Exhibit 10.26

 

THIRD AMENDMENT TO LEASE

 

This Third Amendment to Lease (the “Third Amendment”), is made and entered into
this [12th] day of August, 2003 by and between Mission West Properties, L.P. II,
a Delaware limited partnership (“Lessor”) and Photon Dynamics, a California
Corporation (“Lessee”).

 

RECITALS

 

A. Lessee currently leases from Lessor approximately 52,000 square feet of space
located at 6325 San Ignacio Avenue, San Jose, California (the “Original
Premises”) pursuant to that certain lease dated August 6, 1996, First Amendment
To Lease dated February 5, 2001, and Second Amendment To Lease dated July 3,
2003 (the “Lease”).

 

B. Lessee’s space requirements have expanded and Lessee needs more space than is
contained in the Original Premises.

 

C. Lessor is the owner of a building located at 5970 Optical Court consisting of
approximately 109,800 square feet and Lessor will expand the existing second
deck of the building by approximately 18,720 square feet for a total of
approximately 128,520 square feet in San Jose, California (the “Expansion
Premises”).

 

D. Lessor desires to lease to Lessee, and Lessee desires to lease from Lessor,
the Expansion Premises on the terms set out below.

 

E. Lessor will construct certain improvements in the Expansion Premises. Lessor
has agreed that Lessee may continue to occupy the Original Premises for a sixty
day period after the Expansion Premises Commencement Date, as hereinafter
defined, in order that Lessee may make an orderly transition from the Original
Premises to the Expansion Premises.

 

F. Upon expiration of the sixty day period after the Expansion Premises
Commencement Date, the term for the Original Premises shall expire.

 

G. Lessee has elected and Lessor has agreed to amend the Lease to reflect the
agreements described above, subject to the terms and conditions set forth
herein.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are acknowledged, the parties hereto agree to amend the Lease as
follows:

 

  1. Second Amendment To Lease (the “Second Amendment”): Lessor and Lessee
hereby agree that the Second Amendment is hereby null and void, and has no
further force or effect.

 

  2. Premises:

 

  A. Original Premises. The “Original Premises” means the “Premises” as defined
in the Original Lease.

 

  B. Expansion Premises. The “Expansion Premises” means approximately 128,520
square feet (subject to final determination of the size of the to be expanded
existing second deck) at 5970 Optical Court, San Jose, California (the
“Expansion Premises”) as shown on Exhibit A, including the right to use 450
unreserved parking spaces as shown on Exhibit A.1.

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  C. Premises Definition. The Lease is hereby amended to provide that the term
“Premises” shall mean: (i) until the Expansion Premises Commencement Date, the
Original Premises; and (ii) beginning on the Expansion Premises Commencement
Date, both the Original Premises and the Expansion Premises; and (iii) beginning
on the 61st day following the Expansion Premises Commencement Date, the
Expansion Premises.

 

  3. Term: The Lease is hereby amended as follows:

 

  A. Original Premises Term. The term for the Original Premises shall expire on
the 60th day following the Expansion Premises Commencement Date.

 

  B. Expansion Premises Commencement Date. The Expansion Premises Term shall be
for eighty four (84) months unless extended pursuant to this Third Amendment
(the “Lease Term”), commencing on the Expansion Premises Commencement Date, as
hereinafter defined, and ending eighty four (84) months thereafter. The
“Expansion Premises Commencement Date” shall be the later of (i) January 1, 2004
or (ii) the date the Lessee’s and Lessor’s Improvements in the Expansion
Premises are Substantially Complete (as defined in section 1, of the Lease).

 

  4. Rent: Commencing on the Expansion Premises Commencement Date, the Rent is
hereby amended to provide that Rent for the Expansion Premises shall be paid by
Lessee in monthly installments as follows:

 

     Base Rent

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   Additional
Rent*

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   CAC**

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   Total Rent

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January 1, 2004 through December 31, 2004

   $ 106,672    $ 35,829    $ 39,396    $ 181,897

January 1, 2005 through December 31, 2005

   $ 113,098    $ 35,829    $ 40,578    $ 189,505

January 1, 2006 through December 31, 2006

   $ 119,524    $ 35,829    $ 41,795    $ 197,148

January 1, 2007 through December 31, 2007

   $ 125,950    $ 35,829    $ 43,049    $ 204,828

January 1, 2008 through December 31, 2008

   $ 132,376    $ 35,829    $ 44,340    $ 212,545

January 1, 2009 through December 31, 2009

   $ 138,802    $ 35,829    $ 45,670    $ 220,301

January 1, 2010 through December 31, 2010

   $ 145,228    $ 35,829    $ 47,040    $ 228,097

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* Additional Rent includes in excess of $3,009,601 in Rent due on the Original
Premises for 35 months (1/1/04-11/30/06) amortized over the new eighty four (84)
month Lease Term.

** Estimated Common Area Charges.

 

If the Expansion Premises Commencement Date occurs after January 1, 2004, then
all the dates described above shall be adjusted by adding to each date the
number of days after January 1, 2004 that Lessee’s obligation to pay Rent
hereunder actually commences.

 

  5. Security Deposit: Lessee shall increase the security deposit from Fifty
Four Thousand Eight Hundred Sixty Dollars ($54,860) to Two Hundred Twenty Eight
Thousand Ninety Seven Dollars ($228, 097) upon execution of this Third
Amendment.

 

  6. Commencement Date Memorandum: The reference to the Commencement Date
Memorandum in the Lease is hereby deleted.

 

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  7. Possession: Section 1. Possession, the last sentence of the first paragraph
of Section 1 is hereby deleted and the new sentence shall read as follows:

 

“It is the intention of the Lessee and Lessor that January 1, 2004, shall be the
Expansion Premises Commencement Date. Lessor shall grant Lessee early occupancy
at least fifteen (15) days before the Expansion Premises Commencement Date in
order for Lessee to commence its wiring and cabling work.”

 

The second paragraph of Section 1 is hereby amended by the addition of a new
item as follows:

 

“and (v) the issuance by the City of San Jose of a certificate of occupancy.”

 

  8. Lessee’s and Lessor’s Improvements: Section 2. Lessee’s Improvements in the
Lease is hereby deleted and shall read as follows:

 

Lessee’s Improvements: “Lessee’s Improvements” are defined as all improvements
not included in Lessor Improvements. Lessee shall be solely responsible for the
cost of the Lessee’s Improvements, subject to Lessor’s “not to exceed” cost
shown on Exhibit B. Lessor shall construct Lessee’s Improvements pursuant to
final construction plans and specifications that have been approved in writing
by Lessee. Within five (5) business days following the execution of this Third
Amendment, Lessor shall cause its architect to prepare and deliver to Lessee
proposed construction plans and specifications for the Lessee’s and Lessor’s
Improvements to be added after Lessee’s approval as Exhibit C. Within five (5)
business days following delivery to Lessee of the proposed construction plans,
Lessee shall approve the proposed construction plans or deliver to Lessor its
written proposal for changes that must be made to said plans to conform the
improvements to be constructed pursuant thereto, with respect to design,
materials, quality, layout, and the like, to improvements reasonably suitable
for Lessee’s intended purpose. If Lessee fails to approve or disapprove the
proposed construction plans within the allowed time period, the construction
plans proposed by Lessor shall be deemed to be approved by Lessee. If Lessee
disapproves the proposed construction plans in any respect, the parties shall
promptly meet and confer and negotiate in good faith to reach agreement on the
construction plans. If Lessee’s Improvements exceed budget, Lessor will
immediately notify Lessee as to amount of the overruns and the source of
overruns and Lessee can reduce the cost by deleting items, agree to pay the
overruns or ask Lessor to amortize the overruns or choose any combination of the
above or if Lessee’s Improvements exceed $5,000,000, by written notice to
Lessor, Lessee may terminate this Lease.

 

Lessor’s Improvements: Lessor at Lessor’s sole cost shall be responsible to
complete all of the required improvements as shown below “Lessor’s
Improvements”:

 

A, All improvements on 2nd floor and all improvements contained within the cross
hatched portion of first floor (as shown on Exhibit D) in a “turn key”
condition, ready for occupancy, less the carpet allowance in Exhibit B of
$141,250. The Lessor’s Improvements shall be substantially similar to the
improvements in Lessor’s building at 6331 San Ignatio, San Jose, California.

 

B. 65% of Main Electrical Switchgear.

 

C. Overhead sprinklers (not including drops) in area of Lessee Improvements

 

D. Exterior painting and landscaping.

 

E. Lessor to provide 4000 amps electrical power at the transformer.

 

F. Insulate roof structure.

 

All bids and quotes will be based on division of Lessee’s and Lessor’s
Improvements.

 

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Lessor shall be responsible for ensuring that the Lessee’s and Lessor”s
Improvements conform to the approved plans and specifications, and all
applicable statutes, rules, regulations, ordinances, and City of San Jose
Building Department. Lessee’s approval of the plans for the Lessee’s and
Lessor’s Improvements shall not relieve Lessor of its obligations under this
Lease nor make Lessee liable to Lessor or its contractors. Lessor shall be
responsible for paying for any improvements that are required by the City of San
Jose as a condition to approving plans for Lessee’s or Lessor’s Improvements to
comply with: (i) the Americans With Disabilities Act or (ii) any seismic
modifications not related to or as a result of Lessee’s Improvements.

 

Lessor has prepared and Lessee has approved a budget for the completion of
Lessee’s Improvements which is described on Exhibit B (“Lessee’s Improvements
Costs Analysis”), including all “hard” and “soft” costs, permits and a
management fee of 6% of the “hard” costs to Lessor. Lessor shall bid each major
line item on the Lessee’s Improvement Costs Analysis that exceed $100,000 (the
“Major Cost Line Item”) with at least three contractors acceptable to Lessee and
shall provide Lessee a list of proposed contractors for Lessee’s approval prior
to bidding. Prior to accepting a bid for a Major Cost Line Item, Lessor is
responsible to provide a written summary of each of the Major Cost Line Item
bids to Lessee. Within three (3) business days following the Lessor’s delivery
to Lessee of the written summary of each of the Major Cost Line Item bids,
Lessee shall approve the lowest bid to perform the work described in the bid. If
Lessee fails to approve the lowest bid within the allowed time period, the
lowest bid presented by the Lessor shall be deemed to be approved by Lessee.
Lessor shall deliver an invoice to Lessee by the fifteenth (15th) of each
calendar month for the cost of construction (including equipment purchases) for
Lessee’s Improvements and a pro rata portion of Lessor’s management fee. Lessee
will wire all funds due Lessor by no later than the twenty fourth (24th) day of
the calendar month for the Lessor’s progress billing from the fifteenth (15th)
of the same calendar month.

 

Change Orders: No change made to the approved construction plans for the
Lessee’s and Lessor’s Improvements and the Lessee’s Improvements cost statement
after the final approval by the parties thereof shall be effective, unless such
change is approved in writing by Lessor and Lessee, which approval shall not be
unreasonably withheld. In this regard, Lessor shall not be required to approve
any change that will structurally impair the Expansion Premises, or materially
and adversely effect the outside appearance of the Building, interfere with the
conduct of Lessee’s business, or materially detract from the inside appearance
of the Expansion Premises. Change orders shall be written and shall describe the
nature of the change and the reasonably determined increase or decrease in each
line item of the approved cost statement for the Lessee’s Improvements
occasioned by the change. If Lessee requests a change which will delay the
Substantial Completion of the Lessee’s or Lessor’s Improvements beyond the
Scheduled Completion Date, as hereinafter defined, the maximum amount of Lessee
Delay, as hereinafter defined, that can be attributed to the change shall also
be specified in the change order, including but not limited to, any Rent for any
Lessee Delays that effect the Expansion Premises Commencement Date.

 

Inability to Obtain Materials: If Lessor notifies Lessee that any fittings,
finishes or other materials specified by Lessee for the Lessee’s or Lessor’s
Improvements for the Expansion Premises cannot be obtained within ten (10) days
after placing an order therefore and Lessor reasonably determines that such
extended delivery time will prohibit Lessor from Substantially Completing the
Lessee’s Improvements by the Scheduled Completion Date, Lessor shall notify
Lessee of such fact, the expected delay in the Scheduled Completion Date, and
information that will permit Lessee to reasonably select an alternative fitting,
finish, or material, including, without limitation any expected delays in the
then Scheduled Completion Date associated with each alternative. Within three
(3) business days, Lessee shall either (i) execute a change order in accordance
with the foregoing requirements selecting an alternative presented by Lessor or
developed by Lessee and approved by Lessor, which approval shall not be
unreasonably withheld, or (ii) agree that any delay in the Substantial
Completion of the Lessee’s or Lessor’s Improvements as a consequence of the
inability to obtain the item will be a Lessee Delay.

 

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Lessor shall use its best efforts to cause the Expansion Premises Commencement
Date to occur not later than January 1, 2004 (the “Scheduled Completion Date”).
If the Expansion Premises Commencement Date has not occurred by the Scheduled
Completion Date, Lessee shall receive one day of Rent abatement for each day (up
to fifteen days) between the Scheduled Completion Date, and the Expansion
Premises Commencement Date. If the Expansion Premises Commencement Date has not
occurred by the fifteenth day following the Scheduled Completion Date, Lessee
shall receive two days of Rent abatement for each day after the fifteenth day
between the Scheduled Completion Date, and the Expansion Premises Commencement
Date. Lessor and Lessee agree that having an Expansion Premises Commencement
Date after the Scheduled Completion Date, will cause Lessee to incur costs not
contemplated by this Lease, the exact amount of which will be extremely
difficult to ascertain. Accordingly, the parties hereby agree that Lessee’s
right to the abatement of Rent specified herein represents a fair and reasonable
settlement for both parties and neither party shall have further liability to
the other for any damages. Notwithstanding anything to the contrary herein, all
dates stated herein shall be extended for the number of days Lessor is unable to
Substantially Complete the Lessee’s or Lessor’s Improvements as a result of
delays (i) due to failure of the City of San Jose to issue a building permit for
the deck in 30 days after submission of all required documents in final form and
payment of all fees, through no fault of Lessor or its contractors, (ii) due to
failure of the City of San Jose to issue a building permit for the Lessor’s
Improvements (except the deck) and the Lessee’s Improvements in 30 days after
submission of all required documents in final form and payment of all fees,
through no fault of Lessor or its contractors, (iii) due to acts of God, and
(iv) due to Lessee Delays. “Lessee Delays” means a delay in Substantial
Completion resulting from (a) Lessee’s failure (through no fault of Lessor or
its contractors or consultants) to meet Lessee’s deadlines for approval as
described in this Section 2, (b) delays due to change orders requested by
Lessee, but only to the extent that the amount of the delay is set forth in a
change order approved in writing by Lessee, (c) delays due to Lessee’s failure
(through no fault of Lessor or its contractors or consultants) to meet the
deadlines for approving any plans or change orders, and (d) delays because of
the inability to obtain any product, materials, design, color, fitting, or
finish pursuant to the provisions of Section 8 herein. Lessee shall have a
minimum of five (5) business days to approve or disapprove any preliminary
plans, change orders or any final plans. If Lessee does not disapprove any plans
or change orders within the time period set forth herein in writing, Lessor may
proceed on the basis that the plans or change orders are approved by Lessee. If
plans or change orders are disapproved, Lessee shall state the reason for
disapproval and Lessor and Lessee shall promptly meet and confer and act in good
faith to resolve any issues. To the extent that the Expansion Premises
Commencement Date is delayed beyond the Scheduled Completion Date, solely as a
result of a Lessee Delay, then Lessee shall be responsible to pay Rent for each
day of delay beyond the Scheduled Completion Date caused by such Lessee Delay.

 

During the first ninety (90) days following the Expansion Premises Commencement
Date, Lessor at Lessor’s sole cost and expense shall be responsible to repair or
replace any defects in Lessee’s or Lessor’s Improvements that are not caused by
Lessee’s negligence. Lessee is responsible to notify Lessor in writing
immediately upon the discovery of a defect in the Lessee’s or Lessor’s
Improvements. Lessor is responsible to commence repairs or to replace any defect
in the Lessee’s or Lessor’s Improvements immediately upon receipt of written
notification from Lessee during the first ninety (90) days following Expansion
Premises Commencement Date. Notwithstanding the foregoing, Lessor shall not be
responsible for any failure of equipment that is moved from the Original
Premises to the Expansion Premises. Lessor will assign to Lessee all
construction warranties with regard to the Expansion Premises.

 

Lessor agrees to improve the Expansion Premises as described on Exhibits B, C
and D by January 1, 2004, subject to receipt of an executed Third Amendment by
August 8, 2003.

 

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  9. Alterations and Additions: Section 4. Alterations and Additions the
following sentences shall be added to the end of the Section 4:

 

“Notwithstanding the foregoing, any non-structural alteration or addition to the
interior of the Expansion Premises with a total cost of less than $25,000 shall
not require the written approval of the Lessor. However, Lessee will be required
to notify Lessor in writing and be responsible to provide Lessor with all
drawings and permits required in connection with the non-structural alteration
or addition with a total cost less than $25,000.”

 

In section 4, add the following sentence after the fifth sentence:
“Notwithstanding any provision in this Lease, Lessee shall have no obligation to
remove at the end of the Term any Lessee Improvements for the Expansion Premises
described on Exhibit C or any Lessor Improvements.”

 

  10. Notices: Section 17. Notices in the Lease shall be amended as follows:

 

(a)    

  

to the Lessor at:

  

10050 Bandley Drive

         

Cupertino, CA 95014

         

Attention: Carl E. Berg

         

                   Raymond V. Marino

         

Fax No: 408-725-1626

(b)

  

to the Lessee at:        

  

5970 Optical Court (after January 1, 2004)

         

San Jose, CA 95138

         

Attention: Steve Chase, Facilities Manager

         

Fax No: (408)

 

  11. Assignment and Subletting: Section 20. Assignment and Subletting in the
Lease is hereby deleted and shall read as follows:

 

Assignment and Subletting: Lessee shall not assign this Lease, or any interest
therein, and shall not sublet the said Expansion Premises or any part thereof,
or any right or privilege appurtenant thereto, or cause any other person or
entity, to occupy or use the Expansion Premises, or any portion thereof, without
the advance written consent of Lessor, which consent shall not be unreasonably
withheld and shall be given or withheld within ten (10) days following Lessee’s
request for such consent and delivery of the items required by this Section to
be delivered to Lessor. Notwithstanding the above, Lessee may, without the
consent of Lessor and without application of any of the other rights granted to
the Lessor under this Section 20, assign this Lease or sublet all or any part of
the Expansion Premises to (A) a bona fide subsidiary or affiliate of Lessee
(provided the Lessee remains liable on the Lease as a surety or guarantor), (B)
an entity in which or with which Lessee merges (provided the net worth of the
resulting entity is not less than the net worth of the Lessee immediately prior
to such transaction), or (C) an entity which acquires all or substantially all
of the assets of Lessee located at the Expansion Premises (provided the Lessee
remains liable on the Lease as a surety or guarantor) (in any such case an
“Excepted Party”). Any such assignment or subletting requiring Lessor’s consent
made without Lessor’s consent shall be void, and shall, at the option of the
Lessor, terminate this Lease. This Lease shall not, nor shall any interest
herein, be assignable, as to the interest of Lessee, by operation of law,
without the written consent of Lessor, except to an Excepted Party. The sale of
Lessee’s capital stock through a public exchange shall not be deemed a
conveyance of this Lease, the Expansion Premises or any portion thereof or
interest therein.

 

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If Lessee desires to assign its rights under this Lease or to sublet all or any
part of the Expansion Premises to a party other than an Excepted Party for less
than the remaining term of the Lease, Lessee and Lessor shall split (50/50) the
Bonus Rent actually received by the Lessee in connection with such transaction.
As used herein “Bonus Rent” shall mean the consideration received by the Lessee
for the subleasing of the sublet premises or the assignment of this Lease, less
the amounts that remain payable by the Lessee under this Lease with respect to
the affected portions of the Expansion Premises, less reasonable broker and
attorney costs associated with the transaction, and less the cost that Lessee is
required to incur to perform its obligations under such sublease or assignment,
including without limitation, any improvement costs.

 

If Lessee desires to assign its rights under this Lease or to sublet all of the
Expansion Premises for the remainder of the Lease Term or for a period including
the last year of the Lease Term (other than to an Excepted Party), Lessee shall
first notify Lessor of the proposed terms and conditions of such assignment or
subletting. Lessor, at its sole option, shall have the right to terminate the
Lease and relieve Lessee of all Lease obligations occurring after the
termination of the Lease. Whether or not Lessor’s consent to a sublease or
assignment is required, in the event of any sublease or assignment, Lessee shall
be and shall remain primarily liable for the performance of all conditions,
covenants, and obligations of Lessee hereunder and, in the event of a default by
an assignee or sublessee, Lessor may proceed directly against the original
Lessee hereunder and/or any other predecessor of such assignee or sublessee
without the necessity of exhausting remedies against said assignee or sublessee.

 

  12. Expansion Right: Lessor shall grant Lessee a right of first refusal until
January 1, 2008, to lease the 5981 Optical Court building. Upon receiving
written notice from Lessor that Lessor plans to enter into a lease for all, or a
portion of the space in the building at 5981 Optical Court and of the proposed
lease terms , Lessee shall have five (5) days to deliver written acceptance of
Lessor’s offer. The term for any space leased by Lessee hereunder shall be
conterminous with the term of this Third Amendment, but not less than for a
period of 60 months. Lessee’s failure to deliver a written acceptance to Lessor
within five (5) days of receiving Lessor’s offer shall constitute a rejection of
Lessor’s offer.

 

  13. Furniture in Expansion Premises: Lessor shall provide Lessee with the use
of up to 175 8’x8’ pre-owned wired (electrical & CAT5 wiring, 2 lines each for
voice and 2 lines each for data) partition furniture (Herman Miller brand or
equivalent quality) (the “Partition Furniture”) in the Expansion Premises for a
fully installed cost not to exceed Two Hundred Thousand Dollars ($200,000) (the
“Lessor’s Partition Furniture Allowance”). The quality and appearance of the
Partition Furniture that Lessor offers shall be subject to the reasonable
approval of Lessee. If Lessee accepts Partition Furniture the total installed
cost of which exceeds the Lessor’s Partition Furniture Allowance, prior to
procuring the Partition Furniture, Lessor will deliver written notification to
Lessee of the cost of the Partition Furniture in excess of the Lessor’s
Partition Furniture Allowance (the “Lessor’s Partition Furniture Purchase
Notice”). Within five (5) days of receipt of Lessor’s Partition Furniture
Purchase Notice, Lessee is required to provide a written response to Lessor to
reduce the quantity of Partition Furniture in order to reduce the total cost to
the amount of the Lessor’s Partition Furniture Allowance, or Lessor will proceed
with the procurement and installation of the approved Partition Furniture.
Lessee shall be responsible for all costs of the approved Partition Furniture in
excess of the Lessor’s Partition Furniture Allowance, and upon Lessee delivering
a written request to Lessor at least thirty

 

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(30) days prior to the Expansion Premises Commencement Date, Lessor will
amortize the cost of the Partition Furniture in excess of the Lessor’s Partition
Furniture Allowance over the initial term of the Lease at zero interest cost.
Upon the Lease termination, Lessee shall leave the Partition Furniture in its
then condition “As Is” “Where Is” with clear title free of any liens or
encumbrances. Lessee may designate furniture other than 175 partitions (such as
for instance conference room furniture) to be acquired by Lessor so long as the
total cost to Lessor does not exceed Lessor’s Partition Furniture Allowance. At
Lessee’s option, Lessee may elect to locate the Partition Furniture in which
case Lessor shall acquire the Lessee located Partition Furniture provided Lessor
shall be obligated to pay not more than Lessor’s Partition Furniture Allowance
(with Lessee to pay any excess as described above).

 

  14. Earthquake Insurance: Section 31. Earthquake Insurance. The amount that
the Lessor could charge for earthquake insurance shall be increased from $20,800
per year to $51,408 per year.

 

  15. Transition of Occupancy from Original Premises to Expansion Premises:
Lessor will grant Lessee a two (2) month period from the Expansion Premises
Commencement Date to the 60th day thereafter to allow Lessee to continue to
occupy the Original Premises for Lessee’s transition to the Expansion Premises
(the “Transition Period”). During the Transition Period Lessee will not be
required to pay Base Rent or CAC for the Original Premises; provided Lessee will
pay all utility charges for the Original Premises. Lessee will be required to
deliver the Original Premises to the Lessor in accordance with the terms and
conditions of the Lease no later than the sixtieth (60th) day following the
Expansion Premises Commencement Date or be subject to the Holding Over
provisions of Section 25 of the Lease.

 

  16. Brokers: Section 34. Brokers in the Lease is hereby deleted and shall read
as follows:

 

Each party represents and warrants to the other party that it has not utilized
or contacted a real estate broker or finder with respect to this Third Amendment
other than Colliers International (“Colliers”) and each party agrees to
indemnify and hold each other harmless against any claim, cost, liability or
cause of action asserted by any broker or finder claiming through either party
other than Colliers. Lessor and Lessee agree that Lessor shall be responsible
for a commission owed to Colliers in accordance with Lessor’s commission
agreement with Colliers International dated June 13, 2003. In addition, Lessor
and Lessee agree that Lessor shall not be responsible for the payment of any
other consulting fees, finder’s fees or any other fees or commissions arising
out of the negotiation and execution of this Third Amendment. Lessor may adjust
commission based on June 13, 2003 agreement to reflect any changes in base rent
as a result of this Amendment.

 

  17. Option to Extend: Section 35. Option to Extend A. Option The first
sentence in the Lease is hereby deleted and shall read as follows:

 

“Lessor hereby grants to Lessee two (2) options to extend the Lease Term for
five (5) year periods, on the following terms and conditions:”

 

B. Extended Term Rent – Option Period: The first sentence in the Lease Section
35B is hereby deleted and shall read as follows:

 

“The monthly rent for the Building during the extended term shall equal
ninety-five percent (95%) of the fair market monthly rent for the Building as of
the commencement date of the extended term.”

 

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The fourth sentence in Section 35B, that reads “Annual base rent increases
during the extended term shall be three percent (3%) per year”, is hereby
deleted. The following is hereby added in its place: “Rent increases shall be at
then “market” as agreed by the parties, or as determined by appraisal.”

 

Add the following sentence to the end of B. Extended Term Rent – Option Period:

 

“Notwithstanding the foregoing, the Appraisers shall value the Building based on
it being a standard Research and Development (R&D) and a manufacturing building
(and without considering the increase, or decrease, in rental value resulting
from the installation of the Lessee’s Improvements or any other Lessee Additions
or Alterations installed during the Lease Term or any extensions thereof).
Appraiser may use the allocation of

 

the cost of Lessor’s and Lessee’s Improvements set forth herein in determining
what items should be included in rental value and shall not include in the
rental value that portion related to the cost of Lessee’s Improvement in
evaluating the Premises. The appraiser shall determine the rental value as
though the Lessee’s Improvements were absent from the Premises (without any
replacement).

 

  18. Lessee Option to Terminate:

 

  18.1 Lessee may terminate this Agreement on written notice to Lessor if Lessor
fails to obtains a building permit from the City of San Jose for the deck or
Lessor fails to obtain a building permit from the City of San Jose for the
Lessee Improvements and the Lessor Improvements on or before the 49th day
following the date both parties have signed this Third Amendment.

 

  18.2 Subject to the uncontrollable delay’s and Lessee Delay’s provisions set
forth in the first paragraph of Page 5 of this Amendment Lessee may terminate
this lease if Lessor is more than 30 days behind the completion schedule
attached as Exhibit E. Notwithstanding the above, this termination right will be
null and void if Lessor can based on reasonable evidence show that Lessor can
make up any delay in excess of 30 day prior to Adjusted Completion Date.
“Adjusted Completion Date” is February 1, 2004 plus allowance for uncontrollable
delay’s and Lessee Delay’s set forth herein. If Lessee and Lessor cannot agree
that it is reasonable that Lessor can meet the Adjusted Completion Date, an
independent contractor with substantial recent experience in building R&D
facilities will be hired to determine if the assumptions of Lessor on completion
date are reasonable. If contractor determines assumptions are reasonable, then
Lessor shall have until the Adjusted Completion Date to Substantially Complete
before Lessee would have an option to terminate the Lease.

 

  19. Ratification of Lease: Except as modified herein, the Lease is hereby
ratified, approved and confirmed upon all the terms, covenants, and conditions.

 

  20. Authority: Each party executing this Third Amendment represents and
warrants that he or she is duly authorized to execute and deliver this Third
Amendment. If executed on behalf of a corporation, that this Third Amendment is
executed in accordance with the by-laws of said corporation (or a partnership
that this Third Amendment is executed in accordance with the partnership
agreement of such partnership), that no other party’s approval or consent to
such execution and delivery is required, and that this Third Amendment is
binding upon said individual, corporation (or partnership) as the case may be in
accordance with its terms.

 

9

--------------------------------------------------------------------------------

IN WITNESS WHEREOF, the parties have executed this Third Amendment, by their
duly authorized signatories, as of the day first above written.

 

LESSOR:

 

LESSEE:

MISSION WEST PROPERTIES, L.P. II

 

PHOTON DYNAMICS, INC.

a Delaware limited partnership

   

By: Mission West Properties, Inc.

   

Its General Partner

   

By:

 

/s/ CARL E. BERG

--------------------------------------------------------------------------------

 

By:

 

/s/ Richard Okumoto

--------------------------------------------------------------------------------

Print Name:

 

Carl E. Berg

 

Print Name:

 

Richard Okumoto

Title:

 

Chief Executive Officer

 

Title:

 

Chief Financial Officer

Date:

 

August 13, 2003

 

Date:

 

August 12, 2003

 

10

--------------------------------------------------------------------------------

Lessee’s Improvements

  EXHIBIT B

Tenant: Photon Dynamics - 6331 San Ignacio

        Estimated Cost Analysis            Square Feet – 131320    

 

Item

--------------------------------------------------------------------------------

   Description

--------------------------------------------------------------------------------

   Units

--------------------------------------------------------------------------------

  

Type

--------------------------------------------------------------------------------

  

Unit

Cost

--------------------------------------------------------------------------------

   Estimated
Amount

--------------------------------------------------------------------------------

   Estimated
$/SF Of
Bldg Tot

--------------------------------------------------------------------------------

Engineering

                                   

AIA

        65660    sq ft      0.35    $ 22,981    $ 0.18

HVAC Engineering

        65660    sq ft      0.30    $ 19,698    $ 0.15

Electrical Engineering

        65660    sq ft      0.35    $ 22,981    $ 0.18

Structural Engineering

        32830    sq ft      0.15    $ 4,925    $ 0.04

Sprinkler Engineering

        30000    sq ft      0.05    $ 1,500    $ 0.01

Interior Design

             lump sum           $ —      $ —  

Plumbing Design (included in plumbing)

             lump sum           $ —      $ —  

Title 24

        2.00    lump sum      800.00    $ 1,600    $ 0.01                      
    

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                      total>>>>>    $ 73,685    $ 0.56                        
  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Invoiced to date

                                   

General Construction

                                   

General Conditions

        43773.33333    sq.ft..      0.30    $ 13,132    $ 0.10

Construction Utilities

        65660    sq.ft..      0.22    $ 14,445    $ 0.11

Clean Up

        65660    sq.ft..      0.40    $ 26,264    $ 0.20

Supervision

        2.00    lump sum      20,000.00    $ 40,000    $ 0.30

Final Janitorial

                                $ —  

Reproduction

             lump sum           $ 2,000    $ 0.02

Demolition (included in Drywall)

        1    lump sum                  $ —  

Construction Security

             sq.ft..      0.25    $ 0    $ —  

Construction Insurance

        131,320    sq.ft..    $ 10:$1,000    $ 25,000    $ 0.19                 
         

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                      total>>>>>    $ 120,841    $ 0.92                        
  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Invoiced to date

                                   

Permits & Fees

                                   

Plan Check & Permits

             sq.ft..           $ 0    $ —  

Interior Plan Check Fee

        131320    sq.ft..      0.13    $ 17,072    $ 0.13

Interior Building Permit

        131320    sq.ft..      0.83    $ 32,000    $ 0.24

Sewer Usage Fees

             sq.ft..      0.70    $ 0    $ —  

Health Dept. Permit

             sq.ft..           $ 0    $ —  

Fire Department Permit

             sq.ft..           $ 750    $ 0.01

Telephone Main Service

             lump sum           $ 0    $ —  

Utilities-PG&E Service

             lump sum           $ 0    $ —                             

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                      total>>>>>    $ 49,822    $ 0.38                        
  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Invoiced to date

                                   

Plumbing & Accessories

                                   

Plumbing

             lump sum           $ 474,875    $ 3.62

Concrete dowel and patch

             lump sum      0.00    $ 8,000    $ 0.06

Plumbing - extra cores

             extra units           $ 10,000    $ 0.08

Coffee Bars

             each      5,000.00    $ 0    $ —  

Toilet Parts/Accessories/RM

             sq ft      0.12    $ 0    $ —  

Mirrors/RM

             sq ft      0.10    $ 0    $ —  

Showers

             lump sum      5,235.00    $ 0    $ —                             

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                      total>>>>>    $ 492,875    $ 3.75                        
  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Invoiced to date

                                   

--------------------------------------------------------------------------------

Electrical

                               

Electrical - Allowance

           lump sum         $ 525,000    $ 4.00

Lighting align

           each    65.00    $ 0    $ —  

New lighting

      50000    sq ft    1.50    $ 75,000    $ 0.57

Separate Meters

           lump sum    10,000.00    $ 0    $ —  

T-Bar Lighting

           each    63.00    $ 0    $ —  

new A/C unit power

           lump sum    3,135.00    $ 0    $ —  

PG&E hook-up fee

           lump sum         $ 10,000    $ 0.08

Remove old switch gear

           lump sum         $ 5,000    $ 0.04

New switch gear & breakers

           lump sum         $ 92,403    $ 0.70                       

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                  total>>>>>    $ 707,403    $ 5.39                       

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Invoiced to date

                               

HVAC

  KVA x 3.14 /12,000 = Ton                            

HVAC

 

Tons =Sq Ft/300

      1.00    lump sum         $ 1,635,000    $ 12.45

HVAC-UPS/Humidifier

                     $ 0    $ —  

Exhaust fans. Hoods 3t,17T units for labs

           ea         $ 0    $ —  

HVAC - Warehouse Dump

           ton    1,700.00    $ 0    $ —  

HVAC 24 Hour

           ton    2,500.00    $ 0    $ —  

Structural Supports for HVAC

           sq.ft..    0.00    $ 20,000    $ 0.15

Add roof penetrations

                     $ 20,000    $ 0.15

Trash cleanup

                     $ 0    $ —                         

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                  total>>>>>    $ 1,675,000    $ 12.76                       

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Invoiced to date

                               

Drywall/Partitioning/Ceilings

                               

Drywall

           Lump sum    0.00    $ 95,500    $ 0.73

Doors

           Lump sum         $ 39,000    $ 0.30

Dividing Wall (>16 ft)

           Lump sum         $ 65,500    $ 0.50

Smooth Texture Wall

           sq.ft..    0.00    $ 0    $ —  

Acoustical Ceiling

           Lump sum         $ 97,000    $ 0.74

Acoustical Ceiling-Vinyl or 2 x 2

           sq.ft..    2.20    $ 0    $ —  

Skylight Frame and glass

                0.00    $ 0    $ —  

Corridor fire rating construction

           Lump sum         $ 11,000    $ 0.08                       

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                  total>>>>>    $ 308,000    $ 2.35                       

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Invoiced to date

                               

Flooring/Painting

                               

Carpeting & 4" Base (26 oz.)

     

15000

  

sq.ft..

  

2.75

  

$

41,250

  

$

0.31

Carpet tiles under partitions

     

25000

  

sq.ft..

  

4.00

  

$

100,000

  

$

0.76

Sheet Vinyl (see sheet vinyl in clean rm.)

          

sq.ft..

  

3.75

  

$

0

  

$

—  

Epoxy sealant

     

10000

  

sq.ft..

  

12.00

  

$

120,000

  

$

0.91

Sealed concrete

     

78319

  

sq.ft..

  

1.00

  

$

78,319

  

$

0.60

Stone (Interior & Exterior)

          

sq.ft..

  

10.00

  

$

0

  

$

—  

Painting/Wall Coverings

     

0.22

  

sq.ft..

       

$

35,000

  

$

0.27

                      

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

       

128319.22

       

total>>>>>

  

$

374,569

  

$

2.85

                      

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Invoiced to date

                               

Cafeteria/Lunch Room

                               

Cafeteria Hood and Related Duct

          

lump sum

       

$

0

  

$

—  

Cafeteria Hood Fire System

          

lump sum

       

$

0

  

$

—  

Cafeteria Tray Door

          

lump sum

       

$

0

  

$

—  

Cafeteria Extra Electrical

                    

$

0

  

$

—  

Cafeteria Plumbing

          

lump sum

       

$

0

  

$

—  

Concrete Replacement (lobby, cafeteria)

          

lump sum

       

$

0

  

$

—  

Structural Windows

          

each

       

$

0

  

$

—  

Patio & Fence

          

lump sum

       

$

0

  

$

—  

Landscape Extras

          

lump sum

       

$

0

  

$

—  

                      

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                 

total>>>>>

  

$

0

  

$

—  

                      

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Invoiced to date

                               

--------------------------------------------------------------------------------

Specialty

                                

Elevators

             each   58,000.00    $ 0    $ —  

Structural Steel -Elevator & Stairs

             each   32,400.00    $ 0    $ —  

Levelor Blinds

             sq.ft..   0.40    $ 0    $ —  

Millwork (Lunch Room, RM, & Coffee)

             lump sum        $ 0    $ —  

Paging System

             each        $ 0    $ —  

Expand electrical equipment pad

             20'x20'   8.00    $ 3,200    $ 0.02

Process equipment pad

             64'x64'   15.00    $ 61,440    $ 0.47

Extension of concrete pad at dock area

             24'x56'   8.00    $ 10,752    $ 0.08

8' concrete block fence for equipment pad-one 6' gate

             64'x8x4   18.00    $ 36,864    $ 0.28

Wharehouse rack dismantling

             each        $ 15,000    $ 0.11                        

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                   total>>>>>    $ 127,256    $ 0.97                        

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Invoiced to date

                                

Fire Protection & Related

                                

Fire Protection Rack

             lump sum        $ 0    $ —  

Fire Sprinklers

             lump sum        $ 3,000    $ 0.02

Fire Sprinklers U/G

             lump sum        $ 0    $ —  

Fire Sprinklers-Warehouse/racking dismantling

             lump sum        $ 3,000    $ 0.02

Recessed Sprinkler Heads

             lump sum        $ 0    $ —  

Central Fire Monitor

             lump sum        $ 0    $ —  

Fire Extinguishers

   1/3000sf or 75' apart    131320    sq ft   0.03    $ 3,940    $ 0.03

Smoke Detection - Lobby and Computer

             each        $ 0    $ —  

Pre-action Sprinkler Computer

             lump sum        $ 0    $ —  

FM-200

             lump sum        $ 0    $ —                          

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                   total>>>>>    $ 9,940    $ 0.08                        

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Invoiced to date

                                

Dockage/Shipping

                                

Shipping & Receiving Equipment

             lump sum        $ 0    $ —  

Dock Levelers

             each   8,300.00    $ 8,300    $ 0.06

Canopy @ Truck Door

                      $ 0    $ —  

Dock Bumpers

        4    each   500.00    $ 2,000    $ 0.02

Roll Up Door/Exits

                 8,500.00    $ 0    $ —  

Roll Up Door-Retrofit

        13        5,176.92    $ 67,300    $ 0.51

Chain Link Fence

             ln ft   12.00    $ 0    $ —  

Metal Dock Doors

                      $ 0    $ —                          

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                   total>>>>>    $ 77,600    $ 0.59                        

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Invoiced to date

                                

Exterior/Remodel Related

                                

Exit Doors

             each   5,000.00    $ 0    $ —  

Extra Glass & Glazing

                      $ 0    $ —  

Tree & stump removal for switch gear pad

        2    each   2,500.00    $ 5,000    $ 0.04                        

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                   total>>>>>    $ 5,000    $ 0.04                        

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Invoiced to date

                                

--------------------------------------------------------------------------------

Clean Room

                                 

Improvements C 10000 & 100000

                       $ 0    $ —  

AIA

             lump sum         $ 0    $ —  

Ceiling (included above in drywall)

   Sealed & Vinyl Rock         sq.ft..         $ 0    $ —  

Vinyl Tile

   Coved & Welded    3,000    sq.ft..    6.50    $ 19,500    $ 0.15

Epoxy on flooring (see flooring above)

                       $ 0       

Air Showers (waiting for pricing)

        2    each    2,500.00    $ 5,000    $ 0.04

Sewer Line

             lump sum         $ 0    $ —  

Concrete Replace

             lump sum         $ 0    $ —  

Piping (included in plumbing above)

             lump sum         $ 0    $ —  

Electrical

             lump sum         $ 0    $ —  

HVAC (included in HVAC above)

             lump sum         $ 0    $ —                           

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                    total>>>>>    $ 24,500    $ 0.19                         

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Invoiced to date

                                 

Contingency

        131,320    sq. ft.    1.90    $ 249,508    $ 1.90                      
  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

SUBTOTAL -

                       $ 4,295,998    $ 32.71

Management Fee @ 6%

                       $ 257,800    $ 1.96

Construction Interest & Points @1%

                       $ 42,960    $ 0.33                         

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

SUBTOTAL -

                       $ 300,760    $ 2.29                         

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

TOTAL -

                       $ 4,596,758    $ 35.00                         

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

1) Electrical provided to HVAC and distribution only, tenant equipment not
included.

2) The following are specifically not included in this estimate: Telephone,
data, security, cable trays, open office movable partitions, storage tank age,
process equipment and other specialty items not shown.

--------------------------------------------------------------------------------

LOGO [g47250g21q75.jpg]

--------------------------------------------------------------------------------

Exhibit D

 

LOGO [g47250g71h94.jpg]

--------------------------------------------------------------------------------

LOGO [g47250g96w82.jpg]

--------------------------------------------------------------------------------

Exhibit E

 

Photon Dynamics

 

Photon Dynamics TI Construction Schedule

--------------------------------------------------------------------------------

5970 Optical Court

                                                                               
   

Building 3A

                                                                               
                        *                                               **      
        ***

Description

  7-Aug   11-Aug   18-Aug   25-Aug   1-Sep   8-Sep   15-Sep   22-Sep   29-Sep  
6-Oct   13-Oct   20-Oct   27-Oct   3-Nov   10-Nov   17-Nov   24-Nov   1-Dec  
8-Dec   15-Dec   22-Dec

Submit Structural Modifications to City

  XX   XXXXX   XX                                                              
         

Start HVAC Bids

      XXX   XXXXX                                                              
         

Start Electrical Design

      XXXXX   XXXXX   XX                                                        
           

Bid Plumbing

      XXXXX   XXXXX                                                            
           

Start HVAC Design

              XXXXX   _XXXX                                                    
           

Bid Electrical

              XXX   _XXXX                                                      
         

Submit Improvement Plans to City

              XXXXX   _XXXX   XXXXX   XXXXX                                    
                   

2nd Deck

                  _XXXX   XXXXX   XXXXX                                        
               

Concrete 2nd Deck

                          XXXXX   XXXXX                                        
           

Draft Stop

                              XXXXX                                            
       

Roof Insulation

                      XXXXX   XXXXX                                            
           

Sprinklers

                      XX   XXXXX   XXXXX   XXXXX   XXXXX   XXXXX   XXXXX   XXXXX
  XXXXX   XXXXX   XXXXX   XXX__   XXXXX   XXXXX        

HVAC

                          XXXXX   XXXXX   XXXXX   XXXXX   XXXXX   XXXXX   XXXXX
  XXXXX   XXXXX   XXXXX   XXX__   XXXXX   XXXXX        

Electrical

                          XX   XXXXX   XXXXX   XXXXX   XXXXX   XXXXX   XXXXX  
XXXXX   XXXXX   XXXXX   XXX__   XXXXX   XXXXX        

Drywall

                                      XXXXX   XXXXX   XXXXX   XXXXX   XXXXX  
XXXXX   XXXXX   XXX__   XXXXX   XXXXX        

T-Bar Wire & Frames

                                              XXXXX   XXXXX   XXXXX   XXXXX    
                   

Counters & Millwork

                                                              XXX   XXX__  
XXXXX   XXXXX        

Ceramic Tile

                                                      XXXXX   XXXXX   XXXXX  
XXX__   XXXXX            

Painting

                                                          XXXXX   XXXXX   XXX__
  XXXXX   XXXXX        

Install Telephone, Network & Security (above ceiling)

                                                              XXXXX   XXX__  
XXXXX   XX        

Drop T-Bar

                                                              XX   XXX__   XXXXX
  XXXXX        

Toilet Partitions, Mirrors & Accessories

                                                          XXXXX   XXXXX   XXX__
               

Carpeting & Flooring

                                                              XXXXX   XXX__   XX
           

Specialty Items

                                                              XXXXX   XXX__    
           

Final Sub Inspections

                                                                             
XXXXX    

Final Inspections

                                                                              X
  XXX                                                                          
                                                                               
                 

* Sep 1 = Labor Day

                                                                               
   

** Nov 27-28 = Thanksgiving

                                                                               
   

*** Dec 25-26 = Christmas