Explanation: Box 1: 10.0.0.0/16 Address prefix destination-> Vnet 1 (Address space of Vnet1) Box 2: Virtual appliance Next hop type VM1 ->Virtual Appliance. You can specify IP address of VM 1 when configuring next hop as Virtual appliance. Box 3: Gateway Subnet Assigned to This route is to be followed by Gateway Subnet for the incoming traffic. You can associate routing table to the Subnet from Rout Table -> subnet ->Associate.