Document:

exv10w30

exhibit 10.30

STANDARD INDUSTRIAL/COMMERCIAL MULTI-TENANT LEASE

MODIFIED NET

1. Basic Provisions (“Basic Provision”).

     1.1 Parties: This Lease (“Lease”), dated for reference purposes only, September 15, 2008, is
made by and between Fremont Ventures LLC (“Landlord”) and Opnext, Inc. (“Tenant”), (collectively
the “Parties,” or individually a “Party”).

     1.2 (a) Premises: That certain portion of the Building, consisting of approximately 30,574
rentable square feet, including all improvements therein or to be provided by Landlord under the
terms of this Lease, commonly known by the street address of 46429 Landing Parkway, located in the
City of Fremont, County of Alameda, State of California, as outlined on Exhibit A
attached hereto (“Premises”). The “Building” is that certain building containing the Premises and
generally described as a multi tenant R&D Facility. In addition to Tenant’s rights to use and
occupy the Premises as hereinafter specified, Tenant shall have non-exclusive rights to the Common
Areas (as defined in Paragraph 2.7 below) as hereinafter specified, but shall not have any rights
to the roof, exterior walls or utility raceways of the Building or to any other buildings in the
Industrial Center. The Premises, the Building, the Common Areas, the land upon which they are
located, along with all other buildings and improvements thereon, are herein collectively referred
to as the “Industrial Center.” Landlord believes that the Premises contains 30,574 rentable square
feet as determined pursuant to the Standard Method for Measuring Floor Area in Office Buildings
published by the Building Owners and Managers Association International (“BOMA”) as revised and
readopted June 7, 1996 (the “Standard Measure”). Tenant reserves the right to measure the Premises
to confirm that the measurement provided by Landlord is accurate and conforms to the Standard
Measure. Any discrepancy shall be promptly resolved by the parties through good faith negotiations
and, if relevant, all items in this Lease which are based upon the square footage of the Premises
(e.g., Base Rent and Tenant’s Share) shall be promptly adjusted in proportion to the change in
square footage. (Also see Paragraph 2.)

           (b) Parking: 120 unreserved vehicle parking spaces (“Unreserved Parking Spaces”); and no
reserved vehicle parking spaces (“Reserved Parking Spaces”). (Also, see Paragraph 2.6)

     1.3 Term: Five years and -0- months (“Original Term”) commencing on the later of (i) December
1, 2008 or (ii) substantial completion of the Tenant Improvement by Landlord (“Commencement Date”)
and ending November 30, 2013 (“Expiration Date”). (Also Paragraph 3.)

     1.4 Early Possession: Upon completion of TI’s (“Early Possession Date”). (Also Paragraphs 3.2
and 3.3.)

     1.5 Base rent: $27,516.60 per month (“Base Rent”), payable on the first day of each
month commencing December 1, 2008 (Also see Paragraph 4. ) Monthly Base Rent to be adjusted
yearly upwards by 3%.

 

 

     1.6 (a) Base Rent Paid Upon Execution: $27,516 as Base Rent for the period 12-1-08 through
12-31-08.

           (b) Tenant’s Share of Common Area Operating Expenses: 19.67% (“Tenant’s Share”) as determined
by prorata square footage of the Premises as compared to the total square footage of the Building.

     1.7 Security Deposit: $30,970 (“Security Deposit”). (Also see Paragraph 5)

     1.8 Permitted Use: office, R&D, storage and warehousing and other legal related uses
(“Permitted Use”) (Also see Paragraph 5.)

     1.9 Insuring Party. Landlord is the “Insuring Party.” (Also see Paragraph 8)

     1.10 (a) Real Estate Brokers. The following real estate broker(s) (collectively, the
“Brokers”) and brokerage relationships exist in this transaction and are consented to by the
Parties (check applicable boxes):

          o      ***** represents Landlord exclusively (“Landlord’s Broker”);

          o      ***** represents Tenant exclusively (“Tenant’s Broker”); or

          þ      CBRE represents both Landlord and Tenant (“Dual Agency”). (/also see Par. 15.)

          (b) Payment to Brokers. Upon the execution of this Lease by both Parties, Landlord shall pay
to said Broker(s) according to separate written agreement between Landlord and said Broker(s).

     1.11 Guarantor. The obligations of the Tenant under this Lease are to be guaranteed by
***** (“Guarantor”). (Also see Paragraph 37.)

     1.12 Addenda and Exhibits. Attached hereto is an Addendum or Addenda consisting of Exhibits A
and B, C, and D all of which constitute a part of this Lease.

2. Premises, Parking and Common Areas.

     2.1 Letting. Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the
Premises, for the term, at the rental, and upon all of the terms, covenants and conditions set
forth in this Lease. The leaseable area is measured to the outside edge of the outside walls and
drip lines to the centerline of any demising walls, including a pro rata share of the electrical
room and other common spaces. Unless otherwise provided herein, any statement of square footage
set forth in this Lease, or that may have been used in calculating rental and/or Common Area
Operating Expenses, is an approximation which Landlord and Tenant agree is reasonable and the
rental and Tenant’s Share (as defined in Paragraph 1.6(b) based thereon is not subject to revision
whether or not the actual square footage is more or less.

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     2.2 Condition. Landlord shall deliver the Premises to Tenant clean and free of debris on the
Commencement Date and warrants to Tenant that the existing plumbing, electrical systems, fire
sprinkler system, lighting, air conditioning and heating systems and loading doors, if any, in the
Premises, other than those constructed by Tenant, shall be in good operating condition on the
Commencement Date. If a non-compliance with said warranty exists as of the Commencement Date,
Landlord shall, except as otherwise provided in this Lease, promptly after receipt of written
notice from Tenant setting forth with specificity the nature and extent of such non-compliance,
rectify same at Landlord’s expense. If Tenant does not give Landlord written notice of a
non-compliance with this warranty within thirty (30) days after the Commencement Date, correction
of that non-compliance shall be the obligation of Tenant at Tenant’s sole cost and expense.

     2.3 Warranties. Tenant acknowledges that neither landlord nor any of its agents made any
representations or warranties respecting the project, the buildings, or the leased premises, upon
which tenant relied in entering into this lease, which are not expressly set forth in this lease.
Tenant further acknowledges that neither Landlord nor any of its agents made any representations as
to (i) whether the leased premises may be used for tenant’s intended use under existing law or;
(ii) the suitability of the leased premises for the conduct of tenant’s business or; (iii) the
exact square footage of the leased premises; that tenant relied solely upon its own investigations
respecting said premises (including but not limited to the electrical and fire sprinkler systems,
security, environmental aspects, seismic and earthquake requirements, and compliance with the
American with Disabilities Act and applicable zoning, municipal, county, state and federal laws,
ordinances and regulations and any covenants or restrictions of record (collectively, “Applicable
Laws”) and that upon its execution of this lease, accepts the leaseable area as specified herein.
Tenant expressly waives any and all claims for damage by reason of any statement, representation,
warranty, promise or other agreement of landlord or landlord’s agent(s), if any, not contained in
this lease or in any addenda hereto.

     2.4 Tenant as Prior Owner/Occupant. The warranties made by Landlord in this Paragraph 2.2
shall be of no force or effect if immediately prior to the date set forth in Paragraph 1.1 Tenant
was the owner or occupant of the Premises. In such event, Tenant shall, at Tenant’s sole cost and
expense, correct any non-compliance of the Premises with said warranties.

     2.5 Vehicle Parking. Tenant shall be entitled to use the number of Unreserved Parking Spaces
and Reserved Parking Spaces specified in Paragraph 1.2(b) on those portions of the Common Areas
designated from time to time by Landlord for parking. Tenant shall not use more parking spaces
than said number. Said parking spaces shall be used for parking by vehicles no larger than
full-size passenger automobiles or pick-up trucks, herein called “Permitted Size Vehicles.”
Vehicles other than Permitted Size Vehicles shall be parked and loaded or unloaded as directed by
Landlord in the Rules and Regulations (as defined in Paragraph 40) issued by Landlord. (Also see
Paragraph 2.9.)

          (a) Tenant shall not permit or allow any vehicles that belong to or are controlled by Tenant
or Tenant’s employees, suppliers, shippers, customers, contractors or invitees to be loaded,
unloaded, or parked in areas other than those designated by Landlord for such activities.

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          (b) If Tenant permits or allows any of the prohibited activities described in this Paragraph
2.6, then Landlord shall have the right, without notice, in addition to such other rights and
remedies that it may have, to remove or tow away the vehicle involved and charge the cost to
Tenant, which cost shall be immediately payable upon demand by Landlord.

          (c) Landlord shall at the Commencement Date of this Lease, provide the parking facilities
required by Applicable Law.

     2.6 Common Areas — Definition. The term “Common Areas” is defined as all areas and facilities
outside the Premises and within the exterior boundary line of the Industrial Center and Interior
utility raceways within the Premises that are provided and designated by the Landlord from time to
time for the general non-exclusive use of Landlord, Tenant and other tenants of the Industrial
Center and their respective employees, suppliers, shippers, customers, contractors and invitees,
including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways,
parkways, driveways and landscaped areas.

     2.7 Common Areas — Tenant’s Rights. Landlord hereby grants to Tenant, for the benefit of
Tenant and its employees, suppliers, shippers, contractors, customers and invitees, during the term
of this Lease, the non-exclusive right to use, in common with others entitled to such use, the
Common Areas as they exist from time to time, subject to any rights, powers, and privileges
reserved by Landlord under the terms hereof or under the terms of any rules and regulations or
restrictions governing the use of the Industrial Center. Under no circumstances shall the right
herein granted to use the Common Areas be deemed to include the right to store any property,
temporarily or permanently, in the Common Areas. Any such storage shall be permitted only by the
prior written consent of Landlord or Landlord’s designated agent, which consent may be revoked at
any time. In the event that any unauthorized storage shall occur then Landlord shall have the
right, without notice, in addition to such other rights and remedies that it may have, to remove
the property and charge the cost to Tenant, which cost shall be immediately payable upon demand by
Landlord.

     2.8 Common Areas — Rules and Regulations. Landlord or such other person(s) as Landlord may
appoint shall have the exclusive control and management of the Common Areas and shall have the
right, from time to time, to establish, modify, amend and enforce reasonable Rules and Regulations
with respect thereto in accordance with Paragraph 40. Tenant agrees to abide by and conform to all
such Rules and Regulations and to cause its employees, suppliers, shippers, customers, contractors
and invitees to so abide and conform. Landlord shall not be responsible to Tenant for the
non-compliance with said rules and regulations by other tenants of the Industrial Center.

     2.9 Common Areas — Changes. Landlord shall have the right, in Landlord’s sole discretion,
from time to time:

          (a) To make changes to the Common Areas, including, without limitation, changes in the
location, size, shape and number of driveways, entrances, parking spaces, parking areas, loading
and unloading areas, ingress, egress, direction of traffic, landscaped areas, walkways and utility
raceways;

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          (b) To close temporarily any of the Common Areas for maintenance purposes so long as
reasonable access to the Premises remains available;

          (c) To designate other land outside the boundaries of the Industrial Center to be a part of
the Common Areas;

          (d) To add additional buildings and improvements to the Common Areas;

          (e) To use the Common Areas while engaged in making additional improvements, repairs or
alterations to the Industrial Center, or any portion thereof; and

          (f) To do and perform such other acts and make such other changes in, to or with respect to
the Common Areas and Industrial Center as Landlord may, in the exercise of sound business judgment,
deem to be appropriate.

3. Term.

     3.1 Term. The Commencement Date, Expiration Date and Original Term of this Lease are as
specified in Paragraph 1.3.

     3.2 Early Possession. If an Early Possession Date is specified in Paragraph 1.4 and if Tenant
totally or partially occupies the Premises after the Early Possession Date but prior to the
Commencement Date, the obligation to pay Base Rent shall be abated for the period of such early
occupancy. All other terms of this Lease, however, (including but not limited to the obligations
to pay Tenant’s Share of Common Area Operating Expenses and to carry the insurance required by
Paragraph 8) shall be in effect during such period. Any such early possession shall not affect nor
advance the Expiration Date of the Original Term.

     3.3 Delay in Possession. If for any reason Landlord cannot deliver possession of the Premises
to Tenant by the Early Possession Date, if one is specified in Paragraph 1.4, or if no Early
Possession Date is specified, by the Commencement Date, Landlord shall not be subject to any
liability therefor, nor shall such failure affect the validity of this Lease, or the obligations of
Tenant hereunder, or extend the term hereof, but in such case, Tenant shall not, except as
otherwise provided herein, be obligated to pay rent or perform any other obligation of Tenant under
the terms of this Lease until Landlord delivers possession of the Premises to Tenant. If
possession of the Premises is not delivered to Tenant within thirty (30) days after the
Commencement Date, Tenant shall be entitled to one (1) days of rent abatement for each one (1) day
of delay in delivery of the Premises. If possession of the Premises is not delivered within sixty
(60) days after the Commencement Date, Tenant may, at its option, by notice in writing to Landlord
within ten (10) days after the end of sixty (60) day period, cancel this Lease, in which event the
parties shall be discharged from all obligations hereunder; provided further, however, that if such
written notice of Tenant is not received by Landlord within said ten (10) day period, Tenant’s
right to cancel this Lease hereunder shall terminate and be of no further force or effect.

4. Rent.

     4.1 Base Rent. Tenant shall pay Base Rent and other rent or charges, as the same may be
adjusted from time to time, to Landlord in lawful money of the United States, without

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offset or deduction, on or before the 1st day of each month. Base Rent and all other rent and
charges for any period during the term hereof which is for less than one full month shall be
prorated based upon the actual number of days of the month involved. Payment of Base Rent and
other charges shall be made to Landlord at its address stated herein or to such other persons or at
such other addresses as Landlord may from time to time designate in writing to Tenant.

     4.2 Common Area Operating Expenses. Tenant shall pay to Landlord during the term hereof, in
addition to the Base Rent, Tenant’s Share (as specified in Paragraph 1.6(b)) of all Common Area
Operating Expenses, as hereinafter defined, during each calendar year of the term of this Lease, in
accordance with the following provisions:

          (a) “Common Area Operating Expenses” are defined, for purposes of this Lease, as all costs
incurred by Landlord relating to the ownership and operation of the Industrial Center, including,
but not limited to, the following:

               (i) The operation, repair and maintenance, in neat, clean, good order and condition, of the
following:

                    (aa) The Common Areas, including parking areas, loading and unloading areas, trash areas,
roadways, sidewalks, walkways, parkways, driveways, landscaped areas, striping, bumpers, irrigation
systems, Common Area lighting facilities, fences and gates, elevators and roof.

                    (bb) Exterior signs and any tenant directories.

                    (cc) Fire detection and sprinkler systems.

               (ii) The cost of water, gas, electricity and telephone to service the Common Areas.

               (iii) Trash disposal, property management fees of 4% of the gross monthly rental and security
services and the costs of any environmental inspections.

               (iv) Reserves set aside for maintenance and repair of Common Areas.

               (v) Real Property Taxes (as defined in Paragraph 10.2) to be paid by Landlord for the Building
and the Common Areas under Paragraph 10 hereof.

               (vi) The cost of the premiums for the insurance policies maintained by Landlord under
Paragraph 8 hereof.

               (vii) Any deductible portion of an insured loss concerning the building or the Common Areas.

               (viii) Any other services to be provided by Landlord that are stated elsewhere in this Lease
to be a Common Area Operating Expense.

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          (b) Any common Area Operating Expenses and Real Property Taxes that are specifically
attributable to the Building or to any other building in the industrial Center or to the operation,
repair and maintenance thereof, shall be allocated entirely to the Building or to such other
building. However, any Common Area Operating Expenses and Real Property Taxes that are not
specifically attributable to the Building or to any other building or to the operation, repair and
maintenance thereof, shall be equitably allocated by Landlord to all buildings in the Industrial
Center. Notwithstanding anything in the Lease to the contrary, Common Area Operating Expenses
shall not include any of the following:

                    (aa) legal fees, brokerage commissions, advertising costs or related expenses in connection
with the leasing of the Industrial Center;

                    (bb) costs incurred in connection with damage or repairs which are covered under any insurance
policy carried by Landlord in connection with the Industrial Center or Common Areas;

                    (cc) expenses for repair or replacement paid by condemnation awards;

                    (dd) costs associated with damage or repairs to the Industrial Center or the Common Areas
necessitated by the negligence or willful misconduct of Landlord or Landlord’s employees, agents,
contractors or invitees;

                    (ee) increases in insurance premiums over those in effect on the Commencement Date to the
extent any other tenant causes Landlord’s insurance premiums to increase or obligates Landlord to
purchase additional insurance;

                    (ff) reserves for Landlord’s repair, replacement or improvement of the Industrial Center or
any portion thereof;

                    (gg) executive salaries or salaries of service personnel to the extent that such salaries are
payable in connection with services other than in connection with the management, operation, repair
or maintenance of the Industrial Center or Common Areas;

                    (hh) the cost of offsite service personnel to the extent that such personnel are not engaged
in the management, operation, repair or maintenance of the Industrial Center or Common Areas;

                    (ii) charitable or political contributions or fees paid to trade associates;

                    (jj) Landlord’s general overhead expenses not related to the Industrial Center or Common
Areas;

                    (kk) all principal, interest, loan fees, and other carrying costs related to any mortgage or
deed of trust encumbering the Industrial Center and all rental and other payable due under any
ground or underlying lease, unless such costs are directly

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attributable to Tenant’s, its agents’ or employees’ activities in, on or about the Industrial
Center, or as a result of a Tenant’s breach or default under this Lease;

                    (ll) legal fees, accountant fees and other expenses incurred in disputes with other tenants or
occupants of the Industrial Center or associated with the enforcement of any other leases or
defense of Landlord’s title to or interest in the Industrial Center or any part thereof;

                    (mm) costs (including permit, license and inspection fees) incurred in renovating or otherwise
improving, decorating, painting, expanding or altering space for tenants or other occupants of
vacant space in the Industrial Center;

                    (nn) any costs, fines, or penalties incurred due to violations by Landlord or any tenant of
the Project (other than Tenant) of any governmental rule or authority, this Lease or any other
lease in the Industrial Center, or due to Landlord’s negligence or willful misconduct;

                    (oo) payments for rented equipment, the cost of which equipment would be a capital expenditure
if such equipment were purchased by Landlord;

                    (pp) services or installations furnished to any tenant in the Project which are not furnished
to Tenant or quantities of such services furnished to any tenant in the Industrial Center which are
also furnished to Tenant, but are furnished to other tenants in an amount materially in excess of
that which would represent a fair proportion of such services;

                    (qq) the cost of any service provided to Tenant or other occupants of the Industrial Center
for which Landlord is entitled to be reimbursed;

                    (rr) any management or supervision fee greater than the management or supervision fee of 4%
outlined above; and

                    (ss) the costs of repairs and/or replacements of the roof, foundation, and structural supports
of the Premises unless such costs are amortized over the useful life of the item.

          (c) The inclusion of the improvements, facilities and services set forth in subparagraph
4.2(a) shall not be deemed to impose an obligation upon Landlord to either have said improvements
or facilities or to provide those services unless the Industrial Center already has the same,
Landlord already provides the services, or Landlord has agreed elsewhere in this Lease to provide
the same or some of them.

          (d) Tenant’s Share of Common Area Operating Expenses shall be payable by Tenant within ten
(10) days after a reasonably detailed statement of actual expenses is presented to Tenant by
Landlord. At Landlord’s option, however, an amount may be estimated by Landlord from time to time
of Tenant’s Share of annual Common Area Operating Expenses and the same shall be payable monthly or
quarterly, as Landlord shall designate, during each 12-month period of the Lease term, on the same
day as the Base Rent is due hereunder. Landlord shall deliver to Tenant within sixty (60) days
after the expiration of each calendar year a

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reasonably detailed statement showing Tenant’s Share of the actual Common Area Operating
Expenses incurred during the preceding year. If Tenant’s payments under this Paragraph 4.2(d)
during said preceding year exceed Tenant’s Share as indicated on said statement, Landlord shall be
credited the amount of such over-payment against Tenant’s Share of Common Area Operating Expenses
next becoming due. If Tenant’s payments under this Paragraph 4.2(d) during said preceding year
were less than Tenant’s Share as indicated on said statement, Tenant shall pay to Landlord the
amount of the deficiency within ten (10) days after delivery by Landlord to Tenant of said
statement.

5. Security Deposit. Tenant shall deposit with Landlord upon Tenant’s execution hereof the Security
Deposit set forth in Paragraph 1.7 as security for Tenant’s faithful performance of Tenant’s
obligations under this Lease. If Tenant fails to pay Base Rent or other rent or charges due
hereunder, or otherwise Defaults under this Lease (as defined in Paragraph 13.1), Landlord may use,
apply or retain all or any portion of said Security Deposit, Tenant shall within ten (10) days
after written request therefore deposit monies with Landlord sufficient to restore said Security
Deposit to the full amount required by this Lease. Any time the Base Rent increases during the
term of this Lease, Tenant shall, upon written request from Landlord, deposit additional monies
with Landlord as an addition to the Security Deposit so that the total amount of the Security
Deposit shall at all times bear the same proportion to the then current Base Rent as the initial
Security Deposit bears to the initial Base Rent set forth in Paragraph 1.5. Landlord shall not be
required to keep all or any part of the Security Deposit separate from its general accounts.
Landlord shall, at the expiration or earlier termination of the term hereof and after Tenant has
vacated the Premises, return to Tenant (or, at Landlord’s option, to the last assignee, if any, of
Tenant’s interest herein), that portion of the Security Deposit not used or applied by Landlord.
Unless otherwise expressly agreed in writing by Landlord, no part of the Security Deposit shall be
considered to be held in trust, to bear interest or other increment for its use, or to be
prepayment for any monies to be paid by Tenant under this Lease.Use.

     6.1 Permitted Use.

          (a) Tenant shall use and occupy the Premises only for the Permitted Use set forth in Paragraph
1.8, or any other legal use which is reasonably comparable thereto, and for no other purpose.
Tenant shall not use or permit the use of the Premises in a manner that is unlawful, creates waste
or a nuisance, or that disturbs owners and/or occupants of, or causes damage to the Premises or
neighboring premises or properties.

          (b) Landlord hereby agrees to not unreasonably withhold or delay its consent to any written
request by Tenant, Tenant’s assignees or subtenants, and by prospective assignees and subtenants of
Tenant, its assignees and subtenants, for a modification of said Permitted Use, so long as the same
will not impair the structural integrity of the improvements on the Premises or in the Building or
the mechanical or electrical systems therein, does not conflict with uses by other Tenants, is not
significantly more burdensome to the Premises or the Building and the improvements thereon, and is
otherwise permissible pursuant to this Paragraph 6. If Landlord elects to withhold such consent,
Landlord shall within five (5) business days after such request give a written notification of same, which notice shall include an explanation of Landlord’s
reasonable objections to the change in use.

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     6.2 Hazardous Substances.

          (a) Reportable Uses Require Consent. The term “Hazardous Substance” as used in this Lease
shall mean any product, substance, chemical, material or waste whose presence, nature, quantity
and/or intensity of existence, use, manufacture, disposal, transportation, spill, release or
effect, either by itself or in combination with other materials expected to be on the Premises, is
either: (i) potentially injurious to the public health, safety or welfare, the environment, or the
Premises; (ii) regulated or monitored by any governmental authority; or (iii) a basis for potential
liability of Landlord to any governmental agency or third party under any applicable statute or
common law theory. Hazardous Substance shall include, but not be limited to, hydrocarbons,
petroleum, gasoline, crude oil or any products or by-products thereof. Tenant shall not engage in
any activity in or about the Premises which constitutes a Reportable Use (as hereinafter defined)
of Hazardous Substances without the express prior written consent of Landlord and compliance in a
timely manner (at Tenant’s sole cost and expense) with all Applicable Requirements (as defined in
Paragraph 6.3). “Reportable Use” shall mean (i) the installation or use of any above or below
ground storage tank, (ii) the generation, possession, storage, use, transportation, or disposal of
a Hazardous Substance that requires a permit from, or with respect to which a report, notice,
registration or business plan is required to be filed with, any governmental authority, and (iii)
the presence in, on or about the Premises of a Hazardous Substance with respect to which any
Applicable Laws require that a notice be given to persons entering or occupying the Premises or
neighboring properties. Notwithstanding the foregoing, Tenant may, without Landlord’s prior
consent, but upon notice to Landlord and in compliance with all Applicable requirements, use any
ordinary and customary materials reasonably required to be used by Tenant in the normal course of
the Permitted Use, so long as such use is not a Reportable Use and does not expose the Premises or
neighboring properties to any meaningful risk of contamination or damage or expose Landlord to any
liability therefor. In addition, Landlord may (but without any obligation to do so) condition its
consent to any Reportable Use of any Hazardous Substance by Tenant upon Tenant’s giving Landlord
such additional assurances as Landlord, in its reasonable discretion, deems necessary to protect
itself, the public, the Premises and the environment against damage, contamination or injury and/or
liability therefor, including but not limited to the installation (and, at Landlord’s option,
removal on or before Lease expiration or earlier termination) of reasonably necessary protective
modifications to the Premises (such as concrete encasements) and/or the deposit of an additional
Security Deposit under Paragraph 5 hereof.

          (b) Duty to Inform Landlord. If Tenant knows, or has reasonable cause to believe, that a
Hazardous Substance has come to be located in, on, under or about the Premises or the Building,
other than as previously consented to by Landlord, Tenant shall immediately give Landlord written
notice thereof, together with a copy of any statement, report, notice, registration, application,
permit, business plan, license, claim, action, or proceeding given to, or received from, any
governmental authority or private party concerning the presence, spill, release, discharge of, or
exposure to, such Hazardous Substance including but not limited to all such documents as may be
involved in any Reportable Use involving the Premises. Tenant shall not cause or permit any Hazardous Substance to be spilled or released in, on, under or about
the Premises (including, without limitation, through the prompting or sanitary sewer system).

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          (c) Indemnification. Tenant shall indemnify, protect, defend and hold Landlord, its agents,
employees, lenders and ground lessor, if any, and the Premises, harmless from and against any and
all damages, liabilities, judgments, costs, claims, liens, expenses, penalties, loss of permits and
attorneys’ and consultants’ fees arising out of or involving any Hazardous Substance brought onto
the Premises by or for Tenant or by anyone under Tenant’s control. Tenant’s obligations under this
paragraph 6.2(c) shall include, but not be limited to, the effects of any contamination or injury
to person, property or the environment created or suffered by Tenant, and the cost of investigation
(including consultants’ and attorneys’ fees and testing), removal, remediation, restoration and/or
abatement thereof, or of any contamination therein involved, and shall survive the expiration or
earlier termination of this Lease. No termination, cancellation or release agreement entered into
by Landlord and Tenant shall release Tenant from its obligations under this Lease with respect to
Hazardous Substances, unless specifically so agreed by Landlord in writing at the time of such
agreement.

          (d) Landlord’s Representation and Warranty Regarding Hazardous Substances. Notwithstanding
any other provision of this Lease, Landlord represents that it is unaware of any Hazardous
Substances, including but not limited to any solvents, metals, petroleum, lead-based paint, PCBs,
or asbestos in, on or about the Building or Premises. Notwithstanding this representation,
Landlord shall (i) cause, at its sole cost and expense, any or all such Hazardous Substances
discovered in, on or about the Building or Premises to be removed and (ii) indemnify and hold
Tenant harmless against and from all liability and claims of any kind for loss or damage to Tenant,
its employees or agents, and for expenses and fees of Tenant (including but not limited to costs,
expenses and attorneys’ fees), incurred, directly or indirectly, as a result of (a) the existence
of such Hazardous Substances in the Premises as of the commencement of this Lease, (b) a release of
Hazardous Substances by Tenant resulting from or exacerbated by leaks, breaks, obstructions or
defects in pipes, plumbing, sewers, or other systems on, in or under the Premises maintained by
Landlord, or (c) any acts or omissions of Landlord, or other tenants (past or future), or their
officers, employees, agents or subcontractors with respect to their use, generation, disposal,
storage, or transportation of Hazardous Substances on or about the Industrial Center.

     6.3 Tenant’s Compliance with Requirements. Tenant shall, at Tenant’s sole cost and expense,
fully, diligently and in a timely manner, comply with all “Applicable Requirements,” which term is
used in this Lease to mean all laws, rules, regulations, ordinances, directives, covenants,
easements and restrictions of record, permits, the requirements of any applicable fire insurance
underwriter or rating bureau, and the recommendations of Landlord’s engineers and/or consultants,
relating in any manner to the Premises (including but not limited to matters pertaining to (i)
industrial hygiene, (ii) environmental conditions on, in, under or about the Premises, including
soil and ground water conditions, and (iii) the use, generation, manufacture, production,
installation, maintenance, removal, transportation, storage, spill, or release of any Hazardous
Substance), now in effect or which may hereafter come into effect. Tenant shall, within five (5)
days after receipt of Landlord’s written request, provide Landlord with copies of all documents and
information, including but not limited to permits, registrations, manifests, applications, reports
and certificates, evidencing Tenant’s compliance with any applicable Requirements specified by Landlord, and shall immediately upon receipt, notify
Landlord in writing (with copies of any documents involved) of any threatened or actual claim,
notice, citation, warning, complaint or report pertaining to or involving failure by Tenant or the

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Premises to comply with any Applicable Requirements. Tenant’s obligations under this Paragraph 6.3
shall not require Tenant to comply with Applicable Requirements with respect to any Hazardous
Substances or environmental conditions on, in, under or about the Premises, including soil and
groundwater conditions, which existed prior to the Commencement Date or which were caused by
Landlord or any other lessee of the Industrial Center, their respective agents, employees or
contractors.

     6.4 Inspection; Compliance with Law. Landlord, Landlord’s agents, employees, contractors and
designated representatives, and the holders of any mortgages, deeds of trust or ground leases on
the Premises (“Lenders”) shall have the right to enter the Premises at any time in the case of an
emergency, and otherwise at reasonable times, for the purpose of inspecting the condition of the
Premises and for verifying compliance by Tenant with this Lease and all Applicable Requirements (as
defined in Paragraph 6.3), and Landlord shall be entitled to employ experts and/or consultants in
connection therewith to advise Landlord with respect to Tenant’s activities, including but not
limited to Tenant’s installation, operation, use, monitoring, maintenance, or removal of any
Hazardous Substance on or from the Premises. The costs and expenses of any such inspections shall
be paid by the party requesting same, unless a Default or Breach of this Lease by Tenant or a
violation of Applicable Requirements or a contamination, caused or materially contributed to by
Tenant, is found to exist or to be imminent, or unless the inspection is requested or ordered by a
governmental authority as the result of any such existing or imminent violation or contamination.
In such case, Tenant shall upon request reimburse Landlord or Landlord’s Lender, as the case may
be, for the costs and expenses of such inspections.

7. Maintenance, Repairs, Utility Installations, Trade Fixtures and Alterations.

     7.1 Tenant’s Obligations.

          (a) Subject to the provision of Paragraphs 2.2 (Condition), 7.2 (Landlord’s Obligations), 9
(Damage or Destruction), and 14 (Condemnation), Tenant shall, at Tenant’s sole cost and expense and
at all times, keep non-structural components of the Premises and every part thereof in good order,
condition and repair (whether or not such portion of the Premises requiring repair, or the means of
repairing the same, are reasonably or readily accessible to Tenant, and whether or not the need for
such repairs occurs as a result of Tenant’s use, any prior use, the elements or the age of such
portion of the Premises), including, without limiting the generality of the foregoing, all
equipment or facilities specifically serving the Premises, such as plumbing, heating, air
conditioning, ventilating, electrical, lighting facilities, boilers, fired or unfired pressure
vessels, fire hose connections if within the Premises, fixtures, interior walls, interior surfaces
of exterior walls, ceilings, floors, windows, doors, plate glass, and skylights, but excluding any
items which are the responsibility of Landlord pursuant to Paragraph 7.2 below. Tenant, in keeping
the Premises in good order, condition and repair, shall exercise and perform good maintenance
practices. Tenant’s obligations shall include restorations, replacements or renewals when
necessary to keep the Premises and all improvements thereon or a part thereof in good order,
condition and state of repair.

          (b) Tenant shall, at Tenant’s sole cost and expense, procure and maintain a contract, with
copies to Landlord, in customary form and substance for and with a contractor

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specializing and experienced in the inspection, maintenance and service of the heating, air conditioning and
ventilation system for the Premises. However, Landlord reserves the right, upon notice to Tenant,
to procure and maintain the contract for the heating, air conditioning and ventilating systems, and
if Landlord so elects, Tenant shall reimburse Landlord, upon demand, for the cost thereof.

          (c) If Tenant fails to perform Tenant’s obligations under this Paragraph 7.1, Landlord may
enter upon the Premises after ten (10) days’ prior written notice to Tenant (except in the case of
an emergency, in which case no notice shall be required), perform such obligations on Tenant’s
behalf, and put the Premises in good order, condition and repair, in accordance with Paragraph 13.2
below.

     7.2 Landlord’s Obligations. Subject to the provisions of Paragraphs 2.2 (Condition), 4.2
(Common Area Operating Expenses ), 7 (Use), 7.1 (Tenant’s Obligations), 9 (Damage or Destruction)
and 14 (Condemnation), Landlord, subject to reimbursement pursuant to Paragraph 4.2, shall keep in
good order, condition and repair the foundations, exterior walls, structural condition of interior
bearing walls, exterior roof, fire sprinkler and/or standpipe and hose (if located in the Common
Areas) or other automatic fire extinguishing system including fire alarm and/or smoke detection
systems and equipment, fire hydrants, parking lots, walkways, parkways, driveways, landscaping,
fences, signs and utility systems serving the Common Areas and all parts thereof, as well as
providing the services for which there is a Common Area Operating Expense pursuant to Paragraph
4.2. Landlord shall not be obligated to paint the exterior or interior surfaces of exterior walls
nor shall Landlord be obligated to maintain, repair or replace windows, doors or plate glass of the
Premises. Tenant expressly waives the benefit of any statute now or hereafter in effect which
would otherwise afford Tenant the right to make repairs at Landlord’s expense or terminate this
Lease because of Landlord’s failure to keep the Building, Industrial Center or Common Areas in good
order, condition and repair.

     7.3 Utility Installations, Trade Fixtures, Alterations.

          (a) Definitions; Consent Required. The term “Utility Installations” is used in this Lease to
refer to all air lines, power panels, electrical distribution, security, fire protections systems,
communications systems, lighting fixtures, heating, ventilating and air conditioning equipment,
plumbing, and fencing in, on or about the Premises. The term “Trade Fixtures” shall mean Tenant’s
machinery and equipment which can be removed without doing material damage to the Premises. The
term “Alterations” shall mean any modification of the improvements on the Premises which are
provided by Landlord under the terms of this Lease, other than Utility Installations or Trade
Fixtures. “Tenant-Owned Alterations and/or Utility Installations” are defined as Alterations
and/or Utility Installations made by Tenant that are not yet owned by Landlord pursuant to
Paragraph 7.4(a). Tenant shall not make nor cause to be made any Alterations or Utility
Installations in, on, under or about the Premises without Landlord’s prior written consent. Tenant
may, however, make non-structural Utility Installations to the interior of the Premises (excluding
the roof) without Landlord’s consent but upon notice to Landlord, so long as they are not visible
from the outside of the Premises, do not involve puncturing, relocating or removing the roof or any
existing walls, or changing or interfering with the fire sprinkler or fire detection systems and the cumulative cost thereof during the term
of this Lease as extended does not exceed $2,500.00.

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          (b) Consent. Any Alterations or Utility Installations that Tenant shall desire to make and
which require the consent of the Landlord shall be presented to Landlord in written form with
detailed plans. All consents given by Landlord, whether by virtue of Paragraph 7.3(a) or by
subsequent specific consent, shall be deemed conditioned upon: (i) Tenant’s acquiring all
applicable permits required by governmental authorities; (ii) the furnishing of copies of such
permits together with a copy of the plans and specifications for the Alteration or Utility
Installation to Landlord prior to commencement of the work thereon; and (iii) the compliance by
Tenant with all conditions of said permits in a prompt and expeditious manner. Landlord shall
approve or disapprove such request within ten (10) business days of Landlord’s receipt of Tenant’s
request. Landlord shall, at the time of granting consent to such Alterations (s) provide to Tenant
in writing its determination of whether removal of any fixture, improvements or alteration is
required. If notification is not received in this timeframe, Landlord’s consent shall be
irrevocably deemed to be granted and removal shall not be required. Any Alterations of Utility
Installations by Tenant during the term of this Lease shall be done in a good and workmanlike
manner, with good and sufficient materials, and be in compliance with all Applicable Requirements.
Tenant shall promptly upon completion thereof furnish Landlord with as-built plans and
specifications therefor. Landlord may (but without obligation to do so) condition its consent to
any requested Alteration or Utility Installation that costs $2,500.00 or more upon Tenant’s
providing Landlord with a lien and completion bond in an amount equal to one and one-half times the
estimated cost of such Alteration or Utility Installation.

          (c) Lien Protection. Tenant shall pay when due all claims for labor or materials furnished or
alleged to have been furnished to or for Tenant at or for use on the Premises, which claims are or
may be secured by any mechanic’s or materialmen’s lien against the Premises or any interest
therein. Tenant shall give Landlord not less than ten (10) days’ notice prior to the commencement
of any work in, on, or about the Premises, and Landlord shall have the right to post notices of
non-responsibility in or on the Premises as provided by law. If Tenant shall, in good faith,
contest the validity of any such lien, claim or demand, then Tenant shall, at its sole expense,
defend and protect itself, Landlord and the Premises against the same and shall pay and satisfy any
such adverse judgment that may be rendered thereon before the enforcement thereof against the
Landlord or the Premises. If Landlord shall require, Tenant shall furnish to Landlord a surety
bond satisfactory to Landlord in an amount equal to one and one-half times the amount of such
contested lien claim or demand, indemnifying Landlord against liability for the same, as required
by law for the holding of the Premises free from the effect of such lien or claim. In addition,
Landlord may require Tenant to pay Landlord’s attorneys’ fees and costs in participating in such
action if Landlord shall decide it is to its best interest to do so.

     7.4 Ownership, Removal, Surrender, and Restoration.

          (a) Ownership. Subject to Landlord’s right to require their removal and to cause Tenant to
become the owner thereof as hereinafter provided in this Paragraph 7.4, all Alterations and Utility
Installations made to the Premises by Tenant shall be the property of and owned by Tenant, but
considered a part of the Premises. Landlord may, at any time and at its option, elect in writing
to Tenant to be the owner of all or any specified part of the Tenant-Owned Alterations and Utility Installations. Unless otherwise instructed per Subparagraph
7.4(b) hereof, all Tenant-Owned Alterations and Utility Installations shall, at the expiration or

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earlier termination of this Lease, become the property of Landlord and remain upon the Premises and
be surrendered with the Premises by Tenant.

          (b) Removal. Unless otherwise agreed in writing, Landlord may require at the time it consents
of such Alterations or Utility Installations that any or all Tenant-Owned Alterations or Utility
Installations be removed by the expiration or earlier termination of this Lease, notwithstanding
that their installation may have been consented to by Landlord. Landlord may require the removal
at any time of all or any part of any Alterations or Utility Installations made without the
required consent of Landlord.

          (c) Surrender/Restoration. The voluntary or other surrender of this lease by Tenant, or a
mutual cancellation thereof, shall not work a merger, and shall, at the option of Landlord,
terminate all or any existing subleases or subtenancies, or may, at the option of Landlord, operate
as an assignment to Landlord of any or all such subleases or subtenancies. Immediately prior to
the expiration or sooner termination of this Lease, Tenant shall remove all of Tenant’s signs from
the exterior of the Building and shall remove all of Tenant’s equipment, trade fixtures, furniture,
supplies, wall decorations and other personal property from the Leased Premises, and shall vacate
and surrender the Leased Premises to Landlord in the same condition, broom clean and freshly
repainted, as existed at the Lease Commencement Date. Landlord, at Tenant’s expense shall retain a
mechanical contractor to service all heating, ventilation and air conditioning equipment, and
Tenant shall pay the cost to restore (or replace as required), said equipment to good working
order. Tenant shall repair all damage to the Leased Premises caused by Tenant or by Tenant’s
removal of Tenant’s property and all damage to the exterior of the Building caused by Tenant’s
removal of Tenant’s signs. Tenant shall patch and refinish, to Landlord’s reasonable
satisfaction, all penetrations made by Tenant or its employees to the floor, walls or ceiling of
the Leased Premises, whether such penetrations were made with Landlord’s approval or not. Tenant
shall replace all stained or damaged ceiling tiles and shall repair or replace, as necessary, all
wall coverings and clean or replace, as may be required, floor coverings to the reasonable
satisfaction of Landlord. Tenant shall replace all burned out light bulbs and damaged or stained
light lenses, and shall repaint all painted walls. Tenant shall repair all damage caused by Tenant
to the exterior surface of the Building and the paved surfaces of the outside areas adjoining the
Leased Premises and, where necessary, replace or resurface same. Additionally, Tenant shall, prior
to the expiration or sooner termination of this Lease, remove any improvements, constructed or
installed by Tenant which Landlord requests be so removed by Tenant and repair all damage caused by
such removal. If the Leased Premises are not surrendered to Landlord in the condition required by
this Article at the expiration or sooner termination of this Lease, Landlord may, at Tenant’s
expense, so remove Tenant’s signs, property and/or improvements not so removed and make such
repairs and replacements not so made or hire, at Tenant’s expenses, independent contractors to
perform such work. Tenant shall be liable to Landlord for all costs incurred by Landlord in
returning the Leased Premises to the required condition and Tenant shall be deemed to have
impermissibly held over until such time as such required work is completed. Tenant shall pay Base
Monthly Rent and Additional Rent in accordance with the terms of the Holding Over paragraph until
such work is completed.

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8. Insurance; Indemnity.

     8.1 Payment of Premiums. The cost of the premiums for the insurance policies maintained by
Landlord under this Paragraph 8 shall be a Common Area Operating Expense pursuant to Paragraph 4.2
hereof. Premiums for policy periods commencing prior to, or extending beyond, the term of this
Lease shall be prorated to coincide with the corresponding Commencement Date or Expiration Date.

     8.2 Liability Insurance.

          (a) Carried by Tenant. Tenant shall obtain and keep in force during the term of this Lease a
Commercial General Liability policy of insurance protecting Tenant, Landlord and any Lender(s)
whose names have been provided to Tenant in writing (as additional insureds) against claims for
bodily injury, personal injury and property damage based upon, involving or arising out of the
ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such
insurance shall be on an occurrence basis providing single limit coverage in an amount not less
than $1,000,000 per occurrence with an “Additional Insured-Managers or Landlords of Premises:
endorsement and contain the “Amendment of the Pollution Exclusion” endorsement for damage caused by
heat, smoke or fumes from a hostile fire. The policy shall not contain any intra-insured
exclusions as between insured persons or organizations, but shall include coverage for liability
assumed under this Lease as an “insured contract” for the performance of Tenant’s indemnity
obligations under this Lease. The limits of said insurance required by this Lease or as carried
by Tenant shall not, however, limit the liability of Tenant nor relieve Tenant of any obligation
hereunder. All insurance to be required by this Lease or as carried by Tenant shall not, however,
limit the liability of Tenant nor relieve Tenant of any obligation hereunder. All insurance to be
carried by Tenant shall be primary to and not contributory with any similar insurance carried by
Landlord, whose insurance shall be considered excess insurance only.

          (b) Carried by Landlord. Landlord shall also maintain liability insurance described in
Paragraph 8.2(a) above, in addition to and not in lieu of, the insurance required to be maintained
by Tenant. Tenant shall not be named as an additional insured therein.

     8.3 Property Insurance-Building, Improvements and Rental Value.

          (a) Building and Improvements. Landlord shall obtain and keep in force during the term of
this Lease a policy or policies in the name of Landlord, with loss payable to Landlord and to any
Lender(s), insuring against loss or damage to the Premises. Such insurance shall be for full
replacement cost, as the same shall exist from time to time, or the amount required by any
Lender(s), but in no event more than the commercially reasonable and available insurable value
thereof if, by reason of the unique nature or age of the improvements involved, such latter amount
is less than full replacement cost. Tenant-Owned Alterations and Utility Installations, Trade
Fixtures and Tenant’s personal property shall be insured by Tenant pursuant to Paragraph 8.4. If
the coverage is available and commercially appropriate, Landlord’s policy or policies shall insure
against all risks of direct physical loss or damage (and at Landlord’s option the perils of flood
and/or earthquake), including coverage for any additional costs resulting from debris removal and
reasonable amounts of coverage for the enforcement of any

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ordinance or law regulating the reconstruction or replacement of any undamaged sections of the
Building required to be demolished or removed by reason of the enforcement of any building, zoning,
safety or land use laws as the result of a covered loss, but not including plate glass insurance.
Said policy or policies shall also contain an agreed valuation provision in lieu of any
co-insurance clause, waiver of subrogation, and inflation guard protection causing an increase in
the annual property insurance coverage amount by a factor of not less than the adjusted U.S.
Department of Labor Consumer Price Index for All Urban Consumers for the city nearest to where the
Premises are located.

          (b) Rental Value. Landlord shall also obtain and keep in force during the term of this Lease
a policy or policies in the name of Landlord, with loss payable to Landlord and any Lender(s),
insuring the loss of the full rental and other charges payable by all tenants of the Building to
Landlord for at least one year (including all Real Property Taxes, insurance costs, all Common Area
Operating Expenses and any scheduled rental increases). Said insurance may provide that in the
event the Lease is terminated by reason of an insured loss, the period of indemnity for such
coverage shall be extended beyond the date of the completion of repairs or replacement of the
Premises, to provide for one full year’s loss of rental revenues from the date of any such loss.
Said insurance shall contain an agreed valuation provision in lieu of any co-insurance clause, and
the amount of coverage shall be adjusted annually to reflect the projected rental income, Real
Property Taxes, insurance premium costs and other expenses, if any, otherwise payable, for the next
12-month period. Common Area Operating Expenses shall include any deductible amount in the event
of such loss.

          (c) Adjacent Premises. Tenant shall pay for any increase in the premiums for the property
insurance of the Building and for the Common Areas or other buildings in the Industrial Center if
said increase is caused by Tenant’s acts, omissions, use or occupancy of the Premises.

          (d) Tenant’s Improvements. Since Landlord is the Insuring Party, Landlord shall not be
required to insure Tenant-Owned Alterations and Utility Installations unless the item in question
has become the property of Landlord under the terms of this Lease.

     8.4 Tenant’s Property Insurance. Subject to the requirements of Paragraph 8.5, Tenant at its
cost shall either by separate policy or, at Landlord’s option, by endorsement to a policy already
carried, maintain insurance coverage on all of Tenant’s personal property, Trade Fixtures and
Tenant-Owned Alterations and Utility Installations in, on, or about the Premises similar in
coverage to that carried by Landlord as the Insuring Party under Paragraph 8.3(a). Such insurance
shall be full replacement cost coverage with a deductible not to exceed $1,000 per occurrence. The
proceeds from any such insurance shall be used by Tenant for the replacement of personal property
and the restoration of Trade Fixtures and Tenant-Owned Alterations and Utility Installations. Upon
request from Landlord, Tenant shall provide Landlord with written evidence that such insurance is
in force.

     8.5 Insurance Policies. Insurance required hereunder shall be in companies duly licensed to
transact business in the state where the Premises are located, and maintaining during the policy
term a “General Policyholders Rating” of at least B+, V, or such other rating as may be required by
a Lender, as set forth in the most current issue of “Best’s Insurance Guide.”

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Tenant shall not do or permit to be done anything which shall invalidate the insurance
policies referred to in this Paragraph 8. Tenant shall cause to be delivered to Landlord, within
seven (7) days after the earlier of the Early Possession Date or the Commencement Date, certified
copies of, or certificates evidencing the existence and amounts of, the insurance required under
Paragraph 8.2(a) and 8.4. No such policy shall be cancelable or subject to modification except
after thirty (30) days’ prior written notice to Landlord. Tenant shall at least thirty (30) days
prior to the expiration of such policies, furnish Landlord with evidence of renewals or “insurance
binders” evidencing renewal thereof, or Landlord may order such insurance and charge the cost
thereof to Tenant, which amount shall be payable by Tenant to Landlord upon demand.

     8.6 Waiver of Subrogation. Without affecting any other rights or remedies, Tenant and
Landlord each hereby release and relieve the other, and waive their entire right to recover damages
(whether in contract or in tort) against the other, for loss or damage to their property arising
out of or incident to the perils required to be insured against under Paragraph 8. The effect of
such releases and waivers of the right to recover damages shall not be limited by the amount of
insurance carried or required, or by any deductibles applicable thereto. Landlord and Tenant agree
to have their respective insurance companies issuing property damage insurance waive any right to
subrogation that such companies may have against Landlord or Tenant, as the case may be, so long as
the insurance is not invalidated thereby.

     8.7 Indemnity. Tenant, shall, during the term of this lease, indemnify and save harmless
Landlord and any agents of Landlord from any and all loss, damage, claims of damage, obligations,
cause or causes of action, or liabilities of any kind or nature (including reasonable costs of
attorney’s fees if Landlord is made a party to any action which Tenant’s indemnity runs hereunder)
by reason of injury or death of any person or persons or damage to any property of any kind and to
whomsoever belonging, including injury or death to the person or damage to the property of Tenant,
Tenant’s officers, directors, employees, agents, guests, subtenants and assignees, concessionaires
and licensees, and any other person, firm or corporation selling or manufacturing merchandise or
services upon or from the demised premises, or any part thereof, from any cause or cause whatsoever
which result from Tenant’s use or from any other activity done, permitted or suffered by Tenant.
As a material part of the consideration to Landlord, Tenant hereby assumes all risk of damage to
property or injury to persons in or about the Premises from any cause whatsoever (except that which
is cause by the sole active negligence or willful misconduct by Landlord or its Agents or by the
failure of Landlord to observe any of the terms and conditions of this lease, if such failure has
persisted for an unreasonable period after written notice of such failure). . Tenant’s obligations
under this paragraph shall survive the termination of this lease. Notwithstanding anything to the
contrary set forth herein, Landlord shall, with counsel reasonably acceptable to Tenant, indemnify,
defend and hold harmless Tenant as well as Tenant’s employees, agents and invitees (collectively,
“Tenant Parties”) from and against all liability and claims (i) for damage to property outside the
Premises to the extent that such liabilities and claims are covered by such insurance (or would
have been covered had Landlord carried the insurance required under this Lease), (ii) resulting
from the negligent acts, omissions or willful misconduct of Landlord or Landlord’s employee’s
agents or invitees (collectively, “Landlord Parties”) in connection with Landlord Parties’
activities in, on or about the Project except to the extent that such liability or claim is for
damage to Tenant’s personal property, fixtures or furniture in the Premises and is covered by
insurance that Tenant is required

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to obtain under this Lease (or would have been covered had Tenant carried the insurance
required under this Lease) and (iii) Landlord’s breach of this Lease.

     8.8 Exemption of Landlord from Liability. Landlord shall not be liable for injury or damage
which may be sustained by Tenant or to the person or goods, wares, merchandise or other property of
Tenant, Tenant’s employees, contractors, invitees, customers, or any other person in or about the
Premises, whether such damage or injury is caused by or results from fire, earthquake, steam,
electricity, gas, water or rain, which may leak or from or into any part of the premises or from
the breakage, leakage, obstruction or other defects of pipes, fire sprinklers, wires, appliances,
plumbing, HVAC or lighting fixtures, or from any other cause, whether said injury or damage results
from conditions arising upon the Premises or upon other portions of the Building of which the
Premises are a part, from other sources or places, and regardless of whether the cause of such
damage or injury or the means of preparing the same is accessible or not. Landlord shall not be
liable for any damages arising from any act or neglect of any other tenant of Landlord nor from the
failure by Landlord to enforce the provisions of any other lease in the Industrial Center.
Notwithstanding Landlord’s negligence or breach of this Lease, Landlord shall under no
circumstances be liable for injury to Tenant’s business or for any loss of income or profit
therefrom.

9. Damage or Destruction.

     9.1 Definitions.

          (a) “Premises Partial Damage” shall mean damage or destruction to the Premises, other than
Tenant-Owned Alterations and Utility Installations, the repair cost of which damage or destruction
is less than fifty percent (50%) of the then Replacement Cost (as defined in Paragraph 9.1(d) of
the Premises (excluding the Tenant-Owned Alterations and Utility Installations and Trade Fixtures)
immediately prior to such damage or destruction.

          (b) “Premises Total Destruction” shall mean damage or destruction to the Premises, other than
Tenant-Owned Alterations and Utility Installations, the repair cost of which damage or destruction
is fifty percent (50%) or more of the then Replacement Cost of the Premises (excluding Tenant-Owned
Alterations and Utility Installations and Trade Fixtures) immediately prior to such damage or
destruction. In addition, damage or destruction to the Building, other than Tenant-Owned
Alterations and Utility Installations and Trade Fixtures of any tenants of the Building, the cost
of which damage or destruction is fifty percent (50%) or more of the then Replacement Cost
(excluding Tenant-Owned Alterations and Utility Installations and Trade Fixtures of any Tenants of
the Building) of the Building shall, at the option of Landlord, be deemed to be Premises total
Destruction.

          (c) “Industrial Center Total Destruction” shall mean damage or destruction to the Industrial
Center or the Building in which the premises are located, regardless of the damage to the premises.
The cost of which damage or destruction is fifty percent (50%) or more of the then Replacement Cost
of the Industrial Center or the Building (excluding Tenant-Owned Alterations and Utility
Installations and Trade Fixtures) immediately prior to such damage or destruction.

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          (d) “Insured Loss” shall mean damage or destruction to the Premises, other than Tenant-Owned
Alterations and Utility Installations and Trade Fixtures, which was caused by an event required to
be covered by the insurance described in Paragraph 8.3(a) irrespective of any deductible amounts or
coverage limits involved.

          (e) “Replacement Cost” shall mean the cost to repair or rebuild the improvements owned by
Landlord at the time of the occurrence to their condition existing immediately prior thereto,
including demolition, debris removal and upgrading required by the operation of applicable building
codes, ordinances or laws, and without deduction for depreciation.

          (f) “Hazardous Substance Condition” shall mean the occurrence or discovery of a condition
involving the presence of, or a contamination by, a Hazardous Substance as defined in Paragraph
6.2(a), in, on, or under the Premises.

     9.2 Premises Partial or Total Damage — Insured or Uninsured Loss. If Premises Partial or
Total Damage that is an Insured or Uninsured Loss occurs, unless caused by a negligent or willful
act of Tenant (in which event Tenant shall make the repairs at Tenant’s expense and this Lease
shall continue in full force and effect), then Landlord shall, at Landlord’s expense, repair such
damage (but not Tenant’s Trade Fixtures or Tenant-Owned Alterations and Utility Installations) as
soon as reasonably possible, but only to the extent of the available insurance proceeds, if any,
and this Lease shall continue in full force and effect. In the event, however, that there is a
shortage of insurance proceeds and such shortage is due to any reason including the fact that some
but not all of which may include the fact that, by reason of the unique nature of the improvements
in the Premises, full replacement cost insurance coverage was not commercially reasonable and
available, then Landlord shall have no obligation to pay for the shortage in insurance proceeds or
to fully restore the unique aspects of the Premises unless Tenant provides Landlord with the funds
to cover same, or adequate assurance thereof, within ten (10) days following receipt of written
notice of such shortage and request therefor. If Landlord receives said funds or adequate
assurance thereof within said ten (10) day period, Landlord shall complete them as soon as
reasonably possible and this Lease shall remain in full force and effect. If Landlord does not
receive such funds or assurance within said period, Landlord may nevertheless elect by written
notice to Tenant within ten (10) days thereafter to make such restoration and repair as is
commercially reasonable with Landlord paying any shortage in proceeds, in which case this Lease
shall remain in full force and effect. If Landlord does not receive such funds or assurance within
such ten (10) day period, and if Landlord does not so elect to restore and repair, then this Lease
shall terminate sixty (60) days following the occurrence of the damage or destruction. Unless
otherwise agreed, Tenant shall in no event have any right to reimbursement from Landlord for any
funds contributed by Tenant to repair any such damage or destruction.

     9.3 Intentionally Deleted.

     9.4 Industrial Center Destruction. Notwithstanding any other provision hereof, if the
Industrial Center in which the Premises are located suffers Total Destruction (including any
destruction required by any authorized public authority), this Lease at Landlord’s option shall
terminate sixty (60) days following the date of such Total Destruction, whether or not the

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damage or destruction affected the premises. In the event, however, that the damage or
destruction was caused by Tenant, Landlord shall have the right to recover Landlord’s damages from
Tenant except as released and waived in Paragraph 9.7.

     9.5 Damage Near End of Term. If at any time during the last six (6) months of the term of
this Lease there is damage for which the cost to repair exceeds one month’s Base Rent, whether or
not an Insured Loss, Landlord may, at Landlord’s option, terminate this Lease effective sixty (60)
days following the date of occurrence of such damage by giving written notice to Tenant of
Landlord’s election to do so within thirty (30) days after the date of occurrence of such damage.
Provided, however, if Tenant at that time has an exercisable option to extend this Lease, then
Tenant may preserve this Lease by (a) exercising such option, and (b) providing Landlord with any
shortage in insurance proceeds (or adequate assurance thereof) needed to make the repairs on or
before the earlier of (i) the date which is ten (10) days after Tenant’s receipt of Landlord’s
written notice purporting to terminate this Lease, or (ii) the day prior to the date upon which
such option expires. If Tenant duly exercises such option during such period and provides Landlord
with funds (or adequate assurance thereof) to cover any shortage in insurance proceeds, Landlord
shall, at Landlord’s expense repair such damage as soon as reasonably possible and this Lease shall
continue in full force and effect. If Tenant fails to exercise such option and provide such funds
or assurance during such period, then this Lease shall terminate as of the date set forth in the
first sentence of this Paragraph 9.5.

     9.6 Abatement of Rent; Tenant’s Remedies.

          (a) In the event of (i) Premises Partial Damage or (ii) Hazardous Substance Condition for
which Tenant is not legally responsible, the Base Rent, Common Area Operating Expenses and other
charges, if any, payable by Tenant hereunder for the period during which such damage or condition,
its repair, remediation or restoration continues, shall be abated in proportion to the degree to
which Tenant’s use of the Premises is impaired, but not in excess of proceeds from insurance
required to be carried under Paragraph 8.3(b). Except for abatement of Base Rent, Common Area
Operating Expenses and other charges, if any, as aforesaid, all other obligations of Tenant
hereunder shall be performed by Tenant, and Tenant shall have no claim against Landlord for any
damage suffered by reason of any such damage, destruction, repair, remediation or restoration.

          (b) If Landlord shall be obligated to repair or restore the Premises under the provisions of
this Paragraph 9 and shall not commence, in a substantial and meaningful way, the repair or
restoration of the Premises within ninety (90) days after such obligation shall accrue, Tenant may,
at any time prior to the commencement of such repair or restoration, give written notice to
Landlord and to any Lenders of which Tenant has actual notice of Tenant’s election to terminate
this Lease on a date not less than sixty (60) days following the giving of such notice. If Tenant
gives such notice to Landlord and such Lenders and such repair or restoration is not commenced
within thirty (30) days after receipt of such notice, this Lease shall terminate as of the date
specified in said notice. If Landlord or a Lender commences the repair or restoration of the
Premises within thirty (30) days after the receipt of such notice, this Lease shall continue in
full force and effect. “Commence” as used in this Paragraph 9.6 shall mean either the
unconditional authorization of the preparation of the required plans, or the beginning of the
actual work on the Premises, whichever occurs first.

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     9.7 Hazardous Substance Conditions. If a Hazardous Substance Condition occurs, unless Tenant
is legally responsible therefor (in which case Tenant shall make the investigation and remediation
thereof required by Applicable Requirements and this Lease shall continue in full force and effect,
but subject to Landlord’s rights under Paragraph 6.2(c) and Paragraph 13), Landlord may at
Landlord’s option either (i) investigate and remediate such Hazardous Substance Condition, if
required, as soon as reasonably possible at Landlord’s expense, in which event this Lease shall
continue in full force and effect, or (ii) if the estimated cost to investigate and remediate such
condition exceeds twelve (12) times the then monthly Base Rent or $50,000, whichever is greater,
give written notice to Tenant within thirty (30) days after receipt by Landlord of knowledge of the
occurrence of such Hazardous Substance Condition of Landlord’s desire to terminate this Lease as of
the date sixty (60) days following the date of such notice. In the event Landlord elects to give
such notice of Landlord’s intention to terminate this Lease, Tenant shall have the right within ten
(10) days after receipt of such notice to give written notice to Landlord of Tenant’s commitment to
pay for the excess costs of (a) investigation and remediation of such Hazardous Substance Condition
to the extent required by Applicable Requirements, over (B) an amount equal to twelve (12) times
the then monthly Base Rent or $50,000 whichever is greater. Tenant shall provide Landlord with the
funds required of Tenant or satisfactory assurance thereof within thirty (30) days following said
commitment by Tenant. In such event this Lease shall continue in full force and effect, and
Landlord shall proceed to make such investigation and remediation as soon as reasonably possible
after the required funds are available. If Tenant does not give such notice and provide the
required funds or assurance thereof within the time period specified above, this Lease shall
terminate as of the date specified in Landlord’s notice of termination.

     9.8 Termination — Advance Payments. Upon termination of this Lease pursuant to this Paragraph
9, Landlord shall return to Tenant any advance payment made by Tenant to Landlord and so much of
Tenant’s Security Deposit as has not been, or is not then required to be, used by Landlord under
the terms of this Lease.

     9.9 Waiver of Statutes. Landlord and Tenant agree that the terms of this Lease shall govern
the effect of any damage to or destruction of the Premises and the Building with respect to the
termination of this Lease and hereby waive the provisions of any present or future statute to the
extent it is inconsistent herewith.

10. Real Property Taxes.

     10.1 Payment of Taxes. Landlord shall pay the Real Property Taxes, as defined in Paragraph
10.2, applicable to the Industrial Center, and except as otherwise provided in Paragraph 10.3, any
such amounts shall be included in the calculation of Common Area Operating Expenses in accordance
with the provisions of Paragraph 4.2.

     10.2 Real Property Tax Definition. As used herein, the term “Real Property Taxes” shall
include any form of real estate tax or assessment, general, special, ordinary or extraordinary, and
any license fee, commercial rental tax, improvement bond or bonds, levy or tax (other than
inheritance, personal income or estate taxes) imposed upon the Industrial Center by any authority
having the direct or indirect power to tax, including any city, state or federal government, or any
school, agricultural, sanitary, fire, street, drainage, or other improvement

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district thereof, levied against any legal or equitable interest of Landlord in the Industrial
Center or any portion thereof, Landlord’s right to rent or other income therefrom, and/or
Landlord’s business of leasing the Premises. The term “Real Property Taxes” shall also include any
tax, fee, levy, assessment or charge, or any increase therein, imposed by reason of events
occurring, or changes in Applicable Law taking effect, during the term of this Lease, including but
not limited to a change in the ownership of the Industrial Center or in the improvements thereon,
the execution of this Lease, or any modification, amendment or transfer thereof, and whether or not
contemplated by the Parties. In calculating Real Property Taxes for any calendar year, the Real
Property Taxes for any real estate tax year shall be included in the calculation of Real Property
Taxes for such calendar year based upon the number of days which such calendar year and tax year
have in common.

     10.3 Additional Improvements. Tenant shall pay to Landlord the Common Area Operating Expenses
as payable under Paragraph 4.2, the entirety of any increase in Real Property Taxes if assessed
solely by reason of Alterations, Trade Fixtures or Utility Installations placed upon the Premises
by Tenant or at Tenant’s request.

     10.4 Joint Assessment. If the Building is not separately assessed, Real Property Taxes
allocated to the Building shall be an equitable proportion of the Real Property Taxes for all of
the land and improvements included within the tax parcel assessed or the industrial center, such
proportion to be determined by Landlord from the respective valuations assigned in the assessor’s
work sheets or such other information as may be reasonably available. Landlord’s reasonable
determination thereof, in good faith, shall be conclusive.

     10.5 Tenant’s Property Taxes. Tenant shall pay prior to delinquency all taxes assessed
against and levied upon Tenant-Owned Alterations and Utility Installations, Trade Fixtures,
furnishings, equipment and all personal property of Tenant contained in the Premises or stored
within the Industrial Center. When possible, Tenant shall cause its Tenant-Owned Alterations and
Utility Installations, Trade Fixtures, furnishings, equipment and all other personal property to be
assessed and billed separately from the real property of Landlord. If any of Tenant’s said
property shall be assessed with Landlord’s real property, Tenant shall pay Landlord the taxes
attributable to Tenant’s property within ten (10) days after receipt of a written statement setting
forth the taxes applicable to Tenant’s property.

11. Utilities. Tenant shall pay directly for all utilities and services supplied to the Premises,
including but not limited to electricity, water, telephone, security, gas, sewer, trash removal and
cleaning of the Premises, together with any taxes thereon. If any such utilities or services are
not separately metered to the Premises or separately billed to the Premises, Tenant shall pay to
Landlord a reasonable proportion to be determined by Landlord of all such charges jointly metered
or billed with other premises in the Building, in the manner and within the time periods set forth
in Paragraph 4.2(d). Landlord shall not be liable to Tenant for injury, damage, loss of Tenant’s
business or profits, from any failure, interruption, rationing or other curtailment in the supply
of electric, gas, water or other utilities from whatever cause. Tenant shall not consume water in
excess of that usually furnished or supplied for reasonable and normal drinking and lavatory use
in connection with an office environment (as determined by Landlord), without first procuring the
written consent of Landlord, which Landlord may refuse, and in the event of consent, Landlord may
have installed a water meter in the Premises to measure the amount of

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water consumed. The cost of any such meter and of its installation, maintenance and repair shall be
paid for by the Tenant, and Tenant agrees to pay to Landlord promptly upon demand for all such
water consumed as shown by said meters, at the rates charged for such services by the local public
utility plus any additional expense incurred in keeping account of the water so consumed. If a
separate meter is not installed, the excess cost for such water shall be established by an estimate
made by a utility company or electrical engineer hired by Landlord at Tenant’s expense.

12. Assignment and Subletting.

     12.1 Landlord’s Consent Required.

          (a) Except as provided in Section 12.4, Tenant shall not assign this lease, nor any right
hereunder, nor sublet the premises, nor any part thereof, without the prior written consent of
Landlord. In exercising its reasonable discretion Landlord may consider all commercially relevant
factors involved in the leasing of the premises including but not limited to the a) the
creditworthiness and financial stability of the prospective assignee or subtenant; b) references of
prior landlords; c) the past history of such subtenant, with respect to involvement in litigation
and bankruptcy proceedings; d) the impact of said subtenant or assignee and proposed use of the
premises on pedestrian and vehicular traffic, other tenants, and parking; e) the use, generation or
disposal of Hazardous Substances. The presence of one negative factor enumerated above shall be
deemed reasonable justification for Landlord’s withholding consent.

          (b) A change in the control of Tenant shall constitute an assignment requiring Landlord’s
consent. The transfer, on a cumulative basis, of twenty-five percent (25%) or more of the voting
control of Tenant shall constitute a change in control for this purpose. Tenant shall have the
right to sublease/assign all or any portion of the leased premises to a related entity or affiliate
without Landlord’s approval or consent, by providing notice of such to Landlord as long as Tenant
remains liable.

          (c) The involvement of Tenant or its assets in any transaction, or series of transactions (by
way of merger, sale, acquisition, financing, refinancing, transfer, leveraged buy-out or
otherwise), whether or not a formal assignment or hypothecation of this Lease or Tenant’s assets
occurs, which results or will result in a reduction of the Net Worth of Tenant, as hereinafter
defined, by an amount equal to or greater than twenty-five percent (25%) of such Net Worth of
Tenant as it was represented to Landlord at the time of full execution and delivery of this Lease
or at the time of the most recent assignment to which Landlord has consented, or as it exists
immediately prior to said transaction or transactions constituting such reduction, at whichever
time said Net Worth of Tenant was or is greater, shall be considered an assignment of this Lease by
Tenant to which Landlord may reasonably withhold its consent. “Net Worth of Tenant” for purposes
of this Lease shall be the net worth of Tenant (excluding any Guarantors) established under
generally accepted accounting principles consistently applied.

          (d) Except as provided in Section 12.4, an assignment or subletting of Tenant’s interest in
this Lease without Landlord’s specific prior written consent shall, at Landlord’s option, be a
Default curable after notice per Paragraph 13.1, or a non-curable Breach without the necessity of
any notice and grace period. If Landlord elects to treat such unconsented to assignment or
subletting as a non-curable Breach, Landlord shall have the right

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to either: (i) terminate this Lease, or (ii) upon thirty (30) days’ written notice
(“Landlord’s Notice”), increase the monthly Base Rent for the Premises to the greater of the then
fair market rental value of the Premises, as reasonably determined by Landlord, or one hundred ten
percent (110%) of the Base Rent then in effect. Pending determination of the new fair market
rental value, if disputed by Tenant, Tenant shall pay the amount set forth in Landlord’s Notice,
with any overpayment credited against the next installment(s) of Base Rent coming due, and any
underpayment for the period retroactively to the effective date of the adjustment being due and
payable immediately upon the determination thereof. Further, in the event of such Breach and
rental adjustment, (i) the purchase price of any option to purchase the Premises held by Tenant
shall be subject to similar adjustment to the then fair market value as reasonably determined by
Landlord (without the Lease being considered an encumbrance or any deduction for depreciation or
obsolescence, and considering the Premises at its highest and best use and in good condition) or
one hundred ten percent (110%) of the price previously in effect, (ii) any index-oriented rental or
price adjustment formulas contained in this Lease shall be adjusted to require that the base index
be determined with reference to the index applicable to the time of such adjustment, and (iii) any
fixed rental adjustments scheduled during the remainder of the Lease term shall be increased in the
same ratio as the new rental bears to the Base Rent in effect immediately prior to the adjustment
specified in Landlord’s Notice.

          (e) Tenant’s remedy for any breach of this Paragraph 12.1 by Landlord shall be limited to
compensatory damages and/or injunctive relief.

     12.2 Terms and Conditions Applicable to Assignment and Subletting.

          (a) Regardless of Landlord’s consent, any assignment or subletting shall not (i) be effective
without the express written assumption by such assignee or subtenant of the obligations of Tenant
under this Lease, (ii) release Tenant of any obligations hereunder, nor (iii) alter the primary
liability of Tenant for the payment of Base Rent and other sums due Landlord hereunder or for the
performance of any other obligations to be performed by Tenant under this Lease.

          (b) Landlord may accept any rent or performance of Tenant’s obligations from any person other
than Tenant pending approval or disapproval of an assignment. Neither a delay in the approval or
disapproval of such assignment nor the acceptance of any rent for performance shall constitute a
waiver or estoppel of Landlord’s right to exercise its remedies for the Default or Breach by Tenant
of any of the terms, covenants or conditions of this Lease.

          (c) The consent of Landlord to any assignment or subletting shall not constitute a consent to
any subsequent assignment or subletting by Tenant or to any subsequent or successive assignment or
subletting by the assignee or subtenant. However, Landlord may consent to subsequent or successive
assignment or subletting by the assignee or subtenant. However, Landlord may consent to subsequent
sublettings and assignments of the sublease or any amendments or modifications thereto without
notifying Tenant or anyone else liable under this Lease or the sublease and without obtaining their
consent, and such action shall not relieve such persons from liability under this Lease or the
sublease.

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          (d) In the event of any Default or Breach of Tenant’s obligation under this Lease, Landlord
may proceed directly against Tenant, any guarantors or anyone else responsible for the performance
of the Tenant’s obligations under this Lease, including any subtenant, without first exhausting
Landlord’s remedies against any other person or entity responsible therefor to Landlord, or any
security held by Landlord.

          (e) Each request for consent to an assignment or subletting shall be in writing, accompanied
by information relevant to Landlord’s determination as to the financial and operational
responsibility and appropriateness of the proposed assignee or subtenant, including but not limited
to the intended use and/or required modification of the Premises, if any, together with a
non-refundable deposit of $1,000 or ten percent (10%) of the monthly Base Rent applicable to the
portion of the Premises which is the subject of the proposed assignment or sublease, whichever is
greater, as reasonable consideration for Landlord’s considering and processing the request for
consent. Tenant agrees to provide Landlord with such other or additional information and/or
documentation as may be reasonably requested by Landlord.

          (f) Any assignee of, or subtenant under, this Lease shall, by reason of accepting such
assignment or entering into such sublease, be deemed, for the benefit of Landlord, to have assumed
and agreed to conform and comply with each and every term, covenant, condition and obligation
herein to be observed or performed by Tenant during the term of said assignment or sublease, other
than such obligations as are contrary to or inconsistent with provisions of an assignment or
sublease to which Landlord has specifically consented in writing.

          (g) If Tenant desires to Sublet or Assign the premises prior to the expiration of the term of
the lease and obtains an acceptable subtenant or assignee, then the Landlord shall have the option
prior to the execution of the sublease or assignment agreement to cancel this lease. Landlord, in
Landlord’s sole discretion, may then enter into a new lease with any prospective subtenant as the
substitute Tenant. If Landlord exercises this option, then this present lease shall be terminated
by mutual agreement as of that time. The original Tenant agrees to pay all leasing commissions for
the new lease payable to third party brokers according to their standard schedules of lease
commissions for that period of time applicable to the remaining period of this lease at the present
rental rate. Landlord shall pay all additional commissions for periods of time extending beyond
this original lease.

          (h) The occurrence of a transaction described in Paragraph 12.2(c) shall give Landlord the
right (but not the obligation) to require that the Security Deposit be increased by an amount equal
to six (6) times the then monthly Base Rent, and Landlord may make the actual receipt by Landlord
of the Security Deposit increase a condition to Landlord’s consent to such transaction.

          (i) Landlord, as a condition to giving its consent to any assignment or subletting, may
require that the amount and adjustment schedule of the rent payable under this Lease be adjusted to
what is then the market value and/or adjustment schedule for property similar to the Premises as
then constituted, as determined by Landlord.

     12.3 Additional Terms and Conditions Applicable to Assignment and Subletting. The following
terms and conditions shall apply to any subletting or assignment by Tenant of all or

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any part of the Premises and shall be deemed included in all subleases and assignments under
this Lease whether or not expressly incorporated therein:

          (a) Tenant hereby assigns and transfers to Landlord all of Tenant’s interest in all rentals,
income or other consideration arising from any sublease or assignment of all or a portion of the
Premises heretofore or hereafter made by Tenant, and Landlord may collect such sums and apply same
toward Tenant’s obligations under this Lease. Landlord shall not, by reason of the foregoing
provision or any other assignment of such sublease to Landlord, nor by reason of the collection of
the rents from a subtenant, be deemed liable to the subtenant for any failure of Tenant to perform
and comply with any of Tenant’s obligations to such subtenant under such Sublease. Tenant hereby
irrevocably authorizes and directs any such subtenant, upon receipt of a written notice from
Landlord, to pay to Landlord the rents and other charges due and to become due under the sublease.
Subtenant shall rely upon any such statement and request from Landlord and shall pay such rents and
other charges to Landlord without any obligation or right to inquire as to whether any Breach
exists and notwithstanding any notice from or claim from Tenant to the contrary. Tenant shall have
no right or claim against such subtenant, or, until the Breach has been cured, against Landlord,
for any such rents and other charges so paid by said subtenant to Landlord.

          (b) In the event of a Breach by Tenant in the performance of its obligations under this Lease,
Landlord, at its option and without any obligation to do so, may require any subtenant to attorn to
Landlord, in which event Landlord shall undertake the obligations of the sub landlord under such
sublease from the time of the exercise of said option to the expiration of such sublease; provided,
however, Landlord shall not be liable for any prepaid rents or security deposit paid by such
subtenant to such sub landlord or for any other prior defaults or breaches of such sub landlord
under such sublease.

          (c) Any matter or thing requiring the consent of the sub landlord under a sublease shall also
require the consent of Landlord herein.

          (d) No subtenant under a sublease or assignee approved by Landlord shall further assign or
sublet all or any part of the Premises without Landlord’s prior written consent.

          (e) Landlord shall deliver a copy of any notice of Default or Breach by Tenant to the
subtenant, who shall have the right to cure the Default of Tenant within the grace period, if any,
specified in such notice. The subtenant shall have a right of reimbursement and offset from and
against Tenant for any such Defaults cured by the subtenant.

     12.4 Permitted Transfers. Any provision in this Lease to the contrary notwithstanding, Landlord’s
consent shall not be required for an assignment or subletting to: (i) any entity who controls, is
controlled by or is under common control with Tenant, (ii) any successor corporation resulting from
a merger, acquisition, consolidation or reorganization or (iii) to any person or legal entity which
acquires all or substantially all of the assets of Tenant as a going concern of the business being
conducted on the Premises (each of the foregoing is hereinafter referred to as a “Permitted
Transferee”), provided that before such assignment shall be effective (i) said Permitted Transferee
shall assume, in full, the obligations of Tenant under this Lease, (ii) Landlord shall be given
written notice of such assignment and assumption and

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(iii) the use of the Premises by the Permitted Transferee shall be for the Permitted Use only.
For purposes of this paragraph, the term “control” means possession, directly or indirectly, of the
power to direct or cause the direction of the management, affairs and policies of anyone, whether
through the ownership of voting securities, by contract or otherwise. For purposes of this Lease,
the sale or transfer of Tenant’s capital stock, including without limitation a private or public
offering or a transfer in connection with a merger, consolidation or reorganization of Tenant,
shall not be deemed an assignment, subletting or other transfer or encumbrance of the Lease or the
Premises. An assignment or subletting to a Permitted Transferee shall not release the assigning
Tenant from any of its duties and obligations hereunder.

13. Default; Breach; Remedies.

     13.1 Default; Breach. Landlord and Tenant agree that if any attorney is consulted by Landlord
in connection with a Tenant Default or Breach (as hereinafter defined), $350.00 is a reasonable
minimum sum per such occurrence for legal services and costs in the preparation and service of a
notice of Default, and that Landlord may include the cost of such services and costs in said notice
as rent due and payable to cure said default. a “Default” by Tenant is defined as a failure by
Tenant to observe, comply with or perform any of the terms, covenants, conditions or rules
applicable to Tenant under this Lease. A “Breach” by Tenant is defined as the occurrence of any
one or more of the following Defaults, and, where a grace period for cure after notice is specified
herein, the failure by Tenant to cure such Default prior to the expiration of the applicable grace
period, and shall entitle Landlord to pursue the remedies set forth in Paragraphs 13.2 and/or 13.3.

          (a) The abandonment of the Premises as defined in California Civil Code Section 1951.3.

          (b) Except as expressly otherwise provided in this Lease, the failure by Tenant to make any
payment of Base Rent, Tenant’s Share of Common Area Operating Expenses, or any other monetary
payment required to be made by Tenant hereunder as and when due, the failure by Tenant to provide
Landlord with reasonable evidence of insurance or surety bond required under this Lease, or the
failure of Tenant to fulfill any obligation under this Lease which endangers or threatens life or
property, where such failure continues for a period of three (3) days following written notice
thereof by or on behalf of Landlord to Tenant.

          (c) Except as expressly otherwise provided in this Lease, the failure by Tenant to provide
Landlord with reasonable written evidence (in duly executed original form, if applicable) of (i)
compliance with Applicable Requirements per Paragraph 6.3, (ii) the inspection, maintenance and
service contracts required under Paragraph 7.1(b), (iii) the rescission of an unauthorized
assignment or subletting per Paragraph 12.1, (iv) a Tenancy Statement per Paragraphs 16 or 37, (v)
the subordination or non-subordination of this Lease per Paragraph 30, (vi) the guaranty of the
performance of Tenant’s obligations under this Lease if required under Paragraphs 1.11 and 37,
(vii) the execution of any document requested under Paragraph 42 (easements), or (viii) any other
documentation or information which Landlord may reasonably require of Tenant under the terms of
this lease, where any such failure continues for a period of five (5) days following written notice
by or on behalf of Landlord to Tenant.

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          (d) A Default by Tenant as to the terms covenants, conditions or provisions of this Lease, or
of the rules adopted under Paragraph 40 hereof that are to be observed, complied with or performed
by Tenant, other than those described in Subparagraphs 13.1(a), (b), or (c), above, where such
Default continues for a period of thirty (30) days after written notice thereof by or on behalf of
Landlord to Tenant; provided however, that if the nature of Tenant’s Default is such that more than
thirty (30) days are reasonably required for its cure, then it shall not be deemed to be a Breach
of this Lease by Tenant if Tenant commences such cure within said thirty (30) day period and
thereafter diligently prosecutes such cure to completion.

          (e) The occurrence of any of the following events: (i) the making by Tenant of any general
arrangement or assignment for the benefit of creditors; (ii) Tenant’s becoming a “debtor” as
defined in 11 U.S. Code Section 101 or any successor statute thereto (unless, in the case of a
petition filed against Tenant, the same is dismissed within sixty (60) days); (iii) the appointment
of a trustee or receiver to take possession of substantially all of Tenant’s assets located at the
Premises or of Tenant’s interest in this Lease, where possession is not restored to Tenant within
thirty (30) days; or (iv) the attachment, execution or other judicial seizure of substantially all
of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease, where such
seizure is not discharged within thirty (30) days; provided, however, in the event that any
provision of this Subparagraph 13.1(e) is contrary to any applicable law, such provision shall be
of no force or effect, and shall not affect the validity of the remaining provisions.

          (f) The discovery by Landlord that any financial statement of Tenant or of any Guarantor,
given to Landlord by Tenant or any Guarantor, was materially false.

          (g) If the performance of Tenant’s obligations under this Lease is guaranteed: (i) the death
of a Guarantor, (ii) the termination of a Guarantor’s liability with respect to this Lease other
than in accordance with the terms of such guaranty, (iii) a Guarantor’s becoming insolvent or the
subject of a bankruptcy filing, (iv) a Guarantor’s refusal to honor the guaranty, or (v) a
Guarantor’s breach of its guaranty obligation on an anticipatory breach basis, and Tenant’s
failure, within sixty (60) days following written notice by or on behalf of Landlord to Tenant of
any such event, to provide Landlord with written alternative assurances of security, which, when
coupled with the then existing resources of Tenant, equals or exceeds the combined financial
resources of Tenant and the Guarantors that existed at the time of the execution of this Lease.

     13.2 Remedies. If Tenant fails to perform any affirmative duty or obligation of Tenant under
this Lease, within ten (10) days after written notice to Tenant (or in case of an emergency,
without notice), Landlord may at its option (but without obligation to do so), perform such duty or
obligation on Tenant’s behalf, including but not limited to the obtaining of reasonably required
bonds, insurance policies, or governmental licenses, permits or approvals. The costs and expenses
of any such performance by Landlord shall be due and payable by Tenant to Landlord upon invoice
therefor. If any check given to Landlord by Tenant shall not be honored by the bank upon which it
is drawn, Landlord, at its own option, may require all future payments to be made under this Lease
by Tenant to be made only by cashier’s check. In the event of a Breach of this Lease by Tenant (as
defined in Paragraph 13.1), with or without further notice or demand, and without limiting Landlord
in the exercise of any right or remedy which Landlord may have by reason of such Breach, Landlord
may:

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          (a) Terminate Tenant’s right to possession of the Premises by any lawful means, in which case
this Lease and the term hereof shall terminate and Tenant shall immediately surrender possession of
the Premises to Landlord. In such event Landlord shall be entitled to recover from Tenant: (i) the
worth at the time of the award of the unpaid rent which had been earned at the time of termination;
(ii) the worth at the time of award of the amount by which the unpaid rent which would have been
earned after termination until the time of award exceeds the amount of such rental loss that the
Tenant proves could have been reasonably avoided; (iii) the worth at the time of award of the
amount by which the unpaid rent for the balance of the term after the time of award exceeds the
amount of such rental loss that the Tenant proves could be reasonably avoided; and (iv) any other
amount necessary to compensate Landlord for all the detriment proximately caused by the Tenant’s
failure to perform its obligations under this Lease or which in the ordinary course of things would
be likely to result therefrom, including but not limited to the cost of recovering possession of
the Premises, expenses of reletting, including necessary renovation and alteration of the Premises,
reasonable attorneys’ fees, and that portion of any leasing commission paid by Landlord in
connection with this Lease applicable to the unexpired term of this Lease. The worth at the time
of award of the amount referred to in provision (iii) of the immediately preceding sentence shall
be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San
Francisco or the Federal Reserve Bank District in which the Premises are located at the time of
award plus one percent (1%). Efforts by Landlord to mitigate damages caused by Tenant’s Default or
Breach of this Lease shall not waive Landlord’s right to recover damages under this Paragraph 13.2.
If termination of this Lease is obtained through the provisional remedy of unlawful detainer,
Landlord shall have the right to recover in such proceeding the unpaid rent and damages as are
recoverable therein, or Landlord may reserve the right to recover all or any part thereof in a
separate suit for such rent and/or damages. If a notice and grace period required under
Subparagraph 13.1 (b), (c) or (d) was not previously given, a notice to pay rent or quit, or to
perform or quit, as the case may be, given to Tenant under any statute authorizing the forfeiture
of leases for unlawful detainer shall also constitute the applicable notice for grace period
purposes required by Subparagraph 13.1 (b), (c) or (d). In such case, the applicable grace period
under the unlawful detainer statue shall run concurrently after the one such statutory notice, and
the failure of Tenant to cure the Default within the greater of the two (2) such grace periods
shall constitute both an unlawful detainer and a Breach of this Lease entitling Landlord to the
remedies provided for in this Lease and/or by said statute.

          (b) Continue the Lease and Tenant’s right to possession in effect (in California under
California Civil Code Section 1951.4) after Tenant’s Breach and recover the rent as it becomes due,
provided Tenant has the right to sublet or assign, subject only to reasonably limitations.
Landlord and Tenant agree that the limitations on assignment and subletting in this Lease are
reasonable. Acts of maintenance or preservation, efforts to relet the Premises, or the appointment
of a receiver to protect the Landlord’s interest under this Lease, shall not constitute a
termination of the Tenant’s right to possession.

          (c) Pursue any other remedy now or hereafter available to Landlord under the laws or judicial
decisions of the state wherein the Premises are located.

          (d) The expiration or termination of this Lease and/or the termination of Tenant’s right to
possession shall not relieve Tenant from liability under any indemnity

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provisions of this Lease as to matters occurring or accruing during the term hereof or by
reason of Tenant’s occupancy of the Premises.

     13.3 Inducement Recapture in Event of Breach. Any agreement by Landlord for free or abated
rent or other charges applicable to the Premises, or for the giving or paying by Landlord to or for
Tenant of any cash or other bonus, inducement or consideration for Tenant’s entering into this
Lease, all of which concessions are hereinafter referred to as “Inducement Provisions” shall be
deemed conditioned upon Tenant’s full and faithful performance of all of the terms, covenants and
conditions of this Lease to be performed or observed by Tenant, any such Inducement Provision shall
automatically be deemed deleted from this Lease and of no further force or effect, and any rent,
other charge, bonus, inducement or consideration theretofore abated, given or paid by Landlord
under such an Inducement Provision shall be immediately due and payable by Tenant to Landlord, and
recoverable by Landlord, as additional rent due under this Lease, notwithstanding any subsequent
cure of said Breach by Tenant. The acceptance by Landlord of rent or the cure of the Breach which
initiated the operation of this Paragraph 13.3 shall not be deemed a waiver by Landlord of the
provisions of this Paragraph 13.3 unless specifically so stated in writing by Landlord at the time
of such acceptance.

     13.4 Late Charges. Tenant hereby acknowledges that late payment by Tenant to Landlord of rent
and other sums due hereunder will cause Landlord to incur costs not contemplated by this Lease, the
exact amount of which will be extremely difficult to ascertain. Such costs include, but are not
limited to, processing and accounting charges, and late charges which may be imposed upon Landlord
by the terms of any ground lease, mortgage or deed of trust covering the Premises. Accordingly, if
any installment of rent or other sum due from Tenant shall not be received by Landlord or
Landlord’s designee within five (5) days after such amount shall be due, then, without any
requirement for notice to Tenant, Tenant shall pay to Landlord a late charge equal to ten percent
(10%) of such overdue amount. The parties hereby agree that such late charge represents a fair and
reasonable estimate of the costs Landlord will incur by reason of late payment by Tenant.
Acceptance of such late charge be Landlord shall in no event constitute a waiver of Tenant’s
Default or Breach with respect to such overdue amount, nor prevent Landlord from exercising any of
the other rights and remedies granted hereunder. In the event that a late charge is payable
hereunder, whether or not collected, for three (3) consecutive installments of Base Rent, then
notwithstanding Paragraph 4.1 or any other provision of this Lease to the contrary, Base Rent
shall, at Landlord’s option, become due and payable quarterly in advance.

     13.5 Breach by Landlord. Landlord shall not be deemed in breach of this Lease unless Landlord
fails within a reasonable time to perform an obligation required to be performed by Landlord. For
purposes of this Paragraph 13.5, a reasonable time shall in no event be less than thirty (30) days
after receipt by Landlord, and by any Lender(s) whose name and address shall have been furnished to
Tenant in writing for such purpose, of written notice specifying wherein such obligation of
Landlord has not been performed; provided, however, that if the nature of Landlord’s obligation is
such that more than thirty (30) days after such notice are reasonably required for its performance,
then Landlord shall not be in breach of this Lease if performance is commenced within such thirty
(30) day period and thereafter diligently pursued to completion.

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14. Condemnation. If the Premises or any portion thereof are taken under the power of eminent domain
or sold under the threat of the exercise of said power (all of which are herein called
“condemnation”), this Lease shall terminate as to the part so taken as of the date the condemning
authority takes title or possession, whichever first occurs. If more than twenty five percent
(25%) of the floor area of the Premises, or more than twenty-five percent (25%) of the portion of
the Common Areas designated for Tenant’s parking, is taken by condemnation, Tenant may, at Tenant’s
option, to be exercised in writing within ten (10) days after Landlord shall have given Tenant
written notice of such taking (or in the absence of such notice, within ten (10) days after the
condemning authority shall have taken possession) terminate this Lease as of the date the
condemning authority takes such possession. If Tenant does not terminate this Lease in accordance
with the foregoing, this Lease shall remain in full force and effect as to the portion of the
Premises remaining, except that the Base Rent shall be reduced in the same proportion as the
rentable floor area of the Premises taken bears to the total rentable floor area of the Premises.
No reduction of the Base Rent shall occur if the condemnation does not apply to any portion of the
Premises. Any award for the taking of all or any part of the Premises under the power of eminent
domain or any payment made under threat of the exercise of such power shall be the property of
Landlord, whether such award shall be made as compensation for diminution of value of the leasehold
or for the taking of the fee, or as severance damages; provided, however, that Tenant shall be
entitled to any compensation, separately awarded to Tenant for Tenant’s relocation expenses and/or
loss of Tenant’s Trade Fixtures. In the event that this Lease is not terminated by reason of such
condemnation, Landlord shall to the extent of its net severance damages received, over and above
Tenant’s Share of the legal and other expenses incurred by Landlord in the condemnation matter,
repair any damage to the Premises caused by such condemnation authority. Tenant shall be
responsible for the payment of any amount in excess of such net severance damages required to
complete such repair.Broker’s Fees.

     15.1 Procuring Cause. The Broker(s) named in Paragraph 1.10 is/are the procuring cause of
this Lease.

     15.2 Additional Terms. Unless Landlord and Broker(s) have otherwise agreed in writing,
Landlord agrees that: (a) if Tenant exercises any Option (as defined in Paragraph 39.1) granted
under this Lease or any Option subsequently granted, or (b) if Tenant acquires any rights to the
Premises or other premises in which Landlord has an interest, or (c) if Tenant remains in
possession of the Premises with the consent of Landlord after the expiration of the term of this
Lease after having failed to exercise an Option, or (d) if said Brokers are the procuring cause of
any other lease or sale entered into between the Parties pertaining to the Premises and/or any
adjacent property in which Landlord has an interest, or (e) if Base Rent is increased, whether by
agreement or operation of an escalation clause herein, then as to any of said transactions,
Landlord shall not be liable to said Broker(s) to pay a fee.

     15.3 Assumption of Obligations. Any buyer or transferee of Landlord’s interest in this Lease,
whether such transfer is by agreement or by operation of law, shall be deemed to have assumed
Landlord’s obligation under this Paragraph 15.

     15.4 Representations and Warranties. Tenant and Landlord each represent and warrant to the
other that it has had no dealings with any person, firm, broker or finder other than as named in
Paragraph 1.10(a) in connection with the negotiation of this Lease and/or the

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consummation of the transaction contemplated hereby, and that no broker or other person, firm or entity other than said
named Broker(s) is entitled to any commission or finder’s fee in connection with said transaction.
Tenant and Landlord do each hereby agree to indemnify, protect, defend and hold the other harmless
from and against liability for compensation or charges which may be claimed by any such unnamed
broker, finder or other similar party by reason of any dealings or actions of the indemnifying
Party, including any costs, expenses, and/or attorneys’ fees reasonably incurred with respect
thereto.

16. Tenancy and Financial Statements.

     16.1 Tenancy Statement. Each Party (as “Responding Party”) shall within ten (10) days after
written notice from the other Party (the “Requesting Party”) execute, acknowledge and deliver to
the Requesting Party a statement in writing in a form similar to the then most current “Tenancy
Statement” form published by the American Industrial Real Estate Association, plus such additional
information, confirmation and/or statements as may be reasonably requested by the Requesting Party.

     16.2 Financial Statement. If Landlord desires to finance, refinance, or sell the Premises or
the Building, or any part thereof, Tenant and all the Guarantors shall deliver to any potential
lender or purchaser designated by Landlord such financial statements of Tenant and such Guarantors
as may be reasonably required by such lender or purchaser, including but not limited to Tenant’s
financial statements for the past three (3) years. All such financial statements shall be received
by Landlord and such lender or purchaser in confidence and shall be used only for the purposes
herein set forth.

17. Landlord’s Liability. The term “Landlord” as used herein shall mean the owner or owners at the
time in question of the fee title to the Premises. In the event of a transfer of Landlord’s title
or interest in the Premises or in this Lease, Landlord shall deliver to the transferee or assignee
(in cash or by credit) any unused Security Deposit held by Landlord at the time of such transfer or
assignment. Except as provided in Paragraph 15.3, upon such transfer or assignment and delivery of
the Security Deposit, as aforesaid, the prior Landlord shall be relieved of all liability with
respect to the obligations and/or covenants under this Lease thereafter to be performed by
Landlord. Subject to the foregoing, the obligations and/or covenants in this Lease to be performed
by the Landlord shall be binding only upon the Landlord as herein above defined. Notwithstanding
any other terms or provisions of this lease, Tenant agrees that in the event of any default or
breach by Landlord with respect to any of the terms of the Lease to be observed and performed by
Landlord (a) Tenant shall look solely to the estate and property (which is the subject of this
lease) of Landlord or any successor in interest in the property and the Building, for the
satisfaction of Tenant’s remedies for the collection of a judgment (or other judicial process)
requiring the payment of money by Landlord; (b) no other property or assets of Landlord, its
partners, members, shareholders, officers or any successor in interest shall be subject to levy,
execution or other enforcement procedure for the satisfaction if Tenant’s remedies;(c) no personal
liability shall at any time be asserted or enforceable against Landlord, it’s partner’s, members or
successors in interest (except to the extent permitted in (a) above), and no judgment will be taken against any partner, member, shareholder, officer or director
of Landlord. The provisions of this section shall apply only to the Landlord and the parties herein
described, and shall not be for the benefit of any insurer nor any other third party.

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18. Severability. The invalidity of any provision of this Lease, as determined by a court of competent
jurisdiction, shall in no way affect the validity of any other provision hereof.

19. Interest on Past-Due Obligations. Any monetary payment due Landlord hereunder, other than late
charges, not received by Landlord within ten (10) days following the date on which it was due,
shall bear interest from the date due at the prime rate charged by the largest state chartered bank
in the state in which the Premises are located plus four percent (4%) per annum, but not exceeding
the maximum rate allowed by law, in addition to the potential late charge provided for in Paragraph
13.4.

20. Time of Essence. Time is of the essence with respect to the performance of all obligations to be
performed or observed by the Parties under this Lease.

21. Rent Defined. All monetary obligations of Tenant to Landlord under the terms of this Lease are
deemed to be rent.

22. No Prior or other Agreements; Broker Disclaimer. This Lease contains all agreements between the
Parties with respect to any matter mentioned herein, and no other prior or contemporaneous
agreement or understanding shall be effective. Landlord and Tenant each represents and warrants to
the Brokers that it has made, and is relying solely upon, its own investigation as to the nature,
quality, character and financial responsibility of the other Party to this Lease and as to the
nature, quality and character of the Premises. Brokers have no responsibility with respect thereto
or with respect to any default or breach hereof by either Party. Each Broker shall be an intended
third party beneficiary of the provisions of this Paragraph 22.

23. Notices.

     23.1 Notice Requirements. All notices required or permitted by this Lease shall be in writing
and may be delivered in person (by hand or by messenger or courier service) or may be sent by
regular, certified or registered mail or U.S. Postal Service Express Mail, with postage prepaid, or
by facsimile transmission during normal business hours, and shall be deemed sufficiently given if
served in a manner specified in this Paragraph 23. The addresses noted adjacent to a Party’s
signature on this Lease shall be that Party’s address for delivery or mailing of notice purposes.
Either Party may by written notice to the other specify a different address for notice purposes,
except that upon Tenant’s taking possession of the Premises, the Premises shall constitute Tenant’s
address for the purpose of mailing or delivering notices to Tenant. A copy of all notices required
or permitted to be given to Landlord hereunder shall be concurrently transmitted to such party or
parties at such addresses as Landlord may from time to time hereafter designate by written notice
to Tenant.

     23.2 Date of Notice. Any notice sent by registered or certified mail, return receipt
requested, shall be deemed given on the date of delivery shown on the receipt card, or if no
delivery date is shown, the postmark thereon. If sent by regular mail, the notice shall be deemed
given forty-eight (48) hours after the same is addressed as required herein and mailed with postage prepaid. Notices delivered by United States Express Mail or overnight courier that
guarantees next day delivery shall be deemed given twenty-four (24) hours after delivery of the
same to the United States Postal Service or courier. If any notice is transmitted by facsimile

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transmission or similar means, the same shall be deemed served or delivered upon telephone or
facsimile confirmation of receipt of the transmission thereof, provided a copy is also delivered
via delivery or mail. If notice is received on a Saturday or a Sunday or a legal holiday, it shall
be deemed received on the next business day.

24. Waivers. No waiver by Landlord of the Default or Breach of any term covenant or condition hereof
by Tenant, shall be deemed a waiver of any other term, covenant or condition hereof, or of any
subsequent Default or Breach by Tenant of the same or any other term, covenant or condition hereof.
Landlord’s consent to, or approval of, any such act shall not be deemed to render unnecessary the
obtaining of Landlord’s consent to, or approval of, any subsequent or similar act by Tenant, or be
construed as the basis of an estoppel to enforce the provision or provisions of this Lease
requiring such consent. Regardless of Landlord’s knowledge of a Default or Breach at the time of
accepting rent, the acceptance of rent by Landlord shall not be a waiver of any Default or Breach
by Tenant of any provision hereof. Any payment given Landlord by Tenant may be accepted by
Landlord on account of moneys or damages due Landlord, notwithstanding any qualifying statements or
conditions made by Tenant in connection therewith, which such statements and/or conditions shall be
of no force or effect whatsoever unless specifically agreed to in writing by Landlord at or before
the time of deposit of such payment.

25. Recording. Either Landlord or Tenant shall, upon request of the other, execute, acknowledge and
deliver to the other a short form memorandum of this Lease for recording purposes. The Party
requesting recordation shall be responsible for payment of any fees or taxes applicable thereto.

26. No Right To Holdover. Tenant has no right to retain possession of the Premises or any part thereof
beyond the expiration or earlier termination of this Lease. In the event that Tenant holds over in
violation of this Paragraph 26 then the Base Rent payable from and after the time of the expiration
or earlier termination of this Lease shall be increased to one hundred fifty percent (150%) of the
Base Rent applicable during the month immediately preceding such expiration or earlier termination.
Nothing contained herein shall be construed as a consent by Landlord to any holding over by
Tenant.

27. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever
possible, be cumulative with all other remedies at law or in equity.

28. Covenants and Conditions. Al provisions of this Lease to be observed or performed by Tenant are
both covenants and conditions.

29. Binding Effect; Choice of Law. This Lease shall be binding upon the Parties, their personal
representatives, successors and assigns and be governed by the laws of the State in which the
Premises are located. Any litigation between the Parties hereto concerning this Lease shall be
initiated in the county in which the Premises are located.

30. Subordination; Attornment; Non-Disturbance.

     30.1 Subordination. This Lease and any Option granted hereby shall be subject and subordinate
to any ground lease, mortgage, deed of trust, or other hypothecation or security

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device (collectively, “Security Device”), now or hereafter placed by Landlord upon the real property of
which the Premises are a part, to any and all advances made on the security thereof, and to all
renewals, modifications, consolidations, replacements and extensions thereof. Tenant agrees that
the Lenders holding any such Security Device shall have no duty, liability or obligation to perform
any of the obligations of Landlord under this Lease, but that in the event of Landlord’s default
with respect to any such obligation, Tenant will give any Lender whose name and address have been
furnished Tenant in writing for such purpose notice of Landlord’s default pursuant to Paragraph
13.5. If any Lender shall elect to have this Lease and/or any Option granted hereby superior to
the lien of its Security Device and shall give written notice thereof to Tenant, this Lease and
such Options shall be deemed prior to such Security Device, notwithstanding the relative dates of
the documentation or recordation thereof.

     30.2 Attornment. Subject to the non-disturbance provisions of Paragraph 30.3, Tenant agrees
to attorn to a Lender or any other party who acquires ownership of the Premises by reason of a
foreclosure of a Security Device, and that in the event of such foreclosure, such new owner shall
not: (i) be liable for any act or omission of any prior Landlord or with respect to events
occurring prior to acquisition of ownership, (ii) be subject to any offsets or defenses which
Tenant might have against any prior Landlord, or (iii) be bound by prepayment of more than one
month’s rent.

     30.3 Non-Disturbance. With respect to Security Devices entered into by Landlord after the
execution of this lease, Tenant’s subordination of this Lease shall be subject to receiving
assurance (a “non-disturbance agreement”) from the Lender that Tenant’s possession and this Lease,
including any options to extend the term hereof, will not be disturbed so long as Tenant is not in
Breach hereof and attorns to the record owner of the Premises.

     30.4 Self-Executing. The agreements contained in this Paragraph 30 shall be effective without
the execution of any further documents; provided, however, that upon written request from Landlord
or a Lender in connection with a sale, financing or refinancing of Premises, Tenant and Landlord
shall execute such further writings as may be reasonably required to separately document any such
subordination or non-subordination, attornment and/or non-disturbance agreement as is provided for
herein.

31. Attorneys’ Fees. If any Party brings an action or proceeding to enforce the terms hereof or
declare rights hereunder, the Prevailing Party (as hereafter defined) in any such proceeding,
action, or appeal thereon, shall be entitled to reasonable attorneys’ fees, costs and expenses.
Such fees may be awarded in the same suit or recovered in a separate suit, whether or not such
action or proceeding is pursued to decision or judgment. The term “Prevailing Party” shall
include, without limitation, a Party who substantially obtains or defeats the relief sought, as the
case may be whether by compromise, settlement, judgment, or the abandonment by the other Party or
Broker of its claim or defense. The attorneys’ fee award shall not be computed in accordance with
any court fee schedule, but shall be such as to full reimburse all attorneys fees, cost and
expenses reasonably incurred. Landlord shall be entitled to attorneys’ fees, costs and
expenses incurred in preparation and service of notices of Default and consultations in connection
therewith, whether or not a legal action is subsequently commenced in connection with such Default
or resulting Breach.

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32. Landlord’s Access; Showing Premises; Repairs. Landlord and Landlord’s agents shall have the right
to enter the Premises at any time, in the case of an emergency, and otherwise at reasonable times
for the purpose of showing the same to prospective purchasers, lenders, or during the final 8
months of the term tenants, and make such alterations, repairs, improvements or additions to the
Premises or to the Building, as Landlord may reasonably deem necessary; provided Landlord and its
agents or employees comply with Tenant’s risk management policies (which may include having such
person escorted at all times by an employee of Tenant). Landlord may at any time place on or about
the Premises or Building any ordinary “For Sale” signs and Landlord may at any time during the last
one hundred eighty (180) days of the term hereof place on or about the Premises any ordinary “For
Lease” signs. All such activities of Landlord shall be without abatement of rent or liability to
Tenant.

33. Auctions. Tenant shall not conduct, nor permit to be conducted, either voluntarily or
involuntarily, any auction upon the Premises without first having obtained Landlord’s prior written
consent. Notwithstanding anything to the contrary in this Lease, Landlord shall not be obligated
to exercise any standard of reasonableness in determining whether to grant such consent.

34. Signs. Tenant shall not place any sign upon the exterior of the Premises or the Building, except
that Tenant may, with Landlord’s prior written consent, install (but not on the roof) such signs as
are reasonably required to advertise Tenant’s own business so long as such signs are in a location
designated by Landlord and comply with Applicable Requirements and the signage criteria established
for the Industrial Center by Landlord. The installation of any sign on the Premises by or for
Tenant shall be subject to the provisions of Paragraph 7 (Maintenance, Repairs, Utility
Installations, Trade Fixtures and Alterations). Unless otherwise expressly agreed herein, Landlord
reserves all rights to the use of the roof of the Building and the right to install advertising
signs on the Building, including the roof, which do not unreasonably interfere with the conduct of
Tenant’s business; Landlord shall be entitled to all revenues from such advertising signs.

35. Termination; Merger. Unless specifically stated otherwise in writing by Landlord, the voluntary or
other surrender of this Lease by Tenant, the mutual termination or cancellation hereof, or a
termination hereof by Landlord for Breach by Tenant, shall automatically terminate any sublease or
lesser estate in the Premises; provided, however, Landlord shall, in the event of any such
surrender, termination or cancellation, have the option to continue any one or all of any existing
subtenancies. Landlord’s failure within ten (10) days of following any such event to make a
written election to the contrary by written notice to the holder of any such lesser interest, shall
constitute Landlord’s election to have such event constitute the termination of such interest.

36. Consents.

          (a) Except for Paragraph 12 (subleases) and Paragraph 33 (Auctions) or as otherwise provided
herein, wherever in this Lease the consent of a Party is required to an act by or for the other Party, such consent shall not be unreasonably withheld or delayed.
Landlord’s actual reasonable costs and expenses (including but not limited to architects’.
attorneys’, engineers’ and other consultants’ fees) incurred in the consideration of, or response
to, a request by Tenant for any Landlord consent pertaining to this Lease or the Premises,
including but not

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limited to consents to an assignment a subletting or the presence or use of a
Hazardous Substance, shall be paid by Tenant to Landlord upon receipt of an invoice and supporting
documentation therefor. In addition to the deposit described in Paragraph 12.2(e), Landlord may,
as condition to considering any such request by Tenant, require that Tenant deposit with Landlord
an amount of money (in addition to the Security Deposit held under Paragraph 5) reasonably
calculated by Landlord to represent the cost Landlord will incur in considering and responding to
Tenant’s request. Any unused portion of said deposit shall be refunded to Tenant without interest.
Landlord’s consent to any act, assignment of this Lease or subletting of the Premises by Tenant
shall not constitute an acknowledgment that no Default or Breach by Tenant of this Lease exists,
nor shall such consent be deemed a waiver of any then existing Default or Breach, except as may be
otherwise specifically stated in writing by Landlord at the time of such consent.

          (b) All conditions to Landlord’s consent authorized by this Lease are acknowledged by Tenant
as being reasonable. The failure to specify herein any particular condition to Landlord’s consent
shall not preclude the impositions by Landlord at the time of consent of such further or other
conditions as are then reasonable with reference to the particular matter for which consent is
being given.

37. Guarantor.

     37.1 Form of Guaranty. If there are to be any Guarantors of this Lease per Paragraph 1.11,
the form of the guaranty to be executed by each such Guarantor shall be in the form most recently
published by the American Industrial Real Estate Association, and each such Guarantor shall have
the same obligations as Tenant under this lease, including but not limited to the obligation to
provide the Tenancy Statement and information required in Paragraph 16.

     37.2 Additional Obligations of Guarantor. It shall constitute a Default of the Tenant under
this Lease if any such Guarantor fails or refuses, upon reasonable request by Landlord to give: (a)
evidence of the due execution of the guaranty called for by this Lease, including the authority of
the Guarantor (and of the party signing on Guarantor’s behalf) to obligate such Guarantor on said
guaranty, and resolution of its board of directors authorizing the making of such guaranty,
together with a certificate of incumbency showing the signatures of the persons authorized to sign
on its behalf, (b) current financial statements of Guarantor as may from time to time be requested
by Landlord, (c) a Tenancy Statement, or (d) written confirmation that the guaranty is still in
effect.

38. Quiet Possession. Upon payment by Tenant of the rent for the Premises and the performance of all
of the covenants, conditions and provisions on Tenant’s part to be observed and performed under
this Lease, Tenant shall have quiet possession of the Premises for the entire term hereof subject
to all of the provisions of this Lease.

39. Options.

     39.1 Definition. As used in this Lease, the word “Option” has the following meaning: (a) the
right to extend the term of this Lease or to renew this Lease or to extend or renew any lease that
Tenant has on other property of Landlord.

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     39.2 Options Personal to Original Tenant. Each Option granted to Tenant in this Lease is
personal to the original Tenant named in Paragraph 1.1 hereof and its Permitted Transferees as set
forth in Section 12.4, and cannot be voluntarily or involuntarily assigned or exercised by any
person or entity other than said original Tenant or such Permitted Transferee while the original
Tenant or such Permitted Transferee is in full and actual possession of the Premises and without
the intention of thereafter assigning or subletting. Except to a Permitted Transferee, the
Options, if any, herein granted to Tenant are not assignable, either as a part of an assignment of
this Lease or separately or apart therefrom, and no Option may be separated from this Lease in any
manner, by reservation or otherwise.

     39.3 Multiple Options. In the event that Tenant has any multiple Options to extend or renew
this Lease, a later option cannot be exercised unless the prior Options to extend or renew this
Lease have been validly exercised.

     39.4 Effect of Default on Options.

          (a) Tenant shall have no right to exercise an Option, notwithstanding any provision in the
grant of Option to the contrary: (i) during the period commencing with the giving of any notice of
Default under Paragraph 13.1 and continuing until the noticed Default is cured, or (ii) during the
period of time any monetary obligation due Landlord from Tenant is unpaid (without regard to
whether notice thereof is given Tenant), or (iii) during the time Tenant is in Breach of this
Lease, or (iv) in the event that Landlord has given to Tenant three (3) or more notices of separate
Defaults under Paragraph 13.1 during the twelve (12) month period immediately preceding the
exercise of the Option, whether or not the Defaults are cured.

          (b) The period of time within which an Option may be exercised shall not be extended or
enlarged by reason of Tenant’s inability to exercise an Option because of the provisions of
Paragraph 39.4(a)

          (c) All rights of Tenant under the provisions of an Option shall terminate and be of no
further force or effect, notwithstanding Tenant’s due and timely exercise of the Option, if, after
such exercise and during the term of this Lease, (i) Tenant fails to pay to Landlord a monetary
obligation of Tenant for a period of thirty (30) days after such obligation becomes due (without
any necessity of Landlord to give notice thereof to Tenant), or (ii) Landlord gives to Tenant three
(3) or more notices of separate Defaults under Paragraph 13.1 during any twelve (12) month period,
whether or not the Defaults are cured, or (iii) if Tenant commits a Breach of this Lease.

40. Rules and Regulations. Tenant agrees that it will abide by, and keep and observe all reasonable
rules and regulations (“Rules and Regulations”) which Landlord may make from time to time for the
management, safety, care, and cleanliness of the grounds, the parking and unloading of vehicles and the preservation of good order, as well as for the convenience of other
occupants or tenants of the Building and the Industrial Center and their invitees.

41. Security Measures. Tenant hereby acknowledges that the rental payable to Landlord hereunder does
not include the cost of guard service or other security measures, and that Landlord shall have no
obligation whatsoever to provide same. Tenant assumes all responsibility

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for the protection of the Premises, Tenant, its agents and invitees and their property from the acts of third parties.

42. Reservations. Landlord reserves the right, from time to time, to grant, without the consent or
joinder of Tenant, such easements, rights of way, utility raceways, and dedications that Landlord
deems necessary, and to cause the recordation of parcel maps and restrictions, so long as such
easements, rights of way, utility raceways, dedications, maps and restrictions do not reasonably
interfere with the use of the Premises by Tenant. Tenant agrees to sign any documents reasonably
requested by Landlord to effectuate any such easement rights, dedication, map or restrictions.

43. Performance Under Protest. If at any time a dispute shall arise as to any amount or sum of money
to be paid by one Party to the other under the provisions hereof, the Party against whom the
obligation to pay the money is asserted shall have the right to make payment “under protest” and
such payment shall not be regarded as a voluntary payment and there shall survive the right on the
part of said Party to institute suit for recovery of such sum. If it shall be adjudged that there
was no legal obligation on the part of said Party to pay such sum or any part thereof, said Party
shall be entitled to recover such sum or so much thereof as it was not legally required to pay
under the provisions of this Lease.

44. Authority. If either Party hereto is a corporation, trust, limited liability company, or general
or limited partnership, each individual executing this Lease on behalf of such entity represents
and warrants that he or she is duly authorized to execute and deliver this Lease on it’s behalf and
that such entity is duly authorized and existing and qualified to do business in California and
that Tenant has the full right and legal authority to enter into this lease.

45. Conflict. Any conflict between the printed provisions of this Lease and the typewritten or
handwritten provisions shall be controlled by the typewritten or handwritten provisions.

46. Offer. Preparation of this Lease by either Landlord or Tenant or Landlord’s agent or Tenant’s
agent and submission of same to Tenant or Landlord shall not be deemed an offer to lease. This
Lease is not intended to be binding until executed and delivered by all Parties hereto.

47. Amendments. This Lease may be modified only in writing, signed by the parties in interest at the
time of the modification. The Parties shall amend this Lease from time to time to reflect any
adjustments that are made to the Base Rent or other rent payable under this Lease. As long as they
do not materially change Tenant’s obligations hereunder, Tenant agrees to make such reasonable
non-monetary modification to this Lease as may be reasonably required by an institutional insurance
company or pension plan Lender in connection with the obtaining of normal financing or refinancing
of the property of which the Premises are a part.

48. Multiple Parties. Except as otherwise expressly provided herein, if more than one person or entity
is named herein as either Landlord or Tenant, the obligations of such multiple parties shall be the
joint and several responsibility of all persons or entities named herein as such Landlord or
Tenant.

49. Tenant Improvements. Landlord, at Landlord’s sole cost and expense shall deliver the Premises to
Tenant on or before December 1, 2008, clean and free of debris with all items of

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Landlord’s work, including without limitation, the installation of the Tenant Improvements completed in accordance
with the terms of the attached Exhibit B.

50. Furniture. Landlord hereby leases to Tenant at no additional cost the furniture and cubicles
currently in the Premises as set forth on Exhibit C (the “Furniture”).

          (a) The term of this lease for the Furniture shall commence on the Commencement Date and shall
be co-terminus with the Lease. Possession of the Furniture shall be delivered to Tenant on the
Commencement Date and shall be returned to Landlord upon the expiration or earlier termination of
this lease.

          (b) Tenant accepts the Furniture in its “as is” “where is” condition and Tenant acknowledges
that Landlord makes no warranty as to the condition of the Furniture or its present or future
suitability for Tenant’s purposes.

          (c) This lease of Furniture is a net lease, and as such, Tenant shall pay maintenance,
insurance and taxes on all Furniture leased hereunder. The Furniture shall be held at all times
during the term hereof at the sole risk of Tenant from injury, loss or destruction with the
obligation of restoration or reimbursement to Landlord.

          (d) Upon the termination of this Lease, Tenant shall return the Furniture to Landlord in the
same condition as when received, ordinary wear and tear excepted, conditioned on the obligations
set forth in the next sentence having been accomplished. Tenant is responsible for performing all
maintenance, repair and cleaning of the Furniture, which may be necessary to maintain the Furniture
in the condition in which it was initially provided to Tenant. Tenant shall use the Furniture in a
careful and proper manner, and shall comply with all laws and regulations relating to the
possession and use of the Furniture. Landlord shall have the right to inspect the Furniture during
business hours upon prior notice.

          (e) Tenant covenants that: (i) Tenant will not, without the prior written consent of Landlord,
assign (other than pursuant to an approved transfer under Section 12 hereof), pledge, loan,
mortgage, or part with possession of any of the Furniture, or in any other manner attempt to
dispose of it, or permit its use by others or suffer any liens or legal process to be incurred or
levied thereon; (ii) Tenant will not make any alterations or permit any alternations to be made on
or to the Furniture without the written consent of the Landlord and (iii) Tenant will keep and
maintain Furniture at the Premises and will not permit any of the Furniture to be removed from such
location without Landlord’s prior written consent.

          (f) In addition to any other obligations of Tenant hereunder, Tenant shall indemnify and hold
harmless Landlord from and against any and all claims arising from Tenant’s use of the Furniture,
and from and against all costs, attorneys’ fees, expenses and liabilities incurred in the defense of such claim or any action or proceeding brought thereon; and in case
any action or proceeding be brought against Landlord by reason of any such claim, Tenant, upon
written notice from Landlord, shall defend the same at Tenant’s expense and by counsel satisfactory
to Landlord. Tenant, as a material part of the consideration to Landlord, hereby assumes all risk
of damage to property or injury to persons arising from any cause connected with Furniture and
waives all claims in respect there of against Landlord.

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          (g) In addition to any other obligation of Tenant hereunder, Tenant agrees that Landlord shall
not be liable for injury to Tenant’s business or any loss of income therefrom or for damage to the
goods, wares, merchandise or other property of Tenant, Tenant’s employees, invitees, customers or
any other person occasioned by in or connection with Tenant’s possession of use of any of the
Furniture, nor shall Landlord be liable for injury to the person of Tenant, Tenant’s employees,
agents or contractors occasioned by or in connection with Tenant’s possession or use of any of the
Leased Furniture.

          (h) The Furniture shall at all times be and remain the exclusive property of Landlord, and
Tenant shall have no title therein. Tenant shall, at its sole cost and expense, at all times
protect and defend the title of t Landlord in the Furniture from and against all liens, claims and
legal processes of the creditors of Tenant and keep the Furniture free of such liens, claims and
encumbrances,. The Furniture or any of Tenant’s rights under this Lease shall not be assigned or
transferred by Tenant to any person, firm or corporation without the prior written consent of
Landlord other than to a Permitted Transferee as set forth in Section 12.4 hereof, and any
attempted assignment or transfer in violation hereof shall, at the option of Landlord, be void.
Nothing contained herein, however, shall be deemed to limit or otherwise restrict Landlord’s right
to transfer in any manner its interest in any or all of the Furniture or in this Lease.

          (i) Tenant shall, during the term of this Lease, pay and discharge all license fees,
assessments and sales, use property and other tax or taxes now or hereafter imposed by any state,
Federal or local government upon the ownership, leasing, renting, sale, possession or use of the
Furniture whether the same be assessed to Landlord or Tenant, together with any penalties or
interest in connection therewith, excepting Federal, state or local governmental taxes, or payments
in lieu thereof, imposed upon or measured by the income of Landlord. If any tax is, by law, to be
assessed or billed to Landlord, Tenant at is expense will do any and all things required to be done
by Landlord in connection with the levy, assessment, billing or payment of such taxes and is hereby
authorized by Landlord to act for and on behalf of Landlord in any and all respects. Tenant will
cause all billings of such taxes to Landlord to be made to it in care of Tenant and will from time
to time, on request of Landlord, submit written evidence of the payment of all of the governmental
obligations mentioned in this paragraph.

          (j) Tenant is Responsible for wiring of the Furniture.

          (k) Landlord represents and warrants that Landlord has full power, right and authority to
lease the Furniture to Tenant and Landlord is lawfully possessed of good title thereto free and
clear of all liens, encumbrances and creditors’ rights.

51. Option to Extend. Subject to the terms and conditions set forth below, Tenant may at its option
extend the Terms of this Lease for One (1) period of Three (3) years. Such period is
called the “Renewal Term.” The Renewal Term shall be upon the same terms contained in this Lease,
except that (i) Landlord shall have no obligation to provide Tenant with any Tenant Improvement
Allowance or demolition in connection with the Renewal Term, (ii) the Base Rental during the
Renewal Term shall be calculated as set forth below, and (iii) any reference in the Lease to the
“Term” of the Lease shall be deemed to include the Renewal Term and apply thereto, unless it is
expressly provided otherwise. Tenant shall have no additional extension options. The Base Rent
during the Renewal Term shall be at the then fair market rate (defined

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hereinafter) for such space for a term commencing of the first day of the Renewal Term. “Market Rate” shall mean the then
prevailing market rate for a comparable term commencing on the first day of the Renewal Term for
tenants of comparable size and creditworthiness for comparable space in the same geographic
location as the Bayside Business Park. In no event shall the rent be less than the 60th
Month’s rent and shall increase a minimum of 3% per year. To exercise any option, Tenant must
deliver a binding written notice to Landlord not sooner than nine (9) months nor later than six (6)
months prior to the expiration of the initial Term of this Lease. Thereafter, the Market Rate for
the Renewal Term shall be calculated pursuant to the prior sentences above and Landlord shall
inform Tenant of the Market Rate. If the parties cannot agree on the Market Rate, the parties
shall each appoint a real estate broker or appraiser (with at least 10 years experience in R&D
leasing in Silicon Valley) to determine the Market Rate. If the lower of the two is within 90% of
the higher of the two valuations, then the Market Rent shall be the average of the two. If the
lower of the two valuations is less than 90% of the higher valuation, then the two
brokers/appraisers originally selected by the parties shall select a third appraiser who shall
present their final determination of Market Rate to the third broker/appraiser, and the third
appraiser shall pick one of those two as being the Market Rate. The determination of the third
appraiser shall be binding on the parties. Each party shall bear the cost of its appraiser and the
cost of the third appraiser, if required, such be shared equally. The market rent shall be
determined within 60 days of the date of Tenant’s exercise of its option. In no event shall the
rent be less than the 60th month’s rent and shall increase by a minimum of 3% per year.
Notwithstanding anything to the contrary contained herein, in the event market rent is determined
to be less than rent due in the 60th month of the term hereof, Tenant shall have the
right, but not the obligation in its sole and absolute discretion to rescind its exercise of the
option to extend granted herein by written notice to Landlord and thereafter either Landlord nor
Tenant shall have any obligation to extend the initial term of this Lease. If Tenant fails to
timely give its notice of exercise, Tenant will be deemed to have waived its option to extend.

LANDLORD AND TENANT HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION
CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT
THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS
LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LANDLORD AND TENANT WITH
RESPECT TO THE PREMISES.

THIS LEASE PREPARED FOR YOUR ATTORNEY’S REVIEW AND APPROVAL. FURTHER, EXPERTS SHOULD BE CONSULTED
TO THE PRESENCE OF ASBESTOS, UNDERGROUND STORAGE TANKS OR HAZARDOUS SUBSTANCES. NO REPRESENTATION
OR RECOMMENDATION IS MADE BY THE AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION OR BY THE REAL ESTATE
BROKERS OR THEIR CONTRACTORS, AGENTS OR EMPLOYEES AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX
CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT RELATES; THE PARTIES SHALL RELY SOLELY
UPON THE ADVICE OF THEIR OWN COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE. IF THE
SUBJECT PROPERTY IS IN A STATE OTHER THAN CALIFORNIA, AN ATTORNEY FROM THE STATE WHERE THE PROPERTY
IS LOCATED SHOULD BE CONSULTED.

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The parties hereto have executed this Lease at the place and on the dates specified above their
respective signatures.

	 	 	 	 	 	 	 	 	 
	Executed at:

	 	 	 	 	 	Executed at:	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	on:

	 	 	 	 	 	on:	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 	 
	By Landlord:

	 	By Tenant:
	 
	 	 
	Fremont Ventures LLC

	 	Opnext, Inc.
	by D&M Ventures LP
	 	 
	its Managing Member
	 	 
	by David Dollinger Living Trust
	 	 
	its General Partner
	 	 
	 
	 	 
	By:

	 	By:
	 

	 	 

	David Dollinger, Trustee

	 	Name Printed: Gilles Bouchard

	 

	 	Title: Chief Operating Officer

	 
	 	 
	Address: 555 Twin Dolphin Dr. #600

	 	Address: 940 Auburn Court
	                 Redwood City, Ca. 94065

	 	                 Fremont, CA 94538
	Telephone: (650) 508-8666

	 	Telephone:(510) 580-8828
	Facsimile: (650) 508-8686

	 	Facsimile:(510) 580-8819

- 44 -exv10w31

exhibit 10.31

LEASE

THIS LEASE is made on the 14 day of MARCH, 2006, by and between Los Gatos Business Park, a
California limited partnership (hereinafter called “Lessor”) and StrataLight Communications, Inc.,
a Delaware corporation (hereinafter called “Lessee”).

IN CONSIDERATION OF THE MUTUAL PROMISES HEREIN CONTAINED, THE PARTIES AGREE AS FOLLOWS:

1. Premises. Lessor leases to Lessee, and Lessee leases from Lessor, upon the terms and
conditions herein set forth, those certain Premises (“Premises”) situated in the Town of Los Gatos,
County of Santa Clara, California, as outlined in Exhibit “A” attached hereto and described
as follows: approximately 33,290 rentable square foot building commonly known as 151 Albright Way,
Los Gatos, California. Lessee’s pro-rata share of the building is 100.00%.

2. Term. The term of this Lease shall be for five (5) years, commencing upon Substantial
Completion of the Lessee Improvements (the “Commencement Date”), as such terms are defined in the
Work Letter attached hereto as Exhibit B (the “Work Letter”), and ending on the last day of
the sixtieth (60th) full calendar month thereafter (the “Expiration Date”), unless
sooner terminated pursuant to any provision hereof. The parties anticipate that the Commencement
Date will occur on June 9,2006.

3. Rent. Commencing on the first day of the 1st Rent Year (as defined herein
below), Lessee shall pay to Lessor rent for the Premises according to the schedule below in lawful
money of the United States of America. Rent shall be paid without deduction or offset, prior
notice, or demand, at such place as may be designated from time to time by Lessor. Lessee shall pay
to Lessor $41,613.00 upon execution of the Lease, which sum represents the amount of the third
month’s rent. Monthly rent shall be paid in advance on the first (1st) day of each calendar month
as follows:

	 	 	 	 	 
	Period	 	Monthly Rent/NNN
	1st Rent Year
	 	$	41,613.00	 
	2nd Rent Year
	 	$	43,277.00	 
	3rd Rent Year
	 	$	44,942.00	 
	4th Rent Year
	 	$	46,606.00	 
	5th Rent Year
	 	$	48,271.00	 

The “1st Rent Year” shall commence on the date that is sixty (60) days after the
Commencement Date and shall end on the last day of the twelfth (12th) full calendar month following
the Commencement Date. Each period of twelve (12) calendar months thereafter shall be a “Rent Year”
except that the 5th Rent Year shall end on the Expiration Date. Lessee’s obligation to
pay the reimbursable expenses and utilities described in Section 10 of this Lease shall commence on
the Commencement Date.

     Rent for any period during the term hereof which is for less than one (1) full month shall be
a pro-rata portion of the monthly rent payment. Lessee acknowledges that late payment by Lessee

Page 1 of 29

 

to Lessor of rent or any other payment due Lessor will cause Lessor to incur costs not
contemplated by this Lease, the exact amount of such costs being extremely difficult and
impracticable to fix. Such costs include, without limitation, processing and accounting charges,
and late charges that may be imposed on Lessor by the terms of any encumbrance and note secured by
any encumbrance covering the Premises. Therefore, if any installment of rent or other payment due
from Lessee is not received by Lessor on the date it is due and payable, Lessee shall pay to
Lessor an additional sum of ten percent (10%) of the overdue amount as a late charge. The parties
agree that this late charge represents a fair and reasonable estimate of the costs that Lessor
will incur by reason of late payment by Lessee. Acceptance of any late charge shall not constitute
a waiver of Lessee’s default with respect to the overdue amount, nor prevent Lessor from
exercising any of the other rights and remedies available to Lessor. Notwithstanding the
foregoing, Lessor shall give Lessee notice of non-payment of any rent or other payments required
of Lessee under this Lease and five (5) business days after delivery of such notice to cure such
non-payment once in each calendar year before assessing the late charge in such calendar year
pursuant to this Paragraph 3.

     If, for any reason whatsoever, Lessor cannot deliver possession of the Premises on the
commencement date set forth in Paragraph 2 above, this Lease shall not be void or voidable, nor
shall Lessor be liable to Lessee for any loss or damage resulting therefrom; but in such event,
Lessee shall not be obligated to pay rent until possession of the Premises is tendered to Lessee
and the commencement and termination dates of this Lease shall be revised to conform to the date of
Lessor’s delivery of possession. Notwithstanding anything to the contrary in this Lease: (1) if the
Commencement Date has not occurred for any reason whatsoever, other than a Lessee Delay (as such
term is defined in the Work Letter) on or before June 30, 2006, then, the date Lessee is otherwise
obliged to commence payment of rent shall be delayed by one day for each day that the Commencement
Date is delayed beyond June 30, 2006, and (2) if the Commencement Date has not occurred for any
reason whatsoever, other than a Lessee Delay (as such term is defined in the Work Letter) on or
before July 31, 2006, in addition to Lessee’s other rights or remedies, Lessee may, at any time
thereafter, terminate the Lease by written notice to Lessor, whereupon any security deposit and any
advance payment of rent previously paid by Lessee to Lessor shall be promptly reimbursed to Lessee.
Upon mutual execution and delivery of this Lease, Lessor shall provide Lessee with early access to
the Premises for the purpose of installing Lessee’s furniture, fixtures and equipment provided such
access does not interfere with Lessor’s construction of the Lessee Improvements. In the event that
Lessor shall permit Lessee to occupy the Premises prior to the commencement date of the term, such
occupancy shall be subject to all of the provisions of this Lease, excluding the obligation to pay
rent.

A. All taxes, insurance premiums, reimbursable expenses and utilities, late charges, costs
and expenses which Lessee is required to pay hereunder, together with all interest and
penalties that may accrue thereon in the event of Lessee’s failure to pay such amounts,
and all reasonable damages, costs, and attorney’s fees and expenses which Lessor may incur
by reason of any default of Lessee or failure on Lessee’s part to comply with the terms of
this Lease, shall be deemed to be additional rent (hereinafter, “Additional Rent”), and,
in the event of non-payment by Lessee, Lessor shall have all of the rights and remedies
with respect thereto as Lessor has for the non-payment of monthly installment of rent.

Page 2 of 29

 

4. Option to Extend Term.

A. Lessee shall have the option to extend the term on all the provisions contained in this
Lease for one (1) two (2)-year period (“extended term”) at an adjusted rental calculated as
provided in Subparagraph B below on the condition that:

	 	(a)	 	Lessee has given to Lessor written notice of exercise of that option (“option
notice”) at least nine (9) but no more than twelve (12) months before expiration of the
initial term or extended term(s), as the case may be.
	 
	 	(b)	 	Lessee is not in default in the performance of any of the terms and conditions
of the Lease on the date of giving the option notice, and Lessee is not in default on
the date that the extended term is to commence.

B. The rent during the Extended Term shall be 95% of the fair market monthly rent (“Fair
Market Rent”) for the Premises as of the commencement date of the Extended Term, as
determined by the agreement of the parties or, if the parties cannot agree within sixty (60)
days prior to the commencement of such Extended Term, then by determination by commercial
real estate brokers as set forth in Exhibit C to this Lease . In determining the
Fair Market Rent, the parties (and in the absence of their agreement, the brokers) shall
determine the Fair Market Rent by taking into consideration the rents being charged at the
time such determination is to be made for similar space in similar properties in the Los
Gatos area pursuant to leases with terms and provisions substantially similar to those
contained in this Lease. All other terms and conditions contained in the Lease, as the same
may be amended from time to time by the parties in accordance with the provisions of the
Lease, shall remain in full force and effect and shall apply during the Extended Term.

C. The option to extend shall be personal to Lessee, and shall not be transferable or
assignable to any other person or entity other than a any transferee under an “exempt
sublet”, as such term is defined in Article 21.F of this Lease. If Lessee has exercised its
option to extend, the phrase “Lease term” as used in this Lease shall mean the initial term
of the Lease and the extended term(s).

5. Security Deposit. Upon Lessee’s execution of this Lease, Lessee shall deposit with
Lessor a Security Deposit in the sum of Forty-One Thousand Six Hundred Thirteen and 00/100 Dollars
($41,613.00) and, on or before the Commencement Date, Lessee shall deposit an additional Eighty-Three
Thousand Two Hundred Twenty-Six and 00/100 Dollars ($83,226.00) (for a total Security Deposit
of One Hundred Twenty-Four Thousand Eight Hundred Thirty-Nine and 00/100 Dollars ($124,839.00)) to
secure the full and faithful performance by Lessee of each term, covenant, and condition of this
Lease. If Lessee shall at any time fail to make any payment or fail to keep or perform any term,
covenant, or condition on its part to be made or performed or kept under this Lease, Lessor may,
but shall not be obligated to and without waiving or releasing Lessee from any obligation under
this Lease, use, apply, or retain the whole or any part of said Security Deposit (a) to the extent
of any sum due to Lessor; or (b) to compensate Lessor for any loss, damage, attorneys’ fees or
expense sustained by Lessor due to Lessee’s default. In such event, Lessee shall, within five (5)
days of written demand by Lessor, remit to Lessor sufficient funds to restore the Security

Page 3 of 29

 

Deposit to its original sum. No interest shall accrue on the Security Deposit. Should Lessee
comply with all the terms, covenants, and conditions of this Lease and, at the end of the term of
this Lease, leave the Premises in the condition required by this Lease, then said Security Deposit
or any balance thereof, less any sums owing to Lessor, shall be returned to Lessee within fifteen
(15) days after the termination of this Lease and vacancy of the Premises by Lessee. Lessor can
maintain the Security Deposit separate and apart from Lessor’s general funds, or can co-mingle the
Security Deposit with the Lessor’s general and other funds.

     In the event that Lessee is not in default of the Lease, $41,613.00 of said deposit shall be
applied to the Monthly Rent for the 23rd full calendar month following with
Commencement Date and $41,613.00 shall be applied to Monthly Rent for the 24th full
calendar month following the Commencement Date.

6. Use of the Premises. The Premises shall be used exclusively for the purpose of general
office, administration, light manufacturing and assembly, testing, marketing, engineering,
shipping and receiving and any other legal uses directly related to Lessee’s business and for no
other purpose without Lessor’s prior written consent.

     Lessee shall not use or permit the Premises, or any part thereof, to be used for any purpose
or purposes other than the purpose for which the Premises are hereby leased; and no use shall be
made or permitted to be made of the Premises, nor acts done, which will increase the existing rate
of insurance upon the building in which the Premises are located, or cause a cancellation of any
insurance policy covering said building, or any part thereof, nor shall Lessee sell or permit to
be kept, used, or sold, in or about the Premises, any article which may be prohibited by the
standard form of fire insurance policies. Lessee shall not commit or suffer to be committed any
waste upon the Premises or any public or private nuisance or other act or thing which may disturb
the quiet enjoyment of any other tenant in the building in which the premises are located; nor,
without limiting the generality of the foregoing, shall Lessee allow the Premises to be used for
any improper, immoral, unlawful, or objectionable purpose.

     Lessee shall not place any harmful liquids in the drainage system of the Premises or of the
building of which the Premises form a part. No waste materials or refuse shall be dumped upon or
permitted to remain upon any part of the Premises outside of the building proper except in trash
containers placed inside exterior enclosures designated for that purpose by Lessor, or inside the
building proper where designated by Lessor. No materials, supplies, equipment, finished or
semifinished products, raw materials, or articles of any nature shall be stored upon or permitted
to remain on any portion of the Premises outside of the building proper. Lessee shall comply with
all the covenants, conditions, and/or restrictions (“C.C. & R.’s”) affecting the Premises.

     Lessor represents and warrants to Lessee that to the best of its knowledge there are no Toxic
or Hazardous materials present on, at or under the Premises, which shall be deemed to include
underlying land and groundwater, at the time of Lessee’s occupancy and that, prior to the
Commencement Date, Lessor has obtained any closure certificates for the Premises from the
applicable governmental authorities with respect to prior occupants of the Premises. Lessor shall
indemnify, defend and hold harmless Lessee, its partners, directors, officers, employees, lenders,
and successors against all claims, obligations, liabilities, demands, damages, judgments, and
costs,

Page 4 of 29

 

including reasonable attorneys’ fees arising from or in connection with any prior Toxic or
Hazardous materials that existed prior to Lessee’s occupancy of the Premises.

     Lessee in turn represents to Lessor that it does not now and will not in the future permit
the use or storage on the Premises of Toxic or Hazardous materials, excluding, however basic
janitorial, maintenance and office supplies, and materials commonly used in connection with
Lessee’s business as described in paragraph 6 hereof, including, without limitation, solder and
small quantities of solvents. For purposes of this paragraph 6 “Toxic or Hazardous Materials”
shall mean any product, substance, chemical, material or waste whose presence, nature, quality
and/or intensity or existence, use, manufacture, disposal, transportation, spill, release or
effect, either by itself or in combination with other materials expected to be on the leased
premises, is either (i) potentially injurious to the public health, safety or welfare, the
environment, or the leased premises; (ii) regulated or monitored by any governmental authority; or
(iii) a basis for potential liability of Lessee and Lessor to any governmental agency or third
party under any applicable statute or common law theory. “Toxic or Hazardous Materials” shall
include, but not be limited to, hydrocarbons, petroleum, gasoline, crude oil or any products or
by-products thereof.

     Lessee hereunder shall be responsible for and indemnify, and hold Lessor and its partners,
directors, officers, employees, lenders, successors and assigns harmless from all claims,
obligations, liabilities, demands, damages, judgments and costs, including reasonable attorneys’
fees arising at any time during or in connection with Lessee’s causing or permitting any materials
referred to under any governmental provisions or regulatory scheme as “hazardous” or “toxic” or
which contain petroleum, gasoline, or other petroleum product, to be brought upon, stored,
manufactured, generated, handled, disposed, or used on, under or about the Premises in violation
of the provisions of this Article 6 and applicable environmental laws. Lessee’s and Lessor’s
obligations hereunder shall survive the termination of this Lease.

     If, at any time during the term of this Lease, Lessor suspects that toxic waste, spillage, or
other contaminants may be present on the Premises, Lessor may order a soils report, or its
equivalent, at Lessor’s expense. Lessee shall pay the reasonable costs of such report within
fifteen (15) days from the date of the invoice by Lessor if it is determined that Lessee or
Lessee’s agents, employees, contractors or invitees released or caused Toxic or Hazardous materials
on or about the Premises in violation of the provisions of this Article 6 and applicable
environmental laws. If any such toxic waste, spillage, or other contaminants are found upon the
Premises which were released by Lessee or Lessee’s agents, employees or invitees in violation of
the provisions of this Article 6 and applicable environmental laws, Lessee shall deposit with
Lessor, within fifteen (15) days of notice from Lessor to Lessee to do so, the amount necessary to
remove the substances and remedy the problem in accordance with applicable law.

     Lessee shall abide by all laws, ordinances, and statutes, as they now exist or may hereafter
be enacted by legislative bodies having jurisdiction thereof, relating to its use and occupancy of
the Premises. Notwithstanding anything to the contrary in this Lease, if, during the term of this
Lease, any alteration, addition, or change of any sort through all or any portion of the Premises
or of the building of which the Premises form a part, is required by law, regulation, ordinance,
or order of any public agency (“Laws”), then, if such legal requirement is not imposed because of
Lessee’s specific use of the Premises (other than for general office use) and is not “triggered”
by Lessee’s

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alterations or Lessee’s application for a building permit or any other governmental approval (in
which instance Lessee shall be responsible for 100% of the cost of such improvement)(other than
the Lessee Improvements), Lessor shall be responsible for constructing such improvement, and
Lessee shall be responsible for its proportional share of the cost for said improvement, amortized
over the useful life of such improvement that coincides with the remaining Lease term including
any extensions. Lessor represents and warrants that as of the date hereof it has not received any
notice that the Premises or the building of which the Premises form a part is currently in
violation of any Laws or that any improvements are required by Laws.

7. Improvements: Lessor shall provide Lessee with an allowance of $18.55 per square foot of
the Premises for the construction of the Lessee Improvements (as such term is defined in the Work
Letter attached hereto as Exhibit B) Upon Lessee’s request, Lessor agrees that it will
provide an additional allowance of up to $5 per square foot of the Premises to be amortized over
the term of the Lease at a rate of 8% per year. However, Lessor and Lessee shall make best efforts
to construct the Lessee Improvements within the $18.55 per square foot allowance.

8. Taxes and Assessments.

A. Lessee shall pay before delinquency any and all taxes, assessments, license fees, and
public charges levied, assessed, or imposed upon or against Lessee’s fixtures, equipment,
furnishings, furniture, appliances, and personal property installed or located on or within
the Premises. Lessee shall cause said fixtures, equipment, furnishings, furniture,
appliances, and personal property to be assessed and billed separately from the real
property of Lessor. If any of Lessee’s said personal property shall be assessed with
Lessor’s real property, Lessee shall pay to Lessor the taxes attributable to Lessee within
ten (10) business days after receipt of a written statement from Lessor setting forth the
taxes applicable to Lessee’s property.

B. All property taxes or assessments levied or assessed by or hereafter levied or assessed
by any governmental authority against the Premises or any portion of such taxes or
assessments which becomes due or accrued during the term of this Lease shall be paid by
Lessor; provided, however, that Lessee shall not be required to pay any portion of any tax
or assessment expense or any increase therein (a) levied on Lessor’s rental income, unless
such tax or assessment is imposed in lieu of real property taxes; (b) in excess of the
amount which would be payable if such tax or assessment expense were paid in installments
over the longest permitted term; or (c) attributable to Lessor’s net income, inheritance,
gift, transfer, estate or state taxes. Lessee shall pay to Lessor Lessee’s proportionate
share of such taxes or assessments within fifteen (15) days of receipt of Lessor’s invoice
demanding such payment. Lessee’s liability hereunder shall be prorated to reflect the
commencement and termination dates of this Lease.

9. Insurance.

A. Indemnity. Lessee agrees to indemnify, defend and save Lessor against and hold

Page 6 of 29

 

Lessor harmless from any and all demands, claims, causes of action, judgments, obligations, or
liabilities, and all reasonable expenses incurred in investigating or resisting the same
(including reasonable attorneys’ fees) on account of, or arising out of Lessee’s use, or occupancy
of the Premises. This Lease is made on the express condition that Lessor shall not be liable for,
or suffer loss by reason of, injury to person or property, from whatever cause, in any way
connected with the condition, use, or occupancy of the Premises, specifically including, without
limitation, any liability for injury to the person or property of Lessee, its agents, officers,
employees, licensees, and invitees, except to the extent such loss, injury or damage was caused by
Lessor’s negligence or willful misconduct.

B. Liability Insurance. Lessee shall, at its expense, obtain and keep in force during the
term of this Lease a policy of Commercial General Liability insurance insuring Lessee, with
cross-liability endorsements, against any liability arising out of the condition, use, or occupancy
of the Premises and all areas appurtenant thereto, including parking areas and property insurance
to cover Lessee’s persona] property, equipment, inventory, fixtures and tenant improvements on the
Premises. Lessor shall be named as an additional insured on the CGL policy. Such insurance shall be
in an amount satisfactory to Lessor of not less than one million dollars ($1,000,000) for each
occurrence for bodily injury and physical damage to the property and two million dollars
($2,000,000) general aggregate limit. The insurance shall be with companies approved by Lessor,
which approval Lessor agrees not to withhold unreasonably. Prior to possession, Lessee shall
deliver to Lessor a certificate of insurance and endorsement evidencing the existence of the policy
which (1) as to the CGL policy names Lessor as an additional insured, (2) shall not be canceled or
altered without thirty (30) days’ prior written notice to Lessor, (3) insures performance of the
indemnity set forth in Section A of Paragraph 9, and (4) coverage is primary and any coverage by
Lessor is in excess thereto.

C. Property Insurance. Lessor shall obtain and keep in force during the term of this Lease
a policy or policies of insurance covering (a) loss or damage to the Premises (which may include
earthquake and/or flood insurance), in the amount of the full replacement value thereof, and (b)
Lessor’s liability insurance. Lessee shall pay to Lessor its pro-rata share of the cost of the
premium of said insurance within fifteen (15) days of Lessee’s receipt of Lessor’s invoice
demanding such payment. Lessee acknowledges that such insurance procured by Lessor, including,
without limitation, any earthquake insurance, shall contain a deductible (not to exceed $10,000.00
per occurrence) which reduces Lessee’s cost for such insurance, and, in the event of loss or
damage, Lessee shall be required to pay to Lessor Lessee’s pro-rata share of the amount of such
deductible.

D. Notwithstanding anything in this Lease to the contrary, Lessor and Lessee hereby releases each
other and their respective agents, employees, successors, assignees and sublessees from all
liability for injury to any person or damage to any property that is caused by or results from a
risk which is actually insured against, which is required to be insured against under this Lease,
or which would normally be covered by “all risk” property insurance, without regard to the
negligence or misconduct of the person or entity so released. All of Lessor’s and Lessee’s repair
and indemnity obligations under this Lease

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shall be subject to the waiver and release contained in this paragraph. Each party shall
cause each insurance policy it obtains to provide that the insurer thereunder waives all
recovery by way of subrogation as required herein in connection with any injury or damage
covered by such policy.

10. Reimbursable Expenses and Utilities. Commencing on the Commencement Date and thereafter
during the term of this Lease, Lessee shall pay its pro-rata share based on square footage of all
water, gas, light, power, electricity, telephone, HVAC maintenance and repairs, trash removal,
landscaping, sewer charges, and all other services, including normal and customary property
management fees, supplied to or consumed on the Premises; provided, however, that Lessee shall in
no event have any obligation to perform or to pay directly, or to reimburse Lessor for, all or any
portion of the following repairs, maintenance, improvements, replacements, premiums, claims,
losses, fees, charges, costs and expenses (collectively, “Costs”): (a) Costs occasioned by the act,
omission or violation of any law by Lessor, or Lessor’s agents, employees or contractors; (b) Costs
to correct any construction defect in the Premises or to comply with any covenant, condition,
restriction, underwriter’s requirement or law applicable to the Premises on the Commencement Date;
(c) [intentionally omitted]; (d) interest, charges and fees incurred on debt; (f) expense reserves;
(g) [intentionally omitted]; (h) Costs which could properly be capitalized under generally accepted
accounting principles, except as provided in Paragraph 11.A. of this Lease; and (i) wages,
compensation, and labor burden for any employee not stationed on the Project on a full-time basis
(other than Lessor’s maintenance employee, who works on other properties in Lessor’s portfolio, and
who is charged on an hourly basis to the applicable property) or any fee, profit or compensation
retained by Lessor or its affiliates for management and administration of the Project in excess of
three percent (3%) of Monthly Rent. In the event that any such services are billed directly to
Lessor, then Lessee shall pay Lessor for such expenses within ten (10) days of Lessee’s receipt of
Lessor’s invoice demanding payment.

11. Repairs and Maintenance.

	 	A.	 	Subject to provisions of paragraph 15 of this Lease, Lessor shall keep and
maintain in good order, condition and repair the structural elements of the Premises
including the roof, roof membrane, paving, floor slab, foundation, exterior walls,
landscaping, and irrigation. Lessor shall make such repairs, replacements, alterations
or improvements as Lessor deems reasonably necessary with respect to such structural
elements and Lessee shall pay to Lessor, within ten (10) business days of Lessor’s
invoice to Lessee therefor, Lessee’s pro-rata share of such repairs, replacements,
alterations or improvements. In the event that the cost of any replacement or
improvement exceeds $25,000 per occurrence, the amount in excess of $25,000 shall be
amortized, on a straight line basis, over the useful life of such replacements or
improvements as reasonably determined by Lessor using manufacturers’ guidelines. Lessee
shall be obligated to pay its pro-rata share of such excess on a monthly basis, as
Additional Rent, for as long as the useful life coincides with the lease term.
Notwithstanding the foregoing, but subject to the provisions of Paragraph 9.D of this
Lease, if the reason for any repair, replacement, alteration or improvement is caused
by Lessee or arises because of a breach of Lessee’s obligations under this Lease, then
Lessee shall pay 100% of the

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	 	 	 	costs or expense to remedy the same.

	 	B.	 	Except as expressly provided in Subparagraph A above, Lessee shall, at its
sole cost, keep and maintain the entire Premises and every part thereof, including,
without limitation, the windows, window frames, plate glass, glazing, truck doors,
doors, all door hardware, interior of the Premises, interior walls and partitions, and
electrical, plumbing, and lighting, systems in good and sanitary order, condition, and
repair. Lessor shall maintain a service contract for the maintenance of all heating,
air conditioning, and ventilation equipment with a licensed and insuranced contractor.
Lessee shall reimburse Lessor pursuant to Paragraph 10 above for the cost of said
maintenance contract.

     Should Lessee fail to maintain the Premises or make repairs required of Lessee
hereunder forthwith upon notice from Lessor, Lessor, in addition to all other
remedies available hereunder or by law, and without waiving any alternative
remedies, may make the same, and in that event, Lessee shall reimburse Lessor as
additional rent for the cost of such maintenance or repairs on the later of: (a) the
next date upon which rent becomes due; or (b) within ten (10) business days
following receipt of Lessor’s invoice.

     Lessee hereby expressly waives the provision of Subsection 1 of Section 1932,
and Sections 1941 and 1942 of the Civil Code of California and all rights to make
repairs at the expense of Lessor, as provided in Section 1942 of said Civil Code.

12. Alterations and Additions. Lessee shall not make, or suffer to be made, any
alterations, improvements, or additions in, on, or about, or to the Premises or any part thereof,
without prior written consent of Lessor, which consent Lessor shall not unreasonably withhold, and
without a valid building permit issued by the appropriate governmental authority. Lessor retains,
at his sole option, the right to retain a General Contractor of his own choosing to perform all
repairs, alterations, improvements, or additions in, on, about, or to said Premises or any part
thereof that Lessor is required to perform under this Lease. As a condition to giving such consent,
Lessor may require that Lessee agree to remove any such alterations, improvements, or additions at
the termination of this Lease, and to restore the Premises to their prior condition; provided,
however, that Lessor shall have no right to require Lessee to remove any alterations unless it
notifies Lessee at the time it consents to such alteration that it shall require such alteration to
be removed. Notwithstanding anything to the contrary in this Section 12, Lessee may construct
non-structural alterations, additions and improvements (“Alterations”) in the Premises without
Lessor’s prior approval, but on not less than five (5) business days prior written notice to
Lessor, if the cost of any such project does not exceed Twenty-Five Thousand Dollars ($25,000);
provided, however, that in no event shall Lessee perform any Alterations on the roof of the
building without first obtaining Lessor’s consent, and, as a condition to granting such consent,
Lessor may require Lessee to take such steps as are reasonably necessary to prevent any warranty
applicable to the roof from being voided, including, without limitation, requiring that Lessor’s
designated contractor perform or supervise any work that pertains to the roof. Any alteration,
addition, or improvement to the Premises, shall become the property of Lessor upon

Page 9 of 29

 

installation, and shall remain upon and be surrendered with the Premises at the termination of
this Lease. Alterations and additions which are not to be deemed as trade fixtures include
heating, lighting, electrical systems, air conditioning (other than supplemental HVAC units
installed by Lessee), partitioning, electrical signs, carpeting, or any other installation which
has become an integral part of the Premises. In the event that Lessor consents to Lessee’s making
any alterations, improvements, or additions, Lessee shall be responsible for the timely posting of
notices of non-responsibility on Lessor’s behalf, which shall remain posted until completion of
the alterations, additions, or improvements. Lessee’s failure to post notices of
non-responsibility as required hereunder shall be a breach of this Lease.

     Notwithstanding anything to the contrary in this Lease, if, during the term of this Lease,
any alteration, addition, or change of any sort through all or any portion of the Premises or of
the building of which the Premises form a part, is required by any Laws, then, if such legal
requirement is not imposed because of Lessee’s specific use of the Premises (other than for
general office use) and is not “triggered” by Lessee’s alterations or Lessee’s application for a
building permit or any other governmental approval (in which instance Lessee shall be responsible
for 100% of the cost of such improvement)(other than the Lessee Improvements), Lessor shall be
responsible for constructing such improvement, and Lessee shall be responsible for its
proportional share of the cost for said improvement, amortized over the useful life of such
improvement that coincides with the remaining Lease term including any extensions. Lessor
represents and warrants that as of the date hereof it has not received any notice that the
Premises or the building of which the Premises form a part is currently in violation of any Laws
or that any improvements are required by Laws.

13. Acceptance of the Premises and Covenant to Surrender. By entry and taking possession of
the Premises pursuant to this Lease, Lessee accepts the Premises as being in good and sanitary
order, condition, and repair, and accepts the Premises in their condition existing as of date of
such entry, and Lessee further accepts any tenant improvements to be constructed by Lessor, if any,
as being completed in accordance with the plans and specifications for such improvements subject to
the completion of any “‘Punch List Items” (as defined in the Work Letter attached hereto). Lessor
represents that as of the Lease Commencement, the roof, walls and structural components of the
building, HVAC system, electrical, plumbing and lighting shall be in good working order. Lessor
shall assign to Lessee any and all existing warranties for the building.

     Lessee agrees on the last day of the term hereof, or on sooner termination of this Lease, to
surrender the Premises, together with all alterations, additions, and improvements which may have
been made in, to, or on the Premises by Lessor or Lessee, unto Lessor in good and sanitary order,
condition, and repair, excepting for such wear and tear as would be normal for the period of the
Lessee’s occupancy and damage by Casualty or Condemnation. Lessee, on or before the end of the
term or sooner termination of this Lease, shall remove all its personal property, trade fixtures,
equipment, and data and phone cabling from the Premises, and all property not so removed shall be
deemed abandoned by Lessee. Lessee further agrees that at the end of the term or sooner
termination of this Lease, Lessee shall restore the Premises to its original condition (excepting
any restoration requirements waived in Section 12 of this Lease), normal wear and tear excepted.
In no

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event shall Lessee be required to remove the Lessee Improvements and restore the Premises to its
condition existing prior to the installation of the Lessee Improvements.

     If the Premises are not surrendered at the end of the term or sooner termination of this
Lease, Lessee shall indemnify Lessor against loss or liability resulting from delay by Lessee in
so surrendering the Premises, including, without limitation, any claims made by any succeeding
tenant founded on such delay.

14. Default.

	A.	 	Events of Default. The occurrence of any of the following shall constitute a default
of this Lease by Lessee:

(i) Any failure by Lessee to pay any Rent or any other charge required to be paid
under this Lease, or any part thereof, within five (5) days after such payment is
due; or

(ii) Any failure by Lessee to observe or perform any other provision, covenant or
condition of this Lease to be observed or performed by Lessee where such failure
continues for thirty (30) days after written notice thereof from Lessor to Lessee;
provided however, that any such notice shall be in lieu of, and not in addition to,
any notice required under California Code of Civil Procedure Section 1161 or any
similar or successor law; and provided further that if the nature of such default
is such that the same cannot reasonably be cured within a thirty (30) day period,
Lessee shall not be deemed to be in default if it diligently commences such cure
within such period and thereafter diligently proceeds to rectify and cure said
default as soon as possible; or

(iii) Abandonment of the Premises by Lessee. Abandonment is herein defined to
include, but is not limited to, any absence by Lessee from the Premises for three
(3) business days or longer while in default of any provision of this Lease.

	B.	 	Remedies Upon Default. Upon the occurrence of any event of default by Lessee, Lessor
shall have, in addition to any other remedies available to Lessor at law or in equity, the
option to pursue any one or more of the following remedies, each and all of which shall be
cumulative and nonexclusive, without any notice or demand whatsoever.

(i) Terminate this Lease, in which event Lessee shall immediately surrender the
Premises to Lessor, and if Lessee fails to do so, Lessor may, without prejudice to
any other remedy which it may have for possession or arrearages in rent, enter upon
and take possession of the Premises and expel or remove Lessee and any other person
who may be occupying the Premises or any part thereof, without being liable for
prosecution or any claim or damages therefor; and Lessor may recover from Lessee
the following:

(1) The worth at the time of award of any unpaid rent which has been earned
at the time of such termination; plus

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(2) The worth at the time of award of the amount by which the unpaid rent which would
have been earned after termination until the time of award exceeds the amount of such
rental loss that Lessee proves could have been reasonably avoided; plus

(3) The worth at the time of award of the amount by which the unpaid rent for the
balance of the Lease Term after the time of award exceeds the amount of such rental
loss that Lessee proves could have been reasonably avoided; plus

(4) Any other amount necessary to compensate Lessor for all the detriment proximately
caused by Lessee’s failure to perform its obligations under this Lease or which in
the ordinary course of things would be likely to result therefrom, specifically
including but not limited to, brokerage commissions and advertising expenses
incurred, expenses of remodeling the Premises or any portion thereof for a new
lessee, whether for the same or a different use, and any special concessions made to
obtain a new lessee; and

(5) At Lessor’s election, such other amounts in addition to or in lieu of the
foregoing as may be permitted from time to time by applicable law.

The term “rent” as used in this Section 14 B. shall be deemed to be and to mean those sums as
described in Section 3.A. above to be paid by Lessee. As used in Paragraphs 14 B.(i)(l) and
(2), above, the “worth at the time of award” shall be computed by allowing interest at the
rate of six percent (6%) per annum, but in no case greater than the maximum amount of such
interest permitted by law. As used in Paragraph 14.B.(i)(3) above, the “worth at the time of
award” shall be computed by discounting such amount at the discount rate of the Federal
Reserve Bank of San Francisco at the time of award plus one percent (1%).

(ii) Lessor shall have the remedy described in California Civil Code Section 1951.4 (lessor
may continue lease in effect after lessee’s breach and abandonment and recover rent as it
becomes due, if lessee has the right to sublet or assign, subject only to reasonable
limitations). Accordingly, if Lessor does not elect to terminate this Lease on account of
any default by Lessee, Lessor may, from time to time, without terminating this Lease,
enforce all of its rights and remedies under this Lease, including the right to recover all
rent as it becomes due.

(iii) Waiver of Default. No waiver by Lessor or Lessee of any violation or breach of
any of the terms, provisions and covenants herein contained shall be deemed or construed to
constitute a waiver of any other or later violation or breach of the same or any other of the
terms, provisions, and covenants herein contained. Forbearance by Lessor in enforcement of
one or more of the remedies herein provided upon an event of default shall not be deemed or
construed to constitute a waiver of such default. The acceptance of any Rent hereunder by
Lessor following the occurrence of any default, whether or not known to Lessor,

Page 12 of 29

 

shall not be deemed a waiver of any such default, except only a default in the
payment of the Rent so accepted.

(iv) Efforts to Relet. For the purposes of this Section 14, Lessee’s right
to possession shall not be deemed to have been terminated by efforts of Lessor to
relet the Premises, by its acts of maintenance or preservation with respect to the
Premises, or by appointment of a receiver to protect Lessor’s interests hereunder.
The foregoing enumeration is not exhaustive, but merely illustrative of acts which
may be performed by Lessor without terminating Lessee’s right to possession.

(v) Application of Funds. If Lessor elects to relet the Premises as
provided in this Paragraph, rent that Lessor receives from reletting shall be
applied to the payment of: (1.) any indebtedness from Lessee to Lessor other than
rent due from Lessee; (2.) all costs, including for maintenance, incurred by Lessor
in reletting; (3.) rent due and unpaid under this Lease. After deducting the
payments referred to in this Paragraph, any sum remaining from the rent Lessor
receives from reletting shall be held by Lessor and applied in payment of future
rent as rent becomes due under this Lease. In no event shall Lessee be entitled to
any excess rent received by Lessor. If, on the date rent is due under this Lease,
the rent received from reletting is less than the rent due on that date, Lessee
shall pay to Lessor, in addition to the remaining rent due, all costs, including
for maintenance, Lessor incurred in reletting that remain after applying the rent
received from the reletting, as provided in this Paragraph.

(vi) Lessor’s Right to Cure Default. Lessor, at any time after Lessee
commits a default, can cure the default at Lessee’s cost. If Lessor at any time, by
reason of Lessee’s default, pays any sum or does any act that requires the payment
of any sum, the sum paid by Lessor shall be due immediately from Lessee to Lessor at
the time the sum is paid, and if paid at a later date shall bear interest at the
maximum rate an individual is permitted by law to charge from the date the sum is
paid by Lessor until Lessor is reimbursed by Lessee. The sum, together with interest
on it, shall be additional rent.

     Rent not paid when due shall bear interest at the maximum rate an individual is
permitted by law to charge from the date due until paid.

15. Destruction. In the event the Premises are destroyed in whole or in part from any
cause, Lessor may, at its option, (1.) rebuild or restore the Premises to their condition prior to
the damage or destruction or (2.) terminate the Lease.

     If Lessor does not give Lessee notice in writing within thirty (30) days after the date on
which occurred the destruction of the Premises of its election either to rebuild and restore the
Premises, or to terminate this Lease, Lessor shall be deemed to have elected to rebuild or restore
them, in which event Lessor agrees, at its expense, promptly to rebuild or restore the Premises to
its condition prior to the damage or destruction. If Lessor does not complete the rebuilding or

Page 13 of 29

 

restoration within one hundred eighty (180) days following the date of destruction (such period of
time to be extended for delays caused by the fault or neglect of Lessee of because of acts of God,
acts of public agencies, labor disputes, strikes, fires, freight embargoes, rainy or stormy
weather, inability to obtain materials, supplies or fuels, acts of contractors or subcontractors,
or delay of the contractors or subcontractors due to such causes or other contingencies beyond
control of Lessor), then Lessee shall have the right to terminate this Lease by giving fifteen
(15) days prior written notice to Lessor. Lessor’s obligation to rebuild or restore shall not
include restoration of Lessee’s trade fixtures, equipment, merchandise, or any improvements,
alterations, or additions made by Lessee to the Premises.

     Unless this Lease is terminated pursuant to the foregoing provisions, this Lease shall remain
in full force and effect. Lessee hereby expressly waives the provisions of Section 1932,
Subdivision 2, and Section 1933, Subdivision 4, of the California Civil Code.

     Notwithstanding anything to the contrary in this Article 15: (i) if the Premises are damaged
by any peril and Lessor does not terminate the Lease, then Lessee shall have the option to
terminate the Lease if the Premises cannot be, or are not in fact, fully restored by Lessor to
their prior condition for any reason whatsoever within one hundred eighty (180) days after the
damage, and (ii) if the Premises are damaged by any peril during the last twelve (12) months of
the Lease term, Lessee shall have the option to terminate this Lease by giving written notice to
Lessor within thirty (30) days after the date of the damage estimate, and this Lease shall
terminate as of the date specified by Lessee in its termination notice, which date shall not be
before the date of such notice or more than ninety (90) days after the date of such notice. During
any period of time following a casualty where all or any portion of the Premises is not suitable
for Lessee’s use, as reasonably determined by Lessee, than all rent due under this Lease shall be
equitably abated during such period based on the extent to which Lessee’s use and enjoyment of the
Premises is diminished.

16. Condemnation. If any part of the Premises shall be taken for any public or quasi-public
use, under any statute of by right of eminent domain, or private purchase in lieu thereof, and a
part thereof remains, which is susceptible of occupation hereunder, this Lease shall, as to the
part so taken, terminate as of the date title shall vest in the condemnor or purchaser, and the
rent payable hereunder shall be adjusted so that the Lessee shall be required to pay for the
remainder of the term only such portion of such rent as the value of the part remaining after
taking such bears to the value of the entire Premises prior to such taking. Lessor shall have the
option to terminate this Lease in the event that such taking causes a reduction in rent payable
hereunder by fifty percent (50%) or more. If all of the Premises or such part thereof be taken so
that there does not remain a portion susceptible for occupation hereunder, as reasonably necessary
for Lessee’s conduct of its business as contemplated in this Lease, this Lease shall thereupon
terminate. If a part of all of the Premises be taken, all compensation awarded upon such taking
shall go to the Lessor, and the Lessee shall have no claim thereto, and the Lessee hereby
irrevocably assigns and transfers to the Lessor any right to compensation or damages to which the
Lessee may become entitled during the term hereof by reason of the purchase or condemnation of all
or a part of the Premises, except that Lessee shall have the right to recover its share of any award
or consideration for (1.) moving expenses; (2.) loss or damage to Lessee’s trade fixtures,
furnishings, equipment, and other personal property; and (3.) business goodwill.

Page 14 of 29

 

17. Free from Liens. Lessee shall (1.) pay for all labor and services performed or
materials used by or furnished to Lessee at Lessee’s request, or any contractor employed by Lessee
with respect to the Premises, and (2.) indemnify, defend, and hold Lessor and the Premises harmless
and free from any liens, claims, demands, encumbrances, or judgments created or suffered by reason
of any labor or services performed or materials used by or furnished to Lessee or any contractor
employed by Lessee with respect to the Premises, and (3.) give notice to Lessor in writing five (5)
days prior to employing any laborer or contractor to perform services related, or receiving
materials for use upon the Premises, and (4.) shall post, on behalf of Lessor, a notice of
non-responsibility in accordance with the statutory requirements of the California Civil Code,
Section 3094, or any amendment thereof. In the event an improvement bond with a public agency in
connection with the above is required to be posted, Lessee agrees to include Lessor as an
additional obligee.

18. Compliance with Laws. Subject to the last grammatical paragraph in Section 12 of this
Lease, Lessee shall, at its own cost, comply with and observe all requirements of all municipal,
county, state, and federal authority now in force, or which may hereafter be in force, pertaining
to the use and occupancy of the Premises.

19. Subordination. Lessee agrees that this Lease shall, at the option of Lessor, be
subjected and subordinated to any mortgage, deed of trust, or other instrument of security, which
has been or shall be placed on the land and building, or land or building of which the Premises
form a part, and this subordination is hereby made effective without any further act of Lessee or
Lessor. The Lessee shall, at any time hereinafter, on demand, execute any commercially reasonable
instruments, releases, or other documents that may be required by any mortgagee, mortgagor,
trustor, or beneficiary under any deed of trust, for the purpose of subjecting or subordinating
this Lease to the lien of any such mortgage, deed of trust, or other instrument of security. If
Lessee fails to execute and deliver any such documents or instruments within ten (10) days after
Lessor’s request, then Lessee shall be in default under this Lease. Lessor shall use commercially
reasonable efforts to obtain, as soon as possible following the mutual execution and delivery of
this Lease, from any lenders or ground lessors of the Premises a written agreement in form
reasonably satisfactory to Lessee providing for recognition of Lessee’s interests under the Lease
in the event of a foreclosure of the lender’s security interest or termination of the ground lease.
The failure of Lessor to obtain from any such lenders or ground lessors such a non-disturbance
agreement shall not constitute a default hereunder by Lessor, it being understood that Lessor’s
sole obligation is to use commercially reasonable efforts to obtain the execution and delivery of
such a non- disturbance agreement.

20. Abandonment. Lessee shall not abandon the Premises at any time during the term; and if
Lessee shall abandon, or surrender said Premises, or be dispossessed by process of law, or
otherwise, any personal property belonging to Lessee and left on the Premises shall be deemed to be
abandoned, at the option of Lessor, except such property as may be mortgaged to Lessor; provided,
however, that Lessee shall not be deemed to have abandoned or vacated the Premises so long as
Lessee continues to pay all rents as and when due, and otherwise performs pursuant to the terms and
conditions of this Lease.

21. Assignment and Subletting.

Page 15 of 29

 

A. Definitions. For purposes of this Paragraph 21, the following terms shall be
defined as follows:

	 	(i)	 	Sublet. The term “Sublet” shall mean any transfer, sublet, assignment, license
or concession agreement, change of ownership, mortgage, or hypothecation of this
Lease or the Lessee’s interest in the Lease or in and to all or a portion of the
Premises.
	 
	 	(ii)	 	Subrent. The term “Subrent” shall mean any consideration of any kind
received, or to be received, by Lessee from a Sublessee if such sums are related
to Lessee’s interest in this Lease or in the Premises, including, but not
limited to, bonus money and payments (in excess of book value) for Lessee’s
assets including its trade fixtures, and equipment and other personal property.
	 
	 	(iii)	 	Sublessee. The term “Sublessee” shall mean the person or entity with whom a
Sublet agreement is proposed to be or is made.

B. Lessor’s Consent. Lessee shall not enter into a Sublet without Lessor’s prior
written consent, which consent shall not be unreasonably withheld. Any attempted or
purported Sublet without Lessor’s prior written consent shall be void and confer no rights
upon any third person. In determining whether or not to consent to a proposed Sublet, Lessor
may consider the following factors, among others, all of which shall be deemed reasonable;
(i) whether the proposed Sublessee has the financial wherewithal to pay the rent as
established in the sublease as reasonably determined by Lessor at the time Lessor’s Consent
is requested; (ii) whether the proposed use of the Premises by the proposed Sublessee is
consistent with the permitted use for the Premises set forth in Paragraph 6 of this Lease;
(iii) whether the experience and business reputation of the proposed Sublessee is equal to
or greater than that of Lessee; (iv) whether the rent payable by the Sublessee under the
proposed Sublet is set below the current fair market sublease rent for the subleased
Premises as a subterfuge to avoid paying to Lessor its share of the profit on such
transaction; and (v) whether Lessor’s consent will result in a breach of any other lease or
agreement to which Lessor is a party affecting the Building. Each Sublessee shall agree in
writing, for the benefit of Lessor, to assume, to be bound by, and to perform the terms and
conditions and covenants of this Lease to be performed by Lessee. Notwithstanding anything
contained herein, Lessee shall not be released from liability for the performance of each
term, condition and covenant of this Lease by reason of Lessor’s consent to a Sublet unless
Lessor specifically grants such release in writing. Consent by Lessor to any Sublet shall
not be deemed a consent to any subsequent Sublet. Lessee shall reimburse Lessor for all
reasonable costs and attorneys’ fees incurred by Lessor in connection with the evaluation,
processing and/or documentation of any requested Sublet, whether or not Lessor’s consent is
granted, in an amount not to exceed One Thousand Dollars ($1,000.00) per request. Lessor’s
reasonable costs shall include the cost of any review or investigation by Lessor of any
hazardous or toxic materials which may be used, stored, or disposed of at the Premises by
the Sublessee, including fees paid to consultants hired to perform such review or
investigation.

Page 16 of 29

 

C. Information to be Furnished. If Lessee desires at any time to Sublet the Premises
or any portion thereof, it shall first notify Lessor of its desire to do so and shall submit
in writing to Lessor: (i) the name and legal composition of the proposed Sublessee, (ii) the
nature of the proposed Sublessee’s business to be carried on in the Premises; (iii) the
terms and provisions of the proposed Sublet and a copy of the proposed Sublet form
containing a description of the subject premises; (iv) a statement of all consideration to
be paid by the Sublessee in connection with the Sublet; (v) a current financial statement of
Lessee; and (vi) such financial information, including financial statements, as Lessor may
reasonably request concerning the proposed Sublessee, provided that, if requested by Lessee,
Lessor shall execute a commercially reasonable form of non-disclosure agreement with respect
to such statements.

D. Lessor’s Alternatives. At any time within fifteen (15) days after the Lessor’s
receipt of the information specified in Paragraph 21.C, Lessor may, by written notice to
Lessee, elect: (i) to consent to the Sublet by Lessee; (ii) to reasonably refuse its consent
to the Sublet, or (iii) elect to terminate this Lease, or in the case of a partial Sublet,
terminate this Lease as to the portion of the Premises proposed to be Sublet. If Lessor
consents to the Sublet, Lessee may thereafter enter into a valid Sublet of the Premises or
portion thereof, upon the terms and conditions and with the proposed Sublessee set forth in
the information furnished by Lessee to Lessor pursuant to Paragraph 21.B., subject, however,
at Lessor’s election, to the condition that fifty percent (50%) of any excess of the Subrent
over the Rent required to be paid by Lessee under this Lease shall be paid to Lessor but
only if any such excess remains after Lessee has first deducted its attorneys’ fees
associated with the Sublet, the costs of any improvements or improvement allowance relating
to the Sublet, and any broker commissions associated with the Sublet.

E. [Intentionally Omitted.]

F. Exempt Sublets. Notwithstanding the above, Lessor’s prior written consent shall
not be required for an assignment of this Lease to an entity which controls, is controlled
by or under common control with, Lessee, to a corporation into which Lessee merges or
consolidates, to a successor entity related to Lessee by non-bankruptcy reorganization, or
government action, or to a purchaser of substantially all of Lessee’s assets located in the
Premises provided that (i) Lessee gives Lessor prior written notice of the name any such
assignee, (ii) at the time of such assignment, the assignee has net worth that is equal to
or greater than the net worth of Lessee immediately prior to such assignment; and (iii) the
assignee assumes, in writing, for the benefit of Lessor, all of Lessee’s obligations under
the Lease. In addition, and notwithstanding anything to the contrary in this Paragraph 21,
neither (i) the sale, transfer or public offering of Lessee’s capital stock, (ii) the
institutional, venture or other private financing by Lessee to raise additional capital, nor
(iii) any change of control of Lessee resulting from (i) or (ii) shall be deemed an
assignment of the Lease or a subletting of the Premises, and Lessor’s consent shall not be
required for any of the foregoing transactions.

22. Parking Charges. Lessee agrees to pay upon demand, based on its percent of occupancy of
the entire Premises, its pro-rata share of any parking charges, surcharges, or any other cost

Page 17 of 29

 

hereafter levied or assessed by local, state, or federal governmental agencies in connection with
the use of the parking facilities serving the Premises, including, without limitation, parking
surcharge imposed by or under the authority of the Federal Environmental Protection Agency.
Notwithstanding the foregoing, Lessee shall not be charged for the use of parking provided under
this Lease unless the applicable local, state or federal governmental agency imposes on tax, fee,
levy, or other charge on parking at similar buildings in Los Gatos.

23. Insolvency or Bankruptcy. Either (1.) the appointment of a receiver to take possession
of all or substantially all of the assets of Lessee, or (2.) a general assignment by Lessee for the
benefit of creditors, or (3.) any action taken or suffered by Lessee under any insolvency or
bankruptcy act shall constitute a breach of this Lease by Lessee. Upon the happening of any such
event, this Lease shall terminate ten (10) days after written notice of termination from Lessor to
Lessee. This section is to be applied consistent with the applicable state and federal law in
effect at the time such event occurs.

24. Lessor Loan or Sale. Lessee agrees promptly following request by Lessor to (1.) execute
and deliver to Lessor any commercially reasonable documents, including estoppel certificates
presented to Lessee by Lessor, (a.) certifying that this Lease is unmodified and in full force and
effect, or, if modified, stating the nature of such modification and certifying that this Lease, as
so modified, is in full force and effect and the date to which the rent and other charges are paid
in advance, if any, and (b.) acknowledging that there are not, to Lessee’s knowledge, any uncured
defaults on the part of Lessor hereunder, and (c.) evidencing the status of the Lease as may be
required either by a lender making a loan to Lessor, to be secured by deed of trust or mortgage
covering the Premises, or a purchaser of the Premises from Lessor, and (2.) to deliver to Lessor
the current financial statements of Lessee, including a balance sheet and profit and loss
statement, for the current fiscal year and the two immediately prior fiscal years, if available.
Lessee’s failure to deliver an estoppel certificate within ten (10) days following such request
shall constitute a default under this Lease and shall be conclusive upon Lessee that this Lease is
in full force and effect and has not been modified except as may be represented by Lessor.

25. Surrender of Lease. The voluntary or other surrender of this Lease by Lessee, or a
mutual cancellation thereof, shall not work a merger nor relieve Lessee of any of Lessee’s
obligations under this Lease, and shall, at the option of Lessor, terminate all or any existing
Subleases or Subtenancies, or may, at the option of Lessor, operate as an assignment to Lessor of
any or all such Subleases or Subtenancies.

26. Attorneys’ Fees. If, for any reason, any suit be initiated to enforce any provision of
this Lease, the prevailing party shall be entitled to legal costs, expert witness expenses, and
reasonable attorneys’ fees, as fixed by the court.

27. Notices. All notices to be given to Lessee may be given in writing, personally, or by
depositing the same in the United States mail, postage prepaid, and addressed to Lessee at the said
Premises, whether or not Lessee has departed from, abandoned, or vacated the Premises. Any notice
or document required or permitted by this Lease to be given Lessor shall be addressed to Lessor at
the address set forth below, or at such other address as it may have theretofore specified by
notice delivered in accordance herewith:

Page 18 of 29

 

	 	 	 
	LESSOR:

	 	Los Gatos Business Park
	 

	 	900 Welch Road, Suite 10
	 

	 	Palo Alto, California 94304
	 
	 	 
	LESSEE:

	 	StrataLight Communications, Inc.
	 

	 	151 Albright Way
	 

	 	Los Gatos, California 95032
	 
	 	 
	With a copy to:

	 	Pillsbury Winthrop Shaw Pittman LLP
	 

	 	Attn: Stanley F. Pierson
	 

	 	2475 Hanover Street
	 

	 	Palo Alto, CA 94304

28. Transfer of Security. If any security be given by Lessee to Lessor to secure the
faithful performance of all or any of the covenants of this Lease on the part of Lessee, Lessor
shall transfer and/or deliver the security, as such, to the purchaser of the reversion, in the
event that the reversion be sold, and thereupon Lessor shall be discharged from any further
liability in reference thereto, upon the assumption by such transferee of lessor’s obligations
under this Lease.

29. Waiver. The waiver by Lessor or Lessee of any breach of any term, covenant, or
condition, herein contained shall not be deemed to be a waiver of such term, covenant, or
condition, or any subsequent breach of the same or any other term, covenant, or condition herein
contained. The subsequent acceptance of rent hereunder by lessor shall not be deemed to be a waiver
of any preceding breach by Lessee of any term, covenant, or condition of this Lease, other than the
failure of Lessee to pay the particular rental so accepted, regardless of Lessor’s knowledge of
such preceding breach at the time of acceptance of such rent.

30. Holding Over. Lessee shall have the right to negotiate with Lessor in order to allow
Lessee to holdover in the Premises with Lessor’s consent at a rental rate equal to the greater of
fair market rent for the Premises (as reasonably determined by Lessor in good faith) or the base
rent then in effect under this Lease during the last month of this Lease prior to the commencement
of such a holdover period. Any holding over after the expiration of the term or any extension
thereof, without the consent of lessor, shall be construed to be a tenancy at sufferance, at a
rental of one and one- half (1 1/2) times the previous month’s rental rate per month, and shall
otherwise be on the terms and conditions herein specified, so far as applicable.

31. Covenants. Conditions, and Restrictions. Attached hereto, marked Exhibit “C” and by
this reference incorporated as if set out in full, are Covenants, Conditions, and Restrictions
pertaining to Los Gatos Business Park. As a condition to this Lease, Lessee agrees to abide by all
of said Covenants, Conditions, and Restrictions. Moreover, such reasonable rules and regulations as
may be hereafter adopted by Lessor for the safety, care, and cleanliness of the Premises and the
preservation of good order thereon, are hereby expressly made a part hereof, and Lessee agrees to
obey all such rules and regulations.

32. Limitation on Lessor’s Liability. If Lessor is in default of this Lease, and, as a
consequence,

Page 19 of 29

 

Lessee recovers a money judgment against Lessor, the judgment shall be satisfied only out of the
proceeds of sale received on execution of the judgment and levy against the right, title, and
interest of Lessor in the Premises, or in the building, other improvements, and land of which the
Premises are part, and out of rent or other income from such real property receivable by Lessor or
out of the consideration received by Lessor from the sale or other disposition of all or any part
of Lessor’s right, title, and interest in the Premises or in the building, other improvements, and
land of which the Premises are part. Neither Lessor nor any of the partners comprising the
partnership designated as Lessor shall be personally liable for any deficiency.

33. Expansion. Lessee shall notify Lessor from time to time of its possible interest for
more space within Los Gatos Business Park. Lessor shall have five (5) business days to respond to
Lessee with the current availability of space or any potential availability that Lessor has actual
knowledge of. This shall not be a default provision of the Lease.

34. Right to Terminate. Lessee shall have the right to terminate this Lease at the end of
the 3rd Rent Year by providing Lessor with six (6) months prior written notice of its
intent to terminate, which notice may be given such that the termination date would be the last day
of the 3rd Rent Year (the “Termination Notice”). The Termination Notice shall specify
Lessee’s desired termination date, which date shall not be earlier than six (6) months after the
date of the Termination Notice (the “Termination Date”) Should Lessee exercise its right to
terminate, Lessee shall pay to Lessor an amount equal to six (6) months of Monthly Rent and
Additional Rent next coming due after the Termination Date, along with the unamortized portion of
the Lessor’s Allowance (as such term is defined in the Work Letter) and the leasing commissions
paid with respect to the initial term of this Lease (the “Termination Fee”). Within five (5)
business days after Lessee’s written request, Lessor shall provide Lessee with the amount of the
Termination Fee based on the Termination Date. Notwithstanding the foregoing, Lessor shall rebate
to Lessee all or a portion of the Termination Fee in the event Lessor realizes a gain above
Lessee’s remaining Rent obligation under the Lease according to the following formula: Lessee’s
entire remaining Rent obligation under the Lease for the period of time from and after the
Termination Date to and including the Expiration Date (such period the “Remaining Period”) shall be
calculated, and in the event Lessor leases the Premises to a third party for all or any portion of
the Remaining Term, then the new rental due to Lessor shall be computed for the applicable portion
of the Remaining Period. In the event the third party’s rent through the same period is in excess
of Lessee’s Rent obligation through such period, then Lessee shall receive the excess rent as a
rebate up to the amount of the termination fee. Lessor shall promptly remit the rebate amount to
Lessee following the commencement date of the new lease.

35. Signage. Lessee, at Lessee’s sole cost, shall have the right to building and monument
signage per Los Gatos Business Park standards and Town regulations.

36. Miscellaneous.

	 	A.	 	Time is of the essence of this Lease, and of each and all of its provisions.
	 
	 	B.	 	The term “building” shall mean the building in which the Premises are situated.
	 
	 	C.	 	If the building is leased to more than one tenant, then each such tenant, its agents,

Page 20 of 29

 

	 	 	 	officers, employees, and invitees, shall have the non-exclusive right (in
conjunction with the use of the part of the building leased to such tenant) to make
reasonable use of any driveways, sidewalks, and parking areas located on the parcel
of land on which the building is situated, except such parking areas as may from
time to time be leased for exclusive use by other tenant(s).

	 	D.	 	Lessee’s such reasonable use of parking areas shall not exceed that percent of
the total parking areas which is equal to the ratio which floor space of the Premises
bears to floor space of the building.
	 
	 	E.	 	The term “assign” shall include the term “transfer.”
	 
	 	F.	 	The invalidity or unenforceability of any provision of this Lease shall not
affect the validity or enforceability of the remainder of this Lease.
	 
	 	G.	 	All parties hereto have equally participated in the preparation of this Lease.
	 
	 	H.	 	The headings and titles to the Paragraphs of this Lease are not a part of this
Lease and shall have no effect upon the construction or interpretation of any part
thereof.
	 
	 	I.	 	Lessor has made no representation(s) whatsoever to Lessee (express or implied)
except as may be expressly stated in writing in this Lease instrument.
	 
	 	J.	 	This instrument contains all of the agreements and conditions made between the
parties hereto, and may not be modified orally or in any other manner than by
agreement in writing, signed by all of the parties hereto or their respective
successors in interest.
	 
	 	K.	 	It is understood and agreed that the remedies herein given to Lessor shall be
cumulative, and the exercise of any one remedy by Lessor shall not be to the exclusion
of any other remedy.
	 
	 	L.	 	The covenants and conditions herein contained shall, subject to the provisions
as to assignment, apply to and bind the heirs, successors, executors, and
administrators, and assigns of all the parties hereto; and all of the parties hereto
shall jointly and severally be liable hereunder.
	 
	 	M.	 	This Lease has been negotiated by the parties hereto and the language hereof
shall not be construed for or against either party.
	 
	 	N.	 	All exhibits to which reference is made are deemed incorporated into this
Lease, whether covenants or conditions, on the part of Lessee shall be deemed to be
both covenants and conditions.
	 
	 	 	 	[Remainder of Page Intentionally Blank. Signatures on Following Page.]

Page 21 of 29

 

     IN WITNESS WHEREOF, Lessor and Lessee have executed this Lease on the date first
above-written.

	 	 	 
	LESSOR:

	 	LESSEE:
	Los Gatos Business Park

	 	StrataLight Communications, Inc.
	 
	 	 
	BY: /s/ Carolee White

	 	BY: /s/ Illegible
	 

	 	 

	Carolee White, Trustee
	 	 
	General Partner
	 	 
	 
	 	 
	DATE: 3/15/04

	 	DATE: 3/14/06

Page 22 of 29

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