Document:

Ex-4.15 Lease Agreement, Dated march 14, 2003

 

Exhibit 4.15

(Translation)

Lease Agreement

<Table for Important Contract Terms>

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lessor	 	Mitsui Fudosan Co., Ltd.	 	Name	 	Jinbocho Mitsui Building
	
	 	
	 	
	 	

	Lessee	 	Internet Initiative Japan, Inc.	 	Location	 	105, Kanda Jinbocho 1-chome, Chiyoda-ku, Tokyo
	
	 	
	 	
	 	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Structure	 	Steel-framed, partially reinforced concrete structure
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	 	

	Leased premises	 	Lease conditions	 	No. of story	 	23-story with 3 basement floors and two-story penthouse
	
	 	
	 	
	 	

	 	 	 	 	 	 	 	 	 	 	Contract area (m2)	 	Rent (in yen)	 	Common-area charge (in yen)	 	Deposit (in yen)
	 	 	 	 	 	 	 	 	 	 	
	 	
	 	
	 	

	 	 	 	 	 	 	 	 	 	 	(On a wall center	 	Unit price	 	 	 	 	 	Unit price	 	 	 	 	 	Unit price	 	 	 	 
	Floor, Room No.	 	Use	 	line basis)	 	(/m2-month)	 	Monthly amount	 	(/m2-month)	 	Monthly amount	 	(/m2)	 	Total
	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	

	23rd floor
	 	No. 2305	 	Office space	 	 	1,125.59	 	 	 	7,865	 	 	 	8,852,765	 	 	 	1,513	 	 	 	1,703,018	 	 	 	112,536	 	 	 	126,669,396	 
	22nd floor
	 	No. 2201	 	Office space	 	 	2,352.63	 	 	 	7,865	 	 	 	18,503,435	 	 	 	1,513	 	 	 	3,559,529	 	 	 	112,536	 	 	 	264,755,570	 
	 
	 	No. 2209	 	Core office space	 	 	90.38	 	 	 	5,052	 	 	 	456,600	 	 	 	1,513	 	 	 	136,745	 	 	 	78,780	 	 	 	7,120,136	 
	21st floor
	 	No. 2101	 	Office space	 	 	2,352.63	 	 	 	7,865	 	 	 	18,503,435	 	 	 	1,513	 	 	 	3,559,529	 	 	 	112,536	 	 	 	264,755,570	 
	 
	 	No. 2109	 	Core office space	 	 	90.38	 	 	 	5,052	 	 	 	456,600	 	 	 	1,513	 	 	 	136,745	 	 	 	78,780	 	 	 	7,120,136	 
	20th floor
	 	No. 2001	 	Office space	 	 	2,352.63	 	 	 	7,865	 	 	 	18,503,435	 	 	 	1,513	 	 	 	3,559,529	 	 	 	112,536	 	 	 	264,755,570	 
	 
	 	No. 2009	 	Core office space	 	 	39.86	 	 	 	5,052	 	 	 	201,373	 	 	 	1,513	 	 	 	60,308	 	 	 	78,780	 	 	 	3,140,171	 
	19th floor
	 	No. 1901	 	Office space	 	 	2,352.63	 	 	 	7,865	 	 	 	18,503,435	 	 	 	1,513	 	 	 	3,559,529	 	 	 	112,536	 	 	 	264,755,570	 
	 
	 	No. 1909	 	Core office space	 	 	39.86	 	 	 	5,052	 	 	 	201,373	 	 	 	1,513	 	 	 	60,308	 	 	 	78,780	 	 	 	3,140,171	 
	18th floor
	 	No. 1801	 	Office space	 	 	2,352.63	 	 	 	7,865	 	 	 	18,503,435	 	 	 	1,513	 	 	 	3,559,529	 	 	 	112,536	 	 	 	264,755,570	 
	 
	 	No. 1809-1810	 	Core office space	 	 	77.25	 	 	 	5,052	 	 	 	390,267	 	 	 	1,513	 	 	 	116,879	 	 	 	78,780	 	 	 	6,085,755	 
	17th floor
	 	No. 1701	 	Office space	 	 	1,997.96	 	 	 	7,865	 	 	 	15,713,955	 	 	 	1,513	 	 	 	3,022,913	 	 	 	112,536	 	 	 	224,842,427	 
	 
	 	No. 1709	 	Core office space	 	 	39.86	 	 	 	5,052	 	 	 	201,373	 	 	 	1,513	 	 	 	60,308	 	 	 	78,780	 	 	 	3,140,171	 
	 
	 	 	Consumption tax	 	 	 	 	 	 	 	 	 	 	5,949,567	 	 	 	 	 	 	 	1,154,737	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	
	 	 	 	 	 	 	 	
	 	 	 	 	 	 	 	
	 	 	 	 	 	 	 	
	 
	 
	 	 	Total	 	 	15,264.29	 	 	 	 	 	 	 	124,941,048	 	 	 	 	 	 	 	24,249,606	 	 	 	 	 	 	 	1,705,036,213	 
	 
	 	 	 	 	 	 	 	 	 	 	
	 	 	 	 	 	 	 	
	 	 	 	 	 	 	 	
	 	 	 	 	 	 	 	
	 
	 
	Lease Term	 	From March 15, 2003 to March 14, 2006	 	Expenses set forth in Article 7(5)	 	Over-time air conditioning charge
	Deposit payment due
	 	As subscription fee for security deposit by execution of the Subscription for Lease Agreement	 	372,136,392 yen	 
	 
	 	By execution of the Lease Agreement	 	1,332,899,821 yen	 
	Remarks
	 	Special clauses are applicable	 

 

 

The Lessor and the Lessee enter into the Lease Agreement with respect to the
lease of the leased premises set forth in the above Table from the Lessor to
the Lessee as follows. In witness whereof, the parties execute this Agreement
in duplicate by affixing their names and seals, each party retaining one copy
each.

     March 14, 2003

	 	 	 	 	 	 	 
	Lessor	 	
Mr. Hiromichi Iwasa

Representative Director and President

Mitsui Fudosan Co., Ltd.
	 	Lessee
	 	Koichi Suzuki, Representative Director (seal)

          13, Kanda Nishikicho 3-chome, Chiyoda-ku, Tokyo

Internet Initiative Japan, Inc.

2

 

Exhibit 4.15

Lease Agreement

Article 1 (Leased Premises and Contract Area)

     The leased premises (hereinafter referred to as the “Leased Premises”) and
the contract area shall be as set forth in the Table for Important Contract
Terms (hereinafter referred to as the “Table”) and shown in the drawing
attached hereto.

Article 2 (Lease Term)

     The term of this Lease Agreement (hereinafter referred to as the “Lease
Term”) shall be as set forth in the Table.

Article 3 (Rent and Common-Area Charge)

1.     The rent and common-area charge shall be as set forth in the Table.
Provided, however, that any rent and common-area charge for the period less
than a month shall be calculated based on the actual number of days elapsed.

2.     Common-area charges shall be used to pay expenses for various services
provided by the Lessee and expenses for maintenance and administration of the
common area in the building set forth in the Table (hereinafter referred to as
the “Building”).

Article 4 (Security Deposit)
(shiki-kin)

1.     The security deposit (shiki-kin) shall be in the amount set forth in the
Table, and shall be deposited by the Lessee to the Lessor as described therein.

2.     The Lessor shall not pay any interest on the security deposit.

3.     In the event there is any increase/decrease in the rent, either the Lessor
or the Lessee may claim for an increase/decrease in the security deposit in the
amount equivalent to six (6) times such increase/decrease in the rent.

4.     During the Lease Term, the Lessee shall not claim to offset its rent or any
other obligations owed to the Lessor with the security deposit.

5.     In the event the Lessee fails to pay any rent, common-use charge, expenses
set forth in Article 7 or price for contracted works by the due date, fails to
pay any other obligations owed to the Lessor or has any compensation
obligation, the Lessor may use any or all of the security deposit for such
payment.

3

 

6.     In the event any or all of the security deposit is used to pay the Lessee’s
obligations under the previous Paragraph, the Lessee shall make up for any
shortage in the security deposit without delay.

7.     Upon termination of this Lease Agreement (hereinafter referred to as this
“Agreement”), the Lessor shall return to the Lessee any security deposit
remaining after deducting all obligations owed to the Lessor by the Lessee
without delay after the Lessee completely vacates the Lease Premises.

8.     The Lessee shall not assign to any third party its claim to the security
deposit nor provide it as security for obligations.

9.     The Lessee shall not entrust to any third party the right to receive the
security deposit to be returned under Paragraph 7 above.

Article 5 (Payment Method)

1.     The Lessee’s obligation owed to the Lessor shall be an obligation payable to
the Lessor at its place of business.

2.     The Lessee shall pay the rent and common-use charge for the month including
the commencement date of the Lease upon execution of this Agreement, and
thereafter pay the rent and common-area charge for the following month by the
25th day of each month by automatic transfer to the bank account designated by
the Lessor.

3.     With respect to expenses set forth in Article 7, the Lessee shall pay the
amount requested by the Lessor by the 25th day of each month by automatic
transfer to the bank account designated by the Lessor.

4.     The consumption tax imposed on the Lessee’s obligations owed to the Lessor
shall be in the amount to be calculated by the Lessor using the tax rate
applicable to respective obligation and requested after adjusting any fraction.

Article 6 (Revision of Rent and Common-Area Charge)

1.     The Lessor and the Lessee may revise the rent and common-area charge upon
renewal of this Agreement.

2.     Notwithstanding the preceding Paragraph, the Lessor and the Lessee may
revise the rent and common-area charge when they are considered unreasonable in
light of the situation arising from any change in commodity prices, taxes and
public charges imposed on the land and building, rents of neighboring lands and
buildings or administrative expenses for the land and building, or any other
economic changes.

4

 

Article 7 (Expenses to be Borne by the Lessee)

     The following expenses shall be borne by the Lessee:

	 	(1)   Electric charge for panel lights and other facilities within the
Leased Premises and expenses for maintenance of panel lights;
	 
	 	(2)   Charges for boilers, cold water, use of coolant water, gas and tap
water of the facilities installed by the Lessee with the Lessor’s
consent;
	 
	 	(3)   Expenses for cleaning and care for the Leased Premises
(including fixtures and facilities of the Lessee)
	 
	 	(4)   Expenses for insecticide and rodenticide within the Leased
Premises; and
	 
	 	(5)   Expenses set forth in the Table.

Article 8 (Delinquency Charges)

     In the event the Lessee fails to pay the rent, common-area charge and
other obligations by the due date, the Lessor may request the Lessee for
payment of delinquency charges at the rate of 0.05% per diem (i.e., 18.25% per
annum) of the amount in arrears. Provided, however, that the Lessee shall not
be exempted from the Lessor’s exercise of the termination right set forth in
Article 22 by the payment of such charges.

Article 9 (Method of Use)

1.     The Lessee shall use the Leased Premises for the purpose set forth in the
Table.

2.     The Lessee shall observe the management rules attached hereto (hereinafter
referred to as the “Management Rules”), which are a collateral contract to this
Agreement.

3.     In the event the Lessee intends to use the Leased Premises as a shop, it
shall observe the matters set forth in the “Notification of Business
Operations” attached hereto, and if it intends to change such notification, the
Lessee must obtain the Lessor’s consent in advance.

Article 10 (No Assignment or Sublease of the Lease, No Cohabitation)

1.     The Lessee may not assign or pledge as security any right under this
Agreement, nor sublease the Leased Premises with or without consideration.

5

 

2.     The Lessee may not transfer any right under this Agreement by business
transfer, merger or other means to any person other than the Lessee.

3.     The Lessee may not allow a third party to live with the Lessee in the Leased
Premises, to display the name of residents other than the Lessee or to install
a telephone or telex line in the name of any person other than the Lessee
without prior written consent of the Lessor.

Article 11 (Notice of Change in Registered Matters or Personal Matters)

     The Lessee shall notify the Lessor of the change, if any, in its address,
trade name, representative, business object or other matters recorded in the
commercial register, or in its personal matters in writing without delay.

Article 12 (Care of Good Manager)

1.     The Lessee shall use the Building (including fixtures and facilities;
hereinafter the same) with the duty of care of a good manager.

2.     The Lessee shall not cause trouble for the Lessor, other residents or
neighbors.

Article 13 (Compensation for Damage)

     In the event the Lessee causes damage to any third party intentionally or
by negligence, it shall compensate such damage.

Article 14 (Fixtures and Facilities Works, etc.)

1.     In the event the Lessee desires to newly establish, add to, remove or modify
any fixture and facilities, change their capacity, replace them, or change the
original condition of the Leased Premises or the Building, it shall order the
construction works thereof in writing to the Lessor (the Lessor, however, may
designate any person on its behalf) with its prior approval, and shall bear all
the expenses required for such works.

2.     The construction works set forth in the preceding Paragraph shall be
conducted within the Lease Term.

3.     Any taxes and public dues imposed on the fixtures and facilities newly
constructed or added at the Lessee’s expenses shall be borne by the Lessee
regardless of addressee or name.

6

 

Article 15 (Repair)

1.     In the event a repair of the Leased Premises and any fixture or facilities
becomes or is likely to become necessary due to the destruction, breakdown,
wear and tear (including stain; hereinafter the same) thereof, the Lessee shall
promptly notify the Lessor to such effect.

2.     Any repair deemed necessary by the Lessor based on the above notice shall be
conducted by the Lessor at its expense. Provided, however, that expenses of
repair such as re-painting, re-papering or replacing the ceilings, walls and
floors in the Leased Premises and of repair incurred for reasons attributable
to the Lessee shall be borne by the Lessee.

Article 16 (Indemnification)

     In the event any repair, change, alteration or maintenance (including
power and water failure) deemed necessary by the Lessor is conducted and causes
any inconvenience or trouble for the Lessee, the Lessor shall not be liable for
such inconvenience or trouble.

Article 17 (Entrance and Inspection by the Lessor)

1.     The Lessor or its designee may enter into the Leased Premises and take
appropriate measures upon notifying the Lessee thereof in advance, when such
action is necessary for the security, management and operation of the Building
or the Leased Premises. Provided, however, that such notice is not required
when the Lessor cannot notify the Lessee in advance in case of urgency or
emergency, or when it is not likely to disturb the Lessee.

2.     With respect to the action set forth in the above Paragraph, the Lessee
shall cooperate with the Lessor.

Article 18 (Expiration of the Lease Term and Automatic Renewal)

1.     In the event either the Lessor or the Lessee notifies the other party in
writing of its intention not to renew this Agreement at least six (6) months
before the expiration of the Lease Term, this Agreement shall terminate on the
day when the Lease Term expires.

2.     In the event the notice set forth in the preceding Paragraph is not given at
least six (6) months before the expiration of the Lease Term, this Agreement
shall be automatically renewed and continue for two (2) years from the day
following the expiration of the Lease Term and thereafter.

7

 

Article 19 (Termination within the Lease Term)

1.     The Lessee may terminate this Agreement during the Lease Term by giving
written notice to the Lessor at least six (6) month before the intended
termination date and paying the rent and common-area charge
for three (3) months as penalty to the Lessor, apart from the rent and
common-area charge set forth in Article 3 Paragraph 1.

2.     The Lessee may not cancel its termination hereof or change the termination
date without the Lessor’s consent.

3.     The Lessee may terminate this Agreement with immediate effect by paying the
rent and common-area charge for nine (9) months to the Lessor.

Article 20 (Termination before Commencement of the Lease Term)

     In the event the Lessee intends to terminate this Agreement after the
execution hereof and before the commencement of the Lease Term, it must pay the
rent and common-area charge for nine (9) months to the Lessor. Provided,
however, that it shall not prevent the Lessor’s claim for damage against the
Lessee.

Article 21 (Succession of Status of the Lessor)

     In the event the Lessor subleases all or part of the Leased Premises to
the Lessee under the lease agreement (hereinafter referred to as “Basic
Agreement) between the Lessor and an owner of the Leased Premises (including
co-owner or partial owner of the Leased Premises), such owner shall succeed to
the status of the Lessor under this Agreement upon termination of the Basic
Agreement. Provided, however, that the Lessor’s claims against the Lessee
before succession shall not be succeeded to by the tenant.

Article 22 (Termination of Agreement)

     The Lessor may terminate this Agreement without any notice in the event
the Lessee falls under any of the following items:

	 	(1)   When a petition is filed against the Lessee for dissolution, bankruptcy,
civil rehabilitation, company arrangement or corporate reorganization,
etc.;
	 
	 	(2)   When the Lessee is subject to suspension of banking transaction,
attachment, provisional attachment, provisional injunction or compulsory
execution, etc.;
	 
	 	(3)   When the Lessee has failed to pay the rent and common-

8

 

	 	        area charge or the
expenses set forth in Article 7 for three (3) months or more;
	 
	 	(4)   When the Lessee violates any provision of this Agreement, the Management
Rules or other contract concluded collateral thereto;
	 
	 	(5)   When the Lessee conducts any act which would cause a significant loss of
credibility for the Lessor; or
	 
	 	(6)   When the Lessor deems that there is a significant loss of credibility for
the Lessee.

2.     Upon termination of this Agreement pursuant to the preceding Paragraph, the
Lessee shall pay the amount equal to rent and common-area charge for nine (9)
months to the Lessor. Provided, however, that it shall not prevent the
Lessor’s claim for damage against the Lessee.

Article 23 (Extinguishment of Agreement due to Force Majeure)

     In the event all or part of the Building is destroyed or damaged due to
natural disasters or other events not attributable to the Lessor nor the Lessee
and it becomes impossible to attain the purpose of this Agreement, this
Agreement shall necessarily extinguish. Neither the Lessor nor the Lessee
shall be liable for the damage suffered therefrom by the other party.

Article 24 (Vacation)

     Upon termination of this Agreement due to such reasons as expiry of the
Lease Term, cancellation or termination, the Lessee shall vacate the Leased
Premises in accordance with each of the following items:

	 	(1)   The Lessee shall, at its own expense, remove fixtures or facilities
installed or added to at its own expense and equipment, etc. it owns. The
Lessee shall also repair any damage to or wear and tear in the ceilings,
walls and floors in the Leased Premises and restore any change, damage,
failure, wear or tear in the Leased Premises, fixtures and facilities in
connection with special use by the Lessee, and vacate the Leased Premises
in their original conditions.
	 
	 	(2)   The restoration works mentioned in the preceding Paragraph shall be
conducted by the Lessor and expenses thereof shall be borne by the Lessee.

9

 

	 	(3)   Any Lessee’s item left in the Leased Premises or the Building upon
termination of this Agreement shall be deemed as forfeited by the Lessee
at such time. In such case, the Lessor may claim for the payment of
expenses incurred for removal or disposal thereof to the Lessee.
	 
	 	(4)   In the event the Lessee fails to vacate the Leased Premises
upon termination of this Agreement, the Lessee shall pay the Lessor
twice the amount of the rent and common-area charge for the period
starting from the day immediately following the termination date of
this Agreement and ending on the date of completion of the vacation,
and compensate for any damage suffered by the Lessor due to delayed
vacation.
	 
	 	(5)   In vacating the Leased Premises, the Lessee shall not make any claim for
the refund of expenses spent for the Leased Premises, fixtures or
facilities, or for the payment of moving expense, vacation expense or
concession money for whatever reasons or purposes. The Lessee shall not
make any claim to the Lessor for the purchase of fixtures or facilities
installed at Lessee’s own expense in the Leased Premises or the Building.

Article 25 (Representative for the Lessor)

     The Lessor may delegate or entrust part or all of the businesses relating
to this Agreement to an affiliate of the Lessor or a third party deemed
appropriate by the Lessor.

Article 26 (Jurisdiction)

     Any dispute arising from this Agreement between the Lessor and the Lessee
shall be submitted to the Tokyo District Court as the agreed jurisdiction.

Article 27 (Governing Law)

     This Agreement shall be governed by the laws of Japan.

10

 

Article 28 (Joint Surety)

1.     In the event the Lessee has a joint surety, such joint surety shall be
responsible for performing the Lessee’s obligations against the Lessor under
this Agreement (including any renewal or change hereof) jointly and severally
with the Lessee.

2.     In case of any change in the joint surety’s address, trade name,
representative, business objectives and other entries in the commercial
register or personal matters, the Lessee and the joint surety shall notify the
Lessor thereof in writing without delay.

3.     In the event the joint surety falls under Article 22, Paragraph 1, Item 1 or
2, or becomes disqualified as the joint surety accepted by the Lessor or unable
to act so due to dissolution, death or disappearance, the Lessee shall
forthwith appoint another joint surety and obtain the Lessor’s approval
therefor.

4.     In the event the status of lessor under this Agreement is succeeded to by
the owner of the Leased Premises in accordance with Article 21, the joint
surety shall be responsible for such owner.

Article 29 (Confidentiality)

     The Lessor, the Lessee and the joint surety shall not divulge the content
of this Agreement to any third party.

Article 30 (Good Faith Consultation)

     Any doubt arising from this Agreement shall be settled upon good faith
consultation between the Lessor and the Lessee.

11

 

[Special Clause]

Article 1 (Change in Area)

     In the event there is a change in the area set forth in the Table by the
commencement date of the Lease Term for reasons of engineering works of the
Building such as design or construction, the contract area shall be the area
after said change.

Article 2 (Change in Leasable Date)

     In the event the day when the Leased Premises are available (hereinafter
referred to as “Leasable Date”) is different from the commencement date of the
Lease Term set forth in the Table for reasons of engineering works of the
Building such as design or construction, the commencement date of the Lease
Term shall be the Leasable Date. When the Lessor confirms that the Leasable
Date and the commencement date of the Lease Term are different, the Lessor
shall promptly notify the Lessee thereof and explain the circumstances
therefor.

Article 3 (Measures regarding Payment of Rents)

1.     Notwithstanding the provisions of Article 5, Paragraph 2 of the Agreement,
the total of the rent and common-area charge for the period starting on the
commencement date of the Lease Term and ending on July 14, 2003 for the office
space (including the core office space) shall be calculated at a unit price of
¥1,500/m2 per month (excluding consumption tax).

2.     Based on the provisions of Article 3, Paragraph 1 of the Special Clause, the
Lessee shall bear the expenses set forth in Article 7 of the Agreement for the
period mentioned above.

Article 4 (Restoration to Original Condition)

     With respect to details of the restoration works set forth in Article 24
of the Agreement, the Lessor and the Lessee shall, upon consultation and
confirmation of the works conducted by the Lessee, enter into a memorandum on
such restoration works.

12

 

Article 5 (Installation of Facilities)

     The Lessee may install the following facilities to such extent, of content
and specifications as approved by the Lessor. The Lessee shall bear the
expenses for such installation and be responsible for restoration, and pay an
installation fee to the Lessor. For details, the Lessor and the Lessee shall
enter into a “Facilities Installation Agreement”.

	 	(1)   An emergency motor; and
	 
	 	(2)   Facilities desired by the Lessee and approved by the Lessor
other than the above.

Article 6 (Use of Facilities)

1.     The Lessee may use the following facilities with approval of the Lessor, and
shall pay a usage fee to the Lessor. The Lessee shall bear the expenses for
changing the original condition, if any, and be responsible for restoration.
For details, the Lessor and the Lessee shall enter into an agreement on the use
of each facility.

	 	(1)   Refreshment corner on each floor; and
	 
	 	(2)   Facilities desired by the Lessee and approved by the Lessor other
than the above.

2.     As to the refreshment corner mentioned in Item (2) above, the Lessee shall
pay a monthly usage fee of ¥3,000/m2 to the Lessor.

Article 7 (Rent and Common-Area Charge)

     The provisions of Article 6, Paragraphs 1 and 2 of the Agreement shall be
read as follows:

“1. The Lessor and the Lessee may, upon mutual consultation, revise the rent
and common-area charge upon renewal of this Agreement.

2.     Notwithstanding the preceding Paragraph, the Lessor and the Lessee may, upon
mutual consultation, revise the rent and common-area charge when they are
considered unreasonable in light of the situation arising from any change in
commodity prices, taxes and public charges imposed on the land and building,
rents of neighboring lands and buildings or administrative expenses for the
land and building, or any other economic changes.”

Article 8 (No Assignment or Sublease of the Lease, No Cohabitation)

     The provisions of Article 10, Paragraphs 1 and 2 of the Agreement shall be
read as follows:

“1. The Lessee may not assign or pledge as security any right under this
Agreement, nor sublease the Leased Premises with or without consideration
without prior written consent of the Lessor.

13

 

2.     The Lessee may not transfer any right under this Agreement by business
transfer, merger or other means to any person other than the
Lessee without prior written consent of the Lessor.”

Article 9 (Indemnification)

     The provisions of Article 16 of the Agreement shall be read as follows:

“In the event any repair, change, alteration or maintenance (including power
and water failure) deemed necessary by the Lessor is conducted and causes any
inconvenience or trouble for the Lessee, the Lessor shall not be liable for
such inconvenience or trouble. Provided, however, that the Lessor shall notify
the Lessee in advance and consult with the Lessee including related parties so
as to minimize the inconvenience or trouble for the Lessee.”

Article 10 (No Termination and Termination within the Lease Term)

1.     Notwithstanding the provisions of Article 19 of the Agreement, the Lessee
may not terminate this Agreement for the period limited to March 15, 2003 to
March 14, 2006.

2.     The provisions of Article 19, Paragraphs 1 and 3 shall be read as follows:

“Article 19, Paragraph 1:

     The Lessee may terminate this Agreement during the Lease Term by giving
the following written notice to the Lessor:

	 	(1)   At least six (6) months before the intended termination date in
case a total of the Leased Premises areas to be returned at the same
time is less than four (4) floors; or
	 
	 	(2)   At least twelve (12) months before the intended termination date in
case a total of the Leased Premises areas to be returned at the same
time is four (4) floors or more.

Article 19, Paragraph 3:

     The Lessee may terminate this Agreement with immediate effect by paying
the following amount equal to rent and common-area charge to the Lessor.

	 	(1)   The amount equal to rent and common-area charge for six (6) months
in case a total of the Leased Premises areas to be returned at the same
time is less than four (4) floors; or

14

 

	 	(2)   amount equal to the rent and common-area charge for
twelve (12) months in case a total of the Leased Premises areas to be
returned at the same time is four (4) floors or more.”

3.     With respect to the preceding Paragraph, the Lessee may not make an offer of
pre-notice of termination or immediate termination for a period of three (3)
months starting from the month following the month when such pre-notice is made
or immediate termination is notified as the first month.

Article 11 (Addition of leased premises)

1.     In the event that the lease agreement for leased premises in the Building
entered into by and between the Lessor and Asia Internet Holding K.K.
(hereinafter referred to as “AIH”) is terminated, and that this Agreement
remains effective, the leased premises under the agreement of AIH shall be
added to those of this Agreement. The Lessee shall not bear all obligations
arising from the agreement with AIH by the said addition of leased premises.

2.     Matters not settled by the provision of the preceding Paragraph shall be
settled upon consultation between the Lessor and the Lessee.

Article 12 (Termination before Commencement of the Lease Term)

     The provisions of Article 20 of the Agreement shall be read as follows:

     “In the event the Lessee intends to terminate this Agreement after the
execution hereof and before the commencement of the Lease Term, it must pay the
amount equal to rent and common-area charge for twelve (12) months as penalty
to the Lessor. Provided, however, that it shall not prevent the Lessor’s claim
for damage against the Lessee.”

Article 13 (Representative for the Lessor)

     The provisions of Article 25 of the Agreement shall be read as follows:

     “The Lessor may delegate or entrust a third party deemed appropriate by
the affiliate of the Lessee or the Lessee part or all of the businesses
relating to this Agreement. In such case, the Lessor shall notify the Lessee
to this effect before said third party starts the business.”

Article 14 (Joint Surety)

     The provisions of Article 28 of this Agreement shall be deleted in its
entirety.

15

 

Management Rules

(Matters to be Reported)

Article 1 The Lessee shall give the following reports to the Lessor upon
moving in using the form designated by the Lessor. In addition, if there is
any change in any of the matters reported, the Lessee shall promptly give the
Lessor notice of change.

(1)     Report of appointment of fire prevention managers

(2)     Report of emergency contact details

(3)     Report of appointment of key handlers

(Prohibited Matters)

Article 2 The Lessee shall not undertake the following actions in the
Building:

(1)     To bring into or house in the Building any explosive or ignitable objects
or other dangerous objects, unsanitary objects, or objects emitting loud noises
or bad odor;

(2)     To bring into and keep in the Building any animals and so forth;

(3)     To smoke in non-smoking areas;

(4)     To discard or leave cigarette butts, waste paper, garbage or similar
objects in any place other than the places designated by the Lessor;

(5)     To use open fire (electric heaters, oil heaters, electric radiators and so
forth) in the Building;

(6)     To prevent business or work of any other party;

(7)     To lodge in the Building;

(8)     To cook in the Building;

(9)     To place any cars, bicycles or so forth in any place other than the
place(s) designated by the Lessor;

(10)     To go out on the roof at times other than emergencies;

(11)     To open any smoke exhaust in situations other than fires;

(12)     To leave the Premises without putting out lights;

(13)     To leave the Premises without locking all windows and doors;

(14)     To leave the Premises before the security goes on duty;

(15)     To leave the Premises without turning off electric appliances or otherwise
without taking hazard prevention measures;

(16)     To leave any objects or install or post any signboards, advertisements,
bulletin boards, photographs or so forth in any place other than the
Leased Premises

16

 

(17)     To install or post any signboards, advertisements, bulletin boards,
photographs or so forth on any window panes (except the show windows and so
forth approved by the Lessor) in the Leased Premises; and

(18)     To violate any matter notified to the Lessee by the Lessor out of the
necessity for the maintenance of safety and appearance of the Building or the
maintenance and operation of the Building.

2.     The Lessee shall not leave the Leased Premises unused for a period longer
than two (2) months without the Lessor’s prior written approval.

(Bringing in of Heavy Objects)

Article 3 If the Lessee intends to bring any heavy object into the Building,
the Lessee shall obtain Lessor’s prior written consent.

(Handling of Keys and Cards)

Article 4 If the Lessee wishes to obtain copies of keys or cards leased out by
the Lessor, the Lessee shall lease such copies from the Lessor and shall not
allow any party other than the Lessor to copy such keys or cards.

2.     All costs and expenses for the manufacture of the copies mentioned in the
previous Paragraph shall be borne by the Lessee.

3.     If the Lessee loses any key or card leased out by the Lessor, the Lessee
shall immediately submit a loss report to the Lessor.

4.     Where the previous Paragraph applies, all costs and expenses for the
exchange of keys and the manufacture of new keys or cards shall be borne by the
Lessee.

(Compliance with Building Use Guide)

Article 5 If the Lessee prepares a “Building Use Guide” separately from these
Management Rules, the Lessee shall comply with the contents of such guide.

(Compliance with Cautions)

Article 6 If the Lessor newly provides rules and/or cautions other than these
Management Rules out of the necessity for management of the building and
notifies the Lessee of such rules and/or cautions or posts them at appropriate
places, the Lessee shall comply with such rules and/or cautions.

(Compliance Obligation)

Article 7 The Lessee shall have the obligation to ensure that its employees,
contractors, visitors or other parties involved comply with these Management
Rules.

17EX-4.16 Sublease Agreements, Dated march 15, 2003

 

Exhibit 4.16

(Translation)

SUBLEASE AGREEMENT

Internet Initiative Japan, Inc. (“IIJ”) and Crosswave Communications Inc.
(“CWC”) hereby enter into the agreement on sublease of certain portions of the
leased premises in Jinbocho Mitsui Building (the “Building”) leased out to IIJ
by Mitsui Fudosan Co., Ltd. (“Mitsui Fudosan”) as follows:

(Objective)

Article 1  Having obtained Mitsui Fudosan’s consent, IIJ shall sublease to CWC,
and CWC shall sublease from IIJ, the portions of IIJ’s leased premises as
indicated in the Exhibit (“Subleased Premises”).

(Purpose)

Article 2  CWC shall use the Subleased Premises for office space only and not
for any other purposes.

(Sublease Term)

Article 3  The sublease term shall be from March 15, 2003 to March 14, 2006.
CWC may not cancel this Agreement prior to the expiration of the said term.

2.  In the absence of refusal of renewal in writing by either party hereto to
the other at least six (6) months prior to the expiration of the sublease term,
this Agreement shall be renewed for a further two (2) years on the same terms
and conditions (“Renewed Term”), and the same shall also apply thereafter.

(Cancellation during Renewed Term)

Article 4  During any Renewed Term, IIJ may cancel this Agreement by giving CWC
twelve (12) months’ written notice.

2.  Instead of giving notice as stipulated in the previous Paragraph, CWC may
cancel this Agreement immediately by paying an amount equal to the rent and
common-area charge for the twelve (12) months following the month to which the
date of surrender belongs, in addition to paying the rent
and common-area charge for the month to which the date of surrender belongs
pursuant to Article 5 Paragraph 1 and Article 6.

1

 

(Rent and Charges)

Article 5  CWC shall transmit an amount equal to the rent and common-area
charge for the following month as specified in the Exhibit to IIJ’s bank
account designated by IIJ no later than the final day of each month. For the
avoidance of doubt, the amounts of the rent and common-area charge for any
period less than one month shall be those for one month, and if the rent,
common-area charge or any other charge is changed during a month, the relevant
rent or charge shall be calculated on a daily basis.

2.  If during the term of this Agreement there is any increase in the rent and
common-area charge under the Lease Agreement dated March 14, 2003 entered into
between IIJ and Mitsui Fudosan (“Original Lease Agreement”), IIJ may increase
the rent and common-area charge hereunder in proportion to the rate of the
aforementioned increase by giving notice to CWC.

3.  The rent and common-area charge may be increased by consultation between the
parties hereto during the term of this Agreement when they are considered
unreasonable in light of the situation arising from changes in prices, an
increase in taxes and public charges imposed on the land and building or any
other changes in the general economic situation.

4.  CWC shall bear, in addition to the common-area charge, all costs and
expenses for the refreshment corner, installation of facilities, cleaning
service, electricity and extra hours air-conditioning arising in relation to
the use of the Subleased Premises (“Additional Charges”).

5.  CWC shall pay IIJ, in addition to all costs, expenses and charges stipulated
in Paragraphs 1 and 4 above, an amount equal to the interest on the security
deposit deposited to Mitsui Fudosan for the area of sublease in question
separately designated by IIJ, as the management fee no later than the final day
of each month.

2

 

6.  Notwithstanding the provisions of Paragraphs 1 through 5 above, the sum of
the rent and common-area charge for the Subleased Premises for the period from
March 15, 2003 to July 14, 2003 shall be calculated based on the unit price of
¥1,500 /m2• month (exclusive of consumption tax).

(Consumption Tax)

Article 6  Of all amounts of items of the rent, common-area charge, Additional
Charges and management fee stipulated herein, those subject to consumption tax
shall not include the amount of the relevant consumption tax, and CWC shall pay
IIJ all such amounts plus the amounts of the relevant consumption tax pursuant
to Article 5 Paragraph 1.

(Prohibited Activities)

Article 7  CWC shall not undertake the following actions:

(1)  To assign, or provide as security, the tenancy;

(2)  To sublease to a third party, or to allow a third party to use, all or part
of the Subleased Premises;

(3  To allow a third party to live with CWC in the Subleased Premises, or to
display the name of residents other than CWC, without IIJ’s prior written
consent;

(4)  To undertake any action that will be a nuisance to IIJ or any third party,
or any other action that may cause damage to the building including the
Subleased Premises;

(5)  To modify any fixture in the Subleased Premises, or to install in or bring
into the Subleased Premises any heavy or dangerous object, etc. that will cause
trouble in the preservation of the Subleased Premises, without permission; and

(6)  To breach any of the House Rules mentioned in Article 15 hereof.

(Notice of Changes in Registered Matters)

Article 8  If there is any material change in CWC’s address, trade name,
representative, business purposes, capital amount or any other matter
registered in its commercial register, or in its status, or if CWC intends to
change the items or form of its business, CWC shall give IIJ written notice
without delay. The same shall apply if CWC’s representative changes his/her
name or address.

3

 

(Allocation of Repair Expenses, etc.)

Article 9  Upon discovery of any part requiring repair in the skeleton of the
building or facilities attached thereto, CWC shall give notice to IIJ promptly.

2.  CWC shall bear all costs and expenses for repairs (including repainting) of
walls, ceilings, floors and so forth and electricity (including light bulbs and
fluorescent lamps) within the Subleased Premises; provided, however, that any repairs the expenses for which are borne
by CWC shall be made after consultation with IIJ.

(Change in the Original Condition)

Article 10  If CWC intends to introduce, remove, modify or partition any
fixtures or facilities or otherwise change the original condition of the
Subleased Premises, any such change shall not be started without giving written
notice to IIJ and obtaining IIJ’s written consent, and all costs and expenses
required for such change shall be borne by CWC.

2.  If CWC intends to carry out any of the works mentioned in the previous
Paragraph, it shall notify IIJ of the details, methods and so forth on the
relevant work previously in writing and shall obtain IIJ’s consent on each
occasion.

3.  CWC shall bear all taxes and public charges imposed on the property attached
to the Subleased Premises with IIJ’s consent and all costs and expenses for
repairs of such property.

(Designated Contractors)

Article 11  If any work for changing the original condition mentioned in the
previous Article or any work for restoring the original condition mentioned in Article 18 hereof is considered to affect the structure, skeleton and attached
facilities of the Building, CWC shall contract out such work to a contractor
who satisfies the requirements designated by IIJ and Mitsui Fudosan and for
whom IIJ and Mitsui Fudosan give their consent.

4

 

(Compensation for Damage)

Article 12  If CWC or its agents, employees, contractors or other parties
involved causes any damage to IIJ, Mitsui Fudosan or any other third party due
to intentional conduct or negligence, CWC shall compensate for all such damage.

(Release of Liability)

Article 13  IIJ shall not be liable for any damage incurred by CWC due to
breakdown of the electricity or water supply system, air-conditioning system,
elevators or any other facilities occurring despite IIJ’s ordinary care in
maintenance and management, or due to natural disasters such as
earthquake, fire or flood, or theft or any other reasons not attributable to
IIJ.

2.  Any damage caused by CWC to any other lessee or that caused by any other
lessee to CWC shall be dealt with and settled on CWC’s own responsibility and
at its expense without causing IIJ any trouble.

3.  Any repair or renovation or so forth of the Building by Mitsui Fudosan or
IIJ must be preceded by written notice to and consultation with CWC on the time
and date and the extent of the relevant work; provided, however, that the
foregoing shall not apply in case of emergency.

4.  Where the previous Paragraph applies, Mitsui Fudosan or IIJ, as the case may
be, shall not be liable to CWC for compensation for its damage.

(On-site Inspection)

Article 14  Mitsui Fudosan or IIJ, or their agents or employees (including
cleaners, contractors and temporary employees) shall be entitled to enter into
the Subleased Premises for inspection and take appropriate measures, upon
notifying CWC thereof in advance, when such action is necessary for the
maintenance, sanitation, crime prevention, fire prevention or rescue activities
of the building or for any other management of the building; provided, however,
that such inspection, etc. may be performed without notifying CWC in advance of
such actions when IIJ cannot do so for such reasons as emergencies. In such
case, IIJ shall notify CWC thereof promptly after the inspection.

2.  Where the previous Paragraph applies, CWC shall cooperate in measures taken
by Mitsui Fudosan and IIJ.

5

 

(House Rules)

Article 15  CWC shall comply with the House Rules of the Building separately
specified by Mitsui Fudosan.

(Extinguishment of Agreement)

Article 16  If all or part of the building is destroyed or damaged due to
natural disasters or any other force majeure event and it becomes impossible to
use the Subleased Premises, this Agreement shall be terminated automatically.

(Cancellation of Agreement)

Article 17  IIJ may immediately cancel this Agreement without any notice upon
the occurrence to CWC of any event falling under any of the following items, in
which case if IIJ suffers any damage, it may claim compensation for such damage
against CWC:

(1)  When CWC has failed to pay the rent or any other liabilities for two (2)
months or more;

(2)  When CWC has used the Subleased Premises for any purpose other than that
stipulated in Paragraph 2 hereof;

(3)  When CWC has breached any provisions of Article 7 hereof;

(4)  When CWC has significantly obstructed the possession and use by any other
lessee;

(5)  When CWC is subject to a declaration or so forth of provisional attachment,
provisional disposition, compulsory execution, bankruptcy, civil rehabilitation
procedures, corporate arrangement, corporate reorganization or dissolution;

(6)  When CWC has breached any law or regulation, engaged in any business
against public policy, or otherwise involved in any event resulting in
significant damage to CWC’s credibility;

(7)  When CWC has not used the Subleased Premises for a period longer than one (1) month without IIJ’s consent;

(8)  When CWC is subject to suspension of business transactions with banks;
and

(9)  When CWC has breached any provision of this Agreement or any other
agreement entered into together with this Agreement.

6

 

(Restoration of Original Condition)

Article 18  CWC shall, by the time of the termination of this Agreement, remove
at its own expense all fixtures and other facilities and CWC’s property
installed by CWC in the Subleased Premises and, upon request by IIJ, remove at
CWC’s expense all property installed by IIJ or Mitsui Fudosan at CWC’s request,
repair at CWC’s expense all damaged parts of the Subleased Premises and
facilities attached thereto and fixtures therein and restore the Subleased
Premises to their original condition at CWC’s expense prior to the surrender
thereof. In this case, if CWC fails to take measures to restore the Subleased
Premises to their original condition without delay, IIJ may take measures to
restore the Subleased Premises to their original condition at CWC’s expense,
and CWC shall not object to it. The period required for restoring the
Subleased Premises to their original condition shall be included
in the Subleased Term, and CWC shall pay the rent and common-area charge and so
forth for such period. In addition, for the purpose of this Agreement, the
“original condition” shall mean the condition at the time of delivery of the
property in question to IIJ under the Original Lease Agreement.

2.     Following the termination of this Agreement, if there is any property left
in the Subleased Premises after the surrender thereof by CWC, its ownership of
such property shall be deemed forfeited, and IIJ and Mitsui Fudosan may dispose
of such property at their discretion without informing CWC. In this case, all
costs and expenses required shall be borne by CWC, which shall not make any
objection to such disposal.

7

 

(Claim for Purchase of Fixtures)

Article 19  Upon surrender of the Subleased Premises, CWC shall not make any
claim for compensation for necessary expenses and beneficial expenses spent on
the Subleased Premises, its fixtures and facilities or any claim for the
payment of moving expense, vacation expense, a premium or any similar items,
for whatever reasons or under whatever name, nor shall it make any claim
against IIJ and Mitsui Fudosan for the purchase of fixtures, facilities and so
forth installed in the Subleased Premises at CWC’s expense.

(Delinquency Charges)

Article 20  In the event that CWC fails to pay the rent, common-area charge or
any other money to be paid to IIJ by the relevant due date, the delayed payment
must be accompanied by the payment of delinquency charges at the rate of 18.25%
per annum for the period from the day immediately following the relevant due
date to the date of completion of the payment.

2.     If CWC fails to vacate the Subleased Premises at the same time as the
termination of this Agreement, CWC shall pay IIJ an amount twice the amount of
all relevant charges and expenses, including the rent and common-area charge,
for the period from the day immediately following the termination date of this
Agreement to the date of completion of the vacation, and if such delayed
vacation causes any damage to IIJ or Mitsui Fudosan, CWC shall compensate for
such damage.

(Lessee’s Duty of Care of Good Manager)

Article 21  IIJ shall have no liability for the management of security in the
Subleased Premises, and CWC shall maintain and use the said Premises with a
care of a good manager and undertake fire prevention, crime prevention and the
clean-up of the environs.

2.  CWC shall use common areas in accordance with their usage and shall not
unreasonably occupy any such area or otherwise cause a nuisance to IIJ or any
third party.

8

 

3.  If CWC or its employees or visitors cause damage or otherwise cause losses
to any common area, CWC shall compensate for all such losses.

(Court of Jurisdiction)

Article 22  Any dispute arising in relation to any right or obligation arising
from this Agreement shall be submitted to the Tokyo District Court as the court
of exclusive jurisdiction over the first instance of any litigation over such
dispute.

(Special Clause)

Article 23  Notwithstanding the provisions of this Agreement, if IIJ withdraws
from and vacates the premises in question upon termination of the Original
Lease Agreement for whatever reason, this Agreement shall be terminated at the
same time as the termination of the Original Lease Agreement, and CWC shall
withdraw from the premises in question and vacate them after restoring them to
their original condition immediately following the termination of this
Agreement. In this case, CWC shall bear all costs and expenses for its
withdrawal from the premises in question and for the restoration of them to
their original condition, all losses arising from such withdrawal and so forth,
and shall not claim against IIJ for the payment of any such costs, expenses,
losses and so forth.

(Matters not Stipulated)

Article 24  If any question arises as to any matter not stipulated in this
Agreement or as to the interpretation of any provision of this Agreement, the
parties hereto shall resolve such question promptly in accordance with laws and
regulations, commercial practice in leased buildings in general and general
practice in real estate transactions, and in compliance with the principles of
good faith and fair dealing.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in duplicate, and one original to be retained by IIJ and CWC
respectively.

9

 

March 15, 2003

	IIJ:	 	Koichi Suzuki, Representative Director

Internet Initiative Japan, Inc.

13, Kanda Nishikicho 3-chome, Chiyoda-ku, Tokyo
	 
	CWC:	 	Koichi Suzuki, Representative Director

Crosswave Communications Inc.

21, Kanda Nishikicho 3-chome, Chiyoda-ku, Tokyo

10

 

EXHIBIT

1.  Description of the Subleased Premises

Jinbocho Mitsui Building, 105, Kanda Jinbocho 1-chome, Chiyoda-ku, Tokyo
(steel-framed, partially reinforced concrete structure)

Office spaces

18th floor:    Subleased floor area   873.19 m2

20th floor:    Subleased floor area   887.62 m2

21st floor:    Subleased floor area   948.97 m2

22nd floor:   Subleased floor area   834.60 m2

23rd floor:    Subleased floor area   562.79 m2

Total subleased floor area            4,107.17 m2

Core leased premises

20th floor:    Subleased floor area     39.86 m2

22nd floor:   Subleased floor area     45.19 m2

Refreshment corner

Two fifth (2/5) of 56.32 m2 on the 18th floor

Two fifth (2/5) of 56.32 m2 on the 20th floor

One half (1/2) of 26.97 m2 on the 21st floor

One half (1/2) of 56.32 m2 on the 22nd floor

11

 

However, the above premises are subleased as is. The floor areas were
calculated from the wall centers.

2.  Rent and Other Charges

(Bases for calculation)

Rent for the office spaces

¥7,865×4,107.17 m2 = ¥32,302,892

Common-area charge for the office spaces

¥1,513×4,107.17 m2 = ¥6,214,148

Rent for the core leased premises

¥5,052×85.05 m2 = ¥429,672

Common-area charge for the core leased premises

¥1,513×85.05 m2 = ¥128,680

Charge for the refreshment corner

¥3,000×(56.32 m2×2/5+56.32
m2×2/5+26.97 m2×1/2+56.32
m2×1/2) = ¥260,103

Facilities fee

Emergency power generator

¥260,000×5/38 = ¥34,210

Management fee

¥39,075,392×12 months×3%÷12 months = ¥1,172,261

12

 

Management Rules

(Matters to be Reported)

Article 1  The Lessee shall give the following reports to the Lessor upon
moving in using the form designated by the Lessor. In addition, if there is
any change in any of the matters reported, the Lessee shall promptly give the
Lessor notice of change.

(1)  Report of appointment of fire prevention managers

(2)  Report of emergency contact details

(3)  Report of appointment of key handlers

(Prohibited Matters)

Article 2  The Lessee shall not undertake the following actions in the Building:

(1)  To bring into or house in the Building any explosive or ignitable objects
or other dangerous objects, unsanitary objects, or objects emitting loud noises
or bad odor;

(2)  To bring into and keep in the Building any animals and so forth;

(3)  To smoke in non-smoking areas;

(4)  To discard or leave cigarette butts, waste paper, garbage or similar
objects in any place other than the places designated by the Lessor;

(5)  To use open fire (electric heaters, oil heaters, electric radiators and so
forth) in the Building;

(6)  To prevent business or work of any other party;

(7)  To lodge in the Building;

(8)  To cook in the Building;

(9)  To place any cars, bicycles or so forth in any place other than the
place(s) designated by the Lessor;

(10)  To go out on the roof at times other than emergencies;

(11)  To open any smoke exhaust in situations other than fires;

(12)  To leave the Premises without putting out lights;

(13)  To leave the Premises without locking all windows and doors;

(14)  To leave the Premises before the security goes on duty;

13

 

(15)  To leave the Premises without turning off electric appliances or otherwise
without taking hazard prevention measures;

(16)  To leave any objects or install or post any signboards, advertisements,
bulletin boards, photographs or so forth in any place other than the Leased
Premises

(17)  To install or post any signboards, advertisements, bulletin boards,
photographs or so forth on any window panes (except the show windows and so
forth approved by the Lessor) in the Leased Premises; and

(18)  To violate any matter notified to the Lessee by the Lessor out of the
necessity for the maintenance of safety and appearance of the Building or the
maintenance and operation of the Building.

2.  The Lessee shall not leave the Leased Premises unused for a period longer
than two (2) months without the Lessor’s prior written approval.

(Bringing in of Heavy Objects)

Article 3  If the Lessee intends to bring any heavy object into the Building,
the Lessee shall obtain Lessor’s prior written consent.

(Handling of Keys and Cards)

Article 4  If the Lessee wishes to obtain copies of keys or cards leased out by
the Lessor, the Lessee shall lease such copies from the Lessor and shall not
allow any party other than the Lessor to copy such keys or cards.

2.  All costs and expenses for the manufacture of the copies mentioned in the
previous Paragraph shall be borne by the Lessee.

3.  If the Lessee loses any key or card leased out by the Lessor, the Lessee
shall immediately submit a loss report to the Lessor.

4.  Where the previous Paragraph applies, all costs and expenses for the
exchange of keys and the manufacture of new keys or cards shall be borne by the
Lessee.

14

 

(Compliance with Building Use Guide)

Article 5  If the Lessee prepares a “Building Use Guide” separately from these
Management Rules, the Lessee shall comply with the contents of such guide.

(Compliance with Cautions)

Article 6  If the Lessor newly provides rules and/or cautions other than these
Management Rules out of the necessity for management of the building and
notifies the Lessee of such rules and/or cautions or posts them at appropriate
places, the Lessee shall comply with such rules and/or cautions.

(Compliance Obligation)

Article 7  The Lessee shall have the obligation to ensure that its employees,
contractors, visitors or other parties involved comply with these Management
Rules.

15

 

(Translation)

SUBLEASE AGREEMENT

Internet Initiative Japan, Inc. (“IIJ”) and Crosswave Facilities Inc. (“CWF”)
hereby enter into the agreement on sublease of certain portions of the leased
premises in Jinbocho Mitsui Building (the “Building”) leased out to IIJ by
Mitsui Fudosan Co., Ltd. (“Mitsui Fudosan”) as follows:

(Objective)

Article 1  Having obtained Mitsui Fudosan’s consent, IIJ shall sublease to CWF,
and CWF shall sublease from IIJ, the portions of IIJ’s leased premises as
indicated in the Exhibit (“Subleased Premises”).

(Purpose)

Article 2   CWF shall use the Subleased Premises for office space only and not
for any other purposes.

(Sublease Term)

Article 3  The sublease term shall be from March 15, 2003 to March 14, 2006.
CWF may not cancel this Agreement prior to the expiration of the said term.

2.  In the absence of refusal of renewal in writing by either party hereto to
the other at least six (6) months prior to the expiration of the sublease term,
this Agreement shall be renewed for a further two (2) years on the same terms
and conditions (“Renewed Term”), and the same shall also apply thereafter.

(Cancellation during Renewed Term)

Article 4  During any Renewed Term, IIJ may cancel this Agreement by giving CWF
twelve (12) months’ written notice.

2.  Instead of giving notice as stipulated in the previous Paragraph, CWF may
cancel this Agreement immediately by paying an amount equal to the rent and
common-area charge for the twelve (12) months following the month to which the
date of surrender belongs, in addition to paying the rent and common-area charge for the month to which the date of surrender belongs
pursuant to Article 5 Paragraph 1 and Article 6.

 

 

(Rent and Charges)

Article 5  CWF shall transmit an amount equal to the rent and common-area
charge for the following month as specified in the Exhibit to IIJ’s bank
account designated by IIJ no later than the final day of each month. For the
avoidance of doubt, the amounts of the rent and common-area charge for any
period less than one month shall be those for one month, and if the rent,
common-area charge or any other charge is changed during a month, the relevant
rent or charge shall be calculated on a daily basis.

2.  If during the term of this Agreement there is any increase in the rent and
common-area charge under the Lease Agreement dated March 14, 2003 entered into
between IIJ and Mitsui Fudosan (“Original Lease Agreement”), IIJ may increase
the rent and common-area charge hereunder in proportion to the rate of the
aforementioned increase by giving notice to CWF.

3.  The rent and common-area charge may be increased by consultation between the
parties hereto during the term of this Agreement when they are considered
unreasonable in light of the situation arising from changes in prices, an
increase in taxes and public charges imposed on the land and building or any
other changes in the general economic situation.

4.  CWF shall bear, in addition to the common-area charge, all costs and
expenses for the cleaning service, electricity and extra hours air-conditioning
arising in relation to the use of the Subleased Premises (“Additional
Charges”).

5.  CWF shall pay IIJ, in addition to all costs, expenses and charges stipulated
in Paragraphs 1 and 4 above, an amount equal to the interest on the security
deposit deposited to Mitsui Fudosan for the area of sublease in question
separately designated by IIJ, as the management fee no later than the final day
of each month.

2

 

6.  Notwithstanding the provisions of Paragraphs 1 through 5 above, the sum of
the rent and common-area charge for the Subleased Premises for the period from
March 15, 2003 to July 14, 2003 shall be calculated based on the unit price of
¥1,500/m2 • month (exclusive of consumption tax).

(Consumption Tax)

Article 6  Of all amounts of items of the rent, common-area charge, Additional
Charges and management fee stipulated herein, those subject to consumption tax
shall not include the amount of the relevant consumption tax, and CWF shall pay
IIJ all such amounts plus the amounts of the relevant consumption tax pursuant
to Article 5 Paragraph 1.

(Prohibited Activities)

Article 7  CWF shall not undertake the following actions:

(1)  To assign, or provide as security, the tenancy;

(2)  To sublease to a third party, or to allow a third party to use, all or part
of the Subleased Premises;

(3)  To allow a third party to live with CWF in the Subleased Premises, or to
display the name of residents other than CWF, without IIJ’s prior written
consent;

(4)  To undertake any action that will be a nuisance to IIJ or any third party,
or any other action that may cause damage to the building including the
Subleased Premises;

(5)  To modify any fixture in the Subleased Premises, or to install in or bring
into the Subleased Premises any heavy or dangerous object, etc. that will cause
trouble in the preservation of the Subleased Premises, without permission; and

(6)  To breach any of the House Rules mentioned in Article 15 hereof.

(Notice of Changes in Registered Matters)

Article 8  If there is any material change in CWF’s address, trade name,
representative, business purposes, capital amount or any other matter
registered in its commercial register, or in its status, or if CWF intends to
change the items or form of its business, CWF shall give IIJ written notice
without delay. The same shall apply if CWF’s representative changes his/her
name or address.

3

 

(Allocation of Repair Expenses, etc.)

Article 9  Upon discovery of any part requiring repair in the skeleton of the
building or facilities attached thereto, CWF shall give notice to IIJ promptly.

2.  CWF shall bear all costs and expenses for repairs (including repainting) of
walls, ceilings, floors and so forth and electricity (including light bulbs and
fluorescent lamps) within the Subleased Premises; provided, however, that any repairs the expenses for which are borne
by CWF shall be made after consultation with IIJ.

(Change in the Original Condition)

Article 10  If CWF intends to introduce, remove, modify or partition any
fixtures or facilities or otherwise change the original condition of the
Subleased Premises, any such change shall not be started without giving written
notice to IIJ and obtaining IIJ’s written consent, and all costs and expenses
required for such change shall be borne by CWF.

2.  If CWF intends to carry out any of the works mentioned in the previous
Paragraph, it shall notify IIJ of the details, methods and so forth on the
relevant work previously in writing and shall obtain IIJ’s consent on each
occasion.

3.  CWF shall bear all taxes and public charges imposed on the property attached
to the Subleased Premises with IIJ’s consent and all costs and expenses for
repairs of such property.

(Designated Contractors)

Article 11  If any work for changing the original condition mentioned in the
previous Article or any work for restoring the original condition mentioned in
Article 18 hereof is considered to affect the structure, skeleton and attached
facilities of the Building, CWF shall contract out such work to a contractor
who satisfies the requirements designated by IIJ and Mitsui Fudosan and for
whom IIJ and Mitsui Fudosan give their consent.

4

 

(Compensation for Damage)

Article 12  If CWF or its agents, employees, contractors or other parties
involved causes any damage to IIJ, Mitsui Fudosan or any other third party due
to intentional conduct or negligence, CWF shall compensate for all such damage.

(Release of Liability)

Article 13  IIJ shall not be liable for any damage incurred by CWF due to
breakdown of the electricity or water supply system, air-conditioning system,
elevators or any other facilities occurring despite IIJ’s ordinary care in
maintenance and management, or due to natural disasters such as earthquake, fire or flood, or theft or any other reasons not attributable to IIJ.

2.     Any damage caused by CWF to any other lessee or that caused by any other
lessee to CWF shall be dealt with and settled on CWF’s own responsibility and
at its expense without causing IIJ any trouble.

3.     Any repair or renovation or so forth of the Building by Mitsui Fudosan or
IIJ must be preceded by written notice to and consultation with CWF on the time
and date and the extent of the relevant work; provided, however, that the
foregoing shall not apply in case of emergency.

4.     Where the previous Paragraph applies, Mitsui Fudosan or IIJ, as the case may
be, shall not be liable to CWF for compensation for its damage.

(On-site Inspection)

Article 14  Mitsui Fudosan or IIJ, or their agents or employees (including
cleaners, contractors and temporary employees) shall be entitled to enter into
the Subleased Premises for inspection and take appropriate measures, upon
notifying CWF thereof in advance, when such action is necessary for the
maintenance, sanitation, crime prevention, fire prevention or rescue activities
of the building or for any other management of the building; provided, however,
that such inspection, etc. may be performed without notifying CWF in advance of

such actions when IIJ cannot do so for such reasons as emergencies. In such
case, IIJ shall notify CWF thereof promptly after the inspection.

2.  Where the previous Paragraph applies, CWF shall cooperate in measures taken
by Mitsui Fudosan and IIJ.

5

 

(House Rules)

Article 15  CWF shall comply with the House Rules of the Building separately
specified by Mitsui Fudosan.

(Extinguishment of Agreement)

Article 16  If all or part of the building is destroyed or damaged due to
natural disasters or any other force majeure event and it becomes impossible to
use the Subleased Premises, this Agreement shall be terminated automatically.

(Cancellation of Agreement)

Article 17  IIJ may immediately cancel this Agreement without any notice upon
the occurrence to CWF of any event falling under any of the following items, in
which case if IIJ suffers any damage, it may claim compensation for such damage
against CWF:

(1)  When CWF has failed to pay the rent or any other liabilities for two (2)
months or more;

(2)  When CWF has used the Subleased Premises for any purpose other than that
stipulated in Paragraph 2 hereof;

(3)  When CWF has breached any provisions of Article 7 hereof;

(4)  When CWF has significantly obstructed the possession and use by any other
lessee;

(5)  When CWF is subject to a declaration or so forth of provisional attachment,
provisional disposition, compulsory execution, bankruptcy, civil rehabilitation
procedures, corporate arrangement, corporate reorganization or dissolution;

(6)  When CWF has breached any law or regulation, engaged in any business
against public policy, or otherwise involved in any event resulting in
significant damage to CWF’s credibility;

6

 

(7)  When CWF has not used the Subleased Premises for a period longer than one
(1) month without IIJ’s consent;

(8)  When CWF is subject to suspension of business transactions with banks;
and

(9)  When CWF has breached any provision of this Agreement or any other
agreement entered into together with this Agreement.

(Restoration of Original Condition)

Article 18  CWF shall, by the time of the termination of this Agreement, remove
at its own expense all fixtures and other facilities and CWF’s property
installed by CWF in the Subleased Premises and, upon request by IIJ, remove at
CWF’s expense all property installed by IIJ or Mitsui Fudosan at CWF’s request,
repair at CWF’s expense all damaged parts of the Subleased Premises and
facilities attached thereto and fixtures therein and restore the Subleased
Premises to their original condition at CWF’s expense prior to the surrender
thereof. In this case, if CWF fails to take measures to restore the Subleased
Premises to their original condition without delay, IIJ may take measures to
restore the Subleased Premises to their original condition at CWF’s expense,
and CWF shall not object to it. The period required for restoring the
Subleased Premises to their original condition shall be included

in the Subleased Term, and CWF shall pay the rent and common-area charge and so
forth for such period. In addition, for the purpose of this Agreement, the
“original condition” shall mean the condition at the time of delivery of the
property in question to IIJ under the Original Lease Agreement.

2.  Following the termination of this Agreement, if there is any property left
in the Subleased Premises after the surrender thereof by CWF, its ownership of
such property shall be deemed forfeited, and IIJ and Mitsui Fudosan may dispose
of such property at their discretion without informing CWF. In this case, all
costs and expenses required shall be borne by CWF, which shall not make any
objection to such disposal.

7

 

(Claim for Purchase of Fixtures)

Article 19  Upon surrender of the Subleased Premises, CWF shall not make any
claim for compensation for necessary expenses and beneficial expenses spent on
the Subleased Premises, its fixtures and facilities or any claim for the
payment of moving expense, vacation expense, a premium or any similar items,
for whatever reasons or under whatever name, nor shall it make any claim
against IIJ and Mitsui Fudosan for the purchase of fixtures, facilities and so
forth installed in the Subleased Premises at CWF’s expense.

(Delinquency Charges)

Article 20  In the event that CWF fails to pay the rent, common-area charge or
any other money to be paid to IIJ by the relevant due date, the delayed payment
must be accompanied by the payment of delinquency charges at the rate of 18.25%
per annum for the period from the day immediately following the relevant due
date to the date of completion of the payment.

2.      If CWF fails to vacate the Subleased Premises at the same time as the
termination of this Agreement, CWF shall pay IIJ an amount twice the amount of
all relevant charges and expenses, including the rent and common-area charge,
for the period from the day immediately following the termination date of this
Agreement to the date of completion of the vacation, and if such delayed
vacation causes any damage to IIJ or Mitsui Fudosan, CWF shall compensate for
such damage.

(Lessee’s Duty of Care of Good Manager)

Article 21  IIJ shall have no liability for the management of security in the
Subleased Premises, and CWF shall maintain and use the said Premises with a
care of a good manager and undertake fire prevention, crime prevention and the
clean-up of the environs.

2.     CWF shall use common areas in accordance with their usage and shall not
unreasonably occupy any such area or otherwise cause a nuisance to IIJ or any
third party.

3.     If CWF or its employees or visitors cause damage or otherwise cause losses
to any common area, CWF shall compensate for all such losses.

8

 

(Court of Jurisdiction)

Article 22  Any dispute arising in relation to any right or obligation arising
from this Agreement shall be submitted to the Tokyo District Court as the court
of exclusive jurisdiction over the first instance of any litigation over such
dispute.

(Special Clause)

Article 23  Notwithstanding the provisions of this Agreement, if IIJ withdraws
from and vacates the premises in question upon termination of the Original
Lease Agreement for whatever reason, this Agreement shall be terminated at the
same time as the termination of the Original Lease Agreement, and CWF shall
withdraw from the premises in question and vacate them after restoring them to
their original condition immediately following the termination of this
Agreement. In this case, CWF shall bear all costs and expenses for its
withdrawal from the premises in question and for the restoration of them to
their original condition, all losses arising from such withdrawal and so forth,
and shall not claim against IIJ for the payment of any such costs, expenses,
losses and so forth.

(Matters not Stipulated)

Article 24  If any question arises as to any matter not stipulated in this
Agreement or as to the interpretation of any provision of this Agreement, the
parties hereto shall resolve such question promptly in accordance with laws and
regulations, commercial practice in leased buildings in general and general
practice in real estate transactions, and in compliance with the principles of
good faith and fair dealing.

9

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in duplicate, and one original to be retained by IIJ and CWF
respectively.

March 15, 2003

	IIJ:	 	Koichi Suzuki, Representative Director

Internet Initiative Japan, Inc.

13, Kanda Nishikicho 3-chome, Chiyoda-ku, Tokyo
	 
	CWF:	 	Hisashi Goto, Representative Director

Crosswave Facilities Inc.

21, Kanda Nishikicho 3-chome, Chiyoda-ku, Tokyo

10

 

EXHIBIT

1.  Description of the Subleased Premises

Jinbocho Mitsui Building, 105, Kanda Jinbocho 1-chome, Chiyoda-ku, Tokyo
(steel-framed, partially reinforced concrete structure)

Office space

20th floor:   Subleased floor area 100.00 m2

However, the above premises are subleased as is. The floor areas were
calculated from the wall centers.

2.  Rent and Other Charges

(Bases for calculation)

Rent for the office space

¥7,865 × 100.00 m2 = ¥786,500

Common-area charge for the office space

¥1,513 × 100.00 m2 = ¥151,300

Management fee

¥937,800 × 12 months × 3% ÷ 12 months = ¥28,134

11

 

Management Rules

(Matters to be Reported)

Article 1  The Lessee shall give the following reports to the Lessor upon
moving in using the form designated by the Lessor. In addition, if there is
any change in any of the matters reported, the Lessee shall promptly give the
Lessor notice of change.

(1)  Report of appointment of fire prevention managers

(2)  Report of emergency contact details

(3)  Report of appointment of key handlers

(Prohibited Matters)

Article 2  The Lessee shall not undertake the following actions in the Building:

(1)  To bring into or house in the Building any explosive or ignitable objects
or other dangerous objects, unsanitary objects, or objects emitting loud noises
or bad odor;

(2)  To bring into and keep in the Building any animals and so forth;

(3)  To smoke in non-smoking areas;

(4)  To discard or leave cigarette butts, waste paper, garbage or similar
objects in any place other than the places designated by the Lessor;

(5)  To use open fire (electric heaters, oil heaters, electric radiators and so
forth) in the Building;

(6)  To prevent business or work of any other party;

(7)  To lodge in the Building;

(8)  To cook in the Building;

(9)  To place any cars, bicycles or so forth in any place other than the
place(s) designated by the Lessor;

(10)  To go out on the roof at times other than emergencies;

(11)  To open any smoke exhaust in situations other than fires;

(12)  To leave the Premises without putting out lights;

(13)  To leave the Premises without locking all windows and doors;

(14)  To leave the Premises before the security goes on duty;

12

 

(15)  To leave the Premises without turning off electric appliances or otherwise
without taking hazard prevention measures;

(16)  To leave any objects or install or post any signboards, advertisements,
bulletin boards, photographs or so forth in any place other than the Leased
Premises

(17)  To install or post any signboards, advertisements, bulletin boards,
photographs or so forth on any window panes (except the show windows and so
forth approved by the Lessor) in the Leased Premises; and

(18)  To violate any matter notified to the Lessee by the Lessor out of the
necessity for the maintenance of safety and appearance of the Building or the
maintenance and operation of the Building.

2.  The Lessee shall not leave the Leased Premises unused for a period longer
than two (2) months without the Lessor’s prior written approval.

(Bringing in of Heavy Objects)

Article 3  If the Lessee intends to bring any heavy object into the Building,
the Lessee shall obtain Lessor’s prior written consent.

(Handling of Keys and Cards)

Article 4  If the Lessee wishes to obtain copies of keys or cards leased out by
the Lessor, the Lessee shall lease such copies from the Lessor and shall not
allow any party other than the Lessor to copy such keys or cards.

2.  All costs and expenses for the manufacture of the copies mentioned in the
previous Paragraph shall be borne by the Lessee.

3.  If the Lessee loses any key or card leased out by the Lessor, the Lessee
shall immediately submit a loss report to the Lessor.

4.  Where the previous Paragraph applies, all costs and expenses for the
exchange of keys and the manufacture of new keys or cards shall be borne by the
Lessee.

(Compliance with Building Use Guide)

Article 5  If the Lessee prepares a “Building Use Guide” separately from these
Management Rules, the Lessee shall comply with the contents of such guide.

13

 

(Compliance with Cautions)

Article 6  If the Lessor newly provides rules and/or cautions other than these
Management Rules out of the necessity for management of the building and
notifies the Lessee of such rules and/or cautions or posts them at appropriate
places, the Lessee shall comply with such rules and/or cautions.

(Compliance Obligation)

Article 7  The Lessee shall have the obligation to ensure that its employees,
contractors, visitors or other parties involved comply with these Management
Rules.

14

 

(Translation)

SUBLEASE AGREEMENT

Internet Initiative Japan, Inc. (“IIJ”) and IIJ Technology Inc. (“IIJT”) hereby
enter into the agreement on sublease of certain portions of the leased premises
in Jinbocho Mitsui Building (the “Building”) leased out to IIJ by Mitsui
Fudosan Co., Ltd. (“Mitsui Fudosan”) as follows:

(Objective)

Article 1  Having obtained Mitsui Fudosan’s consent, IIJ shall sublease to
IIJT, and IIJT shall sublease from IIJ, the portions of IIJ’s leased premises
as indicated in the Exhibit (“Subleased Premises”).

(Purpose)

Article 2  IIJT shall use the Subleased Premises for office space only and not
for any other purposes.

(Sublease Term)

Article 3  The sublease term shall be from March 15, 2003 to March 14, 2006.
IIJT may not cancel this Agreement prior to the expiration of the said term.

2.  In the absence of refusal of renewal in writing by either party hereto to
the other at least six (6) months prior to the expiration of the sublease term,
this Agreement shall be renewed for a further two (2) years on the same terms
and conditions (“Renewed Term”), and the same shall also apply thereafter.

(Cancellation during Renewed Term)

Article 4  During any Renewed Term, IIJ may cancel this Agreement by giving
IIJT twelve (12) months’ written notice.

2.  Instead of giving notice as stipulated in the previous Paragraph, IIJT may
cancel this Agreement immediately by paying an amount equal to the rent and
common-area charge for the twelve (12) months following the month to which the
date of surrender belongs, in addition to paying the rent and common-area charge for the month to which the date of surrender belongs
pursuant to Article 5 Paragraph 1 and Article 6.

 

 

(Rent and Charges)

Article 5  IIJT shall transmit an amount equal to the rent and common-area
charge for the following month as specified in the Exhibit to IIJ’s bank
account designated by IIJ no later than the final day of each month. For the
avoidance of doubt, the amounts of the rent and common-area charge for any
period less than one month shall be those for one month, and if the rent,
common-area charge or any other charge is changed during a month, the relevant
rent or charge shall be calculated on a daily basis.

2.  If during the term of this Agreement there is any increase in the rent and
common-area charge under the Lease Agreement dated March 14, 2003 entered into
between IIJ and Mitsui Fudosan (“Original Lease Agreement”), IIJ may increase
the rent and common-area charge hereunder in proportion to the rate of the
aforementioned increase by giving notice to IIJT.

3.  The rent and common-area charge may be increased by consultation between the
parties hereto during the term of this Agreement when they are considered
unreasonable in light of the situation arising from changes in prices, an
increase in taxes and public charges imposed on the land and building or any
other changes in the general economic situation.

4.  IIJT shall bear, in addition to the common-area charge, all costs and
expenses for the refreshment corner, installation of facilities, cleaning
service, electricity and extra hours air-conditioning arising in relation to
the use of the Subleased Premises (“Additional Charges”).

5.  IIJT shall pay IIJ, in addition to all costs, expenses and charges
stipulated in Paragraphs 1 and 4 above, an amount equal to the interest on the
security deposit deposited to Mitsui Fudosan for the area of sublease in
question separately designated by IIJ, as the management fee no later than the
final day of each month.

2

 

6.  Notwithstanding the provisions of Paragraphs 1 through 5 above, the sum of
the rent and common-area charge for the Subleased Premises for the period from
March 15, 2003 to July 14, 2003 shall be calculated based on the unit price of
¥1,500 /m2  • month (exclusive of consumption tax).

(Consumption Tax)

Article 6  Of all amounts of items of the rent, common-area charge, Additional
Charges and management fee stipulated herein, those subject to consumption tax
shall not include the amount of the relevant consumption tax, and IIJT shall
pay IIJ all such amounts plus the amounts of the relevant consumption tax
pursuant to Article 5 Paragraph 1.

(Prohibited Activities)

Article 7  IIJT shall not undertake the following actions:

(1)  To assign, or provide as security, the tenancy;

(2)  To sublease to a third party, or to allow a third party to use, all or part
of the Subleased Premises;

(3)  To allow a third party to live with IIJT in the Subleased Premises, or to
display the name of residents other than IIJT, without IIJ’s prior written
consent;

(4)  To undertake any action that will be a nuisance to IIJ or any third party,
or any other action that may cause damage to the building including the
Subleased Premises;

(5)  To modify any fixture in the Subleased Premises, or to install in or bring
into the Subleased Premises any heavy or dangerous object, etc. that will cause
trouble in the preservation of the Subleased Premises, without permission; and

(6)  To breach any of the House Rules mentioned in Article 15 hereof.

(Notice of Changes in Registered Matters)

Article 8  If there is any material change in IIJT’s address, trade name,
representative, business purposes, capital amount or any other matter
registered in its commercial register, or in its status, or if IIJT intends to
change the items or form of its business, IIJT shall give IIJ written notice
without delay. The same shall apply if IIJT’s representative changes his/her
name or address.

3

 

(Allocation of Repair Expenses, etc.)

Article 9  Upon discovery of any part requiring repair in the skeleton of the
building or facilities attached thereto, IIJT shall give notice to IIJ
promptly.

2.  IIJT shall bear all costs and expenses for repairs (including repainting) of
walls, ceilings, floors and so forth and electricity (including light bulbs and
fluorescent lamps) within the Subleased Premises; provided, however, that any repairs the expenses for which are borne
by IIJT shall be made after consultation with IIJ.

(Change in the Original Condition)

Article 10  If IIJT intends to introduce, remove, modify or partition any
fixtures or facilities or otherwise change the original condition of the
Subleased Premises, any such change shall not be started without giving written
notice to IIJ and obtaining IIJ’s written consent, and all costs and expenses
required for such change shall be borne by IIJT.

2.  If IIJT intends to carry out any of the works mentioned in the previous
Paragraph, it shall notify IIJ of the details, methods and so forth on the
relevant work previously in writing and shall obtain IIJ’s consent on each
occasion.

3.  IIJT shall bear all taxes and public charges imposed on the property
attached to the Subleased Premises with IIJ’s consent and all costs and
expenses for repairs of such property.

(Designated Contractors)

Article 11  If any work for changing the original condition mentioned in the
previous Article or any work for restoring the original condition mentioned in
Article 18 hereof is considered to affect the structure, skeleton and attached
facilities of the Building, IIJT shall contract out such work to a contractor
who satisfies the requirements designated by IIJ and Mitsui Fudosan and for
whom IIJ and Mitsui Fudosan give their consent.

4

 

(Compensation for Damage)

Article 12  If IIJT or its agents, employees, contractors or other parties
involved causes any damage to IIJ, Mitsui Fudosan or any other third party due
to intentional conduct or negligence, IIJT shall compensate for all such
damage.

(Release of Liability)

Article 13  IIJ shall not be liable for any damage incurred by IIJT due to
breakdown of the electricity or water supply system, air-conditioning system,
elevators or any other facilities occurring despite IIJ’s ordinary care in
maintenance and management, or due to natural disasters such as
earthquake, fire or flood, or theft or any other reasons not attributable to
IIJ.

2.  Any damage caused by IIJT to any other lessee or that caused by any other
lessee to IIJT shall be dealt with and settled on IIJT’s own responsibility and
at its expense without causing IIJ any trouble.

3.  Any repair or renovation or so forth of the Building by Mitsui Fudosan or
IIJ must be preceded by written notice to and consultation with IIJT on the
time and date and the extent of the relevant work; provided, however, that the
foregoing shall not apply in case of emergency.

4.  Where the previous Paragraph applies, Mitsui Fudosan or IIJ, as the case may
be, shall not be liable to IIJT for compensation for its damage.

(On-site Inspection)

Article 14  Mitsui Fudosan or IIJ, or their agents or employees (including
cleaners, contractors and temporary employees) shall be entitled to enter into
the Subleased Premises for inspection and take appropriate measures, upon
notifying IIJT thereof in advance, when such action is necessary for the
maintenance, sanitation, crime prevention, fire prevention or rescue activities
of the building or for any other management of the building; provided, however,
that such inspection, etc. may be performed without notifying IIJT in advance
of such actions when IIJ cannot do so for such reasons as emergencies. In such
case, IIJ shall notify IIJT thereof promptly after the inspection.

2.  Where the previous Paragraph applies, IIJT shall cooperate in measures taken
by Mitsui Fudosan and IIJ.

5

 

(House Rules)

Article 15  IIJT shall comply with the House Rules of the Building separately
specified by Mitsui Fudosan.

(Extinguishment of Agreement)

Article 16  If all or part of the building is destroyed or damaged due to
natural disasters or any other force majeure event and it becomes impossible to
use the Subleased Premises, this Agreement shall be terminated automatically.

(Cancellation of Agreement)

Article 17  IIJ may immediately cancel this Agreement without any notice upon
the occurrence to IIJT of any event falling under any of the following items,
in which case if IIJ suffers any damage, it may claim compensation for such
damage against IIJT:

(1)  When IIJT has failed to pay the rent or any other liabilities for two (2)
months or more;

(2)  When IIJT has used the Subleased Premises for any purpose other than that
stipulated in Paragraph 2 hereof;

(3)  When IIJT has breached any provisions of Article 7 hereof;

(4)  When IIJT has significantly obstructed the possession and use by any other
lessee;

(5)  When IIJT is subject to a declaration or so forth of provisional
attachment, provisional disposition, compulsory execution, bankruptcy, civil
rehabilitation procedures, corporate arrangement, corporate reorganization or
dissolution;

(6)  When IIJT has breached any law or regulation, engaged in any business
against public policy, or otherwise involved in any event resulting in
significant damage to IIJT’s credibility;

6

 

(7)  When IIJT has not used the Subleased Premises for a period longer than
one (1) month without IIJ’s consent;

(8)  When IIJT is subject to suspension of business transactions with banks; and

(9)  When IIJT has breached any provision of this Agreement or any other
agreement entered into together with this Agreement.

(Restoration of Original Condition)

Article 18  IIJT shall, by the time of the termination of this Agreement,
remove at its own expense all fixtures and other facilities and IIJT’s property
installed by IIJT in the Subleased Premises and, upon request by IIJ, remove at
IIJT’s expense all property installed by IIJ or Mitsui Fudosan at IIJT’s
request, repair at IIJT’s expense all damaged parts of the Subleased Premises
and facilities attached thereto and fixtures therein and restore the Subleased
Premises to their original condition at IIJT’s expense prior to the surrender
thereof. In this case, if IIJT fails to take measures to restore the Subleased
Premises to their original condition without delay, IIJ may take measures to
restore the Subleased Premises to their original condition at IIJT’s expense,
and IIJT shall not object to it. The period required for restoring the
Subleased Premises to their original condition shall be included in the
Subleased Term, and IIJT shall pay the rent and common-area charge and so forth
for such period.
In addition, for the purpose of this Agreement, the “original condition” shall
mean the condition at the time of delivery of the property in question to IIJ
under the Original Lease Agreement.

2.  Following the termination of this Agreement, if there is any property left
in the Subleased Premises after the surrender thereof by IIJT, its ownership of
such property shall be deemed forfeited, and IIJ and Mitsui Fudosan may dispose
of such property at their discretion without informing IIJT. In this case,
all costs and expenses required shall be borne by IIJT, which shall not make
any objection to such disposal.

7

 

(Claim for Purchase of Fixtures)

Article 19  Upon surrender of the Subleased Premises, IIJT shall not make any
claim for compensation for necessary expenses and beneficial expenses spent on
the Subleased Premises, its fixtures and facilities or any claim for the
payment of moving expense, vacation expense, a premium or any similar items,
for whatever reasons or under whatever name, nor shall it make any claim
against IIJ and Mitsui Fudosan for the purchase of fixtures, facilities and so
forth installed in the Subleased Premises at IIJT’s expense.

(Delinquency Charges)

Article 20  In the event that IIJT fails to pay the rent, common-area charge or
any other money to be paid to IIJ by the relevant due date, the delayed payment
must be accompanied by the payment of delinquency charges at the rate of 18.25%
per annum for the period from the day immediately following the relevant due
date to the date of completion of the payment.

2.  If IIJT fails to vacate the Subleased Premises at the same time as the
termination of this Agreement, IIJT shall pay IIJ an amount twice the amount of
all relevant charges and expenses, including the rent and common-area charge,
for the period from the day immediately following the termination date of this
Agreement to the date of completion of the vacation, and if such delayed
vacation causes any damage to IIJ or Mitsui Fudosan, IIJT shall compensate for
such damage.

(Lessee’s Duty of Care of Good Manager)

Article 21  IIJ shall have no liability for the management of security in the
Subleased Premises, and IIJT shall maintain and use the said Premises with a
care of a good manager and undertake fire
prevention, crime prevention and the clean-up of the environs.

2.  IIJT shall use common areas in accordance with their usage and shall not
unreasonably occupy any such area or otherwise cause a nuisance to IIJ or any
third party.

3.  If IIJT or its employees or visitors cause damage or otherwise cause losses
to any common area, IIJT shall compensate for all such losses.

8

 

(Court of Jurisdiction)

Article 22  Any dispute arising in relation to any right or obligation arising
from this Agreement shall be submitted to the Tokyo District Court as the court
of exclusive jurisdiction over the first instance of any litigation over such
dispute.

(Special Clause)

Article 23  Notwithstanding the provisions of this Agreement, if IIJ withdraws
from and vacates the premises in question upon termination of the Original
Lease Agreement for whatever reason, this Agreement shall be terminated at the
same time as the termination of the Original Lease Agreement, and IIJT shall
withdraw from the premises in question and vacate them after restoring them to
their original condition immediately following the termination of this
Agreement. In this case, IIJT shall bear all costs and expenses for its
withdrawal from the premises in question and for the restoration of them to
their original condition, all losses arising from such withdrawal and so forth,
and shall not claim against IIJ for the payment of any such costs, expenses,
losses and so forth.

(Matters not Stipulated)

Article 24  If any question arises as to any matter not stipulated in this
Agreement or as to the interpretation of any provision of this Agreement, the
parties hereto shall resolve such question promptly in accordance with laws and
regulations, commercial practice in leased buildings in general and general
practice in real estate transactions, and in compliance with the principles of
good faith and fair dealing.

9

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in duplicate, and one original to be retained by IIJ and IIJT
respectively.

March 14, 2003

	IIJ:	 	Koichi Suzuki, Representative Director

Internet Initiative Japan, Inc.

105, Kanda Jinbocho 1-chome, Chiyoda-ku, Tokyo
	 
	IIJT:	 	Koichi Suzuki, Representative Director

IIJ Technology Inc.

105, Kanda Jinbocho 1-chome, Chiyoda-ku, Tokyo

10

 

EXHIBIT

1.  Description of the Subleased Premises

Jinbocho Mitsui Building, 105, Kanda Jinbocho 1-chome, Chiyoda-ku, Tokyo
(steel-framed, partially reinforced concrete structure)

Office spaces

19th floor:    Subleased floor area        2,352,63 m2

20th floor:    Subleased floor area           948.97 m2

Core leased premises

19th floor:    Subleased floor area             39.86 m2

Refreshment corner

26.97 m2 on the 19th floor

Two fifth (2/5) of 56.32 m2 on the 20th floor

However, the above premises are subleased as is. The floor areas were
calculated from the wall centers.

2.  Rent and Other Charges

(Bases for calculation)

Rent for the office spaces

¥7,865 × 3,301.6 m2 = ¥25,967,084

Common-area charge for the office spaces

¥1,513 × 3,301.6 m2 = ¥4,995,320

Rent for the core leased premises

¥5,052 × 39.86 m2 = ¥201,372

11

 

Common-area charge for the core leased premises

¥1,513 × 39.86 m2 = ¥60,308

Charge for the refreshment corner

¥3,000 × (26.97+56.32 × 2/5) = ¥148,494

Facilities fee

Emergency power generator

¥260,000 × 9/38 = ¥61,578

Management fee

¥31,224,084 × 12 months × 0.03 ÷ 12 = ¥936,722

12

 

Management Rules

(Matters to be Reported)

Article 1  The Lessee shall give the following reports to the Lessor upon
moving in using the form designated by the Lessor. In addition, if there is
any change in any of the matters reported, the Lessee shall promptly give the
Lessor notice of change.

(1)  Report of appointment of fire prevention managers

(2)  Report of emergency contact details

(3)  Report of appointment of key handlers

(Prohibited Matters)

Article 2  The Lessee shall not undertake the following actions in the Building:

(1)  To bring into or house in the Building any explosive or ignitable objects
or other dangerous objects, unsanitary objects, or objects emitting loud noises
or bad odor;

(2)  To bring into and keep in the Building any animals and so forth;

(3)  To smoke in non-smoking areas;

(4)  To discard or leave cigarette butts, waste paper, garbage or similar
objects in any place other than the places designated by the Lessor;

(5)  To use open fire (electric heaters, oil heaters, electric radiators and so
forth) in the Building;

(6)  To prevent business or work of any other party;

(7)  To lodge in the Building;

(8)  To cook in the Building;

(9)  To place any cars, bicycles or so forth in any place other than the
place(s) designated by the Lessor;

(10)  To go out on the roof at times other than emergencies;

(11)  To open any smoke exhaust in situations other than fires;

(12)  To leave the Premises without putting out lights;

(13)  To leave the Premises without locking all windows and doors;

(14)  To leave the Premises before the security goes on duty;

13

 

(15)  To leave the Premises without turning off electric appliances or otherwise
without taking hazard prevention measures;

(16)  To leave any objects or install or post any signboards, advertisements,
bulletin boards, photographs or so forth in any place other than the Leased Premises

(17)  To install or post any signboards, advertisements, bulletin boards,
photographs or so forth on any window panes (except the show windows and so
forth approved by the Lessor) in the Leased Premises; and

(18)  To violate any matter notified to the Lessee by the Lessor out of the
necessity for the maintenance of safety and appearance of the Building or the
maintenance and operation of the Building.

2.  The Lessee shall not leave the Leased Premises unused for a period longer
than two (2) months without the Lessor’s prior written approval.

(Bringing in of Heavy Objects)

Article 3  If the Lessee intends to bring any heavy object into the Building,
the Lessee shall obtain Lessor’s prior written consent.

(Handling of Keys and Cards)

Article 4  If the Lessee wishes to obtain copies of keys or cards leased out by
the Lessor, the Lessee shall lease such copies from the Lessor and shall not
allow any party other than the Lessor to copy such keys or cards.

2.  All costs and expenses for the manufacture of the copies mentioned in the
previous Paragraph shall be borne by the Lessee.

3.  If the Lessee loses any key or card leased out by the Lessor, the Lessee
shall immediately submit a loss report to the Lessor.

4.  Where the previous Paragraph applies, all costs and expenses for the
exchange of keys and the manufacture of new keys or cards shall be borne by the
Lessee.

14

 

(Compliance with Building Use Guide)

Article 5  If the Lessee prepares a “Building Use Guide” separately from these
Management Rules, the Lessee shall comply with the contents of such guide.

(Compliance with Cautions)

Article 6  If the Lessor newly provides rules and/or cautions other than these
Management Rules out of the necessity for management of the building and
notifies the Lessee of such rules and/or cautions or posts them at appropriate
places, the Lessee shall comply with such rules and/or cautions.

(Compliance Obligation)

Article 7  The Lessee shall have the obligation to ensure that its employees,
contractors, visitors or other parties involved comply with these Management
Rules.

15

 

(Translation)

AGREEMENT

NET CARE, INC (hereinafter the “Lessee”) and INTERNET INITIATIVE JAPAN INC.
(hereinafter the “Lessor”) hereby enter into this agreement (hereinafter this
“Agreement”) with regard to authorizing the Lessee to use a certain portion of
the Lessor’s office space as follows:

Article 1 (Purpose)

The purpose of this Agreement shall be to provide for basic matters with
regard to the use by the Lessee of a certain portion of the Lessor’s office
space described in the Exhibit 1 (hereinafter the “Service Space”), for the
Lessee to perform the operations delegated by the Lessor, etc.

Article 2 (Service Space)

Description of the Service Space used by the Lessee shall be set forth in the
Exhibit 1.

Article 3 (Service Period)

	(1)	 	“Service Period” of the Service Space by the Lessee shall be from March
15, 2003 to March 14, 2006; provided, however, if neither the Lessee nor
the Lessor express any intention with regard to the expiration of the
Service Period at least one (1) month prior to the expiration thereof,
this Agreement, under the same terms as those existing in the previous
terms, shall be renewed automatically for another year, calculating from
the immediately following day of the expiration date of the Service
Period, and the same shall be applicable thereafter.
	 
	(2)	 	Notwithstanding the provision of the preceding paragraph, the Lessee or
the Lessor may terminate this Agreement by a prior notice at least three
(3) months prior to the termination.

Article 4 (Service Charge and Payment)

	(1)	 	Charge for the use of the Service Space in the preceding Article
(hereinafter the “Service Charge”) shall be set forth in the Exhibit 1.

 

 

	(2)	 	If the use of the Service Space starts on a day other than the first
date of a calendar month, or if this Agreement expires or terminates, the
Service Charge for such
month shall be the amount computed subject to a per diem calculation for
the number of days of use.
	 
	(3)	 	The Lessor shall charge the Service Charge, adding applicable
consumption tax thereto, to the Lessee on or prior to the
15th of the
following month by wiring, and the Lessee shall pay the Service Charge by
remitting to the bank account designated by the Lessor not later than the
last day of the month in which the date it received the invoice is
included.
	 
	(4)	 	If the Lessee fails to pay the Service Charge after the due date
notwithstanding a demand by the Lessor, the Lessor may terminate this
Agreement, except if such payment is made within ten (10) days
calculating from the day following the due date.

Article 5 (Change of the Service Charge)

If the Service Charge comes to be deemed inappropriate due to causes based
upon the fluctuation of commodity prices, of tax and public impositions on
land and buildings, or of any other general economic situation, such Service
Charge may be changed upon consultation between the Lessee and the Lessor
during the Service Period.

Article 6 (Assumption of Costs and Expenses)

The Lessee shall assume any and all costs and expenses of electricity,
overtime air-conditioning, cleaning, etc. (hereinafter the “Electricity
Expenses etc.”), in addition to the Service Charge provided for in Article 3 ,
and the provisions of Article 4 and 5 shall apply mutatis mutandis to the
payment of the Electricity Expenses etc.

Article 7 (Duty of Care of a Good Manager)

The Lessee shall use the Service Space with a duty of the care of a good
manager in accordance with this Agreement and the Management Rules in the
Exhibit 2.

2

 

Article 8 (Entry)

The Lessor or its designee may enter the Service Space as may be especially
necessary for fire prevention, structure maintenance and for other
administrative purposes, and the Lessee may not reject the entry by the Lessee
without good cause.

Article 9 (Prohibited Matters)

The Lessee may not engage in the following acts without obtaining a written
approval of the Lessor:

	 	(i)	 	to change specifications and use of the Service Space, or
perform any and all construction and processing;
	 
	 	(ii)	 	to produce or keep any dangerous materials which are
explosive or ignitable;
	 
	 	(iii)	 	to bring in or install large safes or any other heavy and
large loads, except for fixtures;
	 
	 	(iv)	 	to disturb neighbors by making noise or playing music at high
volume;
	 
	 	(v)	 	to leave any objects in common places such as stairways or
passages; and
	 
	 	(vi)	 	to post advertisements including signboards and posters at
common places such as stairways or passages.

Article 10 (Termination of this Agreement)

	(1)	 	If any of the following items occurs to the Lessee or the Lessor, the
due date of any and all liabilities hereunder shall be immediately
accelerated with respect to such party, and this Agreement shall be
terminated;

	 	(i)	 	if there is an attachment, provisional attachment,
provisional injunction, commencement of a petition for auction, an
attachment for preservation due to delinquency in payment of tax or
public imposition, or any other similar disposition against the
party;
	 
	 	(ii)	 	if any petition for bankruptcy, or commencement of civil
rehabilitation, corporate reorganization proceedings, special
liquidation or any other similar proceedings is filed against or by
the party; or
	 
	 	(iii)	 	if the party is subject to a suspension of transaction by
clearinghouse;

3

 

	(2)	 	If any of the following items occurs to the Lessee or the Lessor, the
other party may terminate this Agreement by a written notice. In such
case, the due date of any and all liabilities hereunder shall be
immediately accelerated with respect to the non-terminating party.

	 	(i)	 	if either party violates this Agreement and does not cure
such violation after a written demand with a reasonable amount of
time;
	 
	 	(ii)	 	if either party impairs the other party’s credit, reputation,
trust or profit, etc. by engaging in unfair or illegitimate business
activities, etc.; or
	 
	 	(iii)	 	in addition to the each item of Article 10. Paragraph 1 or
each item of this Article 10. Paragraph 2, if there is any cause to
make the continuance of this Agreement impracticable.

	(3)	 	The Lessor shall not be responsible for any and all damages to the
Lessee arising out of the termination by Article 10. Paragraph 1 and 2 above.

Article 11 (Early Termination Penalty)

If this Agreement terminates prior to the expiration of the Service Period
provided for in Article 3, due to any cause attributable to the Lessee, the
Lessee shall pay to the Lessor the amount equal to the Service Charge for the
month when this Agreement terminates in its entirety.

Article 12 (Change of Name, Etc.)

The Lessee shall promptly file the Lessor by writing, if there is any change
to material matters such as its name or address (including changes due to
corporate merger or corporate division).

Article 13 (Measures after Termination)

	(1)	 	The Lessee shall restore the Service Space to its original condition
and return it to the Lessor, whether due to expiration of the Service
Period , termination, or any other reasons. In addition, any and all
costs related to restoring the Service Space to its original condition
shall be borne by the Lessee.
	 
	(2)	 	If the Lessee does not return the Service Space regardless of the
termination hereof, the Lessee shall pay twice the amount equal to the
Service Charge incurred from the termination date hereof through the
completion of the return.

4

 

Article 14 (Compensation of Damages)

If the Lessee, its agent, its employee or any other related party causes
damages to any third party by willful misconduct or negligence in connection
with this Agreement, the Lessor shall compensate any and all these damages.

Article 15 (Confidentiality)

	(1)	 	The Lessee and the Lessor shall not disclose or divulge any and all
information related to the other party obtained in connection with the
use of the Service Space hereunder, without a prior written approval of
the other party, and shall use due care in preventing the possibility of
divulgence thereof in advance.
	 
	(2)	 	The provision of this Article shall remain effective after the
termination hereof.

Article 16 (Separate Consultation)

Any matters not provided for herein and any ambiguous matters in the
interpretation hereof shall be settled upon consultation between the Lessee
and the Lessor.

Article 17 (Court of Jurisdiction)

The Tokyo District Court shall be the court of jurisdiction for any litigation
as may be necessary in connection with this Agreement.

5

 

IN WITNESS WHEREOF, the Lessee and the Lessor have executed this Agreement in
duplicate by their duly authorized representatives affixing their names and
seals, and each party retains one (1) copy each.

March 14, 2003

	The Lessee:	 	NET CARE, INC.

Koichi Suzuki

[Representative Director]

21, Kanda Jinbo-cho 3-chome, Chiyoda-ku, Tokyo
	 
	The Lessor:	 	INTERNET INITIATIVE JAPAN INC.

Koichi Suzuki

[Representative Director]

13, Kanda Jinbo-cho 3-chome, Chiyoda-ku, Tokyo

6

 

Exhibit 1

	1.	 	The Lessor’s Office Space

17F, Jinbo-cho Mitsui Building, 105, Kanda Jinbo-cho 1-chome,

Chiyoda-ku, Tokyo (steel-framed, partially reinforced concrete
structure)
	 
	2.	 	Service Space

Floor area of 184.09m2 of 17F, Jinbo-cho Mitsui Building,

105, Kanda Jinbo-cho 1-chome, Chiyoda-ku, Tokyo

(steel-framed, partially reinforced concrete structure)

(measured as the area inside the center lines of walls)

(in appropriate current situation)
	 
	3.	 	Service Charge

	 	1)	 	Office Space:

     on or prior to the end of March
2003:   0 yen/month

     on or prior to July 14,
2003:                  276,135 yen/month

     on and after July 15,
2003:                    278,528 yen/month

     (Charges for July 2003 shall be respectively calculated per diem)
	 
	 	2)	 	Refreshment Corner:13,485 yen/month

(Calculation)

	 	1)	 	Office Space:

1,500 yen x 184.09m2 = 276,135 yen

1,513 yen x 184.09m2 = 278,528 yen
	 
	 	2)	 	Refreshment Corner:

3,000 yen x 26.97m2 x 1/6 = 13,485 yen

7

 

Exhibit 2

Management Rules

Article 1 (Matters to be Reported)

Users of the Service Space (hereinafter the “Users”) shall give the following
reports to the provider of the Service Space (hereinafter the “Provider”) upon
moving in using the form designated by the Provider. In addition, if there is
any change in any of the matters reported, the Users shall promptly give the
Provider notice of change.

	 	i)	 	Report of appointment of fire prevention managers
	 
	 	ii)	 	Report of emergency contact details
	 
	 	iii)	 	Report of appointment of key handlers

Article 2 (Prohibited Matters)

	(1)	 	The Users shall not undertake the following actions in the Building:

	 	i)	 	to bring into or house in the Building any explosive or
ignitable objects or other dangerous objects, unsanitary objects, or
objects emitting loud noises or bad odor;
	 
	 	ii)	 	to bring into and keep in the Building any animals and so
forth;
	 
	 	iii)	 	to smoke in non-smoking areas;
	 
	 	iv)	 	to discard or leave cigarette butts, waste paper, garbage or
similar objects in any place other than the places designated by the
Provider;
	 
	 	v)	 	to use open fire (electric heaters, oil heaters, electric
radiators and so forth) in the Building;
	 
	 	vi)	 	to prevent business or work of any other party;
	 
	 	vii)	 	to lodge in the Building;
	 
	 	viii)	 	to cook in the Building;
	 
	 	ix)	 	to place any cars, bicycles or so forth in any place other
than the place(s) designated by the Provider;
	 
	 	x)	 	to go out on the roof at times other than emergencies;
	 
	 	xi)	 	to open any smoke exhaust in situations other than fires;
	 
	 	xii)	 	to leave the Service Space without putting out lights;
	 
	 	xiii)	 	to leave the Service Space without locking all windows and doors;
	 
	 	xiv)	 	to leave the Service Space before the security service goes on duty;
	 
	 	xv)	 	to leave the Service Space without turning off electric
appliances or otherwise without taking hazard prevention measures;

8

 

	 	xvi)	 	to leave any objects, or install or post any signboards,
advertisements, bulletin boards, photographs or so forth in any
place other than the Service Space; and
	 
	 	xvii)	 	to install or post any signboards, advertisements, bulletin
boards, photographs or so forth on any window panes (except the show
windows and so forth approved by the Provider) in the Service Space,
and to violate any matter notified to the Users by the Provider out
of the necessity for the maintenance of safety and appearance of the
Building or the maintenance and operation of the Building.

	(2)	 	The Users shall not leave the Service Space unused for a period longer
than two (2) months without the Provider’s prior written approval.

Article 3 (Bringing in of Heavy Objects)

If the Users intend to bring any heavy object into the Building, the Users
shall obtain the Provider’s prior written consent.

Article 4 (Handling of Keys and Cards)

	(1)	 	If the Users wish to obtain copies of keys or cards leased out by the
Provider, the Users shall lease such copies from the Provider and shall
not allow any party other than the Provider to copy such keys or cards.
	 
	(2)	 	All costs and expenses for the manufacture of the copies mentioned in
the previous paragraph shall be borne by the Users.
	 
	(3)	 	If the Users lose any key or card leased out by the Provider, the Users
shall immediately submit a loss report to the Provider.
	 
	(4)	 	Where the previous paragraph applies, all costs and expenses for the
exchange of keys and the manufacture of new keys or cards shall be borne
by the Users.

Article 5 (Compliance with Building Use Guide)

If the User prepares a “Building Use Guide” separately from these Management
Rules, the Users shall comply with the contents of such guide.

Article 6 (Compliance with Cautions)

If the User newly provides rules and/or cautions other than these Management
Rules out of the necessity for management of the building and notifies the
Users of such rules and/or cautions or posts them at appropriate places, the
Users shall comply with such rules and/or cautions.

Article 7 (Compliance Obligation)

The Users shall have the obligation to ensure that its employees, contractors,
visitors or other parties involved comply with these Management Rules.

9

 

(Translation)

SUBLEASE AGREEMENT

Internet Initiative Japan, Inc. (“IIJ”) and IIJ Media Communications Inc.
(“IIJMC”) hereby enter into the agreement on sublease of certain portions of
the leased premises in Jinbocho Mitsui Building (the “Building”) leased out to
IIJ by Mitsui Fudosan Co., Ltd. (“Mitsui Fudosan”) as follows:

(Objective)

Article 1    Having obtained Mitsui Fudosan’s consent, IIJ shall sublease to
IIJMC, and IIJMC shall sublease from IIJ, the portions of IIJ’s leased premises
as indicated in the Exhibit (“Subleased Premises”).

(Purpose)

Article 2    IIJMC shall use the Subleased Premises for office space only and not
for any other purposes.

(Sublease Term)

Article 3    The sublease term shall be from March 15, 2003 to March 14, 2006.
IIJMC may not cancel this Agreement prior to the expiration of the said term.

2.     In the absence of refusal of renewal in writing by either party hereto to
the other at least six (6) months prior to the expiration of the sublease term,
this Agreement shall be renewed for a further two (2) years on the same terms
and conditions (“Renewed Term”), and the same shall also apply thereafter.

(Cancellation during Renewed Term)

Article 4     During any Renewed Term, IIJ may cancel this Agreement by giving
IIJMC twelve (12) months’ written notice.

2.     Instead of giving notice as stipulated in the previous Paragraph, IIJMC may
cancel this Agreement immediately by paying an amount equal to the rent and
common-area charge for the twelve (12) months following the month to which the
date of surrender belongs, in addition to paying the rent and common-area
charge for the month to which the date of surrender belongs pursuant to Article
5 Paragraph 1 and Article 6.

 

 

(Rent and Charges)

Article 5   IIJMC shall transmit an amount equal to the rent and common-area
charge for the following month as specified in the Exhibit to IIJ’s bank
account designated by IIJ no later than the final day of each month. For the
avoidance of doubt, the amounts of the rent and common-area charge for any
period less than one month shall be those for one month, and if the rent,
common-area charge or any other charge is changed during a month, the relevant
rent or charge shall be calculated on a daily basis.

2.     If during the term of this Agreement there is any increase in the rent and
common-area charge under the Lease Agreement dated March 14, 2003 entered into
between IIJ and Mitsui Fudosan (“Original Lease Agreement”), IIJ may increase
the rent and common-area charge hereunder in proportion to the rate of the
aforementioned increase by giving notice to IIJMC.

3.     The rent and common-area charge may be increased by consultation between the
parties hereto during the term of this Agreement when they are considered
unreasonable in light of the situation arising from changes in prices, an
increase in taxes and public charges imposed on the land and building or any
other changes in the general economic situation.

4.     IIJMC shall bear, in addition to the common-area charge, all costs and
expenses for the refreshment corner, installation of facilities, cleaning
service, electricity and extra hours air-conditioning arising in relation to
the use of the Subleased Premises (“Additional Charges”).

5.     IIJMC shall pay IIJ, in addition to all costs, expenses and charges
stipulated in Paragraphs 1 and 4 above, an amount equal to the interest on the
security deposit deposited to Mitsui Fudosan for the area of sublease in
question separately designated by IIJ, as the management fee no later than the
final day of each month.

2

 

6.     Notwithstanding the provisions of Paragraphs 1 through 5 above, the sum of
the rent and common-area charge for the Subleased Premises for the period from
March 15, 2003 to July 14, 2003 shall be calculated based on the unit price of
¥1,500 /m2 • month (exclusive of consumption tax).

(Consumption Tax)

Article 6   Of all amounts of items of the rent, common-area charge, Additional
Charges and management fee stipulated herein, those subject to consumption tax
shall not include the amount of the relevant consumption tax, and IIJMC shall
pay IIJ all such amounts plus the amounts of the relevant consumption tax
pursuant to Article 5 Paragraph 1.

(Prohibited Activities)

Article 7   IIJMC shall not undertake the following actions:

(1)  To assign, or provide as security, the tenancy;

(2)  To sublease to a third party, or to allow a third party to use, all or part
of the Subleased Premises;

(3)  To allow a third party to live with IIJMC in the Subleased Premises, or to
display the name of residents other than IIJMC, without IIJ’s prior written
consent;

(4)  To undertake any action that will be a nuisance to IIJ or any third party,
or any other action that may cause damage to the building including the
Subleased Premises;

(5)  To modify any fixture in the Subleased Premises, or to install in or bring
into the Subleased Premises any heavy or dangerous object, etc. that will cause
trouble in the preservation of the Subleased Premises, without permission; and

(6)  To breach any of the House Rules mentioned in Article 15 hereof.

(Notice of Changes in Registered Matters)

Article 8   If there is any material change in IIJMC’s address, trade name,
representative, business purposes, capital amount or any other matter
registered in its commercial register, or in its status, or if IIJMC intends to
change the items or form of its business, IIJMC shall give IIJ written notice
without delay. The same shall apply if IIJMC’s representative changes his/her
name or address.

3

 

(Allocation of Repair Expenses, etc.)

Article 9   Upon discovery of any part requiring repair in the skeleton of the
building or facilities attached thereto, IIJMC shall give notice to IIJ
promptly.

2.     IIJMC shall bear all costs and expenses for repairs (including repainting)
of walls, ceilings, floors and so forth and electricity (including light bulbs
and fluorescent lamps) within the Subleased Premises; provided, however, that
any repairs the expenses for which are borne by IIJMC shall be made after
consultation with IIJ.

(Change in the Original Condition)

Article 10 If IIJMC intends to introduce, remove, modify or partition any
fixtures or facilities or otherwise change the original condition of the
Subleased Premises, any such change shall not be started without giving written
notice to IIJ and obtaining IIJ’s written consent, and all costs and expenses
required for such change shall be borne by IIJMC.

2.     If IIJMC intends to carry out any of the works mentioned in the previous
Paragraph, it shall notify IIJ of the details, methods and so forth on the
relevant work previously in writing and shall obtain IIJ’s consent on each
occasion.

3.     IIJMC shall bear all taxes and public charges imposed on the property
attached to the Subleased Premises with IIJ’s consent and all costs and
expenses for repairs of such property.

(Designated Contractors)

Article 11 If any work for changing the original condition mentioned in the
previous Article or any work for restoring the original condition mentioned in
Article 18 hereof is considered to affect the structure, skeleton and attached
facilities of the Building, IIJMC shall contract out such work to a contractor
who satisfies the requirements designated by IIJ and Mitsui Fudosan and for
whom IIJ and Mitsui Fudosan give their consent.

4

 

(Compensation for Damage)

Article 12   If IIJMC or its agents, employees, contractors or other parties
involved causes any damage to IIJ, Mitsui Fudosan or any other third party due
to intentional conduct or negligence, IIJMC shall compensate for all such
damage.

(Release of Liability)

Article 13   IIJ shall not be liable for any damage incurred by IIJMC due to
breakdown of the electricity or water supply system, air-conditioning system,
elevators or any other facilities occurring despite IIJ’s ordinary care in
maintenance and management, or due to natural disasters such as earthquake,
fire or flood, or theft or any other reasons not attributable to IIJ.

2.     Any damage caused by IIJMC to any other lessee or that caused by any other
lessee to IIJMC shall be dealt with and settled on IIJMC’s own responsibility
and at its expense without causing IIJ any trouble.

3.     Any repair or renovation or so forth of the Building by Mitsui Fudosan or
IIJ must be preceded by written notice to and consultation with IIJMC on the
time and date and the extent of the relevant work; provided, however, that the
foregoing shall not apply in case of emergency.

4.     Where the previous Paragraph applies, Mitsui Fudosan or IIJ, as the case may
be, shall not be liable to IIJMC for compensation for its damage.

(On-site Inspection)

Article 14   Mitsui Fudosan or IIJ, or their agents or employees (including
cleaners, contractors and temporary employees) shall be entitled to enter into
the Subleased Premises for inspection and take appropriate measures, upon
notifying IIJMC thereof in advance, when such action is necessary for the
maintenance, sanitation, crime prevention, fire prevention or rescue activities
of the building or for any other management of the building; provided, however,
that such inspection, etc. may be performed without notifying IIJMC in advance
of such actions when IIJ cannot do so for such reasons as emergencies. In such
case, IIJ shall notify IIJMC thereof promptly after the inspection.

2.     Where the previous Paragraph applies, IIJMC shall cooperate in measures
taken by Mitsui Fudosan and IIJ.

5

 

(House Rules)

Article 15   IIJMC shall comply with the House Rules of the Building separately
specified by Mitsui Fudosan.

(Extinguishment of Agreement)

Article 16   If all or part of the building is destroyed or damaged due to
natural disasters or any other force majeure event and it becomes impossible to
use the Subleased Premises, this Agreement shall be terminated automatically.

(Cancellation of Agreement)

Article 17   IIJ may immediately cancel this Agreement without any notice upon
the occurrence to IIJMC of any event falling under any of the following items,
in which case if IIJ suffers any damage, it may claim compensation for such
damage against IIJMC:

(1)  When IIJMC has failed to pay the rent or any other liabilities for two (2)
months or more;

(2)  When IIJMC has used the Subleased Premises for any purpose other than that
stipulated in Paragraph 2 hereof;

(3)  When IIJMC has breached any provisions of Article 7 hereof;

(4)  When IIJMC has significantly obstructed the possession and use by any other
lessee;

(5)  When IIJMC is subject to a declaration or so forth of provisional
attachment, provisional disposition, compulsory execution, bankruptcy, civil
rehabilitation procedures, corporate arrangement, corporate reorganization or
dissolution;

6

 

(6)  When IIJMC has breached any law or regulation, engaged in any business
against public policy, or otherwise involved in any event resulting in
significant damage to IIJMC’s credibility;

(7)  When IIJMC has not used the Subleased Premises for a period longer than
one (1) month without IIJ’s consent;

(8)  When IIJMC is subject to suspension of business transactions with banks;
and

(9)  When IIJMC has breached any provision of this Agreement or any other
agreement entered into together with this Agreement.

(Restoration of Original Condition)

Article 18   IIJMC shall, by the time of the termination of this Agreement,
remove at its own expense all fixtures and other facilities and IIJMC’s
property installed by IIJMC in the Subleased Premises and, upon request by IIJ,
remove at IIJMC’s expense all property installed by IIJ or Mitsui Fudosan at
IIJMC’s request, repair at IIJMC’s expense all damaged parts of the Subleased
Premises and facilities attached thereto and fixtures therein and restore the
Subleased Premises to their original condition at IIJMC’s expense prior to the
surrender thereof. In this case, if IIJMC fails to take measures to restore
the Subleased Premises to their original condition without delay, IIJ may take
measures to restore the Subleased Premises to their original condition at
IIJMC’s expense, and IIJMC shall not object to it. The period required for
restoring the Subleased Premises to their original condition shall be included
in the Subleased Term, and IIJMC shall pay the rent and common-area charge and
so forth for such period. In addition, for the purpose of this Agreement, the
“original condition” shall mean the condition at the time of delivery of the
property in question to IIJ under the Original Lease Agreement.

2.     Following the termination of this Agreement, if there is any property left
in the Subleased Premises after the surrender thereof by IIJMC, its ownership
of such property shall be deemed forfeited, and IIJ and Mitsui Fudosan may
dispose of such property at their discretion without informing IIJMC. In this
case, all costs and expenses required shall be borne by IIJMC, which shall not
make any objection to such disposal.

7

 

(Claim for Purchase of Fixtures)

Article 19   Upon surrender of the Subleased Premises, IIJMC shall not make any
claim for compensation for necessary expenses and beneficial expenses spent on
the Subleased Premises, its fixtures and facilities or any claim for the
payment of moving expense, vacation expense, a premium or any similar items,
for whatever reasons or under whatever name, nor shall it make any claim
against IIJ and Mitsui Fudosan for the purchase of fixtures, facilities and so
forth installed in the Subleased Premises at IIJMC’s expense.

(Delinquency Charges)

Article 20   In the event that IIJMC fails to pay the rent, common-area charge
or any other money to be paid to IIJ by the relevant due date, the delayed
payment must be accompanied by the payment of delinquency charges at the rate
of 18.25% per annum for the period from the day immediately following the
relevant due date to the date of completion of the payment.

2.     If IIJMC fails to vacate the Subleased Premises at the same time as the
termination of this Agreement, IIJMC shall pay IIJ an amount twice the amount
of all relevant charges and expenses, including the rent and common-area
charge, for the period from the day immediately following the termination date
of this Agreement to the date of completion of the vacation, and if such
delayed vacation causes any damage to IIJ or Mitsui Fudosan, IIJMC shall
compensate for such damage.

(Lessee’s Duty of Care of Good Manager)

Article 21   IIJ shall have no liability for the management of security in the
Subleased Premises, and IIJMC shall maintain and use the said Premises with a
care of a good manager and undertake fire prevention, crime prevention and the
clean-up of the environs.

8

 

2.     IIJMC shall use common areas in accordance with their usage and shall not
unreasonably occupy any such area or otherwise cause a nuisance to IIJ or any
third party.

3.     If IIJMC or its employees or visitors cause damage or otherwise cause losses
to any common area, IIJMC shall compensate for all such losses.

(Court of Jurisdiction)

Article 22   Any dispute arising in relation to any right or obligation arising
from this Agreement shall be submitted to the Tokyo District Court as the court
of exclusive jurisdiction over the first instance of any litigation over such
dispute.

(Special Clause)

Article 23   Notwithstanding the provisions of this Agreement, if IIJ withdraws
from and vacates the premises in question upon termination of the Original
Lease Agreement for whatever reason, this Agreement shall be terminated at the
same time as the termination of the Original Lease Agreement, and IIJMC shall
withdraw from the premises in question and vacate them after restoring them to
their original condition immediately following the termination of this
Agreement. In this case, IIJMC shall bear all costs and expenses for its
withdrawal from the premises in question and for the restoration of them to
their original condition, all losses arising from such withdrawal and so forth,
and shall not claim against IIJ for the payment of any such costs, expenses,
losses and so forth.

(Matters not Stipulated)

Article 24   If any question arises as to any matter not stipulated in this
Agreement or as to the interpretation of any provision of this Agreement, the
parties hereto shall resolve such question promptly in accordance with laws and
regulations, commercial practice in leased buildings in general and general
practice in real estate transactions, and in compliance with the principles of
good faith and fair dealing.

9

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in duplicate, and one original to be retained by IIJ and IIJMC
respectively.

March 14, 2003

	 	 	 
	IIJ:	 	
Koichi Suzuki, Representative Director

Internet Initiative Japan, Inc.

105, Kanda Jinbocho 1-chome, Chiyoda-ku, Tokyo
	 	 	 
	IIJMC:	 	
Koichi Suzuki, Representative Director

IIJ Media Communications Inc.

105, Kanda Jinbocho 1-chome, Chiyoda-ku, Tokyo

10

 

EXHIBIT

1. Description of the Subleased Premises

Subleased floor area of 416.04 m2 on the 20th floor of Jinbocho Mitsui
Building, 105, Kanda Jinbocho 1-chome, Chiyoda-ku, Tokyo (steel-framed,
partially reinforced concrete structure)

However, the above premises are subleased as is. The floor areas were
calculated from the wall centers.

2. Rent and Other Charges

(Bases for calculation)

Rent

¥7,865 × 416.04 m2 = ¥3,272,154

Common-area charge

¥1,513 × 416.04 m2 = ¥629,468

Charge for the refreshment corner

¥3,000 × 56.32 m2 × 1/5 = ¥33,792

Facilities fee

1) Air conditioner outdoor unit: ¥5,000 × 0.81 m2 = ¥4,050

2) Emergency power generator: ¥260,000 × 2/38 = ¥13,684

Management fee

¥3,901,622 × 12 months × 0.03 ÷ 12 = ¥117,048

11

 

Management Rules

(Matters to be Reported)

Article 1   The Lessee shall give the following reports to the Lessor upon
moving in using the form designated by the Lessor. In addition, if there is
any change in any of the matters reported, the Lessee shall promptly give the
Lessor notice of change.

(1)  Report of appointment of fire prevention managers

(2)  Report of emergency contact details

(3)  Report of appointment of key handlers

(Prohibited Matters)

Article 2   The Lessee shall not undertake the following actions in the
Building:

(1)  To bring into or house in the Building any explosive or ignitable objects
or other dangerous objects, unsanitary objects, or objects emitting loud noises
or bad odor;

(2)  To bring into and keep in the Building any animals and so forth;

(3)  To smoke in non-smoking areas;

(4)  To discard or leave cigarette butts, waste paper, garbage or similar
objects in any place other than the places designated by the Lessor;

(5)  To use open fire (electric heaters, oil heaters, electric radiators and so
forth) in the Building;

(6)  To prevent business or work of any other party;

(7)  To lodge in the Building;

(8)  To cook in the Building;

(9)  To place any cars, bicycles or so forth in any place other than the
place(s) designated by the Lessor;

(10)  To go out on the roof at times other than emergencies;

(11)  To open any smoke exhaust in situations other than fires;

(12)  To leave the Premises without putting out lights;

(13)  To leave the Premises without locking all windows and doors;

(14)  To leave the Premises before the security goes on duty;

12

 

(15)  To leave the Premises without turning off electric appliances or otherwise
without taking hazard prevention measures;

(16)  To leave any objects or install or post any signboards, advertisements,
bulletin boards, photographs or so forth in any place other than the Leased
Premises

(17)  To install or post any signboards, advertisements, bulletin boards,
photographs or so forth on any window panes (except the show windows and so
forth approved by the Lessor) in the Leased Premises; and

(18)  To violate any matter notified to the Lessee by the Lessor out of the
necessity for the maintenance of safety and appearance of the Building or the
maintenance and operation of the Building.

2.     The Lessee shall not leave the Leased Premises unused for a period longer
than two (2) months without the Lessor’s prior written approval.

(Bringing in of Heavy Objects)

Article 3   If the Lessee intends to bring any heavy object into the Building,
the Lessee shall obtain Lessor’s prior written consent.

(Handling of Keys and Cards)

Article 4   If the Lessee wishes to obtain copies of keys or cards leased out by
the Lessor, the Lessee shall lease such copies from the Lessor and shall not
allow any party other than the Lessor to copy such keys or cards.

2.     All costs and expenses for the manufacture of the copies mentioned in the
previous Paragraph shall be borne by the Lessee.

3.     If the Lessee loses any key or card leased out by the Lessor, the Lessee
shall immediately submit a loss report to the Lessor.

4. Where the previous Paragraph applies, all costs and expenses for the
exchange of keys and the manufacture of new keys or cards shall be borne by the
Lessee.

13

 

(Compliance with Building Use Guide)

Article 5   If the Lessee prepares a “Building Use Guide” separately from these
Management Rules, the Lessee shall comply with the contents of such guide.

(Compliance with Cautions)

Article 6   If the Lessor newly provides rules and/or cautions other than these
Management Rules out of the necessity for management of the building and
notifies the Lessee of such rules and/or cautions or posts them at appropriate
places, the Lessee shall comply with such rules and/or cautions.

(Compliance Obligation)

Article 7   The Lessee shall have the obligation to ensure that its employees,
contractors, visitors or other parties involved comply with these Management
Rules.

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00056-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00056-of-00352.parquet"}]]