in all material respects on the date of the telephone
transfer request for an advance, but those representations and warranties expressly referring to another date shall be true, correct and complete in all material respects as of such date:	  	
		
	Authorized Signature: /s/ Ihab Abu-Hakima	  	Phone Number: 408-215-5321

 EXHIBIT C 
 COMPLIANCE CERTIFICATE 
  

					
	TO:	  	SILICON VALLEY BANK, as Agent	  	Date:                                      
   
			
	FROM:	  	MERU NETWORKS, INC.	  	

 The undersigned authorized officer of MERU NETWORKS, INC. (“Borrower”)
certifies that under the terms and conditions of the Term Loan and Security Agreement among Borrower, Lenders and Agent (the “Agreement”), (1) Borrower is in complete compliance for the period ending
            with all required covenants except as noted below, (2) there are no Events of Default, (3) all representations and warranties in the Agreement are true and correct in
all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and
provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, (4) Borrower, and each of its Subsidiaries, has timely filed all
required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 5.8 of the
Agreement, and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Agent. Attached are
the required documents supporting the certification. The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The
undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is
delivered. Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement. 
 Please indicate
compliance status by circling Yes/No under “Complies” column. 
  

					
	 Reporting Covenant
	  	 Required
	  	 Complies

			
	Monthly financial statements with Compliance Certificate	  	Monthly within 30 days	  	Yes No
			
	Annual financial statement (CPA Audited)	  	FYE within 180 days	  	Yes No
			
	10-Q, 10-K and 8-K	  	Within 5 days after filing with SEC	  	Yes No
			
	Board Approved Resolutions	  	Annually, at least 30 days prior to FYE	  	Yes No

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

							
	MERU NETWORKS, INC. BANK USE ONLY	 	BANK USE ONLY
				
	By:	 	  
	 	Received by:	 	  

	Name:	 	  
	 		 	AUTHORIZED SIGNER    
	Title:	 	  
	 		 	
		 		 	Date:	 	  

				
		 		 	Verified:	 	  

		 		 		 	AUTHORIZED SIGNER    
		 		 	Verified:	 	  

		 		 		 	AUTHORIZED SIGNER    
		 		 	Date:	 	  

		 		 	Compliance
Status:                            Yes No

 FIRST LOAN MODIFICATION AGREEMENT 
 This First Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of November 30, 2007, by and
between SILICON VALLEY BANK, a California corporation with a loan production office located at 3979 Freedom Circle, Suite 600, Santa Clara, California 95054 (“Bank”) and MERU NETWORKS, INC., a Delaware corporation with its
chief executive office located at 1309 S. Mary Avenue, Sunnyvale, California 94087 (“Borrower”). 
 1. DESCRIPTION OF EXISTING
INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to a loan arrangement dated as of January 29, 2007, evidenced by, among other documents, a
certain Loan and Security Agreement dated as of January 29, 2007, between Borrower and Bank (as amended, the “Loan Agreement”). Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan
Agreement. 
 2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement
(together with any other collateral security granted to Bank, the “Security Documents”). Hereinafter, the Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the
“Existing Loan Documents”. 
 3. DESCRIPTION OF CHANCE IN TERMS. 
  

	 	A.	Modifications to Loan Agreement. 

  

	 	1.	The Loan Agreement shall be amended by deleting the following Section 2.1.5 thereof, entitled “Overall Aggregate Sublimit”: 

 “2.1.5 Overall Aggregate Sublimit. In no event shall the total amount of (i) outstanding Letters of Credit (including drawn
but unreimbursed Letters of Credit and any Letter of Credit Reserve), and (ii) the FX Reserve, and (iii) the amount of the Availability Amount utilized for Cash Management Services, at any time exceed $2,000,000 in the aggregate (the
“Overall Sublimit”).” 
 and inserting in lieu thereof the following: 
 “2.1.5 Overall Aggregate Sublimit. In no event shall the total amount of (i) outstanding Letters of Credit (including drawn
but unreimbursed Letters of Credit and any Letter of Credit Reserve), and (ii) the FX Reserve, and (iii) the amount of the Availability Amount utilized for Cash Management Services, at any time exceed $5,000,000 in the aggregate (the
“Overall Sublimit”).” 
  

	 	2.	The Loan Agreement shall be amended by deleting the following text appearing in Section 5.2 thereof, entitled “Collateral”: 

 “Except as hereafter disclosed to Bank in writing by Borrower, and other than Collateral which by its very nature is intended to be
used at places other than the Borrower’s place of business (such as laptop computers, marketing materials, cell phones, and the like), none of the components of the Collateral shall be maintained at locations other than as provided in the
Perfection Certificate.” 
 and inserting in lieu thereof the following: 
 “Except as hereafter disclosed to Bank in writing by Borrower, and other than Collateral which by its very nature is intended to be
used at places other than the Borrower’s place of business (such as manufacturing test equipment, laptop

 
computers, marketing materials, cell phones, and the like), none of the components of the Collateral shall be maintained at locations other than as provided in the Perfection Certificate.”

  

	 	3.	The Loan Agreement shall be amended by deleting Section 2.1.6(d) thereof, entitled “Term Loan Reserve,” and inserting in lieu thereof the following new
Section 2.1.6(d): 

 “(d) Term Loan Reserve. ‘Term Loan Reserve” shall mean an amount
equal to the entire unpaid principal balance of the Term Loan outstanding from time to time.” 
  

	 	4.	The Loan Agreement shall be amended by deleting the following Section 2.3(a)(i) thereof, entitled “Advances”: 

 “(i) Advances. Subject to Section 2.3(b), the amounts outstanding under the Revolving Line shall accrue interest at a per
annum rate equal to the “Prime Rate” in effect from time to time plus 0.75% per annum; provided that if the Quick Ratio Test is not met, the interest rate applicable to the Obligations shall be a per annum rate equal to the
“Prime Rate” in effect from time to time, plus 1.50% per annum. Changes in the interest rate based on whether or not the Quick Ratio lest is met shall go into effect as of the first day of the month closest to the date
Borrower’s financial statements, which show whether or not the Quick Ratio Test is met, are due, even if the delivery of the financial statements is delayed.” 
 and inserting in lieu thereof the following: 
 “(i) Advances. Subject
to Section 2.3(b), the amounts outstanding under the Revolving Line shall accrue interest at a per annum rate equal to the greater of: (a) the “Prime Rate” in effect from time to time plus 1.00% per annum, and
(b) eight and one half of one percent (8.50%); provided that if the Quick Ratio Test is not met, the interest rate applicable to the Obligations shall be a per annum rate equal to the greater of: (a) the “Prime Rate” in effect
from time to time plus 2.00% per annum, and (b) nine and one half of one percent (9.50%). Changes in the interest rate based on whether or not the Quick Ratio lest is met shall go into effect as of the first day of the month closest
to the date Borrower’s financial statements, which show whether or not the Quick Ratio Test is met, are due, even if the delivery of the financial statements is delayed.” 
  

	 	5.	The Loan Agreement shall be amended by inserting the following new Section 2.3(h) immediately following Section 2.3(g) thereof: 

 “(h) Minimum Monthly Interest. In the event the aggregate amount of interest earned by Bank in any calendar month (exclusive of
any collateral monitoring fees, unused line fees, or any other fees and charges hereunder) is less than interest calculated based upon $2,000,000 outstanding under the Revolving Line with respect to each month (the “Minimum Monthly
Interest”), Borrower shall pay Bank an amount, payable on the last day of such month, in an amount equal to the (i) Minimum Monthly Interest minus (ii) the aggregate amount of all interest earned by Bank (exclusive of any unused
line fees, or any other fees and charges hereunder) in such month.” 
  

	 	6.	The Loan Agreement shall be amended by deleting the following Section 5.7 thereof, entitled “Subsidiaries; Investments”: 

 “5.7 Subsidiaries; Investments. Borrower does not have any Subsidiaries, other
than Meru Networks India Pvt. Ltd., an Indian company, and Meru Networks Japan KK, a Japanese company and other Subsidiaries organized with the prior written consent of Bank, and does not own any stock, partnership interest or other equity
securities in any other Person, except for Permitted Investments.” 
 and inserting in lieu thereof the following new
Section 6.9: 
 “5.7 Subsidiaries; Investments. Borrower does not have any Subsidiaries, other than Meru
Networks India Pvt. Ltd., an Indian company, Meru Networks International, Inc., a Delaware corporation, and Meru Networks Japan KK, a Japanese company and other Subsidiaries organized with the prior written consent of Bank, and does not own any
stock, partnership interest or other equity securities in any other Person, except for Permitted Investments.” 
  

	 	7.	The Loan Agreement shall be amended by deleting Section 6.9 thereof, entitled “Financial Covenants,” and inserting in lieu thereof the following new
Section 6.9: 

 “6.9 Financial Covenants. Borrower shall maintain at all times, to be tested as
of the last day of each month, unless otherwise noted, on a consolidated basis: 
 (a) Minimum Bookings. As of the last
day of each quarter set forth below, achieve Bookings, of not less than the following amounts: 
  

			
	 Period
	  	 Minimum Bookings

	January 1, 2008 through March 31, 2008	  	$15,000,000.00
	April 1, 2008 through June 30, 2008	  	$17,000,000.00
	July 1, 2008 through September 30, 2008	  	$20,000,000.00
	October 1, 2008 through December 31, 2008	  	$24,000,000.00
	During each quarter thereafter	  	80% of board approved quarterly bookings target

 (b) Minimum Collections. Receive collections, based upon a rolling three-month
average and tested as of the last day of each month, of not less than: (i) $2,000,000.00, for each month from November 1, 2007 through March 31, 2008; (ii) $3,500,000.00, for each month from April 1, 2008 through
June 30, 2008, and (iii) $4,500,000.00, for each month from July 31, 2008, and thereafter.” 
  

	 	8.	The Loan Agreement shall be amended by inserting the following new Section 8.10 immediately following Section 8.9 thereof entitled “Subordinated
Debt”: 

 “8.10 Growth Capital Loan Agreement. The occurrence of an Event of Default (as defined
in the Growth Capital Loan Agreement) under the Growth Capital Loan Agreement.” 

	 	9.	The Loan Agreement shall be amended by deleting the following text appearing in the definition of “Eligible Accounts” in Section 13.1 thereof:

 “(1) Accounts owing from an Account Debtor with respect to which Borrower has received deferred revenue
(but only to the extent of such deferred revenue);” 
 and inserting in lieu thereof the following: 
 “(1) Accounts owing from an Account Debtor with respect to which Borrower has received deferred revenue for maintenance and support
(but only to the extent of such deferred revenue);” 
  

	 	10.	The Loan Agreement shall be amended by deleting the following text appearing in the definition of “Permitted Investments” appearing in Section 13.1
thereof: 

 “(f) Investments of Subsidiaries in Borrower and Investments by Borrower in Subsidiaries,
provided that Borrower’s Investments in Subsidiaries shall not exceed the lesser of ($4,500,000 for fiscal year 2007 plus 20% per annum thereafter), or (ii) an amount reasonably necessary to fund current operating expenses of such
Subsidiaries (taking into account the income and assets of such Subsidiaries);” 
 and inserting in lieu thereof the
following: 
 “(f) Investments of Subsidiaries in Borrower and Investments by Borrower in Subsidiaries, provided that
Borrower’s Investments in Subsidiaries shall not exceed the lesser of ($4,500,000 for fiscal year 2007, $5,850,000 for fiscal year 2008, plus 20% per annum thereafter), or (ii) an amount reasonably necessary to fund current operating
expenses of such Subsidiaries (taking into account the income and assets of such Subsidiaries);” 
  

	 	11.	The Loan Agreement shall be amended by deleting the following definitions appearing in Section 13.1 thereof: 

 ““Maximum Dollar Amount” is $6,500,000.” 
 ““Obligations” are Borrower’s obligation to pay when due any debts, principal, interest, Bank Expenses and other
amounts Borrower owes Bank now or later, whether under this Agreement, the Loan Documents, or otherwise, including, without limitation, all obligations relating to letters of credit, cash management services, and foreign exchange contracts, if any,
and including interest accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of Borrower assigned to Bank, and the performance of Borrower’s duties under the Loan Documents.” 
 ““Quick Ratio Test” As used herein, the “Quick Ratio Test” will be deemed to be met if Borrower’s
Adjusted Quick Ratio according to its most recent financial statements received by Bank is equal to, or greater than, 1.25 to 1.00. As used herein, “Adjusted Quick Ratio” means the ratio of (A) Borrower’s unrestricted cash and
unrestricted Cash Equivalents maintained at Bank, plus the amount of Borrower’s Eligible Accounts, TO (B) the total of Borrower’s current liabilities (including all of the Obligations to Bank, including without limitation
(i) potential Obligations (whether or not contingent) in connection with Letters of Credit, FX Forward Contracts, and Cash Management Services, as determined

 
by Bank, and (ii) Term Loan principal payments due in the next twelve months), but not including non-refundable deferred revenue or maintenance deferred revenue.” 
 ““Revolving Line Maturity Date” is the earliest of (a) the first anniversary of the Effective Date or
(b) the occurrence of an Event of Default.” 
 and inserting in lieu thereof the following: 
 ““Maximum Dollar Amount” is $10,000,000.” 
 ““Obligations” are Borrower’s obligation to pay when due any debts, principal, interest, Bank Expenses and other
amounts Borrower owes Bank now or later, whether under this Agreement, the Loan Documents, the Growth Capital Loan Agreement or otherwise, including, without limitation, all obligations relating to letters of credit, cash management services, and
foreign exchange contracts, if any, and including interest accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of Borrower assigned to Bank, and the performance of Borrower’s duties under the Loan Documents.”

 ““Quick Ratio Test” As used herein, the “Quick Ratio Test” will be deemed to be met if
Borrower’s Adjusted Quick Ratio according to its most recent financial statements received by Bank is equal to, or greater than, 1.25 to 1.00. As used herein. “Adjusted Quick Ratio” means the ratio of (A) Borrower’s
unrestricted cash and unrestricted Cash Equivalents maintained at Bank, plus the amount of Borrower’s Eligible Accounts, TO (B) the total of Borrower’s current liabilities, but not including non-refundable deferred revenue or
maintenance deferred revenue.” 
 ““Revolving Line Maturity Date” is the earliest of
(a) November 30, 2008, or (b) the occurrence of an Event of Default.” 
  

	 	12.	The Loan Agreement shall be amended by inserting the following definitions, in alphabetical order, in Section 13.1 thereof: 

 ““Bookings” shall mean agreements signed by customers of the Borrower (including, without limitation, the
Borrower’s distributors and re-sellers) that will, within 90 days of signing, result in shipment of products and revenues or deferred revenues.” 
 ““Growth Capital Loan Agreement” is that certain Term Loan and Security Agreement between Borrower, Bank, and Gold Hill Venture Lending 03, L.P. dated as of November 30, 2007,
as may be amended from time to time.” 
 ““Minimum Monthly Interest” is defined in
Section 2.3(h).” 
 4. FEES. Borrower shall pay to Bank a modification fee equal to Fifty Thousand Dollars ($50,000.00), which
fee shall be due on the date hereof and shall be deemed fully earned as of the date hereof. Borrower shall also reimburse Bank for all legal fees and expenses incurred in connection with this amendment to the Existing Loan Documents. 
 5. RATIFICATION OF INTELLECTUAL PROPERTY SECURITY AGREEMENT. Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and
conditions of a certain Intellectual Property Security Agreement dated as of January 29, 2007 between Borrower and Bank, and acknowledges, confirms and agrees that

 
said Intellectual Property Security Agreement contains an accurate and complete listing of all Intellectual Property Collateral as defined in said Intellectual Property Security Agreement, shall
remain in full force and effect. 
 6. RATIFICATION OF REPRESENTATIONS AND WARRANTIES. Borrower hereby ratifies, confirms and reaffirms,
all and singular, the terms and disclosures contained in a certain Representations and Warranties dated as of January 9, 2007 between Borrower and Bank, and acknowledges, confirms and agrees the disclosures and information above Borrower
provided to Bank in the Representations and Warranties has not changed, as of the date hereof, except that Borrower has an additional subsidiary, Meru Networks International, Inc., a Delaware corporation. 
 7. AUTHORIZATION TO FILE. Borrower hereby authorizes Bank to file UCC financing statements without notice to Borrower, with all appropriate
jurisdictions, as Bank deems appropriate, in order to further perfect or protect Bank’s interest in the Collateral, including a notice that any disposition of the Collateral, by either the Borrower or any other Person, shall be deemed to
violate the rights of the Bank under the Code. 
 8. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever
necessary to reflect the changes described above. 
 9. RATIFICATION OF LOAN 17OCUMENTS. Borrower hereby ratifies, confirms, and
reaffirms all terms and conditions of all security or other collateral granted to the Bank, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations. 
 10. NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank
with respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and
Borrower hereby RELEASES Bank from any liability thereunder. 
 11. CONTINUING VALIDITY. Borrower understands and agrees that in
modifying the existing Obligations, Bank is relying upon Borrower’s representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms
of the Existing Loan Documents remain unchanged and in full force and effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future
modifications to the Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the
party is expressly released by Bank in writing. No maker will be released by virtue of this Loan Modification Agreement. 
 12. RIGHT OF
SET-OFF. In consideration of Bank’s agreement to enter into this Loan Modification Agreement, Borrower hereby reaffirms and hereby grants to Bank, a lien, security interest and right of set off as security for all Obligations to Bank,
whether now existing or hereafter arising upon and against all deposits, credits, collateral and property, now or hereafter in the possession, custody, safekeeping or control of Bank or any entity under the control of Silicon Valley Bank (including
a Bank subsidiary) or in transit to any of them. At any time after the occurrence and during the continuance of an Event of Default, without demand or notice, Bank may set off the same or any part thereof and apply the same to any liability or
obligation of Borrower even though unmatured and regardless of the adequacy of any other collateral securing the loan. ANY AND ALL RIGHTS TO REQUIRE BANK TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE
OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED. 
 13. JURISDICTION/VENUE. Borrower accepts for itself and in connection with its properties, unconditionally, the exclusive jurisdiction of any state or federal court of competent jurisdiction in the
State of California in any action, suit, or proceeding of any kind against it which arises out of or by reason of this Loan Modification Agreement. NOTWITHSTANDING THE FOREGOING, THE BANK SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING
AGAINST THE BORROWER OR ITS PROPERTY IN THE

 
COURTS OF ANY OTHER JURISDICTION WHICH THE BANK DEEMS NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON THE COLLATERAL OR TO OTHERWISE ENFORCE THE BANK’S RIGHTS AGAINST THE BORROWER OR ITS
PROPERTY. 
 14. COUNTERSIGNATURE. This Loan Modification Agreement shall become effective only when it shall have been executed by
Borrower and Bank. 
 [The remainder of this page is intentionally left blank] 

 This Loan Modification Agreement is executed as a sealed instrument under the laws of the
Commonwealth of Massachusetts as of the date first written above. 
  

							
	BORROWER:	 	BANK:
		
	MERU NETWORKS, INC.	 	SILICON VALLEY BANK
				
	By:	 	 /s/ Ihab Abu-Hakima
	 	By:	 	 /s/ Jean Lee

				
	Name:	 	 Ihab Abu-Hakima
	 	Name:	 	 Jean Lee

				
	Title:	 	 CEO
	 	Title:	 	 Relationship Manager

 SECOND LOAN MODIFICATION AGREEMENT 
 This Second Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of July 31, 2008, by and
between SILICON VALLEY BANK, a California corporation with a loan production office located at 3979 Freedom Circle, Suite 600, Santa Clara, California 95054 (“Bank”) and MERU NETWORKS, INC., a Delaware corporation
with its chief executive office located at 894 Ross Drive, Sunnyvale, California 94089 (“Borrower”). 
 1. DESCRIPTION OF
EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to a loan arrangement dated as of January 29, 2007, evidenced by, among other
documents, a certain Loan and Security Agreement dated as of January 29, 2007, between Borrower and Bank, as amended by that certain First Loan Modification Agreement dated as of November 30, 2007 (as amended, the “Loan
Agreement”). Capitalized terms used but not otherwise defied herein shall have the same meaning as in the Loan Agreement. 
 2.
DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement (together with any other collateral security granted to Bank, the “Security Documents”). Hereinafter, the
Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”. 
 3. DESCRIPTION OF CHANGE IN TERMS. 
  

	 	A.	Modifications to Loan Agreement. 

  

	 	1.	The Loan Agreement shall be amended by deleting the following Section 6.9(a) thereof, entitled “Minimum Bookings”: 

 “(a) Minimum Bookings. As of the last day of each quarter set forth below, achieve Bookings, of not less than the following
amounts: 
  

			
	 Period
	  	 Minimum Bookings

	January 1, 2008 through March 31, 2008	  	$15,000,000.00
	April 1, 2008 through June 30, 2008	  	$17,000,000.00
	July 1, 2008 through September 30, 2008	  	$20,000,000.00
	October 1, 2008 through December 31, 2008	  	$24,000,000.00
	During each quarter thereafter	  	80% of board approved quarterly bookings target”

 and inserting in lieu thereof the following: 
 “(a) Minimum Bookings. As of the last day of each quarter set forth below, achieve Bookings, of not less than the following
amounts: 
  

			
	 Period
	  	 Minimum Bookings

	January 1, 2008 through March 31, 2008	  	$15,000,000.00
	April 1, 2008 through June 30, 2008	  	$11,900,000.00
	July 1, 2008 through September 30, 2008	  	$14,875,000.00
	October 1, 2008 through December 31, 2008	  	$16,150,000.00
	During each quarter thereafter	  	80% of board approved quarterly bookings target”

	 	2.	The Loan Agreement shall be amended by deleting the following Section 6.9(b) thereof, entitled “Minimum Collections”: 

 “(b) Minimum Collections. Receive collections, based upon a rolling three-month average and tested as of the last day of each
month, of not less than: (i) $2,000,000.00, for each month from November 1, 2007 through March 31, 2008; (ii) $3,500,000.00, for each month from April 1, 2008 through June 30, 2008, and (iii) $4,500,000.00, for
each month from July 31, 2008, and thereafter.” 
 and inserting in lieu thereof the following: 
 “(b) Liquidity. Borrower’s unrestricted cash and Cash Equivalents plus the Availability Amount of at least Five Million
Dollars ($5,000,000.00), tested as of the last day of each month.” 
  

	 	3.	Bank hereby agrees that Borrower may deliver its (a) 2006 fiscal year end audited financial statements and (b) 2007 fiscal year end audited financial
statements to Bank on or before November 30, 2008. 

  

	 	B.	Waiver 

  

	 	1.	Bank hereby waives Borrower’s existing default under the Loan Agreement by virtue of Borrower’s failure to comply with the financial covenant set forth in
Section 6.9(a) thereof (Minimum Bookings) as of the quarter ending March 31, 2008. Bank’s waiver of Borrower’s compliance of said financial covenant shall apply only to the foregoing specific period. 

 4. FEES. Borrower shall pay to Bank a modification fee equal to Seven Thousand Five Hundred Dollars ($7,500.00), which fee shall be due on the date
hereof and shall be deemed fully earned as of the date hereof. Borrower shall also reimburse Bank for all legal fees and expenses incurred in connection with this amendment to the Existing Loan Documents. 
 5. RATIFICATION OF INTELLECTUAL PROPERTY SECURITY AGREEMENT. Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and
conditions of a certain Intellectual Property Security Agreement dated as of January 29, 2007 between Borrower and Bank, and acknowledges, confirms and agrees that said Intellectual Property Security Agreement contains an accurate and complete
listing of all Intellectual Property Collateral as defined in said Intellectual Property Security Agreement, shall remain in full force and effect. 
 6. RATIFICATION OF REPRESENTATIONS AND WARRANTIES. Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Representations and Warranties dated as of January 9, 2007
between Borrower and Bank, and acknowledges, confirms and agrees the disclosures and information above Borrower provided to Bank in the Representations and Warranties has not changed, as of the date hereof, except that Borrower has an additional
subsidiary. Meru Networks International, Inc., a Delaware corporation. 
 7. AUTHORIZATION TO FILE. Borrower hereby authorizes Bank to
file UCC financing statements without notice to Borrower, with all appropriate jurisdictions, as Bank deems appropriate, in order to further perfect or protect Bank’s interest in the Collateral, including a notice that any disposition of the
Collateral, by either the Borrower or any other Person, shall be deemed to violate the rights of the Bank under the Code. 
  

 2 

 8. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect
the changes described above. 
 9. RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and
conditions of all security or other collateral granted to the Bank, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations. 
 10. NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with respect to the Obligations, or otherwise, and
that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and Borrower hereby RELEASES Bank from any liability
thereunder. 
 11. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing Obligations, Bank is relying upon
Borrower’s representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in
full force and effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the Obligations. Nothing in this Loan
Modification Agreement shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly released by Bank in writing. Nu
maker will be released by virtue of this Loan Modification Agreement. 
 12. RIGHT OF SET-OFF. In consideration of Bank’s agreement
to enter into this Loan Modification Agreement, Borrower hereby reaffirms and hereby grants to Bank, a lien, security interest and right of set off as security for all Obligations to Bank, whether now existing or hereafter arising upon and against
all deposits, credits, collateral and property, now or hereafter in the possession, custody, safekeeping or control of Bank or any entity under the control of Silicon Valley Bank (including a Bank subsidiary) or in transit to any of them. At any
time after the occurrence and during the continuance of an Event of Default, without demand or notice, Bank may set off the same or any part thereof and apply the same to any liability or obligation of Borrower even though unmatured and regardless
of the adequacy of any other collateral securing the loan. ANY AND ALL RIGHTS TO REQUIRE BANK TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT
TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED. 
 13.
JURISDICTION/VENUE. Borrower accepts for itself and in connection with its properties, unconditionally, the exclusive jurisdiction of any state or federal court of competent jurisdiction in the State of California in any action, suit, or
proceeding of any kind against it which arises out of or by reason of this Loan Modification Agreement. NOTWITHSTANDING THE FOREGOING, THE BANK SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST THE BORROWER OR ITS PROPERTY IN THE COURTS
OF ANY OTHER JURISDICTION WHICH THE BANK DEEMS NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON THE COLLATERAL OR TO OTHERWISE ENFORCE TI-IE BANK’S RIGHTS AGAINST THE BORROWER OR ITS PROPERTY. 
 14. COUNTERSIGNATURE. This Loan Modification Agreement shall become effective only when it shall have been executed by Borrower and Bank. 

[The remainder of this page is intentionally left blank] 
  

 3 

 This Loan Modification Agreement is executed as a sealed instrument under the laws of the
Commonwealth of Massachusetts as of the date first written above. 
  

							
	BORROWER:	 	BANK:
		
	MERU NETWORKS, INC.	 	SILICON VALLEY BANK
				
	By:	 	 /s/ Brett White
	 	By:	 	 /s/ Jean Lee

				
	Name:	 	 Brett White
	 	Name:	 	 Jean Lee

				
	Title:	 	 CFO
	 	Title:	 	 Relationship Manager

  

 4 

 SILICON VALLEY BANK 
 INVOICE FOR LOAN CHARGES 
  

			
	BORROWER:	  	MERU NETWORKS, INC.
		
	LOAN OFFICER:	  	Ms. Jean Lee
		
	DATE:	  	

  

				
	 Modification Fee
	  	$	7,500.00
		
	TOTAL FEES DUE	  	$	7,500.00

 Please indicate the method of payment: 
 { } A check for the total amount is attached. 
 {X} Debit DDA              for the total amount. 
 { } Loan proceeds 
  

			
	MERU NETWORKS, INC.
		
	By:	 	 /s/ Brett White

		 	Authorized Signer
	
	  

	Silicon Valley Bank (Date)
	Account Officer’s Signature

  

 5 

 THIRD LOAN MODIFICATION AGREEMENT 
 This Third Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of November __, 2008, by and
between SILICON VALLEY BANK, a California corporation with a loan production office located at 3979 Freedom Circle, Suite 600, Santa Clara, California 95054 (“Bank”) and MERU NETWORKS, INC., a Delaware corporation with its
chief’ executive office located at 1309 S. Mary Avenue, Sunnyvale, California 94087 (“Borrower”). 
 1. DESCRIPTION OF
EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to a loan arrangement dated as of January 29, 2007, evidenced by, among other
documents, a certain Loan and Security Agreement dated as of January 29, 2007, between Borrower and Bank, as amended by that certain First Loan Modification Agreement dated as of November 30, 2007 and that certain Second Loan Modification
Agreement dated as of July 30, 2008 (as amended, the “Loan Agreement”). Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan Agreement. 
 2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement (together with any other
collateral security granted to Bank, the “Security Documents”). Hereinafter, the Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents.”

 3. DESCRIPTION OF CHANGE IN TERMS 
 Modifications to Loan Agreement 
  

	 	1.	The Loan Agreement shall be amended by deleting the following definitions appearing in Section 13.1 thereof: 

 ““Revolving Line Maturity Date” is the earliest of (a) November 30, 2008, or (b) the occurrence of an
Event of Default.” 
 and inserting in lieu thereof the following: 
 ““Revolving Line Maturity Date” is the earliest of (a) January 30, 2009, or (b) the occurrence of an
Event of Default.” 
  

	 	2.	Bank hereby agrees that Borrower may deliver its (a) 2006 fiscal year end audited financial statements and (b) 2007 fiscal year end audited financial
statements to Bank on or before January 30, 2009. 

 4. FEES. Borrower shall pay to Bank a modification fee equal to
Eight Thousand Five Hundred Dollars ($8,500.00), which fee shall be due on the date hereof and shall be deemed fully earned as of the date hereof. Borrower shall also reimburse Bank for all legal fees and expenses incurred in connection with this
amendment to the Existing Loan Documents, 
 5. RATIFICATION OF INTELLECTUAL PROPERTY SECURITY AGREEMENT. Borrower hereby ratifies,
confirms and reaffirms, all and singular, the terms and conditions of a certain Intellectual Property Security Agreement dated as of January 29, 2007 between Borrower and Bank, and acknowledges, confirms and agrees that said Intellectual
Property Security Agreement contains an accurate and complete listing of all Intellectual Property Collateral as defined in said Intellectual Property Security Agreement, shall remain in full force and effect. 
 6. RATIFICATION OF REPRESENTATIONS AND WARRANTIES. Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures
contained in a certain Representations and Warranties dated as of January 9, 2007 between Borrower and Bank, and acknowledges, confirms and agrees the disclosures and information above Borrower provided to Bank in the Representations and
Warranties has not changed, as of the

 
date hereof; except that Borrower has an additional subsidiary, Meru Networks International, Inc., a Delaware corporation. 
 7. AUTHORIZATION TO FILE. Borrower hereby authorizes Bank to file UCC financing statements without notice to Borrower, with all appropriate jurisdictions, as Bank deems appropriate, in order to
further perfect or protect Bank’s interest in the Collateral, including a notice that any disposition of the Collateral, by either the Borrower or any other Person, shall be deemed to violate the rights of the Bank under the Code. 

8. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described above. 
 9. RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and conditions of’ all security or other
collateral granted to the Bank, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations. 
 10. NO
DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any
offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and Borrower hereby RELEASES Bank from any liability thereunder. 
 11. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing Obligations, Bank is relying upon Borrower’s
representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force and
effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the Obligations. Nothing in this Loan Modification Agreement
shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly released by Bank in writing. No maker will be released by
virtue of this Loan Modification Agreement. 
 12. RIGHT OF SET-OFF. In consideration of Bank’s agreement to enter into this Loan
Modification Agreement, Borrower hereby reaffirms and hereby grants to Bank, a lien, security interest and right of set off as security for all Obligations to Bank, whether now existing or hereafter arising upon and against all deposits, credits,
collateral and property, now or hereafter in the possession, custody, safekeeping or control of Bank or any entity under the control of Silicon Valley Bank (including a Bank subsidiary) or in transit to any of them. At any time after the occurrence
and during the continuance of an Event of Default, without demand or notice, Bank may set off the same or any part thereof and apply the same to any liability or obligation of Borrower even though unmatured and regardless of the adequacy of any
other collateral securing the loan. ANY AND ALL RIGHTS TO REQUIRE BANK TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS,
CREDITS OR OTHER PROPERTY OF BORROWER, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED. 
 13. JURISDICTION/VENUE. Borrower
accepts for itself and in connection with its properties, unconditionally, the exclusive jurisdiction of any state or federal court of competent jurisdiction in the State of California in any action, suit, or proceeding of any kind against it which
arises out of or by reason of this Loan Modification Agreement. NOTWITHSTANDING THE FOREGOING, THE BANK SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST THE BORROWER OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION WHICH THE
BANK DEEMS NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON THE COLLATERAL OR TO OTHERWISE ENFORCE THE BANK’S RIGHTS AGAINST THE BORROWER OR ITS PROPERTY. 
 14. COUNTERSIGNATURE. This Loan Modification Agreement shall become effective only when it shall have been executed by Borrower and Bank 
  

 2 

 [The remainder of this page is intentionally left blank] 
  

 3 

 This Loan Modification Agreement is executed as a sealed instrument under the laws of the
State of California as of the date first written above. 
  

							
	BORROWER:	 	BANK:
		
	MERU NETWORKS, INC.	 	SILICON VALLEY BANK
				
	By:	 	 /s/ Brett White
	 	By:	 	 /s/ Jean Lee

				
	Name:	 	 Brett White
	 	Name:	 	 Jean Lee

				
	Title:	 	 CFO
	 	Title:	 	 Relationship Manager

 56120/1409 
 1067882.2 
  

 4 

 SILICON VALLEY BANK INVOICE FOR LOAN CHARGES 
  

			
	BORROWER:	  	MERU NETWORKS, INC.
		
	LOAN OFFICER:	  	Ms. Jean Lee
		
	DATE:	  	November 28, 2008

  

				
	 Modification Fee
	  	$	8,500.00
		
	TOTAL FEES DUE	  	$	8,500.00

 Please indicate the method of payment: 
 { } A check for the total amount is attached. 
 {X} Debit DDA              for the total amount. 
 { } Loan proceeds 
  

			
	MERU NETWORKS, INC.
		
	By:	 	 /s/ Brett White

		 	Authorized Signer
	
	  

	Silicon Valley Bank (Date)
	Account Officer’s Signature

 (56120/1409) 
 1093074.1 
  

 5 

 FOURTH LOAN MODIFICATION AGREEMENT 
 This Fourth Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of February 26, 2009, and is
effective as of January 30, 2009, by and between SILICON VALLEY BANK, a California corporation with a loan production office located at 3979 Freedom Circle, Suite 600, Santa Clara, California 94054 (“Bank”) and
MERU NETWORKS, INC., a Delaware corporation with its chief executive office located at 1309 S. Mary Avenue, Sunnyvale, California 94087 (“Borrower”). 
 1. DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to a loan arrangement
dated as of January 29, 2007, evidenced by, among other documents, a certain Loan and Security Agreement dated as of January 29, 2007, between Borrower and Bank, as amended by a certain First Loan Modification Agreement dated as of
November 30, 2007, between Borrower and Bank, as further amended by a certain Second Loan Modification Agreement dated as of July 30, 2008, between Borrower and Bank, and as further amended by a certain Third Loan Modification Agreement
dated as of November 30, 2008, between Borrower and Bank (as amended, the “Loan Agreement”). Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan Agreement. 
 2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement (together with any other
collateral security granted to Bank, the “Security Documents”). Hereinafter, the Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”.

 3. DESCRIPTION OF CHANGE IN TERMS. 
  

	 	A.	Modifications to Loan Agreement. 

  

	 	1.	The Loan Agreement shall be amended by deleting Section 2.3(h) thereof. 

  

	 	2.	The Loan Agreement shall be amended by deleting the following appearing as Section 6.9(a) thereof (entitled “Minimum Bookings”) in its entirety:

 “ (a) Minimum Bookings. As of the last day of each quarter set forth below, achieve Bookings,
of not less than the following amounts: 
  

			
	 Period
	  	 Minimum Bookings

	January 1, 2008 through March 31, 2008	  	$15,000,000.00
	April 1, 2008 through June 30, 2008	  	$11,900,000.00
	July 1, 2008 through September 30, 2008	  	$14,875,000.00
	October 1, 2008 through December 31, 2008	  	$16,150,000.00
	During each quarter thereafter	  	80% of board approved quarterly bookings target”

 and inserting in lieu thereof the following: 
 “ (a) Minimum Bookings. As of the last day of each quarter set forth below, achieve Bookings, of not less than the
following amounts: 
  

			
	 Period
	  	 Minimum Bookings

	January 1, 2008 through March 31, 2008	  	$15,000,000.00
	April 1, 2008 through June 30, 2008	  	$11,900,000.00
	July 1, 2008 through September 30, 2008	  	$14,875,000.00
	October 1, 2008 through December 31, 2008	  	$16,150,000.00
	January 1, 2009 through March 31, 2009	  	$10,200,000.00

 In addition, (i) Borrower shall provide Bank with updated operating budgets and
financial projections in a form acceptable to Bank in its sole discretion on or before March 15, 2009, and (ii) Borrower and Bank shall use best efforts to mutually agree upon a Minimum Bookings covenant for the remainder of
Borrower’s fiscal year ending December 31, 2009; provided, however, in the event that Borrower and Bank do not agree in writing to same on or before March 31, 2009, then, notwithstanding anything to the contrary in this Agreement, all
Obligations shall be due and payable in full on such date. The foregoing shall not be construed in any way as an agreement on behalf of Bank to extend the Revolving Line Maturity Date. Notwithstanding the foregoing, no provision of this
Section 6.9(a) shall constitute an agreement by Bank to extend the Revolving Line Maturity Date.” 
  

	 	3.	The Loan Agreement shall be amended by deleting Section 6.9(b) thereof (entitled “Liquidity”) in its entirety. 

  

	 	4.	The Loan Agreement shall be amended by inserting the following new Section 8.10 immediately following Section 8.9 thereof: 

 “8.10 2009 Equity Event. The 2009 Equity Event does not occur on or before March 15, 2009.” 
  

	 	5.	The Loan Agreement shall be amended by deleting the following text appearing in the definition of “Eligible Accounts” in Section 13.1 thereof:

 “    (1) Accounts owing from an Account Debtor with respect to which Borrower has
received deferred revenue for maintenance and support (but only to the extent of such deferred revenue).” 
 and inserting
in lieu thereof the following: 
 “    (1) Accounts owing from an Account Debtor with respect to which
Borrower has received deferred revenue for maintenance and support (but only to the extent of such deferred revenue and provided further that only fifty percent (50.0%) of such deferred revenue shall be ineligible);” 
  

	 	6.	The Loan Agreement shall be amended by deleting the following definition appearing in Section 13.1 thereof: 

 “    “Revolving Line Maturity Date” is the earliest of (a) January 30, 2009, or
(b) the occurrence of an Event of Default.” 

 and inserting in lieu thereof the following: 
 “    “Revolving Line Maturity Date” is the earliest of (a) March 31, 2009, or
(b) the occurrence of an Event of Default.” 
  

	 	7.	The Loan Agreement shall be amended by inserting the following new definitions to appear alphabetically in Section 13.1 thereof: 

 “    “2009 Effective Date” is February 26, 2009.” 
 “    “2009 Equity Event” is the receipt of net cash proceeds by Borrower from the closing of an
equity round of financing with investors acceptable to Bank in its sole discretion, after the 2009 Effective Date but prior to March 15, 2009, in the amount of at least Six Million Dollars ($6,000,000.00).” 
  

	 	8.	The Compliance Certificate appearing as Exhibit E to the Loan Agreement is hereby replaced with the Compliance Certificate attached as Exhibit A
hereto. 

  

	 	B.	Acknowledgment of Default; Forbearance by Bank. Borrower acknowledges that it is currently in default under the Loan Agreement by its failure to comply with the
financial covenant set forth in Section 6.9(a) thereof (“Minimum Bookings”) for the period from October 1, 2008 through December 31, 2008 (the “Existing Default”). Bank, however, hereby agrees to forbear from
exercising its rights and remedies with respect to the Existing Default until the earlier to occur of (i) an Event of Default under the Loan Agreement (other than the Existing Default), or (ii) March 15, 2009. Bank hereby agrees to waive
the Existing Default, provided no default other than the Existing Default has occurred or is continuing, upon the occurrence of the 2009 Equity Event. Borrower hereby acknowledges and agrees that except as specifically provided herein, nothing in
this Section or anywhere in this Loan Modification Agreement shall be deemed or otherwise construed as a waiver by the Bank of any of its rights and remedies pursuant to the Existing Loan Documents, applicable law or otherwise.

 4. FEES. Borrower shall pay to Bank a modification fee equal to Fifty Thousand Dollars ($50,000.00), which fee shall be
deemed fully earned as of the date hereof and shall be due and payable upon the earliest of (a) the occurrence of the 2009 Equity Event, (b) March 15, 2009, and (c) the occurrence of an Event of Default. Borrower shall also
reimburse Bank for all legal fees and expenses incurred in connection with this amendment to the Existing Loan Documents. 
 5. RATIFICATION
OF INTELLECTUAL PROPERTY SECURITY AGREEMENT. Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and conditions of a certain Intellectual Property Security Agreement dated as of January 29, 2007, between Borrower
and Bank, and acknowledges, confirms and agrees that said Intellectual Property Security Agreement contains an accurate and complete listing of all Intellectual Property Collateral as defined in said Intellectual Property Security Agreement, which
shall remain in full force and effect. 
 6. RATIFICATION OF REPRESENTATIONS AND WARRANTIES. Borrower hereby ratifies, confirms and
reaffirms, all and singular, the terms and disclosures contained in a certain Representations and Warranties dated as of January 9, 2007, between Borrower and Bank, and acknowledges, confirms and agrees the disclosures and information above
Borrower provided to Bank in the Representations and Warranties has not changed as of the date hereof, except that Borrower has an additional subsidiary, Meru Networks International, Inc., a Delaware corporation. 
 7. AUTHORIZATION TO FILE. Borrower hereby authorizes Bank to file UCC financing statements without notice to Borrower, with all appropriate
jurisdictions, as Bank deems appropriate, in order to further perfect or protect Bank’s Interest in the Collateral, including a notice that any disposition of the Collateral, by either the Borrower or any other Person, shall be deemed to
violate the rights of the Bank under the Code. 

 8. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect
the changes described above. 
 9. RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and
conditions of all security or other collateral granted to the Bank and confirms that the indebtedness secured thereby includes, without limitation, the Obligations. 
 10. NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with respect to the Obligations, or otherwise, and
that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and Borrower hereby RELEASES Bank from any liability
thereunder. 
 11. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing Obligations, Bank is relying upon
Borrower’s representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in
full force and effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the Obligations. Nothing in this Loan
Modification Agreement shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the part is expressly released by Bank in writing. No maker
will be released by virtue of this Loan Modification Agreement. 
 12. RIGHT OF SET-OFF. In consideration of Bank’s agreement to
enter into this Loan Modification Agreement, Borrower hereby reaffirms and hereby grants to Bank, a lien, security interest and right of set off as security for all Obligations to Bank, whether now existing or hereafter arising upon and against all
deposits, credits, collateral and property, now or hereafter in the possession, custody, safekeeping or control of Bank or any entity under the control of Bank (including a Bank subsidiary) or in transit to any of them. At any time after the
occurrence and during the continuance of any Event of Default, without demand or notice, Bank may set off the same or any part thereof and apply the same to any liability or obligation of Borrower event though unmatured and regardless of the
adequacy of any other collateral securing the loan. ANY AND ALL RIGHTS TO REQUIRE BANK TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO
SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED. 
 13.
JURISDICTION/VENUE. Borrower accepts for itself and in connection with its properties, unconditionally, the exclusive jurisdiction of any state or federal court of competent jurisdiction in the State of California in any action, suit, or
proceeding of any kind against it which arises out of or by reason of this Loan Modification Agreement. NOTWITHSTANDING THE FOREGOING, THE BANK SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST THE BORROWER OR ITS PROPERTY IN THE COURTS
OF ANY OTHER JURISDICTION WHICH THE BANK DEEMS NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON THE COLLATERAL OR TO OTHERWISE ENFORCE THE BANK’S RIGHTS AGAINST THE BORROWER OR ITS PROPERTY. 
 14. COUNTERSIGNATURE. This Loan Modification Agreement shall become effective only when it shall have been executed by Borrower and Bank. 

[The remainder of this page is intentionally left blank] 

 This Loan Modification Agreement is executed under the laws of the State of California as of
the date first written above. 
  

							
	BORROWER:	 	BANK:
		
	MERU NETWORKS, INC.	 	SILICON VALLEY BANK
				
	By:	 	 /s/ Brett White
	 	By:	 	 /s/ Jean Lee

				
	Name:	 	 Brett White
	 	Name:	 	 Jean Lee

				
	Title:	 	 CFO
	 	Title:	 	 Relationship Manager

 FIFTH LOAN MODIFICATION AGREEMENT 
 This Fifth Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of April 27, 2009, and is
effective as of March 31, 2009, by and between SILICON VALLEY BANK, a California corporation with loan production office located at 3979 Freedom Circle, Suite 600, Santa Clara, California 95054 (“Bank”) and MERU NETWORKS,
INC., a Delaware corporation with its chief executive office located at 1309 S. Mary Avenue, Sunnyvale, California 94087 (“Borrower”). 
 1. DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to a loan arrangement dated of January 29, 2007,
evidenced by, among other documents, a certain Loan and Security Agreement dated as of January 29, 2007, between Borrower and Bank, as amended by a certain First Loan Modification Agreement dated as of November 30, 2007, between Borrower
and Bank, as further amended by a certain Second Loan Modification Agreement dated as of July 30, 2008, between Borrower and Bank, as further amended by a certain Third Loan Modification Agreement dated as of November 30, 2008, between
Borrower and Bank, and as further amended by a certain Fourth Loan Modification Agreement dated as of February 26, 2009, between Borrower and Bank (as amended, the “Loan Agreement”). Capitalized terms used but not otherwise defined
herein shall have the same meaning as in the Loan Agreement. 
 2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by
the Collateral as described in the Loan Agreement (together with any other collateral security granted to Bank, the “Security Documents”). Hereinafter, the Security Documents, together with all other documents evidencing or securing the
Obligations, shall be referred to as the “Existing Loan Documents”. 
 3. DESCRIPTION OF CHANGE IN TERMS: 
  

	 	A.	Modifications to Loan Agreement. 

  

	 	1.	The Loan Agreement shall be amended by deleting the following text appearing in Section 2.1.3 thereof (entitled “Foreign Exchange Sublimit”):

 “FX Forward Contracts shall have a Settlement Date of at least one (1) FX Business Day after the
contract date and shall be subject to a reserve of ten percent (10%) of each outstanding FX Forward Contract in a maximum aggregate amount equal to $2,000,000 (the “FX Reserve”).” 
 and inserting in lieu thereof the following: 
 “FX Forward Contracts shall have a Settlement Date of at least one (1) FX Business Day after the contract date and shall be subject to a reserve of ten percent (10%) of each outstanding FX
Forward Contract in a maximum aggregate amount equal to $3,500,000 (the “FX Reserve”): 
  

	 	2.	The Loan Agreement shall be amended by deleting the following text appearing in Section 2.1.4 thereof (entitled “Cash Management Services Sublimit”):

 “Subject to the Overall Sublimit in Section 2.1.5 below, Borrower may use up to
$2,000,000 (the “Cash Management Services Sublimit”) of the Availability Amount for Bank’s cash management services which may include merchant services, direct deposit of payroll, business credit card, and check cashing
services identified in Bank’s various cash management services agreements (collectively, the “Cash Management Services”).” 
 and inserting in lieu thereof the following: 
 “Subject to the Overall Sublimit in Section 2.1.5 below,
Borrower may use up to $3,500,000 (the “Cash Management Services Sublimit”) of the Availability Amount for Bank’s cash management services which may include merchant services, direct deposit of payroll, business credit card,
and check cashing services identified in Bank’s various cash management services (collectively, the “Cash Management Service’).” 

	 	3.	The Loan Agreement shall be amended by deleting the following appearing in Section 2.1.5 thereof (entitled “Overall Aggregate Sublimit”):

 “    2.1.5 Overall Aggregate Sublimit. In no event shall the total amount of
(i) outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letters of Credit Reserve), and (ii) the FX Reserve, and (iii) the amount of the Availability Amount utilized for Cash Management Services,
at any time exceed $5,000,000 in the aggregate (the “Overall Sublimit”).” 
 and inserting in lieu thereof the
following: 
 “    2.1.5 Overall Aggregate Sublimit. In no event shall the total amount of
(i) outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letters of Credit Reserve), and (ii) the FX Reserve, and (iii) the amount of the Availability Amount utilized for Cash Management Services,
at any time exceed $3,500,000 in the aggregate (the “Overall Sublimit”).” 
  

	 	4.	The Loan Agreement shall be amended by deleting the following text appearing in Section 2.3(a)(i) thereof (entitled “Advances”):

 “    (i) Advances. Subject to Section 2.3(b), the amounts outstanding
under the Revolving Line shall accrue interest at a per annum rate equal to the greater of (a) the “Prime Rate” in effect from time to little plus 1.00% per annum and (b) eight and one half of one percent (8.50%);
provided that if the Quick Ratio Test is not met, the interest rate applicable to the Obligations shall be a per annum rate equal to the greater of: (a) the “Prime Rate” in effect from time to time plus 2.00% per annum and
(b) nine and one half of one percent (9.50%).” 
 and inserting in lieu thereof the following: 
 “    (i) Advances. Subject to Section 2.3(b), on and after 2009 Effective Date No. 2, the amounts
outstanding under the Revolving Line shall accrue interest at a per annum rate equal to “Prime Rate” in effect from time, plus 1.50% per annum; provided that if the Quick Ratio Test is not met, the interest rate applicable to
the Obligations shall be a per annum rate equal to the “Prime Rate” in effect from time to time plus 2.50% per annum.” 
  

	 	5.	The Loan Agreement shall be amended by inserting the following new Section 2.3(h) thereto (entitled “Minimum Monthly Interest”) to appear immediately
following the existing Section 2.3(g) thereof (entitled “Payment; Interest Computation; Float Charge”): 

 “(b) Minimum Monthly Interest. In the event the aggregate amount of interest earned by Bank in any calendar month (exclusive of any collateral monitoring fees, unused line fees, or any other fees and charges hereunder) is less
than interest calculated based upon $2,000,000 outstanding under the

  

 2 

 
Revolving Line with respect to each month (the “Minimum Monthly Interest”), Borrower shall pay Bank an mount payable on the last day of such month, in an amount equal to the
(i) Minimum Monthly Interest minus (ii) the aggregate amount of all interest earned by Bank (exclusive of any unused line fees, or any other fees and charges hereunder) in such month. Notwithstanding the foregoing, no amount shall be due
and payable by Borrower pursuant to this Section 2.3(h) during any calendar month in which Bank determines, in its sole discretion, that Borrower has maintained greater than or equal to Four Million Dollars ($4,000,000.00) in unrestricted cash
in an operating account with Bank at all times during such calendar month,” 
  

	 	6.	The Loan Agreement shall be amended by deleting the following appearing in Section 6.9(a) (entitled “Minimum Bookings”) in its entirely:

 “    (a) Minimum Bookings. As of the last day of each quarter set forth below,
achieve Bookings, of not less than the following amounts. 
  

			
	 Period
	  	 Minimum Bookings

	January 1, 2008 through March 31,2008	  	$15,000,000.00
	April 1, 2008 through June 30, 2008	  	$11,900,000.00
	July 1, 2008 through September 30, 2008	  	$14,875,000.00
	October 1 2008 through December 31, 2008	  	$16,150,000.00
	January 1, 2009 through March 31, 2009	  	$10,200,000.00

 In addition, (i) Borrower shall provide Bank with updated operating budgets and
financial projections in form acceptable to Bank in its sole discretion on or before March 15, 2009, and (ii) Borrower and Bank shall use best efforts to mutually agree upon a Minimum Bookings covenant for the remainder of Borrower’s
fiscal year ending December 31, 2009; provided, however, in the even that Borrower and Bank do not agree in writing to same on or before March 31, 2009, then, notwithstanding anything to the contrary in this Agreement, all Obligations
shall be due and payable in full on such date. The foregoing shall not be construed in any way as an agreement on behalf of Bank to extend the Revolving Line Maturity Date. Notwithstanding the foregoing, no provision of this Section 6.9(a)
shall constitute an agreement by Bank to extend the Revolving Line Maturity Date.” 
 and inserting in lieu thereof the
following: 
 “    (a) Minimum Bookings. As of the last day of each quarter set forth below,
achieve Bookings, of not less than the following amounts. 
  

			
	 Period
	  	 Minimum Bookings

	January 1, 2008 through March 31,2008	  	$15,000,000,00
	April 1, 2008 through June 30, 2008	  	$11,900,000 00
	July 1, 2008 through September 30, 2008	  	$14,875,000.00
	October 1 2008 through December 31, 2008	  	$16,150,000.00
	January 1, 2009 through March 31, 2009	  	$10,200,000.00
	April 1, 2009 through June 30, 2009	  	$10,400,000.00
	July 1, 2009 through September 30, 2009	  	$12,000,000.00
	October 1 2009 through December 31, 2009	  	$13,600,000.00

  

 3 

 In addition, (i) Borrower shall provide Bank with updated operating budgets and
financial projections in form acceptable to Bank in its sole discretion on or before January 31, 2010, and (ii) Borrower and Bank shall use best efforts to mutually agree in good faith upon a Minimum Bookings covenant for Borrower’s
fiscal quarter ending March 31, 2010; provided, however, in the even that Borrower and Bank do not agree in writing to same for any reason, in each of their sole and absolute discretion, on or before January 31, 2010, then, notwithstanding
anything to the contrary in this Agreement, all Obligations shall be due and payable in full on such date. The foregoing shall not be construed in any way as an agreement on behalf of Bank to extend the Revolving Line Maturity Date. Notwithstanding
the foregoing, no provision of this Section 6.9(a) shall constitute an agreement by Bank to extend the Revolving Line Maturity Date.” 
  

	 	7.	The Loan Agreement shall be amended by inserting the following new Section 6.9(b) thereto (entitled “Adjusted Quick Ratio”) to appear immediately
following the existing Section 6.9(a) thereof (entitled “Minimum Bookings”): 

 “    (b) Adjusted Quick Ratio. Commencing with the month ended March 31, 2009, an Adjusted Quick Ratio of at least 0.70:1.00.” 
  

	 	8.	The Loan Agreement shall be amended by inserting the following new definition to appear alphabetically in Section 13.1 thereof: 

 “    “2009 Effective Date No. 2” is March 31, 2009.” 
  

	 	9.	The Loan Agreement shall be amended by deleting the following definitions appearing in Section 13.1 thereof: 

 “    “Adjusted Quick Ratio” is defined in the definition of “Quick Ratio Test”
below.” 
 “    “Maximum Dollar Amount” is $10,000,000.” 
 “    “Quick Ratio Test” As used herein, the “Quick Ratio Test” will be deemed to
be met if Borrower’s Adjusted Quick Ratio according to its most recent financial statements received by Bank is equal to, .or greater than, 1.25 to 1.00. As used herein, “Adjusted Quick Ratio” means the ratio of
(A) Borrower’s unrestricted cash and unrestricted Cash Equivalents maintained at Bank, plus the amount of Borrower’s Eligible Accounts, TO (B) the total of Borrower’s current liabilities, but not including
non-refundable deferred revenue or maintenance deferred revenue.” 
  

 4 

 “    “Revolving Line Maturity Date” is the
earliest of (a) March 31, 2009, or (b) the occurrence of an Event of Default.” 
 and inserting in lieu
thereof the following: 
 “    “Adjusted Quick Ratio” means the ratio of (A) Borrower’s unrestricted cash and unrestricted Cash
Equivalents maintained at Bank, plus the amount of Borrower’s billed accounts receivable, TO (B) the total of Borrower’s current liabilities, but not including non-refundable deferred revenue or maintenance deferred
revenue.” 
 “    “Maximum Dollar Amount” is $7,000,000.” 
 “    “Quick Ratio Test” As used herein, the “Quick Ratio Test” will be deemed to be met
if Borrower’s Adjusted Quick Ratio according to its most recent financial statements received by Bank is equal to, or greater than 1.25 to 1.00.” 
 “    “Revolving Line Maturity Date” is the earliest of (a) March 30, 2010, or (b) the occurrence of an Event of Default.” 
  

	 	10.	The Compliance Certificate appearing as Exhibit E to the Loan Agreement is hereby replaced with the Compliance Certificate attached as Exhibit A
hereto. 

 4. FEES. Borrower shall pay to Bank a commitment fee equal to Fifty Nine Thousand Five Hundred Dollars
($59,500.00), which fee shall be due on the date hereof and shall be deemed fully earned as of the date hereof. Borrower shall also reimburse Bank for all legal fees and expense’s incurred in connection with this amendment to the Existing Loan
Documents. 
 5. RATIFICATION OF INTELLECTUAL PROPERTY SECURITY AGREEMENT. Borrower hereby ratifies, confirms and reaffirms, all and
singular, the terms and conditions of a certain Intellectual Property Security Agreement dated as of January 29, 2007 between Borrower and Bank, and acknowledges, confirms and agrees that said Intellectual Property Security Agreement contains
an accurate and complete listing of Intellectual Property Collateral as defined in said intellectual Property Security Agreement, which shall remain in full force and effect. 
 6. RATIFICATION OF REPRESENTATIONS AND WARRANTIES. Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Representations and
Warranties dated as of January 9, 2007 between Borrower and Bank and acknowledges, confirms and agrees the disclosures and information above however provided to Bank in the Representations and Warranties has not changed, as of the date hereof,
except that Borrower has an additional subsidiary, Meru Networks International, Inc., a Delaware corporation. 
 7.
AUTHORIZATION TO FILE. Borrower hereby authorizes Bank to file UCC financing statements without notice to Borrower, with all appropriate jurisdictions, as Bank deems .appropriate, in order to further perfect or protect Bank’s interest in the Collateral, including a notice that any
disposition of the Collateral by either Borrower or any other Peron, shall be deemed to violate the rights of Bank under the Code. 
 8.
CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described above. 
 9.
RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms and reaffirms all terms and conditions of all security or other collateral granted to Bank and confirms that. the indebtedness secured thereby includes, without limitation,
the Obligations. 
  

 5 

 10. NO DEFENSES OF BORROWER. Burrower hereby acknowledges and agrees that Borrower has no offsets.
defenses, claims, or counterclaims against Bank with respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in
equity all of them are hereby expressly WAIVED and Borrower hereby RELEASES Bank from any liability thereunder. 
 11. CONTINUING
VALIDITY. Borrower understands and agrees that in modifying the existing Obligations, Bank is relying upon Borrower’s representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified
pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force and effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in
no way shall obligate Bank to make any future modifications to the Obligations. Nothing in this, Loan Modification Agreement shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all
makers of Existing Loan Documents, unless the party is expressly released by Bank in writing. No maker will be released by virtue of this Loan Modification Agreement. 
 12. RIGHT OF SET-OFF. In consideration of Bank’s agreement to enter into this Loan Modification Agreement, Borrower hereby reaffirms and hereby grants to Bank, a lien, security interest and
right of set off as security for all Obligations to Bank, whether now existing or hereafter arising upon and against all deposits, credits, collateral and property, now or hereafter in the possession, custody, safekeeping or control of Bank or any
entity under the control of Bank (including a Bank subsidiary) or in transit to any of them. At any time after the occurrence and during the continuance of an Event of Default, without demand or notice, Bank may set off the same or any part thereof
and apply the same to any liability or obligation of Borrower even though unmatured and regardless of the adequacy of any other collateral securing the loan. ANY AND ALL RIGHTS TO REQUIRE BANK TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY
OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OR SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAVED. 
 13. JURISDICTION/VENUE. Borrower accepts for itself and in connection with its properties, unconditionally, the exclusive jurisdiction of any state
or federal court of competent jurisdiction in the Stale of California in any action, suit, or proceeding of any kind against it which arises out of or by reason of this Loan Modification Agreement. NOTWITHSTANDING THE FOREGOING, BANK SHALL HAVE THE
RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST BORROWER OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION WHICH BANK DEEMS NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON THE COLLATERAL OR TO OTHERWISE ENFORCE BANK’S RIGHTS AGAINST
BORROWER OR ITS PROPERTY. 
 14. CONFIDENTIALITY. Bank may use confidential information for the development of databases, reporting
purposes, and market analysis, so long as such confidential information is aggregated and anonymized prior to distribution unless otherwise expressly permitted by Borrower. The provisions of the immediately preceding sentence shall survive the
termination of the Loan Agreement. 
 15. COUNTERSIGNATURE. This Loan Modification Agreement shall become effective only when it shall
have been executed by Borrower and Bank. 
 [The remainder of this page is intentionally left blank 
  

 6 

 This Loan Modification Agreement is executed under the laws of the State of California as of
the date first written above. 
  

							
	BORROWER:	 	BANK:
		
	MERU NETWORKS, INC.	 	SILICON VALLEY BANK
				
	By:	 	 /s/ Brett White
	 	By:	 	 /s/ Jean Lee

				
	Name:	 	 Brett White
	 	Name:	 	 Jean Lee

				
	Title:	 	 CFO
	 	Title:	 	 Relationship Manager

  

 7Sublease Agreement

 Exhibit 10.7 
 SUBLEASE AGREEMENT 
 THIS SUBLEASE AGREEMENT (this
“Sublease”) is entered into this 20th day of April, 2007 (“Effective Date”) by and between Verity, Inc. (“Sublessor”) and Meru Networks, Inc. (“Sublessee”). 
 RECITALS 
 A. Ross Drive Investors, a California general partnership, and David J. Brown, predecessors in interest to Hines VAF No Cal Properties LP (“Landlord”) and Sublessor are parties to that certain Lease Agreement, dated as of
January 22, 1996, together with the Summary of Basic Lease Terms, the First Addendum to the Lease, dated January 22, 1996, the Second Addendum to Lease, dated January 22, 1996, the Acceptance Agreement, the First Amendment to Lease,
dated June 20, 1996, the Second Amendment to Lease, dated November 5, 1996, the Third Amendment to Lease, dated January 17, 1997, and the Fourth Amendment to Lease, dated March 15, 2004 (collectively, the “Master
Lease”), respecting those premises (the “Premises”) commonly known as 894 Ross Drive, Sunnyvale, California (the “Building”), consisting of approximately 43,925 rentable square feet of space, as more particularly described
in the Master Lease and in Exhibit B attached hereto. A true, correct and complete copy of the Master Lease is attached to this Sublease as Exhibit A. 
 B. Sublessor desires to sublet to Sublessee, and Sublessee desires to sublet from Sublessor, the Premises on the terms and conditions set forth in this Sublease. 
 NOW, THEREFORE, in consideration of the mutual covenants contained in this Sublease and for other good and valuable consideration, the
receipt and sufficiency of which are acknowledged, the parties agree as follows: 
 AGREEMENT 
 1. Sublease. Sublessor hereby subleases to Sublessee, and Sublessee hereby subleases from Sublessor, the Premises on the terms and
conditions hereinafter set forth. 
 2. Term. 
 (a) Sublease Term. The term of this Sublease shall commence on the later of (i) the date on which Sublessor delivers possession
of the Premises to Sublessee as contemplated herein, (ii) the date on which Landlord’s written consent to this Sublease is received in the form described in Section 19 of this Sublease, (iii) the expiration of the Early Access
Period (as defined in Section 2.(c), below) and (iv) April 1, 2007 (the “Commencement Date”) and shall expire on March 30, 2011 (the “Sublease Term”), unless sooner terminated under the provisions of this
Sublease or unless the Master Lease is sooner terminated. 
 (b) No Extension of Lease Term. The term of this Sublease
shall not extend beyond March 30, 2011. The parties acknowledge that Sublessor, as “Tenant” under the Master Lease, has the right to extend the term of the Master Lease pursuant to the terms thereof. If Sublessee desires to enter into
a direct lease of the Premises (a “Direct Lease”) with Landlord,

 
then, not less than ten (10) business days prior to the last date on which Sublessor may exercise the extension option under the Master Lease, Sublessee shall notify Sublessor of
Sublessee’s desire to enter into a Direct Lease, in which event Sublessor agrees not to exercise the extension option. Sublessee shall have no liability to Sublessor for such waiver, regardless of whether Sublessee ever actually enters into a
Direct Lease. As used in this Sublease, the term “business day” shall mean Monday through Friday except for holidays recognized by the State of California. 
 (c) Early Access. Subject to the terms hereof and the Master Lease and subject to Sublessee having provided Sublessor and the Landlord with certificates of insurance evidencing compliance with all
of the provisions of the Master Lease in respect thereof, Sublessor agrees to grant Sublessee possession of the Premises for a period of thirty (30) days commencing on the date on which (i) Sublessor delivers possession of the Premises to
Sublessee in the condition described in this Sublease, and (ii) the Consent (as such term is defined in Section 19, below) has been obtained (“Early Access Period”) solely for purposes of enabling Sublessee to perform any
construction or furniture or equipment installation on the Premises in full compliance with the terms and conditions of this Sublease and the Master Lease, including, without limitation, obtaining any and all permissions, approvals and permits as
required by the Master Lease and Landlord and at law (“Work”). 
 3. Use. 
 (a) Permitted Use. As used herein, the term “Permitted Use” shall be limited to the uses of the Premises permitted under
Section 1.20 of the Master Lease (i.e., Section N of the Summary of Basic Lease Terms). Sublessee may use the Subleased Premises only for the Permitted Use and for no other purpose without first obtaining Sublessor’s and Landlord’s
prior written consent. 
 (b) Entry by Sublessor. Sublessor shall have the right to enter the Premises during business
hours after giving Sublessee not less than one (1) business day’s notice (except in the case of an emergency) for the purpose of inspecting the Premises or making alterations, repairs, or additions to the Premises that are Sublessor’s
responsibility to perform under this Sublease, or, if such work is Sublessee’ s responsibility and Sublessee has failed to perform such work following written notice from Sublessor and the expiration of applicable cure periods. If Sublessor
requests entry onto the Premises, and Landlord would be entitled to such entry under the terms of the Master Lease, but Sublessee refuses to grant such entry to Sublessor, then Sublessee shall indemnify and save harmless Sublessor, its employees and
persons for whom Sublessor is responsible in law from against all claims, demands, awards, actions and proceedings whatsoever, by whomsoever made, brought or prosecuted, and from and against all losses, damages, costs and expenses of whatsoever kind
or nature suffered or incurred, arising from or in connection with, such Sublessee refusal. 
  

 2 

 4. Rent and Other Financial Obligations. 
 (a) Monthly Base Rent. Commencing on the Commencement Date and continuing throughout the Sublease Term, subject to the application of
the Security Deposit pursuant to Section 4(c) below and subject to the provisions of Section 2(c) above, Sublessee shall pay to Sublessor, without prior demand therefor, on or before the first day of each calendar month, as monthly rent
(“Monthly Base Rent”), an amount equal to the sum specified in the table below: 
 Commencement Date through and
including May 31, 2007: $21,962.50 per month 
 June 1, 2007 through and including March 31, 2008: $46,121.25 per
month 
 April 1, 2008 through and including March 31, 2009: $48,317.50 per month 
 April 1, 2009 through and including March 31, 2010: $50,513.75 per month 
 April 1, 2010 through and including March 30, 2011: $52,710.00 per month 
 Notwithstanding the foregoing, Sublessee shall prepay the first full installment of Monthly Base Rent upon execution of this Sublease. Sublessee shall be
entitled to, and benefit from, any rental abatement granted Sublessor under the Master Lease for whatever reason to the extent that such abatement relates to the Premises and the Sublease Term. 
 (b) Additional Rent. Sublessee shall pay to Sublessor during the Sublease Term and on or prior to the date such sums are due under
the Master Lease, all sums of additional rent and expenses (“Additional Rent”) payable by the “Tenant” under the Master Lease, which accrues from and after the Commencement Date. Sublessor and Sublessee agree that this Sublease
is intended to pass through to Sublessee all financial obligations imposed on Sublessor pursuant to the Master Lease, including, without limitation, Sublessor’s Share of all Common Operating Expenses, taxes, and all other costs and expenses
associated with the operation of the Premises, Building or Project as stipulated in the Master Lease and the operation, maintenance, repairs and replacements of the systems serving the Premises, which, in all cases, accrue after the Commencement
Date. Any ambiguity in the terms of this Sublease shall be construed in accordance with such intention. Sublessee shall be responsible for all electrical, data or other utility costs associated with Sublessee’s set-up and use of the Sublessor
Personal Property and the Premises. All monies (other than Rent) required to be paid by Sublessee to Sublessor as a result of any default or breach by Sublessee under this Sublease or other express provisions hereof shall be deemed “Additional
Rent”. Subject to the Master Lease and the Master Landlord’s approval, Sublessee shall have the audit right provided to Sublessor under the Master Lease to audit applicable operating expenses. All amounts payable shall be due on invoice.
Sublessee shall be entitled to all credits, if any, given by Landlord to Sublessor for Sublessee’s overpayment of Additional Rent. 
 (c) Security Deposit. All references in the Master Lease to the “Security Deposit” shall be deemed references to the Security Deposit as deemed herein. Immediately upon execution of the
Sublease, Sublessee shall provide Sublessor with (x) a cash deposit in the amount of One Hundred Forty-Seven Thousand One-Hundred Fifty Dollars ($147,150.00) (“Cash Deposit”) and (y) a Letter of Credit acceptable to Sublessor in
the amount of One-Hundred Thirty-Eight Thousand Three-Hundred and Fifty dollars ($138,350.00) (“LOC”, collectively with the Cash Deposit, the “Security Deposit”). The total Security Deposit shall be equal to Two-Hundred
Eighty-Five Thousand Five-Hundred Dollars ($285,500.00). Subject to Sublessee’s compliance with the terms and conditions of this Sublease, Sublessor shall: 
 (i) apply Forty-Eight Thousand Three Hundred Eighteen Dollars ($48,318.00) of the Cash Deposit to Sublessee’s Rent obligation for April 2008; 
  

 3 

 (ii) apply Forty-Eight Thousand Three Hundred Eighteen Dollars ($48,318.00) of the Cash
Deposit to Sublessee’s Rent obligation for October 2008; and 
 (iii) allow Sublessee to reduce the LOC by Fifty Thousand
Five Hundred Fourteen Dollars ($50,514.00) after payment of Sublessee’s Rent obligation for the first month immediately following the first fiscal quarter in which Sublessee is cash flow positive, if ever, and demonstrates the same to
Sublessor’s reasonable satisfaction, but in no event prior to April 2009. If Sublessee does not demonstrate to Sublessor’s reasonable satisfaction that Sublessee is cash flow positive in the fiscal quarter immediately preceding April 2009
or any subsequent fiscal quarter during the original term of the Sublease, then no portion of the LOC shall be thus reduced as applied to Sublessee’s Rent obligation. 
 At all times during the Sublease Term, at least Fifty Thousand Five Hundred Fourteen Dollars ($50,514.00) of the Cash Deposit shall remain in possession of the Sublessor. Except as otherwise provided for
in this Paragraph 4(c), the Security Deposit shall be used or applied by Sublessor or refunded to Sublessee, as the case may be, in accordance with Section 3.5 of the Master Lease. 
 (d) Place of Payment of Rent. All Monthly Base Rent, Additional Rent and all other amounts payable to Sublessor under this Sublease
or to Landlord under the Master Lease shall be paid directly to Sublessor when due, without prior notice or demand and, except as explicitly provided herein or in the Master Lease (as incorporated herein), without deduction or offset, in lawful
money of the United States of America in cash or by check, at the address set forth in Paragraph 12 hereof or such other address as may be designated in writing by Sublessor. 
 (e) Late Payments. Section 3.4 of the Master Lease shall apply with respect to when any amount of Monthly Rent or Additional
Rent is “late” and the penalties therefor, except that the “Agreed Interest Rate” shall mean the annual rate of ten percent (10%). 
 5. Allowance. Subject to Sublessee’s compliance with the material terms and conditions of this Sublease and the Master Lease, Sublessor agrees to reimburse Sublessee for actual and reasonable
documented expenses up to a maximum of Five Thousand Dollars ($5,000) (“Allowance”) incurred by Sublessee in performing construction and renovation Work for Premises server room during the Early Access Period. Sublessor shall reimburse
Sublessee within thirty (30) days after Sublessee’s written demand made in accordance with this Section 5. At Sublessor’s election upon written notice to Sublessee, Sublessor, in lieu of reimbursing Sublessee, may apply all or
any part of the Allowance against any amounts owed to Sublessor by Sublessee. Subles see agrees that, if the Master Lease is terminated as a result of any default of Sublessee, Sublessee will repay to Sublessor, as Additional Rent, an amount equal
to the full amount of the Allowance paid to Sublessee. 
 6. Condition and Acceptance of the Premises. 
 (a) Delivery of the Premises. Upon the Commencement Date, Sublessor shall deliver the Preniises and Sublessor Personal Property to
Sublessee in its existing “as is” condition and with all operating systems in good condition and repair. Sublessor shall deliver the Premises in broom clean condition, with all broken or damaged ceiling tiles replaced and all

  

 4 

 
structural, mechanical, plumbing and electrical wiring systems and lighting in good working order and condition of repair. Sublessee acknowledges and agrees that neither Sublessor nor any of
Sublessor’s agents, representatives or employees has made any representations as to the suitability, fitness or condition of the Premises for the conduct of Sublessee’s business or for any other purpose and Sublessee hereby accepts the
Premises, the Building, and all improvements thereon, “as is” in their existing condition, subject to all applicable zoning, municipal, county and state laws, ordinances and regulations governing and regulating the use of the Premises, and
any covenants or restrictions of record, and accepts this Sublease subject to all of the foregoing and to all matters disclosed in this Sublease. Sublessee shall repair and maintain the Premises in accordance with the terms of the Master Lease. Any
exception to the foregoing provisions must be made by express written agreement by both parties. 
 (b) Sublessor Personal
Property. “Sublessor Personal Property” consists of the free standing office and conference room furniture, chairs and tables, wiring, telephones and handsets, and security readers (but not the security system) listed in
Exhibit C, attached hereto, all in “as is” condition as of the date of the Landlord’s written consent to this Sublease or the date on which the Early Access Period commences, whichever is earlier. Sublessor represents and
warrants to Sublessee that the Sublessor Personal Property is owned free and clear by Sublessor. Sublessee shall be permitted to use Sublessor Personal Property at no additional cost during the Sublease Term. Sublessor shall retain exclusive
ownership of Sublessor’s Personal Property. Upon expiration or termination of the Sublease Term, Sublessee shall, at Sublessor’s option, either (a) surrender all Sublessor Personal Property to Sublessor in the same condition as
received, reasonable wear and tear, casualty and condemnation (through no fault of Sublessee) excepted, or (b) subject to thirty (30) days prior written notice, purchase all Sublessor Personal Property for the amount of One Dollar ($1.00).

 (c) Maintenance, Repair and Other Services Casualty/Condemnation. Notwithstanding any provision of the Master Lease to
the contrary but subject to Section 25 of this Sublease, Sublessor shall have no obligation to maintain or repair any part of the Building, Sublessor Personal Property, or any common areas, or to provide heat, air conditioning, water,
electricity, janitorial services, or other utilities, maintenance, repair, or services that Landlord is required to provide under the Master Lease or otherwise, it being agreed that Sublessee shall look solely to Landlord for the provision of such
services. Sublessor shall have no obligation to restore or repair any damage to the Premises resulting from damage by casualty, eminent domain, the acts of Landlord or any party other than Sublessor or its agents. To the extent that the Master Lease
gives Sublessor any right to terminate the Master Lease in the event of a casualty or condemnation affecting the Premises, and provided that Sublessor shall not incur or be obligated to pay any sums (other than Rent under the Master Lease) to
Landlord or otherwise in connection with a decision to not exercise any such right, Sublessor shall not cancel or terminate the Master Lease without the prior written consent of Sublessee, in Sublessee’s sole discretion, provided that Sublessee
shall continue meeting all of its payment obligations to Sublessor and Landlord through the remainder of the Sublease. If Sublessor has the right to terminate the Master Lease thereunder, Sublessee shall have the right to terminate the Sublease
hereunder subject to: (a) Sublessor’s prior written consent or (b) written notice of Sublessee’s intent to terminate the Sublease at least thirty (30) days prior to the expiration of Sublessor’s right to terminate the
Master Lease. 
  

 5 

 7. Alterations. Sublessee shall not make any alteration, addition, improvement or
change to the Premises except in compliance with the provisions of the Master Lease and after first obtaining Sublessor’s and Landlord’s prior written consent thereto, provided, however, that no consents need to be obtained for any
permitted alterations, which do not require consent, as described in Section 5.2.A. of the Master Lease. In addition, subject to Sublessee’s compliance with the Sublease and the Master Lease, Sublessor’s consent shall not be required
for the work that is the subject of the Allowance. 
 8. Parking. Sublessee shall have the non-exclusive right to use
Sublessor’s Allocated Parking Stalls contained within the Project as stipulated in, and subject to the terms and conditions of, the Master Lease, including, without limitation, Section 4 of the Third Amendment and the Second Addendum, as
applicable. 
 9. Signage. Sublessee may place its company sign on the monument sign designated for the Premises and on
the façade of the building in which the Premises are located, which façade faces Highways 237 and 101, subject to the terms of the Master Lease, and any Landlord consent and subject to the rules and regulations established by the
Landlord under the Master Lease. 
 10. Insurance: Waiver of Subrogation. 
 (a) Without limiting the provisions of Paragraph 13 hereof, Sublessee covenants and agrees that it shall, during the Sublease Term, obtain
and continuously maintain, in respect of the Premises the insurance required to be obtained and maintained by the Sublessor, as “Tenant”, under the Master Lease pursuant to the terms thereof and all such insurance shall contain as
appropriate, the inclusion of the Landlord and Sublessor as additional insureds on the liability policies, a cross liability and severability of interests clause and a contractual liability endorsement. Sublessee shall provide, upon request of
Sublessor, certificates of its insurance policies and shall throughout the Sublease Term, provide evidence of renewal or replacement of same. 
 (b) Notwithstanding anything to the contrary contained in the Sublease or the Master Lease, the parties hereto, each release the one another and their respective agents, employees, successors, assignees
and subtenants from all liability for injury to any person or damage to any property that is caused by or results from a risk which is actually insured against, which is required to be insured against under the Master Lease or this Sublease, or
which would normally be covered by “all risk” property insurance, solely to the extent actually reimbursed by the applicable insurance policy and at no additional cost or expense to releasing party, without regard to the negligence or
willful misconduct of the person or entity so released. All of Sublessor’s and Sublessee’s repair and indemnity obligations shall be subject to the foregoing waiver. Notwithstanding anything to the contrary, the foregoing waiver shall not
apply to any amounts recoverable by Landlord from Sublessor in connection with Section 9.4 of the Master Lease based on or related to any acts or omissions of Sublessee, in excess of the amounts actually reimbursed by Sublessee’s insurance
policy. 
  

 6 

 11. Assignment and Subletting. 
 (a) Sublessee’s duties and obligations under this Sublease shall be binding on any successor-in-interest to Sublessee or purchaser of
all or substantially all of the assets of Sublessee, whether by operation of law or otherwise. Subject to the terms and conditions of the Master Lease and this Sublease, Sublessee shall have the right to assign this Sublease or sublet all or any
portion of the Premises or allow the Premises to be occupied by persons other than the employees or agents of Sublessee, solely with the prior written consent of Sublessor and Landlord in accordance with the Master Lease. Notwithstanding anything to
the contrary in this Sublease or the Master Lease, Sublessor shall not withhold its consent in the event that Sublessee seeks to assign this Sublease (whether pursuant to an actual assignment or a transaction deemed to be an assignment by the Master
Lease) to a public company that acquires all or substantially all of Sublessee’s assets, provided that immediately prior to and immediately following the effective date of the assignment, such acquirer (a) is profitable, (b) has been
cash flow positive for the immediately preceding four consecutive fiscal quarters, (c) has a net worth that is not less than Sublessee’s net worth immediately prior to the effective date of assignment, (d) has at least twenty-five
million dollars in cash or short-term cash equivalents, and (e) is not a competitor of Sublessor, which sells, develops or markets enterprise or internet search products or services (“Competitor”). In no event shall the sale or other
transfer by Sublessee of its capital stock for the primary purpose of raising additional equity financing, whether such sale is a public offering or a private placement of such securities, be deemed by Sublessor to be an assignment of this Sublease
or a subletting of the Premises, and Sublessor’s consent shall not be required for any of the foregoing transactions. A current list of Competitors, which may updated from time to time, is attached hereto as Exhibit D. No assignment of
this Sublease nor any sub-sublease of all or any portion of the subleased Premises shall release Sublessee of its duties and obligations under this Sublease including, without limitation, any and all payment obligations. Any assignment or sublease
in violation of this Paragraph 11 shall be deemed void and shall constitute a default by Sublessee under this Sublease. Sublessee shall reimburse both Sublessor and Landlord for the types and amounts of transaction costs associated with any Transfer
(as defined in Section 14.1 of the Master Lease) by Sublessee as are described in Section 14.1 of the Master Lease. 
 (b) Any Bonus Rent realized by Sublessee in connection with any transfer, assignment or sublease shall be paid as follows: two-thirds (66.66%) to Sublessor and Sublessee may retain the other one-third (33.33%). “Bonus Rent”
shall mean the excess of all amounts received by Sublessee on account of a transfer, assignment or sublease over the sum of the Monthly Base Rent, Additional Rent and other charges payable by Sublessee to Sublessor for the benefit of Landlord under
this Sublease (prorated, in the case of a sub-sublease of less than all of the Subleased Premises, to reflect obligations allocable to only the portion of the Subleased Premises so sublet) after first deducting from any Bonus Rent such costs as may
be deducted pursuant to the provisions of the Master Lease (e.g., Permitted Transfer Costs). Sublessor shall pay fifty percent (50%) of its share of the Bonus Rent to Landlord such that Sublessor retains one-third (33.33%) of the Bonus
Rent and Landlord retains one-third (33%) of the Bonus Rent. 
  

 7 

 12. Notices. All notices, demands or requests which may be or are required to be
given under this Sublease shall be in writing and shall be given by personal delivery, or by certified or registered mail, return receipt requested, postage prepaid, or by Federal Express or similar overnight courier, charges prepaid, or by
facsimile with electronic confirmation of delivery, and addressed as follows: 
  

			
	Sublessor:	    	Verity, Inc.
		    	One Market, Spear Tower, 19th Floor
		    	San Francisco, California 94105
		    	Attention: General Counsel
		    	Fax No.: 415-243-9984
		
	Sublessee:	    	Prior to June 1, 2007:
		    	1309 S. Mary Avenue
		    	Sunnyvale, California 94087
		    	Attn: Ihab Abu-Hakima
		
		    	On or after June 1, 2007:
		    	The Premises
		
		    	Attn: Ihab Abu-Hakima
		    	Fax No: 408-215-5301

 The addresses of the parties may be changed from time to time by notice given in the maimer set forth
in this Paragraph 12. Each notice, request, demand, advice or designation given under this Sublease shall be deemed properly given only upon actual receipt or refusal of delivery. 
 13. Incorporation of Master Lease Terms. The Master Lease is incorporated herein in its entirety by this reference, provided,
however, that any conflict or inconsistency between the terms and conditions of this Sublease and the Master Lease shall be resolved in favor of this Sublease. For the purpose of this Sublease, all references in the Master Lease to
“Tenant” shall be deemed to mean Sublessee, all references to “Commencement Date” shall mean the Commencement Date under this Sublease, all references to “Lease Term” shall mean the Sublease Term under this Sublease,
all references to “Security Deposit’ shall mean the Security Deposit under this Sublease, all references to “Lease” shall mean this Sublease and all references to “Landlord” shall mean Landlord and/or Sublessor, as
applicable. Notwithstanding the foregoing incorporation of the terms and conditions of the Master Lease, Sublessor shall not be responsible for the performance of any obligations to be performed by Landlord under the Master Lease, and Sublessee
agrees to look solely to Landlord for the performance of such obligations. Sublessor shall not be liable to Sublessee for any failure by Landlord to perform its obligations under the Master Lease, (except to the extent such failure to perform was
caused by Sublessor’s, or its agents’, acts or omissions) nor shall such failure by Landlord excuse performance by Sublessee of its obligations hereunder. 
 14. Termination of Master Lease. This Sublease is, and shall at all times remain, subordinate to the Master Lease. In the event the Master Lease is terminated for any reason, prior to its scheduled
expiration, then this Sublease shall automatically terminate and be of no further force or effect, unless otherwise agreed upon in writing by Landlord. If the termination of the Master Lease (and resulting termination of this Sublease) occurs
through no fault of Sublessor, Sublessor shall have no liability to Sublessee for the resultant termination of this Sublease. 
  

 8 

 15. Sublessor’s Right to Cure Defaults. If, following the expiration of
applicable notice and cure periods, Sublessee fails to pay any sum of money to Sublessor, or fails to perform any other act on its part to be performed hereunder, then Sublessor may, but shall not be obligated to, make such payment or perform such
act. All such sums paid, and all costs and expenses of performing any such act, shall be deemed Additional Rent payable by Sublessee to Sublessor upon demand, together with interest thereon at the Interest Rate from the date of the expenditure until
repaid. 
 16. Sublessee’s Right to Cure Defaults. In the event that Sublessor defaults in the performance or
observance of any of Sublessor’s obligations under the Master Lease, Sublessee, upon having actual notice of the occurrence of such default, shall have the right, but not the obligation, to cure such default on behalf of Sublessor. In addition,
Sublessee shall have the right to pay directly to Landlord all rent and other sums owing by Sublessee to Sublessor under this Sublease which are also owed by Sublessor to Landlord under the Master Lease if Sublessor has failed to make any payment
required to be made by Sublessor to Landlord under the Master Lease following the applicable notice and cure periods, and Sublessor fails to provide proof of payment within five (5) business days after Sublessee’s reasonable written notice
requesting such proof. Any sums paid directly by Sublessee to Landlord in accordance with this paragraph shall be credited toward the same amounts payable by Sublessee to Sublessor under this Sublease. 
 17. Delivery and Acceptance. If Sublessor is unable to deliver possession of the Premises to Sublessee on or before the anticipated
Commencement Date for any reason whatsoever, then this Sublease shall not be void or voidable, nor shall Sublessor be liable to Sublessee for any loss or damage; however, in such event, rent shall abate until Sublessor delivers possession of the
Premises to Sublessee. Notwithstanding anything to the contrary in this Sublease: (i) if the Commencement Date has not occurred for any reason whatsoever on or before April 30, 2007, then the date Sublessee is otherwise obliged to commence
payment of Monthly Base Rent shall be delayed by one day for each day that the Commencement Date is delayed beyond April 30, 2007, and (ii) if the Commencement Date has not occurred for any reason whatsoever on or before June 15,
2007, then, as Sublessee’s sole and exclusive remedy with respect to Sublessor, Sublessee may terminate this Sublease by written notice to Sublessor, whereupon any Rent or Security Deposit monies previously paid out by Sublessor to Sublessee,
shall be reimbursed to Sublessee immediately. 
 18. Indemnification and Release of Sublessor. 
 (a) Without limiting the generality of Paragraph 13, but subject to the waiver of subrogation set forth in Section 10.(b) above,
Sublessee covenants and agrees with Sublessor that it shall indemnify and save harmless Sublessor, its employees and persons for whom Sublessor is responsible in law from and against all claims, demands, awards, actions and proceedings whatsoever,
by whomsoever made, brought or prosecuted, and from and against all losses, damages, costs and expenses of whatsoever kind or nature suffered or incurred, due to, arising from or to the extent contributed to by: 
 (i) any negligent acts or omissions or the misconduct of Sublessee, its servants, agents, employees, contractors, or those for whom
Sublessee is responsible in law occurring in, on or about the Premises or in, on or about the Building; 
  

 9 

 (ii) the undertaking of the Sublessee’s Work, or any portion thereof; 
 (iii) the use or occupation of the Premises by Sublessee, its servants, agents, employees or those for whom Sublessee is responsible in
law; 
 (iv) any damage or destruction to any part of the Premises or the Building caused by Sublessee, its employees, or those
for whom Sublessee is responsible in law; and 
 (v) the violation by Sublessee, its employees, or those for whom Sublessee is
responsible in law, of any laws, regulations or governmental orders. 
 The indemnity contained in this Paragraph shall not operate to the
extent that such claims, demands, awards, actions, proceedings, losses, damages, costs or expenses are: 
 (i) due to the
grossly negligent acts or omissions or the willful misconduct of Sublessor, its employees, or those for whom Sublessor is in law responsible (other than Sublessee, or those for whom Sublessee is in law responsible); or 
 (ii) in respect of losses or damages suffered by the Landlord and in respect of which the Landlord has released Sublessee from liability
therefor, provided that Sublessee shall nevertheless be liable for such losses and damages where the Landlord has not released Sublessor therefrom and where such losses or damages are caused by Sublessee, its employees, or those for whom Sublessee
is responsible in law. 
 (b) Without limiting the generality of Paragraph 13 but subject to Section 10.(b) above, if
Sublessor, without fault on its part, is made a party to litigation begun by or against Sublessee relating to the Subleased Premises or this Sublease, Sublessee will protect and hold harmless Sublessor, and will pay all costs, expenses and
reasonable legal fees incurred or paid by Sublessor in connection with the litigation, excepting (a) a bona fide action by Sublessee against Sublessor or (b) an action by Sublessor against Sublessee in which a final ruling is entered in
favor of Sublessee. Sublessee will also pay all costs, expenses and reasonable legal fees incurred by Sublessor in enforcing the terms and covenants of Sublessee under this Sublease. 
 (c) Under no circumstance shall Sublessee be liable for, and Sublessor shall indemnify, defend and hold harmless Sublessee, its
shareholders, directors, agents, representatives, successors, subtenants and assigns from and against, all losses, costs, claims, liabilities, and damages (including reasonable attorneys’ fees) directly or indirectly arising in connection with
any Hazardous Materials introduced by Sublessor to the Project and present at any time during the Sublease on or about the Project or the violation of any environmental laws, except to the extent that any of the foregoing results from the release of
Hazardous Materials by Sublessee or its agents. 
 19. Consent of the Landlord. Whenever the consent of the Landlord is
required under the Master Lease, Sublessee shall obtain the consent of both Sublessor and the Landlord, but in all instances Sublessee shall first request and obtain the consent of Sublessor before requesting the consent of the Landlord. Sublessor
shall use commercially reasonable efforts to obtain

  

 10 

 
Landlord’s consent. This Sublease shall not become effective until Landlord has provided its written consent to this Sublease (the “Consent”). If Landlord does not provide the
Consent within forty-five (45) days after the date on which Sublessor and Sublessee have each executed and delivered this Sublease, then this Sublease shall be deemed void, Sublessor shall immediately return to Sublessee the Security Deposit
(i.e., the Cash and the LOC), and the parties shall have no further rights or obligations or liabilities hereunder. 
 20.
Holding Over; Surrender. If Sublessee continues to occupy the Premises after the expiration of the Sublease Term without the express written consent of Sublessor, such occupancy by Sublessee shall automatically, without notice, constitute a
default and breach of this Sublease by Sublessee, and Sublessee shall indemnify, defend and hold harmless Sublessor from and against all losses, costs, claims, liabilities and damages resulting from Sublessee’s failure to surrender the
Premises. Sublessee shall surrender the Premises in the condition required under the Master Lease; provided, however, that in no event shall Sublessee be required to remove any alterations, additions or improvements existing as of the Commencement
Date but Sublessee shall be obligated to remove the work performed using the Allowance and to return the Premises to its condition as of the Commencement Date. 
 21. Exculpatory Provision. Sublessor shall not be in default of this Sublease unless Sublessor fails to perform any obligation of Sublessor hereunder and such failure continues for twenty
(20) days (or such longer period of time as reasonably may be required) after Sublessor’s receipt of written notice from Sublessee specifying such failure. Sublessee agrees that, in the event of any default or breach by Sublessor under
this Sublease, subject to any other restrictions and limitations herein, Sublessee’s damages shall be limited to an amount which does not exceed the lesser of (a) Sublessee’s actual damages or (b) the sum of $200,000. Except as
expressly provided in this Sublease, Sublessee shall have no right to offset rent against any damages or claims for damages suffered or incurred by Sublessee. Sublessor shall not be liable under any circumstances for consequential or punitive
damages or injury or damage to, or interference with, Sublessee’s business, including but not limited to, loss of profits, loss of rents or other revenues, loss of business opportunity, loss of goodwill or loss of use, in each case, however
occurring. Except to the extent caused by Sublessor’s, or its agent’s, gross negligence or willful misconduct, Sublessor shall not be liable to Sublessee for death of or injury to employees, officers, agents or invitees of Sublessee or
others on the Premises, or for the loss of or damage to property of Sublessee or others by theft or otherwise. Except to the extent caused by Sublessor’s, or its agent’s, gross negligence or willful misconduct, Sublessor shall not be
liable for death, injury to , injury, loss or damage of or to persons or property resulting or arising from fire, explosion, falling plaster, steam, gas, electricity, water, rain or snow or leaks from any part of the Premises or from the pipes,
appliances or plumbing works or from the road, street or subsurface, or from any other place, or by dampness, or by other cause of any kind and Sublessor is not and shall not be liable for death, injury, loss or damage caused by the other tenants or
occupants or other persons in the Premises or in any other part of the Building, or resulting from construction, alteration or repair of the Premises or the Building. All property of Sublessee kept or stored in the Premises shall be kept or stored
at the risk of Sublessee only and Sublessee will hold Sublessor harmless from all claims arising out of damage to it, including subrogation claims (if any) by Sublessee’s insurers. 
  

 11 

 22. Brokers. The parties acknowledge that Sublessor has retained CB Richard Ellis as
its sole real estate representative in connection with the transactions contemplated by this Sublease, and Sublessee has retained Cornish & Carey as its sole real estate representative in connection with such transactions (collectively, the
“Brokers”). Except as set forth in this Paragraph 22, Sublessor and Sublessee each represent to the other that they have dealt with no real estate brokers, finders, agents or salesmen other than the Brokers in connection with this
transaction. Each party agrees to hold the other party harmless from and against all claims for brokerage commissions, finder’s fees, or other compensation made by any other agent, broker, salesman or finder as a consequence of said
party’s actions or dealings with such agent, broker, salesman, or finder. The Brokers shall be paid pursuant to a separate written agreement between the Brokers and Sublessor. 
 23. Severability. If any term of this Sublease is held to be invalid or unenforceable by any court of competent jurisdiction, then
the remainder of this Sublease shall remain in full force and effect to the fullest extent possible under the law, and shall not be affected or impaired. 
 24. Attorneys’ Fees. If either party brings any action or legal proceeding with respect to this Sublease, the prevailing party shall be entitled to recover reasonable attorneys’ fees,
experts’ fees, and court costs. If either party becomes the subject of any bankruptcy or insolvency proceeding, then the other party shall be entitled to recover all attorneys’ fees, experts’ fees, and other costs incurred by such
party in protecting its rights hereunder and in obtaining any other relief as a consequence of such proceeding. 
 25.
Sublessor’s Covenants. At all times during the Sublease Term, Sublessor shall use reasonable commercial efforts to (i) keep the Master Lease in effect; (ii) not modify, amend or knowingly and intentionally waive any provisions
thereof or make any election, exercise any option, right or remedy, or grant any consent or approval thereunder without, in each instance, Sublessee’s prior written consent; (iii) perform all of Sublessor’s other obligations, as
“Lessee” under the Master Lease, except to the extent that Sublessee is obligated to perform such other obligations under or by virtue of this Sublease; (iv) not knowingly and intentionally take any action or omit to take any action
that constitutes a breach of the Master Lease or otherwise directly and proximately gives rise to a right of Landlord to terminate the Master Lease or declare any material provision thereof to have become ineffective; and (v) enforce
performance of all obligations of Landlord under the Master Lease, at Sublessee’s reasonable request and Sublessee’s sole cost and expense. 
 26. Sublessor represents and warrants that to the best of Sublessor’s knowledge (i) the Master Lease is in full force and effect, and there exists under the Master Lease no default or event of
default by either Landlord or Sublessor, nor has there occurred any event which, with the giving of notice or the passage of time or both, could constitute such a default or event of default; (ii) there are no pending or threatened actions,
suits or proceedings before any court or administrative agency against Sublessor which could, in the aggregate, adversely affect the Premises or any part thereof or the ability of Sublessor to perform its obligations under the Master Lease or of
Sublessor to perform its obligations under this Sublease, and Sublessor is not aware of any facts that might result in any such actions, suits or proceedings; (iii) there is no pending or threatened condemnation or similar proceedings affecting
the Premises or any portion thereof, and Sublessor has no knowledge that any such action currently is contemplated;

  

 12 

 
(iv) Sublessor has not received any notice from any insurance company of any defects or inadequacies in the Premises or any part thereof which could adversely affect the insurability of the
Premises or the premiums for the insurance thereof and (v) to Sublessor’s best knowledge: (x) no Hazardous Materials are present in the Building or Premises, and (y) no action, proceeding or claim is pending or threatened
regarding the Building or the Premises concerning any Hazardous Materials or pursuant to any environmental Law. 
 27. Entire
Agreement. This Sublease contains all of the terms, covenants and conditions agreed to by Sublessor and Sublessee and may not be modified orally or in any manner other than by an agreement in writing signed by all the parties to this Sublease or
their respective successors in interest. In the event of any conflict between the terms of this Sublease and the Master Lease, this Sublease shall control. 
 28. Exhibits. All exhibits attached hereto are incorporated in this Sublease, except as expressly excluded herein. 
 29. Counterparts. This Sublease may be executed in any number of counterparts, each of which shall be deemed an original, and when taken together they shall constitute one and the same sublease.

 IN WITNESS WHEREOF, the parties have caused this instrument to be executed by their duly authorized representatives as of the day and year
first above written. 
  

									
	“SUBLESSOR”:	 		 	“SUBLESSEE”:
			
	Verity, Inc.	 		 	Meru Networks, Inc.
					
	By :	 	 /s/ Frank Pao
	 		 	By:	 	 /s/ Vaduvur Bharghavan

	Printed Name:	 	Frank Pao	 		 	Printed Name:	 	Vaduvur Bharghavan
	Title:	 	COO	 		 	Title:	 	Chief Technical Officer
			
	Date: April 25, 2007	 		 	Date: 4/24/2007

  

 13 

 April 30, 2007 
 Autonomy, Inc. 
 892 Ross Drive 
 Sunnyvale, CA 94089 
 Attention: Stacey Dougherty 
 Re: Hines Consent - Meru/Verity Sublease 
 Dear Stacey, 
 Per my email to you today, I am unable to sign your document; however, I have enclosed the original package, along with
an original of the Landlord’s Consent to Sublease letter given to Vince Machado of CBRE on April 12, 2007. It is my hope this will satisfy the needs of Autonomys Legal team. 
 Please let me know if there is any additional information needed. 
 Sincerely, 
  

	
	 /s/ Collette M. Brown

	Collette M. Brown
	Property Manager - Hines

 2262 North First Street San Jose, California 95131 (408) 571-2200 (408) 571-2250 FAX

 April 12, 2007 
 Mr. Frank Pao 
 Senior Vice President 
 Autonomy, Inc. 
 1 Market Street, Spear Tower

 Suite 1900 
 San Francisco, CA 94105

 Re: 894 Ross Drive - Sublease 
 Dear Mr. Pao, 
 This letter is to serve as the approval by Hines VAF No Cal Properties, LP (the “Landlord”) of Meru
Networks, Inc. as a Subtenant of Verity, Inc. (the “Tenant”) in its premises at 894 Ross Drive in Sunnyvale, CA. 
 This approval is
based upon the terms and conditions of the lease (the “Lease”) between Hines VAF No Cal Properties LP as Landlord and successor in interest to Ross Drive Investors, and Verity, Inc. as Tenant, dated January 22, 1996, and the
understanding that the proposed transaction is a sublease and not an assignment of the Lease. The sublease will be subject to, and be limited by, the terms of the Lease, and Landlord has not agreed to any non-disturbance or similar rights for the
Subtenant, nor has the Landlord agreed to recognize the sublease or the Subtenant in the event of the expiration or earlier termination of the Lease. 
 This approval is also based on rent and other considerations realized by Tenant under such sublease in excess of the rental payable under such Lease with Landlord, after amortization of the reasonable subletting costs which shall be divided
as defined in the Lease. 
 The obligations of the Landlord under the Lease are for the benefit of the Tenant only and Meru Networks, Inc. will
not have any right to enforce the Lease against the Landlord. Any acceptance by the Landlord of payments of Base Rental or other sums due under the Lease from Meru Networks, Inc. shall be for the convenience of the Tenant and Subtenant only, and
shall not constitute an agreement by Landlord to recognize Meru Networks, Inc. as a Tenant or otherwise be deemed to modify the matters set forth in this letter. 
 This letter is an approval of the Subtenant only, and does not constitute the consent of the Landlord to the terms of the sublease, to any improvements that may be contemplated in connection with the
subleasing or to the use of any contractor. Notwithstanding the foregoing, Landlord consents to the installation of one or more “RF Chambers” in the premises, per the general specifications provided by Subtenant in advance of this letter.

 2262 North First Street San Jose, California 95131 (408) 571-2200 (408) 571-2250 FAX 

 Landlord agrees that, notwithstanding anything to the contrary in the Lease neither (i) the sale,
public offering or other transfer of Sublessee’s capital stock, (ii) the institutional, venture or other private financing by Sublessee to raise additional capital, nor (iii) any change of control of Sublessee resulting from
(i) or (ii) shall be deemed an assignment of this Sublease or a subletting of the Premises, so long as Sublessee has a net worth immediately after (i), (ii) or (iii) that is equal to or greater than the greater of (i) net
worth of Sublessee immediately prior to such transaction, or (ii) net worth of Sublessee as of May 1, 2007; and Landlord’s consent shall not be required for any of the foregoing transactions. 
 Should you have any questions or comments regarding this letter, please do not hesitate to contact me at (408) 571-2200. 
  

	
	Sincerely,
	
	 /s/ Collette M. Brown

	Collette M. Brown
	Property Manager - Hines

  

 2 

 Exhibit A 
 Master Lease 

 LEASE 
 DATED January 22, 1996 
 BY AND BETWEEN 
 ROSS DRIVE INVESTORS, a California general partnership 
 as Landlord 
 and 
 VERITY, INC., a Delaware corporation 
 as Tenant

 AFFECTING PREMISES COMMONLY KNOWN AS 
 894 Ross Drive, Sunnyvale, California 

 TABLE OF CONTENTS 
  

					
	Article 1 DEFINITIONS	  	1
			
	 1.1
	    	General	  	1
	 1.2
	    	Additional Rent	  	1
	 1.3
	    	Address for Notices	  	1
	 1.4
	    	Agents	  	1
	 1.5
	    	Agreed Interest Rate	  	1
	 1.6
	    	Base Monthly Rate	  	1
	 1.7
	    	Building	  	1
	 1.8
	    	Commencement Date	  	1
	 1.9
	    	Common Area	  	1
	 1.10
	    	Common Operating Expenses	  	1
	 1.11
	    	Consumer Price Index	  	1
	 1.12
	    	Effective Date	  	1
	 1.13
	    	Event of Tenant’s Default	  	1
	 1.14
	    	Hazardous Materials	  	1
	 1.15
	    	Insured and Uninsured Peril	  	1
	 1.16
	    	Law	  	1
	 1.17
	    	Lease	  	1
	 1.18
	    	Lease Term	  	1
	 1.19
	    	Lender	  	2
	 1.20
	    	Permitted Use	  	2
	 1.21
	    	Premises	  	2
	 1.22
	    	Project	  	2
	 1.23
	    	Private Restrictions	  	2
	 1.24
	    	Real Property Taxes	  	2
	 1.25
	    	Scheduled Commencement Date	  	2
	 1.26
	    	Security Instrument	  	2
	 1.27
	    	Summary	  	2
	 1.28
	    	Tenant’s Alterations	  	2
	 1.29
	    	Tenant’s Share	  	2
	 1.30
	    	Trade Fixtures	  	2
		
	Article 2 DEMISE, CONSTRUCTION, AND ACCEPTANCE	  	2
			
	 2.1
	    	Demise of Premises	  	2
	 2.2
	    	Commencement Date	  	2
	 2.3
	    	Construction of Improvements	  	2
	 2.4
	    	Delivery and Acceptance of Possession	  	2
	 2.5
	    	Early Occupancy	  	3
		
	Article 3 RENT	  	3
			
	 3.1
	    	Base Monthly Rent	  	3
	 3.2
	    	Additional Rent	  	3
	 3.3
	    	Payment of Rent	  	3
	 3.4
	    	Late Charge and Interest on Rent in Default	  	3
	 3.5
	    	Security Deposit	  	3
		
	 Article 4 USE OF PREMISES
	  	4
			
	 4.1
	    	Limitation on Use	  	4
	 4.2
	    	Compliance with Regulations	  	4
	 4.3
	    	Outside Areas	  	4
	 4.4
	    	Signs	  	4
	 4.5
	    	Parking	  	4
	 4.6
	    	Rules and Regulations	  	4

					
	Article 5 TRADE FIXTURES AND ALTERATIONS	  	5
			
	 5.1
	    	Trade Fixtures	  	5
	 5.2
	    	Tenant’s Alterations	  	5
	 5.3
	    	Alterations Required by Law	  	5
	 5.4
	    	Amortization of Certain Capital Improvements	  	5
	 5.5
	    	Mechanic’s Liens	  	6
	 5.6
	    	Taxes on Tenant’s Property	  	6
		
	Article 6 REPAIR AND MAINTENANCE	  	6
			
	 6.1
	    	Tenant’s Obligation to Maintain	  	6
	 6.2
	    	Landlord’s Obligation to Maintain	  	7
	 6.3
	    	Control of Common Area	  	7
		
	Article 7 WASTE DISPOSAL AND UTILITIES	  	7
			
	 7.1
	    	Waste Disposal	  	7
	 7.2
	    	Hazardous Materials	  	7
	 7.3
	    	Utilities	  	8
	 7.4
	    	Compliance with Governmental Regulations	  	8
		
	Article 8 COMMON OPERATING EXPENSES	  	8
			
	 8.1
	    	Tenant’s Obligation to Reimburse	  	8
	 8.2
	    	Common Operating Expenses Defined	  	9
	 8.3
	    	Real Property Taxes Defined	  	9
		
	Article 9 INSURANCE	  	10
			
	 9.1
	    	Tenant’s Insurance	  	10
	 9.2
	    	Landlord’s Insurance	  	10
	 9.3
	    	Tenant’s Obligation to Reimburse	  	11
	 9.4
	    	Release and Waiver of Subrogation	  	11
		
	Article 10 LIMITATION ON LANDLORD’S LIABILITY AND INDEMNITY	  	11
			
	 10.1
	    	Limitation on Landlord’s Liability	  	11
	 10.2
	    	Limitation on Tenant’s Recourse	  	11
	 10.3
	    	Indemnification of Landlord	  	11
		
	Article 11 DAMAGE TO PREMISES	  	12
			
	 11.1
	    	Landlord’s Duty to Restore	  	12
	 11.2
	    	Landlord’s Right to Terminate	  	12
	 11.3
	    	Tenant’s Right to Terminate	  	12
	 11.4
	    	Abatement of Rent	  	13
		
	 Article 12 CONDEMNATION
	  	13
			
	 12.1
	    	Landlord’s Termination Right	  	13
	 12.2
	    	Tenant’s Termination Right	  	13
	 12.3
	    	Restoration and Abatement of Rent	  	13
	 12.4
	    	Temporary Taking	  	13
	 12.5
	    	Division of Condemnation Award	  	13
		
	Article 13 DEFAULT AND REMEDIES	  	13
			
	 13.1
	    	Events of Tenant’s Default	  	13
	 13.2
	    	Landlord’s Remedies	  	14
	 13.3
	    	Waiver	  	15
	 13.4
	    	Limitation on Exercise of Rights	  	15
	 13.5
	    	Waiver by Tenant of Certain Remedies	  	15
		
	 Article 14 ASSIGNMENT AND SUBLETTING
	  	15
			
	 14.1
	    	Transfer By Tenant	  	15
	 14.2
	    	Transfer by Landlord	  	17

					
	Article 15 GENERAL PROVISIONS	  	18
			
	 15.1
	    	Landlord’s Right to Enter	  	18
	 15.2
	    	Surrender of the Premises	  	18
	 15.3
	    	Holding Over	  	18
	 15.4
	    	Subordination	  	18
	 15.5
	    	Mortgagee Protection and Attornment	  	19
	 15.6
	    	Estoppel Certificate and Financial Statements	  	19
	 15.7
	    	Reasonable Consent	  	19
	 15.8
	    	Notices	  	19
	 15.9
	    	Attorneys’ Fees	  	19
	 15.10
	    	Corporate Authority	  	19
	 15.11
	    	Miscellaneous	  	19
	 15.12
	    	Termination by Exercise of Right	  	20
	 15.13
	    	Brokerage Commissions	  	20
	 15.14
	    	Force Majeure	  	20
	 15.15
	    	Entire Agreement	  	20

 EXHIBITS 
  

					
	Exhibit A	  	-	    	Site plan of the Project containing a description of the Premises
			
	Exhibit B	  	-	    	Improvement Agreement
			
	Exhibit C	  	-	    	Approved Specifications
			
	Exhibit D	  	-	    	Acceptance Agreement
			
	Exhibit E	  	-	    	Description of Private Restrictions
			
	Exhibit F	  	-	    	Sign Criteria
			
	Exhibit G	  	-	    	Form of Subordination Agreement
			
	Exhibit H	  	-	    	Hazardous Materials Questionnaire

 SUMMARY OF BASIC LEASE TERMS 
  

									
	  	 	         SECTION
 (LEASE REFERENCE)
	 	  	  	 TERMS

		 	 A.
 (Introduction)
	 		  	Lease Reference Date: January 22, 1996
					
		 	B.	 		  	Landlord:	  	ROSS DRIVE INVESTORS
		 	(Introduction)	 		  		  	a California general partnership
					
		 	C.	 		  	Tenant:	  	VERITY, INC.
		 	(Introduction)	 		  		  	a Delaware corporation
					
		 	 D.
 (§1.21)
	 		  	Premises:	  	That area consisting of 33,834 square feet of gross leasable area the address of which is 894 Ross Drive, Suites 100, 101, 200, 201 and 202, Sunnyvale, CA, within the Building as
Shown on Exhibit A.
					
		 	 E.
 (§1.22)
	 		  	Project:	  	The land and improvements shown on Exhibit A consisting of one (1) buildings the aggregate gross leasable area of which is 43.925 square feet.
					
		 	 F.
 (§1.7)
	 		  	Building:	  	This building in which the Premises are located known as 894 Ross Drive, Sunnyvale, California containing 43.925 square feet of gross leasable area.
					
		 	G.	 		  	Tenant’s Share:	  	77.03 %
		 	(§1.29)	 		  	See First Addendum, Paragraph 5
					
		 	 H.
 (§4.5)
	 		  	Tenant’s Allocated Parking Stall:	  	132 stalls.
				
		 	 I.
 (§1.26)
	 		  	Schedule Commencement Date: June 1, 1996
					
		 	 J.
 (§1.18)
	 		  	Lease Term:	  	105 calendar months (plus the partial month following the Commencement Date if such date is not the first day of a month).
					
		 	 K.
 (§3.1)
	 		  	Base Monthly Rate: Months 1-24:	  	$32,142.30 ($.95 per SF
					
		 		 		  	            Months 25-60:	  	$34,849.02 ($1.03 per SF
					
		 		 		  	            Months 61-84:	  	$38,909.10 ($1.15 per SF
					
		 		 		  	            Months 85-105:	  	$41,954.16 ($1.24 per SF
				
		 		 		  	            See First Addendum, Paragraph 5

									
					
		 	 L.
 (§3.3)
	 		  	Prepaid Rent:	  	$32,142.30 which shall constitute the first month’s rent
					
		 	 M.
 (§3.5)
	 		  	Security Deposit:	  	See First Addendum, Paragraph 4
					
		 	 N.
 (§4.1)
	 		  	Permitted Use:	  	General office, research and development, marketing and all other related legal uses.
					
		 	 O.
 (§5.2)
	 		  	Permitted Tenant’s Alterations Limit:	  	$5,000.00
		 		 		  	(exclusive of Interior Improvements constructed pursuant to Exhibit B)
				
		 	 P.
 (§9.1)
	 		  	Tenant’s Liability Insurance Minimum: $3,000,000.00
					
		 	Q.	 		  	Landlord’s Address:	  	2290 North First Street
		 	(§1.3)	 		  		  	Suite 300
		 		 		  		  	San Jose, California 95131

									
		 	R.	 		  	Tenant’s Address:	  	892 Ross Drive
		 	(§1.3)	 		  		  	Sunnyvale, California 94089
					
		 	 S.
 (§15.13)
	 		  	Retained Real Estate Brokers: 	  	 Cornish & Carey
 400
Hamilton Avenue

		 		 		  		  	Palo Alto, CA 94301
				
		 	 T.
 (§1.17)
	 		  	Lease: This Lease includes the summary of the Basic Lease Terms, the Lease, and the following exhibits and addenda: First Addendum to Lease, Exhibit A (site plan of the
Project containing description of the Premises), Exhibit B (Improvement Agreement), Exhibit C (Approved Specifications), Exhibit D (acceptance agreement), Exhibit E (descriptive of Private Restrictions)
Exhibit F (sign criteria), Exhibit G (form of subordination agreement), Exhibit H (Hazardous Materials Questionnaire), and
                                         
                                   
				
		 		 		  	  

				
		 		 		  	  

				
		 		 		  	  

				
		 		 		  	  

	
	 The foregoing Summary is hereby incorporated into and made a part of this Lease. Each reference in this Lease to any terms of the Summary
shall mean the respective information set forth above and shall be construed to incorporate all of the terms provided under the particular paragraph pertaining to such information. In the event of any conflict between the Summary and the Lease, the
Summary shall control.

  

									
	LANDLORD:	 		 	TENANT:
			
	 ROSS DRIVE INVESTORS
 a California general partnership
	 		 	  

	 		 	a Delaware corporation
				
		 		 	By:	 	 /s/ Donald C. McCauley

				
	By:	 	 /s/ Michael J. Biggar
	 		 	 Donald C. McCauley

		 	Michael J. Biggar	 		 	(typed or printed name)
					
		 	Manager	 		 	Title:	 	Vice President and CFO
					
		 		 		 	By:	 	  

				
		 		 		 	  

		 		 		 	(typed or printed name)
		 		 		 	Title:	 	  

		 		 		 	Dated:	 	  

	Dated: 1/29/96	 		 		 	

  

 2 

  

 This Lease is dated as of the lease reference date specified in Section A of
the Summary and is made by and between the party identified as Landlord in Section B of the Summary and the party identified as Tenant in Section C of the Summary. 
 ARTICLE 1 
 DEFINITIONS 
 1.1 General: Any initially capitalized term that is given a special meaning by this Article 1, the Summary, or by any other
provision of this Lease (including the exhibits attached hereto) shall have such meaning when used in this Lease or any addendum or amendment hereto unless otherwise clearly indicated by the context. 
 1.2 Additional Rent: The term “Additional Rent” is defined in ¶3.2. 
 1.3 Address for Notices: The term “Address for Notices” shall mean the addresses set forth in Sections O and R of
the Summary; provided, however, that after the Commencement Date, Tenant’s Address for Notices shall be the address of the Premises. 
 1.4 Agents: The term “Agents” shall mean the following: (i) with respect to Landlord or Tenant, the agents, employees, contractors, and invitees of such party; and (ii) in
addition with respect to Tenant, Tenant’s subtenants and their respective agents, employees, contractors, and invitees. 
 1.5 Agreed Interest Rate: The term “Agreed Interest Rate” shall mean that interest rate determined as of the time it is to be applied that is equal to the lesser of (i) 5% in excess of the discount rate established by
the Federal Reserve Bank of San Francisco as it may be adjusted from time to time, or (ii) the maximum interest rate permitted by law. 
 1.6 Base Monthly Rate: The term “Base Monthly Rent” shall mean the fixed monthly rent payable by Tenant pursuant to ¶3.1 which is specified in Section K of the Summary. 

1.7 Building: The term “Building” shall mean the building in which the Premises are located which Building is identified
in Section F of the Summary, the gross leasable area of which is referred to herein as the “Building Gross Leasable Area.” 
 1.8 Commencement Date: The term “Commencement Date” is the date the Lease Term commences, which term is defined in ¶2.2. 
 1.9 Common Area: The term “Common Area” shall mean all areas and facilities within the Project that are not designated by
Landlord for the exclusive use of Tenant or any other lessee or other occupant of the Project, including the parking areas, access and perimeter roads, pedestrian sidewalks, landscaped areas, trash enclosures, recreation areas and the like.

 1.10 Common Operating Expenses: The term “Common Operating Expenses” is defined in ¶8.2. 
 1.11 Consumer Price Index. The term “Consumer Price Index” shall refer to
the Consumer Price Index, All Urban Consumers, subgroup “All Items” for the San Francisco-Oakland-San Jose metropolitan area (base year 1982-84 equals 100), which is presently being published monthly by the United States Department of
Labor Bureau of Labor Statistics. However, if this Consumer Price Index is changed so that the base year is altered from that used as of the commencement of the initial term of this Lease, the Consumer Price Index shall be converted in accordance
with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics to obtain the same results that would have been obtained had the base year not been changed. If no conversion factor is available, or if the
Consumer Price Index is otherwise changed, revised or discontinued for any reason, there shall be substituted in lieu thereof and the term “Consumer Price Index” shall thereafter refer to the most nearly comparable official price index of
the United States government in order to obtain substantially the same result as would have been obtained had the original Consumer Price Index not been discontinued, revised or changed, which alternative index shall be selected by Landlord and
shall be subject to Tenant’s written approval. 
 1.12 Effective Date: The term “Effective Date”
shall mean the date the last signatory to this Lease whose execution is acquired to make it binding on the parties hereto shall have executed this Lease. 
 1.13 Event of Tenant’s Default: The term “Event of Tenant’s Death” is defined in ¶13.1. 
 1.14 Hazardous Materials: The terms “Hazardous Materials” and “Hazardous Materials Laws” are defined in ¶7.2E. 
 1.15 Insured and Uninsured Peril: The terms “Insured Peril” and “Uninsured Peril” are defined in ¶11.2E.

         1.16 Law: The term “Law” shall mean any judicial decision, statute,
constitution, ordinance, resolution, regulation, rule, administrative order, or other requirement of any municipal, county, state, federal other government agency or authority having jurisdiction over the parties to this Lease or the Premises, or
both, in effect either at the Effective Date or at any time during the Lease Term. 
 1.17 Lease: The term
“Lease” shall mean the Summary and all elements of this Lease identified in Section T of the Summary, all of which are attached hereto and incorporated herein by this reference. 
 1.18 Lease Term: The term “Lease Term” shall mean the term of this Lease which shall commence on the Commencement Date and
continue for the period specified in Section J of the Summary. 
  

  

 1.19 Lender: The term “Lender” shall mean any beneficiary, mortgage,
secured party, lessor, or other holder of any Security Instrument. 
 1.20 Permitted Use: The term “Permitted
Use” shall mean the use specified in Section N of the Summary. 
 1.21 Premises: The term “Premises”
shall mean that building area described in Section D of the Summary that is within the Building. 
 1.22 Project:
The term “Project” shall mean that real property and the improvements thereon which are specified in Section E of the Summary, the aggregate gross leasable area of which is referred to herein as the “Project Gross Leasable
Area.” 
 1.23 Private Restrictions: The term “Private Restrictions” shall mean all recorded covenants,
conditions and restrictions, private agreements, reciprocal easement agreements, and any other recorded instruments affecting the use of the Premises which (i) exist as of the Effective Date, or (ii) are recorded after the Effective Date
and are approved by Tenant. 
 1.24 Real Property Taxes: The term “Real Property Taxes” is defined in
¶8.3. 
 1.25 Scheduled Commencement Date: The term “Scheduled Commencement Date” shall mean the date
specified in Section I of the Summary. 
 1.26 Security Instrument: The term “Security Instrument” shall mean
any underlying lease, mortgage or deed of trust which now or hereafter affects the Project, and any renewal, modification, consolidation, replacement or extension thereof. 
 1.27 Summary: The term “Summary” shall mean the Summary of Basic Lease Terms executed by Landlord and Tenant that is part
of this Lease. 
 1.28 Tenant’s Alterations: The term “Tenant’s Alterations” shall mean all
improvements, additions, alterations, and fixtures installed in the Premises by Tenant at its expense which are not Trade Fixtures. 
 1.29 Tenant’s Share: The term “Tenant’s Share” shall mean the percentage obtained by dividing Tenant’s Gross Leasable Area by the Building Gross Leasable Area, which as of the Effective Date is the percentage
identified in Section G of the Summary. 
 1.30 Trade Fixtures: The term “Trade Fixtures” shall mean
(i) Tenant’s inventory, furniture, signs, and business equipment, and (ii) anything affixed to the Premises by Tenant at its expense for purposes of trade, manufacture, ornament or domestic use (except replacement of similar work or
material originally installed by Landlord) which can be removed without material injury to the Premises unless such thing has, by the manner in which it is affixed, become an integral part of the Premises. 
 ARTICLE 2 
 DEMISE, CONSTRUCTION, AND ACCEPTANCE 
 2.1 Demise of Premises: Landlord hereby leases to Tenant, and
Tenant leases from Landlord, for the Lease Term upon the terms and conditions of this Lease, the Premises for Tenant’s own use in the conduct of Tenant’s business together with (i) the non-exclusive right to use the number of
Tenant’s Allocated Parking Stalls within the Common Area (subject to the limitations set forth in ¶4.5), and (ii) the non-exclusive right to use the Common Area for ingress to and egress from the Premises. Landlord reserves the use of
the exterior walls, the roof and the area beneath and above the Premises, together with the right to install, maintain, use, and replace ducts, wires, conduits and pipes leading through the Premises in locations which will not materially interfere
with Tenant’s use of the Premises. 
 2.2 Commencement Date: If Landlord is not obligated to construct
improvements prior to the Commencement Date pursuant to ¶2.3, then on the Scheduled Commencement Date Landlord shall deliver possession of the Premises to Tenant and the Leas Term shall commence, and such date shall be referred to herein as the
“Commencement Date.” If Landlord is required to construct improvements to the Premises prior to the Commencement Date, then The Scheduled Commencement Date shall be only an estimate of the actual Commencement Date, and subject to
the provisions of Exhibit B. The term of this Lease shall begin on the first later to occur of the following, which shall be the “Commencement Date”: (i) the date Landlord offers to deliver possession of the premises to Tenant
following substantial completion of all improvements to be constructed by Landlord pursuant to ¶2.3 except for punchlist items which do not prevent Tenant from using the Premises for the Permitted Use and such work as Landlord is required to
perform but cannot complete until Tenant performs necessary portions of construction work it has elected or is required to do; or (ii) the date Tenant enters into occupancy of the Premises June 1, 1996. 
         2.3 Construction pof Improvements: Prior to the Commencement Date, Landlord shall construct certain
improvements that shall constitute or become part of the Premises if required by, and then in accordance with, the terms of Exhibit B and Exhibit C. 
 2.4 Delivery and Acceptance of Possession: If this Lease provides that Landlord must deliver possession of the Premises to Tenant on a certain date, then if Landlord is unable to deliver possession
of the Premises to Tenant on or before such date for any reason whatsoever, this Lease shall not be void or voidable, and Landlord shall not be liable to Tenant for any loss or damage resulting therefrom. Tenant shall accept possession and enter
into good faith occupancy of the entire Premises and commence the operation of its business therein within 30 days after the Commencement Date. Tenant acknowledges that it has had the opportunity to conduct, and has conducted, such inspections of
the Premises as it

  

  

 
deems necessary to evaluate its condition. Except as otherwise specifically provided herein, Tenant agrees to accept possession of the Premises in its then existing condition, “as-is”,
including all patent and latent defects. Tenant’s taking possession of any part of the Premises shall be deemed to be an acceptance by Tenant of any work of improvement done by Landlord in such part as complete and in accordance with the terms
of this Lease except for defects of which Tenant has given Landlord written notice prior to the time Tenant takes possession. At the time and delivers possession of the Premises to Tenant, Landlord and Tenant shall together execute an acceptance
agreement in the form attached as Exhibit D, as appropriately completed. Landlord shall have no obligation to deliver possession, nor shall Tenant be entitled to take occupancy, of the Premises until such acceptance agreement has been executed,
and Tenant’s obligation to pay Base Monthly Rent and Additional Rent shall not be excused or delayed because of Tenant’s failure to execute such acceptance agreement. 
 2.5 Early Occupancy: If Tenant enters or permits its contractors to enter the Premises prior to the Commencement Date with the
written permission of Landlord, it shall do so upon all of the terms of this Lease (including its obligations regarding indemnity and insurance) except those regarding the obligation to pay rent, which shall commence on the Commencement Date.

 ARTICLE 3 
 RENT 
 3.1 Base Monthly Rent: Commencing on the Commencement Date
and continuing throughout the Lease Term, Tenant shall pay to Landlord the Base Monthly Rent set forth in Section K of the Summary. 
 3.2 Additional Rent: Commencing on the Commencement Date and continuing throughout the Lease Term, Tenant shall pay the following as additional rent (the “Additional Rent”): (i) any
late charges or interest due Landlord pursuant to ¶3.4; (ii) Tenant’s Share of Common Operating Expenses as provided in ¶8.1; (iii) Landlord’s share of any Subrent received by Tenant upon certain assignments and
sublettings as required by ¶14.1; (iv) any legal fees and costs due Landlord pursuant to ¶15.9; and (v) any other charges due Landlord pursuant to this Lease. 
 3.3 Payment of Rent: Concurrently with the execution of this Lease by both parties, Tenant shall pay to Landlord the amount set forth
in Section L of the Summary as prepayment of rent for credit against the first installment(s) of Base Monthly Rent. All rent required to be paid in monthly installments shall be paid in advance on the first day of each calendar month during the
Lease Term. If Section K of the Summary provides that the Base Monthly Rent is to be increased during the Lease Term and if the date of such increase does not fall on the first day of a calendar month, such increase shall become effective on the
first day of the next calendar month. All rent shall be paid in lawful money of the United States, without any abatement, deduction or offset whatsoever (except as specifically provided in ¶11.4 and ¶12.3), and without any prior demand
therefore. Rent shall be paid to Landlord at its address set forth in Section P of the Summary, or at such other place as Landlord may designate from time to time. Tenant’s obligation to pay Base Monthly Rent and Tenant’s Share of
Common Operating Expenses shall be prorated at the commencement and expiration of the Lease Term. 
 3.4 Late Charge and
Interest on Rent in Default: If any Base Monthly Rent or Additional Rent is not received by Landlord from Tenant within three business days after Landlord has notified Tenant in writing that payment of such rent has not been received by
Landlord, then Tenant shall immediately pay to Landlord a late charge equal to 5% of such delinquent rent as liquidated damages for Tenant’s failure to make timely payment. In no event shall this provision for a late charge be deemed to grant
to Tenant a grace period or extension of time within which to pay any rent or prevent Landlord from exercising any right or remedy available to Landlord upon Tenant’s failure to pay any rent due under this Lease in a timely fashion, including
any right to terminate this Lease pursuant to ¶13.2B. If any rent remains delinquent for a period in excess of 30 days then, in addition to such late charge, Tenant shall pay to Landlord interest on any rent that is not paid when due at the
Agreed Interest Rate following the date such amount became due until paid. 
         3.5 Security
Deposit: On the Effective Date, Tenant shall deposit with Landlord the amount set forth in Section M of the Summary as security for the performance by Tenant of its obligations under this Lease, and not as prepayment of rent (the
“Security Deposit”). Landlord may from time to time apply such portion of the Security Deposit as is reasonably necessary for the following purposes: (i) to remedy any default by Tenant in the payment of rent; (ii) to repair
damage to the Premises caused by Tenant; (iii) to clean the Premises upon termination of the Lease; and (iv) to remedy any other default of Tenant to the extent permitted by Law and, in this regard, Tenant hereby waives any restriction on
the uses to which the Security Deposit may be put contained in California Civil Code Section 1950.7. In the event the Security Deposit or any portion thereof is so used, Tenant agrees to pay to Landlord promptly upon demand an amount in cash
sufficient to restore the Security Deposit to the full original amount. Landlord shall not be deemed a trustee of the Security Deposit, may use the Security Deposit in business, and shall not be required to segregate it from its general accounts.
Tenant shall not be entitled to any interest on the Security Deposit. If Landlord transfers the Premises during the Lease Term, Landlord may pay the Security Deposit to any transferee of Landlord’s interest in conformity with the provisions of
California Civil Code Section 1950.7 and/or any successor statute, in which event the transferring Landlord will be released from all liability for the return of the Security Deposit. 
  

  

 ARTICLE 4 
 USE OF PREMISES 
 4.1 Limitation on Use. Tenant
shall use the Premises solely for the Permitted Use specified in Section N of the Summary. Tenant shall not do anything in or about the Premises which will (i) cause structural injury to the Building; or (ii) cause damage to any part
of the Building except to the extent reasonably necessary for the installation of Tenant’s Trade Fixtures and Tenant’s Alterations, and then only in a manner which has been first approved by Landlord in writing. Tenant shall not operate
any equipment within the Premises which will (i) materially damage the Building or the Common Area, (ii) overload existing electrical systems or other mechanical equipment servicing the Building, (iii) impair the efficient operation
of the sprinkler system or the heating, ventilating or air conditioning (“HVAC”) equipment within or servicing the Building, or (iv) damage, overload or corrode the sanitary sewer system. Tenant shall not attach, hang or suspend
anything from the ceiling, roof, walls or columns of the Building or set any load on the floor in excess of the load limits for which such items are designed nor operate hard wheel forklifts within the Premises. Any dust, fumes, or waste products
generated by Tenant’s use of the Premises shall be contained an disposed so that they do not (i) create an unreasonable fire or health hazard, (ii) damage the Premises, or (iii) result in the violation of any Law. Except as
approved by Landlord, Tenant shall not change the exterior of the Building or install any equipment or antennas on or make any penetrations of the exterior or roof of the Building. Tenant shall not commit any waste in or about the Premises, and
Tenant shall keep the Premises in an neat, clean, attractive and orderly condition, free of any nuisances. If Landlord designates a standard window covering for use throughout the Building, Tenant shall use this standard window covering to cover all
windows in the Premises. Tenant shall not conduct on any portion of the Premises or the Project any sale of any kind, including any public or private auction, fire sale, going-out-of-business sale, distress sale or other liquidation sale.

 4.2 Compliance with Regulations: Tenant shall not use the Premises in any manner which violates any Laws or Private
Restrictions which affect the Premises. Tenant shall abide by and promptly observe and comply with all Laws and Private Restrictions. Tenant shall not use the Premises in any manner which will cause a cancellation of any insurance policy covering
Tenant’s Alterations or any improvements installed by Landlord at its expense or which poses an unreasonable risk of damage or injury to the Premises. Tennant shall not sell, or permit to be kept, used, or sold in or about the Premises any
article which may be prohibited by the standard form of fire insurance policy. Tenant shall comply with all reasonable requirements of any insurance company, insurance underwriter, or Board of Fire Underwriters which are necessary to maintain the
insurance coverage carried by either Landlord or Tenant pursuant to this Lease. 
 4.3 Outside Areas: No materials,
supplies, tanks or containers, equipment, finished products or semi-finished products, raw materials, inoperable vehicles or articles of any nature shall be stored upon or permitted to remain outside of the Premises except in fully fenced and
screened areas outside the Building which have been designed for such purpose and have been approved in writing by Landlord for such use by Tenant. 
 4.4 Signs: Tenant shall not place on any portion of the Premises any sign, placard, lettering in or on windows, banner, displays or other advertising or communicative material which is visible from
the exterior of the Building without the prior written approval of Landlord. All such approved signs shall strictly conform to all Laws, Private Restrictions, and Landlord’s sign criteria attached as Exhibit F, and shall be installed at the
expense of Tenant. Tenant shall maintain such signs in good condition and repair. 
 4.5 Parking: Tenant is allocated and
shall have the non-exclusive right to use not more than the number of Tenant’s Allocated Parking Stalls contained within the Project described in Section H of the Summary for its use and the use of Tenant’s Agents, the location of
which may be designated from time to time by Landlord. Tenant shall not at any time use more parking spaces than the number so allocated to Tenant or park its vehicles or the vehicles of others in any portion of the Project, not designated by
Landlord as a non-exclusive parking area. Tenant shall not have the exclusive right to use any specific parking space. If Landlord grants to any other tenant the exclusive right to use any particular parking space(s), Tenant shall not use such
spaces. Landlord reserves the right, after having given Tenant reasonable notice, to have any vehicles owned by Tenant or Tenant’s Agents utilizing parking spaces in excess of the parking spaces allowed for Tenant’s use to be towed away at
Tenant’s cost. All trucks and delivery vehicles shall be (i) parked at the rear of the Building, (ii) loaded and unloaded in a manner which does not interfere with the businesses of other occupants of the Project, and
(iii) permitted to remain on the Project only so long as is reasonably necessary to complete loading and unloading. In the event Landlord elects or is required by Law to limit or control parking in the Project, whether by validation of parking
tickets or any other method of assessment, Tenant agrees to participate in such validation or assessment program under such reasonable rules and regulations as are from time to time established by Landlord. 
         4.6 Rules and Regulations: Landlord may from time to time promulgate reasonable and nondiscriminatory
rules and regulations applicable to all occupants of the Project for the care and orderly management of the Project and the safety of its tenants and invitees. Such rules and regulations shall be binding upon Tenant ten (10) days following
delivery of a copy thereof to Tenant, and Tenant agrees to abide by such rules and regulations. If there is a conflict between the rules and regulations and any of the provisions of this Lease, the provisions of this Lease shall prevail. Landlord
shall not be responsible for the violation by any other tenant of the Project of any such rule and regulations. 
  

  

 ARTICLE 5 
 TRADE FIXTURES AND ALTERATIONS 
 5.1 Trade
Fixtures. Throughout the Lease Term, Tenant may provide and install, and shall maintain in good condition, any Trade Fixtures required in the conduct of its business in the Premises. All Trade Fixtures shall remain Tenant’s property.

 5.2 Tenant’s Alterations: Construction by Tenant, of Tenant’s Alterations shall be governed by the
following: 
 A. Tenant shall not construct any Tenant’s Alterations or otherwise alter the Premises without
Landlord’s prior written approval (which shall not be unreasonably withheld). Tenant shall be entitled, without Landlord’s prior approval, to make Tenant’s Alterations (i) which do not affect the structural or exterior parts or
water tight character of the Building, and (ii) the reasonably estimated cost of which, plus the original cost of any part of the Premises removed or materially altered in connection with such Tenant’s Alterations, together do not exceed
the Permitted Tenant Alterations Limit specified in Section O of the Summary per work of improvement. In the event Landlord’s approval for any Tenant’s Alterations is required, Tenant shall not construct the Leasehold Improvement
until Landlord has approved in writing the plans and specifications therefore, and such Tenant’s Alterations shall be constructed substantially in compliance with such approved plans and specifications by a licensed contractor first approved by
Landlord. All Tenant’s Alterations constructed by Tenant shall be constructed by a licensed contractor in accordance with all Laws using new materials of good quality. 
 B. Tenant shall not commence construction of any Tenant’s Alterations until (i) all required governmental approvals and permits
have been obtained, (ii) all requirements regarding insurance imposed by this Lease have been satisfied, (iii) Tenant has given Landlord at least five days’ prior written notice of its intention to commence such construction, and
(iv) if reasonably requested by Landlord, Tenant has obtained contingent liability and broad form builders’ risk insurance in an amount reasonably satisfactory to Landlord if there are any perils relating to the proposed construction not
covered by insurance carried pursuant to Article 9. 
 C. All Tenant’s Alterations shall remain the property of Tenant
during the Lease Term but shall not be altered or removed from the Premises. At the expiration or sooner termination of the Lease Term, all Tenant’s Alterations shall be surrendered to Landlord as part of the realty and shall then become
Landlord’s property, and Landlord shall have no obligation to reimburse Tenant for all or any portion of the value or cost thereof; provided, however, that if Landlord requires Tenant to remove any Tenant’s Alterations, Tenant shall so
remove such Tenant’s Alterations prior to the expiration or sooner termination of the Lease Term. Notwithstanding the foregoing, Tenant shall not be obligated to remove any Tenant’s Alterations with respect to which the following is true:
(i) Tenant was required, or elected, to obtain the approval of Landlord to the installation of the Leasehold Improvement in question; (ii) at the time Tenant requested Landlord’s approval, Tenant requested of Landlord in writing that
Landlord inform Tenant of whether or not Landlord would require Tenant to remove such Leasehold Improvement at the expiration of the Lease Term; and (iii) at the time Landlord granted its approval, it did not inform Tenant that it would require
Tenant to remove such Leasehold Improvements at the expiration of the Lease Term. 
 5.3 Alterations Required by Law:
Tenant shall make any alteration, addition or change of any sort to the Premises that is required by any Law because of (i) Tenant’s particular use or change of use of the Premises; (ii) Tenant’s application for any permit or
governmental approval; or (iii) Tenant’s construction or installation of any Tenant’s Alterations or Trade Fixtures. Any other alteration, addition, or change required by Law which is not the responsibility of Tenant pursuant to the
foregoing shall be made by Landlord (subject to Landlord’s right to reimburse from Tenant specified in ¶5.4). 
 5.4
Amortization of Certain Capital Improvements: Tenant shall pay Additional Rent in the event Landlord reasonably elects or is required to make any of the following kinds of capital improvements to the Project and the cost thereof is not
reimbursable as a Common Operating Expense: (i) capital improvements required to be constructed in order to comply with any Law (excluding any Hazardous Materials Law) not in effect or applicable to the Project as of the Effective Date;
(ii) modification of existing or construction of additional capital improvements or building services equipment for the purpose of reducing the consumption of utility services or Common Operating Expenses of the Project; (iii) replacement
of capital improvements or building service equipment existing as of the Effective Date when required because of normal wear and tear; and (iv) restoration of any part of the Project that has been damaged by any peril to the extent the cost
thereof is not covered by insurance proceeds actually recovered by Landlord up to a maximum amount per occurrence of 10% of the then replacement cost of the Project. The amount of Additional Rent Tenant is to pay with respect to each such capital
improvement shall be determined as follows: 
 A. All costs paid by Landlord to construct such improvements (including financing
costs) shall be amortized over the useful life of such improvement (as reasonably determined by Landlord in accordance with generally accepted accounting principles) with interest on the unamortized balance at the then prevailing market rate
Landlord would pay if it borrowed funds to construct such improvements from an institutional leader, and Landlord shall inform Tenant of the monthly amortization payment required to so amortize such costs, and shall also provide Tenant with the
information upon which such determination is made. 
  

  

 B. As Additional Rent, Tenant shall pay at the same time the Base Monthly Rent is due an
amount equal to Tenant’s Share of that portion of such amortization payment fairly allocable to the Building (as reasonably determined by Landlord) for each month after such improvements are completed until the first to occur of (i) the
expiration of the Lease Term (as it may be extended), or (ii) the end of the term over which such costs were amortized. 
 5.5 Mechanic’s Liens: Tenant shall keep the Project free from any liens and shall pay when due all bills arising out of any work performed, materials furnished, or obligations incurred by Tenant or Tenant’s Agents relating
to the Project. If any claim of lien is recorded (except those caused by other tenants in the Project, by Landlord or Landlord’s Agents), Tenant shall bond against or discharge the same within 10 days after the same has been recorded against
the Project. Should any lien be filed against the Project or any action be commenced affecting title to the Project, the party receiving notice of such lien or action shall immediately give the other party written notice thereof. 
 5.6 Taxes on Tenant’s Property: Tenant shall pay before delinquency any and all taxes, assessments, license fees and public
charges levied, assessed or imposed against Tenant or Tenant’s estate in this Lease or the property of Tenant situated within the Premises which become due during the Lease Term. If any tax of any other charge is assessed by any governmental
agency because of the execution of this Lease, such tax shall be paid by Tenant. On demand by Landlord, Tenant shall furnish Landlord with satisfactory evidence of these payments. 
 ARTICLE 6 
 REPAIR AND MAINTENANCE 

6.1 Tenant’s Obligation to Maintain: Except as otherwise provided in ¶6.2, ¶11.1, and ¶12.3, Tenant shall be
responsible for the following during the Lease Term: 
 A. Tenant shall clean and maintain in good order, condition, and repair
and replace when necessary the Premises and every part thereof, through regular inspections and servicing, including, but not limited to: (i) all plumbing and sewage facilities (including all sinks, toilets, faucets and drains), and all ducts,
pipes, vents or other parts of the HVAC or plumbing system; (ii) all fixtures, interior walls, floors, carpets and ceilings; (iii) all windows, doors, entrances, plate glass, showcases and skylights (including cleaning both interior and
exterior surfaces); (iv) all electrical facilities and all equipment (including all lighting fixtures, lamps, bulbs, tubes, fans, vents, exhaust equipment and systems); and (v) any automatic fire extinguisher equipment in the Premises.

 B. With respect to utility facilities serving the Premises (including electrical wiring and conduits, gas lines, water pipes,
and plumbing and sewage fixtures and pipes), Tenant shall be responsible for the maintenance and repair of any such facilities which serve only the Premises, including all such facilities which serve only the Premises, including all such facilities
that are within the walls or floor, or on the roof of the Premises, and any part of such facility that is not within the Premises, but only up to the point where such facilities join a main or other junction (e.g., sewer main or electrical
transformer) from which such utility services are distributed to other parts of the Project as well as to the Premises. Tenant shall replace any damaged or broken glass in the Premises (including all interior and exterior doors and windows) with
glass of the same kind, size and quality. Tenant shall repair any damage to the Premises (including exterior doors and windows) caused by vandalism or any unauthorized entry. 
 C. Tenant shall (i) maintain, repair and replace when necessary all HVAC equipment which services only the Premises, and shall keep the
same in good condition through regular inspection and servicing, and (ii) maintain continuously throughout the Lease Term a service contract for the maintenance of all such HVAC equipment with a licensed HVAC repair and maintenance contractor
reasonably approved by Landlord, which contract provides for the periodic inspection and servicing of the HVAC equipment at least once every 60 days during the Lease Term. Notwithstanding the foregoing, Landlord may elect at any time to assume
responsibility for the maintenance, repair and replacement of such HVAC equipment which serves only the Premises. Tenant shall maintain continuously throughout the Lease Term a service contract for the washing of all windows (both interior and
exterior services) in the Premises with a contractor approved by Landlord, which contract provides for the period washing of all such windows at least once every 60 days during the Lease Term that the quality of work is reasonably consistent with
that of professional contractors. Tenant shall furnish Landlord with copies of all such services contracts, which shall provide that they may not be cancelled or changed without at least 30 days’ prior written notice to Landlord. 
 D. All repairs and replacements required of Tenant shall be promptly made with new materials of like kind and quality. If the work affects
the structural parts of the Building or if the estimated cost of any item of repair or replacement is in excess of the Permitted Tenant’s Alterations Limit, then Tenant shall first obtain Landlord’s written approval of the scope of the
work, plans therefore, materials to be used, and the contractor. 
  

  

 6.2 Landlord’s Obligation to Maintain: Landlord shall repair, maintain and
operate the Common Area and repair and maintain the roof, exterior and structural parts of the building(s) including the structural components of the floor slab, foundation, and bearing walls located on the Project so that the same are kept in good
order and repair. If there is central HVAC or other building service equipment and/or utility facilities serving portions of the Common Area and/or both the Premises and other parts of the Building, Landlord shall maintain and operate (and replace
when necessary) such equipment. Landlord shall not be responsible for repairs required by an accident, fire or other peril or for damage caused to any part of the Project by any act or omission of Tenant or Tenant’s Agents except as otherwise
required by Article 11 and subject to Paragraph 9.4. Landlord may engage contractors of its choice to perform the obligations required of it by this Article, and the necessity of any expenditure to perform such obligations shall be at the sole
but reasonable discretion of Landlord. 
 6.3 Control of Common Area: Landlord shall at all times have exclusive control
of the Common Area. Landlord shall have the right, without the same constituting an actual or constructive eviction and without entitling Tenant to any abatement of rent, to: (i) close any part of the Common Area to whatever extent required in
the opinion of Landlord’s counsel to prevent a dedication thereof or the accrual of any prescriptive rights therein; (ii) temporarily close the Common Area to perform maintenance or for any other reason deemed sufficient by Landlord;
(iii) change the shape, size, location and extent of the Common Area; (iv) eliminate from or add to the Project any land or improvement, including multi-deck parking structures; (v) make changes to the Common Area including, without
limitation, changes in the location of driveways, entrances, passageways, doors and doorways, elevators, stairs, restrooms, exits, parking spaces, parking areas, sidewalks or the direction of the flow of traffic and the site of the Common Area;
(vi) remove unauthorized persons from the Project; and/or (vii) change the name or address of the Building or Project. Tenant shall keep the Common Area clear of all obstructions created or permitted by Tenant. If in the opinion of
Landlord unauthorized persons are using any of the Common Area by reason of the presence of Tenant in the Building, Tenant, upon demand of Landlord, shall restrain such unauthorized use by appropriate proceedings. In exercising any such rights
regarding the Common Area, (i) Landlord shall make a reasonable effort to minimize any disruption to Tenant’s business, and (ii) Landlord shall not exercise its rights to control the Common Area in a manner that would materially
interfere with Tenant’s use of the Premises without first obtaining Tenant’s consent. Landlord shall have no obligation to provide guard services or other security measures for the benefit of the Project. Tenant assumes all responsibility
for the protection of Tenant and Tenant’s Agents from acts of third parties; provided, however, that nothing contained herein shall prevent Landlord, at its sole option, from providing security measures for the Project. 
 ARTICLE 7 
 WASTE DISPOSAL AND UTILITIES 
 7.1 Waste Disposal: Tenant shall store its waste either inside the
Premises or within outside trash enclosures that are fully fenced and screened in compliance with all Private Restrictions, and designed for such purpose. All entrances to such outside trash enclosures shall be kept closed, and waste shall be stored
in such manner as not to be visible from the exterior of such outside enclosures. Tenant shall cause all of its waste to be regularly removed from the Premises at Tenant’s sole cost. Tenant shall keep all fire corridors and mechanical equipment
rooms in the Premises free and clear of all obstructions at all times. 
 7.2 Hazardous Materials: Landlord and Tenant
agree as follows with respect to the existence or use of the Hazardous Materials on the Project: 
 A. Any handling,
transportation, storage, treatment, disposal or use of Hazardous Materials by Tenant and Tenant’s Agents after the Effective Date in or about the Project shall strictly comply with all applicable Hazardous Materials Laws. Tenant shall
indemnify, defend upon demand with counsel reasonable acceptable to Landlord, and hold harmless Landlord from and against any liabilities, losses, claims, damages, lost profits, consequential damages, interest, penalties, fines, monetary sanctions,
attorneys’ fees, experts’ fees, court costs, remediation costs, investigation costs, and other expenses which result from or arise in any manner whatsoever out of the use, storage treatment, transportation, release, or disposal of
Hazardous Materials on or about the Project by Tenant or Tenant’s Agents after the Effective Date. 
 B. If the presence of
Hazardous Materials on the Project caused or permitted by Tenant or Tenant’s Agents after the Effective Date results in contamination or deterioration of water or soil resulting in a level of contamination greater than the levels established as
acceptable by any governmental agency having jurisdiction over such contamination, then Tenant shall promptly take any and all action necessary to investigate and remediate such contamination if required by Law or as a condition to the issuance or
continuing effectiveness of any governmental approval which relates to the use of the Project or any part thereof. Tenant shall further be solely responsible for, and shall defend, indemnify and hold Landlord and its agents harmless from and
against, all claims, costs and liabilities, including attorneys’ fees and costs, arising out of or in connection with any investigation and remediation required hereunder to return the Project to its condition existing prior to the appearance
of such Hazardous Materials                      Tenant or Tenant’s agents. 
  

  

 C. Landlord and Tenant shall each give written notice to the other as soon as reasonably
practicable of (i) any communication received from any governmental authority concerning Hazardous Materials which relates to the Project, and (ii) any contamination of the Project by Hazardous Materials which constitutes a violation of
any Hazardous Materials Law. Tenant may use small quantities of household chemicals such as adhesives, lubricants, and cleaning fluids in order to conduct its business at the Premises and such other Hazardous Materials as are necessary for the
operation of Tenant’s business of which Landlord receives notice prior to such Hazardous Materials being brought onto the Premises and which Landlord consents in writing may be brought onto the Premises. At any time during the Lease Term,
Tenant shall, within five business days after written request therefore received from Landlord, disclose in writing all Hazardous Materials that are being used by Tenant on the Project, the nature of such use, and the manner of storage and disposal.

 D. Landlord may cause testing wells to be installed on the Project, and may cause the ground water to be tested to detect the
presence of Hazardous Material by the use of such tests as are then customarily used for such purposes. If Tenant so requests, Landlord shall supply Tenant with copies of such test results. The cost of such tests, and of the installation,
maintenance, repair and replacement of such wells shall be paid by Tenant if such tests disclose the existence of facts which give rise to liability of Tenant pursuant to its indemnity given in ¶7.2A and/or ¶7.2B; otherwise, such costs
shall be paid entirely by Landlord. 
 E. As used herein, the term “Hazardous Material,” means any hazardous or toxic
substance, material or waste which is or becomes regulated by any local governmental authority, the State of California or the United States Government. The term “Hazardous Material,” includes, without limitation, petroleum products,
asbestos, PCB’s, and any material or substance which is (i) listed under Article 9 or defined as hazardous or extremely hazardous pursuant to Article II of Title 22 of the California Administrative Code, Division 4, Chapter 20,
(ii) defined as a “hazardous waste” pursuant to Section 1004 of the Federal Resource Conservation and Recovery Act, 42 U.S.C. 6901 et seq. (42 U.S.C. 6903), or (iii) defined as a “hazardous substance” pursuant to
Section 101 of the Comprehensive Environmental Response; Compensation and Liability Act, 42 U.S.C. 9601 et seq. (42 U.S.C. 9601). As used herein, the term “Hazardous Material Law” shall mean any statute, law, ordinance, or regulation
of any governmental body or agency (including the U.S. Environmental Protection Agency, the California Regional Water Quality Control Board, and the California Department of Health Services) which regulates the use, storage, release or disposal of
any Hazardous Material. 
 F. The obligation of Landlord and Tenant under this ¶7.2 shall survive the expiration or earlier
termination of the Lease Term. The rights and obligations of Landlord and Tenant with respect to issues relating to Hazardous Materials are exclusively established by this ¶7.2. In the event of any inconsistency between any other part of this
Lease and this ¶7.2, the terms of this ¶7.2 shall control. 
 7.3 Utilities: Tenant shall promptly pay, as the
same become due, all charges for water, gas, electricity, telephone, sewer service, waste pick-up and any other utilities, materials or services furnished directly to or used by Tenant on or about the Premises during the Lease Term, including
without limitation (i) meter, use and/or connection fees, hook-up fees, or standby fee (excluding any connection fees or hook-up fees which relate to making the existing electrical, gas, and water service available to the Premises as of the
Commencement Date), and (ii) penalties for discontinued or interrupted service. If any utility service is not separately metered to the Premises, then Tenant shall pay its pro rata share of the cost of such utility service with all others
served by the service not separately metered. However, if Landlord determines that Tenant is using a disproportionate amount of any utility service not separately metered, then Landlord at its election may (i) periodically charge
Tenant, as Additional Rent, a sum equal to Landlord’s reasonable estimate of the cost of Tenant’s excess use of such utility service, or (ii) install a separate meter (at Tenant’s expense) to measure the utility service supplied
to the Premises. 
 7.4 Compliance with Governmental Regulations: Landlord and Tenant shall comply with all
rules, regulations and requirements promulgated by national, state or local governmental agencies or utility suppliers concerning the use of utility services, including any rationing, limitation or other control, Tenant shall not be entitled to
terminate this Lease nor to any abatement in rent by reason of such compliance. 
 ARTICLE 8 
 COMMON OPERATING EXPENSES 
         8.1 Tenant’s Obligation to Reimburse: As Additional Rent, Tenant shall pay Tenant’s Share (specified in Section G of the Summary) of all Common Operating Expenses;
provided, however, if the Project contains more than one building, then Tenant shall pay Tenant’s Share of all Common Operating Expenses fairly allocable to the Building including (i) all Common Operating Expenses paid with respect to the
maintenance, repair, replacement and use of the Building, and (ii) a proportionate share (based on the Building Gross Leasable Area as a percentage of the Project Gross Leasable Area) of all Common Operating Expenses which relate to the Project
in general are not fairly allocable to any one building that is part of the Project. Tenant shall pay such share of the actual Common Operating Expenses incurred or paid by Landlord but not theretofore billed to Tenant within 10 days after receipt
of a written bill therefore from Landlord, on such periodic basis as Landlord shall designate, but in no event more frequently than once a month. Alternatively, Landlord may from time to time require that Tenant pay Tenant’s Share of Common
Operating Expenses in advance in estimated monthly installments, in

  

  

 
accordance with the following: (i) Landlord shall deliver to Tenant Landlord’s reasonable estimate of the Common Operating expenses it anticipates will be paid or incurred for the
Landlord’s fiscal year in question; (ii) during such Landlord’s fiscal year Tenant shall pay such share of the estimated Common Operating Expenses in advance in monthly installments as required by Landlord due with the installments of
the Base Monthly Rent; and (iii) within 90 days after the end of each Landlord’s fiscal year, Landlord shall furnish to Tenant a statement in reasonable detail of the actual Common Operating Expenses paid or incurred by Landlord during the
just ended Landlord’s fiscal year and thereupon there shall be an adjustment between Landlord and Tenant, with payment to Landlord or credit (or cash if at the end of the Lease Term) by Landlord against the next installment of Base Monthly
Rent, as the case may require, within 10 days after delivery by Landlord to Tenant of said statement, so that Landlord shall receive the entire amount of Tenant’s Share of all Common Operating Expenses for such Landlord’s fiscal year and
no more. Tenant shall have the right at its expense, exercisable upon reasonable prior written notice to Landlord, to inspect at Landlord’s office during normal business hours Landlord’s books and records as they relate to Common Operating
Expenses. Such inspection must be within 30 days of Tenant’s receipt of Landlord’s annual statement for the same, and shall be limited to verification of the charges contained in such statement. Tenant may not withhold payment of such bill
pending completion of such inspection. 
 8.2 Common Operating Expenses Defined: The term “Common Operating
Expenses” shall mean the following: 
 A. All costs and expenses paid or incurred by Landlord in doing the following
(including payments to independent contractors providing services related to the performance of the following): (i) maintaining, cleaning, repairing and resurfacing the roof (including repair of leaks) and the exterior surfaces (including
painting) of all buildings located on the Project; (ii) maintenance of the liability, fire and property damage insurance covering the Project carried by Landlord pursuant to ¶9.2 (including the prepayment of premiums for coverage of up to
one year); (iii) maintaining, repairing, operating and replacing when necessary HVAC equipment; (iv) providing utilities to the Common Area (including lighting, trash removal and water for landscaping irrigation); (v) complying with
all applicable Laws and Private Restrictions; (vi) operating, maintaining, repairing, cleaning, painting, restriping and resurfacing the Common Area; (vii) replacement or installation of lighting fixtures, direction or other signs and
signals, irrigation systems, trees, shrubs, ground cover and other plant materials, and all landscaping in the Common Area; and (viii) providing security. For the purpose of determining operating expenses as set forth in Paragraph 8.2 hereof,
“Common Operating Expenses” shall in no event include expenses incurred for the following: (i) Leasing commissions, attorney’s fees, costs and disbursement and other expenses incurred in connection with negotiations or disputes
with tenants, other occupants, or prospective tenants or other occupants; (ii) Depreciation; and (iii) Advertising and promotional expenditures. 
 B. The following costs: (i) Real Property Taxes as defined in ¶8.3; (ii) the amount of any “deductible” paid by Landlord with respect to damage caused by any insured Peril;
(iii) the cost to repair damage caused by an Uninsured Peril up to a maximum amount in any 12 month period equal to 2% of the replacement cost of the buildings or other improvements damaged; and (iv) that portion of all compensation
(including benefits and premiums for workers’ compensation and other insurance) paid to or on behalf of employees of Landlord but only to the extent they are involved in the performance of the work described by ¶8.2A that is fairly
allocable to the Project; 
 C. Fees for management services rendered by either Landlord or a third party manager engaged by
Landlord (which may be a party affiliated with Landlord), except that the total amount charged for management services and included in Tenant’s Share of Common Operating Expenses shall not exceed the monthly rate of 5% 4% of
the Base Monthly Rent. 
 D. All additional costs and expenses incurred by Landlord with respect to the operation, protection,
maintenance, repair and replacement of the Project which would be considered a current expense (and not a capital expenditure) pursuant to generally accepted accounting principles; provided, however, that Common Operating Expenses shall not include
any of the following: (i) payments on any loans or ground leases affecting the Project; (ii) depreciation of any buildings or any major systems of building service equipment within the Project; (iii) leasing commissions; (iv) the
cost of tenant improvements installed for the exclusive use of other tenants of the Project; and (v) any cost incurred in complying with Hazardous Materials Laws, which subject is governed exclusively by ¶7.2. 
 8.3 Real Property Taxes Defined: The term “Real Property Taxes” shall mean all taxes, assessments, levies, and other
charges of any kind or nature whatsoever, general and special, foreseen and unforeseen (including all installments of principal and interest required to pay any existing or future general or special assessments for public improvements, services or
benefits, and any increases resulting from reassessments resulting from a change in ownership, new construction, or any other cause), now or hereafter imposed by any governmental or quasi-governmental authority or special district having the direct
or indirect power to tax or levy assessments, which are levied or assessed against, or with respect to the value, occupancy or use of all or any portion of the Project (as now constructed or as may at any time hereafter be constructed, altered, or
otherwise changed) or Landlord’s interest therein, the fixtures, equipment and other property of Landlord, real or personal, that are an integral part of and located on the

  

  

 
Project, the gross receipts, income, or rentals from the Project, or the use of parking areas, public utilities, or energy within the Project, or Landlord’s business of leasing the Project.
If at any time during the Lease Term the method of taxation or assessment of the Project prevailing as of the Effective Date shall be altered so that in lieu of or in addition to any Real Property Tax described above there shall be levied, assessed
or imposed (whether by reason of a change in the method of taxation or assessment, creation of a new tax or charge, or any other cause) an alternate or additional tax or charge (i) on the value, use or occupancy of the Project or
Landlord’s interest therein, or (ii) on or measured by the gross receipts, income or rentals from the Project, on Landlord’s business of leasing the Project, or computed in any manner with respect to the operation of the Project, then
any such tax or charge, however designated, shall be included within the meaning of the term “Real Property Taxes” for purposes of this Lease. If any Real Property Tax is based upon property or rents unrelated to the Project, then only
that part of such Real Property Tax that is fairly allocable to the Project shall be included within the meaning of the term “Real Property Taxes”. Notwithstanding the foregoing, the term “Real Property Taxes” shall not include
estate, inheritance, transfer, gift or franchise taxes of Landlord or the federal or state net income tax imposed on Landlord’s income from all sources. 
 ARTICLE 9 
 INSURANCE 
 9.1 Tenant’s Insurance: Tenant shall maintain insurance complying with all of the following: 
 A. Tenant shall procure, pay for and keep in full force and effect the following: 
 (1) Commercial general liability insurance, including property damage, against liability for personal injury, bodily injury, death and
damage to property occurring in or about, or resulting from an occurrence in or about, the Premises with combined single limit coverage of not less than the amount of Tenant’s Liability Insurance Minimum specified in Section P of the
Summary, which insurance shall contain a “contractual liability” endorsement insuring Tenant’s performance of Tenant’s obligation to indemnify Landlord contained in ¶10.3; 
 (2) Fire and property damage insurance in so-called “all risk” form insuring Tenant’s Trade Fixtures and Tenant’s
Alterations for the full actual replacement cost thereof; 
 (3) Such other insurance that reasonably
is either (i) required by any Lender, or (ii) reasonably required by Landlord and customarily carried by tenants of similar property in similar business. 
 B. Where applicable and required by Landlord, each policy of insurance required to be carried by Tenant pursuant to this ¶9.1:
(i) shall name Landlord and such other parties in interest as Landlord reasonably designates as additional insured; (ii) shall be primary insurance which provides that the insurer shall be liable for the full amount of the loss up to and
including the total amount of liability set forth in the declarations without the right of contribution from any other insurance coverage of Landlord; (iii) shall be in a form satisfactory to Landlord; (iv) shall be carried with companies
reasonably acceptable to Landlord; (v) shall provide that such policy shall not be subject to cancellation, lapse or change except after at least 3 days prior written notice to Landlord so long as such provision of 30 days notice is reasonably
obtainable, but in any event not less than 10 days prior written notice; (vi) shall not have a “deductible” in excess of such amount as is approved reasonably by Landlord; (vii) shall contain a cross liability endorsement; and
(viii) shall contain a “severability” clause. If Tenant has in full force and effect a blanket policy of liability insurance with the same coverage for the Premises as described above, as well as other coverage of other premises and
properties of Tenant, or in which Tenant has some interest, such blanket insurance shall satisfy the requirements of this ¶9.1. 
 C. A copy of each paid-up policy evidencing the insurance required to be carried by Tenant pursuant to this ¶9.1 (appropriately authenticated by the insurer) or a certificate of the insurer, certifying that such policy has been issued,
providing the coverage required by this ¶9.1, and containing the provisions specified herein, shall be delivered to Landlord prior to the time Tenant or any of its Agents enters the Premises and upon renewal of such policies, but not less than
5 days prior to the expiration of the term of such coverage. Landlord may, at any time, and from time to time, inspect and/or copy any and all insurance policies required to be procured by Tenant pursuant to this ¶9.1. If any Lender or
insurance advisor reasonably determines at any time that the amount of coverage required for any policy of insurance Tenant is to obtain pursuant to this ¶9.1 is not adequate, then Tenant shall increase such coverage for such insurance to such
amount as such Lender or insurance advisor reasonably deems adequate, not to exceed the level of coverage for such insurance commonly carried by comparable businesses similarly situated. 
 9.2 Landlord’s Insurance. Landlord shall have the following obligations and options regarding insurance: 
                 A. Landlord shall maintain a policy or policies of fire and
property damage insurance in so-called “all risk” form insuring Landlord (and such others as Landlord may designate) against loss of rents for a period of not less than 12 months and from physical damage to the Project with coverage of not
less than the full replacement cost thereof. Landlord may so insure the Project separately, or may insure the Project with other property owned by Landlord which Landlord elects to insure together under the same policy or policies. Such fire and
property damage insurance (i) may be endorsed to cover loss caused by such additional perils against which Landlord may

  

  

 
elect to insure, including earthquake and/or flood, and to provide such additional coverage as Landlord reasonably requires, and (ii) shall contain reasonable “deductibles” which,
in the case of earthquake and flood insurance, may be up to 15% of the replacement value of the property insured or such higher amount as is then commercially reasonable. Landlord shall not be required to cause such insurance to cover any Trade
Fixtures or Tenant’s Alterations of Tenant. 
 B. Landlord may maintain a policy or policies of commercial general
liability insurance insuring Landlord (and such others as are designated by Landlord) against liability for personal injury, bodily injury, death and damage to property occurring or resulting from an occurrence in, on or about the Project, with
combined single limit coverage in such amount as Landlord from time to time determines is reasonably necessary for its protection. 
 9.3 Tenant’s Obligation to Reimburse: If Landlord’s insurance rates for the Building are increased at any time during the Lease Term as a result of the nature of Tenant’s use of the Premises, Tenant shall reimburse
Landlord for the full amount of such increase immediately upon receipt of a bill from Landlord therefor. 
 9.4 Release and
Waiver of Subrogation: The parties hereto release each other, and their respective agents and employees, from any liability for injury to any person or damage to property that is caused by or results from any risk insured against under any valid
and collectible insurance policy carried by either of the parties which contains a waiver of subrogation by the insurer and is in force at the time of such injury or damage; subject to the following limitations: (i) the foregoing provision
shall not apply to the commercial general liability insurance described by subparagraphs ¶9.1A and ¶9.2B; (ii) such release shall apply to liability resulting from any risk insured against or covered by self-insurance maintained or
provided by Tenant to satisfy the requirements of ¶9.1 to the extent permitted by this Lease; and (iii) Tenant shall not be released from any such liability to the extent any damages resulting from such injury or damage are not covered by
the recovery obtained by Landlord from such insurance, but only if the insurance in question permits such partial release in connection with obtaining a waiver of subrogation from the insurer. This release shall be in effect only so long as the
applicable insurance policy contains a clause to the effect that this release shall not affect the right of the insured to recover under such policy. Each party shall use reasonable efforts to cause each insurance policy obtained by it to provide
that the insurer waives all right of recovery by way of subrogation against the other party and its agents and employees in connection with any injury or damages covered by such policy. However, if any insurance policy cannot be obtained with such a
waiver of subrogation, or if such waiver of subrogation is only available at additional cost and the party for whose benefit the waiver is to be obtained does not pay such additional cost, then the party obtaining such insurance shall notify the
other party of that fact and thereupon shall be relieved of the obligation to obtain such waiver of subrogation rights from the insurer with respect to the particular insurance involved. This waiver shall also apply in any situation where there is
no “valid and collectible” insurance policy due to a failure of a party in breach of this Lease to maintain insurance required hereunder. 
 ARTICLE 10 
 LIMITATION ON LANDLORD’S 
 LIABILITY AND INDEMNITY 
 10.1 Limitation on Landlord’s Liability: Landlord shall not be liable to Tenant, nor shall Tenant be entitled to terminate this Lease or to any abatement of rent (except as expressly provided
otherwise herein), for any injury to Tenant or Tenant’s Agents, damage to the property of Tenant or Tenant’s Agents, or loss to Tenant’s business resulting from any cause, including without limitation any: (i) failure,
interruption or installation of any HVAC or other utility system or service; (ii) failure to furnish or delay in furnishing any utilities or services when such failure or delay is caused by fire or other peril, the elements, labor disturbances
of any character, or any other accidents or other conditions beyond the reasonable control of Landlord; (iii) limitation, curtailment, rationing or restriction on the use of water or electricity, gas or any other form of energy or any services
or utility serving the Project; (iv) vandalism or forcible entry by unauthorized persons or the criminal act of any person; or (v) penetration of water into or onto any portion of the Premises or the Building through roof leaks or
otherwise. Notwithstanding the foregoing but subject to ¶9.4, Landlord shall be liable for any such injury, damage or loss which is proximately caused by Landlord’s or its agents’ willful misconduct or active negligence of which
Landlord has actual notice and a reasonable opportunity to cure but which it fails to so cure. 
 10.2 Limitation on
Tenant’s Recourse: If Landlord is a corporation, trust, partnership, joint venture, unincorporated association or other form of business entity: (i) the obligations of Landlord shall not constitute personal obligations of the officers,
directors, trustees, partners, joint venturers, members, owners, stockholders, or other principals or representatives of such business entity; and (ii) Tenant shall not have recourse to the assets of such officers, directors, trustees,
partners, joint venturers, members, owners, stockholders, principals or representatives except to the extent of their interest in the Project. Tenant shall have recourse only to the interest of Landlord in the Project for the satisfaction of the
obligations of Landlord and shall not have recourse to any other assets of Landlord for the satisfaction of such obligation. 
         10.3 Indemnification of Landlord: Subject to Paragraph 9.4, Tenant shall hold harmless, indemnify and defend Landlord, and its employees, agents and contractors, with competent
counsel reasonably satisfactory to Landlord (and Landlord agrees to accept counsel that any insurer requires be used), from all liability, penalties, losses, damages, costs,

  

  

 
expenses, causes of action, claims and/or judgments arising by reason of any death, bodily injury, personal injury or property damage resulting from (i) any cause or causes whatsoever (other
than the willful misconduct or active negligence of Landlord of which Landlord has had notice and a reasonable time to cure, but which Landlord has filed to cure) occurring in or a bout or resulting from an occurrence in or about the Premises during
the Lease Term, (ii) the negligence or willful misconduct of Tenant or its agents, employees and contractors, wherever the same may occur, or (iii) an Event of Tenant’s Default. The provisions in this ¶10.3 shall survive the
expiration or sooner termination of this Lease. 
 ARTICLE 11 
 DAMAGE TO PREMISES 
 11.1 Landlord’s Duty to
Restore: If the Premises are damaged by any peril after the Effective Date, Landlord shall restore the Premises unless the Lease is terminated by Landlord pursuant to ¶11.2 or by Tenant pursuant to ¶11.3. All insurance proceeds
available from the fire and property damage insurance carried by Landlord pursuant to ¶9.2 shall be paid to and become the property of Landlord. If this Lease is terminated pursuant to either ¶11.2 or ¶11.3, then all insurance
proceeds available from insurance carried by Tenant which covers loss to the property that is Landlord’s property or would become Landlord’s property on termination of this Lease shall be paid to and become the property of Landlord. If
this Lease is not so terminated, then upon receipt of the insurance proceeds (if the loss is covered by insurance) and the issuance of all necessary governmental permits, Landlord shall commence and diligently prosecute to completion the restoration
of the Premises, to the extent then allowed by Law, to substantially the same condition in which the Premises were immediately prior to such damage. Landlord’s obligation to restore shall be limited to the Premises and interior improvements
constructed by Landlord as they existed as of the Commencement Date, excluding any Tenant’s Alterations, Trade Fixtures and/or personal property constructed or installed by Tenant in the Premises. Tenant shall forthwith replace or fully repair
all Tenant’s Alterations and Trade Fixtures installed by Tenant and existing at the time of such damage or destruction, and all insurance proceeds received by Tenant from the insurance carried by it pursuant to ¶9.1A(2) shall be used for
such purpose. 
 11.2 Landlord’s Right to Terminate: Landlord shall have the right to terminate this Lease in the
event any of the following occurs, which right may be exercised only by delivery to Tenant of a written notice of election to terminate within 30 days after the date of such damage. 
 A. Either the Project or the Building is damaged by an Insured Peril to such an extent that the estimated cost to restore exceeds 33% of the
then actual replacement cost thereof; 
 B. Either the Project or the Building is damaged by an Uninsured Peril to such an
extent that the estimated cost to restore exceeds 2% of the then actual replacement cost thereof; provided, however, that Landlord may not terminate this Lease pursuant to this ¶11.2B if one or more tenants of the Project agree in writing to
pay the amount by which the cost to restore the damage exceeds such amount and subsequently deposit such amount with Landlord within 30 days after Landlord has notified Tenant of its election to terminate this Lease; 
 C. The Premises are damaged by any peril within 12 months of the last day of the Lease Term to such an extent that the estimated cost to
restore equals or exceeds an amount equal to six times the Base Monthly Rent when due; provided, however, that Landlord may not terminate this Lease pursuant to this ¶11.2C if Tenant, at the time of such damage, has a then valid express written
option to extend the Lease Term and Tenant exercises such option to extend the Lease Term within 15 days following the date of such damage; or 
 D. Either the Project or the Building is damaged by any peril and, because of the Laws then in force, (i) cannot be restored at reasonable cost to substantially the same condition in which it was
prior to such damage, or (ii) cannot be used for the same use being made thereof before such damage if restored as required by this Article. 
 E. As used herein, the following terms shall have the following meanings: (1) the term “Insured Peril” shall mean a peril actually insured or required hereunder to be insured against for
which the insurance proceeds actually received by Landlord are sufficient (except for any “deductible” amount specified by such insurance) to restore the Project under then existing building codes to the condition existing immediately
prior to the damage; and (ii) the term “Uninsured Peril” shall mean any peril which is not an Insured Peril. Notwithstanding the foregoing, if the “deductible” for earthquake or flood insurance exceeds 2% of the replacement
cost of the improvements insured, such peril shall be deemed an “Uninsured Peril.” 
         11.3 Tenant’s Right to Terminate: If the Premises are damaged by any peril and Landlord does not elect to terminate this Lease or is not entitled to terminate this Lease pursuant
to ¶11.2, then as soon as reasonably practicable, Landlord shall furnish Tenant with the written opinion of Landlord’s architect or construction consultant as to when the restoration work required of Landlord may be completed. Tenant shall
have the right to terminate this Lease in the event any of the following occurs, which right may be exercised only be delivery to Landlord of a written notice of election to terminate within 15 days after Tenant receives from Landlord the estimate
of the time needed to complete such restoration. 
 A. The Premises are damaged by any peril and, in the reasonable opinion of
Landlord’s architect or construction consultant, the restoration of the Premises cannot be substantially completed within 180 days after the date of such damage; or 
  

  

 B. The Premises are damaged by any peril within 12 months of the last day of the Lease
Term and, in the reasonable opinion of Landlord’s architect or construction consultant, the restoration of the Premises cannot be substantially completed within 90 days after the date of such damage and such damage renders unusable more than
30% of the Premises. 
 11.4 Abatement of Rent: In the event of damage to the Premises which does not result in the
termination of this Lease, the Base Monthly Rent and the Additional Rent shall be temporarily abated during the period of restoration in proportion to the degree to which Tenant’s use of the Premises is impaired by such damage. Tenant shall not
be entitled to any compensation or damages from Landlord for loss of Tenant’s business or property or for any inconvenience or annoyance caused by such damage or restoration. Tenant hereby waives the provisions of California Civil Code Sections
1932(2) and 1933(4) and the provisions of any similar law hereinafter enacted. 
 ARTICLE 12 
 CONDEMNATION 
 12.1 Landlord’s Termination Right: Landlord shall have the right to terminate this Lease if, as a result of a taking by means of the exercise of the power of eminent domain (including a voluntary sale or transfer by Landlord to
a condemnor under threat of condemnation), (i) all or any part of the Premises is so taken, (ii) more than 10% of the Building Leaseable Area is so taken, or (iii) more than 50% of the Common Area is so taken. Any such right to
terminate by Landlord must be exercised within a reasonable period of time, to be effective as of the date possession is taken by the condemnor. 
 12.2 Tenant’s Termination Right: Tenant shall have the right to terminate this Lease if, as a result of any taking by means of the exercise of the power of eminent domain (including any
voluntary sale or transfer by Landlord to any condemnor under threat of condemnation), (i) 10% or more of the Premises is so taken and that part of the Premises that remains cannot be restored within a reasonable period of time and thereby made
reasonably suitable for the continued operation of the Tenant’s business, or (ii) there is a taking affecting the Common Area and, as a result of such taking, Landlord cannot provide parking spaces within reasonable walking distance of the
Premises equal in number to at least 80% of the number of spaces allocated to Tenant by ¶2.1, whether by rearrangement of the remaining parking areas in the Common Area (including construction of multi-deck parking structures (which Landlord
shall build, if at all, at its sole cost) or restriping for compact cars where permitted by Law) or by alternative parking facilities on the other land. Tenant must exercise such right within a reasonable period of time, to be effective on the date
that possession of that portion of the Premises or Common Area that is condemned is taken by the condemnor. 
 12.3
Restoration and Abatement of Rent: If any part of the Premises or the Common Area is taken by condemnation and this Lease is not terminated, then Landlord shall restore the remaining portion of the Premises and Common Area and interior
improvements constructed by Landlord as they existed as of the Commencement Date, excluding any Tenant’s Alterations, Trade Fixtures and/or personal property constructed or installed by Tenant. Thereafter, except in the case of a temporary
taking, as of the date possession is taken the Base Monthly Rent shall be reduced in the same proportion that the floor area of that part of the Premises so taken (less any addition thereto by reason of any reconstruction) bears to the original
floor area of the Premises. 
 12.4 Temporary Taking: If any portion of the Premises is temporarily taken for one year or
less, this Lease shall remain in effect. If any portion of the Premises is temporarily taken by condemnation for a period which exceeds one year or which extends beyond the natural expiration of the Lease Term, and such taking materially and
adversely affects Tenant’s ability to use the Premises for the Permitted Use, then Tenant shall have the right to terminate this Lease, effective on the date possession is taken by the condemnor. 
 12.5 Division of Condemnation Award: Any award made as a result of condemnation of the Premises or the Common Area shall belong to
and be paid to Landlord, and Tenant hereby assigns to Landlord all its right, title and interest in any such award; provided, however, that Tenant shall be entitled to receive any condemnation award that is made directly to Tenant for the following
so long as the award made to Landlord is not thereby reduced: (i) for the taking of personal property or Trade Fixtures belongings to Tenant, (ii) for the interruption of Tenant’s business or its moving costs, (iii) for loss of
Tenant’s goodwill; or (iv) for any temporary taking where this Lease is not terminated as a result of such taking. The rights of Landlord and Tenant regarding any condemnation shall be determined as provided in this Article, and each party
hereby waives the provisions of California Code Civil Procedure Section 1265.130 and the provisions of any similar law hereinafter enacted allowing either party to petition the Superior Court to terminate this Lease in the event of a partial
taking of the Premises. 
 ARTICLE 13 
 DEFAULT AND REMEDIES 
         13.1 Events of
Tenant’s Default: Tenant shall be in default of its obligations under this Lease if any of the following events occurs (an “Event of Tenant’s Default”): 
 A. Tenant shall have failed to pay Base Monthly Rent or Additional Rent when due, and such failure is not cured within 3 business days after
delivery of written notice from Landlord specifying such failure to pay; or 
  

  

 B. Tenant shall have failed to perform any term, covenant, or condition of this Lease
except those requiring the payment of Base Monthly Rent or Additional Rent, and Tenant shall have failed to cure such breach within 30 days after written notice from Landlord specifying the nature of such reach where such breach could reasonably be
cured within said 30 day period, or if such breach could not be reasonably cured within said 30 day period, Tenant shall have failed to commence such cure within said 30-day period and thereafter continue with due diligence to prosecute such cure to
completion within such time period as is reasonably needed but not to exceed 90 days from the date of Landlord’s notice; or 
 C. Tenant shall have sublet the Premises or assigned its interest in the Lease in violation of the provisions contained in Article 14; or 
 D. Tenant shall have abandoned the Premises or left the Premises substantially vacant; or 
 E. The occurrence of the following: (i) the making by Tenant of any general arrangements or assignments for the benefit of creditors; (ii) Tenant becomes a “debtor” as defined in 11 USC §101 or any successor statute
thereto (unless, in the case of a petition filed against Tenant, the same is dismissed within 60 days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Tenant’s assets located at the Premises or of
Tenant’s Interest in this lease, where possession is not restored to Tenant within 30 days; or (iv) the attachment, execution or other judicial seizure of substantially all of Tenant’s assets located at the Premises or of
Tenant’s Interest in the Lease, where such seizure is not discharged within 30 days; provided, however, in the event that any provision of this Section 13.1E is contrary to any applicable Law, such provision shall be of no force or effect;
or 
 F. Tenant shall have failed to deliver documents required of it pursuant to ¶15.4 or ¶15.6 within the time
periods specified therein. See First Addendum To Lease Paragraph 5. 
 13.2 Landlord’s Remedies: If an Event of
Tenant’s Default occurs, Landlord shall have the following remedies, in addition to all other rights and remedies provided by any Law or otherwise provided in this Lease, to which Landlord may resort cumulatively or in the alternative:

 A. Landlord may keep this Lease in effect and enforce by an action at law or in equity all of its rights and remedies under
this Lease; including (i) the right to recover the rent and other sums as they become due by appropriate legal action, (ii) the right to make payments required of Tenant or perform Tenant’s obligations and be reimbursed by Tenant for
the cost thereof with interest at the Agreed Interest Rate from the date the sum is paid by Landlord until Landlord is reimbursed by Tenant, and (iii) the remedies of injunctive relief and specific performance to compel Tenant to perform its
obligations under this Lease. Notwithstanding anything contained in this Lease, in the event of a breach of an obligation by Tenant which results in a condition which poses an imminent danger to safety or persons or damage to property, an unsightly
condition visible from the exterior of the Building, or a threat to insurance coverage, then if Tenant does not cure such breach within 3 business days after delivery to it of written notice from Landlord identifying the breach, Landlord may cure
the breach of Tenant and be reimbursed by Tenant for the cost thereof with interest at the Agreed Interest Rate, from the date the sum is paid by Landlord until Landlord is reimbursed by Tenant. 
 B. Landlord may enter the Premises and release them to third parties for Tenant’s account for any period, whether shorter or longer
than the remaining Lease Term. Tenant shall be liable immediately to Landlord for all reasonable costs Landlord incurs in releasing the Premises, including brokers’ commissions, expenses of altering and preparing the Premises required by the
releasing. Tenant shall pay to Landlord the rent and other sums due under this Lease on the date the rent is due, less the rent and other sums Landlord received from any releasing. No act by Landlord allowed by this subparagraph shall terminate this
Lease unless Landlord notifies Tenant in writing that Landlord elects to terminate this Lease. Notwithstanding any releasing without termination, Landlord may later elect to terminate this Lease because of the default by Tenant. 
 C. Landlord may terminate this Lease by giving Tenant written notice of termination, in which event this Lease shall terminate on the date
set forth for termination in such notice. Any termination under this ¶13.2C shall not relieve Tenant from its obligation to pay sums then due Landlord or from any claim against Tenant for damages or rent previously accrued or then accruing. In
no event shall any one or more of the following actions by Landlord, in the absence of a written election by Landlord to terminate this Lease, constitute a termination of this Lease: (i) appointment of a receiver or keeper in order to protect
Landlord’s interest hereunder; (ii) consent to any subletting of the Premises or assignment of this Lease by Tenant, whether pursuant to the provisions hereof or otherwise; or (iii) any other action by Landlord or Landlord’s
Agents intended to mitigate the adverse effects of any breach of this Lease by Tenant, including without limitation any action taken to maintain and preserve the Premises or any action taken to relet the Premises or any portions thereof to the
extent such actions do not affect a termination of Tenant’s right to possession of the Premises. 
  

  

 D. In the event Tenant breaches this Lease and abandons the Premises, this Lease shall
not terminate unless Landlord gives Tenant written notice of its election to so terminate the Lease. No act by or on behalf of Landlord intended to mitigate the adverse effect of such breach, including those described by ¶13.C, shall constitute
a termination of Tenant’s right to possession unless Landlord gives Tenant written notice of termination. Should Landlord not terminate this Lease by giving Tenant written notice, Landlord may enforce all its rights and remedies under this
Lease, including the right to recover the rent as it becomes due under the Lease as provided in California Civil Code Section 1951.4. 
 E. In the event Landlord terminates this Lease, Landlord shall be entitled, at Landlord’s election, to damages in an amount as set forth in California Civil Code Section 1951.2 as in effect on
the Effective Date. For purposes of computing damages pursuant to California Civil Code Section 1951.2, (i) an interest rate equal to the Agreed Interest Rate shall be used where permitted, and (ii) the term “rent” includes
Base Monthly Rent and Additional Rent. Such damages shall include: 
 (1) The worth at the time of award of the amount by which
the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that Tenant proves could be reasonably avoided, computed by discounting such amount at the discount rate of the Federal Reserve Bank of San
Francisco at the time of award plus one percent (1%); and 
 (2) Any other amount necessary to compensate Landlord for all
detriment proximately caused by Tenant’s failure to perform Tenant’s obligations under this Lease, or which in the ordinary course of things would be likely to result therefrom, including the following: (i) expenses for cleaning,
repairing or restoring the Premises; (ii) expenses for altering, remodeling or otherwise improving the Premises for the purpose of reletting, including installation of leasehold improvements (whether such installation be funded by a reduction
of rent, direct payment or allowance to a new tenant, or otherwise); (iii) broker’s fees, advertising costs and other expenses of reletting the Premises; (iv) costs of carrying the Premises, such as taxes, insurance premiums,
utilities and security precautions; (v) expenses in retaking possession of the Premises; (vi) attorneys’ fees and court costs incurred by Landlord in retaking possession of the Premises and in releasing the Premises or otherwise
incurred as a result of Tenant’s default. 
 F. Nothing in this ¶13.2 shall limit Landlord’s right to
indemnification from Tenant as provided in ¶7.2 and ¶10.3. Any notice given by Landlord in order to satisfy the requirements of ¶13.1A or ¶13.1B above shall also satisfy the notice requirements of California Code of Civil
Procedure Section 1161 regarding unlawful detainer proceedings. 
 13.3 Waiver: One party’s consent to or
approval of any act by the other party requiring the first party’s consent or approval shall not be deemed to waive or render unnecessary the first party’s consent to or approval of any subsequent similar act by the other party. The
receipt by Landlord of any rent or payment with or without knowledge of the breach of any other provision hereof shall not be deemed a waiver of any such breach unless such waiver is in writing and signed by Landlord. No delay or omission in the
exercise of any right or remedy accruing to either party upon any breach by the other party under this Lease shall impair such right or remedy or be construed as a waiver of any such breach theretofore or thereafter occurring. The waiver by either
party of any breach of any provision in this Lease shall not be deemed to be a waiver of any subsequent breach of the same or of any other provisions herein contained. 
 13.4 Limitation on Exercise of Rights: At any time that an Event of Tenant’s Default has occurred and remains uncured, (i) it shall not be unreasonable for Landlord to deny or withhold
any consent or approval requested of it by Tenant which Landlord would otherwise be obligated to give, and (ii) Tenant may not exercise any option to extend, right to terminate this Lease, or other right granted to it by this Lease, which would
otherwise be available to it. 
 13.5 Waiver by Tenant of Certain Remedies: Tenant waives the provisions of Sections
1932(1), 1941 and 1942 of the California Civil Code and any similar or successor law regarding Tenant’s right to terminate this Lease or to make repairs and deduct the expenses of such repairs from the rent due under this Lease. Tenant hereby
waives any right of redemption or relief from forfeiture under the laws of the State of California, or under any other present or future law, including the provisions of Sections 1174 and 1179 of the California Code of Civil Procedure. Nothing
herein, however, shall be construed so as to preclude Tenant from making repairs if Landlord fails to do so and thereafter bringing suit for reimbursement. 
 ARTICLE 14 
 ASSIGNMENT AND SUBLETTING 
 14.1 Transfer By Tenant: The following provisions shall apply to any assignment, subletting or other transfer by Tenant or any
subtenant or assignee or other successor in interest of the original Tenant (collectively referred to in this ¶14.1 as “Tenant”): 
                 A. Tenant shall not do any of the following (collectively referred to herein as a “Transfer”), whether voluntarily, involuntarily, or
by operation of law, without the prior written consent of Landlord, which consent shall not be unreasonably withheld or delayed; (i) sublet all or any part of the Premises or allow it to be sublet, occupied or used by any person or entity other
than Tenant; (ii) assign its interest in this Lease; (iii) mortgage or encumber the Lease (or otherwise use the Lease as a security device) in any manner; or (iv) materially amend or modify an assignment, sublease or other transfer
that has been previously approved by Landlord. Tenant shall reimburse Landlord for all reasonable costs and attorneys’ fees incurred by Landlord in connection

  

  

 
with the evaluation, processing, and/or documentation of any requested Transfer, whether or not Landlord’s consent is granted. Landlord’s reasonable costs shall include the cost of any
review or investigation performed by Landlord or consultant acting on Landlord’s behalf of (i) Hazardous Materials (as defined in Section 7.2E of this Lease) used, stored, released, or disposed of by the potential Subtenant or
Assignee, and/or (ii) violations of Hazardous Materials Law (as defined in Section 7.2E of this lease) by the Tenant or the proposed Subtenant or Assignee. Any Transfer so approved by Landlord shall not be effective until Tenant has
delivered to Landlord an executed counterpart of the document evidencing the Transfer which (i) is in a form reasonably approved by Landlord, (ii) contains the same terms and conditions as stated in Tenant’s notice give to Landlord
pursuant to ¶14.1B, and (iii) in the case of an assignment of the Lease, contains the agreement of the proposed transferee to assume all obligations of Tenant under this Lease arising after the effective date of such Transfer and to remain
jointly and severally liable therefore with Tenant. Any attempted Transfer without Landlord’s consent shall constitute an Event of Tenant’s Default and shall be voidable at Landlord’s option. Landlord’s consent to any one
Transfer shall not constitute a waiver of the provisions of this ¶14.1 as to any subsequent Transfer or a consent to any subsequent Transfer. No Transfer, even with the consent of Landlord, shall relieve Tenant of its personal and primary
obligation to pay the rent and to perform all of the other obligations to be performed by Tenant hereunder. The acceptance of rent by Landlord from any person shall not be deemed to be a waiver by Landlord of any provision of this Lease nor to be a
consent to any Transfer. 
 B. At least 1530 days before a proposed Transfer is to become effective, Tenant shall give Landlord
written notice of the proposed terms of such Transfer and request Landlord’s approval, which notice shall include the following: (i) the name and legal composition of the proposed transferee; (ii) a current financial statement of the
transferee, financial statements of the transferee covering the preceding three years if the same exist, and (if available) an audited financial statement of the transferee for a period ending not more than one year prior to the proposed effective
date of the Transfer, all of which statements are prepared in accordance with generally accepted accounting principles; (iii) the nature of the proposed transferee’s business to be carried on in the Premises; (iv) all consideration to
be given on account of the Transfer; (v) a current financial statement of Tenant; and (vi) an accurately filled out response to Landlord’s standard Hazardous Materials Questionnaire. Tenant shall provide to Landlord such other
information as may be reasonably requested by Landlord within seven days after Landlord’s receipt of such notice from Tenant. Landlord shall respond in writing to Tenant’s request for Landlord’s consent to a Transfer within the later
of (i) 15 days of receipt of such request together with the required accompanying documentation, or (ii) seven days after Landlord’s receipt of all information which Landlord reasonably requests within seven days after it receives
Tenant’s first notice regarding the Transfer in question. If Landlord fails to respond in writing within said period, Landlord will be deemed to have withheld consent to such Transfer. Tenant shall immediately notify Landlord of any material
modification to the proposed terms of such Transfer. 
 C. In the event that Tenant seeks to make any Transfer of the entire
Premises (excluding permitted transfers) Landlord shall have the right to terminate this Lease or, in the case of a sublease of less than all of the Premises, terminate this Lease so that part of the Premises proposed to be sublet,
either (i) on the condition that the proposed transferee immediately enter into a direct lease of the Premises with Landlord (or, in the case of a partial sublease, a lease for the portion proposed to be so sublet) to whomever
it pleases on whatever terms are acceptable to Landlord. In the event Landlord elects to so terminate this Lease then (i) if such termination is conditioned upon the execution of a lease between Landlord and the proposed transferee,
Tenant’s obligation under this Lease shall not be terminated until such transferee executes a new lease with Landlord specifying a Commencement Date enters into possession and commences the payment of rent, and (ii) if
Landlord elects simply to terminate this Lease (or, in the case of a partial sublease, terminate this Lease as to the portion to be so sublet), the Lease shall so terminate in its entirety (or as to the space to be so sublet)
fifteen (15) days after Landlord has notified Tenant in writing of such election. Upon such termination, Tenant shall be released from any further obligation under this Lease., if it is terminated in its entirety; or shall be
released from any further obligation under the Lease with respect to the space proposed to be sublet in the case of a proposed partial sublease. In the case of a partial termination of the Lease, the Base Monthly Rent and Tenant’s Share shall
be reduced to an amount which bears the same relationship to the original amount thereof as the area of that part of the Premises which remains subject to the Lease bears to the original area of the Premises. Landlord and Tenant shall
execute a cancellation and release with respect to the Lease to effect such termination. 
 D. If Landlord consents to a
Transfer proposed by Tenant, Tenant may enter into such Transfer, and if Tenant does so, the following shall apply: 
 (1)
Tenant shall not be released of its liability for the performance of all of its obligations under the Lease. 
 (2) If Tenant
assigns its interest in this Lease, then Tenant shall pay to Landlord 50% of all Subrent (as defined in ¶14.1D(5)) received by Tenant over and over above (i) the assignee’s agreement to assume the obligations of Tenant under this
Lease, and (ii) all Permitted Transfer Costs related to such assignment. In the case of assignment, the amount of Subrent owed to Landlord shall be paid to Landlord on the same basis, whether periodic or in lump sum, that such Subrent is paid
to Tenant by the assignee. 
  

  

 (3) If Tenant sublets any part of the Premises, then with respect to the space so
subleased, Tenant shall pay to Landlord 50% of the positive difference, if any, between (i) all Subrent paid by the subtenant to Tenant, less (ii) the sum of all Base Monthly Rent and Additional Rent allocable to the space sublet and all
Permitted Transfer Costs related to such sublease. Such amount shall be paid to Landlord on the same basis, whether periodic or in lump sum, that such Subrent is paid to Tenant by its subtenant. In calculating Landlord’s share of any periodic
payments, all Permitted Transfer Costs shall be first recovered by Tenant. 
 (4) Tenant’s obligations under this
¶14.1D shall survive any Transfer, and Tenant’s failure to perform its obligations hereunder shall be an Event of Tenant’s Default. At the time Tenant makes any payment to Landlord required by this ¶14.1D, Tenant shall deliver an
itemized statement of the method by which the amount to which Landlord is entitled was calculated, certified by Tenant as true and correct. Landlord shall have the right at reasonable intervals to inspect Tenant’s books and records relating to
the payments due hereunder. Upon request therefore, Tenant shall deliver to Landlord copies of all bills, invoices or other documents upon which its calculations are based. Landlord may condition its approval of any Transfer upon obtaining a
certification from both Tenant and the proposed transferee of all Subrent and other amounts that are to be paid to Tenant in connection with such Transfer. 
 (5) As used in this ¶14.1D, the term “Subrent” shall mean any consideration of any kind received, or to be received, by Tenant as a result of the Transfer, if such sums are related to
Tenant’s interest in this Lease or in the Premises, including payments from or on behalf of the transferee (in excess of the book value thereof) for Tenant’s assets, fixtures, leasehold improvements, inventory, accounts, goodwill,
equipment, furniture, and general intangibles. As used in this ¶14.1D, the term “Permitted Transfer Costs” shall mean (i) all reasonable leasing commissions paid to third parties not affiliated with Tenant in order to obtain the
Transfer in question, and (ii) all reasonable attorneys’ fees incurred by Tenant with respect to the Transfer in question, and (iii) tenant improvements. 
 E. If Tenant is a corporation, the following shall be deemed a voluntary assignment of the Tenant’s interest in this Lease: (i) any dissolution, merger, consolidation, or other reorganization of
or affecting Tenant, whether or not Tenant is the surviving corporation; and (ii) if the capital stock of Tenant is not publicly traded, the sale or transfer to one person or entity (or to any group of related persons or entities) stock
possessing more than 50% of the total combined voting power of all classes of Tenant’s capital stock issued, outstanding and entitled to vote for the election of directors. If Tenant is a partnership, any withdrawal or substitution (whether
voluntary, involuntary or by operation of law, and whether occurring at one time or over a period of time) of any partner owning 25% or more (cumulatively) of any interest in the capital or profits of the partnership, or the dissolution of the
partnership, shall be deemed a voluntary assignment of Tenant’s interest in this Lease. 
 F. Notwithstanding anything
contained in ¶14.1, so long as Tenant otherwise complies with provisions of ¶14.1 Tenant may enter into any of the following transfers (a “Permitted Transfer”) without Landlord’s prior written consent, and Landlord shall not
be entitled to terminate the Lease pursuant to ¶14.1C or to receive any part of any Subrent resulting therefrom that would otherwise be due it pursuant to ¶14.1D: 
 (1) Tenant may sublease all or part of the Premises or assign its interest in this Lease to any corporation which controls, is controlled
by, or is under common control with the original Tenant to this Lease by means of an ownership interest of more than 50%; 
 (2) Tenant may assign its interest in the Lease to a corporation which results from a merger, consolidation or other reorganization in which Tenant is not the surviving corporation, so long as the surviving corporation has a net worth at
the time of such assignment that is equal to or greater than the net worth of Tenant immediately prior to such transaction; and 
 (3) Tenant may assign this Lease to a corporation which purchases or otherwise acquires all or substantially all of the assets of Tenant, so long as such acquiring corporation has a net worth at the time of such assignment that is equal to
or greater than the net worth of Tenant immediately prior to such transaction. 
 14.2 Transfer by Landlord: Landlord and
its successors in interest shall have the right to transfer their interest in this Lease and the Project at any time and to any person or entity. In the event of any such transfer, the Landlord originally named herein (and, in the case of any
subsequent transfer, the transferor) from the date of such transfer, shall be automatically relieved, without any further act by any person or entity, of all liability for the performance of obligations of the Landlord hereunder which may accrue
after the date of such transfer                      obligation to return the Security Deposit to Tenant (unless the Security deposit is
transferred to the Landlord’s transferee). After the date of any such transfer, the term “Landlord” as used herein shall mean the transferee of such interest in the Premises. 
  

  

 ARTICLE 15 
 GENERAL PROVISIONS 
 15.1 Landlord’s Right to
Enter: Landlord and its agents may enter the Premises at any reasonable time after giving at least 24 hours’ prior notice to Tenant (and immediately in the case of emergency) for the purpose of: (i) inspecting the same;
(ii) posting notices of non-responsibility; (iii) supplying any service to be provided by Landlord to Tenant; (iv) showing the Premises to prospective purchasers, mortgagees or tenants; (v) making necessary alterations, additions
or repairs; (vi) performing Tenant’s obligations when Tenant has failed to do so after written notice from Landlord; (vii) (during the last nine (9) months of the Lease Term) placing upon the Premises ordinary “for
lease” signs reasonably or “for sale” signs; and (viii) responding to an emergency. Landlord shall have the right to use any and all means Landlord reasonably may deem necessary and proper to enter the Premises in an emergency.
Any entry into the Premises obtained by Landlord in accordance with this ¶15.1 shall not be a forcible or unlawful entry into, or a detainer of, the Premises, or an eviction, actual or constructive, of Tenant from the Premises. 
 15.2 Surrender of the Premises: Upon the expiration or sooner termination of this Lease, Tenant shall vacate and surrender the
Premises to Landlord in the same condition as existed at the Commencement Date, except for (i) reasonable wear and tear, (ii) damage caused by any peril or condemnation, and (iii) contamination by Hazardous Materials for which Tenant
is not responsible pursuant to ¶7.2A or ¶7.2B and (iv) Landlord’s negligence, willful misconduct and/or breach of the Lease. In this regard, normal wear and tear shall be construed to mean wear and tear caused to the Premises by
the natural aging process and normal use which occurs in spite of prudent application and the best standards for maintenance, repair and janitorial practices, and does not include items of neglected or deferred maintenance for which Tenant or its
agents are responsible. In any event, Tenant shall cause the following to be done prior to the expiration or the sooner termination of this Lease: (i) all interior walls shall be painted or cleaned so that they appear freshly painted;
(ii) all tiled floors shall be cleaned and waxed; (iii) all carpets shall be cleaned and shampooed; (iv) all broken, marred, stained or nonconforming acoustical ceiling tiles shall be replaced; (v) all windows shall be washed;
(vi) the HVAC system shall be serviced by a reputable and licensed service firm and left in good operating condition and repair as so certified by such firm; and (vii) the plumbing and electrical systems and lighting shall be placed in
good order and repair (including replacement of any burned out, discolored or broken light bulbs, ballasts, or lenses). If Landlord so requests, Tenant shall, prior to the expiration or sooner termination of this Lease, (i) remove any
Tenant’s Alterations which Tenant is required to remove pursuant to ¶5.2 and repair all damage caused by such removal, and (ii) return the Premises or any part thereof to its original configuration existing as of the time the Premises
were delivered to Tenant.                          made since the Commencement date which Landlord does not require to be
returned to its original condition. Tenant shall have no obligation to remove the Interior Improvements constructed pursuant to Exhibit B. If the Premises are not so surrendered at the termination of this Lease, Tenant shall be liable to Landlord
for all costs incurred by Landlord in returning the Premises to the required condition, plus interest on all costs reasonably incurred at the Agreed Interest Rate. Tenant shall indemnify Landlord against loss or liability resulting from delay by
Tenant in so surrendering the Premises, including, without limitation, any claims made by any succeeding tenant or losses to Landlord due to lost opportunities to lease to succeeding tenants. 
 15.3 Holding Over: This Lease shall terminate without further notice at the expiration of the Lease Term. Any holding over by Tenant
after expiration of the Lease Term shall not constitute a renewal or extension of the Lease or give Tenant any rights in or to the Premises except as expressly provided in this Lease. Any holding over after such expiration with the written consent
of Landlord shall be construed to be a tenancy from month to month on the same terms and conditions herein specified insofar as applicable except that Base Monthly Rent shall be increased to an amount equal to 125% of the Base Monthly Rent payable
during the last full calendar month of the Lease Term. 
 15.4 Subordination: The following provisions shall govern the
relationship of this Lease to any Security Instrument: 
 A. The Lease is subject and subordinate to all Security Instruments
existing as of the Effective Date. However, if any Lender so requires, this Lease shall become prior and superior to any such Security Instrument. 
 B. At Landlord’s election, this Lease shall become subject and subordinate to any Security Instrument created after the Effective Date. Notwithstanding such subordination, Tenant’s right to
quiet possession of the Premises shall not be disturbed so long as Tenant is not in default and performs all of its obligations under this Lease, unless this Lease is otherwise terminated pursuant to its terms. 
                 C. Tenant shall upon request execute any document or
instrument reasonably required by any Lender to make this Lease either prior or subordinate to a Security Instrument, which may include such other matters as the Lender customarily and reasonably requires in connection with such agreements,
including provisions that the Lender not be liable for (i) the return of any security deposit unless the Lender receives it from Landlord, and (ii) any defaults on the part of Landlord occurring prior to the time the Lender takes
possession of the Project in connection with the enforcement of its Security Interest. Tenant’s failure to execute any such document or instrument within 15 days after written demand therefore shall constitute an Event of Tenant’s Default.
Tenant approves as reasonable the form of subordination agreement attached to this Lease as Exhibit G.
                         required payment of fees and/or costs as a condition of such Agreement, Tenant shall pay such
fees and/or costs.

  

  

 
Notwithstanding any other provision hereof, Tenant’s obligation to subordinate this Lease to any future Security Instrument shall be conditioned upon the execution of a Non-Disturbance
Agreement by the holder of such Security Instrument on the holder’s standard form. 
 15.5 Mortgagee Protection and
Attornment: In the event of any default on the part of the Landlord, Tenant will use reasonable efforts to give notice by registered mail to any Lender whose name has been provided to Tenant and shall offer such Lender a reasonable opportunity
to cure the default, including time to obtain possession of the Premises by power or sale or judicial foreclosure or other appropriate legal proceedings, if such should prove necessary to effect a cure. Tenant shall attorney to any purchaser of the
Premises at any foreclosure sale or private sale conducted pursuant to any Security Instrument encumbering the Premises, or to any grantee or transferee designated in any deed given in lieu of foreclosure. 
 15.6 Estoppel Certificate and Financial Statements: At all time during the Lease Term, each party agrees following any request by the
other party, promptly to execute and deliver to the requesting party within 15 days following delivery of such request an estoppel certificate: (i) certifying that this Lease is unmodified and in full force and effect or, if modified, stating
the nature of such modification and certifying that this Lease is unmodified and in full force and effect or, if modified, stating the nature of such modification and certifying that this Lease, as so modified, is in full force and effect,
(ii) stating the date to which the rent and other charges are paid in advance, if any, (iii) acknowledging that there are not, to the certifying party’s knowledge; any uncured defaults on the part of any party hereunder or, if there
are uncured defaults, specifying the nature of such defaults, and (iv) certifying such other information about the Lease as may be reasonably required by the requesting party. A failure to deliver an estoppel certificate within 15 days after
delivery of a request therefor shall be a conclusive admission that, as of the date of the request for such statement: (i) this Lease is unmodified except as may be represented by the requesting party in said request and is in full force and
effect, (ii) there are no uncured defaults in the requesting party’s performance, and (iii) no rent has been paid more than 30 days in advance. At any time during the Lease Term Tenant shall, upon 15 days’ prior written notice
from Landlord, provide Tenant’s most recent financial statement and financial statements covering the 24 month period prior to the date of such most recent financial statement to any existing Lender or to any potential Lender or buyer of the
Premises. Such statements shall be prepared in accordance with generally accepted accounting principles and, if such is the normal practice of Tenant, shall be audited by an independent certified public accountant. 
 15.7 Reasonable Consent: Whenever any party’s approval or consent is required by this Lease before an action may be taken by the
other party, such approval or consent shall not be unreasonably withheld or delayed. 
 15.8 Notices: Any notice required
or desired to be given regarding this Lease shall be in writing and may be given by personal delivery, by facsimile telecopy, by courier service, or by mail. A notice shall be deemed to have been given (i) on the third business day after
mailing if such notice was deposited in the United States mail, certified or registered, postage prepaid, addressed to the party to be served at its Address for Notices specified in Section Q or Section R of the Summary (as
applicable), (ii) when delivered if given by personal delivery, and (iii) in all other cases when actually received at the party’s Address for notices. Either party may change its address by giving notice of the same in accordance
with this ¶15.8, provided, however, that any address to which notices may be sent must be a California address. 
 15.9
Attorneys’ Fees: In the event either Landlord or Tenant shall bring any action or legal proceeding for an alleged breach of any provision of this Lease, to recover rent, to terminate this Lease or otherwise to enforce, protect or
establish any term or covenant of this Lease, the prevailing party shall be entitled to recover as a part of such action or proceeding, or in a separate action brought for that purpose, reasonable attorneys’ fees, court costs, and experts’
fees as may be fixed by the court. 
 15.10 Corporate Authority: If Tenant is a corporation (or partnership), each
individual executing this Lease on behalf of Tenant represents and warrants that he is duly authorized to execute and deliver this Lease on behalf of such corporation in accordance with the by-laws of such corporation (or partnership in accordance
with the partnership agreement of such partnership) and that this Lease is binding upon such corporation (or partnership) in accordance with its terms. Each of the persons executing this Lease on behalf of a corporation does hereby covenant and
warrant that the party for whom it is executing this Lease is a duly authorized and existing corporation, that it is qualified to do business in California, and that the corporation has full right and authority to enter into this Lease. 

15.11 Miscellaneous: Should any provision of this Lease prove to be invalid or illegal, such invalidity or illegality shall in now
ay affect, impair or invalidate any other provision hereof, and such remaining provisions shall remain in full force and effect. Time is of the essence with respect to the performance of every provision of this Lease in which time of performance is
a factor. The captions used in this Lease are for convenience only and shall not be considered in the construction or interpretation of any provision hereof. Any executed copy of this Lease shall be deemed an original for all purposes. This Lease
shall, subject to the provisions regarding assignment, apply to and bind the respective heirs, successors, executors, administrators and assigns of Landlord and Tenant. “Party” shall mean Landlord or

  

  

 
Tenant, as the context implies. If Tenant consists of more than one person or entity, then all members of Tenant shall be jointly and severally liable hereunder. This Lease shall be construed and
enforced in accordance with the laws of the State of California. The language in all parts of this Lease shall in all cases be construed as a whole according to its fair meaning, and not strictly for or against either Landlord or Tenant. When the
context of this Lease requires, the neuter gender includes the masculine, the feminine, a partnership or corporation or joint venture, and the singular includes the plural. The terms “shall,” “will” and “agree” are
mandatory. The term “may” is permissive. When a party is required to do something by this Lease, it shall do so at its sole cost and expense without right of reimbursement from the other party unless a provision of this Lease expressly
requires reimbursement. Landlord and Tenant agree that (i) the gross leasable area of the Premises includes any atriums, depressed loading docks, covered entrances or egresses, and covered loading areas, (ii) each has had an opportunity to
determine to its satisfaction the actual area of the Project and the Premises, (iii) all measurements of area contained in this Lease are conclusively agreed to be correct and binding upon the parties, even if a subsequent measurement of any
one of these areas determines that it is more or less than the amount of area reflected in this Lease, and (iv) any such subsequent determination that the area is more or less than shown in this Lease shall not result in a change in any of the
computations of rent, improvement allowances, or other matters described in this Lease where area is a factor. Where a party hereto is obligated not to perform or act, such party is also obligated to restrain any others within its control from
performing said act, including the Agents of such party. Landlord shall not become or be deemed a partner or a joint venturer with Tenant by reason of the provisions of this Lease. 
 15.12 Termination by Exercise of Right: If this Lease is terminated pursuant to its terms by the proper exercise of a right to
terminate specifically granted to Landlord or Tenant by this Lease, then this Lease shall terminate 30 days after the date the right to terminate is properly exercised (unless another date is specified in that part of the Lease creating the right,
in which event the date so specified for termination shall prevail), the rent and all other charges due hereunder shall be prorated as of the date of termination, and neither Landlord nor Tenant shall have any further rights or obligations under
this Lease except for those that have accrued prior to the date of termination or those obligations which this Lease specifically provides are to survive termination. This ¶15.12 does not apply to a termination of this Lease by Landlord as a
result of an Event of Tenant’s Default. 
 15.13 Brokerage Commissions: Each party (i) represents and warrants
to the other that it has not had any dealings with any real estate brokers, leasing agents or salesmen, or incurred any obligations for the payment of real estate brokerage commissions or finder’s fees which would be earned or due and payable
by reason of the execution of this Lease, other than to the Retained Real Estate Brokers described in Section S of the Summary, and (ii) agrees to indemnify, defend, and hold harmless the other party from any claim for any such
commission or fees which result from the actions of the indemnifying party. Landlord shall be responsible for the payment of any commission owed to the Retained Real Estate Brokers if there is a separate written commission agreement between Landlord
and the Retained Real Estate Brokers for the payment of a commission as a result of the execution of this Lease. 
 15.14
Force Majeure: Any prevention, delay or stoppage due to strikes, lock-outs, inclement weather, labor disputes, inability to obtain labor, materials, fuels or reasonable substitutes therefor, governmental restrictions, regulations, controls,
action or inaction, civil commotion, fire or other acts of God, and other causes beyond the reasonable control of the party obligated to perform (except financial inability) shall excuse the performance, for a period equal to the period of any said
prevention, delay or stoppage, of any obligation hereunder except the obligation of Tenant to pay rent or any other sums due hereunder. 
 15.15 Entire Agreement: This Lease constitutes the entire agreement between the parties, and there are no binding agreements or representations between the parties except as expressed herein.
Tenant acknowledges that neither Landlord nor Landlord’s Agents has made any legally binding representation or warranty as to any matter except those expressly set forth herein, including any warranty as to (i) whether the Premises may be
used for Tenant’s intended use under existing Law, (ii) the suitability of the Premises or the Project for the conduct of the Tenant’s business, or (iii) the condition of any improvements. There are no oral agreements between
Landlord and Tenant affecting this Lease, and this Lease supercedes or cancels any and all previous negotiations, arrangements, brochures, agreements and understandings, if any, between Landlord and Tenant or displayed by Landlord to Tenant with
respect to the subject matter of this Lease. This instrument shall not be legally binding until it is executed by both Landlord and Tenant. No subsequent change or addition to this Lease shall be binding unless in writing and signed by Landlord and
Tenant. 
  

 LEASE 
  

 IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease with the intent to be
legally bound thereby, to be effective as of the Effective Date. 
  

			
	LANDLORD:
	
	 ROSS DRIVE INVESTORS
 a California general partnership

		
	By:	 	 /s/ Michael J. Biggar

		 	Michael J. Biggar
		 	Manager
		
	Dated: 	 	1/29/96
	
	TENANT:
	
	 VERITY, INC.
 a
Delaware corporation

		
	By:	 	 /s/ Donald C. McCauley

		 	Donald C. McCauley
	Title:	 	Vice President and CFO
		
	By:	 	  

	Title:	 	  

	Dated:	 	  

  

 FIRST AMENDMENT TO LEASE 
 This First Amendment to Lease (the “Amendment”) is entered into on June 20, 1996 (the “Effective Date”) by and
between ROSS DRIVE INVESTORS, a California general partnership (“Landlord) and VERITY, INC., a Delaware corporation (“Tenant”). 
 RECITALS 
 A. Landlord and Tenant have previously entered into a Lease
dated January 22, 1996, as amended by the First Addendum to Lease of the same date (the “First Addendum”) (collectively “Lease”), respecting premises commonly known as 894 Ross Drive, Sunnyvale, California, and as more
particularly described in the Lease (the “Premises,”). 
 B. There currently exists some space in the Premises, which
has not yet been delivered to Tenant,, consisting of (i) approximately 2,363 square feet of space, as shown on the cross-hatched map attached hereto as Exhibit “A” (the “Remaining Space”) and (ii) an additional
150 square feet of space, currently utilized by another tenant of Landlord, as shown on the cross-hatched map attached here to as Exhibit “B” (the “Storage Space”). 
 C. The parties hereby enter into this Amendment in order to modify Tenant’s obligations to pay rent and its share of costs with respect
to the Remaining Space and the Storage Space, as well as to specify Landlord’s obligations to complete certain tenant improvement work. Unless otherwise defined, all terms used herein shall have the same meanings as given them in the Lease.

 AGREEMENT 
 1. Delivery of Storage Space. The Storage Space shall be deemed to be part of Suite 205, as defined in Paragraph 5 of the First Addendum. The Lease Term for the Storage Space shall begin on the
Expansion Space Commencement Date for Suite 205 and the Storage Space shall otherwise be subject to all of the provisions of Paragraph 5 of the First Addendum 
 2. Base Monthly Rent. Notwithstanding Paragraph 5 of the First Addendum or any other provision in the Lease to the contrary, Tenant’s obligations to pay Base Monthly Rent, Tenant’s share
of Common Operating Expenses or any other monetary obligations under Lease, shall not commence with respect to the Remaining Space and the Storage Space until Landlord delivers possession of the Remaining Space and the Storage Space, respectively,
to Tenant. 
 3. Change In Other Terms. The Lease contemplated that the Storage Space would be a part of the Premises
from the Commencement Date of the Lease. Accordingly, based on the postponement of the time when Tenant will receive possession of the Storage Space, the following changes to the Lease shall be effective until the Expansion Space Commencement Date
for the Storage Space: 
 A. Base Monthly Rent shall be as follows: Months 1-24 $31,999.80 per month; Months
25-60 $34,694.52; Months 61-84 $38,736.60; and Months 85-105 $41,768.16 

 B. Tenant’s Share shall be 16.69%. 
 4. Delivery of Remaining Space. Landlord shall deliver possession of the Remaining Space on or before 5:00 p.m. on June 27, 1996
(the “Delivery Date”), as delivery of possession is, contemplated by Paragraph 2.2(i) of the Lease. In addition to Tenant’s other remedies, if such delivery of possession is not made at such time, and for each day thereafter that
Landlord delays delivery of the Remaining Space to Tenant, Landlord shall pay to Tenant One Thousand Dollars ($1,000), up to a maximum of Ten Thousand Dollars ($10,000), until possession of the Remaining Space is delivered to Tenant. Landlord
acknowledges and agrees that if Landlord fails to deliver possession of the Remaining Space to Tenant on or before the Delivery Date, Tenant will sustain damages and loss as a result of such failure (“Damages”). By placing their initials
here, Landlord: MJB and Tenant: TJM agree that the exact amount of the Damages will be extremely difficult to ascertain. Accordingly, Landlord and Tenant agree that Tenant shall be entitled to recover from Landlord, as liquidated
damages and not as a penalty, the amounts set forth in the Paragraph. Landlord and Tenant hereby agree that the amounts set forth in this Paragraph are a reasonable estimate of the Damages which Tenant will sustain by reason of Landlord’s
failure to deliver possession of the Remaining Space. 
 3. Tenant Improvements. At its sole cost and expense, Landlord
shall complete the tenant improvement work shown on Exhibit “C” hereto prior to delivery of possession of the Remaining Space to Tenant. 
  

 2 

 IN WITNESS WHEREOF, the parties hereby enter into this Agreement as, of the Effective Date.

  

									
	LANDLORD:	 		 	TENANT:
			
	 ROSS DRIVE INVESTORS
 a California general partnership
	 		 	 VERITY, INC.,
 a
Delaware corporation

					
	By:	 	 /s/ Michael J. Biggar
	 		 	By:	 	 /s/ Timothy J. Moore

		 	Michael J. Biggar	 		 		 	Timothy J. Moore
		 	Manager	 		 		 	 Vice President
 Strategic
Investments And General Counsel

  

 3 

 SECOND AMENDMENT TO LEASE 
 This Second Amendment to Lease (the “Amendment”) is dated as of November 5, 1996, for reference purposes only, and is made
between Ross Drive Investors, a California general partnership (“Landlord”) and Verity, Inc., a Delaware corporation (“Tenant”) with reference to the following facts and circumstances, which are conclusively agreed between the
parties: 
 A. Landlord and Tenant are parties to a Lease and First Addendum to Lease dated for reference
purposes as of January 22, 1996, as modified by a First Amendment to Lease dated as of June 20, 1996 (referred to collectively as the “Lease”). All capitalized words having an assigned meaning in the Lease shall continue to have
such meaning in this Amendment unless explicitly modified. 
 B. Pursuant to the original Lease, Tenant leased
from Landlord 33,834 rentable square feet of space constituting Landlord’s premises located at 894 Ross Drive, Sunnyvale, California (the “Premises”). 
 C. Pursuant to the First Addendum to Lease, Paragraph 5, Tenant is obligated to lease certain spaces referred to in the lease
as the Expansion Space when they become available, and to execute an amendment to this Lease including such spaces. The two spaces making up the Expansion Space are Suites 203 and 205. Suite 203 will become available upon the voluntary termination
of the existing tenant’s lease on October 31, 1996. Suite 203 contains 5,070 rentable square feet of space. 
 D. Pursuant to the First Amendment to Lease, it was acknowledged that 150 rentable square feet of space, identified therein as the “Storage Space”, was to have been delivered to Tenant with the rest of the Premises under the
Original Lease, but that this did not occur and the delivery of such Storage Space would be delayed until delivery of Suite 205. Accordingly, the parties acknowledged certain related changes in the rent structure, and diminution of the size of the
original Premises from 33,834 rentable square feet to 33,684 rentable square feet. 

			
	Second Amendment To Lease	  	Page 2 of 4

  

 E. Landlord and Tenant wish to amend the Lease to provide for Tenant’s
additional lease of suite 203 as set forth below. 
 Now, therefore, in consideration of all of the foregoing facts and
circumstances, and for good and valuable consideration, the receipt of which is acknowledged by each party, Landlord and Tenant agree to and do amend the Lease as follows: 
 1. Demise Of Premises: Term 
 Landlord hereby leases to Tenant, and
Tenant hereby leases from Landlord, that certain 5,070 rentable square feet of space located at 894 Ross Drive, Suite 203, Sunnyvale, California (referred to herein as “Suite 203), for a term which shall run from the Expansion Space
Commencement Date to the expiration or earlier termination of the Lease. The Expansion Space Commencement Date for Suite 203 shall be November 5, 1996. Upon the Expansion Space Commencement Date for Suite 203, the total Premises leased to
Tenant will be 38,754 rentable square feet, and all references to the “Premises” shall mean and include both the originally identified Premises, less the Storage Space, and the Suite 203 area added hereby. 
 2. Base Monthly Rent 
 Beginning on the Expansion Space Commencement Date for Suite 203, the Base Monthly Rent for Suite 203 shall be $0.95 per rentable square feet for a monthly total of $4,816.50 per month, which shall be in addition to all other Base Monthly
Rent provided under the Lease, and which shall make the total Base Monthly Rent from and after the Expansion Space Commencement Date for Suite 203 a total of $36,816.30 per month. 
 Whenever, pursuant to Paragraph 3A of the First Amendment to Lease, the rent for the Premises shall increase, the rent applicable to Suite
203 shall also increase at the same rate. (For purposes of example, and not by way of limitation, beginning in Month 25 of the Lease, the rent for Suite 203 shall increase to $1.03 per rentable square foot, and thus shall increase the sums set forth
in Paragraph 3A of the First Amendment to Lease by said sum; beginning in Months 61 and 85, further rent increases shall occur on the same basis.) 

			
	Second Amendment To Lease	  	Page 3 of 4

  

 3. Tenant’s Share 
 Beginning on the Expansion Space Commencement Date for Suite 203, the Tenant’s Share, as set forth in Paragraph G of the Summary of
Basic Lease Terms, shall be 88.23%. 
 4. Parking 
 Beginning on the Expansion Space Commencement Date for Suite 203, the Tenant’s Allocated Parking Stalls, as set forth in Paragraph H of the Summary of Basic Lease Terms, shall be increased to a total
of 152 Tenant’s Allocated Parking Stalls. 
 5. Continuing Obligation; Incorporation 
 Except as expressly set, forth in this Amendment, all terms and conditions of the Lease remain in full force and effect, and all terms and
conditions of the Lease are incorporated herein as though set forth at length (including, but not limited to the provisions of Paragraph 5 of the First Addendum to Lease, which remain in full force and effect). 
 6. Effect of Amendment 
 This Amendment modifies the Lease. In the event of any conflict or discrepancy between the Lease and/or any other previous documents between the parties and the provisions of this Amendment, then the provisions of this Amendment shall
control. Except as modified herein, the Lease shall remain in full force and effect. 
 7. Authority 
 Each individual executing this Amendment on behalf of Tenant represents and warrants that he or she is duly authorized to and does execute
and deliver this Amendment pursuant to express authority from Tenant pursuant to and in accordance with the By-Laws and the other organic documents of the corporation. 

			
	Second Amendment To Lease	  	Page 4 of 4

  

 8. Brokerage Commissions 
 Neither party has been represented by a real estate broker in regard to the transaction represented by this Amendment,
and no brokerage commissions or finder’s fees are due in regard to the transaction. Tenant will hold Landlord harmless and indemnify Landlord against any claim, loss, or damage, including reasonable attorney’s fees, in regard to a
brokerage commission or finder’s fee claim by a broker or finder under contract with or working with Tenant. Landlord will hold Tenant harmless and indemnify Tenant against any claim, loss, or damage, including reasonable attorney’s fees,
in regard to a brokerage commission or finder’s fee claim by a broker or finder under contract with or working with Landlord. 
 9.
Entire Agreement 
 The Lease, as modified by this Amendment, constitutes and contains the entire
agreement between the parties, and there are no binding agreements or representations between the parties except as expressed herein. Tenant acknowledges that neither. Landlord nor Landlord’s Agents have made any legally binding representations
or warranties as to any matter except for such matters which are expressly set forth herein, including any representations or warranties relating to the condition of the suite 203, the Premises, or the improvements thereto or the suitability of the Suite 203, the Premises, or the Project for
Tenant’s business. 
  

			
	Dated: November 5, 1996
	
	LANDLORD
	
	Ross Drive Investors, a California general partnership
	
	 /s/ Michael J. Biggar

	By:	 	Michael J. Biggar, Manager
	
	Dated: November 5, 1996
	
	TENANT
	
	Verity, Inc., a Delaware corporation
	
	 /s/ [illegible]

		
	By:	 	  

		 	[Print Name and Title]
	
	Dated: November 5, 1996

 THIRD AMENDMENT TO LEASE 
 This Third Amendment to Lease (the “Amendment”) is dated as of January 17, 1997, for reference purposes only, and is made
between Ross Drive Investors, a California general partnership (“Landlord”) and Verity, Inc., a Delaware corporation (“Tenant”) with reference to the following facts and circumstances, which are conclusively agreed between the
parties: 
 A. Landlord and Tenant are parties to a Lease and First Addendum to Lease dated for reference
purposes as of January 22, 1996, as modified by a First Amendment to Lease dated as of June 20, 1996 and a Second Amendment to Lease dated as of November 5, 1996 (referred to collectively as the “Lease”). All capitalized
words having an assigned meaning in the Lease shall continue to have such meaning in this Amendment unless explicitly modified. 
 B. Pursuant to the original Lease, Tenant leased from Landlord 33,834 rentable square feet of space constituting Landlord’s premises located at 894 Ross Drive, Sunnyvale, California (the
“Premises”). 
 C. Pursuant to the First Addendum to Lease, Paragraph 5, Tenant is obligated to lease
certain spaces referred to in the lease as the Expansion Space when they become available, and to execute an amendment to this Lease including such spaces. The two spaces making up the Expansion Space are Suites 203 and 205. 
 D. Pursuant to the First Amendment to Lease, it was acknowledged that 150 rentable square feet of space, identified therein
as the “Storage Space” was to have been delivered to Tenant with the rest of the Premises under the original Lease, but that this did not occur and that the delivery of such Storage Space would be delayed until delivery of Suite 205.
Accordingly, the parties acknowledged certain related changes in the rent structure, and diminution of the size of the original Premises from 33,834 rentable square feet to 33,684 rentable square feet. 
 E. Suite 203 became available and has been delivered to Tenant, pursuant to a Second Amendment to Lease dated as of
November 5, 1996. 

			
	Third Amendment To Lease	  	Page 2 of 4

  

 F. Landlord has delivered Suite 205 and the Storage Space to Tenant. Suite
205 contains 5021 rentable square feet of space and the Storage Space contains 150 rentable square feet of space, for a total of 5,171 rentable square feet of space. 
 G. Landlord and Tenant wish to amend the Lease to provide for Tenant’s additional lease of Suite 205 and the Storage
Space as set forth below. 
 Now, therefore, in consideration of all of the foregoing facts and circumstances, and for good and
valuable consideration, the receipt of which is acknowledged by each party, Landlord and Tenant agree to and do amend the Lease as follows: 
 1. Demise Of Premises; Term 
 Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, that
certain 5,171 rentable square feet of space located at 894 Ross Drive, Suite 205, Sunnyvale, California, including the Storage Space (collectively referred to in the remaining portions of this Amendment as “Suite 205”), for a term which
shall run from the Expansion Space Commencement Date to the expiration or earlier termination of the Lease. The Expansion Space Commencement Date for Suite 205 shall be December 10, 1996. On the Expansion Space Commencement Date for Suite 205,
the total Premises leased to Tenant will be 43,925 rentable square feet, and all references to the “Premises” shall mean and include both the originally identified Premises, Suite 203, and Suite 205. 
 2. Base Monthly Rent 
 Beginning on the Expansion Space Commencement Date for Suite 205, the Base Monthly Rent for Suite 205 and the Storage Space shall be $0.95 per rentable square feet for a monthly total of $4,912.45 per month, which shall be in addition to
all other Base Monthly Rent provided under the Lease, and which shall make the total Base Monthly Rent from and after the Expansion Space Commencement Date for Suite 205 a total of $41,728.75 per month. 
 Whenever, pursuant to Paragraph 3A of the First Amendment to Lease, the rent for the Premises shall increase, the rent applicable to Suite
205 shall also increase at the same rate. (For purposes of example, and not by way of limitation, beginning in Month 25 of the Lease, the rent for Suite 205 shall increase to $1.03 per rentable square foot, and thus shall increase the sums set forth
in Paragraph 3A of the First Amendment to Lease by said sum; beginning in Months 61 and 85, further rent increases shall occur on the same basis.) 

			
	Third Amendment To Lease	  	Page 3 of 4

  

 3. Tenant’s Share 
 Beginning on the Expansion Space Commencement Date for Suite 205, the Tenant’s Share, as set forth in Paragraph G of the Summary of Basic Lease Terms, shall be 100%. 
 4. Parking 
 Beginning on
the Expansion Space Commencement Date for Suite 205, the Tenant’s Allocated Parking Stalls, as set forth in Paragraph H of the Summary of Basic Lease Terms, shall be increased to a total of 172 Tenant’s Allocated Parking Stalls.

 5. Continuing Obligation: Incorporation 
 Except as expressly set forth in this Amendment, all terms and conditions of the Lease remain in full force and effect, and all terms and conditions of the Lease are incorporated herein as though set
forth at length (including, but not limited to the provisions of Paragraph 5 of the First Addendum to Lease, which remain in full force and effect). 
 6. Effect of Amendment’ 
 This Amendment modifies the Lease. In the event of any conflict or discrepancy
between the Lease and/or any other previous documents between the parties and the provisions of this Amendment, then the provisions of this Amendment shall control. Except as modified herein, the Lease shall remain in full force and effect.

 7. Authority 
 Each individual executing this Amendment on behalf of Tenant represents and Amendment pursuant to express authority from Tenant pursuant to and in accordance with the By-Laws and the other organic documents of the corporation. 

8. Brokerage Commissions 
 Neither party has been represented by a real estate broker in regard to the transaction represented by this Amendment, and no brokerage commissions or finder’s fees are due in regard to the transaction. Tenant will hold Landlord
harmless and

			
	Third Amendment To Lease	  	Page 4 of 4

  

 
indemnify Landlord against any claim, loss, or damage, including reasonable attorney’s fees, in regard to a brokerage commission or finder’s fee claim by a broker or finder under
contract with or working with Tenant. Landlord will hold Tenant harmless and indemnify Tenant against any claim, loss, or damage, including reasonable attorney’s fees, in regard to a brokerage commission or finder’s fee claim by a broker
or finder under contract with or working with Landlord. 
 9. Entire Agreement 
 The Lease, as modified by this Amendment, constitutes and contains the entire agreement between the parties, and there are no binding
agreements or representations between the parties except as expressed herein. Tenant acknowledges that neither Landlord nor Landlord’s Agents have made any legally binding representations or warranties as to any matter except for such matters
which are expressly set forth, herein, including any representations or warranties relating to the condition of the suite 205, the Premises or the improvements thereto or the suitability of the Suite 205, the Premises, or the Project for
Tenant’s business: 
  

			
	Dated: January 17, 1997
	
	LANDLORD
	
	Ross Drive Investors, a California general, partnership
	
	 /s/ Michael J. Biggar

	By:	 	Michael J. Biggar, Manager
	
	Dated: January 17, 1997
	
	TENANT
	
	Verity, Inc., a Delaware corporation
	
	 /s/ [illegible]

		
	By	 	  

		 	[Print Name and Title]
	
	Dated: January 17, 1997

 FOURTH AMENDMENT TO LEASE 
 THIS FOURTH AMENDMENT TO 894 ROSS DRIVE LEASE (this “Amendment”) is dated effective as of March 15, 2004 (the “Effective
Date”), and is made by and between ROSS DRIVE INVESTORS, a California general partnership, and DAVID J. BROWN (“Landlord’), and VERITY, INC., a Delaware corporatism (“Verity” or “Tenant”). This Amendment is made
part of and modifies the Lease dated January 22, 1996, together with the Summary of Basic Lease Terms, the First Addendum to Lease, the Second Addendum to Lease, the Acceptance Agreement, the First Amendment to Lease dated June 20, 1996,
the Second Amendment to Lease dated November 5, 1996 and the Third Amendment to Lease dated January 17, 1997, applicable to the premises located at 894 Ross Drive, Sunnyvale, California (the “894 Ross Drive Lease”). It relates to
that certain other Lease between Landlord and Tenant dated January 22, 1996, together with the Summary of Basic Lease Terms, the First Addendum to Lease, the Second Addendum to Lease, and the Acceptance Agreement applicable to the premises
located at 892 Ross Drive, Sunnyvale, California (the “892 Ross Drive Lease”). The 892 Ross Drive Lease and the 894 Ross Drive Lease shall be collectively referred to herein as the “Leases” and individually as a
“Lease”. This Amendment is made with reference to the following facts: 
 A. The Promises currently leased by Tenant
pursuant to the 892 Ross Drive Lease consist of 51,217 rentable square feet commonly known as 892 Rosa Drive, City of Sunnyvale and the Premises leased pursuant to the 894 Ross Drive Lease consist of 43,925 rentable square feet commonly known as 894
Ross Drive, City of Sunnyvale, California. 
 B. The Lease Term for each of mid Premises currently expires on February 28,
2005. 
 C. Tenant and Landlord wish to amend the 894 Ross Drive Lease on the terms and conditions set forth in this Amendment.
All capitalized terms used in this Amendment shall have the meaning ascribed to them in the Lease unless expressly defined herein. 
 NOW, THEREFORE, Landlord and Tenant hereby agree that the Lease terms are amended as follows: 
 1. Lease Term:
The Lease Term for the 894 Ross Drive Lease is extended to and including March 31, 2011, and the said Lease is amended to provide that the Lease Term shall end March 31, 2011. 
 2. Base Monthly Rent: Commencing March 15, 2004, the total Base Monthly Rent for the 894 Ross Drive Lease shall be as provided
in the following table, and the Lease is so amended: 
  

			
	 March 15, 2004 through and including March 31, 2005:
	  	$28,551.25 per month
	April 1, 2005 through and including March 31, 2006:	  	$32,943.75 per month
	April 1, 2006 through and including March 31, 2007:	  	$37,336.25 per month
	April 1, 2007 through and including March 31, 2008:	  	$37,336.25 per month
	April I, 2008 through and including March 31, 2009:	  	$43,925.00 per month
	April 1, 2009 through and including March 31, 2010:	  	$43,925.00 per month
	April 1, 2010 through and including March 31, 2011:	  	$48,317.50 per month

 3. Option to Extend Lease Term: Landlord hereby grants to Tenant one option to
extend the Lease Term of the 894 Ross Drive Lease for a five (5) year term commencing when the prior term expires, under the following terms and conditions: 
 A. Exercise Dates: Tenant must give Landlord notice in writing of its exercise of the option in question no earlier than three hundred sixty (360) days before the date the Lease Term would end
but for said exercise (the “Earliest Exercise Date”) and no later than one hundred eighty (180) days before the date the Lease Term would end but for said exercise (the “Last Exercise Date”). Valid exercise by Tenant shall
be conditioned on Tenant validly exercising its option as to the 892 Ross Drive Avenue Premises as well as the 894 Ross Drive Premises, and Tenant is not entitled to exercise an option for one of the Leases and not the other. 

 B. Conditions to Exercise of Option: Tenant’s right to extend is conditioned
upon and subject to each of the following: 
 (1) In order to exercise its option to extend, Tenant must give written notice of
such election to Landlord and Landlord must receive same by the Last Exercise Date, but not prior to the Earliest Exercise Date. If proper notification of the exercise of an option is not given and/or received, such option shall automatically
expire. Failure to exercise an option terminates that option and all subsequent options. Tenant acknowledges that because of the importance of Landlord of knowing no later than the Last Exercise Date whether or not Tenant will exercise the option,
the allure of Tenant to notify Landlord by the Last Exercise Date will conclusively be presumed an election by Tenant not to exercise the option. 
 (2) Tenant shall have no right to exercise an option (1) if Tenant is in Default beyond any cure period provided in the Lease (if applicable) either on the date of exercise of the option or on the
date on which the Lease would terminate absent exercise of the option or (ii) in the event that Landlord has given to Tenant three (3) or more notices of separate Defaults during the 12 month period immediately preceding the exercise of
the option, whether or not the Defaults are cured. The period of time within which an option may be exercised shall not be extended or enlarged by region of Tenant’s inability to exercise en option because of the provisions of this Paragraph.

 C. Creation of Extended Term: Upon the timely exercise of the option to extend and the commencement of the extended
Term, all references in the Lease to the Term shall be considered to mean the Term as extended by the exercise of the option, which shall be referred to herein as the “Extended Term”. 
 D. Options Personal: The option is personal to the Tenant, and cannot be assigned to or exercised by anyone other than the Tenant.
The option can Only be exercised at a time when the Tenant is in possession of not less than fifty percent (50%) of the Premises and does not have any intent of thereafter assigning or subletting. Notwithstanding the above, Tenant may assign
the options together with Tenant’s interest under this Lease to a transferee in a Permitted Transfer. 
 E. The Base
Monthly Rent for the Option Period shall be one hundred percent (100%) of the than flair market monthly rent determined as of the commencement of the option period in question based upon like buildings with like improvements in the area. The
Option Period shall contain no free rent and the Premises shall be taken “as-is”. If the patio are unable to agree upon the fair market monthly root for the Premises for the option period in question at least seventy-five (75) days
prior to the commencement of the option period in question, than the fair market monthly rent shall be determined by appraisal conducted pursuant to subparagraph F. 
 F. In the event it becomes necessary to determine by appraisal the fair market rent of the Premises for the purpose of establishing the Base Monthly Rent during the Option Period, then such fair market
monthly rent shall be determined by three (3) real estate appraisers, all of whom shall be members of the American Institute of Real Estate Appraisers with not less than five (5) years experience appraising road property (other than
residential or agricultural property) located in Santa Clara County, California, in accordance with the following procedures: 
 (1) The party demanding an appraisal (the “Notifying Party”) shall notify the other party (the “Non-Notifying Party”) thereof by delivering a written demand for appraisal, which demand, to be effective, must give the
name, address, and qualifications of an appraiser selected by the Notifying Party. Within ten (10) days of receipt of said demand, the Non-Notifying Party shall select its appraiser and notify the Notifying Party, in writing, of the name,
address, and qualifications of an appraiser selected by it. Failure by the Non-Notifying Party to select a qualified appraiser within said ten (10) day period shall be deemed a waiver of its right to

  

 2 

 
select a second appraiser on its own behalf and the Notifying Party shall select a second appraiser on behalf of the Non-Notifying Party within five (5) days after the expiration of said ten
(10) day period. Within ten (10) days from the date the second appraiser shall have been appointed, the two (2) appraisers so selected shall appoint a third appraiser. If the two appraisers fail to select a third qualified appraiser,
the third appraiser shall be selected by the American Arbitration Association or if it shall refuse to perform this function, then at the request of either Landlord or Tenant, such third appraiser shall be promptly appointed by the then Presiding
judge of the Superior Court of the State of California for the County of Santa Clara. 
 (2) The three (3) appraisers so
selected shall meet in San Jose, California, not later than twenty (20) days following the selection of the third appraiser. At said meeting the appraisers so selected shall attempt to determine the fir market monthly rent of the Premises for
the option period in question (including the timing and amount of periodic increases, if such increases are then prevailing in the market). 
 (3) If the appraisers so selected are unable to complete their determinations in one meeting, they may continue to consult at such times as they deem necessary for a fifteen (15) day period from the
date of the first meeting, in an attempt to have at least two (2) of them agree. If, at the initial meeting or at any time during said fifteen (15) day period, two (2) or more of the appraisers so selected agree on the fair market
rent of the Leased Premises, such agreement shall be determinative and binding on the parties hereto, and the agreeing appraisers shall, in simple letter form executed by the agreeing appraisers, forthwith notify both Landlord and Tenant of the
amount set by such agreement. 
 (4) If two (2) or more appraisers do not so agree within said fifteen (15) day
period, then each appraiser shall, within five (5) days after the expiration of said fifteen (15) day period, submit his independent appraisal in simple letter form to Landlord and Tenant stating his determination of the fair market rent
of the Premises for the option period in question. The parties shall then determine the fair market rent for the Premises by determining the average of the fair market rent set by each of the appraisers. However, if the lowest appraisal is less than
eighty-five percent (85%) of the middle appraisal then such lowest appraisal shall be disregarded and/or if the highest appraised is greater than one hundred fifteen percent (115%) of the middle appraisal then such highest appraisal shall
be disregarded. If the Air market rent set by any appraisal is so disregarded, then the average shall be determined by computing the average set by the other appraisals that have not been disregarded. 
 (5) Nothing contained herein shall prevent Landlord and Tenant from jointly selecting a single appraiser to determine the fair market rent
of the Premises, in which event the determination of such appraisal shall be conclusively deemed the fair market rent of the Premises. 
 (6) Each party shall bear the fees and expenses of the appraiser selected by or for it, and the fees and expenses of the third appraiser (or the joint appraiser if one joint appraiser is used) shall be
borne fifty percent (50%) by Landlord and fifty percent (50%) by Tenant. 
 G. The option granted in this paragraph
is the sole option possessed by Tenant following the execution hereof, and all other options set faith in the leases shall be of no force or effect. 
 4. Tenant Improvement Allowance: Landlord will provide a Tenant Improvement Allowance of Five Hundred Thousand 00/100ths Dollars ($500,000.00) toward improvements in 892 and 894 Ross Drive. Tenant
may allocate this Tenant Improvement Allowance at Tenant’s discretion between the two Premises and the two Leases. However, the total amount to be provided by Landlord for both Leases and both Premises shall be $500,000.00 and no more. The
Allowance will be provided as a reimbursement of money actually expended by Tenant toward new Tenant Improvements (which must be approved by Landlord under the provisions of the Lease relating to construction) prior to December 31, 2005.
Subject to the provisions below,

  

 3 

 
reimbursement by Landlord will be made within sixty (60) days of presentation of reasonably adequate documentation evidencing the expenses incurred and confirming that (i) all Tenant
Improvements for which reimbursement is sought have been completed; (ii) all contractors, materialmen, suppliers, and others entitled to a lien have provided evidence satisfactory to Landlord releasing or waiving any such liens (or a proper
Notice of Completion has been filed and the statutory period for filing of liens following recordation of a Notice of Completion has expired in the reasonable opinion of counsel for Landlord); and (iii) said funds have actually been expanded by
December 31, 2005 for the Tenant Improvements approved by Landlord. Upon application for funds in conformity with the above period, Landlord may audit Tenant’s records upon request made within thirty (30) days after the request is
made in regard to each such request for reimbursement. Notwithstanding the above provisions, Landlord shall not be obligated to pay any reimbursement to Tenant in accordance with the above prior to March 31, 2005. Tenant may apply for
reimbursement of such matters at any time to and including March 31, 2006. Landlord will have no duty to reimburse based on any application which is received by Landlord after such date. Tenant may not apply for reimbursement wider this
Paragraph 4 more often than three (3) times in any calendar year. In the event of any non-payment of reimbursement which was due to Tenant, after said reimbursement was due under the above provision, the Tenant shall be entitled to set the
amount which it should have been reimbursed off against Rent due to Landlord under either Lease. 
 5. Signage: Verity
will have exclusive monument signage for the monument currently in front of the building at 890-892 Ross Drive plus any building signage that governing authorities will approve for the Project subject to maintaining reasonably adequate signage for
other tenants. Additionally, Landlord will assist Verity in the design and approval process for obtaining a “pylon” sign for visibility to Highway 101 (provided, however, that Landlord cannot guarantee action by the authorities having
jurisdiction over such a sign). Tenant may use the Tenant Improvement Allowance to pay the costs of permitted signage. Tenant may display banners outside the Building for up to two (2) weeks with the prior consent of Landlord, which shall not
be unreasonably withheld. 
 6. Right of First Negotiation: 
 A. Grant and Right of First Negotiation: Landlord hereby grants to Tenant a Right of First Negotiation regarding the leasing of the
“First Negotiation Space”, which consists of the portion of the Building (Project) which is identified and described on Exhibit “A” as the First Negotiation Space, being approximately 44,340 square feet of rentable space commonly
known as 890 Ross Drive, Sunnyvale on the terms contained in this Paragraph. 
 B. Negotiation Notice: If Landlord
proposes to lease all or part of the First Negotiation Space at any time after the Effective Date of this Lease and before the expiration or earlier termination of this Right of First Negotiation, Landlord shall notify Tenant in writing (the
“Negotiation Notice”) of the following basic business terms upon which Landlord would be willing to lease the First Negotiation Space; (i) the portion of the First Negotiation Space which Landlord propose to lease (the “Offered
Space”), (ii) the term of the proposed lease; (iii) the tenant improvements Landlord is willing to construct or that it will require be constructed and the contribution Landlord is willing to make to pay for such tenant improvements;
(iv) the rent for the terms of the lease or formula to be used to determine such rent, and (v) any other material business terms Landlord elects to specify. 
 C. Negotiation Period: Tenant shall have ten (10) days (the “Negotiation Period”) from the Negotiation Notice within which to conduct negotiations with Landlord regarding
Tenant’s leasing of the Offered Space, whether on the terms set forth in Landlord’s notice or otherwise. 
 D.
Duties During Negotiation Period: During the Negotiation Period, Landlord and Tenant will negotiate in good faith in an attempt to agree on a lease of the Offered Space. Neither Landlord nor Tenant shall be bound to agree to or accept any
terms and conditions for such lease except those which each party, in its sole discretion, wishes to agree to. “Good Faith” in such negotiations does not require either party to make concessions to the other party’s position,

  

 4 

 
but only requires that each party give the other party a reasonable opportunity, within the Negotiation Period, to present and discuss the party’s proposals. Landlord is not bound to agree
to any or all of the terms set forth in the Negotiation Notice if it determines during negotiations that one or more of said terms is not in landlord’s best interest. 
 E. Landlord’s Right To Lease Absent Agreement: If Landlord and Tenant do not reach agreement in writing for Tenant to lease the
Offered Space within the Negotiation Period, Landlord thereafter shall have the right to offer the Offered Space to any third party, on such terms and conditions as Landlord may elect, and Landlord shall not thereafter, have any duty to further
offer the Offered Space to Tenant. 
 F. Termination: The right granted to Tenant in this Paragraph is personal to
Tenant, and may not be assigned by Tenant to any third party, either alone or in conjunction with an assignment of this Lease or a sublease of all or any part of the Premises. The rights granted to Tenant under this paragraph shall terminate upon
the earliest of the following to occur: (i) the expiration or earlier termination of the Lease; (ii) any assignment by Tenant of its interest in this Lease; (iii) any subletting by Tenant of substantially all of the Premises for
substantially all of the remainder of the Lease Term, (iv) the termination of this right by default as set forth in Subparagraph G below, or (v) as to any Offered Space, when the Negotiation Period ends without Tenant and Landlord reaching
a written agreement for Tenant to lease the Offered Space. 
 G. Termination By Default: The rights of Tenant under this
Paragraph shall not be effective at any time when Tenant is in default under this Lease beyond any applicable cure period provided in this Lease. If Tenant, with the agreement of Landlord, shall nevertheless cure such default, then the rights
provided hereunder shall be reinstated, but any transaction to lease any or all of the First Negotiation Space entered into by Landlord during such period of default shall be valid and Tenant shall have no further Right of First Negotiation as to
any such space leased by Landlord while Tenant is in default under this Subparagraph. 
 H. No Right To Negotiation For
Renewal Or Extension Space: The right granted to Tenant by this Paragraph shall not arise on account of or in connection with the renewal or extension of the term of any than existing lease affecting all or any portion of the First Negotiation.

 I. Concordance with Other Lease: A single right of first negotiation is granted to Tenant pursuant to both Leases.
The existence of this language in both Leases does not create more than one such right in Tenant, and such right may not, under any circumstances, be exercised by any other party but Tenant. 
 7. Assignment and Subleasing: Verity shall have the right to sublease all or part of the Premises subject to Landlord’s
reasonable approval. Verity may sublease to any entity wholly owned by or merged with Verity without Landlord’s consent, but with advance written notice to Landlord (documenting the facts of the ownership. Landlord will attend promptly to and
expedite consent to any Subleases, and shall use reasonable efforts to respond to a request for consent to a sublease within five (5) business days of the later of receipt of such request or the receipt of all information reasonably required or
requested by Landlord in connection therewith. Sublease or assignment profits (other than for subleases to any Tenant wholly owned or merged with Verity) shall be shared Fifty Percent (50%) to Landlord and Fifty Percent (50%) to Verity,
net of reasonable costs for brokers, reasonable attorneys’ fees, and reasonable subtenant improvements and triple net expenses paid by Verity attributable to the subleased space which are not paid or reimbursed by the subtenant. Notwithstanding
the above, Verity shall be entitled to defer payment of any sublease or assignment profits to Landlord until March 31, 2005, on which date Verity shall pay all of Landlord’s share of sublease or assignment profits received to that date.
The provisions of this Paragraph 7 are intended to supplement, and not limit or modify, the provisions regarding a Permitted Transfer in the Lease. 
  

 5 

 8. Non-Disturbance: Landlord will work to obtain a commercially reasonable
non-disturbance agreement acceptable to Verity from Landlord’s current and future lenders, at no cost to Landlord. However, Landlord’s inability to obtain such a non-disturbance agreement is not a breath of this Lease nor a failure of
condition. 
 9. Alterations Limit: Tenant shall have the right to complete any interior alteration for the project
subject to Landlord’s consent, which shall not be unreasonably withheld, conditioned or delayed. Tenant shall have no restoration requirements for the current existing tenant improvements. Landlord’s consent to new improvements shall
contain Landlord’s restoration requirements at the time consent is granted. 
 10. Retained Real Estate Brokers:
Tenant is represented by Colliers International and no other brokers or finders in the execution of this Amendment. 
 11.
HVAC and Roof Repairs: Capital Improvements: 
 A. The roof of 892 Ross Drive was resurfaced in 1999 and the roof of 894
Ross Drive was resurfaced in 2002. These roofs are inspected and any needed maintenance performed annually in addition to twice per year cleaning. This work is part of Common Area Expenses. 
 B. Verity has been maintaining the HVAC system for the Premises with Verity’s contractor. Should any of the HVAC equipment for the
Premises need replacing, Verity may allocate some of the Tenant Improvement Allowance (Item #5) to these costs. 
 C. Any
single item of maintenance, repair or replacement performed by either party under the Lease with a cost of Twenty Thousand Dollars ($20,000) or more relating to the roof, the pump and associated fire suppression equipment, including interior fire
sprinklers which were installed by Landlord (and specifically excluding any fire suppression systems or components of the master fire suppression system which have been installed or are installed by Tenant or were installed in improvements
constructed by Tenant), or the HVAC system shall be a “Capital Improvement” under this Paragraph 11.C, which in the case of items performed by Landlord shall be amortized and treated as set forth in Section 5.4 of the Lease. If the
Tenant is obligated under the Lease to perform any such Capital Improvement, Tenant shall pay at the time of performing such Capital Improvement only the first animal installment of the amortized cost of such item, determined as set forth above, and
Landlord shall pay the balance of the cost of such Capital Improvement, subject to Tenant’s subsequent annual reimbursement to Landlord of the amortized cost of such item which cornea due during the Term and any Extended Term, of the Lease. For
example, if a Capital Improvement has a cost of $50,000 and a useful life of ten (10) years, Tenant’s obligation for principal would be $5,000 annually (plus amortization costs per Paragraph 5.4), subject to termination at the expiration
of the Term or any Extended Term of the Lease. 
 12. Miscellaneous Provisions: 
 A. Verity shall have the right to select and use a reputable licensed contractor on a competitive bid process to construct improvements and
alterations to the Premises subject to Landlord’s reasonable approval process. Landlord’s associated licensed contractor shall be invited to submit a bid on improvements and alterations. 
 B. Verity shall designate a reputable licensed HVAC contractor to conduct maintenance on the Premises during the Lease Term.
Landlord’s associated licensed contractor shall be invited to submit a bid on any equipment replacements. 
 13.
Condition of Premises: Tenant is fully familiar with the Premises by way of its occupancy and accepts the Premises for the extended term created hereby in their as-is condition, with all latent and patent faults, without warranty or
obligation on the part of Landlord to provide or pay for any interior improvements or tenant improvement allowances, except as expressly set forth herein. Upon timely exercise of the option to extend, Tenant shall take the Premises for the Extended
Term on the same basis. 
  

 6 

 14. Continuing Obligation: Except as expressly modified by the terms of this
Amendment, all terms and conditions of the Lease remain in full force and effect, and all terms and conditions of the Lease are incorporated herein as though set forth at length. 
 15. Effect of Amendment: This Amendment modifies the Lease. In the event of any conflict or discrepancy between the Lease and/or any
other previous documents between the parties and the provisions of this Amendment, then the provisions of this Amendment shall control. Except as modified herein, the Lease shall remain in full force and effect. 
 16. Authority: Each individual executing this Amendment on behalf of Tenant represents and warrants that he or she is duly authorized
to and does execute and deliver this Amendment pursuant to express authority from Tenant pursuant to and in accordance with the By-Laws and the other organic documents of the Tenant corporation. 
 17. Entire Agreement: The Lease, as modified by this Amendment, constitutes and contains the entire agreement between the parties,
and there are no binding agreements or representations between the parties except as expressed herein. Tenant acknowledges that neither Landlord nor Landlord’s Agents have made any legally binding representations or warranties as to any matter
except as expressly set forth herein, including any representations or warranties relating to the condition of the Premises or the improvements thereto or the suitability of the Premises or the Project for Tenant’s business. 
  

 7 

 IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment as of the Effective
Date. 
  

							
	LANDLORD:	 	TENANT:
		
	 ROSS DRIVE INVESTORS
 a California general partnership
	 	 VERITY, INC.
 a
Delaware corporation

				
	By:	  	 /s/ David J. Brown
	 	By:	 	 /s/ [illegible]

		  	David J. Brown	 		 	[Print Name and Title]
		  	Manager	 		 	
			
	DAVID J. BROWN	 		 	
				
	By:	  	 /s/ David J. Brown
	 	By:	 	  

		  	David J. Brown	 		 	
				
		  	OR	 		 	  

		  		 		 	[Print Name and Title]
	By:	  	  
	 		 	
		  	Michael J. Biggar, His Attorney-in-Fact	 		 	
	Date:	  	  
	 	Date:	 	  

  

 8

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