Document:

Severance Agreement

 EXHIBIT 10.1 
 METABASIS THERAPEUTICS, INC. 
 AMENDED AND RESTATED SEVERANCE AGREEMENT 
 THIS AMENDED AND RESTATED SEVERANCE AGREEMENT (this
“Agreement”) is entered into effective as of April 22, 2009 (the “Effective Date”), by and between BARRY GUMBINER (the
“Employee”) and METABASIS THERAPEUTICS, INC., a Delaware corporation (the “Company”). This Agreement shall replace and supersede in its entirety that
certain Severance Agreement between the Employee and Company entered into effective June 18, 2007 (the “Prior Agreement”). 
 RECITALS 
 A. WHEREAS, the Company and Employee previously
entered into the Prior Agreement and desire to amend and restate the Prior Agreement in its entirety as set forth herein, effective as of the Effective Date, to, among other things, provide for additional severance benefits that may be provided to
Employee and clarify the application of Section 409A of the Internal Revenue Code (the “Code”) to the severance benefits that may be provided to Employee; 
 B. WHEREAS, the Company desires to continue to retain the Employee’s experience, skills, abilities, background and knowledge
and is willing to engage the Employee’s services on the terms and conditions set forth in this Agreement; and 
 C.
WHEREAS, the Employee desires to continue to be in the employ of the Company and is willing to accept such employment on the terms and conditions set forth in this Agreement. 
 AGREEMENT 
 NOW, THEREFORE , in consideration of the foregoing Recitals and the mutual promises and covenants herein contained, and for other good and valuable consideration the receipt and sufficiency of which is
acknowledged, it is agreed between the parties as follows: 
  

	 	1.	Term of Agreement. 

 This Agreement shall remain in
effect from the Effective Date until the earlier of: 
 (a) The date when the Employee’s employment with the Company terminates
for any reason not described in Section 6; or 
 (b) The date when the Company has met all of its obligations under this
Agreement following a termination of the Employee’s employment with the Company for a reason described in Section 6. 
  

 1. 

	 	2.	Definition of Change in Control. 

 For all purposes
under this Agreement, “Change in Control” shall mean the occurrence of any of the following events after the Effective Date: 
 (a) The Company is merged, consolidated, or reorganized into or with another legal entity, and as a result of such merger, consolidation or reorganization more than 50% of the voting securities of such entity
or its parent outstanding immediately after such transaction are held by persons other than the holders of voting securities of the Company immediately prior to such transaction; 
 (b) The Company sells all or substantially all of its assets to another legal entity and thereafter, more than 50% of the voting securities of
such entity or its parent outstanding immediately after such transaction are held by persons other than the holders of voting securities of the Company immediately prior to such transaction; 
 (c) A change in the composition of the Company’s Board of Directors (the “Board”) during any period of two
consecutive years such that individuals who at the beginning of such period were members of the Board cease for any reason to constitute at least a majority thereof, unless the election, or the nomination for election by the Company’s
stockholders, of each new director was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of the period; or 
 (d) Any person (as the term person is used in Section 13(d)(3) or Section 14(d)(2) of the Exchange Act of 1934, as amended (the
“Exchange Act”)) has become the beneficial owner (as the term “beneficial owner” is defined under Rule 13d-3, or any successor rule or regulation promulgated under the Exchange Act) of more than 50% of the then
outstanding voting securities of the Company; provided that changes in beneficial ownership resulting from issuances of securities by the Company in transactions the primary purpose of which is to raise capital through the sale of Company
equity to one or more financial investors shall be disregarded in determining whether a Change in Control has occurred. 
  

	 	3.	Definition of Good Reason. 

 For all purposes under
this Agreement, “Good Reason” for the Employee to terminate the Employee’s employment hereunder shall mean the occurrence of any of the following events without the Employee’s consent; provided however, that
any resignation by the Employee due to any of the following conditions shall only be deemed for Good Reason if: (i) the Employee gives the Company written notice of the intent to terminate for Good Reason within ninety (90) days following
the first occurrence of the condition(s) that the Employee believes constitutes Good Reason, which notice shall describe such condition(s); (ii) the Company fails to remedy, if remediable, such condition(s) within thirty (30) days
following receipt of the written notice (the “Cure Period”) of such condition(s) from the Employee; and (iii) Employee actually resigns his employment within the first fifteen (15) days after expiration of the Cure
Period: 
 (a) a material reduction in Employee’s authority or responsibility as an employee of the Company, including (without
limitation) a reduction or elimination of authority to approve expenditures or to hire, promote, demote or terminate subordinates; 
  

 2. 

 (b) a material reduction in his annual base salary or target bonus opportunity as an employee of
the Company, other than pursuant to a Company-wide reduction of annual base salary or target bonus opportunities for employees of the Company generally; or 
 (c) the relocation of the Company’s executive offices by a distance of fifty (50) miles or more, which relocation requires an increase in the Employee’s one-way driving distance by more than
thirty-five (35) miles. 
  

	 	4.	Definition of Cause. 

 For all purposes under this
Agreement, “Cause” shall mean: 
 (a) a material and continuing failure to perform the duties of
Employee’s employment which is injurious to the Company, other than a failure resulting from complete or partial incapacity due to physical or mental illness or impairment, which failure is not corrected within 15 business days after written
notice thereof to the Employee; 
 (b) Employee’s gross misconduct or fraud; or 
 (c) Employee’s conviction of, or plea of “guilty” or “no contest” to, a felony. 
  

	 	5.	Definition of Continuation Period. 

 For all
purposes under this Agreement, “Continuation Period” shall mean the period commencing on the date when the termination of the Employee’s employment under Section 6 is effective and ending on the earlier of:

 (a) the date twelve (12) months after the date when the employment termination was effective; or 
 (b) the date of the Employee’s death. 
  

	 	6.	Entitlement to Severance Pay and Benefits. 

 (a) The Employee shall be entitled to receive the severance pay described in Section 7 (the “Severance Pay”) and the benefits described in Section 8(a)(i), 8(b) and 8(c) from the Company if on or
before the occurrence of a Change in Control, the Company terminates the Employee’s employment for any reason other than Cause. 
 (b) The Employee shall be entitled to receive the Severance Pay described in Section 7 and the benefits described in Section 8(a)(ii), 8(b) and 8(c) from the Company if one of the following events occurs: 
 (i) Within the first 12-month period after the occurrence of a Change in Control, the Employee voluntarily resigns his employment for Good
Reason; 
  

 3. 

 (ii) Within the first 12-month period after the occurrence of a Change in Control, the Company
terminates the Employee’s employment for any reason other than Cause; or 
 (iii) Within the first 12-month period after the
occurrence of a Change in Control, the Company terminates the Employee’s employment because his position has been eliminated in connection with a restructuring or a reduction in force, as determined by the Company. 
 (c) The Employee’s receipt of any Severance Pay or any other benefits pursuant to this Agreement shall be subject to, and contingent upon,
the Employee’s furnishing to the Company a Release and Waiver of Claims in the form attached hereto as Exhibit A (the “Release”) within the applicable time period set forth therein, but in no event later than
forty-five days following termination of employment, and permitting such Release to become effective in accordance with its terms (such date, the “Release Effective Date”). 
  

	 	7.	Amount of Severance Pay. 

 During the Continuation
Period, the Company shall pay the Employee Severance Pay at an annual rate equal to the sum of: 
 (a) The Employee’s base
compensation at the annual rate in effect on the date 30 days prior to the date when the termination of his employment with the Company is effective; plus 
 (b) The arithmetic mean of the Employee’s annual bonuses for the last three calendar years completed prior to the date when the termination of his employment with the Company is effective. In the event
that the Employee received no bonus from the Company for one or more of such calendar years, the years in which no bonus was paid shall be disregarded and the arithmetic mean of the Employee’s bonuses for the remaining years (if any) shall be
used. 
 Such amount, as determined in accordance with Sections 7(a) and 7(b), shall be paid at periodic intervals in accordance with the
Company’s standard payroll procedures. 
  

	 	8.	Other Benefits. 

 (a) Stock Options and
Restricted Stock. 
 (i) Immediately upon the occurrence of the event described in Section 6(a), there shall vest
immediately such number of unvested stock options and shares of restricted stock granted to Employee by the Company that would have vested in accordance with the applicable vesting schedule as if Employee’s had been employed for an additional
12 months as of the date of termination. 
 (ii) All unvested stock options and shares of restricted stock granted to Employee by the
Company shall vest immediately upon the occurrence of one of the events described in Section 6(b). 
  

 4. 

 In the case of the foregoing clause (ii) only, the post-termination exercise grace period under the Employee’s
stock options shall commence at the end of the Continuation Period. The Employee represents that he has consulted or will consult a tax adviser regarding the impact of this Subsection (a) on the tax treatment of Employee’s stock options
and shares of restricted stock. 
 (b) Group Insurance. At the commencement of the Continuation Period, the Employee (and,
where applicable, his dependents) shall be entitled to convert his key employee long-term disability policy and group life insurance policy into individual policies pursuant to the terms of such policies. Should the Employee elect to convert either
or both of such policies, the Company will pay the premiums for such policy or policies during the Continuation Period directly to the insurer in accordance with its standard billing practices. At the commencement of the Continuation Period, the
Employee shall be eligible to continue his group health continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1986, and the Company will pay the premiums for such coverage during the Continuation Period. The foregoing
notwithstanding, in the event that the Employee becomes eligible for comparable group insurance coverage in connection with new employment, the premium payments by the Company under this Subsection (b) shall terminate immediately. 

(c) Outplacement Services. If one of the events described in Section 6 has occurred, the Employee shall be entitled to reasonable
outplacement services at the Company’s expense. Such services shall be provided by a firm selected by the Employee from a list compiled by the Company and shall be limited to a period of six consecutive months. 
  

	 	9.	Limitation on Payments. 

 (a)
Reductions. If any payment or benefit Employee would receive in connection with a Change in Control from the Company or otherwise (a “Payment”) would (i) constitute a “parachute payment” within the
meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise
Tax”), then such Payment shall be equal to the Reduced Amount (as defined below). The “Reduced Amount” shall be either (x) the largest portion of the Payment that would result in no portion of the Payment
being subject to the Excise Tax or (y) the largest portion of the Payment, up to and including the total Payment, whichever amount, after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise
Tax (all computed at the highest applicable marginal rate), results in the Employee’s receipt, on an after-tax basis, of the greater amount of the Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax.
If a reduction in payments or benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount, reduction shall occur in the following order unless the Employee elects in writing a different order
(provided, however, that such election shall be subject to Company approval if made on or after the date on which the event that triggers the Payment occurs): reduction of cash payments; cancellation of accelerated vesting of stock awards;
reduction of employee benefits. If acceleration of vesting of stock award compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of the Employee’s stock awards unless the
Employee elects in writing a different order for cancellation. 
  

 5. 

 (b) Accounting Firm. The accounting firm engaged by the Company for general audit purposes
as of the day prior to the effective date of the Change in Control shall perform the foregoing calculations, subject to the necessary authorizations of the Audit Committee of the Company’s Board of Directors (the “Audit
Committee”). Alternatively, the Audit Committee may engage a consulting firm with expertise in calculations under Section 280G of the Code to perform such calculations. If any accounting firm so engaged by the Company is serving as
accountant or auditor for either the Employee or the entity or group that is effecting the Change in Control, the Company shall appoint a nationally recognized accounting or consulting firm to make the determinations required hereunder. The Company
shall bear all expenses with respect to the determinations by such accounting or consulting firm required to be made hereunder. 
 (c)
Determinations. The accounting or consulting firm engaged to make the determinations hereunder shall provide its calculations, together with detailed supporting documentation, to the Company and the Employee within ten (10) calendar days
after the date on which the Employee’s right to a Payment is triggered (if requested at that time by the Company or the Employee) or such other time as requested by the Company or the Employee. If the accounting or consulting firm determines
that no Excise Tax is payable with respect to a Payment, either before or after the application of the Reduced Amount, it shall furnish the Company and the Employee with an opinion reasonably acceptable to the Employee that no Excise Tax will be
imposed with respect to such Payment. Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon the Company and the Employee. 
  

	 	10.	Successors. 

 (a) Company’s
Successors. The Company shall require any successor (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets, by an
agreement in substance and form satisfactory to the Employee, to assume this Agreement and to agree expressly to perform this Agreement in the same manner and to the same extent as the Company would be required to perform it in the absence of a
succession. For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business and/or assets which executes and delivers the assumption agreement described in this Subsection (a) or
which becomes bound by this Agreement by operation of law. 
 (b) Employee’s Successors. This Agreement and all rights of
the Employee hereunder shall inure to the benefit of, and be enforceable by, the Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 
 11.    Application of Code Section 409A. Notwithstanding anything to the contrary set forth herein, any payments
and benefits provided under this Agreement (the “Severance Benefits”) that constitute “deferred compensation” within the meaning of Section 409A of the Code and the regulations and other guidance thereunder and
any state law of similar effect (collectively “Section 409A”) shall not commence in connection with Employee’s termination of employment unless and until Employee has also incurred a “separation from service”
(as such term is defined in Treasury Regulation Section 1.409A-1(h)) (the “Separation From Service”), 

  

 6. 

 
unless the Company reasonably determines that such amounts may be provided to Employee without causing Employee to incur the additional 20% tax under
Section 409A. 
 It is intended that each installment of the Severance Benefits payments provided for in this Agreement is a separate
“payment” for purposes of Treasury Regulation Section 1.409A-2(b)(2)(i). For the avoidance of doubt, it is intended that payments of the Severance Benefits set forth in this Agreement satisfy, to the greatest extent possible, the
exemptions from the application of Section 409A provided under Treasury Regulation Sections 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9). However, if the Company (or, if applicable, the successor entity thereto) determines that the
Severance Benefits constitute “deferred compensation” under Section 409A and Employee is, on the termination of Employee’s service, a “specified employee” of the Company or any successor entity thereto, as such term is
defined in Section 409A(a)(2)(B)(i) of the Code, then, solely to the extent necessary to avoid the incurrence of the adverse personal tax consequences under Section 409A, the timing of the Severance Benefit payments shall be delayed until
the earlier to occur of: (i) the date that is six months and one day after Employee’s Separation From Service or (ii) the date of Employee’s death (such applicable date, the “Specified Employee Initial Payment
Date”), the Company (or the successor entity thereto, as applicable) shall (A) pay to Employee a lump sum amount equal to the sum of the Severance Benefit payments that Employee would otherwise have received through the Specified
Employee Initial Payment Date if the commencement of the payment of the Severance Benefits had not been so delayed pursuant to this Section and (B) commence paying the balance of the Severance Benefits in accordance with the applicable payment
schedules set forth in this Agreement. 
 Except to the extent that payments may be delayed until the Specified Employee Initial Payment Date
pursuant to the preceding paragraph, on the first regular payroll pay day following the Release Effective Date, the Company will pay Employee the Severance Benefits Employee would otherwise have received under the Agreement on or prior to such date
but for the delay in payment related to the effectiveness of the Release, with the balance of the Severance Benefits being paid as originally scheduled. All amounts payable under the Agreement will be subject to standard payroll taxes and
deductions. 
  

	 	12.	Miscellaneous Provisions. 

 (a)
Notice. Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt
requested and postage prepaid. In the case of the Employee, mailed notices shall be addressed to him at the home address which he most recently communicated to the Company in writing. In the case of the Company, mailed notices shall be addressed to
its corporate headquarters, and all notices shall be directed to the attention of its Secretary. 
 (b) Waiver. No provision of
this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by the Employee and by an authorized officer of the Company (other than the Employee). No waiver by either party
of any breach of, or of compliance with, any condition or provision of this 

  

 7. 

 
Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time.

 (c) Whole Agreement. This Agreement (including the exhibits hereto) constitutes the full and entire understanding and
agreement between the parties with regard to the subject matter hereof, and supersede any and all prior agreements, representations or understandings (whether oral or written and whether express or implied) made or entered into by either party with
respect to the subject matter hereof, including without limitation the Prior Agreement. 
 (d) No Setoff; Withholding Taxes.
There shall be no right of setoff or counterclaim, with respect to any claim, debt or obligation against payments to the Employee under this Agreement. All payments made under this Agreement shall be subject to reduction to reflect taxes required to
be withheld by law. 
 (e) Choice of Law. The validity, interpretation, construction and performance of this Agreement shall be
governed by the laws of the State of California. 
 (f) Severability. The invalidity or unenforceability of any provision or
provisions of this Agreement shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect. 
 (g) No Assignment. The rights of any person to payments or benefits under this Agreement shall not be made subject to option or assignment, either by voluntary or involuntary assignment or by operation
of law, including (without limitation) bankruptcy, garnishment, attachment or other creditor’s process, and any action in violation of this Subsection (g) shall be void. 
 (h) At-Will Employment; No Employment Rights. Employee acknowledges and agrees that Employee’s employment with the Company is “at
will,” and subject to the provisions of this Agreement, may be terminated at any time and for any reason whatsoever by Employee or the Company, with or without Cause and with or without advance notice. This “at-will” employment
relationship cannot be changed except in a writing signed by the Company’s Chief Executive Officer. 
 [REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK] 
  

 8. 

 IN WITNESS WHEREOF, each of the parties has executed
this Agreement, in the case of the Company by its duly authorized officer, as of the Effective Date. 
  

	
	EMPLOYEE:
	
	/s/ Barry Gumbiner
	 Barry Gumbiner

  

			
	 COMPANY:
  
 METABASIS THERAPEUTICS, INC.

		
	By	 	/s/ Trisha Millican        

			
	Title	 	Principal Accounting Officer and Controller

  
 [SIGNATURE PAGE TO SEVERANCE AGREEMENT] 

 EXHIBIT A 
 RELEASE AND WAIVER OF CLAIMS 
 (TO BE SIGNED FOLLOWING TERMINATION OF EMPLOYMENT) 
 In consideration of the payments and other benefits set forth in the Amended and Restated Severance Agreement dated
February     , 2009 (the “Agreement”) to which this form is attached, I, Barry Gumbiner hereby furnish METABASIS THERAPEUTICS, INC. and any and all
affiliated, subsidiary, related, or successor corporations (collectively, the “Company”), with the following release and waiver (“Release and Waiver”). 
 In exchange for the consideration provided to me by the Agreement that I am not otherwise entitled to receive, I hereby generally and completely release
and forever discharge the Company and its directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, affiliates, and assigns from any and all claims, liabilities,
demands, causes of action, costs, expenses, attorneys’ fees, damages, indemnities and obligations of every kind and nature, in law, equity or otherwise, both known and unknown, suspected and unsuspected, disclosed and undisclosed, that arise
out of or are in any way related to events, acts, conduct, or omissions occurring prior to my signing this Release and Waiver. This general release includes, but is not limited to: (1) all claims arising out of or in any way related to my
employment with the Company or the termination of that employment; (2) all claims related to my compensation or benefits from the Company, including, but not limited to, salary, bonuses, commissions, vacation pay, expense reimbursements,
severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company, other than as provided in the Agreement (and provided further that nothing in this general release shall affect (a) my right to receive a
payout of my accrued but unused vacation and/or paid time off as of my termination date or (b) my rights under any stock options or other stock awards granted, or under any written commitments regarding future grants of stock options or other
stock awards approved, by the Company’s Board of Directors or the Compensation Committee thereof prior to my termination date); (3) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith
and fair dealing; (4) all tort claims, including, but not limited to, claims for fraud, emotional distress, and discharge in violation of public policy, related to my employment with the Company or the termination of that employment; and
(5) all federal, state, and local statutory claims related to my employment with the Company or the termination of that employment, including, but not limited to, claims for discrimination, harassment, retaliation, attorneys’ fees, or
other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), and the
California Fair Employment and Housing Act (as amended). 
 I also acknowledge that I have read and understand Section 1542 of the
California Civil Code which reads as follows: “A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially
affected his settlement with the debtor.” I hereby expressly waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to any claims I may have against the Company.

  

 2. 

 I acknowledge and agree that, among other rights, I am waiving and releasing any rights I may have under
ADEA, that this Release and Waiver is knowing and voluntary, and that the consideration given for this Release and Waiver is in addition to anything of value to which I was already entitled as an executive of the Company. If I am 40 years of age or
older upon execution of this Release and Waiver, I further acknowledge that I have been advised, as required by the Older Workers Benefit Protection Act, that: (a) the release and waiver granted herein does not relate to claims under the ADEA
which may arise after this Release and Waiver is executed; (b) I should consult with an attorney prior to executing this Release and Waiver; (c) I have twenty-one (21) days in which to consider this Release and Waiver (although I may
choose voluntarily to execute this Release and Waiver earlier); (d) I have seven (7) days following the execution of this Release and Waiver to revoke my consent to this Release and Waiver; and (e) this Release and Waiver shall not be
effective until the eighth day after I execute this Release and Waiver and the revocation period has expired. 
 I acknowledge my continuing
obligations under my Employee Proprietary Information and Inventions Agreement with the Company (the “PIIA”) . 
 This Release and Waiver, along with the PIIA, constitutes the complete, final and exclusive embodiment of the entire agreement between the Company and me with regard to the subject matter hereof. I am not relying on any promise or
representation by the Company that is not expressly stated herein. This Release and Waiver may only be modified by a writing signed by both me and the Chief Executive Officer of the Company. 
  

			
	 Date:
                                         
                       
	 	By:
                                         
                                         
  
		
		 	Print Name:
                                         
                             

  

 3.Amendment to Lease - Bohannon Trusts Partnership II

 Exhibit 10.10 
 AMENDMENT TO LEASE 
 THIS AMENDMENT TO LEASE
is made this 9th day of February 2007, between BOHANNON TRUSTS PARTNERSHIP II, a California partnership, herein referred to as “Landlord”,
and KANA SOFTWARE, INC., a Delaware corporation, herein referred to as “Tenant”. 
 WITNESSETH: 
 WHEREAS, Landlord and Tenant’s predecessor in interest, Broadbase Information Systems, Inc., entered into a Lease entitled “Business Park
Lease” dated December 23, 1999, for certain demised premises located at 181-185 Constitution Drive, Menlo Park, California, as more particularly described in said Lease, and 
 WHEREAS, Tenant acquired its interest in the Lease and the Lease was amended by Assignment and Amendment of Lease dated November 1, 2002 (the Lease,
as previously amended and assigned, is herein referred to as the “Lease”), and 
 WHEREAS, the Lease is scheduled to expire on
April 30, 2007, and 
 WHEREAS, Landlord and Tenant desire to make certain amendments to the Lease and extend the demised term of the
Lease, all as more particularly set out hereinbelow. 
 NOW, THEREFORE, in consideration of the covenants and conditions contained herein,
Landlord and Tenant agree to amend the Lease as follows: 
 1. The demised term of the Lease is extended for a period of three (3) years
commencing May 1, 2007, to and including April 30, 2010 (the “Extended Term”), subject to Tenant’s right to extend the demised term described in paragraph 5 below and subject to Tenant’s right to terminate the Lease
described in paragraph 6 below. 
 2. Base rent payable by Tenant pursuant to Section 2.1(A) of the Lease shall be payable during
the Extended Term as follows: for the period from May 1, 2007, to and including April 30, 2008, the amount of Six Hundred Forty Four Thousand Eleven and 20/100 Dollars ($644,011.20) per annum, payable in twelve (12) equal monthly
installments of Fifty Three Thousand Six Hundred Sixty Seven and 60/100 Dollars ($53,667.60); for the period from May 1, 2008, to and including April 30, 2009, the amount of Six Hundred Seventy Thousand Eight Hundred Forty Five Dollars
($670,845.00) per annum, payable in twelve (12) equal monthly installments of Fifty Five Thousand Nine Hundred Three and 75/100 Dollars ($55,903.75); and for the period from May 1, 2009, to and including April 30, 2010, the amount of
Six Hundred Ninety Seven Thousand Six Hundred Seventy Eight and 80/100 Dollars ($697,678.80) per annum, payable in twelve (12) equal monthly installments of Fifty Eight Thousand One Hundred Thirty Nine and 90/100 Dollars ($58,139.90).

 3. The current payments for additional rent shall continue to be adjusted during the Extended Term pursuant to the provisions of the
Lease. 
  

 - 1 - 

 4. As an inducement to Tenant to extend the demised term of the Lease, Landlord agrees to provide to
Tenant the amount of One Hundred Seventy Eight Thousand Eight Hundred Ninety Two Dollars ($178,892.00) (the “Inducement”), in installments as described below, to assist Tenant in the refurbishment of the demised premises, which
refurbishment shall be completed pursuant to plans approved in advance in writing by Landlord and may include upgrades to the bathrooms and may also include (but shall not be limited to) the following improvement work: (a) interior and exterior
painting, (b) provide upgraded finishes in selected conference rooms, (c) new carpet, and (d) a cement pad for a generator to be provided by Tenant (generator and supporting infrastructure all at Tenant’s expense) in the size and
location as determined by Landlord (with Tenant’s input which Landlord shall reasonably consider): 
 (a) the first thirty percent
(30%) of the Inducement will be payable when the following conditions have been satisfied: (i) this Amendment to Lease has been executed and delivered by the parties and the Lease remains in full force and effect; (ii) Tenant is not
in material default under the terms of the Lease, including without limitation Section 19.8 thereof; (iii) Tenant has provided Landlord with lien releases from all contractor(s) who have done work on the demised premises to date,
and no liens have been filed; and (iv) Tenant has completed at least thirty percent (30%) of Tenant’s work described hereinabove in accordance with the Landlord-approved plans and specifications therefor. Such payment will be made
within ten (10) days of Tenant’s written request therefor. 
 (b) the second thirty percent (30%) of the Inducement will be
payable when the following conditions have been satisfied: (i) Tenant has satisfied, and continues to satisfy, the conditions contained in subparagraph 4(a) above; (ii) Tenant has provided Landlord with lien releases from all contractor(s)
who have done work on the demised premises to date, and no liens have been filed; and (iii) Tenant has completed at least sixty percent (60%) of Tenant’s work described hereinabove in accordance with the Landlord-approved plans and
specifications therefor. Such payment will be made within ten (10) days of Tenant’s written request therefor. 
 (c) the final
forty percent (40%) of the Inducement will be payable within thirty (30) days after all of the following conditions are satisfied: (i) Tenant has satisfied, and continues to satisfy, the conditions contained in subparagraphs 4(a) and
(b) above; (ii) Tenant has completed Tenant’s work described hereinabove in accordance with the Landlord-approved plans and specifications therefor; (iii) Tenant has, within ten days after Tenant’s work is completed,
recorded a Notice of Completion in the San Mateo County Recorder’s Office and has provided Landlord with a copy thereof; (iv) Tenant is in occupancy of the demised premises and is conducting its business therein; (v) Tenant has
provided Landlord with appropriate documentation to substantiate the cost of Tenant’s work, including without limitation copies of Tenant’s checks and the invoices and unconditional lien releases from Tenant’s contractor(s); and
(vi) Tenant has provided Landlord with a written request therefor. 
 The parties acknowledge and agree that Tenant may begin to perform
its refurbishment work upon execution and delivery of this Amendment to Lease by both parties. 
  

 - 2 - 

 5. Provided Tenant is not, at the time of giving the notice described below or at any time thereafter
until commencement of the option term, in default under any of the terms, conditions and covenants of the Lease, as amended herein, and further provided that Tenant has not exercised its right to terminate the Lease pursuant to the provisions of
paragraph 6 herein, and subject to the terms and conditions set forth herein, Tenant shall be granted the option to extend the term of the Lease for one additional period of three (3) years (the “option term”) under the following
conditions: 
 (a) Tenant shall notify Landlord in writing of Tenant’s exercise of the option to extend the demised term of the Lease
not less than six (6), nor more than nine (9), full calendar months prior to the expiration of the Extended Term herein; 
 (b) The option
term will commence on the day after the expiration of the Extended Term and shall terminate three (3) years later; 
 (c) There shall be
no further option to extend or right of Tenant to terminate the Lease during the option term, there shall be no Landlord Inducement, and Landlord shall not be required to perform any improvements in the demised premises or the building prior to or
during the option term (unless otherwise agreed to by both parties in writing); 
 (d) The option to extend can be exercised only by Kana
Software, Inc. for its sole use of the demised premises and may not be transferred or assigned to any sublessee, assignee or other party, nor may this option be exercised by Kana Software, Inc. for the use of the demised premises by any sublessee,
assignee or party other than Kana Software, Inc., except that Kana Software, Inc. may exercise the option to extend so long as Kana Software, Inc. is, at the time of exercise of the option and continuing until the first day of the option term,
occupying at least sixty five percent (65%) of the demised premises (i.e., at least 29,070 square feet in the building(s) located on the demised premises); 
 (e) The then current payments for additional rent shall continue to be adjusted during the option term pursuant to the provisions of the Lease; 
 (f) The base rent for each year of the option term shall (subject to the provisions hereof) equal the Fair Market Rental Value (hereinafter defined).
“Fair Market Rental Value” shall mean the market rent, including annual increases (if any), being charged on the first day of the option term for similar space in buildings of comparable quality as the building in which the demised
premises is situate which are located in similar areas of the City of Menlo Park. In determining the Fair Market Rental Value comparable transactions shall be considered, including without limitation, length of lease term, landlord and tenant
inducements and rent increases, if and to the extent then a part of market conditions. The rent on comparable leases shall be adjusted to reflect the value or cost of such inducements since neither Landlord nor Tenant shall have any obligation to
pay or perform any such inducements (except for rent increases if applicable). For purposes of the determination of Fair Market Rental Value it shall be assumed the Landlord and Tenant are each ready, willing and able to enter into such a lease but
are under no compulsion to do so. 
  

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 Within twenty (20) calendar days after Tenant’s written notice of exercise, Tenant shall advise
Landlord of its estimate of the Fair Market Rental Value for the demised premises. Landlord, within twenty (20) calendar days thereafter, shall advise Tenant in writing of its estimate of the Fair Market Rental Value. During the next twenty
(20) calendar days the parties shall meet and confer for the purpose of agreeing upon Fair Market Rental Value. If the parties are then unable to agree, then the Fair Market Rental Value shall be determined by an appraisal as herein set forth
and the Fair Market Rental Value as so determined shall be binding upon Landlord and Tenant. Within ninety (90) calendar days after the Tenant’s notice of exercise, Landlord and Tenant shall each appoint an appraiser and notify the other
party in writing of its choice. Thereupon, the two appraisers so elected shall elect a third appraiser within thirty (30) calendar days of their appointment, unless during such period the two appraisers shall have agreed upon a Fair Market
Rental Value, or have reconciled their appraisals to within ten percent (10%) of each other in which event the average of the two appraisals will be the Fair Market Rental Value, in which case their determination shall be final and binding. If
the two appraisers shall be unable to agree upon a third appraiser, then the Landlord and Tenant shall immediately request the Presiding Judge of the San Mateo County Superior Court to make such selection. The three appraisers shall meet and confer
for a period not to exceed sixty (60) calendar days and the determination of Fair Market Rental Value by a majority of the three shall be final and binding. In the event that a majority cannot agree, then the third (neutral) appraiser shall
direct each of the party appraisers to review their appraisals for a period of seven (7) calendar days and return to a meeting of the three appraisers within five (5) calendar days thereafter with each respective party appraiser having
indicated their final appraisal of Fair Market Rental Value in a sealed envelope and signed by that appraiser. The third appraiser will do the same. The envelopes will be opened in the presence of the three appraisers and the Fair Market Rental
Value of the party appraiser which is closest to the Fair Market Rental Value of the third appraiser will be the final Fair Market Rental Value and binding on the parties. Each party shall bear the cost of the appraiser selected by it and the cost
of the third appraiser shall be shared equally (including all costs associated with an appointment by the Superior Court of San Mateo, if applicable, regardless of which party filed the application). To be appointed as an appraiser the person so
appointed shall hold the professional designation of MAI awarded by the American Institute of Real Estate Appraisers or such designation as may then be the preeminent professional designation, hold any licenses which may then be required by law, and
have at least five (5) years current experience appraising commercial/light industrial properties in San Mateo County. The third (neutral) appraiser shall not have had any personal, social or business relationship with either party or any of
its personnel during the preceding five (5) years. 
 Notwithstanding the foregoing to the contrary, in no event shall the base rent for
each year of the option term be reduced below the base rent payable by Tenant for the last year (or partial year) of the Extended Term. 
 6.
Tenant shall have the one (1) time option to terminate this Lease with a termination date between November 1, 2008, to and including April 30, 2009, by giving Landlord no less than six (6) months’ prior written notice
thereof, in which event the Lease shall terminate on the date within such time period as specified in Tenant’s written notice (the “effective date of termination”). In consideration of such early 

  

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termination, Tenant shall pay to Landlord, in addition to all other sums due and owing hereunder through the effective date of termination, the aggregate of
(i) an amount equal to the unamortized value of the Inducement paid by Landlord hereunder (i.e., $178,892.00) as of the effective date of termination, and (ii) an amount equal to the unamortized costs to restore the t-bar ceiling in the
existing areas of the demised premises described in Section 12.2 of the Lease (i.e., $355,649.00) as of the effective date of termination. The above amortizations shall be calculated on a straight-line basis over the three (3) year
Extended Term from the commencement of the Extended Term hereof, together with interest thereon at the rate of five percent (5%) per annum. Such payment (i.e., the total of (i) and (ii) above) shall be made by Tenant to Landlord with
Tenant’s written notice of termination, or said option to terminate shall be null and void and the Lease will remain in full force and effect. 
 7. As an additional inducement to Tenant to extend the demised term of the Lease, Landlord agrees, provided Tenant is not, and has not been, in material default under the Lease (including this Amendment) at the expiration or sooner
termination of the demised term, to waive the requirement of Tenant to perform the following work at the end of the demised term with regard to the restoration of the t-bar ceiling: reinstall the t-bar ceiling (including ceiling tiles), lighting
(including fixtures), skylight wells and electrical and HVAC distribution systems throughout the demised premises, and Tenant shall have no obligation to restore the demised premises at the expiration or sooner termination of the demised term,
except that Tenant shall continue to be obligated to (i) remove all Antennae from the Roof of the building(s) and repair and restore the Roof, all as defined and described in Section 1.2 of the Lease, (ii) remove the trade fixtures
and personal property of Tenant, and (iii) repair any damage in the demised premises caused by Tenant. 
 8. As used in this Amendment
to Lease, the term “material default” shall mean any default under the Lease as amended herein (i) requiring the payment of money, or (ii) under any other material term or condition, which default is not cured within applicable
notice and cure periods under the Lease. 
 9. It is understood and agreed that all other terms and conditions of the Lease shall be and
remain the same. If there is any conflict between the provisions of this Amendment to Lease and the provisions of the Lease, the provisions contained in this Amendment to Lease shall control. 
 10. This Amendment to Lease shall be construed under the laws of the State of California. If any provision of this Amendment to Lease, or portion
thereof, or the application thereof to any person or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Amendment to Lease shall not be affected thereby and each provision of this Amendment to Lease shall be valid
and enforceable to the fullest extent permitted by law. 
  

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 IN WITNESS WHEREOF, the parties have executed this Amendment to Lease as of the date first hereinabove
written. 
  

									
	 TENANT:
 KANA SOFTWARE, INC.,
 a Delaware corporation
	 		 	 LANDLORD:
 BOHANNON TRUSTS PARTNERSHIP II,

 a California partnership

					
	By:	 	 /s/    Michael S. Fields
	 		 	By:	 	 /s/    Robert L. Webster

		 	CEO	 		 		 	 Robert L. Webster
 Managing
Partner

					
	By:	 	 /s/    John M. Thompson
	 		 		 	
		 	CFO	 		 		 	

  

 - 6 -

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