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Exhibit 10.1

LEASE EXTENSION AND MODIFICATION AGREEMENT
BY AND BETWEEN
SCIENTIFIC LEARNING CORPORATION (TENANT)
AND
ROTUNDA PARTNERS II, LLC (LANDLORD)

REFERENCE DATE: OCTOBER 1, 2012

Whereas, Landlord and Tenant previously entered into an Office Building Lease,
dated October 1, 2003, for Premises on the sixth floor known as Suite 600, 300
Frank H. Ogawa Plaza, Oakland, CA;

Whereas, Tenant has a security deposit of $850,000 on file with Landlord and
wishes to apply part of its security deposit towards its monthly rental
obligation;

Whereas, Tenant’s lease expires on December 31, 2013 and Tenant wishes to extend
the lease expiration for two (2) additional years commencing January 1, 2014
(Extension Term);

Whereas, Tenant wishes to decrease the size of its existing Premises from 30,484
to 14,200 gross rentable square feet located on 6th floor, on the Broadway/17th
Street side of the Rotunda Building and relinquish its remaining office leased
space (Exhibit A).

Now therefore, it is hereby agreed as follows:

1.
Extension:  Tenant extends its lease for an additional two (2) years from
1/1/2014 through 12/31/2015 for the approximately 14,200 gross rentable square
feet on the Broadway side of the building as identified in Exhibit A.

2.
Rental Rate:  The Rental Rate effective 1/1/2014 shall be $2.35 per square foot
per month ($33,370 per month).

3.
Operating Expenses/Annual Increases:  Tenant shall not be obligated to pay any
common area Operating Expenses during the Extension Term and there shall be no
Annual rent Increases during the Extension Term.

4.
Security Deposit:  Effective with the October 2012 rent obligation, Tenant may
apply $50,000 of its Security Deposit per month towards the rent over the
remaining fifteen (15) months of its original lease term; therefore, the
remaining Security Deposit on file with Landlord shall be $100,000 effective
January 1, 2013 for the Extension Term .

5.
Additional Rent Reduction:  Effective with the January 2013 rent, from January
1, 2013 through December 31, 2013, Tenant shall have a rent reduction of $10,000
per month totaling $120,000.

 

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300 Frank H. Ogawa Plaza, STE 340, Oakland, CA 94612 ● TEL: (510) 268-8500 ●
FAX: (510) 834-5380

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6.
Delayed Rental Payment:   Tenant may, at its sole discretion, delay payment of
rent for December 2012 to January 3, 2013 by providing Landlord with written
notice of its intent to delay the payment no later than November 10, 2012.

 
7.
Relinquished Space: Tenant shall vacate the Premises, located along the dome and
the 7th floor within 45 days of written notice by Landlord but in no event later
than December 31, 2013 and return possession to Landlord; however, Tenant shall
continue to pay full rent pursuant to the Lease on its entire space less the
$10,000 per month reduction as described in #5 above until the expiration of the
original lease term. If Landlord rents the relinquished space prior to December
1, 2013, then after pro-rating all leasing and improvement costs, Tenant shall
receive 40% of any rent collected for the time period through December 2013.
Tenant has no obligation for and is not responsible to reimburse Landlord for
any leasing/improvement costs; only to continue paying its rental obligation
less collected rent credits as described herein. If tenant has not vacated its
space and returned possession to Landlord by within the 45 days after notice as
described above, tenant shall not be entitled to any of the $10,000 per month
rent credits for the entire last 12 months of the original lease term. Tenant
shall not be obligated to remove any furniture or supplies from the vacated
space until given 40 day written notice to do so by Landlord and Tenant may have
access to vacated premises for occasional use up and until 40 days after tenant
receives written notice from Landlord, which may be given by Landlord at its
sole discretion.

 
8.
Validity: This Agreement shall not be valid unless executed by both Parties.

 
All other terms and conditions of the existing lease shall remain in force and
effect.
 
LESSOR:
 
LESSEE:
 
Rotunda Partners II LLC
 
Scientific Learning Corporation, a Delaware Corporation.
              By:
/s/ Len Epstein
  By:
/s/ Chris Brookhart
   
Len Epstein
   
Chris Brookhart
              Its:
Managing Member
  Its:
SVP and General Counsel
  Date:
10-3-2012
    Date:
10/3/2012
 

 
 
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