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Lease between
Sobrato Development Companies #871
And
Terayon Communication Systems, Inc.
 Section
    
    
    
    Page #1.
    
    Parties
    
    
    12.
    
    Premises
    
    
    13.
    
    Use
    
    
    1A.
    
    Permitted Uses
    
    
    1B.
    
    Uses Prohibited
    
    
    1C.
    
    Advertisements and Signs
    
    
    1D.
    
    Covenants, Conditions and Restrictions
    
    
    14.
    
    Term and Rental
    
    
    2A.
    
    Base Monthly Rent
    
    
    2B.
    
    Late Charges
    
    
    2C.
    
    Security Deposit
    
    
    2D.
    
    Habitual Default5.
    
    Construction
    
    
    36.
    
    Acceptance of Possession and Covenants to Surrender
    
    
    3A.
    
    Delivery and Acceptance
    
    
    3B.
    
    Condition Upon Surrender
    
    
    3C.
    
    Failure to Surrender
    
    
    47.
    
    Alterations and Additions
    
    
    4A.
    
    Tenants Alterations
    
    
    4B.
    
    Free from Liens
    
    
    5C.
    
    Compliance with Governmental Regulations
    
    
    5D.
    
    Conduit and Communications Equipment8.
    
    Maintenance of Premises
    
    
    6A.
    
    Landlords Obligations
    
    
    6B.
    
    Tenants Obligations
    
    
    6C.
    
    Waiver of Liability
    
    
    6D.
    
    Capital Improvements
    
    
    69.
    
    Hazard Insurance
    
    
    7A.
    
    Tenants Use
    
    
    7B.
    
    Landlords Insurance
    
    
    7C.
    
    Tenants Insurance
    
    
    7D.
    
    Waiver
    
    
    710.
    
    Taxes
    
    
    811.
    
    Utilities
    
    
    812.
    
    Toxic Waste and Environmental Damage
    
    
    8A.
    
    Use of Hazardous Material
    
    
    8B.
    
    Tenants Indemnity Regarding Hazardous Material
    
    
    9C.
    
    Notice of Release or Violation
    
    
    9D.
    
    Remediation Obligations
    
    
    10E.
    
    Environmental Monitoring
    
    
    10F.
    
    Landlord Indemnification
    
    
    1013.
    
    Tenants Default
    
    
    11A.
    
    Remedies
    
    
    11B.
    
    Right to Re-enter
    
    
    11C.
    
    Continuation of Lease
    
    
    11D.
    
    No Termination
    
    
    12E.
    
    Non-Waiver
    
    
    12F.
    
    Performance by Landlord
    
    
    12G.
    
    Habitual Default
    
    
    12
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Section
    
    
    
    Page #14.
    
    Landlords Liability
    
    
    12A.
    
    Limitation on Landlords Liability
    
    
    12B.
    
    Limitation on Tenants Recourse
    
    
    13C.
    
    Indemnification of Landlord
    
    
    1315.
    
    Destruction of Premises
    
    
    13A.
    
    Landlords Obligation to Restore
    
    
    13B.
    
    Limitations on Landlords Restoration Obligation
    
    
    1416.
    
    Condemnation
    
    
    1417.
    
    Assignment or Sublease
    
    
    14A.
    
    Consent by Landlord
    
    
    14B.
    
    Assignment or Subletting Consideration
    
    
    15C.
    
    No Release
    
    
    16D.
    
    Reorganization of Tenant
    
    
    16E.
    
    Permitted Transfers
    
    
    17F.
    
    Effect of Default
    
    
    17G.
    
    Effects of Conveyance
    
    
    17H.
    
    Successors and Assigns
    
    
    17I.
    
    Sublease Requirements
    
    
    1718.
    
    Option to Extend the Lease Term
    
    
    18A.
    
    Grant and Exercise of Option
    
    
    18B.
    
    Determination of Fair Market Rental
    
    
    18C.
    
    Resolution of a Disagreement over the Fair Market Rental
    
    
    19D.
    
    Personal to Tenant
    
    
    1919.
    
    General Provisions
    
    
    19A.
    
    Attorneys Fees
    
    
    19B.
    
    Authority of Parties
    
    
    19C.
    
    Brokers
    
    
    19D.
    
    Choice of Law
    
    
    19E.
    
    Dispute Resolution
    
    
    19F.
    
    Entire Agreement
    
    
    20G.
    
    Entry by Landlord
    
    
    21H.
    
    Estoppel Certificates
    
    
    21I.
    
    Exhibits
    
    
    21J.
    
    Interest
    
    
    21K.
    
    Modifications Required by Lender
    
    
    21L.
    
    No Presumption Against Drafter
    
    
    21M.
    
    Notices
    
    
    21N.
    
    Property Management
    
    
    22O.
    
    Rent
    
    
    22P.
    
    Representations
    
    
    22Q.
    
    Rights and Remedies
    
    
    22R.
    
    Severability
    
    
    22S.
    
    Submission of Lease
    
    
    22T.
    
    Subordination
    
    
    22U.
    
    Survival of Indemnities
    
    
    22V.
    
    Time
    
    
    23W.
    
    Waiver of Right to Jury Trial
    
    
    23EXHIBIT A  Premises & Building
    
    
    25EXHIBIT B  Initial Alterations
    
    
    26
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1. PARTIES: THIS LEASE , th
  2. PREMISES: Exhibit A
 3. USE:
 A. Permitted Uses:
 B. Uses Prohibited:
 C. Advertisements and Signs:
 D. Covenants, Conditions and Restrictions:
 Page 1




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4. TERM AND RENTAL:
 A. Base Monthly Rent:
 10/1/06 - 09/30/07:
    
    $63,069.00 per month10/01/07 - 09130/08:
    
    $64,961.00 per month10/01/08 - 09/30/09:
    
    $66,910.00 per month
  B. Late Charges:
 C. Security Deposit:
 Page 2




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5. CONSTRUCTION:
 Except as otherwise specifically provided in this Lease, The parties acknowledge that Landlord
is not performing any construction pursuant to this Lease.
 6. ACCEPTANCE OF POSSESSION AND COVENANTS TO SURRENDER:
 A. Delivery and Acceptance:
 B. Condition Upon Surrender:
 Page 3




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C. Failure to Surrender:
 7. ALTERATIONS AND ADDITIONS:
 A. Tenants Alterations:
  Page 4




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Exhibit
B
 B. Free from Liens:
 C. Compliance with Governmental Regulations:
 D. Rooftop Communications Equipment:
 Page 5




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8. MAINTENANCE OF PREMISES:
 A. Landlords Obligations:
 B. Tenants Obligations:
 C. Waiver of Liability:
 D. Capital Improvements:
  Page 6




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9. HAZARD INSURANCE:
 A. Tenants Use:
 B. Landlords Insurance:
 C. Tenants Insurance:
 D. Waiver:
 Page 7




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10. TAXES:
 11. UTILITIES:
 12. TOXIC WASTE AND ENVIRONMENTAL DAMAGE:
 A. Use of Hazardous Material:
 Page 8




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B. Tenants Indemnity Regarding Hazardous Material:
 C. Notice of Release or Violation:
  Page 9




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D. Remediation Obligations:
 E. Environmental Monitoring:
 F. Landlord Indemnification:
 Page 10




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13. TENANTS DEFAULT:
 A. Remedies:
 B. Right to Re-enter:
 C. Continuation of Lease:
 Page 11




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D. No Termination:
 E. Non-Waiver:
 F. Performance by Landlord:
 G. Habitual Default:
 14. LANDLORDS LIABILITY:
 A. Limitation on Landlords Liability:
 Page 12




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B. Limitation on Tenants Recourse:
 C. Indemnification of Landlord:
 15. DESTRUCTION OF PREMISES:
 A. Landlords Obligation to Restore:
 Page 13




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B. Limitations on Landlords Restoration Obligation:
 16. CONDEMNATION:
 17. ASSIGNMENT OR SUBLEASE:
 A. Consent by Landlord:
 Page 14




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B. Assignment or Subletting Consideration:
 Page 15




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C. No Release:
 D. Reorganization of Tenant:
 Page 16




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E. Permitted Transfers:
 F. Effect of Default:
 G. Conveyance by Landlord:
 H. Successors and Assigns:
 I. Sublease Requirements:
 Page 17




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18. OPTION TO EXTEND THE LEASE TERM:
 A. Grant and Exercise of Option:
 B. Determination of Fair Market Rental:
 Page 18




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C. Resolution of a Disagreement over the Fair Market Rental:
     D. Personal to Tenant:
 19. GENERAL PROVISIONS:
 A. Attorneys Fees:
 B. Authority of Parties:
 C. Brokers:
 D. Choice of Law:
 E. Dispute Resolution:
 Page 19




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JMS JDC
 F. Entire Agreement:
 Page 20




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G. Entry by Landlord:
 H. Estoppel Certificates:
 I. Exhibits:
 J. Interest:
 K. Modifications Required by Lender:
 L. No Presumption Against Drafter:
 M. Notices:
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N. Property Management:
 O. Rent:
 P. Representations:
 Q. Rights and Remedies:
 R. Severability:
 S. Submission of Lease:
 T. Subordination:
 U. Survival of Indemnities:
 Page 22




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V. Time:
 W. Waiver of Right to Jury Trial:
 Page 23




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Landlord:Sobrato Development Companies #871,
    
    Tenant: Terayon Communication Systems, Inc.,a California Limited Partnership
    
    a Delaware corporationBy:
    
    /s/ John M. Sobrato
    
    
    By:
    
    /s/ Jerry D. ChaseIts:
    
    General Partner
    
    
    Its:
    
    CEO
 Page 24