LOAN AND SECURITY AGREEMENT
This LOAN AND SECURITY AGREEMENT (this "Agreement") between SILICON VALLEY BANK, a
California chartered bank, with its principal place of business at 3003 Tasman Drive, Santa Clara, California
95054 and with a loan production office located at One Newton Executive Park, Suite 200, 2221 Washington
Street, Newton, Massachusetts 02462, doing business under the name "Silicon Valley East" ("Bank") and
SONUS NETWORKS, INC., a Delaware corporation with its chief executive office located at 5 Carlisle Road,
Westford, Massachusetts 01886 ("Borrower"), provides the terms on which Bank shall lend to Borrower and
Borrower shall repay Bank. 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. The term "financial statements" includes the notes and schedules,
if any. The terms "including" and "includes" always mean "including (or includes) without limitation," in this or any
Loan Document. Capitalized terms in this Agreement shall have the meanings set forth in Section 13.
2 LOAN AND TERMS OF PAYMENT
2.1 PROMISE TO PAY. Borrower hereby unconditionally promises to pay Bank the unpaid principal amount of
all Credit Extensions and interest on the unpaid principal amount of the Credit Extensions as and when due in
accordance with this Agreement.
2.1.1 Revolving Advances.
(a) Bank shall make Advances not exceeding (i) the lesser of Committed Revolving Line or, if Borrower's
Tangible Net Worth at any time falls below the TNW Threshold, the Borrowing Base, MINUS (ii) the amount of
all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit), MINUS (iii) the FX
Reserve, AND MINUS (iv) the aggregate outstanding Advances hereunder (including any Cash Management
Services). Amounts borrowed under this Section may be repaid and reborrowed during the term of this
(b) To obtain an Adva