Common use of Reporting Covenant Clause in Contracts

Reporting Covenant. Required Complies ------------------ -------- -------- Quarterly financial statements Quarterly within 45 days Yes No Annual (CPA Audited) FYE within 90 days Yes No A/R Agings Monthly within 30 days Yes No (if Outstandings under LOC) Financial Covenant Required Actual Complies ------------------ -------- ------ -------- Maintain on a Quarterly Basis: Minimum Quick Ratio 1.0:1.0 :1.0 Yes No ----- Minimum Tangible Net Worth 12/31/98 $40,000,000 $ Yes No --------- 3/31/99* $ $ Yes No ----------- --------- 6/30/99* $ $ Yes No ----------- --------- 9/30/99* $ $ Yes No ----------- --------- 12/31/99* $ $ Yes No ----------- --------- 3/31/00* $ $ Yes No ----------- --------- *(Steps Up Quarterly by 80% Net Income)* Profitability: Quarterly Max. 1 loss not to exceed 8mm $ Yes No --------- Annually $1 $ Yes No --------- ==================================== BANK USE ONLY RECEIVED BY: -------------------- DATE: ---------------- REVIEWED BY: -------------------- COMPLIANCE STATUS: YES / NO ==================================== -40- 40 Comments Regarding Exceptions: Sincerely, Date: ------------------------ ------------ SIGNATURE ------------------------ TITLE -41- 41 SCHEDULE 7.5 PERMITTED ENCUMBRANCES EXISTING WAREHOUSE LIENS, OR WAREHOUSE LIENS THAT MAY BE CREATED IN THE FUTURE, THAT ARE JUNIOR AND SUBORDINATE TO ANY LIENS CREATED IN FAVOR OF BANK. NOTWITHSTANDING THE FOREGOING, SUCH LIENS MAY PERMIT A STORAGE FACILITY TO SELL ASSETS TO THE EXTENT NECESSARY TO SATISFY OUTSTANDING OVERDUE STORAGE CHARGES.

Reporting Covenant. Required Complies ------------------ -------- -------- Quarterly Monthly financial statements Quarterly Monthly within 45 30 days Yes No Annual (CPA Audited) FYE 10K and 10Q 10 days of SEC filing date Yes No A/R & A/P Agings, Borrowing Base Cert. Monthly within 90 25 days Yes No A/R Agings Monthly within 30 days Audit Initial and Semi-Annual Yes No (if Outstandings under LOC) Financial Covenant Required Actual Complies ------------------ -------- ------ -------- Maintain on a Quarterly Basis: Minimum Quick Ratio 1.0:1.0 1.25:1.00 _____:1.0 1.00 Yes No ----- Minimum Tangible Net Worth 12/31/98 * $40,000,000 $ ________ Yes No --------- 3/31/99* $ $ Yes No ----------- --------- 6/30/99* $ $ Yes No ----------- --------- 9/30/99* $ $ Yes No ----------- --------- 12/31/99* $ $ Yes No ----------- --------- 3/31/00* $ $ Yes No ----------- --------- *Borrower shall maintain, as of the last day of each fiscal quarter, a Tangible Net Worth of not less than: (Steps Up Quarterly by 80% i) $42,000,000 for the fiscal quarter ending Xxxxx 00, 0000, (xx) $27,000,000 for the fiscal quarter ending June 30, 2001, (iii) $15,000,000 for the fiscal quarter ending September 30, 2001, and (iv) $12,000,000 for the fiscal quarter ending December 31, 2001. Thereafter, Borrower shall maintain, as of the last day of each fiscal quarter, a Tangible Net Income)* Profitability: Quarterly MaxWorth of not less than $12,000,000. 1 loss not to exceed 8mm $ Yes No --------- Annually $1 $ Yes No --------- ==================================== BANK USE ONLY RECEIVED BY: -------------------- DATE: ---------------- REVIEWED BY: -------------------- COMPLIANCE STATUS: YES / NO ==================================== -40- 40 Comments Regarding Exceptions: See Attached. No Received by:____________________ Sincerely, AUTHORIZED SIGNER Date: ------------------------ ------------ :___________________________ _______________________________________ Verified:_______________________ SIGNATURE ------------------------ AUTHORIZED SIGNER _______________________________________ Date:___________________________ TITLE -41- 41 SCHEDULE 7.5 PERMITTED ENCUMBRANCES EXISTING WAREHOUSE LIENS, OR WAREHOUSE LIENS THAT MAY BE CREATED IN THE FUTURE, THAT ARE JUNIOR AND SUBORDINATE TO ANY LIENS CREATED IN FAVOR OF BANK. NOTWITHSTANDING THE FOREGOING, SUCH LIENS MAY PERMIT A STORAGE FACILITY TO SELL ASSETS TO THE EXTENT NECESSARY TO SATISFY OUTSTANDING OVERDUE STORAGE CHARGES.Compliance Status Yes _______________________________________ DATE

Reporting Covenant. Required Complies ------------------ --------- -------- -------- Quarterly Monthly financial statements Quarterly + CC Monthly within 45 30 days Yes No Annual (CPA Audited) FYE within 90 120 days Yes No 10-Q, 10-K and 8-K Within 5 days after filing with SEC Yes No A/R & A/P Agings Monthly within 30 days Yes No (if Outstandings under LOC) A/R Audit Initial and Annual Yes No Borrowing Base Certificate Monthly within 30 days Yes No Financial Covenant Required Actual Complies ------------------ -------- --------- ------ -------- Maintain on a Quarterly Monthly Basis: Minimum Quick Ratio 1.0:1.0 (Adjusted) 1.50:1.00 _____:1.0 1.00 Yes No ----- Minimum Tangible Net Worth 12/31/98 Profitability: Quarter ending 3/31/01 *$ 500,00** $40,000,000 $ _________ Yes No --------- 3/31/99Quarter ending 6/30/01 *$2,300,00** $ $ $_________ Yes No ----------- --------- 6/30/99Quarter ending 9/30/01 *$1,000,00** $ $ $_________ Yes No ----------- --------- 9/30/99* $ $ Quarter ending 12/31/02 $1 $_________ Yes No ----------- --------- 12/31/99* $ $ Have there been updates to Borrower's intellectual property, if appropriate? Yes / No ----------- --------- 3/31/00* $ $ Yes No ----------- --------- *(Steps Up Quarterly by 80% Net Income)* Profitability: Quarterly Max. 1 loss not to exceed 8mm $ Yes No --------- Annually $1 $ Yes No --------- ==================================== BANK USE ONLY RECEIVED BY: -------------------- DATE: ---------------- REVIEWED BY: -------------------- COMPLIANCE STATUS: YES / NO ==================================== -40- 40 __________________________________ Comments Regarding Exceptions: See Attached. BANK USE ONLY Received By:_____________________ AUTHORIZED SIGNER Sincerely, Date:____________________________ BRIO TECHNOLOGY, INC. Verified:________________________ AUTHORIZED SIGNER _______________________________ Signature Date:____________________________ _______________________________ Title _______________________________ Compliance Status: ------------------------ ------------ SIGNATURE ------------------------ TITLE -41- 41 SCHEDULE 7.5 PERMITTED ENCUMBRANCES EXISTING WAREHOUSE LIENSYes No Date _________________________________ * Less than ** Greater than CORPORATE BORROWING RESOLUTION Borrower: BRIO TECHNOLOGY, OR WAREHOUSE LIENS THAT MAY BE CREATED IN THE FUTUREINC. Bank: Silicon Valley Bank 0000 Xxxxx Xxxxxxx Xxxxxxx, THAT ARE JUNIOR AND SUBORDINATE TO ANY LIENS CREATED IN FAVOR OF BANK0000 Xxxxxx Xxxxx Xxxxx Xxxxx, XX 00000 Xxxxx Xxxxx, XX 00000-0000 I, the Secretary or Assistant Secretary of BRIO TECHNOLOGY, INC. NOTWITHSTANDING THE FOREGOING("Borrower"), SUCH LIENS MAY PERMIT A STORAGE FACILITY TO SELL ASSETS TO THE EXTENT NECESSARY TO SATISFY OUTSTANDING OVERDUE STORAGE CHARGESCERTIFY that Borrower is a corporation existing under the laws of the State of California. I certify that at a meeting of Borrower's Directors (or by other authorized corporate action) duly held the following resolutions were adopted. It is resolved that any one of the following officers of Borrower, whose name, title and signature is below: NAMES POSITIONS ACTUAL SIGNATURES ----- --------- ----------------- ________________________ _____________________ __________________________ ________________________ _____________________ __________________________ ________________________ _____________________ __________________________ ________________________ _____________________ __________________________ may act for Borrower and: Borrow Money. Borrow money from Silicon Valley Bank ("Bank").

Reporting Covenant. Required Complies ------------------ ----------------- -------- -------- Quarterly financial statements Quarterly within 45 days Yes No Annual (CPA Audited) FYE within 90 days Yes No A/R & A/P Agings Monthly Quarterly within 30 45 days Yes No (if Outstandings under LOC) A/R Audit Initial and Semi-Annual Yes No Financial Covenant Required Actual Complies ------------------ -------- ------ -------- Maintain on a Quarterly Basis: Minimum Quick Ratio 1.0:1.0 1.50:1.00 ____:1.0 1.00 Yes No ----- Minimum Tangible Net Worth 12/31/98 $40,000,000 $ 19,000,000 $________ Yes No --------- 3/31/99* $ $ Debt-Tangible Net Worth 1.00:1.00 ____:1.00 Yes No ----------- --------- 6/30/99Profitability/Loss $1.00* $ $ $________ Yes No ----------- --------- 9/30/99* $ $ Yes No ----------- --------- 12/31/99* $ $ Yes No ----------- --------- 3/31/00* $ $ Yes No ----------- --------- *(Steps Up Quarterly by 80% Net Income)* Profitability: Quarterly Max11/30/97 Loss <$7,500,000; 2/28.98 Loss <$2,000,000. 1 loss not to exceed 8mm $ Yes No --------- Annually $1 $ Yes No --------- ==================================== BANK USE ONLY RECEIVED BY: -------------------- DATE: ---------------- REVIEWED BY: -------------------- COMPLIANCE STATUS: YES / NO ==================================== -40- 40 -------------------------------------------------- Comments Regarding Exceptions: See Attached. BANK USE ONLY Sincerely, Received by: ---------------------------------- ------------------------------------------------------- AUTHORIZED SIGNATURE SIGNER ------------------------------------------------------- Date: ------------------------ ------------ SIGNATURE ------------------------ TITLE -41- 41 SCHEDULE 7.5 PERMITTED ENCUMBRANCES EXISTING WAREHOUSE LIENS, OR WAREHOUSE LIENS THAT MAY BE CREATED IN THE FUTURE, THAT ARE JUNIOR AND SUBORDINATE TO ANY LIENS CREATED IN FAVOR OF BANK. NOTWITHSTANDING THE FOREGOING, SUCH LIENS MAY PERMIT A STORAGE FACILITY TO SELL ASSETS TO THE EXTENT NECESSARY TO SATISFY OUTSTANDING OVERDUE STORAGE CHARGES.----------------------------------------- ------------------------------------------------------- Verified: DATE ------------------------------------- AUTHORIZED SIGNER Date: ----------------------------------------- Compliance Status: Yes No ----------------------------------------------

Reporting Covenant. Required Complies ------------------ -------- -------- Quarterly Monthly financial statements Quarterly Monthly within 45 30 days Yes No Annual (CPA Audited) FYE within 90 days Yes No A/R Agings Monthly within 30 days Yes No (if Outstandings under LOC) Financial Covenant Required Actual Complies ------------------ -------- ------ -------- Maintain on a Quarterly Monthly Basis: Minimum Quick Ratio 1.0:1.0 1.50:1.00 ____:1.0 1.00 Yes No ----- Minimum Liquidity 1.50:1.00* ____:1.00 Yes No Tangible Net Worth 12/31/98 $ 700,000 $40,000,000 $ _______ Yes No --------- 3/31/99* $ $ Yes No ----------- --------- 6/30/99* $ $ Yes No ----------- --------- 9/30/99* $ $ Yes No ----------- --------- 12/31/99* $ $ Yes No ----------- --------- 3/31/00* $ $ Yes No ----------- --------- *(Steps Up Quarterly by 80% Net Income)* Profitability: Quarterly MaxExcept for months of January, February and March 1997 for which the covenant shall not be tested. 1 loss not to exceed 8mm $ Yes No --------- Annually $1 $ Yes No --------- ==================================== BANK USE ONLY RECEIVED BY: -------------------- DATE: ---------------- REVIEWED BY: -------------------- COMPLIANCE STATUS: YES / NO ==================================== -40- 40 --------------------------------------------- Comments Regarding Exceptions: See Attached BANK USE ONLY Received by:__________________________ Sincerely, AUTHORIZED SIGNER _______________________________ Date:_________________________________ SIGNATURE Verified:_____________________________ _______________________________ AUTHORIZED SIGNER TITLE Date:_________________________________ _______________________________ DATE Compliance Status: ------------------------ ------------ SIGNATURE ------------------------ TITLE -41- 41 SCHEDULE 7.5 PERMITTED ENCUMBRANCES EXISTING WAREHOUSE LIENSYes No --------------------------------------------- EXHIBIT D NEGATIVE PLEDGE AGREEMENT This Negative Pledge Agreement is made as of December 10, OR WAREHOUSE LIENS THAT MAY BE CREATED IN THE FUTURE1996, THAT ARE JUNIOR AND SUBORDINATE TO ANY LIENS CREATED IN FAVOR OF BANKby and between CROSSROADS SOFTWARE, INC. NOTWITHSTANDING THE FOREGOING("Borrower") and SILICON VALLEY BANK ("Bank"). In connection with the Loan Documents being concurrently executed between Borrower and Bank, SUCH LIENS MAY PERMIT A STORAGE FACILITY TO SELL ASSETS TO THE EXTENT NECESSARY TO SATISFY OUTSTANDING OVERDUE STORAGE CHARGES.Borrower agrees as follows:

Reporting Covenant. Required Complies ------------------ -------- -------- Quarterly Monthly financial statements Quarterly Monthly within 45 30 days Yes No Annual (CPA Audited) FYE within 90 120 days Yes No Annual business plan/operating budget FYE within 30 days Yes No 10K and 10Q (as applicable) Yes No A/R and A/P Agings, Borrowing Base Certs. Monthly within 30 days Yes No A/R Agings Monthly Audit Initial and Semi-Annual Yes No IP Report Quarterly within 30 days Yes No (if Outstandings under LOC) Total amount of Borrower's cash and investments Amount: $_________ Yes No Total amount of Borrower's cash and investments Amount: $_________ Yes No with Bank Financial Covenant Required Actual Complies ------------------ -------- ------ -------- Maintain on a Quarterly Monthly Basis: Minimum Quick Ratio 1.0:1.0 1.25:1.00 _____:1.0 1.00 Yes No ----- Minimum Tangible Net Worth 12/31/98 EBITDA From 12/31/04 through 3/31/05 $40,000,000 $ 150,000 $________ Yes No --------- 3/31/99* $ $ From 4/30/05 through Revolving $300,000 $________ Yes No ----------- --------- 6/30/99* $ $ Maturity Date Maintain on a Daily Basis Minimum Cash at Bank $750,000 $________ Yes No ----------- --------- 9/30/99* $ $ Yes No ----------- --------- 12/31/99* $ $ Yes No ----------- --------- 3/31/00* $ $ Yes No ----------- --------- *(Steps Up Quarterly by 80% Net Income)* Profitability: Quarterly Max. 1 loss not to exceed 8mm $ Yes No --------- Annually $1 $ Yes No --------- ==================================== BANK USE ONLY RECEIVED BY: -------------------- DATE: ---------------- REVIEWED BY: -------------------- COMPLIANCE STATUS: YES / NO ==================================== -40- 40 Comments Regarding Exceptions: See Attached. BANK USE ONLY Sincerely, Received by:_____________________________ AUTHORIZED SIGNER __________________________________ Date: ------------------------ ------------ _________________________________ SIGNATURE ------------------------ _________________________________ Verified:________________________________ TITLE -41- 41 SCHEDULE 7.5 PERMITTED ENCUMBRANCES EXISTING WAREHOUSE LIENSAUTHORIZED SIGNED Date: _________________________________ _________________________________ DATE Compliance Status Yes No Corporation Resolutions and Incumbency Certification Authority to Procure Loans -------------------------------------------------------------------------------- I certify that I am the duly elected and qualified Secretary of TCI SOLUTIONS, OR WAREHOUSE LIENS THAT MAY BE CREATED IN THE FUTUREINC.; that the following is a true and correct copy of resolutions duly adopted by the Board of Directors of the Corporation in accordance with its bylaws and applicable statutes. Copy of Resolutions: Be it Resolved, THAT ARE JUNIOR AND SUBORDINATE TO ANY LIENS CREATED IN FAVOR OF BANK. NOTWITHSTANDING THE FOREGOING, SUCH LIENS MAY PERMIT A STORAGE FACILITY TO SELL ASSETS TO THE EXTENT NECESSARY TO SATISFY OUTSTANDING OVERDUE STORAGE CHARGES.That:

Reporting Covenant. Required Complies ------------------ -------- -------- Quarterly Monthly financial statements Quarterly + CC Monthly within 45 30 days Yes No Annual 10Q, 10K (CPA Audited) Quarterly/FYE (as applicable) within 90 days Yes No 120 days or within 5 days of issuance A/R & A/P Agings Monthly within 30 days Yes No (if Outstandings under LOC) Backlog and Booking Reports Monthly within 30 days Yes No Borrowing Base Certificate Monthly within 30 days Yes No Budgets, sales projections, operating plans, or other Promptly after Lender requests Yes No financial information as Lender may request Financial Covenant Required Actual Complies ------------------ -------- ------ -------- Maintain on a Quarterly BasisMaintain: Minimum Quick Ratio 1.0:1.0 (monthly) 0.70:1.00 _____:1.0 1.00 Yes No ----- Minimum Tangible Net Worth 12/31/98 (quarterly) $40,000,000 $ 5,000,000 $________ Yes No --------- 3/31/99* $ $ Have there been updates to Borrower's Intellectual Yes No ----------- --------- 6/30/99* $ $ Yes No ----------- --------- 9/30/99* $ $ Yes No ----------- --------- 12/31/99* $ $ Yes No ----------- --------- 3/31/00* $ $ Yes No ----------- --------- *(Steps Up Quarterly by 80% Net Income)* ProfitabilityProperty? Borrower only has deposit accounts located at the following institutions: Quarterly Max. 1 loss not to exceed 8mm $ Yes No --------- Annually $1 $ Yes No --------- ==================================== BANK USE ONLY RECEIVED BY: -------------------- DATE: ---------------- REVIEWED BY: -------------------- COMPLIANCE STATUS: YES / NO ==================================== -40- 40 Comments Regarding Exceptions: See attached. Sincerely, California Micro Devices Corporation ________________________________________________ SIGNATURE ________________________________________________ TITLE ________________________________________________ DATE BANK USE ONLY Rec'd By:______________________________________ Authorized Signer Date:__________________________________________ Verified:______________________________________ Authorized Signer Date:__________________________________________ Compliance Status: ------------------------ ------------ SIGNATURE ------------------------ TITLE -41- 41 SCHEDULE 7.5 PERMITTED ENCUMBRANCES EXISTING WAREHOUSE LIENSYes No EXHIBIT E Collateral Control and Related Provisions on Event of Default Without limiting Bank's other rights and remedies, OR WAREHOUSE LIENS THAT MAY BE CREATED IN THE FUTUREif an Event of Default occurs and is continuing, THAT ARE JUNIOR AND SUBORDINATE TO ANY LIENS CREATED IN FAVOR OF BANK. NOTWITHSTANDING THE FOREGOING, SUCH LIENS MAY PERMIT A STORAGE FACILITY TO SELL ASSETS TO THE EXTENT NECESSARY TO SATISFY OUTSTANDING OVERDUE STORAGE CHARGES.the following provisions (the "Collateral Control Provisions") shall be effective immediately upon notice by Bank to the Borrower:

Reporting Covenant. Required Complies ------------------ -------- -------- Quarterly Monthly financial statements Quarterly within 45 days Yes No Annual (CPA Audited) FYE within 90 days Yes No A/R Agings Monthly within 30 days Yes No (if Outstandings under LOC) Annual CPA Audited FYE within 120 days Yes No Financial Covenant Required Actual Complies ------------------ -------- ------ -------- Maintain on a Quarterly Monthly Basis: Minimum Quick Ratio 1.0:1.0 :1.0 Yes No ----- Minimum Tangible Net Worth 12/31/98 $40,000,000 $ 3,000,000 $_________ Yes No --------- 3/31/99* $ $ Maximum Debt/Tangible Net Worth 1.50:1.00 _____:1.00 Yes No ----------- --------- 6/30/99---- Minimum Cash Coverage * $ $ $_________ Yes No ----------- --------- 9/30/99Maintain on a Quarterly Basis: Debt Service Coverage * $ $ $_________ Yes No ----------- --------- 12/31/99Profitability * $ $ $_________ Yes No ----------- --------- 3/31/00* $ $ Yes No ----------- --------- *(Steps Up Quarterly by 80% Net Income)* Profitability: Quarterly Max. 1 loss not to exceed 8mm $ Yes No --------- Annually $1 $ Yes No --------- ==================================== BANK USE ONLY RECEIVED BY: -------------------- DATE: ---------------- REVIEWED BY: -------------------- COMPLIANCE STATUS: YES / NO ==================================== -40- 40 See attached Schedule __________________________________ Comments Regarding Exceptions: See Attached. BANK USE ONLY Received by: ___________________ Sincerely, AUTHORIZED SIGNER /s/ Xxxxxx X. Xxxxxxx Date: ------------------------ ------------ __________________________ --------------------------------------- SIGNATURE ------------------------ Verified: ______________________ _______________________________________ AUTHORIZED SIGNER TITLE -41- 41 Date: __________________________ _______________________________________ DATE Compliance Status: Yes No __________________________________ SCHEDULE 7.5 PERMITTED ENCUMBRANCES EXISTING WAREHOUSE LIENS, OR WAREHOUSE LIENS THAT MAY BE CREATED IN THE FUTURE, THAT ARE JUNIOR AND SUBORDINATE TO ANY LIENS CREATED IN FAVOR OF BANK. NOTWITHSTANDING THE FOREGOING, SUCH LIENS MAY PERMIT A STORAGE FACILITY TO SELL ASSETS TO THE EXTENT NECESSARY TO SATISFY OUTSTANDING OVERDUE STORAGE CHARGES.D COMPLIANCE CERTIFICATE MINIMUM LIQUIDITY: DEBT SERVICE COVERAGE: ----------------------------------------

Reporting Covenant. Required Complies ------------------ -------- -------- Quarterly Monthly financial statements Quarterly + CC Monthly within 45 30 days Yes No Annual (CPA Audited) FYE within 90 120 days Yes No A/R & A/P Agings + BBC* Monthly within 30 120 days Yes No (if Outstandings under LOC) * when there are outstanding Advances or with the initial Advance Financial Covenant Required Actual Complies ------------------ -------- ------ -------- Maintain on a Quarterly Monthly Basis: Minimum Quick Ratio 1.0:1.0 1.25:1.00 _____:1.0 1.00 Yes No ----- Minimum Tangible Net Worth 12/31/98 + Sub. Debt $40,000,000 $ 3,500,000 $_________ Yes No --------- 3/31/99* $ $ Maximum Debt/Tangible Net Worth 1.00:1.00 _____:1.00 Yes No ----------- --------- 6/30/99* $ $ Yes No ----------- --------- 9/30/99* $ $ Yes No ----------- --------- 12/31/99* $ $ Yes No ----------- --------- 3/31/00* $ $ Yes No ----------- --------- *(Steps Up Quarterly by 80% Net Income)* Profitability: Quarterly Max. 1 loss $_________ Yes No Losses not to exceed 8mm $ exceed: $150,000 for the quarter ended March Yes No --------- Annually 31, 1998, $1 $ Yes No --------- ==================================== BANK USE ONLY RECEIVED BY: -------------------- DATE: ---------------- REVIEWED BY: -------------------- COMPLIANCE STATUS: YES / NO ==================================== -40- 40 150,000 for the quarter ending June 30, 1998, and $150,000 for the quarter ending September 30, 1998 --------------------------------- Comments Regarding Exceptions: See Attached. BANK USE ONLY Sincerely, Received by: ___________________ AUTHORIZED SIGNER NATUS MEDICAL INCORPORATED Date: ------------------------ ------------ SIGNATURE ------------------------ TITLE -41- 41 SCHEDULE 7.5 PERMITTED ENCUMBRANCES EXISTING WAREHOUSE LIENS, OR WAREHOUSE LIENS THAT MAY BE CREATED IN THE FUTURE, THAT ARE JUNIOR AND SUBORDINATE TO ANY LIENS CREATED IN FAVOR OF BANK. NOTWITHSTANDING THE FOREGOING, SUCH LIENS MAY PERMIT A STORAGE FACILITY TO SELL ASSETS TO THE EXTENT NECESSARY TO SATISFY OUTSTANDING OVERDUE STORAGE CHARGES.__________________________ _____________________________ Signature Verified: ______________________ AUTHORIZED SIGNER _____________________________ Title Date: __________________________

Reporting Covenant. Required Complies --------------------------------------- ------------------------------- ------------------ -------- -------- Quarterly Monthly financial statements Quarterly + CC Monthly within 45 days Yes No Annual (CPA Audited) FYE within 90 120 days Yes No A/R Agings & A/P Agings* Monthly within 30 20 days Yes No (A/R Audit Initial and Semi-Annual Yes No Borrowing Base Certificate* Monthly within 20 days Yes No *at such times as outstandings exist and prior to any disbursement if Outstandings under LOC) no outstandings exist Financial Covenant Required Actual Complies ------------------ -------- ------ -------- --------------------------------------- ----------------------- ------------- --------------- Maintain on a Quarterly Monthly Basis: Minimum Quick Ratio 1.0:1.0 1.50:1.00 ____:1.0 1.00 Yes No ----- Minimum Tangible Net Worth 12/31/98 New Work $40,000,000 $ 1,500,000 plus $_______ Yes No --------- 3/31/99* $ $ 50% of new equity Maximum Debt/Tangible New Worth 1.00:1.00 ____:1.00 Yes No ----------- --------- 6/30/99* $ $ Profitability: beginning 9/30/98 Quarterly $_______ Yes No ----------- --------- 9/30/99* $ $ and thereafter Losses not to exceed: $500,000 for the three (3) months ending Yes No ----------- --------- 12/31/99* $ $ 3/31/98; and $200,000 for the three (3) months ending 6/30/98 Comments Regarding Exceptions: See Attached ----------------------------------- | BANK USE ONLY | Sincerely, | ------------- | | | | Received By: | CLARENT CORPORATION | -------------------- | | Authorized Signature | | Date: | __________________________________ | ---------------------- | Signature | Verified | | -------------------- | | Authorized Signature | __________________________________ | Date: | Title | ----------------------- | | Compliance Status: Yes No ----------- --------- 3/31/00* $ $ Yes No ----------- --------- *(Steps Up Quarterly by 80% Net Income)* Profitability| ----------------------------------- __________________________________ Date SILICON VALLEY BANK PRO FORMA INVOICE FOR LOAN CHARGES BORROWER: Quarterly Max. 1 loss not to exceed 8mm $ Yes No --------- Annually CLARENT CORPORATION LOAN OFFICER: Xxxxx Xxxx DATE: May 22, 1998 Revolving Loan Fee $1 $ Yes No --------- ==========================12,000.00 Credit Report 35.00 UCC Search Fee 150.00 UCC Filing Fee 40.00 Intellectual Property Filing Fees 550.00 TOTAL FEE DUE $12,775.00 ------------- ========== BANK USE ONLY RECEIVED BY: -------------------- DATE: ---------------- REVIEWED BY: -------------------- COMPLIANCE STATUS: YES / NO ==================================== -40- 40 Comments Regarding Exceptions: Sincerely, Date: ------------------------ ------------ SIGNATURE ------------------------ TITLE -41- 41 SCHEDULE 7.5 PERMITTED ENCUMBRANCES EXISTING WAREHOUSE LIENS, OR WAREHOUSE LIENS THAT MAY BE CREATED IN THE FUTURE, THAT ARE JUNIOR AND SUBORDINATE TO ANY LIENS CREATED IN FAVOR OF BANK. NOTWITHSTANDING THE FOREGOING, SUCH LIENS MAY PERMIT A STORAGE FACILITY TO SELL ASSETS TO THE EXTENT NECESSARY TO SATISFY OUTSTANDING OVERDUE STORAGE CHARGES.Please indicate the method of payment:

Reporting Covenant. Required Complies ------------------ -------- -------- Quarterly financial statements Quarterly within 45 10-Q, 10-K and 8-K Within 5 days after filing with SEC Yes No Annual (CPA Audited) FYE within 90 days Yes No A/R Agings Monthly within 30 days Yes No (if Outstandings under LOC) Financial Covenant Required Actual Complies ------------------ -------- ------ -------- Cash and Unrestricted Marketable Securities $100,000,000 $_________ Yes No Maintain on a Quarterly Basis: Minimum Quick Ratio 1.0:1.0 :1.0 Net Debt to Annualized Quarterly Revenues Yes No ----- Minimum Tangible Net Worth 12/31/98 $40,000,000 $ through 3/31/00 4.00 : 1.00 _______:1.00 from 4/01/00 to 6/30/00 3.50 : 1.00 _______:1.00 after 6/30/00 2.50 : 1.00 _______:1.00 Revenues for trailing 12 mos. Yes No --------- 3/31/99* $ $ as of 3/31/00 $200,000,000 $__________ as of 6/30/00 $250,000,000 $__________ as of 9/30/00 and thereafter $300,000,000 $__________ EBITDA for trailing 12 mos. Yes No ----------- --------- 6/30/99* $ $ Yes No ----------- --------- 9/30/99* $ $ Yes No ----------- --------- 12/31/99* $ $ Yes No ----------- --------- 3/31/00* $ $ Yes No ----------- --------- *as of 3/31/00 (Steps Up Quarterly by 80% Net Income)* Profitability: Quarterly Max. 1 loss not to exceed 8mm $ Yes No --------- Annually $1 $ Yes No --------- ==================================== BANK USE ONLY RECEIVED BY: -------------------- DATE: ---------------- REVIEWED BY: -------------------- COMPLIANCE STATUS: YES / NO ==================================== -40- 40 34,000,000) $__________ as of 6/30/00 ($10,000,000) $__________ as of 9/30/00 and thereafter $22,000,000 $__________ NEW OFFICES -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- --------------------------------- Comments Regarding Exceptions: See Attached. BANK USE ONLY Sincerely, Received by: ____________________ AUTHORIZED SIGNER __________________________________ SIGNATURE Date:____________________________ __________________________________ Verified: _______________________ TITLE AUTHORIZED SIGNER __________________________________ Date: ------------------------ ------------ SIGNATURE ------------------------ TITLE -41- 41 SCHEDULE 7.5 PERMITTED ENCUMBRANCES EXISTING WAREHOUSE LIENS___________________________ DATE Compliance Status: Yes No --------------------------------- FIRST AMENDMENT --------------- TO -- AMENDED AND RESTATED -------------------- LOAN AND SECURITY AGREEMENT --------------------------- THIS FIRST AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (the "Amendment") is entered into as of April 28,2000, OR WAREHOUSE LIENS THAT MAY BE CREATED IN THE FUTUREby and among SILICON VALLY BANK as Agent and a Bank (the "Agent"), THAT ARE JUNIOR AND SUBORDINATE TO ANY LIENS CREATED IN FAVOR OF BANKEXODUS COMMUNICATIONS, INC., a Delaware corporation as borrower (the "Borrower"), and those certain financial institutions from time to time party to that certain Amended and Restated Loan and Security Agreement dated as of March 8, 2000 (the "Loan Agreement") as Banks (the "Banks"). NOTWITHSTANDING THE FOREGOINGUnless otherwise defined herein, SUCH LIENS MAY PERMIT A STORAGE FACILITY TO SELL ASSETS TO THE EXTENT NECESSARY TO SATISFY OUTSTANDING OVERDUE STORAGE CHARGES.each capitalized term used in this Agreement shall have the meaning accorded to it in the Loan Agreement. RECITALS --------