Document:

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                                                                    EXHIBIT 10.7

                            EXTREME NETWORKS, INC.

                      2000 NONSTATUTORY STOCK OPTION PLAN

                   Establishment, Purpose and Term of Plan.
                   ---------------------------------------

          1.1  Establishment. The Company's 2000 Nonstatutory Stock Option Plan
(the "Plan") is established effective as of March ___, 2000.

          1.2  Purpose. The purpose of the Plan is to advance the interests of
the Participating Company Group and its stockholders by providing an incentive
to attract, retain and reward persons performing services for the Participating
Company Group and by motivating such persons to contribute to the growth and
profitability of the Participating Company Group.

          1.3  Term of Plan. The Plan shall continue in effect until the earlier
of its termination by the Board or the date on which all of the shares of Stock
available for issuance under the Plan have been issued and all restrictions on
such shares under the terms of the Plan and the agreements evidencing Options
granted under the Plan have lapsed.

                         Definitions and Construction.
                         -----------------------------

          2.1  Definitions. Whenever used herein, the following terms shall have
their respective meanings set forth below:

                    "Board" means the Board of Directors of the Company. If one
or more Committees have been appointed by the Board to administer the Plan,
"Board" also means such Committee(s).

                    "Code" means the Internal Revenue Code of 1986, as amended,
and any applicable regulations promulgated thereunder.

                    "Committee" means the Compensation Committee or other
committee of the Board duly appointed to administer the Plan and having such
powers as shall be specified by the Board. Unless the powers of the Committee
have been specifically limited, the Committee shall have all of the powers of
the Board granted herein, including, without limitation, the power to amend or
terminate the Plan at any time, subject to the terms of the Plan and any
applicable limitations imposed by law.

                    "Company" means Extreme Networks, Inc., a Delaware
corporation, or any successor corporation thereto.

                    "Consultant" means any person, including an advisor, engaged
by a Participating Company to render services other than as an Employee or a
director.

                    "Employee" means any person treated as an employee
(including an officer or a director who is also treated as an employee) in the
records of a Participating Company.

                    "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

                    "Fair Market Value" means, as of any date, the value of a
share of Stock or other property as determined by the Board, in its discretion,
or by the Company, in its discretion, if such determination is expressly
allocated to the Company herein, subject to the following:

          If, on such date, the Stock is listed on a national or regional
securities exchange or market system, the Fair Market Value of a share of Stock
shall be the closing price of a share of Stock (or the mean of the closing bid
and asked prices of a share of Stock if the
<PAGE>

Stock is so quoted instead) as quoted on the Nasdaq National Market, The Nasdaq
SmallCap Market or such other national or regional securities exchange or market
system constituting the primary market for the Stock, as reported in The Wall
                                                                     --------
Street Journal or such other source as the Company deems reliable. If the
--------------
relevant date does not fall on a day on which the Stock has traded on such
securities exchange or market system, the date on which the Fair Market Value
shall be established shall be the last day on which the Stock was so traded
prior to the relevant date, or such other appropriate day as shall be determined
by the Board, in its discretion.

     If, on such date, there is no public market for the Stock, the Fair Market
     Value of a share of Stock shall be as determined by the Board in good faith
     without regard to any restriction other than a restriction which, by its
     terms, will never lapse.

                    "Option" means a right to purchase Stock (subject to
adjustment as provided in Section 4.2) pursuant to the terms and conditions of
the Plan. Options are intended to be nonstatutory stock options and shall not be
treated as incentive stock options within the meaning of Section 422(b) of the
Code.

                    "Option Agreement" means a written agreement between the
Company and an Optionee setting forth the terms, conditions and restrictions of
the Option granted to the Optionee and any shares acquired upon the exercise
thereof.

                    "Optionee" means a person who has been granted one or more
Options.

                    "Parent Corporation" means any present or future "parent
corporation" of the Company, as defined in Section 424(e) of the Code.

                    "Participating Company" means the Company or any Parent
Corporation or Subsidiary Corporation.

                    "Participating Company Group" means, at any point in time,
all corporations collectively which are then Participating Companies.

                    "Stock" means the common stock, without par value, of the
Company, as adjusted from time to time in accordance with Section 4.2.

                    "Subsidiary Corporation" means any present or future
"subsidiary corporation" of the Company, as defined in Section 424(f) of the
Code.

          2.2  Construction. Captions and titles contained herein are for
convenience only and shall not affect the meaning or interpretation of any
provision of the Plan. Except when otherwise indicated by the context, the
singular shall include the plural and the plural shall include the singular. Use
of the term "or" is not intended to be exclusive, unless the context clearly
requires otherwise.

                                Administration.
                                --------------

          3.1  Administration by the Board. The Plan shall be administered by
the Board, including any duly appointed Committee of the Board. All questions of
interpretation of the Plan or of any Option shall be determined by the Board,
and such determinations shall be final and binding upon all persons having an
interest in the Plan or such Option. Any officer of a Participating Company
shall have the authority to act on behalf of the Company with respect to any
matter, right, obligation, determination or election which is the responsibility
of or which is allocated to the Company herein, provided the officer has
apparent authority with respect to such matter, right, obligation, determination
or election.

          3.2  Powers of the Board. In addition to any other powers set forth in
the Plan and subject to the provisions of the Plan, the Board shall have the
full and final power and authority, in its sole discretion:

                    to determine the persons to whom, and the time or times at
which, Options shall be granted and the number of shares of Stock to be subject
to each Option;

                    to determine the Fair Market Value of shares of Stock or
other property;
<PAGE>

                    to determine the terms, conditions and restrictions
applicable to each Option (which need not be identical) and any shares acquired
upon the exercise thereof, including, without limitation, (i) the exercise price
of the Option, (ii) the method of payment for shares purchased upon the exercise
of the Option, (iii) the method for satisfaction of any tax withholding
obligation arising in connection with the Option or such shares, including by
the withholding or delivery of shares of stock, (iv) the timing, terms and
conditions of the exercisability of the Option or the vesting of any shares
acquired upon the exercise thereof, (v) the time of the expiration of the
Option, (vi) the effect of the Optionee's termination of employment or service
with the Participating Company Group on any of the foregoing, and (vii) all
other terms, conditions and restrictions applicable to the Option or such shares
not inconsistent with the terms of the Plan;

                    to approve one or more forms of Option Agreement;

                    to amend, modify, extend, or renew, or grant a new Option in
substitution for, any Option or to waive any restrictions or conditions
applicable to any Option or any shares acquired upon the exercise thereof;

                    to accelerate, continue, extend or defer the exercisability
of any Option or the vesting of any shares acquired upon the exercise thereof,
including with respect to the period following an Optionee's termination of
employment or service with the Participating Company Group;

                    to prescribe, amend or rescind rules, guidelines and
policies relating to the Plan, or to adopt supplements to, or alternative
versions of, the Plan, including, without limitation, as the Board deems
necessary or desirable to comply with the laws of, or to accommodate the tax
policy or custom of, foreign jurisdictions whose citizens may be granted
Options; and

                    to correct any defect, supply any omission or reconcile any
inconsistency in the Plan or any Option Agreement and to make all other
determinations and take such other actions with respect to the Plan or any
Option as the Board may deem advisable to the extent consistent with the Plan
and applicable law.

                            Shares Subject to Plan.
                            ----------------------

          4.1  Maximum Number of Shares Issuable. Subject to adjustment as
provided in Section 4.2, the maximum aggregate number of shares of Stock that
may be issued under the Plan shall be 2,000,000 and shall consist of authorized
but unissued or reacquired shares of Stock or any combination thereof. If an
outstanding Option for any reason expires or is terminated or canceled or shares
of Stock acquired, subject to repurchase, upon the exercise of an Option are
repurchased by the Company, the shares of Stock allocable to the unexercised
portion of such Option, or such repurchased shares of Stock, shall again be
available for issuance under the Plan.

          4.2  Adjustments for Changes in Capital Structure. In the event of any
stock dividend, stock split, reverse stock split, recapitalization, combination,
reclassification or similar change in the capital structure of the Company,
appropriate adjustments shall be made in the number and class of shares subject
to the Plan, and to any outstanding Options and in the exercise price per share
of any outstanding Options. If a majority of the shares which are of the same
class as the shares that are subject to outstanding Options are exchanged for,
converted into, or otherwise become (whether or not pursuant to an Ownership
Change Event, as defined in Section 8.1) shares of another corporation (the "New
Shares"), the Board may unilaterally amend the outstanding Options to provide
that such Options are exercisable for New Shares. In the event of any such
amendment, the number of shares subject to, and the exercise price per share of,
the outstanding Options shall be adjusted in a fair and equitable manner as
determined by the Board, in its sole discretion. Notwithstanding the foregoing,
any fractional share resulting from an adjustment pursuant to this Section 4.2
shall be rounded up or down to the nearest whole number, as determined by the
Board, and in no event may the exercise price of any Option be decreased to an
amount less than the par value, if any, of the stock subject to the Option. The
adjustments determined by the Board pursuant to this Section 4.2 shall be final,
binding and conclusive.

             Eligibility. Options may be granted only to Employees and
 Consultants; provided, however, that no Option shall be granted to any person
(including any officer or director) whose eligibility to receive an Option under
   the Plan at the time of grant would require the approval of the Company's
  stockholders pursuant to any applicable law, regulation or rule, including,
    without limitation, any rule applicable to the listing of the Company's
    securities on the Nasdaq National Market. For purposes of the foregoing
sentence, "Employees"and "Consultants" shall include prospective Employees and
prospective Consultants to whom Options are granted in connection with written
 offers of an employment or other service relationship with the Participating
    Company Group. Eligible persons may be granted more than one (1) Option

             Terms and Conditions of Options. Options shall be evidenced by
 Option Agreements specifying the number of shares of Stock covered thereby, in
 such form as the Board shall from time to time establish. Option Agreements may
       incorporate all or any of the terms of the Plan by reference and
<PAGE>

    shall comply with and be subject to the following terms and conditions:

          6.1  Exercise Price. The exercise price for each Option shall be
established in the sole discretion of the Board; provided, however, that the
exercise price per share for an Option shall be not less than the Fair Market
Value of a share of Stock on the effective date of grant of the Option.
Notwithstanding the foregoing, an Option may be granted with an exercise price
lower than the minimum exercise price set forth above if such Option is granted
pursuant to an assumption or substitution for another option in a manner
qualifying under the provisions of Section 424(a) of the Code.

          6.2  Exercise Period. Options shall be exercisable at such time or
times, or upon such event or events, and subject to such terms, conditions,
performance criteria, and restrictions as shall be determined by the Board and
set forth in the Option Agreement evidencing such Option; provided, however,
that (a) no Option shall be exercisable after the expiration of ten (10) years
after the effective date of grant of such Option, and (b) no Option granted to a
prospective Employee or prospective Consultant may become exercisable prior to
the date on which such person commences service with a Participating Company.

          6.3  Payment of Exercise Price.

                    Forms of Consideration Authorized. Except as otherwise
provided below, payment of the exercise price for the number of shares of Stock
being purchased pursuant to any Option shall be made (i) in cash, by check, or
cash equivalent, (ii) by tender to the Company of shares of Stock owned by the
Optionee having a Fair Market Value (as determined by the Company without regard
to any restrictions on transferability applicable to such stock by reason of
federal or state securities laws or agreements with an underwriter for the
Company) not less than the exercise price, (iii) by the assignment of the
proceeds of a sale or loan with respect to some or all of the shares being
acquired upon the exercise of the Option (including, without limitation, through
an exercise complying with the provisions of Regulation T as promulgated from
time to time by the Board of Governors of the Federal Reserve System) (a
"Cashless Exercise"), (iv) by the Optionee's promissory note in a form approved
by the Company, (v) by such other consideration as may be approved by the Board
from time to time to the extent permitted by applicable law, or (vi) by any
combination thereof. The Board may at any time or from time to time, by adoption
of or by amendment to the standard form of Option Agreement described in Section
7, or by other means, grant Options which do not permit all of the foregoing
forms of consideration to be used in payment of the exercise price or which
otherwise restrict one or more forms of consideration.

                    Tender of Stock. Notwithstanding the foregoing, an Option
may not be exercised by tender to the Company of shares of Stock to the extent
such tender of Stock would constitute a violation of the provisions of any law,
regulation or agreement restricting the redemption of the Company's stock.
Unless otherwise provided by the Board, an Option may not be exercised by tender
to the Company of shares of Stock unless such shares either have been owned by
the Optionee for more than six (6) months or were not acquired, directly or
indirectly, from the Company.

                    Cashless Exercise. The Company reserves, at any and all
times, the right, in the Company's sole and absolute discretion, to establish,
decline to approve or terminate any program or procedures for the exercise of
Options by means of a Cashless Exercise.

                    Payment by Promissory Note. No promissory note shall be
permitted if the exercise of an Option using a promissory note would be a
violation of any law. Any permitted promissory note shall be on such terms as
the Board shall determine at the time the Option is granted. The Board shall
have the authority to permit or require the Optionee to secure any promissory
note used to exercise an Option with the shares of Stock acquired upon the
exercise of the Option or with other collateral acceptable to the Company.
Unless otherwise provided by the Board, if the Company at any time is subject to
the regulations promulgated by the Board of Governors of the Federal Reserve
System or any other governmental entity affecting the extension of credit in
connection with the Company's securities, any promissory note shall comply with
such applicable regulations, and the Optionee shall pay the unpaid principal and
accrued interest, if any, to the extent necessary to comply with such applicable
regulations.

          6.4  Tax Withholding. The Company shall have the right, but not the
obligation, to deduct from the shares of Stock issuable upon the exercise of an
Option, or to accept from the Optionee the tender of, a number of whole shares
of Stock having a Fair Market Value, as determined by the Company, equal to all
or any part of the federal, state, local and foreign taxes, if any, required by
law to be withheld by the Participating Company Group with respect to such
Option or the shares acquired upon the exercise thereof. Alternatively or in
addition, in its sole discretion, the Company shall have the right to require
the Optionee, through payroll withholding, cash payment or otherwise, including
by means of a Cashless Exercise, to make adequate provision for any such
<PAGE>

tax withholding obligations of the Participating Company Group arising in
connection with the Option or the shares acquired upon the exercise thereof. The
Company shall have no obligation to deliver shares of Stock or to release shares
of Stock from an escrow established pursuant to the Option Agreement until the
Participating Company Group's tax withholding obligations have been satisfied by
the Optionee.

                      Standard Forms of Option Agreement.
                      ----------------------------------

          7.1  General. Unless otherwise provided by the Board at the time the
Option is granted, an Option shall comply with and be subject to the terms and
conditions set forth in the form of Option Agreement adopted by the Board
concurrently with its adoption of the Plan and as amended from time to time.

          7.2  Authority to Vary Terms. The Board shall have the authority from
time to time to vary the terms of the standard form of Option Agreement
described in this Section 7 either in connection with the grant or amendment of
an individual Option or in connection with the authorization of a new standard
form or forms; provided, however, that the terms and conditions of any such new,
revised or amended standard form or forms of Option Agreement shall be in
accordance with the terms of the Plan.

                             Transfer of Control.
                             -------------------

          8.1  Definitions.

                    An "Ownership Change Event" shall be deemed to have occurred
if any of the following occurs with respect to the Company: (i) the direct or
indirect sale or exchange in a single or series of related transactions by the
stockholders of the Company of more than fifty percent (50%) of the voting stock
of the Company; (ii) a merger or consolidation in which the Company is a party;
(iii) the sale, exchange, or transfer of all or substantially all of the assets
of the Company; or (iv) a liquidation or dissolution of the Company.

                    A "Transfer of Control" shall mean an Ownership Change Event
or a series of related Ownership Change Events (collectively, the "Transaction")
wherein the stockholders of the Company immediately before the Transaction do
not retain immediately after the Transaction, in substantially the same
proportions as their ownership of shares of the Company's voting stock
immediately before the Transaction, direct or indirect beneficial ownership of
more than fifty percent (50%) of the total combined voting power of the
outstanding voting stock of the Company or the corporation or corporations to
which the assets of the Company were transferred (the "Transferee
Corporation(s)"), as the case may be. For purposes of the preceding sentence,
indirect beneficial ownership shall include, without limitation, an interest
resulting from ownership of the voting stock of one or more corporations which,
as a result of the Transaction, own the Company or the Transferee
Corporation(s), as the case may be, either directly or through one or more
subsidiary corporations. The Board shall have the right to determine whether
multiple sales or exchanges of the voting stock of the Company or multiple
Ownership Change Events are related, and its determination shall be final,
binding and conclusive.

          8.2  Effect of Transfer of Control on Options. In the event of a
Transfer of Control, the surviving, continuing, successor, or purchasing
corporation or parent corporation thereof, as the case may be (the "Acquiring
Corporation"), may either assume the Company's rights and obligations under
outstanding Options or substitute for outstanding Options substantially
equivalent options for the Acquiring Corporation's stock. The Board may, in its
sole discretion, provide in any Option Agreement that in the event the Acquiring
Corporation elects not to assume or substitute for outstanding Options in
connection with a Transfer of Control (or regardless of whether the Acquiring
Corporation so elects), any unexercisable or unvested portion of the outstanding
Option shall be immediately exercisable and vested in full as of the date ten
(10) days prior to the date of the Transfer of Control. The exercise or vesting
of any Option that was permissible solely by reason of this Section 8.2 and the
provisions of such Option Agreement shall be conditioned upon the consummation
of the Transfer of Control. Any Options which are neither assumed or substituted
for by the Acquiring Corporation in connection with the Transfer of Control nor
exercised as of the date of the Transfer of Control shall terminate and cease to
be outstanding effective as of the date of the Transfer of Control.
Notwithstanding the foregoing, shares acquired upon exercise of an Option prior
to the Transfer of Control and any consideration received pursuant to the
Transfer of Control with respect to such shares shall continue to be subject to
all applicable provisions of the Option Agreement evidencing such Option except
as otherwise provided in such Option Agreement. Furthermore, notwithstanding the
foregoing, if the corporation the stock of which is subject to the outstanding
Options immediately prior to an Ownership Change Event described in Section
8.1(a)(i) constituting a Transfer of Control is the surviving or continuing
corporation and immediately after such Ownership Change Event less than fifty
percent (50%) of the total combined voting power of its voting stock is held by
another corporation or by other corporations
<PAGE>

that are members of an affiliated group within the meaning of Section 1504(a) of
the Code without regard to the provisions of Section 1504(b) of the Code, the
outstanding Options shall not terminate unless the Board otherwise provides in
its sole discretion.

             Nontransferability of Options. During the lifetime of the Optionee,
an Option shall be exercisable only by the Optionee or the Optionee's guardian
 or legal representative. No Option shall be assignable or transferable by the
Optionee, except by will or by the laws of descent and distribution, except as
                       provided in an Option Agreement.

             Compliance with Securities Laws. The grant of Options and the
   issuance of shares of Stock upon exercise of Options shall be subject to
 compliance with all applicable requirements of federal, state and foreign law
 with respect to such securities. Options may not be exercised if the issuance
 of shares of Stock upon exercise would constitute a violation of any applicable
 federal, state or foreign securities laws or other law or regulations or the
 requirements of any stock exchange or market system upon which the Stock may
     then be listed. In addition, no Option may be exercised unless (a) a
 registration statement under the Securities Act shall at the time of exercise
of the Option be in effect with respect to the shares issuable upon exercise of
 the Option or (b) in the opinion of legal counsel to the Company, the shares
issuable upon exercise of the Option may be issued in accordance with the terms
of an applicable exemption from the registration requirements of the Securities
  Act. The inability of the Company to obtain from any regulatory body having
jurisdiction the authority, if any, deemed by the Company's legal counsel to be
necessary to the lawful issuance and sale of any shares hereunder shall relieve
 the Company of any liability in respect of the failure to issue or sell such
shares as to which such requisite authority shall not have been obtained. As a
 condition to the exercise of any Option, the Company may require the Optionee
to satisfy any qualifications that may be necessary or appropriate, to evidence
compliance with any applicable law or regulation and to make any representation
     or warranty with respect thereto as may be requested by the Company.

             Indemnification. In addition to such other rights of
    indemnification as they may have as members of the Board or officers or
  employees of the Participating Company Group, members of the Board and any
 officers or employees of the Participating Company Group to whom authority to
act for the Board is delegated shall be indemnified by the Company against all
   reasonable expenses, including attorneys' fees, actually and necessarily
incurred in connection with the defense of any action, suit or proceeding, or in
connection with any appeal therein, to which they or any of them may be a party
by reason of any action taken or failure to act under or in connection with the
 Plan, or any right granted hereunder, and against all amounts paid by them in
 settlement thereof (provided such settlement is approved by independent legal
counsel selected by the Company) or paid by them in satisfaction of a judgment
  in any such action, suit or proceeding, except in relation to matters as to
which it shall be adjudged in such action, suit or proceeding that such person
is liable for gross negligence, bad faith or intentional misconduct in duties;
 provided, however, that within sixty (60) days after the institution of such
action, suit or proceeding, such person shall offer to the Company, in writing,
       the opportunity at its own expense to handle and defend the same.

             Termination or Amendment of Plan. The Board may terminate or amend
  the Plan at any time. However, no termination or amendment of the Plan may
adversely affect any then outstanding Option or any unexercised portion thereof,
 without the consent of the Optionee, unless such termination or amendment is
       necessary to comply with any applicable law, regulation or rule.
<PAGE>

                                 PLAN HISTORY
                                 ------------

_____________, 2000    Board adopts the Plan, with an initial reserve of
2,000,000 shares.<PAGE>

================================================================================
                                                                    EXHIBIT 10.8

                                  $31,400,000

                                LEASE AGREEMENT
                                    (Land)

                                    BETWEEN

                            BNP LEASING CORPORATION

                                   ("BNPLC")

                                      AND

                            EXTREME NETWORKS, INC.

                                  ("Extreme")

                                 June 1, 2000

                           (Santa Clara, California)

================================================================================

[Land]
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                      Page
                                                                                                                      ----
<S>                                                                                                                   <C>
1.   Term............................................................................................................    2
     (a)      Scheduled Term.........................................................................................    2
              --------------
     (b)      Election by Extreme to Terminate After Accelerating the Designated Sale Date...........................    2
              ----------------------------------------------------------------------------
     (c)      Extension of the Term..................................................................................    3
              ---------------------

2.   Use and Condition of the Property...............................................................................    3
     (a)      Use....................................................................................................    3
              ---
     (b)      Condition of the Property..............................................................................    4
              -------------------------
     (c)      Consideration for and Scope of Waiver..................................................................    4
              -------------------------------------

3.   Rent............................................................................................................    4
     (a)      Base Rent Generally....................................................................................    4
              -------------------
     (b)      Impact of Collateral Upon Formulas.....................................................................    4
              ----------------------------------
     (c)      Calculation of and Due Dates for Base Rent.............................................................    5
              ------------------------------------------
              (i)      Determination of Payment Due Dates, Generally.................................................    5
                       ---------------------------------------------
              (ii)     Special Adjustments to Base Rent Payment Dates and Periods....................................    5
                       ----------------------------------------------------------
              (iii)    Base Rent Formula for Periods During Which The Collateral Percentage is 100%..................    6
                       ----------------------------------------------------------------------------
              (iv)     Base Rent Formula for Periods During Which The Collateral Percentage is Less Than 100%........    6
                       --------------------------------------------------------------------------------------
     (d)      Additional Rent........................................................................................    7
              ---------------
     (e)      No Demand or Setoff....................................................................................    7
              -------------------
     (f)      Default Interest and Order of Application..............................................................    8
              -----------------------------------------

4.   Nature of this Agreement.........................................................................................    8
     (a)      "Net" Lease Generally..................................................................................    8
              ---------------------
     (b)      No Termination.........................................................................................    8
              --------------
     (c)      Tax Reporting..........................................................................................    9
              -------------
     (d)      Characterization of this Land Lease....................................................................    9
              -----------------------------------

5.   Payment of Executory Costs and Losses Related to the Property...................................................   10
     (a)      Impositions............................................................................................   10
              -----------
     (b)      Increased Costs; Capital Adequacy Charges..............................................................   10
              -----------------------------------------
     (c)      Extreme's Payment of Other Losses; General Indemnification.............................................   11
              ----------------------------------------------------------
     (d)      Exceptions and Qualifications to Indemnities...........................................................   13
              --------------------------------------------

6.   Environmental...................................................................................................   14
     (a)      Environmental Covenants by Extreme.....................................................................   14
              ----------------------------------
     (b)      Right of BNPLC to do Remedial Work Not Performed by Extreme............................................   14
              -----------------------------------------------------------
     (c)      Environmental Inspections and Reviews..................................................................   15
              -------------------------------------
     (d)      Communications Regarding Environmental Matters.........................................................   15
              ----------------------------------------------

7.   Insurance Required and Condemnation.............................................................................   16
</TABLE>

[Land]
<PAGE>

<TABLE>
<S>                                                                                                                     <C>
     (a)      Liability Insurance....................................................................................   16
              -------------------
     (b)      Failure to Obtain Insurance............................................................................   16
              ---------------------------
     (c)      Condemnation...........................................................................................   16
              ------------

8.   Application of Insurance and Condemnation Proceeds..............................................................   16
     (a)      Collection and Application of Insurance and Condemnation Proceeds Generally............................   17
              ---------------------------------------------------------------------------
     (b)      Advances of Escrowed Proceeds to Extreme...............................................................   17
              ----------------------------------------
     (c)      Application of Escrowed Proceeds as a Qualified Prepayment.............................................   17
              ----------------------------------------------------------
     (d)      Special Provisions Applicable After Completion by Extreme of the Initial Renovations...................   18
              ------------------------------------------------------------------------------------
     (e)      Special Provisions Applicable After an Event of Default................................................   18
              -------------------------------------------------------
     (f)      Extreme's Obligation to Restore........................................................................   18
              -------------------------------
     (g)      Takings of All or Substantially All of the Property....................................................   18
              ---------------------------------------------------

9.   Additional Representations, Warranties and Covenants of Extreme Concerning the Property.........................   18
     (a)      Compliance with Covenants and Laws.....................................................................   18
              ----------------------------------
     (b)      Operation of the Property..............................................................................   19
              -------------------------
     (c)      Debts for Construction, Maintenance, Operation or Development..........................................   20
              -------------------------------------------------------------
     (d)      Repair, Maintenance, Alterations and Additions.........................................................   20
              ----------------------------------------------
     (e)      Permitted Encumbrances and Development Documents.......................................................   20
              ------------------------------------------------
     (f)      Books and Records Concerning the Property..............................................................   21
              -----------------------------------------

10.  Financial Covenants, Reporting Covenants and Other Covenants Incorporated by Reference to Schedule 1............   21
                                                                                               ----------
11.  Assignment and Subletting by Extreme............................................................................   21
     (a)      BNPLC's Consent Required...............................................................................   21
              ------------------------
     (b)      Standard for BNPLC's Consent to Assignments and Certain Other Matters..................................   21
              ---------------------------------------------------------------------
     (c)      Consent Not a Waiver...................................................................................   21
              --------------------

12.  Assignment by BNPLC.............................................................................................   21
     (a)      Restrictions on Transfers..............................................................................   21
              -------------------------
     (b)      Effect of Permitted Transfer or other Assignment by BNPLC..............................................   22
              ---------------------------------------------------------

13.  BNPLC'S Right of Access.........................................................................................   22

14.  Events of Default...............................................................................................   23

15.  Remedies........................................................................................................   24
     (a)      Basic Remedies.........................................................................................   24
              --------------
     (b)      Notice Required So Long As the Purchase Option and Extreme's Initial Remarketing
              --------------------------------------------------------------------------------
              Rights and Obligations Continue Under the Purchase Agreement...........................................   26
              --------------------------------------------------
     (c)      Enforceability.........................................................................................   26
              --------------
     (d)      Remedies Cumulative....................................................................................   26
              -------------------

16.  Default by BNPLC................................................................................................   27

17.  Quiet Enjoyment.................................................................................................   27

18.  Surrender Upon Termination......................................................................................   27
</TABLE>

[Land]
<PAGE>

<TABLE>
<S>                                                                                                                     <C>
19.  Holding Over by Extreme.........................................................................................   28

20.  Independent Obligations Evidenced by the Other Operative Documents..............................................   28
</TABLE>

[Land]
<PAGE>

                            Exhibits and Schedules

Exhibit A......................................................Legal Description
---------

Exhibit B.................................................Insurance Requirements
---------

Exhibit C.............................................LIBOR Period Election Form
---------

Schedule 1............................Financial Covenants and Other Requirements
----------

[Land]

                                     (iv)
<PAGE>

                                LEASE AGREEMENT
                                    (LAND)

     This LEASE AGREEMENT (LAND) (this "Land Lease"), is made and dated as of
June 1, 2000 (the "Effective Date") by and between BNP LEASING CORPORATION, a
Delaware corporation ("BNPLC"), and EXTREME NETWORKS, INC., a Delaware
corporation ("Extreme").

                                   RECITALS

     Contemporaneously with the execution of this Land Lease, BNPLC and Extreme
are executing a Common Definitions and Provisions Agreement (Land) dated as of
the Effective Date (the "Common Definitions and Provisions Agreement (Land)"),
which by this reference is incorporated into and made a part of this Land Lease
for all purposes. As used in this Land Lease, capitalized terms defined in the
Common Definitions and Provisions Agreement (Land) and not otherwise defined in
this Land Lease are intended to have the respective meanings assigned to them in
the Common Definitions and Provisions Agreement (Improvements).

     Pursuant to the Acquisition Contract, which covers the Land described in
Exhibit A, BNPLC is acquiring the Land and any appurtenances thereto and all
---------
existing Improvements thereon from Seller contemporaneously with the execution
of this Land Lease.

     In anticipation of BNPLC's acquisition of the Land and the existing
Improvements thereon under the Acquisition Contract, BNPLC and Extreme have
reached agreement as to the terms and conditions upon which BNPLC is willing to
lease the Land to Extreme, and by this Land Lease BNPLC and Extreme desire to
evidence such agreement.

                               GRANTING CLAUSES

     BNPLC does hereby LEASE, DEMISE and LET unto Extreme for the term
hereinafter set forth all right, title and interest of BNPLC, now owned or
hereafter acquired, in and to:

          (1)  the Land;

          (2)  all easements and other rights appurtenant to the Land, whether
     now owned or hereafter acquired by BNPLC; and

          (3)  (A) any land lying within the right-of-way of any street, open or
     proposed, adjoining the Land, (B) any sidewalks and alleys adjacent to the
     Land and (C) any strips and gores between the Land and any abutting land
     not owned or leased by BNPLC.

BNPLC's interest in all property described in clauses (1) through (3) above are
hereinafter referred to collectively as the "Real Property". The Real Property
does not include any Improvements (now existing or those to be constructed as
provided in the Other Lease Agreement) or BNPLC's rights appurtenant to the
Improvements, it being understood that the Other Lease Agreement constitutes a
separate lease of the Improvements and the appurtenances thereto, and only the
Improvements and the appurtenances thereto, from BNPLC to Extreme.

[Land]
<PAGE>

     To the extent, but only to the extent, that assignable rights or interests
in, to or under the following have been or will be acquired by BNPLC under the
Acquisition Contract or acquired by BNPLC pursuant to Paragraph ? below, BNPLC
also hereby grants and assigns to Extreme for the term of this Land Lease the
right to use and enjoy (and, in the case of contract rights, to enforce) such
rights or interests of BNPLC:

          (a)  the benefits, if any, conferred upon the owner of the Real
     Property by the Permitted Encumbrances and Development Documents; and

          (b)  any permits, licenses, franchises, certificates, and other rights
     and privileges against third parties related to the Real Property.

Such rights and interests of BNPLC, whether now existing or hereafter arising,
are hereinafter collectively called the "Personal Property". The Real Property
and the Personal Property are hereinafter sometimes collectively called the
"Property."

     However, the leasehold estate conveyed hereby and Extreme's rights
hereunder are expressly made subject and subordinate to the terms and conditions
of this Land Lease, the Premises Leases and all other Permitted Encumbrances,
and to any other claims or encumbrances not constituting Liens Removable by
BNPLC.

                         GENERAL TERMS AND CONDITIONS

     The Property is leased by BNPLC to Extreme and is accepted and is to be
used and possessed by Extreme upon and subject to the following terms and
conditions:

     1    Term.

          (a)  Scheduled Term.  The term of this Land Lease (the "Term") shall
               --------------
commence on and include the Effective Date, and end on the first Business Day of
July, 2005, unless sooner terminated as expressly herein provided.

          (b)  Election by Extreme to Terminate After Accelerating the
               -------------------------------------------------------
Designated Sale Date.  Extreme shall be entitled to accelerate the Designated
--------------------
Sale Date (and thus accelerate the purchase of BNPLC's interest in the Property
by Extreme or by an Applicable Purchaser pursuant to the Purchase Agreement) by
sending a notice to BNPLC as provided in clause (2) of the definition of
"Designated Sale Date" in the Common Definitions and Provisions Agreement
(Land). In the event, because of Extreme's election to so accelerate the
Designated Sale Date or for any other reason, the Designated Sale Date occurs
before the end of the scheduled Term, Extreme may terminate this Land Lease on
or after the Designated Sale Date; provided, however, as a condition to any such
termination by Extreme, Extreme must have done the following prior to the
termination:

          (i)    purchased or caused an Applicable Purchaser to purchase the
     Property pursuant to the Purchase Agreement and satisfied all of Extreme's
     other obligations under the Purchase Agreement;

          (ii)   paid to BNPLC all Base Rent and all other Rent due on or before
     or accrued through the Designated Sale Date; and

          (iii)  paid any Breakage Costs caused by BNPLC's sale of the Property
     pursuant to the Purchase Agreement.

[Land]

                                      -2-
<PAGE>

          (c)  Extension of the Term.  The Term may be extended at the option of
               ---------------------
Extreme for two successive periods of five years each; provided, however, that
prior to any such extension the following conditions must have been satisfied:
(A) at least one hundred eighty days prior to the commencement of any such
extension, BNPLC and Extreme must have agreed in writing upon, and received the
consent and approval of BNPLC's Parent and all other Participants to (1) a
corresponding extension not only to the date for the expiration of the Term
specified above in this Section, but also to the date specified in clause (1) of
the definition of Designated Sale Date in the Common Definitions and Provisions
Agreement (Land), and (2) an adjustment to the Rent that Extreme will be
required to pay for the extension, it being expected that the Rent for the
extension may be different than the Rent required for the original Term, and it
being understood that the Rent for any extension must in all events be
satisfactory to both BNPLC and Extreme, each in its sole and absolute
discretion; (B) no Event of Default shall have occurred and be continuing at the
time of Extreme's exercise of its option to extend; and (C) immediately prior to
any such extension, this Land Lease must remain in effect. With respect to the
condition that BNPLC and Extreme must have agreed upon the Rent required for any
extension of the Term, neither Extreme nor BNPLC is willing to submit itself to
a risk of liability or loss of rights hereunder for being judged unreasonable.
Accordingly, both Extreme and BNPLC hereby disclaim any obligation express or
implied to be reasonable in negotiating the Rent for any such extension. Subject
to the changes to the Rent payable during any extension of the Term as provided
in this Paragraph, if Extreme exercises its option to extend the Term as
provided in this Paragraph, this Land Lease shall continue in full force and
effect, and the leasehold estate hereby granted to Extreme shall continue
without interruption and without any loss of priority over other interests in or
claims against the Property that may be created or arise after the date hereof
and before the extension.

     2    Use and Condition of the Property.

          (a)  Use.  Subject to the Permitted Encumbrances, the Development
               ---
Documents and the terms hereof, Extreme may use and occupy the Property during
the Term, but only for the following purposes and other lawful purposes
incidental thereto;

          (i)  constructing, maintaining and using Improvements on the Land for
     purposes expressly permitted by and described in Paragraph 2(a) of the
                                                      --------------
     Other Lease Agreement; and

          (ii) other lawful purposes approved in advance and in writing by
     BNPLC, which approval will not be unreasonably withheld (but Extreme
     acknowledges that BNPLC's withholding of such approval shall be reasonable
     if BNPLC determines in good faith that (1) giving the approval may
     materially increase BNPLC's risk of liability for any existing or future
     environmental problem, or (2) giving the approval is likely to
     substantially increase BNPLC's administrative burden of complying with or
     monitoring Extreme's compliance with the requirements of this Land Lease or
     other Operative Documents).

Nothing in this subparagraph will prevent a tenant under a Premises Lease,
executed prior to the Effective Date, from using the space covered thereby for
purposes expressly authorized by the terms and conditions of such Premises
Lease.

          (b)  Condition of the Property. Extreme acknowledges that it has
               -------------------------
carefully and fully inspected the Property and accepts the Property in its
present state, AS IS, and without any representation or warranty, express or
               -----
implied, as to the condition of such property or as to the use which may be made
thereof. Extreme also accepts the Property without any covenant, representation
or warranty, express or implied, by BNPLC or its Affiliates regarding the title
thereto or the rights of any parties in possession of any part thereof, except
as expressly set forth in Paragraph 17. BNPLC shall not be responsible for any
latent or other defect or change of

[Land]

                                      -3-
<PAGE>

condition in the Land or in Improvements, fixtures and personal property forming
a part of the Property or for any violations with respect thereto of Applicable
Laws. Further, BNPLC shall not be required to furnish to Extreme any facilities
or services of any kind, including water, steam, heat, gas, air conditioning,
electricity, light or power.

          (c)  Consideration for and Scope of Waiver. The provisions of
               -------------------------------------
subparagraph 2.(b) above have been negotiated by BNPLC and Extreme after due
consideration for the Rent payable hereunder and are intended to be a complete
exclusion and negation of any representations or warranties of BNPLC or its
Affiliates, express or implied, with respect to the Property that may arise
pursuant to any law now or hereafter in effect or otherwise, except as expressly
set forth herein.

     However, such exclusion of representations and warranties by BNPLC is not
intended to impair any representations or warranties made by other parties, the
benefit of which may pass to Extreme during the Term because of the definition
of Personal Property and Property above.

     3    Rent.

          (a)  Base Rent Generally. On each Base Rent Date through the end of
               -------------------
the Term, Extreme shall pay BNPLC rent ("Base Rent"), calculated as provided
below. Each payment of Base Rent must be received by BNPLC no later than 10:00
a.m. (Pacific time) on the date it becomes due; if received after 10:00 a.m.
(Pacific time) it will be considered for purposes of this Land Lease as received
on the next following Business Day. At least five days prior to each Base Rent
Date, BNPLC shall notify Extreme in writing of the amount of each installment,
calculated as provided below. Any failure by BNPLC to so notify Extreme,
however, shall not constitute a waiver of BNPLC's right to payment, but absent
such notice Extreme shall not be in default hereunder for any underpayment
resulting therefrom if Extreme, in good faith, reasonably estimates the payment
required, makes a timely payment of the amount so estimated and corrects any
underpayment within three Business Days after being notified by BNPLC of the
underpayment.

          (b)  Impact of Collateral Upon Formulas. To ease the administrative
               ----------------------------------
burden of this Land Lease and the Pledge Agreement, the formulas for calculating
Base Rent set out below in subparagraph 3.(c) reflect a reduction in the Base
Rent equal to the interest that would accrue on any Collateral provided in
accordance with the requirements of the Pledge Agreement from time to time if
the Accounts (as defined in the Pledge Agreement) bore interest at the Deposit
Rate. BNPLC has agreed to such reduction to provide Extreme with the economic
equivalent of interest on such Collateral, and in return Extreme has agreed to
the provisions of the Pledge Agreement that excuse the actual payment of
interest on the Accounts. By incorporating such reduction of Base Rent into the
formulas below, and by providing for noninterest bearing Accounts in the Pledge
Agreement, an unnecessary and cumbersome periodic exchange of equal payments
will be avoided. It is not, however, the intent of BNPLC or Extreme to
understate Base Rent or interest for financial reporting purposes. Accordingly,
for purposes of any financial reports that this Land Lease requires of Extreme
from time to time, Extreme may report Base Rent as if there had been no such
reduction and as if the Collateral from time to time provided in accordance with
the requirements of the Pledge Agreement had been maintained in Accounts bearing
interest at the Deposit Rate.

          (c)  Calculation of and Due Dates for Base Rent.  Payments of Base
               ------------------------------------------
Rent shall be calculated and become due as follows:

          (i)  Determination of Payment Due Dates, Generally.
               ---------------------------------------------

[Land]

                                      -4-
<PAGE>

               a0 For all Base Rent Periods subject to a LIBOR Period Election
          of one month or three months, Base Rent shall be due in one
          installment on the Base Rent Date upon which the Base Rent Period
          ends.

               b0 For Base Rent Periods subject to a LIBOR Period Election of
          six months, Base Rent shall be payable in two installments, with the
          first installment becoming due on the Base Rent Date that occurs on
          the first Business Day of the third calendar month following the
          commencement of such Base Rent Period, and with the second installment
          becoming due on the Base Rent Date upon which the Base Rent Period
          ends.

               c0 For Base Rent Periods subject to a LIBOR Period Election of
          nine months, Base Rent shall be payable in three installments, with
          the first installment becoming due on the Base Rent Date that occurs
          on the first Business Day of the third calendar month following the
          commencement of such Base Rent Period, with the second installment
          becoming due on the first Business Day of the sixth calendar month
          following the commencement of such Base Rent Period, and with the
          third installment becoming due on the Base Rent Date upon which the
          Base Rent Period ends.

               d0 For Base Rent Periods subject to a LIBOR Period Election of
          twelve months, Base Rent shall be payable in four installments, with
          the first installment becoming due on the Base Rent Date that occurs
          on the first Business Day of the third calendar month following the
          commencement of such Base Rent Period, with the second installment
          becoming due on the first Business Day of the sixth calendar month
          following the commencement of such Base Rent Period, with the third
          installment becoming due on the first Business Day of the ninth
          calendar month following the commencement of such Base Rent Period,
          and with the fourth installment becoming due on the Base Rent Date
          upon which the Base Rent Period ends.

          (ii) Special Adjustments to Base Rent Payment Dates and Periods.
               ----------------------------------------------------------
Notwithstanding the foregoing:

               a0 Any Base Rent Period that begins before, and does not
          otherwise end before, the first Business Day of the first calendar
          month following a Failed Collateral Test Date shall end upon but not
          include such first Business Day, and such first Business Day shall
          constitute a Base Rent Date, upon which Extreme must pay all accrued,
          unpaid Base Rent for the Base Rent Period just ended.

               b0 In addition to Base Rent due on a the first Business Day of
          the first calendar month following a Failed Collateral Test Date,
          Extreme must pay the Breakage Costs, if any, resulting from any early
          ending of a Base Rent Period pursuant to the preceding clause
          3.(c)(ii)a).

               c0 If Extreme or any Applicable Purchaser purchases BNPLC's
          interest in the Property pursuant to the Purchase Agreement, any
          accrued unpaid Base Rent and all outstanding Additional Rent shall be
          due on the date of purchase in addition to the purchase price and
          other sums due BNPLC under the Purchase Agreement.

[Land]

                                      -5-
<PAGE>

          (iii) Base Rent Formula for Periods During Which The Collateral
                ---------------------------------------------------------
     Percentage is 100%. Each installment of Base Rent payable for any Base Rent
     ------------------
     Period during which the Collateral Percentage is one hundred percent (100%)
     shall equal:

          .     Stipulated Loss Value on the first day of such Base Rent Period,
                times

          .     the sum of (a) the Secured Spread and (b) the Effective
                Rate/Deposit Rate Difference for the period from and including
                the preceding Base Rent Date to but not including the Base Rent
                Date upon which the installment is due, times

          .     the number of days in the period from and including the
                preceding Base Rent Date to but not including the Base Rent Date
                upon which the installment is due, divided by

          .     three hundred sixty.

          Assume, only for the purpose of illustration: that the Collateral
     Percentage for a hypothetical Base Rent Period is one hundred percent
     (100%); that prior to the first day of such Base Rent Period Qualified
     Prepayments have been received by BNPLC, leaving a Stipulated Loss Value of
     $5,000,000; that the sum of the Secured Spread and the Effective
     Rate/Deposit Rate Difference is forty-two and one-half basis points
     (42.5/100 of 1%); and that such Base Rent Period contains exactly thirty
     days. Under such assumptions, the Base Rent for the hypothetical Base Rent
     Period will equal:

                    $5,000,000 x .425% x 30/360 = $1,770.83

          (iv)  Base Rent Formula for Periods During Which The Collateral
                ---------------------------------------------------------
     Percentage is Less Than 100%. Each installment of Base Rent payable for any
     ----------------------------
     Base Rent Period during which the Collateral Percentage is less than one
     hundred percent (100%) shall equal:

          .     Stipulated Loss Value on the first day of such Base Rent Period,
                times

          .     the sum of:

                         (A) the product of:

                                   (1)  the Collateral Percentage for
                                        such Base Rent Period, times

                                   (2)  the sum of (a) the Secured
                                        Spread and (b) the Effective
                                        Rate/Deposit Rate Difference
                                        for the period from and
                                        including the preceding Base
                                        Rent Date to but not including
                                        the Base Rent Date upon which
                                        the installment is due, plus

                         (B) the product of:

                                   (1)  one minus the Collateral
                                        Percentage for such Base Rent
                                        Period, times
[Land]

                                      -6-
<PAGE>

                         (2)      the sum of (a) the Effective Rate with respect
                                  to such Base Rent Period, plus (b) the
                                  Unsecured Spread for the period from and
                                  including the preceding Base Rent Date to but
                                  not including the Base Rent Date upon which
                                  the installment is due, times

          .    the number of days in the period from and including the preceding
               Base Rent Date to but not including the Base Rent Date upon which
               the installment is due, divided by

          .    three hundred sixty.

          Assume, only for the purpose of illustration: that the Collateral
     Percentage for a hypothetical Base Rent Period is fifty-five percent (55%);
     that prior to the first day of such Base Rent Period Qualified Prepayments
     have been received by BNPLC, leaving a Stipulated Loss Value of $5,000,000;
     that the Effective Rate for the Base Rent Period is 6%; that the sum of the
     Secured Spread and the Effective Rate/Deposit Rate Difference is forty-two
     and one-half basis points (42.5/100 of 1%); that upon the commencement of
     such Base Rent Period the Unsecured Spread is two hundred twenty-five basis
     points (225/100 of 1%); and that such Base Rent Period contains exactly
     thirty days. Under such assumptions, the Base Rent for the hypothetical
     Base Rent Period will equal:

$5,000,000 x {(55% x .425%) + ([1 - 55%] x [6% + 2.25%])} x 30/360 = $16,442.41

          (d)  Additional Rent. All amounts which Extreme is required to pay to
               ---------------
or on behalf of BNPLC pursuant to this Land Lease, together with every charge,
premium, interest and cost set forth herein which may be added for nonpayment or
late payment thereof, shall constitute rent (all such amounts, other than Base
Rent, are herein called "Additional Rent", and together Base Rent and Additional
Rent are herein sometimes called "Rent").

          (e)  No Demand or Setoff. Except as expressly provided herein, Extreme
               -------------------
shall pay all Rent without notice or demand and without counterclaim, deduction,
setoff or defense.

          (f)  Default Interest and Order of Application. All Rent shall bear
               -----------------------------------------
interest, if not paid when first due, at the Default Rate in effect from time to
time from the date due until paid; provided, that nothing herein contained will
be construed as permitting the charging or collection of interest at a rate
exceeding the maximum rate permitted under Applicable Laws. BNPLC shall be
entitled to apply any amounts paid by or on behalf of Extreme against any Rent
then past due in the order the same became due or in such other order as BNPLC
may elect.

     4    Nature of this Agreement.

          (a) "Net" Lease Generally. Subject only to the exceptions listed in
               --------------------
subparagraph 5.(d) below, it is the intention of BNPLC and Extreme that Base
Rent and other payments herein specified shall be absolutely net to BNPLC and
that Extreme shall pay all costs, expenses and obligations of every kind
relating to the Property or this Land Lease which may arise or become due,
including: (i) any taxes payable by virtue of BNPLC's receipt of amounts paid to
or on behalf of BNPLC in accordance with Paragraph 5; (ii) any amount for which
BNPLC is or becomes liable with respect to the Permitted Encumbrances or the
Development Documents; and (iii) any costs

[Land]

                                      -7-
<PAGE>

incurred by BNPLC (including Attorneys' Fees) because of BNPLC's acquisition or
ownership of any interest in the Property or because of this Land Lease or the
transactions contemplated herein.

          (b)  No Termination. Except as expressly provided in this Land Lease
               --------------
itself, this Land Lease shall not terminate, nor shall Extreme have any right to
terminate this Land Lease, nor shall Extreme be entitled to any abatement of the
Rent, nor shall the obligations of Extreme under this Land Lease be excused, for
any reason whatsoever, including any of the following: (i) any damage to or the
destruction of all or any part of the Property from whatever cause, (ii) the
taking of the Property or any portion thereof by eminent domain or otherwise for
any reason, (iii) the prohibition, limitation or restriction of Extreme's use or
development of all or any portion of the Property or any interference with such
use by governmental action or otherwise, (iv) any eviction of Extreme or of
anyone claiming through or under Extreme, (v) any default on the part of BNPLC
under this Land Lease or under any other agreement to which BNPLC and Extreme
are parties, (vi) the inadequacy in any way whatsoever of the Property (it being
understood that BNPLC has not made, does not make and will not make any
representation express or implied as to the adequacy thereof), (vii) any latent
or other defect in the Property or any change in the condition thereof or the
existence with respect to the Property of any violations of Applicable Laws,
(viii) any breach by Seller of the Acquisition Contract or other agreements or
promises or representations made in connection with the Acquisition Contract
(ix) any breach of a Premises Lease by any lessee thereunder, or (x) any other
cause whether similar or dissimilar to the foregoing. It is the intention of the
parties hereto that the obligations of Extreme hereunder shall be separate and
independent of the covenants and agreements of BNPLC, that Base Rent and all
other sums payable by Extreme hereunder shall continue to be payable in all
events and that the obligations of Extreme hereunder shall continue unaffected,
unless the requirement to pay or perform the same shall have been terminated or
limited pursuant to an express provision of this Land Lease. Without limiting
the foregoing, Extreme waives to the extent permitted by Applicable Laws, except
as otherwise expressly provided herein, all rights to which Extreme may now or
hereafter be entitled by law (including any such rights arising because of any
implied "warranty of suitability" or other warranty under Applicable Laws) (i)
to quit, terminate or surrender this Land Lease or the Property or any part
thereof or (ii) to any abatement, suspension, deferment or reduction of the
Rent.

     However, nothing in this subparagraph 4.(b) shall be construed as a waiver
by Extreme of any right Extreme may have at law or in equity to the following
remedies, whether because of BNPLC's failure to remove a Lien Removable by BNPLC
or because of any other default by BNPLC under this Land Lease that continues
beyond the period for cure provided in Paragraph 16: (i) the recovery of
monetary damages, (ii) injunctive relief in case of the violation, or attempted
or threatened violation, by BNPLC of any of the express covenants, agreements,
conditions or provisions of this Land Lease which are binding upon BNPLC
(including the confidentiality provisions set forth in subparagraph 13.(c)
below), or (iii) a decree compelling performance by BNPLC of any of the express
covenants, agreements, conditions or provisions of this Land Lease which are
binding upon BNPLC.

          (c)  Tax Reporting. BNPLC and Extreme shall report this Land Lease and
               -------------
the Purchase Agreement for federal income tax purposes as a conditional sale
unless prohibited from doing so by the Internal Revenue Service. If the Internal
Revenue Service shall challenge BNPLC's characterization of this Land Lease and
the Purchase Agreement as a conditional sale for federal income tax reporting
purposes, BNPLC shall notify Extreme in writing of such challenge and consider
in good faith any reasonable suggestions by Extreme about an appropriate
response. In any event, Extreme shall (subject only to the limitations set forth
in this subparagraph) indemnify and hold harmless BNPLC from and against all
liabilities, costs, additional taxes (other than Excluded Taxes) and other
expenses that may arise or become due because of such challenge or because of
any resulting recharacterization required by the Internal Revenue Service,
including any additional taxes that may become due upon any sale under the
Purchase Agreement to the extent (if any) that such additional taxes are not
offset by tax savings resulting from additional depreciation deductions or other
tax benefits to BNPLC of the recharacterization. If BNPLC receives a written
notice of any challenge by the Internal Revenue Service that BNPLC believes will
be

[Land]

                                      -8-
<PAGE>

covered by this Paragraph, then BNPLC shall promptly furnish a copy of such
notice to Extreme. The failure to so provide a copy of the notice to Extreme
shall not excuse Extreme from its obligations under this Paragraph; provided,
that if none of the officers of Extreme and none of the employees of Extreme
responsible for tax matters are aware of the challenge described in the notice
and such failure by BNPLC renders unavailable defenses that Extreme might
otherwise assert, or precludes actions that Extreme might otherwise take, to
minimize its obligations hereunder, then Extreme shall be excused from its
obligation to indemnify BNPLC against liabilities, costs, additional taxes and
other expenses, if any, which would not have been incurred but for such failure.
For example, if BNPLC fails to provide Extreme with a copy of a notice of a
challenge by the Internal Revenue Service covered by the indemnities set out in
this Land Lease and Extreme is not otherwise already aware of such challenge,
and if as a result of such failure BNPLC becomes liable for penalties and
interest covered by the indemnities in excess of the penalties and interest that
would have accrued if Extreme had been promptly provided with a copy of the
notice, then Extreme will be excused from any obligation to BNPLC to pay the
excess.

          (d)  Characterization of this Land Lease. For purposes of determining
               -----------------------------------
the appropriate financial accounting for this Land Lease and for purposes of
determining their respective rights and remedies under state law, BNPLC and
Extreme believe and intend that (i) this Land Lease constitutes a true lease,
not a mere financing arrangement, enforceable in accordance with its express
terms, and the preceding subparagraph is not intended to affect the enforcement
of any other provisions of this Land Lease or the Purchase Agreement, and (ii)
the Purchase Agreement shall constitute a separate and independent contract,
enforceable in accordance with the express terms and conditions set forth
therein. In this regard, Extreme acknowledges that Extreme asked BNPLC to
participate in the transactions evidenced by this Land Lease and the Purchase
Agreement as a landlord and owner of the Property, not as a lender. Although
other transactions might have been used to accomplish similar results, Extreme
expects to receive certain material accounting and other advantages through the
use of a lease transaction. Accordingly, and notwithstanding the reporting for
income tax purposes described in the preceding subparagraph, Extreme cannot
equitably deny that this Land Lease and the Purchase Agreement should be
construed and enforced in accordance with their respective terms, rather than as
a mortgage or other security device, in any action brought by BNPLC to enforce
this Land Lease or the Purchase Agreement.

     5    Payment of Executory Costs and Losses Related to the Property.

          (a)  Impositions.  Subject only to the exceptions listed in
               -----------
subparagraph 5.(d) below, Extreme shall pay or cause to be paid prior to
delinquency all ad valorem taxes assessed against the Property and other
Impositions. If requested by BNPLC from time to time, Extreme shall furnish
BNPLC with receipts showing payment of all Impositions prior to the applicable
delinquency date therefor.

     Notwithstanding the foregoing, Extreme may in good faith, by appropriate
proceedings, contest the validity, applicability or amount of any asserted
Imposition, and pending such contest Extreme shall not be deemed in default
under any of the provisions of this Land Lease because of the Imposition if (1)
Extreme diligently prosecutes such contest to completion in a manner reasonably
satisfactory to BNPLC, and (2) Extreme promptly causes to be paid any amount
adjudged by a court of competent jurisdiction to be due, with all costs,
penalties and interest thereon, promptly after such judgment becomes final;
provided, however, in any event each such contest shall be concluded and the
contested Impositions must be paid by Extreme prior to the earlier of (i) the
date that any criminal prosecution is instituted or overtly threatened against
BNPLC or its directors, officers or employees because of the nonpayment thereof
or (ii) the date any writ or order is issued under which any property owned or
leased by BNPLC (including the Property) may be seized or sold or any other
action is taken against BNPLC or against any property owned or leased by BNPLC
because of the nonpayment thereof, or (iii) any Designated Sale Date upon which,
for any reason, Extreme or an Affiliate of Extreme or any Applicable Purchaser
shall not purchase BNPLC's interest in the Property pursuant to the Purchase
Agreement for a price to BNPLC (when taken

[Land]

                                      -9-
<PAGE>

together with any additional payments made by Extreme pursuant to Paragraph
                                                                  ---------
1(A)(2) of the Purchase Agreement, in the case of a purchase by an Applicable
-------
Purchaser) equal to the Break Even Price.

          (b)   Increased Costs; Capital Adequacy Charges.  Subject only to the
                -----------------------------------------
exceptions listed in subparagraph 5.(d) below:

          (i)   If after the Effective Date there shall be any increase in the
     cost to BNPLC's Parent or any other Participant agreeing to make or making,
     funding or maintaining advances to BNPLC in connection with the Property
     because of any Banking Rules Change, then Extreme shall from time to time,
     pay to BNPLC for the account of BNPLC's Parent or such other Participant,
     as the case may be, additional amounts sufficient to compensate BNPLC's
     Parent or the Participant for such increased cost. An increase in costs
     resulting from any imposition or increase of reserve requirements
     applicable to Collateral held from time to time by BNPLC's Parent or other
     Participants pursuant to the Pledge Agreement would be an increase covered
     by the preceding sentence. A certificate as to the amount of such increased
     cost, submitted to BNPLC and Extreme by BNPLC's Parent or the other
     Participant, shall be conclusive and binding upon Extreme, absent clear and
     demonstrable error.

          (ii)  BNPLC's Parent or any other Participant may demand additional
     payments ("Capital Adequacy Charges") if BNPLC's Parent or the other
     Participant determines that any Banking Rules Change affects the amount of
     capital to be maintained by it and that the amount of such capital is
     increased by or based upon the existence of advances made or to be made to
     BNPLC to permit BNPLC to maintain BNPLC's investment in the Property. To
     the extent that BNPLC's Parent or another Participant demands Capital
     Adequacy Charges as compensation for the additional capital requirements
     reasonably allocable to such investment or advances, Extreme shall pay to
     BNPLC for the account of BNPLC's Parent or the other Participant, as the
     case may be, the amount so demanded. Without limiting the foregoing, BNPLC
     and Extreme hereby acknowledge and agree that the provisions for
     calculating Base Rent set forth herein reflect the assumption that the
     Pledge Agreement will cause a zero percent (0%) risk weight to be assigned
     to a percentage (equal to the Collateral Percentage) of the collective
     investment of BNPLC and the Participants in the Property pursuant to 12
     Code of Federal Regulations, part 225, as from time to time supplemented or
     amended, or pursuant to any other similar or successor statute or
     regulation applicable to BNPLC and the Participants. If and so long as such
     risk weight is increased the assumed amount of zero percent (0%) because of
     a Banking Rules Change, Capital Adequacy Charges may be collected to yield
     the same rate of return to BNPLC, BNPLC's Parent and any other Participants
     (net of their costs of maintaining required capital) that they would have
     enjoyed from this Land Lease absent such increase.

          (iii) Notwithstanding the foregoing provisions of this subparagraph
     5.(b), Extreme shall not be obligated to pay any claim for compensation
     pursuant to this subparagraph 5.(b) arising or accruing more than six
     months prior to the date Extreme is notified that BNPLC or a Participant
     intends to make the claim; provided, however, that Extreme shall not be
     excused by this subparagraph from providing such compensation for any
     period during which notice on behalf of BNPLC or the Participant, as the
     case may be, could not be provided because of the retroactive application
     of the statute, regulation or other basis for the claim.

          (iv)  Any amount required to be paid by Extreme under this
     subparagraph 5.(b) shall be due fifteen days after a notice requesting such
     payment is received by Extreme.

          (c)   Extreme's Payment of Other Losses; General Indemnification.
                ----------------------------------------------------------
Subject only to the exceptions listed in subparagraph 5.(d) below:

[Land]

                                     -10-
<PAGE>

          (i)   All Losses (including Environmental Losses) asserted against or
     incurred or suffered by BNPLC or other Interested Parties at any time and
     from time to time by reason of, in connection with or arising out of (A)
     their ownership or alleged ownership of any interest in the Property or the
     Rents, (B) the use and operation of the Property, (C) the negotiation,
     administration or enforcement of the Operative Documents, (D) the making of
     the Funding Advances, (E) the breach by Extreme of this Land Lease or any
     other document executed by Extreme in connection herewith, (F) any failure
     of the Property or Extreme itself to comply with Applicable Laws, (G)
     Permitted Encumbrances, (H) Hazardous Substance Activities, including those
     occurring prior to Effective Date, (I) any obligations under the
     Acquisition Contract that survive the closing under the Acquisition
     Contract, or (K) any bodily or personal injury or death or property damage
     occurring in or upon or in the vicinity of the Property through any cause
     whatsoever, shall be paid by Extreme, and Extreme shall indemnify and
     defend BNPLC and other Interested Parties from and against all such Losses.

          (ii)  THE INDEMNITIES AND RELEASES PROVIDED HEREIN FOR THE BENEFIT OF
     BNPLC AND OTHER INTERESTED PARTIES, INCLUDING THE INDEMNITY SET FORTH IN
     -----           -          -
     THE PRECEDING SUBPARAGRAPH 5.(c)(i), SHALL APPLY EVEN IF AND WHEN THE
     SUBJECT MATTERS OF THE INDEMNITIES AND RELEASES ARE CAUSED BY OR ARISE OUT
     OF THE NEGLIGENCE OR STRICT LIABILITY OF BNPLC OR ANOTHER INTERESTED PARTY.
                                              -----            -          -
     FURTHER, SUCH INDEMNITIES AND RELEASES WILL APPLY EVEN IF INSURANCE
     OBTAINED BY EXTREME OR REQUIRED OF EXTREME BY THIS LAND LEASE OR OTHER
                                                        -    -
     OPERATIVE DOCUMENTS IS NOT ADEQUATE TO COVER LOSSES AGAINST OR FOR WHICH
     -         -                                  -
     THE INDEMNITIES AND RELEASES ARE PROVIDED. EXTREME'S LIABILITY, HOWEVER,
     FOR ANY FAILURE TO OBTAIN INSURANCE REQUIRED BY THIS LAND LEASE OR OTHER
                                                          -    -
     OPERATIVE DOCUMENTS WILL NOT BE LIMITED TO LOSSES AGAINST WHICH INDEMNITIES
     -         -                                -
     ARE PROVIDED HEREIN, IT BEING UNDERSTOOD THAT SUCH INSURANCE IS INTENDED TO
     DO MORE THAN PROVIDE A SOURCE OF PAYMENT FOR LOSSES AGAINST WHICH BNPLC AND
                                                  -                    -----
     OTHER INTERESTED PARTIES ARE ENTITLED TO INDEMNIFICATION BY THIS LAND
           -          -                                               -
     LEASE.
     -

          (iii) Costs and expenses for which Extreme shall be responsible
     pursuant to this subparagraph 5.(c) will include appraisal fees, filing and
     recording fees, inspection fees, survey fees, taxes, brokerage fees and
     commissions, abstract fees, title policy fees, Uniform Commercial Code
     search fees, escrow fees and Attorneys' Fees incurred by BNPLC with respect
     to the Property, whether such costs and expenses are incurred at the time
     of execution of this Land Lease or at any time during the Term.

          (iv)  Extreme's obligations under this subparagraph 5.(c) shall
     survive the termination or expiration of this Land Lease. Any amount to be
     paid by Extreme under this subparagraph 5.(c) shall be due fifteen days
     after a notice requesting such payment is received by Extreme.

          (v)   If an Interested Party notifies Extreme of any claim or
     proceeding included in, or any investigation or allegation concerning,
     Losses for which Extreme is responsible pursuant to this subparagraph
     5.(c), Extreme shall assume on behalf of the Interested Party and conduct
     with due diligence and in good faith the investigation and defense thereof
     and the response thereto with counsel selected by Extreme, but reasonably
     satisfactory to the Interested Party; provided, that the Interested Party
     shall have the right to be represented by advisory counsel of its own
     selection and at its own expense; and provided further, that if any such
     claim, proceeding, investigation or allegation involves both Extreme and
     the Interested Party and the Interested Party shall have reasonably
     concluded that there are legal defenses

[Land]

                                     -11-
<PAGE>

     available to it which are inconsistent with or in addition to those
     available to Extreme, then the Interested Party shall have the right to
     select separate counsel to participate in the investigation and defense of
     and response to such claim, proceeding, investigation or allegation on its
     own behalf, and Extreme shall pay or reimburse the Interested Party for all
     Attorney's Fees incurred by the Interested Party because of the selection
     of such separate counsel. If Extreme fails to assume promptly (and in any
     event within fifteen days after being notified of the applicable claim,
     proceeding, investigation or allegation) the defense of the Interested
     Party, then the Interested Party may contest (or settle, with the prior
     consent of Extreme, which consent will not be unreasonably withheld) the
     claim, proceeding, investigation or allegation at Extreme's expense using
     counsel selected by the Interested Party. Moreover, if any such failure by
     Extreme continues for forty-five days or more after Extreme is notified of
     any such claim, proceeding, investigation or allegation, the Interested
     Party may elect not to contest or continue contesting the same and instead,
     in accordance with the written advice of counsel, settle (or pay in full)
     all claims related thereto without Extreme's consent and without releasing
     Extreme from any obligations to the Interested Party under this
     subparagraph 5.(c).

          (d)  Exceptions and Qualifications to Indemnities.
               --------------------------------------------

          (i)  BNPLC acknowledges and agrees that nothing in subparagraph 4.(a)
     or the preceding subparagraphs of this Paragraph 5 shall be construed to
     require Extreme to pay or reimburse (w) any costs or expenses incurred by
     any Interested Party (including BNPLC or any transferee of BNPLC) to
     accomplish any Permitted Transfers described in clauses (1), (2), (3), (4)
     or (6) of the definition thereof in the Common Definitions and Provisions
     Agreement (Land), (x) Excluded Taxes, (y) Losses incurred or suffered by
     any Interested Party that are proximately caused by (and attributed by any
     applicable principles of comparative fault to) the Established Misconduct
     of that Interested Party, or (z) Losses incurred or suffered in connection
     with the execution of the Participation Agreement or Pledge Agreement by
     Participants (or supplements making them parties thereto) or in connection
     with any negotiation or due diligence Participants may undertake before
     entering into the Participation Agreement or Pledge Agreement. Further,
     without limiting BNPLC's rights (as provided in other provisions of this
     Land Lease and other Operative Documents) to include the following in the
     calculation of Stipulated Loss Value and the Break Even Price or to collect
     Base Rent, a Supplemental Payment and other amounts, the calculation of
     which depends upon Stipulated Loss Value or the Break Even Price, BNPLC
     acknowledges and agrees that nothing in subparagraph 4.(a) or the preceding
     subparagraphs of this Paragraph 5 shall be construed to require Extreme to
     pay or reimburse an Interested Party for costs paid by BNPLC with the
     proceeds of the Initial Funding Advance as part of the Transaction
     Expenses.

     Further, if an Interested Party receives a written notice of Losses that
     such Interested Party believes are covered by the indemnity in subparagraph
     5.(c)(i), then such Interested Party will be expected to promptly furnish a
     copy of such notice to Extreme. The failure to so provide a copy of the
     notice to Extreme shall not excuse Extreme from its obligations under
     subparagraph 5.(c)(i); provided, that if Extreme is unaware of the matters
     described in the notice and such failure renders unavailable defenses that
     Extreme might otherwise assert, or precludes actions that Extreme might
     otherwise take, to minimize its obligations, then Extreme shall be excused
     from its obligation to indemnify such Interested Party (and any Affiliate
     of such Interested Party) against the Losses, if any, which would not have
     been incurred or suffered but for such failure. For example, if BNPLC fails
     to provide Extreme with a copy of a notice of an obligation covered by the
     indemnity set out in subparagraph 5.(c)(i) and Extreme is not otherwise
     already aware of such obligation, and if as a result of such failure BNPLC
     becomes liable for penalties and interest covered by the indemnity in
     excess of the penalties and interest that would have accrued if Extreme had
     been promptly

[Land]

                                     -12-
<PAGE>

     provided with a copy of the notice, then Extreme will be excused from any
     obligation to BNPLC (or any Affiliate of BNPLC) to pay the excess.

     6    Environmental.

          (a)  Environmental Covenants by Extreme. Extreme covenants that:
               ----------------------------------

               (i)    Extreme shall not conduct or permit others to conduct
     Hazardous Substance Activities, except Permitted Hazardous Substance Use
     and Remedial Work.

               (ii)   Extreme shall not discharge or permit the discharge of
     anything on or from the Property that would require any permit under
     applicable Environmental Laws, other than (1) storm water runoff, (2) waste
     water discharges through a publicly owned treatment works, (3) discharges
     that are a necessary part of any Remedial Work, and (4) other similar
     discharges consistent with the definition herein of Permitted Hazardous
     Substance Use, in each case in strict compliance with Environmental Laws.

               (iii)  Following any discovery that Remedial Work is required by
     Environmental Laws or otherwise believed by BNPLC to be reasonably
     required, and to the extent not inconsistent with the other provisions of
     this Land Lease, Extreme shall promptly perform and diligently and
     continuously pursue such Remedial Work, in each case in strict compliance
     with Environmental Laws.

               (iv)   If requested by BNPLC in connection with any Remedial Work
     required by this subparagraph, Extreme shall retain independent
     environmental consultants acceptable to BNPLC to evaluate any significant
     new information generated during Extreme's implementation of the Remedial
     Work and to discuss with Extreme whether such new information indicates the
     need for any additional measures that Extreme should take to protect the
     health and safety of persons (including employees, contractors and
     subcontractors and their employees) or to protect the environment. Extreme
     shall implement any such additional measures to the extent required with
     respect to the Property by Environmental Laws or otherwise believed by
     BNPLC to be reasonably required and to the extent not inconsistent with the
     other provisions of this Land Lease.

          (b)  Right of BNPLC to do Remedial Work Not Performed by Extreme. If
               -----------------------------------------------------------
Extreme's failure to cure any breach of the covenants set forth in subparagraph
6.(a) continues beyond the Environmental Cure Period (as defined below), BNPLC
may, in addition to any other remedies available to it, conduct all or any part
of the Remedial Work. To the extent that Remedial Work is done by BNPLC pursuant
to the preceding sentence (including any removal of Hazardous Substances), the
cost thereof shall be a demand obligation owing by Extreme to BNPLC. As used in
this subparagraph, "Environmental Cure Period" means the period ending on the
earlier of: (1) one hundred eighty days after Extreme is notified of the breach
which must be cured within such period, (2) the date that any writ or order is
issued for the levy or sale of any property owned by BNPLC (including the
Property) because of such breach, (3) the date that any criminal action is
instituted or overtly threatened against BNPLC or any of its directors, officers
or employees because of such breach, or (4) any Designated Sale Date upon which,
for any reason, Extreme or an Affiliate of Extreme or any Applicable Purchaser
shall not purchase BNPLC's interest in the Property pursuant to the Purchase
Agreement for a net price to BNPLC (when taken together with any Supplemental
Payment made by Extreme pursuant to Paragraph 1(A)(2) of the Purchase Agreement,
                                    -----------------
in the case of a purchase by an Applicable Purchaser) equal to Stipulated Loss
Value.

          (c)  Environmental Inspections and Reviews. BNPLC reserves the right
               -------------------------------------
to retain environmental consultants to review any environmental report prepared
by Extreme or to conduct BNPLC's own

[Land]

                                     -13-
<PAGE>

investigation to confirm whether Extreme is complying with the requirements of
this Paragraph 6. Extreme grants to BNPLC and to BNPLC's agents, employees,
consultants and contractors the right to enter upon the Property during
reasonable hours and after reasonable notice to inspect the Property and to
perform such tests as BNPLC deems necessary or appropriate to review or
investigate Hazardous Substances in, on, under or about the Property or any
discharge or suspected discharge of Hazardous Substances into groundwater or
surface water from the Property. Extreme shall promptly reimburse BNPLC for the
fees of its environmental consultants and the costs of any such inspections and
tests; provided, however, BNPLC's right to such reimbursement shall be limited
to the following circumstances: (1) a breach of this Paragraph 6 by Extreme
shall, in fact, have occurred or an Event of Default shall have occurred and be
continuing at the time BNPLC engages the consultants or first initiates the
inspections and tests; (2) BNPLC shall have engaged the consultants or
undertaken the tests and inspections to establish the condition of the Property
just prior to any conveyance of the Property pursuant to the Option Agreement or
to the expiration of this Land Lease; (3) BNPLC shall have engaged the
consultants or undertaken the inspections and tests to satisfy any regulatory
requirements applicable to BNPLC or its Affiliates; or (4) BNPLC shall have
engaged the consultants or undertaken the tests because BNPLC was notified of a
violation of Environmental Laws concerning the Property by any governmental
authority or owner of other land in the vicinity of the Land.

          (d)  Communications Regarding Environmental Matters.
               ----------------------------------------------

               (i)    Extreme shall immediately advise BNPLC of (1) any
     discovery of any event or circumstance which would render any of the
     representations of Extreme herein or in the Closing Certificate concerning
     environmental matters materially inaccurate or misleading if made at the
     time of such discovery and assuming that Extreme was aware of all relevant
     facts, (2) any Remedial Work (or change in Remedial Work) required or
     undertaken by Extreme or its Affiliates in response to any (A) discovery of
     any Hazardous Substances on, under or about the Property other than
     Permitted Hazardous Substances or (B) any claim for damages resulting from
     Hazardous Substance Activities, (3) Extreme's discovery of any occurrence
     or condition on any real property adjoining or in the vicinity of the
     Property which could cause the Property or any part thereof to be subject
     to any ownership, occupancy, transferability or use restrictions under
     Environmental Laws, or (4) any investigation or inquiry of any failure or
     alleged failure by Extreme to comply with Environmental Laws affecting the
     Property by any governmental authority responsible for enforcing
     Environmental Laws. In such event, Extreme shall deliver to BNPLC within
     thirty days after BNPLC's request, a preliminary written environmental plan
     setting forth a general description of the action that Extreme proposes to
     take with respect thereto, if any, to bring the Property into compliance
     with Environmental Laws or to correct any breach by Extreme of this
     Paragraph 6, including any proposed Remedial Work, the estimated cost and
     time of completion, the name of the contractor and a copy of the
     construction contract, if any, and such additional data, instruments,
     documents, agreements or other materials or information as BNPLC may
     request.

               (ii)   Extreme shall provide BNPLC with copies of all material
     written communications with federal, state and local governments, or
     agencies relating to the matters listed in the preceding clause (i).
     Extreme shall also provide BNPLC with copies of any correspondence from
     third Persons which threaten litigation over any significant failure or
     alleged significant failure of Extreme to maintain or operate the Property
     in accordance with Environmental Laws.

               (iii)  Prior to Extreme's submission of a Material Environmental
     Communication to any governmental or regulatory agency or third party,
     Extreme shall, to the extent practicable, deliver to BNPLC a draft of the
     proposed submission (together with the proposed date of submission), and in
     good faith assess and consider any comments of BNPLC regarding the same.
     Promptly after BNPLC's request, Extreme shall meet with BNPLC to discuss
     the submission, shall provide any additional information

[Land]

                                     -14-
<PAGE>

     requested by BNPLC and shall provide a written explanation to BNPLC
     addressing the issues raised by comments (if any) of BNPLC regarding the
     submission, including a reasoned analysis supporting any decision by
     Extreme not to modify the submission in accordance with comments of BNPLC.

     7    Insurance Required and Condemnation.

          (a)  Liability Insurance.  Throughout the Term Extreme shall maintain
               -------------------
commercial general liability insurance against claims for bodily and personal
injury, death and property damage occurring in or upon or resulting from any
occurrence in or upon the Property under one or more insurance policies that
satisfy the requirements set forth in Exhibit B. Extreme shall deliver and
                                      ---------
maintain with BNPLC for each liability insurance policy required by this Land
Lease written confirmation of the policy and the scope of the coverage provided
thereby issued by the applicable insurer or its authorized agent, which
confirmation must also satisfy the requirements set forth in Exhibit B.
                                                             ---------

          (b   Failure to Obtain Insurance.  If Extreme fails to obtain any
               ---------------------------
insurance or to provide confirmation of any such insurance as required by this
Land Lease, BNPLC shall be entitled (but not required) to obtain the insurance
that Extreme has failed to obtain or for which Extreme has not provided the
required confirmation and, without limiting BNPLC's other remedies under the
circumstances, BNPLC may require Extreme to reimburse BNPLC for the cost of such
insurance and to pay interest thereon computed at the Default Rate from the date
such cost was paid by BNPLC until the date of reimbursement by Extreme.

          (c   Condemnation.  Immediately upon obtaining knowledge of the
               ------------
institution of any proceedings for the condemnation of the Property or any
portion thereof, or any other similar governmental or quasi-governmental
proceedings arising out of injury or damage to the Property or any portion
thereof, each party shall notify the other (provided, however, BNPLC shall have
no liability for its failure to provide such notice) of the pendency of such
proceedings. Extreme shall, at its expense, diligently prosecute any such
proceedings and shall consult with BNPLC, its attorneys and experts and
cooperate with them as requested in the carrying on or defense of any such
proceedings. All proceeds of condemnation awards or proceeds of sale in lieu of
condemnation with respect to the Property and all judgments, decrees and awards
for injury or damage to the Property shall be paid to BNPLC as Escrowed
Proceeds, and all such proceeds will be applied as provided in Paragraph 8.
BNPLC is hereby authorized, in the name of Extreme, at any time when an Event of
Default shall have occurred and be continuing, or otherwise with Extreme's prior
consent, to execute and deliver valid acquittances for, and to appeal from, any
such judgment, decree or award concerning condemnation of any of the Property.
BNPLC shall not be in any event or circumstances liable or responsible for
failure to collect, or to exercise diligence in the collection of, any such
proceeds, judgments, decrees or awards.

     8.   Application of Insurance and Condemnation Proceeds.

          (a   Collection and Application of Insurance and Condemnation Proceeds
               -----------------------------------------------------------------
Generally. This Paragraph 8 shall govern the application of proceeds received by
---------
BNPLC or Extreme during the Term from any third party (1) as compensation for
any restriction placed upon the use or development of the Property or for the
condemnation of the Property or any portion thereof, or (2) because of any
judgment, decree or award for injury or damage to the Property (e.g.,damage
resulting from a third party's release of Hazardous Materials onto the
Property); excluding, however, any funds paid to BNPLC by BNPLC's Parent, by an
Affiliate of BNPLC or by any Participant that is made to compensate BNPLC for
any Losses BNPLC may suffer or incur in connection with this Land Lease or the
Property. Except as provided in subparagraph 8.(d), Extreme will promptly pay
over to BNPLC any condemnation or other proceeds covered by this Paragraph 8
which Extreme may receive from any condemning authority or other third party.
All proceeds covered by this Paragraph 8, including those received by

[Land]

                                     -15-
<PAGE>

BNPLC from Extreme or third parties, shall be applied as follows:

               (i     First, proceeds covered by this Paragraph 8 will be used
     to reimburse BNPLC for any costs and expenses, including Attorneys' Fees,
     that BNPLC incurred to collect the proceeds.

               (ii    Second, the proceeds remaining after such reimbursement to
     BNPLC (hereinafter, the "Remaining Proceeds") will be applied, as
     hereinafter more particularly provided, either as a Qualified Prepayment or
     to reimburse Extreme or BNPLC for the actual out-of-pocket costs of
     repairing or restoring the Property. Until, however, any Remaining Proceeds
     received by BNPLC are applied by BNPLC as a Qualified Prepayment or applied
     by BNPLC to reimburse costs of repairs to or restoration of the Property
     pursuant to this Paragraph 8, BNPLC shall hold and maintain such Remaining
     Proceeds as Escrowed Proceeds in an interest bearing account, and all
     interest earned on such account shall be added to and made a part of such
     Escrowed Proceeds.

          (b   Advances of Escrowed Proceeds to Extreme. Except as otherwise
               ----------------------------------------
provided below in this Paragraph 8, BNPLC shall advance all Remaining Proceeds
held by it as Escrowed Proceeds to reimburse Extreme for the actual out-of-
pocket cost to Extreme of repairing or restoring the Property in accordance with
the requirements of this Land Lease and the other Operative Documents as the
applicable repair or restoration progresses and upon compliance by Extreme with
such terms, conditions and requirements as may be reasonably imposed by BNPLC.
In no event, however, shall BNPLC be required to pay Escrowed Proceeds to
Extreme in excess of the actual out-of-pocket cost to Extreme of the applicable
repair or restoration, as evidenced by invoices or other documentation
satisfactory to BNPLC, it being understood that BNPLC may retain and apply any
such excess as a Qualified Prepayment.

          (c   Application of Escrowed Proceeds as a Qualified Prepayment.
               ----------------------------------------------------------
Provided no Event of Default shall have occurred and be continuing, BNPLC shall
apply any Remaining Proceeds paid to it (or other amounts available for
application as a Qualified Prepayment) as a Qualified Prepayment on any date
that BNPLC is directed to do so by a notice from Extreme; however, if such a
notice from Extreme specifies an effective date for a Qualified Prepayment that
is less than five Business Days after BNPLC's actual receipt of the notice,
BNPLC may postpone the date of the Qualified Prepayment to any date not later
than five Business Days after BNPLC's receipt of the notice. In any event,
except when BNPLC is required by the preceding sentence to apply Remaining
Proceeds or other amounts as a Qualified Prepayment on the last day of a Base
Rent Period, BNPLC may deduct Breakage Costs incurred in connection with any
Qualified Prepayment from the Remaining Proceeds or other amounts available for
application as the Qualified Prepayment, and Extreme will reimburse BNPLC upon
request for any such Breakage Costs that BNPLC incurs but does not deduct.

          (d   Special Provisions Applicable After Completion by Extreme of the
               ----------------------------------------------------------------
Initial Renovations. If, after Extreme has completed any Initial Renovations
-------------------
which Extreme elects to undertake as provided in the Other Lease, any taking by
condemnation of any portion of the Property or any diminution, destruction,
demolition or damage to any portion of the Property shall (in the good faith
judgment of BNPLC) reduce the then current "AS IS" market value by less than
$500,000 and (in the good faith estimation of BNPLC) be unlikely to result in
Remaining Proceeds of more than $500,000, and if no Event of Default shall have
occurred and be continuing, then BNPLC will, upon Extreme's request, instruct
the condemning authority or insurer, as applicable, to pay the Remaining
Proceeds resulting therefrom directly to Extreme. Extreme shall apply any such
Remaining Proceeds to the repair or restoration of the Property to a safe and
secure condition and to a value of no less than the value before taking or
casualty.

          (e   Special Provisions Applicable After an Event of Default.
               -------------------------------------------------------
Notwithstanding the foregoing,

[Land]

                                      -16
<PAGE>

when any Event of Default shall have occurred and be continuing, BNPLC shall be
entitled to receive and collect all condemnation or other proceeds governed by
this Paragraph 8 and to apply all Remaining Proceeds, when and to the extent
deemed appropriate by BNPLC in its sole discretion, either (A) to the
reimbursement of Extreme or BNPLC for the out-of-pocket cost of repairing or
restoring the Property, or (B) as Qualified Prepayments.

          (f   Extreme's Obligation to Restore. Regardless of the adequacy of
               -------------------------------
any Remaining Proceeds available to Extreme hereunder, and notwithstanding other
provisions of this Land Lease to the contrary, if the Property is damaged or
less than all or substantially all of the Property is taken by condemnation,
Extreme must:

          (i   increase the value of the Property or the remainder thereof by
     restoring the same (in a manner consistent with the requirements and
     limitations imposed by this Land Lease and the other Operative Documents or
     otherwise acceptable to BNPLC), or decrease Stipulated Loss Value by
     tendering a payment to BNPLC for application as a Qualified Prepayment, as
     necessary to cause the then current AS IS market value of the Property to
     be not less than Stipulated Loss Value; and

          (ii  restore the Property or the remainder thereof to a reasonably
     safe and sightly condition.

          (g   Takings of All or Substantially All of the Property. In the event
               ---------------------------------------------------
of any taking of all or substantially all of the Property, BNPLC shall be
entitled to apply all Remaining Proceeds as a Qualified Prepayment. In addition,
if Stipulated Loss Value immediately prior to any such taking exceeds the sum of
the Remaining Proceeds resulting from such a condemnation, then BNPLC shall be
entitled to recover the excess from Extreme upon demand as an additional
Qualified Prepayment, whereupon this Land Lease shall terminate. Any taking of
so much of the Real Property as, in BNPLC's reasonable good faith judgment,
makes it impracticable to restore or improve the remainder thereof as required
by part (ii) of the preceding subparagraph shall be considered a taking of
substantially all the Property for purposes of this Paragraph 8.

     9.   Additional Representations, Warranties and Covenants of Extreme
Concerning the Property.  Extreme represents, warrants and covenants as follows:

          (a   Compliance with Covenants and Laws. The use of the Property
               ----------------------------------
permitted by this Land Lease complies, or will comply after Extreme obtains
available permits as the tenant under this Land Lease, in all material respects
with all Applicable Laws. Extreme has obtained or will promptly obtain all
utility, building, health and operating permits as may be required by any
governmental authority or municipality having jurisdiction over the Property for
any construction upon or use of the Property permitted by this Land Lease.

          (b   Operation of the Property. During the Term, Extreme shall operate
               -------------------------
the Property in a good and workmanlike manner and substantially in compliance
with all Applicable Laws and will pay or cause to be paid all fees or charges of
any kind in connection therewith. (If Extreme does not promptly correct any
failure of the Property to comply with Applicable Laws that is the subject of a
written notice given to Extreme or BNPLC by any governmental authority, then for
purposes of the preceding sentence, Extreme shall be considered not to have
maintained the Property "substantially in accordance with Applicable Laws"
whether or not the noncompliance would be substantial in the absence of the
notice.) During the Term, Extreme shall not use or occupy, or allow the use or
occupancy of, the Property in any manner which violates any Applicable Law or
which constitutes a public or private nuisance or which makes void, voidable or
cancelable any insurance then in force with respect thereto. During the Term, to
the extent that any of the following would, individually or in the aggregate,
materially and adversely affect the value of the Property or the use of the
Property for purposes permitted by this Lease, Extreme shall not, without
BNPLC's prior consent: (i) initiate or permit any zoning reclassification of the
Property; (ii) seek any variance under existing zoning ordinances applicable to
the Property; (iii) use or permit the use of the Property

[Land]

                                     -17-
<PAGE>

in a manner that would result in such use becoming a nonconforming use under
applicable zoning ordinances or similar laws, rules or regulations; (iv) execute
or file any subdivision plat affecting the Property; or (v) consent to the
annexation of the Property to any municipality. If during the Term (A) a change
in the zoning or other Applicable Laws affecting the permitted use or
development of the Property shall occur that (in BNPLC's good faith judgment)
reduces the value of the Property, or (B) conditions or circumstances on or
about the Property are discovered (such as the presence of an endangered
species) which substantially impede development and thereby (in BNPLC's good
faith judgment) reduce the value of the Property, then Extreme shall upon demand
pay BNPLC an amount equal to such reduction (as determined by BNPLC in good
faith) for application as a Qualified Prepayment. Extreme shall not permit any
drilling or exploration for, or extraction, removal or production of, minerals
from the surface or subsurface of the Property, and Extreme shall not do
anything that could reasonably be expected to significantly reduce the market
value of the Property. If Extreme receives a notice or claim from any federal,
state or other governmental authority that the Property is not in compliance
with any Applicable Law, or that any action may be taken against BNPLC because
the Property does not comply with any Applicable Law, Extreme shall promptly
furnish a copy of such notice or claim to BNPLC.

     Notwithstanding the foregoing, Extreme may in good faith, by appropriate
proceedings, contest the validity and applicability of any Applicable Law with
respect to the Property, and pending such contest Extreme shall not be deemed in
default hereunder because of the violation of such Applicable Law, if Extreme
diligently prosecutes such contest to completion in a manner reasonably
satisfactory to BNPLC, and if Extreme promptly causes the Property to comply
with any such Applicable Law upon a final determination by a court of competent
jurisdiction that the same is valid and applicable to the Property; provided,
however, in any event such contest shall be concluded and the violation of such
Applicable Law must be corrected by Extreme and any claims asserted against
BNPLC or the Property because of such violation must be paid by Extreme, all
prior to the earlier of (i) the date that any criminal prosecution is instituted
or overtly threatened against BNPLC or any of its directors, officers or
employees because of such violation, (ii) the date that any action is taken by
any governmental authority against BNPLC or any property owned by BNPLC
(including the Property) because of such violation, or (iii) a Designated Sale
Date upon which, for any reason, Extreme or an Affiliate of Extreme or any
Applicable Purchaser shall not purchase BNPLC's interest in the Property
pursuant to the Purchase Agreement for a price to BNPLC (when taken together
with any additional payments made by Extreme pursuant to Paragraph 1(A)(2) of
                                                         -----------------
the Purchase Agreement, in the case of a purchase by an Applicable Purchaser)
equal to the Break Even Price.

          (c   Debts for Construction, Maintenance, Operation or Development.
               -------------------------------------------------------------
Extreme shall cause all debts and liabilities incurred in the construction,
maintenance, operation or development of the Property, including all debts and
liabilities for labor, material and equipment and all debts and charges for
utilities servicing the Property, to be promptly paid; provided, that nothing in
this subparagraph will be construed to require Extreme to remove Liens Removable
by BNPLC.

     Notwithstanding the foregoing, Extreme may in good faith, by appropriate
proceedings, contest the validity, applicability or amount of any asserted
mechanic's or materialmen's lien and pending such contest Extreme shall not be
deemed in default under this subparagraph because of the contested lien if (1)
within sixty days after being asked to do so by BNPLC, Extreme bonds over to
BNPLC's reasonable satisfaction all such contested liens against the Property
alleged to secure an amount in excess of $500,000 (individually or in the
aggregate), (2) Extreme diligently prosecutes such contest to completion in a
manner reasonably satisfactory to BNPLC, and (3) Extreme promptly causes to be
paid any amount adjudged by a court of competent jurisdiction to be due, with
all costs and interest thereon, promptly after such judgment becomes final;
provided, however, that in any event each such contest shall be concluded and
the lien, interest and costs must be paid by Extreme prior to the earlier of (i)
the date that any criminal prosecution is instituted or overtly threatened
against BNPLC or its directors, officers or employees because of the nonpayment
thereof, (ii) the date that any writ or order is issued under which the

[Land]

                                     -18-
<PAGE>

Property or any other property in which BNPLC has an interest may be seized or
sold or any other action is taken against BNPLC or any property in which BNPLC
has an interest because of the nonpayment thereof, or (iii) a Designated Sale
Date upon which, for any reason, Extreme or an Affiliate of Extreme or any
Applicable Purchaser shall not purchase BNPLC's interest in the Property
pursuant to the Purchase Agreement for a price to BNPLC (when taken together
with any additional payments made by Extreme pursuant to Paragraph 1(A)(2) of
                                                         -----------------
the Purchase Agreement, in the case of a purchase by an Applicable Purchaser)
equal to the Break Even Price.

          (d   Repair, Maintenance, Alterations and Additions. Extreme shall
               ----------------------------------------------
keep the Property in good order, operating condition and appearance and shall
cause all necessary repairs, renewals and replacements to be promptly made.
Extreme will not allow any of the Property to be materially misused, abused or
wasted.

          (e   Permitted Encumbrances and Development Documents. Extreme shall
               ------------------------------------------------
during the Term comply with and will cause to be performed all of the covenants,
agreements and obligations imposed upon the owner of any interest in the
Property by the Permitted Encumbrances (including the Premises Leases) or the
Development Documents. Without limiting the foregoing, Extreme shall cause all
amounts to be paid when due, the payment of which is secured by any Lien against
the Property created by the Permitted Encumbrances. Without the prior consent of
BNPLC, Extreme shall not enter into, initiate, approve or consent to any
modification of any Permitted Encumbrance or Development Document that would
create or expand or purport to create or expand obligations or restrictions
which would encumber BNPLC's interest in the Property. (Whether BNPLC must give
any such consent requested by Extreme during the Term of this Land Lease shall
be governed by subparagraph 3(A) of the Closing Certificate and Agreement.)
               -----------------

          (f   Books and Records Concerning the Property. Extreme shall keep
               -----------------------------------------
books and records that are accurate and complete in all material respects for
the Property and, subject to Paragraph 13.(c), will permit all such books and
records to be inspected and copied by BNPLC. This subparagraph shall not be
construed as requiring Extreme to regularly maintain separate books and records
relating exclusively to the Property; provided, however, that upon request,
Extreme shall construct or abstract from its regularly maintained books and
records information required by this subparagraph relating to the Property.

     10.  Financial Covenants, Reporting Covenants and Other Covenants
Incorporated by Reference to Schedule 1. Throughout the Term of this Land
                             ----------
Lease, Extreme shall comply with the requirements of Schedule 1 attached hereto.
                                                     ----------
     11.  Assignment and Subletting by Extreme.

          (a   BNPLC's Consent Required. Without the prior consent of BNPLC,
               ------------------------
Extreme shall not assign, transfer, mortgage, pledge or hypothecate this Land
Lease or any interest of Extreme hereunder and shall not sublet all or any part
of the Property, by operation of law or otherwise; provided, that this provision
shall not be construed to prohibit any sublease of space within Improvements
expressly permitted by the Other lease Agreement.

          (b   Standard for BNPLC's Consent to Assignments and Certain Other
               -------------------------------------------------------------
Matters. Consents and approvals of BNPLC which are required by this Paragraph 11
-------
will not be unreasonably withheld or delayed, but Extreme acknowledges that
BNPLC's withholding of such consent or approval shall be reasonable if BNPLC
determines in good faith that (1) giving the approval may materially increase
BNPLC's risk of liability for any existing or future environmental problem, or
(2) giving the approval is likely to increase BNPLC's administrative burden of
complying with or monitoring Extreme's compliance with the requirements of this
Land Lease.

[Land]

                                     -19-
<PAGE>

          (c   Consent Not a Waiver. No consent by BNPLC to a sale, assignment,
               --------------------
transfer, mortgage, pledge or hypothecation of this Land Lease or Extreme's
interest hereunder, and no assignment or subletting of the Property or any part
thereof in accordance with this Land Lease or otherwise with BNPLC's consent,
shall release Extreme from liability hereunder; and any such consent shall apply
only to the specific transaction thereby authorized and shall not relieve
Extreme from any requirement of obtaining the prior consent of BNPLC to any
further sale, assignment, transfer, mortgage, pledge or hypothecation of this
Land Lease or any interest of Extreme hereunder.

     12.  Assignment by BNPLC.

          (a   Restrictions on Transfers. Except by a Permitted Transfer, BNPLC
               -------------------------
shall not assign, transfer, mortgage, pledge, encumber or hypothecate this Land
Lease or the other Operative Documents or any interest of BNPLC in and to the
Property during the Term without the prior consent of Extreme, which consent
Extreme may withhold in its sole discretion. Further, notwithstanding anything
to the contrary herein contained, if withholding taxes are imposed on the rents
and other amounts payable to BNPLC hereunder because of BNPLC's assignment of
this Land Lease to any citizen of, or any corporation or other entity formed
under the laws of, a country other than the United States, Extreme shall not be
required to compensate BNPLC or any such assignee for the withholding tax. If,
in breach of this subparagraph, BNPLC transfers the Property or any part thereof
by a conveyance or that does not constitute a Permitted Transfer, with the
result that additional transfer taxes or other Impositions are assessed against
the Property or the owner thereof, BNPLC shall be required to pay such
additional transfer taxes or other Impositions.

          (b   Effect of Permitted Transfer or other Assignment by BNPLC. If,
               ---------------------------------------------------------
without breaching subparagraph 12.(a), BNPLC sells or otherwise transfers the
Property and assigns to the transferee all of BNPLC's rights under this Land
Lease and under the other Operative Documents, and if the transferee expressly
assumes all of BNPLC's obligations under this Land Lease and under the other
Operative Documents, then BNPLC shall thereby be released from any obligations
arising after such assumption under this Land Lease or under the other Operative
Documents, and Extreme shall look solely to each successor in interest of BNPLC
for performance of such obligations. (As used in this subparagraph, "Operative
Documents" is intended to mean not only the Operative Documents as defined in
the Common Definitions and Provisions Agreement (Land), but also the Operative
Documents as defined in the Other Common Definitions and Provisions Agreement.)

     13.  BNPLC'S Right Of Access.

          (a   During the Term, BNPLC and BNPLC's representatives may (subject
to subparagraphs 13.(c) and 13.(d)) enter the Property at any reasonable time
after five Business Days advance written notice to Extreme for the purpose of
making inspections or performing any work BNPLC is authorized to undertake by
the next subparagraph or for the purpose confirming whether Extreme has complied
with the requirements of this Land Lease or the other Operative Documents.

          (b   If Extreme fails to perform any act or to take any action
required of it by this Land Lease or the Closing Certificate, or to pay any
money which Extreme is required by this Land Lease or the Closing Certificate to
pay, and if such failure or action constitutes an Event of Default or renders
BNPLC or any director, officer, employee or Affiliate of BNPLC at risk of
criminal prosecution or renders BNPLC's interest in the Property or any part
thereof at risk of forfeiture by forced sale or otherwise, then in addition to
any other remedies specified herein or otherwise available, BNPLC may, perform
or cause to be performed such act or take such action or pay such money. Any
expenses so incurred by BNPLC, and any money so paid by BNPLC, shall be a demand
obligation owing by Extreme to BNPLC. Further, BNPLC, upon making such payment,
shall be subrogated to all

[Land]

                                     -20-
<PAGE>

of the rights of the person, corporation or body politic receiving such payment.
But nothing herein shall imply any duty upon the part of BNPLC to do any work
which under any provision of this Land Lease Extreme may be required to perform,
and the performance thereof by BNPLC shall not constitute a waiver of Extreme's
default. BNPLC may during the progress of any such work permitted by BNPLC
hereunder on or in the Property keep and store upon the Property all necessary
materials, tools, and equipment. BNPLC shall not in any event be liable for
inconvenience, annoyance, disturbance, loss of business, or other damage to
Extreme or the subtenants or invitees of Extreme by reason of making such
repairs or the performance of any such work on or in the Property, or on account
of bringing materials, supplies and equipment into or through the Property
during the course of such work (except for any liability in excess of the
liability insurance limits established in Exhibit B resulting from death or
                                          ---------
injury or damage to the property of third parties caused by the Established
Misconduct of BNPLC or its officers, employees, or agents in connection
therewith), and the obligations of Extreme under this Land Lease shall not
thereby be excused in any manner.

          (c   Extreme shall have no obligation to provide proprietary
information (as defined in the next sentence) to BNPLC, except and to the extent
that (1) BNPLC reasonably determines that BNPLC cannot accomplish the purposes
of BNPLC's inspection of the Property or exercise of other rights granted
pursuant to the various express provisions of this Land Lease and the other
Operative Documents without evaluating such information. For purposes of this
Land Lease "proprietary information" includes Extreme's intellectual property,
trade secrets and other confidential information of value to Extreme about,
among other things, Extreme's manufacturing processes, products, marketing and
corporate strategies, but in no event will "proprietary information" include any
disclosure of substances and materials (and their chemical composition) which
are or previously have been present in, on or under the Property at the time of
any inspections by BNPLC, nor will "proprietary information" include any
additional disclosures reasonably required to permit BNPLC to determine whether
the presence of such substances and materials has constituted a violation of
Environmental Laws. In addition, under no circumstances shall Extreme have any
obligation to disclose to BNPLC or any other party any proprietary information
of Extreme (including, without limitation, any pending applications for patents
or trademarks, any research and design and any trade secrets) except if and to
the limited extent reasonably necessary to comply with the express provisions of
this Land Lease or the other Operative Documents.

          (d   So long as Extreme remains in possession of the Property, BNPLC
or BNPLC's representative will, before making any inspection or performing any
work on the Property authorized by this Land Lease, if then requested to do so
by Extreme to maintain Extreme's security: (i) sign in at Extreme's security or
information desk if Extreme has such a desk on the premises, (ii) wear a
visitor's badge or other reasonable identification, (iii) permit an employee of
Extreme to observe such inspection or work, and (iv) comply with other similar
reasonable nondiscriminatory security requirements of Extreme that do not,
individually or in the aggregate, significantly interfere with inspections or
work of BNPLC authorized by this Land Lease.

     14.  Events of Default. Each of the following events shall be an "Event of
Default" by Extreme under this Land Lease:

     (a   Extreme shall fail to pay when due any installment of Rent due
hereunder and such failure shall continue for three (3) Business Days after
Extreme is notified in writing thereof.

     (b   Extreme shall fail to cause any representation or warranty of Extreme
contained herein or in the Closing Certificate that was false or misleading in
any material respect when made to be made true and not misleading (other than as
described in the other clauses of this Paragraph 14), or Extreme shall fail to
comply with any term, provision or covenant of this Land Lease or the Closing
Certificate (other than as described in the other clauses of this Paragraph 14),
and in either case shall not cure such failure prior to the earlier of (A)
thirty days

[Land]

                                     -21-
<PAGE>

after written notice thereof is sent to Extreme or (B) the date any writ or
order is issued for the levy or sale of any property owned by BNPLC (including
the Property) or any criminal prosecution is instituted or overtly threatened
against BNPLC or any of its directors, officers or employees because of such
failure; provided, however, that so long as no such writ or order is issued and
no such criminal prosecution is instituted or overtly threatened, the period
within which such failure may be cured by Extreme shall be extended for a
further period (not to exceed an additional sixty days) as shall be necessary
for the curing thereof with diligence, if (but only if) (x) such failure is
susceptible of cure but cannot with reasonable diligence be cured within such
thirty day period, (y) Extreme shall promptly have commenced to cure such
failure and shall thereafter continuously prosecute the curing thereof with
reasonable diligence and (z) the extension of the period for cure will not, in
any event, cause the period for cure to extend beyond five days prior to the
expiration of this Land Lease.

     (c   Extreme shall abandon the Property.

     (d   Extreme or any Subsidiary shall fail to make any payment or payments
of principal, premium or interest, of Debt of Extreme described in the next
sentence when due (taking into consideration the time Extreme may have to cure
such failure, if any, under the documents governing such Debt). As used in this
clause 14(a)(v), "Debt" shall include only Debt (as defined in the Common
Definitions and Provisions Agreement (Land)) of Extreme or any of its
Subsidiaries now existing or arising in the future (1) payable to any Interested
Party, or (2) payable to any other Person and with respect to which $5,000,000
or more is actually due and payable because of acceleration or otherwise.

     (e   Extreme: (a) shall generally not, or be unable to, or shall admit in
writing its inability to, pay its debts as such debts become due; or (b) shall
make an assignment for the benefit of creditors, petition or apply to any
tribunal for the appointment of a custodian, receiver or trustee for it or a
substantial part of its assets; or (c) shall file any petition or application to
commence any proceeding under any bankruptcy, reorganization, arrangement,
readjustment of debt, dissolution or liquidation law or statute of any
jurisdiction, whether now or hereafter in effect; or (d) shall have had any such
petition or application filed against it; or (e) by any act or omission shall
indicate its consent to, approval of or acquiescence in any such petition,
application or proceeding or order for relief or the appointment of a custodian,
receiver or trustee for all or any substantial part of its property; or (f)
shall suffer any such custodianship, receivership or trusteeship to continue
undischarged for a period of sixty days or more.

     (f   One or more final judgments, decrees or orders for the payment of
money in excess of $5,000,000 in the aggregate shall be rendered against Extreme
and such judgments, decrees or orders shall continue unsatisfied and in effect
for a period of thirty consecutive days without Extreme's having obtained an
agreement (or after the expiration or termination of an agreement) of the
Persons entitled to enforce such judgment, decrees or orders not to enforce the
same pending negotiations with Extreme concerning the satisfaction or other
discharge of the same. (For purposes of this provision, no judgment, decree or
order will be considered "final" until Extreme's right to appeal, if any, shall
have expired or been exhausted.)

     (g   Extreme shall breach the requirements of Paragraph 10, which by
reference to Schedule 1 establishes certain financial covenants and other
requirements.

     (h   as of the effective date of this Land Lease, any of the
representations or warranties of Extreme contained in subparagraphs 2(A) - (K)
of the Closing Certificate shall be false or misleading in any material respect.

     (i   Extreme shall fail to pay the full amount of any Supplemental
Payment required by the Purchase

[Land]

                                     -22-
<PAGE>

Agreement on the Designated Sale Date.

     (j   Extreme shall fail to comply with any term, provision or condition
of the Pledge Agreement after the expiration of any applicable notice and cure
period set forth in the Pledge Agreement.

     15.  Remedies.

          (a   Basic Remedies. At any time after an Event of Default and after
               --------------
BNPLC has given any notice required by subparagraph 15.(b), BNPLC shall be
entitled at BNPLC's option (and without limiting BNPLC in the exercise of any
other right or remedy BNPLC may have, and without any further demand or notice
except as expressly described in this subparagraph 15.(a)), to exercise any one
or more of the following remedies:

               (i   By notice to Extreme, BNPLC may terminate Extreme's right to
     possession of the Property. A notice given in connection with unlawful
     detainer proceedings specifying a time within which to cure a default shall
     terminate Extreme's right to possession if Extreme fails to cure the
     default within the time specified in the notice.

               (ii  Upon termination of Extreme's right to possession and
     without further demand or notice, BNPLC may re-enter the Property in any
     manner not prohibited by Applicable Law and take possession of all
     improvements, additions, alterations, equipment and fixtures thereon and
     remove any persons in possession thereof. Any property on the Land may be
     removed and stored in a warehouse or elsewhere at the expense and risk of
     and for the account of Extreme.

               (iii Upon termination of Extreme's right to possession, this Land
     Lease shall terminate and BNPLC may recover from Extreme:

                     a)  The worth at the time of award of the unpaid Rent which
          had been earned at the time of termination;

                     b)  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 Extreme
          proves could have been reasonably avoided;

                     c)  The worth at the time of award of the amount by which
          the unpaid Rent for the balance of the scheduled Term after the time
          of award exceeds the amount of such rental loss that Extreme proves
          could be reasonably avoided; and

                     d)  Any other amount necessary to compensate BNPLC for all
          the detriment proximately caused by Extreme's failure to perform
          Extreme's obligations under this Land Lease or which in the ordinary
          course of things would be likely to result therefrom, including the
          costs and expenses (including Attorneys' Fees, advertising costs and
          brokers' commissions) of recovering possession of the Property,
          removing persons or property therefrom, placing the Property in good
          order, condition, and repair, preparing and altering the Property for
          reletting, all other costs and expenses of reletting, and any loss
          incurred by BNPLC as a result of Extreme's failure to perform
          Extreme's obligations under the other Operative Documents.

          The "worth at the time of award" of the amounts referred to in
          subparagraph 15.(a)(iii)a) and subparagraph 15.(a)(iii)b) shall be
          computed by allowing interest at the Default Rate. The "worth

[Land]

                                     -23-
<PAGE>

          at the time of award" of the amount referred to in subparagraph
          15.(a)(iii)c) 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%).

                     e)  Such other amounts in addition to or in lieu of the
          foregoing as may be permitted from time to time by applicable
          California law.

               (iv   BNPLC shall have the remedy described in California Civil
     Code Section 1951.4 (lessor may continue lease in force even after lessee's
     breach and abandonment and recover rent as it becomes due, if lessee has
     right to sublet or assign, subject only to reasonable limitations).
     Accordingly, even if Extreme has breached this Land Lease and abandoned the
     Property, this Land Lease shall continue in effect for so long as BNPLC
     does not terminate Extreme's right to possession, and BNPLC may enforce all
     of BNPLC's rights and remedies under this Land Lease, including the right
     to recover the Rent as it becomes due under this Land Lease. Extreme's
     right to possession shall not be deemed to have been terminated by BNPLC
     except pursuant to subparagraph 15.(a)(i) hereof. The following shall not
     constitute a termination of Extreme's right to possession:

                     a)  Acts of maintenance or preservation or efforts to relet
          the Property;

                     b)  The appointment of a receiver upon the initiative of
          BNPLC to protect BNPLC's interest under this Land Lease; or

                     c)  Reasonable withholding of consent to an assignment or
          subletting, or terminating a subletting or assignment by Extreme.

          (b   Notice Required So Long As the Purchase Option and Extreme's
               ------------------------------------------------------------
Initial Remarketing Rights and Obligations Continue Under the Purchase
----------------------------------------------------------------------
Agreement. So long as Extreme remains in possession of the Property and there
---------
has been no termination of the Purchase Option and Extreme's Initial Remarketing
Rights and Obligations as provided Paragraph 4 of the Purchase Agreement,
                                   -----------
BNPLC's right to exercise remedies provided in subparagraph 15.(a) will be
subject to the condition precedent that BNPLC shall have notified Extreme, at a
time when an Event of Default shall have occurred and be continuing, of BNPLC's
intent to exercise remedies provided in subparagraph 15.(a) at least sixty days
prior to exercising the remedies. The condition precedent is intended to provide
Extreme with an opportunity to exercise the Purchase Option or Extreme's Initial
Remarketing Rights and Obligations before losing possession of the Property
pursuant to subparagraph 15.(a). The condition precedent is not, however,
intended to extend any period for curing an Event of Default. Accordingly, if an
Event of Default has occurred, and regardless of whether any Event of Default is
then continuing, BNPLC may proceed immediately to exercise remedies provided in
subparagraph 15.(a) at any time after the earlier of (i) sixty days after BNPLC
has given such a notice to Extreme, (ii) any date upon which Extreme
relinquishes possession of the Property, or (iii) any termination of the
Purchase Option and Extreme's Initial Remarketing Rights and Obligations.

          (c   Enforceability. This Paragraph 15 shall be enforceable to the
               --------------
maximum extent not prohibited by Applicable Law, and the unenforceability of any
provision in this Paragraph shall not render any other provision unenforceable.

          (d   Remedies Cumulative. No right or remedy herein conferred upon or
               -------------------
reserved to BNPLC is intended to be exclusive of any other right or remedy, and
each and every such right and remedy shall be cumulative and in addition to any
other right or remedy given to BNPLC hereunder or now or hereafter existing in
favor of BNPLC under Applicable Law or in equity. In addition to other remedies
provided in this Land Lease,

[Land]

                                     -24-
<PAGE>

BNPLC shall be entitled, to the extent permitted by Applicable Law or in equity,
to injunctive relief in case of the violation, or attempted or threatened
violation, of any of the covenants, agreements, conditions or provisions of this
Land Lease, or to a decree compelling performance of any of the other covenants,
agreements, conditions or provisions of this Land Lease to be performed by
Extreme, or to any other remedy allowed to BNPLC at law or in equity. Nothing
contained in this Land Lease shall limit or prejudice the right of BNPLC to
prove for and obtain in proceedings for bankruptcy or insolvency of Extreme by
reason of the termination of this Land Lease, an amount equal to the maximum
allowed by any statute or rule of law in effect at the time when, and governing
the proceedings in which, the damages are to be proved, whether or not the
amount be greater, equal to, or less than the amount of the loss or damages
referred to above. Without limiting the generality of the foregoing, nothing
contained herein shall modify, limit or impair any of the rights and remedies of
BNPLC under the Purchase Documents, and BNPLC shall not be required to give the
sixty day notice described in subparagraph 15.(b) as a condition precedent to
any acceleration of the Designated Sale Date or to taking any action to enforce
the Purchase Documents.

     16.  Default by BNPLC. If BNPLC should default in the performance of any
of its obligations under this Land Lease, BNPLC shall have the time reasonably
required, but in no event less than thirty days, to cure such default after
receipt of notice from Extreme specifying such default and specifying what
action Extreme believes is necessary to cure the default. If Extreme prevails in
any litigation brought against BNPLC because of BNPLC's failure to cure a
default within the time required by the preceding sentence, then Extreme shall
be entitled to an award against BNPLC for the monetary damages proximately
caused to Extreme by such default.

     Notwithstanding the foregoing, BNPLC's right to cure as provided in this
Paragraph 16 will not in any event extend the time within which BNPLC must
remove Liens Removable by BNPLC as required by Paragraph 17 beyond the
Designated Sale Date.

     17.  Quiet Enjoyment. Provided Extreme pays the Base Rent and all
Additional Rent payable hereunder as and when due and payable and keeps and
fulfills all of the terms, covenants, agreements and conditions to be performed
by Extreme hereunder, BNPLC shall not during the Term disturb Extreme's
peaceable and quiet enjoyment of the Property; however, such enjoyment shall be
subject to the terms, provisions, covenants, agreements and conditions of this
Land Lease, to Permitted Encumbrances, to Development Documents and to any other
claims not constituting Liens Removable by BNPLC. If any Lien Removable by BNPLC
is claimed against the Property, BNPLC will remove the Lien Removable by BNPLC
promptly. Any breach by BNPLC of this Paragraph shall render BNPLC liable to
Extreme for any monetary damages proximately caused thereby, but as more
specifically provided in subparagraph 4.(b) above, no such breach shall entitle
Extreme to terminate this Land Lease or excuse Extreme from its obligation to
pay Rent.

     18.  Surrender Upon Termination. Unless Extreme or an Applicable Purchaser
purchases or has purchased BNPLC's entire interest in the Property pursuant to
the terms of the Purchase Agreement and BNPLC's entire interest in the
Improvements and other "Property" under (and as defined in) the Other Purchase
Agreement, Extreme shall, upon the termination of Extreme's right to occupancy,
surrender to BNPLC the Property, including Improvements constructed by Extreme
and fixtures and furnishings included in the Property, free of all Hazardous
Substances (including Permitted Hazardous Substances) and tenancies and with all
Improvements in substantially the same condition as of the date the same were
initially completed, excepting only (i) ordinary wear and tear that occurs
between the maintenance, repairs and replacements required by other provisions
of this Land Lease or the Other Lease Agreement, and (ii) demolition,
alterations and additions which are expressly permitted by the terms of this
Land Lease or the Other Lease Agreement and which have been completed by Extreme
in a good and workmanlike manner in accordance with all Applicable Laws. Any
movable furniture or movable personal property belonging to Extreme or any party
claiming under Extreme, if not removed at the time of such termination and if

[Land]

                                     -25-
<PAGE>

BNPLC shall so elect, shall be deemed abandoned and become the property of BNPLC
without any payment or offset therefor. If BNPLC shall not so elect, BNPLC may
remove such property from the Property and store it at Extreme's risk and
expense.

     Nothing in this Paragraph 18 will be construed to require Extreme to
surrender the Property to BNPLC during the continuation of any breach by BNPLC
of any obligation it has under the Purchase Agreement to convey the Property to
Extreme or an Applicable Purchaser.

     19.  Holding Over by Extreme. Should Extreme not purchase BNPLC's right,
title and interest in the Property as provided in the Purchase Agreement, but
nonetheless continue to hold the Property after the termination of this Land
Lease without BNPLC's consent, whether such termination occurs by lapse of time
or otherwise, such holding over shall constitute and be construed as a tenancy
from day to day only, at a daily Base Rent equal to: (i) Stipulated Loss Value
on the day in question, times (ii) the Default Rate for such day; divided by
(iii) three hundred and sixty; subject, however, to all of the terms,
provisions, covenants and agreements on the part of Extreme hereunder. No
payments of money by Extreme to BNPLC after the termination of this Land Lease
shall reinstate, continue or extend the Term of this Land Lease and no extension
of this Land Lease after the termination thereof shall be valid unless and until
the same shall be reduced to writing and signed by both BNPLC and Extreme.

     20.  Independent Obligations Evidenced by the Other Operative Documents.
Extreme acknowledges and agrees that nothing contained in this Land Lease shall
limit, modify or otherwise affect any of Extreme's obligations under the other
Operative Documents, which obligations are intended to be separate, independent
and in addition to, and not in lieu of, the obligations set forth herein. In the
event of any inconsistency between the express terms and provisions of the
Purchase Documents and the express terms and provisions of this Land Lease, the
express terms and provisions of the Purchase Documents shall control. In the
event of any inconsistency between the express terms and provisions of the
Closing Certificate and the express terms and provisions of this Land Lease, the
express terms and provisions of this Land Lease shall control; provided, nothing
herein will limit or impair Extreme's obligations under the Closing Certificate
following any expiration of termination of this Land Lease.

                         [The signature pages follow.]
[Land]

                                     -26-
<PAGE>

     IN WITNESS WHEREOF, Extreme and BNPLC have caused this Lease Agreement
(Land) to be executed as of June 1, 2000.

                                                "Extreme"

                                                EXTREME NETWORKS, INC.

                                                By:___________________________
                                                   Name:______________________
                                                   Title:_____________________
<PAGE>

[Continuation of signature pages to Lease Agreement (Land) dated to be effective
                                 June 1, 2000]

                                         "BNPLC"

                                         BNP LEASING CORPORATION

                                         By: _______________________________
                                             Lloyd G. Cox, Vice President
<PAGE>

                                   Exhibit A
                                   ---------

                               Legal Description

All that certain real property situated in the City of Santa Clara, County of
Santa Clara, State of California, described as follows:

Being a portion of that certain 24.740 acre parcel as shown on that certain
Record of Survey filed in Book 447 of Maps, at Page 33, Santa Clara County
Records, described as follows:

Beginning at the Northwest corner of said 24.740 acre parcel; thence from said
point of beginning along the Northerly line of said 24.470 acre parcel N. 89
degrees 25 minutes 00 seconds E. 995.17 feet; thence leaving said Northerly
lines S. 0 degrees 10 minutes 00 seconds W. 705.02 feet to a point in the
Southerly line of said 24.740 acre parcel; thence along said Southerly line the
following courses: S. 89 degrees 25 minutes 00 seconds W. 181.82 feet; S. 2.00
feet and S. 89 degrees 25 minutes 00 seconds W. 760.70 feet; thence leaving said
Southerly line along a tangent curve to the right, with a radius of 50.00 feet,
through a central angle of 90 degrees 34 minutes 33 seconds for an arc length of
79.4 feet to a point in the Westerly line of said 24.470 acre parcel; thence
along said Westerly line N. 0 degrees 00 minutes 27 seconds W. 656.49 feet to
the point of beginning.

[Land]
<PAGE>

                                   Exhibit B
                                   ---------

                            Insurance Requirements

I.   LIABILITY INSURANCE:

     A.   Extreme must maintain commercial general liability ("CGL") insurance
on an occurrence basis, affording immediate protection to the limit of not less
than $20,000,000 combined single limit for bodily and personal injury, death and
property damage in respect of any one occurrence. The CGL insurance must be
primary to, and shall receive no contribution from, any insurance policies or
self-insurance programs otherwise afforded to or available to the Interested
Parties, collectively or individually. Further, the CGL insurance must include
blanket contractual liability coverage which insures contractual liability under
the indemnifications set forth in this Land Lease (though such coverage or the
amount thereof shall in no way limit such indemnifications).

     B.   Any deductible or self-insured retention applicable to the CGL
insurance shall not exceed $500,000.

     C.   The forms of insurance policies (including endorsements) used to
provide the CGL insurance required by this Land Lease, and the insurance company
or companies providing the CGL insurance, must be acceptable to BNPLC. BNPLC
shall have the right from time to time and at any time to review and approve
such policy forms (including endorsements) and the insurance company or
companies providing the insurance. Without limiting the generality of the
foregoing, BNPLC may reasonably require (and unless and until Extreme is
otherwise notified by BNPLC, BNPLC does require) that such insurance be provided
under forms and by companies consistent with the following:

          (1)  Forms: CGL Insurance must be provided on Insurance Services
               -----
               Office ("ISO") forms CG 0001 1093 or CG 0001 0196 or equivalent
               substitute forms providing the same or greater coverage.

          (2)  Rating Requirements: Insurance must be provided through insurance
               -------------------
               or reinsurance companies rated by the A.M. Best Company of
               Oldwick, New Jersey as having a policyholder's rating of A or
               better and a reported financial information rating of X or
               better.

          (3)  Required Endorsements: CGL Insurance must be endorsed to provide
               ---------------------
               or include:

               (a)  ISO additional insured form CG 2026 1185 or equivalent
               substitute form, without modification (and under the commercial
               umbrella, if any), designating as additional insureds "BNPLC and
               other Interested Parties, as defined in the Common Definitions
               and Provisions Agreement (Land) between Extreme Networks, Inc.
               and BNP Leasing Corporation dated June 1, 2000)"; and

               (b)  provisions entitling BNPLC to 30 days' notice from the
               insurer prior to any cancellation of the CGL coverage.

          (4)  Other Insurance: Each policy to contain standard CGL "other
               ---------------
               insurance" wording, unmodified in any way that would make it
               excess over or contributory with the additional insured's own
               commercial general liability coverage.

[Land]
<PAGE>

III. OTHER INSURANCE RELATED REQUIREMENTS:

     A.   BNPLC must be notified in writing immediately by Extreme of claims
against Extreme that might cause a reduction below seventy-five percent (75%) of
any aggregate limit of any policy.

     B.   Extreme's CGL insurance must be evidenced by ACORD form 25
"Certificate of Insurance" completed and interlineated in a manner satisfactory
to BNPLC to show compliance with the requirements of this Exhibit. Copies of
endorsements to the CGL insurance must be attached to such form.

     C.   Such evidence of required insurance must be delivered upon execution
of this Land Lease and new certificate or evidence of insurance must be
delivered no later than 10 days prior to expiration of existing policy.

     D.   Extreme shall not cancel, fail to renew, or make or permit any
material reduction in any of the policies or certificates described in this
Exhibit without the prior written consent of BNPLC. The certificates (ACORD
forms 25) described in this Exhibit must contain the following express
provision:

     "This is to certify that the policies of insurance described herein have
     been issued to the insured Extreme Networks, Inc. for whom this certificate
     is executed and are in force at this time. In the event of cancellation of
     coverage affecting the certificate holder, at least thirty days prior
     notice shall be given to the certificate holder."

     E.   The limits of liability under the liability insurance required by this
Land Lease may be provided by a single policy of insurance or by a combination
of primary and umbrella policies, but in no event shall the total limits of
liability available for any one occurrence or accident be less than those
required by this Exhibit.

     F.   Extreme shall provide copies, certified as complete and correct by an
authorized agent of the applicable insurer, of all insurance policies required
by this Exhibit within ten days after receipt of a request for such copies from
BNPLC.

                              Exhibit B - Page 2

[Land]
<PAGE>

                                   Exhibit C
                                   ---------

                        Notice of LIBOR Period Election

BNP Leasing Corporation
12201 Merit Drive
Suite 860
Dallas, Texas 75251
Attention: Lloyd G. Cox

     Re: Lease Agreement (Improvements) and Lease Agreement (Land), both dated
as of June 1, 2000, and both between Extreme Networks, Inc., as tenant, and BNP
Leasing Corporation, as landlord

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings
assigned to them in the two Lease Agreements referenced above. This letter
constitutes notice to you that the LIBOR Period Election under both of the Lease
Agreements shall be:

                          ________________ month(s),

beginning with the first Base Rent Period that commences on or after:

                          ____________________, ____.

NOTE: YOU SHALL BE ENTITLED TO DISREGARD THIS NOTICE IF THE NUMBER OF MONTHS
----
SPECIFIED ABOVE IS NOT A PERMITTED NUMBER UNDER THE DEFINITION OF "LIBOR PERIOD
ELECTION" IN THE COMMON DEFINITIONS AND PROVISIONS AGREEMENTS REFERENCED IN THE
LEASE AGREEMENTS, OR IF THE DATE SPECIFIED ABOVE CONCERNING THE COMMENCEMENT OF
THE LIBOR PERIOD ELECTION IS LESS THAN TEN BUSINESS DAYS AFTER YOUR RECEIPT OF
THIS NOTICE. HOWEVER, WE ASK THAT YOU NOTIFY US IMMEDIATELY IF FOR ANY REASON
YOU BELIEVE THIS NOTICE IS DEFECTIVE.

     Executed this _____ day of ______________, 20__.

                                               Extreme Networks, Inc.

                                               Name:________________________
                                               Title:_______________________
[cc all Participants]

[Land]
<PAGE>

                                  Schedule 1
                                  ----------

                              FINANCIAL COVENANTS

[DRAFTING NOTE: TK WILL MANUALLY SUBSTITUTE THE FINAL SCHEDULE 1 (A SEPARATE
 -------------
WORD PROCESSING FILE) FOR THIS PAGE IN THE EXECUTION COPIES OF THIS DOCUMENT.]

[Land]

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